Aju Business Daily

SEOUL -- Shares of Komlar Korea, a beauty and pharmaceutical company, sustained a fall due to concerns about public anger, which remained unabated despite the sudden resignation of its chairman over a right-wing video clip which made harsh accusations against President Moon Jae-in for causing a trade dispute with Japan.

Kolmar Korea has been targetted in a boycott by angry consumers since Chairman Yoon Dong-han played a Youtube clip at a gathering of company workers on August 7. The clip was uploaded by an anti-government right-wing activist who praised Japanese Prime Minister Shinzo Abe for not punching Moon in the face, belittled women and made other controversial remarks.

Yoon apologized and resigned on Sunday. "I deeply reflect on what happened due to my personal inadequacy and take full responsibility to resign from the company's management after this time," he said, presenting a sincere apology to women in particular. However, the resignation failed to stop a fall in the shares of Kolmar Korea and its holding company, Kolmar Korea Holdings.

As of 10:00 a.m. (0100 GMT) on Monday, Kolmar Korea was trading at 46,800 won ($38.5), down 1.99 percent from Friday's close.

Japan's export restrictions that began on July 4 have fueled anti-Japanese sentiment in South Korea, leading to a civic campaign to boycott Japanese goods, especially among young people who had been generally indifferent to a diplomatic row related to Japan's 1910-45 colonial rule. A Gallup Korea survey published on July 26 showed that 80 percent of South Koreans were reluctant to buy Japanese products.

Helped by Hallyu (Korean cultural wave), South Korean cosmetics products have gained popularity in Asia. Chinese cosmetics brands have expanded their partnerships with South Korea's original development manufacturing (ODM) companies, which design and manufactures products as specified that are eventually rebranded by another firm for sale.

Founded in 1990 as a joint venture company with Nihon Kolmar, Kolmar has grown to a leading ODM company in the domestic cosmetics industry. Sales soared from 821 billion won in 2017 to 1.36 trillion won in 2018. As an independent entity now, it aims to become a key player in the biotech industry through aggressive expansion.

In July, Kolmar Korea's subsidiary, Kolmask, acquired its domestic rival, Jayjun Cosmetic, to expand the production of sheet face masks which have gained popularity among the urban population of almost every country worldwide. Separately, Kolmar Korea acquired a 57-percent stake in TKM which manufactures drugs for the treatment of anemia.