Hankuk Paper swung to a net loss of 33.5 billion won last year. As paper demand slowed and cost pressures mounted, profitability in the core business weakened, and the recognition of asset impairment losses further worsened performance.
According to the Financial Supervisory Service's electronic disclosure system on the 15th, Hankuk Paper's 2025 consolidation-based revenue was 753.7 billion won, down 4.8% from a year earlier. Operating profit plunged more than 80% to 3.1 billion won from 19.3 billion won. Net profit swung from a 4.1 billion won surplus to a 33.5 billion won net loss.
The deterioration started with a slump in the core business. With the slowdown in paper demand continuing, cost pressures such as pulp prices and energy expense overlapped, sharply reducing operating profit. As revenue fell and expenses rose at the same time, profitability weakened rapidly.
On top of that came nonrecurring factors. The company recognized impairment losses of about 41.48893 billion won on property, plant and equipment in the package institutional sector, and additional impairments occurred in intangible assets. These impairment losses contributed to the net loss.
The impact of a nip accident at the Hyunpoong plant's paper machine No. 1 in November last year, which left a worker dead, was partly reflected. The plant was then ordered to partially suspend operations, which was lifted in December, allowing production to resume. The Hyunpoong plant generates about 185.5 billion won in annual revenue and is a core production facility for the company.
However, the impairment losses are interpreted as reflecting changes in equipment profitability and value outlook rather than being a single factor from the accident. The company said, "As impairment indicators were identified in the package institutional sector, we carried out an impairment test and recognized impairment losses."
A slowdown also appeared in operating indicators such as inventories. Total inventories fell from 151.7 billion won to 122.9 billion won. Inventory turnover, which indicates the speed at which inventory converts to revenue, declined from 5.16 times to 4.80 times, suggesting slower inventory management efficiency.
Multiple factors combined to weaken the financial structure. Total equity decreased from 441.7 billion won to 406.2 billion won, and retained earnings turned into a 27.7 billion won accumulated deficit due to the net loss. The asset scale also decreased from 755.1 billion won to 665 billion won. Current assets likewise fell from 384.6 billion won to 327.9 billion won, weakening short-term responsiveness.
Meanwhile, Hankuk Paper's share price remains in the 800-won range. As the low-priced stock trend continues, the market is also raising questions about the possibility of maintaining the listing. Starting in July, the government plans to apply "coin stocks" under 1,000 won as a delisting criterion.
The decline in the share price is seen to reduce the value of the owner family's equity and could affect future inheritance and gifting processes.
Hankuk Paper's parent company is Haesung Industrial. Chairman Dan Jae-wan, who leads Haesung Group, is 80 this year, and his eldest son, Vice Chairman Dan Woo-young, took the chair of the board last year and has moved to the forefront of management. Vice Chairman Dan is the second-largest shareholder with 17.19% of Haesung Industrial's equity, while Chairman Dan holds 18.05%.