Only Key Figures Highlighted... Elevated Status of the Three Battery Companies

SK On to Hold Board Meeting Around 15th for Executive Appointments
Choi Jae-won, Senior Vice Chairman Who Started SK Battery Business, Likely to Return
Samsung SDI Appoints Choi Yoon-ho, Former U.S. Office Executive, as CEO
LG Energy Solution Begins IPO Process After Appointing Vice Chairman Kwon Young-soo

[Asia Economy Reporter Hwang Yoon-joo] The three major domestic battery companies are strengthening their battery businesses by consecutively appointing close associates of their group owners as new executives. This move comes as they recognize the current phase as critical, with battery demand surging due to the expansion of electric vehicles and energy storage systems (ESS), and competition for overseas investment intensifying.

SK Innovation’s battery subsidiary, SK On, is set to finalize executive appointments through a board meeting around the 15th. The return of Choi Jae-won, senior vice chairman and younger brother of SK Group Chairman Choi Tae-won, is highly likely. Senior Vice Chairman Choi is the key figure who led SK Group’s battery business. It is a well-known anecdote that Choi, who had an interest in the automotive industry, advised his brother Chairman Choi Tae-won to shift focus to the electric vehicle battery business. When SK Innovation was considering scaling back battery investments due to profitability concerns, it was Senior Vice Chairman Choi who encouraged continued investment without wavering. SK On is reportedly reviewing European investments following a $13 trillion investment in the U.S. with Ford. Given the many pending issues, including the decision to pursue a pre-IPO, it is expected that Senior Vice Chairman Choi will personally oversee the battery business.

Samsung SDI has appointed Choi Yoon-ho, President of Samsung Electronics, as its new CEO and promoted Jeon Young-hyun to vice chairman. With this personnel change, Samsung SDI has become an affiliate with vice chairman-level executives alongside Samsung Electronics. Industry insiders are particularly noting that the new CEO comes from the former Future Strategy Office. President Choi joined Samsung Electronics’ home appliance division in 1987, mainly handling overseas markets. After being promoted to an executive in the management group in 2004, he served in the Future Strategy Office overseeing group management from 2010. Following the dissolution of the Future Strategy Office, he held positions such as head of Samsung Electronics’ wireless business division, business support task force, and management support office (president). He is also known as a close aide to Samsung Electronics Vice Chairman Lee Jae-yong. A battery industry insider commented, "President Choi handled both finance and strategy, indicating an intention to pursue aggressive overseas investment alongside rational financial strategies. This appointment reflects how the group views its battery affiliates."

Among the three battery companies, LG Energy Solution, which announced executive appointments first, welcomed Kwon Young-soo, the undisputed second-in-command within LG Group, as CEO. LG Energy Solution is currently engaged in an expansion race with China’s CATL for the world’s number one market share. Successfully completing the IPO is also a challenge entrusted to Vice Chairman Kwon.

LG Energy Solution submitted its securities registration statement to financial authorities yesterday, officially commencing the IPO process. The expected offering price ranges from 257,000 to 300,000 KRW, with an anticipated market capitalization of 60 to 70 trillion KRW. The funds raised through the IPO will be used for overseas investments. The company aims to expand its annual production capacity to 260 GWh by 2023. To this end, it is the only one among the three battery companies aggressively investing by establishing joint ventures with the first and third largest U.S. automakers.

The battery industry currently faces the pressure to succeed in both overseas investment and financial strategy to survive in the market. For this reason, each group is evaluated to have positioned key figures as new executives at the forefront. A business community official said, "The battery business, as a new industry, requires steady investment even if it does not generate immediate profits. It is a crucial time for executive decisions, and it seems that influential figures were appointed to facilitate communication with the group."