[비즈한국] Although Talitha Koum, a beauty brand led by CEO Chae Moon-sun of the Aekyung Group's third generation, is putting effort into enhancing its brand image, it continues to face expanding deficits. The business is currently being sustained through funding from a private company owned by her husband, Lee Tae-sung, CEO of SeAH Holdings058650, raising questions about whether it can establish an independent profit structure in the future.
A Blessing in Disguise Through a Lip Balm Event?
Last December, the beauty brand 'Talitha Koum' became a hot topic, particularly in online communities. To commemorate the renewal of its official online mall, the brand held an event giving away free lip balms worth 28,000 KRW to new subscribers. Although the event was originally planned to run until March 2026, it ended early in less than a week due to an influx of participants.
However, confusion arose as participation continued even after the stock was exhausted due to system issues. Talitha Koum initially informed participating customers that it would provide store credit instead of the exhausted lip balm, but later changed its policy and decided to provide the lip balm as promised. It noted, however, that it would take three months for the products to be reproduced.
Recently, as Talitha Koum began shipping the promised lip balms, market sentiment has shifted. While the three-month delay sparked criticism among consumers that the event was merely a marketing ploy to collect personal information, the fact that the brand ultimately kept its promise appears to have led to a more positive evaluation.
The industry interprets this decision as a reflection of CEO Chae Moon-sun's management philosophy. As Chae has emphasized the brand's value as a premium offering, critics suggest she made a judgment call to strengthen the brand image over the short-term cost burden.
Chae is a member of the Aekyung Group owner family; she is the granddaughter of Aekyung Group Chairwoman Jang Young-shin and the eldest daughter of Vice Chairman Chae Hyung-seok. After receiving management training while working in the marketing division at Aekyung Industrial018250, she stepped away from the management frontlines when she married Lee Tae-sung, CEO of SeAH Holdings, in 2013. Later, in 2019, she launched the vegan beauty brand Talitha Koum to pursue her own path.
It is said that Chae has a special affection for Talitha Koum. She has led the brand by personally overseeing everything from product planning and concepts to overall brand messaging. However, some view the brand as lacking a distinct presence in the market. Unlike competing brands launched around the same time that quickly made a name for themselves with flagship products, critics point out that consumer awareness of Talitha Koum has not met expectations. The industry is now watching to see if Talitha Koum can use this opportunity to increase its presence in the market.
Continued Reliance on Owner Funding Amid Poor Performance
Although Talitha Koum gathered high expectations at its launch as a brand led by Chae, it has yet to show significant results in terms of performance. While sales grew from 232 million KRW in 2022 to 576 million KRW in 2023 and 893 million KRW in 2024, the scale of losses has increased further.
Talitha Koum's net losses rose to 1.036 billion KRW in 2022, 2.036 billion KRW in 2023, and 2.913 billion KRW in 2024. Its financial condition is also unstable. As of 2024, the company has approximately 1.6 billion KRW in assets, while its liabilities reach 7.2 billion KRW. With net assets at negative 5.5 billion KRW, the company is in a state of complete capital impairment.
As poor performance persists, Talitha Koum is continuing its business by relying on financial support from its parent company, HPP. HPP has provided a total of 7.6 billion KRW in funding to Talitha Koum, including a long-term loan of approximately 6.99 billion KRW. Of this, about 4.6 billion KRW was recognized as a loss due to the low probability of recovery, and an additional 2.4 billion KRW loss was recognized in investment stakes.
Amidst this, another capital injection occurred recently. In February, Talitha Koum conducted a capital increase of approximately 3.5 billion KRW through shareholder allocation. The raised funds are intended for operational use. HPP contributed approximately 3 billion KRW to this increase, raising its stake from 84.10% to 87.49%.
HPP is a private company in which Chae's husband, Lee Tae-sung, president of SeAH Holdings and a third-generation owner of the SeAH Group, holds a 93.2% stake, with Chae holding 6.8%. This means the structure is one where capital from the owner family is continuously funneled into Talitha Koum. Given that investments continue despite accumulated losses, questions are being raised about whether the business model has been sufficiently validated by the market.
SeAH Holdings explained, "This equity investment is aimed at expanding the Talitha Koum brand in the global market. HPP's investment in Talitha Koum was made after a careful review of long-term investment feasibility. Currently, Talitha Koum is in the early stages of expanding its market, distribution channels, and product categories, and it is a period that requires continuous investment for growth."
At the time of launching Talitha Koum, Chae emphasized that it was an independent brand, highlighting its business separation from Aekyung Group. However, critics note that because funding via an owner family-owned private company continues seven years later, the brand maintains a structure that relies on internal funds rather than a self-sustaining profit base.
With HPP’s continued capital infusions, some argue that although it is formally a private company, the structure is effectively one where owner family funds are being injected. Regarding this, a SeAH Holdings official explained, "HPP is a private investment firm that maintains an open perspective on various fields, investing based on business judgments regarding corporate value and future prospects. Neither HPP nor Talitha Koum have any impact on the financial condition or cash flow of the SeAH Group."