KOSPIOthers009200

Moorim Paper

₩1,532▲ 1.26%2026-10-02 close

Market Cap

₩63.2B

Turnover

₩59,635,125

Volume

40,000 shares

Shares out.

41.6M

PER

—

PBR

0.2×

EPS

-₩1,528

Dividend Yield

8.25%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩125 per share · Prices as of the 2026-10-02 close

Report overview

Earnings Rebound Clouded by Antitrust Fine

Moorim Paper's second-quarter 2026 operating profit jumped on favorable exchange rates and tariff refunds, but a Korea Fair Trade Commission fine pushed the bottom line into loss, leaving structural demand decline in the core printing paper business and balance-sheet relief as the key things to watch.

1
Q2 2026 operating profit surged 184.7% year-on-year to about KRW 28.0bn, but a Korea Fair Trade Commission fine drove the owners' net loss to roughly KRW 39.5bn.
2
Full-year 2025 operating margin fell sharply to 0.5% from 6.5% in 2024, and net profit attributable to owners swung from a profit to a loss.
3
The antitrust fine tied to printing paper price collusion was reduced from an initial KRW 45.8bn to about KRW 28.6bn through a self-reporting leniency program, with a payment deadline of August 19, 2026.
4
International pulp prices have been recovering since bottoming in August 2025, which has mixed implications for cost structure and subsidiary Moorim P&P's earnings under the company's integrated pulp-to-paper model.
5
Domestic credit rating agencies had already downgraded Moorim Paper's rating outlook to negative before the fine, with net debt to EBITDA running well above the threshold cited for a potential downgrade.

Business structure

Moorim Paper operates a consolidated group across five business units -- paper, pulp, finance, wholesale, and other -- with the manufacture and sale of printing paper (art paper and woodfree paper) as its core business.

Subsidiary Moorim P&P is the only domestic producer of bleached chemical pulp, supplying the key raw material for paper production under an integrated pulp-to-paper structure.

Moorim USA and Moorim Europe handle overseas paper sales, while Moorim Capital runs a specialized lending business, Moorim Powertech operates in energy, and Miraegaebal runs a resort, adding non-paper diversification.

Hansol Paper holds the overall number one position in Korea's paper industry, while Moorim Paper leads specifically in the printing paper segment, with Korea Paper Co. cited as another major competitor.

Domestic printing paper demand is roughly 1.9 million tons, while industry production capacity is about 2.5 million tons, meaning the excess is exported; Moorim Paper's overseas sales accounted for about 47% of total revenue in 2022, covering developed markets in North America and Europe as well as more than 100 countries across Southeast Asia and the Middle East.

In the first half of 2026, the paper segment generated the largest revenue at roughly KRW 503.4bn but only KRW 1.86bn in operating profit, while the wholesale, finance, and other segments contributed relatively more to profit.

Wood chips, the raw material for pulp, are sourced both domestically and from imports such as Vietnam and Thailand, and Moorim Paper procures part of its annual pulp needs through affiliate Moorim P&P.

This structure is double-edged: rising international pulp prices strengthen cost competitiveness, but falling pulp prices sharply weaken Moorim P&P's profitability and weigh on consolidated results.

Earnings trend

Quarterly revenue · Operating profit

₩300.2B₩9.8B25Q2₩308.1B-₩3.5B25Q3₩337.5B-₩5.5B25Q4₩307.4B₩200M26Q1₩337.7B₩28B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩1.4T₩96.3B2022₩1.3T₩67.8B2023₩1.4T₩89.4B2024₩1.3T₩6B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩300.2B	₩9.8B	3.3%
2025Q3	₩308.1B	-₩3.5B	−1.1%
2025Q4	₩337.5B	-₩5.5B	−1.6%
2026Q1	₩307.4B	₩200M	0.1%
2026Q2	₩337.7B	₩28B	8.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩1.4T	₩96.3B	₩15.2B	6.9%	3.6%	252.4%
2023	₩1.3T	₩67.8B	₩1.4B	5.1%	0.3%	251.1%
2024	₩1.4T	₩89.4B	₩40.7B	6.5%	9.0%	242.6%
2025	₩1.3T	₩6B	-₩15.4B	0.5%	−3.6%	270.6%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21

Earnings analysis

Full-year 2025 revenue came to KRW 1,264.9bn, down 8.6% from KRW 1,384.4bn in 2024, while operating profit collapsed to KRW 5.95bn (0.5% margin) from KRW 89.4bn (6.5% margin) in 2024. Net profit attributable to owners swung from a KRW 40.7bn profit in 2024 to a KRW 15.4bn loss in 2025.

Looking back to 2023 (revenue KRW 1,321.9bn, operating profit KRW 67.8bn, 5.1% margin) and 2022 (revenue KRW 1,399.1bn, operating profit KRW 96.3bn, 6.9% margin), both revenue and margin have traced a clear downward trend over the past four years.

On a quarterly basis, the company posted consecutive operating losses in Q3 2025 (KRW -3.54bn) and Q4 2025 (KRW -5.48bn), with the owners' net loss widening to KRW 15.7bn in Q4. Q1 2026 operating profit returned to near breakeven at KRW 0.16bn, but the owners' net loss continued at KRW 4.1bn.

