SK Innovation announced in a regulatory filing on the 31st that it will invest 330.5 billion KRW in a special purpose company (SPC) to be established, tentatively named 'Yongin Cogeneration Co., Ltd.,' to pursue the Yongin district energy project.

■ Overview of the Investment This investment aims to participate in a paid-in capital increase of an affiliated company (to be established) to fund business development costs. The investment amount is 330.5 billion KRW (330,500 million KRW), and 66.1 million common shares of Yongin Cogeneration Co., Ltd. (tentative name) will be acquired. The investment is scheduled for the second half of 2026, and the counterparty's total planned investment amount is 331 billion KRW.

■ SPC Shareholding Structure Yongin Cogeneration Co., Ltd. (tentative name) will be established and capitalized with SK Innovation and Korea Midland Power Co., Ltd. each holding a 50% stake. Following its establishment, this entity will be incorporated as a domestic affiliate of the SK Group.

■ Background of the Decision This investment was resolved at the board of directors meeting held on the 30th. All six outside directors attended the meeting, along with the auditor (audit committee member). The authority to decide and execute the specific timing and method of the investment was delegated to the CEO. The company added that the scheduled date for the capital payment may change depending on the progress of the paid-in capital increase.