KG Chemical jumps into race to acquire McDonald's Korea

By Park Sae-jin Posted : July 26, 2016, 18:28 Updated : July 26, 2016, 18:28

[Courtesy of McDonald's ]


KG Chemical has joined the race to acquire or jointly run the South Korean unit of US iconic fast food chain McDonald's which has seen its business shrinking due to tough competition with a number of local and foreign chains.

The chemical company, which also provides electronic payment service, said in a regulatory filing that it has submitted a letter of intent to acquire McDonlad's.

Talks are under way with NHN Entertainment Corp, the company said, adding the amount of investment and other terms have not yet been determined.

CJ Group, a food and entertainment conglomerate, also jumped into the race last month, though the world's largest fast food restaurant chain has not disclosed any details.

McDonald's has struggled to reorganize its operations in East Asia by looking for local partners to run its outlets as franchise stores in return for commissions. There are more than 400 McDonald's stores in South Korea.

McDonald's entered the South Korean market in 1988 but closed its first outlet here in Seoul in 2007 and the second in March this year. Many McDonald's outlets abroad are now managed through franchises or joint partnership, but all its stores in South Korea are directly managed.

Many McDonald's outlets abroad are now managed through franchises or joint partnership, but all its stores in South Korea are directly managed.

Aju News Lim Chang-won = cwlim34@ajunews.com
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