[비즈한국] It has been confirmed that special purpose vehicle manufacturer Kwanglim has reacquired the Ssangbangwool shares previously held by World Prime Development. World Prime Development purchased the Ssangbangwool stake from Kwanglim in January of last year but subsequently filed a lawsuit against Kwanglim for the return of the stock purchase price. The two companies reached an agreement for Kwanglim to buy back the Ssangbangwool stake from World Prime Development. As a result, Ssangbangwool has once again become a subsidiary of Kwanglim.
Kwanglim is a company that manufactures special-purpose vehicles such as cranes, fire trucks, and electrical maintenance vehicles. After acquiring a 24.78% stake and management rights in Ssangbangwool in February 2014, it controlled the company for over 10 years until January 2025. Currently, Kwanglim's largest shareholder is Kang Soo-jin, who holds a 16.63% stake. Kang is the wife of Won Young-sik, chairman of Ocean in the W, and previously served as the CEO of Areumdeuri Corporation. Areumdeuri Corporation is a company 100% owned by Chairman Won and his son, Won Sung-jun; it also holds a 12.88% stake in Kwanglim.
In January of last year, World Prime Development acquired the entire 12.04% stake in Ssangbangwool held by Kwanglim, becoming the largest shareholder. The largest shareholder of World Prime Development, a real estate development company, is former Nature Republic CEO Jung Woon-ho. Former CEO Jung took office as the CEO of Ssangbangwool in February of last year but stepped down in April of this year (Related article [Exclusive] Jung Woon-ho resigns as Ssangbangwool CEO... loses status as largest shareholder).
Bizhankook's investigation revealed that World Prime Development filed a lawsuit against Kwanglim in November last year to recover the Ssangbangwool stock purchase price. A stock purchase price return lawsuit is filed to recover paid funds when a contract is canceled or voided due to default or fraudulent activities after a stock purchase agreement. Neither side has disclosed the specific reasons for the lawsuit.
The two companies agreed that Kwanglim would buy back the 12.04% stake in Ssangbangwool from World Prime Development, and the transaction took place in April of this year. It is interpreted that former CEO Jung Woon-ho’s resignation from Ssangbangwool was also influenced by this stake sale. If World Prime Development received the payment for the stock sale, they would not have suffered a financial loss. However, considering the opportunity costs and the expectations they had for Ssangbangwool, it is likely a disappointing outcome for them.
Nature Republic, where former CEO Jung Woon-ho is the major shareholder, has recently seen poor performance. Revenue fell 19.71% from 46 billion won in the first half of last year to 36.9 billion won in the first half of this year. However, they did succeed in turning a profit, moving from an operating loss of 4.9 billion won in the first half of last year to an operating profit of 500 million won in the first half of this year. World Prime Development, the entity that acquired Ssangbangwool, had revenue of only about 300 million won last year, showing little market presence. This means their attempt to diversify business through Ssangbangwool has effectively fallen through.
Meanwhile, Kwanglim purchased an additional 17.73% stake in Ssangbangwool in November last year and another 14.58% in May of this year. Consequently, as of the end of June this year, Kwanglim’s stake in Ssangbangwool reached 44.35%. Kwanglim acquired the shares during Ssangbangwool’s liquidation trading process and from special related parties. Liquidation trading is a system that allows trading for a certain period for stocks confirmed for delisting to give shareholders a final chance to cash out.
Ssangbangwool’s performance has also been poor recently. Revenue dropped 14.81% from 43 billion won in the first half of last year to 36.6 billion won in the first half of this year. Additionally, following an operating loss of 2.5 billion won last year, it recorded another operating loss of 2.7 billion won in the first half of this year. It even received a delisting decision from the Korea Exchange last November. Although a lawsuit was filed to nullify the delisting, it is difficult to see Ssangbangwool's prospects as bright at this moment.
However, Kwanglim’s performance trend is not bad, with revenue increasing by 2.67% from 34.1 billion won in the first half of last year to 35 billion won in the first half of this year. They are also actively pursuing new businesses, such as signing a Memorandum of Understanding (MOU) on September 7th for cooperation in the new and renewable energy business with Vivienne. Attention is focused on whether Ssangbangwool, now re-incorporated as a Kwanglim subsidiary, can overcome its recent controversies and regain its former glory alongside Kwanglim.