SK Networks Holds Annual General Meeting... "Will Actively Invest in Businesses with Future Value"

Sang-kyu Park, President of SK Networks, "Linking Business Models to Solving Social Issues"

Sang-kyu Park, President of SK Networks

Photo by SK Networks

[Asia Economy Reporter Ki-min Lee] On the 29th, Park Sang-gyu, CEO of SK Networks, stated at the shareholders' meeting held at the headquarters in Myeongdong, Seoul, "We will actively invest in businesses with future value to restore market trust," and added, "We plan to upgrade our business model to be linked with solving social issues."

CEO Park announced that this year SK Networks will focus on ▲ improving business performance centered on the rental business ▲ securing additional growth engines ▲ strengthening Environmental, Social, and Governance (ESG) management for sustainable development. SK Networks also plans to strengthen responsible management of the board by establishing an ESG Management Committee and a Personnel Committee under the board of directors.

At the shareholders' meeting, directors Ha Young-won and Im Ho, whose terms had expired, were reappointed, and Lee Ho-jung (inside director) and Lee Moon-young (outside director, Audit Committee member) were newly appointed.

To establish and develop sound governance, the basis for the Governance Charter, established in the articles of incorporation, was specified. Additionally, reflecting amendments to the Commercial Act and Capital Markets Act, provisions were newly added to separately appoint one member of the Audit Committee and to ensure that all directors are not composed of a single gender.

Despite a challenging management environment last year due to domestic and international economic downturns and increased uncertainty, SK Networks achieved KRW 10.6259 trillion in consolidated sales and KRW 123.9 billion in operating profit by transforming its business structure centered on home care and mobility rental. Although sales decreased by 18% year-on-year due to the sale of the gas station business and the impact of COVID-19, operating profit increased by 13%.

In particular, SK Magic, which has continued to launch new products considering customer trends and market environment changes, surpassed KRW 1 trillion in sales and 2 million rental accounts. SK Rent-a-Car, which completed its first year as an integrated corporation last year, also succeeded in securing business competitiveness through synergy creation.