Younger brother of SK chief Chey named head of SK Innovation

SK Group Chairman Chey Tae-won appointed his younger brother, Chey Jae-won, to lead the conglomerate's energy units.

Chey Jae-won, new executive vice chairman of SK Innovation [YONHAP]

The younger brother of SK Group Chairman Chey Tae-won was formally moved to lead the conglomerate's energy units on Monday in an apparent move by Chey to tighten the family's grip on the group and restructure its business portfolio.

Executive Vice Chairman Chey Jae-won, who had led SK On, the battery affiliate of SK Innovation, has been appointed as the new head of SK Innovation, one of the group's key affiliates.

SK Innovation has nine subsidiaries, including SK On, SK Energy and SK geo centric.

Some industry observers interpreted his abrupt appointment as an assignment of responsibility for SK On's prolonged sluggish performance, driven by the stalled electric vehicle market.

SK On reported an operating loss of 581.8 billion won ($422.7 million) last year and remained in the red in the first quarter of 2024 with a loss of 331.5 billion won.

Others, however, believe his new role reflects his success in founding the group's battery business with SK On, which was spun off from SK Innovation in 2021.

The vice chairman's appointment also aligns with his older brother's strategy to consolidate family-based control within the group through the SK Supex Council, the conglomerate's highest decision-making body that is chaired by their cousin, Chey Chang-won.

Additionally, insiders noted that Chairman Chey Tae-won's ongoing divorce case, which could affect his control over the group, is a contributing factor in the leadership change.

As the new chief of SK Innovation, Chey Jae-won is expected to play a key role in rebalancing the group's business portfolio, particularly in reviving the struggling SK On.

The battery subsidiary has plans to invest a combined 7.5 trillion won this year in a bid to enhance its competitiveness.

"Now that Chey [Jae-won] is in charge of SK Innovation as a whole, it seems easier for him to map out a solution for SK On," a source said.

Yonhap