Korea Stock Market Insights

Tag: Webtoon

  • Global Tax Free IR: Soaring Tax Refunds, but Can They Overcome Struggling Businesses?

    Global Tax Free IR: Soaring Tax Refunds, but Can They Overcome Struggling Businesses? 대표 차트 이미지

    Global Tax Free IR: Key Takeaways

    Global Tax Free held an IR meeting for institutional investors on August 28th. The key focus was on the continued strong growth of the tax refund business and the turnaround strategies for the struggling cosmetics and webtoon businesses.

    1. Tax Refund Business: Continued Growth

    Driven by the increasing number of inbound tourists, the tax refund business recorded an impressive 45.3% growth year-on-year. The expansion of the immediate refund system and the increase in the limit also contributed positively.

    2. Cosmetics & Webtoon Businesses: Struggling

    On the other hand, the cosmetics business faced a setback with a 54.4% decrease in sales due to intensified market competition and changing consumer trends. The webtoon business also struggled, recording a 53.2% decline due to a base effect and increased competition.

    3. Key IR Message: Turnaround Potential

    Global Tax Free attempted to reassure investors by presenting turnaround strategies for the struggling businesses. However, the market’s response remains to be seen. Concrete efforts to generate tangible results and secure future growth engines are essential for a genuine turnaround.

    Investor Action Plan

    If you’re considering investing in Global Tax Free, carefully analyze the information presented during the IR meeting and critically evaluate the company’s future growth potential. The continued growth of the core business and the turnaround of the struggling businesses are key factors in making investment decisions. Also, carefully consider changes in the macroeconomic environment and risk factors.

    What are the main businesses of Global Tax Free?

    Global Tax Free’s main businesses are tax refunds for foreign tourists, cosmetics, and webtoons.

    How is Global Tax Free’s recent performance?

    The tax refund business is performing well, but the cosmetics and webtoon businesses are struggling.

    What are the key takeaways from this IR meeting?

    The key takeaways are the continued growth of the tax refund business and the presentation of turnaround strategies for the struggling businesses.

    Global Tax Free IR: Soaring Tax Refunds, but Can They Overcome Struggling Businesses? 관련 이미지
    Global Tax Free IR: Soaring Tax Refunds, but Can They Overcome Struggling Businesses? 관련 이미지

  • Corpus Korea’s Warrant Exercise: Impact on Stock Price and Financial Structure

    1. What Happened? Corpus Korea Announces Warrant Exercise

    On August 22, 2025, Corpus Korea announced the exercise of warrants for 555,114 shares (1.43% of market capitalization). The conversion date is scheduled for September 4th, with a conversion price of ₩1,261.

    2. Why? Seeking Financial Restructuring Amidst Poor Performance

    Corpus Korea has recently experienced declining performance due to intensified competition in the content market and the global economic slowdown. The warrant exercise is interpreted as an attempt to raise capital and improve the debt-to-equity ratio. It is also likely aimed at securing funds for investments in new businesses such as short-form platforms and webtoons/web novels.

    3. What’s the Impact? Stock Dilution vs. Financial Improvement

    • Stock Dilution Concerns: With the current stock price (₩1,361) higher than the conversion price (₩1,261), there are concerns about potential stock dilution due to the new share issuance.
    • Expected Financial Improvement: The issuance of new shares will increase equity and decrease debt, potentially improving financial soundness. It is also expected to alleviate financial burdens related to convertible bonds.
    • Market Sentiment: While financial restructuring is positive, concerns about stock dilution could negatively impact market sentiment. Continued poor performance could exacerbate these negative effects.

    4. Investor Action Plan: Watch These Key Variables

    Investors should carefully consider the following factors:

    • Second-half earnings improvement
    • Performance of new businesses (short-form, webtoons)
    • Changes in financial soundness (liquidity, debt ratio)
    • Impact of macroeconomic factors and exchange rates

    While the warrant exercise may offer short-term financial improvements, the long-term stock performance ultimately depends on the company’s business turnaround.

    What is a warrant?

    A warrant is a right to purchase shares of stock at a predetermined price (exercise price) within a specific timeframe.

    Does exercising warrants always negatively impact stock prices?

    Not necessarily. If the company has strong fundamentals and growth potential, raising capital can lead to business expansion and positively impact stock prices in the long run.

    What is the investment outlook for Corpus Korea?

