Kolmar BNH, a company specializing in the research, development, and production of health functional foods, announced on the 27th that a hearing date for the injunction application against the alleged illegal activities filed by CEO Yoon Yeowon against her older brother, Vice Chairman Yoon Sang-hyun, CEO of Kolmar Holdings, is scheduled for next month on the 2nd.
The injunction application is a response to Vice Chairman Yoon's action on April 25, when he requested the convening of an extraordinary shareholders' meeting to appoint himself and his associate, Lee Seung-hwa, former Vice President of CJ CheilJedang, as internal directors of Kolmar BNH, and filed an application for approval to convene the extraordinary shareholders' meeting at the Daejeon District Court on May 2.
CEO Yoon said, “This not only directly violates the management agreement between three parties but is also a serious illegal act that could lead to irreparable damage to the entire group, including Kolmar Holdings, by violating laws or regulations as a director of Kolmar Holdings.”
The management agreement in question, signed in 2018, was made among Vice Chairman Yoon Sang-hyun, CEO Yoon Yeowon, and their father, the founder and Chairman of Kolmar Group, Yoon Dong-han. Detailed content is expected to be disclosed in court during the hearing.
Kolmar BNH explained that the request for the extraordinary shareholders' meeting directly violates the agreement and could negatively impact the independence of Kolmar BNH and the stability of the governance structure of the Kolmar Group.
Meanwhile, Chairman Yoon Dong-han is a major shareholder (holding 5.59% equity) of Kolmar Holdings and a party to the management agreement among the three parties, and he is expected to participate in the injunction process in a supporting capacity for CEO Yoon. Chairman Yoon has expressed concern that Vice Chairman Yoon's actions “seriously undermine the rational succession structure and management order of the Kolmar Group, and further, the corporate value of the Kolmar Group.”
This injunction application has gained attention as it goes beyond a simple conflict over the appointment process of internal directors and has the potential to shake the foundations of governance within the Kolmar Group. The injunction hearing is scheduled to be held in public on July 2 at 4:20 p.m. in the 21st Civil Division of the Daejeon District Court (Courtroom 303).