Incon Decides to Purchase New Office and R&D Center in Samseong-dong, Gangnam for 41.5 Billion Won... Equivalent to Half of Total Assets

KOSDAQ-listed company Incon is establishing a new headquarters in Gangnam for mid- to long-term business expansion and the construction of an R&D (Research and Development) center.

Incon announced through a public disclosure on the 6th that it has decided to acquire land and buildings located at 113-6 Samseong-dong, Gangnam-gu, Seoul, for 41.5 billion won.

This acquisition amount is a large-scale investment amounting to 50.76% of Incon's total assets of approximately 81.76 billion won as of the end of 2025. The counterparties to the transaction are Hanheung LLC and five others.

Regarding the purpose of this purchase, the company explained, "To build an R&D center and secure a new headquarters," adding, "We expect to secure workspace and improve productivity in line with our mid- to long-term business expansion." Incon, which currently has its headquarters in Dongan-gu, Anyang-si, Gyeonggi-do, is expected to move its base to the Gangnam area in Seoul through this acquisition.

The purchase price will be paid entirely in cash, and Incon plans to raise the funds using its own capital and borrowings from financial institutions. The down payment of 4 billion won will be paid on the 6th, the day of the disclosure, and the intermediate payment of 8 billion won will be made on July 1. The payment of the remaining balance of 29.5 billion won and the registration of the transfer of ownership are scheduled to take place on December 30 of this year. According to the evaluation by an external accounting firm (Sungji), an opinion was received that the acquisition value of this asset is appropriate.

Incon maintained a surplus trend, generating 50.8 billion won in sales and approximately 1.7 billion won in operating profit as of 2025 in its main ICT business. However, as valuation losses on investments in related companies were reflected, it resulted in a net loss of approximately 1.26 billion won, indicating an urgent need for profitability improvement. Previously, in April 2025, the company also carried out a capital reduction without refund, lowering the par value from 500 won to 100 won to make up for accumulated deficits.

In addition, a large-scale borrowing to finance the purchase is inevitable. Even if Incon's cash and cash equivalents (approximately 22.5 billion won) and short-term financial instruments (10 billion won) as of the end of 2025 are combined, it is more than 9 billion won short of the purchase price of 41.5 billion won. However, the company's total liabilities are at around 7.2 billion won, with a debt ratio of only 9.7%, which means it has a sound financial structure that is practically 'debt-free.' Leveraging this, it is observed that the company will be able to pay the remaining balance without difficulty through borrowings from financial institutions.

Meanwhile, Incon is undergoing a stock consolidation (reverse stock split) process, and its stock trading has been suspended from April 14 until the day before the listing date of the new shares. The number of shares owned by the largest shareholder, K-Bio Labs, changed from approximately 26.58 million shares to 5.31 million shares due to the stock consolidation, but its stake remained the same at 34.21%.