Byc

Founded in 1946, BYC is a leading domestic manufacturer and distributor of innerwear, producing underwear, bras, and knitwear sold through wholesale networks, directly operated stores, and online channels.

However, a review of recent disclosures and news coverage shows the company's business is effectively split between a textile/underwear segment and a construction/sales/leasing segment, with the latter's weight growing over time.

According to C-Journal, textile segment revenue declined from KRW 127.4 billion in 2022 to KRW 121.7 billion in 2023 and KRW 116.6 billion in 2024. The same outlet reported that on a 2024 operating profit basis, the textile segment accounted for about 24% and the leasing business about 75%.

Earlier data showed that for the nine months through Q3 2024 on a consolidated basis, textile segment revenue was KRW 80.9 billion and construction/sales/leasing segment revenue was KRW 37.0 billion, with textile revenue down 4.4% and leasing-related revenue up 8.9% year over year.

Over the same period, the leasing business accounted for as much as 97% of operating profit, indicating the company's earnings structure is heavily dependent on its real estate leasing and development operations.

The scale of its property holdings is also notable: as of end-2024, the book value of BYC's real estate was KRW 449.0 billion, while its fair value reached KRW 1.1934 trillion.

On the competitive front, intensifying competition from global casualwear/loungewear brands and online private-label products has coincided with what is generally seen as a conservative strategy that favors managing existing underwear brands and real estate assets over new business investment.

2025 consolidated revenue came to KRW 163.17 billion, continuing a mild four-year decline from KRW 165.21 billion in 2024, KRW 168.40 billion in 2023, and KRW 169.68 billion in 2022.

Operating profit, however, rose to KRW 26.57 billion in 2025 from KRW 23.83 billion in 2024, lifting the operating margin to 16.3% from 14.4%.

Net income attributable to owners was KRW 19.58 billion in 2025, KRW 18.41 billion in 2024, and KRW 23.68 billion in 2023, but stood out at KRW 35.29 billion in 2022 — a gap versus that year's operating profit of KRW 25.33 billion that suggests a non-operating item may have been at play.

On a quarterly basis, margins improved markedly in the second half of the year, from revenue of KRW 39.49 billion and operating profit of KRW 2.78 billion (7.0% margin) in Q2 2025 to KRW 39.10 billion and KRW 8.25 billion (21.1%) in Q3, and KRW 49.23 billion and KRW 11.34 billion (23.0%) in Q4.

But margins eased again in Q1 2026, with revenue of KRW 36.31 billion and operating profit of KRW 5.59 billion (15.4%), and further in Q2 2026, where revenue rose to KRW 43.43 billion yet operating profit was only KRW 2.99 billion (6.9%).

This quarter-to-quarter variability likely reflects the combined effect of construction/sales revenue recognition timing and the seasonality of rental income, making it difficult to draw an annual conclusion from any single quarter's margin.

Indeed, FnGuide noted that for the nine months through Q3 2025, consolidated revenue fell 3.4% year over year while operating profit rose 16.0% and net income rose 8.9%, with revenue declining due to intensifying domestic competition, an aging population, and a low birth rate, even as cost reduction and efficiency gains improved gross profit and margins.

On the cash flow side, operating cash flow improved steadily to KRW 34.23 billion in 2025 from KRW 28.22 billion in 2024, KRW 30.31 billion in 2023, and KRW 10.47 billion in 2022.

South Korea's innerwear market faces two structural pressures simultaneously: demographic shifts and a shift in consumption channels.

Amid an aging population and low birth rate that are stagnating the overall demand base, competition is said to be intensifying due to the expanding domestic presence of global casualwear/loungewear brands and the spread of private-label products on online platforms.

This aligns with the diagnosis noted above from FnGuide. Against this backdrop, BYC's textile segment revenue has declined for three consecutive recent years, a trend not unrelated to the industry-wide structural stagnation.

On the other hand, BYC has offset much of its core-business softness by generating stable rental income from commercial real estate, office suites, and knowledge-industry centers accumulated over many years, giving it a different profit structure from a purely apparel/textile company.

For this reason, some market participants classify BYC not as a traditional fashion/textile company but as an asset-holding company.

Within Korea's activist fund industry, campaigns targeting asset-rich companies subject to valuation debates are said to be increasing, a trend that is reportedly influenced by the government's corporate value-up program and ongoing discussions of commercial code reform.

The company does not officially provide quantitative revenue or profit guidance, so future earnings expectations must be tracked through quarterly disclosures and market consensus.

The core underwear business is expected to continue facing market stagnation tied to demographic shifts, and since the company has focused more on managing existing brands and distribution networks than on new business expansion, some observers see limited scope for a swift turnaround in the near term.

In the real estate segment, the progress of lease renewals, potential redevelopment, and development projects such as knowledge-industry centers are cited as the key variables that will drive future earnings volatility.

On the governance front, given that second-largest shareholder Trueston Asset Management has repeatedly called for expanded dividends, treasury stock buybacks and cancellations, and more efficient use of real estate, how the board responds and what is discussed at future annual general meetings could be a variable in whether shareholder return policy changes.

Notably, the board's decision in early 2024 to carry out a 1-for-10 stock split to expand the number of shares outstanding was seen as a step that partially accommodated Trueston's demands.

More recently, an inheritance-related lawsuit within the owner family has reportedly been underway, and how this litigation progresses and what effect it has on the shareholding structure and voting rights is also worth monitoring.