CEO Direct 'Portfolio Management' Division
New Growth Businesses 'AI Innovation' and 'Growth Support' Established
SK Group's holding company, SK Inc., announced on the 5th that it has carried out an organizational restructuring and executive appointments to unify its investment functions and establish an organization for discovering growth businesses.
The company explained, "The core of this organizational restructuring is to strengthen the 'holding company's inherent role' for value-up," adding, "It focuses on accelerating the execution of portfolio rebalancing (business restructuring), supporting the creation of operational efficiency (O/I) results in subsidiary management, and discovering future growth businesses at the group level."
The merged entity of SK Innovation and SK E&S, with assets totaling 105 trillion won (as of the first half of this year), has officially launched. After about three months of preparation following the merger announcement in July, the largest private energy company in the Asia-Pacific region has been established. The photo shows the SK Seorin Building in Jongno-gu, Seoul, where SK Innovation's headquarters is located. Photo by Kang Jin-hyung
First, the investment functions, which were divided into advanced materials, green, and bio sectors, have been unified into the 'Portfolio Management (PM) Division' to increase the speed of rebalancing and enable integrated management. The Portfolio Management Division plans to actively improve profitability by supporting subsidiaries in business model innovation, product and technology differentiation, and operational efficiency such as process innovation.
The Portfolio Management Division has been reorganized from under the CFO (Chief Financial Officer) to directly under the CEO (Chief Executive Officer).
Accordingly, the CFO will independently manage only the financial division to focus on strengthening financial soundness. The financial division will continue to pursue securing resources for growth along with stabilizing the financial structure.
For investments aimed at future growth at the group level, SK Inc. has newly established two organizations: 'AI Innovation' and 'Growth Support.' The company plans to continue portfolio rebalancing of existing businesses and discovering growth engines centered on AI.
In this personnel appointment, there were no new executive promotions within SK Inc., the same as last year, and only minor personnel movements occurred due to the establishment of new organizations.
An SK Inc. official stated, "This organizational restructuring aims to ultimately enhance SK Inc.'s corporate value by increasing the performance and value of subsidiaries," explaining, "About 80% of the equity value held by SK Inc. consists of subsidiary shares, and the remaining 20% is composed of global assets and self-invested portfolios, so the performance and financial structure of subsidiaries are directly linked to the holding company's value."
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