PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
SG Corporation continues to post operating losses in its core apparel export and fashion businesses, while net income remains heavily shaped by non-operating items such as investment property disposal gains.
Consolidated revenue declined for four consecutive years, from KRW 161.3 billion in 2022 to KRW 132.3 billion in 2025.
Operating profit was negative in both 2024 (-KRW 2.8 billion) and 2025 (-KRW 1.5 billion), with operating losses recorded in four of the last five quarters.
The KRW 3.01 billion net profit attributable to owners in Q1 2026 was driven largely by an approximately KRW 5.2 billion gain from investment property disposal, underscoring the non-operating dependence of net income.
The debt ratio rose to 25.0% in 2023 before declining markedly to 15.3% in 2024 and 12.7% in 2025, indicating improved balance-sheet stability.
The company's roughly 640,000-square-meter landholding in the Bongcheon-dong area of Seoul's Gwanak-gu has repeatedly drawn market attention whenever greenbelt deregulation policy discussions surface.
SG Corporation, established in 1964 and listed on the KOSPI in 1976, operates three business segments: apparel export, fashion, and real estate leasing (other).
The apparel export segment supplies products on an OEM basis to major U.S. buyers such as the GAP Group and Macy's, manufacturing women's wear, casual apparel, and children's wear at its main plant in Vietnam and partner factories. Old Navy, Banana Republic, Target, and JCPenney are also cited as key trading partners.
Export volume is understood to be heavily concentrated in the North American region.
The fashion segment holds brands including the men's suit lines BASSO and BASSO homme, women's wear brands ab.f.z and ab.plus, and the luxury leather brand COLOMBO, sold through department stores, outlets, and franchise stores nationwide, with COLOMBO distributed through department-store luxury sections via subsidiary Colombo Korea.
Based on the most recent available breakdown, revenue is split roughly 43.9% apparel export, 54.7% fashion, and 1.4% other (real estate leasing).
The company owns approximately 640,000 square meters of land in the Bongcheon-dong area of Seoul's Gwanak-gu, which falls within a greenbelt (development-restricted) zone and has drawn recurring market attention whenever related policy announcements emerge.
In terms of governance, Chairman Lee Eui-bum of the SG Group is understood to exercise indirect control through unlisted holding entities SG-U and SG Korea, with SG Korea reported as the largest shareholder holding 47.64% and 34.64% stakes in SG Corporation and SG Global, respectively.
On the industry side, the apparel export segment is noted as transitioning from simple OEM toward ODM on the strength of quality and delivery competitiveness, alongside a broader trend of the luxury market expanding to reach Gen Z consumers.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩28.8B | -₩400M | −1.5% |
| 2025Q3 | ₩35.2B | -₩600M | −1.7% |
| 2025Q4 | ₩34.6B | ₩300M | 1.0% |
| 2026Q1 | ₩27.7B | -₩1.9B | −6.8% |
| 2026Q2 | ₩27.3B | -₩500M | −1.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩161.3B | ₩7.2B | ₩1.8B | 4.5% | 0.7% | 23.8% |
| 2023 | ₩143.1B | ₩1.8B | -₩1B | 1.3% | −0.4% | 25.0% |
| 2024 | ₩138.8B | -₩2.8B | ₩5.4B | −2.0% | 2.0% | 15.3% |
| 2025 | ₩132.3B | -₩1.5B | ₩900M | −1.1% | 0.3% | 12.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Consolidated revenue fell for four consecutive years, from KRW 161.3 billion in 2022 to KRW 143.1 billion in 2023, KRW 138.8 billion in 2024, and KRW 132.3 billion in 2025.
Operating profit shrank from a KRW 7.2 billion surplus (4.5% operating margin) in 2022 to KRW 1.8 billion (1.3%) in 2023, then turned negative at -KRW 2.8 billion (-2.0%) in 2024 and -KRW 1.5 billion (-1.1%) in 2025, marking two straight years of operating losses.
Net profit attributable to owners swung widely across years: KRW 1.77 billion in 2022, -KRW 1.03 billion in 2023, KRW 5.36 billion in 2024, and KRW 0.88 billion in 2025.
