SK Square reports good Q2 results after spin-off last Nov.

SK Square, an investment-focused SK Telecom spin-off, reported 493.8 billion won ($376.7 million) in net profit for the April-June period, a 6.2 percent increase from the previous quarter.

As SK Square was spun off from SK Telecom last November, neither a market consensus nor corresponding figures from the previous year were provided.

Sales came in at 1.53 trillion won, up 15.7 percent quarter-on-quarter, and operating profit at 509.3 billion won, up 34.0 percent, according to an earnings report released Tuesday.

SK Square is 30.01 percent owned by SK Inc., its largest shareholder, and focuses on investments in semiconductors, media and related businesses.

As an investment company, its net reflects equity method profit or loss from associate companies. SK Square's investment portfolio involved 19 companies as of the end of June.

The company owns 20 percent of SK hynix and is the largest shareholder. The chipmaker's shares were assets transferred from SK Telecom during the spin-off. In the second quarter, the 43.8-billion-won dividend yield from SK hynix was included in the earnings, according to SK Square.

SK Square owns 80 percent of 11st e-commerce service, 66 percent of Tmap Mobility navigation service, 47 percent of One store app market and 36 percent of Wavve video streaming service. It also acquired 33.20 percent of Korbit, a cryptocurrency exchange, in January.

For the future, SK Square aims to expand investment in the semiconductors and ICT sectors. The goal is to bring in additional investments from both home and abroad, and to set up strategic partnerships with other companies.

“Global top-tier investment companies are flexibly adjusting their portfolio in line with the macroeconomic situation,” said Jeong Jae-heon, head of SK Square’s investment support center. “We will enhance shareholder value by making new investments and realizing investment profits, as this is a good time for mergers and acquisitions.”

In July, SK Square sold its 28.4 percent stake in NanoEntek, a local bio and healthcare company, for 58 billion won. The sale will be reflected in the earnings in the second half of year.

Meanwhile, SK Shieldus, a security company 63 percent owned by SK Square, scrapped its plan to go public in May due to unfavorable market conditions.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]