Despite Poor Performance, Kang Hyung-wook Couple Received 500 Million Won Salary... Bodeum Company Preparing for a New Start?

Net Profit Plunges 85%... Estimated Impact from Business Closure
Existing Real Estate Sold, New Property Acquired

It has been revealed that the net profit of Bodeum Company, run by 'Dog President' trainer Kang Hyung-wook who faced a power abuse controversy last year, has significantly decreased. The profit barely covered the interest on real estate collateral loans. However, it is analyzed that the company is preparing for a fresh start by selling existing real estate and acquiring new properties.

According to the Financial Supervisory Service's electronic disclosure system on the 11th, Bodeum Company's sales last year were 2 billion KRW, a 59% decrease compared to the previous year (4.9 billion KRW), and operating profit also dropped by 66.5% to about 670 million KRW. In particular, net profit plunged 85% to 190 million KRW from 1.2 billion KRW the previous year.

The decline in sales is attributed to Bodeum Company ceasing operations in June last year. By segment, sales from dog training services decreased by 54.39% to about 1.9 billion KRW, and product sales shrank by 86.74% to about 86 million KRW. These are presumed to be sales generated before the business closure.

Bodeum Company has been paying nearly 600 million KRW annually in interest after taking out a 11.3 billion KRW real estate collateral loan. Last year, the company essentially only earned enough to cover the interest expenses and then ended its business. In 2023, when it recorded its highest sales, it still had 1.2 billion KRW left after paying all the interest.

The real estate sale that had been pursued for two years also faced setbacks. Bodeum Company attempted to sell its property to a pharmaceutical company for 10.5 billion KRW, but the contract was canceled last year. Currently, the same property is being sold for 8 billion KRW, which is 2.5 billion KRW lower. The buyer is an individual, and the book value of the property is 7.3 billion KRW.

While pushing forward with the sale of existing real estate, Bodeum Company also acquired new property. Last year, it borrowed 2.7 billion KRW from a bank to purchase land and buildings worth 4.2 billion KRW. Trainer Kang also provided a guarantee worth about 1.2 billion KRW for the collateral loan.

Additionally, the company purchased a new vehicle worth 100 million KRW and spent 32 million KRW on facility equipment. Considering the sale of existing real estate, acquisition of new property, vehicle purchase, and facility setup, there is analysis that the company is preparing for a new business.

Although Bodeum Company's performance deteriorated, Trainer Kang's income did not decrease. Last year, Bodeum Company paid about 560 million KRW in salaries to Trainer Kang and his spouse. This is about 100 million KRW more than the 460 million KRW paid in 2023. This amount accounts for about 90% of the total 620 million KRW salary paid by the company last year. Currently, Bodeum Company has two employees: Trainer Kang and his spouse.

Meanwhile, last year Trainer Kang was embroiled in allegations of power abuse against Bodeum Company employees. The Kang couple was sued for unauthorized access to internal company messenger messages, but the police dismissed the case without charges in February.