SK Group's rebalancing efforts, initiated in 2024, have entered their third year, showing significant results this year with increased operating profits and reduced debt ratios. While the group's overall size has slightly decreased due to the divestment of less profitable businesses, it aims to accelerate its growth into a leading global conglomerate, comparable to big tech firms, by leveraging synergies in semiconductors, artificial intelligence (AI), energy, and telecommunications.
On May 17, SK Holdings, the group's holding company, reported a consolidated revenue of 36.75 trillion won and an operating profit of 3.67 trillion won for the first quarter of this year, marking increases of 19% and 760%, respectively, compared to the previous year.
The group's borrowing decreased from 63.23 trillion won to 49.55 trillion won, a reduction of about 21%, leading to a drop in the debt ratio from 172.8% to 135.7%.
Following concerns raised by Chairman Choi Tae-won about a potential 'sudden death' scenario for the company during a CEO seminar in late 2023, Choi Chang-won, who took office around the same time, has aggressively pursued business restructuring.
Choi emphasized that while the focus has been on restructuring and asset efficiency, it is now time to enhance core competitiveness through operational improvements and AI-driven business innovation.
Operational improvements aim to optimize key performance indicators (KPIs) such as profit margins and customer satisfaction, maximizing the financial strength and core competitiveness of existing businesses to navigate uncertainties in the market. This strategy has been developed collaboratively by the core management team of SK Group, led by Choi Tae-won and Choi Chang-won.
According to a report by Korea Credit Rating, SK Group has achieved approximately 13 trillion won in asset efficiency through restructuring over the past two years. The number of affiliates has decreased from 219 in 2024 to 151 as of May 2026.
SK Holdings sold an 85% stake in SK Specialty to Hahn & Company for 2.63 trillion won and disposed of a 14% stake in SK Biopharmaceuticals for 1.25 trillion won. SK Innovation raised over 1 trillion won by selling the Boryeong LNG Terminal and the site of the Cowon Energy Service headquarters, actions taken to secure short-term liquidity amid growing global business uncertainties.
The company is also consolidating overlapping businesses. To enhance synergies in its energy sector, SK Innovation is pursuing a merger with SK E&S, which operates in the LNG sector, integrating its refining, petrochemical, and battery businesses. This move aims to improve cost structures for SK On and secure financial strength for future growth.
Efforts to strengthen the competitiveness of the semiconductor back-end business, which supports SK Hynix, are also underway. SK Eco Plant has incorporated four semiconductor material companies—Essencore, SK Airplus, SK Trichem, and SK Materials JNC—into its subsidiaries.
In the telecommunications sector, SK Telecom, a leader in the industry, is accelerating its AI data center business in collaboration with its affiliate SK Broadband. For instance, the Ulsan AI data center, being built in partnership with tech giant Amazon, is attracting interest from global private equity firms such as KKR and IMM Investment-Stonebridge Capital, which are considering multi-billion won investments.
* This article has been translated by AI.
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