Town Hall Meeting with Employees on the 24th
"Ready to Lead When Demand Recovers
IPO Must Succeed... Timing Undecided"
Responses and outlook on the electric vehicle chasm (chasm: temporary demand stagnation before mass adoption), timing of the initial public offering (IPO), and profitability. At the town hall meeting held on the 24th at SK On’s Gwanhun Building in Jongno-gu, Seoul, over 100 employees on-site and about 2,000 domestic and international employees online directed questions to Choi Jae-won, Senior Vice Chairman of SK On. The scheduled time was from 3 p.m. to 5 p.m., but the session extended by an additional hour due to continuous questions from employees.
Amid slowing demand for electric vehicles, SK On is expected to incur losses amounting to several hundred billion won this year. In January and February of this year, SK On was the only one among the top three battery companies to experience a decline in market share (-7.3%) in the global electric vehicle battery market (according to SNE Research). The burden on SK Innovation, the parent company investing in SK On, is increasing. SK Innovation’s debt stands at 50.8155 trillion won, a 70% surge compared to the end of 2021 when SK On was launched. To address these challenging management conditions surrounding SK On, Senior Vice Chairman Choi personally appeared at the meeting. This town hall meeting was his second, following the one held in April last year.
Choi Jae-won, Senior Vice Chairman of SK On, is conducting a town hall meeting titled "A Defined Future, Moving Forward Together" held on the afternoon of the 24th at the SK On Gwanhun Building in Jongno-gu, Seoul. Photo by SK On
Senior Vice Chairman Choi said, "I fully understand the various concerns related to demand." He repeatedly emphasized that the company is well aware of the difficult internal and external situations and is thoroughly preparing, so employees can have confidence.
Choi stated, "Electrification is an irreversible trend and a predetermined future," adding, "In the mid to long term, it will continue to grow steadily due to environmental policies of various countries, fuel efficiency regulations, electric vehicle lineups, and expansion of charging infrastructure."
He continued, "The chasm is both a crisis and a good opportunity for SK On, which has grown faster than anyone else," urging, "Let’s unite management and employees to prepare thoroughly so that we can lead the global battery market when demand recovers."
He said, "To overcome the chasm, although it is difficult, we must catch not just one rabbit but at least four or five simultaneously." He also added, "We need to secure price competitiveness to respond to the demands of global automakers who want to lower electric vehicle prices."
Regarding SK On’s IPO, he said, "It will definitely succeed," but added, "The specific timing will be decided comprehensively based on how prepared we are for the listing and the macro-financial environment."
Also present was CEO Lee Seok-hee, who emphasized the fundamentals of manufacturing to grow strongly amid external conditions. CEO Lee said, "To strike harder than competitors when the economy recovers, we must solidify the fundamentals of our business to 'produce high-quality products at low cost.'"
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
