PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩290 per share · Prices as of the 2026-10-02 close
Korea Information & Communications has posted four consecutive years of revenue growth and gradual operating margin improvement on its offline VAN and online PG businesses, while seeking to expand its payment infrastructure footprint through NFC terminal replacement demand tied to Apple Pay expansion and participation in the Bank of Korea's Project Hangang.
Annual revenue rose for four straight years from KRW 595.5 billion in 2022 to KRW 836.3 billion in 2025, while the operating margin improved from 4.5% to 5.4%.
Owner-attributable net income fell to KRW 36.6 billion in 2025 from KRW 43.6 billion a year earlier, with a notable margin squeeze in the fourth quarter of 2025 when the operating margin compressed to roughly 2%.
Second-quarter 2026 revenue reached KRW 237.6 billion, the highest among the last five quarters, with operating profit also recovering from the prior quarter.
Operating cash flow turned positive to KRW 103.5 billion in 2025 from negative KRW 8.7 billion in 2024, while the debt ratio declined from the 60%-plus range in 2022-2023 to 52.6% in 2025.
The company's participation alongside Woori Bank and Woori Card in Phase 2 of the Bank of Korea's digital currency pilot 'Project Hangang' has been confirmed, while Shinhan Card and KB Kookmin Card's preparations to adopt Apple Pay are reviving NFC terminal replacement demand.
Korea Information & Communications (KICC) was founded in 1986 as the first company in Korea to commercialize credit card verification services, and operates as a Value Added Network (VAN) provider.
Its core businesses consist of two pillars: offline VAN services that handle card payment authorization and intermediation for merchants, and online Payment Gateway (PG) services for e-commerce merchants.
According to past disclosures, financial VAN services accounted for the mid-90% range of total revenue, with the remainder split among payment terminal sales, venture investment, and IT services such as ERP.
In the terminal business, the company develops and supplies its own devices, including the 'Easycheck' card reader and the 'Easypos' point-of-sale system, and has drawn market attention for terminals equipped with near-field communication (NFC) functionality required for Apple Pay transactions.
For foreign tourists, the company differentiates itself through tax refund agency services (TRS) and Alipay barcode payment agency services (AOS). In Korea's VAN market, NICE Information & Communications holds the leading position, with KICC established as a major player following behind.
In terms of ownership, Swiss investment firm De Wey & Cie SA is the largest shareholder, having maintained its stake over a long period since investing during the early-2000s IT bubble crisis.
The company has also pursued diversification into adjacent payment-related areas, including a shareholding in K-Bank and a joint venture with card companies operating a mid-rate lending business based on alternative credit scoring.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩204.8B | ₩14B | 6.8% |
| 2025Q3 | ₩218.2B | ₩15.1B | 6.9% |
| 2025Q4 | ₩220.9B | ₩6B | 2.7% |
| 2026Q1 | ₩216.2B | ₩11B | 5.1% |
| 2026Q2 | ₩237.6B | ₩11.9B | 5.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩595.5B | ₩27B | ₩21.8B | 4.5% | 8.9% | 63.9% |
| 2023 | ₩725.1B | ₩35.7B | ₩30.1B | 4.9% | 11.1% | 63.2% |
| 2024 | ₩791B | ₩39.1B | ₩43.6B | 4.9% | 14.2% | 51.0% |
| 2025 | ₩836.3B | ₩45.2B | ₩36.6B | 5.4% | 10.9% | 52.6% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Annual revenue grew for four consecutive years, from KRW 595.5 billion in 2022 to KRW 725.1 billion in 2023, KRW 791.0 billion in 2024, and KRW 836.3 billion in 2025.
Over the same period, operating profit rose from KRW 27.0 billion to KRW 35.7 billion, KRW 39.1 billion, and KRW 45.2 billion, with the operating margin gradually improving from 4.5% to 4.9%, 4.9%, and 5.4%.
However, owner-attributable net income actually declined to KRW 36.6 billion in 2025 from KRW 43.6 billion in 2024, diverging from the operating profit trend, and earnings per share also fell accordingly from the prior year.
