[2/22] SK to expand energy, telecom business in U.S.

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[Article] SK to expand energy, telecom business in U.S.

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 SK Group, the operator of Korea's largest oil refiner, is poised to expand its energy business to the United States with ambitions to establish a firm footing in the world's biggest economy.

Reinforcing its commitment to branch out its three core areas of energy, chemicals and mobile telecommunications to the United States, the group's chairman, Chey Tae-won, said last Sunday that SK Group would fix a firm expansion plan during his weeklong visit to the country.

Chey believes full entry to the world's largest economy is crucial for the group's globalization plans.

The head of SK Corp., the de facto holding firm of Korea's fourth-ranked conglomerate, arrived in the United States yesterday to brief investors on 2004 earnings and tour its U.S. branches and affiliates.

SK Group's latest oil business expansion into the United States involves supplying oil products from its refineries around the globe such as facilities in Peru and Brazil.

Yemen LNG, which has a 7 percent stake in SK Corp., recently forged a contract to supply 2.5 million metric tons of liquefied natural gas to the United States for 20 years beginning in 2009.

The group's mobile telecommunications business already has a foothold in the U.S.

SK Telecom Co., Korea's largest mobile-phone operator, set up a joint venture with Earthlink Inc., a U.S. Internet service provider, last month. The $440 million joint venture will involve offering wireless services in North America starting in September this year.

The company is seeking foreign markets to revive growth, as the Korean mobile services market is almost fully saturated with three out of four people owning a mobile phone.

SK Telecom had 18.78 million wireless subscribers as of Dec. 31. Atlanta-based Earthlink has more than 5 million subscribers.

SK also plans to nurture its biopharma business from its pharmaceutical development center based in New Jersey. It hopes to expand to develop treatments for diabetes and cancer. It also hopes to take on at least 15 new research and development projects every year.

China is the other key market crucial to Chey's global expansion plans. Exports to China accounted for 44 percent of sales in the first nine months of 2004 compared with 26 percent in 2003. To meet surging demand for chemicals and fuel in the world's fastest growing economy, SK Corp. said it plans to strengthen marketing efforts and product distribution. It also plans to double its annual sales in China to $4.5 billion by 2010 from the current $2.3 billion.

Industry observers believe the rare visit by Chey, whose reputation was tarnished by a $1.2 billion accounting fraud at affiliate SK Networks, is also aimed at garnering the confidence of foreign investors who own more than half of SK Corp. before an annual shareholders meeting next month.

Sovereign Asset Management Ltd., SK Corp.'s second-biggest shareholder with a 14.9 percent stake, has been trying to remove Chey on the grounds that his fraud conviction in 2003 makes him unfit to run the group.

                                                       ※ 출 처 :  www.koreaherald.com