South Korea’s third-largest industrial company SK Group refuted a rumor stating that it would soon divest investments in Vietnam, and affirmed that the group, on the contrary, is planning to use Vietnam as its business base in Southeast Asia.

An SK Group representative made the rejection recently, saying the rumor was groundless, as the group is working with Vietnamese agencies and large corporations on its long-term business cooperation in Vietnam, according to Money Today, a South Korean-based finance magazine.

Contrary to the rumored divestment, the group is pursuing a plan to make Vietnam its business hub in the region, the representative stressed.

Since 2018, SK Group has established partnerships with many leading Vietnamese corporations, such as Vingroup, Masan, PV Oil, Petrolimex, Imexpharm, and Cuu Long JOC.

The South Korean conglomerate has invested in various fields, including consumer goods, real estate development, and healthcare, pouring about US$2.5 billion into such spheres, with Masan receiving $1.2 billion, the largest investment by the group in Vietnam so far.

There may be some adjustments to the group’s investment portfolio in response to the development of Vietnam’s relevant industries, and the group will continue strengthening its cooperative relationships in the country, a senior official of SK Group said.  

Regarding Masan, the official said SK Group would further cooperate with the retail giant, one of the group’s important strategic partners, in the long term. 

The rumor came as the Vietnamese market has recently encountered great difficulties due to the global economic recession, which resulted in fluctuations in stock prices of many key corporations in the country, according to news site VnExpress.

In such a context, the conjecture has spread that investors began to speculate that SK Group might withdraw from Vietnam, starting with selling all its shares in Masan.

During a business trip to Vietnam last week, chairman of SK Group Chey Tae-won met with Prime Minister Pham Minh Chinh, Chairman of the National Assembly Vuong Dinh Hue, and Minister of Planning and Investment Nguyen Chi Dung to discuss long-term cooperation projects in various fields, including digital transformation, ESG (environmental, social, and corporate governance), and green solutions.

During the meetings, Chey affirmed that Vietnam would continue to be a strategic business partner of the group.

Four years ago, SK Group offered US$30 million to the building of the Vietnam National Innovation Center (NIC) in the Hoa Lac Hi-Tech Park in Hanoi, which was inaugurated on October 28.  

As the third-largest industrial conglomerate in South Korea after Samsung and Hyundai, SK Group is a leader in energy, chemical, semiconductor, and telecommunications industries, and one of TIME’s 100 Most Influential Companies of 2023. 

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