This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:59 p.m. on Jan. 16, 2026.
NHN Bugs, well known for the homegrown music service "Bugs Music," will be sold to NDT Engineering. As competition intensified in the music streaming market and its market share fell, the sale appears to have been decided amid business difficulties. NHN said of the background to the NHN Bugs sale that it "considered management efficiency through selection and concentration on the content business."
However, there is some skepticism about the identity of unlisted NDT Engineering and the background of the acquisition.
According to the investment banking (IB) industry and the Financial Supervisory Service's electronic disclosure system on the 16th, NHN Bugs will dispose of all 6,710,120 shares (54.26%) held by its existing largest shareholder NHN to NDT Engineering and the Green Harbor & Bugs No. 1–3 associations. NDT Engineering will act as a strategic investor (SI), with the investment associations providing supporting fire as financial investors (FI). The sale price is 5,170 won per share, and the transaction aggregates 34.7 billion won. The balance payment date is Mar. 9.
NDT Engineering, which is acquiring NHN Bugs, is a comprehensive manufacturer of automatic non-destructive inspection equipment, and has recently ventured into aircraft parts machining and assembly. It has strengths in manufacturing technologies for aircraft components and space launch vehicle fuel tanks.
As it acquires a music service company unrelated to its core business, the market is looking on with questions, and some sources say NDT Engineering will pursue other businesses using cash held by NHN Bugs rather than the music service operation. The word is that NHN Bugs' core business will be spun off and resold.
The businesses pointed to as spin-off targets are B2B-centered music distribution and the playlist album service "Essential." The music distribution business invests in music production, then secures "neighboring rights" for a set period to generate distribution revenue. As a type of music licensing distribution business, it is the only one among NHN Bugs' operations that is in the black.
Essential provides curated playlists through a YouTube channel with 1.5 million subscribers. Although the revenue generated by the YouTube channel itself is not large, it is expected to be spun off in light of its growth potential and synergy with the music distribution business.
The expected sale prices for the two businesses are 25 billion won for music distribution and 3 billion won for Essential, totaling 28 billion won. NHN is said to be the leading candidate to buy back the two businesses. If the spin-off takes place, the actual purchase price paid by NDT Engineering for NHN Bugs would effectively drop to around 5 billion won.
After NHN Bugs spins off its core businesses, only the shell role as a listed company would remain, prompting concern in the market. Allegations have also been raised that a stock price manipulation ring is involved in this deal. Sources say the buyer group includes figures such as Yang Nam-hee of Well Biotec, which is connected to Kim Keon-hee, as well as a person surnamed Yoo, a person surnamed Cho, and a person surnamed Kim, who are known as stock price manipulators.
According to the capital markets industry, the buyer plans to transform NHN Bugs into a drone-themed stock. NDT Engineering is said to be discussing cooperation in drone manufacturing and services with China's major drone company EHang Holdings.
NDT Engineering did not offer a particular position on this. A representative of NDT Engineering said, "At this stage, it is difficult to discuss whether there are talks about new businesses."
Regarding the allegation that Yang Nam-hee was involved in this deal, the company conveyed that the claim is untrue. NDT Engineering said, "We have no connection whatsoever to the person named Yang Nam-hee or to any incident, investigation, or act related to that person, and we do not know the person at all," adding, "The alleged stock price manipulation by a specific individual and this acquisition are entirely unrelated."