Suseong Webtoon "Smooth Sailing Toward 100 Billion KRW Sales and 20% Operating Profit"

Suseong Webtoon, which is promoting a 10-to-1 face value consolidation, announced that the paid-in capital increase of 10.9 billion KRW to its largest shareholder, Toomics Holdings, has been completed. The largest shareholder's stake increased from 45.09% by approximately 20.52 million shares to 53.3%.

With the capital increase plan smoothly completed, additional stake acquisition in the global webtoon subsidiary Toomics is expected to gain momentum. A Suseong Webtoon official stated, "The plan to expand Toomics' stake to over 70% is progressing without any setbacks," adding, "If completed as planned, the profits and losses of Toomics and HBM semiconductor equipment subsidiaries will be reflected, making the company one with sales in the 100 billion KRW range and an operating profit margin of around 20%."

The company said that 80% of Toomics' sales occur overseas, enabling profit margin growth due to increased demand for K-webtoons, and that it operates a 'subscription service' similar to Netflix. Since it is a stable revenue structure, the company is open to considering securing 100% ownership of Toomics if necessary.

Toomics, which has secured 60 million members worldwide, maintained operating profits in the 10 billion KRW range in 2022 and 2023, and recorded operating profits exceeding 1 billion KRW in both July and August, raising expectations for this year's operating profit to reach up to 13 billion KRW.

Suseong Webtoon, the parent company of Toomics, is promoting a 10-to-1 face value consolidation changing the face value from 500 KRW to 5,000 KRW. Once the consolidation is completed, the total number of issued shares, which exceeded 100 million shares, will be reduced to one-tenth, and the price quotation unit will also be changed, which is expected to help stabilize the stock price.