This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:46 p.m. on May 21, 2026.
UCK Partners, a domestic private equity fund (PEF) manager, is pushing a second recapitalization of acquisition financing for Sulbing, a shaved ice dessert franchise. This is the second recap since acquiring Sulbing, and once this refinancing is completed, UCK Partners is expected to recoup most of the capital invested even before selling Sulbing.
According to the investment banking (IB) industry on the 21st, UCK Seolbing, a special purpose company (SPC) established when UCK Partners acquired Sulbing, will pursue a second recap next month. The size of this recap is a total of 100 billion won, including a 85 billion won senior term loan and a 15 billion won revolving credit facility (RCF). It is larger than the first recap (85 billion won). The interest rate is expected to be set around 6.9% per year. UCK Seolbing holds all of Sulbing's equity through a joint investment by UCK Partners (90%) and founder Jeong Seon-hui's side (10%).
With this recap, UCK Partners is expected to be able to recover most of the funds previously invested. According to the Financial Supervisory Service's electronic disclosure system on the day, the dividends UCK Seolbing received in 2024 and 2025 were 30.2 billion won and 22 billion won, respectively. Adding the 23.8 billion won return of paid-in capital at the time of the first recap in Feb. last year brings the total to 76 billion won.
When acquiring Sulbing, UCK Seolbing raised 75 billion won in equity and 80 billion won in acquisition financing. Considering interest costs on the acquisition financing to date, it would recover the principal in full after retrieving about an additional 10 billion won. The industry expects the amount UCK Seolbing will recover through this second recap to reach about 8 billion won. The explanation is that this recap will allow UCK Partners to recover an amount close to the full principal.
However, the interest rate for this recap is understood to be higher than at the time of the first recap (5.9%). Even so, the reason a second recap is proceeding is said to be that it allows for interim dividends to limited partners (LPs) while also enabling the lending syndicate to earn additional interest revenue in a stable manner.
Sulbing's enterprise value assessed ahead of this recap is about 210 billion won. The enterprise value, which was 145 billion won at the time of the acquisition in Oct. 2023, rose to about 180 billion won at the first recap in Feb. last year. The enterprise value has continued to rise. From the lenders' standpoint, because the collateral value has increased, even if the size of the acquisition financing grows with this recap, financial stability is maintained and interest revenue increases.
Sulbing is a shaved ice dessert franchise established in Korea in 2013. As of the end of last year, it had 608 domestic franchisees, up 32 from the previous year. Last year's sales came to 35.3 billion won, up 25.6% from the previous year (28.1 billion won), and operating profit rose 15.7% from 11.5 billion won to 13 billion won. The overseas market is also said to be continuing its growth trend.
An IB industry official said, "Even if there is an exit ahead, with a significant portion of the capital already recovered, we are in a position to choose a buyer at a relaxed pace without rushing the timing of the sale."