• SKC
  concluded an agreement on June 8 with a local private equity investment firm
  Hahn & Company ··· the KRW 1.6 trillion transaction to be finalized before
  the yearend.

• Intensive
  investment on business model innovation focused on rechargeable battery,
  semiconductor and eco-friendliness···  driving
  the transition to a new company identity.

   

SKC
(President: Woncheol Park) is selling off its film/processing business (hereinafter ‘film business’) to Hahn & Company, South Korea’s top-tier private
equity investment firm. SKC has been promoting business model innovation since 2016
focusing on rechargeable battery, semiconductor and eco-friendliness, and the
Company will set off a journey towards a global ESG materials solutions
business.

SKC
held a board of directors meeting on June 8 and decided to divide and sell its
film business, and, on the same day, the Company concluded a stock sale and
purchase agreement with Hahn & Company. The transaction amounts to KRW 1.6
trillion and includes the sale of SKC’s film business, SKC’s film processing
subsidiary SKC hi-tech & marketing and operations in the U.S. and China. SKC
plans to finalize required procedures including the general meeting of
shareholders and business division to have the transaction closed in Q4 this
year.

SKC’s
film business is engaged in manufacturing products used for advanced IT devices
such as displays and mobiles as well as other products for industrial use. SKC’s
film business has led the South Korean film industry and represents many
first-in-history moments including the first PET film development in 1977 and
first video tape development in 1980. In the 2000s, the business supported
industrial development by shifting its key product to films for display, and
more recent focus has been devoted to advanced products for mobile devices such
as smartphone. The business has been showing an ongoing growth, recording KRW
1.13 trillion in sales and KRW 68.9 billion in operating income last year.

SKC’s
decision to sell off the film business was made to clarify its identity as a
global ESG materials solutions company centered around rechargeable battery,
semiconductor and eco-friendliness. Although the film business is demonstrating
continuous growth in sales and operating income _ base_d on the global
competitiveness, the business is not aligned with SKC’s strategic orientation. It
was therefore determined to sell off the film business to an appropriate buyer that
will further the business growth and development.

Hahn
& Company is the largest private equity investment firm in South Korea
which controls and operates a fund worth approximately KRW 13.5 trillion. Since
the foundation in 2010, Hahn & Company has acquired 30 blue-chip companies
in South Korea to discover new growth engines and was the first to introduce a
‘bolt-on strategy’ in the domestic PE industry to successfully raise corporate
value of the acquired companies through radical reform. Hahn & Company
remained most active in business even during the COVID-19 pandemic by, for
example, closing a deal of around KRW 3 trillion, building upon responsible
business attitude and cordial investor relations. It also has plans for SKC’s
film business to further improve the global competitiveness and develop it into
a company of sustainable growth.

Taking
advantage of the financial resource made available from this deal, SKC will
invest in the business of future growth engine currently in progress as well as
new business areas to be added in the future. Through this, SKC seeks to
clarify its identity as a global ESG materials solutions company. SKC’s has
been making continued efforts to secure financial resources for growth including
a financial collaboration agreement for KRW 1.5 trillion concluded last year
with KDB Bank. Now, this KRW 1.6 trillion deal will be added to SKC’s financial
resources with which SKC can further increase shareholder value and expand
investment activities.

An
SKC executive said, “SKC will establish a business structure focused on
rechargeable battery, semiconductor and eco-friendliness to set a foundation
for Leap & Reap through intensive investment in global expansion and future
growth,” and added, “SKC will take a leap to become South Korea’s
representative global ESG materials solutions company.” [End of _ document_]