This article was posted on the ChosunBiz MoneyMove (MM) site at 8:26 a.m. on Feb. 27, 2026.
KOSDAQ-listed EMNI has come onto the market for mergers and acquisitions (M&A). EMNI had gone through several changes of major shareholders and rehabilitation proceedings due to deteriorating performance, and since the current major shareholder took over it had sought to improve results. But as performance improved more slowly than expected, it appears the company ultimately chose to pursue a sale.
On the 27th, investment banks (IBs) and capital markets sources said DSP Corporation is seeking to sell a 27.4% stake in ENMI held together with related parties for 14 billion won. DSP Corporation is the largest shareholder, holding a 25.82% stake in ENMI. Related parties include Go Chang-hoon, the representative of EMNI (and representative of DSP Corporation), who holds 1.41%, and company executives and the employee stock ownership association hold the remaining shares.
If this sale goes through, DSP Corporation could exit with a twofold profit on its investment in about five years. In 2021, DSP Corporation acquired management rights by purchasing 6.2 million shares that had been held by IntroMedic and Hans ENG, the largest shareholders of EMNI, for 3.1 billion won. After participating in two subsequent rights offerings, the cumulative investment amounts to about 6.81 billion won.
Since acquiring EMNI in 2021, DSP Corporation has focused on improving profitability. EMNI (then KJ Pretec) suffered a crisis, entering rehabilitation proceedings in 2019 amid worsening business results. EMNI later pursued a sale of management rights to normalize operations while showing a shift from its existing liquid crystal display (LCD) business to focus on organic light-emitting diodes (OLEDs).
EMNI attempted a business pivot through a merger with OLED company EM Index in 2020. It returned to profit with operating income of 68.8 million won in 2022, but since 2023 it has alternated between losses and profits each year. Last year it recorded a loss of about 1.8 billion won.
EMNI once had a debt ratio of 300%, but under the current major shareholder structure it reduced that to the 50% range, achieving financial improvement.
However, because it failed to achieve stable profitability, the planned performance improvements have effectively failed. As a result, DSP Corporation is attempting a sale and seeking outside investment to try to improve the financial structure.
EMNI recently hinted at the possibility of a sale in a disclosure. Earlier this month, when EMNI's stock price surged and Korea Exchange (KRX) requested an inquiry disclosure, the company said, "We are discussing a share purchase agreement involving change of the largest shareholder, a capital increase and issuance of convertible bonds (CBs), but nothing has been concretely decided."
Although the stock has risen recently, the market's assessment is not positive. The stock briefly surged to the 1,400-won range but soon became a penny stock again, leaving its market capitalization modest compared with recently strengthened rules. EMNI's market capitalization is only about 18 billion won. If delisting rules based on market capitalization are fully implemented, it is difficult to be optimistic about maintaining the listing. The Financial Services Commission (FSC) decided to include market capitalization under 20 billion won as a cause for delisting starting in July.
A variable is the high asking price for the sale. Based on the current market capitalization, the seller's equity value is about 5.5 billion won. The desired sale price of 14 billion won is about one-third of that.
A source in the capital markets industry said, "Because of the high price and demands to attach attractive businesses for the buyer, it is unlikely a buyer will appear in the short term."