Benetton Group takes control of Korean operations

1 min readUpdated May 26, 2025Jun 20, 20163:00 AM

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In the midst of reorganisation to improve competitiveness, Benetton group has decided to take back its distribution arm in South Korea. Both Benetton brands and Sisley have for a long time been represented in the country via a 50/50 joint venture with a local distributor. The Italian group announced this week it now owns 100% of this structure with the latter becoming one of its subsidiaries.

Benetton Group takes control of Korean operations

South Korea is a very important country to the group, since it is the second export market for Benetton after India and the top export country for Sisley. The group’s annual brand sales are estimated at 150 millions euros in the region across 300 points of sale.

It’s a strategic market too, influential in the Asian region as whole, becoming a sort of base camp for the Italian group.

Benetton wants to continue in the right direction after taking back the distribution reigns. It revealed it has appointed the country manager of the former structure, Hyung Rae Cho, to the role of CEO of the newly created Korean subsidiary.

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What this means

Benetton's full acquisition of its South Korean operations is a decisive, if not overdue, move to regain control in a crucial market. This vertical integration should streamline supply chains and marketing, using the 150 million euros in annual sales across 300 points of sale. It pressures rivals relying on more fragmented distribution models by demonstrating a commitment to direct market engagement. While Benetton has previously focused on expansion in India, this South Korean consolidation suggests a shift towards deeper engagement in influential Asian markets. This mirrors a trend of brands like Panpuri planning direct Asian expansion, though Benetton's approach here is through acquisition rather than organic new store count. Observe the subsidiary's first quarter sales figures for initial performance indications.

Minjun Park

Questions & Answers

Why has Benetton Group decided to take full control of its South Korean operations?

The group is undergoing reorganisation to improve its competitiveness. Taking back its distribution arm in South Korea is part of this strategy to enhance its presence in an important export market.

What is the significance of the South Korean market for Benetton Group?

South Korea is Benetton's second-largest export market globally after India, and the top export country for its Sisley brand. It is also considered a strategic and influential market in the wider Asian region.

How were Benetton and Sisley brands previously managed in South Korea?

Both brands were formerly represented in South Korea through a 50/50 joint venture established with a local distributor. Benetton Group has now acquired the remaining share of this structure.

Who has been appointed to lead the new Benetton subsidiary in South Korea?

Hyung Rae Cho, who was previously the country manager of the former joint venture structure, has been appointed as the CEO of the newly created Korean subsidiary, Benetton. South Korea.

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