On a quarterly basis, revenue of KRW 204.8 billion and operating profit of KRW 14.0 billion (margin of about 6.8%) in the second quarter of 2025 improved to revenue of KRW 218.2 billion and operating profit of KRW 15.1 billion (about 6.9%) in the third quarter, but the fourth quarter saw revenue of KRW 220.9 billion accompanied by a sharp drop in operating profit to KRW 6.0 billion, compressing the margin to the high-2% range in a single-quarter margin squeeze.
Operating profit then recovered to KRW 11.0 billion (about 5.1%) in the first quarter of 2026, and second-quarter revenue reached KRW 237.6 billion, the highest of the five quarters, with operating profit holding at a solid KRW 11.9 billion (about 5.0%).
On the cash flow statement, operating cash flow improved significantly to positive KRW 103.5 billion in 2025, reversing from negative KRW 8.7 billion in 2024. The capital structure also stabilized, with the debt ratio easing from 63.9% in 2022 and 63.2% in 2023 to 51.0% in 2024 and 52.6% in 2025.
Overall, while the long-term trend shows top-line growth and margin improvement, quarter-to-quarter earnings volatility remains a notable characteristic.
Korea's payment infrastructure industry is built on two pillars—VAN fees from offline card payments and PG fees from online e-commerce—and Apple Pay's expansion has recently emerged as a variable reshaping the competitive landscape.
Domestic EMV-standard NFC terminal penetration stands at only about 10%, which has constrained the expansion of Apple Pay usage, but preparations by Shinhan Card and KB Kookmin Card, the industry's No. 1 and No. 3 card issuers, to adopt Apple Pay are expected to shake up the payment market.
In this process, Toss and Naver Pay have each entered the offline payment terminal business with their own devices—'Toss Place' and 'Connect,' respectively—acting as catalysts for NFC infrastructure expansion.
Industry observers note that as Apple Pay users grow, VAN companies have a greater incentive to actively market NFC terminal replacements to small merchants.
That said, the VAN industry has long faced structural pressure as card companies have reduced VAN fees by handling sales-slip purchasing directly or simplifying the process, and some large merchants have begun operating their own VAN businesses following the ban on rebates, gradually diluting the market power of established large VAN operators.
In the PG segment, the market continues to expand alongside e-commerce growth, but competition remains a constant given the presence of multiple rivals such as KG Inicis, Toss Payments, Naver Financial, and Kakao Pay.
Within this landscape, Korea Information & Communications maintains a position as the second-largest operator behind NICE Information & Communications, running its VAN, PG, and terminal businesses in parallel.
Project Hangang, the Bank of Korea-led digital currency (CBDC/deposit token) pilot, saw the central bank announce a full-scale push for Phase 2 in March 2026, with the program expected to launch as early as around August 2026 involving nine participating banks including KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, IBK, Busan, Gyeongnam, and iM Bank.
Among these, it has been confirmed that Woori Bank plans to participate in Phase 2 together with Woori Card and PG company KICC (Korea Information & Communications), focusing on offline payment use cases.
This could serve as an opportunity for the company to extend its existing VAN and PG infrastructure into next-generation CBDC and deposit-token-based payment pilots.
Separately, as Shinhan Card and KB Kookmin Card prepare to adopt Apple Pay, VAN operators have a growing incentive to expand NFC terminal replacement sales targeting small merchants, creating conditions in which the company's in-house NFC terminal hardware capability could contribute to expanding its revenue touchpoints.
In the PG segment, continued e-commerce transaction growth also suggests a window for gradual growth in online payment agency fee revenue.
However, variables such as the actual pace of Project Hangang user adoption, the real-world timing of Apple Pay's broader rollout, and potential changes to card companies' VAN fee policies remain unconfirmed and will require ongoing verification through future disclosures and industry news.
The current share price trades in a range below the average multiple observed over the past five years, and also appears to trade at a discount relative to net asset value.
On the dividend front, the company has a track record of paying annual cash dividends in recent years, suggesting a consistently maintained shareholder return policy.
On the earnings side, while the operating margin has improved gradually since 2022, owner-attributable net income declined year-on-year in 2025, reflecting quarter-to-quarter earnings volatility that the market's trading multiple appears to incorporate as well.
Given the simultaneous presence of payment infrastructure expansion factors (Project Hangang, Apple Pay-driven NFC demand) and intensifying competition factors (entry of large platform operators), valuation judgments may differ depending on how these two forces are weighted relative to each other.
