1. What’s Happening with Opticore?

Opticore announced weak earnings in the first half of 2025, with consolidated revenue of KRW 5.2 billion and an operating loss of KRW 3.7 billion. Its core business, optical communication solutions, suffered a significant blow due to decreased 5G investment, and the automation business also failed to deliver tangible results.

2. Why the Decline in Performance?

Following 5G investments, decreased new facility investments in downstream industries led to a sharp drop in demand for optical communication components. The dismal operating rate of optical multiplexers at 1.67% highlights the structural difficulties of the business. The automation business also couldn’t escape the impact of the economic downturn.

3. What’s Opticore’s Future?

Opticore is focusing on securing future growth engines such as developing high-speed optical transceivers for data centers and expanding into overseas markets. However, considering the current financial status and market environment, short-term performance improvement is expected to be challenging. The growth of the AI market and subsequent increase in data center traffic could be a long-term opportunity, but successful technology development and market entry are crucial.

4. What Should Investors Do?

Investing in Opticore requires extreme caution. While negative factors are dominant in the short term, long-term growth potential exists. Investors should carefully monitor quarterly earnings announcements, new business development progress, and financial restructuring efforts before making investment decisions. Pay close attention to the development of high-speed optical transceivers for data centers and the success of overseas market entry.