E Group funds power son's 22.5B won zero-capital takeover of Foodnamoo
What's the deal? Kim Woo-joo, chief executive officer of KOSDAQ-listed FoodnamooDealroom has a profile for this one. Try Dealroom → and son of E Group Chairman Kim Young-joon, became the company's largest shareholder on June 8, 2026 by buying a 28.63% stake from previous owner Onhill Partners. Kim borrowed the entire 22.5 billion won purchase price from InnofaceDealroom has a profile for this one. Try Dealroom →, a subsidiary wholly owned by E Group affiliate Ehwa Technologies Information.
Why the scrutiny? Industry observers are skeptical of the funding. Because E Group provided all the capital and holds collateral rights to roughly 10 million of Kim's Foodnamoo shares via Innoface, the deal is viewed as a no-capital acquisition enabled by the family tie.
What's the endgame? The purchase appears designed to keep E Group active in the capital market by putting the chairman's son at the front. Some see it as an attempted comeback for Chairman Kim, who is on trial for embezzlement and breach of trust involving affiliates and was released on bail in 2023.
E Group funds continue to flow into Foodnamoo. The company switched the target of a third-party allotment paid-in capital increase, in progress since early July 2026, from New K Dream No. 1 to Innoface.
What could go wrong? E Group's recent record raises questions. Three of its listed companies were delisted at once over the chairman's embezzlement and breach of trust.
Its later bets fared poorly too. MiCo Biomed, renamed Rolling Stone after E Group took control, received a disclaimer of opinion in its 2025 audit and is now facing delisting; ADBIOTECH, acquired at the end of 2025, later cut ties by selling its management control.
The signal: The move tests a tougher regulatory climate. Financial authorities have stepped up action against capital market crimes since the launch of the Lee Jae-myung administration, yet E Group is pressing ahead — using a family member to sidestep the chairman's legal risk. As one capital market official put it, "given Chairman Kim's legal risk, it seems they put forward his son."
Read more: ChosunBiz
Image credit: Generated with Gemini
