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KG Financial (046440) 🔎 In-depth

KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09

Compiled and reviewed by Bing Bing · Figures are computed automatically from public filings and market data; the written analysis is drafted automatically and then rule-verified · Methodology · AI Disclosure · Report an error

KG Financial is classified under games/software by sector, but in practice its core is the electronic payment gateway (PG) business run through its subsidiary Mobilians, which intermediates online and mobile payments for a fee, with revenue rising as transaction volume grows. A February 2026 disclosure confirmed annual revenue of ₩233.8 billion, operating profit of ₩33.1 billion and net profit of ₩23.2 billion, and it posted Q1 revenue of ₩62.5 billion and operating profit of ₩7.0 billion, earning steady cash from its core electronic-payment business at an operating margin in the 14% range. What stands out now is that if the recovered margin and payment transaction volume hold, the undervaluation-and-high-yield appeal of a P/E of 6.33x, P/B of 0.41x and a 6.5% dividend yield comes alive; on the other side, with revenue declining for a third year and Q1 earnings softer than the prior year, if the top-line decline begins to eat into the margin, the earnings outlook could waver.

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

Earnings trend
revenue and profit declined.
Financials
debt levels look manageable.
Data as of
prices as of 2026-08-06, financials as of 2026 1분기.

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

P/E (trailing)6.84x

This stock's effective sub-sector is “Financial IT & Payments” (Internet, Platforms & Software · Software), a type typically read first through P/E.

Financial IT and payments build fairly steady revenue and profit off transaction volumes and fee-based models. With results this stable, profits can be set directly against the price, so trailing P/E — based on realized earnings — is the first metric.

P/B (price-to-book)0.45x

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

Financial healthStable
  • Debt ratio, current ratio and interest burden all look healthy.
GrowthDeclining
  • Revenue fell 12.2% year over year (3-year trend: falling).
  • Most recent quarter (Q1 2026) revenue was 2.1% higher than a year earlier.
ProfitabilityModerate
  • ROE is 6.1% (controlling-interest basis). It is above the sector average.
  • Operating margin is 13.8%.
ValuationUndervalued
  • The P/E sits below the sector median.

Ownership & governance As of 2025-12-31

Largest shareholder KG Inicis 51.45% (corporate)

Controlling bloc incl. related parties 51.63%

With the controlling bloc holding 52%, control is very secure but the free float is thin.

🔎 In-depth analysis Reading

🏢Business

KG Financial is classified under games/software by sector, but in practice its core is the electronic payment gateway (PG, Payment Gateway) business run through its subsidiary Mobilians. The structure is one of intermediating payments so that money changes hands safely when goods are bought and sold on the internet and mobile, and earning a fee for it. The business has a characteristic where, as online and mobile commerce become part of everyday life, the number of payments and the transaction value grow and feed into revenue. Because this is a stock with a modest market cap, it is worth watching, alongside the core payment flow, how a single disclosure affects financials or share count.

📈Price & chart

The latest close is ₩4,185 and the market capitalization is ₩159.1 billion. The price sits above its 20-day moving average (₩3,964) and above its 60-day moving average (₩4,109). 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 59.5, a neutral level. The one-month change is +4.2%, the three-month change is -17.6%, and the position relative to the 52-week high is -25.9%. Relative strength versus the KOSDAQ is 60 (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 60% of all stocks. Over the past three months it outpaced the index by 24.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

📊Key metrics

Recent annual revenue is ₩233.8 billion, operating profit ₩33.1 billion and net profit ₩23.2 billion. The operating margin of 14.2% is solid for payment intermediation, and ROE (how much the company earns on its equity in a year) is 6.5%, above the sector average. The debt ratio (debt against equity) is 156.5%, but with a current ratio (assets convertible to cash against debt due within a year) of 215%, ample, and interest coverage of 7.1x, the diagnostic financial soundness is 'stable'. On valuation, the P/E ratio (how many times one year's earnings the price represents) is 6.84x and P/B (how many times book value the price represents) is 0.45x. P/B well below 1x means the market cap is set below even the company's net assets, and with a low forecast P/E too, the stock is cheap relative to earnings and assets. Rather than being at a burdensome level, the trailing metrics point toward undervaluation.

