Choi Tae-won's 'Quantum Jump'... The 'Future Puzzle' Completed in Crisis

[Image source=Yonhap News]

[Asia Economy Reporter Park So-yeon] SK Group has been boldly restructuring its business portfolio through mergers and acquisitions (M&A) and making new investments this year. This is in line with SK Group Chairman Chey Tae-won's strong determination that, despite the crisis of a global economic downturn, strengthening research and development (R&D), facilities, and talent acquisition is essential to achieve a 'quantum jump.'

According to industry sources on the 10th, SK Group has carried out five major business adjustments and investments this year, including the sale of SK Chemical's bioenergy business, the acquisition of SK Materials' photoresist business, and SK Lubricants' acquisition of shares in a Vietnamese lubricant company. The focus of these M&As and investments is concentrated on the mobility materials and components market, which is expanding from electric vehicles to trains and aircraft, as well as the next-generation semiconductor sector.

First, SK Innovation plans to build an additional electric vehicle battery factory in the United States and expand the second plant under construction in Hungary beyond the original plan. This decision to construct a second plant in the U.S. came just 10 months after breaking ground on the first battery factory last year. Industry insiders estimate the investment amount to be about 1 trillion KRW, interpreting it as a move to secure a leading position in the rapidly growing electric vehicle battery market.

SK Materials recently acquired Kumho Petrochemical's photoresist material business for 40 billion KRW, initiating vertical integration related to the next-generation semiconductor business. Photoresist is a key material used in the lithography process to form circuit patterns on semiconductor wafers. Last year, extreme ultraviolet (EUV) photoresist was included among the three items for which Japan tightened export controls, drawing attention. Notably, Kumho Petrochemical holds patents related to EUV photoresist. This is interpreted as a preemptive measure for SK Hynix to incorporate the semiconductor EUV process, currently adopted by Samsung Electronics, into its next-generation semiconductor business portfolio.

SK Lubricants, a specialist lubricant company, also acquired a 49% stake in Mekong, Vietnam's largest private lubricant company, this month. The acquisition amount is approximately 50 billion KRW. The business will proceed with Mekong selling lubricants exported by SK Lubricants, and plans to expand to manufacturing by Mekong in the future. This move aims to target the rapidly growing Southeast Asian premium lubricant market while securing a production base in the region to prepare capacity for future business expansion, such as lubricants for electric vehicles.

Recently, SK Chemical's bioenergy business, which produces and sells biodiesel and bio-heavy oil, was sold to the private equity firm Hahn & Company. This also aligns with the ongoing business restructuring efforts centered on keywords such as eco-friendliness, mobility, and next-generation industries. SK explained that this was done "to focus capabilities on core businesses and to secure investment funds for new future growth businesses."

A senior SK official said, "Chairman Chey has accumulated experience dealing with crises such as the foreign exchange crisis and financial crisis, and his philosophy is that if you invest in the future without shrinking in the face of crises, you can make a 'quantum jump' that competitors cannot surpass." He added, "Accordingly, each affiliate is intensively investing in future growth businesses that fit the group's portfolio."

This content was produced with the assistance of AI translation services.