Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Why SK Innovation chose Hyundai EVs amid 'Buy America' campaign
SK Innovation employees examine the IONIQ 9 and eG80 at the company's electric vehicle charging station in Seoul in this undated photo. Courtesy of SK Innovation
By Park Jae-hyuk
Purchase of GM vehicles still an option for SK Group
SK Innovation's recent decision to replace its company cars with Hyundai Motor electric vehicles (EVs) was in contrast to expectations that SK Group affiliates would follow Chairman Chey Tae-won's recommendation to buy automobiles from General Motors or other U.S. carmakers to help counter trade pressure from the Donald Trump administration.
The intermediate holding company overseeing SK Group’s petrochemical and energy businesses recently instructed all executives to choose between the IONIQ 9 and eG80 as their new company vehicles. Both Hyundai EVs are powered by batteries made by SK On, an SK Innovation affiliate.
SK Innovation plans to begin replacing its fleet next month, aiming to complete the transition by the end of the year.
“Amid the global economic slowdown and weak EV demand, the domestic EV industry has faced difficulties,” an SK Innovation official said. “We made this decision to boost EV adoption in Korea by ensuring all our executives use EVs.”
In his capacity as the Korea Chamber of Commerce and Industry (KCCI) chairman, Chey signed a memorandum of understanding in May with American Chamber of Commerce in Korea (AMCHAM) Chairman James Kim and GM Korea CEO Hector Villarreal to jointly promote AMCHAM’s “Buy America” campaign, which aims to cut the U.S. trade deficit with Korea.
At the time, the KCCI agreed to encourage member companies to include GM vehicles in their executive and business-use fleet brochures. Last month, KCCI Executive Vice Chairman Park Il-joon switched to using a Cadillac Escalade for business, replacing his previous Genesis.
SK Group has not closed the door on buying GM vehicles as its company cars.
“The group is still considering purchasing GM vehicles, regardless of SK Innovation’s selection of Hyundai EVs,” an SK Group spokesperson said. “However, we have not decided on the volume or timing yet.”
When the KCCI joined the Buy America campaign, Hyundai Motor reportedly agreed that it was necessary.
In response to Trump's protectionist trade policies, the Korean carmaker itself has also strengthened its partnership with GM. Earlier this month, the two automakers announced they will jointly launch five new vehicles by 2028 as they seek to expand in Latin and North America.