KOSDAQApparel & Living001810

Moorim Sp

₩1,131 0.00%2026-10-02 close

Market Cap

₩25B

Turnover

₩1,764,187

Volume

1.6K

Shares out.

22.1M

PER

—

PBR

0.1×

EPS

-₩653

Dividend Yield

1.27%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩15 per share · Prices as of the 2026-10-02 close

Report overview

Moorim SP: A CCP Paper Leader Facing Widening Net Losses

Moorim SP continues to grow revenue while holding a near-monopoly in the domestic CCP specialty paper market, yet net losses have widened due to pulp and currency cost pressure and non-operating factors.

1
Revenue rose for four consecutive years from 2022 to 2025, but the operating margin has stayed around just 1%.
2
After a profitable second quarter in 2025, net losses attributable to owners widened for three straight quarters, reaching -6.21 billion won in Q2 2026.
3
CCP (cast-coated paper) holds an effectively monopolistic domestic market share as a premium packaging material for cosmetics and pharmaceuticals.
4
A April 2026 Korea Fair Trade Commission ruling on printing paper price collusion imposed a three-year price re-determination reporting obligation on the entire industry.
5
Moorim SP's own fine was a minor 347 million won, but large fines imposed on affiliates Moorim P&P and Moorim Paper have added to group-wide financial strain.

Business structure

Moorim SP traces its roots to Cheongku Paper, founded in 1956, and listed on KOSDAQ in 1999 as a specialty paper producer.

Its business consists of a manufacturing segment producing art paper, woodfree paper, and CCP paper, alongside a logistics segment (subsidiary Moorim Logitec) handling paper, waste paper, and pulp storage and freight transport.

CCP paper, produced since 1988, is the company's flagship product with an effectively monopolistic domestic market share, competing through a multi-product, small-batch production system tailored for premium cosmetics and pharmaceutical packaging.

Sales are concentrated domestically, with paper wholesalers, large publishers, and printers as key channels. Because pulp, the core raw material, is largely imported, international pulp prices and currency movements directly affect production costs.

Moorim SP sits at the top of the Moorim Group's governance structure, with affiliates Moorim Paper (printing paper) and Moorim P&P (integrated pulp-and-paper operations) forming a vertically integrated group.

The domestic printing paper market is an oligopoly dominated by a handful of players including Moorim SP, Moorim Paper, Moorim P&P, Hansol Paper, Korea Paper, and Hongwon Paper, with high capital requirements limiting new entry. CEO Lee Do-kyun has led the group since becoming Moorim SP's largest shareholder in 2003.

Earnings trend

Quarterly revenue · Operating profit

₩50.5B₩1.3B25Q2₩53.8B₩200M25Q3₩54.6B-₩200M25Q4₩57.6B₩200M26Q1₩62.7B₩1.4B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩153.5B-₩7.2B2022₩162.1B-₩7.3B2023₩176.9B₩700M2024₩205.7B₩1.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩50.5B	₩1.3B	2.5%
2025Q3	₩53.8B	₩200M	0.3%
2025Q4	₩54.6B	-₩200M	−0.3%
2026Q1	₩57.6B	₩200M	0.4%
2026Q2	₩62.7B	₩1.4B	2.2%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩153.5B	-₩7.2B	-₩8.8B	−4.7%	−4.3%	50.4%
2023	₩162.1B	-₩7.3B	-₩5.8B	−4.5%	−2.9%	57.6%
2024	₩176.9B	₩700M	₩3.3B	0.4%	1.6%	60.2%
2025	₩205.7B	₩1.8B	-₩1.7B	0.9%	−0.9%	71.3%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

Moorim SP's consolidated revenue rose for four consecutive years, from 153.5 billion won in 2022 to 162.1 billion won in 2023, 176.9 billion won in 2024, and 205.7 billion won in 2025.

Despite this top-line growth, the operating margin remained negative at -4.7% in 2022 and -4.5% in 2023 before only marginally turning positive at 0.4% in 2024 and 0.9% in 2025. Operating profit itself stayed small relative to revenue, at 0.66 billion won in 2024 and 1.78 billion won in 2025.

Net income attributable to owners, meanwhile, swung from a 3.31 billion won profit in 2024 back to a 1.73 billion won loss in 2025.

On a quarterly basis, owner net income briefly surged to 4.18 billion won in Q2 2025, but then losses widened over the following quarters: -1.51 billion won in Q3 2025, -4.27 billion won in Q4 2025, -2.47 billion won in Q1 2026, and -6.21 billion won in Q2 2026.

