KG Steel (016380) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
KG Steel is a surface-treated steelmaker that takes cold-rolled sheet — steel rolled thin from molten metal — coats it with zinc to make galvanized sheet, and then coats color on top to make color-coated sheet, selling to appliance, building-materials and automotive companies. In 2025 it posted revenue of ₩3.1934 trillion and net profit of ₩135.1 billion, but operating profit fell 27% from the prior year, and in Q1 2026 operating profit dropped 67% year on year, so core profitability is depressed in line with the steel cycle. What stands out recently is that the stock trades at 3.75x net profit (P/E), 0.25x net assets (P/B) and a 5.9% dividend yield, giving it a clear undervalued, high-dividend character, and the company has said it will return 50% of net profit to shareholders — a strength — but it is spending ₩400 billion to acquire control of used-car leader K Car, broadening beyond steel, so the acquisition's payoff and any recovery in the steel cycle bear watching together.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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 “Steel Pipe” (Chemicals, Refining, Steel & Materials · Steel & Metals), a type typically read first through P/E.
Steel-pipe makers produce and sell tubular products, with volume and margin flowing into results as energy and construction demand and steel input prices move. Because revenue converts fairly directly into current-year profit, price-to-earnings (P/E) is the natural first read.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
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 fell 3.3% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 0.9% lower than a year earlier.
- ROE is 6.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.4%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder KG Eco Solution 44.98% (corporate)
Controlling bloc incl. related parties 45.13%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis Reading
KG Steel is a surface-treated steel company that takes cold-rolled sheet — steel rolled thin from molten metal — as its base material and makes zinc-coated (galvanized) sheet and color-coated sheet. These products are used in appliance outer panels such as refrigerators and washing machines, building materials such as roofs and exterior walls, and automotive parts. In other words, it takes coil from steelmakers, adds value through plating and coating, and resells, so the gap between raw-material prices (hot-rolled coil and zinc) and selling prices — the spread — drives profit. In 2025 revenue was ₩3.1934 trillion, and the company holds a leading position in the domestic color-coated and galvanized sheet market.
The latest close is ₩5,660 and the market capitalization is ₩566.1 billion. The price sits above its 20-day moving average (₩5,234) and above its 60-day moving average (₩5,659). 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 62.1, a neutral level. The one-month change is +7.2%, the three-month change is -20.3%, and the position relative to the 52-week high is -24.4%. Relative strength versus the KOSPI is 27 (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 27% of all stocks. Over the past three months it lagged the index by 5.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation has a clearly undervalued character. The P/E ratio (how many times one year of profit the share price represents) is a low 3.75x. The P/B (how many times net assets the price represents) is 0.27x, so the stock trades at a quarter of its book net assets. ROE (how much the company earns in a year on its equity) is a decent 6.6%. The operating margin is 4.7%, thin as is typical of surface-treated steel. The debt-to-equity ratio is a somewhat high 151%. Even accounting for debt, though, it looks undervalued: EV/EBIT (enterprise value divided by operating profit — a debt-inclusive counterpart to the P/E) is 6.7x, and EV/Sales (enterprise value divided by revenue) is 0.32x. Net debt (total borrowings minus cash) is ₩484.3 billion. In particular, the FCF yield (the cash actually generated relative to market cap — the higher, the more attractive the cash generation) is a very high 22.8%, so the company generates cash well relative to the size of its profit.
The top line is in mild negative growth. Revenue fell 3.3% to ₩3.1934 trillion in 2025, a third straight annual decline. Operating profit came down from ₩280.4 billion in 2023 to ₩150.7 billion in 2025, reflecting the industry slowdown. Net profit held near the prior year's level at ₩135.1 billion in 2025 (₩133.4 billion in 2024). In Q1 2026 revenue was ₩805.3 billion and net profit ₩45.1 billion — net profit was almost the same as a year earlier, but operating profit plunged 67% to ₩21.5 billion. In other words, core profitability was depressed while net profit was defended by non-operating factors. It is reasonable to see this year's net profit in the ₩140 billion range, with K Car's consolidated results added from the second half onward. In that case the forward P/E is around 3.5x, still a low zone with little difference from last year's trailing basis. If the steel spread recovers, there is room for core profit itself to move back up.
The biggest event is the acquisition of control of K Car, the used-car sales leader. In March 2026 KG Steel agreed to buy a 52.5% stake in K Car (about 25.63 million shares) for ₩400 billion, and finalized the terms via a corrected disclosure in late June. The stated purpose of the acquisition is "diversifying the business portfolio and securing future growth drivers," an attempt to broaden beyond steel. In June it also disclosed a structure of contributing ₩100 billion to a private equity fund (PEF). Once the acquisition closes, K Car's results will be reflected in KG Steel's consolidation from the second half. Another important item is the medium-to-long-term shareholder-return policy disclosed on June 11: from fiscal 2026, over five years, the company will return 50% of adjusted net profit on a separate basis via dividends and share buybacks and cancellations. In fact the dividend per share rose from ₩200 in 2023 to ₩300 in 2025, and the payout ratio increased from 8.5% to 21.8%. In the past, the company also had a record of continued cash inflows by receiving proceeds from overseas asset (tangible-asset) sales in several installments.
