SK Square (402340.KS) has surpassed 112 trillion won ($77 billion) in market capitalization, rising to third place by market cap on the KOSPI. Analysts say the investment holding company's aggressive value-up push, combined with the semiconductor supercycle, has paid off.
According to the Korea Exchange on Friday, SK Square shares were trading at 851,000 won as of 10 a.m., up 2.53% from the previous day. Its market cap stood at approximately 112.3 trillion won, placing it in the top three ahead of Hyundai Motor (005380.KS) and LG Energy Solution (373220.KS), which had previously held the third and fourth spots. SK Square's stock price has climbed roughly 110% this year and has surged more than 930% compared to early last year.
Notably, SK Square has outpaced the gains of its subsidiary SK hynix (000660.KS), which rose 94%. This suggests that the stock's rally is not simply a ride on the semiconductor supercycle. Market watchers say SK Square is being recognized for its efforts as a holding company to manage its AI and semiconductor portfolio while concentrating on value-up initiatives, including active shareholder returns and investor engagement.
SK Square uses its net asset value (NAV) discount rate as a key indicator in its corporate value enhancement plan. The NAV discount rate shows how the sum of portfolio company stakes is valued relative to market capitalization. A lower discount rate means the company is receiving a fairer corporate valuation. Given that holding companies typically own multiple portfolio companies, this metric is considered a core gauge for assessing the holding company discount.
SK Square's NAV discount rate stood at 45.1% as of Friday. That marks a clear improvement from 65.7% at the end of 2024 and 51.5% at the end of 2025. As the figure improved rapidly, SK Square in November set a more ambitious new target of lowering the rate to 30% by 2028, down from the previous 50% goal. SK Square is the only major domestic holding company that has adopted the NAV discount rate as a target in its corporate value enhancement plan, and it is also reflected as a core KPI for management.
Other value-up metrics, such as price-to-book ratio (PBR) and return on equity (ROE), also stand out. Its PBR during Friday's session was 3.95 times, and its ROE stood at 37.8% as of the end of last year. Those figures significantly exceed the average PBR of 1.6 times and average ROE of 5% for major large-cap holding companies such as Samsung C&T, POSCO Holdings, HD Hyundai and LG.
In particular, SK Square set a goal in its corporate value enhancement plan to continue delivering an ROE that exceeds its cost of equity (COE) over the next three years. Given that its COE is in the mid-10% range, the company is expected to substantially exceed its target. An ROE higher than COE means the company is generating returns beyond shareholder expectations and "creating" corporate value.
SK Square has also drawn attention for its aggressive shareholder return policy. It plans to execute a total of 310 billion won in shareholder returns from this year through early next year. Last year, it bought back 200 billion won worth of treasury shares, and this year it plans to deploy an even larger amount for shareholder returns. Since 2023, when shareholder returns became feasible following its launch, SK Square has consistently repurchased and retired treasury shares.
SK Square is also actively engaging with domestic and overseas investors. Kim Jeong-kyu, SK Square's newly appointed CEO, is known to have personally met with more than 10 investors at home and abroad upon taking office. The countries he visited include the United States, the United Kingdom, the Netherlands, Hong Kong and Singapore. Industry observers describe it as unusual for a CEO to personally travel around the world for investor meetings such as non-deal roadshows (NDRs). Kim is said to meet investors under his management philosophy of diversifying the global investor base and engaging in direct dialogue, explaining management details such as the NAV discount rate, shareholder returns and key portfolio performance. The fact that the results of these investor meetings are transparently relayed to the board of directors, which then actively reflects investor views in corporate value enhancement activities, is also seen as noteworthy.
SK Square plans to pursue new investments and rebalance its portfolio going forward, centered on the AI and semiconductor sectors. The company is preparing new investments while exploring opportunities in areas that address AI evolution bottlenecks and in the semiconductor value chain. Separately, the company said it is securing market intelligence essential for an investment firm through its overseas arm TGC Square.
Analysts are raising their target prices for SK Square. Ahn Jae-min, an analyst at NH Investment & Securities, raised his target price to 1.1 million won from 740,000 won, saying, "Rising corporate value at SK hynix is driving SK Square's stock higher, and improved cash flow from expanded dividends is expected to feed into stronger shareholder returns and M&A funding, establishing a virtuous cycle that lifts corporate value."
