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
Moorim P&P, the only Korean paper maker with integrated pulp production, turned to an operating loss in 2025 and saw its net loss widen sharply in the first half of 2026 after booking an antitrust fine.
2025 consolidated revenue fell 9.9% year on year to KRW 731.6bn, with operating profit swinging to a KRW 24.5bn loss
Q2 2026 net loss attributable to owners ballooned to about KRW 63bn, reflecting an antitrust fine for printing-paper price collusion
As the only domestic pulp producer, the company is seen as relatively better positioned to defend costs when global pulp prices rise
Global hardwood bleached kraft pulp (SBHK) prices rose from about USD700/ton at the start of 2026 to USD780/ton by April, altering the cost backdrop
The shares trade below book value per share, while negative earnings mean profit-based valuation metrics are currently not meaningful
Founded in 1974 and listed on the KOSPI in 1989, Moorim P&P manufactures and sells bleached chemical pulp and paper products.
By revenue mix, the paper segment—including printing paper and art paper—accounts for roughly 77.3%, pulp products such as hardwood bleached kraft pulp (HW-BKP) make up about 22.3%, and other items like pellets and sawdust contribute around 0.4%.
Key subsidiaries include Daesung Chemical, Moorim Capital, and PT-Plasma, with Moorim Capital, a specialized financial firm with roughly KRW400bn in assets, having relied on parent-company guarantees to raise funding.
The company's defining industry feature is being the only Korean paper maker that produces pulp domestically and integrates it into papermaking, whereas rivals such as Hansol Paper, Korea Paper, and Hongwon Paper import pulp entirely from abroad.
Affiliate Moorim Paper sources pulp from Moorim P&P to produce printing paper, forming a vertically integrated structure, while Moorim SP focuses on specialty paper.
Management has stated that in-house pulp production gives the company a relative cost advantage over peers and that pulp-side profits help cushion papermaking costs in a mutually reinforcing structure.
Nonetheless, a sizable export share leaves the company exposed to won-dollar exchange rates and shipping costs, while weakening global demand for printing paper and price competition from low-cost Chinese and Indonesian products remain key competitive variables.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩168.3B | -₩1.4B | −0.8% |
| 2025Q3 | ₩183.8B | -₩8.6B | −4.7% |
| 2025Q4 | ₩206.5B | -₩5.6B | −2.7% |
| 2026Q1 | ₩186.2B | -₩5.8B | −3.1% |
| 2026Q2 | ₩207.9B | -₩5.1B | −2.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩774.1B | ₩68.3B | ₩44.9B | 8.8% | 6.8% | 142.1% |
| 2023 | ₩768.9B | ₩11.6B | -₩22B | 1.5% | −3.5% | 157.5% |
| 2024 | ₩811.7B | ₩36.5B | ₩22.5B | 4.5% | 3.5% | 161.8% |
| 2025 | ₩731.6B | -₩24.5B | -₩33.9B | −3.3% | −5.7% | 200.0% |
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
Moorim P&P's consolidated revenue fluctuated from KRW774.1bn in 2022 to KRW768.9bn in 2023 and KRW811.7bn in 2024, before falling 9.9% year on year to KRW731.6bn in 2025.
Operating profit shrank sharply from KRW68.3bn in 2022 to KRW11.6bn in 2023, recovered to KRW36.5bn in 2024, then swung back to a KRW24.5bn operating loss in 2025.
Net profit attributable to owners followed an equally volatile path, from a KRW44.9bn profit in 2022 to a KRW22.0bn loss in 2023, a KRW22.5bn profit in 2024, and a KRW33.9bn loss in 2025.
The company attributed the 2025 loss to one-off fixed costs tied to a new boiler facility investment and declining global pulp prices.
On a quarterly basis, Q2 2025 revenue of KRW168.3bn came with a KRW1.4bn operating loss but a KRW1.2bn net profit; losses then widened through Q3 (revenue KRW183.8bn, operating loss KRW8.6bn, net loss KRW8.8bn) and Q4 (revenue KRW206.5bn, operating loss KRW5.6bn, net loss KRW17.8bn).
In Q1 2026, revenue reached KRW186.2bn with an operating loss of KRW5.8bn and a net loss of KRW10.2bn, and in Q2 2026 revenue rose to KRW207.9bn with the operating loss narrowing slightly to KRW5.1bn, even as the net loss expanded sharply to roughly KRW63bn.
