Hanwha-Owned Ourhome Sees Loss of LG-Affiliated Catering Contracts as It Pursues Aggressive Expansion
Creatrip Team
2 months ago
Hanwha’s acquisition of catering company Ourhome has prompted reconfiguration of long-standing contracts with LG-affiliated firms. Several LS-group (범LG가: companies historically associated with the LG founding family) catering accounts, including LS Electric and LS Cable & System sites, shifted to LIG Home & Meal. Historically, Ourhome served roughly 110 LG-related sites with estimated annual catering revenue of about 300 billion won, but the sale after the founding family’s management dispute sparked contract renewals and competitor bidding. Meanwhile Ourhome is absorbing Hanwha group accounts, winning the Hanwha TotalEnergies Seosan plant contract, and pursuing rapid growth after Hanwha’s ~1 trillion won investment to buy Ourhome and Shinsegae Food’s catering unit. The company targets KRW 5 trillion revenue by 2030 and is using aggressive, low-price bids to expand market share, including underbidding rivals in a recent food-supply tender at GKL’s Seoul Dragon City. However, procurement records show Ourhome quoted higher unit prices on many items but lowered total bid amounts, raising concerns that its low-price strategy could distort market pricing and unsettle competitors.
