SK Inc. (034730) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
SK Inc. is the holding company of the SK Group. It owns stakes in affiliates spanning energy, telecommunications, semiconductors and biotech, collecting dividends and equity-method income from them, and it also runs an enterprise IT services business directly. First-quarter 2026 consolidated revenue was ₩36.7513 trillion, up 18.9% from a year earlier, while operating profit jumped to ₩3.6731 trillion, and on 31 July the company agreed to hand over its entire stake in SK Siltron for ₩2.3 trillion. The notable point recently is that the market capitalization sits at a discount to the value of its listed holdings toward the wide end of the usual range while semiconductor-affiliate profits have surged, yet net borrowings have reached ₩47 trillion and a large share of earnings leans on equity-method income and one-off items.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Holding Companies”, a type typically read first through discount to NAV.
A holding company is less a maker of products than a vessel that holds stakes in several subsidiaries. So rather than an earnings multiple, the first lens is the discount to NAV — the market value against the summed worth of everything it owns.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue fell 0.6% year over year (3-year trend: falling).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 18.9% higher than a year earlier.
- ROE is 26.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.9%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2022-12-31
Largest shareholder Chey Tae-won 17.5% (individual)
Controlling bloc incl. related parties 24.88%
With the controlling bloc holding 25%, control is maintained but the free float is relatively large.
Net asset value (NAV) assessment 42% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| SK Biopharmaceuticals | 64% |
| SK Innovation | 52.09% |
| SK Networks | 43.9% |
| SKC | 40.64% |
| SK Square | 32.14% |
| SK Telecom | 30.57% |
🔎 In-depth analysis Reading
SK Inc. is the holding company of the SK Group. Rather than making and marketing products itself, it mainly holds stakes in affiliates and collects dividends, equity-method income (an accounting method under which the portion of a subsidiary's profit matching your ownership stake is booked as your own profit) and trademark royalties. Its holdings fall into four main pillars: SK Innovation, which covers refining, chemicals and batteries; SK Telecom in telecommunications; SK Square, the semiconductor investment arm, which holds the stake in SK Hynix; and the bio and materials group including SK Biopharmaceuticals. On top of that, SK runs businesses of its own — enterprise IT services and data centers and cloud. Consolidated revenue of ₩122.7033 trillion comes mostly from the refining, chemicals and telecom subsidiaries, but what holding-company shareholders actually keep is the profit attributable to those ownership stakes, which moves separately from the sheer size of revenue. In fact, a substantial part of the ₩9.9063 trillion of consolidated net profit in the first quarter of 2026 came from subsidiaries that are not wholly owned, so the portion flowing through to holding-company shareholders is smaller than that.
The latest close is ₩509,000 and the market capitalization is ₩36.9 trillion. The price sits below its 20-day moving average (₩573,775) and below its 60-day moving average (₩625,208). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 42.1, a neutral level. The one-month change is -18.7%, the three-month change is -2.1%, and the position relative to the 52-week high is -40.7%. Relative strength versus the KOSPI is 73 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 73% of all stocks. Over the past three months it outpaced the index by 11.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
A holding company misleads if it is read with the same yardstick as an ordinary manufacturer. An operating margin of 1.48% and a net margin of 1.30% look thin, but that is because low-margin businesses such as refining and distribution are consolidated into revenue in full. Return on equity (ROE, how much is earned in a year on shareholders' money) is 6.34%. A debt-to-equity ratio of 507.5% and interest coverage of 0.18x also look heavy on the face of it, yet those figures largely reflect the nature of holding-company consolidation, in which all subsidiary borrowings are added together. Even so, net borrowings of ₩46.9866 trillion are not a light load, and that deserves attention. The price-to-earnings multiple (P/E, how many times one year of profit the share price represents) is 23.74x and the price-to-book multiple (P/B, how many times book shareholders' equity the share price represents) is 1.51x. In a holding company, though, P/B is especially deceptive, because subsidiary stakes are carried on the books at acquisition cost and equity-method carrying value rather than at market prices. That is why the first metric to look at here is the discount to net asset value (NAV, the market value of all holdings and assets added together, minus debt). Against ₩82.1 trillion of listed holdings the discount is 47.6%, toward the wide end of the 30-50% range holding companies typically show. Recalculating with the current market capitalization of ₩37.9189 trillion widens the discount to about 54%. The share price has fallen sharply over the past month, which has opened the discount further, though subsidiary share prices may have moved over the same period, so the exact gap changes daily. Cash flow deserves a look as well. Enterprise value (EV, market capitalization plus net borrowings — roughly what it would cost to acquire the whole company) is ₩96.506 trillion, which works out to 9.54x on earnings before depreciation and amortization and 0.79x on revenue. Free cash flow (operating cash minus capital expenditure) is negative ₩3.9821 trillion, or -8.04% of market capitalization. That is because subsidiaries keep pouring money into refining facilities and into semiconductor and environmental businesses; how much the ₩2.3 trillion of SK Siltron disposal proceeds arriving in early 2027 eases that burden is the point to watch. On dividends, the 2025 payout was ₩8,000 per share for a 1.53% dividend yield and a 27.6% payout ratio, and in 2026 an interim dividend of ₩1,500 has been added.
