Hansae Strengthens U.S. Market Edge via Guatemala Vertical Integration
Hansae, an apparel ODM (Original Design Manufacturer) with clients including Gap, Carhartt, and Walmart, is targeting the U.S. market through vertical integration in Guatemala. After recently commencing operations at a knitting (fabric) factory in Guatemala, the company plans to launch a dyeing and processing facility next month, followed by a spinning (yarn) factory in the first quarter of next year.
Hansae Yes24 Holdings Co., Ltd. is a South Korean holding company based in Seoul, originally founded in 1982 as Hansae Co., Ltd. and renamed in 2009. It operates a diversified portfolio spanning global fashion manufacturing, online/cultural content platforms, publishing, distribution, and automotive components.
Combined with its existing sewing factory, this will complete a vertical supply chain spanning yarn → fabric → dyeing/processing → sewing. The strategy aims to shorten product delivery times to the U.S. market and enhance cost competitiveness by leveraging duty-free benefits.
Hansae Yes24 Holdings held a global investor relations (IR) event in Ho Chi Minh City, Vietnam, and announced this business plan. The Hansae Yes24 Group, with Hansae, with annual sales of approximately 2 trillion Korean won (approximately $1.50 billion USD) as its core subsidiary, also operates Yes24 and Dong-A Publishing in the publishing/culture sector, and Hansae Mobility in automotive parts. The event was attended by Vice Chairman Kim Seok-hwan, eldest son of Chairman Kim Dong-nyeong, and Vice Chairman Kim Ik-hwan of Hansae, the second son.
Kim Seok-hwan revealed the group’s goal to “achieve 6 trillion Korean won in annual sales by 2032.” The group’s sales last year were 3.4098 trillion Korean won, requiring an average annual growth rate of over 8%. He stated, “We will achieve this target by expanding Hansae’s vertical integration in Guatemala, Hansae Mobility’s localization strategy, and leveraging AI as a key growth driver.” The plan includes enhancing AI through data from Hansae, Yes24, and other subsidiaries.
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Group Sales Target: 6 Trillion Korean Won by 2032
Hansae invested 170 million dollars (approximately 230 billion Korean won) over four years, from 2022 to 2026, to construct factories on a 500,000-square-meter site in Guatemala. Vice Chairman Kim Ik-hwan said, “The Guatemala factory will expand production of high-value activewear, such as sportswear, enabling faster deliveries to the U.S.”
The lead time for U.S.-bound products from Central America is 8–10 days, a quarter of the time required from Asia, such as Vietnam. This allows for more trend-responsive supply. Additionally, Guatemala benefits from duty-free access under the U.S.-Central America Free Trade Agreement (CAFTA-DR).
Hansae plans to reduce delivery times and costs by leveraging its Guatemala production base near the U.S. market. Approximately 90% of Hansae’s sales go to the U.S., including products for apparel specialists like Gap and Carhartt, as well as private-label (PB) clothing for major retailers like Walmart and Target.
The company is also in discussions for new contracts with global sportswear brands. It aims to increase production of high-value activewear, such as yoga and sports apparel, through the Guatemala factory.
The lead time for U.S.-bound products from Central America is 8–10 days, a quarter of the time required from Asia, such as Vietnam. This allows for more trend-responsive supply. Additionally, Guatemala benefits from duty-free access under the U.S.-Central America Free Trade Agreement (CAFTA-DR).
Hansae plans to reduce delivery times and costs by leveraging its Guatemala production base near the U.S. market. Approximately 90% of Hansae’s sales go to the U.S., including products for apparel specialists like Gap and Carhartt, as well as private-label (PB) clothing for major retailers like Walmart and Target.
The company is also in discussions for new contracts with global sportswear brands. It aims to increase production of high-value activewear, such as yoga and sports apparel, through the Guatemala factory.