[2026 Parliamentary Audit] Yoon Junbyeong: "Suhyup Distribution's Capital Impairment Ratio at 95%; Management Must Be Held Clearly Accountable"

Comprehensive audit by the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee on the 23rd
Suhyup Distribution's net loss through August this year reached KRW 3.447 billion
Surpassing its full-year net loss for last year

Suhyup Distribution's net loss for January through August this year exceeded its full-year net loss for last year. Its capital impairment ratio also reached 94.9%, bringing it close to full capital impairment. Last year, the National Federation of Fisheries Cooperatives pledged to improve management after being criticized during the parliamentary audit for Suhyup Distribution's chronic losses and Badamart's financial difficulties, but the pledge has not been properly fulfilled.

According to documents on follow-up measures for Suhyup Distribution's management-improvement plan, submitted by the National Federation of Fisheries Cooperatives to Yoon Junbyeong, a Democratic Party of Korea lawmaker on the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee, the company's net loss through August this year was KRW 3.447 billion. This was 24.0% (KRW 667 million) higher than its full-year net loss of KRW 2.78 billion last year.

Yoon Junbyung, a lawmaker of the Democratic Party of Korea.

Suhyup Distribution's annual net losses have grown sharply in recent years, totaling KRW 499 million in 2021, KRW 464 million in 2022, KRW 663 million in 2023, KRW 1.182 billion in 2024 and KRW 2.78 billion in 2025. The Badamart division also swung from a profit of KRW 1.028 billion in 2024 to a loss of KRW 342 million in 2025, and recorded a loss of KRW 1.551 billion through August this year.

Assemblyman Yoon pointed out that the company's financial position has worsened despite repeated capital contributions from the National Federation of Fisheries Cooperatives. The federation contributed KRW 5 billion in 2020 and KRW 6.4 billion in 2024, for a total of KRW 11.4 billion, to improve financial soundness and expand seafood sales channels. However, total equity, which stood at KRW 4.591 billion at the end of last year, plunged 75.1% to KRW 1.144 billion at the end of August this year. Against paid-in capital of KRW 22.274 billion, the capital impairment ratio was 94.9%, while the debt-to-equity ratio reached 1,375.7%. According to Assemblyman Yoon, Suhyup Distribution also said in the documents it submitted that it was "close to full capital impairment" and that an external assessment of the company's viability was needed.

In October last year, Assemblyman Yoon criticized Suhyup Distribution's chronic losses and deteriorating finances during the parliamentary audit, calling for a management shake-up and structural reform. In response, Suhyup submitted a management-improvement plan on November 14 last year that included restructuring stores, downsizing the head office and expanding seafood sales channels, and pledged to swiftly reorganize its business structure.

However, the planned store restructuring, a key part of the improvement plan, did not proceed as scheduled. The Dongdaemun store, which was supposed to close last year, did not shut its doors until April this year, while the closure of the Wonhyo store was postponed to February next year. The plan for the Singyoha direct-sales store, which had been due to close this year, was instead changed to strengthen its operations. As a result, as of September this year, the Dongdaemun store was the only location to have closed.

New initiatives to expand seafood sales channels have also stalled. Assemblyman Yoon confirmed that Suhyup Distribution is asking the Ministry of Oceans and Fisheries to halt a government subsidy program for its seafood specialty store franchise, Eobuseseang, saying it is struggling to raise its required matching contribution of KRW 42.5 million per store. The company's deteriorating finances are thus limiting its ability not only to restructure existing businesses but also to pursue new ones.

Assemblyman Yoon stressed, "At last year's parliamentary audit, I pointed out that Suhyup Distribution's financial difficulties could not be resolved by injecting more capital without improving the management team's expertise and the business structure. Despite its promise to improve management, the company has exceeded last year's full-year loss in just eight months this year, and its capital impairment ratio is nearing 95%. The management team must therefore be held clearly accountable for fulfilling its promises and delivering results."

Assemblyman Yoon added, "For Suhyup Distribution to reclaim its original role of expanding seafood sales channels and increasing fishers' incomes, it needs a personnel shake-up that brings in distribution expertise, as well as bold changes to its business structure. The company should carefully assess the viability and business potential of each store and determine how to reorganize them. It must also set clear deadlines for each task and targets for improving profitability to prevent further losses and worsening capital impairment."

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