Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

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 MTD Reply may help Hynix secure dismissal, but its arguments on quarterly pricing upside and HBM’s outsized margins could reinforce peak out concerns and increase antitrust risk.</li>
<li>Chey appears to be pushing back against HBM peak out concerns by accelerating capex and reinforcing management’s confidence in sustained HBM and AI demand.</li>
<li>Hynix may accelerate ADR expansion ahead of the Solidigm IPO, using deeper US market ties as a shield against regulatory risk.</li>
</ul>


The MTD Reply may help Hynix secure dismissal, but its arguments on quarterly pricing upside and HBM’s outsized margins could reinforce peak out concerns and increase antitrust risk.
Chey appears to be pushing back against HBM peak out concerns by accelerating capex and reinforcing management’s confidence in sustained HBM and AI demand.
Hynix may accelerate ADR expansion ahead of the Solidigm IPO, using deeper US market ties as a shield against regulatory risk.


October 7 MTD Reply: A Paradoxical Setup for Hynix

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>NPS and other local pension funds net sold approximately 2.5 trillion won in KOSPI included stocks in the past month (as of 23 June).</li>
<li>Top stocks net sold by the NPS and local pension funds in the past one month include Samsung Electro Mechanics, SK Square, and Mirae Asset Securities. </li>
<li>Top stocks net purchased  by the NPS and local pension funds in the past one month include Naver, SK Hynix, and Hyundai Mobis. </li>
</ul>


NPS and other local pension funds net sold approximately 2.5 trillion won in KOSPI included stocks in the past month (as of 23 June).
Top stocks net sold by the NPS and local pension funds in the past one month include Samsung Electro Mechanics, SK Square, and Mirae Asset Securities. 
Top stocks net purchased  by the NPS and local pension funds in the past one month include Naver, SK Hynix, and Hyundai Mobis. 


NPS: Net Seller of Korean Stocks in the Past Month (What Is It Buying and Selling?)

<ul>
<li>Amid record rallies in the Korean stock market and the major semiconductor stocks in particular, there has been a massive net selling of Korean stocks by foreign investors this year.</li>
<li>In this insight, I discuss the following three major items including net selling/buying of Korean stocks by foreign investors, domestic institutions, and domestic retail in the past 10 years.</li>
<li>I also discuss percentage change in foreign ownership among the top 20 stocks in Korea and impact of the net selling of Korean stocks by foreigners on the KRW/USD rates.</li>
</ul>


Amid record rallies in the Korean stock market and the major semiconductor stocks in particular, there has been a massive net selling of Korean stocks by foreign investors this year.
In this insight, I discuss the following three major items including net selling/buying of Korean stocks by foreign investors, domestic institutions, and domestic retail in the past 10 years.
I also discuss percentage change in foreign ownership among the top 20 stocks in Korea and impact of the net selling of Korean stocks by foreigners on the KRW/USD rates.


Massive Net Selling of Korean Stocks by Foreign Investors in 2026: Having Significant Impact on FX

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...

αSK Primers