[비즈한국] Suh Ho-jung (30), the second daughter of Amorepacific090430 Group Chairman Suh Kyung-bae (62), has recently joined Osulloc, an Amorepacific subsidiary. Chairman Suh has two daughters: his eldest, Suh Min-jung (34), and his second, Suh Ho-jung. The business community had initially expected the eldest daughter, Suh Min-jung, to be the next chair of Amorepacific Group. However, she has been on an extended leave of absence since July 2023. If Suh Ho-jung demonstrates strong management capabilities at Osulloc, the possibility of her succeeding to the group cannot be ruled out.
Suh Ho-jung joined Osulloc on July 1 and was assigned as a new employee to the Product Development (PD) team. This marks her first time joining an Amorepacific Group affiliate. At Osulloc, she is responsible for the development and marketing of green tea-related products.
With her entry into the company, the business world's attention has shifted to the potential succession at Amorepacific Group. While her elder sister, Suh Min-jung, joined Amorepacific in 2017 and began building her career early on, Suh Ho-jung has kept a low profile. However, with Suh Min-jung entering a long-term leave in July 2023 and remaining out of the spotlight since, Suh Ho-jung’s entry into Osulloc signifies the start of her management training. Should she prove her leadership skills, becoming the next chair is not an impossibility.
The most crucial factor is Chairman Suh Kyung-bae's intent. In May 2023, the Chairman gifted 672,000 common shares and 1.728 million convertible preferred shares of Amorepacific Holdings to Suh Ho-jung. This led to speculation that the Chairman might be favoring his second daughter.
Looking at current shareholding ratios in Amorepacific Holdings based on common stock: Chairman Suh Kyung-bae holds 52.96% (43,673,854 shares), Suh Min-jung holds 2.93% (2,412,710 shares), and Suh Ho-jung holds 0.97% (646,531 shares). However, the 1.728 million preferred shares gifted to Suh Ho-jung will convert to voting common shares in 2029. Suh Min-jung holds only 141,000 preferred shares. If current stake levels are maintained, the holdings of the two sisters will become comparable by 2029.
Nevertheless, it is premature to assess the succession plan based solely on current stakes. Even after the preferred shares are converted to common stock, the holdings of both sisters in Amorepacific Holdings will remain at just around 2%. This level is insufficient to exert significant influence over the management of Amorepacific Group. Ultimately, the next chair is expected to be determined according to the will of Chairman Suh Kyung-bae.
For Suh Ho-jung to move closer to succession, she must prove her management competence. Osulloc, where she has joined, has seen strong performance until last year. According to audit reports, Osulloc's revenue increased by 11.72% from 83.9 billion won in 2023 to 93.7 billion won in 2024, and operating profit rose by 68.66% from 5.5 billion won to 9.2 billion won during the same period. However, the atmosphere has changed this year. While revenue grew from 24.1 billion won in Q1 of last year to 25.4 billion won in Q1 of this year, operating profit decreased from 1.9 billion won to 1.7 billion won over the same period. Some in the securities industry predict a rebound in Osulloc's performance in the second half of this year. Osulloc is currently leading in the development of differentiated content, such as opening a matcha-specialized store in March this year.
Another scenario involves the potential split of Amorepacific Group's affiliates. This theory suggests that Suh Min-jung might inherit the cosmetics business, while Suh Ho-jung takes charge of non-cosmetics operations. While cosmetics currently account for an overwhelming portion of the group's business, the company is seeking to expand its health functional food business, centered on Osulloc. The fact that Suh Ho-jung joined Osulloc rather than Amorepacific also fuels speculation regarding a potential corporate spin-off. An Amorepacific Group official stated regarding the succession plan, "Nothing has been decided at this time."