EMK Begins Large-Scale Landfill Project in Gyeongju... IMM Aims for Trillion-Won Sale

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[Asia Economy Reporter Park So-yeon] Eco Management Korea (EMK), a waste disposal company listed for sale in the mergers and acquisitions (M&A) market, has officially launched its landfill business in Gyeongju. Amid rising corporate ESG (Environmental, Social, and Governance) investments and increasing value of environmental companies, EMK's valuation has soared to the trillion-won level, boosted further by its entry into the high-barrier landfill business.

According to the investment industry on the 20th, EMK established a landfill with a capacity of 1.52 million cubic meters within the Geomdan General Industrial Complex in Angang-eup, Gyeongju, and began operations in January this year.

The industry is paying attention to EMK, the second-largest domestic incineration company, recently starting a large-scale landfill project in Gyeongju. It secured a large-scale landfill, which is difficult to obtain permits for due to local opposition, in a short period and has begun generating substantial profits. EMK has grown into a mega environmental company, expanding from the second-largest domestic incineration business to liquid waste treatment and landfill operations.

IMM Investment acquired EMK in 2017 for approximately 400 billion KRW. Since then, additional investments are estimated at around 300 billion KRW, used for subsidiary acquisitions and landfill construction. EMK recorded sales of 128.7 billion KRW in 2020 and 135.6 billion KRW in 2021.

IMM Investment, EMK's largest shareholder, along with sale advisors Credit Suisse and EY Hanyoung, plan to conduct a preliminary bidding for EMK's sale next week. The transaction target is 100% of EMK shares held by IMM Investment. While the market initially estimated EMK's appropriate transaction price to be around 700 to 800 billion KRW, recent trends in the M&A market show higher valuations for waste companies, and when factoring in the value of the Gyeongju landfill project, expectations are mounting that the price will exceed one trillion KRW.

Meanwhile, EMK was established in 2010 through the merger of six waste companies nationwide. Originally owned by JP Morgan Asset Management, ownership transferred to IMM Investment in 2017. Its current subsidiaries include Korea Environmental Development, Binotech, EMK Seungkyung, Dana Energy Solution, Shindahan Petrochemical Industry, Green Energy, EMK Ulsan, KD Environment, and Top Eco.

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