“There Is No Eternal Number One”: Black Yak, Once a Billion-Won National Brand, Seeks a Breakthrough in [Heirs]

Black Yak Seeks Breakthrough in Industrial Safety Amid Outdoor Market Downturn
Black Yak Finds New Path in Industrial Safety
Grow Corporate Value, Then Merge?
Rumors Swirl Over Succession Scenario Centered on the Eldest Son

Until the mid-2010s, the domestic outdoor market was experiencing its 'golden age.' With the implementation of the five-day workweek and the wellness boom, hiking became a "national hobby" and hiking wear became everyday attire. The North Face, K2, and Blackyak established themselves as national brands, each generating annual sales of several hundreds of billions of won. However, as fashion trends shifted toward athleisure (sportswear combining athletic and leisure elements), even Blackyak, once dubbed the "king of outdoor," found itself at a crossroads.

Black Yak Windbreaker.

The key point lies in the choice of successor. Although Chairman Taeson Kang is the founding emperor of this outdoor empire, the business being scaled by his eldest son, Junsuk Kang, centers on industrial safety—covering products such as safety shoes and firefighting equipment. In other words, Blackyak's future is being explored not in the mountains, but on industrial sites. The key to succession also lies in the corporate value of Blackyak INC, a listed industrial safety company dominated by President Kang.

The Fall of an Outdoor Empire

Blackyak traces its origins back to 1973, when Chairman Taeson Kang opened the outdoor goods store 'Dongjin-sa' in Seoul's Jongno 5-ga neighborhood, and later founded Dongjin Leisure in 1990. After being inspired by yaks he saw on a Himalayan expedition, Chairman Kang launched the outdoor clothing brand 'Blackyak,' then changed the company name to Blackyak in 2010, and again to BYN Blackyak in 2020.

In 2015, Blackyak recorded its all-time best consolidated performance, with sales of 506.6 billion won and an operating profit of 32.7 billion won. This coincided with the outdoor market's peak in South Korea. However, the "golden age" did not last long. After the global outbreak of COVID-19, consumer trends shifted rapidly toward golf, running, and athleisure, sending the outdoor market into decline. Internationally, the rise of premium brands like Arc'teryx further eroded the growth engines of domestic firms.

Blackyak's performance also began to decline, with sales dropping to 288 billion won in 2020. Although there was a brief rebound after the pandemic, 2024 sales stood at 297.8 billion won, and last year, the figure decreased again to 291.7 billion won. The company turned to an operating loss in 2024, with the loss growing even further last year.

Its overseas operations also fell short of expectations. In particular, the American eco-friendly outdoor brand 'NAU,' whose business expansion was spearheaded by President Kang, has become notorious as a problematic acquisition. At the end of 2014, BYN Blackyak acquired Nau International for about 15 million dollars, equivalent to approximately 18 billion won at then-prevailing exchange rates. But since the acquisition, Nau International has never recorded a profit. As of the end of last year, it had only about 400 million won in assets, versus 48.8 billion won in liabilities, resulting in a negative total equity of 48.3 billion won—a situation of complete capital impairment. Last year, its sales were only about 700 million won, with a net loss of around 300 million won.

BYN Blackyak judged that it was unlikely to recover the funds lent to Nau International, so it set aside about 35.2 billion won in bad debt provisions at the end of 2024. As the global brand M&A led by President Kang failed to produce results for more than a decade, last year's acquisition of Hanjoo Chemical became a new test of his management capabilities.

Taeson Kang, Chairman of BYN Blackyak, and Junsuk Kang, President of BYN Blackyak,

Shedding Hiking Wear for Industrial Safety: Blackyak's Next Big Bet

The acquisition of Hanjoo Chemical was executed through Blackyak INC, where the eldest son is the largest shareholder. Blackyak INC was established in 2013, initially operating an online mall selling BYN Blackyak products. In 2018, the company transferred its online business division to BYN Blackyak in exchange for BYN Blackyak's industrial safety business division, transforming itself into a company specializing in safety equipment.

Through a merger with a special purpose company (SPC) in 2024, Blackyak INC was listed on KOSDAQ. Its scale expanded dramatically after acquiring Hanjoo Chemical, a manufacturer of gas-based fire extinguishing systems, last year. The acquisition cost was about 74.2 billion won, with Blackyak INC securing 100% of Hanjoo Chemical's shares via the SPC, ST Beta First Company.

Of the acquisition funds, Blackyak INC directly paid 18 billion won, financial investors contributed 17 billion won, and the remainder was reportedly financed by borrowing. Blackyak INC also provided 48 billion won in debt guarantees to the SPC as part of the acquisition process. As borrowed and external capital accounted for a higher proportion than equity capital, there were initially concerns about increased financial risk. Hanjoo Chemical recorded a net loss of 6.1 billion won in 2023, and that loss widened to 7 billion won the following year.

However, the acquisition had an immediate effect. Last year, Blackyak INC's consolidated sales rose to 57.3 billion won, marking a 51.9% increase year-on-year, while operating profit climbed 11.8% to 9.3 billion won. In the first quarter of this year, sales reached 16.7 billion won and operating profit 2.6 billion won, up 141% and 100% respectively from the same period a year earlier.

Founded in 2011, Hanjoo Chemical manufactures and sells fire protection systems and fire extinguishers. Its gas-based fire protection systems are mainly used at data centers, semiconductor plants, and power plants—sites where water-based systems are difficult to use. The growth in data center investments driven by the spread of artificial intelligence (AI) has created new opportunities for Blackyak INC. The securities industry expects Blackyak INC's sales to surpass 80 billion won this year, with Hanjoo Chemical's earnings being fully reflected over the twelve-month period.

Boosting Corporate Value for a Merger? Speculation Mounts Over Succession Scenario

The industry sees Blackyak INC as the key to succession plans. President Junsuk Kang, the eldest son of Chairman Taeson Kang, holds a 53.22% stake in Blackyak INC, making him the largest shareholder. He has served as CEO since the company's founding, and currently oversees management advisory. The chairman's second daughter, Youngsoon Kang, owns a 22.98% stake as well.

While Chairman Taeson Kang holds a 78.94% stake in unlisted BYN Blackyak, Blackyak INC—the listed KOSDAQ firm—is owned by his children.

This governance structure has fueled speculation that Blackyak INC's recent expansion is a preparatory step for future succession. Directly transferring the BYN Blackyak stake from the chairman to his eldest son would result in hundreds of billions of won in inheritance and gift taxes. Therefore, one possible scenario is for Blackyak INC to acquire the BYN Blackyak stake or consolidate the two companies in the long term to simplify the ownership structure.

Dongjin Leisure, headed by Chairman Kang's eldest daughter, President Jooyeon Kang, is another potential variable in the succession process. Dongjin Leisure, which operates the brand Mountia, was spun off from BYN Blackyak in 2010 and is currently 100% owned by Chairman Kang. In the industry, there is talk that the eldest son would take charge of Blackyak INC and the group's main business, while the eldest daughter would manage Dongjin Leisure, leading to a potential split in business lines.

However, one industry insider said, "Although Chairman Kang is 77 years old and of advanced age, he remains highly active, so any ownership succession is still a long way off."

This content was produced with the assistance of AI translation services.