SK Innovation is moving to reabsorb SKIET as its battery subsidiary SK On, despite reporting an operating profit of ₩821.8 billion in the second quarter, its strongest quarterly result since being spun off in 2021 and its first profit in seven quarters. The result was partly supported by one-off compensation payments from customers that missed minimum purchase commitments amid weaker electric-vehicle demand. SK On is seeking growth in ESS (energy-storage systems) through a 9 GWh LFP (lithium iron phosphate) cell supply agreement with U.S. maker Neovolta valued at about ₩1.5 trillion, with additional cooperation of a similar size under discussion. Brokerages remain cautious, citing conversion costs, delayed revenue recognition and continued losses, with most expecting an operating loss of about ₩500 billion next year. The planned SKIET merger would give shareholders 0.117454 SK Innovation shares for each SKIET share, valuing SKIET at ₩14,783 per share versus its ₩105,000 IPO price. SK Innovation shareholders would face limited dilution, while SKIET investors would exchange exposure to the separator business for the parent company's broader results. South Korea's Financial Supervisory Service is reviewing a request to amend the merger registration statement, and pressure is building for SK On to show visible progress by the first half of next year.