Korea Information & Communications (025770) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Korea Information & Communications, founded in 1986, is a value-added network (VAN) operator: when a customer swipes a card at a store, it relays the authorization request to the card company and returns the response, and the fees from this relay account for about 97% of revenue, so it earns money in proportion to the number of card swipes - a payment-infrastructure company. In March it declared a dividend of ₩290 per share (a dividend yield of 3.73%) and issued a corporate value-up plan; in May it confirmed a recovery with Q1 revenue of ₩216.2 billion (+12.3%) and operating profit of ₩11.0 billion (+8.6%); and in June it contributed 300,000 treasury shares to the employee stock ownership association at no cost. What stands out recently is that its recurring fee revenue tied to card-payment counts, a solid balance sheet with a debt ratio of 52.6% and interest coverage of 48x, and a valuation of 7.46x P/E, 0.81x P/B, and a forward P/E of 7.27x - well below the payment-gateway-oriented NHN KCP (P/E 11.45x) - are strengths; on the other hand, net profit can swing quarter to quarter with the investment gains and losses of its venture-investment arm, and the value-up disclosure stopping at direction without concrete numbers remains a matter to verify.
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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 “Other Financial Services” (Financials), a type typically read first through P/E.
These financial-service businesses tend to earn steady fees or operating income, so price-to-earnings (P/E) — the price against those profits — is an intuitive starting point. Earning power is the core of value here.
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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 5.7% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 12.3% higher than a year earlier.
- ROE is 11.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.4%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Park Hun-seo 21.54% (individual)
Controlling bloc incl. related parties 42.74%
With the controlling bloc holding 43%, the ownership structure is stable.
🔎 In-depth analysis Reading
Korea Information & Communications, founded in 1986, is a value-added network (VAN) operator. When a customer swipes a credit card at a terminal in a restaurant or store, the company runs the 'intermediary network' that sends the transaction authorization request to the card company and returns the response to the merchant. The fees earned on each of these authorization relays make up about 97% of revenue - nearly all of it - while card-terminal supply is about 2.5%, and the remainder comes from operating an SME startup-investment fund and a healthcare business. In other words, this company does not sell a particular product but earns money in proportion to 'the number of card swipes', a payment-infrastructure company whose revenue grows as card spending steadily rises.
The latest close is ₩8,080 and the market capitalization is ₩302.5 billion. The price sits above its 20-day moving average (₩7,830) and below its 60-day moving average (₩8,092). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 56.1, a neutral level. The one-month change is +4.8%, the three-month change is -30.8%, and the position relative to the 52-week high is -49.2%. Relative strength versus the KOSDAQ is 68 (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 68% of all stocks. Over the past three months it outpaced the index by 4.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The P/E ratio (how many times one year's profit the price represents) is 8.27x and the P/B (how many times the company's net assets the price represents) is 0.91x, so the price is on the cheap side relative to both profit and assets. The ROE (how much is earned in a year on equity) is 10.9%, sound profitability for the payment-infrastructure sector, and it maintains an operating margin of 5.4% and a net margin of 4.4%. The debt ratio (debt versus equity) is low at 52.6%, the current ratio is 239%, and the interest coverage ratio (how many times operating profit can cover interest) is 48x, so its capacity to service debt is ample and the balance sheet is stable. One point to note is that the P/E above is on a 'confirmed-last-year-profit (trailing)' basis. Net profit in 2025 fell 16% year over year, but this is not because the core business worsened; it reflects a base effect from an unusually high 2024 net profit (₩43.6 billion). Operating profit grew +15.6% in 2025 and +8.6% in Q1 2026, so core earnings power is if anything strengthening. The forward P/E of 7.27x and forward P/B of 0.75x on this year's expected profit are even lower than the trailing figures, so factoring in profit returning to a normal track makes the valuation appeal clearer still.
