SKC Resolves 1 Trillion Won Rights Offering...Aims to Capture Both Growth and Financial Soundness

590 Billion Won Investment in Glass Substrates
Debt Ratio to Improve to Low-140% Range

SKC Corporate Identity.

SKC will carry out a paid-in capital increase of about 1 trillion won to secure future growth engines and strengthen its financial soundness.

SKC announced on the 26th that it held a board meeting and resolved to conduct a paid-in capital increase of 1 trillion won through a rights offering to existing shareholders, followed by a public offering of forfeited shares. The company plans to use the funds raised to enhance execution in next-generation materials businesses such as glass substrates, while simultaneously improving its financial structure, with the goal of leaping forward as a global advanced materials company.

SK, the largest shareholder with a 40.64% stake, also announced in a disclosure the same day that it will participate in oversubscription for 120% of its allotted rights. The company explained that this decision reflects confidence in the growth potential of SKC's semiconductor materials business.

The record date for the allocation of new shares is April 7, and subscriptions for existing shareholders will take place over two days starting May 14. The issue price is scheduled to be finalized in mid-May.

Of the funds raised, approximately 590 billion won will be invested in product development at Absolics, the glass substrate investment vehicle. Absolics has recently made meaningful progress in product development for global big tech customers and is strengthening its pool of experts under the leadership of CEO Kang Jiho, who previously worked at Intel and SK hynix.

Absolics plans to bring forward its market entry timing through a two-track strategy that simultaneously pursues the "embedding" method, a high-end product for AI data centers, and the "non-embedding" method, which has a faster commercialization timeline. The company also intends to build an ecosystem and solidify its technological competitiveness through cooperation with a wide range of partners.

The remaining approximately 410 billion won will be used to repay borrowings. SKC plans to prioritize the repayment of borrowings that are nearing maturity in order to reduce financing costs and lower its debt ratio. The company expects that, through this paid-in capital increase, its debt ratio at the end of 2025, which is projected to be around 230%, will improve significantly to the low-140% range.

The recovery trend in SKC's core businesses is also positive. ISC, which achieved record-high results last year thanks to increased sales of products for AI data centers, is expected to continue its growth this year, supported by strong semiconductor demand. SK nexilis is likewise seeking a rebound in performance based on cost structure improvements centered on Malaysia and increasing demand for energy storage systems in North America.

An SKC official said, "This paid-in capital increase is a decision to firmly support the growth of future businesses such as semiconductor materials and to strengthen our financial capacity," adding, "We will accelerate the growth of Absolics based on the funds secured and enhance both shareholder value and corporate value."