PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
Holding company Sempio posted a sharp operating-profit rebound in 2025, but a National Tax Service probe and a long-standing low shareholder-return policy are drawing attention as governance issues at the same time.
2025 consolidated operating profit rose sharply to KRW 24.1bn from KRW 5.9bn a year earlier, marking a clear earnings recovery.
The last four quarters (Q3 2025 to Q2 2026) showed volatility: a strong Q3, a sharp Q4 drop, then a gradual, uneven pattern thereafter.
In February 2026 the National Tax Service launched a tax investigation covering Sempio Foods and holding company Sempio, examining suspicions that price-hike gains were funneled to the founding family.
With treasury shares of roughly 30% of shares outstanding, the company has long been criticized for a low dividend payout ratio, and this has become a governance talking point amid Commercial Act reform discussions.
A dominant position with over 50% share of the soy sauce market and rising demand for sauces and convenience foods amid growing single-person households are cited as favorable industry backdrops.
Sempio converted to a holding-company structure in 2017 following a 2016 spin-off, and operates two business segments: a holding segment that manages and invests in subsidiaries, and a food segment that manufactures and sells food products.
The holding segment earns income mainly from equity-method gains, dividends, rental income, and brand fees.
The food segment consists of Sempio Foods, which makes soy sauce and other fermented condiments; Yangpo Foods, which produces canned goods and kimchi seasoning; Sempio ISP, which handles in-store promotional services; and Jochiwon Foods, which produces tea products.
Core subsidiary Sempio Foods holds an over 50% share of the domestic soy sauce market, maintaining the top industry position, and also operates brands such as Yeondu cooking essence, Fontana, and Ziller.
Domestic sales are concentrated in the modern trade channel—large discount stores, supermarkets, convenience stores, and department stores—followed by distributor, agricultural cooperative, special-account, and online channels. Overseas sales run through affiliated trading entities and a China-based subsidiary.
The company deploys promotional staff across a large share of discount-store outlets nationwide, a practice tied to rising labor cost pressure.
Sempio competes with several large domestic food companies in the sauce, condiment, and canned-food categories, and the broader market is increasingly segmenting into all-purpose, ready-to-use sauce products.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩99.2B | ₩7.4B | 7.5% |
| 2025Q3 | ₩108.7B | ₩12.8B | 11.8% |
| 2025Q4 | ₩100.4B | ₩2.7B | 2.7% |
| 2026Q1 | ₩103.5B | ₩6.6B | 6.3% |
| 2026Q2 | ₩100.3B | ₩4.4B | 4.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩371.8B | ₩10.3B | ₩10.4B | 2.8% | 5.2% | 42.4% |
| 2023 | ₩383.9B | ₩8.1B | ₩6.1B | 2.1% | 3.1% | 43.9% |
| 2024 | ₩405B | ₩5.9B | ₩6.6B | 1.5% | 3.2% | 40.8% |
| 2025 | ₩409B | ₩24.1B | ₩9.7B | 5.9% | 4.5% | 35.8% |
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
2025 consolidated revenue was KRW 408.96bn, a modest increase from KRW 404.96bn in 2024, while operating profit jumped more than fourfold to KRW 24.14bn from KRW 5.88bn, lifting the operating margin from 1.5% to 5.9%.
This aligns with observations that price increases on core products, even as raw-material costs fell, supported the margin improvement.
Owners' net profit rose 48% to KRW 9.74bn in 2025 from KRW 6.57bn in 2024, though looking across four years including 2023 (KRW 6.08bn) and 2022 (KRW 10.44bn), profit levels fluctuated considerably.
On a quarterly basis, Q3 2025 operating profit reached KRW 12.81bn, the highest of the recent quarters, before falling sharply to KRW 2.71bn (a 2.7% margin) in Q4 2025, with owners' net profit dropping to just KRW 77mn.
