Jeju Special Self-Governing Province Development Corporation (hereinafter Jeju Development Corporation) will take over exclusive responsibility for home delivery of Jeju Samdasoo starting in April. Home delivery is a service that takes orders nationwide through the official Jeju Samdasoo application (app) and delivers them. It has been in operation since 2019.
According to industry sources on the 11th, home delivery that Kwangdong Pharmaceutical has handled as the entrusted sales company for Jeju Samdasoo will be exclusively managed by Jeju Development Corporation starting in April this year. Until now, distribution of Jeju Samdasoo was structured so that Jeju Development Corporation handled only sales within Jeju Island, while Kwangdong Pharmaceutical handled offline distribution outside Jeju and online sales on platforms such as Coupang and Naver, as well as home delivery through the official app.
Jeju Development Corporation taking over exclusive operation of home delivery is due to adjustments in the distribution structure under a contract signed last year. A Jeju Development Corporation official said, "After completing the handover procedures, the corporation plans to exclusively operate home delivery starting in April."
On Sept. 25 last year, Jeju Development Corporation selected Kwangdong Pharmaceutical as the entrusted distributor for Jeju Samdasoo through an open competitive bid and signed the main contract. Under the agreement, Kwangdong Pharmaceutical will supply and sell Jeju Samdasoo nationwide, excluding Jeju Island, for four years from Jan. 1 this year to Dec. 31, 2029.
Kwangdong Pharmaceutical said it plans to pursue a distribution strategy tailored to the changed sales channels based on the distribution know-how it has accumulated. However, Kwangdong Pharmaceutical said it is difficult to disclose the impact on sales related to the exclusion of home delivery because it is confidential.
Industry watchers say this type of direct operation via online and in-house apps is not uncommon in recent distribution contracts. A distribution industry official said, "Operating online and in-house apps is an area where customer data and brand management happen together, and it is a trend seen across the food and beverage sector." A food industry official said, "In online channels, it is important to directly control pricing policies and marketing messages," adding, "It appears Jeju Development Corporation made the decision with efficiency in mind."