Posted July. 02, 2010 11:53,
The SK Group will invest 17.5 trillion won (14.2 billion U.S. dollars) through 2020 into its next-generation growth engines of alternative energy, smart environment and innovative technology.
The conglomerate will also expand its business to China, Latin America, the Middle East and Southeast Asia with the launch of SK China.
A group source said Thursday that the conglomerate set its new future growth strategy at the Full-speed Growth Meeting with SK Group Chairman Chey Tae-won and the CEOs of major SK affiliates attending at SK Building in Seoul Wednesday.
Wednesday also marked the third anniversary of SK Holdings and the official launch of SK China, which is called the groups second headquarters.
Chey went with SK Holdings staff to Mount Indeung in North Chungcheong Province, where his late father and predecessor Chey Jong-hyon created a forest. The new growth strategy commemorating the third anniversary of SK Holdings should not only raise our competitiveness, but also serve as a stepping stone for Koreas economic growth, the chairman said.
○ New growth business begins this year
SKs three new businesses are new energy sources, smart environment and innovative industrial technology.
To secure new energy sources, SK Energy will focus on environment-friendly low-carbon energy businesses such as photovoltaic, biofuel and rechargeable batteries.
The goal is to create 11,000 jobs with an investment of 4.5 trillion won (3.6 billion dollars).
Investment will be expanded to secure overseas resources such as crude oil, gas, ore and natural rubber.
The group said, With the development of both technology and overseas resources, SK will increase its contribution to Koreas energy independence from six percent in 2008 to 13 percent this year.
It will also invest 4.2 trillion won (3.4 billion dollars) in smart city, smart grid, environmental-friendly materials and water treatment. SK E&C and SK Chemical plan to create 9,000 jobs.
To be led by SK Telecom, innovative industrial technology will receive the groups largest investment of 8.8 trillion won (7.1 billion dollars) to create 22,000 jobs. At the core is industrial productivity enhancement, or IPE, using next-generation ICT, the biggest strength of the SK Group.
The conglomerate has also started a long-distance mobile treatment business and new medicine development.
The group began this year investment in new businesses of 1.3 trillion won (one billion dollars). Its growth engines overlap with Samsung and LGs new business lines, heralding a new round of cutthroat competition.
○ China is another domestic market
SK China, which controls the groups business in China, was also launched Wednesday. The subsidiary will be headed by Park Young-ho.
The energy division will be led by Park Sang-hoon; chemicals by Kim Yong-heum; ICT and new business by Seo Jin-woo; retail and logistics by Baek Seung-han; business support by Kim Tae-jin; and urban development by Xun Ziuzhang in the form of company-in-company (CIC).
Chey said in a video message to SK China, We need a pioneering perspective on China as another domestic market along with Koreas.
The group also has strategies in emerging markets in Latin America, the Middle East and Southeast Asia. In South America, it will focus on developing resources such as crude oil, natural gas and ore in line with LNG plants in Peru that were recently completed.
SK will participate in the growing Mideast market for infrastructure improvement given the abundance of oil dollars.