[Exclusive] KONEX-Listed Elivision Changes Largest Shareholder... Will It Find a Breakthrough from '5 Consecutive Years of Deficits'?

Secures 26.81% stake through on-exchange purchase... Leaves possibility of exercising management rights open amid sluggish performance

The largest shareholder of Elivision, a KONEX-listed company specializing in digital signage, has changed to Lee Jong-soo, CEO of Green Resource. With 5 consecutive years of operating losses and a downward trend in sales, industry attention is focused on whether the appearance of a listed company's executive will serve as a signal for business normalization.

CEO Lee Jong-soo becomes largest shareholder through on-exchange purchase

Elivision announced on January 8 that its largest shareholder changed from CEO Ahn Deok-geun and one other person to Lee Jong-soo, one other person, and a corporation. This change was made through on-exchange stock purchases, and the acquisition funds were fully financed with own funds.

Following the change, the number of shares owned by CEO Lee Jong-soo and related parties is 3,301,242 shares, with a stake of 26.81%. In detail, CEO Lee Jong-soo holds 18.13%, his spouse Kim Mi-kyung holds 3.81%, and LJ Partners Co., Ltd. holds 4.87%. On the other hand, the stake of the former largest shareholder, CEO Ahn Deok-geun, was maintained at 24.79%, but as CEO Lee's side has secured additional stakes, interest is gathering on the future direction of management control.

Worsening performance trend... A breakthrough is needed

Established in 1995 and entered the KONEX market in 2018, Elivision has grown by supplying digital signage and unmanned kiosks to famous franchises such as Paris Baguette and Ashley. However, its recent financial indicators are at a dangerous level.

Sales, which were 3.5 billion won in 2020, peaked at 4 billion won in 2021 and then halved to 1.9 billion won in 2024. Operating losses have also continued for the fifth year. Since recording -1.4 billion won in 2020, the company has incurred deficits in the hundreds of millions of won every year, showing a worsening financial crisis.

'General investment' purpose, but leaves room for management participation

The new largest shareholder, CEO Lee Jong-soo, leads Green Resource, a total materials solution company listed on the KOSDAQ. According to the disclosure, the purpose of holding was stated as 'general investment,' but room was left for future management participation.

CEO Lee's side stated, "Although there are currently no detailed plans such as the appointment of directors, as the largest shareholder, if major matters arise in relation to the company's business execution, such as the appointment or dismissal of directors and auditors, or changes to the articles of incorporation, we plan to determine related actions to align with our management purpose." This is interpreted as a willingness to actively exercise influence over management rights if necessary, going beyond simple capital gains.

As a listed company CEO with capital mobilization capability takes the position of largest shareholder, expectations are emerging for the improvement of Elivision's financial structure and the creation of business synergies. However, it is pointed out that specific business restructuring and performance recovery must precede to break the chain of continuous deficits.