1. SKC’s ₩125 Billion Convertible Bond Issuance: What Happened?

On August 26, 2025, SKC announced its decision to issue ₩125 billion in private placement convertible bonds. These bonds are exchangeable for SKC shares at a conversion price of ₩114,714, with a conversion period from September 26, 2025, to July 26, 2055.

2. Why the Convertible Bonds?: Background and Objectives

SKC is navigating a challenging period due to sluggish performance in its secondary battery materials business. The funds raised through this bond issuance are intended for operational expenses, investments, and improving the company’s financial structure. Notably, SKC is expected to focus investment on securing future growth engines, such as eco-friendly and semiconductor materials.

3. SKC’s Future Outlook: Business Segment Analysis and Investment Strategy

  • Secondary Battery Materials: While short-term underperformance is expected, SKC plans to continue investing in preparation for market recovery.
  • Chemical Materials: This segment is projected to contribute to financial stability through consistent revenue generation.
  • Semiconductor Materials: Driven by growth in the AI semiconductor market, this sector is expected to maintain strong growth momentum.
  • Eco-Friendly Materials: SKC aims to secure future growth by expanding its eco-friendly materials business, including biodegradable plastics.

4. Investor Action Plan: What Should Investors Do?

Investors should exercise caution in the short term, monitoring the recovery of the secondary battery materials business and macroeconomic factors. A long-term perspective requires focusing on the performance of semiconductor and eco-friendly materials businesses. Investment opportunities may arise with the turnaround of the secondary battery business and tangible results from new ventures.