'Quarterly Profit Turnaround' SK Inno to Give 660% Performance Bonus

Differentiated Bonuses Based on Affiliate Performance
SK Enmove 800%, SK On 0%

SK Innovation, which succeeded in turning a profit in the fourth quarter of last year, has decided to pay a performance bonus equivalent to 660% of the base salary.

According to industry sources on the 6th, SK Innovation set the scale of performance bonuses for 2024 and held briefing sessions for employees by affiliate. For technical supervisory positions working at SK Innovation Ulsan Complex (CLX), the bonus was set at 660% of the base salary. SK Enmove, which recently recorded stable performance, was set at 800%, and SK Earthon, SK Innovation’s energy resource development subsidiary, was set at 400%. SK Enmove is expected to maintain profitability this year based on demand for high-grade lubricating base oil products.

The SK Innovation and SK E&S merged corporation, with assets totaling 105 trillion won (as of the first half of this year), officially launched last November. The photo shows the SK Seorin Building in Jongno-gu, Seoul, where SK Innovation's headquarters is located. Photo by Kang Jin-hyung

SK On, which posted an annual loss of 1.127 trillion KRW last year due to stagnation in electric vehicle demand, will not receive a performance bonus this time either. Despite increased sales, SK On’s battery business suffered a large deficit, making performance improvement this year uncertain. SK Innovation previously paid performance bonuses without differentiation among its subsidiaries, but since 2022, it has introduced a new performance bonus system that differentiates bonuses from 0 to 800% of the base salary according to the performance of individuals as well as each affiliate subsidiary.

Aside from the bonuses paid at the beginning of the year, the payment of the remaining bonuses will be reviewed considering this year’s management conditions.

SK Innovation is reportedly considering establishing a new performance bonus system to address the uncertain internal and external management environment, changes in business strategy accordingly, and efforts to strengthen core business competitiveness. Earlier, major refiners GS Caltex decided to pay 250% of the base salary, and HD Hyundai Oilbank decided to pay 3.5 million KRW per person as a crisis overcoming encouragement bonus.