Q2 2026 showed clear improvement with revenue of KRW 337.7bn and operating profit of KRW 28.0bn (roughly 8.3% margin), reportedly driven by favorable currency movements and tariff refunds.

However, the owners' net loss for the same quarter widened to about KRW 39.5bn, moving in the opposite direction of the operating improvement -- a result decisively driven by the one-off impact of the Korea Fair Trade Commission's antitrust fine over printing paper price collusion.

The company has attributed the underlying earnings weakness to temporary factors including falling pulp prices, weaker profitability at affiliate Moorim P&P, and a production halt during the replacement of an eco-friendly recovery boiler.

Industry analysis

Domestic printing paper demand has stagnated at around 1.9 million tons, while industry production capacity of roughly 2.5 million tons means the excess must be absorbed through exports, with structurally declining paper demand due to digitalization acting as a persistent headwind.

In export markets, intensifying price competition from low-cost Chinese and Indonesian products has been cited as a factor pressuring profitability across the domestic paper industry.

International pulp prices, the key raw material, bottomed around USD 630 per ton in August 2025 before rebounding to roughly USD 780 per ton by around April 2026, with separate data also showing a rise from USD 645 in June 2025 to USD 740 by February 2026.

The paper industry's typical operating margin is reported to run around 3%, making margins highly sensitive to pulp price swings given the industry's heavy raw-material cost weighting.

In terms of competitive positioning, Hansol Paper is the largest domestic paper maker overall, spanning industrial paper, printing paper, and specialty paper, while Moorim Paper leads specifically within printing paper, with Korea Paper Co. cited as another major rival in printing paper and paperboard.

In April 2026, the Korea Fair Trade Commission found that six printing paper makers -- Hansol Paper, Moorim Paper, Moorim P&P, Korea Paper Co., Moorim SP, and Hongwon Paper -- had colluded on pricing for nearly four years, imposing a combined fine of KRW 338.3bn along with an order to reset prices back to pre-collusion levels, a measure last used after the 2006 flour price-fixing case, requiring biannual reporting of price changes for the following three years.

The total fine was later reduced to about KRW 144.1bn after a self-reporting leniency program was applied, and some firms moved to cut discounts or raise prices shortly after the reduction, drawing backlash from downstream printing customers.

Outlook

The company has stated that once the new eco-friendly recovery boiler is fully operational, improved efficiency in electricity and steam generation could deliver roughly KRW 50bn in annual EBITDA-based cost savings.

Large-scale capital expenditure since 2023, including the replacement of a high-efficiency eco-friendly boiler at the Ulsan plant, is seen as having largely concluded, with some analysis suggesting the potential for further sharp increases in net debt appears limited going forward.

However, the credit rating industry has suggested that even if pulp prices rebound to some degree, weaker domestic and export printing paper supply-demand conditions, rising wood chip prices, and increased fixed-cost burdens could constrain the extent of earnings recovery.

Starting in July-August 2026, discount reductions on some printing paper products began to take effect following the antitrust leniency reduction; this had no direct impact on Q2 results but how it feeds through to revenue and margins in the second half is worth monitoring.

At the same time, the FTC's price-reset order requires biannual reporting of price changes for the next three years, which could constrain the extent of any large-scale price increase as a margin-recovery lever.

Separately, investment-banking industry sources have floated the possibility that the Moorim group could sell non-core financial affiliate Moorim Capital to help fund the antitrust fine and unwind guarantee obligations, though this remains a market speculation rather than an officially confirmed plan.

Valuation

PER

—

PBR

0.2×

ROE

-15.2%

EPS

-₩1,528

BPS

₩9,203

Dividend per share

₩125

With Moorim Paper's recent net income in loss territory, a conventional price-to-earnings ratio is difficult to interpret meaningfully at this stage. On a price-to-book basis, the shares trade at a level well below book value per share, placing them in a discount range relative to net assets.

That said, this needs to be weighed against a capital structure with a debt ratio above 270% and the possibility of further equity erosion from the antitrust fine.

The company resolved a cash dividend at its most recent annual settlement, but whether that dividend policy continues going forward may hinge on the pace of earnings recovery given the current net loss and expanding financial burden.

Overall, valuation in this name is tied to two intertwined variables: the direction of earnings (whether losses turn around) and the pace of balance-sheet repair.

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 2026-08-21

Bull factors

Sharp Q2 Operating Profit Jump, Signs of Cost Structure Improvement

Q2 2026 operating profit rose 184.7% year-on-year to about KRW 28.0bn, reportedly driven by favorable currency movements and tariff refunds. The company has also stated that full operation of a new eco-friendly recovery boiler could deliver roughly KRW 50bn in annual EBITDA-based cost savings.

With large-scale capex viewed as largely concluded, some analysis suggests further sharp increases in net debt appear limited going forward.

Domestic Leadership in Printing Paper and Integrated Raw Material Structure

Moorim Paper maintains the number one domestic position specifically within printing paper, and through subsidiary Moorim P&P produces the country's only domestic bleached chemical pulp under an integrated raw-material-to-production structure.

