[Featured Stock] Ssangbangwool Gains Momentum in Group's China Business with Eastar Jet Acquisition... Targeting 74 Trillion Won Underwear Market

[Asia Economy Reporter Hyungsoo Park] Ssangbangwool is showing strength for the second consecutive day. The expectation that it will acquire Eastar Jet, which is undergoing corporate rehabilitation procedures, and make it a new growth engine within the group seems to be influencing the stock price.

At 9:04 AM on the 10th, Ssangbangwool was trading at 1,085 KRW, up 19.63% from the previous day. After soaring to the daily price limit the day before, it has been strong for two consecutive days.

Within the Ssangbangwool Group, the affiliate Kwanglim, the domestic No.1 in cranes and special vehicles, is leading the acquisition efforts by forming a consortium with the semiconductor equipment company Mirae Industry and the entertainment company IOK.

Eastar Jet holds the largest number of 12 routes to China among domestic low-cost carriers (LCCs) and has secured slots to operate at local airports. Ssangbangwool plans to diversify the businesses of its affiliates within the group through this and promote expansion into the Chinese market in the future.

The leading underwear brands Ssangbangwool and Vivian are preparing to target the approximately 74 trillion KRW Chinese underwear market. Utilizing IOK’s content production and management business for movies, dramas, and more, they plan to develop it into a "K-content aviation culture industry." If flight operations resume, the strategy is to rapidly increase recognition through aircraft exterior wrapping advertisements featuring popular celebrities as well as in-flight video advertisements.

The company explained that there is no problem securing funds for the acquisition of Eastar Jet by attracting financial investors (FIs). Ssangbangwool appointed former Eastar Jet CEO Kim Jeongsik as the chairman of the acquisition promotion committee. Kim, who took office as Eastar Jet CEO at the end of 2013, grew Eastar Jet from a perennial deficit company into a profitable one during his tenure. Once the acquisition of Eastar Jet is successful, it is expected that stable and prompt management normalization will be possible centered on Chairman Kim.

This content was produced with the assistance of AI translation services.