Hanwha Galleria CEO Kim Young-hoon said on the 26th, "We will rebuild a customer-centered business model and solidly improve the revenue structure."
Kim said this at the annual shareholders meeting held on the 63rd floor of the Hanwha Finance Center in Yeongdeungpo District, Seoul, saying, "This year, an environment of limited growth and lingering uncertainty will continue."
Regarding last year's business environment, Kim noted, "It was a period of high volatility due to external variables such as the prolonged global high interest rate stance and uncertainty over major countries' currency policy shifts, geopolitical conflicts, and strengthened protectionism," and assessed, "The department store industry struggled to maintain business competitiveness as consumer spending contracted while expense pressures rose at the same time."
He continued, "Although short-term operating improvement was limited due to renovation work at the luxury hall, we focused on securing a foundation for future growth through improvements to the expense structure, stabilization of new subsidiaries' businesses, and investments in premium real estate," adding, "It was a year of strengthening fundamentals despite difficult conditions."
He also emphasized the trend of improved profitability. Kim said, "Although investments and one-off expenses occurred during the launch of new businesses, ordinary profit improved significantly year over year thanks to valuation gains on investment assets and greater efficiency in the department store business," and added, "We will continue to pursue both top-line expansion and operational efficiency while preparing mid- to long-term tasks and new businesses."
As for future strategy, he proposed reconstruction of the luxury hall, expansion into new businesses, and real estate development. He emphasized, "To secure future growth drivers, we will advance the luxury hall reconstruction project and closely review a range of investment opportunities."
Meanwhile, all agenda items submitted to the shareholders meeting passed as originally proposed. The main items were: ◇ approval of the third-term financial statements ◇ partial amendments to the articles of incorporation ◇ appointment of inside director Kim Yun-sik ◇ appointment of outside director Song Ji-hye, who will serve on the audit committee ◇ approval of the limit on directors' compensation.