The logo of SK Group is seen in front of a building in Seoul, South Korea, Feb. 3, 2017. Photo by Reuters
South Korean conglomerate SK Group has reclassified its stakes in Vingroup and Masan Group in its latest annual report as it considers fully divesting from both Vietnamese firms.
The stakes were listed as assets held for sale in SK’s recently published 2024 annual report, indicating that SK still owns the shares but plans to divest from both Vietnamese groups.
Both investments, including a 6.1% stake worth KRW549 billion (US$374.5 million) in Vingroup and a 9.2% stake worth KRW419 billion in Masan Group, were previously classified as investments in associates at the start of 2024.
SK retains a 4.9% stake in The CrownX, a subsidiary of Masan, but lowered its book value by 3.5% to KRW367 billion.
Earlier this year, SK’s subsidiary SK Investment Vina II registered to sell more than 50.8 million Vingroup shares, reducing its stake in the Vietnamese firm to 4.72%.
Vingroup said SK’s divestment was part of its strategy to restructure its international investment portfolio but it remained confident in the Vietnamese market and Vingroup’s diverse operations.
Last September, Masan Group spent $200 million to reacquire a 7.1% stake in WinCommerce from SK.
Two months later, SK sold 76 million Masan shares, lowering its ownership in the firm to 3.67%.
At the time, Masan said SK was optimistic about Vietnam’s consumer market and Masan’s growth trajectory and profitability.
SK Group, the third-largest conglomerate in South Korea after Samsung and LG, began investing in Masan and some of its subsidiaries in 2018.
It became Vingroup’s strategic partner in 2019 after investing $1 billion for a 6.1% stake in that firm.
Over the last two years, South Korean media has frequently reported that SK is restructuring its investments, aiming to collect about $720 million from the endeavor.
Investors have speculated that SK might exit Vietnam, beginning with its divestment from Masan, but the company has denied these rumors.
SK has said it is discussing long-term business cooperation with Vietnam’s government and major firms, with plans to make the country its “business hub in Southeast Asia.”
