"Increase Corporate Value" SKT Park Jung-ho Administration Grants Executive Stock Options for 4 Consecutive Years

[Asia Economy Reporter Seolgina Cho] SK Telecom is granting stock options to its executives for the fourth consecutive year. This move aims to enhance the company's mid- to long-term corporate value through responsible management.

According to SK Telecom on the 2nd, the granting of stock options is expected to be a major agenda item at the SK Telecom regular shareholders' meeting scheduled for the 26th at the T Tower in Euljiro, Jung-gu, Seoul. This marks the fourth consecutive year since the company first introduced the system in 2018, becoming the first mobile carrier to do so. Stock options refer to a system where a company grants its executives and employees the right to purchase a certain number of its shares at a predetermined price.

SK Telecom explained, "To maximize corporate value through alignment of interests between management and shareholders, we intend to grant stock options to executives to promote the company's long-term and ultimate corporate value enhancement." Since executives who receive stock options can gain capital gains if the stock price rises based on corporate performance, it serves as a form of motivation.

This year, a total of 33,280 shares will be granted to 13 executives, including Yoo Young-sang, Head of the MNO Business. Although the scale is smaller than last year, the number of recipients has increased. Last year, 10 people including CEO Park Jung-ho were on the list; in 2019, there were 5; and in 2018, 3. Notably, Yoo, a registered executive director, has been included for four consecutive years since 2018.

SK Telecom, tasked with restructuring the group’s governance including the transition to an intermediate holding company, has recently accelerated efforts to enhance corporate value. Following the announcement of a 500 billion KRW share buyback plan last year, performance bonuses were also paid in company shares. This decision strongly reflects the determination of CEO Park and other executives who prioritize 'corporate value enhancement.'

The company is also speeding up the initial public offerings (IPOs) of subsidiaries such as One Store. The strategy is to increase corporate value through subsidiary IPOs. Following One Store in the second half of the year, ADT Caps, 11st, SK Broadband, Wavve, and T map Mobility are all lined up for IPOs.