SK Group plans to raise $5.8 billion to restructure its energy subsidiaries.

SK Group plans to raise 8 trillion Korean won by the end of the year to restructure its energy subsidiary and help repay most of its debt. According to a statement on Wednesday, the fundraising will mainly be done through the sale of stocks by SK Innovation Company and its subsidiaries, as well as issuing perpetual bonds. As part of the restructuring, SK Innovation's subsidiaries SK On and SK Enmove will be merged. SK Group plans to use the funds raised to reduce its net debt of more than 9.5 trillion Korean won. The group announced this restructuring plan due to the slowdown in the global electric vehicle industry, ongoing supply chain constraints, and high interest rates affecting its business. "Due to challenging operating environments such as the slowdown in demand for electric vehicles and intensifying competition, we are facing many challenges," said Lee Sik-hee, CEO of SK On, at a press conference, "but this slowdown also provides us with an opportunity to restructure our business and optimize our operational structure."