Kakao Pay is a comprehensive finance and payments company that grew out of the 'wallet inside KakaoTalk.' It earns from online and offline payment fees (Q1 transaction value of ₩50.9 trillion), from the financial services of its subsidiaries Kakao Pay Securities and Kakao Pay Insurance, and from platform services in advertising and the intermediation of lending and telecom products — and recently financial services surpassed payment revenue. On May 6, 2026 it confirmed record quarterly results with its Q1 preliminary figures (consolidated revenue ₩300.3 billion, operating profit ₩32.2 billion), and on the same day filed a grant of stock options to employees. The key takeaways: on the strength side, the structure of layering securities, insurance and advertising onto a large user base gathered through payments has begun to translate into profit, with the securities unit pushing results higher; on the caution side, a large share of net profit swings with the stock market and market rates, causing wide quarterly variation, and ROE is still low, so profitability relative to capital needs several more quarters of profit to reach a steady footing.
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 rose 25.1% year over year, and the pace is quickening (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 41.7% higher than a year earlier.
- ROE is 2.4% (controlling-interest basis). It is below the sector average.
- Operating margin is 5.3%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kakao 46.14% (corporate)
Controlling bloc incl. related parties 46.19%
With the controlling bloc holding 46%, the ownership structure is stable.
🔎 In-depth analysis
- Kakao Pay is a comprehensive finance and payments company that grew out of the 'wallet inside KakaoTalk.' It earns money along three main axes.
- First, payment services, where the core is the fees charged when payments occur at online and offline merchants; Q1 payment transaction value (the total that people paid via Kakao Pay) reached ₩50.9 trillion.
- Second, financial services, the revenue earned by subsidiaries Kakao Pay Securities (stock and fund trading services) and Kakao Pay Insurance, and recently this segment has become the engine of growth, surpassing payment revenue.
- Third, platform services, in-app advertising and the intermediation of lending and telecom products (fees for connecting other companies' products).
- In short, it gathers users through payments and then raises revenue by layering investing, insurance, lending and advertising onto those users.
- The recent close was ₩37,450 and the market cap is ₩5.1 trillion.
- The price sits below both the 20-day line (₩41,608) and the 60-day line (₩48,400).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that measures the strength of gains versus losses over the past 14 days on a 0-100 scale) is 34.7, a neutral reading.
- The one-month change is -11.9%, the three-month change is -23.6%, and the price sits -56.8% below its 52-week high.
- Relative strength versus the KOSPI is 5 (on a 1-99 scale, this converts return versus the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 96% of all stocks by strength.
- Over the past three months it lagged the index by 42.5%.
- Charts are best read alongside trading volume and disclosure dates.
- On surface metrics alone, the P/E ratio (how many times one year's net profit the price represents) looks very high at 123x.
- But this figure is calculated on the small profit that only just turned positive in 2025, so it overstates the actual underlying strength.
- The company posted operating losses for four straight years from 2021 to 2024, then in 2025 recorded its first full-year profit (operating profit ₩50.4 billion, net profit ₩45.2 billion), and Q1 2026 net profit alone of ₩34.7 billion already reaches 77% of last year's full year.
- For a stock whose earnings are inflecting sharply upward, it is more appropriate to look at this year's earnings than last year's.
- The P/B (how many times book equity the price represents) is 2.67x, with net assets of ₩1.9 trillion.
- ROE (how much is earned in a year on equity) is still low at 2.4% — because in the first year of turning profitable, earnings have not yet caught up with the scale of capital — but it is improving quickly, with a Q1 net margin of 11.6%.
- The debt ratio (debt relative to equity) is recorded as a high 281%, but for a financial business, customer deposits and settlement funds are booked as liabilities, so it is hard to call this risky by manufacturing-industry standards.
- Revenue rose for five straight years, roughly doubling from ₩458.6 billion in 2021 to ₩958.4 billion in 2025, and the pace even picked up over the past two years with 24-25% annual increases.
- The bigger change is in profit.
- After four years of losses it turned profitable in 2025, and in Q1 2026 it set simultaneous quarterly records across all three metrics: revenue ₩300.3 billion (+41.7%), operating profit ₩32.2 billion (+631%) and net profit ₩34.7 billion (+141.5%).
- The center of gravity of growth has shifted to securities.
- In Q1, financial-services revenue grew 82% on strong investing and insurance, overtaking payment revenue, and Kakao Pay Securities posted quarterly revenue of ₩100.1 billion, an all-time high, with operating profit of ₩23.6 billion.
- If this trend continues through the remaining quarters this year, full-year net profit should far exceed last year's ₩45.2 billion, reaching the ₩140 billion range.
- In that case, the multiple on this year's earnings at the current market cap comes down to about 38x, a completely different picture from last year's 123x.
- That said, net profit includes investment and valuation gains that rise and fall with market conditions, so quarterly variation can be large — a point to bear in mind.
- On May 6, 2026 it disclosed Q1 preliminary results by fair disclosure, confirming record quarterly results (consolidated revenue ₩300.3 billion, operating profit ₩32.2 billion).
- On the same day it filed a grant of stock options to employees, and on May 14 the formal quarterly report was received.
- In late May and early June it announced IRs in succession, continuing to explain the earnings improvement directly to the market.
- On May 28 it disclosed a corporate governance report.
- Several May 8 reports of shareholding changes by executives and major shareholders were received; as changes in insider holdings, these warrant looking at the background alongside the direction itself.
