APR Bets on Dollar Strength...Financial Strategy Pays Off

As the won-dollar exchange rate continues to soar, increasing the burden on the industrial sector, APR is drawing attention by turning this situation into an opportunity to maximize its performance. Not only does the company benefit from the high proportion of K-beauty exports, but it is also actively increasing its foreign currency deposits, regarding exchange rates not as a 'risk' but as a 'profit opportunity' to maximize earnings. By leveraging exchange rate fluctuations as part of its financial strategy, APR differentiates itself from typical export-oriented companies.

According to the Financial Supervisory Service's electronic disclosure system on April 6, APR's foreign currency financial assets have nearly doubled over the past year, rising from approximately 91.3 billion won to around 171.7 billion won. In particular, as of 2025, dollar (USD) assets account for a dominant 74.89%, totaling 128.6 billion won. In effect, the vast majority of the company's foreign currency assets are held in dollars. While this is partly a natural result of expanding global sales, it is also interpreted as a deliberate move to maintain and increase the proportion of dollar assets during asset management.

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What stands out is the gap between foreign currency assets and liabilities. APR's foreign currency liabilities remain at about 2 billion won, making its 'net foreign currency asset' structure clear, with assets far exceeding liabilities. This structure allows the value of held dollars to be reflected as valuation gains when the exchange rate rises, which differs from typical currency risk hedging strategies. In other words, exchange rate increases directly translate into profits rather than costs.

Typically, companies employ currency hedging strategies to match foreign currency assets and liabilities at a certain level to reduce risks from exchange rate fluctuations. However, APR has instead minimized foreign currency liabilities while significantly increasing its dollar assets. This approach is seen as a strategy that utilizes, rather than avoids, exchange rate volatility. It also suggests a certain conviction about the direction of the exchange rate and a willingness to tolerate volatility.

The increase in foreign currency deposits especially supports this strategy. APR's foreign currency deposits more than doubled from 5.04257 billion won in 2024 to 11.48373 billion won last year. Rather than immediately converting the dollars earned overseas into won, the company chooses to hold them, allowing for additional profits in the event of a rising exchange rate. This is interpreted as an effort to maximize the benefits of exchange rate increases by holding even short-term liquidity in dollars.

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An investment banking industry source commented, "For APR, the high proportion of sales to the US naturally leads to a large amount of foreign currency assets." The source added, "However, the fact that foreign currency deposits more than doubled seems to reflect a strategic decision rather than being a simple outcome." The source continued, "It can be interpreted as a fund management strategy designed to capture additional profits during periods of rising exchange rates."

This financial structure is closely linked to APR's business model. As a K-beauty company with a high proportion of direct overseas sales, the company enjoys a steady inflow of dollar-based revenue from the global market. By holding onto these dollars instead of converting them into won, APR is positioned to benefit further during periods of rising exchange rates. The seamless cycle of dollar inflow, retention, and reinvestment is regarded as a sign of high strategic completeness. Some in the market have described the company as one that has "ridden the wave of dollar strength."

In fact, APR's export volume last year totaled 1.2257 trillion won, with overseas sales accounting for 80%. The company's consolidated operating profit more than tripled to 365.5 billion won, while net profit for the period rose 169% from 107.5 billion won to 289.6 billion won. Another investment banking industry source noted, "While most companies match foreign currency assets and liabilities to mitigate exchange rate volatility, this company has instead expanded its dollar assets and exposed itself to exchange rate fluctuations," adding, "This can essentially be seen as taking a position betting on dollar strength."

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