Emphasizing the Role of the Board at the SK Directors Summit
"Executives Make Decisions, the Board Sets Direction"
SK Group is introducing 'Board 2.0' to strengthen the role of the board of directors for swift business opportunity identification and response. The core idea is to expand the board's function from merely making decisions on agenda items to setting strategic directions in advance and evaluating performance afterward.
On the 7th, SK Group announced on the 11th that it held the 'SK Directors Summit 2024' under the theme of 'Board 2.0' at the Walkerhill Hotel in Gwangjin-gu, Seoul, where this decision was made. The summit was attended by key executives including SK Group Chairman Chey Tae-won, SK Supex Council Chairman Chey Chang-won, and about 50 outside directors from 13 SK Group affiliates. Launched in 2022, the 'Summit' is now in its third year and is one of SK Group's major strategic meetings alongside management strategy meetings, the Icheon Forum, and CEO seminars.
Choi Tae-won, Chairman of SK Group, is delivering the opening speech at the 'SK Directors Summit 2024' held on the 7th at Walkerhill Hotel in Gwangjin-gu, Seoul. (Photo by SK Supex Council)
At this summit, SK Group's key executives and outside directors discussed 'Board 2.0' as the main topic to advance the governance system. Board 2.0 refers to the evolution and development direction of the board of directors for efficient response amid increased uncertainty in the management environment. The management will focus more on decision-making, while the board will redefine its role centered on 'business oversight,' including setting strategic directions in advance and post-performance supervision.
Specifically, outside directors agreed that the board should strengthen its roles in ▲setting mid- to long-term strategic directions ▲cross-checking management decisions ▲post-supervision of business activities.
SK Group executives and outside directors also discussed major current issues and future strategic directions of SK Group. They reviewed key business areas such as semiconductors, AI, and energy solutions, along with major management tasks derived from the recently held CEO seminar.
Chairman Chey Tae-won, in his opening speech, introduced the AI business promotion plan and the purpose of operational improvement (O/I) to the outside directors, emphasizing, "To properly capture business opportunities when the AI market greatly expands around 2027, it is essential to strengthen fundamental competitiveness through operational improvement." He added, "For this, the board must expand its role to include setting strategic directions in advance and evaluating performance afterward." Chairman Chey Chang-won stressed, "The board should expand its role centered on business oversight to bring balance and checks on management, and ultimately move beyond Board 2.0 to Board 3.0."
Previously, in 2021, SK Group promoted board-centered management, so-called 'Board 1.0,' by having outside directors chair the boards of all listed companies under the Supex Council. At that time, not only the SK Directors Summit but also group-level meetings such as the 'New Outside Directors Workshop' to enhance understanding of SK Group for new outside directors, and the 'Outside Directors Chair Council,' a meeting body among outside directors who have served as board chairs, were regularized.
An SK official explained, "The redefinition of the board's role aligns with global trends, as leading global companies are redefining the board's role from decision-making to management and supervision, encouraging focus on mid- to long-term challenges that are difficult for management alone to handle. SK Group will further solidify its board-centered management system through initiatives like Board 2.0."
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