PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩400 per share · Prices as of the 2026-10-02 close
Hancom is repositioning itself from an office software company into an AI agent platform firm, but its consolidated results continue to swing sharply from quarter to quarter depending on the project schedule of its defense and safety equipment subsidiary Hancom Life Care.
In July 2026 the company changed its corporate name from Hangul and Computer to Hancom, along with its stock ticker name, formally signaling its AI transformation to capital markets.
First-half 2026 AI product revenue reached KRW 13.5 billion, already surpassing full-year 2025 AI revenue of KRW 8.9 billion, with AI's share of total quarterly revenue rising to 15.7% in the second quarter.
Subsidiary Hancom Life Care rebounded sharply in Q2 2026 as completion of GLTD (ground laser target designator) deliveries drove revenue and operating profit up 103% and 168% year-on-year, respectively.
Consolidated net income attributable to owners recovered from KRW 13.9 billion in 2024 to KRW 34.4 billion in 2025, but results swung sharply in Q4 2025 and Q1 2026 due to subsidiary weakness.
A planned beta launch of the 'Sovereign Agentic OS' in the second half, along with expansion into Japan and Europe, will test the company's execution of its business model transition.
Founded in 1990, Hancom is Korea's leading office software company, and in July 2026 it formally changed its corporate name from Hangul and Computer to Hancom, along with its KOSDAQ ticker name, to signal its transition into an AI company.
Its core business is office software and solutions centered on Hancom Office, backed by a domestic customer base of more than 200,000.
The company has been growing AI revenue by upselling AI products such as Hancom Assistant and Hancom Pedia to its existing office customer base, with AI revenue reaching KRW 13.5 billion in the first half of 2026 alone, already exceeding the full-year 2025 figure of KRW 8.9 billion.
As of the reporting date, Hancom has 48 affiliated companies in total, including 20 consolidated subsidiaries, one of which is listed and 19 unlisted.
Its flagship subsidiary Hancom Life Care, listed on the KOSPI, manufactures defense and fire-safety equipment such as gas masks and air respirators, holding over 90% market share in the domestic air respirator market.
Hancom Life Care recently signed a five-year exclusive domestic distribution and technology cooperation agreement with France's Shark Robotics to expand into unmanned firefighting robots.
Overseas, the company is using Japan as a beachhead, forming partnerships with authentication, electronic payment, and video security firms, while also pursuing a financial joint venture with Japan's Kiraboshi Financial Group.
In Europe, it is working with a Polish R&D firm and a local AI company to localize its agentic OS for the European market.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩86.4B | ₩16.4B | 19.0% |
| 2025Q3 | ₩84.1B | ₩12.4B | 14.7% |
| 2025Q4 | ₩95.4B | -₩700M | −0.8% |
| 2026Q1 | ₩63.6B | ₩8.6B | 13.5% |
| 2026Q2 | ₩120B | ₩14.3B | 12.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩242B | ₩25B | ₩46.8B | 10.3% | 14.8% | 44.5% |
| 2023 | ₩271.1B | ₩34.2B | ₩15.1B | 12.6% | 4.5% | 34.3% |
| 2024 | ₩304.8B | ₩40.4B | ₩13.9B | 13.3% | 4.0% | 40.4% |
| 2025 | ₩326.7B | ₩36.4B | ₩34.4B | 11.1% | 9.4% | 46.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22
On an annual basis, consolidated revenue expanded steadily from KRW 242.0 billion in 2022 to KRW 271.1 billion in 2023, KRW 304.8 billion in 2024, and KRW 326.7 billion in 2025.
Operating profit rose from KRW 25.0 billion in 2022 to KRW 34.2 billion in 2023 and KRW 40.4 billion in 2024, before slipping slightly to KRW 36.4 billion in 2025, with the operating margin declining from 13.3% to 11.1%.
Net income attributable to owners, however, jumped from KRW 13.9 billion in 2024 to KRW 34.4 billion in 2025, marking a clear earnings recovery.
In 2023, despite owners' net income of KRW 15.1 billion, total consolidated net income was negative KRW 27.5 billion, reflecting a large non-controlling interest effect, while the 2022 owners' net income of KRW 46.8 billion stood notably higher than in other years.
