Involving Domestic Factories! The Chemical Giant Sells a Large Business that Has Operated for More than 40 Years for $1.3 Billion!

On June 8, SKC held a board meeting and decided to split and sell the thin film business. On the same day, SKC signed a stock sale contract with Hahn & Company, the largest private investment fund operating company in Korea.

The deal targets SKC's film business unit and film processing subsidiary SKC hi-tech & marketing, as well as factories in the United States and China, with a contract value of 1.6 trillion won (about 1.3 billion U.S. dollars). SKC will complete the transaction in the fourth quarter after completing the necessary procedures such as the general meeting of shareholders and business division.

SKC film business

Founded in 1976, SKC is the first company in Korea to develop and manufacture products in the fields of thin films, chemicals and materials.

SKC's thin film business mainly produces advanced IT equipment and industrial products such as displays and mobile devices. Following the development of PET film for the first time in Korea in 1977, and the development of video tapes for the first time in Korea in 1980, it set a number of "firsts" records and drove the domestic film industry in Korea.

At the beginning of the 21st century, as the main product was positioned as a film for displays, it became a solid backing for the development of the industry, and recently, it has focused on cutting-edge products for mobile devices such as smartphones. Sales in 2021 will be 1.1319 trillion won (approximately US$950 million) and operating profit will be 68.9 billion won, showing an upward trend.

Reason for selling the business

SKC decided to sell the thin film business in order to clarify its image as a global ESG material solutions company centered on secondary batteries, semiconductors, and environmental protection. Although the film business continues to grow in sales and operating profit on the basis of global competitiveness, it is not in the same strategic direction pursued by SKC. In response, SKC decided to sell the company's thin film business to an acquirer suitable for the growth and development of the thin film business.

Hahn & Company is Korea's largest private equity fund operating company dedicated to investment with approximately KRW 13.5 trillion in operating funds. Since its establishment in 2010, it has acquired 30 outstanding Korean companies.

Future business priorities

The funds obtained by SKC this time will be used to invest in the future growth engine business currently being promoted and the new business that will be added in the future.

After 2016, SKC will promote the innovation of BM (Business Model, business model) centered on secondary batteries, semiconductors, and environmental protection, and this decision will begin to move towards a new corporate identity as a "global ESG material solution company".

An SKC official said, "We will establish a business structure centered on secondary batteries, semiconductors, and environmental protection, and focus on investing in global expansion and future growth to lay the foundation for Leap & Reap." A global ESG material solutions company.”