SK Group

SK
SK Group Headquarters
Type Public
Industry Conglomerate
Founded 1953
Headquarters Seoul, South Korea
Key people Chey Tae-won, Chairman & CEO
Products Energy & Chemicals,
Telecommunications,
Trading & Services,
Semiconductors, Construction,
Shipping
Revenue US$ 98.917 billion (2011)
Net income US$ 1.51 billion (2011)
Employees 70,000 (2012)
Website www.sk.com (http://www.sk.com)
Korean name
SK Group
From Wikipedia, the free encyclopedia
SK Group (Korean: SK, ) is the
third largest conglomerate (chaebol) in South Korea. The
SK Group is composed of 95 subsidiary and affiliate
companies that share the SK brand and culture. It
changed its name from Sunkyoung Group (Korean:
, Hanja : ) to SK Group in 1997. SK
Holdings ranked 57th in the 2013 Fortune Global 500.
[1]
SK Group has more than 70,000 employees who work
from 113 offices worldwide. While its largest businesses
are primarily involved in the chemical, petroleum and
energy industries, it also has South Korea's largest
wireless mobile phone service provider, SK Telecom, and
provides services in construction, shipping, marketing,
local telephone, high-speed Internet, and wireless
broadband service WiBro. SK has recently further
broadened its range of business to semiconductors,
merging Hynix into SK Hynix, the world's second largest
memory semiconductor manufacturer.
Contents
1 History
2 Core businesses
3 Restructuring
4 Member companies
5 Management system
6 See also
7 References
8 External links
History
As with many other chaebols, SK Group's chairmanship
was 'inherited' from father to son: from its founder the late
Chey John-hyun 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. In
May 2008, he was given a three-year suspended prison
sentence for a US$1.2 billion accounting fraud but was
pardoned in the same year.
[2]
Hangul SK/
Revised Romanization SK Geurup/Esukei Geurup
McCuneReischauer SK Krup/Esukei Krup
(former)
Hangul
Hanja
Revised Romanization Seongyeong Geurup
McCuneReischauer Snkyng Krup
SK Group Headquarters (base)
SK Group began when the current founders acquired
Sunkyung Textiles in 1953.
[3]
In 1958, the company
manufactured Korea's first polyester fiber on company
grounds. It established Sunkyung 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, Sunkyung Corporation received an international
trading company license from the Indian government.
[4]
In
December 1980 SK purchased privately run Korea National Oil,
making it Koreas fifth largest conglomerate.
[5]
In January 1988,
crude oil was imported for processing to Korea from Yemens Marib
oil field.
In June 1994, SK entered Koreas telecommunications business by
becoming Korea Mobile Telecommunication Service's largest
shareholder.
[6]
In January 1996, SK Telecom launched Koreas first
commercial CDMA cellular phone service in Incheon and Bucheon.
[7]
In 2002, SK Telecom successfully launched the worlds first
commercial CDMA 1X EV-DO technology, allowing it to offer 3G
telecommunications service.
[8][9]
In 2004, SK Telecom enabled
satellite DMB service by deploying the worlds first DMB satellite.
[10]
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
worlds first commercial 3.5-generation HSDPA service, featuring high-quality video telephony and data
transmission, and global roaming access.
[11]
In 1998, Management re-branded Sunkyong to SK.
[12]
In 1999, SK Chemicals developed third-generation
(non cross resistant) platinum-complex anti-cancer agent.
[13]
Also, by focusing its research and development
efforts on life sciences, SK Corporation developed YKP1358, a new drug candidate for schizophrenia, in
2003.
[14]

[15]
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.
[16]
SK Gas began developing resources overseas when it participated in two mining areas to the west of Russias
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.
[17]
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.
[18]
SK Building in Beijing CBD
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.
[19]

[20]
Under the re-organization, SKs main entity, SK Corporation, was split into an investment company, now SK
Holdings and an operating company, now SK Energy. The subsidiary companies that now operate under the
central SK Holdings umbrella include: SK Energy, SK Telecom, SK Networks, SKC, SK E&S, SK Shipping
and K Power
Core businesses
SKs core businesses are energy and telecommunications. Thirteen of SK companies are listed on the Korea
Stock Exchange: SK Holdings, SK Innovation, SK Telecom, SKC, SKC Solmics, SK Chemicals, SK C&C,
SK Networks, SK Gas, SK Communications, SK Broadband, SK Hynix and SK Securities. SK Telecoms
ADRs are also listed on the New York Stock Exchange.
Restructuring
SK restructured in 2007. Under the re-organization, SKs main entity, SK Corporation, was split into an
investment company, now named SK Holdings, and an operating company, now named SK Energy. SK Energy
produces batteries for CT&T and Hyundai electric vehicles.
