SK Inc. (034730)

SK is the holding company of SK Group, the second-largest conglomerate in South Korea, operating through an investment division and a business division (SK Inc. C&C). Its main business areas are centered on four core businesses: Advanced Materials (semiconductors, battery materials), Green (eco-friendly energy solutions, hydrogen, EV batteries), Bio (new drug development, contract manufacturing of active pharmaceutical ingredients), and Digital (ICT, AI, autonomous driving, data centers). Key products and services include semiconductors such as High Bandwidth Memory (HBM) through SK Hynix, EV batteries from SK On, petroleum and chemical products from SK Innovation affiliates, telecommunication services and AI-based solutions from SK Telecom, and IT services from SK Inc. C&C. Revenue is generated from a diversified portfolio including dividends from subsidiaries, brand royalties, IT services, sales of advanced materials and green business products, and telecommunication services. The performance of major subsidiaries significantly impacts SK's overall revenue. SK Hynix holds a global leadership position with over 70% market share in the HBM market, while SK Telecom records a 39.2% market share in the domestic wireless telecommunications market. SK secures a strong competitive advantage based on its diversified business portfolio and advanced technological capabilities. In particular, through SK Hynix, it possesses overwhelming technological leadership and market share in the HBM sector, a core component of AI semiconductors, and has established a vertically integrated value chain from energy and materials to finished product technology. Furthermore, SK Telecom maintains a solid market position, having held the top spot in customer satisfaction in the domestic telecommunications market for a long period. SK's annual revenue decreased by approximately 3.17% from KRW 127.435 trillion in 2023 to KRW 123.3997 trillion in 2024, and is projected to slightly decrease by 0.56% year-over-year to KRW 122.7033 trillion in 2025, showing a trend of downward stabilization. Operating income significantly decreased by 40.18% from KRW 8.0047 trillion in 2022 to KRW 4.7885 trillion in 2023, then sharply declined by 49.96% to KRW 2.3960 trillion in 2024, followed by an additional 24.08% decrease to KRW 1.8185 trillion in 2025, indicating a continuous downward trend. Consequently, the operating income margin also shows a continuous downward trend, recording 3.76% in 2023, 1.94% in 2024, and 1.48% in 2025. Looking at the quarterly performance for 2025, Q1 revenue was KRW 31.2299 trillion and operating income was KRW 399.8 billion. However, Q2 recorded an exceptional loss with revenue of KRW -1.088 trillion and operating income of KRW -200.2 billion. Subsequently, Q3 revenue was KRW 899.4 billion and operating income was KRW 627.8 billion, while Q4 revenue was KRW 91.6620 trillion and operating income was KRW 991.1 billion, completing the annual performance. Examining SK's financial soundness, the debt-to-equity ratio fluctuated slightly from 170.87% in 2022 to 165.76% in 2023 and 167.76% in 2024, before improving to 149.17% in 2025, indicating enhanced financial stability. The current ratio decreased from 103.08% in 2022 to 99.21% in 2023 and 94.27% in 2024, but then rose again to 106.78% in 2025, indicating improved short-term liquidity. Return on Equity (ROE) was 5.52% in 2022, and figures for 2023 to 2025 are not specified in the provided data. Under its 'New SK' vision, SK is accelerating its transformation into an AI-centric company, planning large-scale investments totaling KRW 82 trillion in AI and semiconductor sectors by 2028. It is securing future growth engines through strategic investments in high-growth industries such as AI semiconductors like HBM and EV batteries. Furthermore, it aims to preempt new markets through early entry into eco-friendly energy solutions such as green hydrogen and Small Modular Reactors (SMRs). Based on this diversified portfolio and technological leadership, SK is expected to pursue continuous growth amidst intensifying global competition and a rapidly changing technological environment.