Operating profit over the same period fluctuated between 1.27, 0.15, -0.17, 0.21, and 1.37 billion won, remaining broadly in slight profit territory even as the gap with net income kept growing, suggesting non-operating factors have played an outsized role in results.

Combined owner net losses over the most recent four quarters (Q3 2025 through Q2 2026) totaled roughly 14.45 billion won.

Operating cash flow also swung sharply, from an inflow of 26.65 billion won in 2023 to outflows of -24.61 billion won in 2024 and -0.67 billion won in 2025, while the debt ratio climbed steadily from 50.4% in 2022 to 71.3% in 2025, indicating rising financial burden.

Industry analysis

South Korea's printing paper industry has faced simultaneous cost and regulatory pressure in 2026.

According to Ministry of Trade, Industry and Energy raw material data, international bleached hardwood kraft pulp (SBHK) prices rose to $780 per ton in April 2026, up from the prior month and more than 20% above the roughly $640 level seen in July 2025.

The won-dollar exchange rate has also fluctuated around 1,500 won, raising import costs for pulp priced in dollars, while the Shanghai Containerized Freight Index has climbed more than 30% above pre-Middle East-crisis levels.

With global demand for paper failing to recover, industry participants have widely noted that passing rising costs on to selling prices remains difficult.

Compounding this, the Korea Fair Trade Commission in April 2026 fined six printing paper makers—Moorim SP, Moorim Paper, Moorim P&P, Hansol Paper, Korea Paper, and Hongwon Paper—a combined 338.3 billion won over price collusion.

Fines by company were led by Hansol Paper at 142.58 billion won, followed by Moorim P&P at 91.96 billion won, Korea Paper at 49.06 billion won, Moorim Paper at 45.85 billion won, Hongwon Paper at 8.54 billion won, and Moorim SP at just 347 million won, a relatively minor burden.

Even among the profitable companies—Hansol Paper, Moorim SP, Moorim Paper, and Korea Paper—the average operating margin fell short of 1%, underscoring a structural profitability problem across the industry.

Within this environment, Moorim SP maintains an effectively monopolistic domestic market share in CCP paper and retains a competitive edge in premium cosmetics and pharmaceutical packaging, though its overall scale remains smaller than affiliates Moorim Paper and Moorim P&P, limiting its pricing power in the broader printing paper market.

Outlook

Moorim SP, along with the other two listed Moorim Group companies, received a corrective order and an 'independent price re-determination order' from the Korea Fair Trade Commission in April 2026, requiring prices to be reset to pre-collusion levels, and now faces an obligation to report price changes to the commission every half-year for the next three years.

This could act as a structural constraint on passing rising costs through to selling prices.

Fine burdens varied significantly across affiliates: through corrective disclosures in June 2026, Moorim P&P's fine was reduced from 91.96 billion won to 57.4 billion won, and Moorim Paper's from 45.85 billion won to 28.6 billion won.

Moorim SP's own fine, at just 347 million won, remains minor, limiting the direct financial impact on the company itself.

However, credit rating agencies had already downgraded Moorim Paper's rating outlook even before the fines were finalized, and industry observers have raised the possibility that the group could consider selling non-core asset Moorim Capital to fund the penalties.

Moorim Group has commercialized eco-friendly new businesses such as packaging paper made from recycled clothing, though it will likely take time for these new ventures to become meaningful profit contributors.

As the entity at the top of the group's governance structure, Moorim SP cannot fully rule out indirect exposure to affiliate financial risk.

Valuation

PER

—

PBR

0.1×

ROE

-7.3%

EPS

-₩653

BPS

₩8,589

Dividend per share

₩15

Moorim SP's shares have tended to trade at a discount relative to net asset value, a pattern broadly in line with how the domestic paper industry as a whole is valued by the market.

Recent years of weak results and the swing to a net loss attributable to owners are cited among the factors behind this asset-value discount. Dividends have continued to be paid annually, though the yield level has not stood out as particularly high within the sector.

Given the widening and volatile gap between operating profit and net income, valuation approaches based on asset value or cash flow tend to be used more often than conventional earnings-based metrics for this stock.

How the market values the company going forward may depend on whether net income returns to a stable profit trend.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23

Bull factors

Near-Monopoly in the CCP Paper Market

Moorim SP maintains an effectively monopolistic domestic market share in CCP (cast-coated paper), securing a stable position in the premium niche market for cosmetics and pharmaceutical packaging.

Its multi-product, small-batch production system has allowed it to hold multiple market-leading products, reflecting technical advantages that are difficult to replicate. This is a segment with relatively lower competitive intensity than the general printing paper market.

