Latest news with #CheyTae-won
UPI
6 days ago
- Business
- UPI
Analysis: SK Group becomes most profitable conglomerate in Korea
South Korea's SK Group, led by Chairman Chey Tae-won, became South Korea's most profitable conglomerate, according to business tracker CXO Institute. File Pool Photo by Yonhap/EPA-EFE June 26 (UPI) -- SK Group has emerged as the most profitable conglomerate in South Korea thanks to the stellar performance of its key affiliate SK hynix, the world's No. 2 memory chipmaker. According to Seoul-based business tracker CXO Institute on Wednesday, SK Group's subsidiaries recorded $20 billion in operating profit last year, surpassing Samsung Group's $19.9 billion. This means that Samsung Group, a perennial leader in profitability, has now failed to claim the top spot for two consecutive years. In 2023, Hyundai Motor Group led the rankings for operating income. "Throughout last year, SK hynix single-handedly carried SK Group. And the trend is expected to continue this year, which means SK Group may become the most profitable company for two straight years," CXO Institute chief Oh Il-sun told UPI. Lee Phil-sang, an adviser at Aju Research Institute of Corporate Management and former Seoul National University economics professor, echoed that view. "Samsung Electronics is putting forth great efforts to catch up in next-generation chips, but it will take some time. SK hynix is projected to be more profitable than Samsung Electronics this year," he said in a phone interview. Driven by the booming sales of high-bandwidth memory (HBM) chips, which are used for AI applications or supercomputers, SK hynix delivered record-breaking profits in 2024. Its operating profit reached $17 billion, accounting for 85% of SK Group's total, a dramatic turnaround from its $5.68 billion operating loss in 2023. In the first quarter of this year alone, SK hynix chalked up $5.48 billion in operating profit. Based on the impressive results, the company's market capitalization topped $150 billion this week for the first time, trailing only Samsung Electronics' $262 billion. The latter is the world's largest manufacturer of memory chips and smartphones. Despite SK's current edge, some watchers believe that Samsung Group may reclaim the top position this year as the prices of DRAM, a major product of Samsung Electronics, show signs of recovery. "From the third quarter, technology and sales are expected to gradually normalize," Daishin Securities analyst Ryu Hyung-keun noted in a recent report. "While it won't be easy to restore technological competitiveness in a short period, the strategic shift should begin to yield signs of improvement in the second half." Samsung Electronics posted $4.9 billion in operating profit during the first three months of 2025, up 1.2% year-on-year. When it comes to 2024 sales, Samsung Group was the runaway leader with $294 billion, far ahead of $215 billion of Hyundai Motor Group and $152 billion of SK Group. Samsung Group also led in employment as more than 280,000 workers were on its payroll, compared to around 200,000 for Hyundai Motor Group and 150,000 for LG Group. In terms of per-capita turnover, Mirae Asset Group was atop the list with $2.7 million. It is one of the biggest financial conglomerates here, focusing on asset management, brokerage, investment banking, and insurance. "We can say that Mirae Asset workers generated the largest added values on average last year. In other words, the group wins out in efficiency," CXO Institute's Oh said. By contrast, LG Group struggled to find its feet last year as the outfit failed to remain profitable. The Seoul-based group logged $392 million in operating loss, up 38% from a year before. "LG Group has been languishing because its main unit LG Energy Solution faced a double whammy of the electric car chasm and the intensifying competition from Chinese players," said economic commentator Kim Kyeong-joon, formerly vice chairman at Deloitte Consulting Korea. "The group should address both issues to rebound, which is not an easy task," he added. The term EV chasm refers to the weaker-than-expected demand for electric cars in recent years due to the gap between early adopters and mass market consumers. LG Energy Solution is one of the world's foremost EV battery producers.
