What Happened?

Korea Investment 2024 No.1 Private Equity Fund acquired a significant stake in SKC through exchangeable bonds. This goes beyond simple investment and could influence SKC’s management. The simultaneous disclosure of Korea Investment & Securities’ derivatives transactions appears related to this acquisition but is expected to have limited direct impact.

SKC’s Current Situation

SKC experienced poor performance in Q1 2025 due to a combination of falling sales prices in the secondary battery materials business, rising raw material costs, and restructuring efforts. However, the restructuring for long-term growth can be seen as a positive signal. Notably, the semiconductor materials division maintains steady growth driven by the expanding AI market.

The Acquisition’s Impact on SKC’s Future

  • Positive Aspects: The large influx of funds could improve SKC’s financial structure and create new investment opportunities. It’s also expected to contribute to long-term management stability.
  • Negative Aspects: Increased uncertainty due to the management change and the possibility of strategic shifts under the new leadership pose risks for investors.

What Should Investors Do?

Increased volatility in SKC’s stock price is expected in the short term. Investors should maintain a cautious investment strategy while observing market reactions. In the long term, Korea Investment’s management strategy and SKC’s success in improving profitability in its secondary battery materials business will determine the stock’s direction. Continuous monitoring of Korea Investment’s management plans, SKC’s business plans, and the macroeconomic environment is crucial.