SK GROUP
OVERVIEW
2018
THE BEGINNING From Textiles
TEXTILES TO
PETROLEUM Vertical Integration
TELECOMMUNI-
CATIONS Expansion to ICT
SEMICONDUCTOR New Growth
SUSTAINABLE
INNOVATION Challenge and
Innovation
1953 Founded as Sunkyoung
Textiles
1969 Began polyester fabrication
1978 First Korean company to
Develop polyester films
1980 Privatization of Korean Oil
Corp-Yukong (now SK Energy)
1988 Began production from
Overseas oil fields (Yemen)
1991 Completed vertical integration
in energy business
1994 Acquisition of Korea Mobile
(now SK Telecom)
1996 World‟s first CDMA
2004 World‟s first satellite DMB
2007 Reorganized into a holding
Company
2012 Acquisition of Hynix
(now SK Hynix)
2013 Exports reached U$ 60
Billion (over 10% of Total
Korean exports)
2015 Launched integrated
holding company
by merging with the
SK C&C
2016 Expansion into
semiconductor materials
business
2017 Global expansion of
pharmaceutical facilities
04
Total Sales (Unit: U$ Billion)
EBIT (Unit: U$ Billion)
2013 2014 2015 2016
2013 2014 2015 2016
13
9.9
14
5.7
11
6.4
10
2.5
4.6
6.5
8.6
6.5
05
FY2017 Revenue
U$ 121.6 Billion
45%
37%
17%
ENERGY &
CHEMICALS
INFORMATION,
TELECOMMUNICATION
& SEMICONDUCTOR
LOGISTICS &
SERVICE
2017
2017
121.6
17.2
Energy &
Chemicals
Information,
Telecommunication &
Semiconductor
Logistics &
Service
55.8 Billion
U$
44.6 Billion
U$
21.3 Billion
U$
E&P, Future Energy, R&D
Oil Refining & Marketing
Petrochemicals
Lubricant
Petroleum, Petrochemical Products
Trading of Crude Oil
Fine Chemicals, Life Science
Chemical & Electronic Materials
Holding co. of LNG Distributors, Power Generation
LPG Marketing & Trading
New Medicine Development
CMO, APT, AI
Special Gas for Semiconductors
IT Solutions & Consulting
Mobile Service Provider
Semiconductor Memories
Platform Service
Wired/Wireless Telecom, Broadcasting Service
Mobile Platform
Repeater, Transmission, LTE
International Call & VoIP Service
Internet Portal, SNS/Messaging
Rental Service
06
Engineering, Plant Construction
Energy Distribution, Trade, Consumer Goods Business
Marine Transportation
Ranked Ist in Oil & Gas Sector and Telecommunication Sector
Telecommunication Sector
Oil & Gas Sector
07
2rd Largest in Market Capitalization (U$ 118.5 Bn)*
(Market Capitalization as of the end of 2017, U$ Billion)
48
0.0
11
8.5
10
8.6
95
.4
27
.6
99
.8
Global Fortune 500 | As of 2017 Global Revenue | As of 2017
Global Networks | As of 2017
Global Assets | As of 2017
U$ 63.8 Billion
U$ 27.6 Billion
95th
1st 2nd 3rd 9th 81st 95th 144th
270 Affiliates/Branches
08
09
* 16 subsidiaries as the members of SK SUPEX Council
SUPEX Council leads the
“Independent yet United”
Management System
*SUPEX is and abbreviation for SUPer-EXcellent level
SUPEX
Council*
Strategy
Committee
Communi-
cation
Committee
Energy ∙
Chemical
Committee
Corporate
Contribution
Committee
Global
Growth
Committee
Talent
Development
Committee
ICT
Committee
Making sure each
BOD is transparent,
also is focused on
shareholder value
Independent
Promoting group-wide
synergy through
SK SUPEX Council
United
10
Social Enterprise
Social Contributions
Corporate Partnership
Establishing and operating various social enterprises
- Happy School, Happy Lunchbox, Happy Green Recycling, etc.
Activating social enterprise ecosystem
Education, Scholarships
- Korea Foundation for Advanced Studies
Volunteer Work
- SK Pro Bono Volunteer Club, SK SUNNY
Supporting business partners on training, capital, tech.,
Overseas expansion, etc.