Market commentary links this to an antitrust fine for printing-paper price collusion that the Korea Fair Trade Commission imposed in April 2026, which was later revised down to about KRW57.4bn through a corrective filing and recorded as a non-operating expense in this period.
FnGuide noted that in Q1 2026 the paper segment's revenue rose on cost cuts, while the pulp segment's operating loss persisted due to supply-demand conditions and exchange-rate effects.
Korea's paper industry entered 2026 facing a combination of headwinds: rising global pulp prices, a weak won, surging shipping costs tied to Middle East geopolitical risk, and antitrust sanctions from the Korea Fair Trade Commission.
According to the Ministry of Trade, Industry and Energy's raw material price data, global hardwood bleached kraft pulp (SBHK) prices rose from around USD700/ton at the start of 2026 to USD780/ton in April, more than 20% above the roughly USD640 level seen in July of the prior year.
The won-dollar rate has hovered near KRW1,500, and the Shanghai Containerized Freight Index has climbed sharply versus levels before the Middle East risk flared up, creating a dual burden for paper makers that both import raw materials and export finished goods.
On top of this, the Fair Trade Commission in April 2026 imposed a combined KRW338.3bn in fines on six companies—Hansol Paper, Moorim P&P, Korea Paper, Moorim Paper, Hongwon Paper, and Moorim SP—for colluding on printing-paper price hikes over roughly four years starting in 2021, along with an order to re-set prices.
Moorim P&P's fine was later reduced from an initial KRW91.9bn to about KRW57.4bn through a corrective filing, but it still represents roughly 9.5% of the company's equity.
Industry-wide, weak printing-paper demand tied to the global economic slowdown persists, making it difficult to pass rising costs through to product prices.
Within this landscape, Moorim P&P is viewed as relatively better shielded from cost pressure during pulp price upcycles given its position as the only domestic pulp producer.
Management has indicated that losses in the pulp segment are narrowing and that profitability in the financial segment is improving, with expanded use of eco-friendly materials expected to support future profitability.
However, the antitrust fine imposed by the Fair Trade Commission in April 2026—revised down to roughly KRW57.4bn for Moorim P&P—carried a payment deadline of August 19, 2026, and was already booked as a non-operating expense in the first-half financials, directly driving the widened net loss.
Investment banking circles have speculated that the Moorim Group may consider selling its non-core financial affiliate Moorim Capital (93.46% owned by Moorim P&P) to help fund the fine and shore up financial soundness, though this remains market speculation rather than a confirmed plan.
Credit rating agencies Korea Ratings and Korea Investors Service have already downgraded the outlook on affiliate Moorim Paper's credit rating from 'A- (stable)' to 'A- (negative),' keeping market attention on the group's broader funding conditions.
On the raw material side, further increases in global pulp prices could support pulp-segment revenue and cost competitiveness, but a reversal to falling prices could again weigh on pulp-segment profitability, underscoring the segment's two-sided sensitivity.
Industry-wide pricing changes stemming from the Fair Trade Commission's price re-setting order, along with whether printing-paper demand recovers, are additional variables that could affect future earnings trends.
Following a net loss in 2025, Moorim P&P's net loss widened further in the first half of 2026 after the antitrust fine was booked, meaning profit-based valuation metrics are not currently meaningful. The shares trade well below book value per share, placing them in a discount range relative to net assets.
On the dividend side, a notable feature is that the company maintained cash dividends even in years with net losses, such as 2023 and 2025, though continuation of the payout will depend on future earnings and cash flow given the fine-related burden.
The debt ratio rose steadily from 142.1% in 2022 to 200.0% in 2025, a trend that needs to be read alongside the broader financial-structure changes tied to the antitrust fine.
These metrics should be interpreted together with the direction of underlying business fundamentals rather than through a simple price-level judgment alone.
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
Moorim P&P is the only Korean paper maker with an integrated system that produces its own pulp and turns it into paper, giving it a relative cost advantage over rivals when global pulp prices rise. This structure has been highlighted in 2026 as SBHK pulp prices climbed from the USD700s to USD780 per ton.
Vertical integration that supplies pulp to affiliate Moorim Paper at relatively stable prices can also contribute to group-wide cost competitiveness.
According to FnGuide, in Q1 2026 paper-segment revenue rose on cost savings, and the pulp segment's loss gradually narrowed. Quarterly operating losses have broadly stabilized, moving from KRW8.6bn in Q3 2025 and KRW5.6bn in Q4 2025 to KRW5.8bn in Q1 2026 and KRW5.1bn in Q2 2026.
