SK Networks invests $20 million in US eco-friendly leather company

On the 14th, SK Networks decided to invest 20 million dollars in the 'Series C' round led by the eco-friendly alternative leather company 'MycoWorks.' Lee Ho-jung, Head of New Growth Promotion at SK Networks (left), is taking a commemorative photo via video call with Matt Scully, President of MycoWorks. Photo by SK Networks

[Asia Economy Reporter Ki-min Lee] SK Networks announced on the 14th that it will invest $20 million in the $126 million technology development and market expansion project 'Series C' round of the eco-friendly alternative leather company 'MycoWorks'.

This investment by SK Networks is the second largest following the lead investor, and the company explained that it is the largest among strategic investors (SI) excluding funds.

Along with the investment contract, the two companies also signed a separate agreement related to business expansion collaboration, including future expansion of MycoWorks' production facilities, establishment of sales networks, and development of new materials other than leather.

MycoWorks is a company leading the eco-friendly leather market with mushroom mycelium leather production technology aimed at reducing environmental pollution and carbon emissions associated with the conventional leather production process. According to the United Nations Industrial Development Organization (UNIDO), using mushroom mycelium leather production technology reduces carbon emissions and water usage by more than 90% compared to traditional leather production. Additionally, mycelium leather has advantages over conventional natural leather in terms of quality and production time, making it the most notable among various alternative leathers.

Currently, there are only two companies worldwide, including MycoWorks, that possess commercialized mycelium leather technology. In particular, MycoWorks has secured competitiveness through superior leather quality and patents on key processes compared to competitors.

SK Networks has steadily accumulated market information by participating in a U.S. bio startup fund in 2020 and decided to invest in MycoWorks after thorough industrial analysis and local due diligence with SK Group. Lee Ho-jung, Head of New Growth Promotion at SK Networks, said, "Based on our past experience and capabilities in operating fashion businesses, we approached from the perspective of lifestyle consumer goods and decided to invest considering the value and sustainability of the alternative leather market."

Meanwhile, starting with participation in this project, SK Networks plans to continuously discover investment opportunities in the eco-friendly materials sector to foster growth engines and strengthen networks with global technology-leading companies. It also intends to expand the search for growth engines and partnerships related to future technologies and customer trends. Along with this, SK Networks plans to focus on global seed investment areas that align with its future strategic direction, including eco-friendly materials, to strengthen the discovery of new growth engines.

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