SK Restructuring
The SK Group is about to launch a large-scale restructuring program in its subsidiaries including SK Innovation and SK Telecom. Experts say that this is to slim down the organization and prepare a breakthrough for future growth before the decision is made about the government pardon of Chairman Choi Tae-won.
The subsidiaries of the SK Group, which include SK Innovation, SK Telecom, SK Hynix, SK Chemical, SK C&C, SK E&C, SK Gas, and SK Networks recorded combined estimated operating profits of 3.88 trillion won (US$3.64 billion) in the first half of this year, which is slightly higher than a year earlier.
However, things are far from bright in reality. The total operating profits of all other subsidiaries combined are less than that of SK Hynix at 2.1411 trillion won (US$2.0137 billion).
This has to do with the restructuring plan. SK Innovation earned 175.4 billion won (US$164.9 million) in business profits in the first half, which is just one-sixth of the amount recorded in the first half of last year. SK Telecom’s profits dropped by 16 percentage points to 798.5 billion won (US$750.7 million), too.