SK Innovation Directly Invests '2 Trillion' in SK On... Continuing Battery Growth Momentum

SK On Resolves 2.8 Trillion Won Paid-in Capital Increase
SK Inno Invests 2 Trillion Won, KIC PE Invests 0.8 Trillion Won

Visitors at the SK On booth are examining the displayed NCM9 batteries at 'InterBattery 2022,' a specialized battery exhibition including secondary batteries held last March at COEX in Gangnam-gu, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Jeong Dong-hoon] SK Innovation is directly investing over 2 trillion KRW in SK On's electric vehicle battery business, one of its future new growth sectors. SK Innovation is confident in the growth potential of the battery business and aims to proactively respond to the mid- to long-term increase in battery demand through direct investment, thereby driving an increase in corporate value.

According to SK Innovation's disclosure on the 22nd, SK On has resolved to conduct a paid-in capital increase totaling approximately 2.8 trillion KRW. SK Innovation will invest 2 trillion KRW, and financial investors such as Korea Investment PE will contribute 800 billion KRW to SK On.

SK Innovation plans to invest 1 trillion KRW within this month and the remaining 1 trillion KRW next year. The purpose is to secure investment funds for SK On and to enhance corporate value.

SK Innovation believes that with SK On securing orders from solid customers such as Ford, Hyundai Motor, and Volkswagen, thereby visualizing business expansion, securing investment funds without any setbacks will accelerate growth. Furthermore, direct investment by the parent company is expected to resolve uncertainties in the battery business market and positively impact shareholder value.

Financial investors such as Korea Investment PE will proceed with an 800 billion KRW investment within this year and may additionally invest up to 500 billion KRW in SK On next year. SK Innovation previously disclosed on the 30th of last month that it could raise 1.3 trillion KRW from financial investors including Korea Investment PE, and this investment is a follow-up to that disclosure.

SK On plans to continuously secure investment funds. In addition to Korea Investment PE, there is potential to attract additional external investors, so SK On's long-term financial investor attraction will continue going forward.

SK On is focusing on establishing global production bases in the United States, Hungary, and other locations, and recently signed a memorandum of understanding for collaboration on North American electric vehicle battery supply with Hyundai Motor Group, moving swiftly to secure a leading position in the future electric vehicle market.

Kim Yang-seop, Chief Financial Officer of SK Innovation, stated, "Securing investment funds for SK On is progressing smoothly through various methods such as attracting investors and raising funds via domestic and international policy financial institutions," adding, "Based on this funding, SK On is expected to achieve continuous growth and performance improvement, which will also have a positive impact on SK Innovation's corporate value."

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