Theborn Korea CEO Paik Jong-won pledges to fund consultative group with own money

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Theborn Korea CEO Paik Jong-won pledges to fund consultative group with own money

Published: 02 Sep. 2025, 13:06 Updated: 02 Sep. 2025, 13:55

Audio report: written by reporters, read by AI

Theborn Korea CEO Paik Jong-won attends a press conference at Space Share Gangnam in Seocho District, southern Seoul, on March 28. [YONHAP]

Paik Jong-won, CEO of Theborn Korea, pledged to use his personal funds to finance the company's mutual benefit consultative group amid the company's controversies by taking out a loan of 12 billion won ($8.6 million) using his private shares as collateral.

Theborn Korea disclosed changes in stock ownership of major shareholders, according to a filing on the Financial Supervisory Service’s electronic disclosure system on Monday. The filing shows that Paik used 920,337 of his personally held shares as collateral for a loan agreement that includes a 2 billion won secured loan and a 10 billion won credit line, totaling 12 billion won.

“The 10 billion won credit line portion of the disclosed amount will be Paik’s personal contribution,” Theborn Korea said. “It will be used progressively for operating the coexistence committee and implementing agenda items, following its launch on June 30.”

Theborn Korea’s mutual benefit committee is an official consultative body consisting of franchisee representatives, company executives and external members, aimed at institutionalizing a structure of mutual benefit.

Through regular meetings and quarterly reviews, the committee collects and implements proposals from all stakeholders. Experts from civic organizations have been appointed as outside members to enhance the fairness and public interest of the decision-making process.

The committee has so far resolved to implement various win-win initiatives, including reducing delivery commission fees by 50 percent, introducing card payment options for rent, and offering professional marketing support.

Theborn Korea's headquarters in Gangnam District, southern Seoul [NEWS1]

“I will quietly support the committee in becoming a solid backer for building a new model of trust between customers and franchisees,” Paik said at the committee's launch ceremony on July 1. “We will continue our efforts for ongoing innovation and communication to set a strong example of shared growth.”

Theborn Korea has faced multiple allegations, including product quality issues, violations of the Farmland Act, mislabeling of product origin and hygiene problems.

In response, Paik announced in May that he would step away from his television appearances, saying, “As an entrepreneur, I will devote myself fully to the growth of Theborn Korea.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JANG GU-SEUL [[email protected]]