South Korea’s Aekyung Group has begun the process of selling its consumer goods and cosmetics subsidiary, Aekyung Industrial, industry sources said on April 1.
Aekyung Group has appointed Samjong KPMG as the lead advisor for the sale, which includes a 63% controlling stake owned by AK Holdings and Aekyung Asset Management, the sources said.
Founded in 1954 as Aekyung Yugi Gongup, Aekyung Industrial is a core part of Aekyung Group’s business. It owns brands such as Kerasys and 2080 in household goods and Luna in cosmetics. The company reported revenue of 679.1 billion won ($507 million) and an operating profit of 46.8 billion won in 2024. Market estimates value the deal at around 600 billion won, sources said.
Aekyung Group is also planning to sell its Jungbu Country Club in Gwangju, Gyeonggi Province, the sources added.
The group aims to use proceeds from the divestments to reduce its debt burden. As of the end of 2024, the net debt of its holding company, AK Holdings, surpassed 2 trillion won, with its debt ratio increasing to 328.7% in 2024 from 233.9% in 2020.
“If the sale is completed, Aekyung Group will focus on its airline, Jeju Air, and its chemical unit, Aekyung Chemical, as its core businesses,” an industry source said.
