This article was published on April 9, 2025, at 3:55 p.m. on ChosunBiz MoneyMove website.
The exit of PLINE MOTORS, backed by the venture capital firm Cheongdam Investment, has been delayed until next year. This is due to the postponement of the listing goal for PLINE MOTORS, which has focused on importing and selling Chinese electric buses, influenced by delays in the Korea Exchange screening and poor performance last year.
The listing of PLINE MOTORS has garnered attention as Cheongdam Investment, emerging from the Green Snake Group, could aim for another significant exit in its second independent year. Previously, Cheongdam Investment invested in semiconductor inspection equipment company QRT, yielding over 1.2 times its investment principal.
According to the financial investment industry on the 9th, PLINE MOTORS decided to voluntarily withdraw its preliminary listing review on the 7th. This comes about four months after submitting its preliminary listing review application to the Korea Exchange's KOSDAQ market headquarters on December 27 last year, following consultations with the listing underwriter DAISHIN SECURITIES.
PLINE MOTORS initially aimed for a listing in the first half of this year. The company minimized potential obstacles during the listing process. It proceeded with the conversion of convertible bonds (CB) and redeemable convertible preferred stocks (RCPS) into common stocks, reducing the liability ratio, which was as high as 2,776% at the end of 2023, to around 200%.
Analysts suggest that the stringent examination by the Korea Exchange prompted the withdrawal of the review. In particular, safety issues surrounding the Chinese electric buses imported and sold by PLINE MOTORS have come under scrutiny. The electric bus 'Hypercube' from PLINE MOTORS had its undercarriage pierced by raised manhole covers during heavy rainfall in 2023.
PLINE MOTORS is considered the second-largest player in the domestic electric bus market, following Hyundai Motor. The company rapidly captured market share with a low-cost strategy, selling electric buses manufactured by the Chinese bus maker Haiger at prices more than 100 million won lower than domestic alternatives, but has been plagued by ongoing safety concerns.
Cheongdam Investment's acquisition of a major stake in PLINE MOTORS with an investment of 20 billion won last April also contributed to the strengthened screening process by the Korea Exchange. Since Cheongdam Investment was formerly known as Green Snake Investment, the Korea Exchange examined its connections with former Green Snake Group Chairman Won Young-sik.
In fact, Cheongdam Investment's predecessor was Green Snake Investment. In 2023, Green Snake Company, which held 100% equity, transferred all its shares to Asia Holding Company and changed its name to its current title. It is now wholly owned by Asia Financial Group.
Meanwhile, performance has also declined. Last year's electric bus sales increased by 5.67% to 467 units compared to the same period the previous year, resulting in a slight revenue increase, but net profit fell short of expectations. This was due to the production of some models domestically starting last year, along with a depreciation of the won.
Due to worsening performance, the estimated market capitalization after listing is reported to be lower than the previous target. Financial investors (FIs) such as Cheongdam Investment reportedly expected a market capitalization of at least 250 billion won after listing. This is about 1.8 times the corporate value of 140 billion won at the time of investment. However, the stock market environment and business conditions are certainly not better than last year, but the FIs' expectations have risen.
PLINE MOTORS plans to expand its business scope to include special vehicles this year and aim for a re-challenge next year. The fact that the investment period of newly emerging private equity fund manager Deep Dive Partners, which became an investor around the same time as Cheongdam Investment, is relatively short at just over one year has also influenced this.
Meanwhile, the largest shareholder of PLINE MOTORS was reported to be CEO Kim Man-yong, holding approximately 24.11% equity. Financial investors Cheongdam Investment and Deep Dive Partners each own equity in the high 10% range. In 2023, consolidated revenue was reported at 171.9 billion won, with operating income of 11.6 billion won.