1. What’s Happening with Busan Industry?

Busan Industry Co., Ltd. reported Q2 2025 revenue of KRW 25.5 billion, a decrease compared to the same period last year. The company also swung to an operating loss of KRW 1.3 billion, with a net loss of KRW 1.9 billion, painting a bleak picture of its current financial performance.

2. What’s Driving the Decline?

A confluence of factors, including a slowdown in the construction industry, rising raw material prices, and a high-interest rate environment, have contributed to the deterioration in profitability. The poor performance of subsidiaries, Tae Myung Industrial Co., Ltd. and TM Track System Co., Ltd., has significantly impacted the consolidated results.

3. What Should Investors Do?

Experts advise extreme caution when considering investments in Busan Industry Co., Ltd. Downward pressure on the stock price is likely to persist in the short term. Before making any investment decisions, it’s crucial to carefully analyze the company’s restructuring plans, strategies for improving subsidiary performance, and the potential for recovery in the construction market. While the company’s regional competitive advantage in the ready-mixed concrete sector is a positive factor, it’s unlikely to offset the current challenging business environment.

4. Key Investment Considerations

  • ▶ Potential for a prolonged downturn in the construction market and continued PF issues
  • ▶ Further deterioration in subsidiary performance
  • ▶ Debt management and plans for ensuring financial soundness
  • ▶ Litigation risks related to Tae Myung Industrial Co., Ltd.