Over the past five years revenue grew from ₩54.0 billion to ₩83.6 billion, an average of about 11.5% a year, and operating profit rose steadily from ₩23.6 billion to ₩45.2 billion. The 2025 revenue growth rate slowed a beat to +5.7%, but Q1 2026 revenue came back to double digits at +12.3% year over year, a re-acceleration of growth. Operating profit continued to rise at +8.6% in Q1, and jumped +83% versus the immediately prior quarter (Q4 2025). Only net profit fell -16% in 2025, owing to the 2024 peak base seen earlier, and Q1 net profit held at the prior-year level (+0.9%). Behind the forward P/E of 7.27x on this year's expected profit coming out lower than the confirmed trailing P/E is the picture of card-payment counts, the revenue driver, growing solidly, operating profit continuing double-digit growth, and net profit - temporarily suppressed - being restored to normal. Given the business trait that authorization counts grow in proportion to card spending, as long as payment traffic holds up, the foundation for profit growth is solid.
In 2026, disclosures related to shareholder returns came one after another. In March, it declared a 2025 year-end cash dividend (₩290 per share, dividend yield 3.73%, total dividend about ₩10.2 billion), continuing a steady cash-return stance, and in the same month issued a voluntary corporate value-up (value-up) plan, signaling a performance-disclosure framework centered on management-efficiency metrics. That value-up disclosure, however, did not contain future revenue or profit targets or a concrete shareholder-return ratio, so it reads as a step that laid out direction. In May, the Q1 report confirmed a recovery with revenue of ₩216.2 billion (+12.3%) and operating profit of ₩11.0 billion (+8.6%), and in June it decided to contribute 300,000 treasury shares to the employee stock ownership association at no cost, using treasury stock in a way that raises employee-held stakes.
This company's strengths are clear. With recurring, predictable fee revenue tied to card-payment counts, the core business is steady, and with a solid balance sheet (debt ratio 52.6%, current ratio 239%, interest coverage 48x), an ROE of 10.9%, and a dividend yield of 3.7%, its undervalued, high-dividend character is pronounced. On top of a P/E of 7.46x and P/B of 0.81x, the forward P/E of 7.27x on this year's expected profit is well below the payment-gateway-oriented NHN KCP (P/E 11.45x), which carries a high valuation - so whether viewed by assets, profit, or dividend, it reads as undervalued. At the same time, the Q1 revenue recovery of +12.3% and rising operating profit show the growth engine has not cooled. There are points to examine as well. The price is in a weak trend below all its moving averages, net profit can swing quarter to quarter with the investment gains and losses of the venture-investment arm, and the value-up disclosure stopping at direction without concrete numbers is a next-step matter to verify. In short, its undervaluation appeal shines 'when card spending and payment traffic grow solidly and the shareholder-return promise is made concrete in numbers', while earnings volatility comes to the fore 'when variables such as investment gains/losses or fee-rate regulation overlap'.
🔎 Valuation vs peers Undervalued
A direct peer set of card-payment-infrastructure (VAN/PG) businesses. Nice Information & Telecommunication runs the same VAN business, while NHN KCP is centered on online payment gateway (PG).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| NICE Information & Telecommunication | 6.57x | 0.64x | 12.28% |
| NHN KCP | 11.61x | 1.75x | 17.11% |
It sits at almost the same valuation and profitability level as fellow VAN operator Nice Information & Telecommunication (P/E 6.6x, P/B 0.71x, ROE 10.8%), an average position within the same business group. Compared with NHN KCP (P/E 13x, P/B 2.0x, ROE 15.4%), which is centered on payment gateway (PG) with higher growth, its P/E and P/B are discounted to about half, a gap that appears to reflect the growth ceiling on VAN fees and the volatility of venture-investment gains and losses. The confirmed trailing P/E of 7.8x uses 2025 net profit as the denominator, which is suppressed versus the 2024 peak, so there is a limit to it as an inflection-phase figure; the forward P/E, factoring in rising operating profit and the Q1 revenue recovery, is lower and thus slightly cheaper than the trailing basis. On balance, it is in the average-to-discounted zone versus peers - clearly undervalued relative to assets and dividend, though a growth premium is hard to expect.
