Minority Shareholders Paying for a $4.1M Gift Tax..? KOSPI ▼4,956.58│ KOSDAQ ▲1,064.41│ KRW/USD▼1,441.07 |
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As of 3:30 p.m. on the previous trading day |
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✴ STIC Investments, Inc.╎Founder Do Yong-hwan officially announced his retirement after transferring an 11.44% stake to Miri Capital. As the largest shareholder, Miri Capital adopted a “stable management” approach to support the succession of the current management, keeping the possibility of personnel changes open while taking a cautious pace.
✴ Innovo Therapeutics╎Ahead of its IPO, the company entered a survival strategy by raising a cumulative $13.7 million (₩20 billion) over 10 months, even at a lower valuation. Given its heavy annual SG&A cost structure, VC investment performance is expected to depend on whether the IPO or a technology export deal is completed this year.
✴ SBVA╎The firm invested a total of $86.9 million (₩126.7 billion) in 17 companies, mainly in AI and robotics, rapidly expanding its deep-tech portfolio. With an additional $102.9 million (₩150 billion) sovereign AI fund, its AUM exceeded $1.99 billion (₩2.9 trillion), reinforcing its position as an AI-focused VC.
✴ Korea Women Venture Association╎The association held the 2026 Innovation Venture Industry New Year’s event and presented “Advancing to a Top Four Venture Power” as its official vision. It brought together the government, VCs, and startup organizations to emphasize execution-focused cooperation and the strengthening of a virtuous investment and exit cycle.
✴ Busan Tech Startup Investment Agency╎The agency held the “Bugi Tech Investment Roadshow” for the first time to connect promising Busan startups with Seoul-based investors. Organized by the agency, regional startups conducted IR sessions, leading to direct investment discussions with metropolitan VCs.
✴ Korea Growth Investment Corporation╎As legal and practical burdens increased for innovative companies preparing overseas expansion, the corporation held a U.S. market entry support seminar with domestic and international law firms. The aim was to systematically support global market entry by providing company-specific information and networks.
✴ TKG Huchems╎The company attempted to acquire Japan’s Yasojima through a consortium with IMM Private Equity, but the deal was blocked due to delays in Japanese government approval. The seller opted for deal certainty, and the acquisition was completed by a local Japanese PEF for approximately $343 million (₩500 billion).
✴ Stonebridge Ventures╎The firm entered the exit phase by selling part of its stake in LivsMed through a block deal to a long-only fund. Rather than prioritizing speed, it chose a strategy focused on overhang management and long-term shareholder restructuring, aiming to secure both stock price stability and mid- to long-term growth.
✴ Gudo Asset Management╎Its flagship fund, Gudo TAO Fund I, grew to a cumulative return of 4,000% and a NAV of $569.3 million (₩830 billion) through a strategy that captures signals ahead of earnings disclosures. The firm chose a soft closing instead of external expansion, prioritizing returns for existing clients.
✴ Soft Squared Inc.╎Soft Squared, which operates the developer matching platform Gridge, launched a $3.43 million (₩5 billion) Series A bridge fundraising. Following its selection as a Baby Unicorn, the company moved to secure capital for hiring a CTO, advancing technology, and expanding into Japan.
✴ STIC Ventures╎With over 80% of the $176.3 million (₩257 billion) STIC Innovation Fund deployed, the firm decided to concentrate the remaining capital on pre-IPO investments and follow-on funding for existing portfolio companies. The strategy aims to improve exit visibility ahead of the fund’s maturity.
✴ Capstone Partners╎The firm made a sole pre-Series A investment of $343,000 (₩500 million) in TripleOS, a one-stop AI platform developer. Key investment points included its B2B2C structure leveraging a large enterprise client base and proven real-world usage references.
✴ Korea Venture Capital Association╎Amid a continued talent shortage in the VC industry, the association began recruiting for the 12th KAVA program in cooperation with Korea Venture Investment Corporation. The initiative aims to cultivate immediately deployable professionals through practice- and law-focused training combined with internship placements.
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The “Sweet-and-Spicy” War That Began in the United States |
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⭑ Samyang Goes Sweeter, Nongshim Goes Stir-Fried in a Head-on Clash
Samyang Foods and Nongshim have entered a head-on competition in the U.S. market over “sweet-and-spicy,” known as swicy, from the beginning of the year. Samyang Foods has placed Buldak Swicy in major U.S. channels since late last year, while Nongshim plans to introduce Shin Ramyun Kimchi Stir-Fried Noodles later this month. The two companies that established K-food through spicy flavors are now competing over how widely acceptable they can make spicy taste.
