Youngone secures W8.8b refund in Scott ownership dispute

Youngone Corporation has ended a more than four-year arbitration dispute over its acquisition of Swiss sports brand Scott, securing a refund of about 8.8 billion won ($6.6 million) in escrow funds.

The South Korean apparel maker, which raised its stake in Scott to 96.71 percent last year, will recover the funds after an arbitral tribunal decided that it was not required to pay the remaining 25 percent of the acquisition price to former shareholder Beat Zaugg.

According to a regulatory filing Tuesday, Youngone revised its final acquisition cost following the Oct. 19 ruling in its dispute with Zaugg, who was previously Scott's second-largest shareholder.

The dispute dates back to a shareholders' agreement signed in 2015, when Youngone gained management control of Scott. Youngone filed for arbitration with the International Chamber of Commerce in September 2022, alleging that Zaugg had materially breached the agreement.

In February 2025, the tribunal found that Zaugg had breached the agreement and upheld Youngone's right to exercise a call option to acquire his shares.

Youngone subsequently purchased an additional 5.84 million Scott shares from Zaugg in December 2025, raising its holdings to 12.09 million shares, or 96.71 percent. The transaction was valued at 19.08 million Swiss francs, approximately 35.3 billion won at the time.

With the ownership dispute resolved, Youngone plans to focus on stabilizing Scott's operations and improving profitability.