Paratech Company

Paratech was founded in 1973 as Geukdong Sprinkler, listed on KOSDAQ in 1997, and renamed to its current name in 2015 as a specialist in fire-safety equipment manufacturing and installation.

The business spans a manufacturing and wholesale segment producing sprinkler heads, fire valves, automatic fire extinguishers (including kitchen auto-extinguishing devices), flexible pipe joints (SP-Joint) and CPVC piping, alongside a fire-installation construction segment that installs these products on-site.

Based on domestic sales in the first quarter of 2026, fire-suppression installation work accounted for roughly 39%, sprinkler heads about 24%, automatic fire extinguishers about 11%, and fire valves about 8%.

The client base is shifting from traditional residential buildings and officetels toward hi-tech plants in semiconductors, displays, batteries and bio, with completed projects including Samsung Electronics' Giheung and Pyeongtaek campuses, Samsung C&T's semiconductor division, LG Energy Solution's Ochang plant, Coupang's Cheonan logistics center, and Lotte Biologics' Songdo Bio Campus.

In this segment the company emphasizes high-reliability products such as non-interlock valves designed to prevent malfunction-related water damage, UL/FM-certified high-flow sprinklers, and leak-detection sprinkler systems that identify minor leaks early.

Overseas, Paratech has exported to the United States and Japan on the strength of UL, FM and LPCB certifications, and has recently signed a large supply contract with SAFEX Fire Services of India to expand into new markets.

Competitively, the domestic residential fire-safety market is mature with many participants, while companies combining international certification with hi-tech plant construction experience remain limited, positioning this as a relative point of differentiation.

On an annual basis, revenue was KRW 214.1 billion in 2022 with an operating loss of KRW 1.8 billion and a net loss attributable to owners of KRW 5.3 billion, followed by a slight revenue increase to KRW 218.4 billion in 2023 even as the operating loss widened to KRW 16.0 billion and the net loss to KRW 15.0 billion.

In 2024, revenue jumped to KRW 278.0 billion year over year, and the company swung to an operating profit of KRW 3.7 billion and a net profit attributable to owners of KRW 1.7 billion.

However, in 2025 revenue fell roughly 37% year over year to KRW 173.9 billion, and the company reverted to an operating loss of KRW 13.7 billion and a net loss attributable to owners of KRW 22.0 billion.

By quarter, second-quarter 2025 revenue was KRW 44.1 billion with an operating profit of KRW 0.2 billion and a net loss of KRW 1.1 billion, but results deteriorated sharply in the third quarter to revenue of KRW 43.3 billion with an operating loss of KRW 5.0 billion and a net loss of KRW 4.9 billion, and losses were largest in the fourth quarter, with revenue of KRW 38.9 billion, an operating loss of KRW 7.1 billion, and a net loss of KRW 13.5 billion.

Entering 2026, first-quarter revenue was KRW 27.2 billion with an operating loss of KRW 6.2 billion and a net loss of KRW 5.5 billion, while second-quarter revenue was KRW 26.0 billion with an operating loss of KRW 1.1 billion and a net loss of KRW 1.5 billion — revenue continued to decline, but the scale of losses narrowed progressively from the fourth quarter of 2025.

The combined net loss attributable to owners over the most recent four quarters (third quarter 2025 through second quarter 2026) was approximately KRW 25.4 billion, underscoring a shift from the 2024 profitable stretch back into a period of sizable losses.

This volatility is attributed largely to the fire-installation construction segment, which carries a high revenue weighting and has been directly affected by the domestic construction slowdown, with the company stating it has focused on cost-structure efficiency and selective, profitability-oriented order-taking.

The global fire protection systems market exceeded USD 81.4 billion in 2025 and is projected to grow at a compound annual rate of 7.1% from 2026 to 2035, indicating the end market itself remains in a structural growth phase.

Domestically, however, the market is heavily tied to the construction cycle, and the Construction Business Survey Index shows declining outlooks for both domestic demand and exports, with capital investment and employment also expected to remain weak, keeping the domestic construction climate closer to pessimistic.

This trend weighs on the traditional residential and commercial officetel-focused fire-safety market, while investment in advanced manufacturing plants for semiconductors, displays, batteries and bio, as well as AI data centers, continues to expand, creating a relatively favorable environment for operators specialized in this segment.

Indeed, major Korean conglomerates including Samsung Electronics and the SK Group are accelerating investment to expand semiconductor production bases and build AI data centers, with the SK Group pursuing a mega-project alongside the GS Group and Naver to build large-scale AI data centers through 2028.

Such hi-tech facilities are sensitive not only to fire but also to secondary damage from fire-system malfunction or leaks, creating relatively strong demand for high-reliability products.

Competitively, the domestic residential fire-safety market is mature with numerous participants and persistent price competition, while companies with international certifications and a track record in hi-tech plant construction remain limited, making entry barriers in that segment comparatively higher.

The company has declared 2026 the founding year of 'K-fire' globalization and stated it plans to expand large project orders centered on the Middle East and Southeast Asia.

Overseas sales in 2025 were about KRW 7.9 billion, up 12.86% from KRW 7.0 billion the prior year, with Southeast Asia accounting for roughly 48% of exports and the Middle East, including the UAE and Israel, about 29%, driving the growth.

The company recently participated in Intersec Dubai 2026, one of the world's largest fire-safety exhibitions, showcasing products including high-flow sprinklers, and stated it expects this to help secure competitiveness for large projects in new markets such as Saudi Arabia.

In India, it signed a KRW 46.3 billion fire equipment supply contract with SAFEX Fire Services running from April 2026 through December 2028, which the company described as its largest single contract on record.

Domestically, it continues to strengthen its position in the hi-tech market through projects such as the fire mechanical works at Lotte Biologics' Songdo Bio Campus (contract value KRW 21.3 billion, extended to run through August 31, 2026) alongside orders from large conglomerates such as Samsung and LG for semiconductor and battery plants.

Financially, the company raised a combined KRW 21.4 billion in January 2026 through a KRW 10 billion convertible bond and a KRW 1 billion third-party equity placement, stating the proceeds would go toward working capital, balance-sheet improvement and acquisition of securities in other companies.

However, the fourth convertible bond issued in this process becomes eligible for conversion starting February 20, 2027, leaving room for a future increase in share count upon conversion.