On a quarterly basis, operating losses persisted in Q2 2025 (-KRW 0.43 billion) and Q3 2025 (-KRW 0.62 billion), before a brief swing to a KRW 0.35 billion operating profit in Q4 2025, followed by a widened loss of -KRW 1.87 billion in Q1 2026.
Net profit attributable to owners in Q1 2026 reached KRW 3.01 billion, the largest in recent quarters, with the company disclosing that roughly KRW 5.2 billion in gains from investment property disposal was included in that quarter's results.
In other words, the same quarter saw operating losses widen while net profit rose sharply, illustrating how non-core factors have driven the direction of earnings.
In Q2 2026, revenue came to KRW 27.28 billion, the operating loss narrowed to KRW 0.46 billion, and net profit attributable to owners was KRW 1.35 billion, showing a smaller operating loss than in Q1.
Summed over the trailing four quarters (Q3 2025 through Q2 2026), operating profit remained negative while net profit attributable to owners stayed positive at roughly KRW 3.93 billion, repeatedly confirming a structure in which non-core gains have supported the overall earnings direction.
The apparel export segment is regarded as having maintained relatively stable performance on the back of trust built through quality and delivery reliability, with a transition from simple OEM to ODM underway alongside a broader trend of the luxury market expanding rapidly to include Gen Z consumers.
In contrast, the fashion (domestic private-brand) segment is seen as facing structural pressure on sales due to low entry barriers, diversifying distribution channels, and the entry of global fashion brands into the domestic market, intensifying competition.
Apparel export carries heavy reliance on major U.S. retailers such as the GAP Group, Old Navy, Banana Republic, Target, and JCPenney, linking performance closely to U.S. consumer conditions and inventory cycles.
Growth in the luxury leather market could be cited as a favorable backdrop for the premium leather segment where the COLOMBO brand operates.
Separately, the company's greenbelt-zoned land in Bongcheon-dong has repeatedly resurfaced as a market theme whenever related policy events occur, with the stock cited as a prominent name whose price volatility has expanded each time greenbelt deregulation pledges emerge.
That said, industry sources have also noted that greenbelt deregulation typically requires major cross-party negotiation and a fairly long-term process, warranting a cautious approach to investment.
The company does not publicly provide specific numerical guidance, making quarterly provisional earnings disclosures the most reliable way to track future performance direction.
Recent quarterly trends show the operating loss narrowing from -KRW 1.87 billion in Q1 2026 to -KRW 0.46 billion in Q2 2026, which can be interpreted as partial cost management taking effect even amid declining revenue.
The apparel export segment appears to be maintaining existing buyer relationships based on quality and delivery competitiveness while continuing its shift toward ODM.
The fashion segment remains under structural pressure from intensifying domestic competition, leaving channel realignment across brands and the potential expansion of the luxury leather (COLOMBO) line as key items to watch for segment performance.
On the real estate side, the greenbelt deregulation status of the Bongcheon-dong land remains at the policy-discussion stage, meaning market attention is likely to fluctuate with news flow until a specific deregulation timeline or the inclusion of the area is confirmed.
On the balance-sheet side, the debt ratio has shown a clear downward trend, from 25.0% in 2023 to 15.3% in 2024 and 12.7% in 2025, indicating relatively improved buffer capacity against external shocks.
Overall, the pace of core apparel earnings improvement and whether one-off items related to real estate or financial assets recur are cited as the key variables likely to shape near-term results.
The stock tends to trade at a substantial discount to net asset value, placing its price-to-book ratio on the lower end even within the apparel OEM and fashion sector.
The price-to-earnings ratio calculated on trailing four-quarter net profit has moved within the double-digit band this stock has historically formed, though the ratio tends to fluctuate given the large year-to-year swings in net profit.
On the dividend front, the company has not paid a cash dividend through its most recent fiscal year, leaving shareholder-return metrics below the sector average.
Regarding earnings quality, operating results have remained negative in most recent quarters, while net profit has been heavily shaped by non-operating items such as investment property disposal gains or financial-asset-related items, a factor worth weighing when interpreting valuation.