Member companies
Some of the member companies that now operate under the SK
brand include SK E&C, SK Energy, SK Telecom, SK
Broadband, SK Networks, SK M&C, SKC, SK E&S, SK
Chemicals, SK Telesys, SK Shipping, SK Telink, SK Hynix,
SK C&C, Walkerhill and SK Wyverns.
SKC (Korean: SKC or , KRX: 011790
(http://eng.krx.co.kr/por_eng/m2/m2_1/m2_1_1/JHPENG02001_01.jsp?isu_cd=A011790)), headquartered in
Seocho-dong Seocho-gu Seoul, is the leading Korean company in chemical and film industry. SKC was
founded and established in 1976 as previous name of Sunkyung Chemicals Ltd (Korean: ()),
which was a successor of Sunkyung Textiles (Korean: ), the matrix for the SK Group nowadays.
SKC is one of the best polyester film makers in the world, supplying 10% of worldwide demands with its wide
applications including labels, LCDs, and solar cells. With its main plant and R&D center located in Suwon,
South Korea, it also operates large capacity of film plant (SKC Inc.) in Georgia, USA. SKC is now developing
into one of the leading companies dealing with a variety of eco-friendly, advanced materials for the future energy
and chemical industries such as biodegradable films, battery components, LEDs and photovoltaic materials.
SK Energy and SK Innovation (Korean: SK or and SK or
, KRX: 096770
(http://eng.krx.co.kr/por_eng/m2/m2_1/m2_1_1/JHPENG02001_01.jsp?isu_cd=A096770)) 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 Koreas first oil refiner. 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 Koreas
largest (and Asias 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.
[21][22]
SK Telecom (Korean: SK or , KRX: 017670
(http://eng.krx.co.kr/por_eng/m2/m2_1/m2_1_1/JHPENG02001_01.jsp?isu_cd=A017670)) is a South
Korean company specializing in offering mobile phone services, wired and wireless combined services. It is part
of the SK Group and has evolved from a first-generation analog cellular system operator to become the
company that launched the world's first commercial CDMA service. SK Telecom moved on to operate Korea's
first 2.5-G CDMA 2000 1X system, followed by the world's first commercial 3-G synchronized cellular system.
SK Telecom also launched the world's first 3.5-G HSDPA and SHUPA services.
SK E&C (Korean: SK or ) is a Korean construction company founded and established
in 1977 with a previous name of Sunkyung Construction (Korean: ), headquartered in Gwanhun-
dong Jongno-gu, Seoul. Its brands include SK View, SK Hub, and Apelbaum. The company's CEO is Casey
Choi. Industries: Oil & Gas, Petrochemical, Power, Environmental Protection, Industrial, Civil, Building,
Housing. Services:Feasibility Study, EPC Service, Project Management, Operations & Maintenance.
SK Holdings (Korean: SK or , KRX: 003600
(http://eng.krx.co.kr/por_eng/m2/m2_1/m2_1_1/JHPENG02001_01.jsp?isu_cd=A003600)) is the holding
company which resulted when SK Corporation was reorganized in July 1, 2007, into a holding company and
operating company, SK Holdings and SK Energy, respectively. SK Holdings is a part of the SK Group that
focuses on 3 core business interests, Energy & Chemicals, Telecommunications, and Trading & Services. The
SK Group is composed of 88 affiliate companies that share the SK brand and culture. In 2006, SK Group
recorded combined revenues of $75.8 billion, with exports contributing $26.4 billion of that total. SK continues
to expand its global presence, with more than 25,000 employees who work from 113 offices worldwide.
SK Telink (Korean: SK or ) is a subsidiary of SK Telecom, was
established in April 1998 as an international telephony service provider and has grown into a major player in the
international calling market. Under the brand name 00700, the company provides international call services.
Building on the commercial long-distance telephony and value-added services launched in 2005, the company
began offering Korean SMS in June 2006 in the U.S. The service allows subscribers to send and receive
Korean text messages in the U.S., as well as to and from Korea. From 2008 on, SK Telink also started e-
Learning service (giving Lectures to customers through the internet) and Foreign Language Test service
BULATS (http://www.bulats.org/). BULATS is being used as a main English speaking test for the most of SK
Group subsidiaries.
SK Marketing & Company (Korean: SK & or & ) 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 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. And the company is expanding its presence overseas. Industries in its product
portfolio include GIS, ITS, ERP, national security & defense, postal, e-government, e-learning, postal, and
other areas. They also specialize in mobile commerce products and SK C&C USA launched Google Wallet
services recently.
SK Wyverns (Korean: SK ) is one of the top-ranking baseball teams in the Korea Baseball
Organization.
