Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Waste management business loses appeal among Korean conglomerates
A wastewater treatment plant built by GS Inima in Lagares, Spain / Courtesy of GS E&C
By Park Jae-hyuk
A growing number of major Korean conglomerates are withdrawing from the waste management business, once highly sought after for its alignment with the investing principles emphasizing environmental, social and corporate governance (ESG) factors.
As ESG has received less attention in recent years, more companies have shifted their focus toward their core affiliates to adapt to challenging market conditions.
SK Ecoplant announced Aug. 20 that it signed an agreement with KKR to sell its entire holdings in Renewus, Renewone and Renewenergy Chungbuk to the U.S. private equity firm for 1.78 trillion won ($1.3 billion).
Renewus, acquired by the construction firm in 2020, specializes in wastewater treatment. Renewone was formed through the mergers of various waste incineration and landfill companies that SK Ecoplant acquired between 2021 and 2022. Renewenergy Chungbuk operates a waste incineration plant in Cheongju, North Chungcheong Province.
Although SK Ecoplant changed its name from SK E&C in 2021 to signal its ambition to be an environmental company, it decided to divest the three unprofitable waste management subsidiaries in line with SK Group’s ongoing business portfolio rebalancing.
SK Group is also reportedly seeking to sell Daekyung Oil & Transportation, which it acquired in 2023 to produce biofuel by leveraging the company’s expertise in recycling animal and vegetable oils and fats. Last year, construction of SK Geo Centric’s plastic recycling plant in Ulsan was delayed, amid declining profits at the chemical materials unit.
“Through this recent rebalancing, we will strengthen our financial health and reinforce our businesses in semiconductors and artificial intelligence,” an SK Ecoplant official said.
GS E&C sold its entire stake in GS Inima, a Spanish wastewater treatment company, to the Abu Dhabi National Energy Company for $1.2 billion. The deal, announced Aug. 22, comes 14 years after GS E&C acquired Inima in 2011.
“This is part of our commitment to focusing investments on our core businesses to achieve sustainable growth,” a GS E&C official said.
IS Dongseo is searching for buyers for Koentec and Corentech, waste management subsidiaries that the construction-to-concrete conglomerate acquired between 2020 and 2022 in partnership with E&F Private Equity.