Recipe Group, Parent of 'Satur', Absorbs and Merges Alterego, Operator of 'After Lay'

Fashion enterprise Recipe Group, which operates popular fashion brands such as 'SATUR' and 'MOONSUN', will absorb and merge its affiliate Alterego, which operates the brand 'AFTER LAY'. According to a public disclosure on July 14, 2026, Recipe Group made the final decision through a general shareholders' meeting resolution on July 7 to absorb Alterego in a merger without new capital issuance. The surviving company is Recipe Group and the dissolved company is Alterego, with a merger ratio of 1 to 0. Since Recipe Group holds a 100% stake in the merged entity Alterego and will not issue new shares upon the merger, there is no possibility of appraisal rights being exercised.

This merger is analyzed as a measure to shake off the financial burden of Alterego, which has fallen into a state of complete capital impairment, and to maximize management efficiency. The merged entity, Alterego, showed a severe complete capital impairment state with total assets of 778 million won, total liabilities of 984 million won, and total equity amounting to -207 million won based on the financial statements at the end of 2025. Sales for the corresponding business year also stood at 106 million won and it recorded a net loss of 15 million won, suffering from management difficulties.

On the other hand, Recipe Group, which is growing rapidly led by its representative brand 'Satur', is maintaining solid performance, recording annual sales of approximately 70,060.23 million won and a net income of approximately 2,802.38 million won as of 2025. An official from Recipe Group explained that the purpose of the merger is to unify the organization and business operation system, strengthen business competitiveness through the efficient operation and integration of resources, and enhance corporate value. The period for submission of creditor objections is until August 9, the scheduled date of the merger is August 9, and the merger registration date is August 10.