Ssangbangwool Appoints CEO Jeong Unho... "Try Brand Renewal"

Internal Structure Overhaul, Management System Reform
"Building a Strong Company with Global Competitiveness"
Injunction Filed to Suspend Ssangbangwool Delisting Decision

Ssangbangwool announced on the 28th that it appointed CEO Jeong Un-ho at the inauguration ceremony held on the 27th at the company auditorium in Sindang, Jung-gu, Seoul.

The Ssangbangwool board of directors appointed CEO Jeong, expecting him to have a high level of understanding of existing and new business operations based on his years of experience managing various companies, and judged that he has sufficient ability and qualifications to perform the duties.

Jung Un-ho, CEO of Ssangbangwool, delivers an inaugural speech at the inauguration ceremony held on the 27th at the company auditorium in Sindang, Jung-gu, Seoul. Photo by Ssangbangwool.

CEO Jeong founded the mid-priced cosmetics brand The Face Shop Korea in 2003 and served as CEO of Nature Republic from 2010 until February of this year. From 2017 to 2020, he stepped down as CEO of Nature Republic due to the so-called 'Jeong Un-ho Gate' incident, in which he conducted extensive lobbying in the legal community, but returned as CEO in 2020. Currently, he has stepped down from the CEO position at Nature Republic and only holds the chairman position.

Last month on the 20th, CEO Jeong acquired 632,297 shares of Ssangbangwool for 7 billion KRW through Segye Prime Development, an affiliate of Nature Republic, securing a 12.04% stake and becoming the largest shareholder. Segye Prime Development is a real estate rental company in which CEO Jeong holds a 40% stake.

At the inauguration speech, CEO Jeong expressed his ambition to "make Ssangbangwool a stronger company through bold innovation and powerful reform, not just simple rehabilitation." He presented five key strategies: future-oriented innovative management, brand rebirth and business diversification, financial structure innovation, talent-centered organizational culture innovation, and sustainable management and social responsibility practice.

He stated, “We will carefully review Ssangbangwool’s current business portfolio to strengthen existing businesses and actively pursue new businesses aligned with trends,” adding, "We will carry out a TRI brand renewal to enhance competitiveness in the global market and pioneer new markets." Ssangbangwool’s sales last year were 92 billion KRW, down about 3% from the previous year, and operating profit turned to a loss of 1.6 billion KRW. Both sales and operating profit shrank due to a decrease in distribution volume.

Immediately after the inauguration, CEO Jeong personally inspected the TRI showroom. He said, "TRI will establish itself as Ssangbangwool’s core brand,” and “We will provide new value to consumers through innovative products and expand our presence in the global market.”

Meanwhile, Ssangbangwool received a delisting decision from the Korea Exchange Listing Committee on the 11th. The exchange stated, “After comprehensively reviewing Ssangbangwool’s implementation of improvement plans and the company’s continuity, it was determined that it met the criteria for delisting.” Ssangbangwool’s stock trading has been suspended since July 2023 due to allegations of embezzlement and breach of trust involving former chairman Kim Sung-tae.

In response, Ssangbangwool filed an injunction to suspend the effect of the delisting decision with the Seoul Southern District Court on the 12th. The effect of the delisting decision will be suspended until a ruling is made.