Layer 6 · 402340 — SK Square
Live: KRW 1,104,000 · Earnings (last): holding co — value tracks SK Hynix ~20% stake · Next earnings: not within 60d · Conviction: 3/10
Bottleneck context
SK Square is the listed holding company that owns ~20% of SK Hynix plus other minority stakes (semiconductor design, advertising). It exists as a NAV-discount vehicle — when SK Hynix re-rates, SK Square typically follows with a delay and at a discount. The Hynix bottleneck (HBM monopoly with NVIDIA pull-through) is the entirety of the thesis here.
Why Tier C
SK Square crossed the symbolic KRW 1M "emperor stock" threshold in May, hitting a 52-week high of KRW 1.149M, then pulled back -5% on Kospi foreign selling. The structural problem: NAV-discount mechanics introduce additional governance overhang on top of Hynix's own risk, and the entire position is redundant with direct 000660 ownership. The batch flipped this from B to C precisely for that reason — there is no scenario in which SK Square outperforms direct SK Hynix on a risk-adjusted basis except via discount narrowing, which is governance-dependent.
Watch trigger
Discount to NAV narrows below 30% on confirmed buyback or restructuring announcement.
Position guidance
No position. Hold SK Hynix directly via 000660.