SPC completes 2nd overseas bakery plant in Malaysia

SPC Group, a South Korean food and beverage company, said Wednesday it has completed its second overseas bakery plant in Malaysia as part of its expansion strategy.
SPC invested 80 billion won ($56 million) in the Paris Baguette plant, located at the Nusajaya Tech Park in Johor Bahru, with an aim to gain a share in the $2.5 trillion global halal market, the company said in a press release.
Halal food refers to products that are prepared in a specific way according to Islamic Sharia law, which covers not only meat but also fruits and vegetables.
Once operational, the Johor Bahru plant will serve as a major production hub for supplying the Paris Baguette brand's bakery products across the halal food markets of Southeast Asia and the Middle East, the release said.
SPC has so far advanced into 14 countries with the Paris Baguette brand. The number of Paris Baguette outlets has exceeded 600 globally.
The company currently operates a bakery plant in Tianjin, China, and is in the process of building a $160 million bakery plant in Texas in the United States.
Based on the expanded production facilities, it aims to operate 12,000 Paris Baguette outlets by 2030. (Yonhap)

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Korea Herald

an hour ago

• Korea Herald

Korea's bad bank returns: Who it helps, who it hurts, and why now?

Debt aid for 1 million sparks debate over fairness and cost The South Korean government's plan to launch a 'bad bank' to ease the burden on individuals struggling with loan or debt repayment has drawn mixed reactions. Some view the initiative as a safety net for the financially vulnerable and a means to reduce the strain of bad debt on the broader financial system. Others raise concerns over moral hazard and potential fiscal pressure on the economy. What is bad bank? A bad bank is not a traditional bank; it is a special-purpose financial entity created to acquire and manage non-performing assets or bad loans from existing lenders. It purchases these loans at a small fraction of their original value and offers flexible repayment options based on the debtor's willingness and ability to settle. In many cases, it allows borrowers to repay only a portion of the principal, forgiving the remainder. During his election campaign, President Lee Jae Myung pledged to establish a bad bank to relieve the financial burden of indebted individuals, particularly small business owners whose debts surged during the COVID-19 pandemic. A significant portion of these debts, amounting to roughly 50 trillion won ($36.4 billion), is set to mature in September. Lee is no stranger to the concept. As mayor of Seongnam City, he founded Jubilee Bank, a nonprofit organization that provided debt relief for long-term delinquent borrowers. Bad bank v.2025 On Thursday, the Financial Services Commission unveiled the details of the proposed bad bank in conjunction with the announcement of a new supplementary budget. The bad bank will be established as a corporation under the Korea Asset Management Corporation, the state-run non-performing loan resolution agency. The government will allocate 400 billion won from the supplementary budget, with an additional 400 billion won expected from private financial institutions, including commercial banks. The initiative is aimed at providing debt relief to financially vulnerable individuals and small business owners who are more than seven years overdue on unsecured loans of up to 50 million won. According to government estimates, the program will target non-performing loans totaling 16.4 trillion won, potentially benefiting around 1.13 million individuals. After acquiring these delinquent loans, the bad bank will assess the debtor's income and assets to determine whether to write off or restructure the debt. Borrowers earning less than 60 percent of the median income, who have no disposable assets and are deemed incapable of repayment, will have their debts fully forgiven. Others who are considered highly unlikely to repay may see up to 80 percent of their principal reduced and will be allowed to repay the remaining balance over 10 years. The FSC said it plans to begin discussions with financial institutions regarding their funding contributions as soon as the supplementary budget is finalized, and will also revise relevant regulations to facilitate the launch. Mixed outlook Some experts view the bad bank as a way to create a social safety net, reduce financial strain and even stimulate private consumption, ultimately contributing to a healthier financial system. Specialized credit finance companies, such as credit card issuers and installment financing firms, are expected to benefit from the program, as the sale of distressed assets would improve their financial standing. 'Korea has experience operating bad banks during major economic crises. Based on this experience, a bad bank can help swiftly resolve non-performing assets and stabilize the financial system,' said Kim Sang-in, a credit analyst at Shinhan Securities. However, the initiative may burden private financial institutions, which are expected to contribute a total of 400 billion won. An FSC official said the regulator had reached a 'mutual consensus' with the sector regarding the scale of contributions. Still, some in the banking industry suggest this consensus may not be entirely voluntary. In 2023 alone, banks contributed a combined 2 trillion won to a similar initiative. 'As a licensed business, it is difficult for a bank to reject a request made by the regulator,' said an official at a local commercial bank.

Korea Herald

2 days ago

• Korea Herald

Foreign accessibility to Korean equity market still constrained: MSCI

South Korea has taken a series of measures to improve foreign accessibility to its equity and currency markets, but such access still remains limited, global index provider Morgan Stanley Capital International said Friday. In its 2025 market accessibility review report, MSCI said the South Korean market has implemented a series of foreign exchange market reforms, such as the extension of trading hours and the allowance of foreign players to participate in the onshore forex market. The global index provider, however, noted there is no offshore currency market and that constraints persist on the onshore currency market. "Despite these reforms, the registration process continues to face operational hurdles. Moreover, the limited usage of omnibus accounts and over-the-counter transactions has constrained the impact of related regulatory initiatives," it said. MSCI raised its rating on Korea's stock short selling to positive from negative as Seoul fully lifted its stock short selling ban, reintroduced in November 2023, in late March while taking new regulatory and technical measures aimed at enhancing oversight of the trading method. The global index provider said it will continue to monitor developments to assess the stability of the regulations over time. South Korea remained on MSCI's emerging market list last year as the country reimposed the ban on stock short selling. Every year in June, MSCI renews its watch lists of emerging markets and developed markets based on the countries' economic development, size and liquidity of equity markets, and market accessibility for foreign investors. This year's lists are due out next week. (Yonhap)

