A 'Decision' to Leap as a Global Company... SKC Sells Film Business for 1.6 Trillion Won

Contract with Han & Company on the 8th

Secondary Battery, Semiconductor, and Eco-friendly Innovation Investment
"Accelerating the Transformation of the Company's New Identity"

[Asia Economy Reporter Moon Chaeseok] SKC is selling its core film and processing business to improve its business structure, focusing on secondary batteries, semiconductors, and eco-friendly industries. This innovation aims to leap to a global level in future industries by proactively restructuring its traditionally strong business that had been delivering solid performance.

On the 8th, SKC announced that it had agreed to sell its film business to Hanwha & Company, the largest private equity firm in Korea, for 1.6 trillion KRW. On the same day, the board of directors held a meeting and decided to split and sell the film business and signed a stock purchase agreement with Hanwha & Company. The transaction includes SKC's film business division, its film processing subsidiary SKC High Tech & Marketing, and its business sites in the United States and China. After completing procedures such as the shareholders' meeting and business division, the deal is expected to close in the fourth quarter.

SKC stated that with this decision, it will fully commit to establishing a new identity as a "global ESG (Environmental, Social, and Governance) material solution company." Since 2016, the company has been preparing to shift its business model (BM) toward secondary batteries, semiconductors, and eco-friendly businesses. After six years of preparation, SKC decided to sell its core film business this time to accelerate the pace of structural improvement.

The reason for selling the core film business was based on the judgment that it did not align with the "ESG material solution management" policy, SKC explained. Although the film business, which has global competitiveness, has achieved significant results in sales and operating profit, the company decided to sell it to a suitable buyer. An SKC official said, "We will establish a business structure centered on secondary batteries, semiconductors, and eco-friendly sectors, focus on global expansion and future growth investments to build a foundation for 'leap and harvest.' We will become a global ESG material solution company representing Korea."

SKC plans to invest the secured funds in future growth businesses and new ventures. Through this, it aims to clarify its identity as a global ESG material solution company. The company has been steadily securing growth capital, including signing a financial cooperation agreement worth 1.5 trillion KRW with KDB Industrial Bank last year. By additionally securing 1.6 trillion KRW this time, SKC will be able to increase investments while significantly enhancing shareholder value.