Korea Zinc is the world's largest non-ferrous metals smelter on a single-smelter basis, melting zinc and lead concentrates into high-purity metals. Its actual profit is heavily driven by prices of precious metals such as gold, silver, and copper that are recovered as byproducts during smelting, and it is also building new businesses in resource recycling and secondary-battery materials. It posted record quarterly results in the first quarter of 2026, resolved a ₩5,000-per-share dividend (about ₩102 billion in total) in May, and, from March through May, a control dispute between the Young Poong-MBK camp and current management has surfaced through large-holding reports. The key point to weigh is that continued strength in precious metals is a strength—it widens byproduct margins with no separate mine investment, a form of earnings leverage—while a correction in gold and silver prices, or a prolonged control dispute with its attendant borrowing burden and uncertainty, are conditions to watch.
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 7.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.4%.
- The P/E sits above the sector median, reflecting elevated expectations.
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
- Korea Zinc buys zinc and lead concentrates and smelts them into high-purity metals.
- It is the world's largest on a single-smelter basis; its mainstays are zinc and lead, but what really drives profit are the gold, silver, copper, sulfuric acid, indium, and antimony recovered as byproducts during smelting.
- Gold and silver in particular come out of the concentrate-processing step without any separate mine, so when precious-metal prices rise, margins improve step by step with no extra cost.
- Added to this are overseas subsidiaries such as its Australian smelter (Sun Metals) and its so-called 'Troika Drive' new businesses—resource recycling (recovering metals from spent batteries and catalysts), secondary-battery materials (precursors and copper foil), and renewable energy (green hydrogen in Australia).
- The latest close is ₩1,003,000 and the market capitalization is ₩20.9 trillion.
- The price sits below its 20-day line (₩1,132,350) and below its 60-day line (₩1,371,267).
- Trading beneath both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that measures the strength of gains versus losses over the past 14 days on a 0-100 scale) is 31.9, a neutral reading.
- The one-month change is -15.4%, the three-month change is -31.9%, and the price is -52.6% from its 52-week high.
- Relative strength versus the KOSPI is 34 (on a 1-99 scale that weights recent returns against the index over the past year more heavily, with higher meaning stronger than the market).
- That places it in roughly the top 66% of all stocks by strength.
- Over the past three months it lagged the index by 49.0%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- On last year's (2025) basis, revenue was ₩16.6 trillion, operating profit ₩1.23 trillion, and net profit ₩775 billion, with an operating margin of 7.4% and ROE (how much it earns in a year on its equity) of 7.1%.
- The P/E (how many times a year's earnings the share price represents) is 27.01x and the P/B (how many times book net assets) is 1.91x, which look high on the surface.
- What matters, though, is that this P/E is based on last year's earnings.
- Net profit shrank temporarily to ₩190.9 billion in 2024, recovered to ₩775 billion in 2025, and is stepping up again in 2026 as precious-metal prices surge, so a P/E computed on last year's numbers does not reflect current earning power.
- The debt ratio (debt relative to equity) of 186% is somewhat high, largely because the company bought back a large amount of treasury stock during the control dispute, which increased borrowings.
- With a current ratio of 197%, short-term solvency itself is stable.
- The top line is expanding fast.
- Revenue rose from ₩9.7 trillion in 2023 to ₩12.1 trillion in 2024 to ₩16.6 trillion in 2025, with the annual increase widening for two straight years (+37.6% year on year), and operating profit rose 70%.
- Net profit recovered more than fourfold from the 2024 trough (₩190.9 billion) to ₩775 billion in 2025.
- The decisive change came in the first quarter of 2026: revenue of ₩6.07 trillion (+58% year on year) and operating profit of ₩746.1 billion (+175% year on year) set quarterly records, with the operating margin jumping to 12.3%.
- This was the result of a strong precious-metals market—gold averaging about $4,877 an ounce (+70%) and silver in the $84 range (+164%)—lifting byproduct margins.
- The company's officially disclosed 2026 sales-volume targets (600,000 tons of zinc, 430,000 tons of lead, 1,790 tons of silver) are similar to last year's, so the key swing factor for this year's earnings is precious-metal prices, not volume.
- If prices hold near first-quarter levels, full-year earnings will run well above last year's.
- So even though the P/E on last year's earnings looks high, on this year's expected earnings the valuation burden falls markedly.
- Recent disclosures fall into two strands.
- The first is strong results and shareholder returns.
- On May 6 the company resolved a first-quarter dividend (₩5,000 per share, about ₩102 billion in total), and on May 29 it presented 2026 sales-volume targets through a future-business-and-management-plan (fair disclosure).
- The second is governance.
- From March through May, a series of 'large-holding report' filings were submitted, showing that a control dispute between the Young Poong-MBK camp and current management (Chairman Choi Yun-beom) is underway.
- The company's treasury-stock buybacks are tied to this dispute and are part of the reason the debt ratio has risen.
- On June 1 it disclosed an amended business report and a corporate-governance report.
- The favorable conditions are clear.
- When precious metals such as gold and silver stay strong, the structure widens byproduct margins with no separate mine investment, so the earnings leverage is large.
- Indeed, the first quarter of 2026 delivered record quarterly results, and unlike the high P/E computed on last year's earnings, valuation on this year's expected earnings is much lower.
