PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
After posting a consolidated operating loss in 2025 amid a construction and export downturn, Chosun Paint's near-term path hinges on a recovery at marine-paint affiliate Chokwang Jotun and the commercialization progress of battery thermal-material unit CK EM Solution.
2025 consolidated revenue fell to KRW 202.7bn with an operating loss of KRW 19.5bn, reversing the prior year's profit
Operating losses persisted for five straight quarters from 2025Q2 through 2026Q2, though the loss size has been narrowing
Marine-coating joint venture Chokwang Jotun (50% stake) is tied to the shipbuilding cycle and affects equity-method earnings
Battery thermal-interface subsidiary CK EM Solution has seen delayed sales ramp-up, with put-option and RCPS redemption obligations emerging as a financial risk
Shares trade at a substantial discount to net asset value
Chosun Paint (Chokwang Paint) was founded in 1967 and listed on the KOSPI in 1976 as a leading domestic coatings manufacturer.
Its core product lines include the UV-curable coating brand 'Ubilac,' the industrial coating brand 'Desmon,' the powder coating brand 'Paulac,' and the architectural coating brand 'Jayeon-N;' based on 2023 figures, Ubilac accounted for 30.11% of sales, Desmon 23.28%, Paulac 15.46%, and Jayeon-N 14.01%.
The centerpiece of its subsidiary structure is Chokwang Jotun, a 50-50 joint venture with Norway's Jotun A/S specializing in marine and offshore-structure protective coatings, which is reflected in earnings via the equity method.
Its Vietnamese unit Chokwang Vina, a consolidated subsidiary, sells architectural and woodworking coatings locally. CK EM Solution, an electronic-materials specialist focused on battery thermal interface materials (TIM), is a subsidiary in which Chosun Paint has been expanding its stake.
The company also holds equity stakes in affiliates such as catalyst-materials firm Repoma and coating R&D firm Smeco.
Korea's domestic paint industry is known as a mature market dominated by a handful of top players, and in the marine coatings segment, based on 2023 revenue, KCC held roughly 30%, Chokwang Jotun about 29%, Noroo IPK 23%, and Chugoku Samhwa 17%.
Beyond the mature architectural and woodworking coatings market, the company continues pursuing higher-value-added non-paint businesses in electronics and battery materials.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩53.7B | -₩4.7B | −8.7% |
| 2025Q3 | ₩50.8B | -₩4.3B | −8.4% |
| 2025Q4 | ₩49.1B | -₩7.5B | −15.3% |
| 2026Q1 | ₩46.4B | -₩6.2B | −13.4% |
| 2026Q2 | ₩59.5B | -₩2.9B | −4.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩260.5B | -₩1.6B | -₩7.3B | −0.6% | −4.3% | 127.5% |
| 2023 | ₩252.8B | ₩3.7B | ₩4.8B | 1.5% | 2.7% | 118.4% |
| 2024 | ₩248B | ₩2.4B | ₩16B | 1.0% | 8.4% | 106.1% |
| 2025 | ₩202.7B | -₩19.5B | -₩10.3B | −9.6% | −4.9% | 104.1% |
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
Consolidated revenue in 2025 was KRW 202.7bn, down 18.3% from KRW 248.0bn in 2024. Operating profit swung from a KRW 2.4bn gain in 2024 to a KRW 19.5bn loss in 2025, and net profit attributable to owners similarly reversed from a KRW 16.0bn gain to a KRW 10.3bn loss.
The company stated in its disclosure that "the shrinking revenue base and decline in operating margin were mainly due to the construction downturn and lower exports." On a quarterly basis, revenue was KRW 53.7bn with an operating loss of KRW 4.7bn in 2025Q2, KRW 50.8bn with a KRW 4.3bn loss in Q3, KRW 49.1bn with a KRW 7.5bn loss in Q4, and KRW 46.4bn with a KRW 6.2bn loss in 2026Q1, before revenue rebounded to KRW 59.5bn in 2026Q2 as the operating loss narrowed to KRW 2.9bn.
