South Korea’s third largest chaebol: SK Holdings Co., Ltd.

SK Holdings Co., Ltd. (KRX:034730) was founded in 1991 and is headquartered in Seoul, South Korea. It has 52,377 full-time employees. It is the third largest chaebol in South Korea (the five largest chaebols in South Korea are: Samsung , Hyundai , LG , Daewoo and SK ).

SK Holdings Co

Encyclopedia of SK Holdings Co., Ltd.:

SK’s main business is in the energy and petrochemical fields, and its subsidiary SK Energy is Korea’s largest integrated energy and chemical company. Its Ulsan refinery has an annual crude oil processing capacity of 42 million tons, and has maintained the largest single-plant refinery status in the world for many years. SK also operates electronic communications. Its subsidiary SK Telecom is the largest mobile communications operator in South Korea, with a market share of more than 50% in South Korea, and is also one of the top ten cellular mobile communications operators in the world. Subsidiary SK Hynix is ​​the main force of SK Group’s involvement in the semiconductor industry. Hynix’s market share in the DRAM market is second only to Samsung Electronics in the world .

SK Holdings Co., Ltd. History:

Early history

The history of the SK Group can be traced back to the textile factory “Sun Kyung Fabrics” (now SK Networks) purchased by the Korean government from the Korean government after the end of the Korean War on April 8, 1953. The original Xianjing fabric was a joint venture between North Korea “Xianman Silk” and Tokyo “Kyoto Fabric”. Choi Jonggeon entered Sunkyo Textiles in 1944 as a trainee technician. In 1950, Xianjing factory was destroyed, Xianjing employees rebuilt the new Xianjing fabric under his leadership, and Cui Zhongjian became the chairman.

After the Korean War, the South Korean government sold a large number of former Japanese companies to private individuals. So Cui Zhongjian bought Xianjing Fabrics, and after fulfilling the “property vesting” procedures, he formally took over Xianjing Fabrics on April 8, 1953. At that time, there were only a few textile machines for Xianjing Textiles. Ten years later, Sun Kyung has developed into a Korean textile giant with more than a thousand machines, and has begun to export fiber products to the international market. In August 1962, Sunkyo Industry Co., Ltd. was formally established. In 1969, Xianjing began to produce polyester raw silk, completing the leap from fabric to raw silk. Sun Kyung is the first Korean producer of acetate and polyester fibers.

The first industrial restructuring: entering the petrochemical industry

Sun Kyung established Sun Kyung Petroleum Co., Ltd. in July 1973 during the third five-year economic development plan that South Korea vigorously promoted the development of the heavy chemical industry. After Cui Zhongjian’s death in November 1973, his younger brother Cui Zhongxian succeeded him as the chairman of Sunjing Group. Cui Zhongxian put forward the declaration of the second entrepreneurship, and declared that “from petroleum to fiber”.

In 1980, when South Korea was pursuing the “national retreat and the people advance” policy, Sun Kyung acquired South Korean state-owned enterprise Daehan Petroleum and became South Korea’s fifth largest consortium. In December of the same year, Sunkyo acquired Heungkuk Trading Co. (now SK Energy Sales). In 1982 and 1985, the Korea Petroleum Corporation Shipping and the Korea Petroleum Corporation Natural Gas were established respectively. In June 1991, with the completion of large-scale petrochemical projects such as the decomposition and desulfurization of aromatics, ethylene, and heavy oil, Xianjing realized the vertical serialization of “from petroleum to fiber”. In order to ensure a stable supply of crude oil, Sun Kyung began to develop oil fields abroad in 1983, making South Korea one of the ranks of oil-producing countries. So far, SK Energy has been exploiting oil in 24 mining areas in 14 countries around the world.

The second industrial restructuring: entering the communications industry

In the middle and late 1960s, in order to disperse the industrial risks of large-scale investment in the energy and chemical fields, Xianjing Group, after repeated research and demonstration, designated the communications industry, which was still unfamiliar to people at the time, as the key development industry in the 21st century. In order to enter the communications industry, Xianjing established a local American corporation in October 1986. In 1988, Sun Kyung took the lead in launching mobile phone business services in the world. After acquiring Korea Communications in June 1994, he became the largest communications network provider in Korea in one fell swoop. Sun Kyung created the era of Korea’s first generation of analog mobile communications and opened the history of Korean mobile communications services. In January 1996, Xianjing successfully realized the commercialization of CDMA for the first time in the world, and successfully completed the construction of the second-generation mobile communication, which established its leading position in the world communication market and was known as the “father of CDMA”. . In 1997, Xianjing Group developed the IMF-2000 test platform for the third time in the world, which used wireless communication to provide multimedia services for voice, spectral data and image transmission, and began to provide multimedia online services (Netsgo) connecting the Internet and PC communications. , Realizes the docking of mobile phones and wireless paging, thus forming a multimedia integrated service system with mutual compatibility and docking of Internet-PC communication-mobile phone-wireless paging. In 1998, SK-telink was established, which opened the mobile communication international telephone service with the identification code “00700”, and established SK-teletch, which produces mobile communication and multimedia terminal hardware products.

