Investing in Stocks
What is ROE (return on equity)?
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ROE is net income divided by shareholders' equity (total equity), showing how much profit a company earned over a year using its shareholders' capital.
For example, if a company with total equity of KRW 100 million earned net income of KRW 10 million, its ROE is 10%. Because of the relationship ROE = PBR ÷ PER, it is often compared together with the PER and PBR.
This answer is general financial information as of 14-10-2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.
