SK Square Achieves Record Operating Profit of KRW 19.2 Trillion in Q2...Strengthens Position as Semiconductor Holding Company

Market Capitalization Soars to KRW 147 Trillion, Rises to Third on KOSPI
NAV Discount Rate Improves to 38%
Completes Treasury Share Cancellation

SK Square, the investment-focused holding company of SK Group, achieved record-breaking quarterly and half-year results, driven by the strong performance of its major subsidiary SK hynix and its proactive portfolio restructuring.

On August 14, SK Square announced that, on a consolidated basis for the second quarter of this year, revenue was KRW 328.5 billion, operating profit was KRW 19.2354 trillion, and net income was KRW 18.675 trillion. For the first half of the year, cumulative operating profit totaled KRW 27.5137 trillion and net income KRW 27.0498 trillion, representing growth of about eight times compared to the same period last year.

SK Square Headquarters T Tower. SK Square

These results were achieved by both the robust AI semiconductor business of SK hynix, its core portfolio firm, and by swiftly executing bold rebalancing (business restructuring) of non-core assets. In January this year, SK Square sold the digital advertising subsidiary INCROSS to SK Networks, and in June, it sold the app market platform ONE Store to Nexsus, focusing further resources on AI and semiconductors.

Thanks to these structural improvements, both the company’s valuation and its stock price soared. As of the closing price on August 13, SK Square’s market capitalization reached approximately KRW 147 trillion—about a sixfold increase compared to KRW 24 trillion one year earlier. As a result, the company’s ranking by market cap in the stock market climbed from 23rd to 3rd place (excluding preferred shares).

The net asset value (NAV) discount rate also improved significantly, from 50.1% a year ago to 38%. A lower NAV discount rate means that the market is properly valuing the holding company’s stakes in its subsidiaries. The company aims to reduce the NAV discount rate below 30% by 2028 and raise the price-to-book ratio (PBR) to above 1.

Efforts to enhance shareholder value through share buybacks and cancellations are ongoing. SK Square canceled the entirety of the treasury shares it acquired in the first half of this year, worth KRW 40 billion, last month. The company also plans to buy back and cancel additional treasury shares valued at KRW 70 billion by early next year.

Going forward, SK Square plans to actively pursue preemptive investments in advanced semiconductor and AI companies in the United States and Japan, utilizing its overseas investment vehicle TGC Square. It will also aggressively seek new investments across the entire semiconductor value chain.

Additionally, by leveraging the ‘AI Innovation’ organization established earlier this year, SK Square intends to accelerate AI transformation (AX) within its portfolio, further solidifying its identity as a semiconductor-focused investment holding company.

Junggu Kim, CEO of SK Square, stated, “We will proactively communicate with shareholders and prepare for AX innovation and new semiconductor investments to enhance corporate value.”

This content was produced with the assistance of AI translation services.