Family feud in K-beauty giant Kolmar gets even uglier as founder sues son over corporate control

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Family feud in K-beauty giant Kolmar gets even uglier as founder sues son over corporate control

Published: 18 Jun. 2025, 15:17 Updated: 18 Jun. 2025, 15:39

Audio report: written by reporters, read by AI

Yoon Dong-han, chairman of Kolmar Holdings and founder of Kolmar Korea, is seen at a press conference on Aug. 11, 2024. [JOONGANG ILBO]

The family feud within the Kolmar group, a key player in Korea’s global K-beauty industry through cosmetics original design manufacturing (ODM) giant Kolmar Korea, has escalated as the founder has now taken legal action against his own son, following a dispute between siblings over control of the conglomerate.

The group announced Wednesday that founder Yoon Dong-han, chairman of Kolmar Holdings, filed a lawsuit on May 30 demanding that his eldest son, Yoon Sang-hyun, return shares in the holding company.

“Chairman Yoon can no longer stand by as the founding philosophy and managerial order built over 35 years is undermined,” the company said in a statement.

The root of the dispute lies in ongoing friction between Kolmar Holdings and its health supplements subsidiary Kolmar BNH over who controls the functional foods business. Yoon Sang-hyun, who serves as vice chairman of Kolmar Holdings, manages the holding company, while his sister, Yoon Yeo-won, is CEO of Kolmar BNH.

Yoon Sang-hyun recently launched a campaign to revamp Kolmar BNH’s board and replace its leadership, citing investor dissatisfaction over sluggish performance. In May, Kolmar Holdings filed a petition to convene an extraordinary shareholders’ meeting, bringing the conflict into public view.

While the holding company claimed the intervention was a strategic decision to stop further decline in the supplements business, Yoon Yeo-won’s camp pushed back, saying the holding firm was failing to honor the subsidiary’s managerial independence. Her side argued that Kolmar BNH was in the midst of executing a turnaround plan and accused her brother of using past performance as a pretext to seize control.

Yoon Dong-han, chairman of Kolmar Holdings and founder of Kolmar Korea, is seen at a press conference on Aug. 11, 2024. [JOONGANG ILBO]

As the sibling rivalry escalated, their father’s legal action marked a dramatic turn. The elder Yoon had stepped down from active management in 2019 and established a tripartite agreement dividing responsibilities: cosmetics business Kolmar Korea and pharmaceuticals business HK inno.N to his son, and health supplements business Kolmar BNH to his daughter.

Under this arrangement, the chairman transferred 2.3 million shares in Kolmar Holdings to his son, which later doubled in value through a rights offering. Yoon Sang-hyun now holds a 30.25 percent stake and serves as CEO of Kolmar Holdings.

“Vice Chairman Yoon abused his authority as the largest shareholder by attempting to unilaterally alter the agreed succession structure,” the elder Yoon’s legal team stated. “Had Chairman Yoon known this would happen, he would not have transferred the shares.”

They stressed that the shares should be returned immediately. Yoon had reportedly attempted to mediate between his children but was enraged when the conflict became public.

Kolmar Group [JOONGANG ILBO]

During Kolmar’s 35th anniversary event on May 15, Chairman Yoon reiterated his stance, saying, “The division of responsibilities between Vice Chairman Yoon Sang-hyun and CEO Yoon Yeo-won was the result of thorough discussion and consensus, and my view on that has not changed.”

“Though it was painful for such internal discord to be exposed, the chairman strongly believed in restoring order,” a Kolmar BNH representative said. “His deep sense of betrayal and disappointment is reflected in this decision.”

Internally, there is concern about the timing of the family dispute, as the group is making significant strides in global markets.

Despite the economic downturn, Kolmar’s strength in sun care products has driven robust results. First-quarter revenue jumped 14 percent to 653.1 billion won ($472.86 million), while operating profit surged 85 percent to 59.9 billion won.

News of the power struggle triggered a stock rally, with Kolmar Holdings shares soaring more than 29 percent to 15,950 won as of market closing time on Wednesday.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HWANG SOO-YEON [[email protected]]