[ 5 Nov: updated to correct Mr. Jeon’s name. ]

Dear fellow shareholders,

Metrica was pleased to receive, earlier this month, a letter via registered mail from SK Chemical’s CEO and Representative Director, Mr. Jeon Kwang Hyun.

In it, Mr. Jeon expresses the company’s commitment to continue efforts to enhance the shareholder value of SK Chemicals.

He acknowledges Metrica’s suggestion to sell shares of SK Bioscience and states that the board will consider this if they “believe there is a need upon considering various relevant factors, such as the impact of the sale of the share[s] on the company’s value and shareholder value, timing of the sale, impact to capital market[s], etc., in a comprehensive manner…” (rest omitted).

Mr. Jeon also notes that any such actions will be publicly disclosed in a timely manner in accordance with the applicable laws and regulations.

Metrica cautiously welcomes Mr. Jeon’s response, as well as the company’s subsequent announcements of a share bonus issue, new dividend policy and sale of the PPS business.

These words and actions represent positive first steps towards the development of enhanced shareholder value, in Metrica’s opinion.

Nevertheless, Metrica still believes that ultimately, more measures, up to and including a partial sale of SK Bioscience shares, will be needed to reduce the share price’s significant discount to net asset value.

Since Metrica published its open letter in early September, hundreds of minority shareholders have emailed their support, with many of them also expressing extreme unhappiness over the standard of SK Chemicals’ governance in recent years.

Metrica looks forward to confirming that the recent actions by the company represent the start of a genuine shift towards more minority shareholder-friendly practices which in Metrica’s view would significantly enhance the long-term value of SK Chemicals for the benefit of all.

Best regards,

Damian L. Edwards

Damian L. Edwards
Chief Investment Officer
Metrica Partners Pte. Ltd.