SK On Executive Vice Chairman Chey Jae-won talks during a town hall meeting held at SK On's Gwanhun Building in Jongno-gu, Seoul, on Wednesday. (SK On)

SK On Executive Vice Chairman Chey Jae-won said Wednesday that he expects to see “tangible results” in the company’s still-nascent electric vehicle battery business from as early as next year, calling the company “the fastest-growing company in the fastest-growing industry.”

He was speaking during a town hall meeting held at the company’s headquarters in Seoul, with some 400 executives and employees in attendance.

“Typically, a manufacturing company suffers operating losses in the first four to five years before getting in the black. Even though we are facing difficulties now since the spinoff, I expect to see tangible results next year if the current challenges are handled well,” Chey said.

“Even overseas (partners) are surprised by our stunning growth rate, so it seems unavoidable for us to suffer some growing pains,” he added.

The CEO’s remarks come as the battery maker posted operating losses worth more than 1 trillion won ($760 million) last year, in stark contrast to its crosstown rivals LG Energy Solution and Samsung SDI which recorded more than 1 trillion won in operating profits during the same period.

“So far, we have focused on rapid growth by securing large-scale orders and expanding production facilities. In the future, we will ramp up efforts to achieve sustainable growth by seeking operational efficiency and diversifying the business portfolio,” SK On President Ji Dong-seop during the meeting.

During the meeting that lasted for almost three hours, Chey, the younger brother of SK Group Chairman Chey Tae-won, stressed the importance of working together as a team several times, saying he values teamwork over individual excellence.

Since SK On became a spinoff of SK Innovation at the end of 2021, the number of employees has almost doubled to some 3,000 now.

"Since we are all in the same boat, having a common direction is crucial. Even though each person's rowing power may be different, it is necessary that we all row in the same direction to make progress effective," the vice chairman added.

Toward the end of the meeting, Chey noted that he can relate to some of the difficulties that employees are facing.

He shared his own experience of being stressed out when attending late-night meetings with overseas businesses and working with clients.

“I am not much different from you,” Chey added.

According to SK On, this was the company's first town hall meeting of this year, held under the slogan "SK On, Drive On.”

By Song Seung-hyun (ssh@heraldcorp.com)