[Initial Insight] The Founder Who Denied the 'Missha Myth' Himself

After Leaving Post-Sale, Company Listed as Asset for Sale
'Mocking' Remarks on Corporate Value Depreciation

[Asia Economy Reporter Park So-yeon] Missha, the epitome of road shop cosmetics. The protagonist of the success story who rose to third place in the industry in 2012 after creating a sensation with 3,300-won cosmetics in 2002 is former Able C&C Chairman Seo Young-pil. Recently, a post he wrote on his social networking service (SNS) attracted great attention.

Chairman Seo sold Missha to a private equity fund in 2017, but when Missha recently reappeared in the merger and acquisition (M&A) market, he made a comment. He mentioned that the expected sale price was being discussed at 150 billion to 200 billion won and wrote, "I laughed out loud for the first time in a while. The (seller’s) dream is too excessive." He depreciated Missha’s corporate value by saying, "The core workforce and organization of the company have collapsed."

Up to this point, it could be interpreted as an attempt by the former owner of Missha to provide accurate information about the recent transaction. The problem lies in what he said next.

Chairman Seo then sarcastically said, "That amount? Haha, just give me that money," and attached the homepage of a new cosmetics brand he recently created, promoting it as "the most advanced science, the kindest price, Biom Activate."

The impact of Chairman Seo’s post was tremendous. Responses to his remarks have poured in not only from the cosmetics industry but also from M&A experts. The general consensus is summarized as "shameless remarks that violate business ethics."

In particular, employees who remain at Missha and are nurturing the brand reportedly suffered a great shock. A source who has long been involved in the cosmetics industry said, "He took the profits properly for himself, and now, belittling Missha, what does that make the remaining employees?" A business owner experienced in M&A also said, "From an M&A perspective, the amount Chairman Seo sold Missha for included the company’s future value," adding, "Now, by saying that price is not valid, he is contradicting himself by admitting he inflated the price when selling." Beyond corporate ethics, from a character standpoint, he pointed out, "Saying the core workforce has collapsed is not something you say to the people who remain, the family who shared the same table."

This post by Chairman Seo could dismantle the undeniable achievements he has built. Once a researcher at Pigeon, he grew the Missha brand into a 100 billion won sales brand within two years of its launch. In 2012, Missha achieved sales of 450 billion won as a single brand, ranking third in the industry after AmorePacific and LG Household & Health Care. Later, as competition intensified with the explosive growth of the road shop cosmetics market, Seo sold his 25.5% stake to the private equity fund IMM Private Equity (PE) for 188.2 billion won in 2017 and left the cosmetics industry. After the recent end of a five-year non-compete period, he returned by creating a new brand.

Chairman Seo is undoubtedly a figure who achieved remarkable accomplishments that few could easily replicate. However, after this incident, his reputation as a representative of the ‘Missha myth’ will clearly shift to that of an ‘irresponsible entrepreneur.’

A company is closely connected not only to major shareholders but also to organizational members, partners, minority shareholders, customers, and society as a whole. Chairman Seo’s remarks, which revealed ignorance of this, function less as information about Missha’s accurate market value and more as information that clearly reveals the corporate philosophy he has upheld to the entire market.

Even in the ruthless world of deals, the vile battles of deception, and the cold M&A market where no value can come before money, there are minimum ethics, courtesy, and boundaries. Chairman Seo may never understand this, but many industry insiders and experts are shocked or critical of his post because there is a shared empathy for this minimum humanity.

This content was produced with the assistance of AI translation services.