[Heavy Industry ON] Companies Turn to Equity Sales Amid Slump in Battery Business, Cashing In 10 Trillion Won

Samsung SDI to Sell Its Stake in Samsung Display
LG Chem to Reduce Its Stake in LG Energy Solution Over the Next Five Years
SK On Announces Voluntary Retirement and Unpaid Leave Programs

The battery industry, which has been suffering from a business downturn, is preparing for a new leap forward by selling equity stakes. The aim is to secure investment funds by cashing out shareholdings, while actively improving their financial structure and returning profits to shareholders.

According to the industry on the 21st, Samsung SDI announced in a filing on the 19th that it will sell its stake in Samsung Display worth 10 trillion won.

Bird's-eye view of the Samsung SDI booth at InterBattery Europe 2025. The Asia Business Daily database

Samsung SDI holds a 15.2% stake in Samsung Display, which is estimated to be worth more than 10 trillion won at book value. Samsung SDI has stated that the specific size of the sale and the buyer have not yet been decided, but industry observers believe a full divestment of its stake is possible.

The reason Samsung SDI has decided to sell its stake is to continue investing in its battery business. Although it is currently posting losses in the trillion-won range, the company intends to secure funds to invest in future growth engines such as batteries for energy storage systems (ESS), lithium iron phosphate (LFP) batteries, and all-solid-state batteries. Samsung SDI recorded an operating loss of 1.7224 trillion won last year.

LG Chem, which also posted weak results in key businesses such as petrochemicals and batteries, announced during its fourth-quarter conference call last month that it plans to sell part of its stake in LG Energy Solution.

Bird's-eye view of the LG Energy Solution booth at InterBattery Europe 2025. The Asia Business Daily DB

LG Chem disclosed that it will reduce its stake in LG Energy Solution to around 70% over the next five years. LG Chem currently holds a 79.4% stake in LG Energy Solution, meaning 9.4% is subject to sale. Based on market value, this amounts to about 9 trillion won, and under the five-year target, approximately 1.8 trillion won in cash will flow in each year.

This decision by LG Chem is intended to secure financial soundness in response to last year's sluggish sales, and to use the proceeds for shareholder returns. On a consolidated basis, LG Chem's sales in the fourth quarter of last year were 11.1971 trillion won, and it posted an operating loss of 413.3 billion won.

An LG Chem official said, "The stake sale is for shareholder returns," adding, "It is planned to be carried out over the next five years."

Meanwhile, SK On has announced that it will implement a voluntary retirement program and an unpaid leave program for its employees. This move is seen as an effort to secure profitability by streamlining the organization and improving the cost structure amid a prolonged stagnation in electric vehicle demand.

The voluntary retirement program is open to employees who joined the company before January 2025, and applicants will receive severance compensation equivalent to 6 to 30 months of their monthly salary, depending on their years of service and age. In addition, through the "Next Chapter" support program, the company will operate an unpaid leave system for self-development. Employees who enroll in job-related bachelor's, master's, or doctoral programs will receive support for 50% of their tuition for up to two years, and if they return to work after obtaining their degree, they will receive the remaining 50% as well.

An SK On official stated, "This is to enhance management efficiency and secure a foundation for sustainable growth as our business growth has slowed."