Scott Sports recently announced the appointment of Juwon Kim as its new CEO, following the departure of Beat Zaugg. Kim brings with him extensive experience in investment banking and a background in mergers and acquisitions. He has been a member of the Scott Sports Board of Directors since 2022, and previously served as head of growth strategy and mergers and acquisitions for Youngone Corp., a South Korean apparel brand that owns a majority stake in the company.
Kim will be supported by experienced industry executives Steve Meineke and Mathias Seidler, who will guide him through his transition into his new role. The change comes after Youngone loaned its subsidiary 150 million Swiss francs, despite expressing confidence in the existing management and employees at Scott Sports. The board of directors emphasized Youngone’s continued commitment to the company during this transition phase.
Chairman Kihak Sung of Youngone reaffirmed their strong partnership with Scott Sports, stating their belief in the company’s products, employees, and future growth potential. In 2023, Youngone disclosed a 4.6% loan to Scott Sports in a filing with South Korean financial regulators. In recent years, Scott Sports reported profits of $35.8 million in 2022 and $23.2 million in 2021.
Youngone is also a supplier to other well-known brands such as Patagonia, adidas, Lululemon, Outdoor Research, and The North Face. They have factories located in Korea, Bangladesh, China, Vietnam, and Thailand. Additionally, they hold a majority share in Outdoor Research and initially acquired a 20% share in Scott before increasing it to 50.01% in 2015.
The appointment of Kim represents an opportunity for Scott Sports to revitalize its development efforts and position itself as a world-class manufacturer in bikes and other outdoor sport categories.
Youngone is not only committed to investing in Scott but also believes that the existing management team has demonstrated exceptional commitment and professionalism towards the company during this period of transition.
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