Baek Jong-won, CEO of The Born Korea, "Leap to a Comprehensive Food Company through Global Expansion"

"K-Content Influence Boosts Interest in K-Food... Global Growth Begins"
"Most Funds Raised Post-IPO to Be Used for M&A... Targeting Primary Sauce Producers"
Subscription for General Investors on 28-29th... Listed on KOSPI on November 6th

"Interest in K-Food is growing due to the influence of K-Content. We will expand globally by increasing overseas stores and selling sauces, aiming to become a comprehensive food company."

Baek Jong-won, CEO of The Born Korea, is giving a presentation at The Born Korea corporate briefing held at the Conrad Hotel in Yeongdeungpo-gu, Seoul, on the afternoon of the 28th. Photo by Kang Jin-hyung

Baek Jong-won, CEO of The Born Korea, announced this goal at an IPO briefing held on the 28th in Yeouido, Seoul.

The Born Korea was established in 1994. It operates the 'dining business' based on 25 food service franchises including Paik’s Coffee, Hong Kong Banjeom, Saemaeul Sikdang, Hanshin Pocha, and Yeokjeon Udon, the 'distribution business' providing various products such as home meal replacements (HMR), processed foods, and sauces to consumers, and the 'hotel business' through The Born Hotel in Jeju Island. Last year, it recorded consolidated sales of 410.7 billion KRW. The compound annual growth rate (CAGR) of sales from 2020 to 2023 was 39.7%. During the same period, the annual growth rates by business segment were 37.2% for dining, 78.9% for distribution, and 15.1% for hotels.

"Dining and Distribution Businesses... Domestic Growth Maintained, Overseas Growth in Full Swing"

The Born Korea currently operates about 2,900 stores domestically through 25 dining brands. In overseas markets, it runs 149 directly franchised stores in 14 countries including the United States, China, and Japan. The Born Korea has built a business model capable of expanding into various fields within the dining industry through competitive advantages such as brand marketing, R&D capabilities, production infrastructure, and multi-branding. Based on this, it has secured high market shares for each brand.

After listing, the dining business plans to steadily maintain the pace of domestic store openings and actively expand overseas operations. CEO Baek Jong-won said, "Currently, leading overseas franchise and distribution companies are approaching us," adding, "In the future, we plan to develop specific brands through master franchises."

Kang Seok-cheon, CFO of The Born Korea, forecasted, "The domestic distribution business has consistently grown over 40% annually," and "Overseas growth rates are expected to be even higher."

The distribution business shows continuous sales growth through sales and collaborations across various channels such as home shopping, convenience stores, and offline outlets with products like HMR, processed foods, and convenient sauces. Recently, it has expanded consumer touchpoints by entering its own mall and major online distribution channels. Along with diversifying B2B sales channels such as military meals, corporate catering (food material supply), and raw material supply to distributors, and expanding overseas markets, it plans to maintain growth momentum.

CEO Baek explained, "When abroad, there is a lot of interest in Korean food, and local restaurants want to include Korean dishes on their menus," adding, "We plan to supply sauces suitable for that demand or provide sauce products tailored to locals in supermarkets."

Baek Jong-won, CEO of The Born Korea, is attending The Born Korea IPO press conference held at Conrad Hotel in Yeouido, Seoul on the afternoon of the 28th, talking with co-CEO Kang Seok-won. Photo by Kang Jin-hyung

"Regional Development Business... Larger Than All Other The Born Korea Businesses"

The regional development business is also expected to become a pillar of growth. The Born Korea is developing regional development projects to contribute to the advancement of local dining industries and revitalize regional economies based on its expertise in dining franchise business. A representative example is Yesan Market in Chungnam.

He said, "Currently, similar projects are underway in several regions, and cautiously speaking, we expect this to be larger than all other businesses," adding, "This business helps regional development and allows The Born Korea to utilize local products in its distribution business, so we have high expectations."

The hotel business is described as a future-oriented business. ‘Hotel The Born Jeju,’ built to provide reasonably priced rooms and food to travelers visiting Jeju, has had a domestic tourist ratio of 99% since 2017. It also maintains a high occupancy rate of over 95%, operating stably.

He emphasized, "The most important thing in tourism is accommodation, and if there is cost-effectiveness, consumers do not turn away," adding, "We plan to develop it as a mid-range hotel with a story connected to the region."

CEO Baek Jong-won of The Born Korea is giving a corporate presentation at The Born Korea IPO briefing held on the 28th at the Conrad Hotel in Yeongdeungpo-gu, Seoul. Photo by Kang Jin-hyung

"Most of the Funds Raised After Listing Will Be Used for M&A"

The Born Korea will invest 93.5 billion KRW of the funds raised through listing into mergers and acquisitions (M&A). Targets include wholesale and retail food companies and food tech-related firms. CEO Baek said, "If we acquire companies producing primary sauces like soy sauce and gochujang, we can lower distribution costs for franchise stores," adding, "We are reviewing companies that produce primary sauces or have well-established distribution networks."

Lastly, CEO Baek explained that the reason for The Born Korea’s listing is to maintain dining prices. He said, "I believe The Born Korea is holding the price floor in the dining industry during the high inflation era," adding, "To continue that role, transparent management must be sustained even after retirement, and listing is part of that effort."

The Born Korea is conducting subscription for general investors from today until the 29th. It is scheduled to be listed on the KOSPI market on the 6th of next month. The lead underwriters are Korea Investment & Securities and NH Investment & Securities. The public offering price is 34,000 KRW. The total amount raised is 102 billion KRW. The market capitalization after listing is 491.8 billion KRW.