FSN Restructures Business as Accelerator to "Maximize Growth and Profitability"

FSN, a KOSDAQ-listed company, announced on the 25th that it will redefine its business as ‘The Accelerator’ and restructure its business around this concept. The company plans to complete the management efficiency improvements and affiliate integrations initiated early last year and focus on profitability-centered businesses to achieve performance growth.

FSN’s accelerator business has evolved from simple advertising agency services to a structure that participates in the entire marketing and sales process of brands, helping partner companies and brands grow, and even making equity investments in high-growth brands. By adding the capabilities of key marketing and tech affiliates to the brand aggregator business operated by its subsidiary Boosters, FSN plans to operate the business in a more specialized form than before.

FSN has segmented its accelerator business into client, brand, and platform divisions. In the client division, advertising and marketing accelerating services are provided mainly through four major affiliates integrated under FSN: Adqua Interactive, Motherbrain, Next Media Group, and Recobell.

The strategy is to offer one-stop advertising and marketing services across all areas?from strategic planning to creative and media execution?to contribute to the client’s actual sales growth. The client accelerator business is a core competency that helped FSN grow into the largest independent advertising agency in Korea, and it is expected to continue serving as a stable cash cow in the future. Brand accelerating supports all areas to increase sales of promising brands, including optimized advertising marketing. This business is handled by the subsidiary Boosters.

The platform accelerating business is launching its own mobile platforms and securing users through technological capabilities and marketing expertise. It is expected to become a new revenue source for FSN. The subsidiary Boosters has acquired Korea’s No.1 hair loss community ‘Daedamo’ and the MZ generation women’s community app ‘Sokdak,’ growing them into leading domestic apps by category. Another subsidiary, Doohub, is successfully operating reward-based advertising platforms such as ‘Cashplay,’ ‘Cashrun,’ ‘MyOnePick,’ and ‘PointClick.’ In particular, the platform business is expected to have high growth potential as it not only applies its own technology and marketing capabilities but also runs various advertisements within the platforms and creates synergies with FSN’s major brands.

Along with the business restructuring, FSN is successfully completing management efficiency improvements and affiliate integration. Since last year, FSN has implemented an overall business structure reorganization, including integrating affiliates engaged in similar businesses. It is streamlining the organizations necessary for corporate management and consolidating the competitiveness that each legal entity held separately into core business entities to maximize synergy. The number of subsidiaries has significantly decreased compared to the previous year. Additionally, FSN has shifted from an autonomous management system to a performance-oriented responsible management system. The business sectors have also been largely divided into the accelerator division and the new tech division to enhance their respective expertise and profitability.

Seojeonggyo, CEO of FSN, said, “The transition to an accelerator is about redefining the essence of the business to go beyond traditional advertising agencies and grow alongside multiple brands and platforms.” He added, “FSN possesses capable companies and platforms to carry this out, and we have confirmed the business potential through Boosters.” He emphasized, “We will now focus on full-scale growth through the accelerator business and reorganize it into a profitable business that can take responsibility for both the present and the future, aiming for stable growth this year.”