SK (034730.KS) will inject an additional 30 billion won ($21 million) into its electric vehicle charger manufacturing subsidiary SK Signet. The support comes nine months after a previous capital injection in March, as the prolonged EV market chasm—a temporary demand plateau—has significantly worsened SK Signet's overall business environment.
According to the Electronic Disclosure System on the 19th, KONEX-listed SK Signet announced the previous day that it had decided on a 30 billion won third-party allotment capital increase targeting SK. The payment is scheduled for the 26th of this month. The raised funds will be used as operating capital over 2026-2027 for expanding North American production capacity, broadening the EV charger lineup, R&D investment for specification upgrades, and purchasing raw materials for EV charger manufacturing.
SK acquired SK Signet, the market leader in ultra-fast chargers in the United States, for 293 billion won (55.5% stake) in 2021. SK Signet, which posted operating profit of 3 billion won as recently as 2022, saw its performance deteriorate rapidly due to the EV chasm. The company swung to a loss in 2023 with an operating loss of 149.4 billion won, and the operating loss ballooned further to 242.8 billion won last year. This is why SK participated in SK Signet's 150 billion won third-party allotment capital increase in March this year, providing 115 billion won in cash.
Rumors of SK selling SK Signet once emerged, but the prospect of SK—which has already invested more than 400 billion won into SK Signet—receiving fair value is slim. SK Signet's market capitalization stood at just 180.7 billion won as of the previous trading day. Ultimately, SK has no choice but to prioritize normalizing SK Signet's management. The purpose of this capital increase was also specified as "improving financial structure."
SK Signet plans to improve its performance based on the U.S. market, where it holds a dominant share, as the EV market continues to grow despite the chasm. The United States is the world's third-largest charger market valued at 7.2 trillion won as of last year, and 80% of SK Signet's revenue is generated in the U.S. SK Signet CEO Kim Jong-woo recently said in a media interview, "We will definitely turn profitable next year, or by 2027 at the latest."
