SK Inc.

    About Company

    SK Inc. is the holding company of the SK Group, a South Korean multi-industry company or conglomerate with multiple business entities under its fold. Typically, SK Inc. belongs to the class of chaebols or family-run and controlled industrial conglomerates. The group is the second-largest chaebol in the country. Under its fold, the group has hundreds of subsidiary companies that uphold the SK brand name and practice the indigenous management culture known as SK Management Systems or SKMS.

    The SK Group has its headquarters in Seoul and, until 1997, operated under the Sunkyong Group. However, the conglomerate has its roots in Sunkyoung Textiles, the first acquisition of the current founders in 1956. AT the time of establishing Sunkyoung Textiles, the country was under Japanese rule, and the company was a joint venture with the Kyoto Textile Company based in Kyoto, Japan. The company achieved a milestone in 1958 by manufacturing polyester fiber for the first time in Korea. Spotting the enormous growth potential of polyester fibers, the company wanted to capitalize on the growth potential. In July 1969, SK Group formed a separate company for producing original yarn.

    The move signaled the group’s vision to diversify its business to tap the growth potential in many other fields. To create a diversified business portfolio, SK Group entered the Oil sector by establishing a company named Sunkyong Oil in 1973. Thus began the new journey of the SK Group, which considers itself an investment specialist with the sole aim of keeping stakeholders happy.

    The group identifies potential growth areas for investment and keeps growing the enterprise value through effective portfolio management.

    When did SK Inc. Come into Existence?

    Earlier, SK Inc. was SK Holdings, which acted as a holding company of the SK Group. In 2007 when SK group decided to adopt a holding company structure, it undertook a massive restructuring exercise. SK Corporation, the group’s main entity, was split into an investment company SK Inc. and an operating company SK Energy.

    Since when did SK Group Adopt a Vertical Integration Strategy?

    Establishing Sunkyong Oil in 1973 was a turning point in the group’s history as it focused on a new vertical integration strategy that later allowed the company to highly diverse areas. High growth potential was the primary consideration of the group to decide about investing in any company. The industry or the business type was unimportant as the company’s new vision was to expand the horizon from ‘Petroleum to Fibers’. Regardless of the industry sector and the business type, SK Group, was ready to invest if it felt that it would be a profitable venture in the long run. It was evident from the group’s acquisition of Walkerhill Hotel in 1973, the same year as establishing Sunkyong Oil.

    Why is 1988 a Landmark in SK Inc.’s History?

    In 1988, the SK Inc.-backed company was behind the move of importing crude oil from the Marib Oil field of Yemen for processing in Korea for the first time.

    What was SK Group’s First Major Expansion in the Oil Sector?

    SK Inc. had already shown its interest in the oil sector by establishing Sunkyong Oil, and sensing the high growth potential in the area, the group wanted to consolidate its position. As a result, SK Group acquired the privately-run Korea National Oil. The acquisition helped the group to move up the ladder to occupy the spot of the fifth-largest conglomerate in Korea.

    What is the Aim of the SK Group?

    SK Group yearns to establish a global eco-system by using the group’s Resources and Capabilities, generally referred to as SK Group’s (R & C).

    What is the Extent of Diversity of SK Inc?

    SK Inc. is an incredibly diverse group. The group is behind numerous companies with a competitive edge across the globe belonging to various sectors like chemicals, energy, information and communication, logistics, material, and service. That the group is taking considerable interest in areas like semiconductor and biopharmaceuticals and hydrogen and battery materials bears testimony to the commitment to investing with a futuristic outlook.

    Which are Some of the Listed Companies of the SK Brand?

    SK Innovation, SK Square, SK Telecom, and SKC are some of the listed companies of the SK Group.

    SK Innovation played a stellar role in turning Korea into an energy powerhouse. Earlier, Korea did not produce even a drop of oil. The company set up the country’s first oil refinery in 1962, and for more than 50 years, it has been the country’s leading company in chemical and energy. The company’s growth has fuelled Korea’s economic development.

