Hello, this is the Korean financial blog Daily Stock.
Today, we will analyze the sales growth rate of AI software and SaaS (Software as a Service), which are emerging as powerful growth trends in the KOSDAQ market, and closely examine the recent performance and future stock price scenarios of key companies.
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Summary
According to a survey released by the Ministry of Science and ICT, the overall revenue of the domestic cloud market grew by 25.2% year-on-year, surpassing 9 trillion KRW for the first time.
In particular, the SaaS sector's revenue increased by 24.2% to 3.2168 trillion KRW, proving a visible trickle-down effect from generative AI.
Let's analyze the contrasting performance structures of Hancom (030520), which successfully transformed from traditional packaged software to AI subscription-based agents, and Emro (058970), which is pioneering global SRM SaaS.
Market Overview
Recently, the KOSDAQ market has been reacting sensitively to whether companies can establish paid monetization models that translate into actual revenue, rather than relying solely on expectations of technological development.
Hancom is rapidly penetrating public and financial sectors with practical AI agents such as 'Hancom Assistant' and 'Hancom Pedia', repeatedly renewing its record-high performance since its founding.
On the other hand, Emro, which is pursuing expansion into North America and Europe backed by Samsung SDS, is passing through a temporary profitability slowdown due to preemptive CAPEX execution for next-generation solution development and global marketing costs.
As of the close of June 16, 2026, domestic and foreign supply and demand conditions show a cautious wait-and-see attitude.
According to Daily Stock's proprietary Fear & Greed Index, the Kospi Fear & Greed Index points to Neutral (53.7, compared to 48.3 a week ago, 58.5 a month ago, and 48.9 three months ago).
The Nasdaq Fear & Greed Index was compiled as Neutral (41.3, compared to Fear at 32.4 a week ago, Greed at 63 a month ago, and Greed at 61.1 three months ago), indicating that investor sentiment is in a somewhat stable adjustment phase.
Financial Analysis
Hancom met market expectations in the first quarter of 2026, with parent-company revenue of 46.5 billion KRW and operating profit of 17.6 billion KRW, up 2.4% and 2.7% year-on-year, respectively.
Breaking away from its traditional reliance on installed software in the public sector, the company significantly raised the revenue share of non-installation SaaS, such as web-based editors, driving stable profit growth.
Meanwhile, Emro broke its annual revenue record in 2025 by reaching 83.98 billion KRW, but its parent-company revenue in the first quarter of 2026 plummeted to 14.8 billion KRW year-on-year.
Moreover, due to an increase in R&D costs for supplying global integrated SRM solutions, it swung to a loss with a first-quarter operating loss of 2.8 billion KRW.
| Classification | Hancom (030520) | Emro (058970) |
|---|---|---|
| **Q1 2026 Revenue** | Parent: 46.5B KRW / Consolidated: 63.6B KRW | Parent: 14.8B KRW |
| **Q1 2026 Operating Profit** | Parent: 17.6B KRW / Consolidated: 8.5B KRW | Operating Loss: 2.8B KRW (Swung to Loss) |
| **Key Momentum** | Launch of twin-type Agentic OS & expanding supply to Parliament and financial sectors | Visible progress in global SaaS 'Caidentia' contract wins in North American & European markets |
| **Financial Stability** | Parent operating profit margin in the 29% range, maintaining top-tier profitability | Debt ratio at 16%, holding 24.9 billion KRW in available cash and cash equivalents |
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Valuation
Hancom is completely restructuring its valuation framework from a simple packaged office suite company to a global AI platform enterprise.
Whether it can achieve this year's annual revenue guidance of 210 billion KRW will determine if its Price-to-Earnings (PER) multiple can scale to the next level.
Emro's short-term earnings setback has pushed its trailing PER to approximately 163.8 times, indicating some pressure in indicators.
However, with 24.9 billion KRW in available cash and a robust order backlog reaching 79.1 billion KRW, there is ample room for a rapid turnaround once order conversion begins.
Analyst and Institutional Insights
Investment industry experts point out that SaaS accounts for about 70% of domestic cloud companies, highlighting that the presence of killer services in individual companies will decide long-term survival.
In particular, Hancom is attracting favorable institutional flows because its B2B ecosystem penetration is highly stable, with the selection rate of AI packages reaching nearly 54% upon contract renewals.
Regarding Emro, the dominant view is that the global expansion scenario linked with its largest shareholder, Samsung SDS, remains valid.
If 'Caidentia,' the smart procurement solution established in North America, successfully penetrates large European high-tech manufacturers, explosive overseas revenue growth is expected to follow.
Risk Factors
The biggest external risk is the overall rise in discount rates for IT growth stocks, driven by the prolonged high-interest-rate environment and the Korean Won-to-US Dollar exchange rate hovering around the 1,500 range.
Internally, there is an accumulation of cloud infrastructure maintenance costs and excessive developer payroll expenses arising during the process of upgrading SaaS businesses.
Particularly for Emro, if large enterprises' SCM IT infrastructure investments are further delayed or if marketing expenses for overseas operations continue to flow out until the end of the year, the pace of earnings recovery could be significantly delayed.
Investment Outlook
The KOSDAQ AI SaaS sector has clearly shifted in character from being driven by thematic expectations to an empirical validation phase of upward-trending earnings.
Hancom boasts excellent downside stability due to its strong corporate customer base and is targeting to upgrade its profit structure by commercializing its 'Agentic OS.'
Emro suffered an earnings shock in the first quarter, but is seeking a breakthrough in long-term overseas orders backed by an exceptionally low debt ratio (16%) and its partnership momentum with Samsung.
Investors are advised to monitor substantive revenue flows, such as actual license renewal rates and the signing of overseas supply contracts, rather than focusing on short-term stock price fluctuations.
Investor Checklist Q&A
Q1. Is the overall growth of the domestic cloud market and SaaS industry continuing?
A1. According to the Ministry of Science and ICT, domestic cloud revenue has grown steadily at an annual average of over 23%, surpassing 9 trillion KRW for the first time in history, with SaaS companies accounting for 69.8% of the total provider landscape.
Q2. Are there tangible metrics showing the revenue performance of Hancom's AI business?
A2. An impressive 54% of existing B2B SaaS customers additionally selected AI packages over simple subscription renewals during contract roll-overs, successfully expanding the proportion of AI revenue.
Q3. What led to Emro's operating loss of 2.8 billion KRW in Q1 2026?
A3. It was caused by delays in recognizing revenue from System Integration (SI) contracts compared to the previous year, coupled with a significant increase in preemptive investments in solution development and marketing to expand globally.
Q4. Is Emro's financial health sound enough to handle a large deficit?
A4. Yes, Emro maintains strong foundational health, preserving a debt ratio of 16%, a current ratio of 382%, and holding approximately 24.9 billion KRW in available cash and cash equivalents.
Q5. What are the key products slated for commercial launch and target schedules for both companies?
A5. Hancom plans to commercialize its 'Twin-type Agentic OS' aimed at 24-hour autonomous tasking this year, while Emro is working on upgrading its procurement platform by embedding 'Agentic AI' across all procurement workflows.