Onul ENM Fully Removed from Investment Caution List... Achieves KRW 2.9 Billion Profit in 5G Telecommunications Business

On March 19, KOSDAQ-listed Onul ENM received an "unqualified" opinion in its external audit and was completely removed from the Investment Caution List. The company was assessed to have resolved its financial risks in a short period, thanks to large-scale capital expansion and improved performance in its 5G telecommunications business.

The Korea Exchange lifted the Investment Caution designation for Onul ENM on March 19. The reasons for the removal were the resolution of the semi-annual capital impairment ratio exceeding 50% and the resolution of the requirement of less than KRW 1 billion in semi-annual equity capital.

With this removal, the company has restored its external credibility and established a foundation to actively respond to expanding global investments in 5G infrastructure and the competition in 6G technologies.

The significance of this achievement is further highlighted by the fact that it was accomplished through internal financial improvements and capital expansion, even as the company faced additional tax assessments by the tax authorities.

Over the past six months, Onul ENM has focused on improving its financial structure. Of the KRW 40 billion in its fifth convertible bond (CB) issue, KRW 30.1 billion was converted into equity, reinforcing its capital base. This allowed the company to escape a state of complete capital impairment, which had reached as high as 1,553.6%, and to secure financial stability.

Based on this audit report, the company plans to make 2026 the first year of a new leap forward. In 2025, consolidated sales reached approximately KRW 16.7 billion, an increase of 28.2% compared to the previous year. During the same period, operating losses decreased by about KRW 1.85 billion, down approximately 71.5% from the previous year, resulting in significant improvement in profitability.

The core driver of this performance improvement was the expansion of exports. The proportion of overseas sales rose from 33.6% in 2024 to 66% in 2025, shifting to an export-oriented structure. In particular, sales in North America increased by more than 190%, from approximately KRW 3.3 billion to KRW 9.6 billion, driving overall growth.

Among the business segments, next-generation telecommunications, including 5G, led the way in performance improvement. This segment recorded operating profit of approximately KRW 2.9 billion on a standalone basis, turning a profit and playing a pivotal role in the company’s overall turnaround.

A company representative stated, "Due to tax issues and capital impairment, our corporate value has not been fully recognized in line with our actual growth potential. Now that concerns in the market have been alleviated with the removal from the Investment Caution List, we will focus on enhancing shareholder value through transparent and responsible management and proactive business expansion."

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