Golf Course ERP Leader 'GreenIT' Turns to Profit for the First Time Since Endemic... Cost Reductions and 'Operating Leverage' Pay Off

GreenIT, the company with the No. 1 market share in the domestic golf course ERP (Enterprise Resource Planning) solution market, has succeeded in turning an annual profit for the first time since the endemic. This performance is receiving positive evaluations as it was achieved not simply through favorable market conditions, but through bone-crushing, high-intensity restructuring of its cost structure. However, goodwill and accumulated deficits built up from large-scale mergers and acquisitions (M&A) in the past are pointed out as challenges that must be managed in the long term.

'GreenIT', Born Through the Integration of ItsOne and Munos... Surpasses 9.4 Billion Won in Revenue and Achieves 700 Million Won 'Profit'

GreenIT is an integrated corporation created in 2022 when Yanolja and venture capital (VC) firm Murex Partners led the acquisition and merger of industry-leading companies ItsOne Co., Ltd. (founded in 2005) and Munos Co., Ltd. (founded in 2001). As two companies with nearly 20 years of business experience merged, it instantly leaped to the top spot in the industry.

Since the integration, GreenIT's revenue has recorded approximately 7.36 billion won in 2023, 8.33 billion won in 2024, and 9.45 billion won in 2025, showing a clear upward growth trend every year. The most noticeable change is the dramatic turnaround in profitability. Up until 2023, it recorded a massive operating loss amounting to 7.12 billion won, but it reduced the deficit to 2.15 billion won in 2024, and in 2025, it finally recorded an operating profit of approximately 700 million won, turning a profit. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which gauges a company's actual cash-generating ability, also recorded 1.43 billion won in 2025, proving the effectiveness of its business model.

Breaking Away from a Top-Heavy Cost Structure... 'A Victory in SG&A Efficiency'

The core driver of this turnaround to profit is the efficiency of the cost structure. It is interpreted that the company has entered a full-fledged 'Operating Leverage' phase, enjoying effects that exceed its revenue increase.

In 2023, the ratio of GreenIT's selling, general and administrative (SG&A) expenses to revenue showed an abnormal imbalance at approximately 183% (revenue of 7.36 billion won, SG&A of 13.54 billion won). However, in 2025, this ratio plummeted to about 81.7%. This is the result of drastically eliminating lax operational elements while revenue increased. Commission expenses, which amounted to roughly 1.93 billion won in 2023, were reduced to the 1.63 billion won range in 2025, and above all, labor costs that neared 9.16 billion won were cut by nearly half to the 4.95 billion won level. This strongly suggests that the profit structure has entered a period of structural stability as the automation of the business model settles in.

'Goodwill' Accounts for 62% of Total Assets... Three Major Risks to Address

Although financial soundness is noticeably improving, three core risks remain areas that must be carefully monitored.

The first risk is the qualitative issue of assets, namely the 'excessive proportion of goodwill'. As of 2025, out of approximately 16.22 billion won in total assets, goodwill accounts for a staggering 10.12 billion won, representing about 62% of total assets. This goodwill is an asset in the nature of a 'premium' paid during the process of acquiring ItsOne, Munos, and others in the past to establish the integrated corporation. If the performance of the related business divisions deteriorates, a large-scale impairment loss must be recognized, which could turn the barely achieved net profit into a massive deficit in an instant.

The second is the issue of 'accumulated deficits and dividend restrictions'. Although it generated a net profit of 700 million won in 2025, its unappropriated retained earnings remain at a negative 10.42 billion won (deficit) due to massive deficits accumulated in the past. With the current annual net profit level of 700 million won, it would take mathematically about 14 to 15 years just to wipe out this deficit. For the time being, shareholder dividends are practically impossible, and it is difficult to expect short-term improvement in the financial structure without additional external capital expansion.

The last is 'accounts receivable management and bad debt risk'. Strict management of accounts receivable, which have increased in step with external growth, is required. Following the establishment of an allowance for doubtful accounts of 280 million won starting in 2024, an allowance of 180 million won has also been recognized in 2025. Currently, the ratio of the allowance for doubtful accounts to accounts receivable (approximately 1.19 billion won) is relatively high at about 15%. This means the company has already recognized and prepared for the possibility that some clients may not pay their dues on time, so meticulous monitoring of the soundness of future debt collection appears to be essential.