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New SK Corporation to Debut in August
Merger
New SK Corporation to Debut in August
  • By Jung Suk-yee
  • May 6, 2015, 05:00
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The SK Corporation, which will launch anew in August after a merger between SK Corporation and SK C&C, is going to maintain a two-company system for a while. This is because the two companies are quite different in nature, and the purpose of the merger is so-called chemical rather than physical consolidation.

According to industry sources, SK Corporation and SK C&C are planning to put together a team for post-merger integration into operation before August. The role of the team will be to control the process of the merger without causing a significant change to the current corporate structures of the two companies.

The new corporation is slated to become an operating holding company with cash assets of approximately 1.3 trillion won (US$1.2 billion). SK C&C’s cash assets that it can procure a year have been limited to less than 300 billion won (US$277 million), which has hindered aggressive M&As and overseas market penetration.

“After the merger, more resources will be invested for the globalization of SK C&C’s business and exploration of new growth opportunities,” SK explained, adding, “We expect the merger to be a consolidation between SK C&C’s business capabilities and SK Corporation’s human and physical resources and business portfolio management skills.”

Specifically, SK Corporation is planning to focus on IT services, used car sales, fintech, cloud computing, big data, and the IoT. The new corporation’s total assets are estimated at 13 trillion won (US$12 billion) at the least.