Integration of Corporate Names into bhc Including Changgo43 and Keunmam Halmae Sundaeguk for "Management Efficiency"

Board Meeting Held on the 18th to Approve Agenda
"For Management Efficiency and Competitiveness Enhancement"

bhc Group has decided to integrate the corporate names of bhc Chicken, Changgo43, and others to improve management efficiency.

bhc announced on the 22nd that it held a board meeting on the 18th and passed a resolution regarding the corporate integration.

The main purpose of bhc's integration of the corporate names of each brand is to enhance business competitiveness through management efficiency and concentration of capabilities among brands within the bhc Group.

Since bhc Chicken established an independent operation system in 2013, bhc has grown into a leading comprehensive dining company in Korea by acquiring Changgo43 in 2014, Keunmam Halmae Sundaeguk in 2016, and Outback Steakhouse in 2021.

bhc has rapidly expanded its scale by operating each brand as a separate subsidiary during new brand launches and mergers and acquisitions, but there have been some inefficiencies as identical or similar tasks were carried out separately by each business unit.

In particular, because each brand had a different corporate entity, administrative inconveniences arose in legal matters, contract signing, document management, and seal and stamp management. Additionally, despite being leaders in their respective industries, brands like Changgo43 and Keunmam Halmae Sundaeguk faced difficulties in business expansion due to low corporate name recognition.

Therefore, the strategy is to maximize synergy among brands by integrating corporate names under the highly recognized bhc brand. This is also expected to positively impact the trustworthiness of transactions with franchisees and partners, significantly improving direct and indirect transaction costs.

However, Outback Steakhouse is excluded from this corporate integration due to contractual relationships with the U.S. Outback headquarters.

A bhc official stated, “With this integration, partner companies that previously had duplicate transactions by brand will no longer need separate contracts for each brand, fundamentally eliminating confusion caused by somewhat different policies across brands. There is a significant advantage in that unnecessary tasks are greatly reduced by avoiding duplicate or triplicate work on similar or identical tasks across brands.”