‘Father and Daughter vs. Eldest Son’—Kolmar Group’s Family Feud Over Management Rights Heads to Court

[Korea Financial Times, Son Wontae] A management rights dispute among Kolmar Group’s founding family has erupted into a high-profile legal battle. What began as a sibling conflict over the disappointing performance of subsidiary Kolmar BNH, which operates the group’s health supplement business, has now escalated into a rift between father and son. Kolmar BNH is making rare efforts to dispel concerns about negative growth by releasing annual performance forecasts. With the family feud spilling into the courts, the group’s future now hangs on the judiciary’s decision.

On the 26th, according to industry sources, Kolmar BNH announced, based on recent securities reports, that its strategy of focusing on profitability and expanding overseas business is bearing fruit.

DS Investment & Securities recently projected Kolmar BNH’s annual results at 635 billion KRW in sales and 32 billion KRW in operating profit, up 3% and 30% year-on-year, respectively.
Kolmar BNH also disclosed partial Q2 results: April operating profit reached 3.6 billion KRW—matching the entire Q1 result in just one month—while May operating profit was also 3.6 billion KRW, more than 40% higher than the same period last year. The company cited expansion of high-value-added formulations and new material-based products, diversification of export markets to China, Europe, and Japan, and improved fixed cost absorption from higher utilization at its Sejong Plant No. 3 as key drivers of performance improvement.

A Kolmar BNH official stated, “Securing a sustainable profit structure is crucial,” adding, “This year will be a turning point where our focus on sound management will become visible growth.”

The reason for Kolmar BNH’s public relations campaign is the intensifying management rights dispute between CEO Yoon Yeo-won and her older brother, Kolmar Korea Vice Chairman Yoon Sang-hyun. In April, Vice Chairman Yoon, citing weak Q1 results and a falling stock price, submitted a shareholder proposal to appoint himself and former CJ CheilJedang Executive Vice President Lee Seung-hwa as inside directors at Kolmar BNH. Kolmar BNH viewed this as an attempt to undermine CEO Yoon Yeo-won’s leadership and immediately pushed back. Ultimately, Vice Chairman Yoon filed a petition with the Daejeon District Court on May 2 to convene an extraordinary general meeting.

In response, the siblings’ father and Kolmar Group founder, Chairman Yoon Dong-Han, stepped in. Chairman Yoon’s side claims that control of Kolmar BNH was determined by a 2019 family agreement, and that the shares gifted to his son, Yoon Sang-hyun, were given as a “burdened gift” based on this agreement. Chairman Yoon has filed a lawsuit with the Seoul Central District Court demanding the return of 2.3 million Kolmar Holdings shares (now 4.6 million after a bonus issue) previously gifted to his son. Subsequently, on June 10, Kolmar BNH filed for an injunction with the Daejeon District Court, arguing that Vice Chairman Yoon’s petition for an extraordinary shareholders’ meeting violates the management agreement and disrupts corporate order.

Speaking to this publication, Kolmar BNH said, “It is deeply regrettable that internal family conflict has arisen amid the company’s growth,” adding, “It appears the founder’s decision to resort to litigation came after much deliberation.

According to Kolmar Holdings’ current shareholding structure, Vice Chairman Yoon Sang-hyun is the largest shareholder with 31.75% (10,890,316 shares), followed by CEO Yoon Yeo-won with 7.45% (2,556,000 shares), Chairman Yoon Dong-Han with 5.59% (1,918,726 shares), and Yoon’s husband Lee Hyun-soo with 3.17% (1,086,540 shares). Kolmar Holdings has 34,296,259 shares outstanding, of which the 4.6 million shares Chairman Yoon is demanding back from his son represent about 13.4%.

If Chairman Yoon prevails in court, Kolmar Holdings’ governance will be reshaped: the 4.6 million shares would return to Chairman Yoon, making him the largest shareholder with a 19.01% stake (6,518,726 shares), while Vice Chairman Yoon’s stake would drop to 18.34% (6,293,16 shares). However, with only a 0.6 percentage point difference between father and son, the management rights dispute could persist.

Currently, Kolmar Korea handles the group’s cosmetics ODM business, while Kolmar BNH is responsible for health supplement ODM. Kolmar Holdings owns 26.31% (6.2 million shares) of Kolmar Korea and 44.63% (13,129,267 shares) of Kolmar BNH, meaning any change in Kolmar Holdings’ ownership structure could alter the entire group’s governance.
At the group’s 35th anniversary ceremony on May 15, Chairman Yoon Dong-Han stated, “The division of responsibilities—Vice Chairman Yoon Sang-hyun for cosmetics and pharmaceuticals, and CEO Yoon Yeo-won for health supplements—was the result of thorough discussion and consensus, and my view has not changed,” effectively siding with CEO Yoon Yeo-won.

Kolmar Holdings commented, “The chairman’s remarks stem from concern over CEO Yoon Yeo-won’s management struggles, but business decisions should be based on corporate value, not blood ties.” Kolmar BNH countered, “The chairman, as founder, is mediating between both sides and has said he intends to maintain the current sibling management system.”

Meanwhile, Chairman Yoon Dong-Han’s share return lawsuit was assigned to the Seoul Central District Court’s Civil Division 29 on June 25. As a result, whether Kolmar Group’s governance structure will change—triggered by the Kolmar BNH management rights dispute—now depends on the court’s judgment.



Son Wontae (tellme@fntimes.com)