Start with the long arc. Revenue slid for three straight years, from ₩134.5516 trillion in 2022 to ₩122.7033 trillion in 2025. Operating profit fell more steeply still, from ₩8.0047 trillion in 2022 to ₩4.7885 trillion in 2023, ₩2.396 trillion in 2024 and ₩1.8185 trillion in 2025 — the stretch in which refining margins and the chemicals cycle sank, printed straight onto the numbers. Net profit, by contrast, swung from losses in both 2023 and 2024 to a ₩1.5975 trillion profit in 2025. In 2026 the direction changed decisively. First-quarter consolidated revenue was ₩36.7513 trillion, up 18.9% from a year earlier, and operating profit reached ₩3.6731 trillion, 7.6x the year-earlier level. Net profit also rose 175.9% to ₩9.9063 trillion. The core of it is that the center of gravity for profit has shifted from refining to semiconductors. SK Hynix's preliminary second-quarter results, disclosed on 29 July 2026, showed revenue of ₩79.3187 trillion and operating profit of ₩60.5426 trillion, up 61.0% from the prior quarter, with first-half cumulative operating profit of ₩98.1529 trillion. SK recognizes that profit through SK Square under the equity method. Because more than half of this year's profit already comes from a first half locked in by disclosure, the remaining uncertainty narrows to the second half. In the second half, rising memory contract prices and expanding HBM4 shipments leave room for equity-method income to grow further, and the derivative valuation loss at SK Innovation that weighed on second-quarter net profit is not the sort of item that repeats every quarter. Building the second-half industry backdrop on top of those confirmed results gives an in-house estimate of expected net profit that puts the forward price-to-earnings multiple at 1.8x. One caveat belongs alongside it: the second quarter also included large one-off non-operating gains, so recurring earnings power stripped of those is lower than that.
The summer of 2026 was a turning point in SK's business restructuring. On 31 July the board decided to hand its entire holding of SK Siltron common shares to Doosan for ₩2.3 trillion. The stated purpose was to strengthen the balance sheet and raise funds for future growth engines. Because the transaction is scheduled to close on 31 January 2027, however, it will not show up in this year's results. On the same day the board also approved an interim dividend, disclosed on 3 August: ₩1,500 per share, ₩82.65935 billion in total. On 3 August the company also disclosed a private placement of convertible bonds. At ₩8.706 billion the size is small, and even if the entire issue converted it would create just 15,970 new shares, equal to 0.02% of the total. Both the coupon and the yield to maturity are 0%, and the company said the proceeds would go entirely toward acquiring a stake in another entity. It is not on a scale that raises dilution concerns. On the other side of the ledger there were burdens too. On 30 July the subsidiary SK Innovation disclosed a ₩1.2169 trillion derivative loss tied to a price return swap. The amount equals 3.34% of shareholders' equity, and the company explained that it stems from fair-value measurement under accounting standards, is largely unrealized, and involved no cash outflow. On 2 July there was also a disclosure that a serious industrial accident had occurred at a subsidiary.
