Dongwon Group is in the process of acquiring the first-generation cosmetics brand Chamzon.
According to industry sources on September 30, Dongwon Home Food, a subsidiary of Dongwon Group, was designated as the final acquirer in the sale process of Chamzon, which is being managed by the Seoul Rehabilitation Court, on September 22.
The sale will be finalized with court approval if no other candidates present better offers during the public bidding. The acquisition amount is reported to be in the hundreds of billions of won.
If the acquisition is confirmed, it will mark the first merger and acquisition (M&A) achievement for Chairman Kim Nam-jung, who took office in March 2024. Dongwon is said to highly value Chamzon's research and development capabilities in basic cosmetics, which have been accumulated over more than 40 years, as well as its independent production infrastructure.
Founded in 1984, Chamzon was the first in South Korea to develop cleansing water and gained popularity with its flagship product, 'Control Cream,' and its green frog character. In the 1990s, it ranked among the top three in domestic cosmetics sales but faced declining competitiveness, excessive business expansion, and management disputes, leading to poor performance. Ultimately, after chronic losses, it filed for rehabilitation in November last year and received a decision to commence proceedings in December.
Dongwon Group has a history of acquiring companies with strong technology but facing management difficulties to improve their operations and expand their business scope. A notable example is the acquisition of Starkist, the largest tuna brand in the U.S., which was in the red in 2008. Chairman Kim has also expanded the group's reach by acquiring companies such as Geumcheon (2015), Dongbu Express (2017), and MKC (2021) during his tenure as vice chairman.
A Dongwon Group official confirmed, "It is true that we are participating in the Chamzon acquisition process," but added, "As this matter is still ongoing, nothing has been definitively confirmed yet."
* This article has been translated by AI.
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