SK Group (Korean: SK그룹, 에스케이그룹) is a South Korean conglomerate, and the second-largest chaebol in South Korea. SK Group is composed of 186 subsidiary companies that share the SK brand name and the group's management culture, named SKMS (SK Management System). It changed its name from Sunkyong Group (Korean: 선경그룹, Hanja : 鮮京그룹) to SK Group in 1998. The cornerstone of SK Group is its energy and chemicals division.[2]
As with many other chaebols, SK Group's chairmanship was 'inherited' from father to son: from its founder the late Chey Jong-hyon to its present chairman Chey Tae-won (eldest son). Chey Tae-won is married to the daughter of the former South Korean President Roh Tae-woo.[4]
SK Group began when the current founders acquired Sunkyong Textiles (established during the Japanese rule as a joint venture with the Kyoto-based Kyoto Textile Company) in 1953.[5] In 1958, the company manufactured Korea's first polyester fiber on company grounds. It established Sunkyong Fibers Ltd. in July 1969, and started to produce original yarn. In 1973, SK then established Sunkyong Oil, beginning a vertical integration strategy to manage production, "From Petroleum to Fibers". That same year, the company acquired the Walkerhill Hotel.
In 1976, Sunkyong Corporation received an international trading company license from the Indian government.[6] In December 1980 SK purchased privately run Korea National Oil, making it Korea's fifth largest conglomerate.[7]
In January 1988, crude oil was imported for processing to Korea from Yemen's Marib oil field.[citation needed]
Growing up years
In June 1994, SK entered Korea's telecommunications business by becoming Korea Mobile Telecommunication Service's largest shareholder.[8] In January 1996, SK Telecom launched Korea's first commercial CDMA cellular phone service in Incheon and Bucheon.[9]
In 1998, Management re-branded Sunkyong to SK.[10] In 1999, SK Chemicals developed third-generation (non cross resistant) platinum-complex anti-cancer agent.[11] Also, by focusing its research and development efforts on life sciences, SK Corporation developed YKP1358, a new drug candidate for schizophrenia, in 2003.[12][13]
In 2002, SK Telecom successfully launched the world's first commercial CDMA 1X EV-DO technology, allowing it to offer 3G telecommunications service.[14][15] In 2004, SK Telecom enabled satellite DMB service by deploying the world's first DMB satellite.[16] Moreover, in 2006, SK began revitalizing the 3.5-generation mobile phone market and in the following year, completed the construction of the national HSDPA network. In May 2006, SK Telecom started the world's first commercial 3.5-generation HSDPA service, featuring high-quality video telephony and data transmission, and global roaming access.[17]
In 2005, SK Networks opened China's first two wholly foreign-owned, gas stations in Shenyang. Then, after exploring Brazilian mining area BM-C-8, SK Corporation developed an oil field where it confirmed the existence of more than 50 million barrels of oil deposits.[18]
SK Gas began developing resources overseas when it participated in two mining areas to the west of Russia's Kamchatka peninsula in March 2006. In early 2006, SK Networks also developed Ecol-Green, a biodegradable plastic material. Incheon Oil officially started operations using the SK name in March 2006.[19] SK Energy is currently engaged in 27 oil fields in 15 countries worldwide
SKC imported propylene oxide (PO, a chemical used in manufacturing polyurethane) production technology from Germany in May 2006. It is scheduled to produce 100,000 tons of PO from 2008.[20]
At the end of 2005, SK Corp. developed a lithium ion battery separator (LiBS) for the first time in Korea, and started selling the product in 2006. In July 2007, SK Group adopted a holding company structure.[21][22]
Under the re-organization, SK's main entity, SK Corporation, was split into an investment company, now SK Inc. and an operating company, now SK Energy. The subsidiary companies that now operate under the central SK Inc. umbrella include: SK Energy, SK Telecom, SK Networks, SKC, SK E&S, SK Shipping and K Power.
