FSN "Subsidiary Equity Value Alone 220 Billion Won... Efforts to Reevaluate Corporate Value"

FSN, a KOSDAQ-listed company, announced on the 11th that it will strive to reassess its corporate value, which has declined due to external issues, with its major affiliates' equity value alone reaching approximately 220 billion KRW.

Recently, the domestic stock market has been significantly affected by political and social factors. Since April 2020, when the COVID-19 pandemic was at its peak, the KOSDAQ index has fallen to the 620 level for the first time in 4 years and 7 months. Over three days following the night of the 3rd of this month, the market capitalization of domestic listed companies evaporated by more than 144 trillion KRW. The KOSDAQ market also plunged sharply, and as a result, FSN's market capitalization shrank to 52 billion KRW as of the 9th.

As of the closing price on the 10th of this month, FSN's price-to-book ratio (PBR) stands at only 0.76 times. Generally, when the PBR is below 1, the stock price is considered undervalued relative to the assets held. In fact, according to the consolidated financial statements for the third quarter, FSN's total assets amount to approximately 342.8 billion KRW. Current assets, including cash and cash equivalents, are reported to be around 188.7 billion KRW.

Even considering the equity value of major affiliates, there is significant room for reassessment of the current corporate value. The equity value of Hyper Corporation, which operates in the bio healthcare tech business, alone exceeds 40 billion KRW. The core advertising marketing subsidiary, Adqua Interactive, was recognized with a corporate value of over 80 billion KRW based on an external evaluation report at the end of 2023. Additionally, Boosters, which leads the brand win-win business, received a Series A investment worth 16 billion KRW in 2022.

Seojeonggyo, CEO of FSN, said, "Despite the more challenging business conditions than ever before both domestically and internationally, FSN is proving its future growth potential by achieving stable strong performance this year," adding, "Considering the assets and equity value held, there is ample possibility for corporate value reassessment."

He emphasized, "Next year, we expect even greater growth than this year, which is achieving a turnaround and record performance in each business segment," and added, "We are actively engaging in activities to reassess corporate value, such as holding investor relations meetings, and with continued positive factors like performance improvement and investment attraction, we expect to be valued above our intrinsic value in the near future."