Samyang Foods has been selling Buldak Swicy, in both bag and cup versions, across online and offline channels in the United States since late December. Distribution has expanded from mainstream channels such as Target and Amazon to the Texas-based supermarket chain HEB and Korean grocery chain H Mart. Buldak Swicy is an overseas-only product not sold in Korea, with its spiciness lowered to Level 1 as a key feature. By reinforcing sweetness in the sauce and adding a separate sprinkle, it significantly lowers the entry barrier compared with existing Buldak products. This is a targeted choice aimed at local consumers who are not familiar with spicy food.
⭑ Nongshim’s Counterattack, Familiarity and Variation Through Kimchi Stir-Fried Noodles
Nongshim is not standing still. It plans to distribute Shin Ramyun Kimchi Stir-Fried Noodles in the U.S. market later this month. The product has already been launched in Korea, Australia, and Taiwan, and is expanding to the U.S. in just two months. It adds mild sweetness to the spiciness of kimchi to suit overseas tastes and is positioned as slightly spicier than Buldak Swicy. Nongshim plans to grow Shin Ramyun Kimchi Stir-Fried Noodles as a global core lineup alongside Shin Ramyun Toomba and Shin Ramyun Gold.
There is a clear structural background to this competition. Since the COVID-19 pandemic, the global popularity of K-food has expanded, and spicy flavors are no longer a niche preference but a form of culture. As local consumers reinterpret spiciness by mixing in sweetness to make it more approachable, the swicy trend has become established. Samyang Foods quickly translated this flow into products, while Nongshim is mounting a counterattack using its solid existing distribution network.
⭑ Overseas Sales Reversal, The Next Decade Decided by the U.S.
The numbers make the tension clearer. In the first three quarters of 2025, Samyang Foods’ overseas sales reached $942.8 million (₩1.3747 trillion), while Nongshim recorded $705.9 million (₩1.0289 trillion). Nongshim, which had long maintained the top spot in overseas sales, lost the lead starting in 2024 and has announced an aggressive target of $3.1 billion (₩4.5 trillion) in overseas sales by 2030 to regain ground. As the world’s largest food market and a testing ground with a diverse consumer base, performance in the U.S. can directly lead to global leadership.
Whether Buldak, softened to broaden appeal, expands the market first, or whether Nongshim succeeds in a comeback by adding a stir-fried twist to the familiar Shin Ramyun brand, remains to be seen. The choices of U.S. consumers may determine the next ten years of K-ramen. In short, K-ramen, which surprised the world with spiciness, appears to have entered a full second round in the U.S. over how sweetly spicy it can become.
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Minority Shareholders Paying for a $4.1M Gift Tax..? |
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⭑ Time bomb, a 25% stock drop could trigger minority shareholder panic
The second-generation owner of Daechang Group, Vice Chairman Cho Kyung-ho, continues to maintain stock-backed loans to pay a gift tax of about $4.1 million (₩6 billion), which is emerging as a significant latent risk to the market. Cho has taken out substantial loans using shares of Daechang and its affiliate Seowon as collateral. The problem is that if the stock price falls, a margin call could be triggered immediately.
Based on a collateral maintenance ratio of 140% to 150%, a stock price decline of about 25% from its peak would prompt financial institutions to begin forced liquidation. One investment expert warned that “if forced selling of several million shares occurs in a small- to mid-cap stock with limited trading volume like Daechang, the share price could plunge rapidly,” adding that “the resulting shock would ultimately be borne by minority shareholders.”
In practice, asset managers classify companies with a high proportion of major shareholders’ stock-backed loans as high-risk. As share prices fall, controlling shareholders are more likely to make aggressive decisions to defend collateral value. This structure means that an owner family’s tax burden can directly translate into investment losses for ordinary shareholders.
⭑ 6.88 million treasury shares used as a ‘control defense wall’
Controversy has also arisen over Daechang’s decision to sell about 6.88 million treasury shares to affiliate Seowon instead of canceling them. Treasury share cancellation is widely known as a representative shareholder return policy that reduces the number of shares outstanding and increases per-share value. However, Daechang has been criticized for using the shares not for shareholder returns but as a means of strengthening control.