    SK Square is a portfolio management company that actively manages ICT platforms and semiconductor businesses. It has a proven track record of performance in successful investments demonstrated by companies like SK Shields and SK Hynix. SK Square possesses some specialized investment knowledge in the ICT sectors and semiconductor businesses. Moreover, SK Square derives mileage from the success of its subsidiary SK Hynix, a leading global semiconductor supplier. SK Telecom, a sister concern of SK Square, is the country’s top telecom company.

    SK Telecom is spearheading the development of the country’s mobile communication industry. The company can claim credit for the commercialization of the world’s first CDMA, launching the world’s first LTE-A in 2013 and 5G in 2019. Another first is the commercialization of the 5G service with strong security, comprehensive coverage, and high speed. SK Telecom has been a massive force behind the evolution of the telecom industry in Korea. It is now ready to pursue hyper-innovation that can spur the country’s economic growth and improve users’ lives.

    SKC represents the SK brand in the chemical and film materials industry and is an industry leader. The company has ambitions of becoming a global player as the top advanced materials provider of high-performance and high-value specialty products. The knowledge-based company aims to enter the high-value overseas markets to expand its business and bolster future growth engines.

    SK Networks has its origins in Sunkyong Textiles, a company that inspired the formation of the SK Group. The company established strong domestic and international networks using its logistics capabilities to become worthy business partners. The company has plans to speed up the growth of its rental business. Simultaneously, the company plans international expansions that can accelerate growth and profitability.

    SK Biopharmaceuticals banks on its global networks to spread its wings across China and the United States. The company has successfully developed and launched novel drugs for the worldwide market. Building on its initial success, the company wants to establish itself as a Fully Integrated Pharma Company (FICO). The company intends to play an active role in drug discovery to marketing.

    Which are Some of the Unlisted Companies of SK Group?

    SK E&S was initially a city gas business holding company in 1999. Over the years, the company expanded its operations to include electricity, LNG, renewable energy, community energy, and overseas energy within its portfolio. The company supplies electricity generated from its natural gas power plants. The company’s competitive purchasing of LNG ensures a stable electricity supply across Korea by fulfilling the demand. The company has big plans to become a Global Clean Energy and Solution Provider.

     SK Siltron is Korea’s only semiconductor wafer manufacturer that could match the pace of growth in the global semiconductor industry for 35 years. The company created several records in mass production and gathered know-how over the years that helped maintain its competitiveness. While scaling up production in a pre-emptive manner, the company could strengthen its technological base. The company is expanding into new areas like SiC wafers. The company stands on a solid foundation that could turn it into one of the world’s best semiconductor materials suppliers.

    SK Ecoplant has a solid presence as a project Implementation Company in diverse areas. The company handles infrastructural projects such as roads, ports, and railroads. It also undertakes construction and housing projects for large developmental and residential housing projects. The company has a global presence in the areas of Engineering, Construction, and Procurement. The company completed several international projects, including large petrochemical plants, semiconductor facilities, and power generation.

    SK Pharmateco is a global manufacturing and contract development organization that specializes in producing APIs (Active Pharmaceutical Ingredients), essential vectors, and intermediates for gene and cell therapy useful for the pharmaceutical industry. The company operates six facilities in North America, Europe, and Korea.

    What are the Company Financials of SK Group?

    SK Group has the employee strength of 114,842. As of July 22, 2021, SK Group’s market value was $16,970 million against revenues of $70,839.20 million. The group’s profit stood at $160.5 million.

    The Company Leadership

    Tae-won-Chey is the Chairman of the SK Group and oversees 125 companies within the SK fold across diverse sectors like energy, chemicals, semiconductor, telecommunications, trading services industries, and biopharmaceuticals.

    Tae-won-Chey has risen through the ranks and held leadership positions for 30 years across various SK branded companies. He received various distinctions during his career and firmly believed in creating corporate social value. In 1999 he was chosen as one of the ‘Global Leaders for Tomorrow’ at the World Economic Forum.



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