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Youngone Outdoor President Sung Ga-eun, 3rd Daughter of Chairman Sung Ki-hak, Decides to Liquidate Company 'EK Tech'

[비즈한국] EK Tech, a company where Youngone Outdoor President Sung Ga-eun is the largest shareholder, has decided to liquidate its business. EK Tech is the company that operates the fashion brand 'Edit Plus.' However, Edit Plus has not shown a significant presence in the fashion industry.

According to the corporate registry, EK Tech decided to dissolve following a shareholders' meeting resolution on February 17 and is currently undergoing liquidation procedures. The liquidator for EK Tech is Lee Kang-rak, the current CEO of EK Tech.

Youngone Group Chairman Sung Ki-hak (77) has three daughters: eldest daughter Sung Si-eun, a director at Youngone Corporation (48); second daughter Sung Rae-eun, Vice Chair of Youngone Holdings009970 (47); and third daughter Sung Ga-eun, President of Youngone Outdoor (44). President Sung Ga-eun holds a 79.19% stake in EK Tech.

EK Tech’s Edit Plus is a women's apparel brand with a concept centered on proactive responses to climate change. However, EK Tech failed to achieve notable performance. In 2023, EK Tech recorded 1.265 billion won in revenue and 43 million won in operating profit. This is a negligible level compared to Youngone Corporation, which generates over 3 trillion won in annual revenue. The 2024 performance has not yet been disclosed.

EK Tech has also been the subject of controversy in the past. Since 2016, Youngone Outdoor has been conducting the 'North Face Edition' project to support underdeveloped countries. It was a project that used part of the proceeds to provide drinking water support to underdeveloped countries. The project was carried out through a collaboration between the North Face brand and the Edit Plus brand, which led to criticism that it was a ploy to support EK Tech.

President Sung Ga-eun once directly managed the company as the CEO of EK Tech. President Sung resigned in August 2022, and Lee Kang-rak, CEO of KR Consulting, was appointed as her successor. EK Tech’s headquarters was previously located at a North Face store within Gwangjang Market in Jongno-gu, Seoul. However, in June of last year, EK Tech moved its headquarters to the private residence of CEO Lee Kang-rak in Seogyo-dong, Mapo-gu, Seoul. BizHankook contacted Youngone Corporation several times to hear their position regarding this matter, but could not be reached.