This article was posted on the ChosunBiz MoneyMove (MM) site at 4:28 p.m. on Feb. 10, 2026.
KOSDAQ-listed INITECH's largest shareholder has changed once again. The S.J. First Private Equity Partnership at the top of INITECH's ownership structure handed over all its shares after failing to repay the money it had borrowed to raise acquisition funds. INITECH's effective owner has changed for the fourth time in the past year.
On the 10th, according to investment banks and the Financial Supervisory Service electronic disclosure system, the largest shareholder of S.J. First Holdings, the largest shareholder of INITECH, changed from S.J. First Private Equity Partnership to Choicorp. The change was due to Choicorp, a creditor, exercising its security interest after the borrower failed to meet the repayment deadline scheduled for the end of last year.
Since acquiring INITECH in May last year, S.J. First Holdings had repeatedly faced borrowing fund risk. When S.J. First Holdings acquired INITECH in May last year together with S.J. JJ First Holdings, it financed most of the 64.2 billion won acquisition price—44.2 billion won—through borrowing. The collateral for the borrowing fund was set as a pledge on 7,924,201 shares of INITECH.
They planned to sell part of their equity to repay the borrowing fund if INITECH's stock price rose after the acquisition. Because the borrowing period was only three months, from May to August, selling existing shares within the period was practically the only way to repay the borrowing fund.
However, INITECH's stock price declined, disrupting their plans. The INITECH acquisition price was 8,010 won per share, lower than the market price at the time of 9,730 won. INITECH's share price briefly topped 10,000 won, but continued weakness followed. In December last year it fell to the lower limit twice, and INITECH's current share price remains in the 4,000 won range, about half the acquisition price.
Because they could not realize gains through selling existing shares, the borrowing period was extended once to December last year, but they still could not find a way to repay the borrowing fund. In September last year they signed a contract to sell part of their equity at about 8,450 won per share, but the deal collapsed due to the falling stock price. They also explored several other existing-share sales, but none were completed.
A source in the capital markets industry said a number of acquisition candidates emerged but, as insiders with differing interests disagreed, the deals ultimately fell through.
Eventually, with the security interest exercised, INITECH's governance was shaken again. Since KT's sale in March last year, INITECH has already encountered a fourth new owner.
At the time, KT decided to sell INITECH, a noncore subsidiary and a subunit, saying it would streamline noncore affiliates and focus on its AI business. The preferred bidders in exclusive negotiations were the private equity firm Roy Investment Partners and a Simon J & Company consortium. However, as the consortium had difficulty raising acquisition funds, Enchem joined and the structure was completed. They succeeded in acquiring INITECH through a limited partnership, AI Solution Holdings.
AI Solution Holdings dissolved immediately after acquiring INITECH, and Enchem became the largest shareholder. But Enchem exited by selling all its equity to the current largest shareholder, S.J. First Holdings, in about two months. Although the exercise of the security interest did not change the largest shareholder on paper, the entity at the top of the ownership structure changed, effectively resulting in a change of the largest shareholder.
A capital markets industry source said INITECH's governance could not stabilize for some time, and the stock price could not avoid a decline, adding that the multiple handoffs among parties surrounding INITECH inevitably dealt a blow to the business.