Improving profitability in the financial segment has also been noted, pointing to gradual signs of operational improvement.
The Fair Trade Commission's initial fine of KRW91.9bn was reduced to about KRW57.4bn through a corrective filing, lowering the ratio to equity from 15.15% to 9.47%.
Because the fine has already been recorded as a one-off expense in the first-half 2026 financials, the potential for further financial shock from the same matter may be limited going forward. Still, even the reduced amount represents close to 10% of equity, so the financial burden has not disappeared entirely.
The Q2 2026 net loss attributable to owners widened sharply to about KRW63bn from a KRW10.2bn loss in the prior quarter, largely due to the one-off impact of the antitrust fine. Net income has swung between profit in 2022, loss in 2023, profit in 2024, and loss in 2025, making the trend difficult to predict.
This volatility stems from a business structure simultaneously exposed to pulp prices, exchange rates, and regulatory risk as separate external variables.
Structural decline in printing paper demand continues amid the digitization of documents, and a global economic slowdown has kept demand recovery unclear.
Competition in export markets with low-cost Chinese and Indonesian products has also intensified, making it difficult to defend profitability through price increases. In this environment, options beyond cost cutting or product portfolio adjustments remain limited.
The debt ratio rose from 142.1% in 2022 to 200.0% in 2025, and the added burden of the antitrust fine has heightened market concern over financial soundness. Credit rating agencies have shifted the outlook on affiliate Moorim Paper's credit rating to negative, suggesting unfavorable group-wide funding conditions.
While a potential sale of Moorim Capital to raise funds has been floated in the market, it remains unconfirmed, leaving uncertainty in place.
A simultaneous rise in global pulp prices and the won-dollar exchange rate increases the cost of overseas-sourced inputs such as wood chips. If pulp prices reverse to a downtrend, pulp-segment profitability could deteriorate sharply, given the two-sided sensitivity of earnings to price direction. Rising shipping costs can also add further burden given the company's significant export exposure.
The fine tied to the Fair Trade Commission's printing-paper price-collusion ruling has already been reflected in the financials, but uncertainty remains around compliance with the price re-setting order and any follow-up procedures.
Since criminal referrals were also decided for other companies in the industry, a prolonged process could pose additional regulatory risk industry-wide. The possibility of similar regulatory investigations or litigation recurring in the future cannot be ruled out.
Moorim Capital has struggled to raise funds on its own credit standing and has relied on guarantees from parent companies including Moorim P&P, a structure that could translate into contingent liability risk for the broader group.
A negative shift in credit rating outlooks could raise funding costs across group affiliates. If the rising debt-ratio trend continues, pressure for additional capital raising or asset sales could increase.
The Q3 2026 earnings disclosure will show whether the net loss trend stabilizes after the antitrust fine impact and whether operational improvement continues.
Watch for any further disclosures or market reports regarding funding measures such as a potential sale of Moorim Capital.
Track further movements in global SBHK pulp prices and the won-dollar exchange rate to assess their impact on pulp-segment profitability.
Check the industry's compliance with the Fair Trade Commission's price re-setting order and the progress of related follow-up procedures, including litigation involving referred companies.
Moorim P&P benefits from a structural advantage as Korea's only domestic pulp producer, giving it relative cost competitiveness during periods of rising raw material prices, but it is simultaneously grappling with the dual burden of an operating loss turn in 2025 and a widened net loss in H1 2026 from the antitrust fine.
Quarterly operating losses have gradually narrowed since the second half of 2025, but the Q2 2026 net loss expanded sharply due to the one-off fine impact.
On the industry side, pulp prices, exchange rates, and shipping costs remain the three key cost variables, now compounded by regulatory risk, while the structural decline in printing-paper demand remains a longer-term challenge.
Financially, a rising debt ratio combined with the fine burden has led to negative credit outlook revisions, and funding measures such as a potential Moorim Capital sale remain at the stage of market speculation rather than confirmed plans.
On valuation, with profit-based metrics not meaningful due to the net loss, shares trade below book value per share. The future earnings trajectory will likely hinge on the direction of pulp prices, stabilization of the financial structure after the fine, and whether industry-wide demand recovers.
Report written 2026-09-05 · Data as of 2026-09-04
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