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Amid Embezzlement Risk, Purun Mutual Savings Bank Acquires 10% Stake in Buguk Feed

[비즈한국] It has been confirmed that Purun Mutual Savings Bank007330 and Purun F&D acquired a stake in Buguk Feed002710 at the end of last year. Purun Mutual Savings Bank, Purun F&D, and Buguk Feed are affiliated entities. Analysts suggest that the stake was purchased to strengthen control over Buguk Feed. Purun Mutual Savings Bank stated that the acquisition was for investment purposes.

Purun Group is led by Chairperson Koo Hye-won. Chairperson Koo was married to the late Joo Jin-kyu, former chairman of Purun Mutual Savings Bank and brother of Sajo Group Chairman Joo Jin-woo. Chairperson Koo has three children: her eldest son, Joo Shin-hong, CEO of Purun Partners Asset Management; her eldest daughter, Joo Grace (Korean name Joo Eun-jin), director at Purun F&D; and her second daughter, Joo Eun-hye, CEO of Purun Trading. CEO Joo Shin-hong is currently the largest shareholder of major affiliates, including Purun Mutual Savings Bank and Purun Partners Asset Management. The Joo family also holds the largest shares in Purun F&D and Purun Trading. As a result, Purun Group is classified as an affiliate of Sajo Group under the Fair Trade Act.

According to Bizhankook's investigation, Purun Group affiliates purchased the Buguk Feed stake from Ezy Holdings035810 last year. Out of the 46.39% (83,500 shares) of Buguk Feed held by Ezy Holdings, Purun F&D purchased 13.19% (23,750 shares), and Purun Mutual Savings Bank purchased 10% (18,000 shares). This reduced Ezy Holdings' stake in Buguk Feed to 23.19%. Ezy Holdings has no affiliation with either Purun Group or Sajo Group.

Purun Mutual Savings Bank spent 7.2 billion won on the Buguk Feed stake acquisition. This amount represents approximately 36% of the bank's net profit of 19.9 billion won last year. However, given that Purun Mutual Savings Bank's total assets exceed 1 trillion won, it is difficult to view this as an excessive expenditure.

This stock transaction is drawing attention because it is an inter-affiliate deal. Buguk Feed was already classified as a Sajo Group affiliate before the transaction, as Sajo Group affiliates and the owner family hold a majority stake of 53.33% in the company. Buguk Feed is also a major shareholder of Purun Mutual Savings Bank, holding a 7.21% stake. However, given that Ezy Holdings' stake was significant, analysts believe Purun Group made the purchase to reinforce its control.

Purun Group's official stance is that the purchase was made for investment purposes. A Purun Mutual Savings Bank official stated, "We understand that the purchase was made based on the judgment that Buguk Feed is relatively undervalued and that dividend income can be expected in the future."

According to audit reports, Buguk Feed recorded a net loss of 2.1 billion won in the most recent fiscal year (November 2024–October 2025). It is questionable whether dividends can be paid given the deficit. However, in the previous fiscal year (November 2023–October 2024), the company recorded a net profit of 5.7 billion won and paid a dividend of 3,340 won per share.

Meanwhile, Purun Mutual Savings Bank is in the spotlight due to a recent embezzlement case. In February, the bank disclosed that a former executive, identified as Mr. Lee, had embezzled approximately 9.9 billion won. On March 25, it released a corrected disclosure stating that the embezzled amount had risen to 10.4 billion won. The KOSDAQ Market Division of the Korea Exchange stated, "We plan to decide by April 13 whether the company qualifies for a substantive review and will provide information regarding the continuation or lifting of the trading suspension."

Depending on the results of the review, Purun Mutual Savings Bank could face delisting in the worst-case scenario. The major shareholders of Purun Mutual Savings Bank include CEO Joo Shin-hong (17.22%), Purun F&D (16.20%), Chairperson Koo Hye-won (14.74%), Buguk Feed (7.21%), Director Joo Grace (3.28%), and CEO Joo Eun-hye (3.23%). If Purun Mutual Savings Bank is delisted, it could deal a significant blow to the owner family. Purun Mutual Savings Bank stated in a disclosure, "We have filed a complaint against former executive Lee for charges including misappropriation of customer deposits, and we plan to proceed with settlement for additional identified victimized customers as soon as possible."