This article was displayed on the ChosunBiz MoneyMove (MM) site at 1:33 p.m. on May 15, 2026.
Competition for the acquisition of aerospace parts maker Yulgok is turning out to be fiercer than expected. In addition to previously known bidders, multiple private equity fund (PEF) managers, including VIG Partners, have newly begun reviews, raising the likelihood that the main bid will draw seven to eight contenders.
According to the investment banking (IB) industry on the 15th, the sell-side advisor Samil PwC plans to hold the main bid through the 22nd. After the main bid, the sellers aim to select a preferred bidder and conclude a stock purchase agreement (SPA) as soon as possible.
The assets for sale are a 47.09% equity stake in Yulgok held by the JKL Partners–WJ Private Equity consortium. The enterprise value is expected to be set at around 400 billion won based on 100% equity. However, Samil PwC is receiving offers under two price cases depending on a new project award scenario, so the final sale price will likely vary depending on whether the project is won.
Likely participants in the main bid include VIG Partners in addition to previously known bidders KCGI, Anchor Equity Partners, Premier Partners, and STIC Investments. Including these, a total of seven to eight firms are expected to compete in the main bid. With a week left before the main bid, all suitors are in the final stages of due diligence.
Yulgok is an aircraft airframe and engine parts manufacturer founded in 1990. The JKL Partners–WJ Private Equity consortium became the second-largest shareholder after purchasing part of existing shares in 2019 and acquiring 40 billion won in convertible preferred shares (CPS) in 2020. The current largest shareholder is CEO Wi Ho-cheol with a 47.23% stake, and the JKL–WJ consortium holds 47.09%, including preferred shares. It is not yet decided whether part of Wi's stake will be included in the sale.
Yulgok operates production bases in Changwon, Sacheon, Sancheong, and Jongpo, and has strengths in machining parts and manufacturing and assembling wing structures. As a partner of Korea Aerospace Industries (KAI), it is also known to supply products to global parts makers connected to the Boeing and Airbus supply chains. Last year's revenue was about 117.4 billion won, with operating profit of 14.6 billion won.
Yulgok is drawing interest from suitors as expectations rise for increased demand related to aircraft parts and defense and space aviation. Because customer approval, quality certifications, and delivery track records are important in the aircraft parts industry, barriers to entry are high. Companies with secured, stable positions in the supply chain have significant room for performance improvement as aircraft production expands. In particular, Yulgok also produces parts for military aircraft such as the T-50, KT-1, and Surion, leading to assessments that it could benefit indirectly from growing demand for defense aircraft. Potential buyers are also said to be focusing on the potential to grow Yulgok into a precision parts platform for aerospace and defense.