Conglomerate denies reports on selling SK Securities to SK C&C


SK Group remains undecided despite the fast-approaching deadline for complying with fair trade laws dictating that the group divest itself of stakes in SK Securities Co.

On Tuesday, the group denied a Yonhap News Agency report that it had decided to sell SK Securities shares to the IT services provider SK C&C if the revised bill is not passed.

The news agency had reported that the group had decided on the course of action quoting an unnamed “high-level” official within SK.

“The report that the group has decided to sell SK Securities to SK C&C if the revised fair trade bill is not approved is not true,” SK Group said in an emailed statement.

“As there is still time until the extraordinary session of the National Assembly at the end of the month, SK is monitoring the developments, at present no decision has been made regarding the sale of SK Securities have been made.”

Under the current Monopoly Regulation and Fair Trade Act, a non-financial holding company is unable to hold stakes in a financial company.

SK Group or SK Holdings Co. was given four years of a grace period, which ends on July 2, to sell its shares in SK Securities.

At present SK Securities’ largest shareholder is SK Group’s trading arm SK Networks with 22.71 percent, followed by SKC which holds 7.73 percent.

Although a revised version of the bill allowing such a shareholding structure was submitted to the National Assembly in April 2009, the question of whether it will be passed remains uncertain.

While the group is maintaining that its official position is undecided, market watchers have speculated for some time that selling SK Securities shares to SK C&C is the only way the group can maintain the current shareholding structure while meeting fair trade laws.

SK C&C holds 31.8 percent of SK Holdings, but is not officially part of the holdings company.

In addition, with SK Group chairman Chey Tae-won holding 44.5 percent of SK C&C, the company is regarded by many to be the only choice if SK Group is to remain in the finance sector while leaving Chey’s control over SK Group companies unchanged.

By Choi He-suk (cheesuk@heraldcorp.com)