1. What Happened? Dongkuk Steel Mill’s H1 2025 Performance

Dongkuk Steel Mill reported sales of KRW 893.6 billion, operating profit of KRW 29.9 billion, and net profit of KRW 9.1 billion in the first half of 2025. While sales increased by 5% year-on-year, operating profit and net profit declined by 42.4% and 60.6%, respectively.

2. Why These Results? Understanding the Profitability Decline

This decline in profitability is attributed to several factors, including a slowdown in the steel industry, fluctuating raw material prices, and weak demand from downstream industries. Increasing debt-to-equity ratio and rising debt levels also contributed to the decline.

3. What’s Next? Outlook for Dongkuk Steel Mill

Dongkuk Steel Mill aims to secure growth momentum through its GFRP business and enhance corporate value through strengthened ESG management. However, short-term profitability concerns and financial burdens remain key challenges. The future trajectory hinges on the successful establishment of the GFRP business, recovery of the steel market, effective financial management, and tangible ESG performance.

4. What Should Investors Do? Investment Strategies

  • Short-term investors should be cautious of the current decline in profitability and financial pressures.
  • Long-term investors should focus on the growth potential of the new GFRP business and the company’s ESG initiatives. Careful monitoring of earnings trends, GFRP performance, and macroeconomic conditions is crucial.