It was truly rewarding to transform something that existed only conceptually into concrete business plans
through consultations with our partner companies.
What is the role of “New BM Design” at SK Trading International?
To achieve the company's Net Zero targets, we are responsible for designing and driving new Business Models (BM) in both the energy transition and carbon market sectors. The process of propelling these new business models includes ideation about the business, identification of suitable deals or partners, establishment of business development structures and negotiations, and the final execution of contracts for business implementation.
How does the work of “New BM Design” look like in detail?
The New BM Design Division is extensively engaged in business development across a broad spectrum of the current energy and chemical industries. Rather than having specific fixed tasks, the content continuously evolves in response to market conditions and our business strategy. In the energy transition, our current focus is on low-carbon aviation and marine fuel based on bio-feedstock and captured CO2, as well as the introduction of clean hydrogen and ammonia projects overseas. We are making our best efforts to design and promote new BMs in these various areas. In the carbon market, we entered the Korean Emissions Trading Scheme (K-ETS) on behalf of the SK Innovation subsidiaries, and we are planning to expand the BM to establish our own emissions trading. We are also developing the Carbon Offset Project and designing new BMs for Carbon Credit Trading in the domestic and international compliance carbon markets as well as the voluntary carbon markets.
What are the strengths of “New BM Design” when it comes to trading?
Unlike the Trading divisions, where each department has its own area and target products, the New BM Design Division has the advantage of collaborating with other departments without any restrictions. While our depth of knowledge about each product or market might not be as profound as the departments directly engaged in trading, we consider it a distinctive feature of our role to look at the market from a broader, long-term perspective, contemplating the expansion of existing businesses or the consideration of new trading items.
What skills do you need to specialize in the field of “New BM Design?”
Planning and implementing a new business often requires a wide range of basic knowledge in various fields, such as accounting, finance, law, and technology, rather than expertise in a specific field. Therefore, colleagues who are currently engaged in New BM Design come from various backgrounds and specializations, complementing each other's work. In fact, I believe that you can improve the skills you lack through personal efforts while working. Rather than any specific knowledge, we believe that effective communication is the most crucial skill. This is due to the nature of the work because it often involves discussions with a variety of internal and external, domestic and international partners.
When did you have the most fun working in “New BM Design?”
I believe the real charm of the New BM Design work comes from the process of transforming intangible ideas, often involving nascent or undefined technologies, into tangible businesses. We signed an offtake contract for net zero oil with Occidental last year. It was truly rewarding to transform something that existed only conceptually into concrete business plans through consultations with our partner companies.
What has been the most challenging aspect of working in “New BM Design?”
In professional baseball, a hitter is considered excellent if they have a batting average above .300. However, in the field of new business development, even a batting average of .100 is often considered remarkable. The journey of developing a small idea to actual business implementation can be arduous, and there are many cases where projects are suspended or shelved during the process. It's particularly challenging and disheartening when a project you've put your heart into gets halted for various reasons, but such is the nature of new business development, and we try to understand and accept it.
A word of advice to future members of SK Trading International's “New BM Design” team
I think that the name “New BM Design” is a bit vague and may not convey the full scope of what we do. While the nature of our department may seem somewhat disparate compared to other departments that perform trading activities within well-defined business areas, we believe that we make significant contributions to both the current and future growth of the company through various forms of collaboration with the trading departments. If you are someone filled with creative ideas and prefer engaging with diverse individuals and experiences, you will likely adapt well and excel in the New BM Design Division. We encourage you to take a keen interest in this area. Thank you.