Four Consecutive Years of Revenue Growth

Revenue grew for four consecutive years, from 153.5 billion won in 2022 to 205.7 billion won in 2025, and rose 23.3% year-on-year in Q1 2026 as well. Expanded sales to domestic paper wholesalers, large publishers, and printers underpinned this growth. Continued top-line expansion could provide a foundation for future profitability improvement.

Sustained Operating Profitability

After operating losses in 2022 and 2023, Moorim SP posted operating profit in both 2024 and 2025, and continued in the black through the first half of 2026 with 0.21 billion won in Q1 and 1.37 billion won in Q2. Maintaining break-even operating performance amid an adverse cost environment is a positive point worth noting.

Bear factors

Widening Net Losses

While operating profit has remained slightly positive, net income attributable to owners turned negative at -1.73 billion won in 2025, and quarterly losses have since widened further. The owner net loss expanded to -6.21 billion won in Q2 2026. Non-operating factors appear to be driving results significantly, suggesting volatility could persist.

Exposure to Pulp and Currency Costs

Because pulp is largely imported, profitability is directly exposed to international pulp prices and currency fluctuations. In 2026, SBHK prices rose to $780 per ton and the won-dollar rate hovered around 1,500 won, increasing cost pressure. With paper demand failing to recover, passing rising costs through to selling prices remains difficult.

Regulatory and Affiliate-Related Risk

The FTC's price collusion ruling imposed a three-year price re-determination reporting obligation, constraining pricing policy flexibility. Large fines borne by affiliates Moorim P&P and Moorim Paper have added financial strain to the group as a whole, and downward pressure on credit rating outlooks has persisted.

Risk factors

Raw Material and Currency Risk

Since the company depends entirely on imported pulp, simultaneous increases in international pulp prices and the won-dollar exchange rate double the cost burden. Paper is also vulnerable to rising ocean freight rates due to its weight and volume.

With demand recovery slow, cost increases may be difficult to pass through to selling prices, potentially sustaining margin pressure.

Pricing Regulation Risk

Alongside the printing paper collusion penalty, the FTC issued its first 'independent price re-determination order' in 20 years, imposing a three-year semi-annual price-change reporting obligation.

The FTC is also pursuing revisions to raise minimum fine calculation rates, meaning repeat violations could face substantially harsher penalties. This constrains industry-wide pricing autonomy over an extended period.

Affiliate Financial Contagion Risk

As the entity at the top of the group's governance structure, Moorim SP could be indirectly affected by financial burdens at affiliates Moorim Paper and Moorim P&P.

Credit rating agencies have already downgraded Moorim Paper's rating outlook, and there is speculation the group may consider selling Moorim Capital to fund the fines. This group-level financial restructuring process could also affect Moorim SP's equity value and governance structure.

What to watch next

Mid-November 2026
Check the Q3 2026 earnings disclosure to see whether the trend of widening owner net losses over the past three quarters continues.
Second half of 2026
Monitor international bleached hardwood kraft pulp (SBHK) price and won-dollar exchange rate trends to assess whether cost pressure eases or intensifies.
Second half of 2026 through first half of 2027
Track the semi-annual price-change compliance reports required under the FTC's price re-determination order and any follow-up actions.
Second half of 2026
Watch for disclosures related to group-level financial restructuring, including a potential sale of Moorim Capital.
Early 2027
Confirm the final FY2026 annual results disclosure to assess the full-year net income trend and changes in financial burden.

Overall view

Moorim SP has sustained four consecutive years of revenue growth on the back of its effectively monopolistic position in the CCP paper segment, yet its operating margin remains around just 1%, and net income attributable to owners has shown a widening loss trend each quarter since 2025.

This growing gap between operating profit and net income suggests non-operating factors are heavily influencing results, making it an important point to watch in future earnings.

On the industry side, rising international pulp prices, a stronger dollar against the won, and elevated logistics costs continue to pressure margins, while sluggish demand recovery makes cost pass-through difficult.

Compounding this, the FTC's price collusion ruling has constrained pricing policy flexibility for the next three years; although Moorim SP's own fine was minor, large penalties imposed on affiliates Moorim P&P and Moorim Paper have added financial strain across the group.

On the other hand, the company's dominant position in CCP paper, continued revenue growth, and sustained operating profitability since 2024 remain positive factors.

With these bullish and bearish elements coexisting, whether net income returns to a stable profit trend and how the group's financial restructuring unfolds will likely be key variables shaping the company's trajectory going forward.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.