SEOUL, AJU - South Korea’s third-largest conglomerate SK Group agreed to buy a 6.1 percent stake worth $1 billion in Vietnam’s biggest private conglomerate, Vingroup JSC, to expand its presence in the Southeast Asian nation, which has emerged as a key destination for South Korean business investments.
Through their strategic partnership signed in Hanoi on Thursday, the two groups would jointly invest in new businesses, participate in the privatization of state-owned companies and push for strategic mergers and acquisitions in the Vietnamese market.
Using information and communications technology (ICT), SK Group is pushing for the development of cooperative business models tailored to infrastructure construction and privatization in Vietnam. In September last year, SK purchased a 9.5 percent stake in Masan Group Corporation for $470 million, becoming the largest foreign shareholder in the Vietnamese group.
In recent years, SK and other big South Korean companies have increased investments in Vietnam. SK Group has SK Telecom, SK hynix and SK innovation under its wing.