The Meaning of SK Supex Cho Dae-sik's 'Third Term'

Jodaesik, Chairman of SK Supex Council

[Asia Economy Reporter Park So-yeon] Cho Dae-sik, chairman of the Supex Council, a consultative body composed of CEOs of SK Group affiliates, has become the first in SK Group’s history to achieve a third consecutive term. As SK Group has designated next year as the inaugural year to enhance stakeholders’ trust in its financial story, Chairman Cho’s role overseeing this is expected to grow even more significant.

The regular executive appointments announced by SK Group on the 3rd are interpreted as efforts to maintain stability amid the COVID-19 crisis while also strengthening future growth businesses.

In particular, the business community has viewed Chairman Cho’s reappointment by Chairman Chey Tae-won positively. The Supex Council chairman evaluates and leads the CEOs. Since its establishment in 2013, no chairman has served three consecutive terms until now. Chairman Cho is the first. He is recognized for deeply understanding and communicating Chairman Chey’s management philosophy, which emphasizes social value and ESG (environment, social, governance). This appointment also proves that Chairman Cho is effectively leading the group’s overall paradigm shift. The business community regards him as a strategist with foresight and skilled in coordinating among affiliates.

A business community official said, “In major transformations changing the group’s portfolio, such as SK Hynix’s acquisition of Intel’s NAND division, SK Engineering & Construction’s acquisition of the nation’s top waste and water treatment company, and SKC’s acquisition of a key battery material manufacturer producing copper foil, Chairman Cho played an active leading role. He is highly regarded within the group as a ‘strategist’ who closely communicates with Chairman Chey regarding the management paradigm and shapes the group’s future.”

Chairman Cho is expected to drive new business discovery, including mergers and acquisitions (M&A), and ESG-centered management going forward. The Supex Council has established a Governance Committee to enhance transparency in governance and accelerate board-centered management of affiliates. Yoon Jin-won, president in charge of the Supex Council’s Autonomous and Responsible Management Support Group and Legal Support Team, was appointed as the Governance Committee chairman.

Additionally, the existing Energy and Chemical Committee was abolished, and an Environment Business Committee was newly established to actively address environmental agendas. Kim Jun, president of SK Innovation, was appointed as chairman of the Environment Business Committee. The ICT Committee chairman is Vice Chairman Park Jung-ho.

Furthermore, the Bio Subcommittee, AI Subcommittee, and DT (Digital Transformation) Subcommittee will operate under their respective committees to lead ESG issues, fulfill social responsibilities, and accelerate the development of future growth engines such as bio, artificial intelligence (AI), and digital transformation (DT).

This SK Group personnel reshuffle promoted a total of 107 executives, including 103 new appointments and 4 promotions to vice president or president. Considering the management environment affected by COVID-19, the number of new appointments slightly decreased compared to previous years, but SK Group explained that talented personnel were boldly selected for new growth businesses such as bio, materials, and batteries.

Seven female executives were newly appointed, the same number as last year, increasing the total number of female executives in the group to 34. The youngest among the newly promoted executives is Choi So-jeong, born in 1982 and 38 years old, who is in charge of subscription media at SK Telecom and head of the Dreamus Company Strategy Group. SK Group plans to systematically nurture young and capable female executive candidates early to help them grow into executives.

An SK Group official said, “Although the management environment next year will not be easy, we hope this personnel reshuffle will serve as a stepping stone to fully advance the financial story we have prepared and take a further leap forward. SK Group will continue to fulfill its corporate social responsibilities and do its best to sustainably grow as a global company that sets a worldwide example in ESG.”