On a quarterly basis, Q3 2025 revenue of KRW 84.1 billion and operating profit of KRW 12.4 billion were solid, but Q4 2025, despite revenue rising to KRW 95.4 billion, swung to an operating loss of KRW 0.75 billion and an owners' net loss of KRW 3.7 billion.
Q1 2026 returned to profitability with revenue of KRW 63.6 billion, operating profit of KRW 8.6 billion, and owners' net income of KRW 9.0 billion, and Q2 2026 revenue surged to around KRW 120 billion, with operating profit of KRW 14.3 billion and owners' net income of KRW 22.1 billion, the highest of the past five quarters.
This Q2 improvement was underpinned by Hancom Life Care's defense segment, where revenue and operating profit grew 103% and 168% year-on-year, respectively, driven largely by completion of first- and second-phase ground laser target designator (GLTD) deliveries.
Owners' net income exceeding operating profit has been a recurring pattern in recent quarters, indicating that non-operating contributions have also played a role in earnings swings.
Korea's software market grew a solid 7% year-on-year to KRW 44.4 trillion as of 2024.
According to market researcher KRG, Korea's AI market is projected to grow 25% year-on-year to KRW 6.419 trillion in 2026, as AI models evolve from large language models to multimodal and, further, to autonomous AI agent models, accelerating workflow automation across industries.
The office software market remains competitive given global alternatives, but Hancom holds numerous public-sector references, including the National Assembly Library and the National Assembly Secretariat.
However, the government's move to restrict HWP file attachments in the public sector, along with OpenAI's announcement that ChatGPT would support HWP and HWPX files, reflects a broadening openness in the document ecosystem that is reshaping the competitive landscape once centered on proprietary document formats.
In defense and safety equipment, rising global defense budgets are driving demand growth in emerging markets such as Asia and the Middle East, with Hancom Life Care leveraging its over-90% share of the domestic air respirator market to respond.
In the AI agent space, both global tech giants and startups are increasingly active, making sovereignty-focused, data-secure solutions targeting public and regulated industries an emerging axis of competition.
The company has disclosed an earnings outlook targeting standalone 2026 revenue of KRW 210 billion and operating profit of KRW 60 billion. In the second half, it plans to unveil a beta version of its Sovereign Agentic OS, which integrates and manages multiple AI agents, with commercialization targeted for 2027.
In Europe, it is localizing the agentic OS in partnership with a Polish R&D firm and a local AI company, while in Japan it is building a market foundation through alliances with authentication, electronic payment, and security firms.
Hancom Life Care will sequentially deliver next-generation K5 gas masks to the military from July through October, supplying roughly 80,000 units by 2026 under a contract worth about KRW 18.5 billion.
Remaining GLTD volumes will also be recognized as revenue in the second half, while revenue from urban combat training projects and the Army's Korea Combat Training Center (KCTC) system is expected to be recognized in earnest from 2027.
Brokerage forecasts have also emerged: the Korea IR Service's research center estimated in a June 2026 report that Hancom's 2026 consolidated revenue would reach KRW 370.3 billion with operating profit of KRW 47.6 billion, while Kiwoom Securities forecast in a June 2026 report consolidated 2026 revenue of KRW 365.4 billion and operating profit of KRW 47.9 billion, setting a target price of KRW 34,000.
Hancom's share price is being shaped at the intersection of its transformation narrative from an office software company to an AI agent platform firm, and consolidated results that swing with subsidiary performance.
On an annual basis, the company moved past a loss-affected 2023 to a recovering earnings trend in 2024-2025, and quarterly results showed a clear improvement again in the first half of 2026.
On relative valuation, the Korea IR Service's research center noted in a June 2026 report that the multiple stood at a lower level compared to major domestic software peers.
Dividends have consisted of modest annual cash payouts, with shareholder returns representing a relatively small share relative to earnings growth. On target prices, Kiwoom Securities set a target of KRW 34,000 in a June 2026 report, reflecting expectations for earnings improvement driven by AI revenue expansion.
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 2026-08-22
AI revenue's share of total sales, below 5% in 2025, expanded to 15.7% of total revenue by Q2 2026. The model relies on upselling AI packages to an existing 200,000-customer base, raising revenue per customer without new customer acquisition costs.
If the Sovereign Agentic OS launches in beta in the second half, there is room to expand the revenue base into public, defense, and financial sectors where data sovereignty is critical.
