South Korea’s third-largest conglomerate SK Group has announced a string of investment plans in China amounting to 2.4 trillion won ($2.16 billion) in recent days to position itself for improved business conditions upon easing in tensions from the row over the Terminal High Altitude Area Defense (THAAD) anti-missile system.

SK Hynix Inc., the world’s second-largest memory chipmaker, said on Thursday that it would acquire 4,754,868 shares of SK China Co. for 251.8 billion won. The decision was made to prepare financial resources in advance to secure investment business in China at an appropriate time, the company said.

In prior to the announcement, other affiliates including SK Holdings and SK Innovation Co. on Wednesday announced plans to invest in its subsidiary in China. SK Holdings said in a regulatory filing that it will acquire 4,940,000 shares of SK China at 261.8 billion won, and SK Innovation 7,980,000 shares at 422.9 billion won. The investments vowed by SK Holdings and SK Innovation add up to 684.7 billion won.

On the same day, SK Hynix also said in a regulatory filing that it will make a 1.1 trillion won investment in SK Hynix Semiconductor China Ltd. - its production unit in China - a plan that will increase its stock ownership from the current 90.26 percent to 93.4 percent. The investment will be made incrementally over the next three years, according to the company.

On Tuesday, the board of directors of SK Holdings decided to buy 11.77 percent new shares in e-Shang Redwood Group (ESR), China’s second-largest logistics firm for 372 billion won.

The string of large-scale investment decisions by SK Group is seen as a move to get a head start in business once the currently strained Korea-China ties improve.

Seoul’s decision to deploy U.S. THAAD system on its soil last year has deteriorated its relations with Beijing.

An unnamed official from the conglomerate circle said that SK Group’s business in China is faced with growing challenge due to the THAAD row with China, which has affected SK Global Chemical Co.’s failed acquisition of Shanghai SECCO Petrochemical Co. and suspended operations of SK Innovation’s battery production plant in China. The official added that SK Group Chairman Chey Tae-won’s more aggressive bet on China will send a positive signal to the Chinese government.

By Moon Ji-woong

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