- Announced “Happy Partner Management” in 2005
- SK Corporate Partnership Academy
- SK Job Fair with Partner Companies
| China
SK SUNNY China, Forest development project,
Medical / Emergency Assistance, etc.
| Vietnam
Free surgery for children suffering from face deformities
| Kuwait
Supporting the Thukhur leaders for Kuwait
development initiative
| Columbia/Peru/Brazil Helping to repair natural disaster
(flood, earthquake, etc.)
11
Bio / Pharmaceuticals SK Holdings has subsidiaries with strong
competiveness in diverse business areas including
energy, chemicals, information and communications,
semiconductors, marketing and services. In 2015,
under the management policy of “reinforcing the
execution power to achieve excellent results,”
strategic investments were made from a long-term
perspective as part of the efforts to boost the value
of the current portfolio.
Also, SK Holdings will pave the foundation for
strong growth by conducting internally stable
management activities based on financial stability,
together with the efforts to strengthen our
governance structure. Moreover, we‟ll concentrate
our capabilities on enhancing our corporate value
by investing into the new growth engine businesses
that are expected to have high value in the future.
Semiconductor Materials
and Modules
Liquefied Natural Gas (LNG)
ICT Convergence
13
Information Technology (IT)
Service
Sales U$ 82.5 billion
Refinery
(Petroleum, Gas, and
Special Products) &
Marketing
Production of
Petroleum &
Petrochemical
Products
Lubricants
Base Oil
Production of
Petroleum &
Petrochemical
Products
Trading of Crude Oil &
Petroleum Products
Specialty Gas used in
Semiconductors and
Displays Manufacturing
Process
Global Contract
Development and
Manufacturing
organization
Global New Drug
Development
LPG Marketing
Global LPG Trading
LPG Import Base
Operation
Tank Terminal
PDH (Propane
De-Hydrogenation)
14
Exploration and Production
Batteries
Information & Electronics
Materials Future Energy
Green Chemicals
(Chemicals and Energy)
Life Science (Pharmaceuticals
and Biopharmaceuticals)
Chemicals Films
Photovoltaics
New Materials
Future Materials
LNG (Shale Gas)
Power Generation
Domestic and
Overseas City Gas
New and
Renewable Energy
Exploration &
Production
Sales U$ 2.7 billion
No.1 Energy Provider
in Korea
- The 2nd largest single-site
refinery (Ulsan Complex) in
the world (840,000 b/d CDU)
- Asphalt M/S No.1 in Korea
Global Top-tier
Chemical Company
- Market expansion
collaborating with global
Major companies
(Sinopec, SABIC, JX, etc.)
- Tech. innovation related to
eco-friendly products
(NexleneTM)
- Global major player
in Paraxylene sector
World’s No.1 Group III
Base Oil Producer
- Accounts more than 50%
Of III Group market
- Korea brand power No.1
in engine oil sector
for 14 consecutive years
- Operating JV LBO plants
with global partners
(Pertamina, JX, Repsol, etc.)
Sales U$ 25.5 billion Sales U$ 9.1 billion Sales U$ 2.6 billion
15
- 29 projects in 16 countries
with 623 million oil & gas
reserves and 73,000 boed
production
Sales U$ 1.1 billion
Eco-friendly Materials
- World‟s 1st successful
commercialization of
eco-friendly/bio functional
resin (‟09, ECOZENTM)
Life Science
- Total healthcare solution
provider-vaccine (domestic
M/S No.1), medicine, etc.
Sales U$ 6.4 billion
Production of Petroleum
and Petrochemical
Products
- Established as the nation‟s
third refinery in 1969
- An important role in the
supply of fuel oil to Gimpo
and Incheon International
Airports and energy to the
Seoul Metropolitan area
Global Trading Company
in the Energy Industry
Sales U$ 9.7 billion
16
- Professional traders with
global competitiveness
based on its sophisticated
risk management system
No.1 City Gas Distributor
in Korea
Sales U$ 4.9 billion
Global LNG Value Chain
Integration
- Shale gas E&P,
LNG direct Import,
LNG Trading,
LNG Terminal and
Power Plants Operation
- Accounts 22.5% of
Domestic Market
Global Specialty
Material Company -
A leader in Chemical
& Film Industry
- Global M/S No.1 in
Optical Film business for
LCD and No.4 producer
in Polyester film maker
- A leading company in
Polyurethane sector and
the first in the world to
commercialize „HPPO‟
plant
Sales U$ 1.2 billion
17
Sales N/A
Global New Drug
Development
- Become a Global Top Tier
Specialty Pharmaceutical
company that leads the
global market with the
development of
innovative next-generation
drugs
Sales U$ 0.1 billion
Global CDMO
- Contract development
and manufacturing
organization (CDMO)
in the global
pharmaceutical industry
- World leader in
continuous flow process
technology
- Exports over 85% of
total revenue based on
global customer base
Sales U$ 3.7 billion
Korea No. 1
LPG Player
- Accounts over 50% of
imported LPG distribution
- Top LPG trading co.
