SK Chae Jae-won to Lead Battery Division? SK On Board Meeting This Month in Focus

SK Chae Jae-won Senior Vice Chairman, Possibility of Management Return
Excluded from SK Inno and E&S Executive Appointments
Focus on New Energy and Battery Business Development... Appointment Interest

Choi Jae-won, Senior Vice Chairman of SK Group, delivering a congratulatory speech at the completion ceremony of the SK Innovation battery plant in Seosan in 2012

[Asia Economy Reporter Choi Dae-yeol] In the executive personnel announcement of SK Group's major affiliates released on the 2nd, the name of Choi Jae-won, senior vice chairman of SK Group and younger brother of SK Group Chairman Choi Tae-won, was notably absent. There is speculation that he may move to SK On, a battery business affiliate that has yet to finalize its organizational restructuring and personnel appointments.

According to SK Innovation, SK On, the battery business subsidiary, plans to carry out a separate organizational restructuring and personnel changes within this month. Starting this year, SK Group decided to conduct personnel evaluations at the board level of each affiliate. Most affiliates held board meetings yesterday to finalize organizational restructuring and personnel plans, which were announced on the same day. Regarding the delay in SK On’s board meeting, SK Innovation provided no specific explanation, only stating that it considered "key management issues such as promoting partnerships with global partners."

Since his parole release, Senior Vice Chairman Choi’s five-year employment restriction was lifted as of July, leading to expectations that he might take on a significant role in this personnel reshuffle. There has been speculation that he could manage SK Innovation, which holds major SK affiliates such as SK E&S?actively pursuing new energy businesses domestically and internationally?as well as battery business, refining, and petrochemicals. Currently, Senior Vice Chairman Choi holds only non-registered executive positions at the holding company SK Inc. and SK E&S.

At CES 2019, Choi Jae-won, Senior Vice Chairman of SK Group, visited the Kia Motors exhibition hall (first on the right in the photo) / Las Vegas, USA - Photo by Kim Hye-won, Asia Economy

In this personnel announcement, SK E&S appointed some new executives without major changes to its key management. Except for the promotion of General Manager Kim Jun to vice chairman, SK Innovation’s key executives largely retained their positions, showing little change. SK On, the battery business affiliate spun off from SK Innovation, appointed Jidong Seop as its inaugural CEO. Along with CEO Ji, executives such as Director Jeong In-nam and Head Kang Sang-hoon, who previously managed the battery business at SK Innovation, have moved to SK On.

The battery business is known as an area that Senior Vice Chairman Choi has devoted considerable effort to, even during periods when he could not be fully involved in company management, by personally visiting sites and actively engaging in external cooperation. It is reported that he distinguished himself early on in company management alongside his brother, particularly in financing and global cooperation sectors.

Having experience in SK Group’s major energy and telecommunications affiliates, he is also known to have a strong interest in new energy fields such as hydrogen. He has shown considerable interest in the automotive business and was actively involved when SK Group identified the battery business as a future growth engine. Since this year, SK Group has entrusted the nomination of CEO candidates entirely to the boards of each affiliate, so for Senior Vice Chairman Choi to join SK On’s management, he must go through SK On’s board process.