'Korea faces biggest geopolitical risks in two decades,' SK chief says

SK Group Chairman Chey Tae-won delivers a speech at SK Night held in Washington D.C., Thursday. Courtesy of SK Group

By Kwak Yeon-soo

SK Group Chairman Chey Tae-won said the company is looking for “alternative ways” forward in the face of Japan's export curbs on key materials for the production of semiconductors and display panels.

At the SK Night corporate event held in Washington on Thursday (local time), he told reporters that Japan's export curbs can hurt global supply chains.

“If Japan does not sell us goods, we need to get them from another place,” Chey said. “But for some key materials, we cannot replace them because otherwise global supply chains would be hit hard.”

Regarding Korea's localization efforts, Chey said he would seek alternatives rather than focusing solely on localization.

“I don't mean it as ruling out localization of high-tech materials. However, I believe we should open the door to a variety of partners, including Korean companies,” Chey said.

Chey also mentioned that the company will learn to cope with geopolitical risks.

“I've been leading the company for 20 years, but a geopolitical crisis has never made such a huge impact on the business environment,” he said. “I think geopolitical risk is going to be present for at least 30 more years.”

At SK Night, Chey announced SK Group's broad plan to expand its presence in the U.S.

“SK Group has invested $5 billion in the U.S. in the last three years, and we plan to invest an additional $10 billion in the country over the next three years,” he said.

In attendance were about 250 officials, including Deputy Secretary of the U.S. Department of Commerce Karen Kelly, Congressman Frank Lucas representing Oklahoma's Third Congressional District, Continental Resources CEO Harold Hamm and Sinclair Broadcast Group Chairman David Smith.

According to SK Group, Chey will attend the Global Citizen Award ceremony in New York on Sept. 22 and 23 and meet with Klaus Schwab, founder and executive chairman of the World Economic Forum, to discuss economic cooperation.