[Company Visit] Monayongpyeong "Harnessing the Energy of the Hallyu Origin to Target K-Food"

Development of Healthy Food Made from Natural Ingredients
Korean Wave Stars Participate... Export of 'Well-being K-Food'

Panoramic view of Monayongpyeong.

"Is this kimchi made here? Where can I buy it?"

When visiting Mona Yongpyeong on the 14th, an elderly guest was asking a staff member this question at the entrance of the restaurant on the first floor of Dragon Valley Hotel. The guest said that they had made kimchi all their life, but the kimchi served at the restaurant perfectly suited their taste, and they wanted to purchase it.

The kimchi used in the restaurant is 'Balwangsan Gipum-eun Kimchi,' directly produced by Mona Yongpyeong. It was developed in collaboration with the head Korean cuisine chef of Dragon Valley Hotel and Pyeongchang's master kimchi maker, Kkotsooni. It is characterized by its deep flavor without chemical additives, using natural bedrock water from Balwangsan and hydrangea tea leaves that provide natural sweetness.

Mona Yongpyeong, which has operated resorts based on the great nature of Gangwon Province since the 1970s, is recently focusing on its F&B (Food & Beverage) business. This is thanks to long-term exposure to local natural ingredients and numerous research efforts, laying the foundation to create healthy food unique to Mona Yongpyeong.

From 2021 to last year, after product development and verification, they have established a diverse product lineup including not only kimchi but also hydrangea tea, soy sauce, doenjang (fermented soybean paste), seaweed, and ice cream, with plans to continue expanding items such as ramen and dumplings. In July, they plan to establish a food business corporation called 'Mona Yongpyeong Welllife' to actively pursue nationwide distribution and overseas exports. A famous Hallyu star will participate in this corporation to support its efforts.

Shin Dalsun, CEO of Mona Yongpyeong and former president of JW Marriott Hotel Seoul, a Shinsegae affiliate, said, "We have built an exclusive supply chain for natural ingredients with the goal of creating the healthiest food without chemical additives," adding, "We aim for high value-added products recognized for quality and brand, and will expand distribution networks centered in the metropolitan area through partnerships."

CEO Shin also stated, "Mona Yongpyeong became the birthplace of Hallyu as the filming location of Winter Sonata starring Bae Yong-joon and Choi Ji-woo in 2002," and "Inspired by Balwangsan, which has the energy to create kings, we will become a leading player of K-food in the global market."

In fact, Mona Yongpyeong plans to enter Southeast Asian markets such as Vietnam and Indonesia through its Malaysian subsidiary, which has been operating existing businesses. To this end, they are collaborating with Berjaya Group, ranked 6th in the Malaysian business community. With such exports and expansion of domestic distribution networks, Mona Yongpyeong aims for an average annual growth rate of 90% in food business sales over five years.

Not only the food business but also the core businesses of sales and operating revenue are expected to generate stable income. Mona Yongpyeong operates about 2,500 condo units, hotels, ski resorts, golf courses, and water parks. Last year, it recorded sales of 211.6 billion KRW and operating profit of 21.4 billion KRW. The sales ratio was 65.5% from operating revenue and 34.5% from sales revenue.

Regarding operating revenue, the occupancy rate rose to the 60% range last year, surpassing the break-even point. The resort industry considers a 50% occupancy rate as the break-even point. During the COVID-19 period, it dropped to 40%, causing losses, but recently, domestic travel demand surged and foreign tourists recovered more than 87% compared to before COVID-19, leading to an increase in occupancy rates.

CEO Shin explained, "During the tourism industry slump caused by COVID-19, we developed new content such as the millennium juniper forest and mountain magnolia forest at Balwangsan, the 12th highest mountain in Korea," adding, "As a result, the number of visitors to the Balwangsan tourist cable car increased more than fivefold from about 280,000 in 2018, serving as a catalyst for resort operating income to enter a growth phase."

Sales revenue is also expected to continue. Mona Yongpyeong is currently selling the high-end condo 'Rusongchae' with a goal of completing sales by 2025. The project has a total planned sales amount of 414.5 billion KRW and a planned construction cost of 303.2 billion KRW. After 2025, developments such as Dirocus (330 units) and Antinue (100 units) are planned within the Yongpyeong tourism complex, along with plans for a comprehensive theme park including condos in Gyeongpo, Gangneung (581 units), condos in Gochang, Jeonbuk (300 units), a public 18-hole golf course, and an artificial rafting site.

CEO Shin said, "Mona Yongpyeong has never failed to sell out in sales so far," adding, "Because the value of Mona Yongpyeong condos has continuously increased, existing members inquire first and spread the word, making them popular."

With such 100% successful sales, Mona Yongpyeong has never resorted to project financing (PF) while running seven premium condo projects. Construction costs could be covered by advance payments from sales. This is why Mona Yongpyeong is unaffected by the recent unstable PF market atmosphere.

CEO Shin stated, "Mona Yongpyeong is not just a resort with ski and golf courses but develops tourism content with stories and competitiveness, offering various pleasures such as sightseeing, food, photo spots, entertainment, healing courses for experience and recovery," adding, "Through this, we aim to become a company with sales of 1 trillion KRW by 2033."