Korea Information Certificate Authority is a digital-trust and security company that began in 1999 as the country's first accredited certification authority; its core business is services that verify identity and vouch for document authenticity, such as electronic-signature certificates and the issuance of electronic contracts and certificates, and because renewal and usage fees recur every year its cash flow is steady, while it is expanding scale through digital advertising attached to electronic-document channels and the 2024 merger with Digital Zone. In March the company carried out a capital reduction to retire treasury shares, and in April it followed with a ₩5.68 billion treasury-share acquisition trust contract and a value-up plan, and the 2025 total dividend of about ₩8.0 billion was up 31% year on year, so it is running retirement, trust, and a high dividend at the same time. What stands out lately is that the stable cash flow from a recurring-revenue base, an operating margin of about 20% with ROE of 12.8%, and active shareholder returns make the undervaluation appeal clear; on the other hand, a one-off gain on the disposal of an associate is mixed into last year's net profit, so the surface P/E can look cheaper than reality, and the appeal can fade in a year when the advertising segment underperforms or core-business profit growth stalls.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 207.0%).
- Revenue rose 13.6% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 5.7% higher than a year earlier.
- ROE is 12.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 19.5%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Daou Tech 43.88% (corporate)
Controlling bloc incl. related parties 51.95%
With the controlling bloc holding 52%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Korea Information Certificate Authority is a digital-trust and security company that began in 1999 as the country's first accredited certification authority.
- Its core business is services that vouch that 'identity is verified and a document is genuine'—electronic-signature certificates (joint certificates and corporate certificates), electronic contracts and documents, and the issuance of various certificates.
- Once established, this structure brings in renewal and usage fees every year, so cash flow is fairly steady.
- Added to this is a digital advertising business attached to electronic-document delivery channels, which expands the revenue base, and the 2024 merger with the electronic-document company Digital Zone reinforced the electronic-document area.
- The company has officially stated a direction of advancing its core certification, electronic-contract, and certificate business while investing in technologies such as AI and post-quantum cryptography (PQC, next-generation encryption designed to be hard to break even for quantum computers) and broadening its business through M&A.
- The latest close is ₩4,050 and the market capitalization is ₩164.4 billion.
- The price sits below the 20-day line (₩4,633) and below the 60-day line (₩5,546).
- Trading below both the short- and mid-term moving averages, the trend looks subdued.
- The RSI (a supplementary indicator that measures upward versus downward force over the past 14 days on a 0-100 scale) is 30.1, a neutral level.
- The one-month change is -23.0%, the three-month change is -26.0%, and the position versus the 52-week high is -53.9%.
- Relative strength against the KOSDAQ is 47 (1-99, computed from return versus the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 53% of all stocks by strength.
- Over the past three months it lagged the index by 4.2%.
- Chart reading is best done alongside trading volume and filing dates.
- ROE (how much is earned in a year on equity) is 12.8%, so capital efficiency is sound, and the operating margin of 19.5% and net margin of 18.9% show that profitability itself is solid.
- The dividend yield is in the 4% range (₩200 per share), on the high side, and the payout ratio is 30.5%, returning about a third of profit to shareholders.
- The surface P/E ratio (how many times a year's profit the share price is) appears to be 6.28x and the P/B (how many times book equity the share price is) 0.81x.
- However, of the ₩26.2 billion in net profit last year (2025), about ₩11.1 billion was a one-off gain booked in the first quarter from disposing of an associate stake, so excluding that one-off, core-business net profit is around ₩15.1 billion.
- As a result, the surface P/E computed on confirmed results can look even cheaper than it really is.
- In other words, there is no reason to read the low surface P/E and P/B as a burden; even on a core-business basis with the one-off removed, the share price is cheap relative to profit.
- The debt ratio (debt relative to equity) is 207%, which looks high on the surface, but most of it is operating debt and advance-received payments from the advertising and certification businesses, and with a current ratio of 154% and interest coverage of 2.36x, short-term payment capacity is maintained.
- In terms of scale, revenue grew steadily at about a 23% two-year average (₩92.2 billion in 2023 to ₩121.9 billion in 2024 to ₩138.5 billion in 2025).
- Core-business profitability improved even faster: operating profit rose 43.5% year on year to ₩27.1 billion in 2025, and even that pace of increase was faster than the prior year (+35%).