After acquiring all of Daechang’s treasury shares on the 13th, Seowon increased its stake in Daechang from 32.7% to 40.26%. Seowon is a core holding company at the top of the group’s governance structure, with the owner family holding a 37.59% stake. As the treasury shares were transferred to an affiliate, their voting rights were revived, significantly expanding the owner family’s friendly stake.
Experts describe this as “a highly sophisticated design to strengthen group control using only corporate funds.” The criticism is that economic value that should have accrued to shareholders was instead used to build a defensive wall for the owner family’s management control. At a time when the government is pushing measures to curb “treasury share magic” by promoting mandatory cancellations, Daechang’s move runs directly counter to policy direction.
⭑ ESG institutions warn of exclusion, potential activist fund target
There are also concerns that continued closed governance practices could invite strong resistance from institutional investors. ESG-focused institutions are likely to exclude companies that show clear signs of owner self-interest and control entrenchment from their investment universe, or actively vote against them at shareholder meetings.
Capital market experts say that “it is questionable whether it is appropriate for a listed company to amplify stock-collateral risks due to an owner’s personal tax issues.” Using corporate assets such as treasury shares to entrench governance undermines market fairness and ultimately erodes trust in the broader equity market.
Some also suggest that Daechang could become a target for activist funds. Shareholder activism centered on “resolving governance risks” has been spreading rapidly in the domestic market. An industry source said, “Daechang’s current actions appear far removed from the shareholder-friendly policies emphasized by the government,” adding that “with the focus placed solely on inheritance tax funding and strengthening group control, market concerns are growing.” The source added that “if this trajectory continues, the company will find it difficult to remain free from regulatory scrutiny and external challenges.”
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📱On-device╎Targeting on-device AI bottlenecks with PIM memory
Samsung Electronics is strengthening its PIM (Processing-In-Memory) technology to improve on-device AI performance. By processing part of the computation inside memory, the company aims to reduce the “memory bottleneck” that occurs in conventional CPU and HBM architectures. The core benefits are higher speed and improved power efficiency. By pushing for JEDEC standardization, Samsung is also leaving room for general-purpose DRAM expansion beyond mobile devices into broader AI infrastructure. |
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🌍Global expansion╎A completed K-beauty alliance
CJ Olive Young entered into an official partnership with Sephora to expand K-beauty globally. Olive Young will curate K-beauty products directly and present them in dedicated “K-beauty zones” across Sephora’s online and offline channels. The rollout will start in North America and six Asian countries, with the strategy aimed at lowering distribution barriers for small and indie brands entering overseas markets. Rather than simple shelf placement, Olive Young plans to lead product selection, merchandising, and marketing, positioning itself as a global K-beauty hub. |
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🤔Government under review╎Will the deposit concentration structure break?
As the government considers abolishing the “one exchange, one bank” rule for crypto exchanges, K Bank is facing growing pressure. Up to $5.14 billion (₩7.5 trillion) in deposits held by Upbit could be withdrawn, an amount that accounts for about 24% of K Bank’s total deposits. If the rule changes, these funds may be dispersed to commercial banks. With an IPO ahead, how quickly K Bank can reduce its dependence on Upbit and expand non-crypto revenue sources is expected to be a key issue. |
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🧾Internal control╎Back on trial over undisclosed information
NH Investment & Securities has once again come under scrutiny over internal control issues. The Securities and Futures Commission filed criminal complaints against former and current employees on allegations of using undisclosed information. Despite operating an internal control task force, the recurrence of similar cases has raised questions about the effectiveness of its management system. As this coincides with CEO Yoon Byung-woon’s term renewal period, tighter information barriers and compliance checks are expected across the securities industry. |
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💱Yen surge╎Possibility of Japanese intervention rises
The yen has surged amid a weaker dollar trend, increasing volatility in the dollar-yen exchange rate. The Japanese government stated it would respond to speculative movements, and the market has begun to discuss the possibility of joint intervention by Japan and the United States. As yen weakness has previously translated into higher inflation and household burdens, whether Japanese authorities step in is expected to be a key variable shaping short-term currency movements. |
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🧭At a regulatory crossroads╎Meritz Securities and Samsung Securities diverge
Meritz Securities has completed its on-site inspection and is nearing the final stage of approval for short-term note issuance. Samsung Securities, however, remains stalled more than six months after applying, with past sanctions weighing on qualitative assessments, raising doubts over whether it can clear the regulatory bar. |
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The strategic meaning of E-Land World’s divestment and ABC-Mart’s acquisition |
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Looking first at the deal structure
E-Land World decided to sell its multi-brand shoe retail business Folder to ABC-Mart.
