'SBI Investment-Backed' Youngkwang YKMC Receives Preliminary Listing Approval; Aims for KOSDAQ Debut This Year

SBI Investment, a venture capital (VC) firm, has announced that Youngkwang YKMC, a specialist in core semiconductor and display components and one of its portfolio companies, has received preliminary approval for listing on the KOSDAQ from the Korea Exchange.

According to the venture capital industry on September 16, Youngkwang YKMC is now commencing the full-scale initial public offering (IPO) process, beginning with the submission of its securities registration statement, followed by demand forecasts and the general public subscription. The company is targeting a KOSDAQ debut within this year, with Daishin Securities serving as the lead manager. This preliminary listing approval was granted as a result of Youngkwang YKMC leveraging its technological barriers to entry to develop its business, thereby improving its financial structure and regaining profitability.

SBI Investment has supported Youngkwang YKMC throughout the entire process, from its early investment stages to overall corporate restructuring. Recognizing Youngkwang YKMC’s technological competitiveness and potential for customer base expansion, it participated in the company’s Series A investment round in 2020. Despite temporary setbacks in performance due to stagnation in related industries, SBI Investment led the Series B funding as an anchor investor, supporting follow-up financing and the company’s return to normal business operations.

Located in South Chungcheong Province, Youngkwang YKMC manufactures key components for semiconductor and display equipment, utilizing anodizing, a metal surface treatment technology, as its core. Its main competitive edge is its one-stop production system, in which the entire process—raw material purchasing, processing, surface treatment, assembly, and packaging—is completed in-house at a single site.

Thanks to additional investment and support from SBI Investment, Youngkwang YKMC achieved significant performance improvements. Last year, the company posted sales of 51.6 billion won, marking a 39.3% increase from the previous year. It also reported an operating profit of 4.5 billion won and a net profit of 2.7 billion won, successfully returning to the black.

The company is also reaching out to overseas markets. With increasing sales in global markets such as the United States and Southeast Asia, Youngkwang YKMC recorded overseas sales of 27.4 billion won last year, accounting for 53.1% of its total revenue.

A representative from SBI Investment commented, "Youngkwang YKMC is a model case of a strong small- and medium-sized enterprise with technological prowess and export capabilities," adding, "We will continue to provide initial investments and scaling-up support so that innovative technology companies can receive recognition for their value from the capital market and successfully establish themselves."

Meanwhile, SBI Investment has invested in more than 1,000 companies, with a focus on artificial intelligence (AI) and deep tech, bio and healthcare, and semiconductors and manufacturing, and has produced over 220 successful IPOs. The company is currently managing approximately 1.5 trillion won in assets through a total of 26 funds.

This content was produced with the assistance of AI translation services.