Seoul Guarantee Insurance (SGI) specializes in selling 82 kinds of 'guarantee insurance' — jeonse deposit-return guarantees, performance guarantees, credit insurance, and more — paying out on behalf of a party that promised to fulfill a contract or repay a debt but fails to do so, and collecting premiums in return; with a domestic guarantee balance of more than ₩478 trillion, it holds an effectively monopolistic position. In a March 2026 value-up filing the company set targets of an ROE of 10% and a K-ICS ratio of 320% or above and stated its intent to maintain a 74.5% payout ratio (2025), and Q1 improvement in the loss ratio and a surge in profit were confirmed in the figures. What stands out recently is a combination of strengths — a structurally monopolistic position, a P/B of 0.55x, a dividend yield in the 7% range, and an inflection where profit rises again as the loss ratio normalizes — against the cautions that earnings hinge on the jeonse-guarantee loss ratio and investment results, so accidents can rise if the property and jeonse markets worsen, and an overhang tied to the largest shareholder's stake could weigh on supply and demand.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue fell 3.5% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 39.3% higher than a year earlier.
- ROE is 5.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 84.3%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Korea Deposit Insurance Corporation 83.85% (corporate)
Controlling bloc incl. related parties 83.85%
With the controlling bloc holding 84%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Seoul Guarantee Insurance (SGI) specializes in 'guarantee insurance.' Guarantee insurance is insurance that pays out on behalf of a party that promised to fulfill a contract or repay a debt when that party fails to keep its promise, and the company collects premiums in return.
- Its flagship products span 82 kinds, including jeonse deposit-return guarantees (paying the tenant when a landlord cannot return the deposit), performance guarantees (against non-performance of construction or supply contracts), credit insurance, and licensing and fidelity guarantees.
- With a domestic guarantee balance of more than ₩478 trillion, it holds an effectively monopolistic position in this field and ranks among the world's top guarantee-and-credit insurers by premiums.
- In short, the premiums that individuals and companies pay (insurance-underwriting profit) and the investment income earned by managing that money are the two axes of revenue and profit.
- The latest close is ₩42,350 and the market cap is ₩3.0 trillion.
- The price sits below its 20-day line (₩42,832) and its 60-day line (₩45,147).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an auxiliary gauge that measures the strength of gains against losses over the past 14 days on a 0–100 scale) is 46.1, a neutral level.
- The price is down 3.8% over one month and down 11.1% over three months, and stands 31.7% below its 52-week high.
- Its relative strength versus KOSPI is 23 (on a 1–99 scale, converted from return relative to the index over the past year with heavier weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 78% of all stocks by strength.
- Over the past three months it lagged the index by 29.2%.
- Chart reading is best done alongside trading volume and the dates when filings occur.
- The P/E ratio (how many times one year's earnings the share price represents) is 10.67 and the P/B (how many times the company's net assets) is 0.55, trading at about half of net assets.
- ROE (how much it earns in a year on shareholders' equity) is 5.2%, still low, an aftereffect of profit being held down as jeonse-guarantee accidents clustered in 2023–2024.
- For insurance and financial businesses, reserves owed to policyholders are booked as large liabilities, so the debt ratio (debt against equity) and interest coverage cannot be viewed by the standards of ordinary manufacturers.
- The dividend is ₩2,865 per share, about 7.0% against the price — high even among domestic listed companies — and the payout ratio (dividends as a share of net profit) is 74.5%.
- The prior year's P/E looking somewhat elevated is because that year's profit was held down by accidents, and in a phase where profit is returning to a normal track, viewing it on a forward earnings basis is closer to the substance.
- Revenue (direct premiums and the like) came in at ₩372.0 billion in 2023, ₩461.6 billion in 2024, and ₩445.5 billion in 2025, a slight recent decline (−3.5%), but the profit trend is clearly improving.
- Net profit dropped sharply from ₩417.7 billion in 2023 to ₩213.1 billion in 2024 as jeonse-guarantee accidents clustered, then recovered 25.9% to ₩268.4 billion in 2025.
- In Q1 2026, revenue of ₩146.4 billion (+39.3%), operating profit of ₩93.5 billion (+242.8%), and net profit of ₩57.5 billion (+196.8%) jumped sharply year over year, and the key lies in the loss ratio (claims paid against premiums received) falling substantially as jeonse-guarantee accidents passed their peak.
- When the loss ratio comes down, the same premiums produce step-wise increases in profit.
- Extending this trend to a full year, this year's net profit is expected to clearly exceed last year's (₩268.4 billion).
- In a separate corporate value-up plan the company set an ROE of 10% as a mid-term target, itself indicating room for continued earnings normalization from the current 5% range.
- The March 2026 corporate value-up (value-up) filing is this stock's key event.
- The company set targets of an ROE of 10% and a K-ICS (an insurer's capital-adequacy gauge) ratio of 320% or above, and stated enhanced shareholder returns spanning dividends and buybacks along with its intent to maintain a 74.5% payout ratio (2025).
- In March came the regular shareholder meeting, business report, and audit report; in April, large-holding and share-ownership-change filings tied to the largest shareholder (of the Korea Deposit Insurance Corporation group) followed.
