Lee Young-ae's Defense Company Stakeholder 'Korea Telecom' Up for M&A Sale

Korea Telecom Yongin Factory Exterior View

[Asia Economy Reporter Park So-yeon] Innosimulation, which is preparing for an initial public offering (IPO), is selling its defense industry subsidiary Korea Telecom.

According to the investment banking (IB) industry on the 14th, Innosimulation is pushing forward with the sale of its subsidiary Korea Telecom, in which it holds a 93.9% stake.

Innosimulation acquired Korea Telecom from LG CNS in 2019 and is putting it back on the market after about three years.

Korea Telecom is a defense solutions company that develops various military electronic equipment, security, air defense fire control systems, detection systems, and military scientific combat training systems.

It was established in 2002 under the name Hallim ST, acquired by Korea Raycom Co., Ltd. in 2003, and changed to its current name in 2007. The founders of Hallim ST and Korea Raycom are known to be Mr. Jeong Ho-young, the husband of actress Lee Young-ae.

Korea Telecom owns the MILES (Multiple Integrated Laser Engagement System) solution, a simulated military training system for training combat infantry. According to the 2019 business report, its sales amounted to 5.5 billion KRW, with an operating profit of 2.4 billion KRW.

A source from the IB industry said, "Innosimulation judged that the MILES solution business is somewhat heavy from a business perspective ahead of the listing," adding, "There are companies currently interested in acquiring it, and the sale process is underway."

The shareholder structure consists of Innosimulation (93.9%), Rear Associates Co., Ltd. (3.6%), and Korea BA Co., Ltd. (2.3%).

Rear Associates (formerly Samyoung Planning) is the agency of actress Lee Young-ae, and she owns 100% of its shares. Korea BA is also 100% owned by Rear Associates.

The largest shareholder, Innosimulation, is a company that develops and supplies virtual training systems, autonomous vehicle simulators, and VR motion platforms. Its major clients include Hyundai Motor Company, Hyundai Rotem, Hanwha Defense, and Hyundai Doosan Infracore.

It has built technology and experience as a simulation partner of Hyundai Motor Company for the past 22 years. Currently, it is regarded as the undisputed number one company in the vehicle simulator market. It is expanding vehicle simulator technology to apply not only to automobiles but also to railroads, industry, defense, and medical fields.

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