As sibling conflicts within the Kolmar Group intensify, the holding company Kolmar Holdings has begun restructuring its operations by altering the business structure of its health functional food subsidiary, Kolmar BNH.
Kolmar Holdings announced on the 1st that it will fully reposition Kolmar BNH, which is experiencing deteriorating performance, as a life sciences specialized company.
Kolmar Group is effectively managed by its founder Yoon Dong-han's eldest son, Yoon Sang-hyun, who holds a 31.75% equity stake in Kolmar Holdings as the largest shareholder. His younger sister, Yoon Yeo-won, has been leading Kolmar BNH since 2020.
Kolmar Holdings is the largest shareholder with an equity stake of 44.63% in Kolmar BNH.
Kolmar Holdings said, 'We judged that Kolmar BNH has lost its original role within the group due to years of poor performance and a lack of future strategy,' adding that 'the deterioration of Kolmar BNH's performance stems not from external environments but from CEO Yoon Yeo-won's unilateral decision-making and lack of a future vision.'
They continued, 'Repositioning is a fundamental management reform measure at the group level to correct accumulated management failures and to transform into a life sciences-centered high-value-added business.'
Kolmar Holdings explained that Kolmar BNH has been the only entity within the group to experience negative growth, with sales dropping by 7% and operating profit declining by 60% over the past three years.
Kolmar Holdings pointed out that CEO Yoon's initiative to pursue its own brand business, which is far removed from the essence of the research and development (ODM) business, is the main cause of the deteriorating performance.
According to Kolmar Holdings, the self-owned brand Kolmar Living Health, established in June 2020, has now accumulated losses exceeding 10 billion won and is in a state of total capital erosion.
HNG, a subsidiary of Kolmar BNH, was found by the Fair Trade Commission to have provided inappropriate personnel support to KB Lab, a personal company where CEO Yoon held 100% ownership, leading to a penalty surcharge.
Kolmar Holdings plans to convene an extraordinary shareholders' meeting to appoint new internal directors with expertise for the normalization and revitalization of Kolmar BNH's management.
Kolmar Holdings explained that the key to management reform is the transition to a life sciences-centered business structure, securing competitiveness centered on research and development, and restoring a professional management system.