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SK On offers employees buyouts and unpaid leave as EV slump deepens

Published: 20 Feb. 2026, 20:55 Updated: 21 Feb. 2026, 10:25

An SK On battery plant is seen in Seosan, South Chungcheong. [SK ON]

As the electric vehicle (EV) chasm — a period of stalled demand between early adopters and mass market buyers — drags on, SK On has rolled out a voluntary separation program for employees for the first time in two years.

SK On said Friday in an internal notice that it will implement an SK On Next Chapter support program offering voluntary separation and unpaid leave. Eligible employees are those who joined the company before Jan. 1, 2025. SK On also offered voluntary separation and unpaid leave in 2024.

Employees who opt for voluntary separation will receive compensation worth between six and 30 months of their monthly pay, depending on tenure and age. The company will also provide tuition support for employees’ children for the second semester of this year.

The unpaid leave option is a self-development program that can last up to two years and includes education support. If an employee enrolls in a job-related degree program such as a bachelor’s, master’s or doctoral course, the company will cover 50 percent of tuition for two years, and pay the remaining 50 percent upon the employee’s return after completing the degree.

Hit hard by the prolonged slump in EV demand, SK On posted an operating loss of nearly 1 trillion won ($690 million) in 2025. Market conditions have worsened further as the Trump administration ended federal electric vehicle tax credits starting in October 2025, prompting major automakers to revise their electrification strategies.

A line of unsold 2024 F150 and Lightning electric pickup trucks sit at a Ford dealership in Denver, Colorado on May 19, 2024. [AP/YONHAP]

In December 2025, SK On also dissolved its joint battery production venture with Ford Motor Company. The company has been moving to diversify its business portfolio by expanding into energy storage system batteries, but the segment is still viewed as too small to replace the electric vehicle battery market.

Other battery makers are also moving quickly to shore up their finances amid the EV downturn. LG Energy Solution said Friday it filed a securities registration statement with the Financial Supervisory Service to issue corporate bonds worth 400 billion won.

Samsung SDI said Thursday it reported to its board a plan to pursue the sale of its stake in Samsung Display to secure investment funds and improve its financial structure. Samsung SDI currently holds a 15.2 percent stake in Samsung Display, and specific terms and scale have not been decided.

“As the electric vehicle chasm has slowed business growth, this is aimed at improving management efficiency and securing a foundation for sustainable growth,” said an SK On official. “We will provide a range of opportunities for employees to build capabilities through self-development, and we will offer the best possible support to those seeking a new path.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NA SANG-HYEON [[email protected]]