Energy-to-telecom conglomerate SK Group said on May 16 it will invest $1 billion in Vietnam’s leading conglomerate in a bid to expand its presence in the Southeast Asian market.

SK Group said it has signed a deal to buy a 6.1 percent stake in Vingroup, with the deal also calling for a strategic partnership between the two in various business opportunities in Vietnam, including infrastructure development and mergers and acquisitions. 

Vingroup is Vietnam’s largest privately run conglomerate in terms of market cap, with its business portfolio ranging from real estate development to automobiles. It posted sales of 1.1 trillion won ($925 million) in the first quarter of the year.

The mega deal is the latest in a series of overseas pushes by South Korea’s third-largest conglomerate in recent years.

Last August, its five affiliates, including SK Holdings and SK Innovation, established a joint entity named SK South East Asia Investment in Vietnam to launch promising opportunities in the burgeoning Southeast Asian market.

By Ram Garikipati and newswires (ram@heraldcorp.com)