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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Seoul, May 7, 2025 — In response to mounting challenges in the energy and battery sectors, executives across the SK Innovation group have decided to return up to 30% of their annual salaries and implement stricter cost-saving measures, including earlier work hours and reduced business expenses.
SK Innovation CEO Park Sang-kyu announced the measures in an email to all employees on Wednesday, stating, “We are in the middle of a perfect storm — a structural downturn in the petrochemical industry, a prolonged EV demand slowdown (EV chasm), intensifying U.S.-China tensions, and a global tariff war. These adverse external conditions are threatening the sustainability of SK Innovation and its affiliates.”
In a show of leadership accountability, CEO Park and other key executives — including SK E&S President Choo Hyung-wook, SK On President Lee Seok-hee, and SK IE Technology President Lee Sang-min — have committed to returning up to 30% of their salaries. The company also plans to significantly reduce executive business operation expenses.
In addition, all executives will now be required to arrive at the office by 7 a.m., a move meant to reinforce a disciplined work culture. While executives previously had flexible arrival times, SK Innovation has mandated a fixed schedule starting this month. Other austerity measures, such as requiring executives to fly economy class on overseas trips and maintaining a six-day workweek, will be extended across all affiliates, not just SK On.
SK Innovation posted a consolidated operating loss of KRW 44.6 billion (approx. USD 33 million) in the first quarter of 2025, despite achieving its highest quarterly revenue in ten quarters — KRW 21.1 trillion — following its merger with energy affiliate SK E&S. However, operating losses at major subsidiaries including SK On (KRW -299.3 billion), SK IE Technology (KRW -69.6 billion), and SK Geo Centric (KRW -114.3 billion) dragged down overall performance.
“We must overcome this crisis through productivity gains driven by innovation in our work processes and by eliminating unnecessary costs,” Park wrote.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
