PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,200 per share · Prices as of the 2026-10-02 close
KONA I has shown a marked improvement in its earnings structure since 2025, driven by operating leverage from expanding regional currency payment volumes and growth in overseas metal card supply.
Consolidated operating margin rose to 28.8% in 2025, up sharply from 12.0% in 2023 and 14.1% in 2024
Double-digit revenue growth and rising net profit continued through the first two quarters of 2026
The regional currency platform serves about 60 local governments and processes roughly KRW 15 trillion in annual transactions, anchored in policy-driven demand
New businesses including MVNO, stablecoin/STO, and cultural economy ventures are emerging as diversification pillars
Policy and legal risks persist, including lawsuits over advance-payment interest income and criticism of the company's dominant contract position
KONA I is a fintech company built on two core pillars: smart card and digital identity (DID) business, and payment platform business.
Using its self-developed IC chip operating system called KONA, the company supplies smart cards and chips to roughly 90 countries through about 500 partners, holding the number four position in the global payment card market by share.
In the metal card segment, KONA I forms a two-player structure with CompoSecure of the United States.
The payment platform business centers on operating regional currency (local community currency) programs, serving contracts with about 60 local governments in Korea and processing roughly KRW 15 trillion in annual transaction volume with about 15 million cumulative users.
Overseas revenue grew from KRW 30.1 billion in 2020 to KRW 148.0 billion in 2025, with its share of total revenue rising from 22% to 48%.
New businesses include the MVNO service MONA, a regional economic circulation model combining stablecoins and security tokens (STO), an AI transformation (AX) initiative, and a cultural economy platform called The Hanok Heritage in Yeongwol, Gangwon Province.
Competitively, KONA I holds a largely entrenched position in the domestic regional currency platform market, while it competes against CompoSecure and other global players in the overseas metal card market.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩67.2B | ₩17.2B | 25.6% |
| 2025Q3 | ₩93.3B | ₩30.2B | 32.4% |
| 2025Q4 | ₩90.4B | ₩28.8B | 31.9% |
| 2026Q1 | ₩77B | ₩24.8B | 32.2% |
| 2026Q2 | ₩84.1B | ₩21.4B | 25.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩242.2B | ₩48.8B | ₩34.3B | 20.2% | 23.5% | 174.8% |
| 2023 | ₩280.2B | ₩33.7B | ₩29.2B | 12.0% | 16.6% | 166.6% |
| 2024 | ₩236.3B | ₩33.4B | ₩30.3B | 14.1% | 15.2% | 108.9% |
| 2025 | ₩309.2B | ₩88.9B | ₩74.6B | 28.8% | 28.8% | 116.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Consolidated revenue reached KRW 309.1 billion in 2025, up sharply from KRW 236.3 billion in 2024, while operating profit surged to KRW 88.9 billion from KRW 33.4 billion over the same period, lifting the operating margin from 14.1% to 28.8%.
Compared with margins of 12.0% in 2023 and 20.2% in 2022, this represents an unusually large improvement for a business that combines manufacturing and platform operations. Net profit attributable to owners also rose sharply to KRW 74.6 billion in 2025 from KRW 30.3 billion in 2024.
On a quarterly basis, the third quarter of 2025 posted revenue of KRW 93.3 billion, operating profit of KRW 30.2 billion, and owners' net profit of KRW 30.1 billion, approaching a quarterly record, followed by a solid KRW 90.4 billion in revenue and KRW 28.8 billion in operating profit in the fourth quarter.
Growth continued into 2026, with first-quarter revenue of KRW 77.0 billion, operating profit of KRW 24.8 billion, and net profit of KRW 23.4 billion, and second-quarter revenue of KRW 84.1 billion, operating profit of KRW 21.4 billion, and net profit of KRW 22.5 billion.
In the second quarter of 2026, however, roughly KRW 3.5 billion in one-off bonus expenses was recognized earlier than in the prior year, meaning underlying profit growth would likely have been larger excluding that item.
According to brokerage reports, the surge in operating profit was primarily attributed to fixed-cost operating leverage as regional currency transaction volume expanded from about KRW 9 trillion in 2024 to KRW 12 trillion in 2025. Growth in high-margin metal card shipments was also cited as a contributor to margin improvement.
