SK Siltron and 4 Other Companies Secure Core Materials and Components Technologies Through Overseas M&A Last Year

Confirmed 100 Core Strategic Items for Materials, Parts, and Equipment by Ministry of Trade, Industry and Energy
Tax Credit Support Planned for M&A of Foreign Corporations in Materials, Parts, and Equipment Sector

[Sejong=Asia Economy Reporter Kwon Haeyoung] Last year, five domestic companies including SK Siltron secured core strategic technologies for materials, parts, and equipment through overseas mergers and acquisitions (M&A).

The Ministry of Trade, Industry and Energy announced on the 1st that it recently confirmed that the products manufactured by the companies acquired last year by Wonjun, SK Siltron, DL, CJ CheilJedang, and SK General Chemicals are related to the 100 core strategic technologies for materials, parts, and equipment.

This is for applying for the 'Tax Credit for Foreign Corporation M&A in Materials, Parts, and Equipment.' As part of stabilizing the supply chain of core materials, parts, and equipment items, the government supports tax credit benefits on the acquisition amount after the M&A is completed. The five companies plan to apply for a tax credit amounting to 5-10% of the acquisition cost when filing corporate taxes.

An official from the Ministry of Trade, Industry and Energy stated, "The materials, parts, and equipment technologies secured through M&A by these companies are highly difficult to develop and have been monopolized in the global supply chain by a few advanced technology countries such as the United States, Japan, and Germany," adding, "Domestic companies are now actively entering the core materials, parts, and equipment sectors."

Wonjun, a battery material heat treatment equipment company, secured advanced technology in carbon fiber heat treatment through M&A. SK Siltron laid the foundation for full-scale entry into the vehicle semiconductor market led by the U.S. and Europe by acquiring DuPont's silicon carbide business unit. DL acquired more than 700 intellectual property rights (IP) related to the production of high-performance elastic materials and parts through the acquisition of Krayton's high-performance rubber business unit. CJ CheilJedang secured a U.S. research and development (R&D) center and two production plants in China by acquiring U-Tel, a specialized enzyme production company. SK General Chemicals acquired Arkema's high-performance polymer manufacturing technology.

Lee Kyungho, Director of Materials, Parts, and Equipment Cooperation at the Ministry of Trade, Industry and Energy, said, "Early securing of supply stability for core items through overseas M&A and expansion of participation in the global supply chain are becoming visible," adding, "Securing materials, parts, and equipment technology can be a driving force for advancing into an industrial powerhouse, so we will continue to support overseas M&A by materials, parts, and equipment companies without hesitation."

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