Woowa Brothers Entrust New CEO Lee Gukhwan
Woowa DH Asia Chairman Targets Global Market
Kim Bong-jin, the founder of Woowa Brothers, has stepped down from his position as CEO. He decided to empower the new CEO, Lee Guk-hwan, to lead domestic operations while he focuses on global business. Woowa Brothers announced on the 16th that at the board meeting held last month, Lee Guk-hwan was officially appointed as CEO, and Kim Bong-jin stepped down from the role. Although Kim stepped down as CEO of Woowa Brothers, he will continue to serve as the chairman of the board. He also retains his position as chairman of the board of Woowa DH Asia, a joint venture established by Delivery Hero (DH) and Woowa Brothers. While DH is the largest shareholder of Woowa Brothers, Chairman Kim still holds an 8.36% stake.
Kim stepping down as CEO of Woowa Brothers marks the end of 12 years since its founding in March 2011. Kim launched the 'Baedal Minjok (Baemin)' app in June 2010 and established the Woowa Brothers corporation the following year. Initially, Baemin was an app that simply transferred phone directories, 114, and restaurant flyers onto mobile devices. However, Kim added features one by one and expanded services into other areas, growing Woowa Brothers into a unicorn. In 2020, Woowa Brothers was sold to DH, receiving a valuation of 4.75 trillion KRW (4 billion USD). Industry consensus is that this valuation reflects recognition of Kim’s capabilities in creating the world’s most successful delivery app model.
Upon resigning as CEO of Woowa Brothers, Kim is expected to focus on global business as chairman of Woowa DH Asia. Woowa Brothers completed its merger with DH and established Woowa DH Asia in Singapore to pioneer the Southeast Asian market. This organization oversees DH’s brand 'Foodpanda' operations in Southeast Asia and Woowa Brothers’ business in countries like Vietnam. Competitors include global companies such as Grab and Gojek. Grab and Gojek, which grew based in Southeast Asia, have solidified their market positions by expanding from mobility services like ride-sharing to delivery services. Although there are established players, Kim believes Woowa DH Asia has high growth potential. This market has a large population and very high economic growth rates. The developed dining-out culture and motorcycle culture are also reasons why the delivery market is expected to grow explosively in the future.
Domestically, Woowa Brothers is now operated under a single CEO system led by Lee Guk-hwan. Kim Beom-jun, former CEO and Chief Technology Officer (CTO), who had been co-CEO since 2020, declined the offer for renewal last year. A Baemin official said, "We entrusted responsibility and authority to CEO Lee and transitioned to a single CEO system to enable the new CEO to practice responsible management."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
