[At the Crossroads] Autec ③ Suspicious Surge in Carrier Air Conditioner Logistics Costs... Did the Owner Family Benefit?

Despite Operating Losses, Inventory and Logistics Costs Surge
Logistics Subsidiary Owned by Owner's Family

KOSDAQ-listed company Autec has significantly increased its logistics expenses since 2018. Due to high logistics costs, Autec's operating profit began to decline from 2018 and eventually turned negative. Coincidentally, in 2018, the largest shareholder of 'FD Sys', which is responsible for logistics within the Autec Group, changed to a family company of Autec Chairman Kang Sunghee.

According to the Financial Supervisory Service's electronic disclosure system on April 24, 2025, Autec's consolidated operating profit in 2018 was KRW 29.8 billion, an 18% decrease compared to KRW 36.4 billion in 2017. During the same period, sales increased by 11%, but operating profit decreased.

One of the reasons for the profit decline is the increase in logistics expenses. In 2018, Autec spent a total of KRW 28.6 billion on lease payments and transportation and storage costs. This is an increase of KRW 9.1 billion compared to 2017. The reason for this increase is analyzed to be the rise in inventory assets. In 2018, Autec increased its inventory assets to KRW 143.6 billion, up 23% from the previous year. The company expanded its inventory more than twice the sales growth rate.

The business division accounting for the largest share of Autec Group's sales is 'Autec Carrier'. Autec acquired Carrier Air Conditioner (now Autec Carrier) in 2011. Autec Carrier is responsible for 50-60% of the group's total sales. Autec Carrier's inventory also accounts for a large portion of the group's total inventory assets.

Since 2018, Autec's sales have stagnated at around KRW 900 billion to 1 trillion. However, inventory assets have surged. In 2019, Autec's inventory assets reached KRW 207.9 billion, a 45% increase compared to KRW 143.6 billion in 2018. Compared to the 3% increase in sales during the same period, the inventory increased significantly. Accordingly, logistics expenses also rose by KRW 5.7 billion year-on-year, reaching KRW 34.3 billion.

Autec's logistics expenses have increased every year. In 2020, they reached KRW 37 billion; in 2021, KRW 42.4 billion; and in 2022, KRW 41.4 billion. During the same period, Autec's operating profit continued to decline. In 2020, it fell to KRW 9.3 billion, then to KRW 6.4 billion in 2021, and in 2022, the company recorded an operating loss of KRW 19.1 billion, turning to a deficit.

After recording a deficit, Autec began reducing its inventory assets starting in 2023. In 2023, Autec's inventory assets decreased to KRW 149.3 billion, and last year, they further declined to KRW 117.3 billion. Nevertheless, logistics expenses continued to rise. In 2023, Autec's logistics expenses were KRW 39 billion, and last year, they reached KRW 47.6 billion. While inventory was reduced by about half, logistics expenses increased by 15%.

An Autec official explained, "Until 2022, we focused heavily on securing operating profit through sales growth, but due to the domestic economic downturn, a large amount of inventory remained. In 2023, despite factors that would increase logistics expenses, we froze logistics costs, but in 2024, these costs were reflected in reality."

As logistics expenses increased in this way, the beneficiary was 'FD Sys', which is responsible for logistics within the Autec Group. In 2017, Autec suddenly sold its stake in FD Sys, which was then a subsidiary. Since 2018, when Autec's logistics expenses began to surge, the largest shareholder of FD Sys changed to 'SH Global'. SH Global is a family company established in 2018, with Autec Chairman Kang Sunghee holding 20%, and his two sons, Kang Shinwook (Executive Director of Autec) and Kang Shinhyung (Managing Director of Autec), each holding 40%.

SH Global is not only the largest shareholder of FD Sys, but also leases logistics centers to FD Sys and receives fixed rental income. In 2020, SH Global established a corporation called 'SH Global First' and purchased land in Hwaseong, Gyeonggi Province, where it built the 'Autec Logistics Center'. FD Sys leases this facility and pays annual rent.

When asked about the reasons behind the creation of this financial flow structure, Autec did not respond.

Meanwhile, Autec is conducting a rights offering for shareholders worth KRW 18.3 billion. Of this, KRW 12 billion is effectively structured to support FD Sys.