'From Carbon to Green' SK Innovation Changes Its Identity

Kim Joon, President of SK Innovation, is announcing the 'Financial Story' in which SK Innovation, approaching its 60th anniversary, will completely transform its identity from a carbon business to a green-centered business at the 'SK Innovation Story Day' held at the Conrad Hotel in Yeouido, Seoul on the 1st.

[Asia Economy Reporter Kim Hyewon] SK Innovation, which was launched in 1962 as South Korea's first oil refining company and has established itself as an oil refining and chemical company, has made a bold declaration to completely change the company's identity from 'Carbon to Green.' To this end, it plans to invest a total of 30 trillion won by 2025 to expand the proportion of 'green' assets to 70%. Based on the order backlog of ‘1TWh (terawatt-hour) + α’ secured in the battery business, a core of the eco-friendly industry, the company aims to make the green business a new growth axis and create future strategies. It also hinted at the intention to spin off the battery business, currently a business division, into a separate corporation.

On the 1st, SK Innovation held a ‘Story Day’ at the Conrad Hotel in Yeouido, Seoul, attended by over 200 domestic and international market stakeholders both online and offline, including President Kim Jun and Chairman of the Board Kim Jonghun, where it announced this plan. This year’s Story Day is a follow-up to the innovation direction first presented in 2017 and the execution strategy unveiled in 2019, revealing concrete plans for completing innovation. ▶Related article on page 3

The financial story revealed by the management on this day centers on the transformation into a company operating green-centered businesses rather than carbon, one year ahead of its 60th anniversary, under the theme 'Carbon to Green.' The strategy involves strengthening the green portfolio centered on batteries, including separators and used battery recycling, converting existing businesses into eco-friendly business models such as plastic recycling, and achieving early net zero greenhouse gas emissions through three major strategies.

The core of the green growth axis is the battery business, which currently has an order backlog exceeding 1TWh. This is about 17 times the 60GWh level when SK Innovation announced in May 2017 that it would grow batteries as a future business. Converted to Korean won, this amounts to over 130 trillion won. Ji Dongseop, head of SK Innovation’s battery business, said, "By the end of next year, we will rise to third place globally in monthly sales volume." SK Innovation plans to grow related businesses such as separators and used battery recycling alongside the rapid growth of the battery business.

The existing oil and chemical business, which accounts for more than 60% of the company’s assets, will be transformed into an eco-friendly production system, including 100% recycling of waste plastics. This is the so-called 'Green Transformation' strategy. To this end, the company is promoting plastic recycling businesses such as urban oil field projects that convert waste plastics back into oil and plans to develop carbon-neutral business models.

President Kim emphasized, "The ultimate goal pursued by SK Innovation’s green strategy is to leave no footprint behind regarding the use of fossil fuels." He added, "We plan to invest a total of 30 trillion won, more than double the investment of the past five years, by 2025," and stated, "We will increase the proportion of green assets from the current level of 30% to 70%."

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