First Interview with Bloomberg After Inauguration
Kim Kyung-hoon, CFO (Chief Financial Officer and Vice President) of SK On (the battery subsidiary of SK Innovation), said in his first interview since joining the company, "We plan to go public (IPO) within the next four years, but it could happen sooner depending on the market and profitability."
In an interview with Bloomberg, Vice President Kim said, "Although progress is slower than expected, SK On is moving forward nonetheless," adding, "we are striving to reduce costs related to profitability, but we believe product quality should not be compromised."
Vice President Kim Kyung-hoon is responsible for financial decision-making at SK On. He is a finance and investment expert recruited from outside the company. After building his career at Korea Standard Chartered Bank and Merrill Lynch, he joined SK On in October last year. A graduate of the prestigious Brown University in the United States, he is an alumnus of SK On Vice Chairman Choi Jae-won. Since Vice President Kim’s appointment, SK On has successfully raised up to KRW 8.17 trillion in funding from the end of last year to the present. The battery production joint venture with Ford Motor Company, 'BlueOvalSK,' also secured policy support funds of up to USD 9.2 billion (approximately KRW 11.8 trillion) from the U.S. Department of Energy.
Despite successful fundraising, SK On remains in the red. Since the physical division in 2021, SK On has recorded an operating loss rate of over 10%. "The timing of turning a profit has been delayed. We are making large capital investments to build new factories, and (even after the factories are completed) the structure incurs losses until production stabilizes," Vice President Kim said. While acknowledging the current deficit situation as inevitable, he sees definite growth potential. "This year’s sales are expected to reach about KRW 14 trillion, double that of last year," he said. SK On expects to achieve its first annual profit turnaround next year.
He also anticipated that local battery production in the U.S. would not be easy. Vice President Kim said, "(In the U.S.) the pool of battery engineers is small, but many automobile and battery companies are seeking engineering talent," adding, "The manufacturing sector in the U.S. has experienced a decades-long gap, so training local personnel will also face many challenges."
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