SCOTT officially comes under South Korean ownership after years of internal turmoil

The South Korean group Youngone has gained definitive control of SCOTT Sports after more than four years of disputes with its former CEO, Beat Zaugg. The resolution ends one of the most significant business conflicts in the recent cycling industry, although the Swiss brand's accounts show that its economic recovery is still not complete.

Youngone acquires 96.71% of SCOTT and ends the conflict with Beat Zaugg

The history of SCOTT Sports in recent years has been marked by two parallel crises: on one hand, the decline of the bicycle market following the pandemic boom, and on the other, a confrontation between its main shareholders that directly affected the company's management. Now, a resolution from the International Chamber of Commerce (ICC) puts an end to the second of these problems, while the first continues to be reflected in its financial results.

According to the South Korean economic media ChosunBiz, Youngone has definitively won the arbitration it had with Beat Zaugg, former CEO and second-largest shareholder of SCOTT. The decision, issued on October 19, 2026, and officially communicated on the 27th, confirms the South Korean group's right to acquire Zaugg's shares and establishes that it will not have to make additional payments for the operation.

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The resolution also has economic consequences. Youngone will recover approximately 8.8 billion won (about 5 million euros) that had been held while the procedure was being resolved. 

With this operation, Youngone now controls 96.71% of SCOTT Sports, definitively closing a chapter of confrontations that began several years ago.

From police intervention at SCOTT's headquarters to South Korean control

The conflict originated from the shareholders' agreement signed in 2015, when Youngone increased its stake in SCOTT to become its majority owner. Although Beat Zaugg, the brand's founder, continued to lead the company, both parties undertook commitments for joint management that ultimately led to significant discrepancies.

In September 2022, Youngone initiated arbitration proceedings, believing that Zaugg had seriously breached that agreement. The confrontation escalated into an unusual situation within the cycling industry.

In March 2024, the board of directors decided to replace Beat Zaugg as CEO of SCOTT, a decision that the Swiss executive rejected. Tensions reached their most visible point in early April of that year, when the police had to go to SCOTT's headquarters in Switzerland amid the confrontation over control of the company.

The company attempted to regain stability, and in August of that year announced a new management structure, while the legal proceedings continued.

In February 2025, a first decisive resolution arrived. As was known at the time, the arbitration tribunal recognized Youngone's right to acquire Zaugg's stake. However, issues related to the valuation of the shares and the final amount of the operation were still pending.

The purchase was completed in December 2025, when Youngone paid 75% of the established valuation and left the remainder deposited as a guarantee. The resolution of October 2026 now confirms that the group will not have to pay that pending amount.

SCOTT continues to lose money but its recovery is gaining momentum

With the shareholder conflict resolved, the economic situation remains one of SCOTT's main challenges.

The data published by Youngone shows that SCOTT closed 2025 with sales of 1.1223 trillion South Korean won and net losses of 129.7 billion won, equivalent to approximately 75 million euros.

The company has particularly suffered the consequences of excess inventory accumulated after the pandemic, when the market quickly shifted from exceptional demand to a situation of oversupply that forced manufacturers and distributors to apply significant discounts.

The results for the first half of 2026 point in the same direction. According to the financial statements published by Youngone, SCOTT recorded operating losses of approximately 18.6 million euros during the first six months of the year, compared to approximately 36.3 million euros for the same period in 2025.

This represents a reduction of nearly 49% in losses, accompanied by a recovery in sales. The data therefore shows a favorable evolution compared to previous years, although the business continues to operate with negative results.

A new direction to regain SCOTT's stability

The financial situation aligns with the recovery message that the brand has conveyed in recent months.

In March 2026, SCOTT presented a new leadership phase with the incorporation of Hsuan Boon Tan as co-CEO, sharing responsibilities with Pascal Ducrot. That announcement came in a context where the company considered it had overcome the most complicated phase of the crisis that had affected the cycling sector.

However, the latest figures make it clear that overcoming market difficulties and regaining business profitability are two distinct processes.

Youngone, which also engages in manufacturing activities for major international sports and outdoor equipment brands, now has a position of virtually absolute control over SCOTT. Additionally, its 2025 accounts included a commitment to provide financial support to the subsidiary to ensure the continuity of its operations.

The question remains how long SCOTT will need to return to profitability and how its business will evolve in a cycling market that is still readjusting after the excesses of previous years.

After several years of internal disputes, changes in management, and economic difficulties, SCOTT has definitively resolved who controls its future. The next challenge will be to demonstrate that this shareholder stability can also translate into a sustained recovery of its accounts.