l Finalized sale of 49% of its chemical business to Kuwait-_ base_d PIC on March 10 and established joint venture SK PICglobal
l Finalized sale of equity share in SKC Kolon PI on March 6 and received more than 1 trillion won to improve its financial structure and secure new investment capability

l Set to accelerate BM innovation centered on mobility, semiconductor, display, and environment after completing Phase 1

SKC has successfully completed Phase 1 of BM (Business Model) innovation. In the past 10 days, it has completed the transfer of a portion of its chemical business division and sold its stake in SKC Kolon PI. With Phase 1 completed, SKC is accelerating Phase 2 of BM innovation centered on mobility, semiconductor, display, and environment.

SKC has been preparing the establishment of a JV chemical company since it signed an agreement with Kuwait’s PIC (Petrochemical Industries Company) in August last year. The JV is valued at 1.195 billion dollars (about 1.45 trillion won). SKC transferred its 300 billion won debt when it spun off its chemical business division in early February and received 464.6 million dollars (about 565.6 billion won) for a 49% stake in the JV on March 10.

The name of the JV is SK PICglobal, and the _ object_ive is for both companies to cooperate as strategic partners to expand their global presence and grow into the world’s leading PO/PG manufacturer. Both companies have actively discussed entering the global market jointly. The joint venture, SK PICglobal, aims to establish a global PO production system of 1 million tons _ base_d on the will and cooperation of both companies.

On March 6, SKC completed the sale of its stake in SKC Kolon PI, a joint venture established by SKC and Kolon Industry in 2008 by investing in kind in the polyimide (PI) film business of each company. Both companies sold 54.07% of SKC Kolon PI to Korea PI Holding, a special-purpose company (SPC) established by Glenwood Private Equity. SKC received 303.5 billion won for its 27.03% stake.

These transactions raised over one trillion won for SKC to invest. SKC plans to use the funds to improve its financial structure and make additional investments needed for Phase 2 BM innovation centered on mobility, semiconductor, display, and environment.

In the mobility sector, SKC plans to expand investment in next-generation battery materials. Following the acquisition of KCFT -- the world’s no. 1 manufacturer of copper foil as the core material for electric vehicle batteries -- in January this year, SKC is considering the construction of global production _ base_s.

In the semiconductor sector, SKC plans to show the visible outcome of the goal of increasing the localized portion and increase new items. In the environment sector, the company is increasing investment in new items to _ create_ more social values. In the display sector, SKC plans to strengthen the growth engine items such as the transparent PI films used in next-generation displays.

“SKC has implemented deep change with the commitment to break away from petrochemical despite the many difficulties. Although there are concerns of a worldwide economic slump due to the recent COVID-19, we will do our best to show the tangible outcome of BM innovation that we have focused on over the years,” said SKC CEO Lee Wan-jae. [End]