- The share price having roughly halved from its high also eases the valuation burden.
- The conditions to watch are just as clear.
- A large part of profit is tied to precious-metal and exchange-rate prices that are hard to control, so a correction in gold or silver can reverse margins quickly, and the control dispute with Young Poong-MBK increases the borrowing burden from treasury-stock buybacks and decision-making uncertainty.
- In short, this is a stock that is strong when precious-metal strength and a stable resolution of the dispute come together, and weak during a sharp drop in metal prices or a prolonged dispute.
🔎 Valuation vs peers Fairly valued
Large non-ferrous smelting and materials names are used for comparison, but as the world's largest smelter on a single-smelter basis, comparable domestic peers are limited; large steel and materials names with a genuinely different business (POSCO Holdings, POSCO Future M) are used only for positional reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| POSCO Holdings | 35.79x | 0.42x | 1.18% |
| POSCO Future M | 402.54x | 3.19x | 0.79% |
The surface P/E of 28x is neither notably lower nor higher than large steel and materials peers (POSCO Holdings around 37x). But this 28x is heavily limited by being based on last year's (2025) earnings. Net profit was temporarily depressed in 2024 before recovering in 2025, and in the first quarter of 2026 earnings jumped again on precious-metal strength to set a quarterly record, so at an earnings inflection point the trailing P/E does not reflect current earning power. On this year's expected earnings, the valuation burden falls markedly below the surface P/E. At the same time, the volatility from having a large part of profit tied to hard-to-control precious-metal and exchange-rate prices, together with financial and governance uncertainty from the control dispute, coexist as discount factors. With the strength (earnings leverage) and the risks (price volatility and the dispute) in balance, the current level is viewed as fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩1,003,000 and the market capitalization is ₩20.9 trillion. The price sits below its 20-day moving average (₩1,132,350) and below its 60-day moving average (₩1,371,267). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 31.9, a neutral level. The one-month change is -15.4%, the three-month change is -31.9%, and the position relative to the 52-week high is -52.6%. Relative strength versus the KOSPI is 34 (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 34% of all stocks. Over the past three months it lagged the index by 49.0%. 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 -49.04% / 6M -47.78% / 12M -47.79%
Key metrics vs sector median
Valuation
The P/E of 27.01x is above the sector median (16.39x). The P/B of 1.91x is above the sector median (0.50x). 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)
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.1%, above the sector average (2.0%). The operating margin is 7.4%. The debt ratio is 186.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $6.4B | $8.0B | $11.0B | +37.63% ↑ faster |
| Operating profit | $437.4M | $479.5M | $816.5M | +70.28% ↑ faster |
| Net profit | $349.5M | $126.5M | $513.7M | +305.92% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $6.6B | $7.4B | $6.4B | $8.0B | $11.0B |
| Operating profit | $726.5M | $609.2M | $437.4M | $479.5M | $816.5M |
| Net profit | $537.6M | $529.1M | $349.5M | $126.5M | $513.7M |
| 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 Q1 2026 · vs year-ago
Technical indicators
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
- 2026-05-29FilingPresentation of 2026 sales-volume targets in a future-business-and-management-plan (fair disclosure) (600,000 tons of zinc, 430,000 tons of lead, 1,790 tons of silver). No specific revenue or profit targets were disclosed.With volumes similar to last year, it signals that the key swing factor for this year's earnings is precious-metal prices, not volume. Over the medium term it reaffirms the direction of the new businesses (Troika Drive). Source
- 2026-05-15EarningsFirst-quarter 2026 report filed. Revenue of ₩6.07 trillion (+58% year on year) and operating profit of ₩746.1 billion (+175%) set quarterly records, with an operating margin of 12.3%.In the near term, it confirms that surging precious-metal prices lifted byproduct margins and stepped up earning power. Grounds for full-year earnings to run well above last year's. Source
- 2026-05-06DividendResolution of a first-quarter 2026 cash dividend of ₩5,000 per share (about ₩102 billion in total) and setting of the record date.Confirms continued shareholder returns through quarterly dividends. Supportive for near-term supply and demand, though the total dividend itself is not large relative to market cap. Source
- 2026-05-20UpdateA series of large-holding reports filed, signaling that the control dispute between the Young Poong-MBK camp and current management is ongoing.Over the medium term, a factor that increases the borrowing burden from treasury-stock buybacks and governance uncertainty. Capital policy and investment direction could change depending on the dispute's outcome. Source
- 2026-06-01FilingAmendment of the 2025 business report and disclosure of a corporate-governance report.A periodic check on disclosure consistency and governance transparency. Direct effect on earnings is limited. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit | ₩746,054,912,558 (approx. ₩746.1 billion) | approx. ₩746.1 billion | Confirmed | link |
| First-quarter 2026 revenue | ₩6,072,027,416,801 (approx. ₩6.07 trillion) | approx. 6₩72.0 billion | Confirmed | link |
| 2026 sales-volume targets | base | 60· 43· 1,790 | Confirmed | link |
| Estimated full-year 2026 net profit (forward) | approx. ₩1.4 trillion(self-estimate) | — | Unverified | link |
Recent filings
- 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.