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SK Networks has become the focus of attention by posting a record performance, i.e. an earning surprise for six straight months between the third quarter of 2003 and the fourth quarter of 2004. The Company is under creditors’ joint control. Market watchers say that such a robust performance is a “rare” thing for a firm under creditors’ joint control or even for one under normal operations.

In 2004, SK Networks posted KRW13, 614.8 billion in sales and KRW421.2 billion in ordinary profit, an increase by 7.6% and a whopping 466%, respectively, from 2003.

SK Networks’ continual solid performance is interpreted as a result of establishing a business structure enabling high profit, faithful execution of the self-rescue plan, and positive marketing activities, under the firm’s restructuring plan set up in 2003. In 2004, the Company achieved 80% of the self-rescue plan it was originally supposed to achieve by the end of 2007, thus meeting the requirement for early graduation from debtor status. In addition, it has faithfully executed the self-rescue plan, including voluntary sale of non-business assets, outside the promises made to the creditors.

Looking at its overall business performance, the Company launched a new business structure focusing on international trade in the energy, chemistry and iron & steel sectors in which it has secured solid competitiveness, as well as the development of products with high added value, while making forays into strategically important markets, including China and the Middle East. As a result of making such intensive efforts, its overall performance result in the first half of 2004 was higher than that of the entire year of 2003.  

As for the Company’s energy and information/telecom businesses, they posted improvement in their performance, amid stable business activities despite the serious recession in domestic consumption, as a result of making strenuous efforts for the enhancement of service levels and product quality and carrying out customer-oriented marketing activities.

Business watchers also say that the Company’s efforts made for databased integrated marketing particularly in the newly launched customer business sector went a long way in enhancing its overall customer management capability.

In 2005, SK Networks plans to pour company-wide efforts into laying the groundwork for future growth and continue the smooth progress made in the normalization process on the back of solid performances in exiting business sectors.

The Company also plans to focus on real-time mobile DB marketing in connection with its newly launched integrated marketing in domestic operations, while making a foray into the Chinese market with its Speedmate (car repair service) and gas station businesses. Concerning international trade, it plans to strive to reinforce existing relations with long-term and important customers, diversify trade methods, including tripartite trades, and explore new markets, in an effort to post another good year in business as they did in 2004. 

Business watchers say that SK Networks will do well in 2005 as in 2004 with its high-profit business structure and through efforts to find new growth engines and by making forays into overseas markets.