The regional currency business is a policy-driven market heavily dependent on budget allocations by the central government and local governments.
For 2026, the regional currency budget was set at KRW 1.15 trillion as part of the base budget rather than a supplementary budget as in 2025, adding stability, with the combined national and local government issuance target for 2026 set at roughly KRW 24 trillion.
Given the low likelihood of operator turnover in policy-based programs, KONA I has maintained an entrenched market position over an extended period, though local-level contract renewal or operator-change disputes recur periodically, as seen in the recent controversy over the operator of Sejong City's Yeominjeon regional currency program.
In the overseas metal card market, demand for premium cards continues to grow despite the spread of mobile payments, and KONA I has been expanding its position by securing new client banks primarily in the United States.
Globally, CompoSecure of the United States remains the long-standing leader with deep relationships with major card issuers, while KONA I, as a later entrant, is in a phase of gradually expanding its share.
In domestic smart card and chip supply, KONA I has shown export growth rates that outpace peer companies in the sector.
In a March 2026 report, Samsung Securities estimated KONA I's 2026 revenue at KRW 321.0 billion (up 4% year over year) and operating profit at KRW 101.7 billion (up 14%), reflecting assumptions of roughly 20% growth in regional currency payment volume and around 10% growth in metal cards.
Actual results in the first half of 2026 tracked broadly in line with this growth trajectory, and the company has said metal card volumes tend to be concentrated in the second half, suggesting potential for further growth acceleration.
In the second quarter, the company supplied Edge-to-Edge metal cards, made entirely of metal, to a US bank for the first time in bulk, expanding its premium card portfolio in the US market.
On the new business front, the MVNO service MONA surpassed 130,000 cumulative subscribers in the second quarter and is working toward breakeven, with the average churn rate trending lower in the first half.
At a field trip event in July 2026, the company unveiled a mid- to long-term strategy to expand regional currency beyond simple payment and settlement into a "circular economy platform" combining blockchain, stablecoins, and security tokens (STO), and it has continued signing new agreements, including a memorandum of understanding with Bugook Securities on security tokens and digital assets and being selected as the preferred bidder for a settlement service contract with a taxi cooperative in Daegu.
The company has also stated that The Hanok Heritage, its cultural economy venture, is showing early traction ahead of its first anniversary, with overseas guests accounting for about 30% of visitors.
KONA I's earnings have shifted from a period of relatively low profitability in 2023-2024 to a clear profit recovery phase from 2025 onward, and market pricing appears to reflect a substantial portion of this improving earnings trajectory.
Brokerages have laid out growth theses centered on operating leverage from expanding regional currency payment volumes and growth in the metal card market, but these are individual analyst estimates, and actual outcomes will depend on regional currency budget allocations and overseas order cycles.
On shareholder returns, the company has set a target under its 2026-2028 three-year dividend policy to return at least 25% of consolidated net income as cash dividends, and it substantially increased its dividend for the 2025 fiscal year under this policy relative to the prior year.
That said, stronger shareholder returns do not resolve the ongoing disputes and controversies surrounding its local government contracts, and given the policy-dependent nature of the business, earnings volatility remains a relevant consideration.
Since the level of the share price relative to net assets or earnings could shift with future results and the confirmation of regional currency budgets, it is reasonable to weigh the durability of the earnings improvement alongside any point-in-time valuation figure rather than in isolation.
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 2026-09-04
Regional currency payment volume grew from KRW 9 trillion in 2024 to KRW 12 trillion in 2025, driving fixed-cost operating leverage, and budget stability improved in 2026 as the program was folded into the base budget.
The government's 2026 total issuance target of roughly KRW 24 trillion suggests room for further growth. The low likelihood of operator turnover inherent to policy-based programs also supports a stable revenue base.
Despite the spread of mobile payments, demand for premium metal cards continues to rise in the global card market. Metal card supply volume grew 22% year over year in the second quarter, and the company expanded its portfolio by supplying Edge-to-Edge metal cards to a US bank in bulk for the first time. Metal card volumes tend to be concentrated in the second half, leaving room for further growth.