- In the first quarter of 2026, operating profit rose 45.4% year on year to ₩9.1 billion, so the core-business growth continued unchanged.
- First-quarter net profit was ₩7.2 billion, down 42.8% year on year, but this is not a deterioration in results—it is an illusion created by the ₩11.1 billion one-off gain on disposal booked in the first quarter of last year, which is absent this year.
- Excluding that one-off, core-business profit keeps trending upward.
- The grounds for this year's expected profit are clear: certification and electronic documents are recurring revenue that renews every year, so the base is stable; the merger added to the electronic-document area; and the core business with an operating margin of about 20% is translating revenue growth into profit well.
- Applying the surface net-profit growth rate (+134%) directly to the future would be excessive, whereas this year's forward estimate on a core-business basis with the one-off removed is a level that is well grounded.
- Recent filings are concentrated on shareholder returns.
- In March the company decided on a capital reduction to retire treasury shares (4.36% of issued shares, about 1.85 million shares), completing the retirement in late April and the change listing in May, and in April it newly signed a ₩5.68 billion treasury-share acquisition trust contract, which likewise specified 'acquire then retire.' In the same April it filed a value-up plan, setting out goals of advancing the core certification, electronic-contract, and certificate business, diversifying the portfolio through M&A, investing in AI and post-quantum cryptography, and enhancing shareholder value through treasury-share retirement.
- The company qualifies as a high-dividend company under tax law, and the 2025 total dividend of about ₩8.0 billion was up 31% from the prior year (about ₩6.1 billion).
- In sum, it is running three strands of shareholder return—retirement, trust, and a high dividend—at the same time.
- The strengths are clear: (1) stable cash flow from a recurring-revenue base in certification and electronic documents, (2) solid profitability with an operating margin of about 20% and ROE of 12.8%, (3) active shareholder returns running from retirement via capital reduction to the treasury-share trust and a dividend in the 4% range, and (4) core-business operating profit rising steadily in double digits with that trend continuing in the first quarter.
- Points to examine are that a one-off gain on a stake disposal is mixed into last year's net profit, so the surface P/E can look even cheaper than reality; that the advertising segment, which makes up part of the top-line growth, carries volatility; and that with the price below every moving average, the short-term trend is still weak.
- In sum, it is a stock where 'the undervaluation appeal is clear as long as core-business profit and shareholder returns hold up,' and it is appropriate to view it as a structure where that appeal fades in a year when the advertising segment underperforms or core-business profit growth stalls.
🔎 Valuation vs peers Fairly valued
Rather than a game/software classification, we compared against peer trust-service companies matched to the actual business (digital certification, electronic documents, electronic-payment security)—Korea Electronic Certification (041460), a fellow certification authority, is the most direct peer, and NHN KCP (060250) is an adjacent peer in electronic-payment and security infrastructure.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| NHN KCP | 10.86x | 1.67x | 15.38% |
(a) Against the adjacent peer NHN KCP, at a P/E of about 13x and P/B of about 2x, Korea Information Certificate Authority's surface P/E of 7.8x and P/B of 1.0x look far lower. (b) However, this surface P/E is understated relative to reality because of the roughly ₩11.1 billion one-off disposal gain mixed into last year's net profit; recomputing this year's forward P/E on a core-business basis with that one-off removed is what it becomes. (c) In other words, the limitation of the 'confirmed-results (trailing) P/E' is that the one-off gain inflates the denominator and makes the multiple look lower, and viewed on a forward basis that reflects core-business growth and shareholder returns, it falls into a 'fairly valued' range that is modestly discounted versus peers. Against Korea Electronic Certification, which shares the same core certification business, the profitability and dividend appeal are similar or superior. It is important not to declare it 'cheap' based on the surface numbers alone.
Price history Close · MA20 · MA60
The latest close is ₩4,050 and the market capitalization is ₩164.4 billion. The price sits below its 20-day moving average (₩4,633) and below its 60-day moving average (₩5,546). 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 30.1, a neutral level. The one-month change is -23.0%, the three-month change is -26.0%, and the position relative to the 52-week high is -53.9%. Relative strength versus the KOSDAQ is 47 (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 47% of all stocks. Over the past three months it lagged the index by 4.2%. 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 -4.15% / 6M -22.85% / 12M -48.12%
Key metrics vs sector median
Valuation
The P/E of 6.28x is below the sector median (13.30x). The P/B of 0.81x is below the sector median (1.58x). 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.
