# EDGAR Filing Document

**Accession Number:** 0001911545
**File Stem:** 0000000000-23-000408
**Filing Date:** 2023-1
**Character Count:** 13313
**Document Hash:** aaf8e5640d95da3fc78efc9008ae9fa0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-000408.hdr.sgml**: 20231103

**ACCESSION NUMBER**: 0000000000-23-000408

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230113

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Hanryu Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001911545
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **IRS NUMBER:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 160, YEOUISEO-RO
- **STREET 2:** YEONGDEUNGPO-GU
- **CITY:** SEOUL
- **STATE:** M5
- **ZIP:** 07231
- **BUSINESS PHONE:** 82-2-564-8588

**MAIL ADDRESS:**
- **STREET 1:** 160, YEOUISEO-RO
- **STREET 2:** YEONGDEUNGPO-GU
- **CITY:** SEOUL
- **STATE:** M5
- **ZIP:** 07231
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001851734-22-000103

## Text-Extract

```

United States securities and exchange commission logo

                           January 13, 2023

       Chang-Hyuk Kang
       Chief Executive Officer
       Hanryu Holdings, Inc.
       160, Yeouiseo-ro
       Yeongdeungpo-gu, Seoul
       Republic of Korea 07231

                                                        Re: Hanryu Holdings,
Inc.
                                                            Amendment No. 5 to
Draft Registration Statement on Form S-1
                                                            Submitted December
28, 2022
                                                            CIK No. 001911545

       Dear Chang-Hyuk Kang:

             We have reviewed your amended draft registration statement and
have the following
       comments. In some of our comments, we may ask you to provide us with
information so we
       may better understand your disclosure.

              Please respond to this letter by providing the requested
information and either submitting
       an amended draft registration statement or publicly filing your
registration statement on
       EDGAR. If you do not believe our comments apply to your facts and
circumstances or do not
       believe an amendment is appropriate, please tell us why in your
response.

             After reviewing the information you provide in response to these
comments and your
       amended draft registration statement or filed registration statement, we
may have additional
       comments. References to our prior comments refer to our letter dated
December 22, 2022.

       Amendment No. 5 to Draft Registration Statement on Form S-1

       Prospectus Summary
       Financial, page 4

   1.                                                   We note from your
revised disclosure in response to prior comment 4 that you have no
                                                           advertising
revenue as of September 30, 2022. Considering advertising is not your only
                                                        source of revenue, and
as you have recognized revenue to date in fiscal 2022, please
                                                        revise here to discuss
the type of revenue generated for the period presented.
 Chang-Hyuk Kang
FirstName  LastNameChang-Hyuk  Kang
Hanryu Holdings, Inc.
Comapany
January 13,NameHanryu
            2023       Holdings, Inc.
January
Page 2 13, 2023 Page 2
FirstName LastName
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Key Performance Indicators ("KPIs"), page 59

2.       Please explain and revise to clarify why ARPU, which is calculated
based on total
         revenue, was zero in the first three quarters of fiscal 2022,
particularly considering you
         generated revenue during the quarter ended September 30, 2022.
Components of Results of Operations, page 60

3.       We note your revised disclosures where you state that you "intend" to
generate
         revenue from retail and marketing services. Please revise to clarify
that you have
         generated revenue from these revenue sources. Further, you refer to
Hanryu Times and
         Hanryu Bank as "affiliated entities." Revise throughout the filing to
refer to these entities
         as your subsidiaries. If "affiliated entities" refers to entities
other than your subsidiaries,
         please identify each entity and describe your relationship to each.
Results of Operations
Revenue, page 62

4.       We note your revised disclosures in response to prior comment 9.
Please further clarify, if
         true, that the $788,084 generated from "advertising sales" in the nine
months ended
         September 30, 2022 was from the marketing services provided to the
South Korean
         company.
Liquidity and Going Concern, page 66

5.       Please disclose the minimum period of time you will be able to conduct
your planned
         operations using currently available resources without regard to the
proceeds you expect
         to receive from this offering. Refer to Item 303(b) of Regulation S-K.
Condensed Consolidated Statements of Operations, page F-3

6.       In response to prior comment 14, you state there was no recorded cost
of revenue related
         to the marketing services, however, you disclose here that cost of
revenue includes all
         direct labor, materials, telecommunications, printing, etc. As it
would appear these
         type of costs were incurred to provide the marketing services, such as
the production of
         marketing materials and video content and promotion of events, please
explain why such
         costs are not reflected as cost of revenue, or revise.
 Chang-Hyuk Kang
FirstName  LastNameChang-Hyuk  Kang
Hanryu Holdings, Inc.
Comapany
January 13,NameHanryu
            2023       Holdings, Inc.
January
Page 3 13, 2023 Page 3
FirstName LastName
Notes to Condensed Consolidated Financial Statements
Note 2 - Significant Accounting Policies
Revenue Recognition, page F-11

7.       We note your response to prior comment 15. As previously requested,
please revise here
         to include a discussion of your revenue recognition policy related to
marketing services,
         including the type of services provided and how you determine when the
related revenue
         is recognized.
Notes to Consolidated Financial Statements
Note 9 - Investments, page F-61

8.       We note your response to prior comment 19 and your disclosures on page
F-61,
         which state that for the SMC right you applied ASU 2016-01 in
determining that it should
         be recorded as a "long-term investment." Please provide us with a
detailed analysis that
         specifies the specific section of the codification that was updated by
ASU 2016-01 and the
         specific guidance in ASC 325, which you referenced in your October 28,
2022 response
         letter, that you applied in determining that the SMC right should be
recognized as a "long-
         term investment," or tell us any other accounting guidance considered
and how you
         applied such guidance.
       You may contact Melissa Kindelan, Senior Staff Accountant, at (202)
551-3564 or
Kathleen Collins, Accounting Branch Chief, at (202) 551-3499 if you have
questions regarding
comments on the financial statements and related matters. Please contact Edwin
Kim, Staff
Attorney, at (202) 551-3297or Larry Spirgel, Office Chief, at (202) 551-3815
with any other
questions.

                                                              Sincerely,

                                                              Division of
Corporation Finance
                                                              Office of
Technology
cc:      Matthew Ogurick, Esq.

