Is Youngone Corporation profitable in 2026?

Youngone Corp (KRX:111770) grew consolidated revenue 15.5% YoY to KRW 4.06 trillion in 2025, with TTM revenue around KRW 4.15T as of Q1 2026, but a new 10-12.5% US forced-labor tariff regime effective July 24, 2026 targeting Bangladesh and Vietnam creates a live margin risk for 2026 results.

Who owns Youngone Corporation?

Youngone Corporation trades on the Korea Exchange as ticker 111770 and is a subsidiary of parent holding company Youngone Holdings (KRX:009970), which posted its own 2025 revenue of about KRW 4.90 trillion, up 13.7% YoY, as of a June 27, 2026 report.

Who is Youngone Corporation's biggest competitor?

Shenzhou International Group Holdings (China, HKG:2313) is Youngone's closest scale peer, described as the largest vertically integrated knitwear manufacturer with about 97,000 employees and over $25 billion market cap, supplying Nike, adidas and Lululemon, per data cited July 25, 2026.

Could AI or automation replace Youngone Corporation's manufacturing jobs?

Garment cutting, sewing and inspection are targets for automation, and Vietnam is reported (July 7, 2026) to be pivoting toward automated, high-value production amid tariff shocks, pressuring labor-intensive rivals; Youngone's technical outerwear production for brands like Arc'teryx still relies heavily on human labor at its 100 million garment annual output.

Does Youngone Corporation manufacture for The North Face and Patagonia?

Yes, Youngone has supplied technical outdoor apparel to The North Face, Patagonia, Arc'teryx, Lululemon, adidas and Outdoor Research for decades, and has licensed and distributed The North Face brand in Korea since 1997, per company history pages dated February 11, 2025.

What happened between Youngone and Scott Sports?

Youngone took a 20% stake in Swiss bike maker Scott Sports in 2013, raised it to 50.01% in 2015, and after an ICC arbitration ruling in its favor on February 17, 2025 ordering former CEO Beat Zaugg to sell his 47% stake, Youngone moved to near-full control of Scott Sports by December 18, 2025.

Consumer brands · subsidiary of Youngone Holdings Co., Ltd. (KRX: 009970) · South Korea

Youngone Corporation

youngone.co.kr ↗

Korean OEM/ODM maker of technical outdoor apparel for North Face, Patagonia, Arc'teryx, Lululemon.

Defensible for now

Assessed 25 July 2026 · Evidence as of 25 July 2026

Real protection, with named pressure against it.

On the recordSince 25 July 2026 · Checkable from Q3 2026 · Every call on the record Checkpoint: Q3 2026 earnings showing first full quarter of US forced-labor tariff impact on Bangladesh/Vietnam output

The call

Youngone keeps growing on diversified factories and loyal premium brands, but a new US tariff on its two biggest production bases is the live test of how much that spread actually protects margins.

Youngone makes clothes and gear for famous brands like North Face and Patagonia at factories across seven countries. It is hard to replace because those brands trust it and rely on its spread-out factories to dodge tariffs and supply-chain trouble, but a new US tariff rule starting July 2026 hits its two biggest bases in Bangladesh and Vietnam with 10 to 12.5 percent extra costs, which will squeeze profits in ways nobody can predict yet. The company survives in the next few years if it can move fast enough to shift work to places like Uzbekistan and Kenya before competitors copy the move or squeeze prices so hard that margins disappear.

Why

AI pressure: Robotic sewing automation (Sewbo, SoftWear Automation style systems). Garment assembly still resists full automation, so AI mainly helps rivals cut labor cost, not replace Youngone yet. Could AI do the core job? Unlikely.

Bigger players: Shenzhou International and other large Chinese/Vietnamese OEM groups. Bigger vertically integrated Asian manufacturers already compete for the same brand contracts with scale and automation edges. Could a giant copy it? Probably.

What protects it. Seven-country factory footprint plus decades-long ties to premium brands and control of Scott Sports and Outdoor Research give it order security and pricing options tariffs can't easily strip away.

What would change this call

Youngone's gross margin in Q3/Q4 2026 earnings reports versus prior-year quarters. Shows whether the July 2026 tariff regime is compressing margins as feared.
Confirmed timeline for Youngone's $40M Uzbekistan expansion or new Kenya facility announcements. Shows whether Youngone is shifting production fast enough out of tariff-hit bases.
Public statements or contract changes from Patagonia, Arc'teryx, or Lululemon regarding sourcing. Would show premium brand customers re-sourcing away from Youngone.

