EXCLUSIVE SK eyeing acquisition of parts suppliers in Japan
SK Materials plant in Yeongju, North Gyeongsang Province / Courtesy of SK Materials
By Kim Yoo-chul
SK Group, one of Korea's top business conglomerates, is eyeing the acquisition of component and parts suppliers in Japan, according to sources directly involved with the issue, Tuesday.
They said SKC, SK Inc., SK Siltron and SK Materials will invest a total of around 400 billion won into SK Japan Investment, which is an investment arm of SK Group. Each affiliate will invest around 100 billion.
“The collective investment is primarily aimed at exploring the best possible chances of strengthening the group's core strengths in industrial materials and components by acquiring firms in Japan, if necessary,” a high-ranking industry executive told The Korea Times by telephone, adding SK is on track to find strategic and financial investors to establish a “matching fund” in Japan to hedge its investment risk and raise its bar in acquisitions.
Regarding the specifics of its possible Japanese investment partners, SK is interested in forming partnerships with major Japanese banks including Mizuho, according to the executive. SK is prepared to share key details of the group's component affiliates, if needed, with the companies it will be eyeing.
The group's top management is said to have approached SK hynix to join the initiative. However, SK hynix, which is also the world's No. 2 chipmaker, decided not to take part. After the stock market closed on Monday, SK Materials told the Korea Exchange that it acquired 1 million shares in SK Japan Investment for 103 billion won, raising its stake in the unit to 25 percent.
After acquiring SK hynix in 2012, SK Group has been focusing on expanding the group's presence in materials- and parts-related businesses. Those efforts gained momentum after Japan removed South Korea from its list of “preferred trading partners” in protest against the South's highest local court ruling that ordered certain Japanese companies to compensate the surviving South Korean victims of wartime forced labor.