Kolmar Group Sheds 'Mid-Sized' Label to Become a Large Conglomerate...Governance Structure Put to the Test

On April 29, Kolmar Group was officially designated as a large business group. This milestone comes 36 years after its founding, as its assets have surpassed 5 trillion won, making it the first cosmetics original development manufacturing (ODM) company to join the ranks of Korea's large conglomerates. The global popularity of K-Beauty has driven explosive demand for cosmetics produced by Kolmar worldwide, fueling its expansion. However, attention is also being drawn to how last year's management dispute between the second-generation owner siblings could potentially impact the group’s future governance structure.

According to industry sources on April 29, Kolmar Group's total fair assets for this year amount to 5.243 trillion won, placing it 96th in the 2026 list of public disclosure-targeted business groups (large business groups) announced by the Korea Fair Trade Commission on this day. The chief decision maker is Sanghyun Yoon, the eldest son of Kolmar Group founder Donghan Yoon and CEO (Vice Chairman) of Kolmar Holdings.

Vice Chairman Sanghyun Yoon Giving a Lecture at Amazon Beauty Event
(Seoul=Yonhap News) Reporter Jaehee Lee = On the 19th, at the 'Amazon Beauty in Seoul' event held at COEX in Gangnam-gu, Seoul, Sanghyun Yoon, Vice Chairman of Kolmar Korea, is giving a lecture on the topic of 'The Success of K-Beauty Cosmetic Brands.' 2025.9.19

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According to the electronic disclosure system and industry sources, the combined assets of major affiliates-including Kolmar Holdings, Kolmar Korea, HK inno.N, Kolmar BNH, and Yonwoo-exceed 7 trillion won. However, this figure is a simple sum of individual consolidated financial statements; the Fair Trade Commission adjusts for internal equity structures and duplicate assets, selecting assets based on the business group standard.

Being designated as a large business group goes beyond external growth, as it subjects the company to a new level of regulations and disclosure obligations. These include: ▲disclosure of internal transactions, ▲public reporting of the controlling family's equity structure, ▲regulation of private interests (prohibition of unfair internal trading), ▲prohibition of cross-shareholding and circular shareholding, and ▲prohibition of affiliates' debt guarantees. As such, regulatory oversight becomes significantly stricter.

The designation is also raising expectations that Kolmar Group’s business competitiveness will improve through economies of scale and enhanced funding conditions. On a group-wide level, Kolmar has established a value chain spanning cosmetics (Kolmar Korea), health functional foods (Kolmar BNH), pharmaceuticals (HK inno.N), and packaging (Yonwoo), which is expected to maximize synergy effects through cost savings and accelerated product development via collaboration among affiliates.

Kolmar Group has already taken steps to maximize management efficiency by consolidating the cosmetics business under Kolmar Korea and streamlining affiliates, including divesting non-core businesses of Kolmar BNH. Earlier this year, Kolmar BNH sold subsidiaries related to cosmetics-Kolmask and HNG. Kolmask was incorporated into Kolmar Korea, and the cosmetics manufacturing business of HNG was acquired by Kolmar UX, a subsidiary of Kolmar Korea.

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However, the long-running management dispute between the siblings remains a potential variable in Kolmar Group’s governance structure. Last year, the conflict surfaced over demands for a board reshuffle at Kolmar Holdings, bringing to light a struggle over control and managerial rights between the siblings. In response, Kolmar BNH adopted a three-person co-CEO system with Vice Chairman Sanghyun Yoon, Yeowon Yoon (CEO of Kolmar BNH), and CEO Lee Sanghwa. However, the conflict appeared to be temporarily resolved when Yeowon Yoon resigned as CEO. Kolmar BNH, an ODM specializing in health functional foods and cosmetics, is a subsidiary of Kolmar Holdings in terms of governance structure.

Nevertheless, some point out that the underlying family-centered governance structure remains intact, meaning the risk of renewed conflict cannot be ruled out. Although Yeowon Yoon resigned as CEO, she still maintains her position as internal director, and a lawsuit filed by founder Donghan Yoon against his son, Vice Chairman Sanghyun Yoon, for the return of shares is ongoing. Yoon senior is demanding the return of 2.3 million Kolmar Holdings shares (around 4.6 million shares after a bonus issue), which he claims were given as a conditional gift in 2019. This represents approximately 12.82% of the holding company’s shares.

Currently, Vice Chairman Sanghyun Yoon is the largest shareholder of Kolmar Holdings, with a 31.75% stake, but depending on the outcome of the trial, the equity structure could change. A Kolmar Group representative said, "The third hearing for the stock return lawsuit is scheduled for June 4, and for now, it appears the matter will be resolved smoothly," adding, "Since Vice Chairman Sanghyun Yoon currently holds over 30% of Kolmar Holdings shares, there is no significant concern over the group’s governance structure."

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