PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩180 per share · Prices as of the 2026-10-02 close
Taekyung Chemical, the domestic leader in liquid carbon dioxide and dry ice, has posted three consecutive quarters of operating losses from Q4 2025 through Q2 2026 amid feedstock instability and price competition, putting core profitability to the test.
The company maintains the No.1 position in Korea with a 25% share of the liquid CO2 market and 35% share of the dry ice market.
Consolidated operating margin has fallen sharply for three straight years, from 25.3% in 2023 to 3.4% in 2025.
Operating losses have persisted for three straight quarters from Q4 2025 to Q2 2026, while net income remained positive over the same period due to non-operating items.
The company is pursuing a dry-ice cleaning equipment sales business as a new growth driver, expanding into the industrial cleaning market.
The broader industry shows a dual structure of apparent oversupply from capacity additions coexisting with unstable feedstock CO2 supply.
Founded in 1970, Taekyung Chemical is Korea's largest specialized producer of liquid carbon dioxide and dry ice, manufacturing high-purity liquid CO2 and dry ice from byproduct CO2 generated at refining and petrochemical facilities.
Revenue is split between the carbon gas business and the environmental business, with the carbon gas segment accounting for over 90 percent of total sales and standing as the core operation, as one industry report noted.
The company holds the No.1 domestic market position, with a 25 percent share in liquid CO2 and 35 percent in dry ice as of 2023, according to analyst commentary.
Unlike rivals that typically operate single plants, Taekyung runs multiple production sites and secures stable feedstock from suppliers including Lotte Chemical, LG Chem and Hanwha Total, which analysts cite as a competitive edge.
Its major end markets are diversified across shipbuilding (welding), dry ice, food and beverage, and semiconductor cleaning applications.
On the capacity front, the company completed an expansion of production facilities at its Onsan plant in January 2025 and a dry-ice production line expansion at its Daesan plant in January 2024, according to regulatory filings.
As part of the Taekyung Group, affiliates include Taekyung Eco, which produces acetylene, oxygen, carbon gas, nitrogen and other industrial gases along with environmental treatment agents, and Namyoung Electric, a lighting manufacturer.
More recently, the company has moved beyond materials sales to promote a dry-ice cleaning equipment sales business as a new growth driver, presenting a materials-centered total solution and expanding into cleaning markets for automotive, electronic components and chemical plants.
The competitive landscape features domestic carbon makers including Sinbio Chemical and Donggwang Chemical, which are reportedly planning sequential capacity additions, creating a structure where market-share competition and feedstock-securing competition coexist.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩14.7B | ₩800M | 5.2% |
| 2025Q3 | ₩16.3B | ₩1B | 5.8% |
| 2025Q4 | ₩14.5B | -₩700M | −4.9% |
| 2026Q1 | ₩14B | -₩700M | −4.7% |
| 2026Q2 | ₩12.2B | -₩1.8B | −14.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩59.6B | ₩10.4B | ₩8.9B | 17.4% | 6.0% | 13.6% |
| 2023 | ₩70.7B | ₩17.9B | ₩17.4B | 25.3% | 10.8% | 12.9% |
| 2024 | ₩71.1B | ₩13.7B | ₩12.6B | 19.3% | 7.7% | 12.5% |
| 2025 | ₩61.3B | ₩2.1B | ₩8.7B | 3.4% | 5.1% | 30.1% |
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
Taekyung Chemical's consolidated revenue rose modestly from KRW 59.6 billion in 2022 to KRW 70.7 billion in 2023 and KRW 71.1 billion in 2024, before dropping sharply to KRW 61.3 billion in 2025.
Operating profit peaked at KRW 17.9 billion (25.3% margin) in 2023, then contracted for three straight years to KRW 13.7 billion (19.3%) in 2024 and just KRW 2.1 billion (3.4%) in 2025, significantly eroding the earnings base.
Net income attributable to owners similarly declined from KRW 17.4 billion in 2023 to KRW 12.6 billion in 2024 and KRW 8.7 billion in 2025, but at a slower pace than the operating profit decline, indicating that non-operating items have been cushioning the bottom line.