Price history Close · MA20 · MA60
The latest close is ₩8,080 and the market capitalization is ₩302.5 billion. The price sits above its 20-day moving average (₩7,830) and below its 60-day moving average (₩8,092). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 56.1, a neutral level. The one-month change is +4.8%, the three-month change is -30.8%, and the position relative to the 52-week high is -49.2%. Relative strength versus the KOSDAQ is 68 (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 68% of all stocks. Over the past three months it outpaced the index by 4.9%. 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 +4.92% / 6M +41.93% / 12M -11.38%
Key metrics Computed vs sector median
Valuation
The P/E of 8.27x is below the sector median (11.13x). The P/B of 0.91x is in line with the sector median (0.94x).
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 11.1%, above the sector average (7.0%). The operating margin is 5.4%. The debt ratio is 72.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $509.4M | $555.7M | $587.5M | +5.73% ↓ slower |
| Operating profit | $25.1M | $27.5M | $31.8M | +15.60% ↑ faster |
| Net profit | $21.1M | $30.6M | $25.7M | -15.99% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $379.5M | $418.3M | $509.4M | $555.7M | $587.5M |
| Operating profit | $16.6M | $18.9M | $25.1M | $27.5M | $31.8M |
| Net profit | $7.6M | $15.3M | $21.1M | $30.6M | $25.7M |
| Revenue CAGR | 4-yr avg 11.54% | ||||
Revenue rose 5.7% year over year (2023 ₩725.1 billion → 2024 ₩791.0 billion → 2025 ₩836.3 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 15.6% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.5%. The two-year revenue CAGR is 7.4%. In the most recent quarter (Q1 2026), revenue was 12.3% higher 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 3.6%, is on the high side.
- ROE of 11.1% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 5.7% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-06-02UpdateDecision to contribute 300,000 treasury shares to the employee stock ownership association at no cost (2026-06-09 to 06-15, transfer-in price ₩7,910).Short term: a shareholder-return nature via expanded employee stakes, though with no new cash inflow. Medium term: a stable governance aspect through employee incentives. Source
- 2026-03-20FilingVoluntary corporate value-up (value-up) disclosure - signaling a performance-disclosure framework centered on management-efficiency metrics. Concrete revenue/profit targets or a shareholder-return ratio are not included.Medium term: an expression of intent to improve shareholder returns and governance, but with numbers missing, the strength of execution needs later confirmation. Source
- 2026-03-03Dividend2025 year-end cash dividend decision - ₩290 per common share, dividend yield 3.73%, total dividend about ₩10.2 billion, record date 2025-12-31.Short and medium term: a steady cash return at a dividend yield of about 3.7%, maintaining a high-dividend character. Source
- 2026-05-13EarningsQ1 2026 report - cumulative revenue ₩216.2 billion (+12.3% YoY), operating profit ₩11.0 billion (+8.6%), net profit ₩8.6 billion (+0.9%).Short term: the revenue growth rate recovers to double digits again and the rise in operating profit is maintained. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Dividend per share / dividend yield | DPS ₩290,x 3.82% | ₩290, 3.73% | Confirmed | link |
| Q1 2026 revenue growth rate | revenue 2,161.6, +12.35% | (2026.03) | Confirmed | link |
| Treasury-share disposal (no-cost contribution to the employee stock ownership association) size | base 2026-06-02 | 300,000, , ₩7,910 | Confirmed | link |
| Forward P/E based on estimated 2026 net profit | self-estimate forward PER 7.4 | — | Unverified | link |
Recent filings Source
- 2026-06-02TreasuryMaterial-fact report
- 2026-05-13PeriodicQuarterly report
- 2026-03-20Disclosure
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-19OwnershipOwnership-change filing
- 2026-03-19OwnershipLargest-shareholder ownership change report (amended)
- 2026-03-12PeriodicAnnual business report
- 2026-03-10Audit report
- 2026-03-04Shareholders' meeting notice
- 2026-03-03Shareholders' meeting notice
- 2026-03-03DividendCash/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.
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