- The observation points are clear.
- The structure of layering securities, insurance and advertising onto a large user base gathered through payments has finally begun to translate into profit, and the securities segment in particular, riding a buoyant stock market, is pushing results higher.
- Even though the P/E looks high on last year's figures, on this year's earnings it comes down to a range understandable for a growth stock, and the price sits in a spot that has yet to fully reflect this improvement.
- Conversely, the caution is that a large share of net profit is investment and valuation in character, swinging with the stock market and market rates, so quarterly variation is large, and if the market cools, securities-segment growth can slow with it.
- In addition, ROE is still low, so profitability relative to capital needs several more quarters of profit to reach a steady footing.
- In sum, a balanced view weighs the strength of 'a growth fintech whose profitability inflection the market has not yet fully reflected' together with the swing factor of 'earnings sensitivity to the market.'
🔎 Valuation vs peers Fairly valued
As a comprehensive fintech spanning payments, securities and insurance, we view Kakao Bank (an internet bank in the same Kakao financial family) and parent company Kakao (a platform) as peers adjacent in business character.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KakaoBank | 21.46x | 1.53x | 7.12% |
| Kakao | 30.24x | 1.32x | 4.36% |
The 123x P/E on last year's figures is calculated on the small profit of the first year of turning positive, so it is greatly inflated relative to reality and is not a fitting yardstick for a stock whose earnings are surging. On this year's earnings the multiple falls sharply into a range understandable for a growth fintech. That said, compared with Kakao Bank (P/E about 21x, ROE 7.1%) or Kakao (about 31x), a growth premium is still layered on, and with ROE still low and net profit sensitive to the stock market, it is too early to declare a clear undervaluation. Considering the pace of growth and the earnings improvement, we view it as a fair range — neither an excessive premium nor cheap enough to call undervalued.
Price history Close · MA20 · MA60
The latest close is ₩37,450 and the market capitalization is ₩5.1 trillion. The price sits below its 20-day moving average (₩41,608) and below its 60-day moving average (₩48,400). 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 34.7, a neutral level. The one-month change is -11.9%, the three-month change is -23.6%, and the position relative to the 52-week high is -56.8%. Relative strength versus the KOSPI is 5 (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 4% of all stocks. Over the past three months it lagged the index by 42.5%. 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 -42.55% / 6M -54.78% / 12M -79.21%
Key metrics vs whole-market median
Valuation
The P/E of 111.96x is above the whole-market median (13.81x). The P/B of 2.67x is above the whole-market median (1.15x). 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.
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 9.2%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 3x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 2.4%, below the whole-market average (5.0%). The operating margin is 5.3%. The debt ratio is 281.0%, 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 | $407.8M | $507.8M | $635.2M | +25.08% ↑ faster |
| Operating profit | -$37.5M | -$38.1M | $33.4M | — |
| Net profit | $1.7M | -$9.1M | $30.0M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $304.0M | $345.7M | $407.8M | $507.8M | $635.2M |
| Operating profit | -$18.0M | -$30.2M | -$37.5M | -$38.1M | $33.4M |
| Net profit | -$15.2M | $35.8M | $1.7M | -$9.1M | $30.0M |
| Revenue CAGR | 4-yr avg 20.23% | ||||
Revenue rose 25.1% year over year (2023 ₩615.4 billion → 2024 ₩766.2 billion → 2025 ₩958.4 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 20.2%. The two-year revenue CAGR is 24.8%. In the most recent quarter (Q1 2026), revenue was 41.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 25.1% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-06EarningsQ1 2026 consolidated preliminary results by fair disclosure — revenue ₩300.3 billion, operating profit ₩32.2 billion, net profit ₩34.7 billion, a record quarter (operating profit +631% year on year)The profitable footing following four years of losses is confirmed by a record quarter, raising confidence in the profitability inflection — a near- and medium-term positive. Source
- 2026-05-06FilingFiling of a grant of stock options to employeesAimed at attracting and retaining talent, but a modest future share-count increase upon exercise, a medium-term point of reference. Source
- 2026-05-14FilingMarch 2026 quarterly report received — Q1 financial statements formally confirmedThe preliminary figures are confirmed by the formal report, reinforcing confidence in the results. Source
- 2026-06-04IRIR notice — continued market communication on the earnings improvementPositive for reducing information asymmetry through stronger communication that directly explains the earnings narrative. Source
- 2026-05-28FilingCorporate governance report disclosure — disclosing board and shareholder-rights governance statusA neutral regular disclosure on governance transparency. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 consolidated revenue, operating profit and net profit | revenue 3,003 / operating profit 322 / net profit 347 | revenue 3,003 / operating profit 322 / net profit 347 | Confirmed | link |
| EPS (earnings per share) | ₩334.5 | net profit 452.4 ÷ 135,262,325 = ₩334.5 | Confirmed | link |
| P/B (price-to-book ratio) | 2.93x | 1.9 ÷ = BPS ₩14,050, 2.93x | Confirmed | link |
| 2026 full-year net profit estimate | approx. 1,400(self-estimate) | — | Unverified | — |
Recent filings
- 2026-06-04Disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-28Corporate governance report
- 2026-05-19Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-06EarningsFair-disclosure notice
- 2026-05-06EarningsFair-disclosure notice
- 2026-05-06Amended filing
📖 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.