Yoon Seok-gum, chairman of Woongjin Group (photo), who was named as a white-collar myth and worked at a salesperson in the 30th place in the business, declared that he would restart the water purifier business in five years after the sale of Coway. Yoon stated that he would push for the acquisition of Coway separately from the water purifier business.

Woongjin Group, on January 3, announced that it will re-enter domestic water purifier business.

From this day on, Woongjin will hire public workers such as branch managers and bureau chiefs to enter the water purifier business. From the end of January, it plans to advertise TV for agency recruitment. Until now, we have not decided on specific business contents such as water purifier brand and product, but we plan to show products such as water purifier, mattress, air purifier and bidet in the first half after finishing the necessary human resources for business, the company said.

Meanwhile, Yoon established Coway Korea in 1989 and turned it into one of Korea`s leading home appliance companies. In September 2012, Coway was sold to MBK Partners in 2013 as the group entered into the corporate rehabilitation process. At the time, the Woongjin Group entered into a clause to prohibit the five-year ban on the sale of water purifiers in Korea and other countries where Coway entered. However, as this provision was lifted on January 2 of this year, it was possible to resume the water purifier business in Korea.

In the case of the water purifier business of Woongjin Group, it is an analysis that the existing infrastructure possessed by Yoon Suk-Keum`s business know-how can be an advantage. We already have a call center for rental business, and leasing logistics and IT system construction can be operated by utilizing the logistics subsidiary BeSen in Paju, Gyeonggi and Woongjin`s IT business. In 2014, some of the employees of Coway`s Environmental Appliances Division moved to Woongjin, and Woongjin has been operating a water purifier rental business since July 2015, with Woongjin Eversky, a wholly-owned subsidiary, in Turkey, which is not subject to restrictions.

The Woongjin Group has been showing a strong commitment to return to the group`s backbone company, Coway, to say that it was "a pain that seems to break the heart" at the time of sale. Woongjin selected Samsung Securities and Shin & Kim as advisors to acquire Coway. In the industry, we expect Woongjin and Woongjin Thinkbig will not be able to raise 500 billion won if they mobilize external financing such as issuing corporate bonds in their own cash. As a result, there is a question that Woongjin Group will be able to acquire Coway with a purchase price of more than W2tr.

Financial experts are speculating that Woongjin Group will seek to acquire Coway through a partnership with a large financial investor (FI) and financing the financial sector. Currently, Woongjin Group is reportedly in talks with several FI candidates to take part in the acquisition of Coway.

The domestic water purifier industry is keenly aware of Woongjin Group`s re-entry into the water purifier business. Currently, the water purifier market is dominated by Coway with a market share of more than 40%, and SK Magic, LG Electronics, Cuckoo Electronics, Body Friend, and Teacher Wells are rapidly competing in the market.

Woongjin Group representative stated, "As a result of the new business review, Woongjin`s recognition is still at the top of the purifier market." Woongjin, which has built and developed a lending market, is best able to lease water purifiers and we will find the most effective way."

By Kim Eun silverkim@


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