Q1 2026 saw a recovery to KRW 6.56bn in operating profit and KRW 4.64bn in owners' net profit, but Q2 2026 softened again to KRW 4.40bn in operating profit (4.4% margin) and KRW 0.89bn in owners' net profit.
This softening is echoed in subsidiary Sempio Foods' standalone quarterly results, where revenue grew but operating profit fell sharply year over year due to rising cost pressures.
Summed over the trailing four quarters (Q3 2025–Q2 2026), revenue and operating profit track roughly in line with the full-year 2025 level, but with considerable quarter-to-quarter swings. On the cash-flow side, operating cash flow rose steadily to KRW 61.8bn in 2025 from KRW 35.1bn in 2024 and KRW 22.9bn in 2023.
The domestic sauce and seasoning market is rapidly segmenting into all-purpose, ready-to-use sauce products that cut down on cooking steps, driven by rising single-person households and higher dining-out costs.
According to Statistics Korea data, single-person households reached 8.045 million, or 36.1% of all households, in 2024, a structural factor supporting demand for convenience foods and sauces.
Within this trend, Sempio Foods maintains an overwhelming lead with over 50% share of the soy sauce market, positioning it to capture a relatively large share of industry growth. However, this oligopolistic market position has also turned into a regulatory risk amid the government's price-stability drive.
In February 2026, the National Tax Service included Sempio Foods in a tax investigation alongside Chosun Flour Mills (known for its Gomtable flour brand) and sugar maker Samyang Corp, with the investigation triggered in part by a sharp profit surge tied to product price increases even as raw-material costs fell.
This is not an isolated issue for Sempio; it reflects a broader government crackdown on food and daily-necessity companies with dominant market positions, meaning competitors with similar market power face comparable oversight risk. This regulatory environment could constrain future pricing flexibility as a variable to watch.
The company has previously stated that advertising expenses tied to new brand launches temporarily weighed on profit, and it has indicated plans for facility investment to secure a more stable earnings structure.
This represents a near-term cost burden but could translate into production efficiency gains or stronger new-product responsiveness over the medium term.
Given that quarterly results recovered in Q1 2026 before softening again in Q2, the direction of second-half results is likely to hinge on raw-material cost trends and whether promotional and labor cost pressures ease.
The National Tax Service investigation launched in February 2026 has not yet produced a public conclusion, and depending on its findings or any resulting tax assessment, one-off costs or reputational risk could follow, warranting attention to future disclosures.
Amid ongoing Commercial Act reform discussions, calls for mandatory treasury-share retirement or dividend increases persist, making any shift in the company's shareholder-return policy a key point to monitor.
That said, the company has explained that it set its current dividend level in light of still-modest margins and a period of increased investment, leaving the timing of any near-term policy shift uncertain.
The stock appears to trade at a substantial discount to net asset value, which can be interpreted as reflecting both the holding company's characteristically low capital efficiency and lingering uncertainty tied to the tax investigation and governance issues.
The price-to-earnings multiple based on the trailing four quarters appears to sit within the historical trading band of recent years, and this multiple has not moved to an extreme even after the 2025 profit recovery.
On the dividend front, it has repeatedly been noted that the payout ratio has stayed below the industry average for many years, and the dividend yield relative to share price is also known to be on the low side.
This low level of shareholder return, combined with treasury shares of roughly 30% of shares outstanding, has drawn market attention amid ongoing Commercial Act reform discussions.
The multi-year trend of profit improving in direction over recent years is a relevant reference point for valuation assessment, but the considerable quarter-to-quarter volatility should also be weighed.
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 operating margin declined from 2.8% in 2022 to 2.1% in 2023 and 1.5% in 2024, before improving sharply to 5.9% in 2025. In certain quarters, such as Q3 2025, the margin approached double digits. This illustrates room for profitability improvement when pricing policy and cost management align.
