Oneul E&M Confirms Cancellation of KRW 80.3 Billion in Tax Assessments... Third-Quarter Financial Indicators Improve Sharply

Oneul E&M, a KOSDAQ-listed company, significantly improved its financial structure in the third quarter after resolving KRW 80.3 billion in tax risks. The reversal of provisions following the cancellation of tax assessments returned net income to positive territory, while total equity increased more than fourfold, improving key financial indicators.

Oneul E&M said it had recently received final confirmation that the cancellation of the third tax assessment, amounting to approximately KRW 50.7 billion and issued by the Yeongdeungpo District Tax Office, followed the cancellation of the first tax assessment of approximately KRW 29.6 billion by the Seoul Regional Tax Office.

As a result, KRW 80.3 billion in tax risks—about 72.7% of the total KRW 110.4 billion tax dispute—has been resolved. The company reversed provisions it had previously set aside following the cancellation of the tax assessments.

The effect of the reversal was reflected in the third-quarter consolidated financial statements. Net income for the quarter came to approximately KRW 32.89 billion, marking a return to profitability. Profitability indicators improved significantly as the reversal of provisions and other items were recognized as other income.

Financial stability also strengthened. Total equity, which stood at KRW 9.31 billion at the end of 2025, rose 4.6-fold to approximately KRW 43.25 billion at the end of the third quarter of 2026. Over the same period, total liabilities fell from approximately KRW 71.51 billion to KRW 18.68 billion.

As a result, the debt-to-equity ratio dropped 724.1 percentage points, from 767.3% at the end of 2025 to 43.2% at the end of the third quarter. The current ratio also rose from 89.5% to 189.7%, improving the company’s ability to meet short-term debt obligations.

The company plans to focus on expanding its telecommunications infrastructure business in Korea and overseas, supported by its stronger financial position. Its capital surplus, accumulated through measures such as past capital reductions and the conversion of convertible bonds (CBs) into shares, stands at KRW 130.31 billion, approximately 25.8 times its KRW 5.04 billion in paid-in capital. The company also said it had secured approximately KRW 23.13 billion in cash and cash equivalents to fund its efforts to win more contracts overseas.

The company has continued to expand into overseas markets by leveraging its accumulated technological expertise. It has established a key reference by building telecommunications infrastructure at the LA Memorial Coliseum, the main stadium for the Olympic Games in Los Angeles. It is also strengthening its position in North America as an official supplier to AT&T, the largest U.S. telecommunications carrier, and the market leader in small-cell antenna share.

However, not all of the tax disputes have been resolved. The company said it intends to actively pursue its ongoing lawsuit seeking the cancellation of the second tax assessment.

A Oneul E&M official said, "The resolution of the tax risks related to the first and third assessments, together with our finalized third-quarter results, marks a decisive turning point in ending long-standing uncertainty and securing financial soundness. With stable liquidity and a foothold in the U.S. market, we will accelerate growth in our core telecommunications business and actively pursue the lawsuit seeking cancellation of the second assessment so that our corporate value can be fully reassessed."

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