1. AK Holdings’ 2025 Half-Year Results: What Happened?
AK Holdings recorded consolidated revenue of KRW 931.9 billion, operating loss of KRW 27.3 billion, and net loss of KRW 21.8 billion in the first half of 2025. While sales slightly increased, both operating and net income turned to deficits. Jeju Air’s substantial losses are identified as the main cause of the consolidated earnings decline.
2. Analyzing the Causes of the Sluggish Performance: Why These Results?
Despite the recovery in international travel demand, Jeju Air recorded a large deficit due to high oil prices, rising labor costs, and a high debt ratio (653%). Other business segments also showed poor performance due to the slowdown in the department store industry and the downturn in the real estate market.
3. AK Holdings Investment Strategy: So, What Should We Do?
Currently, a ‘conservative wait-and-see’ approach is necessary for investing in AK Holdings. Close monitoring of Jeju Air’s financial restructuring and stabilization of oil prices and exchange rates is crucial. In the short term, Jeju Air’s turnaround will be the key to investment decisions, while in the mid-to-long term, the strengthening competitiveness of subsidiaries and securing the group’s overall financial soundness are crucial.
4. Investor Action Plan: What to Do Right Now?
- Short-term investors: Closely monitor Jeju Air’s performance and financial restructuring progress, and continuously check related news and disclosures.
- Mid-to-long-term investors: Along with the possibility of Jeju Air’s turnaround, analyze the competitiveness and growth potential of subsidiaries such as AK Chemtech and AK Beauty, and establish an investment strategy from a long-term perspective.