PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩30 per share · Prices as of the 2026-10-02 close
Savezone I&C is known for owning all six of its outlet properties outright, drawing attention to its real-estate asset value, but structural softness in offline retail and a one-off item in recent quarterly earnings complicate the picture.
FY2025 consolidated revenue was KRW 118.1bn with operating profit of KRW 4.59bn, down from KRW 7.78bn a year earlier, lowering the operating margin to 3.9%.
Q2 2026 net income attributable to owners jumped to KRW 31.44bn, far exceeding that quarter's operating profit of KRW 2.69bn, suggesting a non-operating one-off item.
The company owns all six of its outlet stores nationwide (Nowon, Seongnam, Daejeon, Gwangmyeong, Bucheon Sangdong, Jeonju Core), which has drawn market attention to its real-estate asset value.
The growth of online retail channels continues to structurally pressure the offline outlet business format.
Ownership is concentrated among the controlling shareholder and related parties, limiting the free float.
Savezone I&C is an outlet-format discount store operator established in 2002 through a spin-off of the retail business division of Hanshin Engineering & Construction.
It operates six domestic stores, selling seasonal and planned merchandise from apparel brands at everyday discount prices, alongside food, household goods, and amenities such as culture and sports centers in a mall-style outlet format.
As of the third quarter of 2023, the revenue mix was roughly 53% apparel and accessories, 31% food, and 16% other categories, reflecting an apparel-centered structure.
Its stores are located in densely populated residential areas across the greater Seoul area and regional metropolitan cities, leveraging accessibility, with a community-focused, lowest-price strategy aimed at price-sensitive core customers.
The controlling shareholder is its parent, Savezone Co., with Chairman Yong Seok-bong controlling the broader group. The affiliated parent company Savezone separately operates additional stores such as Hwajeong, Ulsan, and Haeundae, bringing the total number of Savezone-branded stores across the group to nine.
Competition extends beyond hypermarkets and department stores to online retailers such as Coupang, creating structural competitive pressure across the offline outlet format.
Much of the company's store real estate was acquired in the years immediately following the Asian financial crisis and into the early 2000s, and the gap between book value and current market value of these properties is a frequently discussed topic in the market.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩29.4B | ₩2.7B | 9.1% |
| 2025Q3 | ₩27.9B | -₩700M | −2.5% |
| 2025Q4 | ₩31.5B | ₩1.2B | 3.8% |
| 2026Q1 | ₩28.9B | ₩1.3B | 4.5% |
| 2026Q2 | ₩31.3B | ₩2.7B | 8.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩119.4B | ₩9.2B | ₩9.2B | 7.7% | 2.0% | 23.6% |
| 2023 | ₩123.8B | ₩11B | ₩13.6B | 8.9% | 2.9% | 23.3% |
| 2024 | ₩117.2B | ₩7.8B | ₩12.6B | 6.6% | 2.6% | 19.1% |
| 2025 | ₩118.1B | ₩4.6B | ₩7.8B | 3.9% | 1.6% | 19.5% |
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
FY2025 consolidated revenue of KRW 118.1bn was roughly in line with FY2024's KRW 117.2bn, but operating profit fell sharply to KRW 4.59bn from KRW 7.78bn, pulling the operating margin down from 6.6% to 3.9%.
Compared with operating margins of 7.7% and 8.9% in 2022 and 2023 respectively, margins have steadily compressed over the past two years. Net income attributable to owners has declined for three straight years, from KRW 13.62bn in 2023 to KRW 12.64bn in 2024 and KRW 7.75bn in 2025.
On a quarterly basis, operating profit swung to a loss of KRW 0.68bn in Q3 2025, and remained subdued in Q4 2025 (KRW 1.18bn) and Q1 2026 (KRW 1.30bn) relative to prior levels.
Operating profit then recovered to KRW 2.69bn in Q2 2026, but net income attributable to owners for that same quarter jumped to KRW 31.44bn, more than ten times the operating profit figure.
This gap cannot be explained by operating activity alone and points to a likely non-operating one-off item (such as a gain on asset disposal); the specific details warrant confirmation through future disclosures.
Operating cash flow was solid at KRW 30.14bn in 2022 and KRW 15.65bn in 2023, turned negative at KRW -0.32bn in 2024, and returned to positive territory at KRW 12.44bn in 2025. The debt ratio declined from 23.6% in 2022 to 19.5% in 2025, indicating that overall balance-sheet health has remained stable.
South Korea's offline retail sector is generally seen as facing a continued erosion of market position as consumption patterns have shifted online since the pandemic, spurred by the growth of e-commerce players such as Coupang.
The department-store-format outlet segment in which Savezone I&C operates must compete simultaneously with hypermarkets and online retailers, exposing it to sector-wide structural headwinds.
However, the company differentiates itself with an asset structure built on owning all six of its store sites outright, avoiding the rent burden faced by tenant-based retailers.
In the domestic equity market, stocks trading at market capitalizations low relative to their asset value have drawn attention amid discussion of the government's low-PBR corporate value-up policy direction, and Savezone I&C has frequently been cited in such thematic discussions.
Relative to industry peers, no clear plans for new store openings or large-scale capital investment have been confirmed, suggesting the company's current position centers on maintaining stable operations of its existing store network.
No specific revenue or profit guidance from company management has been confirmed publicly.
On a standalone (non-consolidated) basis, Q1 2026 revenue declined 1.8% year-on-year and operating profit fell 7.9%, while net income rose 11.6%, suggesting that factors outside the core business continue to influence the bottom line.
