SK Square Reports Q2 Operating Profit of 509.3 Billion KRW... Preparing New Investments in Semiconductors and ICT

Photo by SK Square

[Asia Economy Reporter Oh Soo-yeon] SK Square announced on the 16th that it recorded sales of 1.529 trillion KRW, operating profit of 509.3 billion KRW, and net profit of 493.8 billion KRW based on consolidated financial statements for the second quarter.

On a cumulative basis for the first half of the year, it achieved sales of 2.8501 trillion KRW, operating profit of 889.5 billion KRW, and net profit of 958.8 billion KRW.

SK Square is an investment-specialized company whose main business activity is investment. The consolidated results reflect the performance of portfolio companies and equity-method valuation gains and losses.

For the second quarter, SK Square’s results included, for the first time, approximately 43.8 billion KRW in quarterly dividend income from SK Hynix. SK Hynix announced that starting this year, it would increase its fixed dividend per share from 1,000 KRW to 1,200 KRW, pay dividends quarterly, and additionally distribute 5% of annual free cash flow as dividends.

Additionally, as of the second quarter, SK Square maintains zero borrowings, sustaining stable cash flow for future investments through debt-free management.

Moreover, among its portfolio companies, SK Square signed a contract in July to sell the bio-health company NanoEnTek for about 58 billion KRW, demonstrating its ability as an investment-specialized company to secure new investment funds through flexible profit realization. The sale amount of NanoEnTek is expected to be reflected in the financial statements for the second half of the year.

Starting in the second half of this year, SK Square plans to enhance corporate value and increase shareholder value through new investments in the semiconductor and ICT sectors, attracting domestic and foreign external investment capital, and flexible profit realization.

First, for new investments in the semiconductor and ICT sectors, SK Square is actively considering increasing the total investment scale by attracting domestic and foreign investment capital. It plans to consecutively disclose investment attraction and strategic alliance achievements aimed at increasing the corporate value of portfolio companies under SK Square.

Up to the first half of this year, SK Square has expanded its portfolio to a total of 19 companies by investing in the virtual asset exchange Korbit, 3D digital human production company Onmind, Korea’s largest agricultural innovation company Greenlabs, and global game company HAEGIN. Despite global macroeconomic uncertainties, the invested companies have been recognized by the market for their higher corporate value compared to the investment timing.

Also, SK Square’s subsidiary T Map Mobility achieved bolt-on investments by acquiring two airport bus companies to innovate its mobility business, thereby enhancing corporate value through acquiring related businesses.

Going forward, SK Square will continue flexible profit realization as an investment-specialized company to establish a virtuous cycle system for future investments and strive to enhance shareholder value. From 2023, when shareholder returns become legally possible, it is considering maximizing shareholder value through share buybacks and cancellations or special dividends upon realizing investment profits.

Jung Jae-heon, Head of SK Square’s Investment Support Center, stated, "Leading global investment companies flexibly adjust their portfolios according to macroeconomic trends. Since this is a period when good opportunities for mergers and acquisitions may arise, we will enhance shareholder value through active new investments and profit realization."