The Trojan Horse in Our Living Room
The massage chair has comfortably settled in the center of our living room and my parents’ bedroom. Behind this sturdy piece of furniture that relieves family fatigue lies a massive drama. It is the story of an empire that soared high with the wings of ‘rental’ while cutting through the old rules of the market with the sword of innovation.
However, beneath that dazzling throne, human greed grew like a poisonous mushroom, and betrayal lurked behind the backs of trusted colleagues.
This is the story of the massage chair empire, ‘Bodyfriend’. It is also our story about how extraordinary ideas become myths, and how dazzling success can turn into the seeds of arrogance and division that lead to self-destruction. Today, we will delve into the deep and dark abyss of the empire’s birth, its cracks, and the bloody game of thrones that followed.
Chapter 1: The Rise of the Revolutionary, Opening the New World of ‘Rental’
Before 2007, South Korea’s massage chair market was like a ‘quiet pond’ with no changes. The clunky designs of Japanese brand products, costing tens of millions of won, were the privilege of the wealthy. The market size was merely around 20 billion won. No one imagined that a massive storm would arise in this small pond.
At that moment, Bodyfriend, founded by former chairman Jo Kyung-hee and his son-in-law Kang Woong-cheol, emerged. The weapon in their hands was the revolutionary idea of ‘Rental’.
“Why should we buy products worth hundreds of millions of won all at once? Rent the best relaxation for just a few tens of thousands of won each month.”
This simple yet powerful proposal completely overturned the market. As the high wall of financial burden crumbled, a dormant demand erupted like a volcano. Just as water purifiers and bidets became essential household items through rental, the era of popular massage chairs was born.
But Bodyfriend’s innovation did not stop there.
“Massage chairs are not old medical devices; they are premium furniture that enhances the quality of life.”
Under this wonderful philosophy, they showcased sophisticated designs that fit anywhere in the home, collaborating with Italian designers. The Bodyfriend chair, placed in the glamorous penthouse living rooms of popular dramas, became a symbol of desire, no longer just a ‘gift for parents’ but a ‘home appliance for my successful lifestyle.’
With the bold goal of extending health lifespan by 10 years, they poured tremendous investments into research and development (R&D). They developed the world’s first ‘sleep massage’ technology and introduced ‘mental massage’ and ‘brain massage’ for the stressed modern individual, expanding the concept of massage chairs into mental and medical realms.
Technology, design, marketing, and business model. When these four wheels turned perfectly together, the chariot called Bodyfriend began to race at an unstoppable speed. The throne of South Korea’s healthcare appliance market naturally became theirs.
Chapter 2: The Prelude to Cracks, Shadows Over the Throne
Every empire dreams of expanding its territory. Bodyfriend, which was explosively growing, also needed massive funds to soar higher. In 2015, the founding family made a significant decision. They transferred most of their shares, including management rights, to the private equity fund (PEF) VIG Partners for about 400 billion won, stepping down to the position of the second-largest shareholder.
The influx of external funds seemed to provide powerful fuel for the empire’s growth. However, this decision was a ‘Pandora’s box’ containing the seeds of uncontrollable disputes. The founder’s ’long-term vision’ of nurturing the company like a child clashed with the private equity fund’s ‘short-term goal’ of making profits as quickly as possible, leading to a precarious coexistence under one throne.
The Frustrated Dream: The Mirage of IPO
For Bodyfriend, ‘IPO’ was a long-held dream. A successful IPO was like a ‘promised land’ that would bring honor to the founder and immense profits to investors. However, three ambitious attempts ended with the cold notification of ‘disapproval.’ Problems hidden beneath the empire’s glamorous armor surfaced.
- Opaque Governance Structure: The complex shareholding structure entangled with the founder and private equity fund raised doubts about the company’s transparency.
- The Spark of Management Disputes: This complexity was assessed as a potential risk for shareholder conflicts to erupt at any time.
- Fatal Owner Risk: Above all, allegations of embezzlement and misappropriation surrounding founder Kang Woong-cheol were a decisive blow. Accusations of harming the company were the most dreaded warning signs in the securities market.
