"A Resort You Want to Stay At"... Kim Minsu, CEO of Haevichi, Bets on Premium Strategy

Haevichi Resort Jeju to Reopen Renovated on 29th
Premium Transformation of Rooms, Dining, and Activities
Targeting Travel Trends Seeking Small Groups and Unique Experiences
Differentiation through Service Improvement and Experience Programs

"The goal is to serve as a base camp symbolizing tourist destinations in the eastern region of Jeju."

Kim Minsu, CEO of Haevichi Hotel & Resort, said at a press conference commemorating the reopening after renovation held on the 20th at Haevichi Resort Jeju in Seogwipo, Jeju, "With the renovation, we have prepared extensively so that the resort is not just a place to sleep, but a tourist destination in itself."

Kim Min-su, CEO of Haevichi Hotel & Resort, is explaining the facility renewal at a press conference held on the 20th.
[Photo by Haevichi Hotel & Resort]

Haevichi Hotel & Resort, an affiliate of Hyundai Motor Group, began a full-scale renovation of Haevichi Resort Jeju, which opened in 2003, in July last year to mark its 20th anniversary. After completing 10 months of construction, it will resume operations from the 29th. The renovation, which cost a total of 72 billion KRW, transformed the entire facility into a space comparable to a 5-star hotel, leaving only the building’s framework intact. The 215 rooms in 10 different types reduced kitchen space while expanding living rooms and bedrooms, upgrading them to the level of luxury hotel suites. Furniture and accessories in the rooms were commissioned from notable domestic furniture designers such as Lee Jaeha and Cho Byungjoo.

CEO Kim explained, "Twenty years ago when Haevichi opened, 2-3 families would gather and about 10 people would stay in one room, using the resort for grilling meat or cooking. Recently, travel trends have shifted to smaller groups like families of 3-4 or couples, so we focused on modernizing the structure to ensure the resort remains beloved." He added, "We used eco-friendly materials for the interior and upgraded overall services to premium hotel standards. We designed the space so guests can feel like this is their second home or villa."

The Master Suite room at Haevichi Resort Jeju, newly renovated after 10 months of renovation work
[Photo by Haevichi Hotel & Resort]

To evolve into a 'staycation resort' where guests can relax and enjoy their vacation in one place, ancillary facilities and experience programs were also enhanced. In food and beverage services, the existing breakfast buffet-focused lounge caf? was converted into an Italian fine dining restaurant, and a new sushi and sukiyaki omakase specialty restaurant was established. The outdoor pool, previously operated only seasonally in summer, was transformed into a year-round heated pool. A resort-exclusive wellness program was newly introduced, offering free reservations for guests to enjoy morning runs or bike rides along the Pyoseon coastline, 'forest trekking' on recommended forest trails or oreums (volcanic cones) depending on the season, and 'sunset yoga and singing bowl therapy' experiences at dusk.

CEO Kim said, "Most of Jeju’s major tourist spots are concentrated in the western region including Jungmun, and the eastern region where Haevichi Resort is located has received relatively less attention due to its distance from the airport and lower recognition. However, as more travelers seek value consumption, providing differentiated experiences such as the peaceful and beautiful natural scenery surrounding Haevichi and premium services could turn this disadvantage into an advantage." The company also established a Customer Experience (CX) team to continuously develop activity programs that consumers desire.

Haevichi Resort Jeju's Junior Suite Terrace Room
[Photo by Haevichi Hotel & Resort]

Kim, who graduated from Seoul National University’s Business Administration department and earned a master’s degree in business administration from the University of Michigan, previously served as director of brand strategy and marketing executive at Hyundai Motor Group. He is a marketing expert who contributed to raising awareness and market establishment of Hyundai’s premium brand 'Genesis.' Since his appointment as CEO of Haevichi Hotel & Resort in December 2019, now in his fifth year, he plans to pursue a premium strategy to improve profitability in both hotel and resort businesses. Haevichi Hotel & Resort recorded consolidated sales of 162.9 billion KRW and an operating loss of 14.6 billion KRW last year. The operating loss increased by over 10 billion KRW from 4.1 billion KRW the previous year.

CEO Kim said, "The renovation increased the deficit due to construction costs, but we expect to turn profitable from next year. Our goal is to raise the average room rate by about 30% to increase revenue." Haevichi’s calculation is that even if the amount paid by guests increases through the renewal, considering the satisfaction guests feel in the rooms and the benefits of free experience programs, the cost burden is not significant compared to competitors.

Additionally, the company plans to expand profitability by simultaneously operating various businesses such as Haevichi Country Club (CC) golf courses in Namyangju, Gyeonggi Province and Jeju, dining businesses including Korean, Western, Chinese, and Japanese cuisine, lounge services in prime office buildings, Life Fitness, and outsourced operation of training centers. CEO Kim hinted, "The outsourced service operation business for prime office buildings currently underway at two locations, Centro Polis in Jongno-gu, Seoul, and Grand Central in Jung-gu, will add three more sites within this year."