[Asia Economy Reporter Park So-yeon] SK Group's investment holding company SK Inc. is writing financial success stories wherever it invests or acquires companies, as the value of these companies soars.
According to industry sources on the 23rd, SK Inc. is gaining attention for its swift and proactive investments in promising companies. The stock price of Plug Power, a U.S. hydrogen company invested in by SK Inc., surged 130% in just five days, increasing SK Inc.'s equity value by more than 2 trillion won. Industry experts say this demonstrates SK Inc.'s genuine investment capabilities rather than mere luck.
SK Inc.'s investment strategies?such as independent discovery of investment targets by specialized personnel, thorough on-site verification, and portfolio optimization?have proven effective during every crisis. In particular, this hydrogen business equity investment is considered a timely move as the election of U.S. President Joe Biden is expected to accelerate the 'carbon zero' era. With the domestic and international hydrogen industries gaining significant momentum and Plug Power establishing a joint venture with France's Renault Group, market expectations for Plug Power, where SK Inc. is a major shareholder, are rising even further.
SK Inc. has previously been recognized for its ability to discover investment companies. Semiconductor specialty gas manufacturer SK Materials (formerly OCI Materials), acquired in 2016, and semiconductor wafer manufacturer SK Siltron (formerly LG Siltron), acquired in 2017, were properly valued during Japan's semiconductor material export restrictions in 2019. They played a key role in semiconductor material independence. Notably, SK Siltron's acquisition was a case where Chairman Chey Tae-won actively participated, with about 250 billion won of the 1 trillion won acquisition fund coming from his personal funds. SK Siltron has thrived since joining the SK Group. Its sales, which were 836.3 billion won at the end of 2016, nearly doubled to 1.6342 trillion won by the end of 2019. During the same period, operating profit increased elevenfold from 34 billion won to 375.5 billion won.
Last year, SK Inc.'s proactive investments in bio and logistics sectors drew attention amid the COVID-19 situation. Despite the worsening business environment due to the pandemic, SK's bio roadmap accelerated. SK Pharmteco, SK Inc.'s 100% bio subsidiary, secured a 1 trillion won contract to supply essential raw materials for COVID-19 medicines in the U.S. SK Pharmteco's U.S. production entity, Ampac, was the only private company named in the consortium securing essential medicines for COVID-19 response. Ampac is a U.S.-based pharmaceutical contract manufacturing and development organization acquired by SK Inc. in 2018. SK Inc. also gained attention for its proactive investment in ultra-low temperature logistics companies critical for vaccine distribution. Pfizer's U.S. vaccine must be distributed at ultra-low temperatures below -70°C, and in Korea, the only logistics company with the technology to meet this condition is Korea Cold Chain, in which SK Inc. invested in January last year. SK became the second-largest shareholder by investing about 25 billion won in Belstar Superfreeze, which owns 100% of Korea Cold Chain, securing a 20% stake. An industry insider said, "SK Inc. has nearly 100 specialized investment personnel closely involved in the investment field. These experts directly visit key markets to discover and analyze opportunities, and the new investment approach that respects independent decision-making seems to be working well."
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