KleanNara's third-generation owner returns as co-CEO to reverse three years of losses

KleanNara Chairwoman Choi Hyun-su, the hygiene and paper products company's third-generation owner, is returning to the front lines of management as co-CEO — just eight months after stepping back from the chief executive role when she was elevated to chairwoman. The move is widely seen as a direct bid to end three consecutive years of operating losses and personally take responsibility for turning around the company's earnings.

KleanNara said Tuesday its board appointed Choi as co-CEO. The company will now operate under a dual-representative structure, with Choi holding the title of CEO chairwoman alongside CEO President Lee Dong-yeol. Choi will oversee the business and finance and procurement divisions, while Lee takes charge of the Cheongju factory and human resources.

Choi is the eldest daughter of Honorary Chairman Choi Byung-min and a third-generation executive of the founding family. She joined KleanNara in 2006 and rose through the ranks as director of management planning, executive vice president and head of the integrated business division. She was first appointed CEO in 2019 and promoted to CEO president in 2020. Last December, her father stepped down to the honorary chairman role and she was elevated to chairwoman.

At the time of her appointment as chairwoman, KleanNara had positioned her as the steward of long-term growth strategy while the board handled independent decision-making. In practice, Choi stepped down as CEO when she became chairwoman, leaving Lee as sole representative. With Tuesday's appointment, she regains CEO authority, shifting the company to a structure in which she is directly responsible not only for setting strategy but also for executing on it and improving financial results.

The persistent erosion of profitability lies at the heart of the change. KleanNara posted sales of 591.6 billion won ($418 million) and operating profit of 52.1 billion won in 2020, but performance has trended downward since. The company recorded an operating loss of 18.9 billion won in 2023 and a further loss of 900 million won in 2024. Cumulative sales for the first three quarters of last year came to 385.6 billion won, down 4.0 percent from 401.9 billion won in the same period a year earlier, while the operating loss for the period reached 13.3 billion won.

Particularly damaging has been the deteriorating profitability of the PS division, which handles the paper business. Analysts say the combination of weakening domestic demand for white-lined chipboard, expanding supply both at home and abroad, and rising electricity costs has made structural reform of the business increasingly urgent.

Internally, the company cited "earnings improvement" and "faster decision-making" as the core reasons for the appointment. "Improving our financial performance is an urgent priority," a KleanNara official said. "We determined that we needed a structure capable of making decisions more quickly to strengthen execution — one that sets the overall strategic direction and then translates it into actual business results."

Going forward, Choi will oversee the business and finance and procurement divisions. Lee will be responsible for the Cheongju factory and human resources. The arrangement places Choi in charge of the core management functions — business strategy, financial management and cost control — while Lee handles production and organizational operations.

"Under the co-CEO structure, we are aiming to sharpen competitiveness by clearly dividing roles and responsibilities," a company official said. "Chairwoman Choi will set the overall strategic direction and lead decision-making and execution, while President Lee will focus on strengthening operational performance at the production level and in organizational management."

Choi's return as CEO also coincides with KleanNara's push to expand its business scope. The company is moving into the detergent market beyond its core household goods and paper businesses, while also accelerating overseas expansion into Southeast Asia and other markets and stepping up its environmental management efforts. The company said it sees the integrated business-and-finance decision-making structure as essential to delivering concrete results from these new and international ventures.