Korea Herald
25-06-2025
- Business
- Korea Herald
Skilled immigration, Japan ties key to rebooting Korea's growth: KCCI
New report urges mega sandbox reforms, reshoring of fabs, $6tr Korea-Japan bloc to unlock new growth engines South Korea needs to attract 5 million highly-skilled foreign professionals and forge an economic alliance with Japan to tackle its demographic headwinds and counter rising trade protectionism, the Korea Chamber of Commerce and Industry proposed Wednesday. In a policy booklet roughly translates to "New Order, New Growth" delivered Tuesday to the government, parliament, and presidential office, the business lobby outlined structural fixes to help Korea escape the trap of slowing growth and a shrinking labor force. 'This is a time when growth is more necessary than ever. The global landscape is shifting dramatically, and the Korean economy, having failed to bring about lasting change, now faces the risk of zero growth,' wrote Chey Tae-won, chairman of SK Group and KCCI, in the booklet's preface. 'We must work with the new government to build future growth engines for the Korean economy. It's essential to find actionable solutions to reduce high costs by joining hands with global partners.' The proposal comes as the Lee Jae Myung administration works to finalize its national policy roadmap, with input from a new planning committee that is actively soliciting feedback from business and civil society. Among Korea's most pressing structural concerns is a declining working-age population coupled with a limited domestic market. The KCCI argued this can be alleviated by attracting skilled talent from countries such as Vietnam, Indonesia and Malaysia. Beyond addressing labor shortages, an influx of foreign professionals could be expected to stimulate consumption and increase tax revenues. Supporting this approach, studies cited in the proposal showed that a 3 percent increase in skilled and unskilled foreign labor leads to GDP growth of 1.46 percent and 0.85 percent, respectively, in the US, with comparable figures in Japan, underscoring the economic benefits of immigration. The plan recommends visa reforms inspired by Germany's Green Card system tailored for IT professionals, along with family friendly settlement policies. It also proposed reshoring major overseas semiconductor fabs to Korea to attract highly skilled workers on a large scale. In tandem with immigration, the KCCI urges Korea to deepen economic cooperation with Japan, a nation grappling with similar demographic and industrial challenges. The report argues that aligning the two economies could create a $6 trillion economic bloc, eclipsing Germany and positioning Korea and Japan as global rule-makers in trade and regulatory standards. 'If Korea and Japan become each other's second-largest domestic market, they can enjoy productivity gains even in aging societies,' the report said. Joint LNG procurement and coordinated production networks spanning Asia, the US, and the EU could lower costs and enhance competitiveness. The proposal envisioned an emerging Asian economic zone — including Korea, Japan, and other developing countries that could grow to $47.7 trillion by 2030, becoming the world's largest economic region, 1.3 times the size of the US economy. The booklet also called for a fundamental shift away from Korea's longstanding dependence on goods exports, which have fueled remarkable growth -- over 10,000 percent in GDP over 70 years -- but are now hampered by shrinking profit margins and rising protectionism. Manufacturing profitability has steeply declined, with net income per 10,000 won ($7.35) in sales dropping from 830 won in 1995 to just 320 won in 2024, reflecting structural challenges in the sector. To counter this, the KCCI advocated boosting service exports and primary income through strategic overseas investments, pointing to Japan's returns from foreign assets and the UK's robust service economy as benchmarks. One example the group suggested was the industrialization of Korean food and culture exports, including recipe licensing, cooking classes, kitchenware, and interior design, aiming to capture untapped non-tariff export value and open new global markets. To implement these changes, the KCCI proposed expanding Korea's regulatory sandbox into a 'mega sandbox' model. This framework would offer wide-ranging regulatory exemptions, aggressive private sector incentives, talent matching platforms and global-standard living conditions to attract and retain top international talent. The 250-page report was compiled by 13 experts, ranging from think tank researchers and law professors to industry consultants, including Kim Chang-wook, Boston Consulting Group's semiconductor lead in Korea, Suh Dong-hyun, economist at the Bank of Korea, and Kwon Seok-joon, a chemical and polymer engineering professor at Sungkyunkwan University.
