■ The merger agreement was approved with 85.75% support from the attending shareholders at the Extraordinary General Meeting held on August 27

■ CEO Park Sang-kyu stated, “We will do our utmost to ensure the smooth completion of the merger and actively review and implement various shareholder-friendly policies following the merger’s completion.”

The merger between SK Innovation and SK E&S has received strong approval at the Extraordinary General Meeting, paving the way for the creation of a colossal domestic energy company with assets worth KRW 100 trillion and revenues of KRW 88 trillion.

On the 27^th, SK Innovation held an Extraordinary General Meeting at the SK Seorin Building in Jongno-gu, Seoul, where the merger agreement was ratified with an 85.75% approval rate from the attending shareholders. The company announced that the merger plan was approved with an unprecedented level of backing.

The merger required a special resolution, necessitating the consent of at least two-thirds of the attending shareholders as well as one-third of the total issued shares. The proposal gained significant support from the majority of shareholders. Notably, the world’s leading proxy advisory firms, ISS and Glass Lewis, recommended approval of the merger, resulting in 95% of foreign shareholders actively supporting the plan.

With the merger now approved, the newly combined entity is set to officially launch on November 1^st.

Earlier, on July 17^th, both SK Innovation and SK E&S conducted board meetings to pass the merger proposal. This strategic decision was made to proactively address uncertain internal and external environments and to establish a robust growth foundation for future energy businesses. SK Innovation, which recorded an operating profit of KRW 1.9 trillion last year, and SK E&S, with an operating profit of KRW 1.33 trillion, determined that a merger was the optimal path forward.

The formation of the new entity will create the largest private energy company in the Asia-Pacific region, with assets totaling KRW 100 trillion and revenues of KRW 88 trillion. The merger is anticipated to enhance the competitiveness of the energy portfolio by integrating SK Innovation’s oil and battery businesses with SK E&S’s liquefied natural gas (LNG) and renewable energy businesses. In the long run, the merged company aims to evolve into a corporate that provides comprehensive Energy Solution Package tailored to global energy market demands.

Furthermore, the merger is expected to create a stable financial and profit structure. By merging with SK E&S, a company that generates consistent profits from LNG and power operations, the newly combined entity is set to increase revenue stability and strengthen financial robustness through significantly enhanced profitability. SK Innovation forecasts that the synergy from the merger will exceed an EBITDA of KRW 2.2 trillion by 2030, with an overall EBITDA target of KRW 20 trillion.

Park Sang-kyu, CEO of SK Innovation, stated, “We will do our utmost to ensure that this merger, which will serve as a foundation for the company’s long-term stability and growth, is carried out smoothly.” “Furthermore, we will actively review and implement various shareholder-friendly policies following the completion of the merger,” he added.

[Photos]

(Photo 1, 2) Park Sang-kyu, CEO of SK Innovation, delivers a greeting at the Extraordinary General Meeting held at the SK Seorin Building in Jongno-gu, Seoul, on the 27^th

(Photo 3) “Park Sang-kyu, CEO of SK Innovation, declares the adjournment at the Extraordinary General Meeting held at the SK Seorin Building in Jongno-gu, Seoul, on the 27^th