Jokyungmok, SK Energy President, "Active Response to Carbon Emission Regulations... Adapting to Mobility Paradigm"

Strengthening Eco-Friendly Management in Refining Business
Emphasizing Adaptation to Mobility Paradigm Shift

[Asia Economy Reporter Hwang Yoon-joo] Cho Kyung-mok, President of SK Energy, stated this year’s management strategy as "actively responding to carbon emission regulations and strengthening eco-friendly management (Less Carbon, More Green)."

In his New Year's address on the 6th, President Cho said, "The current market environment is facing demands to respond to industrial paradigm changes and carbon emission (Carbon Risk) issues." SK Energy plans to actively respond to these changes and promote a deep change through the operation of two CICs (Company in Company): R&S (Refinery & Synergy) and P&M (Platform & Marketing).

Let’s actively respond to changes through 'Deep Change'

President Cho expressed a sense of crisis, saying, "Since the Paris Climate Agreement, changes in the Energy & Mobility Paradigm have acted as a hegemony accelerating the decline in oil demand, making it difficult to predict the oil peak (peak oil demand). Furthermore, if we fail to present a blueprint for responding to the carbon risk in the oil business, the oil business may be rapidly rejected by the market." He emphasized, "It is time for SK Energy’s deep change to actively respond to the upcoming environmental changes."

As the first step toward achieving deep change, Cho Kyung-mok pointed to the full-scale development of the Financial Story and said, "Launching the two CICs, R&S and P&M, this year is intended to serve as the two wings driving deep change under the 'Less Carbon, More Green' policy. Through these, we will adapt to and proactively evolve and develop with changes in the Energy & Mobility Paradigm."

Enhance the sustainability of the refining business and maximize business synergy through the R&S CIC

SK Energy introduced the CIC system through an organizational restructuring last December. At that time, the industry viewed it as a strategic move to continuously develop the existing refining-based business and discover eco-friendly and future new businesses. The R&S (Refinery & Synergy) CIC, one of the two pillars of CIC, was interpreted as aiming to strengthen business synergy in the refining-trading value chain.

President Cho’s mention of the direction of R&S in his New Year's address aligns with these market expectations. He said, "R&S plans to enhance the sustainability of the refining business and prepare for greater growth and development by maximizing synergy between the existing refining business and SK Trading International through integrated operation of the value chain from crude oil to production and export."

Promote the P&M CIC to provide eco-friendly energy solutions

SK Energy is expanding its eco-friendly business areas into various fields to create a sustainable future by developing eco-friendly power generation businesses using refining-related platforms. The launch of the P&M CIC aligns with this direction.

President Cho Kyung-mok said, "The P&M CIC aims to become a platform that provides eco-friendly energy solutions based on petroleum marketing infrastructure. We plan to maximize synergy with SK Energy’s existing network and infrastructure and accelerate the transition to an eco-friendly company through energy solutions and platform new businesses."

Additionally, President Cho expressed expectations and confidence in SK Energy’s transformation by comparing dinosaurs and sharks. He noted that while dinosaurs perished relying only on their large size and heaviness, sharks survived by quickly sensing changes and continuously evolving. He emphasized that SK Energy’s members have the spirit to overcome difficulties and have proven world-class competitiveness by being responsible for Korea’s energy for over 60 years and playing a vital role as the main artery of the national economy.

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