SK Group to Invest 17.5 Trillion Won in New Energy, Technology by 2020

SK Group, which accounts for almost 10 percent of South Korea’s total output, plans to invest 17.5 trillion won ($14.3 billion) by 2020 in alternative energy and new technology to find future sources of income.

SK will spend 4.5 trillion won on new energy including solar cell and biofuels, 4.2 trillion won on environmental infrastructure such as smart grids and water treatment plants and 8.8 trillion won on new technology, the Seoul-based group said in an e-mailed statement today.

The group, which has 77 units including SK Energy Co. and SK Telecom Co., is hoping to benefit from growing demand for alternative energy as companies seek to pollute less and reduce their dependence on oil. The investment will create 42,000 jobs by 2020, the company said.

The parent company of South Korea’s largest crude refiner will also increase investment in natural resources, boosting oil and gas reserves from its own fields to 1 billion barrels by 2015 from the current 520 million barrels.

South Korea’s third-largest conglomerate launched SK China in Beijing today, consolidating all SK units in China to strengthen marketing and sales, according to the statement.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net.

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