SK Group has selected alternative energy as a new business area to lead its future growth, eyeing forthcoming changes to sweep the global business landscape in an era of global warming.

Officially announcing “new energy” as its next growth engine Wednesday, SK said it has drawn up a special committee, led by the chief executive of SK E&S, to lead its foray into the emerging segment.

New energy refers to alternative forms and sources of energy other than conventional fossil fuels. Alternative energy includes diverse types of renewable energy generated through sustainable and eco-friendly methods. 

“As information and communications technology and energy have been quickly merging for development of new energy, both traditional energy companies as well as information technology firms have jumped into this segment,” said SK Group in a statement.

“We plan to establish diverse partnerships with not only renowned foreign companies, but also local small and medium enterprises.”

Yu Jeong-joon, chief executive of SK E&S, has been named the first chairman of the inaugural SK Global Growth Committee, established under the SK Supex Council, the group’s top decision-making body.

The committee will lead the way in building mid- and long-term agenda items for the group’s new energy business while establishing synergies with and offering information to SK affiliates that have already dipped their toes into this new segment.

SK said its new business direction reflects the group’s drive to take an early lead in the newly emerging industry and aligns with the government’s initiative toward new energy development as being of foremost economic importance.

Last week, SK’s top leadership, including group chairman Chey Tae-won, held meetings with global energy companies and participated in various sessions related to alternative energy at the 2016 World Economic Forum in Davos, Switzerland.

Sohn Ji-young (jys@heraldcorp.com)