SK Group to spin off petroleum and chemical divisions

SK Energy Group Chairman Chey Tae-won has reportedly ordered the spin-off of the petroleum and petrochemical business as a way to improve the efficiency of the company. SK Energy thinks the spin-off is necessary on the grounds that the internal organization of the company and risk management is becoming more difficult, according to the Maeil Business Newspaper. SK Energy plans to hold an extraordinary shareholders’ meeting in the first half of 2010, in which the spin-off of the two sectors will be discussed. Relevant procedures for the spin-off are due to be concluded by June prior to the establishment of a separate main office in China, aimed at strengthening the company’s position in this high growth market. (May 14, 2010)