    Currently, the investment risk is high due to poor performance and financial uncertainty. Closely monitor future earnings improvement, new business performance, and changes in financial soundness.

  • Soosung Webtoon Turns Profit with Webtoon Business, But Going Concern Uncertainty Remains… Investment Strategy Analysis

    1. What Happened at Soosung Webtoon?

    Soosung Webtoon recorded remarkable growth in the first half of 2025 through its webtoon platform ‘Toomics’. Achieving KRW 62.8 billion in revenue, it showed a phenomenal growth rate of 131% year-on-year, and operating profit also turned positive, reaching KRW 6 billion.

    2. The Secret to Profitability? The Power of Webtoons!

    The key to this success is the webtoon business. Toomics contributed 57.54% of total revenue, driving the growth. The high growth of the domestic and international webtoon markets, overseas expansion, and OSMU strategy have had a positive impact.

    3. Nevertheless… Going Concern Uncertainty

    However, the future is not all rosy. Large-scale fundraising for the webtoon business expansion has increased the debt ratio, and net losses are still continuing. In particular, the ‘going concern uncertainty’ mentioned in the audit report is causing significant concern for investors.

    4. Action Plan for Investors

    • Monitor Webtoon Business Profitability: Keep an eye on Toomics platform competitiveness, new IP development, and the success of the OSMU strategy.
    • Check Financial Soundness: Review debt management plans, asset efficiency improvements, and other efforts to strengthen the financial structure.
    • Consider Macroeconomic Variables: Analyze the impact of fluctuations in interest rates, exchange rates, oil prices, and other macroeconomic indicators.

    Soosung Webtoon shows high growth potential in the webtoon market, but securing financial stability is the top priority. Before making investment decisions, it’s crucial to carefully examine the risk factors and improvement plans.

    What was Soosung Webtoon’s revenue in the first half of 2025?

    KRW 62.8 billion, a 131% increase year-on-year.

    What are Soosung Webtoon’s main business segments?

    Webtoons, logistics, and semiconductors.

    What is the biggest risk factor when investing in Soosung Webtoon?

    Going concern uncertainty and high debt ratio.

  • Topco Media Turns Profitable in Q2 2025: Is This Webtoon Company Ready to Take Off?

    1. Topco Media Q2 Earnings: A Successful Turnaround

    Topco Media recorded sales of KRW 14.8 billion and operating profit of KRW 2.9 billion in Q2 2025, achieving a successful turnaround. This marks a significant improvement compared to the KRW 2.3 billion operating loss in Q1. Half-year sales reached KRW 20.5 billion, showing year-over-year growth.

    2. Toptoon Merger Synergy: Internalizing the Content Value Chain

    The completion of the Toptoon merger in April 2025 is a key growth driver for Topco Media. By internalizing the entire process from content creation to distribution, they’ve increased business efficiency. The platform’s sales contribution of 61.6% is also a positive sign.

    3. Accelerating Global Expansion: Becoming a Global Webtoon Platform

    Topco Media operates webtoon platforms in global markets including South Korea, Japan, Taiwan, and North America. The high growth potential of the Japanese market, in particular, is noteworthy. However, the volatility of the KRW/USD and KRW/EUR exchange rates requires ongoing monitoring.

    4. Challenges Ahead: Net Loss and Increasing Debt Ratio

    Despite positive factors, the half-year net loss of KRW 24.8 billion and the sharp increase in the debt-to-equity ratio to 85.08% are concerns for investors. While these may be temporary due to merger costs and increased investment, securing future profitability and financial soundness is crucial.

    5. Action Plan for Investors: A Cautious Approach with a Long-Term Perspective

    Topco Media has long-term growth potential. However, the current high debt ratio and net loss pose risks. Investors should carefully monitor the effects of the merger synergy, performance in overseas markets, and improvements in financial structure before making investment decisions.

    Q: What are the key takeaways from Topco Media’s Q2 2025 earnings?

    A: Topco Media achieved a turnaround in Q2 2025, reporting KRW 14.8 billion in sales and KRW 2.9 billion in operating profit. This is a positive shift from the operating loss reported in Q1.

    Q: How has the Toptoon merger impacted Topco Media?

    A: The Toptoon merger has allowed Topco Media to internalize its content value chain, improving efficiency and increasing the platform’s sales contribution. This has positively influenced the Q2 turnaround.

