SK Group (Korean: SK그룹, 에스케이그룹) is a South Korean conglomerate, and the second-largest chaebol in South Korea. SK Group is composed of 186 subsidiary companies that share the SK brand name and the group's management culture, named SKMS (SK Management System). It changed its name from Sunkyong Group (Korean: 선경그룹, Hanja : 鮮京그룹) to SK Group in 1998. The cornerstone of SK Group is its energy and chemicals division.[2]

SK Group
Native name
에스케이그룹
TypePrivate
IndustryConglomerate
Founded8 April 1953; 69 years ago (1953-04-08)
FounderChey Jong-gun
HeadquartersSeoul, South Korea
Area served
Worldwide
Key people
Chey Tae-won
(Chairman & CEO)
Cho Dae-sik
(Chairman of the SUPEX Council (de facto head))[1]
ProductsEnergy & Chemicals, Telecommunications,
Trading & Services, Semiconductors
Websitewww.sk.com/en/

While its largest businesses are primarily involved in the chemical, petroleum, and energy industries, SK Group also owns South Korea's largest wireless mobile phone service provider, SK Telecom, and provides services in construction, marketing, local telephone, high-speed Internet, and wireless broadband (WiBro). SK further broadened its business to a semiconductor industry by incorporating Hynix into the group.[3]

HistoryEdit

Formation and early productionEdit

As with many other chaebols, SK Group's chairmanship was 'inherited' from father to son: from its founder the late Chey Jong-hyon to its present chairman Chey Tae-won (eldest son). Chey Tae-won is married to the daughter of the former South Korean President Roh Tae-woo.[4]

SK Group began when the current founders acquired Sunkyong Textiles (established during the Japanese rule as a joint venture with the Kyoto-based Kyoto Textile Company) in 1953.[5] In 1958, the company manufactured Korea's first polyester fiber on company grounds. It established Sunkyong Fibers Ltd. in July 1969, and started to produce original yarn. In 1973, SK then established Sunkyong Oil, beginning a vertical integration strategy to manage production, "From Petroleum to Fibers". That same year, the company acquired the Walkerhill Hotel.

In 1976, Sunkyong Corporation received an international trading company license from the Indian government.[6] In December 1980 SK purchased privately run Korea National Oil, making it Korea's fifth largest conglomerate.[7]

In January 1988, crude oil was imported for processing to Korea from Yemen's Marib oil field.[citation needed]

Growing up yearsEdit

In June 1994, SK entered Korea's telecommunications business by becoming Korea Mobile Telecommunication Service's largest shareholder.[8] In January 1996, SK Telecom launched Korea's first commercial CDMA cellular phone service in Incheon and Bucheon.[9]

In 1998, Management re-branded Sunkyong to SK.[10] In 1999, SK Chemicals developed third-generation (non cross resistant) platinum-complex anti-cancer agent.[11] Also, by focusing its research and development efforts on life sciences, SK Corporation developed YKP1358, a new drug candidate for schizophrenia, in 2003.[12][13]

In 2002, SK Telecom successfully launched the world's first commercial CDMA 1X EV-DO technology, allowing it to offer 3G telecommunications service.[14][15] In 2004, SK Telecom enabled satellite DMB service by deploying the world's first DMB satellite.[16] Moreover, in 2006, SK began revitalizing the 3.5-generation mobile phone market and in the following year, completed the construction of the national HSDPA network. In May 2006, SK Telecom started the world's first commercial 3.5-generation HSDPA service, featuring high-quality video telephony and data transmission, and global roaming access.[17]

In 2005, SK Networks opened China's first two wholly foreign-owned, gas stations in Shenyang. Then, after exploring Brazilian mining area BM-C-8, SK Corporation developed an oil field where it confirmed the existence of more than 50 million barrels of oil deposits.[18]

SK Gas began developing resources overseas when it participated in two mining areas to the west of Russia's Kamchatka peninsula in March 2006. In early 2006, SK Networks also developed Ecol-Green, a biodegradable plastic material. Incheon Oil officially started operations using the SK name in March 2006.[19] SK Energy is currently engaged in 27 oil fields in 15 countries worldwide

SKC imported propylene oxide (PO, a chemical used in manufacturing polyurethane) production technology from Germany in May 2006. It is scheduled to produce 100,000 tons of PO from 2008.[20]

At the end of 2005, SK Corp. developed a lithium ion battery separator (LiBS) for the first time in Korea, and started selling the product in 2006. In July 2007, SK Group adopted a holding company structure.[21][22] Under the re-organization, SK's main entity, SK Corporation, was split into an investment company, now SK Inc. and an operating company, now SK Energy. The subsidiary companies that now operate under the central SK Inc. umbrella include: SK Energy, SK Telecom, SK Networks, SKC, SK E&S, SK Shipping and K Power.

Recent yearsEdit

In February 2017, SK acquired the polyethylene acrylic acid business of Dow Chemical Company for $370 million,[23] and planned to increase battery production capacity from 1.9 to 3.9 GWh per year at the end of 2018, supplying Kia and Mercedes.[24]

On March 31, 2017, SK Innovation said that the electric vehicle battery plant it had in China had been closed since January of that year, after "Chinese joint venture partners halted production for no obvious reason."[25]

On March 21, 2018, SK Innovation announced the acquisition of U.S. shale oil and gas company Longfellow Nemaha.[26]

In February 2021, the U.S. International Trade Commission (ITC) banned some SK lithium-ion batteries from being imported into USA, while allowing some components for US assembly to be delivered to Ford and Volkswagen.[27]

In September 2021, Ford and SK Innovation announced a joint venture to manufacture batteries in the Kentucky/Tennessee region for Ford motor vehicles.[28]

SubsidiariesEdit

 
SK Building in Beijing CBD

HoldingsEdit

  • SK Inc. (KRX: 003600) is a holding company which resulted when SK Corporation was reorganized on July 1, 2007, into a holding company and operating company, SK Inc. and SK Energy, respectively. SK Inc. is a part of the SK Group that focuses on 4 core business interests, High-tech materials, Bio, Green and Digital. The SK Group is composed of 186 affiliate companies that share the SK brand and culture. In 2021, SK Group recorded combined revenues of $133 billion, with exports contributing $50 billion of that total. SK continues to expand its global presence, with more than 117,590 employees who work from 473 offices worldwide.

