Aekyung Group said on the 11th it is preparing a full-fledged rebound through intensive financial restructuring and a reorganization of its business portfolio. Last year, through "selection and concentration," the performance of major affiliates in aviation, retail, and chemicals recovered.
Jeju Air delivered the most standout results. It posted an operating profit of 18.6 billion won in the fourth quarter last year, returning to the black after five quarters. Despite a strong dollar and oversupply, it recorded a rebound in earnings. Among low-cost carriers (LCCs), Jeju Air was the only one to post a profit in the same period.
Passenger demand is also clearly recovering. In January, Jeju Air carried 1.17 million passengers, up 33.5% from a year earlier. Aekyung Group expects strong results to continue in the first quarter this year.
An increased share of next-generation aircraft is also a key driver of improved results. In the fourth quarter last year, it introduced two next-generation B737-8s (purchased) and returned one aging aircraft, lowering the average fleet age. The new planes are fuel-efficient, so fuel costs are expected to decline. Cumulative fuel costs in the first through third quarters of 2025 decreased about 19% from a year earlier.
A Jeju Air official said, "This year we plan to introduce seven additional next-generation aircraft and reduce aging aircraft," adding, "We will enhance operational efficiency by strengthening organizational capabilities, and expand investment in strengthening our safety management system and improving key flight infrastructure."
AK Plaza and the Mapo Aekyung Town retail institutional sector also showed results from restructuring. Through streamlining department store operations and improving the expense structure, it improved profits by 14.8 billion won from a year earlier last year and recorded a rebound.
AK Plaza plans to strengthen competitiveness by focusing on core stores. It will renew the merchandise mix (MD) at the Suwon and Bundang stores, and pursue operational streamlining in marketing and customer programs as well as improvements in profitability. In the case of the Bundang store, with a nearby competing department store ceasing operations, it also expects a more favorable competitive environment and a reshuffling of demand within the commercial district.
Aekyung Chemical is focusing on transforming its business structure and laying the groundwork for new businesses to secure mid- to long-term growth engines. This year, it plans to begin full-scale mass production and sales of new, high-growth products such as TPC (terephthaloyl chloride), a key raw material for aramid fiber, and hard carbon for secondary battery anodes.
It will complete domestic production facilities for TPC, which had relied entirely on imports, in March and then mass-produce 15,000 tons a year. It has also developed biomass-based hard carbon for sodium-ion batteries and has continuously improved performance. To support a customer's large-scale pilot test, it is expanding facilities at the Jeonju plant to an annual capacity of 1,300 tons. It plans to expand in stages to 20,000 tons in line with market demand.
In addition, Aekyung Chemical acquired a surfactant production plant in Indonesia last year. Based on a production system connecting the Cheongyang plant in Korea with Vietnam and Indonesia, it plans to operate in line with regional market characteristics. In particular, with a large-scale national project being promoted by the Vietnamese government this year, the utilization rate and revenue of the local plant are expected to improve.
An Aekyung Group official said, "Jeju Air and the retail institutional sector have entered a recovery phase through intensive restructuring and streamlining, while Aekyung Chemical is laying a technology foundation for future growth," adding, "By selling noncore asset such as ThermeDen, we will actively respond to the reshaping of the aviation market and accelerate the push into new chemical businesses."