Kakao Investment, the venture capital arm of Kakao, said Friday that it has sold a 1.88 percent stake in SK Square, the investment arm of SK Group, through a block deal valued at 429.7 billion won ($312.8 million).
According to the company’s regulatory filing, Kakao Investment disposed of 2.48 million shares of SK Square for 172,800 won per share — 5.88 percent below the stock’s closing price the previous day. The transaction was completed before the market opened Friday.
The venture capital firm cited the need to “secure capital for future investments, including artificial intelligence” as the primary reason for the sale.
Market watchers believe the decision was prompted by the recent sharp rise in SK Square’s share price, buoyed by expectations of easing the so-called “conglomerate discount” following legal reforms, as well as solid earnings from its key affiliate SK hynix.
The latest transaction marks a significant shift in the long-standing equity alliance between SK Telecom and Kakao.
In November 2019, the two firms entered into a strategic partnership, each acquiring 300 billion won worth of each other’s shares. Following SK Telecom’s spin-off in November 2021, Kakao came to hold stakes in both SK Telecom and the newly formed SK Square.
On Friday, Kakao confirmed it will retain its 1.79 percent stake in SK Telecom. In April, SK Telecom divested its entire stake in Kakao via a separate block deal, effectively unwinding the cross-shareholding agreement between the two companies.
yeeun@heraldcorp.com
![[Room Tone] Monopoly’s less famous cousin](https://wimg.heraldcorp.com/news/cms/2026/09/15/news-p.v1.20260427.66c40f4b14054f6a8c036bfc20e046c9_R.jpg?type=h&h=120)