1. SK Interim Dividend Decision: What Happened?

SK Corporation will pay an interim dividend of KRW 1,500 per share, payable on August 29, 2025. The current dividend yield based on the stock price is 0.7%, which is relatively low. This interim dividend, paid before the year-end dividend, can be interpreted as a positive signal for shareholders.

2. Low Dividend Yield, Why?

The low dividend yield of 0.7% suggests that SK is focusing on reinvestment for future growth. A high reinvestment rate can be positive for securing long-term growth momentum, but it may have a limited impact on short-term stock price increases. It can also be interpreted as a conservative financial strategy in response to growing external uncertainties, such as concerns about an economic recession.

3. So, What’s the Investment Strategy?

The investment strategy for SK Corporation should vary depending on the investor’s investment propensity and target rate of return. Long-term investors can focus on SK’s future growth potential despite the low dividend yield. On the other hand, short-term investors should react more sensitively to stock price volatility than dividend yield.

  • Long-term investment: Invest in future growth potential. Consider a dividend reinvestment strategy.
  • Short-term investment: Pay attention to stock price volatility. Monitoring subsidiary performance and macroeconomic indicators is important.

4. Action Plan for Investors

Before making an investment decision, carefully review the following:

  • Analyze the performance and outlook of SK’s major subsidiaries (SK Hynix, SK Innovation, SK Telecom).
  • Monitor domestic and international macroeconomic indicators (interest rates, exchange rates, oil prices, etc.).
  • Understand competitor and industry trends.

Based on this information, make prudent investment decisions considering your investment objectives and risk tolerance.