SK Networks more than doubles quarterly profit

SEOUL, May 14 (UPI) -- South Korea's SK Networks said Thursday it more than doubled its profit during the first three months of this year, driven by strong performances of its major businesses.

The Seoul-based conglomerate said its first-quarter sales were $1.2 billion, up 6.5% from a year before, for an operating profit of $22 million, up 102.4%.

SK Networks said that earnings momentum was supported by stronger-than-expected results at isubsidiaries.

The company also attributed the earnings recovery to returns from strategic investments in the AI sector as part of its transition toward becoming an AI-centered enterprise.

Over the past several years, SK Networks invested funds in the AI segment. For example, it spent more than $80 million to secure a 12.9% stake in Upstage, a fast-growing South Korean startup specializing in large-language models.

At the same time, the firm has streamlined parts of its traditional business portfolio. In March, SK Networks signed a deal to sell a majority stake in its used smartphone trading affiliate, Mintit.

"The first quarter saw significant performance improvements in our core businesses, including SK Intellix and Walkerhill Hotels & Resorts," SK Networks said in a statement.

"The fact that we realized valuation gains on investment assets in the AI sector, an area we identified early on, is also a highly encouraging development," it added.

The share price of SK Networks surged by the daily limit of 30% on the Seoul bourse Thursday.

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This story was originally published May 14, 2026 at 10:32 AM.