[Edaily Reporter Kwon Oh Seok ] KOSDAQ-listed company Hyulim Networks(192410)has improved its financial structure by resolving a tax risk in the 80 billion won range, which had been its biggest source of uncertainty. Reflecting the reversal of provisions resulting from the large-scale tax write-off, the company’s financial fundamentals have strengthened, with its debt-to-equity ratio falling to the 40% range.

According to industry sources on the 13th, ONEUL E&M recently announced in a regulatory filing that, following the cancellation of the first assessment (approximately 29.6 billion won) by the Seoul Regional Tax Office, it has also received final confirmation of the cancellation of the third assessment (approximately 50.7 billion won) by the Yeongdeungpo Tax Office. As a result, 72.7% of the total tax dispute amounting to 110.4 billion won has been resolved.
This victory in the tax litigation immediately translated into strong financial performance. As the reversal of provisions related to the cancellation of the first and third tax assessments was recognized as other income, the company achieved a consolidated net income of approximately 32.89 billion won in the third quarter of this year, marking a major turnaround to profitability.
Financial soundness indicators also improved. Total equity, which stood at 9.31 billion won at the end of last year, surged 4.6-fold to approximately 43.25 billion won at the end of the third quarter of this year. Conversely, total liabilities were significantly reduced from approximately 71.51 billion won to 18.68 billion won, and the debt-to-equity ratio—which stood at 767.3% at the end of last year—fell by 724.1 percentage points to 43.2% at the end of the third quarter. The current ratio, which indicates the company’s ability to repay short-term debt, also more than doubled, rising from 89.5% to 189.7%.
Having thus eliminated financial uncertainty, ONEUL E&M plans to focus its efforts on expanding its core telecommunications infrastructure business. ONEUL E&M is establishing a foothold in the North American market. The company has secured a major reference project by building telecommunications infrastructure at the “LA Memorial Coliseum,” the main venue for the U.S. Olympic Games, and has proven its small-cell antenna technology as an official supplier to AT&T, the largest telecommunications carrier in the U.S.
A company official emphasized, “Resolving these first and third-round tax risks marks a decisive turning point in breaking free from the long-standing shackles surrounding the company and securing financial soundness.” The official added, “Based on our strengthened liquidity and proven foothold in the U.S. market, we will accelerate growth in our core business and actively pursue the ongoing lawsuit to overturn the second-round tax assessment to ensure our corporate value is fully reevaluated.”