Vice Chairman Sanghyun Yoon Expresses Disagreement with Family Management Philosophy
"I Will Personally Step In as Founder to Resolve the Issue"
Kolmar Holdings: "Shareholder Interests Must Take Priority Over Family Ties"
As the second-generation owners of Kolmar Group have entered into a management rights dispute over the health functional food business, Yoon Donghan, founder and Chairman of Kolmar Holdings, has stated his position to "maintain the current system."
On May 15, at the Kolmar Group’s 35th anniversary ceremony held at the Korea Kolmar Integrated Technology Institute, Chairman Yoon delivered a message of new leap forward for the next 35 years and shared his position with the group’s executives and employees.
Regarding the recent management rights issue, Chairman Yoon said, "Vice Chairman Sanghyun Yoon has expressed disagreement with my philosophy of family management and the previously agreed-upon management succession structure," and added, "As this situation could affect the stability of the group’s management, as well as the trust of our employees, consumers, and shareholders, I feel a deep sense of responsibility as the founder."
The management rights dispute at Kolmar Group surfaced on May 2, when Sanghyun Yoon, Vice Chairman of Kolmar Holdings, filed a petition with the Daejeon District Court requesting approval to convene an extraordinary shareholders’ meeting for Kolmar BNH. Vice Chairman Yoon stated that due to the management failure of Yewon Yoon, the company’s performance and corporate value have both declined, and he would seek to replace the CEO through the shareholders’ meeting.
In response, President Yewon Yoon has immediately objected, arguing that there is no justification for replacing the CEO when business performance is improving. Kolmar BNH announced in a separate disclosure that last month’s sales increased by 7% year-on-year, and operating profit rose by 49.7% year-on-year to 3.6 billion KRW.
Chairman Yoon stated that he has practiced a management philosophy called 'Neo-nepotism'?which combines the strengths of family businesses and professional management?by referencing the family management style of DuPont in the United States. He emphasized, "Value-centered management is both the root and the future of Kolmar. After thorough discussion and agreement, it was decided that Vice Chairman Sanghyun Yoon would be responsible for the cosmetics and pharmaceutical division, represented by Kolmar Holdings and Korea Kolmar, while President Yewon Yoon would oversee the health functional food division, represented by Kolmar BNH. There has been no change in this decision."
Chairman Yoon also indicated his intention to personally mediate this issue. He said, "I see this as a temporary adjustment process for the future, and as the founder, I will step in to ensure the group can move toward a single goal by coordinating and mediating as needed," and added, "Both individuals are leaders who will shape Kolmar’s future together. Going forward, they should not be in conflict but should recognize each other’s roles and value, moving toward a stage where they create greater synergy."
However, Kolmar Holdings maintains that management decisions at a listed company should prioritize corporate value and shareholder interests over family ties. A Kolmar Holdings representative stated, "We will no longer ignore the voices of shareholders," and added, "We will steadfastly reform the management of Kolmar BNH and fulfill our responsibilities as the largest shareholder to enhance shareholder value."
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