in Korea for over
20 years and big-scale
LPG terminal
(470,000 tons capacity)
- Business expansion
to PDH and coal power
plants
Sales U$ 0.3 billion
Leading Manufacturer
of Special Gas
- World‟s biggest supplier
of a specialty gas NF3,
WF6
- World‟s second biggest
of SiH4
Consulting
System Integration
IT Out Sourcing
Security Service
Mobile Communications (MNO)
IoT
Media/Home
Platform
DRAM
NAND Flash
CIS
Integrated and Personalized
Commerce
18
Mobile Platform
ICT Development
and Operation
High-Speed Internet
Telephone
IPTV
T Commerce
Corporate ICT Service
Repeaters
CPE(Giga-Wifi, Ap)
Smartphone R&D
FEMS
High-Efficiency Machinery
Transmission Equipment
LTE Equipment
The Nation‟s Best
International Call
Service Provider
Integrated Portal
Integrated Communication Messenger
Mobile Service
Sales U$ 11.0 billion
- Over 25 million mobile
subscriber (M/S 51%)
- Top ranking in the Korean
Customer satisfaction Index
for 16 consecutive years
- Global tech. leadership –
Winning „Prestigious LTE
Award at LTE World
Summit 2013
World No.2 Player
in DRAM Market
- No.4 in overall
semiconductor market
- Exports over 90% of total
revenue based on global
network (16 countries)
- World leading R&D
competitiveness
Offering Integrated &
Personalized Commerce
- SK Planet is committed to
operating Commerce Biz.
Platform and Commerce
Enabling Platform businesses
while focusing on the
Integrated & Personalized
Commerce.
- SK Planet has evolved into a
global service provider that
has already advanced into
some key overseas markets.
Sales U$ 26.3 billion Sales U$ 0.9 billion
19
Global ICT Service Leader
- Providing premium IT Services
in system integration,
outsourcing, info. Security, etc.
- The 1st Korean IT co. listed
in the Dow Jones
Sustainability Index World
for 3 consecutive years („12~)
- Expansion to new business
area with IT synergy :
Used car sales (No.1 in Korea),
Semiconductor module
distribution, etc.
The 1st Telecommunication
Company in Korea
Sales 2.5 billion
Sales U$ 0.04 billion
Korea’s Representing
Internet Company
- Operating a wide rage of
Internet services:
“Nate.com” web portal
which delivers content and
bulletin board services
from both online and
mobile platforms;
“NateOn”, a quick and
convenient integrated
communication messenger;
and “Cymera”, a self-portrait
photo app
The Nation’s Best Int’l
Call Service Provider
Sales U$ 0.4 billion
- Providing international call
service brand “00700”
- Offering a wide range of
wire-wireless communication
services including MVNO
service brand “SK 7mobile”,
satellite communication
service “SK Smart Sat”,
universal area code service,
and Internet calls
- Creating synergy effects
among the businesses of
security and B2B and B2C
communications by acquiring
NSOK, a security and guard
company
Evolving into a Platform
Company, Providing
New Customer value
- Over 25 million mobile
subscriber (M/S 51%)
- Top ranking in the
Korean Customer
satisfaction Index for
16 consecutive years
- Global tech. leadership –
Winning „Prestigious LTE
Award at LTE World
Summit 2013
Sales U$ 2.7 billion
Leading Technology
based Business Solution
- No.4 in overall
semiconductor market
- Exports over 90% of total
revenue based on global
network (16 countries)
- World leading R&D
competitiveness
Sales U$ 0.5 billion Sales U$ 0.2 billion
To Become the No.1
Partner in the Platform
Business
- Launched in March 2016
- Specializes in ICT
platforms based on the
expertise – obtained as a
former section of
SK Telecom and
SK Planet –
in the development and
operation of various
mobile platforms
20
Trading ICT Marketing Car-Life Energy Distribution Hotel Services
Manufacture of Kitchen and Home Appliances Rental Service of Home Appliances
Infrastructures Housing and Architecture Plants (Chemical, Power, Industrial)
Tanker Gas Carrier Bulk Carrier Bunkering Ship Management
21
Premium Kitchen
Appliances Company
- Incorporation into the SK family
in 2016
- Home appliance business has
solid brand power,
ranking first in the Korea
- Offering popular products in
more than 20 countries,
centering around the Middle East
Sales U$ 0.5 billion
Global Top Shipping Co.
