This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:24 p.m. on Mar. 10, 2026.
With KOSPI-listed Daegu Department Store up for sale, some prospective buyers are said to have conducted preliminary due diligence through the largest shareholder. Daegu Department Store's largest shareholder has been searching for a buyer for several years, but with no meaningful results, the process shifted last year to an open sale through an accounting firm. Although a sale manager has been selected, the largest shareholder is also working behind the scenes to sell the company, and as a result, preliminary due diligence was conducted this time, according to people familiar with the matter.
According to investment banking (IB) and capital markets industry sources on the 10th, a party interested in acquiring Daegu Department Store recently completed preliminary due diligence. This preliminary due diligence was conducted separately from the open sale being run by the sale manager, Samjong KPMG. The sale involves the 32.3% equity held by Chairman Gu Jeong-mo, currently the largest shareholder of Daegu Department Store.
Daegu Department Store was put on the block in 2021 as weak results continued amid intensifying department store competition in Daegu. At the time, both a sale of management control and a sale of only asset such as the main store building and land were on the table. Currently, a plan to sell management control, including the outlet and the logistics center, is emerging as the leading option. In 2022, JHB Holdings, and in 2023, CHA Bio Group expressed interest in acquiring Daegu Department Store, but neither deal materialized.
After the deal failed to close, the largest shareholder shifted to an open sale through Samjong KPMG. Three to four parties submitted letters of intent last year, but this also has yet to lead to visible results such as the selection of a preferred bidder.
The asking price sought by the largest shareholder is said to be about twice the current share price of Daegu Department Store. Shares of Daegu Department Store are trading around 4,500 won. There is also talk that, in addition to the largest shareholder's equity, treasury shares amounting to 2.1 million shares (about a 19.4% stake) could be included in the sale. In that case, the equity stake a buyer would need to secure would rise to around 40%.
According to industry sources, the party that recently took part in preliminary due diligence on Daegu Department Store has made progress to the point where specific acquisition prices are being discussed. However, they are also said to be likely to participate in the upcoming open bidding. Depending on how the bidding proceeds, the sale price and size could change.
Another variable is that the newly emerged prospective buyer is suspected to be connected to Nam Gi-won, who is currently on the run overseas. Nam is wanted on charges of violating the Financial Investment Services and Capital Markets Act, including no-capital mergers and acquisitions (M&A) and stock price manipulation, and is currently a fugitive abroad.
An industry source said, "Even while on the run, Nam has remained active in the domestic capital market, recently attempting to acquire several listed companies," and added, "Nam's name keeps coming up in the recent Daegu Department Store acquisition battle."