Kolmar Holdings 'General Meeting', US Activist Dalton Joins Board... Proposal Passed

Dalton's Proposal to Appoint Im Sungyoon as Outside Director Approved

US activist fund Dalton Investment (Dalton) has entered the board of directors of Kolmar Holdings, the holding company of Korean cosmetics manufacturing and development company (ODM) Kolmar.

According to the distribution industry on the 31st, at the Kolmar Holdings shareholders' meeting held at Kolmar Gwanjeong Branch 4 in Sejong Special Self-Governing City, the proposal No. 3-3 by Dalton to appoint Im Sung-yoon as an outside director was approved. The agenda passed smoothly without any disagreement among major shareholders. Dalton also did not make any separate remarks regarding the agenda.

Dalton is an activist fund that invests long-term in undervalued companies and raises corporate value through active shareholder participation. Kolmar Holdings is analyzed to have voted in favor, judging that Dalton’s active participation could enhance shareholder value and improve the stock price. It is also presumed that the fact that Vice Chairman Yoon Sang-hyun, the largest shareholder, and related parties hold 50% of the shares, freeing the company from management rights threats, influenced the decision.

Looking at the shareholder composition of Kolmar Holdings, Vice Chairman Yoon Sang-hyun holds 31.75% of the shares. Including related parties, the stake amounts to 48.46%, close to half. Dalton holds 5.69% of the shares.

Earlier this month, Dalton sent a letter to Kolmar Holdings recommending Im Sung-yoon, co-CEO of Dalton Korea, as an outside director, expressing its intention to exercise shareholder rights. On the 14th, Dalton disclosed its shareholding purpose and details according to the '5% rule,' changing its purpose from simple investment to management influence. This indicated its intention to actively participate in major company policies and executive appointments to enhance corporate value, rather than being a passive investor.

An outside director does not work full-time at the company but holds responsibilities and authority as a board member to oversee decision-making. Newly appointed outside director Im Sung-yoon holds an MBA from the University of Chicago and serves as co-CEO of Dalton Korea alongside Song Ki-seok, former head of Merrill Lynch Korea Research. He also serves as a partner portfolio manager and senior analyst at Dalton.

At the shareholders' meeting, the approval of financial statements, director appointments, and audit committee member appointments were all passed. Kolmar Holdings reported consolidated sales of 678.8 billion KRW last year, a 6.5% increase compared to the previous year. Operating profit rose 140% to 40.6 billion KRW. Net profit increased 546% to 39.1 billion KRW.

Meanwhile, Vice Chairman Yoon said at the shareholders' meeting, "Despite many internal and external challenges and difficulties last year, we were able to achieve meaningful management results based on the efforts of our employees and the trust of our shareholders." He added, "This year, amid ongoing economic uncertainties, we will strengthen our digital capabilities to create new opportunities, fulfill our corporate social responsibilities, and continue sustainable growth."

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