The stock price of Theborn Korea, led by S. Korean celebrity chef and entrepreneur Paik Jong-won, has been declining, with 99% of shareholders reportedly experiencing losses. The company’s heavy reliance on Paik’s personal brand, coupled with recent controversies such as the Paik Ham pricing issue, has heightened shareholder concerns.
As of Jan. 30, NH Investment & Securities reported that among 18,115 investors holding Theborn Korea shares through their brokerage, 99.99% are incurring losses. These investors have an average return of minus 25.66%, with an average purchase price of 38,407 won ($26.59). Kiwoom Securities estimates the average purchase price of individual investors in Theborn Korea at about $34.41.
Theborn Korea’s stock has been sliding ever since its market debut in Nov. 2024, losing steam despite a strong start. Despite a successful demand forecast among institutional investors, leading to an initial public offering price of approximately $23.54, the stock peaked at $44.66 on the listing day but traded at around $23 as of Jan. 24, 8.67% below the IPO price.
Recently, Paik has been facing a wave of backlash after introducing Paik Ham, a canned ham product marketed as a Lunar New Year gift set on YouTube. Initially priced at around $36 per set, it was later discounted by 45%.
However, consumers criticized the price as excessive compared to competitors. For instance, a similar-sized Spam product is available for $15 on Coupang. Additionally, Paik Ham contains 85.42% domestic pork, while Spam comprises 92.37% pork from various countries, including the U.S., Spain, and Canada.
In response to the criticism, Paik appeared on YouTube on Jan. 26, explaining that the 45% discounted price yields a profit margin of only $1 per set, and after accounting for operating and promotional expenses, the margin is virtually zero.
He also responded to concerns about the pork content, explaining that Paik Ham contains 85.42% pork, while Spam has 92.37%—a 7% difference that amounts to just 14 grams per 200g can, costing less than $0.07. He stressed that this wasn’t about cutting costs but a deliberate choice to enhance flavor by incorporating unique seasonings.
Despite Paik’s explanations, public criticism persists. As of Jan. 30, the Paik Ham video had drawn around 3,600 comments, with many expressing frustration. Some users wrote, “Does he think his subscribers are fools?” and “First, he discounts the stock, now he’s discounting the ham.” Even on the Paik’s clarification video, viewers commented that Paik was missing the point of the criticism, which centered on the perception of inflated original pricing to make the discount appear more substantial.
Following the Paik Ham video, another video featuring Paik inspecting a Hong Kong Banjeom franchise received over 23,000 comments, many critical of both the franchisee and Theborn Korea’s management capabilities. Hong Kong Banjeom accounts for 12.72% of Theborn Korea’s sales, second only to Paik’s Coffee at 37.34%.
The decline in public favor poses concerns for Theborn Korea’s shareholders, as Paik’s high profile serves as both an asset and a potential liability. The company acknowledged in its IPO prospectus that any reputational damage from Paik’s personal actions could negatively impact business performance and financial status.
Previously, Paik’s public image played a significant role in the company’s IPO success. Despite facing challenges in June 2023 due to conflicts with Yeondon ball Katsu franchisees, his popularity from the cooking show Black and White Chef: Culinary Class Wars helped turn public opinion, leading to a successful IPO with strong demand from institutional investors.
However, risks still loom over the company, as the Fair Trade Commission has yet to issue a ruling. Some Yeondon Ball Katsu franchisees claim they were misled by exaggerated sales and profit projections when signing on and have filed complaints with the commission. Theborn Korea, however, argues that it simply provided estimated sales figures.
