Daewon Systems has received a notice of contract termination for the ITER electron cyclotron power supply system

Dawon Systems (068240) announced that it received a notice of termination from the Korea Institute of Fusion Energy regarding the "Development and Production of High-Voltage Power Supplies for the ITER Electron Cyclotron" single-sale and supply contract, as disclosed on August 11, 2026. The current contract amount is EUR 54,669,432, which, when converted to Korean Won using the KEB Hana Bank exchange rate of 1 EUR = 1,630.78 KRW as of September 2, 2025, is approximately 89.15382 billion KRW. This represents a significant contract, accounting for 29.57% of the company's consolidated revenue of approximately 301.5 billion KRW in 2024. The contract amount does not include value-added tax (VAT). Originally, this contract was signed on September 3, 2025, and was intended to be valid for approximately 10 years, until April 30, 2035. The Korea Institute of Fusion Energy is the contracting party, while the actual client (principal contractor) is the ITER International Organization. Dawon Systems acknowledged receiving the notice of termination, but stated that there are disagreements with the contracting party regarding the reasons for the termination and the allocation of responsibility. Accordingly, the company announced that it is considering taking active measures, including legal procedures. The termination of this long-term contract, which accounts for approximately 30% of the company's revenue, is likely to have an inevitable impact on its performance and order backlog. Furthermore, additional uncertainties may arise depending on the outcome and nature of any potential legal disputes. Dawon Systems plans to immediately re-disclose any specific changes in the progress of the related matters.