Former chairman Kwon Won-gang (69), the founder of Kyochon F&B, the number one chicken franchise in Korea, decided to give back 10 billion won to society. It will be returned by establishing a public interest foundation or creating a win-win fund.
According to Kyochon F&B on the 14th, for the 30th anniversary of Kyochon’s founding, former chairman Kwon expressed his intention to give back to the private property and suggested such a method. Chairman Kwon said, “Gyochon’s growth was possible because affiliated stores and business partners were together,” he said. “It is natural to repay the society through giving back.”
On March 13, 1991, Chairman Kwon started the chicken franchise business by building a’Gyochon Whole Chicken’ of about 33m2 (10 pyeong) in Songjeong-dong, Gumi, Gyeongsangbuk-do. It is a business that started working as a street vendor, taxi driver, and indoor stall owner for a family livelihood before starting a business, or even started overseas employment before jumping into the age of 40.
Gyochon, meaning Hyanggyo, which can be found anywhere in the countryside, has since expanded into a nationwide franchise by releasing long-lived hit products such as Gyochon Originals and Gyochon Honey Combo. Even after being ranked No. 1 in the industry, he continued to carry out Jeong-Do management centered on franchisees under the principle of “If you put a signboard on Kyochon, make money unconditionally.” Even if hundreds of applicants lined up, the number of franchisees was maintained for 10 years after surpassing around 1,000 franchisees. It was a decision to protect the profits of existing affiliates. I didn’t do any business other than chicken. The Hanwoomul strategy led to a win-win increase in sales at the affiliated stores and headquarters. It is evaluated that the record of the industry’s lowest level of closing rate was also derived from the’priority of franchisees’.
On the founding anniversary of 2019, Chairman Kwon declared his full retirement, saying, “Change and innovation for the future requires a transparent and specialized management system, not just one chairman.” He also recruited Chairman So Jin-se from Lotte Group and handed over management rights. Kyochon switched to a professional manager system with separate ownership and management, and succeeded in listing on the KOSPI for the first time in the industry last year.
Chairman Kwon made the word “protect your credit whatever you do” as one of Kyochon’s core values from his father, who was in the salt business. The franchise industry, where foreign transactions were prevalent at the time of its founding, abandoned this practice and made it a rule to always pay in cash immediately.
His motto is, “You should shine when you sit up and get up.” He took the admonitions he had heard in the military as the principle of his life. When the first outbreak of highly pathogenic bird flu (AI) in Korea in 2004, the plan to open about 400 new stores was abolished despite the opposition. The head office can earn more than 8 billion won by opening a franchise store, but the franchise owners almost face great difficulties due to the cost burden. “Rather than chasing the profits in front of you, you have to make the right decisions for the future,” he said at the time.
President Kwon established the Kyochon Scholarship Association in 2009 and has been conducting scholarship activities every year to cultivate human resources. For each chicken sold, 20 won was accumulated as a social contribution fund. Raised funds regardless of profit. In 2019, when the suppliers suffered a crisis due to the rise in chicken prices, they paid 500 million won in win-win funding. We donated 100 million won each to recover Pohang earthquake damage, support families affected by the Sewol ferry disaster, support AI-damaged farmers, and raise child welfare funds.
Kyochon held a commemorative event online on the 12th to commemorate the 30th anniversary of its founding. At the ceremony on this day, awards in various categories were held in recognition of the hard work of excellent franchisees and partners. Gyochon Chicken Haengsin Station and Jinsari Store were selected as the Grand Prize for Outstanding Merchant and Grand Prize this year. 32 partners including Geumhwa Foods, Jogwang Foods, and Daegu Shopping Bags received plaques of appreciation.
Reporter Bora Kim [email protected]