KOSDAQ-listed FSN announced on March 3 that it has completed the full separation of its consolidated financials with Hyper Corporation. Having consistently restructured its business portfolio and enhanced management efficiency over the past few years, FSN has now eliminated all uncertainties undermining its corporate value by finalizing the split with Hyper Corporation. The company also expressed its intention to further accelerate its performance growth.
On February 27, Hyper Corporation disclosed through a public filing that it had completed a KRW 15 billion third-party paid-in capital increase. As a result of this capital increase, the largest shareholder of Hyper Corporation has changed from FSN to JK New Technology Investment Association No. 12, which now holds a 39.09% stake.
With the separation from Hyper Corporation completed, FSN has successfully concluded its business restructuring and management efficiency strategies. FSN has been implementing step-by-step measures to improve management efficiency and reorganize its business structure in response to the overall economic downturn and sluggish performance. The company integrated subsidiaries engaged in similar businesses and successfully separated its global business division, which had been recording losses for an extended period, from its consolidated financials.
Although Hyper Corporation and its tech affiliates possess technological capabilities and growth potential to drive future industries, their business sectors inherently require continued investment. Through this separation, FSN has been able to stabilize and strengthen its consolidated financial statements, laying the groundwork for continued performance growth centered on advertising, marketing, brand, and platform businesses.
This year, FSN is expected to see a positive signal for its core goal of corporate value re-rating. The company has actively repositioned itself from a merely undervalued advertising agency to a growth-driven operator of K-brands and platforms, undertaking initiatives to strengthen its fundamentals. In addition, FSN has sequentially secured revaluation momentum through solid performance growth and increased value of its key subsidiaries, while fully resolving uncertainties surrounding the split with Hyper Corporation. With all factors that could undermine its corporate value now eliminated, FSN plans to boost its undervalued enterprise value through proactive investor relations activities.
There is also rising anticipation for continued earnings surprises. While FSN achieved a record-high revenue of KRW 265.6 billion in 2024, its operating profit was only KRW 800 million. However, excluding the performance of Hyper Corporation and its tech affiliates, FSN's business division recorded an operating profit of KRW 11.4 billion. Last year, the company's performance growth gained further momentum, recording consolidated revenue of KRW 205.1 billion and operating profit of KRW 26.3 billion in just three quarters. The key subsidiary Boosters is estimated to have achieved annual sales of KRW 200 billion and operating profit exceeding KRW 30 billion last year, drawing high expectations for FSN's annual results as well.
FSN has successfully transformed from a traditional advertising agency into a company that drives the growth of brands and platforms. One of Boosters' major partner brands has seen its corporate value surge by 1,000% and sales by over 7,000% just three years and six months into the partnership, demonstrating tangible results. Based on these achievements, FSN is receiving numerous collaboration requests from a range of high-growth potential brands.
This year, the company is poised for even greater growth by entering global high-growth categories such as K-beauty, K-fashion, and K-medical tourism. Notably, FSN is preparing to launch high-performance brands in collaboration with a skincare company recognized for its outstanding functionality and efficacy, and is actively pursuing new platform businesses that can generate synergies with existing ventures such as Cauly and Daedamo. In addition to overall quantitative growth, FSN is also committed to enhancing the qualitative aspect of its performance.
Seojeongkyo, CEO of FSN, stated, "With the separation from Hyper Corporation, FSN has successfully completed its business restructuring and management efficiency initiatives. This year, as we actively enter fields with high global growth potential, we expect to achieve even greater growth compared to last year. Our goal is to make this a year where we accomplish not only quantitative but also qualitative growth."
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