🚀Growth

Revenue is on a shrinking trend, at ₩279.6 billion in 2023, ₩266.1 billion in 2024 and ₩233.8 billion in 2025. Profitability, by contrast, has clearly turned. Operating profit, which was pressed down sharply to ₩7.4 billion in 2024, jumped 345.9% to ₩33.1 billion in 2025, effectively recovering to a normal level, and net profit rose 139.1% from ₩9.7 billion to ₩23.2 billion. In other words, this is a phase where the inflection in earnings matters more than revenue. On this year's forecast basis, revenue is ₩231.1 billion, operating profit ₩34.9 billion and net profit ₩22.7 billion, a picture in which the recovered margin is maintained. That said, on a Q1 2026 cumulative basis, revenue rose a modest 2.1% while operating profit fell 9.0% and net profit fell 33.2%, a softer start versus the same period last year, so the margin recovery in the remaining quarters is the key to whether annual earnings reach the forecast level.

📰Recent news & filings

Recent disclosures center on signals the company put out itself. The 2026-03-25 corporate-value-up plan (voluntary disclosure) is a planning document in which the company set out its own direction for enhancing shareholder value; if it contains specific numbers it can serve as a primary basis for the forecast, and if it is only directional it can be read as a statement of intent. The 2026-05-06 preliminary-results disclosure confirmed Q1 2026 revenue of ₩62.5 billion, operating profit of ₩7.0 billion and net profit of ₩4.0 billion, and the 2026-02-09 profit-structure-change disclosure confirmed annual revenue of ₩233.8 billion, operating profit of ₩33.1 billion and net profit of ₩23.2 billion. It is worth checking together whether the annual trend points the same way and whether one-off factors are mixed into the quarter.

🧭Bottom line

The strengths are clear. The core electronic-payment business earns steady cash at an operating margin in the 14% range, earnings recovered sharply last year, and at a P/E of 6.33x, P/B of 0.41x and a forecast P/E on the low side within its peer set, it reads as undervalued. With a share price below net assets plus a 6.5% dividend yield, it holds appeal in a pulled-back range for investors looking at value and dividend together. On the other hand, the point to be careful of is the top line. Revenue has fallen for a third year and Q1 2026 earnings softened versus the prior year, so the margin needs to be defended in the remaining quarters for annual earnings to reach the forecast. In short, if the recovered margin and payment transaction volume hold, this is a stock whose undervaluation-and-high-yield appeal comes alive; if the top-line decline begins to eat into the margin, the earnings outlook could waver.

🔎 Valuation vs peers Undervalued

The peer set is drawn from games/software names with a nearby market cap.

PeerP/EP/BROE
Polaris Office32.26x1.73x11.13%
GC MediEye4.23x1.10x24.71%
Neurophet5.50x-115.10%

Within games and software, we looked first at a public-data peer set with a nearby market cap. The current P/E ratio (how many times one year's earnings the price represents) is 6.84x and P/B (how many times book value the price represents) is 0.45x. That said, for smaller-cap names, earnings swings and funding disclosures have a large effect, so we did not draw a firm conclusion from last year's confirmed-results-based metrics alone. The basis for the forecast box is a DART seasonality approximation.

Earnings outlook Estimate company-stated · verified

TypePeriodRevenueOperating profitNet profit
This year2026₩231.1 billion₩34.9 billion₩22.7 billion
Next quarterQ2 2026₩58.8 billion₩8.1 billion₩4.2 billion
₩4,185 -0.36%
Market cap $111.8M

Price history Close · MA20 · MA60

Close MA20MA60

The latest close is ₩4,185 and the market capitalization is ₩159.1 billion. The price sits above its 20-day moving average (₩3,964) and above its 60-day moving average (₩4,109). 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 59.5, a neutral level. The one-month change is +4.2%, the three-month change is -17.6%, and the position relative to the 52-week high is -25.9%. Relative strength versus the KOSDAQ is 60 (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 60% of all stocks. Over the past three months it outpaced the index by 24.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

Relative performance stock vs index · start = 100

60Relative strength vs KOSDAQ1–99 · last 12 months’ return vs the index, recency-weighted · higher = stronger than the marketTop 40% strength

Excess return vs index · 3M +24.95% / 6M +8.19% / 12M -20.54%

StockKOSDAQ

Key metrics Computed vs sector median

Valuation

P/E (trailing)6.84x
P/B0.45x
P/S0.71x
EPS₩612
BPS (book value/share)₩9,222
Dividend yield5.97%
DPS₩250

The P/E of 6.84x is below the sector median (11.94x). The P/B of 0.45x is below the sector median (1.10x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.

