This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:50 p.m. on Jul. 29, 2026.
The bid to select a conditional acquirer for Charmzone Co, a first-generation Korean functional cosmetics company, appears to have been a success. Charmzone Co plans to soon select a preferred negotiation partner and move to an open competitive auction.
According to the investment banking (IB) industry and according to legal sources on the 29th, at least three potential buyers, including strategic investors (SI), submitted proposals for the conditional acquirer selection bid for Charmzone Co that ran through on the 27th. Charmzone Co is expected to select a preferred negotiation partner as early as this month.
Charmzone Co selected Samil Accounting Corporation as the sell-side advisor and, with approval from the Seoul Bankruptcy Court, is proceeding with a pre-approval merger and acquisition (M&A) process. The sale is being pursued via a stalking-horse method to secure a prospective buyer with preferred status ahead of the open auction.
To allow time to continue the sale process, the court extended the deadline for Charmzone Co's rehabilitation plan submission to Aug. 28. Earlier, on the 27th, Charmzone Co applied to the court to postpone the submission deadline for the rehabilitation plan.
Charmzone Co plans to reflect the acquisition price and creditor repayment plan, to be finalized through the selection of a conditional acquirer and an open auction, in the rehabilitation plan. To do so, it secured time to finalize the acquirer before submitting the rehabilitation plan.
Charmzone Co's liquidation value is known to be about 10 billion won. However, the sale price is said to be set well above that level.
Founded in 1984, Charmzone Co is a first-generation Korean cosmetics company. It grew by focusing on basic skincare and functional cosmetics and expanded into overseas markets such as China and Japan. It is seen as having been valued above liquidation value by potential buyers thanks to brand recognition and product intellectual property (IP) built at home and abroad, as well as the growth potential of the K-beauty market.
This bid is a procedure to select a conditional acquirer that will serve as the baseline for the subsequent open auction. After signing a conditional investment agreement with the candidate selected this time, Charmzone Co plans to conduct an open auction based on the price and terms proposed by that candidate.
If no candidate presents a higher price or more favorable terms in the open auction, the conditional acquirer will be finalized as the ultimate acquirer. Conversely, if a bidder emerges with better terms, additional competition may ensue.
An IB industry official said, "It is rare for a rehabilitation asset to draw this level of interest," and added, "Given that multiple bidders have submitted concrete acquisition terms, it would be fair to say the sale process is proceeding smoothly."