This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:11 p.m., Jan. 29, 2026.
SK Group's dilemma over battery maker SK On is deepening. With liabilities in the multitrillion-won range piling up and the government questioning the sustainability of the "three battery makers" system, some analysts say it is realistically time for SK to start in earnest a sale of SK On.
SK has publicly said it will normalize operations without selling SK On, but signs have emerged that it contacted potential buyers behind the scenes. Still, industry figures say, "The concept of a 'for-sale asset' only holds if there is someone to buy," adding, "In reality, there is no one that can acquire SK On." Their view is that a bold, government-led restructuring is the best option.
According to the investment banking (IB) industry on the 29th, SK Group recently sounded out some strategic investors (SI) on whether they were interested in acquiring SK On. POSCO, which has cooperated with SK On under a comprehensive business agreement since 2022, is understood to have received an acquisition proposal but signaled a refusal, citing its financial situation. Some in the industry say Hyundai Motor Group received a similar proposal.
An industry source familiar with SK's internal situation said, "SK says publicly it will try to keep SK On alive without selling, but in fact, as far as I know, they see 'a sale as the best option' if possible." The person added, "However, for now there is no clear buyer, so the reality is that it is perceived as a 'perpetual for-sale asset' (on the block but not selling)."
In this situation, Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources even raised doubts about maintaining the three-company system of battery makers (LG Energy Solution, Samsung SDI, SK On), complicating the group's calculus about SK On's future. Recently, in a meeting with secondary battery industry executives, Kim said to the effect that "given the battery market environment and production volumes, the three-company system is in doubt." The industry is taking Kim's remarks as hinting at the possibility of forceful industrial restructuring.
If restructuring in the battery industry accelerates, the consensus is that the primary target will likely be latecomer SK On. Last year, SK On posted 6.9782 trillion won in revenue and an operating loss of 931.9 billion won. Notably, its fourth-quarter operating loss was 441.4 billion won, more than 300 billion won wider than the previous quarter.
In the same period, LG Energy Solution recorded revenue of 23.6718 trillion won and turned to a profit with 1.3461 trillion won in operating income. Samsung SDI has not yet announced earnings, but the brokerage industry estimates its annual revenue at 12.91 trillion won.
Given the government's stance, some say it will be difficult at this point for SK Group to sell SK On as is. That is because the current three-company system would remain intact.
It is also true that there is no suitable buyer. Hyundai Motor, a frequent candidate whenever a large asset comes on the M&A market, could face a conflict of interest because SK On already has relationships with multiple automakers. The moment SK On is folded into a particular automaker's affiliate, there could be customer defections or pressure to renegotiate contracts from competing clients. That is why industry officials believe that even if Hyundai Motor is willing to invest in batteries, the likelihood of acquiring SK On is low.
Because of the company's size, the group-level dilemma is growing, but in fact there is not much time left. The liability-type capital raised by SK On and SK Innovation last year is close to a total of 5 trillion won. Meritz Financial invested a total of 2 trillion won in SK On in the form of a price return swap (PRS), maturing on Aug. 18, 2028. However, the maturity can be extended by mutual agreement. In addition, 3 trillion won was invested in the parent company SK Innovation's LNG power plant in the form of CPS and was used to repay SK On's financial investors (FI).
An industry official said, "I understand SK On even once sought a sale to Samsung SDI in the past," adding, "Now one-on-one transactions of that kind are difficult, and we need to find a restructuring solution that preserves the domestic battery industry, maintains competitiveness, and eases the burden on industry."