[Edaily Reporter Han Jeon-jin ] BGF(027410)is reorganizing its corporate structure around three core business segments: retail, engineering plastics, and semiconductor materials. The plan is to simplify the corporate structure by integrating its sub-subsidiary, KNW Co., Ltd., as a direct subsidiary, thereby accelerating investment and decision-making in the semiconductor materials business.

On the 7th, BGF announced that it would acquire all 9,113,891 common shares of KNW Co., Ltd. (representing a 56.9% stake) held by its subsidiary, BGFecomaterials.

Upon completion of this transaction, the BGF Group will establish a three-business-division structure comprising distribution ( BGF Retail(282330)), engineering plastic materials ( BGFecomaterials(126600)), and semiconductor materials ( KNW Co., Ltd.(105330)). KNW Co., Ltd., which was previously a great-grand subsidiary of BGF, will become a direct subsidiary, while BGF Eco Specialty, which was a great-great-grand subsidiary, will become a great-grand subsidiary. Consequently, the corporate structure, which previously consisted of four tiers, will be simplified to three tiers.

Through this reorganization, BGF plans to enhance management efficiency in its semiconductor materials business and establish a system that enables strategic investments and rapid decision-making at the holding company level. BGF Eco Specialty, owned by KNW Co., Ltd., operates a semiconductor specialty gas manufacturing business and last month completed a plant in the Onsan National Industrial Complex in Ulsan capable of producing approximately 50,000 metric tons of anhydrous hydrofluoric acid annually.

BGFecomaterials will allocate the proceeds from the sale of its stake in KNW Co., Ltd. toward strengthening business competitiveness, improving its financial structure, and enhancing shareholder value. The company plans to secure the capacity to supply high-quality recycled materials in response to global environmental regulations and to boost the competitiveness of its engineering plastics business.

The company will also prepay its variable-rate loans to reduce cost burdens and is considering measures to enhance shareholder value, such as a tender offer using a portion of the proceeds from the sale. Separately, it plans to cancel all 842,699 shares of treasury stock it currently holds (approximately 1.3% of the total issued shares) next month.

A BGF official stated, “Through this corporate governance restructuring, we will lay the groundwork for strategically fostering future growth engines, establish a system of responsible management, and maximize the capabilities of all business divisions to enhance the competitiveness of the entire group.”