SK On-Ford joint venture to cut capital for second time, aiming to improve investment efficiency - South Korean media

According to the Financial Supervisory Service of Korea, SK Innovation, which handles crude oil former sales, etc., recently announced that Blue Oval SK, a joint venture with the US automaker Ford, will reduce its capital for a fee.
As a result, Blue Oval SK's capital will be reduced from 12.1797 trillion won (approximately 1.3096 trillion yen) before the capital reduction to 7.1773 trillion won (approximately 771.78583 billion yen).
As a result of the capital reduction, SK Battery America, SK On's U.S. subsidiary, and Ford will each recover about 2.45 trillion won (about 263.434 billion yen) of their investments.
The total amount of Blue Oval SK's paid capital reduction will be about 9 trillion won (about 967.7 billion yen). The two capital reductions to date have reduced the company's capital by about 56%.
The reason behind SK On's decision to reduce its capital is that in December 2024, the US Department of Energy will grant Blue Oval SK a maximum of $9.63 billion (USD, approximately 1.51 trillion yen) in compensation.
The Advanced Technology Vehicle Manufacturing Loan Program (ATVM) implemented by the U.S. government provides a low-interest loan with a yield equivalent to that of a 10-year U.S. Treasury bond.
As a result, Blue Oval SK reduced its capital with compensation in order to recover its investment and manage the funds.