[Alpha Biz= Ellie Kim] The founding family of Youngone Group continues to lead on-the-ground management despite mounting legal risks tied to allegations of undisclosed affiliates.

Chairman Sung Ki-hak and Vice Chair Sung Rae-eun are actively overseeing domestic and overseas operations, according to industry sources on May 8. Sung recently attended a vendor event hosted in Vietnam by VF Corporation, the parent company of The North Face, a key partner of Youngone with a licensing agreement running through 2029. Vietnam remains one of the group’s major production hubs alongside Bangladesh and India.

In March, prosecutors summarily indicted Sung on charges of evading designation as a large business group by failing to disclose affiliates, seeking a fine of KRW 100 million. Summary indictment allows courts to impose penalties without a full trial in relatively minor cases, though the case may proceed to formal proceedings if contested.

Earlier, the Fair Trade Commission referred Sung to prosecutors, alleging he omitted 82 affiliates owned by himself and relatives in submissions between 2021 and 2023—reportedly the largest such omission case on record.

Despite the legal scrutiny, Sung has continued global engagements, including business reviews in Vietnam and participation in the “Telangana Textile Dialogue” in India, where he received a lifetime achievement award in global textile leadership. Youngone began production at its Telangana facility last year following its completion in 2023.

While succession to Vice Chair Sung Rae-eun is largely complete, Chairman Sung continues to lead key decision-making and serves as CEO of major affiliates, including Youngone Outdoor and Youngone Corporation.

 

 

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