On a quarterly basis, the company maintained modest operating profit through Q3 2025 (revenue of KRW 16.3 billion, operating profit of KRW 950 million), but swung to an operating loss of KRW 706 million in Q4 2025, followed by losses of KRW 653 million in Q1 2026 and KRW 1.81 billion in Q2 2026 -- three consecutive quarters of losses with widening magnitude.
By contrast, net income attributable to owners stayed positive over the same span, at KRW 3.15 billion in Q4 2025, KRW 1.73 billion in Q1 2026 and KRW 343 million in Q2 2026, suggesting non-operating gains have offset a large portion of the operating weakness.
This divergence between operating and net results can be read as a sign that the underlying profitability of the core carbon gas and dry ice business has fundamentally weakened.
The debt ratio, which had held in a stable 12-14% range from 2022 to 2024, jumped to 30.1% in 2025, while operating cash flow fell from KRW 20.3 billion in 2023 to KRW 7.2 billion in 2025, confirming a parallel contraction in core cash generation.
Korea's liquid CO2 and dry ice market is entering a phase of heightened structural volatility.
According to industry trade press, the market currently appears to be in a state of oversupply due to capacity additions, but internally it faces a triple-layered problem combining feedstock instability and price-collapse pressure.
The root cause cited is that roughly 40 percent of domestic feedstock CO2 originates from ethylene oxide and ethylene glycol (EO/EG) processes, and prolonged Chinese-driven global EG oversupply and weak prices have led major producers such as LG Chem, Lotte Chemical and Hanwha TotalEnergies to cut production or shut down lines, creating a paradox where installed capacity has grown even as actual feedstock availability has tightened.
Indeed, a June 2026 report noted that carbon manufacturers were experiencing a supply crunch, as reduced crude oil imports lowered refinery and petrochemical plant utilization rates, cutting CO2 generation to roughly half of normal levels.
This suggests a dual market condition where apparent oversupply and real feedstock shortages coexist.
On the competitive front, domestic carbon makers including Taekyung Chemical, Sinbio Chemical and Donggwang Chemical are reportedly planning sequential capacity expansions, pointing to continued market-share competition.
Industry sources flag a 'chicken game'-style price war as the most concerning scenario, warning that if low-price offers spread to secure short-term volume, newly expanded producers with heavy depreciation burdens could face the greatest financial strain.
Taekyung has secured relative stability within the industry through multiple production sites and diversified feedstock sourcing, but it is not fully insulated from the low-margin structure affecting the sector as a whole.
With previously delayed capacity expansions now completed, the company is seeking to rebuild profitability. At the March 2026 annual general meeting, CEO Park Ki-hwan laid out a plan to expand market dominance by developing new carbon gas customers and increasing dry ice exports.
The centerpiece of new growth strategy is the dry-ice cleaning equipment sales business, which the company is positioning as a materials-centered total solution while recruiting a nationwide network of specialized dealers.
On the supply-demand side, the dry ice peak season from May to August is expected to bring additional daily demand of 400 to 500 tons, and one report suggested that a supply crunch beginning in the demand-surge period could lead to price increases for carbon-containing beverages and other products.
This implies that continued feedstock shortages could create upward pressure on sale prices in the second half, though whether this actually translates into improved spreads will depend on feedstock-securing capability and competitors' pricing behavior, leaving uncertainty intact.
The new dry-ice cleaning equipment business remains at an early dealer-recruitment stage, and the timing and scale of its revenue contribution have not yet become visible.
Taekyung Chemical's shares tend to trade at a discount to net asset value, which, compared with the valuation levels that prevailed during the high-margin period of 2023 when operating margin was around 25 percent, can be seen as largely reflecting the subsequent shrinkage in earnings.
Profitability metrics based on the most recent four quarters sit in a range well below the company's earnings peak, meaning the multiple the market assigns has also come down relative to the prior high-margin period.
Dividends have been maintained despite the earnings slowdown, though the dividend appeal relative to the share price does not stand out compared with other dividend-paying names in the sector.
Given the company's relatively small market capitalization, price volatility driven by trading volume and supply-demand shifts can also be more pronounced.
Any valuation assessment should weigh both the recent run of three consecutive quarters of operating losses and the structural feature of net income being cushioned by non-operating items.
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
The company retains the No.1 industry position with a 25 percent share of the liquid CO2 market and 35 percent of dry ice. Multiple production sites and diversified feedstock suppliers including Lotte Chemical, LG Chem and Hanwha Total give it a more stable sourcing structure than rivals.
