[Exclusive] KONEX-Listed E&H Enters Rehabilitation Process

The Seoul Rehabilitation Court decided on the 9th to commence rehabilitation proceedings for E&H Co., Ltd., a KONEX-listed company specializing in filter materials. Although it once enjoyed growth from the "COVID-19 boom," it was unable to withstand a sharp decline in sales and four consecutive years of operating losses, ultimately entering the rehabilitation process.

Withdrawal of Listing and Poor Performance... A Steep Downhill Path

E&H is a materials specialist that has primarily produced HEPA filters and melt-blown (MB) filters, which are essential raw materials for masks. During the COVID-19 pandemic in 2020, it drew market attention by recording 44.8 billion won in sales and 19.3 billion won in operating profit. Based on this, the company selected iM Securities as its underwriter and filed for a preliminary review for a KOSDAQ listing (IPO) in 2021, but it voluntarily withdrew four months later, putting the brakes on its path to going public.

Following this, its performance deteriorated sharply. After turning to a deficit in 2021 with 19.4 billion won in sales and 1.4 billion won in operating losses, it failed to escape the swamp of deficits in 2022 (-5.6 billion won) and 2023 (-2.4 billion won). Last year, in 2024, sales plummeted to 9.4 billion won, breaking below the 10 billion won mark, and it recorded an operating loss of 3.1 billion won, continuing its deficit for the fourth consecutive year.

Workforce Reduction Amid Management Difficulties... Submission of Rehabilitation Plan is Key

The worsening management situation led to workforce restructuring. The number of employees, which reached 47 as of January 2023, has decreased to 26 as of November 2025 due to deepening financial difficulties. E&H attempted business diversification, such as entering the 2 trillion won natural ventilation market, but this was interpreted as insufficient to overcome its funding shortage.

With the commencement of the rehabilitation process, E&H must prepare an intensive management normalization plan centered around a receiver. The court plans to review the feasibility of the rehabilitation plan to be submitted this coming April and decide whether to approve it.