SK Holdings Co., the holding entity of South Korea’s third largest conglomerate SK Group, will simplify its name as SK Inc. and governance structure to keep its business focused on new materials, bio, green and digital fields, while divesting assets in non-core areas.

“We will radically simplify our business portfolio,” said its CEO Jang Dong-hyun in video conference with investors on Monday.

The investment arm of SK plans to secure 46 trillion won ($41 billion) over the next five years – 16 trillion won through sales of businesses incongruous to the group’s environmental, social and governance (ESG) agenda, 20 trillion won through IPOs or sale of minority stakes and another 10 trillion won or more from outside investors, he specified.

He envisions bolstering the company’s stock value by more than seven times by 2025 for a market value of 140 trillion won.

In the material segment, SK will focus on semiconductors and electric vehicle (EV) materials, including EV battery parts like copper foils and separators.

In the bio sector, where its affiliate SK Bioscience scored big IPO debut, the company will expand partnerships with smaller bio firms with an aim to shorten drug development periods to five years from the conventional 15 years.

Hydrogen will be at the center of the company’s “green” investments, he said. The company will work on building an eco-friendly hydrogen ecosystem to generate 280,000 tons of hydrogen energy annually by 2025. It also plans to expand its presence in the Asian hydrogen market by setting up a joint venture with Plug Power, the leading global provider of hydrogen fuel cell solutions.

In terms of digital sector, it will focus on artificial intelligence technology, building data centers and 5G.

The plan sat well with investors as the stock finished Tuesday up 4.66 percent at 281,000 won.

By Choi Keun-do and Lee Soo-min

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