This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:47 p.m. on Sept. 3, 2026.
E Group (formerly Ewha Group), which went through the turmoil of having three affiliates delisted at once, is continuing its shopping for KOSDAQ-listed companies. Even as Chairman Kim Young-jun of E Group is on trial on charges including embezzlement and breach of trust, the group has used group funds to acquire listed companies one after another over the past year.
According to the Financial Supervisory Service's electronic disclosure system on the 3rd, JB Asset Management recently decided on a third-party paid-in capital increase worth 10 billion won for JB Asset Management. The new shares to be issued in this paid-in capital increase total 6,138,735, and once it is completed, JB Asset Management will become the largest shareholder with 53.8% equity in PhionX.
JB Asset Management is an investment firm owned equally at 33.3% each by the three E Group companies, Ehwa Technologies Information, ETRON, and EID. It also took the lead when E Group acquired Rolling Stone (formerly MiCo Biomed) last year. In effect, E Group is leading this acquisition of PhionX.
The problem is the legal risk E Group carries. Due to Chairman Kim Young-jun's embezzlement and breach of trust, three affiliates (Ehwa Technologies Information, EID, and ETRON) were delisted at once last year. Kim is currently facing charges including violations of the Financial Investment Services and Capital Markets Act, and is on trial without detention after being released on bail.
Even while the group's head is on trial for embezzlement and breach of trust, E Group's acquisitions of listed companies are continuing. Since last year, it has bought two listed companies, and in June this year, the group lent funds to Kim's son to help acquire the KOSDAQ-listed Foodnamoo. (Related article☞"Three firms delisted" E Group's funding support... chairman's son succeeds with a no-capital M&A of Foodnamoo) Using E Group funds, the number of listed companies acquired over the past year has reached three. If the acquisition of PhionX is completed, the number of listed companies under E Group's influence is expected to increase to four.
As E Group continues to buy listed companies, concerns are emerging in the industry that the nightmare of "three companies delisted simultaneously" may be revived.
A source in the capital markets industry said, "Rolling Stone, which E Group acquired, failed to receive an audit opinion last year, and there are even allegations of fund outflows," adding, "As E Group's influence spreads among small-cap stocks, the prevailing view is that the acquired corporations could face crises at any time, just like the three Ewha companies in the past."
PhionX, which E Group is seeking to acquire, was established in 1978 in California as an automobile tire distributor. In 2010, it became the first U.S. company to list on the Korean stock market, drawing significant attention at the time. Its name at listing was Pride Corporation, and it used the name Ameridge until recently before changing to its current name in April. Its main businesses are apparel and medical cannabis distribution, and it has exited all automobile-related businesses.
PhionX drew attention in 2015 on themes of Chinese duty-free operations and medical cannabis, boasting a market capitalization of 600 billion won, but as it failed to produce clear results, the stock price has been on a downward path. The current share price is moving around 2,000 won, and market capitalization has shrunk to about 10 billion won.
With the prolonged slump in its share price, PhionX was designated as an issue management stock in July. If the current share price trend continues, it is expected to be difficult to avoid delisting.
However, if the proceeds from this paid-in capital increase are paid, there will first be a chance to escape the issue management designation. Based on the current issue price, the post-increase market capitalization is expected to be about 23 billion won. Considering an additional 2 billion won general public offering paid-in capital increase, it appears the company could meet this year's listing maintenance criteria.