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.
This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.