Optimization of Semiconductor-Centered Business Structure
Restructuring to Expand Synergy Among Affiliates
Positive Outlook for Corporate Performance
SK, which has been continuously pursuing rebalancing (business restructuring), has now moved to streamline its semiconductor materials and artificial intelligence (AI) businesses. This move is seen as an effort to eliminate overlapping businesses, integrate capabilities, and enhance the competitiveness of its subsidiaries in order to secure new growth drivers.
The transfer of SK Materials' semiconductor materials subsidiaries to SK Ecoplant and the transfer of SK C&C's data center assets to SK Broadband are, in form, asset relocations between affiliates. However, in substance, these actions represent a shift from a holding company-centered structure to a more execution-focused business company-centered system.
This aligns with the group's recent focus on "core business concentration." Since last year, under the leadership of Chairman Chey Tae-won, SK has made AI transformation and business and organizational portfolio restructuring its core values. Based on this, the company is pursuing company-wide optimization of its semiconductor-centered business structure, strengthening management in the energy sector, and expanding synergy among affiliates.
Currently, SK holds significant stakes in key unlisted subsidiaries such as SK Ecoplant, SK Broadband, and SK On, in addition to SK Hynix. When these subsidiaries operate overlapping businesses or underperform, it negatively affects the value of the holding company itself. Therefore, it has become necessary to reallocate assets to enhance synergy among affiliates while also boosting the independence and investment appeal of each business company.
The SK Materials subsidiaries newly incorporated into SK Ecoplant are mostly companies that produce specialty gases or precision materials used in all semiconductor manufacturing processes. SK Ecoplant aims to align its rebalancing strategy with the growth of advanced industries through this new incorporation. With this addition, SK Ecoplant has internalized key processes in semiconductor manufacturing. In December last year, SK Ecoplant also integrated SK Materials Airplus, which produces industrial gases such as nitrogen, oxygen, and argon using air separation units (ASUs), and reorganized it as "SK Airplus." This company plays a vital role in the supply chain not only for semiconductors but also for the petrochemical and refining industries.
The portfolio restructuring is expected to have a positive impact on performance as well. Last year, SK Ecoplant reported consolidated sales of 9.3176 trillion won, up 8.2% from the previous year, and operating profit of 234.6 billion won, a 49% increase. This is attributed to the inclusion of results from SK Airplus and the semiconductor module company Essencore, which had previously been incorporated. The combined annual sales of the four newly added semiconductor materials subsidiaries amount to approximately 350 billion won, and their contribution to future performance is expected to grow further. Industry insiders also suggest that SK Ecoplant could pursue an initial public offering (IPO) based on the unification of its value chain, performance growth, and financial soundness.
A similar restructuring took place in the data center sector. The Pangyo data center previously owned by SK C&C was sold to SK Broadband, clarifying the operator of the infrastructure amid surging demand for AI and cloud services, and concentrating assets in a profitability-based affiliate. Some in the industry view this as a preliminary step toward the potential spin-off and listing of SK Broadband's IDC and cloud business.
A capital market expert commented, "They are categorizing existing businesses into core and non-core based on profitability and strategic importance, and reallocating resources to focus on core industries." Lee Junseo, professor of business administration at Dongguk University, said, "Considering both the domestic political and global economic situations, this is a crucial time for AI and semiconductors," adding, "They are now executing plans that have been under consideration for a long time to fit this environment." He further noted, "Going forward, I cautiously expect that restructuring through equity structure adjustments and IPOs will also proceed to vitalize the Korean market and boost indices."
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