Core subsidiary Sempio Foods holds a firm number-one position with over 50% share of the soy sauce market. Rising single-person households and higher dining-out costs are cited as structural drivers of growing demand for all-purpose sauces and convenience foods. This market position can serve as a foundation for new product expansion.
Operating cash flow grew steadily from KRW 22.9bn in 2023 to KRW 35.1bn in 2024 and KRW 61.8bn in 2025. The debt ratio also declined from 42.4% in 2022 to 35.8% in 2025. These trends can be viewed favorably from a financial stability standpoint.
In February 2026, the National Tax Service included both Sempio Foods and holding company Sempio in a tax investigation. The probe is examining whether profits gained from price increases were unfairly transferred to the founding family. Depending on the findings, this could lead to tax assessments or reputational risk.
Sempio holds roughly 30% of its own shares as treasury stock, and its dividend payout ratio has been criticized for years as below the industry average. Amid Commercial Act reform discussions, pressure for mandatory treasury-share retirement or higher dividends could intensify. This can act as a source of governance-related uncertainty.
Operating profit plunged from KRW 12.8bn in Q3 2025 to KRW 2.7bn in Q4, recovered to KRW 6.6bn in Q1 2026, and then eased again to KRW 4.4bn in Q2. Subsidiary Sempio Foods' standalone Q2 results also showed operating profit falling sharply year over year.
This volatility appears linked to seasonal or temporary swings in cost items such as promotional and labor expenses.
Under a price-stability policy drive, the National Tax Service has been conducting tax investigations targeting oligopolistic food and daily-necessity companies, and both Sempio Foods and holding company Sempio have been included. Pricing policy and related-party transactions are known focal points of the probe. Depending on the outcome, additional tax burdens or changes to business practices could be required.
Sempio holds roughly 30% of its shares as treasury stock accumulated during past efforts to defend management control, and a bill mandating retirement of treasury shares has been proposed amid Commercial Act reform discussions.
With a legal amendment already expanding directors' fiduciary duty to shareholders, minority shareholder demands for higher dividends or treasury-share retirement could intensify. The company's capital policy may shift depending on how these discussions progress.
It has been noted that intensifying promotional competition amid an economic slowdown, combined with rising labor costs, has made securing personnel more difficult. Expanded advertising spending for new brands and planned facility investments are also near-term cost pressures. Future movements in raw-material prices could also directly affect margins.
Around the time of the Q3 2026 preliminary earnings disclosure, it will be important to check whether the Q2 margin softening continues or reverses.
The National Tax Service investigation launched in February 2026 may conclude with a public outcome or tax assessment during this period, warranting attention to related disclosures or media reports.
Around the year-end dividend record date and policy announcement, it will be worth checking for any change in the dividend payout ratio or the direction of treasury-share handling.
It will be necessary to track whether the proposed Commercial Act amendment mandating treasury-share retirement advances, as passage could affect how the company handles its roughly 30% treasury-share stake.
Sempio posted a marked operating-profit recovery in 2025 versus the prior year, but significant quarter-to-quarter volatility is also evident, with margins dropping sharply in both Q4 2025 and Q2 2026.
Core subsidiary Sempio Foods' dominant soy sauce market position and growing sauce demand tied to single-person households stand out as favorable industry backdrops, yet this same oligopolistic position has also drawn the company into a recent National Tax Service investigation.
That probe addresses suspicions that price-hike gains were transferred to the founding family, and its conclusion could carry additional financial or reputational risk.
At the same time, the company has maintained roughly 30% of its shares as treasury stock alongside a low dividend payout ratio, and faces mounting pressure over shareholder-return policy amid Commercial Act reform discussions.
On the financial side, improving cash flow and a declining debt ratio are positive stability indicators, but the outcome of the tax investigation and the progress of governance-related discussions remain the key variables shaping the path ahead.
Investors will want to monitor upcoming quarterly results, the conclusion of the tax probe, and any dividend or treasury-share policy announcements.
Report written 2026-09-05 · Data as of 2026-09-04
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