The strengths are clear. This is an undervalued, high-dividend stock with a low P/E and P/B and a dividend yield of 5.9%. On top of that, a policy of returning 50% of net profit to shareholders creates a channel for the low valuation to be realized through dividends and buybacks. With a high FCF yield of 22.8%, cash generation also provides support. The cautions are equally clear. In the core steel business, revenue has fallen for three straight years and the operating margin is thin, so if the spread does not recover, profit could stay depressed. The ₩400 billion K Car acquisition is a move into used cars, a business unlike steel, so post-deal integration and the funding burden (debt-to-equity of 51%) bear watching together. In short, if the steel cycle bottoms, shareholder returns are executed, and K Car contributes to consolidated profit, there is ample room for the undervaluation to resolve. Conversely, if a weak steel spread persists or the acquisition's benefits are delayed, the low valuation could linger for a considerable time.
🔎 Valuation vs peers Undervalued
Compared mainly against surface-treated steel (cold-rolled, galvanized and color-coated sheet) and large steelmakers.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| POSCO Steeleon | 16.25x | 0.72x | 3.59% |
| Hyundai Steel | 0.00x | 0.19x | -0.04% |
| SeAH Besteel Holdings | 25.56x | 0.74x | 3.71% |
Even next to surface-treated steel peers such as POSCO Steeleon (P/B 0.73x) and SeAH Besteel Holdings (P/B 0.56x), KG Steel's P/B of 0.25x is a clearly lower position. With an ROE of 6.6%, its profitability is if anything better than theirs. Last year's trailing P/E of 3.75x looks low, and given that net profit is swayed by non-operating factors, it is still a low zone on a forward basis (around 3.5x). Discount factors, though, are a thin operating margin, three straight years of falling revenue, and the funding burden of the K Car acquisition. Taken together, the stock looks undervalued relative to its assets, dividend and cash generation, but a recovery in the core business and a payoff from the acquisition are the conditions for the undervaluation to resolve.
Price history Close · MA20 · MA60
The latest close is ₩5,660 and the market capitalization is ₩566.1 billion. The price sits above its 20-day moving average (₩5,234) and above its 60-day moving average (₩5,659). 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 62.1, a neutral level. The one-month change is +7.2%, the three-month change is -20.3%, and the position relative to the 52-week high is -24.4%. Relative strength versus the KOSPI is 27 (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 27% of all stocks. Over the past three months it lagged the index by 5.3%. 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 -5.30% / 6M -17.45% / 12M -52.35%
Key metrics Computed vs sector median
Valuation
The P/E of 4.19x is below the sector median (14.17x). The P/B of 0.27x is below the sector median (0.45x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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.
Profitability & financials
Return on equity (ROE) is 6.5%, above the sector average (1.0%). The operating margin is 3.4%. The debt ratio is 61.2%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.4B | $2.3B | $2.2B | -3.26% ↑ faster |
| Operating profit | $197.0M | $144.7M | $105.9M | -26.83% ↓ slower |
| Net profit | $164.6M | $93.7M | $94.9M | +1.31% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.4B | $2.7B | $2.4B | $2.3B | $2.2B |
| Operating profit | $208.6M | $239.1M | $197.0M | $144.7M | $105.9M |
| Net profit | $134.1M | $376.5M | $164.6M | $93.7M | $94.9M |
| Revenue CAGR | 4-yr avg -1.22% | ||||
Revenue fell 3.3% year over year (2023 ₩3.4 trillion → 2024 ₩3.3 trillion → 2025 ₩3.2 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 26.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -1.2%. The two-year revenue CAGR is -3.5%. In the most recent quarter (Q1 2026), revenue was 0.9% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 5.3%, is on the high side.
Points to watch
- Revenue fell 3.3% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-03-31FilingDecision to acquire a 52.5% stake in used-car sales leader K Car (about 25.63 million shares) for ₩400 billion (terms corrected on June 29). The purpose is to diversify the business portfolio and secure future growth drivers.The largest event broadening the business beyond steel. On completion, K Car's results will be reflected in consolidation from the second half, but the funding burden and integration payoff are the key variables. Source
- 2026-06-11FilingEstablished a medium-to-long-term shareholder-return policy — from the fiscal 2026 settlement, over five years, return 50% of adjusted net profit on a separate basis via dividends and share buybacks and cancellations.A channel to realize the low valuation through dividends and buybacks. The payout ratio is already on an uptrend, from 8.5% in 2023 to 21.8% in 2025. Source
- 2026-06-29FilingDecision to contribute about ₩100 billion (94.79% stake) to a private equity fund (PEF) as part of the funding structure for the K Car acquisition.Confirms that the acquisition funding is being deployed split between own funds and borrowing. A stage where the deal structure has taken concrete shape. Source
- 2026-06-29FilingCorrected disclosure changing the schedule for receiving the balance on previously sold overseas tangible assets (dollar-denominated). A case of receiving the deposit and balance in several installments.A factor in which continued dollar inflows have supported cash flow and defended net profit. Source
- 2026-07-10FilingReceipt of a large-holding report (change in holdings of 5% or more).A change in the ownership structure — a holdings trend intertwined with the acquisition and shareholder-return events. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-10OwnershipOfficers'/major-shareholders' holdings report
📖 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.