SK Innovation turns to younger leadership in C-suite reshuffle ahead of SK E&S merger
Published: 24 Oct. 2024, 17:33
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- LEE JAE-LIM
- [email protected]
![Kim Jong-hwa [SK INNOVATION]](https://koreajoongangdaily.joins.com/data/photo/2024/10/24/cae2472b-d74d-4f84-8bf5-0541f7a8c1b7.jpg)
Kim Jong-hwa [SK INNOVATION]
SK Innovation carried out a C-suite reshuffle at three of its subsidiaries almost a week ahead of its merger with SK E&S, appointing younger leaders with engineering backgrounds.
The energy company said on Thursday that the replacements will contribute to enhancing its operational efficiency.
The average age of the three CEOs is 53, implying a generational shift in leadership in hopes of swifter and higher flexibility in decision-making processes.
The appointment comes about a month ahead of SK’s annual reshuffle, which takes place in early December.
Kim Jong-hwa, previously head of SK Energy’s Ulsan complex, was tapped as the new CEO of SK Energy. He possesses expertise in both the refining and chemical businesses.
Kim, 57, joined the company in 1994, when it was then known as Yukong, and has held key positions in field management, including head of engineering at SK Energy, head of safety, health and environment at SK Innovation and chief safety officer at SK Geo Centric.
![Choi Ahn-seop [SK INNOVATION]](https://koreajoongangdaily.joins.com/data/photo/2024/10/24/9647084e-182e-4baf-a97b-2bf9a2166e1d.jpg)
Choi Ahn-seop [SK INNOVATION]
Choi Ahn-seop, 52, the prior head of the materials division at SK Geo Centric, has been appointed to lead the affiliate. Choi has held roles such as SK Geo Centric's head of the optimization office and head of the strategy and planning division.
![Lee Sang-min [SK INNOVATION]](https://koreajoongangdaily.joins.com/data/photo/2024/10/24/a3798a54-c647-4402-8b94-8c582a2ba275.jpg)
Lee Sang-min [SK INNOVATION]
Lee Sang-min, 49, current head of the green growth division at SK Enmove, was designated as the new CEO of SK IE Technology. He has developed advanced technologies at SK Technology Innovation Center and headed the green growth division at SK Enmove. Lee’s achievements include launching new key businesses such as heating, ventilation and air conditioning systems and EV fluids.
Lee’s appointment is subject to approval in the general shareholder meeting next March.
SK Geo Centric also has promoted three exceptionally performing individuals to executive positions as part of the organizational restructuring. Including retiring executives, SK Geo Centric’s senior leadership cadre shrinks by three seats to 18 from 21.
SK Group’s intense rebalancing effort is anticipated to impact C-suite executives, with changes expected to be outlined in December’s reshuffle. Media reports suggest a 20 to 30 percent reduction in executive positions at affiliates with weak profitability or inefficient management.
SK Ecoplant, the construction arm of SK, reduced its number of executives by 23 percent to 51 from 66 in the company’s reshuffle announced last week.
“On Nov. 1, SK Innovation will merge with SK E&S to launch as a total energy and solution company,” SK Innovation spokesperson said in a statement. “In line with our portfolio adjustments, we have swiftly stabilized the organization and appointed CEOs who will aggressively push forward with our initiatives in operational improvement.”
SK Innovation currently possesses a total of nine affiliates including SK On, SK Enmove, SK Incheon Petrochem, SK Trading International, SK Earthon and SK Enterm.
Battery maker SK On, which has continued to bleed losses, will merge with SK Trading International, a crude oil trading subsidiary, and SK Enterm, an energy logistics subsidiary, on Feb. 1 of next year.
BY LEE JAE-LIM [[email protected]]
with the Korea JoongAng Daily
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