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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] The Born Korea [475560], a leading food service franchise operator led by celebrity chef Baek Jong-won, reported second-quarter consolidated revenue of ₩74.2 billion, down 34.5% year-on-year. The company, which posted an operating profit of ₩10 billion in the same period last year, swung to an operating loss of ₩22.5 billion in Q2 2024, raising concerns over its future stock performance.
According to the company’s disclosure on August 14, the decline was partly due to a ₩30 billion “coexistence support fund” injected since May to help franchisees boost sales. A company official explained, “Considering weak consumer sentiment, rising costs, and external factors surrounding The Born Korea, the underlying performance—excluding the ₩30 billion support—was relatively resilient.” The official also noted that discounted promotions lowered sales during the quarter.
The company has also been grappling with reputational challenges. Allegations including farmland law violations and other controversies surrounding Baek Jong-won have negatively impacted brand performance. In response, The Born Korea convened an emergency coexistence committee with franchisee representatives, pledging joint action against malicious YouTubers accused of spreading false information and damaging the reputation of franchise owners through provocative content.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
