SK Corp. Acquires
Incheon Oil Refinery
The acquisition will raise SK's refinery capacity to 1.1 million barrels per day as the fourth largest oil refinery in the Asia-Pacific area

SK Corp. has signed a deal to take over the embattled Incheon Oil Refinery, a move designed to establish a bridgehead for exporting oil products to China.
The agreement was inked by SK Corp. at the SK Corp. headquarters on December 16 with Chairman Chey Tae-won, SK Corp. CEO Shin Hun-chul and Kim Jae-ok, the court-appointed administrator of Incheon Oil Refinery.
The signing of the deal came after SK Corp. decided on its participation in increasing 1.6 trillion won in paid-in capital and the acquisition of 1.44 billion won worth of corporate bonds following the inking of an MOU and its audit.
SK Corp.'s acquisition of Incheon Oil Refinery will allow the nation's largest oil refinery to raise its daily oil refinery capacity to 1,115,000 barrels, emerging as the fourth largest one in the Asia-Pacific area and establish a bridgehead for China, a market where the demand for energy is on a sharp rise.
SK Corp. Chairman Chey said in his speech during the ceremony, "SK Corp. has pushed its bidding for taking over Incheon Oil Refinery because it is our conviction that we could raise its corporate value by capitalizing on SK Corp." accumulated know-how and management techniques with the goal of developing the corporation into a major player in the Asia-Pacific region, and I hope that Incheon Oil Refinery will become a company with a competitive edge capable of maintaining a sustainable development by sharing SK's management philosophy and putting them into practice."Incheon Oil Refinery has been under court receivership since March 2003 after it went up its belly in 2003.
SK Corp. is to make the payments of the fund for buying Incheon Oil Refinery. The acquisition procedure will be completed by March 2006. nw

SK Corp. executives, including SK Group Chairman Chey Tae-won. celebrate after signing a deal to take over Incheon Oil Refinery on December 16.