This article was posted on the ChosunBiz MoneyMove site at 5:03 p.m. on Mar. 20, 2026.
KOSDAQ-listed Hyundai Feed is seeking to sell its management rights but has been unable to find a buyer for more than six months. Although the issue of seizure of the major shareholder's shares, which was identified as a legal risk, is being resolved gradually, only about a month remains before possible delisting. If this public sale does not succeed, Hyundai Feed is likely to move toward delisting.
On the 20th, investment banks and people in the capital market industry said that no investors appeared in Hyundai Feed's public sale after the first round of bidding and through the second round of bidding, resulting in failed auctions.
Hyundai Feed selected Samjong KPMG as the lead manager on Aug. 26 last year and launched a public sale of management rights. The shares for sale were about 41%, consisting of 40.45% held by Ddeulanchae Construction, which was then the largest shareholder, and 0.53% held by BSJ Holdings. Because Hyundai Feed's improvement period also ends on Apr. 17, the plan was to complete the sale within April.
However, no investor has shown strong interest in Hyundai Feed's public sale. In the first bidding held at the end of last year there were investors who expressed interest, but ultimately none participated in the bid. In the second bidding held this year, no bidders appeared either, and the sale is facing difficulty.
Industry sources say legal risks surrounding Hyundai Feed are making it difficult to find investors. Trials related to a past stock manipulation case in which the company was involved are still ongoing, and related problems have continued to arise. Under the control of the past stock manipulation figure Mr. Lee Jun-min, the company operated under the name Canaria Bio and attempted to inflate the value of the ovarian cancer drug oregovomab to boost the stock price. Lee was recently sentenced by a court to four years in prison on charges including the Canaria Bio stock manipulation case.
The company later changed its name back to Hyundai Feed and moved to normalize management, but after oregovomab's clinical trials were halted and its asset value was impaired, the company fell into full capital erosion and is currently suspended from trading. In addition, the court ordered preservation of proceeds related to the shares held by the major shareholder in the stock manipulation trial. Because the shares for sale are tied up by the court, investors would be taking on another risk.
In addition, seizures related to Hyundai Feed's shares have continued. There are as many as seven seizure and provisional seizure applications against the shares held by former largest shareholder Ddeulanchae Construction. These include a seizure filed by the Ddeulanchae Construction owner against the company. The claimed amount for seizure is about 1 billion won. Former largest shareholder BSJ also filed a provisional seizure of 21 billion won against Ddeulanchae Construction. However, BSJ's provisional seizure was filed to prevent other creditors' provisional seizures and is expected to be lifted depending on progress of the public sale.
A source in the capital markets industry said, "It is not easy for an investor to show interest in assets with seizure and preservation of proceeds on the shares," adding, "Because buyers would be taking on legal risks, price differences between buyers and sellers are likely to be large even if a buyer appears."
However, with some seizures recently lifted, the legal risk is entering a resolution phase. One seizure and one provisional seizure were recently lifted, totaling 235 million won in claimed amounts. Excluding the seizure filed by the Ddeulanchae Construction owner, the remaining claimed amount is about 450 million won.
An industry source said, "It is true that the provisional seizure issues are entering a phase of being resolved, but Hyundai Feed shareholders have only about a month left," adding, "If the improvement period is not extended, completing the sale within the deadline does not look easy."