Five Guys closes, Benson doubles losses: Hanwha's Kim Dong-sun faces poor performance in food business

As Hanwha Group transitions towards a third-generation leadership, the retail and food businesses spearheaded by Kim Dong-sun, the third son of Chairman Kim Seung-youn and Vice President of Hanwha Hotels & Resorts and Hanwha Galleria, are encountering significant profitability issues. This comes as his elder brothers, Kim Dong-kwan and Kim Dong-won, solidify their positions in the energy and finance sectors, respectively.

Kim Dong-sun has been instrumental in introducing and managing several foreign food franchises in South Korea, including the popular burger chain Five Guys. However, reports indicate that these ventures, alongside others like Benson and the food service company Ourhome, are struggling to achieve profitability. Despite apparent growth in revenue and brand presence, the financial statements reveal a concerning trend of increasing losses.

Specifically, the article points to Benson's performance, which has reportedly doubled its losses while its revenue has also doubled. This suggests a significant drain on resources, raising questions about the long-term viability of these businesses under Kim Dong-sun's leadership. The situation contrasts sharply with the expansion efforts of his brothers, who are consolidating their influence in core Hanwha sectors.

The scrutiny on Kim Dong-sun's ventures is part of a broader examination of the Hanwha Group's diversification strategy and the performance of its subsidiaries. The group's ability to successfully integrate and monetize these new ventures will be crucial as it navigates a new era of leadership and market challenges.