Court sides with Kolmar vice chair in feud over management rights

Kolmar Korea R&D Center in Seoul's Seocho District / Courtesy of Kolmar Korea

Kolmar Holdings, the holding firm of cosmetics and pharmaceutical manufacturer Kolmar Korea, will be allowed to hold a special shareholders’ meeting for its health supplement unit Kolmar BNH, signaling that the group’s management dispute is leaning in favor of Executive Vice Chairman Yoon Sang-hyun.

According to Kolmar BNH’s regulatory filing on Sunday, the Daejeon District Court on Friday approved Kolmar Holdings’ request to hold the unit’s special shareholder meeting.

In the ruling, the court said the holding firm may convene the shareholder meeting by Sept. 26 to vote on key issues, including Yoon’s appointment as a Kolmar BNH board member.

Kolmar Holdings is led by Executive Vice Chairman Yoon, the eldest son of group founder and Chairman Yoon Dong-han, while Kolmar BNH is headed by younger sister, President Yoon Yea-won.

The family has been locked in a dispute over the group’s managing rights since April, when Kolmar Holdings demanded Kolmar BNH hold a shareholder meeting to appoint additional board members, including Executive Vice Chairman Yoon, citing the unit’s poor performance.

Yoon Yea-won refused the demand and requested an injunction to block her brother from holding the shareholders' meeting, which was rejected by a separate court. During this process, their father sided with his daughter, filing a lawsuit demanding the return of shares he gifted to the son in 2019.

Currently, Vice Chairman Yoon is the largest shareholder of Kolmar Holdings with nearly 32 percent, followed by the sister with 7 percent and his father with 5.6 percent.

Since Kolmar Holdings owns nearly a 45 percent stake in Kolmar BNH, while the sister holds about 8 percent, chances are high for the vice chairman to win a shareholder vote if the meeting proceeds, backed by his dominant stake.

“Kolmar Holdings respects the court’s decision to allow the special shareholders' meeting and will faithfully carry out its responsibilities as the largest shareholder,” Kolmar Holdings said in a statement.

Meanwhile, Chairman Yoon’s suit demanding the return of shares he gifted to the vice chairman is currently under review at the Seoul Central District Court.