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A view of T Tower, SK Square's headquarters. / Courtesy of SK Square

SK Square plans to enhance shareholder value by returning more than 60% of its dividend income from subsidiaries, including SK Hynix, to shareholders. With SK Hynix set to pay a special dividend related to investment gains from Kioxia this year, SK Square's shareholder returns are expected to reach their highest level since its launch.

On Nov. 2, SK Square disclosed its shareholder return plan for next year, announcing that it would return approximately 70% of the dividend income it receives from SK Hynix to shareholders. According to the company, it expects to receive around 6.2 trillion won in dividend income from SK Hynix's cash dividends and plans to return at least 4.3 trillion won of that amount to shareholders.

The company also disclosed that it plans to "return at least 60% of recurring dividend income to shareholders through 2028 and 100% of the special dividend income related to Kioxia investment gains announced in SK Hynix's latest shareholder return plan."

SK Square had previously announced that, under its shareholder return policy through 2028, it would return at least 30% of recurring dividend income and a portion of investment gains to shareholders. However, with dividend income rising sharply this year, the company has decided to double the proportion of dividend income returned to shareholders through 2028 and return all special dividend income to shareholders.

Meanwhile, earlier this year, SK Square converted 5.89 trillion won in capital reserves into retained earnings, proactively establishing a sustainable shareholder return structure.

"The announcement of this shareholder return plan reflects the board of directors' firm commitment to enhancing shareholder value," SK Square said. "We will also carefully prepare new investments based on the principle of rational capital allocation."

                                                                                                              Lee Ji-sun