    Q: What are the key risks to consider when investing in Topco Media?

    A: The continued net loss and the significant increase in the debt-to-equity ratio are key risks to consider. While these may be temporary due to merger costs and investments, investors should monitor the company’s profitability and financial health.

  • YLAB’s H1 2025 Earnings: A Balancing Act Between Growth and Profitability

    1. YLAB’s H1 2025 Performance: A Mixed Bag

    YLAB recorded revenue of KRW 11.5 billion, an operating loss of KRW 2 billion, and a net loss of KRW 1.9 billion in Q2 2025. While revenue increased year-over-year, operating losses persisted. Growth in the video production segment, driven by the ‘Study Group’ drama and Netflix contracts, is positive, but high production costs are hindering profitability.

    2. Analyzing the Causes of Underperformance: Rising Production Costs and Eroding Profitability

    Increased production costs due to the expansion of the video production segment are the primary cause. Despite steady growth in the webtoon segment, high initial investment costs in video production are impacting overall profitability.

    3. YLAB’s Future: Growth Drivers and Risks

    YLAB is pursuing global market expansion through AI solution development, the establishment of a Vietnamese subsidiary, and collaboration with LINE WEBTOON STUDIO. The company is also focusing on expanding its OSMU business. These efforts could serve as future growth drivers, but it will take time to see tangible results. Accumulated deficit remains a significant challenge.

    4. Action Plan for Investors: Prudent Approach and Continuous Monitoring

    Short-term volatility is expected, so a cautious approach is necessary. Long-term, investors should continuously monitor profitability improvement efforts and the performance of new businesses. Pay close attention to cost structure improvements, profitability enhancement measures, and the visibility of results from AI solutions and the OSMU business.

    What were YLAB’s Q2 2025 financial results?

    YLAB reported KRW 11.5 billion in revenue, KRW 2 billion operating loss, and KRW 1.9 billion net loss.

    What are YLAB’s main business segments?

    Webtoon production and video production are YLAB’s primary business segments.

    What are YLAB’s future growth drivers?

    AI solution development, global market expansion, and OSMU business expansion are key growth drivers.

  • Kidadlistudio H1 2025 Earnings Analysis: Return to Profitability Driven by Webtoon Growth, But MD & Video Businesses Remain Sluggish

    1. Kidadlistudio H1 2025 Performance: What Happened?

    Kidadlistudio surpassed ₩100 billion in consolidated revenue in the first half of 2025, achieving a return to profitability. The webtoon business maintained strong growth, recording ₩82.7 billion in revenue, driven by increased overseas sales. Operating profit reached ₩2.39 billion, and net income was ₩2.56 billion, marking a significant improvement in profitability.

    2. Drivers of Performance Change: Why These Results?

    The consistent growth of the webtoon business and cost optimization efforts are considered the primary drivers of the return to profitability. However, the MD business (₩10.8 billion) and video business (₩3.7 billion) continued to struggle, with declining revenue compared to the same period last year. Furthermore, a significant increase in financial assets (₩51 billion) has also increased investment risk.

    3. Future Outlook and Investment Strategy: What’s Next?

    While Kidadlistudio has entered a positive recovery phase, challenges remain, including balancing the business portfolio, managing investment risk, and ensuring consistent management strategy. Strengthening the competitiveness of the core webtoon business and improving the profitability of the sluggish business segments are crucial tasks. A flexible overseas business strategy considering macroeconomic volatility is also essential.

    4. Action Plan for Investors: What Should Investors Do?

    • Focus on core business (webtoon) competitiveness strengthening and IP acquisition.
    • Monitor profitability improvement strategies for MD and video businesses.
    • Review the status of financial asset investment risk management.
    • Observe changes in management strategy following management changes.
    • Continuously monitor changes in corporate fundamentals through future disclosures and earnings announcements.

    Frequently Asked Questions

    What was Kidadlistudio’s core business in H1 2025?

    The core business for Kidadlistudio in the first half of 2025 was the webtoon business, which drove overall performance improvement with ₩82.7 billion in revenue, fueled by increased overseas sales.

    What are the current challenges facing Kidadlistudio?

    Kidadlistudio’s current challenges include sluggish MD and video businesses, increased investment risk from financial assets, and uncertainty due to management changes.

    What should investors consider when investing in Kidadlistudio?