Key numbers

2025 revenue KRW 4.06T, up 15.5% YoY (2026-06-28)
New US forced-labor tariff: 10-12.5% on Bangladesh/Vietnam goods (2026-07-24)
Youngone holds near-full control of Scott Sports (2025-12-18)

Named risks

New 10-12.5% US forced-labor tariff on Bangladesh and Vietnam bases effective July 24, 2026. Severity: high
Automation-driven cost pressure from Vietnamese rivals eroding labor-cost advantage. Severity: medium
Concentration on a small set of premium brand customers (North Face, Patagonia, Lululemon). Severity: medium
Scott Sports integration and prior governance dispute with former CEO Zaugg. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Shenzhou International Group Holdings	contesting	97,000 employees and $25B+ market cap vs Youngone, per data cited 2026-07-25
Vietnam-based automated OEMs	gaining on	Vietnam pivoting to automated, high-value production amid tariff shocks as of 2026-07-07
US tariff policy on Bangladesh/Vietnam	losing to	10-12.5% forced-labor tariff on Youngone's two largest bases effective 2026-07-24

Questions people ask

Is Youngone Corporation profitable in 2026?: Youngone Corp (KRX:111770) grew consolidated revenue 15.5% YoY to KRW 4.06 trillion in 2025, with TTM revenue around KRW 4.15T as of Q1 2026, but a new 10-12.5% US forced-labor tariff regime effective July 24, 2026 targeting Bangladesh and Vietnam creates a live margin risk for 2026 results.
Who owns Youngone Corporation?: Youngone Corporation trades on the Korea Exchange as ticker 111770 and is a subsidiary of parent holding company Youngone Holdings (KRX:009970), which posted its own 2025 revenue of about KRW 4.90 trillion, up 13.7% YoY, as of a June 27, 2026 report.
Who is Youngone Corporation's biggest competitor?: Shenzhou International Group Holdings (China, HKG:2313) is Youngone's closest scale peer, described as the largest vertically integrated knitwear manufacturer with about 97,000 employees and over $25 billion market cap, supplying Nike, adidas and Lululemon, per data cited July 25, 2026.
Could AI or automation replace Youngone Corporation's manufacturing jobs?: Garment cutting, sewing and inspection are targets for automation, and Vietnam is reported (July 7, 2026) to be pivoting toward automated, high-value production amid tariff shocks, pressuring labor-intensive rivals; Youngone's technical outerwear production for brands like Arc'teryx still relies heavily on human labor at its 100 million garment annual output.
Does Youngone Corporation manufacture for The North Face and Patagonia?: Yes, Youngone has supplied technical outdoor apparel to The North Face, Patagonia, Arc'teryx, Lululemon, adidas and Outdoor Research for decades, and has licensed and distributed The North Face brand in Korea since 1997, per company history pages dated February 11, 2025.
What happened between Youngone and Scott Sports?: Youngone took a 20% stake in Swiss bike maker Scott Sports in 2013, raised it to 50.01% in 2015, and after an ICC arbitration ruling in its favor on February 17, 2025 ordering former CEO Beat Zaugg to sell his 47% stake, Youngone moved to near-full control of Scott Sports by December 18, 2025.

Timeline

2026-07-24New US Section 301 forced-labor tariff of 10-12.5% takes effect on 60 countries including Bangladesh, Vietnam
2026-06-21Youngone announces $22M Uzbekistan investment, targets $40M within three years
2025-12-18Youngone moves to near-full control of Scott Sports after ICC ruling
2025-09-25Youngone launches treasury share retirement plan, 5% over 2025 to 2029
2025-08US-Bangladesh trade deal cuts RMG tariff to 20%
2025-07Bangladesh apparel tariff reduced from 37% to 35%
2025-03-06Scott Sports installs co-CEO structure, Kim Juwon and Ducrot
2025-02-17ICC arbitration rules for Youngone, orders Zaugg to sell 47% Scott stake
2015-02-17Youngone raises Scott Sports stake to 50.01% control

Head to head

Hansae Co., Ltd. vs Youngone Corporation

Revision history

25 July 2026

First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.

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