[Market Focus] SK Square Surges Over 6% on Policy Benefit Expectations

On June 25, SK Square showed strong performance in early trading. The surge in investor sentiment is attributed to expectations that shareholder returns will increase as the new administration accelerates the amendment of the Commercial Act.

As of 9:40 a.m. on this day, SK Square was trading at 193,200 won, up 12,200 won (6.74%) from the previous trading day. This marks a five-day consecutive rise.

The strength of SK Square is seen as being driven by anticipation of stock market stimulus measures from the Lee Jaemyung administration, such as the imminent passage of the Commercial Act amendment. The amendment, expected to be processed in July, focuses on improving corporate value for holding companies through enhanced shareholder returns and better corporate governance.

SK Square is an intermediate holding company within the SK Group, specializing in ICT investments. It has invested in SK Hynix, 11st, Content Wavve, and Tmap Mobility, among others.

SK Square is considered to have significant capacity to expand shareholder returns, such as additional share buybacks and cancellations, thanks to its ample resources. At the end of March, CEO Han Myungjin announced at the shareholders' meeting that the company would carry out a share buyback and cancellation worth about 100 billion won, which is 60% of this year's recurring dividend income.

On June 17, Kim Jangwon, a researcher at BNK Investment & Securities, stated in a report, "The remaining proceeds from the sale of SK Shieldus are expected to come in during the second half of the year. We estimate the amount to be around 470 billion won." He added, "Considering that 200 billion won was used for share buyback and cancellation when 410 billion won first came in two years ago, there is a high possibility that a portion of the funds will be used for shareholder returns again this time."