Stock Analysis

Exploring Three High Growth Tech Stocks in South Korea

KOSE:A248070
Source: Shutterstock

South Korea's market dynamics have been influenced by a significant current account surplus, with notable increases in both exports and imports. In this context, identifying high-growth tech stocks becomes crucial as they can leverage the country's robust economic indicators to drive innovation and expansion.

Top 10 High Growth Tech Companies In South Korea

NameRevenue GrowthEarnings GrowthGrowth Rating
Seojin SystemLtd33.61%52.05%★★★★★★
IMLtd21.80%111.43%★★★★★★
Bioneer23.53%97.58%★★★★★★
FLITTO32.60%106.82%★★★★★★
ALTEOGEN64.22%99.46%★★★★★★
NEXON Games29.64%66.98%★★★★★★
Park Systems23.64%35.66%★★★★★★
AmosenseLtd24.04%71.97%★★★★★★
Devsisters29.08%63.02%★★★★★★
UTI114.97%134.61%★★★★★★

Click here to see the full list of 49 stocks from our KRX High Growth Tech and AI Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

PharmaResearch (KOSDAQ:A214450)

Simply Wall St Growth Rating: ★★★★★☆

Overview: PharmaResearch Co., Ltd., along with its subsidiaries, operates as a biopharmaceutical company primarily in South Korea and has a market cap of ₩1.93 trillion.

Operations: PharmaResearch Co., Ltd. generates revenue primarily from its pharmaceutical segment, which accounted for ₩296.59 billion. The company operates within the biopharmaceutical sector in South Korea, focusing on developing and commercializing medical products.

PharmaResearch, a standout in South Korea's tech sector, has seen earnings soar by 63.2% over the past year, outpacing the Biotech industry’s 6.1%. The company is expected to grow its revenue at 22.1% annually and earnings at 22.2%, although this lags behind the broader KR market’s projected growth of 28.6%. Notably, PharmaResearch has invested significantly in R&D, with expenditures reaching ₩100M in FY2023, highlighting its commitment to innovation and long-term growth.

KOSDAQ:A214450 Revenue and Expenses Breakdown as at Sep 2024
KOSDAQ:A214450 Revenue and Expenses Breakdown as at Sep 2024

Pearl Abyss (KOSDAQ:A263750)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Pearl Abyss Corp. is a company that specializes in software development for games, with a market capitalization of ₩2.07 trillion.

Operations: Pearl Abyss Corp. generates revenue primarily from game sales, amounting to ₩330.62 billion. The company focuses on software development for the gaming industry.

Pearl Abyss, known for its popular game "Black Desert," has been making waves in the South Korean tech scene. The company's earnings are projected to grow at an impressive 53.2% annually, far outpacing the broader KR market's 28.6%. Revenue is also expected to rise by 23.4% per year, supported by robust R&D investments that reached ₩19.7B in FY2023, signaling a strong commitment to future innovation and growth within the gaming industry.

KOSDAQ:A263750 Revenue and Expenses Breakdown as at Sep 2024
KOSDAQ:A263750 Revenue and Expenses Breakdown as at Sep 2024

Solum (KOSE:A248070)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Solum Co., Ltd. manufactures and markets power modules, digital tuners, and electronic shelf labels to customers in South Korea and internationally, with a market cap of ₩988.95 billion.

Operations: Solum Co., Ltd. generates revenue primarily from its ICT Business and Electronic Components Division, with the latter contributing ₩1.16 billion. The company serves both domestic and international markets through these segments.

Solum Co., Ltd. is making strides in South Korea's tech sector, with earnings forecasted to grow at 37.2% annually, outpacing the broader KR market's 28.6%. Despite a challenging past year with a -37.1% earnings growth, Solum's revenue is projected to increase by 14% per year, surpassing the KR market average of 10.3%. The company has committed ₩20B for share repurchases to stabilize stock prices and enhance shareholder value. R&D investments have been significant, reflecting a strong focus on future innovation and competitiveness in the electronic industry.

KOSE:A248070 Earnings and Revenue Growth as at Sep 2024
KOSE:A248070 Earnings and Revenue Growth as at Sep 2024

Key Takeaways

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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