SK China, the South Korean conglomerate's Chinese unit, will invest 100 billion won while Hillhouse Capital, an investor in China's biggest technology firms including Tencent Holdings Ltd and Baidu Inc, is expected to invest the remaining 900 billion won in the fund, the report said.

A spokesman for SK Group told Reuters that SK China had decided to invest about 100 billion won in a fund to discover businesses that would help strengthen the company's global competitiveness but declined to elaborate further.

(Reporting by Joori Roh and Ju-min Park; Editing by David Clarke)