SK Accelerates Governance Innovation by Strengthening Board Expertise

Managing Outside Director Candidates from Next Year
Introducing Directors Summit and More

Yeom Jae-ho, Chairman of the Board of Directors of SK Inc. (far right), is discussing the role of the board of directors with outside directors of SK affiliates at the 'SK Directors Summit 2022' held at the Grand Walkerhill Hotel on the 31st of last month.

[Asia Economy Reporter Oh Hyung-gil] SK has strengthened its system to enhance the management expertise of its board of directors.

On the 13th, SK Group announced that it will implement measures such as forming a pool of outside director candidates, introducing a board work support portal system, and regularizing the Directors Summit to strengthen the professionalism and capabilities of its board of directors.

SK Group plans to form a pool of outside director candidates reflecting diversity in age and gender, as well as expertise in finance, global affairs, and ESG (environment, social, and governance), and from next year, affiliated companies will be supported to appoint outside directors by referring to the candidate list.

With the introduction of the outside director candidate pool system, it is explained that it will be possible to secure excellent outside director candidates who can make swift and rational decisions in a rapidly changing management environment and utilize them timely and appropriately.

In addition, a portal system has been developed to provide management information so that outside directors can accurately assess board agenda items.

The system posts the progress leading up to the agenda items submitted to the board, various meeting materials, and management information, allowing board members to easily search for them. SK Group plans to pilot the system in the boards of SK Inc. and SKC starting next year, then expand the system to other affiliates.

The Directors Summit is a forum where outside directors gather to study domestic and international industry trends related to core businesses and global corporate board operation models, and discuss the role of the board.

At the Directors Summit held on the 31st of last month at the Grand Walkerhill Hotel in Seoul, 54 outside directors from 15 affiliates attended to understand domestic and international industry trends such as the electric vehicle battery industry and artificial intelligence, and discuss global corporate board operation methods. SK Group plans to hold the Directors Summit regularly and expand the participants in the future.

An SK official said, "The board of directors is not only a body that monitors and checks corporate management but also a partner that raises corporate value together. We will build substance and structure so that the board can fulfill its proper role."