Theborn Korea CEO Paik Jong-won promotes the company's partnership with food delivery app Baedal Minjok in this ad from November 2024, in which 15 restaurant and takeout brands under Theborn Korea are offering discounts when ordered via Baedal Minjok's online platform. Courtesy of Theborn Korea

Celebrity restaurateur Paik Jong-won's company, Theborn Korea, is bracing for impact, as investors threaten to create an uproar at the company's shareholders' meeting scheduled for this week, saying recent scandals involving Paik have impaired the company's value.

Online comments criticized Theborn Korea ahead of the meeting on Friday in Seoul, saying the company was allegedly undermining public health and misleading the public with false product information, adding that the firm had not been dealt due punishment. Critics also noted how much Paik earned last year despite the scandals and how much he will earn through a planned dividend payout following the meeting.

"At this point, it feels like there's no hope of Paik winning back the public sentiment," a comment on Theborn Korea's Naver shareholder forum said. "He built his image by doing good — supporting farmers and helping struggling small businesses — but in a moment that image of goodness slipped away, and there's no turning back."

Another online comment mocked Paik, as he will be paid 1.76 billion won ($1.2 million) in dividends despite the company's stock price drop. Critics urged him to return all his dividends and salary for running the company unethically. Some said there were over 10 companies in the United States that had been shut down for violating public health regulations, criticizing Theborn Korea for slipping through government measures.

"The initial public offering (IPO) of Theborn Korea was a sham jointly made by the Korean media and Paik," another comment said. "A listed company is responsible for shareholders' investments and keeping what it promised to the public. The media has been engrossed with portraying Paik graciously and smart when he actually distorted the truth and sugarcoated himself."

Critics also noted the launch of Seoul Gangnam Police Station's investigation of Paik on Friday for misleading consumers with ads for the company's products launched in January 2024. Police are looking into the sweet potato bread sold by Paik's Coffee, a low-price coffee brand run by Theborn Korea. Authorities suspect the company used sweet potatoes imported from China and omitted the fact in ads to make consumers believe the pastry was made with Korean produce.

Paik was embroiled in a similar controversy in July 2024, involving a chicken steak meal kit sold on Theborn Mall, his firm's online shopping platform. Paik said on YouTube the product "was to help Korean chicken farmers" but the meal kit's ingredient information indicated the chicken was from Brazil.

Paik Jong-won hits a drum celebrating Theborn Korea's initial public offering at the Korea Exchange's office in Seoul, Nov. 6, 2024. Newsis

He also allegedly violated Korea's Farmland Act by using imported ingredients at his food factory located in an agricultural promotion zone, where the use of domestically produced agricultural products is required. Earlier this year, the company's Paik Ham and tangerine beer drew backlash for the low content of their signature ingredients.

Paik on Wednesday issued a public apology over Paik Ham and said the company will stop producing it. The apology came only six days later after he issued a previous statement over multiple scandals.

"We should have repaid the support we received with better products, but we failed to meet expectations in many ways," he wrote in his initial apology. "It was my oversight for not closely examining all the issues raised so far."

Theborn Korea reached 51,400 won during its stock market debut on Nov. 6, but now remains below 30,000 won, even lower than its IPO price of 34,000 won.

Theborn Korea said it would pay 300 won per share as a dividend following the shareholders' meeting. Paik, who owns 60.78 percent of the company shares, will be paid 200 won per share, or 1.76 billion won, the company said. He earned a salary of 822 million won last year.

Paik's dividend and salary are in line with the company's performance last year, when sales saw a 13 percent year-on-year jump to over 464 billion won and operating profit rose by 40.8 percent year-on-year to over 36 billion won.