"Beyond Food to Beauty"... Dongwon Pursues Acquisition of First-Generation Cosmetics Firm CHARMZONE

[Financial News] Dongwon Group is pursuing the acquisition of cosmetics company CHARMZONE. The group is diversifying its food distribution-based business into the beauty sector.
According to industry sources on the 30th, Dongwon Group has been selected as the final prospective buyer for CHARMZONE, a company specializing in basic cosmetics currently undergoing corporate rehabilitation.
On the 22nd, Dongwon secured the status of conditional final prospective buyer for CHARMZONE, which is undergoing a sale process under the supervision of the Seoul Bankruptcy Court. Dongwon Home Food, a food ingredient distribution affiliate, stepped forward as the acquiring entity.
If this acquisition is successful, it will be the first external merger and acquisition (M&A) undertaken since Chairman Nam-jung Kim took office in March 2024.
CHARMZONE, the target of the acquisition, is a first-generation skincare company established in 1984. It was the first in Korea to introduce cleansing water and enjoyed its heyday in the 1990s, ranking third in sales in the domestic cosmetics industry by featuring its green frog character and 'Control Cream'. However, amidst rapidly changing market trends, a combination of management disputes and excessive business expansion led the company to file for corporate rehabilitation with the court last November.
Dongwon plans to finalize all acquisition procedures, including the signing of the definitive agreement, within the year.
[email protected] Park Kyung-ho Reporter