This article was displayed on the ChosunBiz MoneyMove (MM) site at 8:24 a.m. on Apr. 24, 2026.
KG Group changed the deal structure in the process of acquiring K Car so that it directly secures management control of the financial subsidiary K Car Capital as well. K Car Capital had initially been slated to be acquired by private equity fund Cactus Private Equity (PE), but the direction shifted to having an affiliate of KG Group take it instead.
According to the investment banking (IB) industry on the 24th, KG Dongbu Steel held a board meeting on the 21st and decided to acquire 52.5% equity of K Car for about 400 billion won. KGINICIS decided to acquire 100% equity of K Car Capital for about 200 billion won. K Car Capital is a K Car subsidiary that provides installment plans and loans to customers purchasing K Car vehicles.
Cactus PE has long been a partner that participated as a financial investor (FI) in KG Group's major M&A deals. It had initially agreed to acquire K Car Capital in this deal. However, the contract was ultimately changed so that KG Group directly acquires K Car Capital, and Cactus PE buys 19.7% equity of K Car.
KG Group said it changed the acquisition structure during due diligence in light of the business characteristics. K Car Capital's main revenue source is providing auto loans under long-term contracts with K Car. If its governance is separated from K Car, its competitiveness could weaken.
If brought under KG Group, the company could also expect synergy with KG Mobility (formerly SsangYong Motor). Although KG Capital (formerly SY Auto Capital) exists within KG Group, it is a startup established in 2023 with assets of only about 100 billion won. By contrast, K Car Capital has assets of 745.8 billion won, placing it mid-tier in the industry. Some predict the two companies could discuss a merger.
Cactus PE said this approach was envisaged from the outset. A Cactus PE official said, "Rather than the acquisition structure suddenly changing, we had to close the transaction within four weeks, so we first signed the contract and then worked out the details." The explanation was that specific contract terms were finalized later for an efficient acquisition.