SK Innovation Co., Ltd.(Korean:에스케이이노베이션 주식회사) is anintermediate holding companyofSK Groupengaged inpetroleum,alternative energy,andoil exploration.It runs its business through eight major subsidiaries, including SK Energy, SK Geo Centric,[2]SK On, SK Enmove,[3]SK Incheon Petrochem, SK Trading International, SK IE Technology and SK Earthon.[1]
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Native name | 에스케이이노베이션 주식회사 |
|---|---|
| Company type | Public,Holding |
| KRX:096770 | |
| Industry | Petroleum |
| Founded | 2007 |
| Headquarters | , |
Area served | Worldwide |
Key people | Chey Tae-won(Chairman) Kim Jun (President & CEO) |
| Parent | SK Inc. |
| Subsidiaries | SK Energy SK Geo Centric SK On SK Enmove SK Incheon Petrochem SK Trading International SK IE Technology SK Earthon |
| Website | www |
| Footnotes / references [1] | |
History
editSK Energy was established in 2007 by splitting South Korea's top refiner SK Corporation into an energy operation and holding company. SK Energy handled the energy and chemical businesses, whileSK Holdingswas in charge of investing in subsidiaries and the life science sector.[4]
SK Innovation was created through a restructuring of SK Energy in 2011. The original SK Energy has renamed itself SK Innovation after spinning off itsoil refining,lubricants,andchemicalbusinesses. In the beginning, SK Innovation has set up three fully-owned units, including SK Energy (a newly founded company operating crude oil refining business), SK Lubricants (now SK Enmove), and SK Global Chemical (now SK Geo Centric).[5]After two years, SK Innovation spun off SK Energy's Incheon refinery complex and oil trading division and launched SK Incheon Petrochem and SK Trading International.[6]
On March 31, 2017, SK Innovation said that theelectric vehiclebattery plant it had in China had been closed since January of that year, after "Chinese joint venture partners halted production for no obvious reason."[7]On March 21, 2018, SK Innovation announced the acquisition of U.S. shale oil and gas company Longfellow Nemaha.[8]
In 2019, the company decided to spin off its material division and established SK IE Technology.[9] On 1 October in 2021, SK Innovation officially completed the spin-off of its battery business, which is called 'SK On'.[10]In the first half of 2022, SK On is ranked fifth in the world with a market share of 7 per cent according to SNE research.[11]In September 2021, Ford and SK Innovation announced a joint venture to manufacture batteries in the Kentucky/Tennessee region for Ford motor vehicles.[12]
Corporate governance
edit| Shareholder | Stake (%) | Flag |
|---|---|---|
| SK | 34.45% | 
|
| National Pension Service | 7.14% |
|
| Employee Stock Ownership Association | 1.10% |
|
Subsidiaries
edit| Subsidiary | Revenue (KRW) | Stake (%) |
|---|---|---|
| SK Energy | 43,625.4 billion | 100% |
| SK Trading International | 17,496.0 billion | 100% |
| SK Incheon Petrochem | 10,116.5 billion | 100% |
| SK Geocentric | 11,337.2 billion | 100% |
| SK Enmove | 4,974.7 billion | 60% |
| SK IE Technology | 319.9 billion | 61.2% |
| SK On | 8,469.6 billion | 89.5% |
| SK Earthon | 175.7 billion | 100% |
| SK Enthem | (Launched in 2024) | 100% |
In January 2011, the SK Innovation system was launched, with the oil and chemical businesses spun off. In July 2013, the company restructured into an independent management system, dividing into two business units—E&P (Exploration & Production) and B&I (Batteries and Materials)—and five subsidiaries: SK Energy, SK Global Chemical, SK Lubricants (now SK Enmove), SK Incheon Petrochem, and SK Trading International. On October 1, 2021, the remaining two business units—batteries and oil exploration—were spun off into SK On and SK Earthon, respectively. In January 2024, SK Enthem became the 9th subsidiary of SK Innovation, following its spin-off from SK Energy, handling the import and distribution of crude oil and petroleum products.
Controversies
editIn 2019, South Koreanelectric vehicle batterymanufacturerLG Chemsued SK Innovation with theU.S. International Trade Commission(ITC) for misappropriation oftrade secretsby hiring former employees. LG Chem requested the import ban to the U.S. for SK Innovation'slithium-ion batteriesand infrastructure technology from the ITC.[13]The ITC sided with LG Chem and issued a limited 10-year exclusion order prohibiting imports into the United States of some lithium-ion batteries by SK Innovation.[14]In the end, SK Innovation agreed to pay LG Chem $1.8 billion in cash and royalties to avert the import ban.[15]
See also
edit- SK Group
- List of electric-vehicle-battery manufacturers
- Jeju United FC,a South Korean professional football club owned by SK Energy
References
edit- ^ab"SK innovation ESG REPORT 2020"(PDF).SK Innovation.RetrievedOctober 31,2021.
- ^Kim, Minu (August 31, 2021)."SK Global Chemical rebranded SK Geocentric to invest $4.3 bn in green sourcing by 2025".Maeil Business Newspaper.RetrievedOctober 31,2021.
- ^"SK lubricants to change its name to SK enmove as of December".Maeil Business Newspaper.November 21, 2021.RetrievedJanuary 8,2023.
- ^"SK Corp. Approved to Be Divided Into Two".The Korea Times.May 29, 2007.
- ^"S.Korea SK Energy spins off units; renamed as SK Innovation".Reuters.January 3, 2011.RetrievedNovember 4,2021.
- ^"SK Innovation launches two subsidiaries".Yonhap.Seoul. July 1, 2013.RetrievedNovember 4,2021.
- ^Jung-a, Song (April 2, 2017)."LG Chem holds faith in China despite battery of obstacles".Financial Times.Archivedfrom the original on August 3, 2020.RetrievedApril 3,2017.
- ^"SK Innovation's U.S. unit to buy U.S. gas exploration firm Longfellow Nemaha".Yonhap News Agency.Archivedfrom the original on 2018-03-22.Retrieved2018-03-21.
- ^"SK Innovation unit to expand lithium-ion battery separator output this year".Yonhap.Seoul. July 24, 2019.RetrievedNovember 4,2021.
- ^"SK Innovation spins off battery division".Electrive. 1 October 2021.Retrieved1 October2022.
- ^"2022 1H Global[1] EV & Battery Performance Review".SNE research.Retrieved1 October2022.
- ^Ford to Lead America’s Shift to Electric Vehicles with New Mega Campus in Tennessee and Twin Battery Plants in Kentucky; $11.4B Investment to Create 11,000 Jobs and Power New...
- ^"EV battery maker LG Chem sues SK Innovation, alleges trade secret theft".Seoul.Reuters.April 30, 2019.RetrievedNovember 4,2021.
- ^Shepardson, David; Yang, Heekyong (February 11, 2021)."SK Innovation loses U.S. battery trade case but gets temporary OK to sell to Ford, VW".Washington.Reuters.RetrievedNovember 4,2021.
- ^Jin, Hyunjoo; Yang, Heekyong; Shepardson, David (April 11, 2021)."S.Korean battery makers agree $1.8 bln settlement, aiding Biden's EV push".Washington.Reuters.RetrievedDecember 8,2022.
External links
edit- Official website
- Business data for SK Innovation: