This article was displayed on the ChosunBiz MoneyMove (MM) website at 1:30 p.m. on Jun. 10, 2026.
As the sale of management control of aerospace parts maker Yulgok is underway, a long-term overseas supply project is drawing attention as the biggest variable that will determine the sale price.
The project is known to be an order that could generate about 1 trillion won in revenue over the next 10 years. 1 trillion won is equivalent to Yulgok's eight years of revenue. Potential buyers, focusing on the likelihood of winning this project, are said to have offered a high price tag of 400 billion to 500 billion won.
According to the investment banking (IB) industry on the 10th, five firms are said to have participated in Yulgok's main auction, which ended on the 28th, including VIG Partners, Anchor Equity Partners (EP), KCGI, STIC Investments, and Premier Partners.
The sale includes all Yulgok shares: a 47.23% equity stake held by Chief Executive and founder Wi Ho-chul, the largest shareholder, and a 47.09% stake held by the JKL Partners–WJ Private Equity consortium. Some bidders are pursuing a 100% acquisition, while others are said to have proposed leaving part of Wi's stake in place and acquiring the remainder.
Samil PwC, the sell-side advisor for the Yulgok deal, received bids under two price cases depending on whether the new project is won. The project involves Yulgok supplying aircraft parts long term to a global company, and expected revenue is said to reach about 1 trillion won over 10 years. The award decision was slated for early this year, but it has not been finalized due to Yulgok's sale process.
A simple calculation of 1 trillion won in revenue over 10 years implies an additional average of 100 billion won in annual sales. Considering that Yulgok's consolidated revenue last year was 128.9 billion won, it would mean a new workload roughly on par with its existing annual revenue.
An IB industry official said, "Because it is a delivery project that continues over a long period, not a one-off contract, if the order is confirmed, it will inevitably have a significant impact on Yulgok's performance outlook and valuation."
In fact, potential buyers are said to have joined the main auction with emphasis on the probability of winning this project. There was also behind-the-scenes jockeying over how much to reflect the project in the valuation. On the assumption that the project is won, some expect Yulgok's valuation could rise to 500 billion won.
However, some in the industry say that if the existing management steps down due to this sale, the chances of winning the project could be affected. They note that factors such as the relationship between the ordering company and the new largest shareholder, and whether the current management remains at the company, could influence the final award decision.