in Resources Transport
- Largest domestic LNG
transportation operator
- Responsible for more than
1/3 of imported crude oil
in Korea
- Ranked 1st in M/S among
global bunkering operators
Sales U$ 1.4 billion
Build the Great – Global
Total Solution Provider
- Top-notch technical
expertise and outstanding
management capabilities in
infrastructure, housing,
plants, etc.
- 57 global projects in 22
countries with 33 overseas
affiliates/branches
- Received the highest score
on LEED Platinum grade
in Korea
Sales U$ 5.7 billion
22
Sales U$ 12.0 billion
World-class Trading &
Marketing Company
- 52 worksites in 15 countries,
industrial commodity trader
(coal, chemical and steel
products)
- Korea No. 1 mobile device
& petroleum product
distributor
- Korea Brand Power No. 1
in automobile maintenance
service sector for
12 consecutive years
EUROPE
U$ 2.1 Bn Assets
23 Affiliates/Branches
832 Talents
Assets size
U$ 27.6 Bn Assets
270 Affiliates/Branches
15,000 Talents
MENAT
U$ 0.4 Bn Assets
22 Affiliates/Branches
794 Talents
CHINA
U$ 11.6 Bn Assets
100 Affiliates/Branches
10,212 Talents
NORTH AMERICA
SOUTHEAST ASIA
U$ 5.3 Bn Assets
40 Affiliates/Branches
1,022 Talents
OCEANIA / REST OF ASIA
U$ 2.3 Bn Assets
36 Affiliates/Branches
507 Talents
LATIN AMERICA
U$ 0.9 Bn Assets
13 Affiliates/Branches
65 Talents
11.6 U$
Bn
5.3 U$
Bn
5.0 U$
Bn
2.1 U$
Bn
Bn 2.3
U$
U$
0.9 Bn
0.4 Bn
U$
24
U$ 5.0 Bn Assets
36 Affiliates/Branches
1,404 Talents
Assets: As of FY2017
Affiliates and Talents: As of April 2018
LPG business CHINA
BEIJING
TIANJIN
QINGDAO
JIANGSU
WUXI WUHAN
SHANGHAI
GUANGZHOU
SHENZHEN
SOUTH
CHINA SEA
NINGBO
XIAN
25
SUZHOU
CHONGQING
EV battery business
Lubricants business
Sales of TRAST patch, albumin, and other products
Polyurethane factory (system house)
Signed MOU with CSCEC
Asphalt research and marketing
Sales of copolyester, eco-friendly plastic
Sales subsidiary
Molecular diagnosis business
Polyester resin factory for adhesives
Memory semiconductor backend process
factory
Sales of copolyester,
eco-friendly plastic
Exploration and production (E&P)
NF3 production subsidiary
Blending plant
ICT convergence healthcare business
Semiconductor manufacturing
EPDM factory
LNG trading business in China
ICT convergence healthcare business
Prepreg factory
PET film factory
Sinopec-SK (Wuhan) Petrochemical Co, Ltd.
