SK Hynix liquidates its Shanghai subsidiary, 17 years after entering the business = South Korean report

SK Hynix, a major semiconductor company, has been liquidating its sales corporation in Shanghai, China since the October-December period of last year. The company plans to centralize its sales functions in China in Wuxi, where its semiconductor factory is located.
The Shanghai corporation was established in 2006, and in 2018 was the largest sales corporation in China. Annual sales in 2018 were 7,291.3 billion won (approximately 816,888,220,000 yen),
Net profit was 49.6 billion won (approximately 555.698 million yen). Meanwhile, the Wuxi corporation was established in 2010. Last year, annual sales were 7,920.7 billion won (approximately 887.4 billion yen), and this period
Net profit was 86.5 billion won (approximately 9,691.11 million yen), but the results of the Shanghai subsidiary have not been disclosed since 2019. In the industry, the reason for the liquidation of the Shanghai corporation is that the company's sales within China were
This is believed to be because the company is centered in Wuxi City, so there is no need to set up sales corporations in other areas. Furthermore, the factory in Wuxi is a core base that manufactures approximately 40% of the company's total DRAM production.
There is. By integrating production and sales bases into one former company, the company expects to be able to streamline inventory and organizational operations. We have already integrated many functions, such as transferring employees from the Shanghai corporation to the Wuxi corporation.
ing. Professor Hwang Yong-sik of Sejong University's School of Business said, ``Having sales and production bases in the same region is ideal for creating synergistic effects.It can also be expected to reduce logistics costs and other costs.''
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