Korea Steel melts scrap in an electric-arc furnace to make rebar for construction sites such as apartments and civil-engineering works, a typical domestic-demand steelmaker whose profit is set by the gap between the raw-material scrap price and the finished-rebar selling price (roll margin) plus costs such as power. In June 2026 the company decided on a trust contract to acquire its own shares and at its March general meeting resolved a ₩750-per-share cash dividend (a yield of about 8.6%), keeping shareholder returns going even through a loss-making stretch, yet both last year and the first quarter of this year carried operating losses. What stands out lately is that this is a recovery-in-waiting value stock whose strengths are its asset value at a P/B of 0.41x, low debt, and shareholder returns, while its earnings recovery is not yet proven in the numbers, so its forward earnings multiple (about 29x) comes out higher than peers; the direction of construction starts and rebar prices will settle the conclusion.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 18.9% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 3.9% lower than a year earlier.
- ROE is -1.2% (total-net basis). It is below the sector average.
- Operating margin is -8.0%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder KISCO Holdings 60.34% (corporate)
Controlling bloc incl. related parties 66.52%
With the controlling bloc holding 67%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Korea Steel is a steelmaker that melts scrap in an electric-arc furnace to make rebar (reinforcing bars set inside concrete) for construction sites.
- Because most of its revenue comes from construction rebar for apartments, civil-engineering works, and the like, the company's results hinge heavily on domestic construction-start volume and rebar prices.
- What drives profit above all is the gap between the raw-material scrap price and the finished-rebar selling price (the so-called roll margin), on top of which come costs such as the power to run the furnace.
- It has production bases in Busan and elsewhere and is a typical domestic-demand-centered steelmaker that rides the construction cycle directly.
- The recent close is ₩9,180 and the market cap is ₩334.6 billion.
- The price sits above its 20-day line (₩8,974) and below its 60-day line (₩9,392), so the short-term and medium-term trends diverge and should be read separately.
- The RSI (an auxiliary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 55.1, a neutral level.
- The one-month change is +3.0%, the three-month change is -1.7%, and the position versus the 52-week high is -19.8%.
- Relative strength against the KOSPI is 27 (1-99, converting return versus the index over the past year with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 74% of all stocks by strength.
- Over the past three months it lagged the index by 22.1%.
- Chart reading is best done alongside trading volume and disclosure dates.
- This company's biggest feature is that its share price is very cheap relative to asset value.
- Its P/B (how many times net assets the price is) is 0.41x, trading below half of its accounting shareholders' equity (about ₩21,148 per share).
- The debt ratio of 112.5% is not heavy, and the current ratio of 927% leaves very ample short-term funding headroom, so financial stability is on the solid side.
- That said, because last year's (2025) confirmed results were an operating loss, the P/E (how many times one year's earnings the price is) cannot be computed, and the ROE (how much is earned in a year on equity) is also negative at -1.2%.
- In short, it can look expensive judged by the money it earns but is clearly cheap judged by the assets it holds, the textbook shape of an asset-type value stock.
- Whether earnings turn from loss to profit is the next gate.
- Revenue fell three years running from ₩905.1 billion in 2023 to ₩600.0 billion in 2024 to ₩486.6 billion in 2025 (-18.9% versus last year), and over the same period operating results turned from profit to loss.
- Rather than a company failing, this largely reflects an industry backdrop in which downstream demand (construction starts) for its mainstay construction rebar cooled and rebar prices weakened.
- First-quarter 2026 revenue was ₩111.7 billion, -3.9% from the same period a year earlier, but the decline narrowed to single digits from prior quarters, so the revenue slide is slowing.
- The first-quarter operating result, however, was -₩14.3 billion, still in the red, so apart from the easing revenue decline, an inflection where earnings turn back to profit has not yet been confirmed.
- For this year's earnings to recover into the black, construction starts need to revive or rebar prices need to rise to widen the roll margin; for now this is a stretch of watching the early part of that recovery.
- The recent disclosure flow carries both a shareholder-return signal and continued losses.
- On June 9, 2026, the company decided to sign a trust contract to acquire its own shares, a signal that it will buy back its stock to support shareholder value and a factor that helps supply-demand in the short term.
- Earlier, at the March 27 regular general meeting, a ₩750-per-share cash dividend (a yield of about 8.6% at the current price) was resolved, showing a will to sustain shareholder returns even through a loss-making stretch.
- That said, the May 15 first-quarter report and the March 19 business report confirmed revenue decline and operating loss, so the strength in assets and financials and the weakness in earnings sit together within one bundle of disclosures.
- Korea Steel's strengths are clear.
- Its asset-value appeal at a P/B of 0.41x, below half of net assets, its non-heavy debt and ample liquidity, and shareholder returns in the form of a dividend yield of about 8.6% sustained even in a loss and share buybacks all sit together.
- It has a distinct asset-type value character: the share price is cheap relative to what it holds, and it shows a will to return capital to shareholders.
- On the other hand, the point to watch is earnings.
- Both last year and the first quarter of this year were operating losses, so a flow in which assets connect to actual earnings has not yet been confirmed, and so on a forward basis the earnings multiple (about 29x) also comes out higher than peers such as Daehan Steel and Poongsan.
