"As this was our first shareholders' meeting since listing, it should have felt like a celebration, but I apologize for failing to make it so. There were many things I misjudged. I will do my best not to disappoint our franchise owners, employees, and shareholders."

Baek Jongwon, CEO of Theborn Korea, appeared at the shareholders' meeting to explain and apologize for the recent controversies. Amid growing public criticism over various issues, there was uncertainty over whether Baek would attend the meeting, but he personally stepped up to address shareholder concerns.

On the 28th, Baek attended Theborn Korea's first shareholders' meeting held at SpaceShare Gangnam Station Center in Seocho-gu, Seoul, at 10 a.m. Baek, who appeared at around 9:45 a.m. in a dark navy suit without a tie, entered the meeting room without answering any questions from the press. Before taking his seat at the podium, he greeted shareholders with handshakes, engaging in direct communication.

Baek Jongwon, CEO of Theborn Korea, is greeting shareholders at the first regular general meeting held on the 28th at Space Share Gangnam Station Center in Seocho-gu, Seoul. Photo by Yonhap News

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Until the previous day, Theborn Korea had not decided whether Baek would attend the meeting, but it appears he chose to attend in order to directly address the risks.

At the meeting, Baek told shareholders, "As a manager, I deeply regret not managing more thoroughly," and added, "We are using this incident as an opportunity to review our internal systems from the ground up." This is the first time Baek has apologized directly to shareholders.

Baek promised shareholders to enhance transparency and effectiveness by ▲ strengthening the origin management system ▲ collaborating with external experts ▲ and completely overhauling internal management systems. He also said, "We will strengthen communication with shareholders," and added, "We will transparently share improvement measures and achievements through regular progress reports. Theborn Korea is a company built together with shareholders, franchise owners, and customers. Please point out our mistakes and encourage us when we do well."

A Q&A session with shareholders followed. One shareholder pointed out internal atmosphere issues, asking, "Sales and operating profit are good, so why is employee stock ownership participation so low?" Baek replied, "I heard that other companies experienced similar situations at the time of listing." A representative from Theborn Korea explained, "The main reasons are the long one-year lock-up period and the tendency of younger employees to avoid subscriptions, not the internal atmosphere."

After the shareholders' meeting, Baek also spent about 30 minutes answering questions from the press.

Emphasizing communication, Baek first expressed his intention to quickly establish a new PR team and other organizations. He said, "I thought we could just work harder and use the budget for research and development instead of creating a PR team, but that was a mistake," and added, "This time, I truly realized there were things we missed in how Theborn Korea is perceived from the outside."

Baek Jongwon, CEO of Theborn Korea, held a press statement and Q&A session after the first regular shareholders' meeting held on the 28th at Space Share Gangnam Station Center in Seocho-gu, Seoul. Photo by Yonhap News

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He also addressed the topic of mergers and acquisitions (M&A). "I am considering acquisitions, but just because something is cheap on the market doesn't mean we should buy it," he said. "After listing, I realized that holding a lot of cash as surplus assets is not necessarily a good thing, so if there are competitive brands in various fields, we are open to possibilities."

Baek stated, "As the organization and sales have grown, various gaps and oversights have emerged, which may have led to the current issues. I will do my best to quickly identify and resolve the problems as soon as possible."

He added, "I agree with the criticism about owner risk. However, I will use this as an opportunity. It may not be possible to resolve everything perfectly, and there may be further criticism, but I will create opportunities for communication and listen carefully. I hope you will wait just a little longer."

Meanwhile, as of 10 a.m. on this day, Theborn Korea's stock was trading at 28,550 won on the Korea Exchange, down 0.87% from the previous day. On the 17th, it fell to 27,800 won during trading, marking a new 52-week low. Compared to its post-listing high of 64,500 won, the price is less than half.

Baekham gift set, whose sales were suspended by Theborn Korea due to price controversy. Theborn Mall

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Image of Gamgyul Oreum beer product. Provided by Theborn Korea

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The company's stock price continues to struggle amid various controversies. Incidents include the "Baekham incident," where Theborn Korea's canned ham faced criticism for lower pork content and higher price compared to competitor Canham, as well as controversies over tangerine beer ingredient content, origin labeling, pesticide sprayer use, and alleged violations of the Farmland Act. Recently, there were claims that Theborn Korea's "Baek Jongwon All-purpose Stir-fry Sauce" simply mixed water with the famous Hong Kong sauce brand Lee Kum Kee's "Panda Oyster Sauce." Theborn Korea officially denied these claims as untrue. In addition, there have been allegations of an employee "blacklist." The Ministry of Employment and Labor has launched a labor inspection into Theborn Korea.