South Korea’s Paik’s Coffee poised for expansion as parent company eyes IPO

Paik’s Coffee opened more than 300 stores in South Korea in 2023 to surpass 1,400 outlets | Photo credit: Paik’s Coffee/Facebook

South Korean coffee franchise Paik’s Coffee is poised for domestic and international expansion after the chain’s parent company TheBorn Korea Inc., filed for a preliminary review of its initial public offering (IPO) plan. 
 

The food and beverage group, owned by TV celebrity and chef Paik Jong-won, is expected to go public by the end of 2024 and will use funds to expand its retail and franchise businesses, which also includes the domestic restaurant chains Bornga, Saemaeul and Paik’s Bibim. 

Paik founded TheBorn Korea in 1994 and currently holds a 76.69% stake in the business, with Vice President Kang Seok-won controlling a 21.09% share. Investment banking industry officials estimate the food and beverage group’s value at approximately won 400bn ($291m).  

TheBorn Korea achieved 45% year-on-year sales growth in the 12 months ending 31 December 2023 to won 410bn ($298m), while net profit increased 31% to won 20.9bn ($15.2m).  

The company previously withdrew an IPO proposal in 2018 due to apathetic investor interest in the South Korean food and beverage industry.   

Paik launched Wonjobuks Coffee in Seoul in 2006 before changing its name to Paik’s Coffee in 2015. World Coffee Portal research shows that the value-focused chain opened more than 300 domestic stores in 2023 to surpass 1,400 outlets. Paik’s Coffee opened a store in the Philippines in February 2023.

Paik’s Coffee is popular with students in South Korea due to its affordable pricing and sizeable iced beverage menu.  

New investment could see TheBorn Korea introduce the coffee chain the international markets where it currently operates its restaurants, which include Japan, Vietnam, Malaysia, the US and Canada.