[THE INVESTOR] SK Group, South Korea's No. 3 conglomerate, has largely benefited from mergers and acquisitions pushed by the group’s holding firm, SK Holdings, in the chipmaking and biotech sectors, industry sources said on Feb. 27.
According to the sources, SK Materials, a semiconductor materials company taken over by SK Holdings, reported record-high earnings last year to serve as the crown jewel of the group. SK Materials said it reported 461.4 billion won (US$407.20 million) in sales and 154.1 billion won operating profit in 2016, 36.5 percent and 36.6 percent jumps, respectively, from a year earlier.
Energy and telecom conglomerate SK Group has been beefing up its presence in the chipmaking sector by taking over Hynix Semiconductor, currently SK hynix, in 2011. In 2015, the group also bought OCI Materials, a local manufacturer of special gases used in chipmaking, LCD and solar panels.
SK Holdings also bought a 100 percent stake in SK Biotech, a manufacturer of raw materials for medicine, last year. SK Holdings‘ unlisted subsidiary SK Biotech said its sales for 2016 breached the 100 billion-won mark for the first time since the company’s foundation. According to an official, the company‘s operating profits also jumped 20 percent on-year to reach 29.4 billion won.