Korean Federation of Community Credit Cooperatives(KFCC)’s acquisition of M Capital

Lee & Ko provided legal advice to the Korean Federation of Community Credit Cooperatives (KFCC) in a transaction where KFCC acquired a 98.37% stake in M Capital, a specialized credit financial company engaged in lease financing (facility rental), installment financing, and new technology financing. The transaction was successfully completed on February 28, 2025.

This transaction is notable not only for its deal value amounting to approximately KRW 467 billion, but also because it involves the acquisition of a controlling stake in a company where KFCC had been indirectly investing as a Limited Partner, attracting significant market attention. Through this deal, KFCC is to diversify its business into specialized credit finance, while taking its first step toward becoming a comprehensive financial company.

In this transaction, Lee & Ko provided legal advice throughout the entire process, including legal due diligence, negotiations with the PEF GP/LP shareholders of the seller, various negotiations and the execution of the contract, corporate merger filing, and the closing of the transaction. Lee & Ko effectively analyzed the relevant legal issues and proposed efficient solutions, earning recognition for successfully advising on the transaction.