iQuest’s 6.5 Billion KRW Divestment: What’s Happening?

iQuest has decided to sell six units of land and buildings in Seoul to its subsidiary, Difocus, for 6.5 billion KRW. This represents 10.38% of the company’s total assets. A down payment of 650 million KRW was made on August 4th, with the remaining 5.85 billion KRW due on October 31st.

Why is the AI Investment Crucial?

iQuest plans to use the proceeds from the divestment to fuel its expansion into the AI sector. This strategic move is aimed at creating new growth engines, synergizing with existing subscription-based services, and enhancing competitiveness in the increasingly competitive ERP market. The company anticipates long-term growth through the adoption of AI technologies and service enhancements.

Impact of the Divestment: Short-Term vs. Long-Term

  • Short-term impact: Potential deterioration of financial stability indicators due to decreased tangible assets, temporary increase in profit, increased need for foreign exchange risk management.
  • Long-term impact: Potential for increased revenue and enhanced competitiveness if the AI venture is successful, anticipated synergy with existing services.

Investor Action Plan: What to Watch For

Investors should be mindful of short-term stock volatility and carefully consider the specifics of the AI business plan, the transparency of the fund utilization plan, and risk management measures. Continuous monitoring of future disclosures and market conditions is crucial.