Famous Person Who Spent 100 Million Won at Gangnam Club Transfers Shares to Jeong Gyuyong Family [At a Crossroads: Listed Companies] Kumho Electric③

10% Stake Sold by Owner Family via Block Deal
Concerns Over Large-Scale Sell-Off...
What Is Mr. Yang's Intention Behind the Acquisition?

The family of Jeong Gyu-yong, chairman of Kumho Electric, a KOSPI-listed company, sold a portion of their shares through a block deal (large-scale off-hours trading). The buyer was confirmed to be a member of a group called ‘Biber Fam,’ which gained attention in 2018 for spending 100 million KRW in one night at a Gangnam club.

According to the Financial Supervisory Service’s electronic disclosure system on the 9th, White Whale Investment Association No. 2 and Yangjeong Industry Ochang each signed an over-the-counter stock trading contract for 2,886,002 shares and 2,870,264 shares of Kumho Electric on the 26th of last month. The remaining payment is scheduled to be received on June 20.

White Whale Investment Association No. 2 is an association in which Jeong Heon-wook, president of Kumho Electric and son of chairman Jeong Gyu-yong, holds a 50.5% stake. The remaining 49.5% is reportedly held by Chairman Jeong. The White Whale Association converted the 9th series convertible bonds purchased from Kumho Electric in February last year into shares and is selling them this time. Yangjeong Industry Ochang is effectively a personal company indirectly 94.1% owned by Chairman Jeong.

The shares being sold this time amount to a total of 10%, with the sale price at 4.3 billion KRW. Upon completion of the transaction, the ownership stake of Chairman Jeong and the owner family will decrease from 40.87% to 30.86%.

The buyers of the shares are two individuals, including Mr. Yang. Among them, Mr. Yang acquired a total of 4,313,265 shares (7.61%), becoming a major shareholder of Kumho Electric. Holding more than 5% of a listed company’s shares classifies one as a major shareholder, triggering disclosure obligations.

Mr. Yang is a member of the ‘Biber Fam,’ a group known for spending large sums at Gangnam clubs, including purchasing a 100 million KRW ‘Mansour Set’ at ‘Burning Sun,’ a club operated by singer Seungri in 2018. According to media reports, Biber Fam is a social group consisting of about 10 to 20 members. Kang Jong-hyun of Vidente, known as the boyfriend of actress Park Min-young and chairman of Bithumb, is also known to be a member of this group.

Until recently, Mr. Yang served as the general chairman of ‘Bacan,’ a network marketing company. Bacan, established in 2022, sells the cosmetic brand Mishually and the health food brand Beginaday. The business operated under a multi-level marketing structure, dividing ranks such as Crown, Diamond, and Emerald, and paying sponsorship fees based on sales.

Bacan actively collaborated with Group A from June to July last year, but around September, it received a corrective action request from the Korea Special Sales Compensation Association for violating compensation regulations, leading to contract termination and business withdrawal. Multi-level marketing companies cannot operate without contracts with the compensation association or consumer damage compensation insurance.

Mr. Yang also sold cosmetics such as Baekmiin and Meditera through a network marketing corporation called W Cosmetic Corporation in 2015-2016. According to the Fair Trade Commission, this company also closed in 2017.

Additionally, Mr. Yang collaborated with a cryptocurrency company. According to industry sources, in 2018, a company called Bicos Global issued and circulated ‘Bicos Coin.’ At that time, coin sales representatives introduced that Bicos Coin was confirmed to be listed on overseas exchanges and was negotiating listings with domestic exchanges such as Bithumb. However, no exchanges with confirmed listings can currently be found. Mr. Yang is known to have participated as a key figure in Bicos Global events and maintained a cooperative relationship.

Meanwhile, in the market, concerns have been raised about the overhang (potential waiting volume) issue as more than 10% of Kumho Electric’s owner shares have been sold. Inquiries were made to Mr. Yang’s representatives and Kumho Electric, but no response was received.