KCGI secured approximately 19% of the equity of Sandoll, the number one font company in Korea. This transaction occurred as the family sought a partner for management stabilization following the founder's passing.
KCGI announced on the 1st that it had signed a contract with the largest shareholder, Sandoll Communication, to acquire 1,492,113 common shares (19.2%) of Sandoll, a KOSDAQ listed company, at 10,000 won per share for a total of 14.9 billion won. This acquisition is being made with KCGI's own capital.
Founded in 1984, Sandoll has created exclusive fonts for major corporations including Microsoft, Samsung Electronics, LG Electronics, Kakao, and Baemin, including the default font 'Malgun Gothic.' The 'Hangil Typeface,' developed in collaboration with government agencies, is used for signs on highways, subways, and railways.
Recently, it has been operating a cloud-based subscription font platform called 'Sandoll Cloud.' Through a monthly or annual subscription model, it has secured stable cash flow and has maintained a profit-making trend for the past five years. Last year's annual revenue was 15.75 billion won, with a net profit of 5.01 billion won.
This transaction was driven by the need to raise inheritance tax funds following the passing of the late Chairman Seok Geum-ho in May last year, while the family has been seeking a financial investor (FI) to safeguard management rights and business continuity. KCGI is said to have made this investment decision based on its experience in corporate succession and governance.
KCGI plans to enhance corporate value by collaborating with the existing management rather than directly intervening in Sandoll's management. It is also reviewing ways to integrate new business opportunities in intellectual property (IP), artificial intelligence (AI), and blockchain into the existing font-based platform model. A KCGI official noted that it will focus on increasing Sandoll's long-term corporate value through capital reallocation centered on return on equity (ROE) and improving the compliance system.