SKC CI

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SKC Co., a materials unit of South Korea’s SK Group, saw its shares surge over 9 percent on early Friday following news that the company will receive approximately $100 million in research and development (R&D) grants from the U.S. government.

SKC shares were trading at 114,900 won ($82.06) on the main Kospi market as of 9:04 a.m., up 9.32 percent from the previous day‘s close.

The U.S. Department of Commerce announced on Thursday local time that a consortium led by SKC’s subsidiary, Absolics Inc., was selected as one of the recipients of its R&D grants under the National Advanced Packaging Manufacturing Program (NAPMP) within the CHIPS Act.

The Absolics consortium comprises over 30 partners, including tech firms, academia, and nonprofit organizations.

The company will receive a $100 million R&D grant on top of the $75 million production grant it received under the CHIPS Act.

“This is a recognition of Absolics as a certified participant in the U.S. semiconductor supply chain and its technological capabilities in next-generation glass substrates,” Meritz Securities Co. analyst No Woo-ho sai

Meanwhile, shares of SK square Co., an SK Group investment company, gained over 4 percent in early trading on Friday after the company announced a shareholder return plan worth 200 billion won.

SK square shares were trading at 84,100 won at 9:05 a.m., up 4.60 percent from the previous day. The stock, which opened the day with a 2.99 percent rise, climbed as high as 84,600 won at one point to reflect a 5.22 percent gain.

SK square announced on Thursday that it would retire 1 trillion worth of treasury shares acquired in April 2024 and would purchase and retire an additional 1 trillion won worth of treasury shares within the next three months, starting November 25th.

The company also aims to reduce its net asset value (NAV) discount rate to below 50 percent by 2027 and achieve a return on equity (ROE) exceeding the cost of equity (COE) from 2025 to 2027.

SK Securities Co. raised its target price for SK square from 94,000 won to 105,000, citing the likelihood of further treasury share buybacks and cancellations in 2025.

In other market news, stocks that will be newly included in the Kospi 200 Index also gained ground on early Friday.

Cosmetic and beauty device company APR Corp.’s stock was trading 3.46 percent higher at 50,800 won as of 9:13 a.m.

Shares of Miwon Commercial Co., in the meantime, rose 3.13 percent to 198,000 won, and those of OCI Co. and Hyosung Heavy Industries Corp. climbed 3.39 percent and 1.60 percent respectively.

The gains came after the Korea Exchange announced the results of its periodic review of key benchmark indices, including the Kospi 200, after market close on Thursday.

The four stocks were added to the Kospi 200, with the changes set to take effect on December 13th, 2024.

The Kospi 200 comprises large-cap, high-quality stocks representing various industries listed on the Kospi market. Inclusion in the index often attracts passive investment funds, such as those tracking exchange-traded funds (ETFs and other financial products, leading to increased inflows of capital.