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Daegu Department Store's Ownership Transfer Fails After Buyer Defaults on Payment
Retail Trade · Department Stores · yonhap_finance · 2026-08-25
The planned sale of Daegu Department Store chairman's stake has been terminated after the buyer failed to meet the second installment payment deadline.
What Happened
Contract Termination: Daegu Department Store announced that the agreement to sell the stake held by Chairman Koo Jung-mo and six others has been officially terminated. The deal collapsed after the designated buyers failed to pay the second installment of the purchase price.
Sequence of Events: The transaction, initially signed last month with Seakyung Invest and Aram Korea, faced multiple delays. Despite attempts to extend deadlines and transfer the buyer's status to entities like Re&Go Partners, the required funds were ultimately not deposited.
Contractual Adjustments: The latest disclosure noted the removal of a specific clause that previously prevented the buyer from claiming a refund of the 3.4 billion won already paid in the event of a default. This change highlights the breakdown of the financial terms surrounding the failed acquisition.
Future Outlook: Company officials stated they have limited information regarding the transaction as it involves the personal stake of the major shareholder. Meanwhile, the company confirmed that the previously scheduled shareholders' meeting for September 16 will proceed as planned.