1. Q2 Earnings: What Happened?

KECA recorded revenue of KRW 9.3 billion, operating profit of KRW 1.2 billion, and net income of KRW 0.9 billion in Q2 2025. While revenue slightly decreased compared to Q1, operating profit and net income fell by 42.9% and 43.8% respectively, indicating a decline in profitability.

2. Why the Decline in Profitability?

The decline in sales in the certification solutions sector and intensified market competition are analyzed as the main causes. Following the revision of the Electronic Signature Act, competition has intensified, posing a significant challenge to KECA’s existing business model.

3. KECA’s Future: What’s Next?

Based on its stable public certification service, KECA is striving to secure future growth engines by investing in new technologies such as AI and blockchain. However, uncertainties surrounding new businesses and exchange rate volatility can act as major risk factors.

  • Positive Factors: Solid financial structure, growth in global certification services, investment in AI and new technologies.
  • Negative Factors: Decline in sales in the certification solutions sector, sensitivity to exchange rate fluctuations, intensified market competition.

4. What Should Investors Do?

Currently, KECA presents a mixed bag of positive and negative factors. Therefore, a cautious approach is required rather than aggressive investment. It is advisable to make investment decisions after confirming the trend of profitability improvement and concrete results of new businesses in future quarterly earnings announcements. Focus on long-term growth potential rather than short-term events.