SK, KKR to Launch 2 Trillion Won Renewable Energy Firm

SK Inc., the holding company of South Korea's SK Group, is partnering with global investment firm KKR to launch a new renewable energy enterprise, poised to become the nation's largest in the sector with an estimated valuation of 2 trillion won (approximately US$1.4 billion).

The agreement involves KKR's funds acquiring a 51% stake in a consolidated renewable energy entity, while SK Inc. will secure a 49% share through an investment of roughly 1 trillion won. This strategic move allows SK Group to raise substantial capital for new investments without increasing its financial burden, while leveraging KKR's extensive experience in renewable energy.

Currently, SK is in the process of selling its renewable energy assets from affiliates such as SK Innovation, SK ecoplant, and SK Discovery to KKR. The newly formed company, tentatively named HoldCo, is expected to officially launch by the end of this year.

This joint venture has ambitious expansion plans, aiming to increase its renewable energy capacity from the current 1.7 gigawatts (GW) to 10 GW by 2031. This capacity is equivalent to powering 100 large-scale, 100-megawatt data centers continuously. The company anticipates playing a crucial role in supplying clean energy to major national initiatives, including the government's 'three mega-projects' focused on semiconductors, AI data centers, and physical AI, as well as global semiconductor manufacturing lines.