SK Square (402340) Stock Outlook 2026: NAV Discount, SK Hynix Stake, and the ICT Holding Play

Among the various ways to invest in Korea’s technology sector, SK Square offers an unusual proposition: a holding company that owns a significant stake in SK Hynix — one of the world’s most important memory chip manufacturers — alongside a collection of Korean internet and technology platform assets.

The structure creates an interesting valuation dynamic. At various points, the market value of SK Square’s SK Hynix position alone exceeds SK Square’s total market cap. This means every other asset in the portfolio — an e-commerce platform, a navigation service, a domestic app store — comes at no implied cost to the investor.

This is the essence of the NAV discount trade. The question for 2026 is whether that discount is a feature (deep value opportunity) or a bug (structural inefficiency that never resolves).

The SKT Spinoff: Strategic Logic

SK Telecom’s decision to spin off its investment assets in November 2021 followed a pattern visible in other Korean chaebols: telecom operators trading at defensive valuations that suppress the perceived value of high-growth ICT assets.

By separating the telecom cash cow (retained in SKT) from the ICT growth portfolio (housed in SK Square), management aimed to allow each entity to be valued on its own merits.

Post-split structure:

Entity	Business	Core Asset
SK Telecom (SKT)	Mobile telecom, B2B ICT	Network infrastructure
SK Square (402340)	ICT investment holding	SK Hynix stake

Whether the split has succeeded in eliminating the conglomerate discount is debatable — SK Square still trades at a discount to its underlying NAV, but it provides a cleaner investment expression of the portfolio than the old bundled SKT structure.

Portfolio Deep Dive

SK Hynix (000660) — The Dominant Asset

SK Hynix is South Korea’s second-largest chipmaker and the global leader in HBM (High Bandwidth Memory) for AI accelerators. SK Square holds a significant equity stake. The trajectory of SK Hynix — particularly its HBM4 generation roadmap and DRAM cycle positioning — is the single most important factor for SK Square’s NAV.

Related: SK Hynix (000660) HBM Semiconductor 2026 →

11Street — The e-Commerce Question Mark

11Street is a Korean e-commerce marketplace that competes in a market where Coupang has established dominant logistics infrastructure and Naver Shopping integrates seamlessly with Korea’s top search engine. The strategic options for 11Street (IPO, strategic sale, continued operation with investment) directly affect SK Square’s cash position and asset valuation.

OneStore — The Google Play Alternative

OneStore is a Korean alternative to Google Play, supported by Korea’s three major telecom operators and Naver. It exists partly as a national interest project to provide Korean developers and consumers an alternative to Google’s 30% commission structure. Its commercial value depends on developer adoption and government support for domestic app distribution.

Tmap Mobility — Navigation to Platform

Korea’s most widely used navigation app has evolved into a broader mobility service. The Uber strategic investment in Tmap Mobility validates the asset’s potential as a ride-hailing and transportation platform. This is the asset in SK Square’s portfolio with the clearest “platform company” growth narrative.

The NAV Discount Mechanics

For investors who want to quantify the discount:

Simplified NAV calculation:

1. Calculate SK Hynix stake value: (Shares held × SK Hynix price)
2. Estimate other subsidiary values from latest funding rounds or comparable valuations
3. Subtract net debt
4. Compare to SK Square’s market cap

When SK Hynix stock price is elevated (as during HBM cycles), the NAV discount can appear extreme — SK Square trading at a significant discount to its SK Hynix position alone.

When discounts narrow:

• Subsidiary IPOs or M&A realizations that convert paper value to cash
• Aggressive share buybacks funded by subsidiary dividends
• Governance improvements that reduce management discretion uncertainty
• Macro environments where investors favor holding company structures

Why discounts persist:

• Double-taxation on dividend flows
• Uncertainty about crystallization timing
• Structural preference for direct investment over holding company wrappers

Bull, Base, Bear Scenarios

Bull Case

• SK Hynix HBM4 cycle drives significant NAV expansion
• 11Street IPO or strategic sale unlocks meaningful cash for SK Square
• Share buyback program narrows the NAV discount from 30% to 15-20%
• Tmap Mobility attracts additional strategic investors at a higher valuation
• The sum-of-parts thesis plays out as each asset finds independent value expression

Base Case

• SK Hynix maintains strong operational performance; SK Square NAV is stable to growing
• Subsidiary monetization is delayed but progressing
• NAV discount stays in the 25-35% range; stock tracks SK Hynix directionally
• Moderate shareholder return through dividends

Bear Case

• SK Hynix faces HBM headwinds; stake value contracts sharply
• 11Street’s competitive decline pressures the e-commerce asset value
• No subsidiary monetization events; capital allocation concerns linger
• SK Group governance issues create additional conglomerate discount

Foreign Investor Practical Notes

Market access: KOSPI-listed only. No US ADR. Requires Korean or international broker with KOSPI access.

Dividends: SK Square’s dividends depend on cash received from subsidiaries. Withholding rate for foreign investors: standard 22% (15% under applicable treaty).

Capital gains: South Korea generally does not tax foreign investors on capital gains from KOSPI stocks under most treaties.

Information sources:

• DART: dart.fss.or.kr (search 402340)
• SK Square IR: ir.sk-square.com
• SK Hynix tracking as a proxy for NAV movement

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• Investing Beginners Guide

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This article is for informational purposes only and does not constitute investment advice. Stake values, portfolio valuations, and financial figures must be independently verified via DART or official company IR materials.