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Corporate value

SK aims to raise enterprise value to over $120 billion by 2025

Mar 30, 2021 (Gmt+09:00)

SK Inc. CEO Jang Dong-hyun speaks at the AGM.
SK Inc. CEO Jang Dong-hyun speaks at the AGM.

SK Inc., formerly known as SK Holdings Co., has vowed to raise its enterprise value to some 140 trillion won ($123 billion) by 2025 by focusing its resources on four growth sectors.

The holding and investment company of SK Group, South Korea’s third-largest conglomerate, on Monday presented its long-term growth vision, under which it hopes to transform into a “value investor.”

“We are aiming to become a value investor to make SK a company that trades at 2 million won a share by 2025,” Chief Executive Jang Dong-hyun said during its annual general meeting of shareholders.

Shares of SK were trading up 5.2% at 282,500 won on the main bourse in early trade on Tuesday.

Its goal of achieving a market capitalization of 140 trillion won represents more than eight times its current share price. Samsung Electronics Co. is the only listed company in Korea that has more than 140 trillion won in market cap.

CORPORATE NAME CHANGE

As part of its efforts to become a value investor, the company changed its corporate name to SK Inc. from SK Holdings at the shareholders' meeting.

To enhance its corporate value, SK said it will concentrate its investment on four strategic sectors – new materials, bio, green and digital.

SK Group Chairman Chey Tae-won.
SK Group Chairman Chey Tae-won.

“We have achieved an annual return of 50% for the past five years from our investment in the advanced materials business, including electric-car battery parts and copper foils. We want to further expand in these areas through partnerships with global companies,” said the CEO.

In the eco-friendly sector, he said the company will expand its hydrogen business to generate 2.5 trillion won in revenue by 2025 by establishing a hydrogen value chain from production to distribution.

In the digital segment, SK plans to widen collaboration with global tech companies specialized in artificial intelligence.

Last week, SK said it will give outside directors more authority to get involved in the selection and dismissal of its chief executive and independent board members, alongside reviews of investment proposals based on environmental, social and governance (ESG) standards.

Write to Jae-Kwang Ahn at ahnjk@hankyung.com

In-Soo Nam edited this article.

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