This article was published on Aug. 12, 2025, at 4:59 p.m. on ChosunBiz MoneyMove site.
SK Group's materials specialist SKC has issued an exchangeable bond worth 385 billion won in two months, with private equity fund (PEF) operator Helios Private Equity (PE) participating as an underwriter. The background is attributed to the acquisition and merger (M&A) of ISC. Two years ago, Helios PE sold semiconductor testing solution provider ISC to SKC, and as ISC's performance has improved, there are analyses suggesting this transaction was made as a sort of reward.
On the 12th, according to the investment banking (IB) industry, SKC issued 125 billion won of company stock-based exchangeable bonds (EB) the previous day. This comes just two months after issuing 260 billion won of EB in June. SKC noted that this was to raise funds for new business initiatives such as glass substrates; however, prevailing analysis suggests that the action was taken before the bill mandating the retirement of treasury stock was passed.
EB refers to a bond that grants the right to exchange it for specific shares of the issuing company. In this case, it is a bond that can be exchanged for SKC stock. Its benefits include a reduced risk of loss when stock prices stabilize, and revenue is secured to some extent through interest. Two months ago, the EB issued by SKC was acquired by Korea Investment Private Equity (PE) for 250 billion won and Helios PE for 10 billion won.
At the time, questions arose in the market regarding why Korea Investment Holdings, with substantial financial power, did not proceed with a sole acquisition and instead shared part of the EB amount with Helios PE, as Korea Investment Holdings had been leading the transaction from the beginning. Although it seems unlikely they would split a hard-fought deal, it is rumored that SKC's influence, having benefited from the ISC M&A, played a role.
Since SKC's acquisition, ISC's performance has surged, proving itself to be a cash cow. SKC's operating losses grew from 213.7 billion won in 2023 to 276.8 billion won last year. Meanwhile, ISC's operating profit soared from 10.7 billion won to 44.8 billion won in the same period. Revenue also increased from 140 billion won to 170 billion won. Based on last year's figures, ISC was the only one of the 15 companies SKC had management participation in that posted net profit.
The securities industry anticipates that ISC will achieve an operating profit of about 54 billion won this year. Kim Min-kyung, a researcher at Hana Securities, noted, "Investments in artificial intelligence (AI) infrastructure will continue steadily, leading to growth in socket sales for graphics processing units (GPUs) and application-specific integrated circuits (ASICs), and the new product launch effects from client companies will also increase application processor (AP) sales."
An IB industry source said, "It seems that Helios PE handed over the solid company ISC to SKC as a result," adding that, "While it may not be a favorable situation for Korea Investment Holdings, changes in transaction structures or counter parties based on the influence of the issuer are common in the industry."
SKC acquired a 45.03% equity stake in semiconductor testing solution provider ISC from Helios PE for 522.5 billion won in 2023. Through this acquisition, SKC has enhanced its testing solution lineup in the semiconductor front-end and back-end processes (SK Enpulse and Absolix). Founded in 2003, ISC was the first company to commercialize silicon rubber sockets for semiconductor testing.