SPC Group adopts holding company system

Sangmidang Holdings (SPC Group)

SPC Group said Tuesday it has launched Sangmidang Holdings, marking a strategic shift to a formal holding company structure.

The new entity takes its name from Sangmidang, a small bakery founded in 1945 that laid the foundation for what has grown into South Korea’s largest bakery group.

The transition follows an extraordinary shareholders’ meeting held on Dec. 31 by Paris Croissant, SPC Group’s main operating arm, at which shareholders approved a corporate spinoff. Under the plan, Paris Croissant was split into Sangmidang Holdings and a separate operating entity.

Under the new structure, Sangmidang Holdings will focus on managing subsidiaries and overseeing investments, while the operating company — which retains the name Paris Croissant — will run the group’s core brands, including Paris Baguette, Pascucci and Lagrillia.

SPC Group said the move replaces a system in which Paris Croissant functioned as a de facto holding company with a pure holding company structure aligned with global governance standards. The reorganization is intended to clarify decision-making, improve management transparency and strengthen ESG competitiveness, providing a more solid platform for the group’s overseas expansion.

Sangmidang Holdings will be responsible for setting mid- to long-term strategy and guiding global growth, while limiting direct involvement in day-to-day brand operations to allow affiliates to operate independently and sharpen their business focus.

“The holding company structure will serve as a foundation for sustainable growth by strengthening corporate competitiveness and expertise in a rapidly changing business environment,” an official from Sangmidang Holdings said. “Through transparent governance and responsible management, we aim to build a structure trusted by both domestic and global markets.”