SEOUL, KOREA - Hyundai Department Store will acquire WiniaMando Inc., the company better known as its Kimchi refrigerator brand "Dimchae." Hyundai Department Store Group said on August 10 that it has signed an agreement with Citi Venture Capital International to take over the 100-percent stake in WiniaMando at about 150 billion won.

 

Started as a home appliance unit of Mando Corp., an automotive parts unit of Halla Group, WiniaMando was sold to Citi Venture Capital Partners in 1999. Given Halla Group was founded by Chung In-young, the younger brother of the late Hyundai Group founder Chung Joo-young, WiniaMando returned to the Hyundai family after 15 years under a private equity fund ownership.

 

WiniaMando Inc. manufactures and supplies home appliances including air-conditioners, air washers, and ionic water purifiers, as well as refrigerators. It posted sales revenue of 412.8 billion won last year. A Hyundai Department Store official said, "We decided to acquire WiniaMando as part of our strategy to diversify our business."

 

However, analysts see this as a move by the retailer to expand its business away from the retail area that it believes has reached a saturation point. The second-quarter sales revenue of Hyundai Department Store was down 0.2 percent from the same period a year ago. During the same period, its operating profit fell 18.2 percent. It has been unable to open a new store since the latest one in August 2012 in Cheongju. Unlike any other retail rivals such as Lotte and Shinsegae, Hyundai has not moved into the large discount store business, with the late entrance into the outdoor premium outlet business.