Start with the constructive side. First, there is more than one reason to see the valuation as low. The discount to the value of listed holdings sits toward the wide end of the usual range, and the forward price-to-earnings multiple of 1.8x, built up from confirmed results, is low against any large Korean holding company. Second, the source of profit has become clear. SK Hynix's first-half results are already locked in by disclosure, so a substantial part of this year's profit estimate rests on fact rather than guesswork. Third, there is a thread to pull on for balance-sheet improvement. The ₩2.3 trillion confirmed from the SK Siltron disposal would ease the net borrowing burden when it arrives, and the contract carries a separate excess-profit sharing component payable only if performance conditions for 2027-2034 are met, leaving room for further recovery. Fourth, the introduction of an interim dividend changes the texture of shareholder returns. On the other side, the cautions are equally clear. First, the quality of earnings. Most of net profit is equity-method income arriving through SK Square, so if the memory cycle turns, profit falls in a place the company cannot directly control. The second quarter also mixed in large one-off non-operating gains. Second, debt. With net borrowings of ₩46.9866 trillion and negative free cash flow, the borrowing burden carries straight through until the Siltron proceeds arrive in early 2027. Third, the possibility of dilution. SK Hynix went through a rights offering and an overseas depositary receipt issuance in July 2026, and procedures like these can lower existing shareholders' ownership percentages, which also affects the share SK holds indirectly. Fourth, the holding-company discount is structural in character, so there is no guarantee it narrows on its own even when subsidiary earnings improve. In sum, the price appeal against assets held and expected profit is distinct, but realizing that appeal requires the memory cycle and balance-sheet improvement to hold up together.
🔎 Valuation vs peers Undervalued
Compared against large Korean holding companies whose market value consists mostly of subsidiary stakes. SK Square in particular is a direct comparison because it is tied to the same memory-semiconductor earnings.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SK Square | 14.51x | 3.55x | 43.26% |
| LG Corp. | 21.86x | 0.53x | 1.69% |
| GS Holdings | 11.49x | 0.60x | 8.74% |
| HD Hyundai | 17.97x | 1.58x | 20.21% |
| Hanwha Corporation | 15.86x | 0.48x | 5.74% |
Start with where it sits. The reported price-to-earnings multiple of 23.74x is higher than SK Square's 15.33x, LG's 20.86x, HD Hyundai's 16.30x, Hanwha's 15.86x and GS's 9.84x. The price-to-book multiple of 1.51x is also above LG's 0.54x, GS's 0.53x and Hanwha's 0.50x. On the numbers alone, a premium is attached. Those two metrics, however, are poor tools for measuring this company. The denominator of the P/E — 2025 net profit of ₩1.5975 trillion — comes from a trough period in which operating profit had sagged to ₩1.8185 trillion. A multiple divided by trough earnings naturally comes out high. P/B is more problematic still. Subsidiary stakes on a holding company's books are carried at acquisition cost and equity-method value rather than at market prices, so however far subsidiary share prices rise, book equity does not reflect it. That is why a holding company should be measured by comparing market capitalization with a net asset value that marks all holdings to market, and on that basis the 47.6% discount sits toward the wide end of the 30-50% range typically seen. Shift to a forward-looking basis and the picture sharpens. The forward price-to-earnings multiple calculated on confirmed first-half results is 1.8x, lower than anywhere in the peer set. Forward price-to-book also falls below 1.0x, at 0.94x. Because the valuation is low on both assets held and profit still to be earned, we view it as undervalued. That judgment rests on the memory cycle holding up, however, and net borrowings of ₩46.9866 trillion and an earnings structure leaning on equity-method income are the parts that turn into a burden first if that premise gives way.
Price history Close · MA20 · MA60
The latest close is ₩509,000 and the market capitalization is ₩36.9 trillion. The price sits below its 20-day moving average (₩573,775) and below its 60-day moving average (₩625,208). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 42.1, a neutral level. The one-month change is -18.7%, the three-month change is -2.1%, and the position relative to the 52-week high is -40.7%. Relative strength versus the KOSPI is 73 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 73% of all stocks. Over the past three months it outpaced the index by 11.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +11.51% / 6M +33.60% / 12M +29.60%
Key metrics Computed vs whole-market median
Valuation
The P/E of 23.10x is above the whole-market median (12.97x). The P/B of 1.25x is above the whole-market median (0.84x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 26.8%, above the whole-market average (3.0%). The operating margin is 3.9%. The debt ratio is 445.3%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $89.5B | $86.7B | $86.2B | -0.56% ↑ faster |
| Operating profit | $3.4B | $1.7B | $1.3B | -24.10% ↑ faster |
| Net profit | -$545.7M | -$908.1M | $1.1B | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $68.3B | $94.5B | $89.5B | $86.7B | $86.2B |
| Operating profit | $3.4B | $5.6B | $3.4B | $1.7B | $1.3B |
| Net profit | $4.0B | $2.8B | -$545.7M | -$908.1M | $1.1B |
| Revenue CAGR | 4-yr avg 6.00% | ||||
Revenue fell 0.6% year over year (2023 ₩127.4 trillion → 2024 ₩123.4 trillion → 2025 ₩122.7 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 24.1% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.0%. The two-year revenue CAGR is -1.9%. In the most recent quarter (Q1 2026), revenue was 18.9% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 26.8% points to solid profitability.
