FSN Completes Separation of Global Subsidiaries... "Management Efficiency Improvements to Accelerate Profitability"

KOSDAQ-listed company FSN announced on July 24 that it has completed the separation of its global subsidiaries YDM Thailand (hereafter YDMT) and Clever Group (hereafter Clever Group), successfully finalizing management efficiency improvements in its global operations following similar efforts in Korea. With the global business segment, which has recorded losses for the past three years, now separated, FSN is expected to accelerate its performance improvement.

FSN, through its global business holding company FSN ASIA, has transferred management control of YDMT to the local management team and sold its stake in Clever Group, relinquishing its position as the largest shareholder. In addition, other loss-making overseas subsidiaries have been dealt with through sales or liquidation. As of January 2023, FSN had 27 global affiliates, but this number has now been significantly reduced to just two subsidiaries responsible for overseas communications and accounting. Rather than simply expanding sales through consolidated subsidiaries, FSN has shifted to a model that strengthens practical overseas business collaboration as a major shareholder and partner.

FSN recognized the inefficiencies caused by an excessive number of subsidiaries and overlapping business structures over a long period and has continuously worked to address these issues and improve its organizational structure. Since 2023, the company has embarked on a full-scale restructuring aimed at enhancing profitability and growth, integrating underperforming subsidiaries despite long-term investment, and accelerating the reorganization of its portfolio around core businesses.

The domestic advertising and marketing division has been consolidated into four essential and competitive subsidiaries: Adqua Interactive, Motherbrain, Recobell, and Next Media Group (NMG), significantly strengthening both expertise and profitability. As a result of these efforts, FSN’s advertising agencies, despite the overall downturn in the advertising industry, achieved a surplus in 2024 and are expecting continued performance growth this year.

FSN plans to further reinforce its management system focused on profitability and growth by continuously improving business competitiveness. The company has already transferred its tech subsidiaries to Hyper Corporation and expects the separation of Hyper to be completed smoothly. FSN is rapidly enhancing its business competitiveness by actively introducing AI-based automation and efficiency across its advertising and branding operations. The company is addressing various structural issues that have hindered growth, simplifying its business structure, integrating subsidiaries, and seeking new growth engines. Through these efforts, FSN is preparing for the next stage of its future, moving beyond a simple alliance of advertising agencies.

Co-CEOs Seo Jeonggyo and Park Taesoon of FSN stated, "Most of the factors that led to FSN's undervaluation have now been resolved, and we expect the company's value to be rapidly reassessed as we present a transformed image," adding, "We will continue to do our utmost to become a company that earns even greater trust from the market and our shareholders."

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