SKC is a subsidiary of SK Group, the third-largest multinational corporation in South Korea. Established in 1976, SKC operates in the fields of petrochemicals, semiconductors, displays, and beauty and healthcare materials. It is a cutting-edge materials specialist that actively expands its scope and continuously creates value. SK Pucore, along with SK PIC Global, has been the two main pillars of SKC’s chemical business since 1991, with over 30 years of experience in producing polyurethane raw materials, specifically polyols. SK Pucore, formerly known as MCNS, a joint venture between SKC and Mitsui Chemicals of Japan, was established in 2015 and continued its partnership until 2021. SK Pucore has over 450 customers in five countries and recorded sales of 720.6 billion won and a profit of 32.4 billion won in 2022.

In recent years, SKC has accelerated its efforts to adjust its product structure and business model.

• In the fourth quarter of 2022, SKC sold its film division, film-processing subsidiary SKC hi-tech&marketing, as well as U.S. and Chinese operations to Hahn & Company, the largest private equity investment firm operating in South Korea, for a contract amount of 16 trillion Korean won (approximately USD 9.5 billion).
• In the fourth quarter of 2023, SKC decided in a board of directors meeting to sell 100% stake in SK Pucore, which engages in polyurethane raw material business, to Glenwood Private Equity (Glenwood PE) for 410.3 billion won. The sell-off deal will also include SKC’s optical polyurethane unit, which SKC acquired from Woori Finechem in 2019. SKC plans to complete the transaction by the end of this year through relevant procedures.
• Furthermore, SKC announced to invest 1.8 trillion won to strengthen its capabilities in the semiconductor and secondary battery materials business. SKC is also in the process of acquiring semiconductor test equipment maker ISC for approximately 400 billion won. The purpose of divesting the polyurethane business is to achieve a structural transformation towards a focus on secondary batteries, semiconductors, and eco-friendly materials.

There are four local polyether polyol producers in South Korea, including KPX, SK Pucore, BASF, and KMCI. In recent years, there has been no expansion or construction of new facilities, and the polyether polyol production capacity has been maintained at 750 ktpa. The market has also been relatively stable.

Polyether Polyol Producers in South Korea by Capacity

In mid-October, owing to the maintenance of Ulsan Petrochemical Complex where SK, S-OIL, Lotte Chemical, Hanwha Chemical, and Kumho Petrochemical, among other representative chemical companies in South Korea, are located, propylene oxide and polyether polyol facilities in the complex were shut down temporarily. This maintenance is expected to continue until the end of November and has resulted in a tight supply of chemical products in certain regions of South Korea, leading to an increase in the price of flexible slabstock polyols to around KRW 2,450/kg, which is approximately USD 1,800/MT (as of October 30, with an exchange rate of USD 1=KRW 1,352).