SPC Group Chairman Hur Young-in, second from left, checks one of the shops under the group's bakery brand, Passion 5, in Seoul with Caffe Pascucci CEO Mario Pascucci, Sunday. Courtesy of SPC

SPC Group Chairman Hur Young-in and Caffe Pascucci CEO Mario Pascucci signed a memorandum of understanding (MOU) to bring SPC's bakery chain Paris Baguette to Italy and the rest of Europe, SPC said Sunday.

Hur and Pascucci agreed the same day that after SPC helped the Italy-based coffeehouse franchise enter the Korean market 22 years ago, it was time for Pascucci to help the Korean company do the same in Italy.

Mario Pascucci, whose great-grandfather founded the Italian brand in Monte Cerignone in 1883, which is now operating in 17 countries, signed the MOU to run Paris Baguette in Italy under a master franchise deal.

The deal came after over a year of negotiations between the two companies.

With the deal, Italy becomes the third European nation to host Paris Baguette, following France and Britain.

After signing the deal, the Italian visited his company's Centro Yangjae shop in Seoul, the latest Pascucci store in the country. He then visited Pangyo in Seongnam, Gyeonggi Province, to check the Lab of Paris Baguette, one of the bakery chain's flagship stores here which will be replicated in Italy following the deal.

"We consider Italy a significant European market as the country has the region's biggest bread market and boasts a rich bread culture," Hur said. "We'll keep our partnership with Pascucci sustainable while striving to contribute to improving the diplomatic tie between the two countries."

Pascucci, referring to Paris Baguette as a global brand that currently runs some 7,000 stores across 11 countries including Korea, said he believes that the brand will attract local consumers in Italy as well.

"We'll do our best to settle Paris Baguette in Italy and European markets," Pascucci said.

SPC, which operates dozens of brands for desserts, bakeries, restaurants and coffee drinks, including Baskin Robbins, Samlip, Shake Shack and La Grillia, has been applying its specialized business know-how to over 500 Pascucci stores here. The group recently changed the brand's style by introducing a new "authentic espresso bar" concept to better promote Italy's coffee culture to Korean consumers.

Hur, before signing the latest deal with Pascucci, took separate steps to bolster its business ties with Italy. On Saturday, he met Italian Ambassador to Korea Emilia Gatto and, on Wednesday, Italian Trade Agency Commissioner in Seoul Ferdinando Gueli.

Hur pledged that, with this year marking the 140th anniversary of the two countries' diplomatic ties, SPC will actively support diplomatic events between the two this year.