Regarding the Bucheon Sangdong store, there appear to have been developments related to a real estate sale contract and fixed-asset acquisition following termination of a lease, and the progress of such individual store-level real estate matters warrants further confirmation through future disclosures.
No recent concrete announcements regarding online-channel expansion or new business diversification have been confirmed, suggesting operations will likely remain centered on the existing six stores for now.
Given that the large net income increase in Q2 2026 is presumed to stem from a one-off factor, whether operating profit itself recovers in subsequent quarters from the second half onward is likely to be a key point to watch.
The fact that the company's owned store sites and buildings exceed its market capitalization in value has been a recurring topic of market discussion, and the share price has at various past points traded at a substantial discount to net asset value.
However, this asset-value discussion is a separate matter from actual profit realization, and the steady decline in operating margin over recent years stands in contrast to the asset-value narrative.
The sum of net income over the most recent four quarters has increased sharply due to the one-off gain booked in Q2 2026, and profitability metrics calculated on that basis may sit in a lower range than historical trading bands, warranting caution in interpretation.
On dividends, payouts have continued despite recent earnings softness, which is worth noting, though how the payout level compares with the sector average will vary with the prevailing share price.
Overall, this can be characterized as a period in which asset-value factors and core-business profitability pressures coexist.
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
Owning all six of its outlet properties outright has repeatedly drawn market attention to the company's real-estate asset value.
Most sites are understood to have been acquired in prime commercial areas between the aftermath of the Asian financial crisis and the early 2000s, and the gap between book value and market value has been a central point of discussion. This asset base is cited as a structural advantage differentiating it from tenant-based retailers.
The debt ratio declined from 23.6% in 2022 to 19.5% in 2025, indicating maintained financial stability. Apart from 2024, operating cash flow has generally been positive. Dividend payments have continued even amid earnings softness, showing continuity in shareholder returns.
In a past instance, the parent-company controlling shareholder Savezone Co. and related parties bought shares of the subsidiary on the open market to raise their stake, occurring during a period when the gap between market value and asset value was pronounced.
The high ownership stake held by the controlling shareholder and related parties is a factor worth noting for management stability. This reflects a specific historical episode, however, and whether similar buying is occurring currently requires separate confirmation.
The operating margin fell for three straight years, from 8.9% in 2023 to 6.6% in 2024 and 3.9% in 2025. The margin compression despite relatively stable revenue suggests possible structural factors such as SG&A cost burden or declining store efficiency.
Amid ongoing competitive pressure across offline retail, the timing of any margin recovery has not yet been confirmed.
Quarterly volatility has been significant, including an operating loss in Q3 2025, and Q2 2026 saw net income exceed operating profit by more than tenfold. Such sharp net income swings driven by non-operating factors make it difficult to assess whether the core business is genuinely improving. Caution is warranted in interpreting results until detailed disclosures clarify the underlying items.
The growth of online retail channels is seen as continuing to erode the position of the offline outlet business format. With no confirmed plans for new store openings or large-scale investment, the company appears to be in a defensive posture focused on maintaining existing stores rather than pursuing growth momentum. Should the shift of consumption toward online continue, the long-term revenue base itself could face pressure.
Offline retail continues to face structural revenue pressure from e-commerce growth. If the pace of the shift toward online consumption exceeds expectations, the revenue base of the existing store network could weaken further. This is a sector-wide risk that individual company responses may not fully offset.
While there has been market discussion that the real estate's actual market value exceeds book value, this represents unrealized potential value, and whether it will lead to an actual sale or revaluation remains uncertain.
Liquidation value estimates can vary substantially depending on timing and methodology, limiting their usefulness as a reference metric. Even if an individual store's real estate transaction proceeds, its terms and timing are not predetermined.
With a high ownership concentration among the controlling shareholder and related parties, the proportion of freely tradable shares may be relatively limited. This can be a factor affecting trading liquidity and price volatility.
The direction of minority shareholder protection and shareholder return policy could also be influenced by changes in the government policy environment.
The Q3 2026 quarterly report filing should be checked to determine whether the large Q2 2026 net income increase was indeed a one-off item and whether operating profit is genuinely recovering.
The progress of real-estate-related contracts (sale or lease) for individual stores such as Bucheon Sangdong, and whether additional asset-related disclosures are filed, warrant monitoring.
The FY2026 annual business report (confirmed full-year figures) and dividend decision disclosure should be checked to confirm the annual operating margin trend and whether the shareholder return policy continues.
Follow-up measures or tax and regulatory changes related to the government's low-PBR corporate value-up policy could affect the asset-value discussion, warranting continued monitoring of related policy developments.
Savezone I&C is a stock repeatedly discussed for the real-estate asset value tied to its full ownership of all six outlet stores, yet its core offline retail operating margin has declined for three straight years, from 8.9% in 2023 to 3.9% in 2025.
Q2 2026 saw net income attributable to owners surge to KRW 31.44bn, a wide gap versus that quarter's operating profit of KRW 2.69bn, suggesting a possible non-operating one-off item whose specifics warrant confirmation through future disclosures.
On the balance sheet, stability has been maintained, with the debt ratio declining from 23.6% in 2022 to 19.5% in 2025, and dividend payments have continued despite earnings softness.
Structural competitive pressure on the offline outlet format from growing online retail channels persists, with no confirmed plans for new store openings or large-scale investment.
The high ownership concentration among the controlling shareholder and related parties, which may limit free float, is another factor to consider. Going forward, whether operating profit itself recovers and how real-estate-related asset transactions actually progress are likely to be the key points to watch.
Report written 2026-09-05 · Data as of 2026-09-04
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