[THE INVESTOR] SK Group(Chairman Chey Tae-won), the nation’s third-largest conglomerate, is withdrawing from its money-losing solar power business conducted by its semiconductor and display material unit SKC Solmics.

SKC Solmics, which produces wafers for solar batteries, said Aug. 23 it will sell off related production equipment to Wongjin Energy, Woongjin Group’s solar power unit, for 35.5 billion won (US$31.7 million), about 16.95 percent of its total asset. The deal will take effect from Oct. 20. 



“With the sell-off, we are suspending solar power business to focus resources on our flagship fine ceramic business,” the company said in a regulatory filing. “We expect to improve sales and profits.”

SK Solmics, affiliated with SK Group’s high-tech material unit SKC, entered the solar power market in 2010, but has been losing money in recent years. Last year, the company posted a net loss of 52.5 billion won in solar power business alone, despite its upbeat chip material sales that saw 11.3 billion won of net profit.

By Lee Ji-yoon (jylee@heraldcorp.com)