SK Square Reports Operating Loss of 734.5 Billion KRW in Q2... "Reflecting Accounting Factors"

SK Square announced on the 14th that it recorded consolidated sales of -127.4 billion KRW, an operating loss of 734.5 billion KRW, and a net loss of 704.0 billion KRW for the second quarter of this year.

The company explained that accounting factors such as the equity-method valuation loss on SK Hynix shares were reflected, causing sales to turn negative. SK Square's consolidated performance is directly influenced by the results of its portfolio companies due to its nature as an investment specialist firm. SK Square reflects SK Hynix's net profit or loss for the period as consolidated sales in proportion to its equity stake (20.1%).

SK Square Headquarters T Tower
[Photo by SK Square]

SK Square stated, "As of the third quarter of this year, we have secured cash inflows exceeding 1 trillion KRW, steadily accumulating investment funds." Investment returns from SK Shieldus amounting to 860 billion KRW, dividend income of 133.3 billion KRW from SK Hynix and others, and sale proceeds of 51.5 billion KRW from NanoEnTek have either been received or are scheduled. Additionally, "As of the second quarter, borrowings stand at zero, providing ample leverage investment capacity," and "We have repurchased and canceled a total of 310 billion KRW worth of treasury shares this year alone," the company said.

SK Square plans to showcase various portfolio management achievements in the second half of this year. First, based on 100 billion KRW jointly invested with SK Hynix and leading domestic financial institutions, it will execute investments in promising semiconductor materials, parts, and equipment companies overseas, including in Japan and the United States.

Furthermore, SK Square intends to accelerate efforts such as fundraising, business partnerships, and M&A to enhance the value of portfolio companies like One Store. Companies such as NanoEnTek will be used to secure new investment resources through portfolio rebalancing and will be utilized to incorporate portfolios that have strong synergy with SK Square in the future.

Jung Jae-heon, Head of SK Square’s Investment Support Center, said, “As an investment specialist company, SK Square itself is generating healthy cash flow and steadily preparing for future investments,” adding, “In the second half of this year, we will demonstrate various investment achievements centered on our portfolio companies.”

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