Factual Summary
SK D&D has focused on real estate development and operations since transferring its renewable energy and ESS businesses to SK Eternix through a spin-off in March 2024. In Q1 2026 (consolidated basis, filing no. 20260514000745), revenue was KRW 70.3 billion, down 22.5% year-on-year, and the company swung to a loss with an operating loss of KRW 9.3 billion and a net loss of KRW 20.6 billion. In June 2026, Korea Ratings and Korea Investors Service downgraded the company's unsecured corporate bond rating from BBB to BBB-, citing the exclusion of potential group support following the change in the largest shareholder. On August 11-12, 2026, SK Discovery sold its entire 31.27% stake to Hahn & Company Development Holdings LLC, making Hahn & Company the sole largest shareholder (combined stake of 78.69%); during the same period, the company has been pursuing a rights offering of new shares for debt repayment purposes (approximately 240% of existing listed shares, expected proceeds of KRW 136.7 billion).
Change Context Note
Following the July 28, 2026 board resolution disclosure on the rights offering, the share price approached the daily lower limit on July 29, and volatility widened further — for example, on August 6, 2026, after news broke on August 5 that the Financial Supervisory Service had requested corrections to the securities registration statement, the stock hit the daily upper limit, rising 29.84% from the previous close to KRW 5,940. The reference-date (2026-08-18) closing price of KRW 4,805 is well below the 52-week high of KRW 13,810. Over the same period (2026-07-20 to 2026-08-18, based on alphasquare aggregation, not cross-checked against the primary KRX source), foreign and institutional investors were net sellers on a cumulative basis, while retail investors were net buyers.
Business Overview
SK D&D was founded in 2004 (originally Apelon Co., Ltd., renamed in 2007) and listed on the KOSPI market in June 2015 (Namu Wiki). Through a spin-off in March 2024, it transferred its renewable energy and ESS businesses to SK Eternix (ticker 475150, a separately listed company), and the surviving entity, SK D&D, was reorganized into a real estate development and operations company covering offices, knowledge industry centers, rental housing, data centers, and logistics centers (Electronic Times, 2024-03-04). Its main business pillars are the knowledge industry center brand 'Sangkak Gongjang' ('Think Factory'; flagship site Sangkak Gongjang Dangsan, self-developed with revenue scale of approximately KRW 500.0 billion) and the rental housing brand 'Episode' (operating 1,631 units of youth housing) (TheBell). Detailed revenue breakdown by business segment is not available.
5-Year Financial Trends
| Period | Revenue (KRW billion) | Operating Profit (KRW billion) | Net Income (KRW billion) | Debt Ratio |
|---|---|---|---|---|
| 2021 | 791.0 | 129.4 | N/A | 210.3% |
| 2022 | 563.4 | 64.3 | 76.2 | 214.4% |
| 2023 | 479.7 | 190.4 | 103.1 | 218.1% |
| 2024 | 870.9 | 53.7 | 44.2 | 156.5% |
| 2025 | 445.8 | 37.8 | 5.4 | 174.2% |
| Q1 2026 (cumulative) | 70.3 | -9.3 | -20.6 | 163.7% |
Revenue volatility is high year to year, driven by concentrated recognition timing of pre-sale revenue. The surge in 2024 revenue (KRW 870.9bn) resulted from concentrated recognition of pre-sales from large-scale development projects, while the sharp decline in 2025 (KRW 445.8bn) was due to pre-sale revenue shrinking to KRW 215.4bn (48.4% of revenue) (TheBell). The specific cause of the 39.7% operating margin peak in 2023 is not available.
Q1 2026 Earnings Detail
Factors behind the swing to a loss included a KRW 2.1bn equity-method valuation loss on affiliates (versus a KRW 0.7bn valuation gain in the same period last year), a KRW 7.6bn impairment loss on tangible assets, and a KRW 4.4bn impairment loss on investment real estate. The organization was also downsized from a three-division structure (Frontier Business, Growth Strategy, and Management Support) to a two-division structure (Real Estate Business and Management Support) (TheBell, filing no. 20260514000745).