26
VIETNAM
THAILAND
INDIA
MALAYSIA
SINGAPORE
INDONESIA
LNG trading
Polyurethane factory (system house)
Lubricants business
Steel trading business
Home appliances business
Base oil plant
City gas and power generation business
Exploration and production (E&P)
Online open market (11street)
Asphalt products trading business
and securing fixed market
Crude oil and petroleum products trading
LPG trading & LPG import terminal business
Petrochemical plant construction
27
KUWAIT IRAN
SAUDI ARABIA QATAR
OMAN
TURKEY
LIBIYA
YEMEN
Exploration and production (E&P)
Hospital information system project
Wasit Gas Plant construction project
Online open market (n11.com)
Turkey Eurasia tunnel
LNG project
LNG project
LNG project
Kitchen appliances business
Kuwait Elevated Substation project
28
RUSSIA
SPAIN
POLAND NETHERLANDS
GERMANY
FRANCE
UNITED KINGDOM
Crude oil and petroleum products trading
Base oil business
Base oil business
Joint development of next-generation
pneumococcal conjugate vaccines
Sales of copolyester, eco-friendly plastic
Polyurethane plant (system house)
Lubricants business
Lubricants and base oil business
Crude oil and petroleum products trading
Signed for super engineering plastic
PPS supply and marketing
Shale gas development
in North America
LPG business
Mobile commerce platform
Fort Hills oil sands project
Polyurethane factory (system house)
PET films, EVA sheets for solar cells,
polyurethane factory (system house)
Operating oil-producing field
Lubricants and base oil business
Crude oil and petroleum products trading
Esmeraldas oil refinery modernization
29
CANADA
USA
MEXICO
PERU
ECUADOR
ALBERTA
CALIFORNIA
OKLAHOMA
TEXAS GEORGIA
NEW JERSEY
Exploration and production (E&P)
and LNG project
30
Gas field development
Resources development
Sales of copolyester, eco-friendly plastic
Mobile gift certificate service (cotoco)
JAPAN AUSTRALIA
SKMS / SK Management System
Happiness of Stakeholders
SK is fully aware that its employees are the focus of the
management and the pursuit of SUPEX can only be realized
when employees give their best. We believe that this will be
attained by our employees engaging in the “Voluntarily & Willingly
Brain Engagement (VWBE)” strategy.
Voluntarily & Willingly Brain Engagement (VWBE) “Pae-gi”
A representation of VWBE is Pae-gi, which means the
determination to succeed in one‟s work. Therefore, it is important
for SK People to embrace Pae-gi to create a favorable
environment for the SUPEX Quest. SK People equipped with
Pae-gi are self-motivated, challenge themselves by setting higher
goals and take progressive actions outside the box. They
endeavor to develop necessary competencies and achieve
higher performance through teamwork.
SK believes that its mission is to create greater happiness for its
numerous stakeholders. The ultimate goal that we pursue is
being happy by making those around us happy.
SUPEX Quest
In order to be a happier company, SK aims for the SUPEX, or
Super Excellent Levels. This is the highest goal that any person
can reach, and we continuously strive to achieve these levels.
32
Creation of
Greater
Happiness
Making Corporate
Contributions
Focus on Education,
Environment,
Health & Safety and
Social Services
Initiating and
Supporting
Social Enterprise
Established 14 SEs and
Supported 84 SEs by
Impact investing and
Entrepreneurship Program
Nurturing Social
Enterprise Ecosystem
Social Progress Credit:
Provide incentive based on
created social value
To-be Image
What We Do
33
This book consists of insights on how to promote
social enterprises and their ecosystem,
which will be suitable for social entrepreneurs,
academics in the relevant disciplines,
professionals providing intermediary support for
social entrepreneurs, as well as policy makers and
government officers.
This book offers the author‟s perspective
on the role of social enterprises in resolving
the social issue facing us today, and his vision on
how developing an ecosystem of social enterprises
will benefit a long-term development of our society.
Social Enterprises / 2014
34
KUWAIT
• Supporting the
Thukhur leaders
for Kuwait
Development
Initiative KENYA
• SK Happy Well
Development Project
ECUADOR
• Establishing Social Enterprises
• Helping to repair earthquake damage
VIETNAM
• Free surgery for children suffering
from facial deformities
• Building an IT training center
• Providing assistance to the Bihn Son region
COLOMBIA
• Supporting the
Korea Society
• Helping to repair
flood damage
BRAZIL
• Supporting repair of
damage caused by
Natural disasters
PERU
• Establishing
social enterprises
• Helping to repair
earthquake damage
CHINA
• Talent Development Project
• SK SUNNY China
• SK‟s Friendly Forest Development Project
• Emergency Assistance
• Medical Assistance
INDONESIA
• Emergency
relief project
• Installing an IT
training center
35
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