As SK Group Senior Vice Chairman Jae-won Choi returned to management as CEO of SK On, the "Three Major K-Battery Companies" will face off side by side with vice-chairman-level management. LG, Samsung and SK's forward deployment of so-called "big names" to battery affiliates indicates a strong will to grow electric vehicle batteries into a group's core business. The leadership competition of the three companies has also emerged as a hot viewing point.
SK On held a board meeting on the 17th and appointed SK Senior Vice Chairman Jae-won Choi as an in-house director and CEO. SK On has been reorganized into a representative system in which Senior Vice Chairman Choi takes charge of growth strategies and global businesses, and CEO Dong-seop Ji takes charge of overall management. Senior Vice Chairman Choi, the younger brother of Chairman Tae-won Choi, is considered to have had special interest from the beginning of SK's battery business and influenced the overall battery business.
SK On was launched as an independent corporation in October this year. There are many big issues such as securing funds through Initial Public Offering (IPO) and expanding global automobile customers. The appointment of Vice Chairman Choi is aimed at resolving pending issues quickly and settling batteries as the group's flagship business early on based on strong ownership.
Senior Vice Chairman Choi stepped down from the management front after being sentenced to prison for embezzlement in 2013. Even at the time of imprisonment, he sent handwritten letters to SK Innovation's battery business team and showed special affection by attending almost every important battery-related event after parole.
SK On is currently planning to expand its annual battery production capacity of 40GWh to 220GWh in 2025 and 500GWh in 2030. SK On needs to speed up its IPO to secure massive investments. However, politicians are currently discussing regulations on the simultaneous listing of subsidiaries and parent companies that have been physically divided into subsidiaries. The Korea Exchange is also considering improving the system, raising risks to SK On's IPO. This is the first task that Senior Vice Chairman Choi has to solve.
LG and Samsung also selected big names. Vice Chairman Young-soo Kwon, who was selected as the new CEO of LG Energy Solution, was a close aide to Chairman Kwang-mo Koo and served as the "second-in-chief of LG Group."
Vice Chairman Kwon is also a person who led the growth of LG's battery business. Vice-Chairman Kwon is leading the business by reorganizing the business after the IPO of LG Energy Solution scheduled for January next year and a massive recall. LG Energy Solution is planning to invest funds secured through IPO to expand its global production base.
Samsung SDI also recently selected Yoon-ho Choi President of Samsung Electronics, as its new CEO, signaling business expansion. President Choi is known to be a trusted aide to Vice Chairman Jae-yong Lee. It is expected that Samsung SDI business innovation will be driven through strategic planning. It is also noteworthy that the former president Young-hyun Jeon was promoted to Vice Chairman to help management. Samsung SDI is the only Samsung affiliate except Samsung Electronics to have vice-chairman-level personnel. It is analyzed that Samsung SDI shows its willingness to improve its position within the group and expand its business.
An official from the battery industry said, "At a time when global competition for electric vehicle batteries is in full swing, all three domestic companies have reorganized their personnel and organizations." "As the group's key figures are in unison, bold business attempts are expected to increase global competitiveness as well as investment and technology development," they said.
By Staff Reporter Tae-jun Park (gaius@etnews.com)