SK Chemicals said Thursday that the company’s board of directors has approved splitting its vaccine business division into a new company.

The new company's name is tentatively known as SK Bioscience.

The company said the spinoff of SK Chemicals’ vaccine division is a physical division. The new company will be a wholly-owned subsidiary of SK Chemicals, which will hold 100 percent share in the newly formed company.

SK Chemicals hope the spinoff will help enhance shareholder value through maximizing management efficiency, and strengthening the expertise of its bio-business and attracting foreign investment.

The company decided to enhance its shareholder value by strengthening the expertise of each business divisions, improving management efficiency and transparency in corporate management, and strengthening responsible management at a shareholders’ meeting last year.

With the approval from the board of directors, the new corporation will launch on July 1, after holding a general shareholders’ meeting on June 15.

“SK Bioscience will continue to pursue innovative vaccine development strategies based on state-of-the-art technologies, and will actively seek domestic market leadership while advancing to the global market,” a company official said.