SK Becomes Big Exporter after Acquiring SK Hynix
트위터 페이스북 미투데이
Global News Network
HOME      ABOUT US      NW 기획정보
SK Becomes Big Exporter after Acquiring SK Hynix
SK Telecom and other ICT subsidiaries see exports jump to 17 trillion won in 2016, representing 127 fold-surge from 130 billion won in 2011

01(Mon), May, 2017

SK Group Chairman Chey Tae-won looks at a semiconductor item at SK Hynix’s plant in Chongqing, China. (Photo: SK Group)

SK, marking its 64th anniversary on April 8, is no longer a company dependent primarily on domestic demand, but an exporter company. SK Group posted $52.4 billion in group-wide exports last year, accounting for 11 percent of Korea’s total exports during the year. The group with domestic demand business portfolios, including refinery and telecom, has turned into a big exporter thanks to the group’s acquisition of SK Hynix in 2012. 

SK’s anniversary comes 64 years after late founder Chey Chong-kun established Sunkyung Textile. 

Negative views had prevailed when SK Group took over SK Hynix for 3.3 trillion won, surpassing the market consensus, but it is now helping improve the group’s fundamentals, a group official said. 

SK Group Chairman Chey Tae-won has stressed the need for nurturing new growth engines, saying that its business structure, focusing on energy and chemicals, could be faced with saturation or “slow death.” He gave the nod to the group’s acquisition of SK Hynix, which was weighed down with 9.36 trillion won in debts and 1.7 trillion won in accumulating losses.  

As semiconductor prices plunged after SK Group’s acquisition of the semiconductor unit, rival companies reduced investments, but Chairman Chey opted to increase investments. His move has now begun to pay off. SK Hynix plans to set aside 7 trillion won for R&D outlays this year. The company’s R&D outlays increased from 934 billion won in 2011 to 2.0967 trillion won in last year, accounting for 12 percent of sales. 

SK Telecom, SK Hynix, SK C&C and other ICT subsidiaries of the group chalked up 37.4 trillion won in combined sales in 2016, more than twice 17.6 trillion won in 2011 before SK Hynix was acquired. The companies saw exports jump from 130 billion won to 17 trillion won, representing a 127-fold surge during the period. Not only SK Hynix, but also other ICT companies have maintained growth. SK C&C, which has once been classified as a company, fully depending on domestic demand, saw exports surge to 760 billion won, a 7-fold jump over five years ago. 

Conventional mainstay subsidiaries, including SK Innovation, SK Energy, and SK Chemical, logged 51.3 trillion won in sales in 2016, including 30.2 trillion won in exports. The companies’ global partnership strategies have begun to bear fruits. SK Innovation has established an ethylene joint venture with China’s biggest state-run energy company Sinopec in Wuhan.  

The ICT subsidiaries have been scrambling to brace for the advent of the 4th Industrial Revolution. In early April, SK Telecom inaugurated an artificial intelligence business division under the direct control of SK Telecom CEO. Korea’s largest telecom service provider is developing a connected car, a self-driving car employing 5G and IoT, as well as a quantum cryptography communication system, a next-generation security solution. SK C&C is developing an artificial intelligence “Aibril,” based on IBM’s artificial intelligence “Watson” to tap the medical field. SK Group Executive Vice President Lee Hang-soo said, “SK Group take a more than 10 percent share in the Korean export industry.”

Most Popular

기사제보      광고문의      구독신청      번역의뢰      업무제휴      PR대행      보도자료      리소스 센터      Previous Site
Copyright(c) 2013 NewsWorld, All right reserved. / 3f, 214, Dasan-ro, Jung-gu, Seoul, Korea 100-456 / http//
If you have any question or suggestion, please cuntact us by email: or call 82-2-2235-6114 / Fax : 82-2-2235-8864
홈페이지와 콘텐트 저작권은 뉴스월드에 있습니다.