Jang Yong-ho, President & CEO of SK Innovation, delivers a presentation on the company’s portfolio rebalancing progress during the ‘2025 SK Innovation Corporate Value Enhancement Strategy Briefing’ held at SUPEX Hall in SK Seorin Building, Jongno-gu, Seoul, on July 30. (Photo: SK Innovation)

 

 

[Alpha Biz= Kim Jisun] SEOUL – SK Innovation announced on July 30 that its two core subsidiaries — SK On and SK Enmove — will merge on November 1, 2025, creating a single entity designed to strengthen synergies across its electrification businesses and improve both profitability and financial stability.



The boards of SK Innovation, SK On, and SK Enmove approved the merger on July 30, with SK On set to absorb SK Enmove. The combined company will integrate EV battery and energy storage system (ESS) expertise from SK On with SK Enmove’s businesses in base oils, lubricants, immersion cooling, and EV refrigerants.



SK Innovation expects significant benefits from this consolidation:



Immediate financial gains: SK On’s capital base will increase by ₩1.7 trillion, and EBITDA will improve by ₩800 billion in 2025 alone.



Business synergies: By 2030, the merged entity is projected to generate over ₩200 billion in additional EBITDA annually through cross-selling and combined technologies such as LFP pouch cells with immersion cooling packages for the ESS market.



The company also unveiled an ₩8 trillion capital injection plan to strengthen its balance sheet, aiming to achieve ₩10 trillion in EBITDA and cut its debt ratio below 100% by 2030.



The merger effectively nullifies SK On’s IPO obligation tied to earlier investments from financial investors (FIs). SK Innovation repurchased all FI-held shares, removing the IPO requirement.



SK Innovation CEO Jang Yong-ho explained the reasoning behind shelving the IPO:



“Now is the time to focus on building internal strength rather than pushing for a listing,” Jang said during the Corporate Value Enhancement Strategy Briefing. “Our priority is profitability and core competitiveness. An IPO for the merged entity is not planned at this stage but could be reconsidered when market conditions improve.”



The consolidation positions SK Innovation to lead the electrification era, leveraging its combined technology, customer base, and operational scale.
 

 

 

 

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