SK Corp. Transforms into an Investment Specialist Company in Advanced Materials, Green, Bio, and Digital Sectors

[Asia Economy Reporter Kim Hyewon] SK Inc. is transforming into an 'investment-specialized company' centered on four core businesses.

SK Inc. announced on the 24th that it has designated this year as the inaugural year to fully execute its four core businesses?advanced materials, green, bio, and digital?starting with the hydrogen business at the beginning of the year, and has carried out an organizational restructuring accordingly.

SK Inc. changed the names of its existing 'Investment Center 1, 2, 3, and I Cube Center' to ▲Advanced Materials Investment Center ▲Green Investment Center ▲Bio Investment Center ▲Digital Investment Center.

The Advanced Materials Investment Center is responsible for semiconductor and battery materials businesses. SK Inc. has established a successful foundation in semiconductor materials businesses such as SK Siltron and SK Materials and expanded its business area to copper foil, a core component of electric vehicle batteries. The center plans to target the semiconductor materials market related to rapidly growing fields such as big data, artificial intelligence (AI), and autonomous vehicles.

Battery materials are also becoming increasingly important due to the rapid growth of the electric vehicle market. To proactively respond to the fast-growing market, the Advanced Materials Investment Center plans to strengthen its high value-added advanced materials portfolio by recruiting PhD-level experts in chemistry and new polymer materials and investing in core technology companies.

The Green Investment Center aims to secure new growth engines through eco-friendly energy solution businesses such as renewable energy and energy-saving business models and to lead SK Group's response to RE100. Additionally, it plans to continuously discover new technologies and innovative businesses in sustainable alternative food, recycling, and CO2 capture and utilization?areas that have become global environmental, social, and governance (ESG) consumer trends?and expand its eco-friendly portfolio.

In this regard, SK Inc. has placed the Hydrogen Business Promotion Team directly under the CEO to accelerate the establishment of an eco-friendly hydrogen ecosystem through swift decision-making. The Hydrogen Business Promotion Team consists of about 20 energy experts from affiliates such as SK E&S and SK Innovation, with an average of over 15 years of experience in the energy business.

The Bio Investment Center is making rapid strides to secure business capabilities spanning from synthetic new drugs to bio new drugs, focusing on new drug development and contract manufacturing organization (CMO) for active pharmaceutical ingredients. SK Inc., which is creating success stories in new drug development through SK Biopharm, plans to strengthen innovative new drug businesses such as targeted protein degradation drugs currently underway with the U.S. bio company Roivant. Furthermore, through the integrated CMO corporation SK Pharmteco, which completes a triangular alliance connecting the Korean, U.S., and European markets, SK Inc. aims to expand into a high-growth bio CMO sector starting with the acquisition of the French gene therapy CDMO company Eposkesi, aspiring to become a global top-tier CMO encompassing both synthetic and bio sectors.

The Digital Investment Center aspires to secure future promising areas by targeting the emerging tech market, which is rising as a global new technology trend including AI and autonomous driving. It plans to expand eco-friendly mobility businesses and strengthen digital capabilities in infrastructure sectors. The center will continuously expand its competitive portfolio, including global logistics infrastructure company ESR, which has achieved major investment success, global data center operator Chin Data Group, and Korea Cold Chain, a cryogenic cold chain company utilizing eco-friendly LNG cold energy.

SK Inc. plans to actively attract capital, technology, and investment capabilities from various external partners who share its vision during the cultivation of the four core businesses, thereby creating SK Inc.'s unique investment ecosystem as an investment-specialized platform. It intends to maximize investment performance through timely investment recovery and solidify a virtuous cycle of investment by reinvesting realized profits into future growth businesses.

Jang Donghyun, CEO of SK Inc., said, "This year will be a meaningful year to put SK Inc.'s financial story into action through the full-scale promotion of the four core businesses," adding, "Going forward, we will create attractive corporate value that earns empathy and trust by actively communicating with various stakeholders centered on the financial story."