Hancom Reports Operating Profit of 27.4 Billion KRW in 2Q... Achieves Highest Quarterly Performance Ever

Operating Profit Up 111% Year-on-Year... Earnings Surprise
Hankom Life Care's Growth in Quarantine Mask Business Plays a Role

[Asia Economy Reporter Jin-gyu Lee] Hancom (Hangul and Computer, hereafter Hancom) achieved an earnings surprise by recording its highest-ever quarterly performance in the second quarter.

Hancom announced on the 13th that its consolidated second-quarter sales increased by 29% year-on-year to 110.6 billion KRW, and operating profit rose 111% from the previous year to 27.4 billion KRW. This marks the highest quarterly performance for the second consecutive quarter following the first quarter. For the first half of the year, sales reached 198.9 billion KRW, and operating profit was 41.8 billion KRW, representing increases of 29% and 121%, respectively, compared to the same period last year.

This strong performance was largely driven by steady growth in the office software (SW) business and the growth of Hancom Life Care, a consolidated subsidiary. Demand for Hancom Office via the cloud service 'Hancom Space' surged due to remote work and online school openings, and the B2B market for Hancom Office also expanded.

Hancom Life Care achieved an operating profit of 16.4 billion KRW in the second quarter alone, showing a remarkable growth rate of 725% compared to the same period last year. Sales also increased by 120% year-on-year to 50.6 billion KRW. Hancom Life Care continued its high growth for consecutive quarters by solidifying its position as the number one player in the personal firefighting safety equipment sector and expanding its new business in the quarantine mask market.

In the second half of the year, as the prolonged COVID-19 pandemic is expected to increase demand for non-face-to-face services, Hancom plans to focus on expanding users of its cloud-based web office while maintaining the growth momentum of Hancom Life Care’s quarantine mask business.

Based on an annual production capacity of 150 million quarantine masks, Hancom Life Care is pursuing exports not only in the domestic market but also overseas. Last month, it secured a reference by supplying quarantine masks to Washington State and Seattle City in the U.S. market without FDA certification. Building on this reference, the company plans to expand overseas market entry for quarantine masks and protective clothing in the second half of the year.

This content was produced with the assistance of AI translation services.