[Photo: Emart]
Emart is moving forward with a capital increase of 500 billion won for its subsidiary, Shinsegae Construction.
According to a filing with the Financial Supervisory Service on May 14, Emart will participate in the capital increase through cash and asset contributions.
The cash contribution will amount to 240 billion won (48%), while the asset contribution will be 260 billion won (52%).
The assets being contributed include land and buildings owned by Emart at the Myungil branch. Emart will provide these assets in exchange for newly issued shares from Shinsegae Construction.
Shinsegae Construction plans to issue 10 million common shares at a price of 50,000 won per share. Emart, as the major shareholder, will fully subscribe to the new shares. The payment deadline for the new shares is set for June 25.
An Emart representative stated, "This decision aims to enhance financial structure and secure management stability through increased construction capital, thereby boosting market confidence and enabling stable business operations in the future."
In related news, Emart reported a consolidated operating profit of 178.3 billion won for the first quarter, an 11.9% increase compared to the same period last year. Although net sales decreased by 1.3% to 7.1234 trillion won, profitability showed significant improvement. This marks the highest first-quarter operating profit since 2012.
On a standalone basis, operating profit also rose by 9.7% to 146.3 billion won, achieving the highest first-quarter figure in eight years since 2018. Standalone total sales increased by 1.9% to 4.7152 trillion won.
* This article has been translated by AI.
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