After rising to the 50,000 won range right after its 2023 listing, kt Millie Seojae's share price has now fallen into the 10,000 won range, not even reaching half the offer price. The company has posted operating profits for 16 consecutive quarters since the second quarter of 2022 and is expanding its business beyond e-book subscriptions into web novels, webtoons, and artificial intelligence (AI)-based services.
Amid this, Chief Executive Officer Jeong Jae-uk, who took office in May, bought 10,000 shares immediately after taking office and then purchased another 5,000 shares on the market three months later. With the share price sluggish for a long period, some say consecutive injections of personal funds by the CEO signal confidence that the current share price undervalues the company.
◇ Bought 160 million won worth of shares three months after taking office
According to the industry on the 11th, Jeong bought 5,000 shares of kt Millie Seojae on the market on the 7th at an average of 10,360 won per share. The purchase amount was about 51.8 million won. Jeong also bought 10,000 shares of the company at an average of 10,851 won immediately after becoming CEO in May. The purchase amount at the time was about 108.5 million won.
Within the KT group, it is not unusual for a chief executive officer (CEO) to buy the company's own shares. There are cases across several affiliates where personal funds are invested to signal responsible management and a commitment to boosting corporate value.
◇ Share price is half the offer price, but results show 16 straight profitable quarters
Jeong's successive buys are drawing attention because kt Millie Seojae's share price and results have moved in opposite directions. The company closed at 10,980 won on the 10th. That is about 52% below the 23,000 won offer price at the time of its 2023 listing. Compared with the brief surge into the 50,000 won range right after listing, the stock is down about 80% from its peak. After early listing enthusiasm faded, the share price has been declining and moving sideways for an extended period.
Results are moving the other way. kt Millie Seojae returned to an operating profit in the second quarter of 2022 and recorded 16 consecutive quarters of operating profit through the first quarter of this year. First-quarter revenue this year was 23.9 billion won, up 19.6% year over year, and operating profit was 3.9 billion won, up 4.9%. In 2025, revenue was 88.2 billion won and operating profit was 14.4 billion won, up 21% and 31% from the previous year, respectively.
The business portfolio is also expanding. In addition to the existing e-book subscription business, it is nurturing content intellectual property (IP) such as web novels and webtoons, as well as AI services, as new growth pillars. Last year, it acquired Storywiz's platform business for 3.8 billion won to strengthen its web novel and webtoon operations. The strategy is to go beyond offering other companies' content in a subscription model and build a base to secure its own IP and use it in various ways.
Sales channels are also being diversified. Beyond the method where individuals directly purchase passes, it is expanding channels linked to external operators such as mobile plans and memberships to increase subscribers and broaden a profit structure concentrated on the existing subscription business.
◇ CEO bought twice in the "10,000 won range" — will it be a signal of undervaluation?
Upon becoming CEO on May 22, Jeong identified discovering new sales channels and strengthening service capabilities based on AI transformation (AX) as key tasks. Rather than being someone who built a long career in the content industry, Jeong has rotated widely through KT's business front lines. Before becoming CEO, Jeong served as head of KT's Busan and South Gyeongsang regional headquarters. The main role is seen as leveraging business experience built at KT and the group's network to discover new growth drivers for Millie's library.
The AX strategy is also focused on integrating AI and data into the existing reading service rather than creating a separate AI business. Millie's library is expanding AI recommendations using users' reading histories and preferences, AI Text-to-Speech (TTS), and conversational reading services. The plan is to increase usage time and reduce subscriber churn.
The market is also paying close attention to the price range at which Jeong bought shares. The first average purchase price was 10,851 won, and the second was 10,360 won, both in the low 10,000 won range. There is little difference from the closing price of 10,980 won on the 10th. The average acquisition price is about 10,687 won.
Insider share purchases, including by the CEO, are generally interpreted as a signal that management views the current share price as below the company's mid- to long-term value. In particular, given that additional buying occurred after the share price fell further following the first purchase, some say Jeong is showing considerable confidence in the current level. However, it is difficult to judge the bottom or future rebound of the stock based solely on the CEO's personal purchases.
Whether corporate value is re-rated depends on future results. The key is whether the new sales channel expansion and AX strategy Jeong is pursuing lead to increases in subscribers and revenue, and whether the web novel and webtoon IP business becomes a new source of revenue. Against mixed indicators of a share price not reaching half the offer price and steady profits, the new CEO bought shares of the company in succession immediately after taking office. Attention is on whether Jeong's purchases will remain symbolic of responsible management or, aligned with future earnings growth, signal a break from the prolonged share-price slump.