    Investors should consider core business competitiveness, profitability improvement strategies for struggling businesses, financial asset risk management status, management strategy changes due to management turnover, and macroeconomic volatility.

  • Fingerstory’s Q2 2025 Earnings Disappoint: Webtoon Market Competition Intensifies

    1. Fingerstory’s Q2 2025 Performance: Growth Engine Stalls

    Fingerstory’s revenue for the first half of 2025 reached 8.54 billion KRW, a 6.2% decrease compared to the same period last year. Operating profit also declined by 33% to 440 million KRW. The slump in its core webtoon and web novel businesses is the primary driver of this underperformance. While a one-off financial gain boosted net income, the underlying profitability remains a concern.

    2. Reasons for the Decline: Intensified Competition and Weakening Growth Drivers

    • Intensifying Webtoon Market Competition: Fingerstory is struggling against dominant players like Naver and Kakao, facing fierce competition for both readers and creators.
    • Limited IP Portfolio and Utilization: The company’s current IP portfolio of 15 titles struggles to compete, and efforts to monetize through secondary businesses are lacking.
    • New Business Uncertainties: Fingerstory’s expansion into cosmetics, exhibitions, and VR/AR content remains uncertain, with limited demonstrable success thus far.

    3. Investment Implications: Strengthening Core Competencies is Crucial

    Fingerstory is at a critical juncture. Investors should pay close attention to the following:

    • Strengthening Core Business Competitiveness: The company must focus on acquiring new IPs, improving platform user experience, and securing new content to retain existing users and attract new ones.
    • Concrete Plans and Tangible Results for New Businesses: Fingerstory needs to outline concrete investment plans and roadmaps for its new businesses, demonstrating tangible progress and potential for future profitability.
    • Maintaining Financial Health and Risk Management: Securing stable cash flow and managing risks associated with convertible bonds are essential for long-term stability.

    4. Action Plan for Investors

    Improving short-term profitability and strengthening core business competitiveness are paramount. Investors should closely monitor the company’s strategic shifts and performance, exercising caution and a long-term perspective when making investment decisions.

    What is Fingerstory’s main business?

    Fingerstory operates digital content platforms like ‘Mootoon’ and ‘Qtoon,’ offering webtoons, web novels, and other digital content.

    How did Fingerstory perform in the first half of 2025?

    Revenue declined by 6.2% year-on-year to 8.54 billion KRW, and operating profit fell by 33% to 440 million KRW.

    What is the outlook for Fingerstory?

    Fingerstory faces challenges due to intensifying competition and uncertainties surrounding its new businesses. The company’s future prospects hinge on its ability to strengthen its core competencies and generate tangible results from its new ventures.

  • Soosung Webtoon Turns Profitable in Q2 2025: Is This Sustainable Growth?

    1. Soosung Webtoon’s Q2 Results: Achieving Profitability

    Soosung Webtoon reported revenue of 32 billion KRW, operating profit of 3.1 billion KRW, and net profit of 100 million KRW in Q2 2025, marking a successful return to profitability. Revenue increased by 3.6% and operating profit by 6.9% compared to the previous quarter. The return to net profit is particularly encouraging, raising expectations for improved financial health.

    2. Drivers of Profitability: Steady Growth of the Webtoon Business

    The primary driver of this turnaround is the steady growth of the webtoon business. Since acquiring Toomics, Soosung Webtoon has experienced growth through increasing platform revenue and its IP utilization strategy. Currently, four webtoons are in development for drama adaptations, and further revenue generation through the OSMU strategy is anticipated.

    3. Investment Considerations: Financial Risks and Increased Competition

    Despite the positive results, investors should remain cautious of financial risks such as high debt-to-equity ratio and liquidity issues. The intensifying competition in both domestic and international webtoon markets could also hinder Soosung Webtoon’s growth.

    4. Investment Strategy: Cautious Optimism, Monitor Financial Improvements

    Soosung Webtoon holds growth potential within the expanding webtoon market, but the company faces the challenge of securing financial stability. Investors should monitor future financial statements for signs of debt reduction and capital reinforcement. It is also crucial to observe the company’s strategies for strengthening IP competitiveness and improving profitability amidst intensifying competition.

    What were Soosung Webtoon’s Q2 2025 results?

    Soosung Webtoon reported revenue of 32 billion KRW, operating profit of 3.1 billion KRW, and net profit of 100 million KRW in Q2 2025.