Still, five consecutive quarters of operating losses indicate that a full profitability recovery has not yet materialized.
Back in 2023, despite a revenue decline, the company turned profitable with a KRW 3.7bn operating profit and KRW 4.8bn net profit, which management attributed to a lower cost ratio and improved results at Chokwang Jotun.
The swing from a KRW 1.6bn operating loss and KRW 7.3bn net loss in 2022 through profitable years in 2023-2024 and back to a loss in 2025 illustrates a structure highly sensitive to raw-material costs and downstream demand.
Operating cash flow remained positive at KRW 3.5bn in 2025 despite the net loss, and the debt ratio has gradually declined from 127.5% in 2022 to 104.1% in 2025.
Chosun Paint's downstream markets are diversified across construction, shipbuilding, automotive, and electronics. Korea's domestic construction sector remained weak into 2026, with construction output down 5.4% year-on-year in March, among other soft readings.
Forecasting institutions such as KIET expect 2026 construction orders to rise modestly on the back of an expanded public infrastructure budget, while a recovery in private housing activity is expected to stay limited.
By contrast, the shipbuilding industry was classified among the robust-growth sectors for 2026 in outlooks for Korea's 13 major industries, alongside semiconductors and biohealth—a relatively favorable backdrop for marine-coatings supplier Chokwang Jotun.
The automotive sector, meanwhile, was flagged as facing growth stagnation due to aging flagship models. Given that raw materials make up 80-90% of cost of goods sold in the paint business and most inputs are petrochemical derivatives, the direction of global crude oil prices has a direct bearing on profitability.
Korea's paint market retains an oligopolistic structure led by a handful of top players, meaning that in a period of delayed construction recovery, market-share competition and cost management capability become key differentiators of performance.
The company's future performance depends on two tracks: the pace of demand recovery in its core paint business, and whether CK EM Solution's battery thermal-material business reaches meaningful sales scale.
CK EM Solution has signed a non-disclosure agreement with a domestic battery maker and has been developing thermal interface adhesives, reportedly now at the product-approval stage. However, sales ramp-up has been delayed by the slowdown in EV demand growth (the so-called chasm).
Financially, a past rights-offering investor in CK EM Solution exercised a put option, prompting Chosun Paint to buy back the entire stake for KRW 21.6bn, while KRW 13.0bn of redeemable convertible preferred shares carrying a 7% compounding annual rate remain outstanding, posing a potential future funding burden.
As of the end of last year, standalone cash and cash equivalents stood at only KRW 7.7bn, and consolidated cash at KRW 9.1bn, indicating limited liquidity headroom.
On the core business side, the company is expanding its new-product lineup amid the eco-friendly trend, including development of a recycled-material powder coating under the Paulac brand and water-based coatings for railway vehicles.
Chokwang Jotun's results tend to lag the shipbuilding order cycle, so the recent improvement in shipbuilding conditions could feed through to equity-method earnings with some time delay.
Chosun Paint's shares trade at a substantial discount to net asset value, with the stock price sitting well below book value per share.
With annual results having swung into a loss in 2025, conventional earnings-based valuation metrics are less applicable for now, and whether profitability returns will likely be the starting point for any valuation discussion going forward.
The company has a history of dividend payments, but future continuity and size may depend on the pace of earnings recovery and whether funding pressures tied to CK EM Solution are resolved.
Market pricing appears to reflect a combination of the core paint business's relatively stable cash generation and the uncertainty surrounding the new-business subsidiary's outlook.
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
In 2026 industry outlooks, shipbuilding was classified as a robust-growth sector alongside semiconductors and biohealth. Chokwang Jotun, which holds roughly a 29% share of the marine protective-coatings market, could see improved equity-method earnings if the shipbuilding order cycle strengthens.
Chokwang Jotun is a 50-50 joint venture between Chosun Paint and Norway's Jotun, with its results reflected via the equity method.
