Park Jaebeom's Won Soju Does Not Submit Audit Report Due to Sharp Decline in Sales

The manufacturer of the premium distilled soju brand Won Soju, founded by actor Park Jaebeom, Won Spirits, has decided not to submit its audit report this year. This decision is reportedly due to a significant decline in sales compared to the previous year.

On the 25th, a representative from Won Spirits stated, "We do not plan to submit an audit report this year."

An audit report is a document that expresses whether a company's financial statements have been prepared according to accounting standards after being audited by an external party.

While unlisted companies are not obligated to announce quarterly results regarding sales or operating profits, they must undergo external audits if they meet certain criteria. Won Spirits explained that it does not meet these criteria, so it will not submit an audit report.

Park Jaebeom, the CEO of Won Spirits, holds a 43% stake in the company, while Culture & Commerce owns 36%, TA Ventures I LLC holds 11%, and Kim Soo-hyuk holds 10%. This company is a limited liability agricultural corporation.

The company gained significant attention when it launched the distilled soju, Won Soju, in collaboration with domestic breweries in 2022. In particular, the original Won Soju caused a sold-out incident at its launch due to its sophisticated packaging, use of 100% domestic rice, and the fact that it is a premium distilled soju without additives.

However, recent disclosed data shows that sales for the year 2023 amounted to 13.2 billion won, a 52.6% decrease compared to the previous year. Operating profit also plummeted to 500 million won, down 95% from the previous year. Total assets have also reportedly decreased by more than half compared to the previous year.

Won Spirits stated, "We are not submitting an audit report as we do not meet the external audit criteria for unlisted companies. We are preparing various activities for a greater leap forward, as we received a lot of love." However, other celebrities such as Sung Si-kyung and Choiza are also entering the traditional liquor business, leading to evaluations that the uniqueness and buzz surrounding the brand are not as strong as before.

Image source: Won Soju / News1