This is a structural factor that can support cost competitiveness when international pulp prices rise. The company also derives a substantial share of revenue from exports to more than 100 countries, diversifying its demand base.

Potential Balance-Sheet Relief Through Non-Core Asset Disposal

Investment-banking industry sources have floated the possibility that the Moorim group could sell non-core financial affiliate Moorim Capital to help fund the antitrust fine and unwind guarantee obligations.

If a sale were completed, a substantial portion of the proceeds could reportedly flow directly into cash for the affiliates carrying the heaviest fine burden. It should be noted, however, that this remains market speculation rather than an officially confirmed plan.

Bear factors

Fine-Related Cash Outflow and Weakening Financial Health

Analysis has suggested that once the fines imposed on Moorim Paper and subsidiary Moorim P&P are reflected in the financial statements, the debt ratio could climb from 270.6% into the 290% range.

As of the end of 2025, net debt to EBITDA already stood at 15.7 times, well above the 7-times threshold cited by credit rating agencies as a downgrade trigger. With rating outlooks already downgraded to negative, a further ratings cut cannot be ruled out.

Structural Decline in Printing Paper Demand and Low-Cost Export Competition

Domestic printing paper demand has been structurally stagnating and declining due to digitalization, while domestic production capacity exceeds demand, forcing reliance on exports for the surplus.

In export markets, intensifying price competition from low-cost Chinese and Indonesian products has been cited as a margin pressure factor. In the first half of 2026, the paper segment's operating profit plunged 92.5% year-on-year to just KRW 1.86bn.

Double-Edged Nature of the Integrated Pulp-to-Paper Structure

When international pulp prices fall, subsidiary Moorim P&P's profitability drops sharply, directly hitting consolidated results -- a vulnerability of the integrated raw-material-to-production structure.

Credit rating industry sources have suggested that even if pulp prices rebound to some degree, rising wood chip prices and increased fixed-cost burdens could constrain the extent of earnings recovery. Indeed, the 2025 earnings slowdown was attributed in part to falling pulp prices and weaker affiliate profitability.

Risk factors

Financial and Credit Risk

With a debt ratio already above 270%, the additional burden from the antitrust fine could further weaken financial stability metrics. Net debt to EBITDA is already well above the threshold credit rating agencies have cited for a downgrade, meaning not just the outlook but the rating itself could be adjusted.

Interest expenses reportedly running well above operating profit is another factor adding to the financial strain.

Pricing and Regulatory Risk

Under the FTC's price-reset order, prices must be rolled back to pre-collusion levels, and the company faces a regulatory burden of reporting price changes biannually for the next three years.

This has been assessed as constraining the price-increase lever the paper industry could otherwise use to restore profitability. Backlash from downstream printing customers following recent discount cuts and price adjustments also makes sales volume impact worth watching.

Raw Material and Currency Risk

Given the paper industry's characteristically high raw-material cost weighting, margins are heavily influenced by swings in international pulp and wood chip prices.

International pulp prices have been rebounding since bottoming in August 2025, raising the possibility of renewed cost pressure, which under the integrated structure has mixed effects on the pulp and paper segments.

Currency volatility is also a direct performance variable given the company's substantial share of overseas revenue.

What to watch next

Around November 2026
Q3 2026 preliminary earnings disclosures should be checked to see whether the one-off fine impact from Q2 has faded and whether core business margins are genuinely improving.
In the second half of 2026
Watch whether periodic reviews by domestic credit rating agencies convert the current negative outlook into an actual rating downgrade, and whether the net debt to EBITDA metric shows improvement.
In the second half of 2026
It is worth monitoring whether a potential sale of Moorim Capital becomes officially confirmed and progresses, and whether it delivers tangible balance-sheet improvement.
In the fourth quarter of 2026
This is a point to check how the discount reductions and price adjustments implemented since July-August 2026 feed through to revenue and paper segment margins, and whether customer backlash affects sales volumes.

Overall view

Moorim Paper's Q2 2026 operating profit improved sharply on favorable currency and tariff refund effects, but an unusual earnings pattern emerged as the owners' net loss widened substantially due to a Korea Fair Trade Commission fine over printing paper price collusion.

For full-year 2025, core profitability clearly deteriorated, with the operating margin falling to 0.5% and net income swinging to a loss, and quarterly net losses have continued into 2026.

Positive variables cited include the rebound in international pulp prices, expected cost savings from the new recovery boiler coming online, and the possibility of balance-sheet improvement through a non-core asset sale, while negative variables include structural decline in printing paper demand, low-cost export competition, constraints on margin recovery from the FTC's price-reset order, and an already elevated debt ratio alongside downward credit rating pressure.

The company resolved a cash dividend at its most recent annual settlement, but whether it continues going forward will depend on the pace of earnings recovery and easing of financial burdens.

Ultimately, this stock sits at an intersection of an improving operating trend and simultaneous one-off fine and balance-sheet risks, with the next quarterly results and news on credit ratings and any non-core asset sale likely to be the key variables shaping the path ahead.

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.