Oh Gyusik to Oversee LF's Food Business Directly Starting This Year
LF Accelerates New Business Amid Fashion Industry Slump
CEO Since 2012... Key Driver of Business Diversification
Oh Gyusik, Vice Chairman and CEO of LF, known as the "Myth of the Salaryman" in the fashion industry (photo), will concurrently serve as chairman of its subsidiary LF Food. As the prolonged economic downturn has dealt a direct blow to the fashion industry, this personnel move is interpreted as an effort to grow the food division, a new business within the group, and develop into a comprehensive lifestyle culture company.
According to related industry sources on the 7th, LF established the chairman position at LF Food this year and appointed Vice Chairman Oh to the role. An LF official said, "Vice Chairman Oh Gyusik will directly oversee the food business starting this year," adding, "He will focus on strengthening the foundation to expand the food, clothing, and housing businesses."
Oh Gyusik LF CEO
Lee Seongyeon, CEO of LF Food, will manage the existing domestic business, while Vice Chairman Oh is expected to focus on overseas markets by cooperating with foreign partners and expanding the business. His annual salary is also expected to increase. In 2023, Vice Chairman Oh received approximately 1.6 billion KRW, including a salary of 960 million KRW and a bonus of 630 million KRW, making him the second highest-paid executive after Chairman Koo Bonggeol of LF.
Born in 1958, Vice Chairman Oh is regarded as a figure who achieved the "Myth of the Salaryman" in the fashion industry. Known as a financial expert, he has served as LF’s CEO since 2012, diversifying the company’s business areas beyond fashion to include online business, food, distribution, cosmetics, and real estate. He was promoted to vice chairman in 2018.
In the business community, it is seen that LF appointed Vice Chairman Oh to concurrently serve as chairman of LF Food based on the judgment that there is significant growth potential in the food market. LF’s core fashion sales have stagnated amid continued sluggish clothing consumption. As of the third quarter of last year, LF’s separate sales, including the fashion business segment, were 860 billion KRW, slightly down from 900 billion KRW a year earlier. The proportion of fashion sales in total revenue decreased from 77.4% last year to 71% in the third quarter of this year. Meanwhile, LF Food’s sales ratio increased from 15.7% to 16.5%.
The fashion market outlook for this year is also challenging. The Samsung Fashion Institute forecasts that the domestic fashion market will continue a low-growth trend of 1-2%. Due to high inflation and economic recession, consumers are reluctant to spend on clothing. Additionally, the prolonged high exchange rate trend is expected to worsen the profitability of fashion companies.
LF Food is the first subsidiary established by LF after its spin-off from LG Group in 2007. Its business consists of F&B and food ingredient distribution. The company discovers domestic and international brands such as sauces and pork cutlets and supplies them to domestic wholesale and retail clients. It has suppliers in Japan, China, Southeast Asia, and Europe. The global food ingredient market, Monomart, accelerates securing loyal customers based on data analysis of purchasing customers. Through brands like Monokitchen, Kraze, and Hanban12, it has entered the home meal replacement business, diversifying its portfolio. In 2023, it recorded sales of 156.4 billion KRW and an operating profit of 5.7 billion KRW.
This highlights the importance of the food business’s role for LF to leap forward as a comprehensive lifestyle culture company. Over the past decade, LF has focused on transforming its corporate DNA from fashion to a comprehensive lifestyle culture company to expand its scale. Starting this year, it plans to focus on creating integrated synergies and improving organizational efficiency.
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