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Performance isn't bad... FnGuide liquidates subsidiary FnDataLab

[비즈한국] It has been confirmed that FnGuide064850 has liquidated its subsidiary, FnDataLab. Although FnGuide was previously led by former CEO Kim Gun-ho, it is currently under the management of Hwacheon Machinery010660. This has led to speculation that Hwacheon Machinery is streamlining subsidiaries as part of its management takeover.

FnGuide was established in 2000 as an in-house venture of the Samsung Group. It was one of the first companies to go public during the launch of the KONEX market in 2013. In December 2020, it transferred its listing to the KOSDAQ market. While it started as a site for comparing fund returns, it handed over its fund return information service to Naver through a partnership with Naver Financial. Instead, FnGuide now focuses on corporate analysis, such as comparing corporate profitability and calculating various figures like PER and PBR.

Former CEO Kim Gun-ho was a researcher at Samsung Securities at the time of the company's founding before moving to become the CEO of FnGuide. However, FnGuide's initial performance was poor, and it is said that the Samsung Group even considered liquidating the company. Consequently, FnGuide received investment from Hwacheon Machinery and began to carve out its own path away from the Samsung Group affiliates.

Hwacheon Machinery originally invested in FnGuide as a financial investor (FI). However, since mid-2023, it has shown interest in the management rights of FnGuide. CEO Kim Gun-ho resigned as CEO of FnGuide in October 2023 and stepped down as an executive director in March 2024. Former CEO Kim currently holds no significant influence over FnGuide.

It is no exaggeration to say that management at FnGuide this year is controlled by the family of Kwon Hyung-woon, CEO of Hwacheon Machinery. Currently, half of the 10 members on the FnGuide board of directors are CEO Kwon and his specially related persons. Since CEO Kwon took control, FnGuide's business performance has not been bad. Revenue increased from 15.7 billion won in the first half of last year to 17.5 billion won in the first half of this year, an 11.50% increase, while operating profit grew from 3.3 billion won to 4.2 billion won, a 26.60% increase, over the same period.

What stands out is that FnGuide has been liquidating some of its subsidiaries this year. First, in February of this year, Biz & Wise (formerly Stockpedia), a company in which FnGuide held a 50% stake, was liquidated. Biz & Wise was a provider of corporate analysis and financial consulting services, with the remaining 50% stake held by the business media outlet Chosun Biz. Biz & Wise's net profit last year was around 5 million won. The decision to liquidate is interpreted as being due to its negligible impact on overall performance.

Following this, the subsidiary FnDataLab was also liquidated in April of this year. FnDataLab is a financial solution provider established in 2022. Unlike Biz & Wise, FnGuide held an 80% stake in FnDataLab. The liquidation of FnDataLab can be seen as a direct reflection of FnGuide’s own intentions.

FnDataLab recorded a revenue of 2.1 billion won and a net profit of 200 million won last year, showing significant performance unlike Biz & Wise. Given that it was in its early stages of establishment, there was room for growth. The company was even recognized in the industry, with research jointly conducted by FnGuide and FnDataLab being featured in various media outlets.

Some view that Hwacheon Machinery's management style has had an impact. The analysis suggests that they prefer to pursue business within a single company rather than maintaining multiple subsidiaries under FnGuide. BizHankook contacted FnGuide to hear their stance on the matter but received no response.