This article was published on May 21, 2025, at 10:50 a.m. on the ChosunBiz MoneyMove site.
In the acquisition bidding for Aekyung Group's golf course, major strategic investors (SI) with strong financial backing, including Kumho Petrochemical's subsidiary Kumho Resort, LX Group, Isu Group, and Samchuly, have made significant moves. The sale price is expected to exceed 200 billion won, and the lead organizer Samjong KPMG plans to notify the preferred bidder by the 23rd.
As the bidding for Jungbu CC achieved unexpected success, it is anticipated that other large corporations owning golf courses will also consider selling if it sells for a good price. Contrary to the numerous failures and indefinite delays of corporate sales, often in the trillions or billions, the prestigious golf courses located in the metropolitan area are evaluated as sale targets with limited supply and steady demand, allowing for quick liquidity.
According to investment banking (IB) industry sources on the 21st, it has been confirmed that numerous SIs, including Kumho Petrochemical's subsidiary Kumho Resort, LX Group, Isu Group, and Samchuly, have entered the bidding for Jungbu CC. They participated in the preliminary bidding held last month and submitted letters of intent (LOI), with many reported to have completed participation in the main bidding held on the 12th of this month. However, LX Group's public relations team stated that they had 'no interest from the beginning and did not participate in the preliminary bidding.'
An IB industry source noted, 'Although they did not participate in the preliminary bidding, I understand that several corporations seriously considered it.'
It has been reported that some private equity fund (PEF) operators are among the buyers participating in this main bidding. Some reportedly entered the bidding through their portfolio companies. However, industry expectations suggest that it will be difficult for financial investors (FI) to complete this deal, and it is likely that one of the SIs will be chosen as the preferred bidder.
The reason why the Jungbu CC bidding was successful is that the supply of golf courses in the well-located metropolitan area is limited. Generally, dozens of acres of land are needed to build a new golf course, and securing such large land is not easy at all. Additionally, environmental issues, low profitability compared to development, and institutional barriers have effectively blocked new supply of golf courses in the metropolitan area.
An industry source stated, 'In the case of Jungbu CC, it is regarded as a prestigious course with excellent location and layout,' adding that, 'Complaints have arisen among members recently about the tight reservation system, but this is an issue that can be resolved if a financially strong corporation takes over and manages it properly.'
Due to the successful sale of Jungbu CC, it has been reported that other corporations have begun reviewing the sale of their own golf courses. An IB industry source remarked, 'If corporations rush to sell their golf courses, it raises the question of whether the high market price of over 10 billion won per hole can be maintained.'