[News Space=Reporter seungwon lee] Darumplus (CEO Lee Eok-bul, located at 94 Seong-an-ro, Gangdong-gu, Seoul), the operator of the charcoal-grilled beef chain 'Iee-Chadol' and the stir-fried pork chain 'Jeyuk-Pokshik,' has received a "Disclaimer of Opinion" from an accounting firm, signaling the highest level of warning for its financial transparency.

In 2025, the company recorded a net loss of 6.28 billion KRW and fell into a state of "complete capital impairment," with total liabilities exceeding total assets by 13.23 billion KRW. It is currently undergoing rehabilitation procedures at the Seoul Rehabilitation Court.

Disclaimer of Opinion & Rehabilitation: Auditor Unable to Judge

According to the 9th audit report (Dongsung Accounting Corporation, issued April 1, 2026) filed with the Financial Supervisory Service on April 15, revenue plummeted 50.5% from 17.7 billion KRW the previous year to 8.76 billion KRW. With operating losses of 930 million KRW continuing for two consecutive years, the company's survival as a going concern is unclear.

In particular, Dongsung Accounting Firm issued a Disclaimer of Opinion on Darm Plus’s financial statements for the 2025 fiscal year. A Disclaimer of Opinion is the lowest level of audit opinion and is issued when sufficient and appropriate audit evidence cannot be obtained. There are two grounds for the disclaimer. First, verification of the underlying financial statements is impossible because the financial statements for the previous period (2024) had already received a Disclaimer of Opinion from the predecessor auditor on the grounds of "failure to submit financial statements."

Second, the company filed for the commencement of rehabilitation proceedings with the Seoul Rehabilitation Court on February 11, 2025, received a decision to commence rehabilitation proceedings on March 19, 2025, and the rehabilitation proceedings are still in progress as of December 31, 2025, making the company's continued existence as a going concern uncertain. The audit report stated, "We were unable to obtain audit evidence to reasonably estimate any adjustments to assets, liabilities, and income and expenses that may arise as a final result of this uncertainty."

Revenue Halved and Ongoing Operating Losses

According to the income statement, 2025 revenue was 8.76 billion KRW, a 50.5% drop from the previous year (17.71 billion KRW). Product sales were halved to 7.98 billion KRW, and royalty income also fell 34.9% to 740 million KRW. With operating losses continuing for a second year, the cost-of-goods-sold structure is overwhelmed by SG&A expenses (3.53 billion KRW).

A more critical figure appears in non-operating expenses, which surged 4.7 times year-on-year to 5.61 billion KRW, primarily due to 5.34 billion KRW in bad debt write-offs resulting from irrecoverable loans made to related parties and affiliates. Consequently, the net loss widened to 6.28 billion KRW, 3.3 times higher than the previous year (1.91 billion KRW).

Complete Capital Impairment & Liquidity Cliff

The balance sheet is stark. Total assets are only 6.04 billion KRW, while total liabilities amount to 19.27 billion KRW. This results in a capital deficit of 13.23 billion KRW, meaning capital is completely exhausted.

The liquidity crisis is immediate. Current liabilities (17.15 billion KRW) exceed current assets (1.11 billion KRW) by over 16 billion KRW, and cash equivalents are a mere 14.4 million KRW—representing only 0.016% of annual revenue. Short-term debt, current portions of long-term debt, and corporate bonds total 16.48 billion KRW that must be repaid within one year.

Related-Party Risks Backfiring

Loans to shareholders total 4.01 billion KRW, with 775 million KRW in outstanding receivables, much of which is considered unrecoverable. The 5.34 billion KRW in bad debt expenses is essentially the result of these failed loans. Darumplus has also mortgaged its own land and buildings (108 million KRW) to secure collateral for shareholders, creating a risk of asset misappropriation. Furthermore, convertible bonds worth 1.76 billion KRW are maturing in October 2026, with put options allowing investors to demand early repayment at any time.

Mortgage and Litigation Risks

The company has pledged a total of 9.82 billion KRW in collateral on its real estate to six creditors, including Woori Bank and Shinhan Bank. Given the book value of its land is only 2.45 billion KRW (and the official assessed value only 1.04 billion KRW), the company has limited capacity to dispose of assets during rehabilitation.

Three lawsuits are currently pending, totaling 296 million KRW. The largest is a suit filed by Darumplus against the Fair Trade Commission (FTC) to cancel a corrective order, which centers on alleged legal violations in its franchising business.

Analysis of SG&A Expenses

Despite a 50% revenue drop, advertising expenses increased by 67.7%, and bad debt expenses, which were zero the previous year, were newly recorded at 561 million KRW. Transport costs also surged more than fourfold.

A corporate finance expert stated, "Darumplus's audit report shows a financial disaster where the company's survival is in question. Complete capital impairment with only 14 million KRW in cash means that, without external capital injection, not a single day of normal operations can be guaranteed."

The expert added, "The massive 5.3 billion KRW in bad debts resulting from loans to shareholders and affiliates reads like a classic pattern of corporate asset stripping, where the money of franchisees and partners was funneled through the head office to benefit related parties before disappearing."

Concluding, the expert warned, "The disclaimer is a declaration that the financial statements themselves cannot be trusted. Since the company has now received disclaimers for two consecutive years, it proves that it has lacked basic accounting transparency for years. Given that operating cash flow is currently negative, it is nearly impossible for the company to repay debts, and franchisees and creditors should prepare for the worst-case scenario."