Korea Line, the shipping arm of SM Group, said its consolidated operating profit for the second quarter rose 91% from a year earlier to 63 billion won ($45 million), while revenue fell 6% to 312.8 billion won. The company said the revenue decline reflected the effect of a completed construction sales project in its non-shipping business. It attributed the profit increase to a firm shipping market, a stable business structure focused on dedicated carriers, and expanded time-charter operations (leasing ships for fixed periods). Korea Line said two secondhand vessels introduced last year and long-term shipping contracts with parties including Korea East-West Power began making a meaningful contribution from the first quarter of this year. Profitability also benefited from reducing volatile spot operations (single-voyage market shipping) and shifting toward time-charter operations as it sought to manage risk tied to the prolonged Middle East conflict. The company said its debt-to-equity ratio (a leverage measure) improved to 64% in the second quarter from about 100% in 2024 and 70% in 2025 as it used operating cash from its core shipping business and funds from property sales to repay high-interest borrowings. CEO Min Sang-ki said the company maintained steady profits despite fluctuations in the shipping market and oil prices, and said it would pursue higher-value markets and new businesses to support sustainable growth. For the first half of the year, Korea Line reported revenue of 590.6 billion won and operating profit of 137.4 billion won.