Points to watch
- Revenue fell 0.6% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-07-31FilingDecision to dispose of all 47,322,350 SK Siltron common shares (a 70.6% stake) to Doosan for ₩2.3 trillion, with closing scheduled for 31 January 2027The confirmed ₩2.3 trillion of proceeds would relieve a substantial part of the net borrowing burden, which stands at ₩46.9866 trillion. Closing is set for January 2027, however, so it will not be reflected in 2026 results. The contract carries a separate excess-profit sharing component payable only if annual performance conditions for 2027-2034 are met, so the confirmed amount and the contingent remainder should be viewed separately. The shares being disposed of include 34,181,910 the company already holds and 13,140,440 it expects to acquire by exercising a call option under a total return swap. Source
- 2026-08-03Dividend2026 interim dividend approved — ₩1,500 per common share, ₩82.65935 billion in total, record date 18 August 2026, payment date 31 August 2026Adding an interim dividend on top of the annual payout tightens the cadence of shareholder returns. The 2025 annual dividend was ₩8,000 per share with a 27.6% payout ratio. This interim dividend yields 0.3% on the market price, so the single payment is not large in itself, but it can be read as a signal that policy has shifted toward spreading dividends across the year. Source
- 2026-08-03FilingDecision to issue ₩8.706 billion of first-series unregistered, unguaranteed private-placement convertible bonds — 0% coupon and 0% yield to maturity, conversion price of ₩544,785 per share, maturity 18 August 2028Even if the entire issue converted into shares, only 15,970 new shares would be created — just 0.02% of the total — so the effect on existing shareholders' stake is effectively negligible. The company said the ₩8.706 billion raised would go entirely toward acquiring a stake in another entity. Conversion can be requested from 18 August 2027, and because this is a private placement the bond itself is not listed on the exchange. Source
- 2026-07-30UpdateSubsidiary SK Innovation books a ₩1.2169 trillion derivative loss related to a price return swap (3.34% of shareholders' equity)The loss is recognized on a cumulative first-half 2026 basis, and the company said it results from fair-value measurement under accounting standards, is largely unrealized, and involved no actual cash outflow. It weighed on second-quarter net profit, but given the nature of a valuation loss it could reverse in the opposite direction if the price of the underlying asset recovers. Source
- 2026-07-29EarningsSK Hynix preliminary second-quarter 2026 results — revenue of ₩79.3187 trillion and operating profit of ₩60.5426 trillion (+61.0% from the prior quarter), with first-half cumulative operating profit of ₩98.1529 trillionBecause SK recognizes this profit through SK Square under the equity method, these results effectively determine the direction of SK's earnings this year. With the first-half portion already locked in by disclosure, the uncertain stretch in this year's estimate has narrowed to the second half. Second-quarter pre-tax profit did include large one-off gains arising outside of operations, however, so recurring earnings power should be read separately, through the operating profit trend. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| SK Siltron stake disposal proceeds | — | 2₩300.0 billion | Confirmed | link |
| 2026 interim dividend per share | 1 ₩8,000 | 1 ₩1,500, 8265,935 | Confirmed | link |
| Discount of market capitalization to the value of listed holdings | 47.6% | — | Unverified | link |
| SK Hynix second-quarter 2026 operating profit | — | 60₩542.6 billion | Confirmed | link |
| Scale of the subsidiary's derivative loss | — | 1₩216.9 billion | Confirmed | link |
| First-quarter 2026 consolidated results | revenue 36₩751.3 billion, operating profit 3₩673.1 billion, net profit 9₩906.3 billion | — | Unverified | link |
Recent filings Source
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-28Amended filing
- 2026-05-28Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-20OwnershipLargest-shareholder ownership change report
- 2026-05-20OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.