What it is
ROE is net income divided by total equity — how many won of profit each 100 won of shareholder capital generated over a year.
Formula
ROE = net income ÷ total equity × 100%. A company with KRW 1 trillion of equity that earns KRW 150 billion has an ROE of 15%.
What to keep in mind
Heavy borrowing can inflate ROE by keeping equity small, so check leverage too. Companies with consistently high ROE tend to earn higher P/B multiples.
Where to check
Both net income and total equity come from DART periodic reports. Look at several years rather than one quarter: heavy dividends or share buybacks shrink equity and can lift ROE without the business changing (retiring those treasury shares does not shrink it further).
This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.