Recent years
In February 2017, SK acquired the polyethylene acrylic acid business of Dow Chemical Company for $370 million,[23] and planned to increase battery production capacity from 1.9 to 3.9 GWh per year at the end of 2018, supplying Kia and Mercedes.[24]
On March 31, 2017, SK Innovation said that the electric vehicle battery plant it had in China had been closed since January of that year, after "Chinese joint venture partners halted production for no obvious reason."[25]
On March 21, 2018, SK Innovation announced the acquisition of U.S. shale oil and gas company Longfellow Nemaha.[26]
In February 2021, the U.S. International Trade Commission (ITC) banned some SK lithium-ion batteries from being imported into USA, while allowing some components for US assembly to be delivered to Ford and Volkswagen.[27]
In September 2021, Ford and SK Innovation announced a joint venture to manufacture batteries in the Kentucky/Tennessee region for Ford motor vehicles.[28]
SK Inc. (KRX: 003600) is a holding company which resulted when SK Corporation was reorganized on July 1, 2007, into a holding company and operating company, SK Inc. and SK Energy, respectively. SK Inc. is a part of the SK Group that focuses on 4 core business interests, High-tech materials, Bio, Green and Digital. The SK Group is composed of 186 affiliate companies that share the SK brand and culture. In 2021, SK Group recorded combined revenues of $133 billion, with exports contributing $50 billion of that total. SK continues to expand its global presence, with more than 117,590 employees who work from 473 offices worldwide.
Energy & Chemicals
SK Innovation (KRX: 096770) and SK Energy is a South Korean enterprise formed as part of the July 1, 2007, reorganization of SK Corporation into a holding company and operating company, SK Holdings and SK Energy, respectively. In 2011, the petroleum business was spun off to become SK Energy. Simultaneously the chemical business was spun off to become SK Innovation. SK Energy was founded in 1962 as Korea's first oil refinery. In 1982, changed company name to Yukong. SK Energy is an energy and petrochemical company with 5,000 employees, KRW 23.65 trillion in sales and 26 offices spanning the globe. The company is Korea's largest (and Asia's fourth largest) refiner with a refining capacity of 1.15 million barrels per day, as of 2006. SK Energy is engaged in exploration and development activities in 26 oil / gas blocks in 14 nations worldwide.[29][30][31]
SKC (KRX: 011790), headquartered in Seoul, is the leading Korean company in chemical and film industry. SKC was founded and established in 1976 as previous name of Sunkyong Chemicals Ltd (Korean: 선경화학 (주)). SKC developed polyester films firstly in Korea, by its own efforts. Nowadays, SKC is one of the best polyester film makers in the world, supplying 10% of worldwide demands with its wide applications including labels, LCDs, and solar cells. With its main plant and R&D center located in Suwon, South Korea, it also operates large capacity of film plant (SKC Inc.) in Georgia, United States. SKC is now developing into one of the leading companies dealing with a variety of eco-friendly, advanced materials for the future energy and chemical industries such as biodegradable films, battery components, LEDs and photovoltaic materials.
SK E&S was launched as a holding company of its city gas business in 1999. It has since expanded its scope of business to include LNG, electricity, community energy, renewable energy and overseas energy. SK E&S operates and supplies electricity from its natural gas power plants. The company secures competitively priced LNG, thus ensuring stable electricity supply and demand in Korea. SK E&S aspires to become a Global Clean Energy & Solution Provider both in Korea and overseas.
Information & Communications Technology
SK Telecom (KRX: 017670) has been driving the development of Korea's mobile communications industry, commercializing the world's first CDMA in 1996, the world's first LTE-A in 2013 and the world's first 5G in 2019. The company was also the first in the world to launch a 5G commercial service, marked by wide coverage, high speed and strong security. With the spirit that has led the evolution of the industry, SK Telecom is set to move forward to pursue Hyper-Innovation to improve the quality of customers’ lives and accelerate the growth of the Korean economy.
SK Square (KRX: 402340) is an active portfolio management company with a wealth of experience accumulated through managing semiconductor and ICT platform businesses, and a proven track record of investment performance such as SK Hynix and SK Shieldus. SK Square possesses specialized investment insights into the semiconductor and ICT sectors as well as a unique positioning with its subsidiary company SK Hynix, a top global semiconductor supplier and sister company of SK Telecom, Korea’s no.1 telecommunications company.
