SK Innovation outlines strategy to dominate electric vehicle market

SK Innovation’s CEO, Park Sang-kyu, has announced a comprehensive portfolio review aimed at steering the company through the current economic challenges and positioning it for success in the electric vehicle (EV) market. This initiative, part of SK Innovation’s broader “Carbon to Green” strategic vision set in 2021, emphasises a future-oriented approach to business amid the global shift towards electrification.

During a series of relay workshops starting in February 2024, which included interactions with employees at all levels from executives to junior staff, Park expressed confidence in the company’s strategic direction. He stressed the importance of unity and collective effort in achieving significant milestones.

“I am confident that we have set the strategic direction correctly, and with the technology and talent at SK Innovation, there is nothing we cannot achieve if all employees unite as one,” he said.

The workshops highlighted the necessity for SK Innovation, particularly its subsidiary SK On, to build competitiveness in five key areas: pricing, technology, quality, customer management, and corporate culture. Park acknowledged the current slowdown in the EV market but reaffirmed his belief in the inevitability of a transition to electric vehicles due to the ongoing global climate crisis.

Park also touched on the challenges facing the petroleum and chemical sectors of the business, urging a focus on securing a competitive advantage through operational optimisation and competitive pricing. He envisions SK Innovation achieving top status in the Asia-Pacific region in these industries.

Reflecting on the history of SK Group, Park drew inspiration from past successes achieved through perseverance and innovation during difficult times. He cited the example of former Chairman Chey Jong-hyun, who successfully pursued the “From Oil to Fiber” vertical integration strategy, a vision that took over a decade to realise.

Throughout the discussions, Park emphasised the importance of the SK Management System (SKMS), which has helped the company navigate past business crises. By embracing challenges and fostering a culture of innovation, Park is confident that SK Innovation can leverage the current difficulties as an opportunity for growth and eventually outpace its competitors.