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Naver Founder Lee Hae-jin Builds Commercial Property on Land Owned by 'Close Friend' Yoon Jae-seung of Daewoong Pharmaceutical

[비즈한국] It has been confirmed through BizHankook’s reporting that Jieum, a private company owned by Naver035420 founder Lee Hae-jin, recently constructed a commercial building and launched a cafe business on land in Seongsu-dong, Seoul, owned by Yoon Jae-seung, Chief Vision Officer (CVO) of Daewoong Pharmaceutical069620. Naver founder Lee Hae-jin and Daewoong Pharmaceutical CVO Yoon Jae-seung are known to be alumni of Seoul National University and have maintained a close relationship for decades. Jieum has been operating at a loss with little to show for its business performance over the past six years, raising questions about whether this new location marks the beginning of full-scale business operations.

According to industry sources, Jieum, the private company owned by Naver founder Lee Hae-jin, completed a three-story commercial building (total floor area of 401㎡) last December on a plot in Seongsu-dong, Seongdong-gu, Seoul, owned by Daewoong Pharmaceutical CVO Yoon Jae-seung. The site is a 311㎡ lot located near Seoul Forest Station, which Yoon purchased as a vacant lot in August 2021 for 6 billion won. Jieum received construction approval for the current commercial building in July 2023 and began construction in August of that same year.

The entire commercial building is currently being used as a cafe operated by Jieum. Shortly after completing the building last December, Jieum opened a branch and finalized its business registration as a coffee shop in March of this year. It is reported that after finishing interior work, the company recently began actual operations. The interior features various spaces designed for reading while enjoying beverages.

Jieum is a management consulting firm established by Naver founder and Board Chairman Lee Hae-jin in November 2011. Its original business objectives included management consulting, R&D, information services, financial support services, as well as lodging and restaurant businesses. In December of last year, it expanded to include creative, artistic, and leisure-related services, and in February of this year, it added retail sales of culture, entertainment, and leisure goods, as well as mail-order sales. As of May of last year, Chairman Lee Hae-jin holds a 100% stake in Jieum. Lee’s younger brother, Lee Hae-young, serves as the CEO and the sole registered director of the company.

Until last year, Jieum had been essentially dormant. According to its audit report, the company’s net loss for last year was 3.3 billion won, an increase of about 2 billion won (145%) compared to the previous year. Net losses were 2.2 billion won in 2019, 3.1 billion won in 2020, 4.3 billion won in 2021, 1.6 billion won in 2022, and 1.4 billion won in 2023, marking six consecutive years of losses since the company began filing audit reports in 2019. Previously, the company's only revenue came from non-operating income such as interest or dividends. Chairman Lee Hae-jin invested a total of 137 billion won into Jieum over four years, from March 2018 to March 2022.

Naver Board Chairman Lee Hae-jin, the de facto owner of the building, and Daewoong Pharmaceutical CVO Yoon Jae-seung, the owner of the land, are known to share a special relationship. The two are alumni of Seoul National University, and it is said that Chairman Lee Hae-jin considers CVO Yoon as a role model. Yoon served as an outside director (auditor) for Naver from November 2008 to March 2011 and as the chairman of the Naver Connect Foundation from October 2013 to December 2018. Yoon is the largest shareholder of Daewoong003090, the holding company of Daewoong Pharmaceutical Group, with an 11.61% stake, while Chairman Lee Hae-jin is the head (identical person) of Naver with a 3.87% stake.