SK Energy Accelerates Platform Business by Establishing an Internal Independent Company

[Asia Economy Reporter Park Soyeon] SK Innovation's petroleum business subsidiary SK Energy is officially entering the platform business by adopting a Company in Company (CIC) system.

The core content of the organizational restructuring announced by SK Innovation on the 3rd is the introduction of the Company in Company system at SK Energy.

SK Innovation explained, "In response to the paradigm shift in the energy industry, we introduced the Company in Company system to continuously develop existing industries and discover new eco-friendly businesses."

Two Companies in Company have been established.

One is the 'R&S' (Refinery & Synergy) Company in Company, which focuses on the existing refining-trading value chain to strengthen business synergy, and the other is the 'P&M' (Platform & Marketing) Company in Company, which aims to grow into a platform company based on the marketing network.

The R&S Company in Company will be concurrently led by Seo Seok-won, the current CEO of SK Trading International, while the P&M Company in Company will be headed by Oh Jong-hoon, head of SK Energy's B2C marketing division.

SK Energy views the global decline in oil demand not as a temporary effect caused by COVID-19 but as stemming from structural changes in the energy market, and is shifting its oil-centered business structure toward eco-friendly and platform-centered operations.

Earlier, SK Energy amended its articles of incorporation to add "telecommunication sales (brokerage) and e-commerce related businesses" as company business purposes, laying the groundwork for entering the platform business. The platform business refers to operations that act as intermediaries connecting suppliers (businesses) and consumers.

In June this year, SK Energy launched the integrated vehicle management platform "Muffin" by partnering with companies specializing in car wash and parking services. Through this platform, the company plans to provide a fuel service platform to customers using SK Energy gas stations and expand service areas to include car wash, parking, and maintenance.

Meanwhile, SK Innovation has expanded its ESG-dedicated department by upgrading the organization responsible for "social value" to the "Environment, Social, and Governance (ESG) Strategy Office" to strengthen the execution of its company vision, "Green Balance 2030."

"Green Balance 2030" is a vision SK Innovation established last year, aiming to reduce negative environmental impacts from business activities to zero by 2030.

Kim Jun, CEO of SK Innovation, said, "This organizational restructuring and personnel changes are based on the financial story of achieving Green Balance and ESG management that SK Innovation must accomplish. Next year will be a year to not only overcome the current crisis but also vigorously promote new growth businesses centered on eco-friendliness to complete 'Green Balance 2030.'"

Additionally, the "Battery Research Center" has been expanded to the "Battery Research Institute," strengthening research and development in the existing battery business.

Along with the organizational restructuring, SK Innovation also revamped the rank system of its members.

To foster a horizontal corporate culture and innovate work methods, SK Innovation decided to abolish existing ranks and titles such as assistant manager, manager, and senior manager, unifying all members' ranks under "PM" (Professional Manager).

The new rank system will be implemented starting January 1 of next year.

This content was produced with the assistance of AI translation services.