SK On Declares Emergency Management... Executive Salaries Frozen Until Return to Profitability

Delegation of C-Level Position to the Board of Directors

SK On, which has been continuously operating at a loss in the battery business, has declared an emergency management. All executives' salaries will be frozen until profitability is achieved.

On the 1st, SK On held a full executive meeting to share the company's management status and organizational restructuring direction, and agreed to take the lead in overcoming the crisis. They decided to streamline the organization reflecting the changed management environment. They will boldly change all areas that require transformation, from work scope and procedures to resource allocation and working methods.

Lee Seok-hee, CEO of SK On, is attending the 'US IRA-related Public-Private Joint Meeting' at JW Marriott Hotel in Seocho-gu, Seoul on the 8th, listening attentively to the opening remarks by Ahn Deok-geun, Minister of Trade, Industry and Energy. Photo by Kang Jin-hyung aymsdream@

First, the board of directors was entrusted with the positions of all C-level executives, including CEO Lee Seok-hee, Chief Production Officer (CPO), and Chief Technology Officer (CTO). Some C-level positions, such as Chief Administrative Officer (CAO) and Chief Commercial Officer (CCO), will be abolished, and executives with insufficient performance and roles will have their appointments changed as needed throughout the year.

Also, if quarterly profitability is not achieved this year, executive salaries will be frozen next year. Welfare benefits and business promotion expenses for executives will be drastically reduced. The current policies of mandatory economy class for overseas business trips and 7 a.m. start times will continue.

However, to continuously secure core competitiveness, research and development investments will be supported as much as possible. To enhance constant responsiveness to clients, the sales organization will be separated and strengthened by region.

All employees will strive for a corporate culture focused on fundamentals. While maintaining a flexible work system where employees decide their own commuting hours, they are expected to focus on work during working hours, and office work will be the principle over remote work for efficient decision-making.

After the meeting, CEO Lee Seok-hee sent a message to all employees, stating, "Executives and leaders will take the lead with a strong sense of responsibility for the crisis," and added, "All members, including management, should unite their efforts to achieve the best performance in their respective positions with the determination that 'there is no turning back anymore.'"

He also said, "The current crisis is rather an opportunity to solidify our foundation as a true global manufacturing company," and added, "If we all do our best with the spirit of 'Jagangbulshik (self-effort without rest),' we will be able to achieve greater results."