Setopia Sells IT Security Division... Lays Foundation for Return to Profitability

Focus on Core Competencies in Rare Earth Element Business

Setopia announced on the 4th that it has created an opportunity to turn profitable by selling its IT security division, which had been the cause of sustained losses due to high fixed costs. The company stated that it has sold the IT security division, which had a heavy fixed cost burden, and decided to focus its core competencies on the rare earth business.

This decision is a strategic choice aimed at the company's long-term growth strategy and efficiency improvement, and it is expected to have a positive impact on external investors as well. Meanwhile, the Samsung-oriented IT service division, which has maintained profitability on a per-project basis, will continue to be maintained.

Through this sale, Setopia is expected to significantly reduce its fixed cost burden and be able to concentrate more resources and investments on the rare earth business. The rare earth business is a key material for future industries such as electric vehicles, renewable energy, and high-performance electronic devices, with demand continuously increasing, which is expected to further strengthen Setopia's long-term growth potential.

Setopia's Chief Executive Officer (CEO) said, “The sale of the IT division is an important step to improve the company's financial structure and further develop our core competencies,” adding, “By focusing on the rare earth business, we will solidify our position as a key material supplier leading future industries.”

He also stated, “This strategic change will play a crucial role in enabling Setopia to respond agilely to market changes and achieve higher profitability and sustainable growth,” and “Positive reactions are expected as this change will contribute to increasing Setopia's value in the long term.”

Strengthening the rare earth business division is expected to improve Setopia's previously vulnerable profit structure and lay an important foundation for creating new growth opportunities through rare earth technology innovation. The company plans to contribute to the reconstruction of the global supply chain of strategic resources through intensive investment and research and development in the rare earth business.