Sale
Overview
A sale (매각, sale) refers to the legal and economic act of transferring property or rights to another party in exchange for compensation. It appears in various forms, such as corporate asset sales, real estate sales, and business division sales, and is used as a major means of securing liquidity and restructuring in capital markets. A sale is conducted through a contract between the seller and the buyer, and its subject matter ranges widely, including tangible assets, intangible assets, stocks, and bonds.
Main Content
Types of Sales
Sales are broadly divided into asset sales and stock sales. An asset sale involves directly selling individual assets or business divisions, allowing the buyer to acquire specific assets without assuming liabilities. In contrast, a stock sale involves selling the equity of an entire corporation, where the buyer assumes all assets and liabilities of the entity. Additionally, there are specialized sales for specific asset classes, such as real estate sales, intellectual property sales, and debt sales.
Sale Procedure
The general sale procedure is as follows. First, due diligence is conducted to assess the value of the sale target. Second, the terms of the sale are negotiated, and a memorandum of understanding (MOU) is signed. Third, the final contract is executed, payment is made, and ownership is transferred. In the case of corporate sales, the process is similar to mergers and acquisitions (M&A), utilizing methods such as tender offers, competitive bidding, and negotiated sales.
Economic Effects of Sales
Sales contribute to improving a company's financial structure. By selling underperforming assets or non-core businesses to secure cash, a company can repay debt or use the funds for new investments. Additionally, through sales, companies can reorganize their business portfolios and focus on core competencies. Sale proceeds may also be used to enhance shareholder value through dividends, share buybacks, or research and development investments.
Laws and Regulations Related to Sales
Sales are subject to various laws, including the Commercial Act, the Capital Markets Act, and the Fair Trade Act. In particular, large-scale asset sales require a special resolution at a shareholders' meeting, and listed companies have disclosure obligations. From an antitrust perspective, sales that could strengthen market dominance may be subject to review by the Fair Trade Commission. Additionally, sales involving foreign investment are governed by the Foreign Investment Promotion Act.
Sale Examples
Notable sale examples include Samsung Group's sale of non-core businesses in 2015, LG Group's sales for business restructuring in 2020, and SK Group's asset securitization sales in 2023. Among global companies, GE's sale of its aircraft leasing business in 2021 and IBM's sale of some business divisions in 2022 have drawn attention.
Recent Trends
As of 2024-2025, the sale market remains active despite global interest rate hikes and economic uncertainty. In particular, companies are actively pursuing asset sales to reduce debt burdens in a high-interest-rate environment. In 2024, sales of non-core businesses by technology companies were prominent, and in 2025, sales and acquisitions related to eco-friendly businesses are expected to increase due to the strengthening of ESG management. Additionally, with the expanded participation of private equity funds (PEFs) in sales, corporate divestitures and restructuring sales are on the rise. The acceleration of digital transformation is also increasing sales of IT assets and data-related assets.
Related Topics
- [[Mergers and Acquisitions]]
- [[Asset Securitization]]
- [[Corporate Restructuring]]
- [[Real Estate Transactions]]
- [[M&A]]
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