Tuesday, August 18, 2015
SK Group plans to invest a whopping 46 trillion won ($38.9 billion) to build two semiconductor plants in Korea. It also plans to secure extra money to bolster the competitiveness of its energy, chemical and information technology (IT) businesses. The nation's third-biggest conglomerate on Monday unveiled a broad picture of its investment plan that was designed to restore its growth momentum and help revitalize the nation's sagging economy. The company didn't specify a period of time during which the money will be invested. SK officials said details of the plan will be drawn in the near future. The investment plan came three days after its chairman, Chey Tae-won, was released from prison on a presidential pardon on Friday, ending his imprisonment of two years and seven months, during which SK was unable to make decisions on big-budget projects. President Park Geun-hye pardoned Chey, along with 13 other business leaders, believing their return to office will help expedite domestic investment and job creation. "We have decided to make a bigger-than-planned investment at an earlier-than-scheduled point of time at the request of the chairman, which will contribute to the nation's economic development," SK said in a statement. "We will consider spending 46 trillion won building two semiconductor plants. We will make extra investment for the group's energy, chemical and IT affiliates." The company said it will come up with "innovative ways" of creating jobs for young adults and expanding its social contribution. The plan was discussed during a Monday meeting of CEOs of SK's 17 affiliates, which was presided over by the chairman. Attendees included Kim Chang-geun, chairman of Supex the group's top decision-making body; SK Innovation CEO Chung Chul-khil; SK Telecom CEO Jang Dong-hyun; and SK Holdings CEO Cho Dae-sik. "Making earlier and bigger investment may be the primary way big companies can take to help the nation's economic revitalization," Chairman Chey was quoted as saying in the statement. He also pledged to make greater efforts to nurture startups and create jobs for young adults. The chairman ordered CEOs to make thorough preparations to ensure that the investment plan will be implemented smoothly, according to the statement. Industry observers said SK's key affiliates are expected to announce their own investment plans sooner or later. As known through the plan, they said, SK hynix, the world's second biggest chipmaker, will lead the group-wide investment drive, while other key affiliates such as SK Innovation, SK Telecom would take follow-up measures.
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