SK On attracts $1 billion in investment

SK On, the electric battery affiliate of Korea's petroleum, alternative energy and oil exploration corporation SK Innovation, has secured 1.3 trillion won ($1 billion) in long-term investment.

SK Innovation on Wednesday said its board meeting decided to sign a shareholders' agreement to attract investment in SK On.

Signed by SK Innovation, SK On and financial investors like Korea Investment Private Equity, the contract means SK On will secure the investment through issuance of new shares.

This investment attests to SK On's growing momentum in its business expansion. The company is concentrating efforts to secure global production bases like in the US and Hungary and signed a memorandum of understanding on Tuesday with Hyundai Motor to source electric vehicle batteries in North America.

SK On will also seek more long-term investors.

SK Innovation Chief Financial Officer Kim Yang-seob said, "We are smoothly procuring the needed funds through methods like getting funding from policy financial institutions at home and abroad and attracting long-term financial investors."

Write to Chae-Yeon Kim at why29@hankyung.com