According to the Korea Times, SK Group said on Tuesday that the group is preparing to expand its investment in Southeast Asia through its subsidiary SK Southeast Asia Investment. This will be the group's third foray into this booming market.
SK E & S, a natural gas and power supply company under SK Group, held a board meeting on January 30 and decided to spend 100 million US dollars to acquire 100 million shares of SK South East Asia Investment, a subsidiary of SK Group. SK Group's other subsidiaries, SK Holdings, SK Innovation, SK Telecom and SK Hynix, are expected to contribute USD 100 million each, with a total investment of USD 500 million.
Regarding the plan, SK Group confirmed that it is trying to find investment opportunities in Southeast Asia, and its subsidiary is currently trying to raise funds, but has not yet made a final decision. SK E & S officially announced its investment plan in Southeast Asia after members of the board approved the investment plan, but other subsidiaries of the SK Group have not yet held board meetings.
It remains to be seen where these funds will be injected. When the group invested in Vietnamese companies, it called the equity acquisition a "strategic partnership" and noted that it was seeking to foster new business opportunities, not just management rights.
In August 2018, five subsidiaries including SK Holdings, SK Innovation, SK Telecom, SK Hynix and SK E & S established a joint entity, SK South East Asia Investment. The company is headquartered in Singapore and specializes in investing in Southeast Asia.
Through its investment subsidiaries, the SK Group seeks to expand business opportunities in the fast-growing Southeast Asian market. Since its establishment, the investment platform has doubled its investment in Vingroup and Masan Group, Vietnam's major business groups, in 2018 and 2019.