[영문] Korean Conglomerate SK Not Immune to Global Economic Downturns

Photo: The Headquarter of SK Group

The source in SK group, one of top corporations in Korea, said that SK group is neither immune to nor free from the global economic crisis, so it does need to have back up plan for the worst-scenario.
 

The economist at Think Tank SK Management Economic Institutes Shin Jun Sung released the report called "SK not immune to global economic crisis", saying that the current financial meltdown is quite a lot different from the financial crisis in 1997 attacking the countries in Asia.
 

He highlighted that the uncertainty has grown into the market ever since before and that Korean won depreciation and fluctuations in oil price have also affected badly the Korean economy.
 

"Now that the real economy has been batted so badly by the influence of insecurity in the global financial market, SK cannot escape from the vicious cycle in the world economy and should be well aware of the current circumstance by having backup plan for the worst scenario," he added.
 

He particularly warned that the 'Energy' and 'Communication' industries that are the two major economic sources for SK group are highly likely to shrink over the next few years.
 

What he analyzed was that recession would bring about down in employment and income and more people would take public transits rather than their own cars, therefore the fuel demands will go down which means the drop in SK energy’s sales.
 

He said that now is high time for SK to innovate the business model in order to have positive results once the recession disappears.
 
By Kirim Shin
신기림 기자 kirimi99@ajnews.co.kr
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