SK Square said on Feb. 24 it achieved record results last year, posting revenue of 14.1 trillion won, operating profit of 87.9 trillion won and net profit of 88.2 trillion won on a consolidated basis.

SK Square said it rose to fifth in market capitalisation on the KOSPI at the day’s close as a result of focusing on its artificial intelligence and semiconductor portfolio and delivering profitability-driven management results. Its current market value stands at about 81.5 trillion won, about eight times higher than in early January last year, when it was 10.6 trillion won.

Its focus on the AI and semiconductor portfolio paid off. It increased equity-method gains from SK hynix, while quickly monetising stakes in existing portfolio companies including Dreamus Company and Incross. It also co-invested 30 billion won in seven AI and semiconductor growth companies in the United States and Japan, achieving investment returns of up to seven times.

It is also securing market intelligence needed for an investment company. At the same time, it is preparing new investments by seeking opportunities in areas that resolve bottlenecks in AI evolution and in the semiconductor value chain.

In terms of profitability-driven management results, the combined annual operating profit and loss of major ICT portfolio companies including T Map Mobility, SK Planet, 11st, One Store, FSK L&S and Incross came to -47.4 billion won, an improvement of 77.5 billion won, or 62 percent, from 2024.

T Map Mobility in particular swung to profit, posting earnings before interest, taxes, depreciation and amortisation of 4.4 billion won and net profit of 23.3 billion won. That marked increases of 29.9 billion won and 100.7 billion won, respectively, from a year earlier. Its operating loss also narrowed by about 70 percent from a year earlier to -14.1 billion won. Revenue from AI-based mobility data and solution businesses, including TMAP Auto, safe driving insurance and advertising, rose 35.8 percent from a year earlier.

SK Square is also working to enhance shareholder value. It achieved all goals in its corporate value enhancement plan announced in November 2024, including the net asset value discount rate, return on equity and price-to-book ratio, within about a year of the announcement. SK Square set a new goal to reduce its net asset value discount rate to 30 percent or below by 2028 by executing optimal capital allocation.

SK Square also completed total treasury share purchases of 200 billion won last year. In March, it plans to transfer 589.0 billion won from capital reserves to retained earnings, pending a resolution at its shareholders meeting. It aims to create a sustainable shareholder return structure through the transfer.

Kim Jung-kyu (김정규), CEO of SK Square, said the company will focus this year on innovating its portfolio businesses centred on AI. He said it will also continue preparing new investments in areas that resolve bottlenecks in AI evolution and in the semiconductor value chain.