Capacity expansions at the Onsan and Daesan plants have also been completed. This could provide an edge in meeting peak-season demand and in negotiating leverage.
The company is capitalizing on rising demand for wastewater-free, eco-friendly cleaning solutions in advanced industrial settings such as automotive, electronic component and chemical plant sites.
Rather than simply selling equipment, it is positioning a materials-centered total solution and building a nationwide dealer network. If successfully established, this could become a new revenue stream linked to its existing materials business.
Reports have highlighted rising price pressure as reduced refinery utilization curbs feedstock CO2 supply just as dry ice peak-season demand surges. If supply-side tightening materializes, it could positively affect selling prices and spreads.
However, whether this actually occurs depends on feedstock-securing capability and competitors' pricing behavior.
Operating losses have continued from Q4 2025 through Q2 2026, with the loss size widening from KRW 706 million to KRW 653 million to KRW 1.81 billion. This raises concerns that the margin structure of the core carbon gas and dry ice business has fundamentally weakened.
Because net income has been cushioned by non-operating items, the recovery of the core business needs to be verified separately.
Operating margin fell for three straight years, from 25.3% in 2023 to 19.3% in 2024 and just 3.4% in 2025. Operating cash flow also declined from KRW 20.3 billion to KRW 7.2 billion over the same period, reflecting weakened cash generation. With a thinner earnings base, the buffer against further shocks may have diminished.
Sequential capacity additions by competitors have kept the market in an oversupply phase, and the industry views the spread of low-price offers to secure short-term volume, potentially escalating into a chicken-game-style price war, as the most concerning scenario.
In such a case, newly expanded producers could face the greatest financial pressure. If feedstock shortages resurface after low-price contracts are signed, profitability could deteriorate further.
About 40 percent of domestic feedstock CO2 originates from EO/EG processes, and continued production cuts and shutdowns at related producers are destabilizing feedstock availability. Lower refinery utilization can also reduce feedstock CO2 generation and raise procurement costs.
A persistent gap between apparent capacity additions and actual utilization rates would increase cost-management pressure.
Fluctuations in the shipbuilding cycle and a slowdown in the growth of chilled and frozen fresh-food delivery could weigh on sales of liquid CO2 and dry ice. A decline in demand for the environmental business segment has also been observed. Continued delays in end-market recovery could push back the timing of a sales rebound.
If feedstock shortages recur after low-price contracts are signed, additional transport and external sourcing costs could entrench a loss-making structure. As newly expanded producers carry heavier depreciation burdens, intensifying low-price competition could increase financial pressure across the industry. The debt ratio's sharp rise to 30.1% in 2025 from the prior year is also worth monitoring.
After the dry ice peak season, it will be important to check whether feedstock CO2 supply normalizes and whether reported price increases for carbon-containing beverages materialize.
The Q3 2026 earnings disclosure, including any preliminary results, should be checked to see whether the operating loss streak has reversed and how revenue and margins have trended.
This is the first period in which the status of dealer contracts for the dry-ice cleaning equipment business and any early revenue contribution can be checked.
This is when the finalized FY2026 consolidated results, dividend policy, and progress on new customer acquisition and export expansion are officially announced.
Taekyung Chemical has long held the No.1 position in Korea's liquid CO2 and dry ice market, building structural competitiveness through multiple production sites and diversified feedstock sourcing.
However, operating margin has contracted sharply from around 25% in 2023 to around 3% in 2025, and operating losses have persisted for three consecutive quarters from Q4 2025 through Q2 2026, signaling a warning for core profitability.
Net income remained positive over the same period thanks to non-operating factors, but this should not necessarily be read as offsetting the structural weakness in operating results.
On the industry side, a dual condition persists in which apparent oversupply from capacity additions coexists with feedstock instability driven by EO/EG production cuts, and how summer peak-season supply tightening affects second-half pricing will be a key point to watch.
The company is seeking a profitability turnaround through its new dry-ice cleaning equipment business, export expansion and new customer development, but these initiatives remain at an early stage with results not yet visible.
Investors will want to monitor the upcoming Q3 earnings disclosure, feedstock supply-demand trends, and progress on the new business together when forming a view.
Report written 2026-09-05 · Data as of 2026-09-04
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