In a bold move signaling strategic independence, South Korea's AsungHMP — parent company of popular discount retailer Daiso — has spent 500 billion won ($380 million) to repurchase all 34.2% shares held by Japan's Daiso Industries Co., achieving full control of Asungdaiso Corp. This landmark transaction marks a decisive shift in the company's domestic market strategy and accelerates its localization efforts.
Restructured Ownership: Strengthening Local Control
The buyout increases AsungHMP's stake in Asungdaiso from 50% to 84.2%, with the remaining 15.8% held by Chairman Park Jeong-bu's two daughters. This restructuring completely removes foreign influence from corporate decision-making, granting the Korean management team unfettered operational autonomy. Industry analysts view this as crucial for the company's ability to respond swiftly to local market conditions and pursue long-term strategic goals.
A Partnership With Historical Roots
The business relationship traces back to 2001 when Japan's Daiso Industries invested 400 million yen ($2.6 million at current rates) for its minority stake, becoming Asungdaiso's second-largest shareholder. The original agreement designated the Japanese firm as Asung's exclusive client in Japan while requiring the Korean company to adopt the Daiso name. This arrangement initially facilitated rapid expansion across South Korea's retail market.
Growing Pains: Localization vs. Foreign Influence
Recent years saw increasing friction between the partners. Though Japanese shareholders historically remained passive investors, their recent demands for operational involvement and dividend adjustments conflicted with AsungHMP's strategic vision. More critically, Daiso's perceived Japanese branding became problematic amid rising Korean consumer nationalism. During periodic anti-Japan sentiment, the company frequently had to clarify its domestic ownership to avoid boycotts — making the buyout both a business necessity and cultural imperative.
Financial Strength Enabling Independence
The company's robust financial performance made the expensive buyout feasible. Between 2012 and 2022, Asungdaiso's annual revenue skyrocketed from 637 billion won to 2.9 trillion won — a 4.5-fold increase. Operating profits showed even more dramatic growth, surging from 1.1 billion won to 239.3 billion won during the same period. This exceptional track record demonstrates the brand's strong domestic foothold and provided the capital required for strategic independence.
Looking Ahead: Local Focus, Global Ambitions
With full ownership secured, Daiso plans intensified domestic market development while upgrading product quality and customer service. The company also eyes international expansion opportunities to introduce Korean-designed products worldwide. Free from Japanese shareholder constraints, the retailer now enters a new chapter of self-determined growth. This case offers valuable lessons for multinationals operating in Korea: authentic localization remains essential for lasting consumer acceptance.