SK Group will set up an investment fund jointly with Hillhouse Capital, China's largest investment company, to invest in promising projects in China.
SK China’s board recently approved a plan to establish a joint investment fund worth one trillion won with Hillhouse Capital. This is the second time that SK Group establishes a large-scale investment fund jointly with an overseas investor, following Legend Capital launched last year.
The joint investment fund will be made up of 100 billion won from SK China and 900 billion won from Hillhouse. The fund will invest in SK Group's new businesses in China. Key investment targets include venture companies and new startups that can create synergies with SK Group affiliates such as SK Hynix.
Hillhouse is one of the largest investment firms in China. The company invested in China's largest Internet company Tencent and social commerce company Meituan. In Korea, Hillhouse invested in Wooa Bros, an operator of food delivery services, and Market Kurly, a company famous for food delivery in early morning.
Hillhouse began with an equity capital of US$20 million in 2005. It has grown into a large company with US$50 billion in capital and branches in New York and Hong Kong.