This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:48 p.m. on Mar. 5, 2026.
Chaebi, an electric vehicle charging infrastructure operating corporations seeking a KOSDAQ listing, allocated up to 25% of its IPO proceeds to pay down debt. The move follows a 30 billion won loan taken out by pledging management control equity as collateral during the listing push, suggesting Chaebi, which had reached a cash-flow threshold, chose a listing as a last card.
According to the investment banking (IB) industry on the 5th, Chaebi borrowed 30 billion won from Mirae Asset Securities in Oct. last year. Considering that Chaebi applied for a preliminary KOSDAQ listing review with the Korea Exchange (KRX) market division in Jul. last year and won approval in Feb., it effectively obtained an external loan while the exchange's listing review was underway.
The loan terms were drastic. In the loan agreement, Chaebi accepted a condition that said it would provide the largest shareholder (CEO Jeong Min-gyo)'s equity as collateral "if the listing is not completed within the IPO deadline." Observers said the founder, who holds 38.24% equity (pre-IPO basis), staked management control as collateral to raise funds, effectively burning bridges.
An IB industry official said, "It is an unusual case for a corporations pushing for a listing to take on large borrowings by accepting the stringent condition of pledging the largest shareholder's equity as collateral," adding, "It appears Chaebi's cash burn was so severe that it could hardly endure even a few months until the IPO proceeds came in."
Chaebi used the 30 billion won borrowing fund for building EV charging infrastructure. It won selection as an operator after bidding for the "2025 highway rest area EV charging infrastructure construction project" ordered by the Korea Expressway Corporation (KEC), gaining qualification to build and manage a total of 138 fast chargers.
The company is attempting a KOSDAQ listing under the "unrealized profit exception (Tesla requirement)," which offers listing opportunities if growth potential is high even for loss-making corporations. To meet this requirement, it likely had to keep expanding charging infrastructure, even through aggressive borrowing, to maintain revenue growth. Chaebi is Korea's No. 1 EV charging infrastructure operator (CPO), handling everything from EV charger manufacturing to operations, but the recent stagnation in EV demand (the chasm) has delayed a turnaround to profit, increasing financial pressure.
After drifting for more than seven months, Chaebi won preliminary listing approval in Feb., but the market's view is chilly. Investment in corporations listing under the Tesla requirement hinges on "future growth" funded by IPO proceeds, but a sizable portion of the funds will go to repaying loans previously taken out to pursue the listing.
In this IPO, Chaebi plans to raise 123 billion–153 billion won by issuing all 10 million shares as new shares. The desired IPO price is 12,300–15,300 won per share. If the price is set at the lower end (12,300 won), more than 24% of the total proceeds will be used to repay the 30 billion won loan from Mirae Asset Securities.
Some say Chaebi, which has reached a cash-flow "threshold," may continue to raise funds even after listing through methods such as paid-in capital increases. Chaebi's position is that it can turn operating profit-positive in 2027, but if the EV chasm persists, the improvement in earnings could be delayed accordingly.
As of the end of the third quarter, Chaebi's total borrowing fund was tallied at about 66.7 billion won. This includes repayment of short-term borrowings, current portion of long-term borrowings, and 12 billion won in privately placed bonds, with the liability ratio appearing to exceed 171%. Adding the 30 billion won borrowed from Mirae Asset Securities pushes borrowings close to 100 billion won.
A head of an asset management firm that mainly invests in IPOs said, "Upon listing, the effect of the pledge right on the largest shareholder's equity collateral is extinguished," adding, "In that case, the largest shareholder may overcome a personal crisis, but that burden will be passed on to shareholders in the form of dilution of corporate value and a reduction in investment resources."
Meanwhile, Chaebi says it may use part of the IPO proceeds allocated to expanding charging infrastructure to repay the borrowing fund from Mirae Asset Securities to improve its financial structure and reduce financing costs. It added that this has the character of converting the funding structure of previously executed capital expenditures to IPO proceeds.