Aekyung Group in Crisis, Considering Sale of Key Affiliate 'Aekyung Industrial'
Aekyung Group is considering the sale of its core affiliate, Aekyung Industrial. This move aims to streamline the group's foundational household goods and cosmetics business to reduce the debt of AK Holdings, Aekyung Group's holding company.
According to the investment banking (IB) industry on the 1st, Aekyung Group recently appointed Samjong KPMG as the lead manager and has begun the process of selling Aekyung Industrial. The sale target is a 63.38% stake in Aekyung Industrial's management rights held by AK Holdings, Aekyung Asset Management, and related parties.
Considering that Aekyung Industrial's market capitalization was 382.9 billion KRW based on the closing price that day, the simple equity value is 242.6 billion KRW. Adding management premiums and asset values, the sale price is expected to reach several hundred billion KRW. Last year, Aekyung Industrial achieved approximately 679.1 billion KRW in sales. By segment, cosmetics account for about 60%, and household goods about 40%. Aekyung Industrial is well known for its household goods brand Kerasis and cosmetics brand Luna.
Aekyung Group plans to reduce debt by selling Aekyung Industrial. As of the end of last year, the total debt of AK Holdings, Aekyung Group's holding company, reached 4 trillion KRW. AK Holdings' debt ratio on a consolidated basis jumped from 233.9% in 2020 to 328.7% in 2024.
Additionally, Aekyung Group has decided to divest non-core businesses. It is currently promoting the sale of assets such as Jungbu Country Club, a golf course located in Gonjiam-eup, Gwangju-si, Gyeonggi-do. Jungbu CC is an 18-hole membership golf course operated by Aekyung Jungbu Country Club, a family company established in 2008 by the Aekyung Group owner family, focusing on real estate leasing as its main business.
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An Aekyung Group official said, "We are reviewing various measures to improve the group's financial structure and reorganize the business portfolio," adding, "Nothing has been finalized yet."
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