SK Innovation; expand its empire to Biodiesel business

By Park Sae-jin Posted : April 22, 2011, 09:34 Updated : April 22, 2011, 09:34
Smaller Biodiesel companies are expressing disapproval of SK Innovation’s possible expansion into Biodiesel field. GS Caltex, another major company in oil enterprise, has decided to jump into Biodiesel business previously.

Since S. Korea government is focusing on co-existing of all companies, if conglomerate in oil-refining business build new company, or merge other oil-refineries, it will go against the whole purpose of the government and also it will eventually lead smaller scale businesses to close due to heated competition.

This SK’s action can also result in creating “unfair trade” in oil market.

GS Caltex is now all ready to begin their Biodiesel industry, GS Bio.

Experts are concerned that if SK Innovation joins Biodiesel field after GS Caltex, it will end the lives of smaller Biodiesel companies due to major companies’ greater capital assets. Also, since they are the main oil-refineries in S. Korea, they possibly could use their power in market to merge and close smaller companies.

(아주경제 권지혜 기자)
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