| Operating segments |
6. Operating segments
The Company’s operating segments have been identified to be each business unit, by which the Company provides different services and merchandise.
The Company assesses the performance of each operating segment based on operating profit, and there is no difference with the amounts reported on the consolidated statement of profit or loss, except for intergroup transactions.
The following summary describes the operations of each reportable segment.
| Schedule of segment operations |
|
|
| Operating segments |
|
Operations |
| Content Merchandising |
|
Sale and distribution of content consumer products and providing production services |
| Food and beverages |
|
Sale of food and beverages products and licensing of the intellectual property |
| Content production |
|
Planning, producing, and selling the media content such as theatrical films and television programs |
| Content investment |
|
Providing investment management services to investment funds |
| B. | Information about reportable segments |
Information related to each reportable segment is set out below. Segment operating profit is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries.
The segment information for the years ended December 31, 2025, 2024 and 2023 is as follows:
| Schedule of segment results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Year ended December 31, 2025 |
|
| |
|
|
|
Content merchandising |
|
|
F&B |
|
|
Content production |
|
|
Content
investment |
|
|
Total |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Segment revenue |
|
₩ |
|
|
44,415,967 |
|
|
|
12,323,986 |
|
|
|
20,690,997 |
|
|
|
745,138 |
|
|
|
78,176,088 |
|
| Elimination of intersegment revenue |
|
|
|
|
- |
|
|
|
(95,168 |
) |
|
|
- |
|
|
|
- |
|
|
|
(95,168 |
) |
| Consolidated net revenue |
|
|
|
|
44,415,967 |
|
|
|
12,228,818 |
|
|
|
20,690,997 |
|
|
|
745,138 |
|
|
|
78,080,920 |
|
| Depreciation |
|
|
|
|
467,669 |
|
|
|
1,638,642 |
|
|
|
417,102 |
|
|
|
126,524 |
|
|
|
2,649,937 |
|
| Amortization |
|
|
|
|
52,104 |
|
|
|
269,400 |
|
|
|
278,570 |
|
|
|
- |
|
|
|
600,074 |
|
| Employee benefit expenses |
|
|
|
|
4,220,468 |
|
|
|
4,915,334 |
|
|
|
4,370,899 |
|
|
|
923,271 |
|
|
|
14,429,972 |
|
| Segment operating profit(loss) (*) |
|
|
|
|
3,996,955 |
|
|
|
(1,964,917 |
) |
|
|
(143,774,320 |
) |
|
|
(856,648 |
) |
|
|
(142,598,930 |
) |
| Other adjustment (**) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(52,128,930 |
) |
| Company operating profit |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(194,727,860 |
) |
| (*) | During the year ended December 31, 2025, segment operating
loss of Korean Won 143,774,320 was incurred mainly due to the impairment loss on goodwill allocated to Content production CGUs(Note 21). |
| (**) | The adjustment relates to the listing expenses accounted in
accordance to IFRS 2 due to the merger between K Enter Holdings Inc. and K Wave Media Ltd., and measurement of liabilities related to
shareholders’ agreement. |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Year ended
December 31, 2024 |
|
| |
|
|
|
Content merchandising |
|
|
F&B |
|
|
Total |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Segment revenue |
|
₩ |
|
|
28,379,904 |
|
|
|
14,630,426 |
|
|
|
43,010,330 |
|
| Elimination of intersegment revenue |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Consolidated net revenue |
|
|
|
|
28,379,904 |
|
|
|
14,630,426 |
|
|
|
43,010,330 |
|
| Depreciation/Amortization |
|
|
|
|
501,513 |
|
|
|
2,672,170 |
|
|
|
3,173,683 |
|
| Segment operating profit |
|
|
|
|
(969,001 |
) |
|
|
(2,537,890 |
) |
|
|
(3,506,891 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Year ended
December 31, 2023 |
|
| |
|
|
|
Content merchandising |
|
|
F&B |
|
|
Total |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Segment revenue |
|
₩ |
|
|
49,771,824 |
|
|
|
17,709,332 |
|
|
|
67,481,156 |
|
| Elimination of intersegment revenue |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Consolidated net revenue |
|
|
|
|
49,771,824 |
|
|
|
17,709,332 |
|
|
|
67,481,156 |
|
| Depreciation/Amortization |
|
|
|
|
750,031 |
|
|
|
2,534,001 |
|
|
|
3,284,032 |
|
| Segment operating profit(loss) |
|
|
|
|
3,802,307 |
|
|
|
(304,909 |
) |
|
|
3,497,398 |
|
Content merchandising segment, Food and beverages segment, Content production segment, Content Investment segment are managed on a worldwide basis, but operate manufacturing facilities and sales offices primarily in Seoul, South Korea. The geographic information analyses the Company’s revenue by the customer’s country of domicile. In presenting the geographic information, segment revenue and non-current assets have been based on the geographic location of customers.
Summary of the Company’s operation by region based on the location of customers for the years ended December 31, 2025, 2024 and 2023 is as follows:
| Schedule of geographic
information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Year ended
December 31,
2025 |
|
|
Year ended
December 31,
2024 |
|
|
Year ended
December 31,
2023 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Korea |
|
₩ |
|
|
53,639,087 |
|
|
|
39,343,631 |
|
|
|
54,892,741 |
|
| USA |
|
|
|
|
13,777,853 |
|
|
|
13 |
|
|
|
335,239 |
|
| Germany |
|
|
|
|
2,480,957 |
|
|
|
- |
|
|
|
- |
|
| UK |
|
|
|
|
2,162,847 |
|
|
|
- |
|
|
|
- |
|
| France |
|
|
|
|
1,613,298 |
|
|
|
- |
|
|
|
- |
|
| Japan |
|
|
|
|
957,327 |
|
|
|
3,516,708 |
|
|
|
11,948,054 |
|
| Other |
|
|
|
|
3,449,551 |
|
|
|
149,978 |
|
|
|
305,122 |
|
| Total |
|
₩ |
|
|
78,080,920 |
|
|
|
|
|
|
|
67,481,156 |
|
Summary of the Company’s non-current assets based on the location as of December 31, 2025 and December 31, 2024 is as follows:
| |
|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Korea |
|
₩ |
|
|
50,095,186 |
|
|
|
23,963,489 |
|
| USA |
|
|
|
|
41,759,247 |
|
|
|
- |
|
Revenues from major customers that amount to 10% or more of the Company’s revenue for the years ended December 31, 2025, 2024 and 2023 are as follows:
| Schedule of revenues from major customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Year ended
December 31,
2025 |
|
|
Year ended
December 31,
2024 |
|
|
Year ended
December 31,
2023 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Customer A (Content merchandising segment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
₩ |
|
|
9,396,922 |
|
|
|
8,785,673 |
|
|
|
11,184,157 |
|
| % |
|
|
|
|
12.04 |
% |
|
|
20.43 |
% |
|
|
16.57 |
% |
| Customer B (Content production segment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
|
|
13,774,629 |
|
|
|
- |
|
|
|
- |
|
| % |
|
|
|
|
17.64 |
% |
|
|
- |
|
|
|
- |
|
| Customer C (Content merchandising segment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
|
|
- |
|
|
|
- |
|
|
|
11,463,821 |
|
| % |
|
|
|
|
- |
|
|
|
- |
|
|
|
16.99 |
% |
| Customer D (Content merchandising segment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
|
|
- |
|
|
|
- |
|
|
|
17,859,876 |
|
| % |
|
|
|
|
- |
|
|
|
- |
|
|
|
26.47 |
% |
|