Media Conference Held Over Two Days Starting May 12
"Franchisees Are the Top Priority... Eight Korean Sauces Developed for Export"
"Considering Acquiring Ingredient Production Plant With IPO Funds"
Baek Jongwon, CEO of Theborn Korea, announced plans to focus on developing Korean food sauces with global competitiveness. The company has recently faced consumer boycotts due to various controversies, including false labeling of product origins. Attention is now focused on whether Theborn Korea can seize an opportunity for a turnaround and restore its halved corporate value.
From May 12 for two days, Baek held a media conference at a Chinese restaurant in Gangnam-gu, Seoul. He stated, "My ultimate goal is to create a sauce that lets people around the world experience the flavors of Korean cuisine anywhere, just like Sriracha, Tabasco, or oyster sauce."
This press conference was organized in response to a series of controversies that emerged after Theborn Korea's listing in November 2024. Baek addressed the issues the company is facing and outlined future plans.
Baek emphasized, "Rather than maximizing profits through the franchise business, I will create a virtuous cycle that benefits both store owners and shareholders by expanding our distribution business." Theborn Korea has already completed development of six out of eight sauces intended for overseas export, with the remaining two still in development. He also revealed that a major German distributor, referred to as 'Company G,' has requested the creation of a Bibimbap brand and menu, which is set to launch in June.
Since February, Theborn Korea has been embroiled in a series of controversies, including quality issues with its 'Paekham' product, allegations of violating agricultural land laws, errors in product origin labeling, accusations that a company executive invited female job applicants to a drinking party under the pretext of an interview, and criticism over monopolizing local festivals and abandoning equipment and ingredients on-site. These incidents led to intensified criticism of Baek and Theborn Korea. Baek has been criminally charged three times in connection with these allegations.
Baek stated, "The top priority is to quickly resolve the difficulties faced by our franchisees," and promised, "We will immediately implement a 30 billion won support plan over the next three months to improve the situation." He added, "I will treat this crisis as a second founding opportunity, using it to identify and address issues we previously overlooked."
He also mentioned the possibility of investing funds raised through the company's IPO into the sauce business. Baek explained, "We are comprehensively considering options such as acquiring a second brand and purchasing a primary ingredient production plant to reduce sauce costs. However, these measures will only be pursued after correcting existing problems and ensuring stability for our franchisees."
Baek further stated, "Right now, improving the situation for our franchisees is the top priority, and demonstrating the potential for our stock price to recover is most important. I believe that showing the company's vision is more important at this time than implementing any immediate stock price boosting measures."
In fact, Theborn Korea's stock price has halved since its listing in November 2024. When the company went public on November 6, 2024, its share price soared to 64,500 won?about twice the IPO price of 34,000 won. However, it has since fallen to less than half of that opening day high. On the previous day, Theborn Korea closed at 27,100 won.
Baek commented, "Generating high profits through the franchise business ultimately means squeezing the profits of our franchisees. As we envisioned at the time of our IPO, we will strive for long-term growth and increased shareholder value by expanding regional development, distribution, and overseas businesses. If our performance improves as a result, we will also consider increasing dividends."
He appealed, "As we are making efforts to improve, I ask for your patience and continued support."
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