SK vows $196 bn investment in chip, battery, bio for 50,000 new jobs at home

South Korea’s second largest conglomerate SK Group with multinational strengths in chips, batteries, bio and wireless Thursday pledged to invest 247 trillion won ($195.7 billion) to enhance battery, bio and chip (BBC) operations over the next five years.

The group in its disclosure on Thursday said it will devote 179 trillion won at home and hire 50,000 talents in the BBC sector.

Shares of SK Inc., the holding entity of the group, briefly rose in the morning trade but closed Thursday 0.63 percent lower at 235,000 won in Seoul trading.

More than half of the spending, or 142.2 trillion won, will go to enhancing its chip and related materials capacity through the semiconductor cluster in Yongin, Gyeonggi Province it has begun construction.

It will strengthen domestic supply chain for chips and materials/components/equipment like specialty gases and wafers.

SK Group will spend 67.4 trillion won for battery and separator output ramp-up, renewable energy facilities and investment in related global companies.

SK Group earmarked 24.9 trillion won in digital business to develop wire and wireless communications network and 12.7 trillion won in bio sector to continue success in novel drug development.

South Korea’s top conglomerates this week have been competing with multibillion dollar investment pledges for the next four to five years during the term of President Yoon Suk-yeol whose government has promised various incentives and deregulations to promote private-led growth for future industries.

The country’s No.1 Samsung vowed 450 trillion won for next five years and No. 3 Hyundai Motor 63 trillion won through 2025. Lotte pledged 37 trillion won, Hanwha 37.6 trillion won, and Doosan 5 trillion won. No. 4 conglomerate LG on Thursday announced third largest 106 trillion won capex scheme.

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