FSN: "Hyper Corporation Secures Large-Scale Investment... Maximizing Growth"

On June 30, KOSDAQ-listed FSN announced that its subsidiary, Hyper Corporation, has successfully secured large-scale investment. As a result, FSN will expedite the separation of Hyper Corporation from its consolidated financial statements and focus on maximizing profitability and growth for each company's specialized business areas.

On June 27, Hyper Corporation disclosed plans to raise a total of 77 billion KRW through the issuance of 40 billion KRW in convertible bonds (CB) and a 37 billion KRW paid-in capital increase. Upon completion of this paid-in capital increase, the largest shareholder of Hyper Corporation will change from FSN to a new investor. Consequently, Hyper Corporation will naturally be separated from FSN's consolidated subsidiaries.

Since last year, FSN has already carried out a strategic restructuring by focusing on advertising marketing, brand, and platform-centered businesses, while transferring tech and future business divisions that require continuous technological investment to Hyper Corporation. FSN also boldly integrated and streamlined overlapping business areas among its various subsidiaries. As a result, excluding Hyper Corporation and tech affiliates, FSN alone achieved record-breaking results in 2024 with annual sales of 211.7 billion KRW and operating profit of 10.9 billion KRW, marking the highest performance since its founding.

In the first quarter of this year, FSN recorded consolidated sales of 86.3 billion KRW and operating profit of 4.1 billion KRW, achieving its highest-ever first-quarter results. Excluding Hyper Corporation and tech affiliates, FSN’s core business alone posted sales of 67.7 billion KRW and operating profit of 7.3 billion KRW. In addition, its key subsidiary Boosters surpassed its total operating profit for the previous year within just five months, recording cumulative sales of 81.4 billion KRW and operating profit of 19 billion KRW, demonstrating rapid growth.

Furthermore, as the distributed investment costs for bio and tech-related businesses at Hyper Corporation decrease, FSN is now positioned to expect even greater growth than last year, when it achieved its highest-ever sales. The factors that have contributed to FSN’s undervaluation, such as its diverse business portfolio and complex subsidiary structure, are expected to be resolved through the separation of Hyper Corporation from consolidation and the ongoing integration of subsidiaries.

With this investment in Hyper Corporation, FSN anticipates four positive effects: focusing on strengthening fundamentals within FSN’s core business, reducing the cost burden for bio, technology, and new tech investments, increasing the value of its stake as Hyper Corporation grows, and significantly improving consolidated results.

Following the end of its trading suspension, Hyper Corporation’s stock price has recently risen on the news of this large-scale investment, leading to a recovery in the value of FSN’s stake as well. If Hyper Corporation launches new businesses based on its newly secured stable investment capital, FSN, as a major shareholder, is also expected to benefit from long-term asset value growth through ongoing collaboration.

Although the two companies will be separated in terms of ownership structure, they plan to continue strengthening their collaborative relationship in advertising, commerce, AI, and platform businesses. FSN will focus on maximizing growth and profitability in marketing and brand platform-centered businesses. Hyper Corporation will lead tech-based future businesses, aiming to maximize business synergy by leveraging each company’s expertise and competitiveness.

Seo Jeonggyo and Park Taesoon, co-CEOs of FSN, stated, "Through this investment, Hyper Corporation has secured sufficient resources to pursue future growth industries, while FSN can further strengthen its performance growth by reducing the financial burden of technology investment. We will continue to maintain a strategic partnership with Hyper Corporation and actively utilize each company’s specialized capabilities to create synergy."