SK Inno to Hold 16th Annual General Meeting on the 30th
Resolution of Agenda Including Appointment of Inside Directors and New Outside Directors
SK Innovation announced that it will pursue a stock swap between its subsidiary SK On, which is preparing for an IPO (Initial Public Offering), and SK Innovation itself. This move aims to dispel concerns about a decline in corporate value due to the subsidiary's listing and demonstrates a commitment to shareholder returns. Following this announcement, SK Innovation's stock price surged by more than 18% in a single day.
Kim Jun, Vice Chairman of SK Innovation, is speaking at the 16th Annual General Meeting of Shareholders. Photo by SK Innovation
On the 30th, SK Innovation held its '16th Annual General Meeting of Shareholders' at the Suprex Hall in the SK Seorin Building, Jongno-gu, Seoul. SK Innovation hosted its first-ever 'Dialogue with Shareholders' during the meeting, attended by subsidiary CEOs including Vice Chairman Kim Jun, SK On President Ji Dong-seop, and SK Geocentric President Na Kyung-soo. This was the first time SK Innovation set aside a separate session on the day of the shareholders' meeting to communicate with shareholders about management issues. The company expressed a strong intention to enhance corporate value and actively engaged in Q&A sessions with shareholders regarding current issues.
Kim Yang-seop, Head of Finance at SK Innovation, stated, "We are considering pursuing a stock swap between SK Innovation and SK On at the time of SK On's IPO." The method involves SK Innovation acquiring its own shares through a public tender offer (to be canceled later) and delivering SK On shares in exchange. Kim added, "The scale of the stock swap is flexible, but we are considering about 10% of SK Innovation's market capitalization." For the 2024 and 2025 fiscal years, the dividend guideline prioritizes a cash dividend of at least 2,000 KRW per share.
Regarding SK On's profitability improvement, Vice Chairman Kim said, "We are focusing all capabilities not only on SK On but also across the SK Innovation group to improve yield, operating rate, selling price, and purchasing competitiveness." He continued, "SK Innovation is fully implementing 'Management System 2.0,' which links evaluation and compensation systems to stock price through a management system transformation. Going forward, all management activities of SK Innovation will be executed in a way that enhances corporate value," he emphasized.
Vice Chairman Kim and the management team explained the key measures to enhance SK Innovation's corporate value. The core measures include ▲ improving SK On's profitability ▲ visible achievements in Green Transformation (transforming existing carbon-emitting industries into eco-friendly businesses) ▲ shareholder return policies to protect shareholder rights.
Regarding Green Transformation, Na Kyung-soo, President of SK Geocentric, which is promoting plastic recycling business, made a presentation. Na said, "We are building the world's first recycle cluster that consolidates chemical recycling processes in one location, aiming to start operations in 2025," adding, "We will become the global No.1 recycled material company and contribute to SK Innovation's Green Transformation and shareholder value enhancement."
Ji Dong-seop, President of SK On, said, "This year, SK On's management is focusing on three areas: profitability improvement, capital efficiency enhancement, and building a foundation for future growth," adding, "We plan to actively pursue key tasks for profitability improvement to visualize a profitability turnaround."
At the newly established "Dialogue with Shareholders" session held for the first time this year, SK Innovation group executives are engaging in conversation with shareholders. From the left in the photo, Kim Yang-seop, Head of Finance at SK Innovation; Kim Joon, Vice Chairman of SK Innovation; Ji Dong-seop, President of SK On; and Na Kyung-soo, President of SK Geocentric, are speaking. Photo by SK Innovation
In response to a reporter's question about whether the internalization and vertical integration of the battery value chain are lacking compared to other companies, President Ji said, "We view internalization from three main perspectives: ▲ competitive advantage through differentiated technology ▲ supply stabilization ▲ securing cost competitiveness," adding, "While internalization is necessary for supply stabilization, it is true that compared to other companies, we are relatively lacking due to rapid investment in the core battery business."
President Ji continued, "We consider cathode materials as the most critical component and believe internalization is possible in the long term," but added, "Currently, SK On prioritizes long-term supply stabilization through joint ventures."
Regarding internalization, Vice Chairman Kim Jun said, "SK Innovation and the group are focusing on next-generation battery technologies and materials," adding, "Each affiliate is conducting R&D and promoting mass production in next-generation battery material fields such as silicon anodes and conductive additives."
Meanwhile, at the shareholders' meeting, the appointments of ▲ Kim Jun as inside director ▲ Kim Ju-yeon and Lee Bok-hee as outside directors ▲ Park Jin-hoe as audit committee member were approved by shareholders. Kim Jun was reappointed in recognition of his successful leadership of SK Innovation's Carbon to Green strategy and contribution to the company's green portfolio transition since becoming CEO of SK Innovation.
SK Innovation decided to add one more outside director this year to strengthen board-centered management. Accordingly, Kim Ju-yeon and Lee Bok-hee were newly appointed as outside directors. Park Jin-hoe, with experience as a CEO of a financial company, is expected to provide advice on overall risk management. Additionally, agenda items such as ▲ approval of financial statements ▲ approval of director remuneration limits were passed as originally proposed.
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