SK Innovation (096770.KS) will absorb battery separator unit SK IE Technology (SKIET) after boards approved the plan on the 25th, targeting about 60 billion won ($43.4 million) in annual EBITDA gains and an EBITDA-positive separator business within two years. The 1-to-0.1174540 merger ratio will issue 4,481,300 new SK Innovation shares, or 2.6% of stock outstanding, effective January 1 next year, with listing on the 18th; dissenters may exercise appraisal rights at 14,620 won a share. SKIET’s finances collapsed amid slowing EV demand and Chinese oversupply, with operating losses of 291 billion won in 2024, 246.4 billion won in 2025 and 136.6 billion won in the first half, a 1.3 trillion won net loss after China-subsidiary disposal, a debt ratio above 150% and first-quarter utilization near 20%. Management cited the risk of instability spreading to SK On, after reviewing sale, lending, equity and share-exchange options. Efficiency steps include selling the China plant to SEMCORP for about 88.8 billion won, halting Jeungpyeong commercial output this year and centering production on the roughly 2 trillion won Poland plant. A 300 billion won price return swap maturing in 2028 at a 28,600 won reference price remains a variable, with market estimates of 130 billion to 140 billion won in potential cash settlement. Retail investors, more than 90% of whom face losses averaging about minus 78% from a 105,000 won IPO price now near 15,000 won, are a focus after SK Innovation cut its stake from 90% to 60% at listing and raised 1.35 trillion won largely via secondary sales.