The Strategist Behind the Success of Materials and Siltron
Led Investment Organization Integration as CEO of SK Inc.
Declared "A Matter of Survival" Immediately After Taking Office...
First Step with IPO Withdrawal
SK Innovation has abruptly withdrawn its plan to list its lubricant subsidiary, SK Enmove, and has acquired the 30% stake held by external investors, making it a wholly owned subsidiary. This is the first major move since President Jang Yongho took office, and is interpreted as a declaration of an accelerated rebalancing (business restructuring) both within and outside the group.
On June 26, SK Innovation announced that it is considering various options after making SK Enmove a 100% subsidiary, including merging it with other affiliates. This reflects management’s decision to accelerate rebalancing through integration and liquidity among affiliates, rather than raising funds through an IPO. Last month, SK Innovation appointed Jang as president and Choo Hyungwook as CEO as its new management team. With Jang, a senior executive who has served across key affiliates, at the center, the pace of portfolio restructuring is seen to be accelerating.
Jang is known within SK Group as a representative “execution-oriented investment strategist.” After graduating from Seoul National University with a degree in economics, Jang served as head of the LNG business task force and head of the PM2 division at SK Innovation, and later as CEO of SK Materials and SK Siltron. While at PM2, he led the acquisition of OCI Materials, and as CEO of SK Materials, he expanded into high-value-added semiconductor and battery materials businesses. At SK Siltron, he strengthened the advanced lineup by acquiring the silicon carbide (SiC) wafer business from DuPont in the United States. Last year, during SK Group’s restructuring centered on its holding company, he served as CEO of SK Inc., participating in the unification of global investment functions and strengthening the holding company’s investment capabilities.
Jang, who was brought in as a “relief pitcher” for SK Innovation last month, has called for greater execution from the outset of his tenure. On June 2, four days after taking office, he sent an email to all employees emphasizing that “portfolio rebalancing is an essential task for survival.” At his first town hall meeting for all employees on June 10, he identified “changes and execution that all members can feel” and presented portfolio restructuring as the top priority.
The full acquisition of SK Enmove is seen as an extension of this strategy. Initially, SK Innovation intended to raise external funds by listing SK Enmove, but the plan was completely reconsidered due to the downturn in the capital market and political opposition to “split-off listings.” Some interpret this as a “preemptive move” to prepare for a possible merger between SK On and SK Enmove. While SK On continued to post an operating loss of 299.3 billion won in the first quarter of this year, SK Enmove generated 121.4 billion won in operating profit during the same period, serving as a stable cash cow within the group. Analysts believe that combining the two companies could drive financial improvement and restructuring at SK On.
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