SKC Partners with KDB Bank for 1.5 Trillion KRW Financing to Foster Eco-Friendly Materials

Agreement on Industry-Finance Cooperation Program to Foster Secondary Batteries and Eco-Friendly Materials

[Asia Economy Reporter Hwang Yoon-joo] SKC is securing 1.5 trillion KRW in funding from the Korea Development Bank to foster secondary batteries and eco-friendly materials. With this agreement, SKC, having stably secured investment resources, plans to continue adding growth capital in the optimal form according to the guidelines within its Financial Story.

On the afternoon of the 24th, SKC and the Korea Development Bank signed the "Industry-Finance Cooperation Program Agreement for the Development of Secondary Battery and Eco-friendly Material Industries" at SK Nexilis Jeongeup Plant in Jeongeup-si, Jeollabuk-do. Under this agreement, the Korea Development Bank will provide mid- to long-term financial cooperation worth 1.5 trillion KRW over the next five years related to SKC’s research, development, and investment in secondary batteries and eco-friendly materials.

Attending the signing ceremony were SKC President Lee Wan-jae and Korea Development Bank Chairman Lee Dong-geol, along with key executives from both SKC and the Korea Development Bank. Since 2019, the Korea Development Bank has been conducting industry-finance cooperation programs to support restructuring into future advanced industries and strengthening industrial competitiveness through mid- to long-term financial cooperation with leading companies in core industries. It has signed a total of five such agreements, including one with SK Hynix.

Through financial cooperation with the Korea Development Bank, SKC has secured growth capital necessary for business model innovation centered on mobility and eco-friendly materials. At the ‘SKC Investor Day’ held last September, SKC unveiled its future growth strategy, the "Financial Story," stating that approximately 5 trillion KRW in growth capital will be needed over five years. To this end, SKC presented a direction to maintain financial stability by actively utilizing strategic financing such as internal cash generation, policy finance, and business partnerships.

Based on the large-scale growth investment capital secured through this financial cooperation agreement, SKC plans to accelerate global investments in the secondary battery and eco-friendly materials businesses. Following the recent decision to invest in a secondary battery copper foil production facility with an annual capacity of 50,000 tons in Stalowa Wola, Poland, SKC will proceed with investments to establish a global No.1 copper foil mass production system with a total capacity of 250,000 tons, including an additional 100,000 tons expansion by 2025.

For the Malaysian copper foil investment, which began construction in July this year, SKC has already secured about 85% of the total required funds. Additionally, projects such as silicon anode materials for secondary batteries, high-performance low-power semiconductor glass substrates, and eco-friendly biodegradable materials are being actively promoted by concretizing partnership cooperation methods such as joint ventures. By adding financial cooperation with the Korea Development Bank, SKC plans to further accelerate the realization of its Financial Story.

An SKC official also stated, "This investment agreement is significant in that it clarifies a large part of SKC’s plan to secure growth capital," adding, "Going forward, SKC will pursue various measures to secure necessary funds while maintaining financial stability, as outlined in the Financial Story."

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