Suseong Webtoon Expects to Achieve 17.8 Billion KRW Operating Profit This Year

Suseong Webtoon, a global platform company based on K-webtoons, announced on April 18 that it expects to achieve an operating profit of 17.8 billion KRW this year.

Suseong Webtoon expanded its business scope from traditional manufacturing to the digital content industry last year by acquiring the webtoon platform 'Toomics Holdings.' Toomics, a subscription-based webtoon platform that offers services in 11 languages worldwide, has secured approximately 60 million members globally. About 80 to 85 percent of its total revenue is generated overseas. In an environment of a weak Korean won, the company can also expect favorable exchange rate effects.

A Suseong Webtoon representative stated, "Through Toomics, we supply our own IP content globally using a stable subscription model," adding, "We will also expand into secondary content such as web novels, animation, and games." The representative further emphasized, "We can provide content directly without the customs duties or logistics risks associated with physical exports, which will become a comparative advantage for us as an export-oriented company in the global content industry going forward."

Since Donald Trump returned to office as President of the United States, protectionist policies have been strengthening in the US and other major countries. As a digital content platform company, Suseong Webtoon is being reevaluated for its structure, which is relatively free from tariffs and export regulations. Suseong Webtoon also plans to make a full-scale entry into Southeast Asian markets, including Thailand and Indonesia, this year, aiming to become a leading global platform company.

The company expects a sharp increase in both sales and operating profit this year. In addition to global subscription revenues, Suseong Webtoon is regarded as a "Korean Netflix model" because it provides digital content without the burden of logistics or customs duties. Starting this year, Suseong Webtoon has formally incorporated webtoon companies as consolidated subsidiaries.

Ko Sungmin, CEO of the listed company consulting firm Peter & Partners, commented, "Suseong Webtoon is drawing attention as the 'Korean Netflix' as it ushers in a new era of full-scale content exports centered on its subsidiary Toomics. Both companies share the common feature of relying on membership-based subscription fees and offering digital content that is virtually unaffected by Trump-era tariffs, which increases their growth potential."

According to a report released by Hana Securities on February 9, "Unlike traditional manufacturing-based exporters, Suseong Webtoon is free from tariff risks thanks to its subscription-based digital content export model." The report also analyzed that "Toomics' global subscription revenue model is similar to the Netflix-style content revenue structure."

This year, the company's sales are estimated to reach 148.1 billion KRW, a 229 percent increase year-on-year, while operating profit is expected to reach 20.5 billion KRW, a 1,950 percent increase from the previous year.