1. What Happened at SecuLetter?

SecuLetter’s preliminary financial results for Q2 2025 are dismal. Revenue reached a mere ₩100 million, while operating and net income plunged to a substantial loss of ₩-1.8 billion each. These figures fall far short of even the most conservative market expectations.

2. Why This Crisis?

This decline is attributed to a combination of factors, including uncertainties surrounding the ‘network separation reorganization’ discussions and operational disruptions due to audit issues. Excessively high selling, general, and administrative expenses, as well as R&D costs relative to revenue, have further exacerbated the profit decline. The audit rejection has dealt a critical blow to the company’s transparency and credibility.

3. What’s Next for SecuLetter?

In the short term, the possibility of delisting is very high. Unless the audit rejection issue is resolved, a rebound in stock price is virtually impossible. In the medium to long term, if SecuLetter successfully addresses the audit issues, restores financial soundness, and establishes a transparent management system, there is a slim chance of recovery, albeit a very challenging one.

4. What Should Investors Do?

Currently, investing in SecuLetter carries extremely high risk. Investors should hold off on any investment until the fundamental issues of delisting risk and financial soundness are resolved. Careful monitoring of the company’s future actions is crucial.