Choi Tae-won Reappointed as SK CEO at General Meeting... Seeking Breakthroughs in Battery and Energy Sectors

Appointment of Directors and Audit Committee Members Approved
National Pension Service Does Not Oppose Chairman Choi's Appointment
Shareholders Voice Dissatisfaction with Stock Price and Management
"All Investments Since COVID-19 Have Failed... Trust at Rock Bottom"

Choi Tae-won, Chairman of SK, was reappointed as SK's CEO following the shareholders' meeting on the 26th. At a time when the battery and energy markets are sluggish and global uncertainties are increasing, Chairman Choi plans to continue responsible management by finding breakthroughs in each major business.

The SK shareholders' meeting held on the morning of the 26th at the SK Building in Jongno-gu, Seoul. Photo by Shim Seong-ah

At the SK shareholders' meeting held on the morning of the 26th at the SK Building in Jongno-gu, Seoul, the agenda items including the appointment of Chairman Choi and Kang Dong-su, head of SK PM Division, as inside directors, and Lee Kwan-young, a researcher at the Korea Advanced Institute of Science and Technology, as an outside director, were all approved. With this, Chairman Choi has served as CEO for 11 years since the launch of the integrated holding company in August 2015. His term is three years.

SK Corporation is the holding company of SK Group, controlling major affiliates such as SK Innovation E&S, SK Square, SK Hynix, SK Telecom, and SK Biopharm. The 'Trinity governance structure' established by SK Group connects 'member companies' that conduct independent management centered on the board of directors, the group's highest consultative body 'SUPEX Council,' and the investment-specialized holding company 'SK Corporation.'

In his New Year's address this year, Chairman Choi emphasized strengthening management fundamentals through rapid operational improvement (OI), so attention is focused on whether there will be adjustments to SK's major affiliates' shareholdings and investment portfolio after his reappointment. Chairman Choi has reorganized the business structure to strengthen the group's future growth engines through a 'selection and concentration' strategy. In particular, he has focused on optimizing the group's financial structure by making large-scale investments centered on core business sectors such as batteries, semiconductors, and energy, while boldly divesting non-core assets.

This trend is likely to continue. There are expectations that additional investments and structural reorganizations may be made to enhance the competitiveness of battery and eco-friendly energy businesses, including SK On.

On the other hand, some affiliates and assets with low growth potential or that do not align with the group's core strategy may become additional divestment targets. Chairman Choi has quickly responded to market changes by adjusting business portfolios such as SK E&S and SKC over the past few years, and with this reappointment, there is speculation that he will take more active steps.

President Jang Yong-ho of SK. Photo by SK

Meanwhile, the National Pension Service, which held a 7.45% stake in SK as of last month, had opposed Chairman Choi's appointment as an inside director in 2016, 2019, and 2022, but did not express any particular opinion at this shareholders' meeting.

However, some shareholders attending the meeting voiced dissatisfaction with the stock price and management. SK's stock price, which was as high as 271,500 KRW in 2022, has fallen to around 189,000 KRW. One shareholder questioned, "They say portfolio management was done well, but do they know the stock price is at its lowest point now?" Another shareholder said, "Considering SK's domestic and international status, having a market capitalization in the 10 trillion KRW range is embarrassing," adding, "No matter how much the company talks about performance, it is meaningless to shareholders if it is not reflected in the stock price." They continued, "As a listed company, the price-to-book ratio (PBR) should be maintained above 1. Please announce a new plan with concrete measures to enhance shareholder value."

A shareholder who said they have held SK shares for a long time criticized, "I believe all the investments SK made after COVID-19 have failed," and added, "They have not kept promises regarding share buybacks or price-to-book ratio (PBR), and with the management remaining the same, SK's trust has hit rock bottom."

In response, SK CEO Jang Yong-ho said, "We consider the issues pointed out today as major management tasks," and added, "We will continue asset rebalancing this year, and executives will work together to enhance the value of subsidiaries."