South Korean cosmetics manufacturer Kolmar Korea is facing activist pressure as U.S.-based Dalton Investments secured a board seat at the company’s holding firm, a move that could signal a push for shareholder-friendly changes.
Kolmar Korea Holdings said on March 31 that shareholders had approved the appointment of Lim Sung-yoon, co-head of Dalton Korea, as a non-executive director at its annual general meeting.
Dalton, which initially disclosed a 5.02% stake in Kolmar Korea Holdings in November 2024, classified its investment as passive. However, it raised its stake to 5.69% as of March 14 and changed its status to an active investment aimed at influencing management. The fund then proposed Lim’s appointment, which was confirmed at the March 31 shareholder meeting.
Dalton is known for investing in undervalued companies and pushing for shareholder-friendly changes. When it first disclosed its stake in November, Kolmar Korea Holdings had a price-to-book ratio of 0.44, well below the typical threshold of 1.0 that signals fair valuation.
Industry analysts expect Dalton to push for enhanced shareholder returns at Kolmar Korea Holdings, similar to its past campaigns. In 2019, Dalton criticized Hyundai Home Shopping for insufficient shareholder returns and called for share buybacks and higher dividends. In 2022, it pressed SK Group to strengthen shareholder return policies.
Kolmar Korea Holdings, however, downplayed the likelihood of a governance dispute, citing its strong insider ownership. Vice Chairman Yoon Sang-hyun and affiliated parties control a 48.45% stake in the company.
“We have been taking steps to enhance shareholder value, including recent share buybacks and cancellations,” a company official said. “With Dalton now on the board, we look forward to engaging with a diverse range of shareholder perspectives to further improve corporate and shareholder value.”
Shares of Kolmar Korea Holdings closed up 8.12% at 9,720 won on March 31.
