Sajo Seafood acquires 62% stake in Sajo Dongawon… What happened?

On August 22, 2025, Sajo Seafood acquired additional 509,224 shares of Sajo Dongawon through Sajo CPK, increasing its stake to 62.05%. This is interpreted as a move to influence management control, not just a simple investment.

Why the stake increase? Strengthening and stabilizing management?

This stake increase is analyzed as a move to strengthen and stabilize management control. Securing a majority stake allows for stable management and strengthens future business strategy implementation.

Sharp decline in sales, unstable fundamentals… So what happens next?

However, Sajo Dongawon’s recent performance is not good. In the first half of 2025, sales decreased by 51.1% year-on-year to KRW 331.3 billion. Both the flour milling and biological resources sectors showed sluggish performance. Operating profit also decreased by 24.3%. Net income increased slightly due to increased financial income, but the fundamental problem of declining sales has not been resolved.

  • Positive factors: Management stabilization, improved investor sentiment
  • Negative factors: Sharp decline in sales, volatility in raw material prices and exchange rates

In the short term, the stake increase could positively affect the stock price, but the mid- to long-term stock price depends on whether fundamentals improve.

Investor Action Plan: 3 Checkpoints

Investors should carefully consider the following:

  • Possibility of sales recovery: Check Sajo Dongawon’s sales recovery strategy for the flour milling and biological resources sectors, and whether they can secure new growth engines.
  • Profitability improvement: Monitor the actual results of efforts to improve profitability, such as cost management and efficiency enhancement.
  • Management strategy: Pay attention to the mid- to long-term management plans and implementation measures announced after the stake increase.