Ultimately, the dream of going public evaporated. This failure left a deep scar on the empire’s credibility, marking the beginning of a tragic acceleration of cracks.
Chapter 3: The Game of Thrones, Bloodied Alliances
As time passed, the first owner, VIG Partners, sought a new owner to recover its investment. In 2022, another private equity fund, Stonebridge Capital, teamed up with the newly established Han & Brothers to become the new owner of Bodyfriend.
By this time, founder Kang Woong-cheol appeared to dream of a resurgence alongside the new owners as the second-largest shareholder. However, alliances formed by forces with different desires have historically ended in tragedy.
The alliance broke apart in less than a year. Just six months after the acquisition, Stonebridge accused Han & Brothers of embezzlement and misappropriation, marking the beginning of a bloody civil war.
- First Battle (Stonebridge & Kang Woong-cheol vs. Han & Brothers): Initially, Stonebridge and founder Kang Woong-cheol teamed up to attack Han & Brothers. Eventually, Han & Brothers, outmatched in strength, had to withdraw from management.
- Second Battle (Han & Brothers vs. Kang Woong-cheol): However, the defeated Han & Brothers turned their blades against their former ally, Kang Woong-cheol, accusing him of the same charges. The fight escalated into an uncontrollable mudslinging contest.
Their conflict became a grotesque exposé over “who siphoned off more company funds” rather than “who could lead the company better.” The myth of innovation and growth vanished, leaving behind only a sordid drama stained with greed and betrayal.
Chapter 4: Acceleration of Decline, The Empire’s Financial Collapse
While kings aimed their swords at each other for the throne, the empire’s walls crumbled helplessly. The cost of civil war was devastating.
In 2021, sales exceeded 600 billion won, but after disputes intensified, they plummeted to the 400 billion won range. Operating profit, once close to 90 billion won, shrank by a staggering 81% to 16.7 billion won, ultimately leading to a deficit.
The most painful aspect was that the market’s trust had vanished. While Bodyfriend wasted its strength on internal conflicts, competitor Ceragem grew fearsomely with its new weapon, ‘spinal medical appliances.’ Ultimately, Bodyfriend lost even the ‘industry’s number one’ crown that was once its own.
This decline was not solely due to fighting. Consumers began to seek professional ’therapeutic’ functions beyond simple relaxation, and competition in the rental market intensified. Amidst the fierce storms of external conditions, Bodyfriend’s captains were so busy attacking each other that they failed to notice their ship sinking.
Chapter 5: In the Ruins, Can the Empire Rise Again?
Cornered, Bodyfriend is now desperately dreaming of a comeback. They showcase their technological prowess with ‘healthcare robot’ technology that moves its legs independently, while also trying to win back lost customers by introducing lower-priced models and furniture with emphasized designs.
Thanks to these efforts, recent performance has shown slight improvements. However, it is still a long way to talk about the empire’s reconstruction.
The fundamental issue of legal risks surrounding the founder and major shareholders remains ongoing, carrying a ticking time bomb of management disputes that could erupt again at any moment. As long as the fight over the throne is not completely over, any innovation may only be a sandcastle built on the beach.
The Questions Left for Us
The ‘revolutionary’ who opened a new era with innovative ideas has now become a symbol of greed and division. The story of Bodyfriend poses heavy questions beyond the success and failure of a single company.
- What is the true meaning of growth? When intoxicated by visible growth, how can success collapse so vainly if we fail to solidify transparent and ethical management?
- Is external capital salvation or a predator? How can the capital needed for a company’s leap damage the founder’s dreams and turn the company into a target for speculation?
- What is the extent of a leader’s responsibility? What wounds can a leader’s poor judgment and moral hazard leave on countless employees and customers beyond a single company?
Today, the massage chair in our living room continues to fulfill its role quietly. But now we must remember the chilling lesson left by the rise and fall of an empire within that comfort. Can Bodyfriend rise again from the ruins it created? Its future lies in the arduous process of finding answers to these questions.