Korea Zinc (010130) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Korea Zinc is one of the world's largest smelters, extracting and selling non-ferrous metals such as zinc and lead from ore and recycled feedstock, with precious metals such as silver and gold — obtained alongside in that process — forming a large pillar of its profit. In the first quarter of 2026 it posted revenue of ₩6.072 trillion and operating profit of ₩746.1 billion, a record quarterly high, with the operating margin also rising 5.2 percentage points from a year earlier to 12.3%. The most notable point is that while strong silver and gold prices, a favorable exchange rate and improving subsidiary results coincide, results improve quickly; but given the nature of smelting, if metal prices turn down, profit can wobble too, and because the debt ratio is on the high side, the interest burden must be watched alongside.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Non-Ferrous Metals” (Chemicals, Refining, Steel & Materials · Steel & Metals), a type typically read first through P/B.
Non-ferrous metals swing hard with global metal prices and downstream demand, so profits inflate in upturns and can turn to losses in downturns. With earnings this volatile, current-year multiples wobble, so price-to-book (P/B) — the share price against asset value — is the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 37.6% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 58.4% higher than a year earlier.
- ROE is 8.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.1%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2016-12-31
Largest shareholder Young Poong 26.91% (corporate)
Controlling bloc incl. related parties 49.58%
With the controlling bloc holding 50%, the ownership structure is stable.
🔎 In-depth analysis Reading
Korea Zinc is one of the world's largest non-ferrous metal smelters, centered on zinc and lead. It melts concentrate (ore that has been through a first stage of processing) bought from mines, along with recycled feedstock such as spent batteries and electronic scrap, into high-purity metals for sale. The key point is that in this smelting process, precious metals such as silver, gold and indium come out as by-products alongside the zinc and lead. So the structure is one in which revenue and profit grow together when silver and gold prices rise. On top of that, under the 'Troika Drive' pursued since Chairman Choi Yoon-beom took office, it is growing businesses in renewable energy, battery materials (precursors and nickel) and resource circulation (spent-battery recycling). Through subsidiary Kemco it is also building an 'all-in-one nickel smelter' that makes nickel sulfate, a key raw material for EV battery cathode materials.
The latest close is ₩1,234,000 and the market capitalization is ₩25.8 trillion. The price sits above its 20-day moving average (₩1,018,850) and above its 60-day moving average (₩1,174,683). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 65.3, a neutral level. The one-month change is +12.8%, the three-month change is -29.4%, and the position relative to the 52-week high is -41.6%. Relative strength versus the KOSPI is 41 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 41% of all stocks. Over the past three months it lagged the index by 5.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On a 2025 basis, ROE (how much is earned in a year on equity) is a middling 7.1%. The operating margin is 7.4%, which naturally comes out low given that raw-material costs make up most of revenue in smelting. What stands out is that the debt ratio (debt relative to equity) is on the high side at about 186%, because large smelting facilities and new-business investment cost a lot. Interest coverage (how many times operating profit can cover interest) is 2.0x, so the interest burden needs to be watched. On a debt-adjusted measure, EV/EBIT (enterprise value divided by operating profit, a debt-adjusted counterpart to P/E) is about 20x. Net debt (total borrowings minus cash) is about ₩2.35 trillion. That said, 2025 free cash flow (FCF) was negative because large-scale facility investment such as the nickel smelter is under way, so more cash went out on investment than was earned. The P/B is 1.95x, above the steel-and-metals sector average, reflecting its silver and gold exposure, its position as one of the world's largest smelters, and expectations for new businesses.
Revenue rose 37.6% from the prior year to ₩16.59 trillion in 2025, a steepening of growth. Operating profit also rose 70.3% to ₩1.23 trillion. Net profit recovered about fourfold to ₩775.0 billion from the prior year's trough (₩190.9 billion). Because 2024 net profit was unusually low, the base effect makes the growth rate look large. The trend strengthened further in 2026: first-quarter cumulative revenue rose 58.4% and operating profit rose 175.2% year on year, a record quarterly high. This resulted from strong precious-metal prices for silver and gold, expanded sales volumes, a favorable exchange rate and improving subsidiary results all working at once. If this trend continues, 2026 net profit looks set to rise sharply from 2025, in which case the P/E calculated on last year's results looks high but falls much lower on this year's expected earnings.
Recent disclosures cluster around two axes: results and new businesses. The May 2026 quarterly report confirmed the record first-quarter results. At the end of May, the company announced through a fair disclosure its investment plan for the 'all-in-one nickel smelter' via subsidiary Kemco. It is building, at Onsan in Ulsan, a first-of-its-kind smelter that can process a variety of feedstocks including nickel matte and MHP, targeting mass production within 2027, with expected facility investment of about ₩515.4 billion. This is central to the Troika Drive strategy of expanding into EV battery materials. On dividends, it decided on a cash dividend of ₩20,000 per share. Meanwhile, several disclosures related to large ownership stakes have continued, leaving governance and control matters as a backdrop.
Korea Zinc's strengths are its position as one of the world's largest smelters and its silver and gold exposure. Because the structure is one in which precious metals obtained alongside zinc and lead smelting push up profit, results improve quickly in a phase of strong silver and gold prices, as the record first-quarter 2026 results show. New businesses such as nickel smelting and resource circulation are an axis of medium-to-long-term growth. The cautions are just as clear. In smelting, profit swings a lot with the metal-price cycle; if precious-metal prices turn down, the current high margin can reverse. With a high debt ratio and negative free cash flow due to large-scale investment, the financial burden must be viewed alongside. Governance matters also remain a variable. In sum, this is a company that can be strong in a phase of continued precious-metal strength and materializing new businesses, and weak in a phase where metal prices slow or the investment burden grows.
