[Why&Next] Allegations of Kim Dongseon's Abusive Remarks... Hanwha Faces Heightened Last-Minute Tensions in Ourhome Acquisition

More Than 20 Ourhome Executives Step Down
Hanwha Accelerates Efforts to Remove Gu Jieun's Influence
Leadership Vacuum Amid Management Dispute ... Serious Industrial Accident Occurs

Kim Dongseon, Vice President of Hanwha Hotels and Resorts (left), Gu Jieun, Former Vice Chairman of Ourhome

As Hanwha Group prepares to finalize its acquisition of Ourhome on April 29, last-minute controversies continue to emerge. Ourhome has recently replaced a large number of executives in an effort to reorganize the company for its new ownership. During this process, allegations have surfaced that Kim Dongseon, the third son of the Hanwha family and Vice President of Hanwha Hotels and Resorts, who led the acquisition, pressured executives to resign. In addition, Gu Jieun, former Vice Chairman of Ourhome, has suggested the possibility of legal action and continues to resist the acquisition.

According to the retail industry on April 27, Ourhome did not renew contracts with more than 20 executives from the end of last year through this month. Most of these individuals were key executives recruited after former Vice Chairman Gu took office as CEO in 2021. Ourhome stated that this was a "natural organizational restructuring in line with the current management's policy."

Hanwha Moves to Erase Gu Jieun's Influence Before Ourhome Acquisition

Industry observers interpret this as Hanwha's attempt to reorganize the company and secure internal influence even before the acquisition is finalized. The number of executives at Ourhome increased rapidly during Gu Jieun's tenure. The executive count rose from 8 in 2020 to 19 in 2021, 21 in 2022, 25 in 2023, and 29 last year.

However, it is currently understood that only about nine executives remain. This is seen as a move to minimize the influence of executives appointed by former Vice Chairman Gu during her tenure. In fact, Hanwha Hotels and Resorts recently reached out to former Ourhome employees who had moved to competing companies in the foodservice and catering industry, offering them the opportunity to return. This suggests that Hanwha may undertake a major organizational restructuring after acquiring Ourhome.

Nevertheless, Gu Jieun, former Vice Chairman of Ourhome, has publicly expressed her intention not to give up management control. Last month, Gu attended Ourhome's regular shareholders' meeting in person and argued that "the share purchase agreement did not go through board approval," raising questions about its legal validity. She also indicated the possibility of legal action based on the preemptive rights of existing shareholders stipulated in Ourhome's articles of incorporation. In addition, Gu recently posted a message on social media stating, "I will show that money isn't everything. Watch and see," signaling a strong response.

Allegations That Kim Dongseon Pressured Ourhome Executives to Resign

Amid these developments, further allegations have emerged. Specifically, it has been claimed that last month, while on a business trip to the United States, Vice President Kim Dongseon met with an executive from Ourhome's U.S. subsidiary and pressured the executive to resign, speaking informally and using language that was considered demeaning. Kim, born in 1989, is said to have not only spoken informally but also made humiliating remarks to Mr. A, who is nearly twenty years his senior, in an effort to force his resignation. Hanwha responded, "We are currently verifying the facts," and added, "We will respond firmly to the dissemination of false information."

Meanwhile, as instability in management control continues at Ourhome, a recent serious industrial accident has also occurred. On April 4, an employee working at Ourhome's Yongin facility suffered a neck entrapment injury while operating machinery. The employee was transported to the hospital in cardiac arrest but ultimately did not regain consciousness and passed away.

Gu Mihyun, CEO of Ourhome, issued an official statement five days after the accident, saying, "As CEO, I am devastated by the occurrence of an accident that should never have happened," and added, "I offer my deepest condolences and sympathy to the bereaved family and also extend my apologies and comfort to the colleagues at the site."

Gu Mihyun, the elder sister of former Vice Chairman Gu Jieun, regained management control from her younger sister last year in alliance with their eldest brother, former Vice Chairman Gu Bonseong. As a result, concerns have been raised that the management system under CEO Gu Mihyun, who has no prior management experience, may have left a gap in the company's safety management system ahead of the sale of shares to Hanwha.

Ten Years of Sibling Disputes Over Ourhome Management Control

Ourhome began as a food supply business in 1984 and was established as a separate entity in 2000 by the late Chairman Gu Jahak, who split it off from LG Distribution (now GS Retail). The company has since expanded into group catering, foodservice, and distribution, becoming the second-largest player in the catering industry.

Chairman Gu had four children, and disputes among the siblings have persisted throughout the succession process. The youngest, Gu Jieun, joined Ourhome in 2004, was promoted to Vice Chairman in 2015, and became involved in management. However, less than six months after her promotion, she was removed from her position as division head, and the eldest son, Gu Bonseong, was appointed CEO the following year, positioning him as the successor.

In 2017, Gu Jieun attempted to regain management control by calling for an extraordinary shareholders' meeting, but her efforts were thwarted when her eldest sister, Gu Mihyun, sided with their brother. In 2021, after Gu Bonseong became embroiled in allegations of retaliatory driving, embezzlement, and breach of trust, Gu Mihyun sided with her younger sisters, enabling Gu Jieun to regain management control.

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However, Gu Mihyun later demanded a large dividend from Gu Jieun, reigniting conflict. In May last year, she ousted her youngest sister and took the chairman position herself, replacing their brother.

Since then, Gu Mihyun has pursued both an initial public offering (IPO) and a sale of shares on the stock market.

As the management dispute has continued, employee turnover at Ourhome has remained high. Over the past three years, turnover rates were 49% in 2021, 46% in 2022, and 45% in 2023, consistently in the 40% range. During the same period, Samsung Welstory's turnover rate remained at 18-20%. This suggests that prolonged management disputes have led to employee departures. Ourhome explained, "Results vary depending on each company's employment structure and scope of application."

Meanwhile, Hanwha Hotels and Resorts plans to acquire a total of 58.62% (13,376,512 shares) of Ourhome from related parties, including former Vice Chairman Gu Bonseong and Chairman Gu Mihyun, for 869.5 billion won on April 29. Hanwha will first acquire 50.62% to secure management control, with the remaining 8% to be purchased within two years. An industry official commented, "Stabilizing Ourhome's organization and establishing leadership will be the biggest challenges after the acquisition," adding, "This could also be a turning point in the restructuring of the catering market."