Korean cosmetics firm in hot water over video praising Japan in trade row

Kolmar Korea

09/08/2019 06:04

SEOUL, Aug 9 (Reuters) - A South Korean cosmestic firm,
backed by Japan's Nihon Kolmar, issued a public apology on
Friday and its website remained down after its chairman showed
employees a video praising Japan's prime minister amid a bitter
trade row between the two Asian nations.
    Shares in Kolmar Korea  161890.KS , whose clients include
Unilever  ULVR.L , fell 6.2% on Friday after a storm of online
protest over the video, which the firm said later had been
intended as training for employees on how not to react too
emotionally to issues.
    The two countries are locked in bitter trade and diplomatic
rows over a South Korean court ruling late last year that
ordered Japanese firms to compensate forced labourers during
Japan's occupation.
    Japan warned on Thursday it could broaden export
restrictions to South Korea beyond three chipmaking materials
put under export control last month.  urn:newsml:reuters.com:*:nL4N25407Q
    During staff meetings this week, Kolmar Korea chairman Yoon
Dong-han played a YouTube video that criticised South Korean
President Moon Jae-in and praised Japan's Prime Minister Shinzo
Abe, according to South Korean newspaper JoongAng Ilbo and other
local media. 
    The video by a right-wing political blogger included vulgar
language and comments such as "Abe is definitely a great leader
and President Moon Jae-in should be thankful for not getting
punched by Abe in the face," local media reported. 
    Kolmar Korea, which is 12.4% directly owned by Japanese
cosmetics contract firm Nihon Kolmar, was the most searched word
on South Korea's dominant search engine Naver on Friday, and the
reports drew angry comments from readers online.
    A company spokeswoman could not be immediately reached for
comment. Kolmar Korea's website was down due to heavy traffic.
    The company later issued a public apology.
    "The purpose of showing this video was to underscore the
importance of not reacting emotionally or being deceived, as in
the biased content shown," it said in a statement. 
    Kolmar Korea makes cosmetics for brands like Carver Korea,
acquired by Unilever in 2017, and Innisfree, Amorepacific Corp's
<090430. KS> budget brand, according to a company filing.    
($1 = 1,209.8000 won)

 (Reporting by Sangmi Cha; editing by Richard Pullin)
 ((Sangmi.Cha@thomsonreuters.com; +82 2 3704 5646; Reuters
Messaging: sangmi.cha.thomsonreuters.com@reuters.net))