```

### Attached PDF Documents

**Attachment 1:** `filename1`

![img-0.jpeg](img-0.jpeg)

CORPORATION FINANCE

# UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
WASHINGTON, D.C. 20549

January 13, 2023

Chang-Hyuk Kang  
Chief Executive Officer  
Hanryu Holdings, Inc.  
160, Yeouiseo-ro  
Yeongdeungpo-gu, Seoul  
Republic of Korea 07231

# **Re: Hanryu Holdings, Inc.  
Amendment No. 5 to Draft Registration Statement on Form S-1  
Submitted December 28, 2022  
CIK No. 001911545**

Dear Chang-Hyuk Kang:

We have reviewed your amended draft registration statement and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.

Please respond to this letter by providing the requested information and either submitting an amended draft registration statement or publicly filing your registration statement on EDGAR. If you do not believe our comments apply to your facts and circumstances or do not believe an amendment is appropriate, please tell us why in your response.

After reviewing the information you provide in response to these comments and your amended draft registration statement or filed registration statement, we may have additional comments. References to our prior comments refer to our letter dated December 22, 2022.

# Amendment No. 5 to Draft Registration Statement on Form S-1

# Prospectus Summary

# Financial, page 4

1. We note from your revised disclosure in response to prior comment 4 that you have no “advertising” revenue as of September 30, 2022. Considering advertising is not your only source of revenue, and as you have recognized revenue to date in fiscal 2022, please revise here to discuss the type of revenue generated for the period presented.

Chang-Hyuk Kang  
Hanryu Holdings, Inc.  
January 13, 2023  
Page 2

# Management's Discussion and Analysis of Financial Condition and Results of Operations  
Key Performance Indicators ('KPIs'), page 59

2. Please explain and revise to clarify why ARPU, which is calculated based on total revenue, was zero in the first three quarters of fiscal 2022, particularly considering you generated revenue during the quarter ended September 30, 2022.

# Components of Results of Operations, page 60

3. We note your revised disclosures where you state that you 'intend' to generate revenue from retail and marketing services. Please revise to clarify that you have generated revenue from these revenue sources. Further, you refer to Hanryu Times and Hanryu Bank as 'affiliated entities.' Revise throughout the filing to refer to these entities as your subsidiaries. If 'affiliated entities' refers to entities other than your subsidiaries, please identify each entity and describe your relationship to each.

# Results of Operations

# Revenue, page 62

4. We note your revised disclosures in response to prior comment 9. Please further clarify, if true, that the $788,084 generated from 'advertising sales' in the nine months ended September 30, 2022 was from the marketing services provided to the South Korean company.

# Liquidity and Going Concern, page 66

5. Please disclose the minimum period of time you will be able to conduct your planned operations using currently available resources without regard to the proceeds you expect to receive from this offering. Refer to Item 303(b) of Regulation S-K.

# Condensed Consolidated Statements of Operations, page F-3

6. In response to prior comment 14, you state there was no recorded cost of revenue related to the marketing services, however, you disclose here that cost of revenue includes all direct labor, materials, telecommunications, printing, etc. As it would appear these type of costs were incurred to provide the marketing services, such as the production of marketing materials and video content and promotion of events, please explain why such costs are not reflected as cost of revenue, or revise.

Chang-Hyuk Kang  
Hanryu Holdings, Inc.  
January 13, 2023  
Page 3

# Notes to Condensed Consolidated Financial Statements

# Note 2 - Significant Accounting Policies

# Revenue Recognition, page F-11

7. We note your response to prior comment 15. As previously requested, please revise here to include a discussion of your revenue recognition policy related to marketing services, including the type of services provided and how you determine when the related revenue is recognized.

# Notes to Consolidated Financial Statements

# Note 9 - Investments, page F-61

8. We note your response to prior comment 19 and your disclosures on page F-61, which state that for the SMC right you applied ASU 2016-01 in determining that it should be recorded as a 'long-term investment.' Please provide us with a detailed analysis that specifies the specific section of the codification that was updated by ASU 2016-01 and the specific guidance in ASC 325, which you referenced in your October 28, 2022 response letter, that you applied in determining that the SMC right should be recognized as a 'long-term investment,' or tell us any other accounting guidance considered and how you applied such guidance.

You may contact Melissa Kindelan, Senior Staff Accountant, at (202) 551-3564 or Kathleen Collins, Accounting Branch Chief, at (202) 551-3499 if you have questions regarding comments on the financial statements and related matters. Please contact Edwin Kim, Staff Attorney, at (202) 551-3297 or Larry Spirgel, Office Chief, at (202) 551-3815 with any other questions.

Sincerely,

Division of Corporation Finance Office of Technology

cc: Matthew Ogurick, Esq.