SK SUPEX Committee Chairman Kim Chang-keun presided over a New Year’s gathering of 500 SK group subsidiary CEOs, executives and high-ranking officials at the Walker Hill Hotel in Gwangjang-dong, Seoul on Jan. 2.
“Let’s secure a competitive edge to survive an extreme environment by devoting ourselves to changing fundamentals of each business and game rules in an innovative way,” Chairman Kim said at the event. “This year is likely to see business environment uncertainties go deeper and greater, coupled with the unprecedented management woes, caused by the prolonged absence of SK Group Chairman Chey Tae-won.”
In reality, SK SUPEX Committee Chairman Kim diagnosed sagging and worsening management performances the group posted during last year. The group’s energy and chemical units, accounting for more than half of its total sales, are scrambling to come up with strategies to survive in a rapidly changing business environment, amidst the so-called shale oil revolution and plunging crude oil prices.
Kim predicted that external and internal business environment uncertainties would be exacerbated this year. The volatile factors include rising risks of emerging economies, slow growth of the Chinese economy, deflation or long-standing recession of the European economy, and a prolonged downturn in crude oil prices.
In particular, Chairman Kim warned that the management vacancy, caused by absence of SK Group Chairman Chey, has heightened a crisis. “Another crisis is feared to befall on us as the management vacancy – caused by the prolonged absence of Group Chairman Chey, who had maintained close ties with major company CEOs and foreign heads of state – have delayed exploration of future growth engines,” he said.
In order to tide over such a crisis, Kim said, SK Group will have to devote itself to creating corporate values through innovation in accordance with the group’s 2015 management tenet — “Overcoming a Crisis through Separate or Together 3.0.”
He called for the group to secure a competitive edge to survive an extreme environment by devoting themselves to changing fundamentals and game rules in an innovative way.
Chairman Kim urged group executives and staff members to be committed to “SUPEX Spirit,” based on the SK Management System (SKMS). Each corporate member’s nurturing premier capacity in Korea and abroad is a prerequisite for SK Group to rise to a world-class company, he said.
Kim also stressed the implementation of social contribution activities in a creative way. Shared growth with state, society, and stakeholders is no longer a choice, but is compulsory, and SK Group will have to establish itself as a group who grows together with state and society in an innovative and creative manner like social enterprises and Creative Economy Innovation Centers.
“SK has made strides over some 60 years amidst crises, and even though we had a track record of successful experiences and methods to overcome crises, we should not be complacent in tiding over the current crisis,” he said. Chairman Kim made a point that past success could stand in the way of future success.
“If Innovative efforts are made to break the conventional thinking mold,” he said. “We’ll tide over torrid waves and end up in converting a crisis into an opportunity.”
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