Transfer of Entire Public Official Business Division to New Corporation with 5 Million Won Capital
Increased Interest in Source of Acquisition Funds and Relationship with ST Unitas
It has been confirmed that the party acquiring Megastudy's civil service division consists of personnel from ST Unitas (ST Unitas), the operator of 'Gongdangi'. Previously, Megastudy attempted to acquire ST Unitas, but the Fair Trade Commission prohibited it, citing the risk of monopoly in the civil service exam academy market.
According to the Financial Supervisory Service's electronic disclosure system on the 17th, Megastudy Education announced that it will transfer all business operations related to its civil service division, 'Mega Gongmuwon', for 11.4 billion KRW. A deposit of 400 million KRW was received on the 13th, and the transaction will be completed once the remaining 11 billion KRW is paid by the 31st.
The transferee is 'Next Study'. Next Study is a corporation established on the 26th of last month with a capital of 5 million KRW. The corporation's CEO, Yoon Hun-hee, is an inside director of 'Beauty Rusha', a corporation operating 'MBC Academy Beauty Academy'. Although the company stated that Yoon has resigned, his name is still registered in the official records.
Beauty Rusha is a 100% subsidiary of ST Unitas, the operator of Gongdangi, which holds the number one position in the civil service exam academy market as of the end of the third quarter this year.
In fact, Next Study was initially established at the headquarters of Beauty Rusha and ST Unitas in D-Cube City, Sindorim, Seoul. After establishing the corporation there, on the 2nd, its address was moved to a party room near Gangnam, Seoul, a location hardly considered a headquarters for a civil service exam academy business.
Previously, in October 2022, Megastudy pursued a deal to acquire 95.9% of the shares of ST Unitas, the operator of Gongdangi, for 171.8 billion KRW. The purpose was to strengthen competitiveness in the civil service exam academy business. At that time, Gongdangi ranked first and Megastudy second in the online lecture market share for 7th and 9th grade civil servants, military personnel, and firefighters.
However, in March, the Fair Trade Commission prohibited the merger of Megastudy and ST Unitas, stating that the corporate combination could restrict competition in the civil service exam academy market. This was because the combined market share of the two companies' sales reached 67.9% as of 2022. The commission pointed out the possibility that popular instructors might flock to Megastudy, which would become the overwhelmingly dominant operator after the merger, potentially leading to price increases.
As a result, the market's attention is focused on the source of Next Study's acquisition funds and its future business development. Depending on where the acquisition funds come from and the extent of business ties with ST Unitas, the market share in the civil service exam academy sector could change.
A Megastudy Education official stated, "In the fourth quarter of this year, we acquired Beauty Rusha from ST Unitas, and CEO Yoon Hun-hee will be removed from the registered director position within this week," adding, "Next Study is completely unrelated to ST Unitas." However, they did not respond regarding the source of Next Study's acquisition funds.
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