SK Square unveiled a new plan to boost corporate value that targets cutting the net worth asset value (NAV) discount rate to 30% or lower by 2028. As the company was expected to achieve the existing plan released in Nov. last year ahead of schedule, it finalized new mid- to long-term targets after board discussions.
The net worth asset value discount rate is an indicator that shows the gap between a holding company's portfolio equity value and the corporate value assessed by the market. The lower the discount rate, the higher the market's evaluation. As of the end of the third quarter, SK Square's discount rate was 52.9%, a sharp improvement from the end of last year (65.7%). It has become more likely to achieve the previous goal of "50% or lower by 2027" ahead of schedule.
Along with this, the company also decided to extend to 2028 the targets for return on equity (ROE) and price-to-book ratio (PBR), which were the previous goals it achieved early. Specifically, it plans to continuously deliver ROE above the cost of equity (COE) during 2026–2028 and maintain a PBR of at least 1x by 2028.
SK Square said these results stemmed from the earnings recovery at SK hynix, improved profits and losses at key portfolio corporations, and proactive shareholder returns. Since it released its shareholder return policy in Mar. 2023, the company has consistently bought back its own shares in amounts exceeding 30% of annual recurring dividends income and has canceled about 6.6% of shares outstanding on a cumulative basis. This year as well, it is conducting a share buyback of 200 billion won.
President Kim Jeong-gyu of SK Square said, "We have continued to push a strategy to enhance corporate value centered on the board," and added, "We will continue to maximize the efficiency of capital allocation by balancing investment profitability and shareholder returns."