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 2026-08-21
The company's participation in Phase 2 of the Bank of Korea-led digital currency pilot 'Project Hangang,' alongside Woori Bank and Woori Card, has been confirmed. NFC terminal replacement demand is also being revived by Shinhan Card and KB Kookmin Card's preparations to adopt Apple Pay.
With in-house NFC terminal development and supply capability, conditions exist for the company to broaden its touchpoints amid these trends.
The operating margin gradually improved from 4.5% in 2022 to 5.4% in 2025. Operating cash flow turned positive to KRW 103.5 billion in 2025 from a negative figure in 2024. The debt ratio also declined from the 60%-plus range in 2022-2023 to 52.6% in 2025, reflecting improving financial stability.
Annual revenue grew for four consecutive years from 2022 to 2025, expanding from KRW 595.5 billion to KRW 836.3 billion. Second-quarter 2026 revenue reached KRW 237.6 billion, the highest among the last five quarters. The business structure combining VAN, PG, and terminal operations underpins stable top-line growth.
The fourth-quarter 2025 operating margin compressed to the high-2% range, sharply below other quarters in the 5-7% range. Owner-attributable net income also declined to KRW 36.6 billion in 2025 from KRW 43.6 billion in 2024. This earnings volatility makes it more difficult to project future quarterly results.
A long-standing structural trend has seen card companies reduce VAN fees by handling sales-slip purchasing directly or simplifying the process. Some large merchants have also begun operating their own VAN businesses, which could dilute the market power of established large VAN operators. This represents a structural factor that could weigh on the long-term profitability of the VAN business.
Toss and Naver Pay have entered the offline payment terminal business with their own devices, intensifying competition in payment infrastructure. The PG segment also has multiple competitors including KG Inicis and Kakao Pay.
The capital strength and user base of large platform operators could exert competitive pressure on established VAN and PG providers.
Changes in government policy related to VAN fees or electronic financial business regulation could affect the company's revenue structure. Past regulatory changes, such as the ban on rebates, have already influenced industry profit distribution. The direction of future payment market regulation warrants ongoing monitoring.
Existing VAN operators such as NICE Information & Communications, PG companies such as KG Inicis, and large platforms such as Toss, Naver Pay, and Kakao Pay are all competing simultaneously in the payment infrastructure market. Intensifying competition could lead to downward pressure on fee levels. Trends in market share changes warrant continued observation.
Since VAN and PG revenue is directly linked to card transaction volume, a slowdown in consumption could affect fee income. The fourth-quarter 2025 earnings compression may also reflect changes in the transaction environment alongside seasonal or one-off factors. Consumption indicators warrant continued monitoring.
The third-quarter 2026 report will provide a chance to check whether revenue and the operating margin have returned to third-quarter 2025 levels (around 6.9%).
It will be important to verify through industry news and disclosures whether Project Hangang Phase 2 actually launches and how the scope and transaction scale of the company's participation take shape.
The official launch timing of Apple Pay by Shinhan Card and KB Kookmin Card, and whether this translates into expanded NFC terminal replacement demand, should be monitored.
The FY2026 annual report and dividend disclosure will offer a chance to confirm finalized full-year results and whether the dividend policy continues.
Korea Information & Communications has sustained four consecutive years of revenue growth and gradual operating margin improvement on its VAN and PG businesses, while its financial structure has also stabilized, marked by a turn to positive operating cash flow and a lower debt ratio in 2025.
However, owner-attributable net income declined year-on-year in 2025 despite higher operating profit, and the fourth quarter of 2025 saw the operating margin compress sharply into the low single digits, underscoring persistent quarter-to-quarter earnings volatility.
On the growth side, NFC terminal replacement demand tied to Apple Pay expansion and participation in Phase 2 of the Bank of Korea's Project Hangang have emerged as new business opportunities.
On the other hand, pressure from card companies to reduce VAN fees, large merchants entering the VAN business directly, and the entry of large platforms such as Toss and Naver Pay into payment infrastructure remain structural competitive pressures.
The valuation trades below its historical average multiple range and appears to trade at a discount to net asset value, which can be interpreted as reflecting both earnings volatility and the competitive landscape simultaneously.
Tracking upcoming quarterly results and developments related to Project Hangang and Apple Pay will likely be the key variables going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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