Digital Daesung Completes Receipt of 27.5 Billion Won from Vietnam JV Sale... Expands Investment in New Businesses

Digital Daesung, an educational content platform company, has completed the sale of its stake in a Vietnamese joint venture (JV), securing approximately 27.5 billion won in liquidity. The company plans to accelerate its future growth strategies, including investment in new business areas and mergers and acquisitions (M&A), based on this capital.

On May 18, Digital Daesung announced through a disclosure that the transaction for selling its entire 50% stake in the joint venture 'Ecopark Daesung International Education' with Vietnam's Ecopark has been finalized, with the company receiving the full sale price of 19.2 million dollars (approximately 27.5 billion won).

With the completion of this transaction, Digital Daesung has ended its joint investment relationship with its Vietnamese local partner, which had been ongoing since 2019. The company stated that this also resolves the prolonged uncertainty related to its overseas education business, which was exacerbated by the COVID-19 pandemic.

Additionally, the company expects to record a pre-tax gain on the sale of approximately 9.5 billion won based on book value, which will be reflected as non-operating income. As a result, the company anticipates a positive impact on net profit for the second quarter of this year.

Digital Daesung plans to actively pursue future growth drivers using the secured funds. A company official stated, "To diversify our business and enhance mid- to long-term corporate value, we are reviewing investments and mergers and acquisitions in various industries beyond the education sector," adding, "With sufficient investment resources secured, we are now able to expand our review to include more valuable and high-quality assets."

CEO Kim Heeseon said, "By receiving the sale proceeds and finalizing the transaction, we have ultimately resolved uncertainties related to our Vietnam international school business, and have secured substantial investment capacity for future growth," adding, "We plan to accelerate the pursuit of new businesses and mergers and acquisitions that can further enhance our corporate value based on the resources secured."

Digital Daesung is now actively pursuing investments in new businesses and diversification strategies, leveraging the large-scale cash reserves secured through the liquidation of its Vietnam operations.

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