[News Space=Reporter seungwon lee] It was revealed that Hansung FI (CEO Kim Young-cheol), which operates 'Taylor Made Apparel', 'Lenoma Golf', 'All For You', and 'O'Neill', saw its operating profit and net profit plummet by nearly 70% last year.

Even in this dire business situation, dividends amounted to 12 billion won over the past three years. Dividends were paid out in the amount of 4 billion won in 2021, 5 billion won in 2022, and 3 billion won in 2023. Hansung FI is effectively a family business, with CEO Kim Young-cheol owning 50% and Kim Young-doo and other special affiliates owning 50%.

According to the Financial Supervisory Service’s electronic disclosure system on the 22nd, Hansung FI’s sales last year were found to have decreased by 7% from the previous year (KRW 237.9 billion) to KRW 221.2 billion. While sales decreased slightly, operating profit and net profit for the period plunged by 66% and 65%, respectively. 

In particular, qualitative indicators such as operating profit and net profit have fallen significantly over the past four years compared to the previous period. It has been steadily decreasing from KRW 36.8 billion in 2020, KRW 30.2 billion in 2021, and KRW 14.1 billion in 2022, and finally fell to a single digit of KRW 4.8 billion last year, a 66% drop from the previous year.

Net income also recorded KRW 25.4 billion in 2020, KRW 20.5 billion in 2021, and KRW 10.4 billion in 2022, but last year it only recorded KRW 3.7 billion, a 65% decrease from the previous year.

In particular, the number of pending lawsuits reached 8. The company filed 5 lawsuits and was sued in 3 cases, and the final outcome of each lawsuit cannot be predicted as of the end of the reporting period.

In addition, short-term borrowings amount to 11.5 billion won, long-term borrowings amount to 28.2 billion won, and when combined, short-term and long-term borrowings amount to 39.7 billion won, approaching 40 billion won. This is 10 times the operating profit and net profit. In the financial industry, an increase in borrowings can undermine financial stability, so it is interpreted as an 'investment warning light.'

The assessed value of the land owned by Hansung FI was a whopping 44.7 billion won. The actual market price is estimated to be enormous.

Last year, 12.6 billion won was spent on salaries, 4.9 billion won on advertising and publicity, and 2.7 billion won on sales promotion. 580 million won was spent on entertainment.

Hansung FI has acquired and registered the trademarks of Renoma and Giovanni Valentino, and is signing royalty contracts with other domestic companies. Currently, approximately KRW 1.6 billion of the minimum royalties received in relation to the royalty contracts have been recorded as unearned revenue.

When contacted about the above article, a Hansung FI representative responded through a public relations agency, stating, "It is difficult to provide a detailed answer."