SK Corporation Demonstrates Its True Value as an Investment Company

Southeast Asia's Uber 'Grab' Announces IPO
Early Investment by Korean Companies Hits Jackpot
250 Billion KRW Invested in Grab
Equity Value Expected to Reach 590 Billion KRW

[Asia Economy Reporter Choi Dae-yeol] SK Inc. is demonstrating its true value as an investment company. SK Inc. is a business holding company that holds shares in SK Group affiliates while focusing primarily on investments, proactively investing in four key sectors: advanced materials, bio, green, and digital, thereby enhancing corporate value.

According to SK Inc. on the 14th, with Grab's Nasdaq listing, the value of SK Group's stake in the company is expected to reach around 590 billion KRW. SK Inc., along with SK Group affiliates, has invested a total of 250 billion KRW in the company. At that time, it competitively participated in investments alongside overseas companies such as SoftBank, Uber, and Didi Chuxing.

Not only Grab, but mobility companies that SK Inc. has invested in since 2017 are also showing investment results one after another. First, Autonomo, an Israeli automotive big data company in which SK Inc. invested 12 billion KRW in December 2018, is regarded as a leader in the industry. Similarly, it is planning to list on Nasdaq in the second quarter of this year. The targeted corporate value is about 1.4 billion USD. The value of SK Inc.'s stake (2.7%) is expected to more than double compared to the investment time.

Autonomo has 16 global automakers as partners, including Daimler, BMW, Volkswagen, GM, and Toyota, and collects data from 40 million vehicles worldwide. Based on this, it operates a business model that attracts global companies in various industries such as finance, mobility, energy, and ICT as clients.

In the industry, it is also expected that Turo, a U.S. vehicle-sharing startup in which SK Inc. invested 40 billion KRW in 2017, will pursue a listing within this year. Turo operates a peer-to-peer car rental platform across 56 countries in North America and Europe, often called the Airbnb of the mobility industry. Its sales increased by 7% last year.

Last month, at an online corporate briefing, Jang Dong-hyun, CEO of SK Inc., explained the current business status and future vision.

Autonomo Also Pursues Q2 Listing... Target Corporate Value 1.4 Billion USD
Expected to More Than Double Investment... Startup Turo Also Expected to List
Continuous Investment Success in Advanced Materials, etc.

U.S.-based Solid-State Battery developer Solis Energy Systems (SES) is also reportedly preparing for a listing in the second half of this year. SK Inc. invested 28.5 billion KRW in 2018 and holds a 12.8% stake in the company. Last month, SK Inc. also formed a 300 million USD new mobility fund together with Geely Automobile Group, China's top private automaker owning Volvo and Polestar. Through this, SK Inc. aims to grasp the future mobility market trends while leading the market globally.

Investment results are also emerging in other sectors. For example, global logistics company ESR, in which SK Inc. acquired an 11% stake between 2017 and 2018 with an investment of 490 billion KRW, has more than doubled in value since then. Last year, SK Inc. sold part of its stake (4.6%) to recover 480 billion KRW, and the remaining stake (6.4%) is currently valued at about 700 billion KRW. This year, SK Inc. reorganized its portfolio into four sectors: advanced materials, bio, green, and digital, and is implementing strategies to create investment ecosystems in each sector.

A company official said, "As the invested companies receive high market recognition, the value of SK Inc.'s stakes also rises, creating a virtuous cycle of investment with positive effects. We will comprehensively consider market conditions and investment strategies to explore various ways to utilize our stakes."

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