INNOCEAN, the advertising affiliate of Hyundai Motor Group, will reappoint adviser Chung Sung-yi, a "third-generation member of the Hyundai family," as an inside director. INNOCEAN will also diversify its business structure by strengthening mobile- and internet-based communications platform (CPaaS) services and sports management. The strategy is to move beyond the traditional ad-agency-centered structure and expand digital-based services and sports marketing businesses.
According to the advertising industry on the 9th, INNOCEAN will bring a proposal to reappoint adviser Chung, the largest shareholder with 17.69% equity in the company, as an inside director to the shareholders meeting on the 18th.
Adviser Chung is the eldest daughter of honorary chairman Chung Mong-koo of Hyundai Motor Group and the granddaughter of the late Hyundai Group founder Chung Ju-yung. The sibling currently leading Hyundai Motor Group is chairman Chung Eui-sun.
Since spearheading INNOCEAN's founding in 2005, adviser Chung has served as an inside director for about 21 years to date, taking part in major decision-making. She is known to have played a key role particularly in brand advertising strategy and global business expansion. INNOCEAN posted 2.1454 trillion won in revenue and 163.2 billion won in operating profit last year.
The industry expects that, absent special variables, the proposal to reappoint adviser Chung as an inside director is likely to pass at the upcoming shareholders meeting.
At this shareholders meeting, INNOCEAN will also submit partial amendments to its articles, including the introduction of a CPaaS (Communications Platform as a Service) business and the addition of athlete management. CPaaS is a platform service that provides various communications functions—such as text, voice and messaging—on a cloud basis. Corporations can use this platform to deliver necessary messages to customers across multiple channels and operate marketing and customer relationship management (CRM) tasks efficiently.
INNOCEAN noted that the advertising market environment is rapidly shifting from a single-channel, TV-centered structure to an omnichannel communications structure based on proprietary messaging. The company determined that growth is limited with a business focused only on traditional ad production and agency services. The advancement of Generative AI and the growth of the digital advertising market are also cited as reasons for the change in business structure.
An INNOCEAN official said, "We plan to build a service model that designs and operates the points of contact between advertisers and consumers in an integrated way on behalf of advertisers."
INNOCEAN is said to be preparing the registration process as a special value-added telecommunications service provider under the Telecommunications Business Act, which is required to promote the CPaaS business.
The athlete management business is part of clarifying and advancing the existing business. INNOCEAN has produced and executed advertising related to global sporting events such as the World Cup and the Olympics. It has also handled management tasks for athletes sponsored by advertisers such as Hyundai Motor.
INNOCEAN plans to formalize the business to systematically strengthen its capabilities in sports marketing and athlete management. As the sports marketing market is expanding into story- and relationship-centered marketing based on individual athlete branding and intellectual property (IP), the strategy is to build brand IP and revenue models that can be leveraged over the long term through the athlete management business.
An industry official said, "INNOCEAN is pushing to transform itself into a comprehensive marketing corporations that combines messaging-based digital platforms with sports IP, beyond ad agency work," adding, "If the proposals are approved at the shareholders meeting, the pivot to digital-centered businesses is expected to accelerate."