Subsidiary CK EM Solution has signed an NDA with a domestic battery maker and completed development of thermal interface adhesives, reportedly reaching the product-approval stage. It has established overseas production sites in the United States and Hungary, positioning it to serve global customers. If the EV demand chasm eases and approval processes conclude, there is a potential path to visible sales.
In the paint business, raw materials account for 80-90% of cost of goods sold, making profitability sensitive to global oil prices and input costs. In 2023, a decline in the cost ratio combined with improved affiliate performance to drive a swing to profit. Should raw-material prices stabilize, there is room for a similar margin recovery pattern.
Even into 2026, construction output has continued to decline year-on-year, and a recovery in private housing activity is expected to remain limited. Because architectural and woodworking coatings account for a substantial portion of sales, a prolonged construction downturn directly weighs on the core business. The effect of an expanded public infrastructure budget may also be slow to materialize due to execution delays.
A KRW 13.0bn tranche of redeemable convertible preferred shares tied to CK EM Solution remains outstanding, structured with a 7% compounding annual rate and sequential put-option exercise rights. Having already bought back a KRW 21.6bn stake once, there is a risk that further redemption obligations could recur. With limited cash reserves as of the end of last year, this burden could constrain financial flexibility.
Operating losses continued for five consecutive quarters from 2025Q2 through 2026Q2. Although the loss size narrowed in 2026Q2, a return to break-even has not yet been confirmed. If the profitability recovery is delayed beyond expectations, it could also affect the pace of balance-sheet improvement.
Most paint raw materials are petrochemical synthetic inputs, so fluctuations in global oil prices directly affect costs. A high exchange-rate environment has previously added to the burden of imported raw material costs.
Because price pass-through to customers lags, profitability can be temporarily squeezed during periods of rising input costs.
CK EM Solution's sales ramp-up has been delayed, and its RCPS redemption structure could translate into financial strain. If the slowdown in EV demand growth persists, monetization of the battery thermal-material business could be pushed back further. Additional investment or stake expansion needs could increase the parent company's funding burden.
If demand weakness in traditional downstream sectors such as construction and automotive persists, recovery of core business revenue could be delayed. Because favorable shipbuilding conditions take time to feed through to Chokwang Jotun's results, near-term perception of an earnings turnaround could lag.
Given that industry cycles move differently across segments, weakness in any one area could weigh on overall performance.
Watch construction-activity data from statistical agencies and industry research institutes for signs of a recovery in construction investment and output.
Check the 2026Q3 quarterly report to see whether the narrowing of operating losses and the revenue rebound continue.
Monitor for disclosures on any further RCPS redemption, put-option exercises, or additional fund-raising related to CK EM Solution.
Shipbuilding order volumes and newbuild price indices released in this period can help gauge the potential impact on Chokwang Jotun's results and equity-method earnings.
When annual results are disclosed, check both the size of dividends received from Chokwang Jotun and whether CK EM Solution's sales have become visible.
Chosun Paint posted a consolidated operating loss and net loss in 2025 due to the construction downturn and weaker exports, and profitability at the core business has yet to fully recover, with operating losses persisting for five consecutive quarters into 2026.
That said, 2026Q2 showed a revenue rebound and a narrower loss, suggesting signs of improvement alongside continued uncertainty.
An improving shipbuilding cycle is cited as a favorable variable for equity-method affiliate Chokwang Jotun, while battery thermal-material subsidiary CK EM Solution remains a financial risk factor given delayed sales ramp-up combined with RCPS redemption obligations.
Petrochemical raw material costs, which make up 80-90% of cost of goods sold, and currency movements remain variables with a direct bearing on margins.
The stock trades at a considerable discount to net asset value, but whether earnings return to profit and whether funding pressures tied to CK EM Solution are resolved are likely to be key points to watch going forward.
Investors will want to track the upcoming Q3 results and subsidiary-related disclosures to assess whether these trends continue.
Report written 2026-09-05 · Data as of 2026-09-04
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