Aggressive M&A in Chey Tae-won style, sales up while situation went better
| comja77@ | 2018-06-01 15:26:28

The SK Group, which converted into a holding company in 2015, is aggressively expanding its business by 12% in the number of consolidated subsidiaries in the three years ahead. This is the outcome of aggressive merger and acquisition and new business entry after Chey Tae-won SK Group chairman`s return.

SK Group plans to invest KRW 27.5 trillion this year to expand its business aggressively in semiconductors, ICT (information and communication technology), autonomous vehicles, electric car battery and bio.

According to the industry and Financial Supervisory Service on May 31, the number of consolidated subsidiaries of SK Group, a holding company of SK Group, reached 311, up 12% from the end of 2015 immediately after the start of the holding company.

The SK Group is included in the consolidated subsidiaries of domestic and overseas subsidiaries and manufacturing subsidiaries, where SK Holdings is a holding company. This means that the number of SK Group affiliates has increased.

Meanwhile, earnings have also been rising rapidly every year due to the expansion of the market. On a consolidated basis, SK`s sales in the first quarter grew 6.7 % year-on-year to KRW 24.651 trillion. Sales at the end of last year were KRW 93.296 trillion, up 12.8 % year on year.

This is due to aggressive M & A and investment by each affiliate, mainly by holding companies. SK bought LG Siltron at the time last year and OCI Materials at the time of 2016, which resulted in a yearly M & A deal. In addition, the company has invested in various areas, including domestic and overseas, by investing KRW 39.6 billion in TTURO, the No. 1 car sharing company in the United States (P2P), and KRW 110 billion in the North American shale gas transportation and processing company, Eureka. . Earlier this year, he participated as a financial investor with DoCoMo, China, and Softbank, Japan, to attract about USD 2 billion worth of investment in Grab.

On the other hand, SK Group plans to continue this move. He met with Kim Dong-yeon, the finance minister in March, and announced plans to invest 80 trillion won over the next three years and plan to invest KRW 27.5 trillion this year. The company has shown its commitment to create innovative growth and job creation by concentrating its investment in five major new businesses, including semiconductors, materials, energy, next-generation information and communication technology (ICT), electric vehicles and autonomous vehicles, and future mobility and health care. Accordingly, SK Innovation, SK Hynix and SK Telecom are expected to pursue aggressive M & A activities with support from Chey.

A business expert said, "SK Group will have many changes and business expansion for the next several years based on Chey`s management strategy, which seeks to bring about fundamental change in core business and create social value."

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