Debt-laden Jinro has been in receivership since May 2003, but despite its financial misfortunes the company is seen as a major investment opportunity for food and drink companies seeking a strong foothold in Korea. The company has a 55 per cent share of the market for soju, Korea's most popular spirit.
According to press reports, eight Korean companies have submitted letters of intent to bid for Jinro: Doosan, CJ Corp, Hite Brewery, Muhak, Daesang, Taihan Electric Wire, Lotte Chilsung and Dongwon Enterprises. Most already have some food or drink operations, and would seek to generate synergies through the acquisition.
But such is the importance of Jinro's market share that the Korean firms face stiff opposition from a number of international companies, including three Japanese brewers, Kirin, Asahi and Suntory, which are thought to be keen to get their hands on Jinro's Japanese unit, one of the few parts of the business to have escaped relatively unscathed from the company's financial woes.
Other big hitters are thought to include Diageo and Allied Domecq, the world's biggest spirits companies, and a number of private equity groups.
The full list of bidders for Jinro, which is expected to fetch around Won1,500 to Won 3,000 billion, is due to be released later this week. Final bids for the company must be made by 30 March, with the company hoping to complete the eventual sale by the end of July.
Despite the fact that its main product, soju, is little known outside the Korean market, Jinro has long been courted by the international drinks companies. Indeed, it was once part of two high profile joint ventures - Jinro Coors in brewing and Jinro Ballantines in whisky.
But financial mismanagement and fraud led to the eventual collapse of the company, and the sale of its joint venture operations (to erstwhile partner Allied Domecq in the case of Jinro Ballantines and to Belgian brewing giant InBev in the case of Jinro Coors).
The likes of Diageo and Allied Domecq see clear advantages to getting their hands on Jinro's nationwide distribution network, not least because Korea is a major market for Scotch whisky (although the recent downturn in the Korean economy meant that sales in the first half of 2004 were well down on previous years, according to the Scotch Whisky Association).