Jeong Yong-jin’s soju business failed…the liquidation of Jeju-si, which invested 86 billion won

Input 2021.03.04 19:11

Jeju-do stocks that could not cross the barriers of competitors Eventually liquidated as deficit accumulates
Acquired for 19 billion, and transfused 67 billion dollars over 4 years–

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Yongjin Jeong Shinsegae (004170)The vice chairman quits the’Jejujuju’ business, which used to be a’sick finger’. Vice-Chairman Jeong, who was ambitious in promoting the soju business, was unable to overcome the barriers of competitors such as Chamisul and like the first time, and ended with a business failure.

An official of Shinsegae Group said on the 4th, “Since last year, all possibilities have been opened and various plans related to the business have been reviewed,” he said. “We decided to suspend the business.” According to Shinsegae Group, Jeju Joo-ju, a subsidiary of E-Mart, held an employee briefing session the day before and gave a briefing on the business withdrawal situation and future processing procedures. Employees will move to E-Mart or Shinsegae L&B in the future through individual interviews.

In December 2016, Vice Chairman Chung acquired Jeju local company Jeju Juju for 19 billion won. In 2017, it launched a new brand’Blue Night’, but the market reaction was cold.

E-mart (139480)After the acquisition of Jejuju, the sales of Jeju Province increased from 200 million won in 2016 to 4.8 billion won in 2019, but the operating loss further increased from 1.9 billion won to 14.1 billion won. The larger the sales, the larger the deficit.

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During this period, E-Mart transferred 67 billion won to Jeju through six rights offerings, but the management situation did not improve. Including the acquisition amount, E-Mart’s money poured into Jeju-do amounted to 86 billion won. In response to the continued accumulation of deficits, E-Mart decided to liquidate after reviewing the directions of disposal of Jeju-do stocks from various angles, including external sales. –

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