"Stop the Sale of SK Ocean Plant Shares" ... United Opposition from Gyeongnam Province and Goseong County

The Gyeongnam Provincial Government and Goseong County have officially announced their opposition to the proposed sale of shares in SK Ocean Plant, a leading local company.

On October 20, Lee Sanggeun, governor of Goseong County, held a press conference at the Gyeongnam Provincial Government Press Center, urging SK Group and SK Ecoplant, the parent company of SK Ocean Plant, to "completely reconsider or halt the decision to sell SK Ocean Plant."

Lee Sanggeun, governor of Goseong County, Gyeongnam, is expressing opposition to the sale of SK Ocean Plant shares. Photo by Lee Seryeong

SK Ocean Plant, a specialist in offshore wind, shipbuilding, and marine industries in the province, is currently investing 1 trillion won in the Yangchon and Yongjeong General Industrial Complexes in Donghae-myeon, Goseong County, to build the world’s largest offshore wind foundation production base.

The site designated for this specialized offshore wind production base was selected in June as Gyeongnam’s first Opportunity Development Zone.

In September, SK Ocean Plant’s parent company announced that it had selected "The Ocean Consortium," a newly established private equity fund management company founded last year, as the preferred bidder for the sale of its shares.

This comes just three years after SK Ecoplant acquired Samkang M&T and rebranded it as SK Ocean Plant.

Goseong County expressed concerns that the sale of SK Ocean Plant could hinder the development of the Yangchon and Yongjeong General Industrial Complexes, which have been designated as Opportunity Development Zones.

Additional investments of more than 500 billion won are required for defense-related projects such as offshore wind power generation and maintenance, repair, and overhaul (MRO) of U.S. Navy vessels. If the sale leads to difficulties in securing funds for facility investments by SK Ocean Plant, the entire 1 trillion won investment plan could become uncertain, directly resulting in a downturn in the local economy and increased anxiety among residents.

Furthermore, if the sale makes employment succession, job creation, and regional coexistence plans uncertain, this could lead to a halt or non-fulfillment of investments in the industrial complexes, potentially resulting in the cancellation of the Opportunity Development Zone designation itself.

They also pointed out that selling the company just three years after acquisition raises suspicions that the intent is to recover the full investment amount, including the 500 billion won spent on developing the industrial complex site.

Offshore wind foundation structure manufactured at the SK Ocean Plant yard located in Goseong-gun, Gyeongnam. Provided by SK Ocean Plant

Governor Lee stated, "The offshore wind power generation project being pursued by SK Ocean Plant is a key driver for the local economy and a crucial force for addressing population decline. SK Ocean Plant is not just a company, but a partner that symbolizes hope for the region, youth employment, and the future of Goseong. A hasty sale that betrays the trust and expectations of the community is absolutely unacceptable."

He continued, "We demand a thorough review of the impact of this sale negotiation on the local economy and call for the decision to be completely reconsidered or halted."

The Gyeongnam Provincial Government echoed Goseong County’s opposition to the sale of SK Ocean Plant.

In a press release, the province stated, "The sale of SK Ocean Plant shares is an act that betrays the trust of the local community," and urged SK Ecoplant and the creditors to carefully reconsider the matter.

The province pointed out that if the sale of SK Ocean Plant becomes a reality, it could disrupt the ongoing Opportunity Development Zone project for offshore wind power, which is currently 60% complete, and could also shrink the local economy.

The province explained that proceeding with the sale could have a serious impact on the local economy overall, including uncertainties regarding worker employment succession and the maintenance of contracts with partner companies, difficulties in securing an additional 500 billion won investment for upper facilities, and the potential revocation of the Opportunity Development Zone designation.

The province emphasized, "The offshore wind industry in Goseong is a core sector of Gyeongnam’s future growth strategy, and business decisions by corporations must not undermine the foundation of the regional industry."

The Gyeongnam Provincial Government plans to actively respond by working with Goseong County, the Ministry of Trade, Industry and Energy, creditors, and investors to ensure that the Opportunity Development Zone project proceeds as planned and that local jobs and the industrial ecosystem are protected.

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