Hans India
22-06-2025
- Business
- Hans India
SK Group chairman calls for AI-led growth amid industrial revolution
Seoul: SK Group Chairman Chey Tae-won has called for a stronger focus on artificial intelligence (AI) as a new growth engine, urging the group to take a leading role in the AI-driven industrial revolution, the company said on Sunday. "The sustainable survival of companies depends on how they adapt to AI," Chey was quoted as saying during a recent groupwide business strategy meeting. "We should broaden our horizons by applying AI not only in information technology (IT) but also in areas such as electricity, energy and biotechnology." His remarks align with SK Group's long-term strategy to accelerate its "fourth quantum leap" by integrating AI into all aspects of business operations, spanning AI data centers, AI agents, robotics, manufacturing, energy and bio, reports Yonhap news agency. The group previously announced plans to invest 82 trillion won (US$59.7 billion) in AI and semiconductor sectors by 2030. As a first step, SK Group last week unveiled a partnership with Amazon Web Services (AWS) to build a hyperscale AI data center in Ulsan, about 305 kilometers southeast of Seoul. The facility is scheduled to begin operations by 2027 and is expected to create up to 78,000 direct and indirect jobs over time as it scales. The project reflects SK Group and AWS' joint commitment to advancing cloud infrastructure to support AI innovation, the company said. The project brought together key SK Group affiliates, including SK Telecom Co., SK hynix Inc. and SK Gas, combining the group's strengths in ICT, energy and semiconductors. The new data center is expected to enhance the group's capabilities to meet growing demand for generative AI through compute, storage, database and edge computing solutions. "Hyperscale AI data centers are core national assets that can strengthen our geopolitical position amid intensifying global tech competition and trade pressure," the group said. "Given that AI data centers typically operate for decades, this large-scale investment by a global tech giant underscores confidence in Korea's political and economic stability and long-term growth potential."
Yahoo
22-06-2025
- Business
- Yahoo
SK Group and AWS Team Up to Build Cloud Computing Infrastructure to Support AI Innovation
SK Group, in partnership with AWS, will provide data center infrastructure for a new AWS AI Zone location in Ulsan that will support AI adoption 15-year strategic deal will expand SK Group and AWS capabilities for customers in South Korea The new AI Zone will give organizations in South Korea greater choice in onshore infrastructure with operations expected to begin in 2027 SK Group plans to scale capacity, with a vision to become a data center hub in Asia-Pacific (APAC) SEOUL, South Korea, June 22, 2025 /PRNewswire/ -- SK Group, South Korea's second-largest conglomerate, announced its partnership with Amazon Web Services (AWS) to expand cloud infrastructure in South Korea. SK Group, in partnership with AWS, will build a data center in Ulsan, South Korea for a new AWS AI Zone that will help organizations in South Korea build innovative and new AI applications locally while leveraging the full breadth of AWS capabilities. The AI Zone will bring together multiple innovative capabilities, including dedicated AWS AI infrastructure and servers with world-class semiconductors, UltraCluster networks for faster AI training and inference, AWS services like Amazon SageMaker and Amazon Bedrock, and AI application services such as Amazon Q to advance Korea's mission to be a world leader in AI. On June 20, SK Group and AWS held a signing ceremony for the establishment of the AI Zone in Ulsan, where both parties pledged cooperation for the successful launch of the project. Chey Tae-won, Chairman of SK Group; Ryu Young-sang, CEO of SK Telecom; Prasad Kalyanaraman, Vice President of Infrastructure Services at AWS; Jaime Valles, Vice President and General Manager for Asia Pacific and Japan at AWS; and Ham Kee-ho, Country Managing Director of Korea at AWS attended the signing ceremony. The data center in Ulsan is scheduled to begin operations by 2027 and is expected to generate up to 78,000 direct and indirect jobs over time as the data center scales and operations expand. The AI Zone in Ulsan will combine industry-leading capabilities from SK Group and AWS through a 15-year partnership to provide top-tier network operations, a semiconductor supply chain, and efficient power infrastructure. This partnership is in addition to AWS's long-term US $5.88 billion (approx. 