Operating segments

12 Months Ended

Dec. 31, 2025

Operating Segments

Operating segments

6. Operating segments

A. Basis for segmentation

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.

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:

		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

C. Geographic information

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:

		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		43,010,330		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		-

D. Major customer

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:

		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	%