Kolmar Family Management Dispute Temporarily Resolved... Chairman Yoon Donghan Says "Doing What Is Needed for Company Growth"

The management rights dispute within the owner family of Kolmar Group has come to a temporary resolution. The key point of contention, the CEO position at Kolmar BNH, has shifted from a sole leadership under Yoon Yeowon to a three-person co-CEO system consisting of Yoon Yeowon, Yoon Sanghyun, and Lee Seunghwa.

However, CEO Yoon Yeowon has agreed to focus on external social contribution activities and not participate in overall company management. This compromise is seen as a result of negotiations between Kolmar Group founder Yoon Donghan and his daughter, CEO Yoon Yeowon, on one side, and his eldest son, Kolmar Holdings Vice Chairman Yoon Sanghyun, on the other. Nevertheless, since Yoon Donghan has not withdrawn the stock return lawsuit filed against his eldest son, the underlying conflict remains unresolved.

According to Kolmar Holdings on October 14, Kolmar BNH held a board meeting at its headquarters in Seocho-gu, Seoul, where the appointments of internal director Lee Seunghwa and Vice Chairman Yoon Sanghyun as co-CEOs were approved. The company stated that the purpose of this board resolution was "to transform Kolmar BNH into a core company within the group by shifting to a three-person co-CEO system with enhanced expertise, focusing on high value-added businesses centered on life sciences, and maximizing synergy with the group."

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Previously, in January 2020, Kolmar BNH appointed CEO Yoon as a new CEO, establishing a co-CEO system with then-CEO Jung Hwayoung. Later, CEO Kim Byungmook joined, maintaining the joint leadership structure, but since January last year, CEO Yoon has been managing the company alone.

However, Vice Chairman Yoon Sanghyun, citing Kolmar BNH's poor performance and the resulting decline in corporate value, pushed for a board restructuring led by professional managers, which led to conflict with his younger sister, CEO Yoon Yeowon. At an extraordinary shareholders' meeting last month, Vice Chairman Yoon appointed himself and former CJ CheilJedang Vice President Lee Seunghwa as internal directors. However, their father, Chairman Yoon Donghan, sided with CEO Yoon Yeowon, escalating the dispute over Kolmar BNH's management rights to a legal battle.

As a result, the board meeting held on this day lasted as long as two and a half hours due to prolonged discussions. Chairman Yoon Donghan arrived at Kolmar BNH's headquarters in Seocho-gu, Seoul, about 30 minutes before the board meeting began. After the meeting, he told reporters, "I attended for the development of the company," and declined to comment further on whether he would proceed with the stock return lawsuit, saying, "I have nothing to say at this time."

Although the alliance between Chairman Yoon Donghan and his daughter succeeded in maintaining CEO Yoon Yeowon's position through this board meeting, it means that a decision has not yet been made regarding the withdrawal of the stock return lawsuit filed against the eldest son.

For this reason, industry observers believe that the stock return lawsuit and the upcoming extraordinary shareholders' meeting of Kolmar Holdings will be critical turning points. Chairman Yoon Donghan, along with CEO Yoon Yeowon and other close associates, has submitted a shareholder proposal to replace the Kolmar Holdings board of directors, and Kolmar Holdings is scheduled to hold an extraordinary shareholders' meeting on the 29th of this month.

Previously, in May, Chairman Yoon Donghan filed a civil lawsuit against Vice Chairman Yoon Sanghyun to cancel the 14% (4.6 million shares) stock donation contract and demand the return of the shares. The reason cited was that Vice Chairman Yoon violated the 2018 management agreement signed at the time of the share donation by intervening in the management of Kolmar BNH. The hearing for this case is scheduled for the 23rd.

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