🔎 Valuation vs peers Fairly valued
Compared with non-ferrous and metal-materials smelting/processing companies. Poongsan handles non-ferrous metals such as copper and brass and has results tied to metal prices, making it the closest in character, while POSCO Holdings and SeAH Besteel Holdings serve as references in the broader steel-and-metals sector context.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Poongsan | 15.96x | 1.00x | 7.82% |
| POSCO Holdings | 38.44x | 0.45x | 1.51% |
| SeAH Besteel Holdings | 25.56x | 0.74x | 3.71% |
Korea Zinc's P/B of 1.95x and P/E of 27.5x are higher than Poongsan (P/E 11.9, P/B 0.76) or the steelmakers. That said, the P/E calculated on last year's (2025) results looks more burdensome than it really is because it is an earnings-inflection period — 2024 net profit was a trough and 2025 was recovering. Reflecting the record first-quarter 2026 results and the precious-metal price environment, the P/E on this year's expected earnings falls sharply to around 15x. Given its position as one of the world's largest smelters, its silver and gold exposure and expectations for new businesses, that is hard to see as excessive. Conversely, its high debt ratio and the fact that profit swings a lot with the metal-price cycle do not justify the valuation without limit. On balance, the read is a fair range that reflects its position and growth potential.
Price history Close · MA20 · MA60
The latest close is ₩1,234,000 and the market capitalization is ₩25.8 trillion. The price sits above its 20-day moving average (₩1,018,850) and above its 60-day moving average (₩1,174,683). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 65.3, a neutral level. The one-month change is +12.8%, the three-month change is -29.4%, and the position relative to the 52-week high is -41.6%. Relative strength versus the KOSPI is 41 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 41% of all stocks. Over the past three months it lagged the index by 5.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -5.90% / 6M -41.21% / 12M -23.43%
Key metrics Computed vs sector median
Valuation
The P/E of 33.23x is above the sector median (14.17x). The P/B of 2.30x is above the sector median (0.45x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.6%, above the sector average (1.0%). The operating margin is 9.1%. The debt ratio is 89.5%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $6.8B | $8.5B | $11.7B | +37.63% ↑ faster |
| Operating profit | $463.6M | $508.2M | $865.4M | +70.28% ↑ faster |
| Net profit | $370.4M | $134.1M | $544.5M | +305.92% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $7.0B | $7.9B | $6.8B | $8.5B | $11.7B |
| Operating profit | $770.0M | $645.7M | $463.6M | $508.2M | $865.4M |
| Net profit | $569.8M | $560.8M | $370.4M | $134.1M | $544.5M |
| Revenue CAGR | 4-yr avg 13.55% | ||||
Revenue rose 37.6% year over year (2023 ₩9.7 trillion → 2024 ₩12.1 trillion → 2025 ₩16.6 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 70.3% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.6%. The two-year revenue CAGR is 30.7%. In the most recent quarter (Q1 2026), revenue was 58.4% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- Revenue grew 37.6% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsFirst-quarter 2026 revenue of ₩6.072 trillion and operating profit of ₩746.1 billion, a record quarterly high. Year on year, revenue +58.4%, operating profit +175.2%, operating margin 12.3%.The result of strong precious-metal prices, sales volumes, the exchange rate and subsidiary improvement coinciding, suggesting the possibility that full-year 2026 profit far exceeds 2025's (strong near-term earnings momentum). Source
- 2026-05-29IRInvestment plan for an 'all-in-one nickel smelter' via subsidiary Kemco (fair disclosure). At the Onsan site in Ulsan, targeting mass production within 2027, with expected facility investment of about ₩515.4 billion, using a method that processes a variety of feedstocks including nickel matte and MHP.A central axis of the Troika Drive, expanding into battery materials (nickel sulfate). Medium-to-long-term growth expectation, but a cash-outlay burden for the time being due to large-scale facility investment (medium-term growth vs. near-term investment burden). Source
- 2026-05-06DividendCash dividend decided — ₩20,000 per share (dividend yield of about 1.96%, payout ratio of about 52.6%).Continued shareholder returns, returning about half of net profit as dividends (a medium-term stable dividend factor). Source
- 2026-06-01Filing2025 annual report (corrected) — full-year revenue of ₩16.59 trillion (+37.6%), operating profit of ₩1.23 trillion (+70.3%), net profit of ₩775.0 billion (about a fourfold recovery from the prior year's trough).Confirms a profit recovery out of the 2024 weakness. That said, the absolute profit level is governed by the cycle (confirming medium-term results direction). Source
- 2026-05-20UpdateNumerous large-shareholding reports received — as stake changes continue, governance and control matters remain as a backdrop.Regardless of results, ownership-structure and control variables can affect the share price (a medium-term uncertainty factor). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 full-year net profit (attributable to controlling shareholders) | ₩775.0 billion | ₩775.0 billion | Confirmed | link |
| First-quarter 2026 operating profit | ₩746.0 billion | ₩746.1 billion | Confirmed | link |
| Dividend per share (DPS) | ₩20,000 | ₩20,000 | Confirmed | link |
| Estimated 2026 net profit (internal estimate) | approx. ₩1.38 trillion | — | Unverified | link |
Recent filings Source
- 2026-06-01PeriodicAnnual business report (amended)
- 2026-06-01Corporate governance report
- 2026-06-01Disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Fair-disclosure notice (amended)
- 2026-05-20OwnershipOwnership-change filing
- 2026-05-20OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-12OwnershipOwnership-change filing
- 2026-05-12Amended filing
- 2026-05-06DividendCash/stock dividend decision
- 2026-05-06DividendCash/stock dividend decision
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.