Sang-kyu Park, SK Inno President: "Comprehensive Structural Reform Across All Business Areas"

After SK Inno's General Meeting of Shareholders on the 28th, during the 'Dialogue with Shareholders'

Park Sang-gyu, President of SK Innovation, is speaking at a dialogue with shareholders held on the 28th at the SK Seorin Building in Jung-gu, Seoul. Photo by Jung Dong-hoon

Park Sang-kyu, President of SK Innovation, stated, "This year, we will seek new opportunities through a comprehensive overhaul of all business areas to overcome the increasing external environmental uncertainties."

At the 'Dialogue with Shareholders' held on the 28th at the SK Seorin Building in Jongno-gu, Seoul, President Park said, "It will be a year to prepare for a new leap forward by strengthening our fundamentals." Following the regular general meeting of shareholders, SK Innovation held the 'Dialogue with Shareholders' for the second consecutive year to communicate with shareholders about management issues.

Kang Dong-soo, Head of Strategy and Finance at SK Innovation, and Choi Young-chan, Chief Administrative Officer (CAO) of SK On, presented the 2024 strategic directions for SK Innovation and SK On. This year, SK Innovation plans to reassess its overall strategic direction from an efficiency perspective and focus on establishing a stable business and financial structure.

Regarding the recent stock price slump, Kang Dong-soo explained, "Although SK Innovation affiliates are generating good cash flow in the oil and lubricant industries, this is not properly reflected in the stock price. Realistically, the current stock price is heavily influenced by the secondary battery sector, but demand in the electric vehicle market has been sluggish since the second half of last year." He added, "The company expects that the electric vehicle market will recover as early as the second half of this year, or at least by next year, which will improve SK On's profitability and help SK Innovation's stock price recover."

At the shareholders' meeting, Kim Joon, Vice Chairman of SK Innovation, responded to a shareholder inquiry about SK On's listing plan, saying, "Although we cannot definitively set the timing of the listing yet, it is a prerequisite that SK On's performance is on track," and "The listing should occur at a time when SK On's value can be most recognized."

He explained, "The promised IPO timing to external investors is the end of 2026, but depending on circumstances, the listing timing can be adjusted by one to two years through consultation with investors."

Vice Chairman Kim added, "The listing must be completed by 2028 at the latest. If the market sufficiently recognizes the value before 2026, it is appropriate to proceed with the IPO promptly, which will also benefit SK Innovation shareholders."

Regarding the recent poor performance of SK Innovation's stock price, Vice Chairman Kim said, "First, I apologize that the stock price is far below our expectations and those of our shareholders," and added, "We must deeply consider whether the management has made mistakes."

Meanwhile, SK Innovation held its 17th regular general meeting of shareholders and a board meeting at the SK Seorin Building in Jongno-gu, Seoul, where Park Sang-kyu was appointed as the new CEO of SK Innovation. At the shareholders' meeting, the following appointments were approved by shareholders: ▲Park Sang-kyu as inside director ▲Kang Dong-soo as inside director ▲Jang Yong-ho as other non-executive director ▲Lee Ji-eun as outside director and audit committee member ▲Baek Bok-hyun as outside director and audit committee member.

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