World-Renowned Jeju International School Sold for the First Time: "More Schools Will Hit the Market Amid Rapid Expansion" [K-INVESTORS]

Interview with Jinhyuk Yang, Executive Director of Financial Advisory at Samjong KPMG
Successful Sale of NLCS Jeju International School to Private Sector
Industrial IoT Company Struggled for Years to Find a Buyer, Matched with Overseas Investor
"Breakthrough Came from Counseling at Samjong M&A Center"

Recently, the first-ever sale of a school in South Korea took place. The international school 'North London Collegiate School Jeju (NLCS Jeju)' located in Jeju Global Education City was the subject of this transaction. The school's operating corporation, Jeins, had been unable to escape years of deficits due to high teacher salaries and facility rental fees. Among the three international schools operated by Jeins in Jeju, NLCS Jeju, which has relatively sound financial conditions and a high student enrollment rate, was chosen as the target for sale. As a campus of one of the world’s most prestigious private schools, it attracted the interest of many investors, ranging from domestic mid-sized business owners to overseas school operating corporations. Ultimately, in February, it was decided that Cognita Holdings, a UK-based global school operating group, would acquire the school.

Jinhyuk Yang, Executive Director of Samjong Accounting Corporation, is being interviewed on the 28th at Samjong Accounting Corporation in Gangnam-gu, Seoul. Photo by Jinhyung Kang

The hidden key player behind the 'first school sale in South Korea' was Jinhyuk Yang, Executive Director of the Financial Advisory Division at Samjong KPMG. Leading the advisory team since the sale process began in August 2023, he expects the deal to be successfully closed in the second half of this year. In an interview with Asia Economy on April 28, Yang emphasized, "Recently, building international schools in South Korea has become a trend, but due to the declining birth rate and the difficulty of attracting international students, it is not easy to fill student quotas. Investors must consider that operating losses are inevitable for a certain period after opening." He further predicted, "The number of schools coming up for sale will increase in the future."

Selling a school is a particularly complex deal because there are many factors to consider beyond just the price. Every step, from finding suitable investors to obtaining approval from the Ministry of Education and securing cooperation from local governments, presents a challenge. He commented, "While conducting due diligence and negotiating the sale price, I gained valuable know-how from advising on a school sale with no prior precedent, making this a meaningful deal."

Yang also has experience successfully completing highly challenging deals in the past. One example is the sale of the domestic industrial Internet of Things (IoT) company 'Bluebird' to the Taiwanese industry peer 'TSC Auto ID Technology' in September last year. Yang recalled, "Bluebird had pursued both a sale and an IPO for several years, but due to deteriorating performance, it was difficult to attract domestic investors. However, by finding an overseas company in the same industry that recognized its value, we were able to successfully close the deal."

Jinhyuk Yang, Executive Director of Samjong Accounting Corporation, is being interviewed on the 28th at Samjong Accounting Corporation in Gangnam-gu, Seoul. Photo by Jinhyung Kang

When the sale was stagnating, the company's internal 'M&A Center' played the role of a 'relief pitcher.' This consultative body, where one can seek counseling on investor ideas and networks, currently includes about 200 members, ranging from project managers (PMs) to partners. They actively exchange questions and answers not only through the internal messenger but also via KakaoTalk chat rooms. Yang said, "At the time, I requested counseling from the M&A Center, and following the advice of Lee Kimidong, Head of the Financial Advisory Division, we sent teaser letters (investment prospectuses) to Taiwan and other places, which proved decisive. Through this, we were able to match with unexpected investors that we had not previously identified."

Yang believes that the importance of the M&A Center will only grow as deal complexity continues to rise. He stated, "Recently, due to worsening business performance of target companies and increased uncertainty caused by the downturn in domestic and global economies, it is becoming increasingly difficult to match investors, and the gap in price expectations between sellers and buyers is widening. While the capabilities of the advisory team are important for solving issues that arise during the investor attraction process, collective intelligence can also provide solutions." He added, "Collaboration with M&A lead partners on deal-related matters is one of the main reasons why Samjong KPMG leads the M&A advisory market."

Yang graduated from Yonsei University with a degree in business administration and joined Samjong KPMG in 2006. He has accumulated experience in due diligence, valuation, and M&A advisory for distressed companies across various industries, including finance, automotive, shipping, shipbuilding, construction, machine tools, and golf. Based on this experience, he currently serves as Head of Deal Advisory Division 2 at Samjong KPMG, as well as leader of the M&A Advisory Team and the Corporate Restructuring Advisory Team. Yang stated, "My goal is to earn the trust of clients and to be recognized as the most professional advisory firm in the market, capable of handling the most challenging deals."

Jinhyuk Yang, Executive Director of Samjong Accounting Corporation, is being interviewed on the 28th at Samjong Accounting Corporation in Gangnam-gu, Seoul. Photo by Jinhyung Kang