SK Co., Ltd. Secures 1 Trillion Won Through SK Biopharm Block Deal... Expands Investment in 4 Major Sectors

by Hwang Yoonju

Published 24 Feb.2021 08:56(KST)

Successful IPO and Investment Recovery through SK Co., Ltd... Evolving into an Investment Specialist Company
Plan to Invest Sale Proceeds in Four Core Industries
Strengthening Semiconductor and Battery Materials, Renewable Energy, Bio, and Digital Sectors
Possibility of Using Funds for Governance Restructuring Raised by Some

SK Co., Ltd. Secures 1 Trillion Won Through SK Biopharm Block Deal... Expands Investment in 4 Major Sectors

[Asia Economy Reporter Hwang Yoon-joo] SK Group has secured approximately 1 trillion KRW in cash. SK Inc., which succeeded in listing its investment companies and recovering investment funds, plans to actively engage in its four core businesses this year: semiconductors and batteries, renewable energy, bio, AI, and autonomous driving.

On the 24th, SK Inc. announced that it sold 8.6 million shares of SK Biopharm through an off-hours block trade. The sale amounted to 1.1163 trillion KRW, reducing its stake from 75% to 64.02% after the sale.

An SK Inc. official explained, "This share sale is a successful example of the investment-specialized company SK Inc. completing the cycle of 'investment and nurturing - initial public offering (IPO) - investment recovery.' The recovered funds will be reinvested in growth businesses to realize a virtuous cycle of investment."

SK Inc. has selected advanced materials, green energy, bio, and digital as its four core business areas this year. The most notable investment targets are the semiconductor and battery materials sectors. SK Inc. has stated that it will focus on strengthening its portfolio centered on advanced materials to proactively respond to the rapidly growing market.

In renewable energy, new technologies in hydrogen business and carbon dioxide capture and utilization are promising. Previously, SK Inc., together with SK E&S, invested about 1.66 trillion KRW in the U.S. hydrogen technology specialist 'Plug Power.' Investments are also expected to expand in mobility sectors such as artificial intelligence (AI) and autonomous driving, as well as in new drug development.