Musinsa, a leading Korean fashion platform, is pushing for an IPO targeting a 10 trillion KRW valuation after reporting record first-half revenue of 821.7 billion KRW (up 22.5% year‑on‑year). The company expanded beyond fashion into offline stores, beauty, and global markets — with global store GMV rising over 143% in Q2 and export sales up ninefold — and opened 12 stores in Q2 alone. However, Musinsa posted a 15.6 billion KRW net loss in H1, partly due to accounting treatment of sizable redeemable convertible preferred shares (RCPS) issued in prior funding rounds. RCPS (상환전환우선주) are hybrid shares carrying both a repayment right and conversion right; Musinsa records the repayment portion as debt and the conversion right as a derivative liability. As of June 30, RCPS-related liabilities totaled about 849.9 billion KRW on the balance sheet, creating a potential hurdle for valuation. Some RCPS have reached contractual repayment windows, and certain series allow investors to demand cash repayment if an IPO does not occur within five years. Musinsa is negotiating with investors to convert RCPS into common shares, which would remove the debt classification and improve financial ratios — a key factor for achieving its 10 trillion KRW valuation target.
