Palliser Capital Responds to SK Square on Value-Up Plan

• A welcome step forward addressing the value gap
• Groundbreaking measures for the Korean market including setting a discount target and discount-linked management incentives

Palliser Capital (“Palliser”), a significant minority shareholder of SK Square (the “Company”), responds to the Company on the announcement of its Corporate Value-Up Plan and issued the following statement:

“We have engaged constructively with the SK Square Board and Management team for more than a year on a transformational plan of action. We are pleased the Company has taken this meaningful and constructive step in the right direction.

We welcome the Company's clear goal of achieving a material narrowing of its steep discount to NAV through measures such as buybacks, an optimised approach to capital allocation and discount-linked management compensation — a groundbreaking initiative for the Korean market. The long-term value creation potential of the plan will benefit all SK Square stakeholders, including shareholders who stand to see as much as 47% upside on their investments through the targeted (50%) NAV discount narrowing alone.¹

We look forward to continuing our constructive dialogue with the Company to build on the foundations of the plan through a comprehensive implementation of the announced measures, meaningful further capital returns, a Board-approved standing buyback allowance and appropriate candidates to further strengthen the Board.”

James Smith, CIO of Palliser, added:

“SK Square’s Corporate Value-Up Plan announcement is an endorsement of our investment thesis in the Company and a helpful step forward. Mr Han Myung Jin and his capable team have demonstrated a strong commitment to portfolio optimisation and a returns-oriented capital allocation and shareholder value creation plan. We look forward to continuing our productive relationship with the Company on the next phases of this transformation.”

About Palliser Capital

Palliser Capital is a global multi-strategy fund. Our value-oriented investment philosophy is applied to a broad range of opportunities across the capital structure with a focus on situations where positive change and value enhancement can be achieved through thoughtful, constructive and long-term engagement with companies and across a range of different stakeholder groups.

¹ Based on a 66% discount to NAV as of 20 November 2024, per SK Square’s NAV disclosure, divided by 133.3 million shares, excluding treasury shares that are expected to be cancelled imminently.

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