From Batteries to SoBuJang... Chey Tae-won Leading the Vanguard of 'Industrial Security'

Breaking Through Japan's Export Restrictions on Korea with 'Open Innovation'
SK Hynix Invests 120 Trillion Won to Build Yongin Semiconductor Cluster

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyewon] Chey Tae-won, Chairman of SK Group, has taken the lead in enhancing 'industrial security' in response to Japan's export restrictions. The solution was found in open innovation. Chairman Chey expressed his intention to share SK's infrastructure and core technologies in materials, parts, and equipment (SoBuJang) not only within the semiconductor ecosystem but also in the secondary battery (battery) sector.

According to the industry on the 10th, Chairman Chey conducted an intensive management tour of battery and semiconductor sites just this week. On the 7th, he met with Chung Eui-sun, Executive Vice Chairman of Hyundai Motor Group, at SK Innovation's Seosan plant to explore collaboration related to the mobility business, including future electric vehicle batteries. The day before, President Moon Jae-in visited SK Hynix's Icheon campus, where Chairman Chey personally announced plans for 'creating social value for the leap of SoBuJang.'

During the one year of Japan's export restrictions, SK addressed the SoBuJang issue with the concept of a 'sharing economy.' Chairman Chey said, "Instead of using many assets owned by large companies only internally, we approached it from the concept of opening up and infrastructurizing them so that many people can share rather than just using my own." He added, "Through more open innovation, we will create a semiconductor ecosystem and open up more to sharing secondary batteries and core technologies."

The vanguard base for realizing the social value envisioned by SK is the Yongin Semiconductor Cluster. SK Hynix plans to invest a total of 120 trillion won over the next 10 years to build four semiconductor factories and a semiconductor cluster where about 50 SoBuJang companies will be concentrated. Through this, they expect to create 17,000 new jobs and about 188 trillion won in added value. In particular, within the semiconductor cluster, they aim to strengthen solidarity and cooperation with partner companies by investing 450 billion won to establish the world's first 'mass production fab-linked semiconductor testbed.'

Chairman Chey is designing a program through the Yongin Semiconductor Cluster where companies can pursue not only profits but also social value. He said, "For the first time, about 50 semiconductor SoBuJang companies will participate in the Yongin Semiconductor Cluster, and SK will support with about 1.57 trillion won." He emphasized, "We will support SoBuJang companies with SK's artificial intelligence (AI) and data analysis technologies and actively invest in basic science fields to contribute to securing national industrial competitiveness in the mid to long term."

Another future growth area that Chairman Chey is focused on is the battery, called the 'post-semiconductor.' Recently, at a meeting with Executive Vice Chairman Chung, they shared directions for developing next-generation battery technologies, power semiconductors, lightweight new materials, and service platforms such as Battery as a Service (BaaS) including battery rental and exchange, and discussed cooperation plans. This is interpreted as designing the future together as a service company that goes beyond merely manufacturing and supplying electric vehicles or batteries to include repair, rental, charging, recycling, and financial services. SK's battery business is also supported by Vice Chairman Chey Jae-won, who was involved from the initial planning stage. Hyundai Kia Motors has selected SK Innovation as the primary battery supplier for the E-GMP, an electric vehicle dedicated platform scheduled for mass production in 2021.

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