Ourhome 'Sibling Rivalry' Ends with Vice Chairman Gu Ji-eun's Victory... Conflict Sparks Remain (Comprehensive)

Ourhome to Hold Extraordinary General Meeting on the 30th

Board Replacement Proposal Rejected
Goo Bonseong Side's Joint Sale Plan Unavoidably Revised
Goo Jieun Side Temporarily Wins but Threat Remains

[Asia Economy Reporters Seungyoon Song and Eunmo Koo] The dispute between siblings over the management rights of Ourhome has been temporarily resolved with the victory of the current Vice Chairwoman, Gu Ji-eun.

According to industry sources on the 30th, the board replacement proposal raised by former Vice Chairman Gu Bon-seong was rejected at the extraordinary shareholders' meeting held at Ourhome headquarters in Gangseo-gu, Seoul.

More than half of the attending shareholders at the extraordinary meeting voted against the proposal. It was expected that the eldest daughter, Mi-hyun, would play the 'casting vote' role in deciding the outcome of the agenda. However, Mi-hyun did not attend the meeting. It appears she was absent following a recent court decision not to recognize her voting rights. Former Vice Chairman Gu also did not appear at the meeting.

Previously, Gu Bon-seong’s side had requested the convening of an extraordinary shareholders' meeting, proposing to dismiss the 21 directors appointed by the three sisters Gu Mi-hyun, Gu Myung-jin, and Gu Ji-eun, and to appoint 48 new directors. When Ourhome refused this, they petitioned the Seoul Southern District Court for permission to hold the meeting. The court accepted the request, leading to the meeting being held that day.

Gu Bon-seong was dismissed in June last year after losing the management rights dispute. At that time, among the three sisters who pushed out Gu Bon-seong, the current Vice Chairwoman Gu Ji-eun was appointed as the sole CEO. Gu Bon-seong holds 38.6% of Ourhome’s shares. The remaining 59.6% is the combined stake of the three sisters Gu Mi-hyun, Myung-jin, and Ji-eun. Afterward, in February, Gu Bon-seong announced he would sell all his shares and step away from management, but suddenly joined forces with eldest daughter Mi-hyun to sell shares together, reigniting the management rights dispute.

Regarding the convening of this extraordinary shareholders' meeting, industry insiders speculated that Gu Bon-seong might be attempting an indirect return to management. Gu Bon-seong explained that the request to convene the meeting was intended to form a neutral management team for the purpose of selling shares, but Ourhome criticized it as a "groundless attempt to regain management rights."

With Vice Chairwoman Gu Ji-eun maintaining the current system, Gu Bon-seong’s plan to sell his shares has also become difficult. For the sale to proceed smoothly, he must succeed in appointing a majority of directors favorable to him through the extraordinary meeting. Gu Bon-seong plans to sell the 58.62% combined stake of Ourhome shares held by himself and Mi-hyun along with management rights, but this plan requires approval from at least two-thirds of the board.

Last month, when it was revealed that Mi-hyun had convened the extraordinary meeting together with Gu Bon-seong, claims arose that the eldest son and eldest daughter had joined forces. However, Mi-hyun later sent a certified letter to Ourhome denying that she had applied for permission to convene the shareholders' meeting or designated any additional directors to be appointed at the meeting.

Gu Bon-seong’s side is said to be proceeding with the joint sale plan as is. However, due to the failure of the original plan, revising it has become inevitable. Although Vice Chairwoman Gu Ji-eun has for now succeeded in defending her management rights, the conflict is expected to persist as Gu Bon-seong and Mi-hyun remain the largest shareholders.