- This is the characteristic look of a stock whose earnings are only just recovering off the trough of the black; if recovery is fast the multiple falls quickly, and if recovery is slow it remains a burden.
- In sum, this stock is strong in that its assets are cheap and shareholder returns are alive, and cautious in that the earnings recovery is not yet proven in the numbers, a recovery-in-waiting value stock where the direction of construction starts and rebar prices settles the conclusion.
🔎 Valuation vs peers Inconclusive
The primary comparison is against the same business group that makes construction rebar and section steel via electric-arc furnaces (Dongkuk Steel, Daehan Steel); Poongsan differs in business mix (copper, defense) and is kept only as a secondary reference. On-site figures are current-price values produced by tools/peers.py.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Dongkuk Steel Mill | 48.70x | 0.21x | 0.44% |
| Daehan Steel | 17.56x | 0.32x | 1.84% |
| Poongsan | 11.71x | 0.75x | 6.40% |
Against the same business group, Korea Steel's P/B of 0.41x sits within the rebar sector's average band (Dongkuk Steel 0.25x to Daehan Steel 0.38x), so on an asset basis it is neither markedly undervalued nor overvalued. Because last year's confirmed results were a loss, the P/E cannot be computed at all, and peers' P/E figures (Dongkuk Steel 57x, Daehan Steel 20x) are also greatly inflated as they reflect an industry that bottomed on earnings, making it hard to tell them apart by a trailing P/E. On a forward basis, with no official company outlook figure, only a seasonality approximation of the first quarter's DART results (annual revenue about ₩451.1 billion) can be referenced, and even that approximation does not estimate an operating result, so no earnings inflection is confirmed. So rather than committing to cheap or expensive, the view is that the meaning of the low P/B and high dividend comes alive only after seeing whether construction starts and rebar prices turn and the loss flips to profit.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩121.2 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩9,180 and the market capitalization is ₩334.6 billion. The price sits above its 20-day moving average (₩8,974) and below its 60-day moving average (₩9,392). 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 55.1, a neutral level. The one-month change is +3.0%, the three-month change is -1.7%, and the position relative to the 52-week high is -19.8%. 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 26% of all stocks. Over the past three months it lagged the index by 22.1%. 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 -22.10% / 6M -42.45% / 12M -58.13%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.43x is in line with the sector median (0.50x).
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 -1.2%, below the sector average (2.0%). The operating margin is -8.0%. The debt ratio is 112.5%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $599.9M | $397.7M | $322.5M | -18.90% ↑ faster |
| Operating profit | $57.4M | $1.2M | -$25.6M | -2233.89% ↓ slower |
| Net profit | $45.2M | $15.5M | -$5.9M | -138.05% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $587.6M | $705.3M | $599.9M | $397.7M | $322.5M |
| Operating profit | $68.5M | $80.5M | $57.4M | $1.2M | -$25.6M |
| Net profit | $64.5M | $52.9M | $45.2M | $15.5M | -$5.9M |
| Revenue CAGR | 4-yr avg -13.93% | ||||
Revenue fell 18.9% year over year (2023 ₩905.1 billion → 2024 ₩600.0 billion → 2025 ₩486.6 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 2233.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -13.9%. The two-year revenue CAGR is -26.7%. In the most recent quarter (Q1 2026), revenue was 3.9% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 8.2%, is on the high side.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 18.9% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-06-09UpdateDecided to sign a trust contract to acquire its own shares. A decision to use held cash to buy back its stock and support shareholder value.In the short term it is favorable for supply-demand and shows a will toward shareholder returns, but signing a trust contract does not mean buying the full amount, so the actual acquisition size and whether shares are retired need confirming in follow-up disclosures. Source
- 2026-05-15EarningsFiled the first-quarter 2026 report. Revenue of ₩111.7 billion (-3.9% year on year) and an operating loss of ₩14.3 billion officially confirm that the loss continued.The revenue decline narrowed, but the operating loss actually widened, so that profitability has not yet recovered is the medium-term point to watch. Source
- 2026-03-19EarningsFiled the 2025 business report (separate). Annual revenue of ₩486.6 billion, an operating loss of ₩38.7 billion, and a net loss of ₩8.9 billion confirm a year that turned from profit to loss.The most recent confirmed source for the five-year revenue and profit trend cited in the main text, to be read together with subsequent quarterly results. Source
- 2026-03-27FilingDisclosed the results of the regular general meeting. Annual agenda items such as the dividend and director appointments were handled.The procedure behind the ₩750-per-share dividend (a yield of about 8.6% at the current price), a reference point for gauging whether the dividend policy continues. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual operating result (separate) | -₩38.7 billion | 2025 | Confirmed | link |
| 2026 first-quarter revenue | ₩111.7 billion | 2026 1 | Confirmed | link |
| Decision to sign a trust contract to acquire own shares | 2026-06-09 | — | Confirmed | link |
| 2026 approximated annual revenue | approx. ₩451.1 billion | — | Unverified | link |
Recent filings
- 2026-06-09TreasuryMaterial-fact report
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-23Amended filing
- 2026-03-23Amended filing
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-16Amended filing
- 2026-03-12Shareholders' meeting notice
- 2026-03-04Shareholders' 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.