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Taekwang Industrial named preferred bidder for Aekyung Industrial

Published: 12 Sep. 2025, 19:38 Updated: 14 Sep. 2025, 18:28

The exterior of Aekyung Industrial headquarters [AEKYUNG INDUSTRIAL]

The long-anticipated acquisition of Aekyung Industrial — once considered a prized asset in Korea's retail and consumer goods sector — is officially underway, with Taekwang Industrial confirmed as the preferred bidder for the company’s management rights.

AK Holdings, the holding company of Aekyung Group, said Friday that it had selected a consortium led by Taekwang, along with its affiliate private equity firm T2 Private Equity and Yuanta Investment, as the preferred negotiating partner for the stake sale.

The deal involves AK Holdings' full 63.34 percent stake in Aekyung, including management control.

“Specific details such as transaction timeline and acquisition price will be disclosed once finalized,” AK Holdings said. According to investment banking sources, the sale is expected to be valued in the 400 billion won ($287.6 million) range.

Founded in 1954, Aekyung Industrial built its reputation on household staples like soap and detergent, starting with its flagship dishwashing liquid Trio in 1966 and laundry detergent Spark in 1987.

In 1998, the company launched the toothpaste brand 2080 and expanded into personal care with Kerasys shampoo and conditioner. Since the late 1990s, it has also carved out a presence in the beauty sector with brands like AGE20'S and Luna. AGE20’S, in particular, became a home shopping sensation and a signature product for the company.

The acquisition raises questions about whether Aekyung Industrial can reclaim its former standing in the K-beauty industry.

Once counted among the “big three” in Korean cosmetics alongside Amorepacific and LG H&H, Aekyung failed to capitalize on the K-beauty boom, having relied heavily on offline and home shopping channels. Its operating profit in 2024 dropped 23.5 percent on year to 47.4 billion won, dragged down by a 20 percent decline in cosmetics and a 28.5 percent slump in household goods.

The exterior of Taekwang Industrial building [JOONGANG ILBO]

Before entering the bid, Taekwang Industrial reportedly formed a dedicated task force to explore post-acquisition synergies.

“The decision stems from our broader business restructuring efforts,” the company stated on Friday, citing a prolonged downturn in the petrochemical and textile industries. With K-beauty showing strong growth potential in global markets, Taekwang appears to be positioning it as a new growth engine.

Taekwang has also laid the groundwork for deeper involvement in beauty. In 2025, it established an investment subsidiary targeting the sector and has moved forward with creating new corporate entities. Through the acquisition of Aekyung — whose brands are already widely recognized — Taekwang plans to quickly enter the business-to-consumer cosmetics market. The group will also leverage its home shopping affiliate, ShoppingnT, to expand into live beauty commerce.

The sale of Aekyung Industrial, the founding company of Aekyung Group, marks a pivotal shift for the conglomerate. After its airline unit, Jeju Air, suffered major losses during the pandemic and its retail business slumped, even its department store chain AK Plaza faced stagnation. As of the end of 2024, AK Holdings held 4 trillion won in debt with a debt ratio of 328.7 percent.

In response, the group began offloading noncore assets, including Jungbu Country Club, and has now put Aekyung Industrial — once its cash cow — on the block. The move appears aimed at selling valuable assets before a full-blown liquidity crisis hits, while realigning the group’s portfolio around its aviation and chemical businesses.

Now in its 71st year, Aekyung Group’s total assets are estimated at around 7 trillion won. Its key subsidiaries include Aekyung Industrial, Jeju Air, Aekyung Chemical, AK Plaza and Amplus Asset Development.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KYUNG-MI [[email protected]]