South Korea’s Youngone Holdings Co. is set to accelerate its new business by establishing a corporate venture capital (CVC) firm in Singapore. Youngone Holdings is the holding company of Youngone Corp., a leading outdoor clothing manufacturer and distributor that supplies to global top brands such as The North Face and Patagonia.
The holding company said on Wednesday that it will start strategic investments in ventures focusing on outdoor clothing manufacturing businesses. The holding company founded the Singapore-based CVC in March, with full ownership, and created its first fund reaching 85 billion won ($65 million).
For investments, the CVC will look for fashion brands, eco-friendly materials and automation businesses in the US, Europe and Southeast Asia. “We will intensify our market power in the core business, outdoor clothing original equipment manufacturing (OEM), as well as find future business opportunities via venture capital investment in response to the fast-changing fashion industry,” said Youngone Holdings’ CEO RaeEun Sung.
RaeEun Sung is the second daughter of Kihak Sung, the chairman of Youngone Corp. RaeEun Sung’s move for venture investments is understood as the second-generation owner starting its family business in earnest.
The holding company CEO joined her family business in 2002 after graduating from Stanford University, where she studied sociology, and became the chief executive of Youngone Holdings in 2016. Youngone Corp.
Chairman Kihak Sung is the largest individual shareholder of the holding company, owning a 16.77% stake, followed by RaeEun Sung holding 0.03% as of end-first quarter of 2022. YSMA, a business entity known as having Kihak Sung as the largest shareholder, holds a 29.09% stake in Youngone Holdings.
The chairman’s three daughters are involved with the family business: first daughter SiEun Sung is leading corporate social responsibility activities in the OEM firm. Third daughter GaEun Sung is managing the business of the global outdoor fashion brands it distributes in Korea.
Youngone Corp. has produced and distributed outdoor fashion products since its inception in 1974. It operates manufacturing facilities in Bangladesh, Vietnam, Ethiopia and El Salvador. On a consolidated basis, it achieved 2.8 trillion won in sales last year, 13.2% up from the previous year, and 442.5 billion won in operating profit, a whopping 70.4% up from 259.7 billion won a year earlier.
Write to Jeong-Cheol Bae at
bjc@hankyung.comJihyun Kim edited this article.