In 1998, Sunking Group introduced a new corporate creative system. According to international standards, Sunking’s English “SUN-KYUNG” initials S and K were used as the group name, namely “SK Group”. In August 1998, Choi Zhongxian died suddenly. The eldest son of SK Group founder Choi Jonggeon and the then president of SK Chemical Choi Yinyuan Export organized a family meeting. At this family meeting, Cui Zhongxian’s eldest son Cui Taiyuan was elected as the chairman of the group, in charge of the family shares, and delegated the management rights of the group to professional managers. According to the decision of the family meeting, Cui Tae-won supported Sun Jicheng, the head of the SK Group’s management and planning office, as the chairman of the SK Group, and established a “dual chairperson” system. In September 2000, SK Group launched the first downloadable wireless Internet service in the world, and then launched the world’s first mobile multimedia service (VOD/AOD) in May 2001. In January 2002, Choi Jae-won, the second son of Choi Jong-hyun, acquired the third-largest competitor, New Century Communications, through the “share circuit break-through method” of exchanging shares of SK Electronics and Pohang Iron and Steel, and conducted a relatively mature integration of the market. In the same year, SK opened the 800MHz broadband synchronous IMT-20003G commercial service in Seoul, which was the first time in the world. In 2004, SK Telecom successfully launched the DMB satellite. In 2006, SK opened the world’s first HSDPA commercial.

In 2003, SK Global (trading company) 180 billion won huge amount of false accounts was exposed. On June 13 of the same year, a Korean court ruled that SK Chairman Choi Tae-won was sentenced to three years in prison for suspected behind-the-scenes transactions and commercial fraud. Sun Jicheng was sentenced to 3 years in prison, suspended for 4 years. In addition, eight other senior SK employees, including the general manager of SK Group Jin Changgeun, were also sentenced to 2-4 years in prison and suspended for 3-4 years. However, the impact of this incident on SK is not as great as people think. With the support of a strong corporate culture, the SK Group regards life sciences as the next-generation core industry. SK Group has always had a rise in the pharmaceutical field, and Sun Kyung Pharmaceutical under SK is one of the earliest pharmaceutical companies in Korea. In 1999, SK Group developed a new Korean medicine No. 1 bowl compound anti-cancer preparation. In addition, the SK Group has also developed a new drug Ginexin extracted from Ginkgo biloba to improve blood circulation and a non-toxic pain reliever Tramadol. In 2000, SK Group established the Life Division in Shanghai. In November 2002, it established the SK Life Science Research Center in Shanghai Zhangjiang Hi-Tech Park. In 2005, SK Group acquired Incheon Oil, the fifth largest petroleum refining company in South Korea. In 2012, SK acquired Hynix, a well-known semiconductor manufacturer. In September 2017, SK Hynix successfully acquired Japan’s Toshiba chip business through the “Korea-US-Japan Alliance”, becoming the world’s second largest company in the flash memory field after Samsung Electronics.

A subsidiary of SK Group

There are 92 companies under the SK Group. Energy chemistry and information communication are the two pillar industries of the SK Group.

1. Energy Chemistry

  • SK Innovation (formerly SK Energy)
  • SK Comprehensive Chemistry
  • SK lubricants
  • SKC
  • SK Chemistry
  • SK plastic
  • SK gas
  • SK E&S

2. Information and Communication

  • SK Telecom
  • SK Broadband
  • SK communication
  • SK Telink
  • SK Telesys
  • SK Co., Ltd. C&C

3. Trade

SK Networks, SK Global

4. Finance

SK Securities

Five, logistics

SK Shipping

Six, construction

SK Construction

7. Sports

  • SK Flying Dragon (baseball)
  • Jeju United (Football)
  • Seoul SK Knights (basketball)
  • SK Telecom T1 (e-sports)

SK Holdings Co., Ltd. investment:

A company listed on the KRX Exchange in South Korea is not listed in the United States and has not issued ADRs in the United States.

However, the good news is that SK Telecom, one of SK Holdings’ main assets, is listed on the New York Stock Exchange under the stock code: SKM .

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