Recently, it was reported that a consortium formed by Taekwang Industrial, T2 Private Equity, and Yuanta Investment has become the preferred bidder to acquire a 63% stake in Aekyung Industrial, the core subsidiary of Aekyung Group, with a bid of nearly 500 billion won ($360 million). The two sides plan to complete the transaction by the end of 2025.
The stake is currently held by Aekyung Group’s holding company, AK Holdings, and Aekyung Asset Management Co. However, the offer is lower than Aekyung Group’s initial expectation of around 600 billion won ($432.6 million). The divestment of Aekyung Industrial will help ease Aekyung Group’s liquidity pressures.
Financial reports show that as of the end of the second quarter this year, AK Holdings’ net debt had exceeded 2.7 trillion won ($1.95 billion), with a debt-to-asset ratio of 372.9%. Proceeds from the sale of Aekyung Industrial will be used to repay part of AK Holdings’ short-term debt. Going forward, the group will focus on its core aviation and chemical businesses.
In addition to Aekyung Industrial, Aekyung Group has also sold non-core assets, including the Jungbu Country Club and nearby idle land plots, securing about 220 billion won ($158.6 million) in funds.
Public records show that Aekyung Industrial was established in April 1985, following the spin-off of Aekyung Group’s household goods division. The company currently specializes in cosmetics and household products. Its well-known brands include the hair care line Kerasys and the beauty brand Luna. In 2024, the company recorded sales of 679.1 billion won ($489.6 million) and operating profit of 46.8 billion won ($33.7 million).
