“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

Up until the mid-2010s, the domestic outdoor market was in its "golden era." With the introduction of the five-day workweek and the booming wellness trend, hiking became a national pastime, and hiking wear turned into everyday attire. The North Face, K2, and Black Yak became iconic national brands, each posting annual sales in the hundreds of billions of won. However, as the fashion trend shifted towards athleisure—a blend of athletic and leisure wear—even Black Yak, once known as the "king of outdoor," found itself at a crossroads.

Black Yak Windbreaker.

The choice of successor is noteworthy. Although Chairman Taesun Kang built the outdoor empire, his eldest son, Junseok Kang, has focused on the industrial safety market, including safety shoes and firefighting equipment. In other words, Black Yak's future is now anchored not on mountains, but in industrial sites. The key to the succession lies in the corporate value of Black Yak INC, the listed industrial safety company controlled by Junseok Kang.

The Fall of the Outdoor Empire

Black Yak traces its origins to 1973, when Chairman Taesun Kang opened a mountaineering gear store named Dongjinsa in Seoul’s Jongno 5-ga district, then founded Dongjin Leisure in 1990. After Chairman Kang introduced the outdoor apparel brand "Black Yak," inspired by a yak he saw during a Himalayan expedition, he changed the company name to Black Yak in 2010, and again to BYN Black Yak in 2020.

In 2015, Black Yak posted record results with consolidated sales of 506.6 billion won and operating profit of 32.7 billion won as the domestic outdoor market hit its peak. However, that "golden era" was short-lived. After the COVID-19 pandemic, consumer trends shifted towards golf, running, and athleisure, leading to a decline in the outdoor market. Overseas, premium brands like Arc’teryx surged, while domestic firms began to lose their growth momentum.

Black Yak’s performance also began to dwindle—falling to 288 billion won in 2020. Although there was a temporary rebound after the pandemic, net sales in 2024 were 297.8 billion won, and last year declined again to 291.7 billion won. Operating profit also turned into a loss in 2024, and losses deepened further last year.

Overseas expansion also fell short of expectations. The American eco-friendly outdoor brand "NAU," a flagship project led by CEO Junseok Kang, has become a notable underperformer. BYN Black Yak acquired NAU International in late 2014 for about $15 million (roughly 18 billion won at the time). However, NAU International has not posted a profit since the acquisition. By the end of last year, its assets amounted to only about 400 million won, while liabilities reached 48.8 billion won, resulting in negative equity of 48.3 billion won—a state of total capital impairment. Last year, NAU International generated about 700 million won in sales and posted a net loss of around 300 million won.

BYN Black Yak deemed the recoverability of funds loaned to NAU International unlikely and thus established a 35.2 billion won allowance for bad debts at the end of 2024. With global brand acquisitions led by CEO Kang yielding little to no results for more than a decade, last year's acquisition of Hanjoo Chemical has become a new test for his management capabilities.

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

From Hiking Wear to Industrial Safety: Black Yak’s Next Big Move

The acquisition of Hanjoo Chemical was carried out by Black Yak INC, where the eldest son is the largest shareholder. Black Yak INC was established in 2013 as a company operating an online shopping mall selling BYN Black Yak products. In 2018, the shopping mall division was transferred to BYN Black Yak, and, in turn, Black Yak INC acquired BYN Black Yak’s industrial safety business, transforming into a specialized safety products company.

In 2024, the company was listed on KOSDAQ through a merger with a special purpose acquisition company (SPAC). The acquisition of Hanjoo Chemical, a gas fire-fighting system manufacturer, greatly expanded Black Yak INC’s scale. The acquisition amount was approximately 74.2 billion won, with Black Yak INC securing a 100% stake in Hanjoo Chemical through the special-purpose company ST Beta First.

Of the acquisition funds, Black Yak INC directly financed 18 billion won while financial investors contributed 17 billion won, with the remainder raised through loans. Black Yak INC also provided a debt guarantee of 48 billion won to the SPAC during the acquisition process. The deal involved more borrowing and external funding than self-financing, sparking some initial concerns about financial strain. Hanjoo Chemical had posted a net loss of 6.1 billion won in 2023, and its losses expanded to 7 billion won the following year.

However, the effects of the acquisition were immediate. Last year, Black Yak INC’s consolidated sales reached 57.3 billion won, a 51.9% increase year-on-year, while operating profit rose 11.8% to 9.3 billion won. In the first quarter of this year, sales reached 16.7 billion won and operating profit was 2.6 billion won, representing growth of 141% and 100%, respectively, over the same period of the previous year.

Founded in 2011, Hanjoo Chemical specializes in the manufacturing and sales of fire-suppression systems and extinguishers. Its gas-based fire suppression systems are mainly installed in data centers, semiconductor plants, and power stations where water-based systems are impractical. The surge in data center investments driven by the spread of artificial intelligence has presented new growth opportunities for Black Yak INC. In the securities industry, there are predictions that if Hanjoo Chemical’s performance is fully reflected for 12 months, Black Yak INC’s sales this year will surpass 80 billion won.

Growing Corporate Value Preceding a Merger? Succession Scenarios Emerge

Industry observers see Black Yak INC as the key to succession. President Junseok Kang, the eldest son of Chairman Taesun Kang, is the largest shareholder with a 53.22% stake in Black Yak INC and has led the company since its founding. He currently serves as an advisor to the management. The chairman’s second daughter, Youngsoon Kang, also holds 22.98% of the shares.

In contrast, Chairman Taesun Kang is the largest shareholder of unlisted BYN Black Yak, holding a 78.94% stake, while KOSDAQ-listed Black Yak INC is owned by his children.

This ownership structure is fueling speculation that the recent expansion of Black Yak INC has been a preliminary step for succession planning. Directly gifting the BYN Black Yak stake owned by the chairman to his eldest son would result in gift and inheritance taxes worth hundreds of billions of won. As an alternative, Black Yak INC could acquire the stake in BYN Black Yak, or, in the long term, the two companies could merge to streamline the group’s ownership structure.

Dongjin Leisure, led by the chairman’s eldest daughter Jooyeon Kang, is another variable in succession. Dongjin Leisure, which operates the Mountia brand, was spun off from BYN Black Yak in 2010 and is currently fully owned by Chairman Kang. In the industry, there is talk of a possible split, with the eldest son taking charge of Black Yak INC and the group’s main business, and the eldest daughter running Dongjin Leisure.

However, one industry insider noted, "Although Chairman Taesun Kang is already 77 years old, he remains very active in business, so the transfer of shares could still be a long way off."

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