[SK, Turning Crisis into Opportunity] 179 Trillion Won Investment in BBC... Revealing True Intentions

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] SK Group is making continuous investments in its core growth engines, the so-called 'BBC industries'?semiconductors (Chip), batteries (Battery), and bio (Bio).

Although the management environment is deteriorating due to the 'three highs' phenomenon of high interest rates, high inflation, and high exchange rates, the focus is on implementing the crisis-overcoming principle that 'crisis is opportunity.'

SK Group plans to invest 179 trillion won domestically over the next five years. Of this, 67 trillion won will be invested in regions outside the Seoul, Gyeonggi, and Incheon metropolitan areas. Through investments in non-metropolitan areas, it is expected to contribute to revitalizing local economies and balanced national development.

The investment sectors in non-metropolitan areas include ▲semiconductors and materials 30.5 trillion won ▲green energy 22.6 trillion won ▲digital 11.2 trillion won ▲bio and others 2.8 trillion won.

SK Hynix has decided to invest a total of 15 trillion won over the next five years in a new semiconductor production plant, M15X (eXtension), in Cheongju, and SK Siltron, SK㈜ Materials, and SK E&S are also making investments in non-metropolitan areas.

In particular, by next year, a total of 73 trillion won will be poured into facility investments, including expanding existing domestic plants or starting new constructions. This is based on the recognition that intensive investment in domestic production facilities, which are the growth foundation of major affiliates, is necessary to proactively respond to the ongoing economic crisis and geopolitical risks.

The main investment details by next year are ▲semiconductors and materials 48.7 trillion won ▲green 12.8 trillion won ▲digital 9.8 trillion won ▲bio and others 2.2 trillion won.

First, SK Telecom and SK Broadband plan to invest about 5 trillion won nationwide from this year through next year to expand wired and wireless communication networks such as 5G. SK E&S will invest more than about 1 trillion won nationwide by next year to build renewable energy facilities such as solar and wind power, as well as city gas facilities.

Furthermore, to lead the Fourth Industrial Revolution era, SK Group believes that securing differentiated technological capabilities is paramount and is making bold investments in research and development (R&D).

Over the next five years, 25 trillion won will be invested in R&D, including ▲semiconductors and materials 22.1 trillion won ▲green 0.8 trillion won ▲digital 1.2 trillion won ▲bio and others 1.1 trillion won.

An SK official stated, "We will continuously expand and newly build domestic facilities, which are the production base of SK Group's core strategic industries such as semiconductors, batteries, and bio, and invest heavily in R&D to lead the global market. We will also create domestic employment and ensure that the planned mid- to long-term investments proceed without disruption to enable co-growth with so-called materials, parts, and equipment (SoBuJang) partner companies."

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