Enterprise value (EV)

Net debt$30.0M
EV (enterprise value)$141.7M
EV/EBIT6.22x
EV/EBITDA5.46x
EV/Sales0.86x
FCF (free cash flow)$8.0M
FCF yield7.17%

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.

Bear case₩1,590
Base case₩2,690
Bull case₩4,770

DCF (discounted cash flow) estimate — discount rate 10.7%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.

Confidence: Low (bull–bear span 118% of the base case) · Most sensitive assumption: discount rate — a 1%p change moves the base case by roughly 10–20% · Financial basis: FY2025 statements

Profitability & financials

ROE6.06%
Operating margin13.80%
Net margin9.04%
Debt ratio67.07%
Payout ratio39.85%

Return on equity (ROE) is 6.1%, above the sector average (1.0%). The operating margin is 13.8%. The debt ratio is 67.1%, so the financial structure is stable.

Growth FY2025 · annual report (consolidated)

Item202320242025YoY
Revenue$196.4M$186.9M$164.2M-12.15% ↓ slower
Operating profit$23.2M$5.2M$23.3M+345.91% ↑ faster
Net profit$30.6M$6.8M$16.3M+139.06% ↑ faster
5-year20212022202320242025
Revenue$215.3M$194.0M$196.4M$186.9M$164.2M
Operating profit$33.4M$28.3M$23.2M$5.2M$23.3M
Net profit$20.5M$19.7M$30.6M$6.8M$16.3M
Revenue CAGR4-yr avg -6.54%

Revenue fell 12.2% year over year (2023 ₩279.6 billion → 2024 ₩266.1 billion → 2025 ₩233.8 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit rose 345.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -6.5%. The two-year revenue CAGR is -8.6%. In the most recent quarter (Q1 2026), revenue was 2.1% higher than the same period a year earlier.

Latest quarterly results Source Q1 2026 · vs year-ago

Revenue$43.9M
Revenue YoY+2.13%
Operating profit$4.9M
Op. profit YoY-9.01%
Net profit$2.8M
Net profit YoY-33.24%

Technical indicators Computed

RSI (14)59.5
MA20₩3,964
MA60₩4,109
1-month+4.23%
3-month-17.62%
vs 52-wk high-25.93%

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 6.0%, is on the high side.
  • The balance sheet is stable in terms of debt and liquidity.

Points to watch

  • Revenue fell 12.2% year over year (3-year trend: falling).

Recent news & events searched · sourced

Figure cross-check computed ↔ external

MetricComputedExternalStatusSource
Closing price₩4,185₩4,185Confirmedlink
Latest quarterly resultsrevenue ₩62.5 billion, operating profit ₩7.0 billionrevenue ₩62.5 billion, operating profit ₩7.0 billionConfirmedlink
Annual resultsrevenue ₩233.8 billion, operating profit ₩33.1 billionrevenue ₩233.8 billion, operating profit ₩33.1 billionConfirmedlink
Forecast/plan disclosure textConfirmedlink
Results disclosure text2026 1 revenue ₩62.5 billion · operating profit ₩7.0 billion · net profit ₩4.0 billion2026 1 revenue ₩62.5 billion · operating profit ₩7.0 billion · net profit ₩4.0 billionConfirmedlink
Results disclosure textrevenue30%: revenue ₩233.8 billion · operating profit ₩33.1 billion · net profit ₩23.2 billionrevenue30%: revenue ₩233.8 billion · operating profit ₩33.1 billion · net profit ₩23.2 billionConfirmedlink
Forecast-box basisDARTDARTConfirmedlink

Recent filings Source

📖 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.