Dongwon Group's acquisition of McDonald's Korea is in the works

A branch of McDonald's Korea situated in Seoul [NEWS1]

Dongwon Group is in the process of acquiring McDonald’s Korea, according to reports Monday.

Dongwon Industries, the group’s holding company, is reported to have been the sole preliminary bidder in the tender on Jan. 17, and the group began its first round of inspections last week.

The two sides are discussing the price.

McDonald’s Korea's sales proposal is presumed to be 500 billion won ($400.8 million).

“We are looking at several options now with an external professional institution,” said a spokesperson from McDonald’s Korea.

The selloff is being supervised by Mirae Asset Securities.

This is not the first time McDonald’s Korea has been put up for sale. In 2016, its U.S. parent negotiated with Maeil Dairies-Carlyle consortium, but the deal fell through.

McDonald’s Korea first launched in the domestic market in 1986, and the U.S. headquarter had wholly acquired it in 2006. If Dongwon Group takes over McDonald’s Korea, it will possess the exclusive business rights over the Korean affiliate and will give a 5 percent royalty to the U.S. headquarters.

Dongwon Industries, known to be a major domestic seafood company, merged with Dongwon Enterprise last November, becoming the holding company of Dongwon Group.

“We are reviewing the acquisition over McDonald’s Korea, but it has not been finalized,” Dongwon Group’s spokesperson commented.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]