[BizHanKook] It has been confirmed that Harim Industrial added a franchise business to its business objectives earlier this year. Recently, the company also announced plans to spin off its food business division to enhance professionalism. Some in the food industry speculate that the new entity created after the split may venture into the franchise restaurant business. Harim Group stated that while they are keeping future business expansion in mind, no specific plans have been finalized at this time.
Harim Industrial announced its corporate spin-off plan on October 26. Harim Industrial’s business is largely divided into real estate and food businesses. The plan involves splitting off the food business division to establish a new entity, tentatively named ‘Harim Foods.’ The spin-off date is set for December 1. Harim Industrial stated, “The purpose is to enhance business professionalism and strengthen management efficiency.”
As a result of Bizhankook’s investigation, it was confirmed that Harim Industrial added numerous business objectives in January of this year. These include: agency and general product brokerage; franchise and chain store operations; franchise and chain-related services; restaurant and dining businesses; snack bar and general restaurant businesses; consignment sales of agricultural, aquatic, and livestock products; door-to-door sales; telemarketing and telephone solicitation sales; and e-commerce brokerage. Harim Industrial subsequently added ‘gift certificate issuance, distribution, and brokerage’ to its business objectives in June of this year.
Among the many business objectives added by Harim Industrial, the restaurant and franchise-related businesses stand out. Harim Industrial’s major food brands include the home meal replacement (HMR) brand ‘The Mi-sik,’ the children’s food brand ‘Foodie Buddy,’ and the chicken-specialized convenience food brand ‘Mexikan.’ These are primarily meal-kit style products. The company does not currently operate a franchise business. For this reason, some in the food industry predict that the newly spun-off Harim Foods might enter the franchise restaurant market.
Currently, Harim Industrial’s food business performance is sluggish. In last year’s audit report, Harim Industrial stated, “Due to the accumulation of operating losses in the food business division, we conducted an impairment test and recognized an impairment loss of 3.335 billion KRW.”
Jeong Jin-won, a senior researcher at NICE Investors Service, in an analysis of Harim Holdings, explained, “There are affiliates like Harim Industrial and Harim USA that continue to record poor performance or low financial stability, creating a persistent burden of support,” and added, “In particular, Harim Industrial’s operating losses are widening despite continuous support from the group and capital expenditures.” According to the audit report, Harim Industrial recorded an operating loss of 127.6 billion KRW in 2024 and 146.7 billion KRW in 2025. The company is in need of a breakthrough to improve its performance.
Some analysts suggest that because Harim Industrial is a food-specialized company, it could expect synergies between its existing businesses and a potential franchise restaurant venture. Harim Group is not unfamiliar with the franchise business, as it already operates the chicken franchise brand ‘Mexikan Chicken’ through an affiliate. However, the current negative climate in the restaurant industry due to high inflation and consumption stagnation remains a burden.
Harim Group stated that no expansion into a new franchise restaurant business by Harim Industrial has been confirmed. A Harim Group representative said, “The business objectives were added with future business expansion in mind.”