[At the Crossroads] Newintec ② Despite Cost Ratio Exceeding 100% and Losses, Owner Family Company Continues to Receive Preferential Deals

Annual 5 Billion Won in Business Funneled to Owner Family Company
Owner’s Family Company Profits While Newintec Remains in Deficit

Jang Ki-soo, CEO of Newintec.

Newintec, a KOSDAQ-listed company that has reported losses for five consecutive years and has repeatedly asked shareholders for financial support, has continued to channel business to an owner family company. Notably, there have been instances where Newintec posted losses while the owner family company reported profits, raising concerns over potential controversy.

According to the Financial Supervisory Service's electronic disclosure system on April 27, Newintec disclosed that it purchased 4.5 billion won worth of products from NCMF last year. NCMF is a corporation that manufactures AC capacitors and deposition films on an OEM basis. It supplies products to both Newintec and Newintec's Chinese subsidiary.

NCMF is a family company of Jang Gisoo, CEO and largest shareholder of Newintec. As of the end of last year, CEO Jang holds a 58.4% stake; Okeanos, CEO Jang's private company, owns 40%; and CEO Jang’s mother and wife each own 0.8%.

For several years, Newintec has continued to funnel business to NCMF, the owner’s family company. From 2022 to 2024, Newintec purchased between 5 billion and 5.2 billion won worth of products from NCMF each year. The vast majority of NCMF’s sales come from Newintec.

Despite this practice of channeling business to the owner’s company, Newintec has continued to post net losses for five consecutive years. Last year, Newintec recorded a standalone net loss of 12.7 billion won. Losses amounted to 12.9 billion won in 2023 and 6.6 billion won in 2024. The current accumulated deficit stands at 41.6 billion won.

As accumulated losses have depleted its cash reserves, Newintec has been relying on shareholders for survival. In 2023, the company raised 26.1 billion won through a rights offering, and it is currently conducting another rights offering to raise 12.8 billion won.

The primary reason behind Newintec’s losses is its high cost ratio. The company’s cost of goods sold ratio was 104.5% in 2023, 98.1% in 2024, and 99.6% in 2025, nearly reaching 100% each year. This structure makes it virtually impossible to generate profit, even with increased sales.

Despite such a high cost ratio, Newintec did not reduce its purchase volume from NCMF. Furthermore, there have been occasions where NCMF recorded profits while Newintec remained in the red. In 2022 and 2023, NCMF posted operating profits ranging from 100 million to 200 million won. All of NCMF’s profits are distributed to CEO Jang’s family, not Newintec shareholders.

In its securities report, Newintec stated, "Due to our relationship with global automakers (such as Hyundai Mobis), Newintec has weak bargaining power over pricing,” adding, “After signing the supply contract in 2022, raw material prices rose, but the final sales price was kept unchanged, resulting in continued deterioration of profitability.”

Meanwhile, Newintec had previously faced legal investigation and received a suspension of indictment for lending several billion won to NCMF. Between 2021 and 2022, Newintec lent a total of 3.4 billion won to NCMF. Under the Commercial Act, a listed company is prohibited from providing credit to major shareholders and related parties. Accordingly, the prosecution determined that the allegations against Newintec were substantiated.

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