SK Group denies Vietnam divestment rumors

By Tat Dat   November 1, 2023 | 06:41 am PT
SK Group denies Vietnam divestment rumors
The logo of SK Innovation is seen in front of its headquarters in Seoul, South Korea, Feb. 3, 2017. Photo by Reuters/Kim Hong-Ji
South Korea's second-largest conglomerate SK Group has denied rumors of divesting from Vietnam and instead affirmed its long-term commitment to the country.

The company, second in size only to Samsung Group in South Korea, is discussing long-term business partnerships with the Vietnamese government and large local companies in a plan to make Vietnam its business hub in Southeast Asia, a representative of the company told Money Today, a South Korean publication.

Since 2018 SK Group has invested around $2.5 billion in various sectors in Vietnam including retail, property development and healthcare. It has secured deals with the country’s largest conglomerates Vingroup and Masan Group.

Masan Group is its biggest investment in the country at $1.2 billion.

A senior leader of SK Group said that some modifications might be changed to its investment categories in Vietnam.

It considers Masan a key strategic partner, to whom it will continue to find ways to partner long-term, Money Today reported.

Recent rumors of SK Group divesting wholly from Masan have dragged its MSN shares down to the lowest since Oct. 2020 at VND58,200 ($2.37) apiece.

Masan CEO Danny Le has denied rumors of SK Group’s exit in a recent meeting.

SK will maintain a very strategic partnership with Masan, and the two companies are working on a multi-year solution, he said.

"We understand cash is king right now."

SK Group president Choi Tae Won has recently met with senior government leaders of Vietnam to discuss digital and green solutions for long-term partnerships.

He affirmed that Vietnam was a key strategic partner.

The group also announced a $30 million investment in the National Innovation Center to support Vietnamese tech startups.

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