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SK Networks (CEO: Jung Man-won) pushes ahead with its plan to make a foray into the Chinese market concerning gas stations and highway rest areas.

On February 23, the Company signed a strategic alliance contract with the Chonche Group of China for joint promotion of the automotive aftermarket business, including Speedmate (car repair service). A wing of Chem China, the Chonche Group has a total of 17 affiliates engaged in carmaking, parts/accessories and car repair service businesses. The Chem China is a leading business group of China with a total of more than 100 affiliates. It was launched as a result of the merger between lan Xing Group and Haohua Group in 2003.

SK Networks plans to establish a joint venture with the Chonche Group and open the first Speedmate shop in China in the first half of the year. It plans to increase the number of Speedmate shops to more than 10,000 and launch gas stations and highway rest areas in that country based on the result of test marketing.

The Company sees huge potential related to the automotive aftermarket business in China due to the sharp increase in the number of vehicles in that country, which is not properly supported by a sufficient number of car repair or other related businesses. .

An SK Networks official said, “Our Speedmate business in China will play the role of a stepping-stone for our effort to advance into the Chinese market in other sectors. We will establish a relevant plan from a long-term perspective.”

In 1997, SK Networks established a joint venture general trading company with a local business in Shanghai, the first of its kind established by a Korean business in China. At present, its exports to China stand at $1.6 billion a year.

It is expected that the success story of SK Networks in China will be an example that other domestic businesses looking for a chance in that country can benchmark.

A business watcher said, “The success story of SK Networks illustrates a new role for domestic general trading companies. They can advance into overseas markets in specific business sectors based on their accumulated know-how, talented manpower, and overseas business networks.” 

Another business watcher said, “Following Mr. Jung Man-won’s inauguration as CEO, SK Networks appears to have built a solid base from which to go forward by seeking synergistic effects in existing business sectors through integrated marketing and making positive efforts to explore overseas markets.