Yogiyo names GS Retail VP Hur Suh-hong as board director

Hur Suh-hong

South Korean food delivery app Yogiyo appointed Hur Suh-hong, a member of the GS Group founding family’s fourth generation and vice president at GS Retail, as a registered director. The appointment comes as Yogiyo’s performance declines amid the intensifying competition in the local food delivery market, raising hopes that Huh’s appointment will be a critical turning point.

According to industry sources on Tuesday, Yogiyo’s operator Wesang recently brought Hur on board as a non-executive director. Born in 1977, Hur is an alumnus of Daewon Foreign Language High School, Seoul National University’s Department of Western History, and Stanford University Graduate School. He was appointed vice president in charge of new business at GS Retail in November 2023.

“Appointing Hur appears to be a move by GS Retail to strengthen management of its major investment companies amid heightened delivery competition and challenging business conditions,” an industry insider said.

GS Retail, alongside private equity firms Affinity Equity Partners and Permira, jointly acquired Yogiyo in 2021, investing about 300 billion won ($220 million). GS Retail currently holds a 24 percent stake in Yogiyo, but recent market dynamics saw the app’s market share eroded by latecomer Coupang Eats. According to Wiseapp Retail Goods, Coupang Eats users numbered 6.49 million as of March 2024, surpassing Yogiyo’s 5.98 million users. The competitive landscape intensified further as the year plays out with aggressive strategies such as free delivery and subscription membership discounts, heightening concerns about profitability.

The financial data underscores the challenges Yogiyo faces. Wesang reported operating losses of 111.6 billion won and 65.5 billion won for 2022 and the previous year respectively. The company recently went through an organizational restructuring, including the closure of some departments and workforce reductions. Yogiyo saw its CEO change twice over the past two years due to shareholder disputes.