Sungsimdang, Daejeon's landmark bakery, recorded higher operating profit last year than the combined earnings of major bakery franchises Paris Baguette and Tous Les Jours.
According to the Financial Supervisory Service's electronic disclosure system on Monday, Rosso, the company operating Sungsimdang, posted revenue of 262.9 billion won ($183 million) last year, up 35.7% from the previous year. Operating profit rose 34.5% to 64.3 billion won during the same period, with an operating margin of 24.4%.
The profit scale stands out most. Sungsimdang's operating profit exceeded the combined earnings of Paris Baguette and Tous Les Jours. Sangmidang Holdings (formerly SPC Group), which operates Paris Baguette, recorded operating profit of just 26 billion won despite revenue of 1.978 trillion won last year. CJ Foodville, which runs Tous Les Jours, posted revenue of 792.8 billion won and operating profit of 28.2 billion won. Combined, the two brands earned more than 35 billion won less than Sungsimdang.
Sungsimdang's growth trajectory is clear in the numbers. Revenue increased steadily from 48.8 billion won in 2020 to 62.8 billion won in 2021, 81.7 billion won in 2022, and 124.3 billion won in 2023, making it the first single bakery brand to surpass 100 billion won in sales. Operating profit has also climbed sharply from 15.4 billion won in 2022 to 31.5 billion won in 2023, 47.8 billion won in 2024, and 64.3 billion won in 2025.
Financial stability remains solid. The debt ratio stood at just 22.3% at the end of last year, while cash and cash equivalents reached 134.1 billion won, exceeding half of total assets of 214.6 billion won.
A value-for-money strategy underpins the success. The bakery has attracted customers through word of mouth by maintaining low prices while improving quality despite high inflation. While famous hotels sell Christmas cakes for 200,000 to 300,000 won, Sungsimdang offers fruit-topped cakes for under 50,000 won, securing a competitive edge.
A regional-only strategy has also proved effective. Despite nationwide recognition, the bakery has maximized scarcity by not expanding beyond Daejeon. Same-day production and sales, full donation of unsold bread, and youth job creation have reinforced its image as a socially responsible company.
The Sungsimdang phenomenon is directly impacting the local economy. According to the Korea Tourism Data Lab, visitors to Jung-gu district in Daejeon, where Sungsimdang's main store is located, reached 49.31 million last year, up 9.6% from the previous year. Among them, 40.3% were from outside the region. Tourism spending also rose 11.9% to 648 billion won.
National Tax Service data confirms the same trend. Credit card spending across all sectors in Jung-gu, Daejeon reached 154.1 billion won in December last year, up 6.4% year-on-year, exceeding the national average increase of 3.9%. Analysts attribute the region-wide consumption growth to increased visitors centered on Sungsimdang.
Sungsimdang, which started as a small steamed bun shop in front of Daejeon Station in 1956, celebrates its 70th anniversary this year.
