AK Holdings, the parent company of South Korea’s Aekyung Group, is selling its controlling stake in Aekyung Industrial as debt pressures mount following years of cash injections into struggling affiliates. Samjong KPMG has been appointed to oversee the sale of the 63.38% stake in the household goods and cosmetics maker, valued at approximately 242.6 billion won ($260.48 million) based on recent market capitalization.
The conglomerate, which ranks 62nd among South Korea’s largest business groups with assets of 7.12 trillion won, has seen its financial position deteriorate as AK Holdings’ debt ratio surged from 233.9% in 2020 to 328.7% in 2024. The holding company’s total debt has reached about 4 trillion won.
Aekyung Industrial, known for its Kerasys haircare and Luna cosmetics brands, generated 679.1 billion won in revenue last year. The company has been a cornerstone of the group since its founding 71 years ago.
Adding to the group’s challenges, Aekyung faces an ongoing consumer boycott following a Jeju Air crash at Muan International Airport in late December that killed 179 people. The disaster compounded negative sentiment lingering from a separate humidifier disinfectant scandal linked to the group.
Most of AK Holdings’ stakes in Aekyung Industrial and Jeju Air – 63.16% and 53.59% respectively – are currently pledged as collateral, raising concerns about potential margin calls if share prices continue falling.
While an Aekyung spokesperson characterized the potential sale as part of “ongoing financial restructuring,” industry analysts view it as a desperate measure to preserve the group’s more valuable assets including Jeju Air and AK Plaza department store chain.
