Baek Jong-won Bowing at Theborn General Meeting... "Sorry for the Festive Day"

Baek Jong-won Apologizes to Shareholders for Recent Controversies
Promises to Strengthen Transparency and Internal Management Systems
Shares Plunge to 52-Week Low Amid Multiple Allegations and Public Backlash

"As it was the first shareholders' meeting since the listing, it should have been a festive day, but I apologize for not making it so. I had many wrong thoughts. I will strive not to disappoint the franchise owners, employees, and shareholders."

Baek Jong-won, CEO of The Born Korea, appeared at the shareholders' meeting to explain and apologize for the recent controversies. Amidst the public backlash due to various recent issues, Baek's attendance at the meeting itself was uncertain, but he took the lead in directly addressing shareholders' dissatisfaction.

On the 28th, Baek attended The Born Korea's first shareholders' meeting held at SpaceShare Gangnam Station Center in Seocho-gu, Seoul, at 10 a.m. Arriving around 9:45 a.m. dressed in a dark navy suit without a tie, Baek entered the meeting hall without responding to reporters' questions. Before taking his seat at the chairman's desk, he communicated by shaking hands individually with shareholders.

On the morning of the 28th, Baek Jong-won, CEO of The Born Korea, is bowing his head. Photo by Han Ye-ju

Until the day before, The Born Korea had not decided whether Baek would attend the meeting, but it is interpreted that he attended to directly address the risks.

At the meeting, Baek bowed his head and said to the shareholders, "I deeply regret not managing more thoroughly as a manager," adding, "We are re-examining the company's internal systems from scratch as a result of this incident." This is the first time Baek has apologized to shareholders.

Baek promised shareholders to enhance transparency and effectiveness through ▲strengthening the origin management system ▲collaboration with external experts ▲comprehensive improvement of internal management systems. He also said, "We will strengthen communication with shareholders," and requested, "Through regular progress reports, we will transparently share improvement plans and results. The Born Korea is a company created together with shareholders, franchise owners, and customers. Please criticize us when we are wrong and encourage us when we do well."

A Q&A session with shareholders followed. One shareholder pointed out internal atmosphere issues, asking, "Sales and operating profits are good, but why is the employee stock ownership participation rate low?" Baek replied, "I heard other companies experienced similar situations at the time of listing." A representative from The Born Korea explained, "The long one-year lock-up period and young employees' tendency to avoid subscription are the main reasons, unrelated to the internal atmosphere."

Baek Jong-won, CEO of The Born Korea, is attending The Born Korea shareholders' meeting on the morning of the 28th. Photo by Han Ye-ju

After the meeting, Baek spent about 30 minutes answering reporters' questions.

Emphasizing communication, Baek first expressed his intention to quickly establish a new organization, including a PR team. He said, "I thought we could just work hard and use the money for the PR team to research and develop more, but I was wrong," adding, "I painfully realized this time that there were parts we missed in how The Born Korea is viewed from the outside."

He also spoke about mergers and acquisitions (M&A). He said, "We are considering acquisitions, but we cannot just buy something cheap that comes on the market," adding, "After listing, I realized that having a lot of cash as surplus assets is not necessarily good, so if there are competitive brands in various fields, we are keeping the possibility open."

Baek said, "As the organization and sales grow, various gaps and overlooked parts have emerged, which I think caused the current issues," adding, "We will do our best to quickly identify problems and restore things as soon as possible."

He continued, "I agree with the criticism of owner risk. But I will take this as an opportunity," emphasizing, "It may not be perfectly resolved, and there may be times we get scolded, but I will create opportunities for communication and listen carefully. I hope you can wait a little longer."

On the 28th, Baek Jong-won, CEO of The Born Korea, seated at the chairman's desk. Photo by Han Ye-ju

Meanwhile, as of 10 a.m. on the day, The Born Korea's stock price was trading at 28,550 KRW on the KOSPI, down 0.87% from the previous day. On the 17th, it fell to an intraday low of 27,800 KRW, marking a 52-week low. Compared to the peak of 64,500 KRW after listing, it is less than half.

The company's stock price is struggling amid various controversies. These include the 'Baek Ham incident,' where the pork content was lower and the price higher compared to competitor CanHam, controversies over tangerine beer ingredient content, origin labeling issues, pesticide sprayer controversy, and allegations of violating farmland laws. Recently, there was a claim that The Born Korea's 'Baek Jong-won All-Purpose Stir-Fry Sauce' included 'Lee Kum Kee' Panda Oyster Sauce, a famous Hong Kong sauce brand, leading to accusations of "selling famous sauce diluted with water." The Born Korea officially denied these claims. Additionally, allegations of an employee 'blacklist' have surfaced. The Ministry of Employment and Labor has launched a labor inspection on The Born Korea.