Kolmar BNH will wind down its cosmetics business and reorganize its business structure around health functional food original design manufacturing (ODM). Kolmar BNH disclosed on the 30th that it decided to dispose of 100% equity in its subsidiary, cosmetics manufacturer Kolmask.
Another subsidiary, HNG, will transfer the entire cosmetics business operations—including assets and liabilities—to affiliate Kolmar UX for 19.53 billion won.
With this equity sale and business unit transfer, Kolmar BNH will no longer have any cosmetics-related business. The equity disposal proceeds total 20.37 billion won, bringing the company's total cash secured to about 39.9 billion won. The company said the move is a strategic decision to focus its capabilities on health functional food ODM. The idea is to clarify roles among affiliates and strengthen the competitiveness of core businesses.
The secured funds will be invested in strengthening core business competitiveness and securing future growth drivers. Over the mid to long term, based on capabilities in functional raw materials and formulation technology and research on natural material–based ingredients, the company plans to expand research and business into areas such as strengthening the immune system, skin regeneration, and improving cognitive function, to extend healthy life spans and leap forward as a life sciences company.
Chief Executive Lee Seunghwa of Kolmar BNH said, "A strategic restructuring to strengthen fundamentals through selection and concentration," adding, "We will secure mid- to long-term growth drivers by expanding overseas ODM, strengthening collaboration with key partners, and improving the structure of the domestic ODM business."
Kolmar BNH last year shifted to a system with separate chief executives—Lee Seunghwa, Yun Sanghyeon, and Yun Yeowon—following conflict between the owner siblings.