Governance Changes
| Date | Event |
|---|---|
| 2025-10-31 | Hahn & Company Development Holdings first tender offer results reported (46.29%) |
| 2025-12-30 | Hahn & Company Development Holdings second tender offer results reported (47.42%) |
| 2026-06-28~30 | Korea Ratings and Korea Investors Service downgrade unsecured corporate bond rating from BBB to BBB- |
| 2026-07-28 | Board resolves rights offering (approx. 240%, expected proceeds of KRW 136.7bn) |
| 2026-08-05 | Financial Supervisory Service requests corrected filing of securities registration statement; effect suspended |
| 2026-08-06 | Stock hits daily upper limit on correction-request news (up 29.84% from previous close, KRW 5,940) |
| 2026-08-10 | Hahn & Company pledges not to pursue additional stake acquisition or delisting for one year |
| 2026-08-11~12 | SK Discovery sells entire remaining 31.27% stake; Hahn & Company becomes sole largest shareholder (78.69%) |
Non-standing director Kim Jae-min sits on the board while concurrently serving as vice president of Hahn & Company Development Holdings LLC, the largest shareholder (DART executive status, business report filing no. 20260317000411). The re-investment structure of subsidiaries D&D Investment and D&D Property Solutions, and the upper-tier ownership structure of Hahn & Company Development Holdings LLC, are not available.
Liquidity and Credit Rating
Credit rating downgrade Net cash outflow from operating activities
| Site | Contingent Liabilities / Risk |
|---|---|
| Gunpo Tri-Ats (knowledge industry center) | Joint guarantee contingent liability of KRW 75.3bn |
| Sangkak Gongjang Guro (knowledge industry center) | Remaining unsold-unit-backed loans of KRW 165.0bn; approx. KRW 40.0bn in revenue reversal in Q1 2026 |
The common reason cited for the rating downgrades is that, following the change in largest shareholder from the SK Group (SK Discovery) to the private equity fund Hahn & Company Development Holdings, the possibility of group support was excluded from the rating assessment. Cash flow from operating activities swung to a net outflow of -KRW 265.2bn in 2025 (DART, business report filing no. 20260317000411). Reports indicate that if the self-rescue plan (KRW 132.0bn in new financing) falters, cash could fall to as low as negative KRW 124.2bn by the end of September (IB Tomato).
Valuation (Factual Multiples)
| Ticker | Price | PER | PBR | Market Cap |
|---|---|---|---|---|
| SK D&D (210980) | KRW 4,805 | 33.29x | 0.41x | KRW 89.4bn |
| Kolon Global (003070) | KRW 10,050 | -0.95x | 0.34x | KRW 255.5bn |
| DL E&C (375500) | KRW 70,600 | 5.47x | 0.33x | KRW 2,731.7bn |
| Taeyoung Engineering & Construction (009410) | KRW 1,615 | 8.12x | 0.86x | KRW 480.6bn |
| Hanwha Solutions (009830) | KRW 34,000 | -7.19x | 0.51x | KRW 7,646.3bn |
SK D&D was reorganized into a pure-play real estate developer following its 2024 spin-off. Peer companies with similar business structures include Kolon Global (which also operates onshore wind alongside construction), DL E&C, and Taeyoung Engineering & Construction; Hanwha Solutions is listed for reference only (alphasquare, same reference date and time, 2026-08-18).
Supply and Demand
Short selling accounted for 0.11% of volume (65 shares), and the short-selling balance stood at 53,002 shares (0.28% of balance) (alphasquare, not cross-checked against KRX's comprehensive short-selling information). Margin loan balance and the foreign investment limit utilization ratio are not available.
Macro Environment
| Factor | Current Value | Transmission Channel to SK D&D |
|---|---|---|
| Bank of Korea base rate | 2.75% (raised 2026-07-16) | Rising PF/bridge loan funding rates → increased interest expense on development projects |
| Domestic real estate PF market | Entered a soft landing in H1 2026; refinancing is the key issue for H2 | Affects liquidity available to address contingent liabilities at individual sites (Gunpo, Guro) |
| SMP / REC | Onshore SMP KRW 148.67/kWh (2026-08-10 to 08-16) | No confirmed basis for direct linkage to the parent company, as the renewable energy business was transferred to SK Eternix |
Theme Relevance
Fact Highlights
Generated by FomoLog Agent · Data sources: Korea Exchange · DART · TheBell · Bloter · Aju Business Daily · alphasquare (items not cross-verified are marked (C))