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Coca-Cola Korea loses fizz for first time after expanding voluntary retirement last year

Published: 03 Mar. 2026, 15:19 Updated: 03 Mar. 2026, 18:57

A Coca-Cola logo is pictured at the entrance of The Peak, a Coca-Cola immersive experience installed for the Milan-Cortina 2026 Winter Olympics, in Milan, Feb. 16. [REUTERS/YONHAP]

Coca-Cola Korea, a subsidiary of LG Household & Health Care, accepted applications for voluntary retirement across all divisions except production last year, industry sources confirmed Tuesday.

LG Household & Health Care’s beverage business posted its first quarterly loss since acquiring Coca-Cola two decades ago in 2007.

The company’s Refreshing division, which oversees the beverage business including Fanta, Sprite, Minute Maid and Georgia, recorded an operating loss of 9.9 billion won ($6.76 million) in the fourth quarter of last year.

Sales fell 6.7 percent on year to 383.5 billion won in the same period from 411 billion won a year earlier.

Industry sources said Coca-Cola Korea carried out the voluntary retirement program from Nov. 20 to Dec. 1 last year and notified applicants of the results on Dec. 2. Eligible employees were those born before 1980 working in sales, logistics and staff departments such as human resources and strategic planning. Production workers were excluded.

It was the first time staff departments were included in the voluntary retirement program. In 2024, the company had accepted applications only from some older employees in field departments such as sales and logistics.

Coca-Cola Korea produces drinks by mixing carbonated water with concentrate supplied by the U.S. headquarters of the Coca-Cola Company. LG Household & Health Care holds a 90 percent stake in the company, while an affiliate of Coca-Cola’s headquarters owns the remaining 10 percent. LG Household & Health Care exclusively operates the manufacturing, sales and distribution of Coca-Cola products in Korea.

“Difficult conditions continue due to fundamental changes in the distribution environment, including the contraction of offline channels,” an LG Household & Health Care official said, adding that the move was aimed at streamlining the workforce structure of the Refreshing division.

Industry officials say the trend toward healthier beverages among younger consumers and the declining consumption of carbonated drinks have also weighed on performance.

“Amid the low-sugar trend, Coca-Cola Korea still relies heavily on original cola products that contain sugar,” an industry official who asked for anonymity said.

LG Household & Health Care expanded its beverage business by acquiring Coca-Cola Korea in 2007 and Haitai htb — then the third-largest beverage company in Korea — in 2010. However, as earnings have deteriorated, the company has been pursuing business efficiency measures since last year, such as seeking the sale of Haitai htb.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]