SK Networks Posts KRW 43 Billion Operating Profit in H1, Up 48% Year-on-Year

Achievements in AI-Centered Business Model Innovation and Strengthening Core Competencies

On August 13, SK Networks announced that its consolidated sales for the second quarter reached KRW 1.5163 trillion, with operating profit totaling KRW 43 billion.

Although sales at its trading subsidiary, Glowide, decreased by 10.3% year-on-year as it reorganized its product portfolio to focus on high-margin chemical raw materials, operating profit during the same period increased by 48.0%. SK Networks explained, "As the abolition of the Distribution Structure Improvement Act for Mobile Communication Devices (commonly known as the 'DanTong Act') is expected to intensify market competition in the second half of the year, we strategically adjusted marketing expenses in the information and communications business, which impacted operating profit."

In addition, SK Intellix, which is evolving into an AI wellness platform company, has launched new water purifier and air purifier products through its health platform brand, SK Magic. The company also held a showcase for its wellness robotics brand, NamuX, and is preparing for a product launch in the second half of the year.

Walkerhill Hotel & Resort continued to see rising sales thanks to increased travel demand and positive customer response to its hotel, food and beverage, and major ancillary facilities. SK Speedmate also showed growth in its emergency roadside service (ERS) and parts businesses. EnCore achieved sales and profit growth in the data management consulting and solutions sector.

Phoenix Lab, a Silicon Valley-based startup that last December launched 'Kairon,' Korea's first generative AI solution specialized for the pharmaceutical industry, signed business agreements in June with SK Biopharm and Samil Pharmaceutical to provide customized enterprise solutions. More recently, the company secured a USD 4 million investment, strengthening its foundation for product advancement and global partnership expansion.

SK Networks plans to further enhance the completeness of its business portfolio, which is equipped with crisis response capabilities and competitiveness for the second half of the year, while pursuing tangible results as an AI-centered holding company.

An SK Networks representative stated, "Our main achievements in the first half of the year were strengthening the fundamental competitiveness of each business, maintaining a stable financial structure, and establishing an AI-centered foundation for future growth. We will focus on developing AI-linked business models and generating visible results, while actively sharing the company's vision with stakeholders to enhance corporate value."

Meanwhile, on the same day, SK Networks' board of directors decided to pay an interim dividend of KRW 50 per share.