Management system
SK's subsidiary companies all operate under the SK Management System (SKMS) which was developed,
articulated and enhanced by SKs 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 also
chaebol
Economy of South Korea
List of Korea-related topics
References
1. ^ Fortune 500 2009 List of the World largest Companies
(http://money.cnn.com/magazines/fortune/global500/2013/full_list/?iid=G500_sp_full)
2. ^ Ungson & Wong (2008). Global Strategic Management (http://books.google.com.sg/books?id=-
Mv7U69x9mcC&pg=PA462&lpg=PA462&dq=Chey+Tae-
won+fraud&source=bl&ots=k7if71nftl&sig=K1pLif66e_2PunSvRa3mTeIkEVA&hl=en&sa=X&ei=KfWnT-
_YPJDyrQf4reXUAQ&redir_esc=y#v=onepage&q=Chey%20Tae-won%20fraud&f=false). M.E. Sharpe.
3. ^ Mee Kim, Eun (1999). Big Business--Strong State. SUNY Press. p. 91. ISBN 0-7914-3209-2.
4. ^ "Diversifying into the Global Marketplace" (http://www.kinds.or.kr/main/search/searchcontent.php?
docid=03100201.20010830KTM0007). Korean Integrated News Database System. August 30, 2001.
5. ^ Chang, Se-jin (2003). Financial Crisis and Transformation of Korean Business Groups. Cambridge
University Press. p. 70. ISBN 0-521-81435-9.
6. ^ SKtelecom.com (http://www.sktelecom.com/eng/jsp/sktelecom/ourhistory/History.jsp)
7. ^ Kearney (Firm), Kearney, Inc, A. T (2000). Sustaining Corporate Growth: Harnessing Your Strategic
Strengths. CRC Press. p. 75. ISBN 1-57444-289-9.
8. ^ "South Korea the Worlds First 3G Network"
(http://www.3gnewsroom.com/3g_news/may_01/news_0709.shtml). 3GNewsroom.com. May 31, 2001.
9. ^ "SK Starts New Generation Mobile Phone Service" (http://www.kinds.or.kr/main/search/searchcontent.php?
docid=03100201.20020127KTM0032). Korean Integrated News Database System. January 27, 2002.
10. ^ "Questions, Expectations over DMB Service" (http://www.kois.go.kr/news/news/NewsView.asp?
serial_no=20040319010&part=107&SearchDay=). Korea.net. March 20, 2004.
11. ^ "SK Telecom Selects LGE, Nortel UMTS/HSDPA Wireless Broadband Technology" (http://www.umts-
forum.org/content/view/984/85/). Retrieved 2008-01-23.
12. ^ "Sunkyong Sets Sails as SK Group Today" (http://www.kinds.or.kr/main/search/searchcontent.php?
docid=03100101.19980105KRM0008). Retrieved 2008-01-23.
13. ^ "Koreas first locally developed drug gets KFDA approval"
(http://www.kinds.or.kr/main/search/searchcontent.php?docid=03100101.19990715KRM0040). Korean
Integrated News Database System. July 15, 1999.
14. ^ "SK gets nod to test Schizophrenia drug" (http://www.kinds.or.kr/main/search/searchcontent.php?
docid=03100101.20031007KRM0019). Korean Integrated News Database System. September 7, 2003.
15. ^ "SK Corporation Announces Another IND, Schizophrenia Drug YKP1358"
(http://www.highbeam.com/doc/1G1-108638092.html). High Beam Research. October 8, 2003.
16. ^ "SK Energy Acquires Oil Production Rights in Brazil" (http://korea.net/news/news/NewsView.asp?
serial_no=20070730019&part=107&SearchDay=). Korea.net. July 30, 2007.
17. ^ "SK Corp. buys Inchon to raise oil exports" (http://www.iht.com/articles/2005/09/04/bloomberg/sxsk.php).
Retrieved 2008-01-23.
18. ^ "Uhde will build SKC HPPO unit" (http://www.icis.com/Articles/2006/05/19/2014111/uhde-will-build-skc-
hppo-unit.html). Korea.net. May 22, 2006.
19. ^ "SK Corp to split as adopts holding co. structure"
(http://uk.reuters.com/article/oilRpt/idUKSEO31873720070411). Reuters. April 11, 2007. Retrieved 2008-01-
23.
20. ^ "SK Launches Holding Company System"
(http://web.archive.org/web/20070930011204/http://www.koreatimes.co.kr/www/news/biz/2007/07/123_5759
.html). Archived from the original (http://www.koreatimes.co.kr/www/news/biz/2007/07/123_5759.html) on
2007-09-30. Retrieved 2008-01-23.
21. ^ "China Aviation faces 3rd creditor lawsuit" (http://www.iht.com/articles/2005/02/23/bloomberg/sxsk.php).
International Herald Tribune. February 24, 2005.
22. ^ "New probe hits SK chief" (http://news.bbc.co.uk/1/hi/business/3128154.stm). BBC News. September 22,
2003.
External links
SK site SK (http://www.sk.com/)
Retrieved from "http://en.wikipedia.org/w/index.php?title=SK_Group&oldid=605998388"
Categories: SK Group Chaebol Companies of South Korea Electric vehicle battery manufacturers
South Korean brands Petrochemical companies Companies established in 1953
Companies based in Seoul
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