SK Square (CEO Kim Jung-kyu, www.sksquare.com) announced its 2026 1Q earn-ings with a consolidated revenue of KRW 300.3 billion, an operating income of KRW 8 278.3 billion, and a net income of KRW 8374.7 billion, which marked the highest quarterly earnings.

With equity method gains from SK Hynix and focus on profitability in the portfolio management, SK Square has increased its operating income and net income YoY by 400% and 419% respectively. 

SK Square has concentrated its efforts on improving the corporate value while fo-cusing on its AI and semiconductor portfolios, which placed the company as one of the top 3 companies by market capitalization on the KOSPI*. Based on the closing price as of May 13th 2026, its market capitalization was KRW 157 trillion, which in-creased 3 times compared to the beginning of January 2025 (KRW 51.8 trillion) and 15 times compared to the beginning of January 2026.

SK Square has also made progress in its Net Asset Value (NAV) discount rate, one of the key indicators of the Corporate Value-Up Plan*. SK Square’s NAV discount rate stands at 46.6% as of May 13th 2026, which is a significant improvement compared to the end of 2024 (65.7%) and the end of 2025 (51.5%). SK Square, in particular, in-cluded NAV discount rate in its Corporate Value-Up targets, for the first time among Korean holding companies. NAV discount rate is also incorporated in the key perfor-mance indicators for the company’s senior management.

*Corporate Value-Up Plan: ▲ Reduce NAV discount rate to 30% or lower by 2028 ▲ Realize a Return of Equity (ROE) higher than the Cost of Equity (COE) by 2026-2028 ▲ Achieve a Price Book-Value Ratio (PBR) of 1 or higher by 2028.

NAV discount rate refers to the gap between the equity value of the portfolio held by a holding company and the actual share price (market capitalization) of the holding company. The lower the NAV discount rate, the more fully the market is recognizing the holding company’s corporate value.

SK Square’s PBR increased 4.3x as of May 13th 2026, and its ROE reached 55.1% as of the end of March 2026 to exceed the COE of approximately 15~20%. Performance of these indicators far surpassed the targets in its Corporate Value-Up Plan. An ROE higher than COE means that the company is creating corporate value while outper-forming their shareholders’ expectation.

SK Square has also made progress in its Net Asset Value (NAV) discount rate, one of the key indicators of the Corporate Value-Up Plan*. SK Square’s NAV discount rate stands at 46.6% as of May 13th 2026, which is a significant improvement compared to the end of 2024 (65.7%) and the end of 2025 (51.5%). SK Square, in particular, in-cluded NAV discount rate in its Corporate Value-Up targets, for the first time among Korean holding companies. NAV discount rate is also incorporated in the key perfor-mance indicators for the company’s senior management.

SK Square has also continued its shareholder return initiatives. The company expects to offer shareholder return of KRW 310 billion in total from this year till the beginning of next year. In 2025, SK Square bought back its shares worth of KRW 200 billion, and plans to allocate a larger amount to shareholder return this year. It has been providing shareholder return through buyback and cancellation of its own shares since 2023.

SK Square is accelerating the effort to facilitate a virtuous cycle of investment, Val-ue-Up, and rebalancing of portfolios in 2026. The company sold its stake in Incross, a digital advertising company, to SK Networks in January 2026. It also made a preemp-tive investment in seven AI and semiconductor companies in the US and Japan, through its overseas investment firm ‘TGC Square.’

Going forward, SK Square plans to continue new investment and portfolio rebalanc-ing in the AI and semiconductor domains. The company is currently exploring new in-vestment opportunities in the areas addressing bottlenecks in AI evolution and semi-conductor value chains. 

“SK Square will concentrate its efforts on enhancing the corporate value through more active engagement with shareholders. We will innovate our business activities through AI and prepare new investment in AI and semiconductor sectors,” said Kim Jung-kyu, the CEO of SK Square.