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[Alpha Biz=(Chicago) Reporter Paul Lee] Cosmax lost hundreds of billions of won of the amount it lent to its affiliates and others. Some of the affiliates include a company owned by its owner, Chairman Lee Kyung-soo.
As of March, Cosmax has a debt of 462.2 billion won to related parties. By company, Cosmax West is the largest with $ 243.96 million (about 313.1 billion won), while Cosmax USA is also worth $ 86.57 million (about 111.2423 billion won).
Cosmaxneo was followed by 12.5 billion won, Cosmax (Tailand) Company Limited 295 million baht (about 113.5 billion won), Cosmax Indonesia 3,588,961 dollars (about 4.6 billion won), CMTech 2.9 billion won, Cosmax Village Code 2.2 billion won, MadSquare 1.6 billion won, Cosmax Icure 500 million won and Cosmax Japan 30 million yen (about 271.75 million won).
Cosmax West, which has the largest loan, is an affiliate of which Chairman Lee Kyung-soo holds a 46% stake personally.
It is a special purpose company (SPC) established in 2017 to acquire U.S. cosmetics maker NUWORLD for $ 50 million. $ 15 million of its initial capital was paid by Cosmax and the remaining $ 14 million was personally invested by Cosmax Chairman Lee Kyung-soo.
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Despite its huge investment, Cosmax West is in a state of complete capital erosion. As of March, assets were 195.7 billion won and debts were 588.1 billion won. The capital is minus (-) 392.4 billion won.
Cosmax West's net loss in terms of consolidation is also falling slightly, including 103.7 billion won in 2020, 89.4 billion won in 2021 and 82.7 billion won in 2022, but it has not escaped losses.
Despite such poor performance and the biggest existing debt, Cosmax lent an additional $770,000 (989.45 million won) to Cosmax West in the first quarter of this year.
In addition, Cosmax treated all of Cosmax West's capital of 16.3 billion won as impairment losses.
Cosmax USA, which has the second largest debt, is also underperforming. Cosmax USA recorded a net loss of 51.2 billion won in the first quarter of this year.
In order to recover the performance of its U.S. subsidiary, Cosmax suspended its plant in Ohio at the end of last year and is working to integrate it into Nuworld in New Jersey.
Cosmax also completed integrated work to move its plant-related facilities in Ohio to New Jersey in the first quarter and has now sold 14.9 billion won in tangible assets, including the factory site.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
