Kwangcheonkim Co., South Korea’s largest seaweed producer with a history spanning over 50 years, is up for grabs in a deal that could fetch up to 400 billion won ($294.7 million), amid soaring global demand for dried seaweed.
According to people familiar with the matter in Korea’s investment banking industry on Thursday, Kim Jae-yu, the owner and chief executive of Kwangcheonkim, and his relatives and related parties are seeking to sell their entire stake, including management rights, in the company and its affiliates.
Samil PwC is advising on the sale.
The divestiture comes as global demand for Korean dried seaweed – known locally as gim or kim – is so high that some have dubbed it the “black semiconductor,” for its growing contribution to Korea’s exports, typically dominated by semiconductor chips.
Given the company’s current earnings and rosy business outlook, Kwangcheonkim is expected to draw bids between 300 billion and 400 billion won, according to market analysts.
Korean private equity firms and food companies, from domestic and international, are among the potential suitors, the people said.
When Affirma Capital attempted to sell Sung Gyung Food Co., another leading Korean seasoned laver maker, last year, domestic food company Nongshim Co. and energy company Samchully Co. were among the interested bidders.
MORE THAN 50 YEARS IN THE MARKET
Founded in 1970, Kwangcheonkim is Korea’s largest dried seaweed company by sales.
It produces dried seaweed, seasoned laver, kim flakes and frozen kimbap, or seaweed-wrapped rice rolls.
This is Korea’s first kim producer to build a fully integrated value chain from seaweed farming to processing and distribution. Its long history ensures a stable supply of raw seaweed, a key competitive edge.
The company operates 12 factories across the world, including South Korea, the US, Lithuania, China and Indonesia, and exports its products to more than 60 countries.
Its earnings have jumped in recent years thanks to growing overseas demand for Korean seasoned laver and kimbap.
In 2024, Kwangcheonkim posted 10.5 billion won in operating profit on a separate basis, up 52.2% from a year ago. Sales rose 6% to 199 billion won over the same period.
On a consolidated basis, including affiliate earnings, its revenue reached 330 billion won last year, with earnings before interest, taxes, depreciation and amortization (EDITDA) at 24.1 billion won.
As global prices for dried seaweed climb amid strong global demand, Kwangcheonkim forecasts its consolidated revenue will exceed 500 billion won by 2027.
Last year, its crosstown rivals, Dongwon F&B Co. and Sung Gyung Food, raised kim prices by more than 10%, highlighting pricing power in the expanding market. Kwangcheonkim also hiked the price.
By Jong-Kwan Park
pjk@hankyung.com
Sookyung Seo edited this article.
