Chosun Welding Pohang

Chosun Welding was founded in 1949 and became an independent affiliate of CS Holdings following the 2010 holding company restructuring.

The parent produces covered arc welding electrodes and solid wire for CO2 arc welding, while its subsidiary Chosun Welding Onsan mass-produces flux-cored wire, submerged arc welding materials, and MIG/TIG wire.

The company operates overseas production and sales bases through its Vietnam unit, Chosun Vina, and its Japan subsidiary, Chosun Welding Japan, giving it channels to serve international customers.

Welding materials are used across joining processes in shipbuilding, construction, machinery, chemical plants, and even nuclear power plant construction, with the company having historically supplied materials for Korean nuclear plant projects.

A 2016 industry trade press report estimated Chosun Welding's share of the domestic covered-electrode market at over 70%, an old estimate but indicative of the company's long-standing niche dominance.

That said, competitive pressure persists from emerging-market producers, particularly China, competing on price in lower-tier product segments. Kiswel is cited as a key domestic competitor in the welding materials market.

Demand for the products tends to track steel material consumption—particularly order and construction volumes in heavy industries such as shipbuilding and construction—rather than react to consumer-style economic cycles.

Consolidated revenue peaked at KRW 66.98 billion in 2022 and KRW 66.61 billion in 2023, then fell sharply to KRW 50.91 billion in 2024 before recovering modestly to KRW 51.76 billion in 2025.

The operating margin improved from 14.1% in 2022 to 15.9% in 2023 and 17.1% in 2024 despite the revenue decline, before easing back to 15.0% in 2025.

Net profit attributable to owners rose from KRW 10.52 billion in 2022 to KRW 13.01 billion in 2023 and further to KRW 16.28 billion in 2024, before dropping sharply to KRW 9.38 billion in 2025.

Notably, in both 2024 and 2025 net profit exceeded operating profit (KRW 8.68 billion and KRW 7.79 billion, respectively), indicating that non-operating items had a meaningful impact on results.

On a quarterly basis, Q2 2025 posted an operating profit of KRW 2.31 billion yet a net loss attributable to owners of KRW 0.14 billion, highlighting pronounced non-operating volatility.

In contrast, Q3 2025 (net profit KRW 3.31 billion), Q4 2025 (KRW 3.46 billion), and Q1 2026 (KRW 3.94 billion) all saw net profit run well above operating profit.

Q2 2026 delivered revenue of KRW 16.45 billion and operating profit of KRW 3.96 billion, both the highest across the trailing five quarters, marking a notable improvement in core profitability, while net profit came in at KRW 2.85 billion.

Over the trailing four quarters (Q3 2025 to Q2 2026), combined revenue reached KRW 54.24 billion, operating profit KRW 9.35 billion, and net profit attributable to owners KRW 13.55 billion, while operating cash flow remained solid relative to revenue across each of the past four fiscal years.

Korea's shipbuilding industry, the primary downstream market for Chosun Welding, entered a clear upcycle in 2026.

Korea's Big 3 shipbuilders (HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries) posted combined Q2 2026 operating profit of KRW 2.706 trillion on combined revenue of KRW 17.601 trillion, driven by the recognition of high-priced vessel orders and productivity gains.

As of end-June, order backlogs stood at USD 76.125 billion for HD Korea Shipbuilding & Offshore Engineering, USD 35.5 billion for Samsung Heavy Industries, and USD 33.7 billion for Hanwha Ocean, with major shipbuilders having met or exceeded most of their annual order targets.

Industry sources attribute continued orders for high-value-added, eco-friendly vessel types such as LNG carriers to aging fleet replacement demand and stricter IMO environmental regulations.

However, on the ground, shipyards face cost pressures from rising subcontractor labor costs tied to skilled-worker shortages, growing outsourced volumes, and material price variables including steel plate, which also affect the broader cost environment for shipbuilding equipment suppliers including welding materials.

Welding materials makers like Chosun Welding sit in a dual position—direct beneficiaries of expanding shipbuilding volumes while also exposed to steel raw material price swings.

As the Korea-U.S. shipbuilding cooperation project MASGA moves into its implementation phase, discussions around Korean shipbuilders' expansion into the U.S. market are gaining momentum, raising the possibility of expanded business opportunities across the domestic shipbuilding equipment supply chain over the medium to long term.

Chosun Welding does not publicly disclose specific numerical guidance, so its outlook must be gauged through downstream shipbuilding industry trends and the company's recent quarterly earnings trajectory.

With Korea's Big 3 shipbuilders targeting record annual revenue above KRW 60 trillion and operating profit above KRW 10 trillion, the demand environment for downstream equipment suppliers may remain favorable.

Securities analysts have flagged data center engines, floating data centers (FDC), and naval vessels as the shipbuilding industry's next growth drivers, with some suggesting that as this diversification advances, the demand base across the entire shipbuilding equipment supply chain could broaden.

On the company's own results, Q2 2026 operating profit reaching its highest level in five quarters is a confirmed signal of improving profitability.

That said, as seen in the 2024-2025 results, high volatility in non-operating income makes it difficult to project future quarterly net profit trends, and this warrants further confirmation through upcoming quarterly disclosures.

Given that steel plate and other raw material prices, along with labor and subcontracting cost burdens, have been flagged as cost variables across the shipbuilding industry, similar pressures on Chosun Welding's own cost structure should be monitored as well.