SK Hynix's Social Value Creation Performance Last Year: 4.8874 Trillion KRW

[Asia Economy Reporter Su-yeon Woo] SK Hynix created social value (Social Value·SV) worth 4.8874 trillion KRW last year alone. It generated social value exceeding 5 trillion KRW in economic indirect areas such as tax payment, employment, and dividends, and its social contribution performance also increased by more than 60% compared to the previous year, showing significant contributions to the Korean economy.

SK Hynix announced its social value creation performance for 2020 on the 10th. Economic indirect contribution performance including tax payment, employment, and dividends amounted to 5.3737 trillion KRW, business social performance in social (labor·mutual growth) and environmental fields was -596.9 billion KRW, and social contribution social performance such as donations and social contribution activities totaled 110.6 billion KRW.

SK’s major affiliates have been quantifying and announcing the social value created in the previous year in three areas?economic indirect contribution performance, business social performance, and social contribution social performance?every year since 2019.

SK Hynix’s economic indirect contribution performance was 5.3737 trillion KRW, with social value creation increasing by 32% compared to the previous year as the semiconductor market improved last year. However, business social performance decreased by 11% due to environmental impacts such as greenhouse gas emissions, while social contribution social performance increased by 60% due to focused support for overcoming COVID-19.

Looking into each area in detail, the economic indirect contribution performance saw a significant 211% increase in tax payment compared to the previous year. In employment, SK Hynix achieved the mandatory employment rate target for people with disabilities last year in terms of employing vulnerable groups. Dividends also increased by 17%. SK Hynix expects the economic indirect contribution performance to continue expanding this year as the semiconductor market trends upward.

Business social performance overall declined due to negative costs of 944.8 billion KRW in the environmental sector. This is due to the nature of the manufacturing industry, which uses large amounts of water and electricity and emits greenhouse gases during semiconductor product production. SK Hynix plans to accelerate the development of various technologies to reduce total greenhouse gas emissions and mitigate environmental impacts.

However, in the 'social' area of business social performance, SK Hynix achieved 322.4 billion KRW, a 21% increase from the previous year, and 25.5 billion KRW in the product and service area, a 116% increase, partially offsetting the negative impact in the environmental sector. SK Hynix has strengthened support for partner companies by operating programs for technology innovation companies to increase the localization ratio of materials, parts, and equipment, as well as analysis and measurement support centers.

Social contribution social performance recorded 110.6 billion KRW, a 60% increase compared to the previous year. Last year, SK Hynix participated in the 'Thanks Challenge' to encourage medical staff and supported smart devices necessary for home education of low-income children to build a social safety net, contributing to overcoming COVID-19.

Going forward, SK Hynix plans to focus its capabilities on implementing the mid- to long-term social value creation plan 'SV 2030.' To this end, the company has set key goals such as achieving carbon neutrality, revitalizing the semiconductor ecosystem, building a social safety net, and establishing a corporate culture based on diversity and inclusion.

In particular, SK Hynix, the first in the memory semiconductor industry to join 'RE100,' will accelerate improvements in environmental areas such as minimizing greenhouse gas emissions, reducing waste, and expanding water resource recycling. It plans to continue efforts to expand eco-friendly technologies, including replacing existing storage devices like HDDs with low-power SSDs.

Kim Yoon-wook, Vice President of SK Hynix (Head of Sustainability Management), said, "As we have announced social value performance for three consecutive years, we have enhanced the objectivity and reliability of measurement," adding, "We will strengthen ESG management going forward while expanding the scale of social value creation and seek ways to contribute to humanity and society."