PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩250 per share · Prices as of the 2026-10-02 close
Haesung Industrial is a holding company built on a real-estate leasing base with four business units—paper, industrial goods, automotive parts, and semiconductor components—that posted a large net loss in 2025 before showing quarter-over-quarter improvement in 2026, driven by recovery at its semiconductor-components subsidiary.
Holding structure: the company runs paper, auto-electronics, and semiconductor-component businesses through Korea Paper (84.69% stake), Keyang Electric Machinery, and separately listed Haesung DS, alongside a real-estate leasing operation.
2025 consolidated revenue reached KRW 2,260.1 billion (+1.8%), operating profit fell to KRW 41.8 billion (-41.4%), and net income attributable to owners swung to a loss of KRW 24.0 billion.
Owners' net income turned from a KRW 32.5 billion loss in Q1 2026 to a KRW 7.4 billion profit in Q2 2026, while operating profit hit KRW 27.3 billion, the highest of the past five quarters.
Listed subsidiary Haesung DS is expected to see improved 2026 results on recovering demand for AI/server DDR5 substrates and automotive lead frames.
The paper segment faces domestic printing-paper demand weakness and oversupply, while the auto-electronics segment continues to face soft automotive demand—two offsetting segment-level risks.
Haesung Industrial was established in 1954 and listed on KOSDAQ in 1999, originating from a real-estate leasing and management business.
Through a 2020 merger with the former Korea Paper and 2021 in-kind contributions of Keyang Electric Machinery and Haesung DS, the company expanded into four business units: paper, industrial goods, automotive electronics, and semiconductor components.
The real-estate segment leases and manages office buildings, factory condominiums, retail space, and warehouses in Seoul. The paper segment, run through subsidiary Korea Paper, produces printing paper, coated paperboard, and specialty paper, with Haesung Industrial holding an 84.69% stake as controlling shareholder.
The industrial-goods and automotive-electronics segment, run through Keyang Electric Machinery, produces power tools, small engines, and automotive motors.
The semiconductor-components segment operates through separately KOSPI-listed Haesung DS, which produces lead frames and package substrates for semiconductor packaging, with customers including Infineon, Samsung Electronics, and SK Hynix.
Among the four segments, semiconductor components and automotive electronics are heavily exposed to the automotive and semiconductor end-market cycles, while paper faces structurally slowing domestic printing-paper demand.
As a holding company overseeing 12 consolidated subsidiaries, Haesung Industrial directs overall group management.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩568.1B | ₩5.3B | 0.9% |
| 2025Q3 | ₩576.7B | ₩20.9B | 3.6% |
| 2025Q4 | ₩569.8B | ₩9.1B | 1.6% |
| 2026Q1 | ₩599.4B | ₩18.2B | 3.0% |
| 2026Q2 | ₩659B | ₩27.3B | 4.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩2.5T | ₩210.4B | ₩25.6B | 8.3% | 3.3% | 88.6% |
| 2023 | ₩2.3T | ₩106.3B | ₩2.5B | 4.6% | 0.3% | 84.2% |
| 2024 | ₩2.2T | ₩71.4B | -₩3.4B | 3.2% | −0.5% | 92.3% |
| 2025 | ₩2.3T | ₩41.8B | -₩24B | 1.9% | −3.4% | 101.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
2025 consolidated revenue reached KRW 2,260.1 billion, a slight increase from KRW 2,220.4 billion in 2024, but operating profit fell over 41% to KRW 41.8 billion from KRW 71.4 billion, and net income attributable to owners swung to a loss of KRW 24.0 billion.
The operating margin declined for four consecutive years, from 8.3% in 2022 to 4.6% in 2023, 3.2% in 2024, and 1.9% in 2025. The debt ratio fell from 88.6% in 2022 to 84.2% in 2023 before rising again to 92.3% in 2024 and 101.0% in 2025.
On a quarterly basis, owners' net income improved from KRW 2.7 billion in Q2 2025 to KRW 8.5 billion in Q3 2025, then posted a large loss of KRW 39.7 billion in Q4 2025, followed by another loss of KRW 32.5 billion in Q1 2026.
However, Q2 2026 saw revenue of KRW 659.0 billion, operating profit of KRW 27.3 billion, and owners' net income of KRW 7.4 billion—the highest revenue and operating profit of the past five quarters, with net income returning to profit.
Over the trailing four quarters (Q3 2025 through Q2 2026), cumulative owners' net income remained negative at KRW -56.3 billion, but quarterly operating profit moved from KRW 20.9 billion to KRW 9.1 billion, KRW 18.2 billion, and KRW 27.3 billion, showing a recovery pattern with Q4 2025 as the trough.
These swings appear to reflect a mix of recovery in the semiconductor-components segment, weakness in automotive electronics and paper, and non-operating factors. Annual operating cash flow fluctuated significantly, from KRW 253.1 billion in 2023 to KRW 31.6 billion in 2024 and KRW 135.6 billion in 2025.
In the semiconductor back-end materials market, memory inventory adjustments have largely concluded and rising AI server and device demand has driven a recovery in demand for lead frames and package substrates.
In automotive semiconductors, inventory adjustments have ended and order volumes are increasing again, with rising copper and other raw-material costs passed through to selling prices, improving margins in the lead-frame segment.
Growing demand for server-oriented DDR5 memory substrates is contributing to a turnaround to profitability in the package-substrate segment.
In contrast, the domestic printing-paper market faces intensified competition from a combination of weakening consumption and domestic oversupply, and the company has pursued a strategy of protecting market share through innovation centered on higher-value-added products.
The automotive electronics-parts market is heavily influenced by the finished-vehicle industry cycle, and assessments point to continued weakness in that segment.
