Kim So Young closes 10-year cookie business, citing deficits

Broadcaster Kim So Young, a former announcer, has decided to wind down her cookie business after a journey spanning approximately 10 years. While consumer satisfaction with the products was high, Kim explained that she could not overcome structural limitations where deficits grew larger as sales volume increased. As she reflects on her decision after diving into various business ventures, her insights into the importance of business structure are drawing significant attention.

On the 26th, Kim announced via her SNS that she would be closing her snack business.

When a follower expressed disappointment, saying, "I was surprised by the weight of the cookies as soon as I received them, and then surprised by the taste... I was very sad to hear the news of the closure," Kim reflected on her business methods.

She stated, "Thinking about it now, I seem to be the type of person who acts impulsively while pretending to be cautious. Looking back at the past 10 years of business, if I had known just a little more about business structures, I wouldn't have been able to run a cookie business."

The decisive reason for closing the cookie business was the profit structure. When another follower expressed affection for the products by sharing past purchase history, Kim revealed, "Even with high sales, it was a deficit."

Unlike general product sales, the food business involves a complex combination of not only raw material costs but also manufacturing, packaging, logistics, labor, and various costs incurred during the distribution process. Particularly in the case of handmade or premium products, investments in raw materials and production personnel to maintain quality can increase as rapidly as sales volume grows.

It appears that Kim also chose to continuously invest in labor and materials rather than lowering the quality of the products provided to consumers. Consequently, high product satisfaction and sales volume did not necessarily translate into business profitability.

Kim's decision serves as an example that goes beyond the mere closure of a small-scale brand; it illustrates the realistic dilemma faced by content creators who jump into business based on their own names and fandoms. While direct communication with customers through SNS and high brand loyalty are important assets, they do not solve the cost structures and cash flow issues inherent in manufacturing.

Kim joined Munhwa Broadcasting Corporation as an announcer in 2012, worked as a broadcaster, and left the company in 2017. Since then, she has been balancing content production with business by starting ventures that combine reading with lifestyle.

She married broadcaster Oh Sang Jin in 2017 and had her first daughter in 2019. This past April, she became a mother of two after giving birth to her second son. Even after marriage and childbirth, she has expanded her own brand territory while balancing business and broadcasting activities.

Over the years, Kim has expanded her scope from a simple broadcaster to a content-based entrepreneur by challenging various businesses, including books and lifestyle products. In particular, she has shown a different path from typical celebrity businesses by building brands in a way that integrates her personal tastes and experiences into products and content.

Her bold business expansion also led to external investment. Kim previously drew attention by revealing that she had received an investment worth 7 billion won from a famous investment firm. This was evaluated as an example showing that she was seeking growth on a corporate scale, moving beyond the stage of expanding a business solely through personal recognition.

However, this cookie business also revealed that as the scale of a business grows, one must coldly examine the gap between revenue and profit. Even if revenue increases, if fixed and variable costs such as the cost ratio, labor, and logistics exceed it, a business can record a deficit regardless of its outward growth.

Kim did not frame this closure as a simple failure. Instead, she honestly admitted her tendency to be a "type who acts impulsively while pretending to be cautious," showing that she accepts her 10 years of business experience as a learning process.

While the cookie business is ultimately closing its doors, she has not given up on business itself. Attention is now focused on what new business ventures Kim's accumulated brand management experience, consumer communication skills, and content production capabilities will lead to in the future.

High sales do not necessarily mean a good business. Kim's confession once again demonstrates the significant gap between a "best-selling product" perceived by consumers and the actual "profit" held by the business owner. For Kim, who has challenged various businesses for 10 years, this closure is less an end and more a cold business settlement for her next move.