Daeyoung Packaging

Daeyoung Packaging is a corrugated board and box manufacturer listed on the KOSPI since 1990, headquartered in Ansan, Gyeonggi Province. The company is a Daeyang Group affiliate, with group holding entity Shindaeyang Paper having steadily expanded its stake to strengthen control.

Key products include single-wall (SW) and double-wall double-faced (DW) corrugated board, double-layer core board (DM, DMB, DMA), triple-wall board (TW), and flexo-, gravure-, and offset-printed corrugated boxes.

Raw material paperboard is sourced substantially from affiliates Shindaeyang Paper and Daeyang Paper Industry; related-party transactions accounted for 48.8% of raw material and merchandise purchases in 2025.

Daeyang Group comprises two paperboard producers (Daeyang Paper Industry, Shindaeyang Paper) and four box producers (Daeyoung Packaging, Gwangsin Panji, Shindaehan Panji, Daeyang Panji), positioning it as one of Korea's leading packaging groups.

Customers span distribution, food, and delivery industries that rely heavily on corrugated boxes, within a domestic market largely dominated by large-group affiliates. The supply chain structure—paperboard, corrugated sheet, then box—means raw material price shifts are passed through sequentially to selling prices.

Full-year 2025 revenue was KRW 283.7bn, slightly up from KRW 280.8bn in 2024, while operating profit fell about 4.2% to KRW 0.88bn from KRW 0.92bn. The company attributed the decline to lower average selling prices despite higher sales volumes.

Net profit, however, turned positive at KRW 1.50bn versus a net loss of KRW 0.03bn in 2024, reflecting improvement in non-operating items.

Quarterly, revenue of KRW 71.2bn and operating profit of KRW 2.02bn in Q2 2025 and KRW 74.6bn revenue with KRW 1.57bn operating profit in Q3 2025 were followed by a sharp deterioration in Q4 2025, with revenue of KRW 67.4bn and an operating loss of KRW 2.44bn.

This continued into Q1 2026, with revenue at KRW 67.4bn and an operating loss of KRW 2.25bn, alongside a net loss attributable to owners of KRW 2.14bn. Q2 2026 then rebounded, with revenue rising to KRW 80.0bn, operating profit of KRW 2.53bn, and net profit attributable to owners of KRW 1.96bn.

As a result, the trailing four-quarter (Q3 2025 through Q2 2026) net profit attributable to owners summed to a loss of KRW 0.27bn, a different picture from the full-year figure.

Looking further back, operating profit of KRW 11.9bn in 2022 and KRW 11.1bn in 2023 contrasts sharply with the sub-KRW-1bn levels seen in 2024 and 2025.

Korea's corrugated industry is vertically integrated around large group affiliates such as Daeyang Group, Asia Paper, and Taerim Group, spanning paperboard, corrugated sheet, and box production.

Since 2024, unstable waste-paper supply and rising prices have pushed up paperboard costs, triggering a recurring domino effect that passes through to corrugated sheet and box prices.

According to the Korea Corrugated Packaging Industry Cooperative, paperboard accounts for a large share of box manufacturing costs, making price adjustments largely unavoidable when input costs rise.

In 2026, major domestic corrugated producers again raised prices in unison, and downstream box makers' supply prices rose accordingly. However, the largely small-scale downstream packaging sector has weaker bargaining power than large corporate customers, making full cost pass-through structurally difficult.

The global corrugated board packaging market is projected to grow from about USD 198.2 billion in 2025 to about USD 205.96 billion in 2026, expanding at a compound annual growth rate of 3.92% through 2034, characterizing it as a moderate-growth industry.

Domestic demand is closely tied to e-commerce and parcel delivery volumes, making it sensitive to consumption trends and logistics activity.

Daeyoung Packaging announced a corrugated board/box price adjustment effective for shipments from April 6, 2026, citing paperboard price hike notices and rising manufacturing costs as the reasons for the change.

This pricing action may have partly contributed to the Q2 2026 earnings recovery (revenue of KRW 80.0bn, operating profit of KRW 2.53bn), though the durability of the cost-to-price spread going forward remains a key point to monitor.

Given the company's heavy reliance on affiliates such as Shindaeyang Paper for raw material sourcing, timing gaps between the group's paperboard pricing policy and Daeyoung Packaging's own selling price adjustments could continue to affect quarterly results.

No separate mid-to-long-term capacity expansion or new investment plan has been confirmed to date, leaving price and cost management within existing capacity as the central variable.

If waste-paperboard and related input costs continue to trend higher, additional cost pressure could emerge, meaning the direction of future quarterly earnings will largely hinge on raw material price movements and the speed of price pass-through. No explicit management earnings guidance has been identified.