KX Group has become the largest shareholder of KOSPI-listed Sunny Electronics after KX Asset and five affiliates reported holding 4,795,279 shares, or 13.5% of the company, as of Aug. 31. The stake surpasses the 8.58% held by CEO Cha Sang-kwon’s camp. The group disclosed management participation and said it would consult current management on executive appointments and dismissals, but capital-market observers largely view the mostly on-market and after-hours purchases as a potential hostile M&A effort. Sunny Electronics’ market capitalization was estimated at 60 billion to 70 billion won, while its first-half current assets totaled 60 billion won against liabilities of 2 billion won. Including financial instruments, cash-equivalent assets and bonds, immediately deployable funds reached about 80 billion won. The company has recorded no production since last year as it shifts from manufacturing quartz crystal oscillators toward importing and distributing overseas products. KX Group, led by Chairman Choi Sang-joo, has remained active in small- and mid-cap acquisitions, while industry observers expect companies with weak insider ownership and strong balance sheets to remain vulnerable to stake-building campaigns.