Kolmar Holdings Demands Board Restructuring at Kolmar BNH... Signs of Sibling Dispute Emerge

Kolmar BNH Rejects Proposal from Largest Shareholder
Kolmar Holdings Files Court Application to Convene Shareholders' Meeting

Kolmar Holdings, the holding company of the beauty and healthcare conglomerate Kolmar Group, has demanded a board restructuring at its underperforming subsidiary, Kolmar BNH. This move has sparked signs of a management rights dispute between Kolmar Group Vice Chairman Yoon Sanghyun, the eldest son of Kolmar founder Yoon Donghan, and Kolmar BNH President Yoon Yeowon, the second son, as they have expressed differing opinions on the matter.

According to industry sources on May 9, Kolmar BNH announced in a regulatory filing that it had received a proposal from its largest shareholder, Kolmar Holdings, to restructure its board. Kolmar BNH is a subsidiary of Kolmar Holdings specializing in health functional foods.

Kolmar Holdings, citing the ongoing poor performance of Kolmar BNH, proposed appointing Vice Chairman Yoon and former CJ CheilJedang Vice President Lee Seunghwa as inside directors on Kolmar BNH's board and called for an extraordinary shareholders' meeting to discuss the matter. However, Kolmar BNH did not accept the proposal. As a result, on May 2, Kolmar Holdings submitted an application to the Daejeon District Court seeking approval to convene a shareholders' meeting.

Currently, Kolmar Holdings owns 44.63% of Kolmar BNH, while President Yoon holds 7.78%. Vice Chairman Yoon owns 31.75% of Kolmar Holdings. Kolmar Holdings has stated its intention to change the board composition of Kolmar BNH to normalize management and enhance shareholder value.

A Kolmar Holdings representative said, "With shareholder dissatisfaction growing due to Kolmar BNH's poor performance and declining stock price, Kolmar Holdings, as the largest shareholder, proposed a board restructuring to fulfill its responsibility. This measure is a strategic decision aimed at normalizing Kolmar BNH's management and enhancing shareholder value through sustainable growth."