Energy & ChemicalsEdit

  • SK Innovation (KRX: 096770) and SK Energy is a South Korean enterprise formed as part of the July 1, 2007, reorganization of SK Corporation into a holding company and operating company, SK Holdings and SK Energy, respectively. In 2011, the petroleum business was spun off to become SK Energy. Simultaneously the chemical business was spun off to become SK Innovation. SK Energy was founded in 1962 as Korea's first oil refinery. In 1982, changed company name to Yukong. SK Energy is an energy and petrochemical company with 5,000 employees, KRW 23.65 trillion in sales and 26 offices spanning the globe. The company is Korea's largest (and Asia's fourth largest) refiner with a refining capacity of 1.15 million barrels per day, as of 2006. SK Energy is engaged in exploration and development activities in 26 oil / gas blocks in 14 nations worldwide.[29][30][31]
  • SKC (KRX: 011790), headquartered in Seoul, is the leading Korean company in chemical and film industry. SKC was founded and established in 1976 as previous name of Sunkyong Chemicals Ltd (Korean: 선경화학 (주)). SKC developed polyester films firstly in Korea, by its own efforts. With its main plant and R&D center located in Suwon, South Korea, it also operates large capacity of film plant in Georgia, United States.

Information & Communications TechnologyEdit

  • SK Telecom (KRX: 017670)
  • SK Square (KRX: 402340) is a portfolio management company.
  • SK Planet is a marketing and management company in the SK Group. The company mainly derived from the marketing teams of SK Energy and SK Telecom. It was established on April 4, 2008. The company accounts for several services which were previously provided by SK Energy and SK Telecom, such as the OK Cashbag from SK Energy and the Gifticon service from SK Telecom. They also hold a subsidiary "Ofelis", which is a wedding consulting company.
  • SK Inc. C&C was established in 1991 and is currently one of the "Big Three" IT services companies in Korea. SK C&C has business interests across IT services, including telecommunications, banking & finance, government, public, logistics, and other fields.

Semiconductor & MaterialsEdit

  • SK Hynix (KRX: 000660) is the world's 3rd-largest semiconductor manufacturer and the 2nd-largest in South Korea after Samsung Electronics which is the leader in the global semiconductor industry. SK Hynix was founded in 1983 as "Hyundai Electronics", which is the origin of its name "Hynix", and merged to SK Group in 2012 when SK Telecom became the major shareholder. The major products are DRAM, flash memory, and many other semiconductor materials. While its headquarter is located at Icheon, Gyeonggido, it also runs a large production line at Cheongju, Chungcheongbuk-do.
  • SK Siltron is the only semiconductor wafer manufacturer in Korea, and it has grown hand in hand with the semiconductor industry over the last 35 plus years. Armed with a record-long history of mass production and accumulated know-how, the company expands its production capacity in a preemptive manner and continues to strengthen its manufacturing and technology competitiveness. At the same time, the company is expanding its business portfolio to include emerging areas such as SiC wafers. This lays a strong foundation for SK Siltron to grow to become one of the world’s best semiconductor materials players both in production volume and profitability.

Logistics, Services & BioEdit

  • SK Biopharmaceuticals (KRX: 326030) is a drug discovery and drug development company. It discovered solriamfetol.[32]
  • SK pharmteco is a global contract development and manufacturing organization specializing in the production of active pharmaceutical ingredients (APIs), intermediates and viral vectors for cell and gene therapy for the pharmaceutical industry. SK Pharmteco operates six facilities in Europe, North America and Korea.
  • SK Ecoplant is a Korean construction company founded and established in 1977 with a previous name of Sunkyong Construction (Korean: 선경 건설), headquartered in Gwanhun-dong Jongno-gu, Seoul. Its brands include SK View, SK Hub, and Apelbaum. The company's CEO is Ki Haeng Cho. Industries: Oil & Gas, Petrochemical, Power, Environmental Protection, Industrial, Civil, Building, Housing. Services:Feasibility Study, EPC Service, Project Management, Operations & Maintenance.

Management systemEdit

SK's subsidiary companies all operate under the SK Management System (SKMS) which was developed, articulated and enhanced by SK's Chairman, Chey Tae-won.

On April 7, 2008, SK Group launched a marketing and management company named "SK Marketing & Company" to pursue Chairman Chey's vision.

See alsoEdit

ReferencesEdit

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  27. ^ Yang, David Shepardson, Heekyong (10 February 2021). "SK Innovation loses U.S. battery trade case but gets temporary OK to sell to Ford, VW". Reuters. Archived from the original on 10 February 2021. permit SK to import components for domestic production of lithium ion batteries and other parts for Ford Motor Co’s EV F-150 program for four years, and for Volkswagen of America’s MEB electric vehicle line for the North America region for two years.
  28. ^ Ford to Lead America’s Shift to Electric Vehicles with New Mega Campus in Tennessee and Twin Battery Plants in Kentucky; $11.4B Investment to Create 11,000 Jobs and Power New ...
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