This article was posted on the ChosunBiz MoneyMove (MM) site at 2:33 p.m. on Jan. 20, 2026.
Taekwang Group is presenting itself as a major player in the mergers and acquisitions (M&A) market, armed with more than 2 trillion won in cash-like assets. It appears to be breaking the existing B2B framework centered on petrochemicals and expanding its territory into B2C areas such as pharmaceuticals, beauty and hotels. Observers interpret this as a strategic move to publicly enter M&A to raise the group's profile and secure high-quality targets.
On the 20th, investment banking industry sources said Taekwang Industrial, the group's main affiliate, held a board meeting on the 7th and resolved to form a consortium with UAMCO to acquire Dongsung Bio Pharm. The total investment is 160 billion won, with Taekwang Industrial and UAMCO each bearing 80 billion won.
Next month it plans to pay the remaining balance for the acquisition of Aekyung Industrial Co. Taekwang Industrial signed a contract last October to buy 63.13% of Aekyung Industrial Co. from AK Holdings for 470 billion won, forming a consortium with T2 Private Equity (PE) and Yuanta Investment.
It also teamed up with U.S. private equity firm TPG to enter the bidding for K Shipbuilding Co., Ltd., and is reviewing the acquisition of a battery materials maker. Last year it diversified by buying the Courtyard by Marriott Seoul Namdaemun hotel in Jung-gu, Seoul, for about 254.2 billion won.
The wave of M&A follows weakness in its core businesses. As petrochemical conditions deteriorated sharply due to oversupply from Chinese firms, Taekwang Industrial posted losses for three consecutive years from 2022 through 2024, and recorded an operating loss of 58.1 billion won through the third quarter last year.
Notably, Taekwang Group has been taking a public approach in which it actively exposes its participation in M&A rather than hiding it. That differs from other large corporations that tend to be cautious and tight-lipped until negotiations have progressed to a certain degree.
Some argue Taekwang Group's behavior is a strategy to present itself as a major buyer in the M&A market to secure quality deals and boost public awareness of the group. Taekwang Group has focused on B2B businesses such as petrochemicals and chemicals, but by acquiring Aekyung Industrial Co. and hotels it has stepped into the B2C market.
An IB industry source said, "Because they have reviewed and actually acquired most of the available listings, those looking to sell their companies tend to think 'if you go to Taekwang they will pay a good price,'" adding, "If sellers want to sell secretly to a buyer with purchasing power, they will come to Taekwang."
Another IB industry source said, "In the past this was a method used mainly by mid-sized regional construction firms with low recognition in Seoul to raise the value of their apartment brands," adding, "There is promotional effect just from participating in many M&As and appearing in the media."
Taekwang Group, which rose to 36th in the 2018 business rankings (now 50th), is expected to continue aggressive M&A for some time. As of the end of the third quarter last year, Taekwang Industrial's cash-like assets stood at 2.07 trillion won. In July Taekwang Industrial said, "We plan to invest trillions of won in cosmetics, energy and real estate development," and added, "Without active investment-driven restructuring of our business amid the extremely poor conditions in our core petrochemical and textile sectors, we cannot guarantee future survival."