- The largest shareholder's ownership structure remains a potential overhang (latent supply waiting) factor, a supply-side variable to watch alongside.
- The May Q1 report confirmed the loss-ratio improvement and the profit surge in the figures.
- Observations: a structurally monopolistic position that effectively dominates domestic guarantee insurance, a valuation at about half of net assets (P/B 0.55), a dividend yield in the 7% range, and an inflection where profit rises again as the loss ratio normalizes all coincide.
- The company setting an ROE of 10% as a target in an official document supports the direction of the earnings recovery.
- Cautions: much of the profit hinges on the jeonse-guarantee loss ratio and investment results, so there is quarter-to-quarter volatility, and accidents can rise if the property and jeonse markets worsen again.
- An overhang tied to the largest shareholder's stake could also weigh on supply and demand.
- In sum, in a phase where the loss ratio stabilizes and the dividend policy holds, the appeal of a low valuation and a high dividend comes to the fore; if jeonse and property risks grow again, earnings volatility widens.
🔎 Valuation vs peers Undervalued
Domestic listed non-life and guarantee insurers. As a guarantee-insurance-specialized monopoly operator, SGI has a different business structure from non-life insurers, so it is treated as a reference position rather than a direct multiple comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung Fire & Marine Insurance | 13.76x | 1.31x | 9.49% |
| DB Insurance | 5.55x | 0.91x | 16.43% |
| Hyundai Marine & Fire Insurance | 3.01x | 0.60x | 19.77% |
A P/B of 0.55 is low even against non-life insurers (Samsung Fire & Marine at 1.31, DB Insurance at 0.82) and stands at about half of net assets. The current ROE (5.2%) is low, holding the P/B down, but this is the result of profit being temporarily impaired by jeonse-guarantee accidents in 2023–2024, and with the sharp loss-ratio improvement in Q1 2026, profit is rising again. The trailing P/E of 10.67 is on held-down earnings and therefore overstates the true valuation; on a forward basis as profit normalizes, the multiple falls further. Add a dividend yield in the 7% range supporting the downside, and as long as the loss ratio stays stable, it reads as undervalued.
Price history Close · MA20 · MA60
The latest close is ₩42,350 and the market capitalization is ₩3.0 trillion. The price sits below its 20-day moving average (₩42,832) and below its 60-day moving average (₩45,147). 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 46.1, a neutral level. The one-month change is -3.8%, the three-month change is -11.1%, and the position relative to the 52-week high is -31.7%. Relative strength versus the KOSPI is 23 (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 22% of all stocks. Over the past three months it lagged the index by 29.2%. 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 -29.24% / 6M -46.36% / 12M -57.11%
Key metrics vs whole-market median
Valuation
The P/E of 11.02x is below the whole-market median (13.81x). The P/B of 0.57x is below the whole-market median (1.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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.
Profitability & financials
Return on equity (ROE) is 5.2%, in line with the whole-market average (5.0%). The operating margin is 84.3%. The debt ratio is 81.2%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $246.6M | $305.9M | $295.2M | -3.49% ↓ slower |
| Operating profit | $347.4M | $185.4M | $249.0M | +34.34% ↑ faster |
| Net profit | $276.8M | $141.2M | $177.9M | +25.94% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $246.6M | $305.9M | $295.2M |
| Operating profit | — | — | $347.4M | $185.4M | $249.0M |
| Net profit | — | — | $276.8M | $141.2M | $177.9M |
| Revenue CAGR | 2-yr avg 9.43% | ||||
Revenue fell 3.5% year over year (2023 ₩372.0 billion → 2024 ₩461.6 billion → 2025 ₩445.5 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 34.3% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 9.4%. The two-year revenue CAGR is 9.4%. In the most recent quarter (Q1 2026), revenue was 39.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
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 6.8%, is on the high side.
Points to watch
- Revenue fell 3.5% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-31IRCorporate value-up (value-up) filing. Targets of an ROE of 10% and a K-ICS ratio of 320% or above, enhanced shareholder returns, and a stated 74.5% payout ratio (2025).The company formalizes the direction of mid-term earnings normalization and its intent to sustain a high dividend — grounds for the dividend appeal and a valuation reassessment. Source
- 2026-05-15EarningsQ1 2026 report. Revenue ₩146.4 billion (+39.3%), operating profit ₩93.5 billion (+242.8%), net profit ₩57.5 billion (+196.8%) — profit surging as the loss ratio normalizes.Short term: the earnings inflection is confirmed. Mid term: supports a full-year earnings recovery path if the loss ratio stabilizes. Source
- 2026-04-01FilingLargest shareholder's share-ownership-change and large-holding reports filed (tied to the Korea Deposit Insurance Corporation group's stake).Mid term: the direction of the largest shareholder's stake acts as a supply-and-demand variable, such as an overhang. Source
- 2026-03-23EarningsFY2025 business report. Annual net profit ₩268.4 billion (+25.9%), revenue ₩445.5 billion (−3.5%) — an earnings recovery from the 2024 trough.Mid term: confirms the starting point of the earnings recovery after accidents peaked. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-05-08Corporate governance report (amended)
- 2026-04-01OwnershipLargest-shareholder ownership change report
- 2026-04-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-31Dividend disclosure
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
- 2026-03-13Audit report
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
📖 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.