Kyowon Group announced on the 21st that its in-house venture, Cheotjang Company, will be spun off as an independent corporation.
Cheotjang Company is the first startup born through Kyowon Group's in-house venture system. In 2022, it proposed the funeral comprehensive platform business ‘Cheotjang’ at the in-house venture contest, won first place by gaining recognition for its business potential. After a two-year incubation period, including support of 200 million KRW in business funds, the decision to spin off independently was made this month.
Jang Dong-ha, Vice President of Kyowon Group (center), is taking a commemorative photo with executives and employees at the launch ceremony of Cheotjang Company. Photo by Kyowon Group
Cheotjang Company has been developing the funeral comprehensive platform service ‘Cheotjang’ to solve information asymmetry and accessibility issues in the funeral business. This app allows users to search and compare information on prices, facilities, and locations of over 1,000 funeral halls nationwide and about 100 burial sites in the metropolitan area. It provides information on funeral procedures and necessary documents, as well as free services such as ‘24/7 deceased transportation’ and ‘professional burial site consulting.’ Various additional services are also operated, including an online memorial hall, online obituary notices, and condolence flower wreath orders.
Cheotjang proved its business viability by surpassing 10,000 cumulative downloads within two months of service launch. The number of users has steadily increased, exceeding 33,000 cumulative downloads as of the end of October this year. Monthly sales also grew from about 2 million KRW at launch to around 10 million KRW, achieving cumulative sales of 500 million KRW within one year, thus demonstrating profitability.
Cheotjang Company is pursuing diversification of its revenue model through business expansion. For example, in May, it launched the official Cheotjang website, expanding the service channel from the ‘mobile app’ to the ‘website’ to improve accessibility. In the future, it plans to expand burial site information services to the Gyeongsang-do regions such as Daegu and Busan, and introduce personalized burial site recommendations and premium memorial services.
Kyowon Group will continue to support Cheotjang Company’s growth after the spin-off. To help ensure stable business operations, it will invest in a 19% stake and pursue various collaborations.
A Kyowon Group official said, "Cheotjang Company is the first case of an in-house venture spin-off at Kyowon Group, and we hope it will grow into a company leading innovation in Korea’s funeral industry through successful business operations," adding, "We will continue to pay attention and make efforts so that employees’ creative ideas can be actively reflected in business."
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