SK, Geely to form ties on hydrogen business

This promotional photo shows a hydrogen filling station operated by Plug Power, a U.S. electric engineering company in which SK Holdings made an equity investment. / Courtesy of SK Holdings

Shinsegae to acquire SK Wyverns

By Nam Hyun-woo

SK Group will form a hydrogen business partnership with Geely Auto Group of China, which is thought to be related to projects for fuel-cell electric vehicles (FCEVs) using the gas, according to industry officials, Monday.

SK Holdings, the group's holding and investment company, said it was "in talks with Geely over a partnership in various businesses."

Though SK did not clarify which businesses it will pursue with the Chinese automotive titan, sources said they are planning to raise a mutual fund of hundreds of billions of won, which will be used to invest in the development of eco-friendly vehicles such as hydrogen FCEVs. Also, establishing a joint venture between the two groups is being considered as an option, they said.

If the partnership is aimed at hydrogen businesses, SK Group's efforts to improve its presence in this field will pick up momentum. Last year, the group formed a hydrogen business team comprised of energy specialists from group affiliates, and announced those companies will play different roles in a hydrogen supply chain.

SK Holdings acquired a 9.9 percent stake in Plug Power of the U.S. for 1.6 trillion won ($1.45 billion) as part of this move. Plug Power is an electrical equipment company having technologies related to vehicle fuel cells, electrolysis and many others for utilizing hydrogen as an energy source.

Geely has also been accelerating its exploration into various new growth industries. Recently, it announced a rechargeable battery joint venture with Farasis of China, with a plan to enhance its capabilities in eco-friendly vehicles. The group also entered into a partnership with Baidu earlier this month to build autonomous electric vehicles.

Jamie Romak of SK Wyverns / Yonhap

E-mart Wyverns?

Separately, SK Group is close to selling its baseball club, SK Wyverns, to retail giant Shinsegae Group, sources said Monday. The two sides are expected to sign an MOU on selling the club today.

Both SK Telecom, which owns the club, and Shinsegae Group released the same statement that acknowledged they were "in talks over the progress of Korean sports including professional baseball," dropping hints at an imminent deal.

If Shinsegae Group acquires SK Wyverns, its discount chain E-mart is expected to run the club. The deal's value is yet to be disclosed but is expected to be around 200 billion won.

SK Wyverns was established by SK Telecom in 2000 as a successor to the now-defunct Ssangbangwool Raiders. The club has won the Korean Series four times.

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