SKC’s Treasury Stock Disposal: What Happened?

On August 11, 2025, SKC announced its plan to dispose of 1,089,666 treasury shares (approximately KRW 125 billion) to issue convertible bonds. This move aims to improve the company’s financial structure and secure funds for new business investments.

Why the Treasury Stock Disposal?

SKC experienced sluggish performance in Q1 2025, with all business segments, including secondary battery materials, chemicals, and semiconductor materials, underperforming. The company is currently undergoing business restructuring. In this context, the treasury stock disposal is interpreted as a strategic decision to strengthen financial soundness and secure future growth engines.

Impact of the Treasury Stock Disposal

  • Positive Impact: Improved financial structure, potential for securing investment funds.
  • Negative Impact: Increased short-term stock price volatility, concerns over continued sluggish performance.

While the treasury stock disposal can positively impact the financial structure, it may also increase short-term stock price volatility. Furthermore, without fundamental performance improvement, sustained long-term stock price growth may be challenging.

What Should Investors Do?

Investors should closely monitor SKC’s efforts to strengthen its core business competitiveness, the efficient allocation of the procured funds, and the overall macroeconomic and industry outlook. It’s crucial to focus on the long-term perspective and carefully assess the company’s fundamental improvements rather than being swayed by short-term stock price fluctuations.