SMOSCOW (MRC) -- SK Group announced an additional USD22 billion investment in the U.S. market, emphasizing that its plan will create decent jobs in both Korea and the U.S., said Koreantimes.
The second-largest conglomerate in Korea said Wednesday that the money will be used mainly to support the U.S. semiconductor, green energy and bioscience industries. Considering its previous announcement of investing $7 billion to build electric vehicle battery plants in Tennessee and Kentucky, SK Group will invest nearly USD30 billion in total in the world's largest economy.
In particular, USD15 billion will be invested in semiconductor R&D and construction of an advanced packaging and testing facility for the U.S. chip industry, while USD5 billion will be used for green energy sectors, including the construction of small modular reactors. The group will invest USD2 billion in cell and genetic therapies.
"Our countries fought side-by-side during the terrible conflict, and now we have worked side-by-side to build the technologies and infrastructures that will power the 21st century economy around the world," SK Group Chairman Chey Tae-won told U.S. President Joe Biden at a teleconference at the White House, Tuesday (local time). "Our cooperation will make the supply chain in both our countries more resilient in critical technologies." Biden viewed SK Group's announcement as "historic," expecting its planned investments to increase its U.S. workforce to 20,000 workers from 4,000 by 2025.
"Today's announcement is also proof that America is back to working with our allies," the U.S. president said. "By uniting our skills and innovation, we will be able to manufacture the technologies that create the critical changes that are needed… for both our countries." Apologizing for not being able to meet with the chairman after having been diagnosed with COVID-19, Biden added jokingly that he will force Chey to have lunch with him in the Oval Office next time he visits.
Following their meeting, SK Group said in a statement that its 179 trillion won (USD136 billion) investment in the Korean market will also be made as planned by 2026, denying speculation that its planned investment in the U.S. will benefit American jobseekers only. Chey also told Biden that SK's commitment to growth and investment in Korea is "enduring."
SK Group noted that its investments in the semiconductor R&D will improve the technologies of SK hynix and the Korean chip industry. The conglomerate was also confident that its large-scale investment in the green energy sector will allow its subcontractors to enter the U.S. market, creating more jobs in both countries.
As per MRC, SK Capital Partners, LP, a private investment firm focused on the specialty materials, specialty chemicals, and pharmaceuticals sectors, announced the hiring of Asim Bhatia as Director, Business Development. Mr. Bhatia will be based in New York and brings nearly 25 years of strategic corporate development, M&A, investment banking, and corporate banking experience to SK Capital.