[Asia Economy Reporter Park So-yeon] SK Group disclosed the social value it created last year in monetary terms. Although performance declined due to sluggish market conditions, the transparent disclosure of measurement results was evaluated as demonstrating the sincerity of social value creation.
SK Innovation announced on the 2nd that the social value created last year was measured at 171.7 billion KRW, which is 14% of the 2018 level.
This was mainly due to a significant decrease in economic indirect contribution performance, which evaluates dividends, taxes, and employment, dropping from 2.3241 trillion KRW in 2018 to 1.2183 trillion KRW last year.
SK Innovation explained that "the deterioration of business conditions caused by the downturn in the refining and petrochemical industries, which began at the end of 2018, had an impact."
However, investment in growth businesses such as electric vehicle batteries led to employment exceeding 7,000 people for the first time ever, offsetting the decline in dividends and taxes.
The social value in the business sector was analyzed at -1.1234 trillion KRW, an improvement of 68.6 billion KRW. However, the 'minus 1 trillion KRW' barrier could not be broken due to the carbon-centered business structure.
The social value in the social contribution sector also increased by 27.4 billion KRW to 76.8 billion KRW, thanks to strengthened CSR (Corporate Social Responsibility), volunteer activities by members, and increased donations.
Kim Jun, CEO of SK Innovation, said, "Last year's social value painfully showed the reality that 'this cannot continue as is,'" adding, "We must tenaciously implement Green Balance 2030."
Green Balance 2030 is a strategy to intensively foster green businesses that create positive environmental impacts and to reduce negative environmental impacts to zero by 2030.
CEO Kim emphasized, "This year, we will reduce business social performance to below minus 1 trillion KRW."
To this end, the plan is to expand battery production capacity domestically and internationally from the current 20 GWh (gigawatt-hours) to 71 GWh in 2023 and over 100 GWh in 2025.
Through the battery-based business model BaaS (Battery as a Service), an eco-friendly battery value chain will also be established.
In the energy and chemical businesses, they plan to discover and introduce business models such as eco-friendly process improvements, recycling of waste plastics, and CO2 reduction technology development.
SK Telecom measured that it created social value of 1.8709 trillion KRW last year, an 8.3% increase from 1.727 trillion KRW in 2018.
By sector, the 'economic indirect contribution performance' was 1.6851 trillion KRW, up 0.7% from the previous year.
Employment and dividends increased by 11.3% and 1.8%, respectively, but tax payments decreased by 25.7% due to profit declines from large-scale investments in 5G (5th generation mobile communication).
The 'business social performance,' which includes quality of life, labor, mutual growth, and environment, was 147.5 billion KRW, a 627% increase. The value generated more than doubled due to a significant increase in T map driving habit-linked insurance subscribers and a decrease in personal accident rates, and it also reflected social safety net establishment and the founding of standard workplaces for the disabled.
The 'social contribution social performance' was 38.3 billion KRW, a 13% increase from 2018. SK Telecom explained that this reflected disaster early recovery activities such as establishing emergency communication facilities at the Sokcho and Goseong wildfires and typhoon sites, as well as expanded donations.
SK Hynix announced that the social value it created last year was 3.5888 trillion KRW, a 63% decrease from the previous year.
The economic indirect contribution performance, which evaluates taxes, employment, and dividends, was 4.0593 trillion KRW, down 60% from 2018.
This was due to a 92% decrease in tax payments caused by the semiconductor market downturn.
However, the company explained that employment increased by 11% compared to the previous year, with 31,508 domestic employees as of the end of last year.
The business social performance, which looks at achievements in social and environmental areas during product development, production, and sales, was recorded at -539.8 billion KRW.
Among these, the mutual growth sector performance increased by 36% due to expanded semiconductor education and recruitment support programs for partner companies.
Meanwhile, social contribution social performance for local communities decreased by 8% from the previous year to 69.3 billion KRW.
SK Hynix plans to actively promote AI-based energy-saving solution development and the use of renewable energy at all business sites. It will also accelerate the development of low-power products in semiconductor development.
Additionally, it plans to develop social safety nets that support national survival in preparation for infectious disease issues such as COVID-19.
SK Materials, a semiconductor materials company, created social value of 139.2 billion KRW last year, a 32% increase from the previous year.
The company explained that overall performance increased significantly due to increased employment and dividends from business expansion such as the construction of a new factory for semiconductor products.
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