SK On's Choi Jae-won Calls for Strengthening Manufacturing Capabilities to Overcome the Chasm

Townhall Meeting for All Employees On and Offline on the Afternoon of the 24th
"Electrification is an Irreversible Trend and a Determined Future"

"To overcome the chasm (temporary demand stagnation), all manufacturing capabilities such as cost competitiveness, research and development, and production capacity are important. It is difficult, but we must catch not just one rabbit, but at least five or six simultaneously."

Choi Jae-won, Senior Vice Chairman of SK On, met with about 100 employees at the SK On Gwanhun Building in Jongno-gu, Seoul, and over 2,000 domestic and overseas employees online on the afternoon of the 24th to urge strengthening manufacturing capabilities. It was a 'town hall meeting' to share management status and listen closely to employees' stories. This was the second time Senior Vice Chairman Choi held a town hall meeting since April last year. He said he personally arranged this event to communicate sincerely with the employees.

Choi Jae-won, Senior Vice Chairman of SK On, is conducting a town hall meeting at the SK On Gwanhun Building in Jongno-gu, Seoul, on the afternoon of the 24th.
[Photo by SK On]

In response to recent questions about the slowdown in battery industry growth due to the electric vehicle chasm, Senior Vice Chairman Choi said, "I fully understand the various concerns related to demand," but emphasized, "Electrification is an irreversible trend and a predetermined future." He added, "In the mid to long term, it will continue to grow due to environmental policies of each country, fuel efficiency regulations, electric vehicle lineups, and expansion of charging infrastructure," and said, "The chasm is both a crisis and a good opportunity for SK On, which has grown faster than anyone else." He urged, "Let us thoroughly prepare together with the management and members so that we can lead the global battery market when demand recovers."

Regarding SK On's IPO, Senior Vice Chairman Choi said, "The SK On IPO will definitely succeed," but added, "However, the specific timing will be decided comprehensively considering how prepared we are for the listing and the macro financial environment." He said, "Typically, manufacturing suffers losses in the first five years," and expressed confidence that "SK On can overcome that period and become one of the very few companies to succeed."

Choi Jae-won, Senior Vice Chairman of SK On, conducting a town hall meeting
[Photo by SK On]

Lee Seok-hee, CEO, who was present at the meeting, also called for solid manufacturing fundamentals to grow firmly amid external environments. CEO Lee said, "To push ahead stronger than competitors when the economy recovers, we must firmly establish the basics of the business, which is to 'make high-quality products cheaply'." As measures to improve competitiveness, he suggested ▲expanding business areas ▲enhancing high technology and price competitiveness ▲expanding product portfolio and chemistry.

Senior Vice Chairman Choi usually emphasizes the importance of communication and listening to SK On's management. Besides the town hall meeting, he actively communicates with members by participating in various internal events such as beer time and the 'SK On Recognition Awards Ceremony' that encourages members who have achieved outstanding performance.