Sources reported on April 1 that South Korea's Aekyung Group has initiated the sale process for its consumer goods and cosmetics division, Aekyung Industrial.
The Aekyung Group has designated Samjong KPMG as the primary advisor for the sale process. This involves a 63% majority share held by both AK Holdings and Aekyung Asset Management, according to sources.
Established in 1954 under the name Aekyung Yugi Gongup, Aekyung Industrial stands as a key component within the broader operations of the Aekyung Group. This corporation manages several well-known brands including Kerasys and 2080 for home products along with Luna in the cosmetic sector. Financial records from this year indicate that the firm generated revenues totaling approximately 679.1 billion won ($507 million), accompanied by an operational income of about 46.8 billion won. According to insiders, market assessments suggest that the transaction could be valued close to 600 billion won.
The Aekyung Group also intends to offload its Jungbu Country Club located in Gwangju, Gyeonggi Province, according to additional sources.
The objective of the group is to utilize funds generated from asset sales to lower its outstanding debts. By the close of 2024, the consolidated debt of AK Holdings exceeded 2 trillion won, marking an increase in their debt-to-equity ratio from 233.9% in 2020 to 328.7% in 2024.
"If the transaction is finalized, Aekyung Group will concentrate on its airline, Jeju Air, and its chemical division, Aekyung Chemical, as key operations," noted an industry insider.