[Market Focus] SKC Drops Over 5% on News of 200 Billion Won Compensation by Subsidiary

On December 12, SKC shares plunged by more than 5% in early trading. The news of a 200 billion won compensation payment by its subsidiary is interpreted as having dampened investor sentiment.

As of 9:11 a.m. that day, SKC shares were trading at 107,700 won on the Korea Exchange, down 5.03% from the previous session. The stock opened at 109,200 won and at one point during the session fell as low as 107,500 won.

After the market closed the previous day, SKC announced that it would pay 200 billion won in damages to its subsidiary, SK PIC Global, in accordance with a shareholder agreement signed in 2020. SKC and PIC each hold a 51% and 49% stake in SK PIC Global, respectively. In 2020, SKC sold a 49% stake in SK PIC Global to PIC and entered into a shareholder agreement stipulating that if SK PIC Global's operating profit did not reach a certain level over the next five years, SKC would compensate SK PIC Global for the shortfall. Last year, SK PIC Global recorded sales of 1.1909 trillion won and an operating loss of 52.3 billion won.

SKC explained, "The compensation amount will be paid in full to SK PIC Global and will be used to strengthen SK PIC Global's financial soundness." SKC plans to pay 100 billion won as the first installment on the 30th, and the remaining 100 billion won will be paid next year.

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