This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:04 p.m. on Nov. 19, 2025.
Taekwang Industrial is accelerating its business restructuring by acquiring the Courtyard by Marriott Seoul Namdaemun hotel. Taekwang Industrial will provide funds through an equity investment. The remaining amount is planned to be raised through senior and subordinated loans.
According to the investment banking industry on the 19th, Taekwang No. 1 REIT, established by Heungkuk REITs Management, signed a sale and purchase agreement the previous day with KT&G for the Courtyard by Marriott Seoul Namdaemun hotel. The sale price is 254.2 billion won, and the total investment size, including acquisition tax, advisory fees, capital raising costs and remodeling costs, was estimated at about 285 billion won.
Taekwang No. 1 REIT will raise a total of 100 billion won through a third-party allotment rights offering. Taekwang Industrial will invest 50 billion won in common stock, and Carlton Hotel Private real estate investment trust will invest 50 billion won in class B preferred shares. The remaining funds are planned to be raised through a senior secured loan of 160 billion won (interest rate 4.5%) and a subordinated secured loan of 25 billion won (interest rate 6.3%).
Hotel operations will be handled by Tisis, an affiliate of Taekwang Group. It will acquire the business from Sangsang Stay, which currently operates the hotel, and succeed to the operating rights. The Courtyard by Marriott Seoul Namdaemun hotel is a four-star hotel completed in 2016, located on Namdaemun-ro in Jung-gu, Seoul. It has five basement levels and 20 aboveground floors, with a total of 400 rooms. The gross floor area reaches 72,054 square meters.
Taekwang Group has emerged as a major player in the domestic merger and acquisition market since the second half of this year. Taekwang Industrial, facing accumulated losses in its core textile and petrochemical sectors due to narrowed technology gaps with China, began restructuring its business. Operating losses were 122.1 billion won in 2022, 99.4 billion won in 2023 and 27.2 billion won last year.
Accordingly, the group is pursuing an aggressive investment strategy to restructure its business. Last month it formed a consortium with T2 Private Equity (PE) and Yuanta Investment to sign a definitive agreement to acquire a 63.1% controlling stake in Aekyung Industrial for about 470 billion won. Recently it also participated in the takeover bid for K Shipbuilding Co., Ltd., valued at about 500 billion won, and affiliate Heungkuk Life Insurance also entered the bidding to buy IGIS Asset Management.
Currently Taekwang Industrial is reviewing various fundraising options to ease the burden of investment funds. As of the end of the third quarter, it held about 490 billion won in cash and cash equivalents, and acquiring a 31.56% stake in Aekyung Industrial would require about 230 billion won alone.
Meanwhile, it is difficult to push forward with the issuance of 320 billion won in exchangeable bonds (EBs). Since the 20th of last month, financial authorities have been tightening disclosure rules and watching closely.
Taekwang Industrial is also reported to have considered a plan to monetize its treasury shares through a price return swap (PRS).
Taekwang Industrial said, "The board of directors judged that additional discussion is necessary after reviewing the disposal of treasury shares, and it is re-examining with the goal of making a final decision within November."