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| SK Group Chairman Chey Tae-won speaks during the opening ceremony of Shanghai Forum 2018 at Shanghai International Conference Center in China in this May 26, 2018, file photo. Korea Times file |
By Kwak Yeon-soo
SK Group is expanding its scope for business in China through a group-wide localization approach known as the "China Insider" strategy.
On Sunday, SK Chairman Chey Tae-won met with Lou Qinjian, the Communist Party Secretary of Jiangsu Province in eastern China to boost cooperation with the country.
"Chairman Chey was with three other conglomerate leaders from Samsung, LG and Hyundai Motor Group in the meeting. They exchanged remarks on strengthening pragmatic cooperation as to better benefit both the company and the province," an SK Group official said.
SK is one of the largest foreign investors in China, with the group investing billions of dollars with tax and administrative benefits from Beijing to operate semiconductor and battery factories both independently and through joint ventures.
In April, SK hynix completed the construction of its DRAM manufacturing plant in Wuxi, having invested 950 billion won ($836 million).
Meanwhile, SK Innovation is constructing its first plant in Changzhou.
Earlier this month, SK Innovation announced it will build a second battery manufacturing plant in China for electric vehicle batteries, investing 578 billion won ($488 million).
"We decided to construct another battery manufacturing plant in China following the Changzhou plant, aimed to seek mutual growth," an SK Innovation official said.
China is considered the most important market for the Korean conglomerate as the company is likely to benefit if China opens up its market to the Korean maker of chips and batteries.
The localization strategy is a market approach a company takes to address purchasing habits, customer behavior and overall cultural differences. The "China Insider" strategy include measures such as strengthening the portion and roles of business units in China among the group's main businesses.
On May 25, Chey attended Shanghai Forum 2019 held at Shanghai International Conference Center to deliver an opening speech on the importance of social value.
"Without sustainable society, there is no sustainable company. Therefore, companies, civic groups and governments should play a role of sharing wealth, resources and experiences with the society," Chey said.
"Attending the Shanghai Forum was a regular visit," the official said, acknowledging that Chey is committed to making business activities in China successful.
The latest Shanghai Forum was the 14th annual event and offered various sessions under the theme of "Asia Amidst Global Reshuffling: Challenges, Developments, and New Paradigms."
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