[MyDaily = Reporter Bang Geum-suk] As generational handoffs sweep the fashion world, the industry is tense over the legal troubles facing Youngone Trading Group.
On March 9, after the Fair Trade Commission accused Youngone Trading of failing to disclose required filings, attention shifted to succession plans at other fashion houses in the middle of their own generational transitions — including FILA, Hansae, Hyungji, Sejung, F&F and LF.
Insiders say these companies face overlapping hurdles: share restructurings routed through unlisted family firms or investment vehicles, and tangled transaction chains tied to overseas manufacturing units that complicate governance.
“Global partners increasingly prioritize ESG — environmental, social and governance standards — and management transparency, so governance risk can seriously dent a company’s value,” an industry source said.
Here’s a snapshot of the current landscape: FILA Holdings formalized its second-generation transition last month on the 26th, when Chairman Yoon Yun-su moved to honorary chairman and his eldest son, Yoon Geun-chang, stepped in as CEO and took charge of overall management.
At Hansae Group, founder Kim Dong-nyeong’s eldest son, Kim Seok-hwan, runs the holding company Hanse Yes24 Holdings. With Kim Ik-hwan serving as vice chairman of Hansae and Kim Ji-won as CEO of Hansae MK, the three siblings have effectively completed succession.
Hyungji Group’s succession is also taking hold around eldest son Choi Jun-ho. Promoted to vice chairman, he now leads key affiliates including Fashion Group Hyungji and Hyungji Elite.
Sejung Group’s founder Park Soon-ho (born 1946) remains at the helm, but succession is becoming clearer around his third daughter, Park Ira, who has steered the company toward a women’s apparel focus since her promotion to president in 2019.
After converting to a holding-company structure in 2021, F&F has seen Chairman Kim Chang-soo’s eldest son, Kim Seung-beom, join the board of the holding company, F&F Holdings, as the company builds its next-generation leadership.
LF appears to be quietly laying groundwork for succession through LF D&L, an unlisted firm wholly owned by Chairman Koo Bon-gul’s eldest son, Koo Seong-mo, which has steadily been buying shares in the holding company.
The Fair Trade Commission recently referred Youngone Trading Group Chairman Seong Ki-hak to prosecutors, alleging the group omitted 82 affiliates from disclosure filings covering 2021–2023.
The omitted assets total about 3.24 trillion KRW (approximately 2.43 billion USD), the largest figure found among detected false submissions related to designation materials.
The timing of those omissions overlapped with the period when Vice Chair Seong Rae-eun, the chairman’s second daughter, was solidifying her succession, raising suspicions that the omissions were meant to avoid scrutiny under rules against unfair profit extraction.
Seong received a 50.1% stake in the unlisted company YMSA as a gift in 2023, completing a de facto succession, but related disclosures did not function properly during the omission period — a point that has drawn criticism.
Signs of investor pullback tied to the legal risk have also emerged. A “Report on the Status of Major Shareholdings” filed on the 5th shows UK institutional investor Hermes Investment Management trimmed its stake in Youngone Trading from 5.03% to 4.01%, withdrawing roughly 21 billion KRW (about 15.75 million USD).
Hermes cited “withdrawal of investment funds” as the reason, but because sales by institutions like Hermes occurred after the prosecutor referral on the 23rd of last month, analysts say the group’s increased uncertainty likely influenced those moves.
Youngone Trading Group has defended itself, saying the issue resulted from an operational error by staff and not intentional concealment. “We recognized the mistake, voluntarily reported it immediately, and have improved internal processes to prevent recurrence,” a spokesperson said.
The company also downplayed the drop in institutional holdings, noting that changes in institutional positions occur frequently and are not necessarily directly related to this incident.
Youngone Trading Group owns subsidiaries such as Youngone Trading and Youngone Outdoor, which manufacture on an OEM basis and sell for well-known global brands including The North Face and Patagonia.
