SK Group is seeking to divest SK Signet Inc., the EV charger manufacturer it acquired just four years ago, as South Korea’s second-largest conglomerate cuts underperforming assets from its portfolio.
The proposed sale would involve a 62.9% stake owned by SK Inc., the group’s investment holding firm, with an expected transaction value of 300 billion won ($212 million), according to people familiar with the matter. SK has been in private discussions with local private equity funds about the potential deal.
SK’s move comes as the EV charging sector faces increasing commoditization and SK Signet struggles with profitability. Despite ranking first in the US ultra-fast charger market and second globally, the company reported an 83.8 billion won revenue with a substantial 244.1 billion won net loss in 2024.
“SK is moving away from its previous all-in approach in EVs and batteries,” an industry analyst said. Quality issues with power modules have plagued the business, resulting in canceled orders and higher warranty costs.
The divestment represents a strategic shift for SK, which initially paid 293 billion won for a 55.5% stake in 2021. The conglomerate is now focusing resources on higher-margin businesses while demonstrating willingness to shed non-core assets even at a loss.
SK Group’s portfolio realignment extends beyond SK Signet, with the company also proceeding with the sale of waste treatment affiliates Renewus and Renewone.
