[Photo] SK Square Head Office ‘T tower’

- SK Square recorded a consolidated revenue of KRW 402.8 billion, an op-erating income of KRW 1652.3 billion, and a net income of KRW 1612.3 billion. 

- The company improved the total operating income of its key ICT portfo-lios by 70% through O/I (Operation Improvement) activities.

- Efforts are underway to monetize non-core assets, such as TMAP Mobili-ty’s subsidiary ‘Seoul Airport Limousine’ and ONE Store’s content subsidi-ary ‘Rok Media’

- SK Square aims to secure KRW 1.3 trillion this year for the investment in AI and semiconductor sectors.

- SK Square has made positive progress in its key indicators for Corporate Value-Up efforts. The Company plans to buy back and cancel its shares worth of KRW 100 billion.

SK Square (CEO Han Myung-Jin, www.sksquare.com) announced its 2025 1Q earn-ings with a consolidated revenue of 402.8 billion, an operating income of KRW 1652.3 billion, and a net income of KRW 1612.3 billion.

The company’s operating income and net income increased about 400% YoY*, due to the increase in the equity method gains from SK Hynix and the improved earnings from its main ICT portfolios.

※ 2024 1Q: Operating Income KRW 323.8 billion, Net Income KRW 333.3 billion, based on the consolidated financial statements

The improved earnings of SK Square are attributed to the company’s O/I(Operation Improvement) activities that have strengthened its fundamental competitiveness and profitability. 

SK Square laid the foundation for qualitative growth by improving the total operat-ing losses of its main ICT portfolios* by more than 70% YoY (KRW +30.2 billion) to reach KRW -11.4 billion in the first quarter of 2025. A significant improvement was demonstrated, in particular, by ‘SK planet’ ( KRW +11.3 billion), 11STREET (KRW +9.8 billion), TMAP Mobility (KRW +7.2 billion), ONE Store (KRW +2.2 billion), and Incross (KRW +1.2 billion).

※ TMAP Mobility, 11STREET, SK planet, ONE Store, Dreamus Company, Incross, FSK L&S

First of all, TMAP Mobility posted an operating loss of KRW -9.4 billion, a 43% improvement YoY. TMAP Mobility upgraded its high-margin mobility data business including TMAP AUTO, UBI (User Based Insurance), and advertising, based on its com-petitive customer base of 15 million MAU (Monthly Active Users). Its revenue from the mobility data business grew by 28% YoY. TMAP Mobility aims to achieve surplus EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) in 2025.

TMAP Mobility is also accelerating the monetization of non-core assets. The company sold its stake in its subsidiaries such as ‘Seoul Airport Limousine’, the corporate chauffeur service provider ‘Good Service’, and the taxi-hailing platform ‘UT’ this year. TMAP Mobility plans to solidify its position as an AI mobility company by improving its search features and attraction recommendation service enabled by AI.

With concentrated efforts to improve the profit & loss profile, 11STREET recorded an operating loss of KRW -9.7 billion, a 50% improvement YoY. 11STREET achieved surplus operating income from its refurbished open market business consisting of high-margin product categories including food, fashion, and beauty, for 14 months in a row from March 2024 to April 2025. 11STREET plans to improve its capacity to create profit in the open market business. 

SK planet’s earnings turned to surplus, with an operating income of KRW 8.3 billion in the first quarter of this year, after implementing intensive efforts to vitalize its main business ‘OK Cashbag’ such as launching a new membership program ‘Oki Club’. SK planet aims to strengthen the competitiveness of OK Cashbag business in 2025.

With improved marketing efficiency, ONE Store recorded an operating loss of KRW -3.2 billion, a 41% improvement YoY. As part of the effort to monetize non-core assets, ONE Store sold its stake in its content subsidiary Rok Media in the first quarter of 2025. ONE Store has increased its emphasis on the game app market, one of its core business areas. The company plans to improve its fundamental competitiveness by attracting more new games into its app marketplace while improving the benefits for users. 

Meanwhile, ‘Content wavve’ is currently undergoing a review on corporate merger. In 2025 1Q, SK Square conducted a meaningful portfolio rebalancing by exchanging the stake in IDQ, a company specializing in quantum-safe security, with the stake of IonQ, a quantum computing company in the US. SK Square plans to speed up the effort to monetize non-core assets this year. 

SK Square is also preparing to make investment in AI and semiconductor sectors, aiming to position itself as a specialized investment company in these areas. It has recently completed an investment in five AI and semiconductor companies based in the US and Japan, under the joint investment agreement with SK Hynix, Shinhan Financial Group, and LIG Next1. SK Square plans to invest a total of KRW 100 billion, including the KRW 20 billion invested in the aforementioned five companies, with its joint investment partners, focusing on overseas tech companies with high growth potential. 

In addition, SK Square is considering a large-scale investment from a mid-to-long term perspective. In terms of the synergy with SK Hynix, SK Square is exploring mean-ingful investment opportunities in the global AI chip and infrastructure sectors where bottlenecks are expected for the AI industry. 

SK Square aims to secure investment resources of KRW 1.3 trillion this year while maintaining its ‘zero-debt’ management strategy. As of the end of the first quarter 2025, SK Square secured cash equivalents of KRW 431.6 billion. The company expects to secure additional cash inflows with dividend income from its subsidiary (KRW 356 billion) and the receivable remaining amount of the sale of part of its stake in SK shieldus (KRW 500 billion). 

SK Square also plans to enhance the shareholder value through buyback and cancel-lation of its own shares in 2025. The company announced its plan to buy back and cancel additional shares of KRW 100 billion, in the 4th Annual General Shareholders’ Meeting held in March 2025. SK Square has bought back and cancelled its shares of KRW 510 billion in total since its launch in November 2021 till last month.

Such efforts led to an increase in its share price by 32%% compared to the beginning of 2025. As of May 13th, 2025, its closing share price reached KRW 103,500. 

※ Closing price as of January 2nd, 2025: KRW 78,600

SK Square has seen positive progress in the key indicators of its Corporate Value-Up Plan* announced in November 2024. As of 2025 1Q, its Net Asset Value(NAV) discount rate** reached 62.8%, a significant improvement from the end of 2024 (65.7%) and the end of 2023 (73.0%). Its Return of Equity (ROE) increase from 21.7% as of the end of 2024 to 27.6% as of the first quarter of 2025, while the Price Book-Value Ratio (PBR) rose from 0.62 to 0.68.

※ Goals in the Corporate Value-Up Plan: ▲ Reduce the Net Asset Value (NAV) discount rate to 50% or lower by 2027 ▲ Realize a Return of Equity (ROE) higher than the Cost of Equity (COE) by 2025-2027 ▲ Achieve a Price Book-Value Ratio (PBR) of 1 or higher by 2027.

※ NAV discount rate: The higher the equity value of the portfolio in the market, the lower the NAV discount rate. 

“SK Square is strengthening the fundamental competitiveness of its portfolios by implementing O/I (Operation Improvement) efforts and monetizing non-core assets,” said Han Myung-jin, the CEO of SK Square. “We will concentrate on enhancing the shareholder value by carefully preparing our investment in the AI and semiconductor sectors.”