Suseong Webtoon Continues Growth as K-Webtoon... Opening Era of 120 Billion KRW Connected Sales

Suseong Webtoon announced on the 25th that it will fully transform into a webtoon company. This comes 50 years after it began producing domestically made forklifts in 1973.

Suseong Webtoon will consolidate its common stock by increasing the par value per share from the existing 500 KRW to 5,000 KRW. Trading of Suseong Webtoon shares will be suspended from the 3rd to the 23rd of next month. The stock consolidation will take effect from the 4th of next month. Shares with a par value of 5,000 KRW will be listed on the 23rd of next month, and the total number of issued shares will be reduced to approximately 16 million.

Suseong Webtoon expects the number of circulating shares to decrease due to the stock consolidation. A Suseong Webtoon official explained, "The largest shareholder, Toomics Holdings, converted convertible bonds (CB) it held into Suseong Webtoon common stock, increasing its stake to 50.5%. The actual number of shares available for circulation is about 8 million."

Suseong Webtoon plans to acquire additional shares of Toomics, a webtoon company with a global cumulative membership of 60 million, to make it a 100% subsidiary. Currently, Suseong Webtoon holds 70.2% of Toomics shares. It will increase its stake to 100% through a capital increase in kind by issuing new shares. Once the approval process for the capital increase in kind begins next month, it is expected to take at least two weeks to up to two months for the court's approval to take effect.

Toomics is expected to become a 100% subsidiary by the first quarter of next year. Through the stock consolidation and making Toomics a wholly owned subsidiary, Suseong Webtoon has presented a blueprint to become a webtoon company with consolidated annual sales of 120 billion KRW and an operating profit margin of around 15%.