Sung Rae-eun, CEO of Youngone Holdings and the second daughter of Youngone Corporation Chairman Sung Ki-hak, is broadening her management stride by leading the establishment of a corporate venture capital (CVC) that will be in charge of investment in venture companies.
If she proves her managerial ability through a new business, Youngone's 'second-generation management era' will begin in earnest, business sources said on July 14.
Youngone Holdings announced on July 13 that it would establish a CVC and make strategic investments in existing business-related ventures. The first fund is worth 85 billion won.
Youngone Holdings established Youngone Holdings Venture Capital (YOH CVC) in Singapore in March to discover startups in the US, Europe, and Southeast Asia. This CVC is 100% owned by Youngone Holdings.
Youngone Holdings plans to discover new fashion brands through this CVC and invest in startups with strengths in eco-friendly materials and automation.
CEO Sung said, "We plan to respond to the rapidly changing industrial environment by strengthening our market dominance in our core fields and seeking future business opportunities by investing in venture companies."
It is said that the establishment of CVC contains the strong will of CEO Sung.
As the fashion industry trend is changing rapidly, it is interpreted that it is better to invest in a competent start-up company than to pursue a new business from scratch.
The outdoor sector has a relatively short history compared to other sectors in the fashion industry.
Accordingly, the second generation of owners in this field showed a tendency to quietly seek performance rather than go all out in company management.
Sung joined the company in 2002 after graduating from Stanford University with a degree in sociology.
Since 2016, she has served as the CEO of Youngone Holdings. However, she did not fully inherit the shares from her father.
As of the end of the first quarter of this year, the stake in Youngone Holdings was 16.77% by Chairman Sung Ki-hak, 0.03% by CEO Sung Rae-eun, and 29.09% by YMSA, where Chairman Sung is the largest shareholder.
All three daughters of Chairman Sung are involved in the business.
The eldest daughter, Sung Si-eun, director of Youngone Trading, is in charge of social contribution activities.
The third daughter, Sung Ga-eun, executive director of Youngone Outdoor, is in charge of overall domestic brands such as The North Face.