SK Group is accelerating efforts to restructure its business portfolios to tide over the current crisis the conglomerate is experiencing due to poor performances of major subsidiaries, such as oil refining and telecom units.
The business group held the 2014 CEO Seminar at the SK Academy in Yongin, Gyeonggi-do, from Oct. 28-29, to discuss ways of overcoming the crisis and securing sustainable growth.
Among some 30 group CEOs and other executives on hand at the two-day seminar were SK SUPEX Committee Chairman Kim Chang-geun, SK Innovation Vice Chairman Koo Ja-young who concurrently heads the Global Growth Committee, Chairman Kim Jae-yeol of the Shared Growth Committee, Chairman Lim Hyung-gyu of the ICT Committee, and SKC Vice Chairman Park Jang-suk.
“This seminar is designed to explore the group’s future and corporate values,” said SK SUPEX Chairman Kim. We’ve also discussed ways to promote CEOs’ awareness toward the group’s shared growth and social contribution activities such as the creative economy and social enterprises and enhance the execution of such related project.”
An SK Group official said the participants shared the view that the group is in a position not just to post poor performances, but also to fail to create corporate value due to a long-standing management vacuum, caused by the absence of SK Group Chairman Chey Tai-won. And they concurred on the need for taking the strongest measures to restructure business portfolios through strategic innovation.
Despite concern in some circles, SK Group Chairman Chey acquired SK Hynix, a semiconductor unit. Now SK Hynix has emerged a driving force, chalking up more than 1 trillion won in quarterly operating profit. On the other hand, SK Innovation, the group’s flagship company, is suffering difficulties due to an economic slowdown.
The participants of the event shared the view that the existing management strategies do not work, so the group cannot stick to the existing approach, said a group official, adding that this is the strongest-worded message since 2002 when the group issued the Jeju Declaration calling for business divisions suffering from losses to be left to market forces.
SK Group plans to adopt innovative countermeasures to cope with the crisis, such as massive M&As, organizational integration & abolition, and disposals.
SK SUPEX’s chairman said having a competitive edge is essential to survival. He also called for innovative restructuring in a fierce and cool-headed manner to become a world-class company.
The group decided to inaugurate the Creative Economy Innovation Corp on Oct. 10 to explore and implement group-wide ways of exploring the creative economy.
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