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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, Oct. 20 — South Korea’s Taekwang Group has acquired Aekyung Industrial Co., a leading household goods and cosmetics company, signaling its entry into the K-beauty market.
According to a regulatory filing on Sunday, Taekwang Industrial, in consortium with T2 Private Equity and Yuanta Investment, signed an agreement to purchase a 63% controlling stake in Aekyung Industrial for approximately ₩470 billion (US$340 million). Taekwang Industrial will contribute ₩235 billion to secure 31.56% ownership, with the acquisition expected to close by February 19, 2026.
Industry sources say Taekwang Group aims to cultivate cosmetics and personal care products as a new core business pillar through this acquisition.
Founded in 1954 as Aekyung Chemical Industry, Aekyung Industrial is the flagship company of the Aekyung Group. It owns household brands such as Kerasys and 2080, and cosmetics lines including Luna and AGE 20’s. In 2023, the company reported ₩679 billion in revenue and ₩46.8 billion in operating profit.
Aekyung Group, burdened by heavy debt, is selling its profitable units like Aekyung Industrial to improve its balance sheet. The group’s holding company, AK Holdings, had total consolidated debt exceeding ₩2 trillion at the end of last year, with a debt ratio rising from 233.9% in 2020 to 328.7% in 2023.
Aekyung Industrial rose to prominence in the 2010s with its AGE 20’s Essence Cover Pact, a foundation-infused essence product that became a best-seller on home shopping channels under the nickname “Kyun Mi-ri Pact.” However, as the product’s popularity faded and no successor hit products emerged, the company’s cosmetics revenue began declining from 2020 onward.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
