Theborn Korea's stock price has fallen by more than half since its listing. With its store count dropping below 3,000, CEO Paik Jong-won has turned to discounts.
Theborn Korea closed at 14,440 won on the main bourse the previous day, according to the Korea Exchange on the 2nd. That marks a 57% plunge from its initial public offering price of 34,000 won when it listed in November 2024. It is also down more than 45% from its 52-week high of 26,600 won. Its market capitalization has shrunk to 214.9 billion won.
Revenue has steadily declined as well. Consolidated revenue fell 22% to 361.2 billion won last year from 464.2 billion won in 2024, while a 25.6 billion won operating profit swung to a 23.7 billion won operating loss. Revenue in the first half of this year came to 162.9 billion won, down 11.9% from a year earlier.
The number of stores also turned down for the first time ever. Theborn Korea's restaurant brands had expanded to 3,080 locations in 2024, but slipped to 3,068 last year and fell below the 3,000 mark to 2,993 in the first half of this year.
Adding up the store counts for each brand registered on the company's website as of Sept. 29 brings the total down to 2,930. Saemaul Sikdang went from 68 stores last year to 59 at the end of June, Hong Kong Banjum from 277 to 264, and Paik Boy Pizza, which had expanded aggressively, from 227 to 205. Only Paik's Coffee grew, from 1,821 last year to 1,841 at the end of June.
New brand expansion has also halted. The company has not introduced a new restaurant brand since launching Hong Kong Bunsik in 2023. Theborn Korea says it is prioritizing strengthening the competitiveness of existing brands over launching new ones. Instead, it is looking overseas, opening Paik's Coffee outlets in Japan and Taiwan and running a business-to-business sauce operation in Canada.
Discounts, Regional Development and Overseas: Theborn Korea's Three Cards
To break through the slump, the company has turned to discounts. Yeondon Twigim Deopbap, a Theborn Korea affiliate, is running a promotion through the 3rd offering 3,000 won off orders of seven new lunchbox menu items. The company said headquarters is covering the entire discount cost, sparing franchisees any burden. Through the event, main menu items such as the Jeyuk Gaduk Deopbap are available starting at 4,900 won.
Another card Theborn Korea has played is regional development. Drawing on its experience transforming the permanent market in Yesan, South Chungcheong Province — which once drew just 10 visitors a day — into a destination with 10 million cumulative visitors, the company plans to spread the model nationwide.
The core of the approach is a structure in which residents, local governments and companies participate together, spanning everything from developing menus using local specialty products to regenerating idle spaces and linking commercial districts with tourism content. Theborn Korea has been widening the scope of the business by successively setting up restaurant industry development centers in Mungyeong and Sangju in North Gyeongsang Province, Gunsan in Jeonbuk State, Gangjin in South Jeolla Province and Yeoju in Gyeonggi Province.
The regional development business, however, remains closer to an investment stage than a source of profit. Cumulative losses from 2023 to 2025 reached 5 billion won, and the self-sufficiency of the early stores in the Yesan market still stands at only 80% to 90%. Paik said the effort is "an investment to show the direction of the business, not something to make money right away."
Analysts say the regional development business is meaningful for restoring the brand's image and securing long-term growth drivers, but that it will take time before it translates into near-term earnings improvement.
