(Press Release 2001.4.2) SK chemicals has acquired a stake in DongShin Pharmaceutical Co., Ltd.SK chemicals has recently acquired DongShin Pharmaceutical Co., Ltd - a specialist in vaccines and blood derivatives products 쭯 by snapping up 1,016,464 common stocks in the pharmaceutical company for 11.6 billion won. The stocks were acquired from KTIC (Korea Technology Investment Corporation) and KTB (Korea Technology & Banking) on the off-board market in March 31, allowing SK to rise to the surface as the largest stockholder thanks to its 21.4% stake. The acquisition of stakes in DongShin Pharmaceutical has strengthened the infrastructure and networks of SK chemicals in the “Bio” arena, under the strategy of intensive support for 「Chemicals/Resins」,「Fine Chemicals」,and「Life Science」 as core businesses for the future. These goals have crystallized following the separation of the Polyester synthetic fibers division last November.SK chemicals has decided to establish a「joint management system」 with Hanmi Pharmaceutical, for the management of DongShin Pharmaceuticals in the future. They are planning to maximize company value through the creation of synergy in the management of DongShin, by forming a「Strategic Alliance」relationship with Hanmi Pharmaceutical and maintaining a close「cooperation relationship」with the firm. Hanmi has been the existing largest stockholder of DongShin and the leading company in the domestic pharmaceutical industry, thus it holds vast quantities of management know-how and well-formed professional networks.This new「joint management model」is expected to stir up fresh impact in a domestic pharmaceutical industry that has been gravely withering over market saturation by more than 300 companies, overlapping investment, and excessive investment. Also, it is expected to provide a momentum of serious restructuring measures to the domestic pharmaceutical industry 쭯 an unstable environment in which hundreds of pharmaceutical companies are randomly established to practice cutthroat competition. This corporate forum currently depends only on price competition, with almost the same composition of products. Therefore SK chemicals, which in 1999 produced the first medical drug ever to be developed in Korea (the world’s first 3rd generation platinum complex anticancer drug, Sunpla), established a firm foundation to grow into a company specializing in Life Science. It is planning to support traditional pharmaceuticals - such as natural substances 쭯 as well as synthetic pharmaceuticals through the Life Science Research Center and SK Pharmaceuticals, and it is also planning to intensively support a Bio-related high-tech life science area. This latter endeavor will be mediated through In2Gen, a R&D specialized venture company established last July, and through DongShin Pharmaceutical, which has been specializing in Bio-related blood plasma products.