SK Takes Steps to Calm Confusion... Holds Briefings for E&S and On Members

Both Companies Secure Positions Immediately After Disclosure

Recently, the CEOs of SK E&S and SK On, who decided on the merger, have stepped forward to calm the confusion among employees.

According to industry sources on the 18th, SK E&S held a merger briefing session for its headquarters employees immediately after the merger with SK Innovation was announced on the 17th. Led by Chu Hyung-wook, CEO of SK E&S, and Seo Geon-gi, head of SK E&S’s finance division, the background of the merger was explained, and they directly answered employees’ questions. Employees who could not attend offline were also able to participate online.

The briefing session was hastily arranged to quell the confusion among company members caused by the merger. Until the board meeting on that day, some complaints arose that "there was no explanation from the company, so employees had no choice but to learn about the company news through articles."

CEO Chu said at a press conference regarding the merger with SK Innovation, "It was difficult to explain the merger details to employees in detail before the board meeting," and added, "We explained these points during the briefing and asked for their understanding." He emphasized, "To dispel concerns, we will practice responsible management that minimizes changes to the existing business operation system and decision-making structure."

Meanwhile, SK On, which decided on the merger with SK Trading International (SKTI) and SK Entum, also held a briefing session immediately after the announcement, led directly by SK On CEO Lee Seok-hee. The briefing was held both online and offline at SK On’s Gwanhun Building in Jongno-gu, Seoul.

CEO Lee said about the merger, "To become a robust SK On that maintains a differentiated competitive edge and long-term growth even 10 years from now, a foothold is necessary," and added, "We will transform into a global battery and trading company combining SK On’s growth potential with the stability of SKTI and SK Entum."

He also stated, "Through the merger of the three companies, we will create synergy to secure competitiveness in raw material supply and establish stable financial resources through trading and storage businesses."

He acknowledged, "Although SK On has experienced rapid growth with sales doubling every year, the growth rate has significantly slowed recently due to weak demand in the electric vehicle front end," but reiterated, "I am confident that electrification is an inevitable future. Along with electrification, the battery industry is also an inevitable future."