“As anticipated, 2023 was another challenging year for the industry due to inflation and uncertain macroeconomic conditions”: Songwon releases FY2023 financial results

02 March 2024

Songwon Industrial Group has released its financial results for FY 2023. In Q4 of 2023, Songwon Industrial Group recorded consolidated sales of KRW245,709M with a gross profit margin of 11.6%, representing a -17.4% decline in revenue and a -5.5%-points reduction in the gross profit margin compared to Q4/2022.

The net profit for Q4/2023 stood at KRW2,893M (Q4/2022: KRW8,459M). Songwon ended 2023 with overall consolidated sales totaling KRW1,029,975M, 22.5% lower than the previous year (FY2022: KRW1,329,509M).

As expected, Songwon experienced a slow start to the year amidst the backdrop of the highly volatile global environment. Persisting geopolitical tensions, worsening economic conditions and inflationary pressures continued throughout the year. These factors, coupled with a general decrease in demand due to customers’ inventory reduction efforts, affected the performance of both the Industrial Chemicals and Performance Chemicals divisions in the latter part of 2023.

In the 4th quarter of 2023, Division Industrial Chemicals faced ongoing macroeconomic challenges, including a sluggish recovery in China, geopolitical constraints and a persistent slowdown in demand, exacerbated by aggressive pricing pressures. Furthermore, declining raw material prices disrupted effective pricing mechanisms, while global logistical issues hindered the Division’s performance.


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Polymer Stabilizers saw increased volumes in Q4 2023 compared to the previous year, but revenues declined due to lower pricing. As customers’ safety stocks diminished, the business did observe improved demand later in the quarter, resulting in a relatively positive performance overall in Q4/2023, albeit lower than 1HY/2023. Meanwhile, Fuel and Lubricant Additives saw higher volumes and revenue in Q4/2023 due to increased customer demand, offsetting falling raw material costs. Although Coatings volumes rebounded in October following a weak September, global demand remained subdued throughout Q4/2023.

As anticipated, 2023 was another challenging year for the industry due to inflation and uncertain macroeconomic conditions, which made market development predictions difficult. Despite expectations for demand to rise in the latter half of the year, true industry recovery has not yet materialised. Although Songwon notes slight improvement, it sees overall demand remaining at comparable levels in the coming months and the competitive landscape intense. Additionally, due to recent global events, logistics costs are expected to continue rising.

In the face of ongoing demand volatility, geopolitical uncertainty and logistics hurdles, accurately predicting what the upcoming year will bring is not possible. Hence, Songwon will persist in executing its current strategy and enhancing efficiencies, as well as implementing appropriate measures to navigate the dynamic market conditions effectively. With confidence in its resilient business model, Songwon remains dedicated to fulfilling financial objectives, seizing opportunities and securing long-term sustainable growth.

A more detailed report can be found here.

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