(Kolon Industries)
South Korea’s Kolon Group is reportedly reviewing the sale of several units within Kolon Industries Inc., including its semiconductor film business division, in order to secure funding for new growth businesses.
According to industry sources on Thursday, Kolon Industries is discussing the possibility of selling parts of its materials division and other businesses. The materials division is one of the company’s core operations, covering industrial materials and chemical materials businesses.
The industrial materials division recorded sales of 2.3 trillion won ($1.58 billion), while the chemical materials division posted sales of 1.2 trillion won as of the end of last year. However, the semiconductor film business unit currently under review for sale is reportedly relatively small in terms of revenue contribution.
Industry insiders view the restructuring effort as a response to the company’s continued earnings deterioration in recent years.
Kolon Industries’ operating profit for 2025 fell sharply by 31.4 percent on year to 108.8 billion won.
The decline has been attributed to weakened profitability in general-purpose materials caused by the global economic slowdown and aggressive supply expansion from Chinese competitors. The display business, once considered a future growth driver, has also lost momentum.
Kolon Group, in the meantime, noted that no final decisions have yet been made.
“Nothing concrete has been decided so far,” said a company official. “It is also difficult for us to confirm any plans regarding asset sales.”
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