Korea Herald

2 days ago

• Korea Herald

[Lee Byung-jong] President Lee's pragmatic diplomacy

Less than two weeks into office, President Lee Jae Myung is already busy shaping a new course for South Korea's foreign policy — one he describes as 'pragmatic diplomacy.' His packed diplomatic calendar signals both urgency and ambition. Earlier this week, he attended the G7 summit in Canada at the invitation of the host, marking South Korea's return to global diplomacy after six months of absence during the country's turbulent leadership transition. Later this month, he is scheduled to travel to the Netherlands to participate in the NATO summit as a representative of the alliance's Indo-Pacific partners. Despite criticism over the rushed pace and pending domestic challenges, Lee is determined to reestablish South Korea as a central player on the global stage. 'Democratic Korea is back,' declared national security adviser Wi Sung-lac. Still, many are asking: What does 'pragmatic diplomacy' actually mean in practice? Lee's approach marks a distinct departure from the 'values-based diplomacy' of his predecessor, Yoon Suk Yeol, who prioritized alliances with countries sharing democratic values. In contrast, Lee's strategy is rooted in flexibility and realpolitik — prioritizing economic interests and strategic outcomes over ideological alignment. In today's volatile geopolitical environment, with mounting tensions among global powers, Lee seems to be betting that ideological rigidity is a liability, not an asset. While the full contours of Lee's diplomatic doctrine are still emerging, his initial moves offer important clues. The order of his phone calls to world leaders in his first days in office has been particularly telling. As expected, his first call was to US President Donald Trump — a nod to the enduring importance of the South Korea-US alliance, especially on issues of trade and security. The 20-minute call reaffirmed the long-standing priority Korean presidents place on their alliance with Washington. More surprising was his second phone call — to Japanese Prime Minister Ishiba Shigeru. Coming from a liberal background, Lee had been expected by some to reach out to China's Xi Jinping next, following the pattern of previous liberal leaders like President Moon Jae-in. Lee has, in the past, been critical of Japan's stance on historical issues, leading many to doubt whether he would prioritize Tokyo early on. However, this decision was widely interpreted as a signal of Lee's practical mindset and willingness to improve ties with Japan despite lingering historical grievances. Lee's third call to Xi Jinping was hardly unexpected, given that China remains South Korea's largest trading partner. But his fourth and fifth calls did raise eyebrows: He spoke with the leaders of the Czech Republic and Vietnam, countries often overlooked in the early stages of diplomatic outreach by past presidents. His rationale, again, was pragmatic. The Czech Republic recently awarded a 26 trillion-won nuclear power plant construction deal to a South Korean bid — a hard-won contract that edged out fierce competition from France. Lee's outreach aims to solidify that economic relationship and possibly expand it. Vietnam, meanwhile, is South Korea's third-largest trading partner and the leading destination for Korean foreign investment, making it a natural choice for early engagement. The sequence of these conversations echoes one of Lee's key refrains: 'The economy is security, and security is the economy.' His decision to attend the G7 and NATO summits underscores this philosophy. At the G7, discussions focused heavily on global trade friction — particularly the fallout from President Trump's protectionist tariffs. With trade accounting for 80 percent of South Korea's GDP, these are matters Seoul cannot afford to ignore. His participation in the NATO summit is more delicate. Lee had previously expressed reservations about Korea getting too involved in European security matters, especially the war in Ukraine. However, Europe is now a growing market for South Korean defense exports. From that angle, attending the NATO meeting is less about ideology and more about ensuring access to new economic opportunities. But Lee's pragmatic diplomacy will soon face its toughest challenge: North Korea. A purely practical foreign policy could falter if Lee reverts to the liberal camp's traditional approach of engagement with Pyongyang at the expense of alignment with key allies. President Moon Jae-in, for example, pursued such a strategy, which strained Seoul's trilateral coordination with Washington and Tokyo. That fragile alliance, revitalized under President Yoon, President Biden, and former Japanese Prime Minister Kishida in the 2023 Camp David summit, could be tested once more — especially now that all three leaders have exited the political stage. Despite his calls for pragmatic diplomacy, Lee may find himself pulled back toward a more ideological, nationalistic foreign policy. Personnel choices offer early signs of this tension. National security adviser Wi Sung-lac is widely viewed as an advocate of strong alliances, particularly with the US and other democratic partners. But Lee's pick for National Intelligence Service chief, Lee Jong-seok — a former Unification Minister — is a well-known proponent of an independent foreign policy that places inter-Korean relations above external alliances. These two key advisers, representing opposing schools of thought, could end up pulling President Lee in divergent directions, risking confusion and inconsistency in policy execution. In short, President Lee's diplomatic approach shows promise in its economic focus and global engagement. His outreach to non-traditional partners and participation in key summits signal an intent to broaden South Korea's international standing. But this pragmatic posture will only succeed if it can maintain consistency and resist being derailed by ideological pulls — especially when it comes to North Korea. The balancing act between idealism and realism, between national pride and global cooperation, will define the credibility and effectiveness of Lee's foreign policy in the years to come.