December 04, 2024

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SK Group Chairman Chey Tae-won (on screen) and the group's top executives attend a strategy meeting at a research center in Icheon, Gyeonggi Province, Friday. (SK Group)

SK Group said Sunday that it will secure 80 trillion won ($57.9 billion) by 2026 to accelerate its push for two growth drivers: chips and artificial intelligence.

SK hynix, its chipmaking unit, alone plans to invest 103 trillion won by 2028, with 80 percent of the new funding focusing on AI chips, including high-bandwidth memory, a burgeoning area where the chip giant has secured an earlier edge.

Telecom carrier SK Telecom and internet service provider SK Broadband will also invest a combined 3.4 trillion won into the data center business over the next five years.

A series of new investment plans were unveiled on the day following a meeting of top executives on Friday and Saturday at the group’s research center in Icheon, Gyeonggi Province.

“Here in the US, AI is everywhere,” Chairman Chey Tae-won, who is currently in the US on a business trip, said via a video link during the meeting.

“We should consolidate our leadership in the AI value chain from service to infrastructure by leveraging all the capabilities across affiliates.”

Among tech leaders the SK chief met last week were OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella.

“When it comes to green, chemical and bio areas, we need to do selection and concentration based on a thorough review of market trends and our technological prowess,” he added, hinting at a possible strategic shift after years of aggressive expansion in the renewable energy and biotech fields.

During the two days of meetings, some 20 top executives reviewed the performance of key businesses and set the future direction, including action plans across companies.

The group’s strategic focus will be enhancing its AI value chain from AI chips to data centers to AI services to secure its global competitiveness amid heated AI competition among its tech rivals.

A semiconductor committee has also been set up within the SK Supex Council, the group’s top decision-making body, with SK hynix President and CEO Kwak Noh-jung taking the helm.

Also on the agenda were ways to elevate profitability and improve operational efficiency.

As part of its efforts, the group plans to secure 30 trillion won in cash in the coming three years and control the debt ratio below 100 percent.

The group posted a loss of 10 trillion won in earnings before tax last year, but this year it aims to turn a profit of about 22 trillion won. It also set a goal of 40 trillion won in earnings before tax by 2026.

“We have clear goals for qualitative growth, and with consistent effort there is nothing we cannot achieve,” said Vice Chairman Chey Jae-won during the meeting. “Each subsidiary should accelerate operational improvements and respond to market expectations and trust.”

By Jie Ye-eun (yeeun@heraldcorp.com)