This article was displayed on the ChosunBiz MoneyMove (MM) site at 11:09 a.m. on Nov. 17, 2025.
It has been confirmed that SK Innovation is pushing to sell its equity in Daehan Oil Pipeline Corporation. SK Group rose to become the largest shareholder after buying equity when the government privatized Daehan Oil Pipeline Corporation in 2001. The corporation earns about 50 billion won a year and is a blue-chip company with an operating margin of around 30%.
According to the investment banking (IB) industry on the 17th, SK Innovation has reportedly contacted some potential buyers for the sale of Daehan Oil Pipeline Corporation. The corporation's equity is held by SK Innovation at 41%, GS Caltex at 28.62%, and the Ministry of Trade, Industry and Energy at 9.76%. In addition, S-Oil (8.87%), HD Hyundai Oilbank (6.39%), Korean Air (3.1%), and Hanwha TotalEnergies (2.26%) are also major shareholders.
The total corporate value of Daehan Oil Pipeline Corporation is estimated to be close to 600 billion won. SK Innovation values the book value of its 41% equity in the corporation at 192.7 billion won. On a 100% equity basis, the value is 470 billion won. The total corporate value is expected to vary depending on how much management control premium is recognized and the scope of the sale.
The corporation is responsible for transporting petroleum products from refineries at production sites to major storage depots nationwide through 1,180 kilometers of underground pipelines. Last year, revenue and operating profit were about 199 billion won and 52.7 billion won, respectively. In 2023, revenue and operating profit were 200 billion won and 57.6 billion won, respectively.
It has not yet been decided whether SK Innovation will sell all or part of its equity in the corporation. An IB industry source said, "As SK Group is moving to sell assets on all fronts, there is a possibility that the plan will be adjusted depending on the trend of other asset sales."
Daehan Oil Pipeline Corporation was established in 1990 through a joint investment by the government, refiners, and airlines to operate and share pipeline infrastructure. In 2001, it was converted from a state-owned corporation to a private corporation when the government sold its equity to the private sector. Daehan Oil Pipeline Corporation CEO Park Chang-gil previously served as CEO and head of petroleum production at the SK Energy Ulsan Complex.
An SK Innovation official said, "There are currently no plans to sell equity in Daehan Oil Pipeline Corporation."