The transaction is structured as an asset deal, transferring only the assets and contracts required for the business rather than the entire corporate entity. The transaction value was not disclosed due to confidentiality clauses.
Launched in 2012, Folder has established a steady presence in Korea’s multi-brand shoe retail market. It operates about 35 offline stores and generates annual revenue of around $686 million (₩1 trillion). However, only 33 stores appear on the official website, likely reflecting timing differences in aggregation or the inclusion of renovated or temporarily closed stores. For this reason, using “as announced” figures is considered safer when citing numbers.
The asset deal structure is also significant. Practical issues such as whether store lease contracts are fully transferred, the scope of employee retention, and whether intangible assets like trademarks and member databases are included can affect the closing timeline. The process of transferring supply contracts with global shoe brands to a new owner may also act as a variable.
Why E-Land sold and ABC-Mart bought
From E-Land World’s perspective, the strategy is relatively clear. The company stated that funds secured through the sale will be reinvested into strengthening its own brands and discovering and nurturing new brands with proven growth potential. This reflects a clearer portfolio focus on building proprietary brands rather than operating multi-brand retail channels.
Given that Folder’s revenue has hovered around $686 million (₩1 trillion) for several years without significant growth, the move can be seen as a decision to divest a non-core asset and concentrate on its core business. It clarifies where the company intends to allocate its resources as a fashion retail group.
For ABC-Mart, the acquisition represents a more aggressive move. ABC-Mart’s 2024 revenue is estimated at about $4.52 billion (₩6.589 trillion), and adding Folder’s revenue could expand its top line to roughly $5.14 billion (₩7.5 trillion). While this is a simple aggregation, it explains why the market views the deal as significant.
The timing is also notable, as new offline multi-brand shoe retailers such as Musinsa Kicks are entering the market. For ABC-Mart, the acquisition can be seen as a preemptive move to rapidly expand store count and channel influence before competition fully intensifies.
Some market estimates suggest ABC-Mart’s domestic market share in the multi-brand shoe segment could rise to 70–80% after the acquisition. However, these figures are based on industry assumptions that place total market size at around $686 million (₩1 trillion) and are not derived from official statistics.
Overall, the deal could accelerate consolidation in Korea’s shoe retail market around ABC-Mart. By absorbing Folder’s offline stores and online channels, ABC-Mart is expected to strengthen its multi-channel presence, intensifying competition with Musinsa Kicks and other multi-brand retailers. However, given the asset deal structure, variables such as antitrust approval, trademark and member data transfer, lease contracts, and employee succession remain, meaning the final integration effect and closing timing will depend on how these issues are resolved.
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Sovereign Wealth Funds (SWF) |
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✴ What is a sovereign fund?
A sovereign wealth fund refers to a fund in which a state acts as a direct investor. Governments use accumulated national capital to make long-term investments in assets such as equities, companies, real estate, and infrastructure. Oil-producing countries invest oil revenues, while export-driven economies like Korea and China deploy part of their foreign currency reserves. Countries with strong fiscal capacity, such as Singapore, follow a similar approach.
The purpose is not solely to generate returns. As natural resources like oil are finite, these funds aim to build an economic foundation for future generations. They also function as buffers during major shocks such as foreign exchange or financial crises. As a result, sovereign funds typically invest slowly but on a large scale over 10- to 20-year horizons.
The scale is substantial. Norway’s sovereign wealth fund is estimated at about $1.23 trillion (₩1,800 trillion), while Middle Eastern countries such as Saudi Arabia and the UAE manage funds ranging from hundreds of trillions to over ₩1,000 trillion. Korea Investment Corporation manages roughly $185.2 billion (₩270 trillion). Compared with typical funds sized in the tens or hundreds of billions of won, the scale is fundamentally different.
The “sovereign AI fund” mentioned earlier should be viewed differently. SBVA’s ₩150 billion AI fund includes capital from the government or public institutions, but it does not qualify as a traditional sovereign wealth fund. The key point is that it involves sovereign money, meaning government-backed capital. For the government, this reflects a strategic decision to foster AI as a national future industry. For the fund manager, it provides a structure that allows longer-term investment without short-term return pressure.
In short, capital backed by the state tends to move more slowly but with clearer direction and greater resilience during crises. This explains why sovereign money is increasingly flowing into sectors such as AI, semiconductors, and energy. |
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