SK 2024 Management Strategy Meeting Held
Securing 80 Trillion KRW by 2026
Future Investments in AI and Semiconductors
New Semiconductor Committee Established under Supex
Choi Tae-won, Chairman of SK Group, emphasized the need to strengthen 'AI value chain leadership' from AI (artificial intelligence) services to infrastructure. He called for proactive and fundamental changes to prepare for the future in this new era of transformation.
Chairman Chey Tae-won of SK Group (via video conference) is delivering the opening speech at the management strategy meeting held on the 28th-29th at the SKMS Research Institute in Icheon, Gyeonggi Province. (Provided by SK Group)
On the 30th, SK Group announced that Chairman Choi said at the management strategy meeting held on the 28th and 29th at the SKMS Research Institute in Icheon, Gyeonggi Province, "In the United States right now, the wind of change related to AI is so strong that there is nothing else to talk about except 'AI'."
Chairman Choi also forecasted that SK’s stronghold in the 'energy solutions' sector could secure growth opportunities in the global market comparable to AI. He added, "The green, chemical, and bio business sectors should pursue 'qualitative growth' through selection and concentration and sound management by carefully examining market changes and technological competitiveness."
The management strategy meeting was attended by Chairman Choi and Senior Vice Chairman Choi Jae-won via video conference, as well as Choi Chang-won, Chairman of the SUPEX Council, and about 20 CEOs of major affiliates. At the meeting, SK’s top executives shared the results of various task force activities conducted to reorganize the value chain and held follow-up discussions. Each company plans to promote specific execution plans at their respective boards of directors starting in the second half of this year in line with the agreed direction.
First, SK will proactively prepare for the upcoming big wave in the market and secure future growth opportunities by fundamentally transforming its structure, including value chain reorganization. Based on the SKMS (SK Management System) spirit, which is the foundation of SK management, they decided to strengthen the fundamentals of management such as 'operational improvement.'
Chairman Choi Chang-won said, "We have clear goals such as 'qualitative growth,' and if we continue to work steadily, there is nothing we cannot achieve," adding, "We must accelerate ongoing 'operational improvements' at each company to repay the market with expectations and trust." In particular, Chairman Choi emphasized that during the business restructuring process, ▲ strict compliance with basics and principles such as compliance ▲ active and sincere communication with stakeholders are important.
Chairman Chey Tae-won of SK Group (via video conference) is delivering the opening speech at the management strategy meeting held on the 28th-29th at the SKMS Research Institute in Icheon, Gyeonggi Province. (Provided by SK Group)
At this meeting, SK management agreed to secure 80 trillion won by 2026 through profitability improvement, business structure optimization, and synergy enhancement, to be used for investments in future growth sectors such as AI and semiconductors and for shareholder returns. They also set a goal to generate 30 trillion won in free cash flow (FCF) within three years through operational improvements and manage the debt ratio below 100%.
They expect that the pre-tax loss of 10 trillion won recorded last year will turn into a profit this year, reaching around 22 trillion won, and set the pre-tax profit target for 2026 at the 40 trillion won level.
SK Group plans to further refine the AI value chain and secure global-level competitiveness through investments in AI and semiconductors, including AI semiconductors led by high-bandwidth memory (HBM), AI data centers, and AI services such as personal AI assistants (PAA).
Accordingly, SK Hynix will invest a total of 103 trillion won over the next five years until 2028 to strengthen competitiveness in the semiconductor business. About 82 trillion won (80%) will be invested in AI-related business areas such as HBM. SK Telecom and SK Broadband will invest 3.4 trillion won over five years in the AI data center business.
Additionally, the CEOs decided to establish a 'Semiconductor Committee' under the SUPEX Council as of July 1 to strengthen synergy among affiliates related to the AI and semiconductor value chains, appointing Kwak No-jung, President of SK Hynix, as chairman.
Furthermore, the CEOs agreed on the need to adjust the total number of affiliates to a 'manageable range' during the process of eliminating overlapping investments and will proceed step-by-step through internal procedures at each company. The plan is to internalize high-quality assets and maximize synergy among future growth businesses to achieve a twofold effect.
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