E-Malt.com News article: South Korea: Craft beer maker Jeju Beer sells management rights after underperforming

While South Korea’s beer consumption is declining amid a growing global interest in health, Jeju Beer, the nation’s No. 1 craft beer maker, has sold its management rights after underperforming, mk.co.kr reported on March 19.

According to the Financial Supervisory Service's electronic disclosure system on March 19th, Jeju Beer decided to sell 8.64 million shares and management rights held by MBE Holdings, the largest shareholder, and Jeju Beer CEO Moon Hyuk-ki to Double HM for 10.156 billion won.

Double HM, an auto repair and parts distributor based in Seongdong-gu, Seoul, buys Jeju beer at 1,175 won per share. As news of the sale spread, Jeju Beer's stock price plunged, falling about 22% from the previous day at around 2 p.m. on the same day.

Jeju Beer has been leading the growth of the craft beer industry by listing on the KOSDAQ in 2021 for the first time in the craft beer industry, but has continued to suffer from the polarization trend of favoring high-altitude stocks such as non-alcoholic and whiskey amid an overall decline in alcohol consumption.

Jeju Beer's sales last year were 22.4 billion won, down 6.2% from the previous year and operating losses reached 10.9 billion won. The amount of operating loss exceeded 10 billion won for the second consecutive year following 2022.

Double HM is expected to operate at the same time as the balance is paid at the extraordinary shareholders' meeting to be held on May 8. However, Jeju Beer is scheduled to issue new stock acquisition rights (9,442,871 shares) on May 30 with the GY Investment Association as the payer, and Jeju Beer's largest shareholder will be changed from Double HM to GY Investment Association when a third-party allocation paid-in capital increase is made. The ZY Investment Association is a newly formed association.


20 March, 2024