The semiconductor packaging substrate market is described as one where large competitors concentrate on high-end products while cost-competitive players benefit relatively in the mid-to-low-end substrate segment.
For listed subsidiary Haesung DS, KB Securities projected in a February 2026 report 2026 consolidated revenue of KRW 784.3 billion (+20.0% year over year) and operating profit of KRW 108.9 billion (+134.3%, 13.9% operating margin), citing rising utilization in package substrates and growing automotive lead-frame sales.
This suggests the semiconductor-components segment could be a key driver of consolidated earnings improvement at Haesung Industrial in 2026. However, brokerage estimates for Haesung DS's 2026 operating profit range widely from KRW 79.0 billion to KRW 128.2 billion, reflecting meaningful forecast uncertainty.
The paper segment is expected to continue defending market share through a higher-value-added product mix amid weakening printing-paper demand, with no separately confirmed plans for major capacity expansion or new lines.
The automotive-electronics segment remains tied to the automotive industry cycle, and a gradual recovery there needs to be monitored.
The company has in recent years combined common-share cash dividends with tax-advantaged capital-reserve reduction dividends, and whether this dividend policy continues going forward is a point worth confirming.
As a holding company, Haesung Industrial is subject to a so-called 'holding-company discount,' where subsidiary equity value is not fully reflected in the market price, and this is compounded by the recent period of net losses—both factors worth weighing together when interpreting the relationship between share price and net asset value.
Because owners' net income over the trailing four quarters still shows a net loss, this earnings volatility should be considered alongside any assessment of price relative to book value.
The company has a history of combining common-share cash dividends with tax-advantaged capital-reserve reduction dividends, a distinction worth keeping in mind when looking at dividend-related metrics.
Whether the recovery at the semiconductor-components subsidiary continues remains a key variable for interpreting consolidated earnings and valuation.
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
Rising AI and server-related demand along with the end of automotive-semiconductor inventory adjustments are driving recovery in lead-frame and package-substrate demand.
This is reflected in Q2 2026's return to profit at the owners' net income level and operating profit of KRW 27.3 billion, the highest in five quarters. Multiple brokerage reports project earnings improvement for 2026 at listed subsidiary Haesung DS.
On top of the stable cash flow base from real-estate leasing, the company holds heterogeneous business units spanning paper, industrial goods/automotive electronics, and semiconductor components, mitigating concentrated exposure to any single industry cycle. Because recovery timing can differ across segments, there is a portfolio-level diversification effect.
The debt ratio stood at a manageable 101.0% in 2025. Operating profit has recovered for three consecutive quarters since bottoming in Q4 2025, and revenue also expanded to KRW 659.0 billion in Q2 2026.
The domestic printing-paper market faces intensifying competition from a combination of slowing consumption and oversupply. While innovation toward higher-value-added products helps defend market share, the underlying market contraction remains a constraint on profit growth.
Assessments point to continued weakness in the automotive-electronics segment tied to the automotive industry cycle. Demand for related products such as automotive motors is linked to finished-vehicle production plans, making it hard to pin down a near-term recovery timeline.
The company posted an owners' net loss of KRW 24.0 billion in 2025 and another loss of KRW 32.5 billion in Q1 2026. Trailing four-quarter owners' net income also remains negative at KRW -56.3 billion, indicating substantial earnings volatility including non-operating factors.
If demand weakness in the paper and automotive end markets persists for an extended period, recovery in the related business units could be delayed. The semiconductor-components segment also depends on the durability of AI and server demand, so a cycle reversal could again amplify earnings volatility.
The large net losses in 2025 and Q1 2026 appear to partly reflect non-operating factors, and further asset revaluations or impairment recognition could again widen net-income volatility.
Haesung Industrial has entered into exchangeable-bond issuance agreements with brokers including Shinhan Investment, and future exercises of related conversion rights could affect the shareholding structure.
The holding-company structure, in which subsidiary performance directly affects consolidated earnings, is also a governance-related consideration.
The statutory deadline for the Q3 report, when consolidated Q3 results and segment-level trends in semiconductor components, automotive electronics, and paper—along with whether the Q2 2026 return to profit continued—can be checked.
Preliminary earnings disclosures from separately listed Haesung DS can confirm whether demand for AI/server DDR5 substrates and automotive lead frames remains durable.
The FY2026 year-end dividend announcement will show whether cash dividends and capital-reserve reduction dividends continue in tandem, and at what scale, allowing an assessment of the continuity of shareholder-return policy.
Tracking pulp raw-material costs and printing-paper selling prices, along with Keyang Electric Machinery's automotive-electronics order intake, can help assess whether the lagging segments are recovering.
Haesung Industrial is a holding company built on real-estate leasing that spans paper, industrial goods, automotive electronics, and semiconductor components; it swung to an owners' net loss of KRW 24.0 billion in 2025 but returned to profit in Q2 2026 with net income of KRW 7.4 billion and operating profit of KRW 27.3 billion, the best quarterly result in five quarters.
At the center of this improvement is the recovery at semiconductor-components subsidiary Haesung DS, driven by rebounding AI and server demand and the end of automotive-semiconductor inventory adjustments.
In contrast, the paper segment still faces weakening domestic printing-paper demand and oversupply, while the automotive-electronics segment continues to grapple with soft auto-industry conditions—two offsetting risks that remain in place.
Trailing four-quarter owners' net income still stands at a loss of KRW 56.3 billion, so whether the quarterly recovery translates into a full-year return to profit requires further confirmation.
The company has a history of combining common-share cash dividends with capital-reserve reduction dividends, a shareholder-return feature also worth noting.
Going forward, monitoring the Q3 report, preliminary results from Haesung DS, and year-end dividend disclosures will be important for tracking the durability of the segment-level recovery.
Report written 2026-09-05 · Data as of 2026-09-04
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