    What is Soosung Webtoon’s main business?

    Soosung Webtoon’s primary business is operating a webtoon platform and producing webtoon IPs.

    What should investors consider when evaluating Soosung Webtoon?

    Investors should be mindful of financial risks like high debt-to-equity ratio and liquidity issues, as well as the intensifying competition in the webtoon market.

  • Milli’s Library Stock Forecast: Is the Wobbly Growth a Buying Opportunity?

    1. What’s Happening with Milli’s Library?

    Milli’s Library recorded sales of KRW 40.69 billion, operating profit of KRW 4.7 billion, and net profit of KRW 3.8 billion in the first half of 2025. While operating and net profit exceeded market expectations, revenue fell slightly short. The company maintains robust growth while securing new growth engines such as expansion into the webtoon/web novel market and AI technology adoption.

    2. What’s Driving Milli’s Library’s Growth?

    • Overwhelming brand awareness and rich content
    • B2BC channel growth leveraging KT Group synergy
    • AI-based service enhancements and improved user experience
    • Business diversification through expansion into the webtoon/web novel market

    3. What’s the Future Hold for Milli’s Library?

    Despite the positives, investors should be wary of several risk factors.

    • Low revenue share outside of e-book subscriptions
    • Potential subscriber churn due to price increases
    • Ongoing legal risks
    • Dependence on major customers

    4. What Should Investors Do?

    Milli’s Library presents both growth potential and risks. Investors should carefully consider the following factors when making investment decisions.

    • Actual revenue contribution from the webtoon/web novel business
    • Impact of price increases on subscriber numbers and ARPU
    • Future developments of legal risks
    • Cost efficiency management

    Frequently Asked Questions

    What is Milli’s Library’s main business?

    Milli’s Library’s main business is its e-book subscription service, and it recently expanded into the webtoon/web novel market.

    What should investors be aware of when investing in Milli’s Library?

    Investors should consider potential subscriber churn due to price increases, legal risks, and low revenue share outside of e-book subscriptions.

    What is the outlook for Milli’s Library?

    While there is growth momentum through AI technology adoption and expansion into the webtoon/web novel market, investors need to carefully monitor the risk factors.

  • NHN Announces 3-Year Shareholder Return Policy: Investment Strategy and Outlook

    1. NHN’s Shareholder Return Policy: What’s Changing?

    From 2026 to 2028, NHN plans to return approximately 15% of its consolidated EBITDA to shareholders. The core components are annual dividend payments exceeding the previous year’s amount and the cancellation of at least 50% of newly acquired treasury shares.

    2. Why Announce the Shareholder Return Policy Now?

    NHN has recently faced challenges, including declining sales and a net loss. The announcement of the shareholder return policy can be interpreted as a strategy to improve investor sentiment and stabilize stock prices. It can also be seen as a stepping stone to attract investment for securing long-term growth engines.

    3. NHN’s Current Business and Future Outlook

    • Games: NHN is expected to secure growth momentum through the performance of its mobile games based on overseas IPs and the release of new titles.
    • Payments and Advertising: NHN is expected to strengthen its competitiveness in the online/offline payment market through the expansion of PAYCO users and the incorporation of NHN KCP.
    • Cloud: The cloud business has high growth potential through expansion in the public and private sectors and the pursuit of new businesses such as AI data centers.
    • Commerce and Webtoons: NHN is expected to seek further growth through business diversification in a growing market environment.

    4. Action Plan for Investors

    This shareholder return policy can act as a short-term momentum for stock price increases. However, from a long-term investment perspective, it is essential to continuously monitor the growth of NHN’s core businesses and its profitability improvement trend. In particular, attention should be paid to the performance of the games, payments, and cloud businesses, as well as changes in the market’s competitive landscape.

    When will NHN’s shareholder return policy be implemented?

    The three-year shareholder return policy will be implemented from 2026 to 2028.

    What are the key components of the shareholder return policy?

    NHN plans to use approximately 15% of its consolidated EBITDA to pay dividends that exceed the previous year’s amount annually and cancel at least 50% of newly acquired treasury shares.

    What is the outlook for NHN’s stock price?

    While the announcement of the shareholder return policy can have a positive impact on the stock price in the short term, the long-term outlook depends on NHN’s business performance and improvement in profitability.