1. Barunson Decides to Sell Real Estate for ₩4.7 Billion

Barunson announced on August 18, 2025, that it would sell land and buildings located in Hannam-dong, Seoul, for ₩4.7 billion. This represents 10.06% of its total assets. The purpose of the sale is to improve its financial structure and secure cash liquidity.

2. Background of the Sale: Urgent Need for Financial Restructuring

Despite the growth of its beauty business, Barunson recorded operating and net losses due to the sluggish film/VFX business and increased financial costs. This asset sale is part of an effort to improve its deteriorating financial condition.

3. Analyzing the Positive and Negative Impacts of the Sale

  • Positive Impacts: Securing short-term liquidity, easing financial burden, enabling focus on core businesses.
  • Negative Impacts: Potential decrease in long-term asset value, additional costs, insufficient resolution of fundamental profitability issues.

4. Investment Strategy: A Cautious Approach is Necessary

In the short term, there is a possibility of a stock price increase due to expectations of financial improvement, but it is necessary to closely monitor the continued growth of the beauty business and whether the film/VFX business can improve profitability. In the medium to long term, it is crucial to make investment decisions by evaluating the use of the proceeds from the asset sale and efforts to strengthen financial soundness. It’s also important to consider the impact of exchange rate and interest rate fluctuations on Barunson’s business.