'The Slow Village Makgeolli' brand is well-known for traditional liquor manufacturer Baesangmyunju Co. It was confirmed on the 15th that the company sold its headquarters building in Seocho-gu, Seoul. This building was gifted to the founder Baesangmyun, who passed away, by his father, CEO Baeyoung-ho, in 2006. The building, named 'Ugok Building,' was named after the founder's pen name. The founder is known for preserving the tradition of Korean traditional liquor.
According to the liquor industry, private equity and venture capital firm SkyLake Investment recently completed the registration of the Ugok Building in Seocho-gu, Seoul. The property purchased is a building consisting of three basement floors and six above-ground floors. The purchase price was 35 billion won. The sellers are Baesangmyunju CEO Baeyoung-ho and his family.
This building has served as the headquarters of Baesangmyunju for a long time. The first store of Baesangmyunju's franchise brand, The Slow Village Brewery, was also located in this building. A Baesangmyunju official stated, "The Slow Village Brewery has moved to a location with more foot traffic near Yangjae Citizen's Forest, and the headquarters has also relocated nearby," adding, "We do not have detailed information regarding the sale background as it was sold as private property rather than corporate assets."
Some within the liquor industry express regret over the story behind the Baesangmyunju headquarters building, attributing significance to it. This sentiment stems from the fact that it was the building purchased in 2002, the same year the late founder Baesangmyun established the Baesangmyun Liquor Research Institute and made a serious commitment to traditional liquor restoration.
The founder gifted this building to his second son, Baeyoung-ho, CEO of Baesangmyunju, in 2006. This was around the time of the company's 10th anniversary. Baesangmyunju was an independent company founded by CEO Baeyoung-ho in 1996. An industry insider commented, "The founder gave his eldest son KOOKSOONDANG BREWERY and allowed his second son to manage the company named after himself (Baesangmyunju), effectively providing him with the building that served as the headquarters."
There are expectations that the relocation of Baesangmyunju's headquarters and The Slow Village Brewery will help it break away from stagnant performance. Recently, Baesangmyunju has focused on franchise operations led by The Slow Village Brewery, and the first store's relocation to a more popular area could significantly enhance the franchise business.
As of the 1st of this month, Baesangmyunju's The Slow Village Brewery has surpassed 30 locations. A Baesangmyunju official stated, "We began to seriously expand our franchise operation in May of last year, and we completed franchise contracts for 36 new locations in about a year."
Recently, Baesangmyunju's growth has been lackluster. Last year, Baesangmyunju recorded sales of 28.3 billion won and an operating profit of 2 billion won. Considering that it achieved its first sales of 24.9 billion won and an operating profit of 2 billion won in 2021, it indicates that sales have stagnated in the 20 billion won range and operating profits in the 2 billion won range for several years.
This is due to the slow growth of the premium makgeolli market. The high prices are an obstacle. Premium makgeolli is sold at prices above 10,000 won, as it utilizes domestic new rice and traditional nuruk while excluding chemical additives such as aspartame and saccharin.
However, consumer expectations are different. According to the Korea Agro-Fisheries & Food Trade Corporation's 'Liquor Industry Status Survey,' the willingness to purchase premium makgeolli is around 4,593 won, which is half the actual price of premium makgeolli.
An insider in the liquor industry noted, "If growth occurs both domestically and internationally, the high-price issue may also be resolved," adding, "Baesangmyunju is in a position to play a leading role, and there is considerable optimism in the industry."