[비즈한국] It has been revealed through BizHankook's investigation that H&H Holdings, a personal company established two years ago by Hansol Chemical Chairman Cho Dong-hyuk014680, is currently undergoing liquidation. Chairman Cho, the grandson of the late Samsung Group founder Lee Byung-chul, invested his own capital two years ago to establish H&H Holdings with the goal of exploring new business opportunities in "deep-sea water," even selling bottled water. What is the reason for the sudden liquidation of his personal company?
Chairman Cho Dong-hyuk established his personal company, H&H Holdings, in June 2022. With a capital of 100 million KRW and 100% ownership held by the Chairman, it appears to have been funded by his personal assets. Since its establishment, the Chairman has lent 440 million KRW to H&H Holdings, bringing his total investment to 540 million KRW.
Chairman Cho intended to use H&H Holdings to discover new business opportunities related to deep-sea water. Although the company's stated business objectives at the time of establishment included diverse fields such as chemicals, semiconductors, import/export, real estate, financing, holding company operations, and consulting, it added "deep-sea water sales" to its objectives in January of last year. Following this, it collaborated with online mall operator Hoosi Creative to launch "Hoosi Water," and partnered with bottled water manufacturer Water Biz to release "Hansol Soo" and "Hansol Jinsoo." These products were sold on the e-commerce platform Coupang.
However, it has recently been confirmed that Chairman Cho Dong-hyuk is in the process of liquidating H&H Holdings. H&H Holdings announced on the 19th that, following a resolution at the shareholders' meeting on the 11th, it is undergoing liquidation procedures. The company also stated that the 440 million KRW debt owed to the Chairman has been waived. It has also been confirmed that products like Hoosi Water, Hansol Soo, and Hansol Jinsoo are no longer being sold on Coupang.
What is the reason behind Chairman Cho Dong-hyuk liquidating his personal company just two years and three months after its establishment?
When asked for comment, Hansol Holdings stated, "We have no knowledge regarding the business of H&H Holdings." Within the business community, it is highly likely that Chairman Cho opted for a bold dissolution due to poor business performance, such as low revenue and accumulated deficits.
In 2023, the year it launched its bottled water products, H&H Holdings recorded a mere 69 million KRW in revenue and a loss of 231 million KRW. Adding the interest on the debt borrowed from the Chairman, it likely became unsustainable to continue operating the company. While the recent fallout from the TMON-WeMakePrice (TMAP) crisis may have also had an impact, Hansol Holdings has not issued any official statement.