SK Chemicals Reports 36.9 Billion KRW Operating Profit in Q1 on Separate Basis, Up 98.5% Year-on-Year

Solid Performance Driven by High Value-Added Products Amid Chemical Industry Downturn
Consolidated Results Including SK Bioscience Return to Profit
"We Will Expand into New Businesses Such as Recycling"

SK Chemicals recorded an operating profit of approximately 36.9 billion KRW on a separate basis in the first quarter of this year, representing a 98.5% year-on-year growth. Despite the downturn in the petrochemical industry, the company's strategy of focusing on high value-added products such as copolyester appears to have been effective. On a consolidated basis, which includes the deficit performance of its subsidiary SK Bioscience, the operating profit was 24.282 billion KRW.

On May 8, SK Chemicals announced through a regulatory filing that its separate sales for the first quarter of this year reached 347.071 billion KRW, with an operating profit of 36.942 billion KRW. The company attributed its strong performance to the continued increase in market demand for its main product line, high-performance plastic copolyesters. At the same time, SK Chemicals stated that it is continuously pursuing operation improvement (OI) initiatives to strengthen its fundamental competitiveness.

Exterior view of SK Chemicals headquarters 'Ecolab' located in Pangyo, Seongnam-si, Gyeonggi Province. SK Chemicals

SK Chemicals’ flagship high value-added product, copolyester, is a material with enhanced properties such as heat resistance and chemical resistance compared to conventional polyester-based materials like PET. According to SK Chemicals, while market demand for copolyester is rapidly increasing, only a few companies worldwide have succeeded in commercializing this material due to the advanced technology required.

Ko Jungseok, Head of SK Chemicals’ Management Support Division, stated, "In the chemical industry, where market conditions change rapidly, it is more important than ever to establish a unique domain that latecomers cannot easily enter." He added, "Through company-wide OI activities, including continuous research and development (R&D) efforts, technology development, and infrastructure optimization, we will further solidify our technological leadership in the copolyester sector." He continued, "We also plan to sustain our strong performance by expanding into new businesses such as recycling."