KG FinancialKG파이낸셜

KG Financial's trailing profit is solid and its shares look cheap on the numbers, but revenue has been shrinking and the stock is down 24.7% over the year.

KG Financial runs an online payment gateway serving about 27,500 merchants and also operates education businesses such as teacher recruitment exam academies and online courses. For the twelve months to H1 2026 it reported revenue of ₩241B, operating income of ₩34B and net income of ₩23B, with cash of ₩114B and no borrowings listed. The shares closed at ₩3,850 on 2026-10-27, well below the 52-week high of ₩6,380.

What stands out

• Trailing operating margin is 14% and net margin is 9.6%, but 2025 revenue fell 12.2% and 2024 revenue fell 4.8%, so the top line is weakening.
• Valuation metrics are low: P/E about 6, P/B about 0.4, and a dividend yield of 6.5%; the company's own DCF base value is ₩13,175, but the data gives no independent analyst targets.
• Trailing free cash flow of ₩71B is well above net income, and cash of ₩114B is reported against no listed borrowings.
• Net income in 2024 dropped to ₩9.7B from ₩43.6B in 2023 before recovering to ₩23B in 2025, so earnings have been volatile.
• Recent filings include a preliminary earnings release, a half-year report, a corporate value-up plan and a share cancellation decision, and a news report says pre-settlement service volume passed ₩10B within three months.

What to watch

• Whether the planned share cancellation and value-up plan are carried out, and how they affect the share count and shareholder returns.
• Next quarterly results, to see if revenue stabilises after the 2024 and 2025 declines.
• Foreign ownership is 5% and foreign investors were net sellers over the last 20 days; the filings do not name specific risks beyond the business-group status disclosure.