The South Korea-based conglomerate, Hanwha Group, is reported to be contemplating the sale of FG Korea, the operator of the American burger franchise Five Guys in South Korea.
FG Korea functions as a fully-owned subsidiary of Hanwha Galleria, which is the retail division of Hanwha Group. The company recently disseminated documents to private equity firms via a local accounting firm, Samil PwC. This action is seen as an indicator of a possible sale. It is anticipated that if a sale does occur, it would likely result in the complete transfer of ownership of the company.
FG Korea was instrumental in introducing Five Guys to the South Korean market in 2023, with the inaugural restaurant opening in the Gangnam district of Seoul. Since then, the chain has grown to include seven branches, with plans for an eighth location to open later this month in Yongsan, central Seoul.
In the previous year, FG Korea had entered into an agreement with Five Guys International to spearhead the brand’s expansion into Japan, with an ambitious goal of establishing more than 20 outlets within the span of seven years.
In the past fiscal year, FG Korea reported significant sales of 46.5 billion won (approximately US$33.4 million) and a net income of 2 billion won.
This potential sale is understood to be part of Hanwha Galleria’s attempts to optimize its portfolio and reduce expenses.
What is the relationship between FG Korea and Hanwha Group?
FG Korea is a wholly-owned subsidiary of Hanwha Galleria, which is the retail branch of Hanwha Group.
What has been FG Korea’s role in the expansion of Five Guys?
FG Korea brought Five Guys to South Korea in 2023 and has since helped the brand grow to seven locations. Furthermore, they have also signed a memorandum of understanding with Five Guys International to lead the brand’s expansion into Japan.
What is the financial performance of FG Korea in the past fiscal year?
FG Korea reported 46.5 billion won (approximately US$33.4 million) in sales and a net income of 2 billion won in the last fiscal year.
