Korean catering firm Ourhome again engulfed in sibling feud

South Korea’s catering service provider Ourhome Ltd. faced another sibling dispute as its Chief Executive and Vice Chairwoman Koo Ji-eun failed to get the nod from shareholders to serve another term. Shareholders supported her elder brother and sister in voting against the current CEO.

At an annual general meeting on Wednesday, Ourhome’s shareholders rejected a proposal to re-appoint Koo, whose tenure as an inside director is set to expire in June, while approving the appointments of the oldest sister Koo Mi-hyun and her husband as new inside directors, according to industry sources. The oldest sister has not yet been in the management.

Shareholders disapproved of the former CEO Koo Bon-sung’s proposal to more than triple the company’s dividend cap to 20 billion won ($14.4 million) from the current 6 billion won, however, as the incumbent CEO and the firm said it is difficult since executives could not receive incentives, according to people with direct knowledge on the matter on Thursday.

FORMER CEO SUPPORTER TEAMS UP WITH EX-CEO

The four children of Ourhome’s late Chairman Koo Ja-hak together hold more than a 98% stake in the unlisted company. The ex-CEO, his only son, has 38.56%, followed by the current CEO with 20.67%. The newly appointed inside director, the oldest daughter, holds 19.28%, while another sister Koo Myung-jin has 19.6%.

The sibling feud took a new turn as Koo Mi-hyun joined hands with her brother, with their combined stakes topping 50%. He previously lost the support of all his siblings.

The three sisters teamed up to dismiss their brother, who was sentenced to a two-year suspended jail term due to driving misconduct, as the CEO in 2021 while agreeing to unify their voting rights until the end of the terms of directors appointed at the general shareholders’ meeting. Koo Mi-hyun also partnered with the current CEO to create a professional management system in 2017 when their brother led the company.

Koo Bon-sung has been in a legal battle with the incumbent CEO since she took the helm of Ourhome in 2021.

COUNTERMEASURES

Ourhome is scheduled to hold another shareholders’ meeting on June 4 as the company needs to appoint at least one inside director to meet the requirements of at least three directors for a firm with capital of more than 1 billion won.

The current CEO Koo Ji-eun is not expected to come up with clear countermeasures at the meeting, although she is seeking a reversal, industry sources said.

“We plan to seek solutions such as legal action while continuing management activities until June,” said a source close to her.

She is likely to tap a professional executive as an inside director as her oldest sister Koo Mi-hyun and her husband have not yet managed a company, industry sources said.

Write to Sul-Li Jun at sljun@hankyung.com
 

Jongwoo Cheon edited this article.