Daou Kiwoom Group moves to acquire Munhakdongne; selected as preferred bidder

[Financial News] Daou Kiwoom Group has been selected as the preferred bidder for Munhakdongne, a domestic publisher pursuing a sale.
According to industry sources on the 23rd, founder Kang Byeong-seon (pen name Kang Tae-hyeong, a poet), Munhakdongne’s largest shareholder, met with the publisher’s employees that afternoon and reportedly told them that Daou Kiwoom Group had been selected as the preferred bidder for the acquisition. 
It is expected to take several months from the selection of a preferred bidder until the sale is completed. Kang reportedly explained to employees that the shareholders had agreed to sell 100% of their stake in Munhakdongne. 
According to Munhakdongne’s audit report, founder Kang holds 41.5% of the shares. Other shareholders hold 51.8%, and treasury shares account for 6.7%.
The remaining shares, excluding founder Kang’s stake, are reportedly spread among several shareholders, including editorial board members from when Munhakdongne was founded. The sale price is estimated at several tens of billions of won.
Founded in 1993, Munhakdongne has played a central role in Korea’s literary publishing market, publishing one after another the works of leading Korean authors, including Nobel Prize in Literature laureate Han Kang.
Munhakdongne has consistently published works by leading Korean authors, including Nobel Prize in Literature laureate Han Kang, and has maintained revenue in the 30 billion won range. Last year, it recorded revenue of 36.9 billion won and operating profit of 7.1 billion won.
Daou Kiwoom Group also owns webtoon and web novel platform companies including KidariStudio, Inc. and Lezhin Entertainment. If the acquisition of Munhakdongne goes through, the group is expected to be able to pursue a growth strategy combining literary IP.
Meanwhile, Daou Kiwoom Group is also pursuing the acquisition of JoongAng Ilbo through a consortium with CJ Group and Shinsegae. It was selected as the preferred bidder for the acquisition of JoongAng Ilbo on the 19th.

[email protected] Joo Won-gyu Reporter