Signal SK Square set to turn SK Hynix windfall into firepower for AI, chip deals

Summary

SK Square, which owns approximately 20.5% of SK Hynix, is preparing large-scale acquisitions in semiconductors and AI, leveraging the financial windfall from SK Hynix's stock surge, according to KED Global. SK Square's market capitalization reached approximately 147 trillion won based on the August 13 closing price, a sixfold increase from about 24 trillion won a year earlier, moving its ranking on Korea's main exchange from 23rd to 3rd by market value. The company reported record second-quarter results, with consolidated operating profit up 1,273.8% year-over-year to 19.24 trillion won and net profit up 1,190.5% to 18.68 trillion won. SK Hynix, together with two other South Korean companies, launched a 100 billion won ($77 million) joint investment vehicle, managed by SK Square, to acquire overseas chip component and equipment makers. SK Square's net asset value discount narrowed to 38% as of August 13 from 50.1% a year earlier, partly reflecting shareholder-friendly measures such as treasury share cancellations amid pressure from activist fund Palliser Capital. The company has been rebalancing its portfolio toward AI and semiconductors, including divestments of other holdings.