SK Square posts 420 billion KRW operating profit in two months "Increasing investments and subsidiary IPOs this year"

Subsidiary SK Hynix Dividend Increase
First General Meeting of Shareholders to Be Held on March 28

[Asia Economy Reporter Cha Min-young] SK Square, which was spun off from SK Telecom in November last year, posted an operating profit of approximately 420 billion KRW on a consolidated basis over two months.

SK Square announced on the 25th that it recorded an operating profit of 419.8 billion KRW on a consolidated basis for the two months from November to December last year. During the same period, sales amounted to 1.1464 trillion KRW, and net profit was recorded at 363.2 billion KRW.

As an investment specialist company, SK Square's performance reflected subsidiary sales and equity-method gains and losses from SK Hynix and others. Major subsidiaries include SK Shielders, 11st, SK Planet, T map Mobility, and One Store.

SK Square expects to secure stable cash generation capabilities this year due to increased dividend income from SK Hynix's strengthened shareholder return policy. Recently, SK Hynix announced that it would raise the fixed dividend per share from 1,000 KRW to 1,200 KRW, maintain a policy of distributing an additional 5% of free cash flow as dividends, and implement quarterly dividends. It also revealed plans to use about 50% of the free cash flow generated over the next three years as shareholder return funds.

Since its launch, SK Square has invested a total of 130.3 billion KRW in the virtual asset exchange Korbit (87.3 billion KRW), 3D digital human production company Onmind (8 billion KRW), and Korea's largest agricultural innovation agtech company Greenlabs (35 billion KRW), among others.

SK Square's net asset value (NAV) at the end of 2021 was approximately 26 trillion KRW. SK Square is preparing new investments this year. It plans to strengthen external investment partnerships and realize returns on held assets to secure investment funds. It is also preparing for subsidiary IPOs and expanding domestic and international business alliances.

Yoon Poong-young, Chief Investment Officer (CIO) of SK Square, stated, “SK Square is a unique investment company with a diverse portfolio including semiconductors, security, e-commerce, and mobility from its inception. We will focus on enhancing SK Square’s investment profitability and corporate value through active portfolio management.”

Meanwhile, SK Square will hold a shareholders' meeting on the morning of the 28th of next month at the SK-T Tower in Euljiro, Seoul.

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