[Exclusive] From Banker to Coffee King... Terarosa's Kim Yongdeok, Creator of the "Gangneung Legend," Steps Down Completely After 23 Years

Kim Yongdeok Sells All His Shares
Major Shift for Terarosa After 23 Years Since Gangneung Factory’s Founding
UCK Acquires Stake Last Year, Now Holds 74.3% Ownership

Kim Yong-deok, the founder of Terarosa who contributed to the "Gangneung Coffee Street" phenomenon, has sold all of his shares in the company. Established in 2002 with a roasting factory in Gangneung, Terarosa is now entering a new era, shifting from founder-led management to a professional management system after 23 years since its inception.

According to the investment banking industry on April 7, former CEO Kim sold his entire 24.2% stake in Haksan, Terarosa's operating company, to UCK Partners, a domestic private equity fund operator and Haksan's largest shareholder, in July last year. As a result, UCK secured a 74.3% ownership stake in Terarosa. Other major shareholders include Lee Yoon-sun, head of the Terarosa Coffee Research Institute (15.7%), among others.

Terarosa Coffee Factory in Gangneung, Gangwon-do (Photo by Terarosa Website)

Previously, in November 2021, UCK acquired a 37% stake in Haksan, including 21.4% formerly owned by Kim, for approximately 70 billion won. Later, in 2024, UCK purchased an additional 13% from Kim and others, raising its ownership to 50.1% and effectively gaining management control of Haksan. The total amount UCK invested across these two stake purchases is reported to be around 88 billion won.

With Kim selling all his shares, Terarosa is undergoing a complete transformation into a professional management-led company. After UCK acquired its stake, Haksan appointed Kim Eu-yeol as CEO in 2023, and under his leadership, Terarosa is being managed with a renewed system. Having shown deep affection for Terarosa over the years, Kim is understood to have stepped back from management following this latest share sale. The publisher of Terarosa’s regular newsletter, which had been Kim since 2012, was also changed to Haksan as of November last year.

Terarosa, operated by Haksan, began as a specialty coffee shop in Gangneung in 2002. The company was founded when Kim, after two decades in banking, returned to his hometown of Gangneung and started the business. At that time, Kim opened a coffee roasting factory and installed it inside the store, pioneering the concept of a factory-style café in Korea. By directly sourcing the finest coffee beans and offering a distinct flavor, Terarosa established itself as a leading specialty coffee shop brand in the country.

This laid the foundation for what is now known as Gangneung Coffee Street. Initially, Anmok Beach in Gangneung was famous in the 1980s for roadside vending machine coffee. However, in the 2000s, coffee enthusiasts from across the country began flocking to Terarosa, propelling Gangneung to fame as the "city of coffee." The Gangneung Coffee Festival, launched in 2009, has since grown into a major event attracting as many as 200,000 tourists annually. Building on this, Gangneung City even set a goal of joining the world's top 100 tourist cities.

Since being acquired by UCK, Terarosa has grown into the only company in Korea to internalize the entire value chain of the specialty coffee industry—from sourcing specialty beans to manufacturing and distribution (B2B and B2C). Based on its core business of directly importing and roasting specialty-grade beans from Central and South America and North Africa, Terarosa is solidifying its vision to expand beyond simply operating coffee shops and to grow its overall coffee business. The company operates a subscription-based delivery service and sells beans through domestic retail channels such as Costco.

At the same time, Terarosa is steadily expanding its directly operated stores in Korea. In January this year, it opened a store at Seoul Station, followed by another at Yongsan I'Park Mall last month. Including these, Terarosa now operates 34 directly managed locations nationwide. This strategy aims to enhance brand value and provide spaces where customers can experience high-quality specialty beans. In addition, Terarosa is entering the chocolate business this year through a collaboration with "Alain Ducasse Chocolat Paris," the brand established by world-renowned chef Alain Ducasse. Terarosa plans to open its first domestic Alain Ducasse Chocolat Paris store soon.

Meanwhile, Haksan, Terarosa’s operating company, recorded sales of 55.7 billion won last year, up 22.7% from the previous year, while operating profit rose 34.8% to 3.1 billion won.

This content was produced with the assistance of AI translation services.