Hancom Life Care saw revenue and operating profit jump 103% and 168% year-on-year, respectively, in Q2 2026 upon completion of first- and second-phase GLTD deliveries. Sequential K5 gas mask deliveries and remaining GLTD volumes are set to further support results in the second half.
The unmanned firefighting robot business developed with France's Shark Robotics is also emerging as a new growth pillar.
In Japan, the company is building a local business foundation through partnerships with authentication, electronic payment, and video security firms, and by pursuing a joint venture with a financial holding company. In Europe, it is localizing its agentic OS in cooperation with a Polish R&D firm and a local AI company.
An open-sourced document parsing technology also drew attention from the global developer community, demonstrating technical credibility.
Delays in Hancom Life Care's defense projects dragged down consolidated results in both Q4 2025 and Q1 2026. The Q2 improvement was also heavily dependent on the completion timing of a specific contract, the GLTD project.
Consolidated results could continue to swing significantly by quarter depending on the ordering and delivery schedule of defense projects.
While AI revenue's share is growing quickly, its absolute size remains in the low double-digit percentage range of parent-company revenue. Overseas revenue accounts for only about 1% of total software segment revenue, indicating global commercialization is still at an early stage.
The Sovereign Agentic OS is also only at the beta stage in the second half, meaning its actual revenue contribution can only be confirmed after commercialization.
The government's policy restricting HWP file attachments and OpenAI's announcement of ChatGPT support for HWP and HWPX files could dilute Hancom's traditional document format competitiveness.
While the company frames this positively in terms of its AI strategy, accelerating openness in the document ecosystem could also weaken the defensibility of its existing office software revenue.
Hancom is transitioning its identity from an office software firm to an AI agent OS firm, but its core Sovereign Agentic OS remains at the beta stage. Changes to the legacy revenue model, such as ending annual-edition packages, could affect the revenue structure in the near term.
Since the AI business and expansion into private and overseas markets are all at an early stage, a fundamental transformation may require more time.
Hancom Life Care's defense projects see revenue recognition timing vary significantly by contract delivery schedule. Delays in the GLTD project were a key factor behind weak results in Q4 2025 and Q1 2026.
Future delays in ordering or delivery for new projects such as K5 gas masks or KCTC could again weigh on consolidated results.
The government's restriction on HWP attachments in the public sector, the spread of web-based installation-free HWP viewing tools, and OpenAI's announcement of HWP and HWPX support are all factors that could erode Hancom's traditional document format dominance.
In the defense segment, institutional discussions are underway regarding cost structures such as pricing ratios in defense procurement, and related regulatory changes could affect profitability.
Based on the regular disclosure calendar, Q3 results should be disclosed around this time, and it will be important to check whether AI revenue's share continued to expand and how much of Hancom Life Care's K5 gas mask and remaining GLTD volumes were reflected.
The beta release of the Sovereign Agentic OS and market reaction should be checked. The key is whether a substantive revenue base is being established for the planned 2027 commercialization.
Whether Hancom Life Care completes sequential K5 gas mask deliveries should be checked. The completion timing of remaining volumes under the roughly KRW 18.5 billion contract directly affects second-half results.
Progress on the financial joint venture with Japan's Kiraboshi Financial Group and concrete outcomes of the European (Poland) agentic OS localization project should be checked.
Hancom is in the process of transitioning its business identity from an office software company to an AI agent platform firm, a shift it has formalized in capital markets through its corporate and ticker name change.
The rapid growth in AI revenue's share is a positive, but its absolute scale and the company's overseas revenue share remain at an early stage.
Consolidated results have shown large quarterly swings tied to the delivery schedule of subsidiary Hancom Life Care's defense projects, as illustrated by weakness in Q4 2025 and Q1 2026 followed by a sharp improvement in Q2 2026.
On an annual basis, an earnings recovery trend continued through 2024-2025, and a clear improvement reappeared in the first half of 2026.
In the second half, a planned beta launch of the Sovereign Agentic OS and completion of K5 gas mask deliveries at Hancom Life Care will be key variables shaping the direction of coming quarterly results.
The government's document ecosystem openness policy and defense project scheduling risk remain factors that warrant continued monitoring.
Report written 2026-09-05 · Data as of 2026-09-04
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