This article was published on Mar. 13, 2025, at 3:22 p.m. on ChosunBiz MoneyMove site.
S-Y&F, a venture capital (VC) listed on the KOSDAQ, will become a major shareholder of the Korea Precious Metals Exchange, known as the largest gold trading venue in the country. It plans to invest about 52 billion won to acquire approximately 33% equity from SG Private Equity (SG PE) and LX Investment (LX Inv).
According to the investment banking (IB) industry on the 13th, S-Y&F has recently confirmed its acquisition of a minority stake in the Korea Precious Metals Exchange and is scheduled to sign a stock purchase agreement (SPA) early next week. It aims to complete the transaction by mid-April after submitting a merger notification to the Fair Trade Commission and carrying out detailed procedures, including payment.
The acquisition target is about 33% equity in the Korea Precious Metals Exchange owned by SG PE and LX Inv through a special purpose corporation (SPC), Cage Holdings, along with 33% in the subsidiary Korea Precious Metals Exchange Digital Assets, which manages the online business. The combined equity value of both companies is estimated at 155 billion won, with an investment of 52.1 billion won.
Established in 2005, the Korea Precious Metals Exchange is regarded as the number one distributor of precious metals in the country. Based on 98 franchise stores nationwide and its own refining facilities, it has been supplying gold bars, silver bars, and gold jewelry, leading the market. In 2023, the consolidated sales of the Korea Precious Metals Exchange were 1.86 trillion won, and the operating profit was 13.3 billion won.
In 2018, SG PE and LX Inv formed a consortium with the information technology (IT) company ITCEN to acquire 67.2% of the management rights of the Korea Precious Metals Exchange for 76 billion won. SG PE invested 17 billion won, LX Inv invested 6 billion won, and ITCEN contributed 23 billion won, while the remaining 30 billion won was financed through acquisition financing.
Currently, the equity of the Korea Precious Metals Exchange consists of 67.2% owned by Cage Holdings and 16.4% each held by related parties Kim An-mo and Kim Yun-mo. Since S-Y&F will only acquire the equity held by SG PE and LX Inv, it is reported that the equity of ITCEN and the existing shareholders will be retained after the acquisition.
S-Y&F reportedly negotiated as a strong buyer for about a year while SG PE and LX Inv pushed for the sale of their equity in the Korea Precious Metals Exchange last April and simultaneously explored acquisition options. Initially, it was planned to pursue a consolidated acquisition of equity from related parties, but it decided to focus on a minority stake acquisition.
S-Y&F is said to have highly regarded that the Korea Precious Metals Exchange has expanded its business beyond offline precious metals distribution into online avenues. The mobile app-based peer-to-peer gold and silver trading service "GoldBangGoldBang," launched by its separate online business subsidiary, Korea Precious Metals Exchange Digital Assets, is a prime example.
S-Y&F plans to support the overseas expansion of the Korea Precious Metals Exchange in the future. S-Y&F is a subsidiary of Su&Financial Investment, a private equity fund operator with extensive overseas networks. It aims to acquire additional equity in line with the growth of the Korea Precious Metals Exchange.
Meanwhile, SG PE and LX Inv are estimated to make profits exceeding double their investment principal from this equity sale. They are set to resell the approximately 33% equity acquired for 23 billion won for 52.1 billion won. S-Y&F will utilize the global vision fund formed last year for this equity acquisition.
S-Y&F is the successor of M-Venture Investment, a first-generation VC established in 1999. It went into a trading halt due to issues with the valuation of investment assets but is currently undergoing management normalization under the leadership of Su&Partners, which emerged as the new owner early last year. Last year, it invested 7.4 billion won in Bright Korea, a company specializing in semiconductor materials, parts, and equipment.