Self-Made CEO Kim Seonghun Sells Jungwon for 115 Billion Won

'Self-Made Icon' Jungwon Corporation CEO Kim Seonghun Sells Management Rights for 115 Billion Won

Chungwon Co., Ltd., a manufacturer and seller of hygiene products, is selling its management rights to the domestic private equity firm Ascent PE. The sale price is in the range of 115 billion KRW.

After the sale, Chungwon Co., Ltd. CEO Kim Seong-hoon (age 39) will support company operations as an advisor for the Secret Day brand and actively explore items necessary for consumers' daily lives at new business sites to expand into overseas markets.

Chungwon Co., Ltd., founded in 2011 by CEO Kim Seong-hoon, owns a variety of product lines including the top-ranked sanitary pad brand in brand reputation, Secret Day, the diaper and wet tissue childcare brand Super Daddy, and the household goods brand Sense.

The company has shown strengths in manufacturing and distribution, achieving high growth every year, and has attracted market attention by never recording an operating loss. Last year, Chungwon Co., Ltd. recorded sales of 59 billion KRW and an operating profit of 7.3 billion KRW.

Secret Day, the representative brand of Chungwon Co., Ltd., which is growing steadily with stable online sales and aggressive product expansion, transitioned from a distribution-based business model that guaranteed stable sales to manufacturing to ensure essential quality control and establish itself as a differentiated brand from sanitary pads sold on the market.

Accordingly, a hygiene product factory was established in Eumseong, Chungbuk Innovation City, and during this process, the company received its first round of investment from the private equity division of Industrial Bank of Korea. To expand manufacturing facilities in earnest, in 2020, it partnered with the US-based private equity firm Morgan Stanley (MSPE) for a second round of investment.

CEO Kim Seong-hoon of Chungwon Co., Ltd. stated, “Even after attracting investment, I have been overseeing overall management together with Director Kim Gyeong-yeon in the sales department. I have taken responsible management to achieve high investment performance up to this sale.”

Meanwhile, Secret Day plans to diversify its business model, which has been focused on the domestic online market, by actively pursuing offline and overseas expansion.