MBK Partners has revived its efforts to sell Golfzon County, South Korea’s largest golf course operator, after weighing options between an initial public offering (IPO) and a trade sale. The private equity firm has recently adjusted its valuation expectations downward and is actively seeking new buyers.
According to industry sources, MBK has begun circulating teaser letters through its advisor, Morgan Stanley, to both domestic and international strategic investors as well as private equity firms. Once targeting a sale price of over KRW 2 trillion, MBK has now reduced its asking price to the mid-KRW 1 trillion range. A domestic private equity fund with previous experience in the golf sector is reportedly reviewing the opportunity.
The sale involves 100% ownership of Golfzon County. The company is currently held by Korea Golf Infrastructure Investment, a special purpose company (SPC) created by MBK. The SPC owns 54.83% in common shares and 3.54% in convertible preferred shares, while Golfzon Newdin Holdings retains the remaining 41.63%.
Golfzon County operates 20 courses across the country and holds a dominant position in the Korean golf market. Since MBK’s initial investment of KRW 114 billion in 2018 for a 50% stake, the firm has infused an additional KRW 288 billion through four rounds of capital increases. Under MBK’s stewardship, Golfzon County has expanded aggressively, acquiring two to three new courses annually. Recent additions include Lake Hills Suncheon and Orange Dunes GC, which was rebranded as Golfzon County Songdo in February.
Eighteen of the company's 20 courses are public and profitable, benefiting from a non-membership model that appeals to a broad customer base.
The company previously aimed to go public in 2022 to meet a listing obligation by May 2023 as per its agreement with MBK. Although it passed the preliminary IPO review, the plan was scrapped due to unfavorable market conditions and the expiration of its listing eligibility window. MBK then pursued a trade sale, initially seeking a valuation of around KRW 2 trillion, but failed to close a deal. In response to maturing acquisition debt, MBK refinanced approximately KRW 300 billion in 2024.
While Golfzon County's revenue increased from KRW 266.8 billion in 2021 to KRW 294.3 billion in 2024, its operating profit declined from KRW 104.8 billion to KRW 91.4 billion over the same period.
Despite a cooling investor appetite for golf course assets, MBK is positioning Golfzon County as a compelling investment. The firm highlights the company’s stronghold in the Seoul metropolitan area, fully automated IT-driven operations, and Korea’s stringent regulations on new golf course development as key selling points. Notably, recent bids for Jungbu Country Club reached a record-breaking valuation of more than KRW 11 billion per hole—indicating enduring interest at the high end of the market.
