Kim Young-hoon, CEO of Hanwha Galleria, said on the 25th, "We will return to basics, thoroughly rebuild our customer-centric business model, and solidly improve our revenue structure to establish a sustainable management system."
During the second regular shareholders' meeting held at the Hanwha Financial Center 63 in the Yeongdeungpo district of Seoul that morning, Kim noted, "We plan to prepare for medium- to long-term tasks and new businesses without any disruption, alongside improving revenue through business expansion and operational efficiency."
Kim stated, "Despite the advancement of the interest rate reduction cycle in 2024, the increased uncertainty surrounding major economic policies following the U.S. presidential election and the ongoing high currency exchange rates and inflationary pressures have led to expanded signals of economic recession," adding, "It has been a year where the business environment of the retail industry faced more difficulties due to weak recovery in domestic consumption and deepening polarization."
He continued, "Although the significant renewal construction of the luxury goods department did not result in much operational improvement, we conducted various activities to secure future growth engines and improve performance through substantial expense structure improvement, early stabilization of subsidiary performances, and premium real estate investments," adding, "Through this, we were able to endure despite last year's economic recession."
As of the end of last year, Hanwha Galleria's total assets amounted to 1.88 trillion won, and liabilities were 1.1 trillion won, resulting in a debt ratio of 135%. In this regard, Kim explained, "We maintained sound financial stability that is below the industry average."
He mentioned that the record of 538.3 billion won in sales, 3.1 billion won in operating profit, and a net loss of 18.8 billion won was influenced by "the effects of the deteriorating consumption environment and economy, but also by one-time expenses arising from launching new businesses and investments to secure future growth engines."
Kim predicted, "This year will also be very challenging for our economy, as the uncertainty of global trade conflicts increases, competition with major countries intensifies, and protectionist policies strengthen, leading to limited growth. "
He pledged, "Our employees will return to basics, thoroughly rebuild a customer-centric business model, and solidly improve our revenue structure to establish a sustainable management system."
He also added that through the acquisition of PurePlus, a food and beverage company, and the incorporation of Vero Scoop Creamery, a premium ice cream manufacturing and distribution business, "we will accelerate the transition to high value-added businesses."