This article was published on June 27, 2025, at 1:35 p.m. on the ChosunBiz MoneyMove site.
Battery separator manufacturer SK IE Technology is seeking to raise 300 billion won. The price return swap (PRS) method is reported to be a strong contender. SK Innovation, which urgently needs a cash injection across the company, has initiated investment attraction for another subsidiary, SK IE Technology, following its own company and subsidiary SK On.
According to investment banking sources on the 27th, SK IE Technology is pursuing a plan to receive an investment of 300 billion won and is in discussions with two to three major securities firms. The largest shareholder of SK IE Technology is SK Innovation, which holds a 61% stake.
The PRS method is favored. PRS is a derivative contract that exchanges only the price fluctuations of the underlying assets, distinguishing it from total return swaps (TRS) where cash flows such as dividends or interest are excluded.
If SK IE Technology raises 300 billion won from a securities firm using the PRS method, the securities firm will actually hold or hedge the underlying assets, such as stocks, and settle the profits and losses arising from price fluctuations with SK IE Technology.
PRS has been noted as an alternative to TRS in that it does not increase liabilities. TRS recognizes the economic ownership of entire assets and is thus seen as debt in accounting, whereas PRS is a derivative contract based on price fluctuations and is difficult to view as a liability.
SK Innovation previously selected Citigroup Global Markets as an advisory firm last year to pursue the sale of SK IE Technology's management rights. However, it seems there were no significant results, leading to the option of raising funds through PRS.
SK Innovation is currently pursuing fundraising at a corporate-wide level. It is working on plans to liquidate its liquefied natural gas (LNG) assets to raise up to 5 trillion won while actively reviewing fundraising for its subsidiary SK On.