Barunson Sells Hannam-dong Property for 4.7 Billion Won
Barunson announced on August 14, 2025, the sale of its land and building located in Hannam-dong, Seoul, for 4.7 billion won. This amount represents 10.06% of the company’s total assets. The proceeds from the sale are expected to be received in cash on September 12, 2025. The buyers are individual investors: Cho Hyun-sik, Cha Jin-young, Cho Jae-hyung, Cho Jae-wan, and Cho Jae-seo.
Purpose of Sale: Financial Restructuring and Liquidity Improvement
Barunson aims to improve its financial structure and secure cash liquidity through this sale. This decision reflects management’s commitment to addressing the ongoing capital impairment and debt burden. The secured funds are expected to be used to fuel the growth of the company’s beauty business.
Impact on Investors: Opportunities and Risks
While this sale is positive for short-term debt relief, there are also long-term risks to consider. The growth of the beauty business is encouraging, but the accumulated deficit of 114.6 billion won remains a significant challenge. Investors should also consider the potential loss of long-term asset value appreciation due to the property disposal and the ongoing struggles of the company’s existing business segments.
Investor Action Plan: Careful Monitoring and Analysis
Investors should closely monitor Barunson’s financial restructuring efforts and business performance. The efficient use of the secured funds, the continued growth of the beauty business, and the performance improvement of existing businesses will significantly impact the future stock price. The influence of macroeconomic variables should also be carefully considered.