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Hanwha Galleria, post-Kim Dong-seon era: What is the future of 'Benson' with its 50 billion won investment?

This article was automatically translated by AI. There may be errors compared to the original Korean article.  Read original in Korean →

[비즈한국] With Kim Dong-seon, Vice President of Hanwha Group, stepping down from his role as Head of Future Vision at Hanwha Galleria, attention is turning toward the future growth and profitability of 'Benson,' the new F&B business he personally nurtured as a key future driver. While Hanwha Galleria is accelerating business expansion by pouring a total of 50 billion won into Better Scoop Creamery, the operator of Benson, analysts note that the company faces the dual challenge of securing profitability and maintaining its brand image.

Hanwha Galleria launched the premium ice cream brand 'Benson' as a new F&B business last year. Photo = Hanwha Galleria website
Hanwha Galleria launched the premium ice cream brand 'Benson' as a new F&B business last year. Photo = Hanwha Galleria website

Interest in the direction of the new F&B business after Kim Dong-seon's departure

Recently, Hanwha Galleria announced that Kim Dong-seon, Vice President of Hanwha Group, stepped down from his position as Head of Future Vision at Hanwha Galleria effective April 1. Vice President Kim has also resigned from similar roles at other affiliates, including Hanwha Momentum and Hanwha Hotels & Resorts' Future Vision divisions. As he is expected to take on a key role at the newly established holding company, Hanwha Machinery & Services Holdings, scheduled to launch this coming August, the role adjustment is interpreted as a move to prioritize tasks related to the new entity.

With Vice President Kim vacating his official post at Hanwha Galleria, attention is shifting to the future direction of the new F&B business he spearheaded. A primary example is the premium ice cream brand 'Benson,' which was introduced last year. Hanwha Galleria established the subsidiary Better Scoop Creamery and has expanded to 15 stores nationwide, starting with its first location in Apgujeong Rodeo.

Benson is known as a new business that Vice President Kim personally oversaw from the initial planning stage. It is reported that he was involved in every aspect of the business, from selecting the brand name to product development and factory planning, and even personally tasted products before their launch to provide feedback for improvements.

Hanwha Galleria has injected significant funds into the Benson business. By the end of 2025, the company had invested a total of 33 billion won into Better Scoop Creamery by participating in two capital increases in May and July of last year. This year, it plans to invest an additional 17.8 billion won for new store openings. Of this, 800 million won has already been executed, and the remaining 17 billion won will be invested sequentially throughout the year. Once this year's additional capital injection is complete, the total investment in Better Scoop Creamery will reach 50 billion won.

A Hanwha Galleria official stated, "The investment funds are being used to build and expand Benson's production and operational foundation. Key areas include the establishment of the Pocheon production center and automated facilities, product quality improvement, opening new stores, and brand marketing," adding, "Benson established its own production infrastructure from the start to achieve differentiated taste and quality, and future investments will also focus on expanding stores and strengthening product competitiveness."

Hanwha Galleria announced that Hanwha Group Vice President Kim Dong-seon stepped down from his role as Head of Future Vision at Hanwha Galleria on April 1. Photo = Provided by Hanwha Group
Hanwha Galleria announced that Hanwha Group Vice President Kim Dong-seon stepped down from his role as Head of Future Vision at Hanwha Galleria on April 1. Photo = Provided by Hanwha Group

A race to 100 stores, the challenge of maintaining a premium image

Before launching Benson, Hanwha Galleria built a production center in Pocheon, Gyeonggi-do. The Pocheon production center is a one-stop facility that handles everything from raw milk processing to manufacturing and packaging. Currently, based on a single shift (9:00 AM to 6:00 PM), it can produce approximately 600–700 units of 10L tub products and 19,500–21,000 units of cup products like pints per day—a capacity sufficient to support about 100 stores.

With the current number of stores at around 15, analysts suggest that the scale is not yet large enough to fully utilize this production capacity. It is noted that without sufficient support from store numbers and sales volume, the burden of fixed costs—such as production personnel, logistics, and facility maintenance—makes it difficult to secure profitability.

Ultimately, expanding the number of stores is essential to increase the facility utilization rate. It is in this context that Hanwha Galleria decided to invest an additional 17 billion won in opening new Benson stores. Hanwha Galleria aims to open 30 stores this year and plans to reach 100 stores by 2027.

There are concerns within the industry that the expansion goal may be overly aggressive. As premium ice cream carries a high price point, securing trade areas with strong consumer purchasing power and repeat demand is critical; critics point out that rapid expansion in a short period could make managing store-level profitability difficult.

After launching its first store in Apgujeong, Seoul, in May last year, Benson has expanded to 15 locations. Photo = Hanwha Galleria website
After launching its first store in Apgujeong, Seoul, in May last year, Benson has expanded to 15 locations. Photo = Hanwha Galleria website

Brand image management during the expansion of trade areas is also emerging as a challenge. Early on, Benson emphasized its premium image by opening stores mainly in the Gangnam area of Seoul. However, it is recently expanding into life-oriented commercial areas like Sinrim and Hwagok. As the trade area itself influences the image of a premium brand, there are concerns that the image built so far might be diluted during the store expansion process.

A Hanwha Galleria official stated, "While we initially focused on securing brand awareness in key commercial districts like Apgujeong and Gangnam, we are now in a stage of expanding our touchpoints into everyday life-oriented trade areas," adding, "We are expanding the scope of store openings while maintaining premium quality standards and improving customer accessibility. We plan to proceed step-by-step, focusing on maintaining quality and service standards rather than reckless expansion."

Improving profitability is also a core task for Benson. Better Scoop Creamery reportedly suffered a net loss of 9.5 billion won last year. This is interpreted as the result of reflecting initial investment costs such as building the production center and opening stores.

A Hanwha Galleria official explained, "Last year was a period where initial investment-type costs such as building the production center, opening stores, product development, and brand marketing were reflected. We believe we will pass the break-even point once the number of stores expands to the 50–100 range," adding, "We expect profitability to improve gradually as the burden of fixed costs decreases and production efficiency increases with store expansion and increased output. This year, we will focus on expanding direct-operated stores, strengthening online and delivery channels, and enhancing brand awareness."

This article was automatically translated by AI. There may be errors compared to the original Korean article.
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