As a result, the market appears to have been pricing the stock while simultaneously reflecting two contrasting variables: the pace of core-business profitability recovery and policy momentum tied to the Bongcheon-dong land.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
The debt ratio declined markedly from 25.0% in 2023 to 15.3% in 2024 and 12.7% in 2025. Over the same period, net profit attributable to owners was positive in three of four years (2022, 2024, 2025), reflecting relatively stable financial buffer capacity.
The company holds approximately 640,000 square meters of land in the Bongcheon-dong area of Seoul's Gwanak-gu, and has a history of drawing market attention as a related stock whenever greenbelt deregulation discussions surface.
Should government and Seoul city greenbelt policy direction become more concrete, the potential utilization of this asset could again become a topic of discussion.
The apparel export segment is in the process of transitioning from simple OEM to ODM, alongside a broader trend of the luxury market expanding rapidly to reach Gen Z consumers. Should the luxury leather brand COLOMBO expand its distribution channels, there is potential for margin improvement in that segment.
Consolidated revenue fell for four consecutive years, from KRW 161.3 billion in 2022 to KRW 132.3 billion in 2025, with operating profit negative in both 2024 and 2025. Operating losses occurred in four of the last five quarters, meaning a clear core-business recovery has not yet been confirmed.
The fashion segment is assessed as facing structural pressure on sales due to low entry barriers, diversifying distribution channels, and the entry of global brands into the domestic market. If recovery in the competitiveness of the company's own brand channels is delayed, weak segment performance could persist.
The sharp rise in Q1 2026 net profit attributable to owners depended heavily on a one-off item—roughly KRW 5.2 billion in investment property disposal gains. Since such non-operating events are unlikely to recur every quarter, net profit volatility could increase in periods without similar one-off gains.
Greenbelt deregulation is generally described as requiring major cross-party negotiation and a fairly long-term process.
Without a confirmed timeline or target area, share price volatility could increase based on expectations alone, and related market interest could weaken quickly if the policy is delayed or the area is excluded.
The apparel export segment relies heavily on major U.S. buyers such as the GAP Group, Target, and JCPenney, linking performance closely to shifts in U.S. consumer conditions and inventory cycles.
The domestic fashion business also continues to face intensifying competition, leaving both business lines in an environment where revenue recovery is not straightforward.
The company is indirectly controlled by Chairman Lee Eui-bum through unlisted holding entities SG-U and SG Korea, with SG Korea reported as the largest shareholder holding 47.64% and 34.64% stakes in SG Corporation and SG Global, respectively.
Given a governance structure in which group-level decisions can influence individual listed companies' management, transactions or asset transfers among affiliates warrant ongoing monitoring from a minority-shareholder perspective.
The Q3 2026 consolidated provisional earnings disclosure should be checked to see whether revenue trends in the apparel export and fashion segments and the recent narrowing of operating losses continue.
The Q4 and full-year 2026 earnings disclosure should be examined for whether full-year operating profit turns positive and whether one-off items such as investment property disposals recur.
Confirmation of whether the Bongcheon-dong land is actually included in a deregulation target area and timeline could meaningfully affect discussions around asset value reassessment.
This is a point to check for any changes in shareholder-return policy, such as dividends or share buybacks tied to the value-up program, along with board agenda items.
SG Corporation has shown a recurring pattern of declining revenue and operating losses in its core apparel export and fashion businesses, while net income has been heavily shaped by non-operating factors such as investment property disposal gains.
Its balance sheet has improved in terms of buffer capacity, with the debt ratio declining markedly, but a clear recovery in core profitability has yet to be confirmed.
The land asset in the Bongcheon-dong area of Seoul's Gwanak-gu has drawn market attention whenever greenbelt deregulation policy discussions surface, though the timing and target area for deregulation remain unconfirmed.
From a valuation standpoint, the stock shows a discount to net asset value and the absence of dividends, characteristics that should be weighed alongside the non-operating dependence of its earnings quality.
Going forward, quarterly provisional earnings trends in the core business, progress on policy announcements, and whether one-off gains recur are likely to be the key variables shaping both performance and market attention.
This report does not provide an investment recommendation or target price and is intended for informational purposes only.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.