SK under Chey Tae-won's 'Successful Investment'

Sale of Biopharm Shares Cultivated Over Decades
Targeting High-Growth Sectors Like Advanced Materials and Bio
Identifying Key Investment Destinations... Securing Funds Through 1.1 Trillion Won Block Deal
Demonstrating Expertise as an Investment Company

[Asia Economy Reporter Choi Dae-yeol] SK Inc. has solidified its position as an investment specialist company by successfully securing funds through the partial sale of its stake in SK Biopharm. The strategy of targeting key investment sectors with high growth potential, such as advanced materials and bio, while creating an investment ecosystem that can grow together with various stakeholders, is being recognized as effective. SK Inc. is a business holding company where SK Group Chairman Chey Tae-won is the sole CEO, and it has been actively investing both domestically and internationally this year as well.

According to the disclosure made by SK Inc. on the 24th, it secured 1.1163 trillion KRW by selling part of its stake in its subsidiary SK Biopharm. Even after the sale, it maintains over 60% ownership. SK Biopharm, a new drug developer, attracted attention last year by receiving approval in the U.S. for its self-developed epilepsy drug and deciding to sell it directly. The high valuation at its IPO last year was also thanks to its accumulated capabilities in new drug development and global direct sales.

Last September, SK Inc. made a considerable profit by selling its stake in the global logistics company ESR. ESR is a logistics company with clients such as Amazon and Alibaba, operating infrastructure in over 270 locations worldwide. SK Inc. had purchased the shares about 1 to 2 years prior and later sold part of them, securing 480 billion KRW. This resulted in a profit of approximately 2.5 times the investment.

While the previous investment and divestment were made with external companies, the recent partial sale of SK Biopharm shares holds special significance as it was started decades ago as a business division and nurtured internally. SK’s new drug development began in 1993 under the late Chairman Chey Jong-hyun and has continued under Chairman Chey Tae-won’s leadership, recently bearing fruit.

Choi Tae-won, Chairman of SK Group

SK Inc. is not a pure holding company that only holds stakes in group affiliates but a business holding company that has focused on investing in promising sectors. The approach is to invest funds based on growth potential or directly nurture companies and then recover investments through IPOs and other means. While the investment method is typical of business holding companies, the underlying direction is different. It does not judge investments solely based on financial performance but aims to establish an investment ecosystem involving various stakeholders such as customers and investors in each sector. This aligns with Chairman Chey’s emphasized ‘financial story.’

This year, SK Inc. identified four core investment sectors: advanced materials such as semiconductors and battery materials; green sectors including hydrogen, eco-friendly energy, and alternative foods; bio sectors including new drug development and contract manufacturing organizations (CMO); and digital sectors such as artificial intelligence (AI), digital technology (DT), and mobility. The company reorganized its entire organization accordingly. These sectors are expected to have significant growth potential and align with Chairman Chey’s emphasis on ESG (environmental, social, and governance) management.

Since the beginning of this year, SK Inc. has consecutively invested in promising companies in key business areas such as hydrogen business (U.S. Plug Power) and power semiconductors (Yes Power Technics). Recently, to strengthen the CMO sector, which is considered another pillar in the bio field, it is reviewing acquiring a significant stake in Eposketch, a French contract development and manufacturing organization (CDMO).