Intrinsic value (DCF estimate)
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.
Profitability & financials
Return on equity (ROE) is 12.8%, above the sector average (5.0%). The operating margin is 19.5%. The debt ratio is 207.0%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $61.1M | $80.8M | $91.8M | +13.60% ↓ slower |
| Operating profit | $9.3M | $12.5M | $17.9M | +43.49% ↑ faster |
| Net profit | $6.1M | $7.4M | $17.4M | +134.48% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $39.0M | $58.2M | $61.1M | $80.8M | $91.8M |
| Operating profit | $7.7M | $10.4M | $9.3M | $12.5M | $17.9M |
| Net profit | $8.3M | $4.1M | $6.1M | $7.4M | $17.4M |
| Revenue CAGR | 4-yr avg 23.84% | ||||
Revenue rose 13.6% year over year (2023 ₩92.2 billion → 2024 ₩121.9 billion → 2025 ₩138.5 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 43.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 23.8%. The two-year revenue CAGR is 22.5%. In the most recent quarter (Q1 2026), revenue was 5.7% 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 4.9%, is on the high side.
- ROE of 12.8% points to solid profitability.
- Revenue grew 13.6% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-04-22IRValue-up plan (voluntary filing) — sets out goals of advancing the core certification, electronic-contract, and certificate business, diversifying the portfolio through M&A, investing in AI and post-quantum cryptography (PQC), and expanding shareholder returns through treasury-share retirement. Qualifies as a high-dividend company under tax law.There are no specific results targets, but it is a medium-term positive signal that formalizes stronger shareholder returns and a growth direction. Source
- 2026-04-10FilingTreasury-share acquisition trust contract signed — contract amount ₩5.68 billion, entrusted to Kiwoom Securities, about 1 million shares to be acquired, with the purpose of retirement after acquisition specified. Treasury shares held at the time of filing about 2.487 million (about 6%).Reducing the floating share count enhances per-share value. Short-term price stabilization plus medium-term stronger shareholder returns. Source
- 2026-03-11FilingCapital reduction decision — retiring 1,850,265 common shares (4.36% of issued shares) via treasury-share retirement. Includes treasury shares acquired in the merger and trust-acquired shares; no change to shares held by general shareholders. Capital-reduction record date April 30, change listing May 22.A lower issued-share count eases per-share earnings and equity dilution. Direct enhancement of shareholder value. Source
- 2026-03-11DividendCash / in-kind dividend decision — ₩200 per share, with the 2025 total dividend of about ₩8.0 billion up 31% from the prior year (about ₩6.1 billion). Payout ratio 30.5%.Maintains a dividend yield in the 4% range. A key pillar of stable shareholder returns. Source
- 2026-05-14Earnings2026 Q1 quarterly report — revenue ₩35.6 billion (+5.7%), operating profit ₩9.1 billion (+45.4%), a strong core business. Net profit of ₩7.2 billion is down 42.8% year on year, but this is because the roughly ₩11.1 billion gain on disposal of an associate investment (one-off) booked in the first quarter of last year is absent this year.Core-business profitability improved; the surface drop in net profit should be read as a one-off base effect. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 dividend and payout ratio | 4.0%, ₩200,x 30.5% | 2025 approx. 79.9, 30.5% | Confirmed | link |
| 2026 Q1 operating profit | 91.2 | operating profit ₩9,124,510,387 | Confirmed | link |
| Cause of the 2026 Q1 net-profit drop | net profit 72.2 | 1 approx. 110.8 . 94.2 vs 168.9. | Confirmed | link |
| Issued shares (after capital reduction) | 40,591,096 | 40,591,096 | Confirmed | link |
| 2026 estimated net profit (forward) | approx. 205 | — | Unverified | — |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-04Disclosure
- 2026-04-22Disclosure
- 2026-04-10TreasuryMaterial-fact report
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Shareholders' meeting notice
- 2026-03-11DividendCash/stock dividend decision
- 2026-03-11Material-fact 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.