Smartkarma AI, Smartkarma

αSK

Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
 <li>SK Square is a South Korean investment holding company, spun off from SK Telecom in 2021, with a strategic focus on the semiconductor and information and communication technology (ICT) sectors.</li>
 <li>The company's intrinsic value and performance are overwhelmingly tied to its cornerstone asset, a significant ~20% stake in SK Hynix, a global leader in the memory semiconductor market.</li>
 <li>Future value creation is expected to be driven by the performance of SK Hynix, the potential narrowing of its substantial Net Asset Value (NAV) discount, and strategic investments in new growth areas, though it faces high volatility from the semiconductor industry.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  SK Square is a South Korean investment holding company, spun off from SK Telecom in 2021, with a strategic focus on the semiconductor and information and communication technology (ICT) sectors.
  The company's intrinsic value and performance are overwhelmingly tied to its cornerstone asset, a significant ~20% stake in SK Hynix, a global leader in the memory semiconductor market.
  Future value creation is expected to be driven by the performance of SK Hynix, the potential narrowing of its substantial Net Asset Value (NAV) discount, and strategic investments in new growth areas, though it faces high volatility from the semiconductor industry.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: SK Square   (402340 KS) - Oct 2025

External broker reports(aggregated public sources), Daishin Securities

Daishin Securities

External broker reports(aggregated public sources)

Founded in 1962, Daishin Securities is a leading financial services provider in Korea. Daishin securities does its best to provide high quality financial service and to satisfy the various needs of investors. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Gap emerged between SK Hynix’s valuation and SK Square’s NAV discount rate</li><li>SK Hynix started trading at a premium as chips enter a supercycle</li><li>Growing appetite for SK Hynix proxies; SK Square’s discount should narrow</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Gap emerged between SK Hynix’s valuation and SK Square’s NAV discount rateSK Hynix started trading at a premium as chips enter a supercycleGrowing appetite for SK Hynix proxies; SK Square’s discount should narrowContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SK Square (402340 KS Oct 15, 2025) - A Backdoor into SK Hynix

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>The reason why the president’s office is considering temporarily easing bank–industry separation is to facilitate funding for the 150T won National Growth Fund.</li>
<li>Samsung and SK may form bank-backed JVs to fund AI semis, HBM, and data center projects, enabling flexible capital deployment across the AI semiconductor ecosystem.</li>
<li>Chaebol holdings with direct AI exposure could gain smoother access to big-ticket funding, potentially sparking continued aggressive short-term flows around Samsung and SK holdings post-Chuseok.</li>
</ul>


The reason why the president’s office is considering temporarily easing bank–industry separation is to facilitate funding for the 150T won National Growth Fund.
Samsung and SK may form bank-backed JVs to fund AI semis, HBM, and data center projects, enabling flexible capital deployment across the AI semiconductor ecosystem.
Chaebol holdings with direct AI exposure could gain smoother access to big-ticket funding, potentially sparking continued aggressive short-term flows around Samsung and SK holdings post-Chuseok.


A Clear Understanding of the Narrative Around Easing Bank–Industry Separation in Korea

<ul>
<li>Korean equities are stalled; macro catalysts are absent. Street focus shifts from treasury share cancellations to next year’s mandatory tender offers, now seen as the top policy driver.</li>
<li>Pre-MTO trades focus on holding companies with wide NAV discounts or low controlling stakes, front-running policy-driven re-ratings before minority shareholders capture control premiums.</li>
<li>Focus on 32 Korean holding companies &gt;KRW 500B; those with wide NAV discounts and lighter controlling stakes—SK's holding companies, Samsung C&amp;T, Hanwha, LG, LS—are prime re-rating plays.</li>
</ul>


Korean equities are stalled; macro catalysts are absent. Street focus shifts from treasury share cancellations to next year’s mandatory tender offers, now seen as the top policy driver.
Pre-MTO trades focus on holding companies with wide NAV discounts or low controlling stakes, front-running policy-driven re-ratings before minority shareholders capture control premiums.
Focus on 32 Korean holding companies &gt;KRW 500B; those with wide NAV discounts and lighter controlling stakes—SK's holding companies, Samsung C&amp;T, Hanwha, LG, LS—are prime re-rating plays.


Holdco NAV Discount Compression Play on Korea’s Next Policy Narrative: Mandatory Tender Offers

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. </li>
<li>SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.</li>
<li>Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.</li>
</ul>


Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. 
SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.
Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.


South Korea

SK Square Co., Ltd. operates as an investment company. The Company invests in semiconductors, information and communications technologies, and other industries. SK Square conducts businesses in South Korea.

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SK Square (402340 KS)

Primer: SK Square (402340 KS) - Oct 2025

SK Square is a South Korean investment holding company, spun off from SK Telecom in 2021, with a strategic focus on the semiconductor and...

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