This article was displayed on the ChosunBiz MoneyMove (MM) site at 5:33 a.m. on May 14, 2026.
SKC is reportedly seriously considering a plan to sell additional noncore businesses to reduce its financial burden and then merge with another affiliate within SK Group.
After reshaping its business structure around copper foil, semiconductor back-end materials, and glass substrates, SKC intends to dispose of remaining noncore assets and slim down, then redefine the role it will take on within the group. However, neither a specific merger counterpart nor a timeline has been set yet.
◇ Selling film, chemical, and display materials to focus on semiconductor back-end and glass substrates
In recent years, SKC has scaled back its legacy businesses in film, chemicals, and display materials, shifting its focus to copper foil, semiconductor back-end materials, and glass substrates.
In 2022, it sold its PET film business to Hahn & Company for 1.6 trillion won, followed in 2023 by the sale of its wet chemicals and cleaning businesses in China to local companies for about 88 billion won. It sold 100% equity in its polyurethane feedstock subsidiary SK Pucore to Glenwood Private Equity (PE) for 410 billion won. It also transferred the fine ceramics business to Hahn & Company for 360 billion won.
Then in 2024, SKC transferred the thin film business supplying display-use flexible copper-clad laminate (FCCL) materials for SK Nexilis to Affirma Capital for 95 billion won. Last year, it completed the sale of the chemical mechanical polishing (CMP) pad business to Hahn & Company for 334.6 billion won, and after a physical split-off, sold the blank mask business to Changzhou Fusion New Material in China and Korea Investment Partners for 68 billion won. It also sold the CMP slurry business to YCCHEM for 11 billion won, moving to wrap up the remaining businesses of SK Enpulse.
Subsequently, in October last year, SKC absorbed SK Enpulse through a merger. Through this, it secured about 380 billion won, including cash and business sale proceeds held by SK Enpulse, and said it would use the funds to reduce borrowing fund and invest in high value-added businesses such as glass substrates.
SKC has also been speeding up efforts to improve its financial structure. On the 12th, it set the final issue price for its rights offering at 99,500 won per share and decided to raise about 1.1671 trillion won. Of the funds raised, 589.6 billion won will be invested in the glass substrate business, with the remainder used to repay borrowing fund.
◇ SK picglobal and SK Nexilis cited as potential sale candidates
In the investment banking industry, the view is that SKC will buy time through the rights offering and then proceed to reduce its financial burden by selling additional assets. On a consolidation basis, SKC posted 496.6 billion won in revenue and a 28.7 billion won operating loss in the first quarter of this year. While the operating loss shrank 73% from the previous quarter, it is still in the red.
Among SKC's assets, the most likely next sale candidate is SK picglobal. In fact, sale rumors emerged last year, but there has been no progress.
SK picglobal is a joint venture in which SKC and Kuwait's state-owned petrochemical company PIC hold 51% and 49% equity, respectively. It produces propylene oxide (PO) and propylene glycol (PG), among others. The industry notes that if SKC completes the sale of SK picglobal, it would effectively mean a complete exit from the petrochemical business.
The market also views SK Nexilis as a potential sale candidate. Although SKC has said it will not pursue a block sale, investment banking industry sources say that even if a sale process begins in earnest, it is more a matter of a lack of obvious buyers than SKC lacking the will to sell.
SK Nexilis, SKC's copper foil subsidiary, was once considered a key pillar of SKC's pivot to new businesses, but profitability pressures have grown as slowing electric vehicle demand coincides with an oversupply of copper foil. SK Nexilis is reducing losses by stabilizing its Malaysia plant and expanding sales of copper foil for ESS, but many say time is needed before a full performance recovery in the copper foil business is confirmed.
Some insiders familiar with internal matters at SK Group have also cited Chinese copper foil maker Ron Dian Watson as a potential buyer for SK Nexilis. SK Inc. invested a total of 380 billion won in Ron Dian Watson between 2019 and 2020 to become the second-largest shareholder, but has been working to sell that equity since 2023. As SK Group has had touchpoints with Watson in the copper foil business, there is an assessment that Watson could emerge as a strategic bidder if SK Nexilis is put up for sale.
However, if a Chinese company steps up as the buyer, the foreign entity of concern (FEOC) rules under the U.S. Inflation Reduction Act (IRA) and approvals from customers in North America and Europe could become variables. There is also the variable that if SKC sells the copper foil business in its entirety, it could be seen as a wholesale revision of the portfolio shift toward secondary-battery materials that it has been pursuing.
SKC's eco-friendly materials subsidiary SK Revo is also mentioned as a candidate. SK Revo is responsible for biodegradable materials such as PBAT. However, as the business has yet to demonstrate material profit contribution, scenarios being discussed include reducing SKC's consolidation burden by attracting strategic investors, converting it into a joint venture, or selling a portion of the equity, rather than a block sale.
Conversely, the glass substrate subsidiary Absolix is widely seen as an asset that needs investment. SKC plans to invest about half of the rights offering proceeds into Absolix's glass substrate business. Glass substrates are also the business SKC is focusing on the most to be revalued as a semiconductor back-end materials company.
An SKC official said, "It is not true that we are pursuing a merger with an affiliate within the group, as some have suggested," and added, "The company is focusing on strengthening the competitiveness of its core businesses and growing new businesses."