This article was posted on the ChosunBiz MoneyMove (MM) site at 4:17 p.m. on Dec. 10, 2025.
ECHOMARKETING, the KOSPI-listed parent company of athleisure brand Andar, made a strategic investment in Hojeon Limited. Hojeon Limited previously had a conflict last year with small shareholders over shareholder return measures, which has not yet been resolved. The small shareholders' coalition has demanded stock-price support measures and shareholder returns from the company and has signaled it will cast opposing votes at next year's shareholders' meeting on the reappointment votes for executives. ECHOMARKETING, which acquired equity in Hojeon Limited, is expected to act as an ally for Hojeon Limited in any future disputes.
On the 10th, according to the Financial Supervisory Service electronic disclosure system and sources in the investment banking industry, ECHOMARKETING's subsidiary Daily N Co., related party CEO Kim Cheol-woong, and Echo Investment Partners acquired Hojeon Limited shares on the market on the 8th, increasing their equity stake to 5.36%. ECHOMARKETING has continued to buy shares since it first acquired a 5% stake in Hojeon Limited last November. On the 8th, the stated purpose of the shareholding was also changed from "simple investment" to "influence on management."
Hojeon Limited is a KOSPI-listed company engaged in apparel original equipment manufacturing (OEM). Based in Indonesia, it works with global brands such as Nike, The North Face and Under Armour, and has delivered steady results through a stable order structure. Hojeon Limited's consolidated sales for the last third quarter were 163.5 billion won, operating profit was 14.3 billion won and net income was 15.5 billion won.
Despite its performance, the stock price has not held up. The initial public offering price at listing in 2017 was 25,000 won, but the stock has shown a weak trend since shortly after listing. Since 2023 it has been stuck in the 8,000-won range box. Hojeon Limited's price-earnings ratio (PER) is currently about 5.4 times, far below the KOSPI average of 19.11 times. That means the stock price remains much lower than the company's performance.
The small shareholders' coalition of Hojeon Limited has been demanding that the company support the stock price through shareholder returns since last year. Their demands at the time included share buybacks and cancellations, increased dividends and cuts to the CEO's salary. They even said that if the company did not accept shareholder return measures, they planned to sell their shares to competitors.
Hojeon Limited later proposed shareholder return measures such as share repurchases and cancellations and reduced dividends, but the dispute has continued. The small shareholders' coalition says the company's shareholder return measures are only for show.
A representative of the small shareholders' coalition of Hojeon Limited said, "It is true the company has accommodated many of the small shareholders' demands," but added, "Evidence has been found that during the share buyback process there were intentional actions to suppress the stock price, so the stock-support policies remain ineffective."
The conflict between the company and small shareholders is expected to flare up again at the director reappointment votes scheduled for March next year. The terms of three directors, including CEO Park Yong-chul of Hojeon Limited and two outside directors who serve as auditors, expire in March next year, and reappointment votes are expected to take place. The small shareholders' coalition has told the company it will oppose the reappointments.
Currently, the owner family of Hojeon Limited — Park Jin-ho and CEO Park Yong-chul — hold about 40% of the equity, but under the "3% rule" they can each only exercise 3% of voting rights when appointing auditors. The small shareholders' coalition is known to have gathered about 18% of Hojeon Limited's equity.
In this situation, as ECHOMARKETING expands its investment in Hojeon Limited, it is expected to play the role of an ally in future disputes. With the owners' voting rights limited by the 3% rule, ECHOMARKETING, which has built business-friendly relations, has entered the fray.
Hojeon Limited and ECHOMARKETING have had a cooperative relationship since the past. In 2020, Hojeon Limited invested about 7 billion won in Andar, securing a 7.5% equity stake. Andar, which acquired that equity, fell into danger of bankruptcy amid deteriorating business performance that year, but its management quickly recovered after ECHOMARKETING acquired it in 2021. This year, Andar overtook competitors to rank first in quarterly sales and succeeded in reclaiming its position as the country's No. 1 athleisure brand.
However, even with ECHOMARKETING's entry, the reappointment of the outside directors who serve as auditors is not expected to be easy. If you count the two largest shareholders of Hojeon Limited, two ECHOMARKETING affiliates and CEO Kim Cheol-woong, the controlling shareholders' voting rights amount to about 11.3%. Not all small shareholders will cast opposing votes, but numerically they are clearly at a disadvantage.