SK Innovation (KRX:096770) plans to transfer 320 billion won of assets and contracts related to its Yongin Integrated Energy project to Yongin Cogeneration Co., a special-purpose company to be established with Korea Midland Power, according to a Monday filing with the Korea Exchange.

The South Korean energy and chemicals conglomerate said it and Korea Midland Power will each hold a 50% stake in the planned affiliate. The transfer is scheduled to take place in the second half of 2026 following the establishment of the special-purpose company.

The transaction is intended to promote the project and is expected to reduce the company's tangible assets and transfer related contractual rights, while generating proceeds from the transfer.

Shares of the company were down 2% in recent trade.