SPC Group Launches 'Sangmidang Holdings'...Transition to Holding Company Structure

Enhancing Management Transparency and Expertise
Company Name Embodies the Founding Spirit of 'Sangmidang'

SPC Group is transitioning to a holding company structure.

On January 13, SPC Group announced the launch of its holding company, Sangmidang Holdings (SMDH), and revealed plans to reorganize the group’s overall governance structure under the holding company model.

The core affiliate, Paris Croissant, held an extraordinary general meeting of shareholders on December 31 last year and approved a proposal to physically split the company into Sangmidang Holdings as the holding company and Paris Croissant as the operating company. As a result, Paris Croissant will remain as an operating company, while Sangmidang Holdings will serve as the group’s pure holding company.

Provided by SPC Group.

SPC Group explained that this transition to a holding company structure is a measure to respond to the rapidly changing business environment and to expand its overseas operations. Although Paris Croissant had already been functioning as a de facto holding company by holding stakes in multiple affiliates, the company aims to enhance transparency and expertise in governance by separating the business and governance divisions. The company expects that this will also strengthen its competitiveness in terms of environmental, social, and governance (ESG) standards.

The name 'Sangmidang' for the holding company originates from the starting point of SPC Group. Sangmidang was a bakery opened in Ongjin, Hwanghae Province in 1945 by the late honorary chairman Hur Chang-sung, meaning 'a place that offers delicious and good things.' The Sangmidang spirit-'Even if you make millions of loaves of bread, customers judge you by a single loaf,' and 'Sharing bread becomes a meal, sharing skills becomes a dream'-has been carried on as SPC Group’s management philosophy.

Sangmidang Holdings will be responsible for establishing the group’s mid- to long-term vision and global business strategy, and will support each affiliate so they can focus on their core businesses. The company plans to ensure that key values such as compliance, safety, and innovation are consistently applied across the group. Affiliates will enhance their expertise and execution speed through independent management based on autonomy and accountability.

A representative from Sangmidang Holdings stated, "The holding company structure will serve as a foundation to advance the company’s competitiveness and expertise, enabling sustainable growth even in a rapidly changing environment. Based on a transparent corporate structure and responsible management, we will build a trusted management system not only in Korea but also in the global market."