[News Space=Reporter seungwon lee] Global Sae-A Co., Ltd. (CEO Kim Ki-myung) reported 2025 operating revenue of 179 billion KRW, a 47.9% increase from the previous year. Operating profit surged by 101.1% to 133 billion KRW, and net profit skyrocketed by 128.3% to 107.5 billion KRW.

However, behind these figures, a serious crack in the company's financial structure is hidden. While 88.1% of operating revenue comes from 'paper profits' (equity method gains), actual cash flow from operating activities worsened to -23.2 billion KRW. With short-term borrowings surging by 52.5% and the current ratio plummeting to 4.2%, the company’s financial health is deteriorating. This holding company, 100% owned by the owner family, keeps 573.8 billion KRW in retained earnings internally while increasing risks through massive payment guarantees for subsidiaries and collateralization of core assets.

Profit Structure: Dependence on 'Paper Profits'

According to the audit report (Samil PwC, April 2, 2026), Global Sae-A is a pure holding company with 100% ownership by Chairman Kim Woong-ki and related parties. Of the 179 billion KRW in operating revenue, 157.6 billion KRW (88.1%) consists of equity method gains, with 156.1 billion KRW coming from Ssangyong E&C alone. This means the performance of Global Sae-A is entirely dependent on the earnings volatility of Ssangyong E&C.

The problem is that equity method gains are book profits, not actual cash inflows. Operating cash flow for 2025 was -23.2 billion KRW, meaning that while the company recorded a net profit of 107.5 billion KRW, cash was actually leaking out of the company.

Debt Bomb: 630 Billion KRW in Total Debt

Global Sae-A’s debt structure is alarming. Total debt, including short-term borrowings (281.3 billion KRW) and debt maturing within one year, amounts to 484.3 billion KRW. Total borrowings, including long-term debt, reach approximately 630 billion KRW.

The annual interest expense is 359 billion KRW, which far exceeds the 'cash-based operating revenue' of 21.4 billion KRW. The company relies heavily on loans from major financial institutions like Shinhan Bank, KDB, and Hana Bank, and it has significantly increased borrowing from its subsidiary, Sae-A Trading (84.4 billion KRW). The audit report explicitly states that the company’s tangible assets and investment shares are provided as collateral for these loans.

The Shock of a 4.2% Current Ratio

While the debt-to-equity ratio appears healthy at 77.2% due to land revaluation (total equity of 1.12 trillion KRW), the current ratio is a shocking 4.2%. With current assets of only 24.2 billion KRW against current liabilities of 578.3 billion KRW, the company's short-term solvency is extremely weak. 98.8% of assets are locked in non-current assets like land and buildings.

Payment Guarantees & Collateral Risks

Global Sae-A provides payment guarantees for the borrowings of six subsidiaries, including Sae-A Trading. Total payment guarantee liabilities increased by 18.6% to 47.2 billion KRW. Furthermore, all shares of Ssangyong E&C held by Global Sae-A are provided as collateral to KDB and others. If Ssangyong E&C’s management deteriorates, Global Sae-A could lose these core collateralized assets.

Retained Earnings & Dividends

Retained earnings reached 564.5 billion KRW by the end of 2025. However, there were no dividends paid, which is typical for a company 100% owned by the owner family, as they keep massive profits within the company rather than distributing them to shareholders.

Professional Analysis

A corporate finance expert pointed out, "Global Sae-A’s 107.5 billion KRW net profit is 'accounting magic' via the equity method, while the naked truth is a -23.2 billion KRW operating cash flow. With 484.3 billion KRW in financial debt maturing within a year and only 24.2 billion KRW in current assets, the 4.2% current ratio is effectively a 'liquidity panic'."

The expert added, "In a structure where annual interest expenses of 35.9 billion KRW far exceed actual cash revenue of 21.4 billion KRW, the company is fully exposed to rollover risk. The most painful vulnerability is the governance risk where a holding company, owned 100% by the owner family, keeps dividends at zero while entangling its subsidiaries in a web of asset collateral and payment guarantees."

Global Sae-A responded, "As a holding company, the interpretation of lack of cash-generating ability and equity method gains as 'paper profit' is a misunderstanding. Regarding the increase in payment guarantee liabilities, it is mostly related to Sae-A STX En-Tech, which is currently undergoing liquidation, and not related to Ssangyong E&C."