**”NAV Discount Rate – Link to Executive Management KPIs and Compensation Aligns with Global Standards”**
On the 22nd, the Korea Corporate Governance Forum (the Forum) awarded SK Square (represented by CEO Han Myung-jin) an ‘A’ grade for its value-up plan to enhance corporate value. This is the highest grade among non-financial companies evaluated by the Forum.
**View of SK Square Headquarters T Tower [Photo: SK Square]**
The Forum commended SK Square’s value-up plan and shareholder returns, referring to it as “an exemplary case of a holding company keeping promises to its shareholders.” Lee Nam-woo, chairman of the Forum, commented, “With total shareholder returns (TSR) recorded at 57% for 2023 and 61% by the end of October 2024, it’s one of the most shareholder-friendly and exemplary domestic holding companies.”
Furthermore, Lee remarked, “We positively assess the corporate value enhancement plan, which shows signs of deep consideration centered on the board of directors, and we are surprised that they acknowledged the cost of equity (COE). The fact that the board has implemented a capital allocation policy considering the NAV discount rate since last year and linked it to core KPIs and compensation for executives aligns with global standards.”
Earlier, SK Square set its corporate value enhancement goals to include: △ reducing the NAV discount rate to below 50% by 2027; △ achieving a return on equity (ROE) exceeding the cost of equity (COE) from 2025 to 2027; and △ reaching a price-to-book ratio (PBR) of 1 or higher by 2027.
Additionally, a 200 billion KRW shareholder return plan was announced. This includes canceling 100 billion KRW worth of treasury stocks previously purchased in April this year and buying and canceling another 100 billion KRW worth of treasury stocks within three months starting from the 25th. Since its launch in November 2021, SK Square has completed the purchase and cancellation of cumulative 310 billion KRW worth of treasury stocks.