[Market Focus] Woongjin Acquires Top Funeral Service Firm; Thinkbig Expands to Middle East

Woongjin is showing strong performance in early trading.

On the morning of May 2, Woongjin was trading at 1,559 won, up 10.80% (152 won) from the previous trading day.

Previously, on April 30, Woongjin closed at the upper price limit after news broke that its subsidiary, WJ Life, had acquired a 99.77% stake in Freed Life, the top company in the funeral service industry. The move to diversify its business by entering the funeral service sector, which is considered a beneficiary of an aging population, has stimulated investor sentiment. This comes at a time when the outlook for its core education business is not bright due to declining birth rates.

The acquisition price is 883 billion won. Woongjin plans to raise capital by utilizing existing assets, issuing perpetual bonds, and acquisition financing, without a capital increase through new stock issuance.

Meanwhile, Woongjin's education affiliate, Woongjin Thinkbig, announced the previous day that it will export its augmented reality (AR)-based reading solution, ARpedia, to three Middle Eastern countries, including Saudi Arabia. Under this contract, Takaken Group will have exclusive sales rights for ARpedia in Saudi Arabia, Qatar, and Egypt for one year starting May 23. The agreement guarantees annual sales of at least $425,000 (approximately 600 million won).