This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:14 p.m. on Mar. 17, 2026.
KCGI, a domestic private equity fund (PEF) manager, is moving to acquire aircraft parts maker Yulgok. The firm is said to value highly the expectation of stable earnings growth over the next few years due to a shortage of aircraft supply. It is expected to invest using a recently raised blind fund of about 500 billion won.
According to the investment banking (IB) industry on the 17th, KCGI is reviewing an acquisition of Yulgok, which a consortium of JKL Partners and WJ Private Equity (PE) is seeking to sell. Yulgok's corporate value is being discussed at about 400 billion won for 100% equity. JKL Partners and WJ Private Equity invested in Yulgok in 2019 and currently hold 47.09% equity. Samil PwC is in charge of the sale.
The largest shareholder of Yulgok is CEO Wi Ho-cheol, who holds 47.23% equity. In this sale process, Wi is also widely expected to sell part of his equity. As a result, analysts say there is a high possibility that a new investor will become the largest shareholder and management control will change hands.
Yulgok is an aircraft parts manufacturer founded in 1990. It supplies parts to global aircraft makers such as Boeing and Airbus. During the COVID-19 pandemic, demand for air travel plunged and results temporarily slowed, but results improved rapidly as the aviation industry recovered. Last year, revenue and operating profit were 117.3 billion won and 14.8 billion won, respectively.
KCGI's interest in acquiring Yulgok is rooted in expectations of structural growth in the aircraft parts sector. As global airlines that delayed replacing aging aircraft during COVID-19 rush to do so at once, a worldwide shortage of aircraft supply continues. According to the International Air Transport Association (IATA), the global aircraft order backlog has exceeded 17,000 units. Yulgok and other aircraft parts corporations are said to have secured more than about 10 years of volume based on current production capacity.
The aircraft parts industry is regarded as a representative high-entry-barrier sector due to technical certifications and supply chain structures, making new entry difficult. Because it is directly tied to aircraft safety, even to supply a single part, suppliers must undergo certification procedures by aircraft manufacturers and national aviation authorities. In addition, once incorporated into an aircraft manufacturer's supply chain, long-term transaction relationships tend to be maintained, making it hard for new companies to enter the market.
KCGI CEO Jeong Jun-taek is said to be strongly committed to this deal. An industry official said, "KCGI is moving quite aggressively on the Yulgok acquisition." Jeong previously led the pre-IPO investment deal in Essex Solutions by KCGI and Mirae Asset Global Investments. However, Essex Solutions scrapped its initial public offering (IPO) plan early this year after President Lee Jae-myung's remarks on "dual listings."