SK Planet is a marketing and management company in the SK Group. The company mainly derived from the marketing teams of SK Energy and SK Telecom. It was established on April 4, 2008. The company accounts for several services which were previously provided by SK Energy and SK Telecom, such as the OK Cashbag from SK Energy and the Gifticon service from SK Telecom. They also hold a subsidiary "Ofelis", which is a wedding consulting company.
SK Inc. C&C was established in 1991 and is currently one of the "Big Three" IT services companies in Korea. SK C&C has business interests across IT services, including telecommunications, banking & finance, government, public, logistics, and other fields. And the company is expanding its presence overseas. Industries in its product portfolio include GIS, ITS, ERP, national security & defense, postal, e-government, e-learning, postal, and other areas. They also specialize in mobile commerce products and SK C&C USA launched Google Wallet services recently.
Semiconductor & Materials
SK Hynix (KRX: 000660) is the world's 3rd-largest semiconductor manufacturer and the 2nd-largest in South Korea after Samsung Electronics which is the leader in the global semiconductor industry. SK Hynix was founded in 1983 as "Hyundai Electronics", which is the origin of its name "Hynix", and merged to SK Group in 2012 when SK Telecom became the major shareholder. The major products are DRAM, flash memory, and many other semiconductor materials. While its headquarter is located at Icheon, Gyeonggido, it also runs a large production line at Cheongju, Chungcheongbuk-do.
SK Siltron is the only semiconductor wafer manufacturer in Korea, and it has grown hand in hand with the semiconductor industry over the last 35 plus years. Armed with a record-long history of mass production and accumulated know-how, the company expands its production capacity in a preemptive manner and continues to strengthen its manufacturing and technology competitiveness. At the same time, the company is expanding its business portfolio to include emerging areas such as SiC wafers. This lays a strong foundation for SK Siltron to grow to become one of the world’s best semiconductor materials players both in production volume and profitability.
SK pharmteco is a global contract development and manufacturing organization specializing in the production of active pharmaceutical ingredients (APIs), intermediates and viral vectors for cell and gene therapy for the pharmaceutical industry. SK Pharmteco operates six facilities in Europe, North America and Korea. Thanks to such a strong global network, the company has flexibility to meet the needs of pharmaceutical companies and expertise to comply with the regulatory requirements of developed countries. The recent trends suggest stricter regulatory standards and global companies’ changing preferences towards CMOs based in developed countries. This would provide tailwinds to SK Pharmteco’s growth as the company is equipped with a proven record of successful inspection and great facilities. In addition, the company boasts specialized technology platforms that can handle continuous processing, energetic chemistries and high potency manufacturing. Being able to produce highly sophisticated drugs, SK Pharmteco is widely regarded as a trusted partner to its pharma clients.
SK Ecoplant is a Korean construction company founded and established in 1977 with a previous name of Sunkyong Construction (Korean: 선경 건설), headquartered in Gwanhun-dongJongno-gu, Seoul. Its brands include SK View, SK Hub, and Apelbaum. The company's CEO is Ki Haeng Cho. Industries: Oil & Gas, Petrochemical, Power, Environmental Protection, Industrial, Civil, Building, Housing. Services:Feasibility Study, EPC Service, Project Management, Operations & Maintenance.
Management system
SK's subsidiary companies all operate under the SK Management System (SKMS) which was developed, articulated and enhanced by SK's Chairman, Chey Tae-won.
On April 7, 2008, SK Group launched a marketing and management company named "SK Marketing & Company" to pursue Chairman Chey's vision.
^Yang, David Shepardson, Heekyong (10 February 2021). "SK Innovation loses U.S. battery trade case but gets temporary OK to sell to Ford, VW". Reuters. Archived from the original on 10 February 2021. permit SK to import components for domestic production of lithium ion batteries and other parts for Ford Motor Co's EV F-150 program for four years, and for Volkswagen of America's MEB electric vehicle line for the North America region for two years.{{cite web}}: CS1 maint: multiple names: authors list (link)