NongHyup Economic Holdings will absorb and merge NH Nonghyup Hanaro Mart to restructure its retail organization. It comes about 12 years after Hanaro Mart was launched as a separate entity.
According to the industry on the 11th, NongHyup Economic Holdings plans to convene a board meeting at the end of this month to approve the plan to absorb and merge Hanaro Mart. The scheduled merger date is Jan. 1 next year.
Once the merger process is completed, Hanaro Mart's workforce, asset, store operations, and other functions will transfer to NongHyup Economic Holdings, and the Hanaro Mart corporation will be dissolved.
It is reported that, after the merger, a plan is under review to transfer the direct-operation Hanaro Mart functions to Korea Agricultural Cooperative Marketing Inc.
NongHyup Economic Holdings will focus on headquarters functions such as product purchasing and supply, while unifying store sales functions under Korea Agricultural Cooperative Marketing Inc.
The merger is being pursued amid continued deterioration in Hanaro Mart's performance. Over the past three years, Hanaro Mart's cumulative operating loss has reached 111.3 billion won.