7.85 trillion won) planned investment in Korea by 2027. SK Group will lead the construction of the data center, while AWS will establish the AI Zone in Ulsan, which will deliver a broad selection of AWS's leading AI and cloud capabilities to customers in South Korea. The project brings together key SK Group affiliates, including SK Telecom, SK Broadband, SK hynix, SK Gas, SK Chemicals, SK multi utility and SK AX, uniting the Group's core competencies across ICT, energy, and semiconductors. Above all, Ulsan is considered the optimal location for the establishment of the AI Zone, as SK Group possesses a stable gas supply network, advanced energy solutions, and ideal sites in the region. In addition, Ulsan offers a favorable environment for submarine cables and is highly supportive of industrial activities. The AI Zone in Ulsan is designed to meet global performance and security standards. It features an AI-optimized computing system, ultra-high-density rack configurations, a hybrid cooling system combining air and liquid cooling, and a stable, robust network infrastructure. The SK Group and AWS partnership underscores a shared commitment to driving innovation in cloud computing infrastructure to support AI innovation. SK Group and AWS are expanding their strategic partnership and plan to pursue wide-ranging collaborations that will benefit customers, giving them the ability to meet the demand for rapidly growing generative AI with compute, storage, database and edge computing capabilities. The new cloud infrastructure is a part of the AI Infrastructure Superhighway strategy announced in 2024 by SK Telecom, which is involved in AI initiatives within SK Group. SK Group expects to establish a key hub for hyperscale AI infrastructure through the AI Infrastructure Superhighway project. SK Group plans to enhance data sovereignty and strengthen its global competitiveness in AI by processing AI workloads generated in South Korea directly within the country. "When SK Group's exceptional technical capabilities combine with AWS's comprehensive AI cloud services, we'll empower customers of all sizes, and across all industries here in Korea to build and innovate with safe, secure AI technologies," said Prasad Kalyanaraman, VP of Infrastructure Services at AWS. "This partnership represents our commitment to Korea's AI future, and I couldn't be more excited about what we'll achieve together." "We are pleased to combine the technological capabilities of SK Group with AWS, the world's leading cloud provider, to establish a core infrastructure for a Korean AI ecosystem and create a powerful new engine for 'AI highway,'" said Chey Tae-won, Chairman of SK Group. "Moving forward, SK will continue to build an AI data center hub in the Asia-Pacific (APAC) region by leveraging the unique strengths of each affiliate and our global partnerships." About SK SK Group, South Korea's second-largest conglomerate, is a global technology leader delivering innovations to build the backbone for a new era of industry. Based in Seoul, SK has 198 companies and over 100,000 employees worldwide with a focus on developing and producing advanced solutions in semiconductors, artificial intelligence, energy and life sciences. SK businesses have a shared commitment to create economic value while having a positive impact on society. For more on SK, visit About Amazon Web Services Since 2006, Amazon Web Services has been the world's most comprehensive and broadly adopted cloud. AWS has been continually expanding its services to support virtually any workload, and it now has more than 240 fully featured services for compute, storage, databases, networking, analytics, machine learning and artificial intelligence (AI), Internet of Things (IoT), mobile, security, hybrid, media, and application development, deployment, and management from 117 Availability Zones within 37 geographic regions, with announced plans for 13 more Availability Zones and four more AWS Regions in Chile, New Zealand, the Kingdom of Saudi Arabia, and the AWS European Sovereign Cloud. Millions of customers—including the fastest-growing startups, largest enterprises, and leading government agencies—trust AWS to power their infrastructure, become more agile, and lower costs. To learn more about AWS, visit About Amazon Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth's Most Customer-Centric Company, Earth's Best Employer, and Earth's Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit and follow @AmazonNews. View original content: SOURCE SK Group; SK Telecom
Yahoo
20-06-2025
- Business
- Yahoo
Amazon Backs South Korea's $4 Billion AI Bet
SK Group and Amazon (NASDAQ:AMZN) Web Services are teaming up to invest roughly 7 trillion won ($5.11 billion), including a $4 billion AWS stake, in South Korea's biggest AI data centre, breaking ground in Ulsan this September and targeting 100 MW by Science Ministry confirmed that the SKAWS partnership will build a sprawling compute campus in Ulsan, set to begin construction in September 2025. Initial capacity will hit 100 megawatts by 2029, making it the largest AI-focused facility in the country. Warning! GuruFocus has detected 2 Warning Sign with AMZN. SK Group Chairman Chey Tae-won, speaking alongside President Lee Jae Myung and leading tech CEOs, pledged to eventually expand the site to one gigawatt and position Ulsan as a global AI hub serving domestic demand. Following the announcement, SK Hynix shares climbed about 4% in Seoul trading, while Amazon's U.S. premarket listing remained major AI infrastructure in Ulsan aligns with Seoul's push to decentralize high-tech investment and foster regional innovation. A home-grown data centre reduces reliance on foreign cloud nodes and could catalyse new AI startups, research partnerships, and talent clusters outside traditional tech centres. As the Ulsan campus scales toward gigawatt power, its performance will test the viability of mega-scale AI hubs outside established tech corridors. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
