SKC Reports Operating Loss of 216.3 Billion KRW Last Year... "Turnaround in Second Half"

Growth Driven by Core Business Performance Recovery This Year
"Will Endure by Securing Financial Soundness"

SKC recorded an operating loss of 216.3 billion KRW last year.

SKC announced on the 6th that its consolidated sales in 2023 amounted to 1.5708 trillion KRW, a 34.2% decrease compared to the previous year. The company explained that sales and operating profit declined year-on-year due to sluggishness in the secondary battery and semiconductor markets and intensifying global competition.

SKC is fostering future businesses centered on three major growth pillars: secondary batteries, semiconductors, and eco-friendly materials. SK Nexilis, an investee company in the copper foil business for secondary batteries, diversified its customer base last year and started operations at its Malaysia plant to strengthen cost competitiveness. Additionally, SKC established Ultimus, an investee company for the commercialization of silicon anode materials, and began construction of a pilot production line, creating new growth engines.

The semiconductor business is being reorganized to focus on high value-added materials and components. Instead of maintaining low value-added basic materials, SKC acquired ISC, a leader in semiconductor test solutions, and invested in Chiplet, a U.S.-based packaging technology company, securing new growth drivers. The construction of the first phase of Absolix’s production plant in Georgia, USA, which is preparing for the world’s first commercialization of semiconductor glass substrates, is also in its final stages.

The eco-friendly materials business is also preparing for commercialization. Last year, SKC confirmed the construction of the world’s largest biodegradable material (PBAT) production facility in Vietnam with an annual capacity of 70,000 tons, and developed specialized products for applications such as textiles for the first time.

SKC aims for external growth and a turnaround in the second half of this year through the recovery of its core business performance. Following the proactive asset securitization carried out last year, the company plans to optimize the pace of facility investments this year to strengthen financial soundness.

An SKC official said, "We are passing through the ‘dead point,’ a fierce critical moment that marathon runners inevitably experience," adding, "We will endure this phase by strengthening the profitability structure of our core businesses, ensuring the smooth early settlement of new businesses, and securing financial soundness."

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