Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
SK Networks aims to enhance corporate value via global investment, shareholder value
Choi Sung-hwan, SK Networks general executive director, speaks to global investors at the Global Annual General Meeting held at the Walkerhill Hotel Seoul, Wednesday. Courtesy of SK Networks
By Kim Hyun-bin
By Kim Hyun-bin
SK Networks is accelerating its transformation into a business-oriented investment company with the eldest son of former chairman Choi Shin-won, Choi Sung-hwan, leading efforts as general executive director. Choi personally gathered global investors, held an investment business briefing session and declared the expansion of global innovation and investments, according to the company, Wednesday.
"Based on our successful investment experience in Silicon Valley, we will serve as a gatekeeper for global innovation. We will use our influence to address social and economic inequalities of various kinds that exist around the world," Choi said during the Global Annual General Meeting held at the Walkerhill Hotel Seoul, Wednesday.
SK Networks is investing in technology-based startups to better transform into a business-oriented investment company. About 150 domestic and foreign investment industry officials attended the briefing that was held for the first time this year.
SK Networks started investing in early-stage companies in 2018. The following year, CEO Choi joined and set the direction for the company, transforming it into a business-oriented investment company. Silicon Valley, the heart of innovation has been selected as a focus investment target region.
While working at SK Corp., President Choi was in charge of the group's first U.S. startup investment. Using this experience, the company set up its own network ― the Hicosystem. It consists of 220 people including founders, investors, technology, economics and legal experts.
Based on this, SK Networks established a local corp., Hico Capital in Silicon Valley, in 2020 and has continued to make full-fledged investments in over 20 companies totaling $176 million.
"In the early stages of investing in the U.S., we mainly invested in global top-tier funds to utilize investment verification channels, which led to direct investment. Currently, as the investment management system is in place, direct investment is increasing,” an SK Networks official said.
SK Networks is focusing on digital transformation, Web3 and sustainability investments including Standard Cognition, an AI-based unmanned payment system developer, Savanto, a tractor autonomous driving solution company and MycoWorks, which produces eco-friendly alternative leather from mushroom mycelium. The initial rate of return is also higher than that of global standard funds, the company said.
“Investment is a function that all companies must have to maintain sustainability. SK Networks' global investment business will play a very important role in linking existing and future businesses and increasing the value of the company," Lee Ho-jeong, general president at SK Networks said.