This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:23 p.m. on Apr. 17, 2026.
An inheritance dispute has emerged as a new variable in global private equity firm Carlyle's bid to acquire Chungho Nais. Jeong Seong-hun, the child of the late former Chairman Jeong Hwi-dong's ex-wife, has come forward to claim a share.
Because Carlyle hopes to acquire all of Chungho Nais equity, negotiations with Jeong, who will become the No. 2 shareholder, are expected to be key. Depending on the outcome of future lawsuits, Jeong would hold up to about 20% of Chungho Nais equity.
According to the investment banking (IB) industry on the 17th, Carlyle recently signed an exclusive negotiation memorandum of understanding (MOU) with Chungho Nais's bereaved family and has begun due diligence for the acquisition.
The sale targets are controlling equity in Chungho Nais and its affiliates Microfilter and MCM. In addition, Donggeurami Finance Private Lender, which the former chairman held, is also said to be included in the sale. The price under discussion between the two sides is said to exceed 800 billion won based on 100% of Chungho Nais equity.
Chungho Nais came on the market after the founder, the former chairman, passed away suddenly. The bereaved family is said to have given up control to cover more than 200 billion won in inheritance taxes.
Since founding Chungho Nais in 1993, the former chairman had maintained his position as the largest shareholder, but he died in June last year at age 67. He held 75.1% of Chungho Nais equity during his lifetime, and that equity was inherited by his wife, Chair Lee Kyung-eun, and their second son (Lee's child), Jeong Sang-hun. The No. 2 shareholder is the family company Microfilter (12.99% equity), and the former chairman's younger brother, Vice Chairman Jeong Hwi-cheol, holds 8.18%.
Chungho Nais is said to have considered selling control even while the former chairman was alive. However, the sale reportedly fell through after the former chairman suggested a valuation of 1.5 trillion won to 2 trillion won. With the former chairman's sudden passing, Carlyle stepped in as the bereaved family's relief pitcher.
As a global private equity fund, Carlyle has ample capital, so securing the acquisition funds is not an issue. But a variable is that the size of the equity being transacted has not yet been finalized. Chair Lee Kyung-eun, the former chairman's wife, and others argue based on the will that Jeong Seong-hun has no inheritance rights, while Jeong is challenging the will's validity and has filed a lawsuit to confirm invalidity of the will and a claim for division of inherited property with the Seoul Central District Court.
The legal community estimates Jeong's share at 10.7% to 21.5% of Chungho Nais equity. Under the current Civil Act, when a spouse inherits jointly with lineal descendants, the spouse's share is 1.5 times that of one child, and the forced share of a lineal descendant is half of the statutory share. If the heirs are one spouse and two children, the statutory shares are three-sevenths for the spouse and two-sevenths for each child, and one child's forced share is calculated as one-seventh.
If the will is set aside or the status as an heir is strongly recognized so that statutory inheritance applies, that child's share could increase to two-sevenths. Since the former chairman's Chungho Nais equity inherited by the bereaved family totals 75.1%, the equity Jeong Seong-hun could take would be 10.7% to 21.5%.
In that case, Jeong would become a solid No. 2 shareholder of Chungho Nais. From Carlyle's perspective, Jeong would inevitably be a concern.
An IB industry official said, "Carlyle hopes to acquire all of Chungho Nais equity," and added, "If Jeong Seong-hun remains the No. 2 shareholder, issues could arise in future decision-making and governance, and obstacles could crop up in the exit (investment recovery) process, potentially becoming a headache."
How much Chungho Nais equity Jeong ends up taking is a key issue, but another variable is how Carlyle values Jeong's equity.
Another IB industry official said, "From Carlyle's standpoint, it would want to treat Jeong's equity as a minority stake and acquire it at a lower price, but the likelihood that Jeong agrees to that is very low," and added, "There is a possibility Jeong will demand a higher price by attaching a high control premium; in that case, the key will be how far Carlyle is willing to agree."