This article was published on Nov. 27, 2025, at 11:16 on ChosunBiz MoneyMove (MM).
KOSDAQ-listed SEOJIN SYSTEM has partnered with a securities firm to resolve its major shareholder's funding problems. After the securities firm acquires part of the major shareholder's equity, it plans to sequentially buy out the financial investors' (FI) equity to resolve the put option issue. The FIs hold put options that would allow them to sell their holdings to the major shareholder for about 300 billion won, and the options are set to mature at the end of this year, with little time remaining.
On the 27th, sources in the investment banking (IB) industry said SEOJIN SYSTEM and its largest shareholder, CEO Jeon Dong-gyu, are preparing a second-largest shareholder replacement plan in partnership with a major domestic securities firm.
First, the securities firm will acquire part of CEO Jeon Dong-gyu's equity to alleviate his funding difficulties, and in the long term will pursue buying the 16% stake held by Crescendo and SKS Private Equity. The securities firm has been in steady communication with CEO Jeon about this form of financial support since the first half of this year.
SEOJIN SYSTEM is a maker of energy storage system (ESS) and electric vehicle battery components. Its market capitalization is about 1.4 trillion won.
Earlier, in April last year, CEO Jeon Dong-gyu entered into put-option contracts with Crescendo and SKS PE, the existing FIs. The two firms had invested a cumulative 350 billion won in SEOJIN SYSTEM over multiple rounds. Under the put-option contracts, CEO Jeon must buy approximately 9 million shares of SEOJIN SYSTEM owned by Crescendo and SKS PE at 32,000 won per share. The funds required by CEO Jeon to exercise the put options approach about 300 billion won.
Crescendo's and SKS PE's put options became exercisable on June 26 of this year. However, CEO Jeon faced difficulties raising funds, and the put-option exercise deadline has been extended to the end of this year.
In this situation, a large securities firm has stepped in as a rescuer. The securities firm is said to first acquire 750,000 shares held by CEO Jeon for 24 billion won and then sequentially purchase the holdings of Crescendo and SKS PE. It is currently negotiating detailed terms with Crescendo and SKS PE.
The securities firm plans to remain SEOJIN SYSTEM's second-largest shareholder and support CEO Jeon's management rights. It is expected to take the form of the securities firm becoming a direct shareholder rather than establishing a special purpose company (SPC) to solicit a group of lenders.