The MVNO service MONA is working toward breakeven, with cumulative subscribers surpassing 130,000 in the second quarter and churn rates trending lower.
Multiple new business pillars are progressing simultaneously, including a regional economic circulation model combining stablecoins and STO, an AI transformation initiative, and the cultural economy platform The Hanok Heritage.
New contracts continue to emerge, including a memorandum of understanding with Bugook Securities and selection as settlement operator for a Daegu taxi cooperative.
The regional currency business depends heavily on budget allocations from the central government and local governments, and there was a period from 2022 to 2024 when results weakened because the central government excluded the program from its base budget.
Stability improved in 2026 with the program's inclusion in the base budget, but a future shift in policy direction could again shrink payment volume and operating leverage. Budget allocations for 2027 and beyond have not yet been confirmed.
Lawsuits over the return of interest income on regional currency advance payments have been filed by or against local governments such as Yongin City and Bucheon City, and controversy continues over the replacement of the operator for Sejong City's Yeominjeon program.
In Gyeonggi Province and elsewhere, criticism has repeatedly been raised over the fairness of the operator selection process. Recurrence of such controversies could introduce uncertainty into future contract wins or renewals with local governments.
A significant portion of revenue comes from dollar-denominated overseas sales, making results sensitive to exchange rate movements.
The metal card business also sees volume fluctuate by quarter depending on the ordering cycles of overseas financial institutions, making it difficult to judge competitiveness from any single quarter's results. Should the Korean won strengthen, the won-converted value of overseas revenue could decline.
The regional currency business depends on central and local government budget policy, and any change in the method of budgeting (base budget versus supplementary budget) or the scale of support could directly affect payment volume and profit.
There is also an ongoing possibility that contract structures could change at the individual local government level, as seen in the case of the operator replacement for Sejong City's Yeominjeon program.
Some lawsuits with local governments over the return of interest income on advance payments have concluded while others remain ongoing, and political and administrative controversy tied to state audit findings continues.
Criticism from local political circles regarding the fairness of the operator selection process has also recurred.
In the overseas metal card market, longtime leader CompoSecure maintains strong relationships with major card issuers, meaning KONA I, as a later entrant, must manage competitive intensity as it seeks to expand share.
In the domestic regional currency platform market, competitors such as Nice Information Service have in some cases been selected as preferred bidders in local tenders, indicating that KONA I's dominant position is not absolute.
The preliminary third-quarter 2026 earnings disclosure is expected around this time, offering a check on whether the second-half metal card peak season is reflected and on the trend in regional currency payment volume.
Check whether the scale of the regional currency budget for 2027 is finalized during National Assembly deliberations on the government budget bill.
Monitor developments in the controversy and related audit or administrative proceedings over the operator replacement for Sejong City's Yeominjeon regional currency program.
Monitor whether additional rulings emerge in the lawsuits with local governments such as Yongin City and Bucheon City over the return of advance-payment interest income.
Having passed through a period of relatively low profitability in 2023-2024, KONA I has shown a clear earnings recovery since 2025, driven by operating leverage from expanding regional currency payment volumes and growth in overseas metal card supply.
Double-digit revenue growth and rising net profit continued into the first half of 2026, alongside simultaneous progress in diversification efforts spanning MVNO, stablecoin/STO, and cultural economy businesses.
That said, the regional currency business remains dependent on government and local government budget policy, meaning its growth trajectory could shift with changes in policy direction, and legal and administrative risks persist, including lawsuits over the return of advance-payment interest income and controversy over the fairness of operator selection processes.
The overseas metal card business benefits from a premiumization trend, but competition with established leaders such as CompoSecure, quarter-to-quarter order variability, and foreign exchange volatility are also factors to weigh.
Some brokerages have issued target prices citing these growth drivers, but these are individual analyst estimates, and their realization will depend on future results and the confirmation of policy directions.
Ahead of any investment decision, it would be reasonable to monitor the upcoming third-quarter earnings disclosure together with developments in the regional currency budget and related litigation.
Report written 2026-09-05 · Data as of 2026-09-04
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