Global Management, R&D to Drive Up SK

I read about an article of Korea’s third-largest conglomerate SK’s Research and Development. SK wants to expand their company globally, and is aiming to solidify its position overseas and widen research and development in the life sciences industry. SK, established SK International (SKI) this year to maximize the efficiency of all offices abroad (They have offices at U.S, China, and Vietnam.). Chey Tae-won, the Chairman of the company is searching for new opportunities to be in the top conglomerate in the world. He met several leaders during a conference called Davos and discussed constructing a U-City in Saudi Arabia and a cude oil processing plant in Kuwait with President Roh Moo-hyun. Company officials say the CEO’s strategy in global management is directly translated into company revenue. SK earned $25 billion last year and assuming approximately $27 billion this year. The Core businesses in SK are energy and telecommunications which both made an important leap outside Korea. SK telecom has selling mobile phones in U.S and China. They are searching for more countries to launch their product by entering the Indian and Indonesian markets that seems to have potentials. They are also currently carrying out exploration projects worldwide with the company currently securing proven reserves of 510 million barrels of oil in fourteen countries such as Brazil, Peru, and Vietnam.
For Research and Development, SK invested one trillion won this year for the first time which is 14 percent of the company’s annual investment. They have six operating local R&D centers and opened seven more during the same period to expand into diverse research areas. Also, there are more than 2000 staff researchers overseas such as New Jersey, Shanghai, and Bejiing to focus more on R&D. There are several successful R&D and one of the examples of it is Advanced Catalytic Olefin (ACO) technology. It gives higher overall olefin yields. The company’s investment on R&D does not stop and is planning on extend ongoing developments by setting next year’s R&D budget about 10 percent higher.

http://koreatimes.co.kr/www/news/nation/2008/03/234_14691.html


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