Choi Tae-won: "The Hand Extended by the Company Must Protect Family and Society"

SK Group's 67th Anniversary Message Emphasizes Determination to Overcome Without 'Restructuring'

[Image source=Yonhap News]

[Asia Economy Reporter Park So-yeon] Chey Tae-won, chairman of SK Group, emphasized the role of companies as a social safety net through "employment stability." Despite facing an unprecedented crisis due to the prolonged COVID-19 pandemic and the plunge in international oil prices, he sent a message to overcome the crisis through proactive management plans rather than restructuring.

According to the business community on the 22nd, Chairman Chey recently promised employment stability in a message commemorating the 67th anniversary of the company's founding, stating, "The hand extended by the company must protect families and society." He added, "Usually, overcoming a crisis involves growing pains and sacrifices, but especially in times like these, we must not lose sight of each and every member," and "Perhaps now is the most urgent time for our commitment to social value and happiness creation."

SK Group is currently facing a very difficult business environment, similar to other groups. This is because key industries supporting SK Group, such as semiconductors and refining, have been directly hit by COVID-19. The semiconductor industry is facing a decline in demand caused by COVID-19 and fierce competition from China. Refinery storage tanks are also full, forcing the company to rent storage from the Korea National Oil Corporation at a cost. In the case of SK Innovation, a major affiliate, the industry even expects an operating loss exceeding 1.5 trillion won in the first quarter of this year.

SK Group plans to overcome this crisis through an emergency response system due to the prolonged COVID-19 situation rather than restructuring. It has begun preparing proactive management plans centered on core affiliates such as telecommunications, electronics, and petrochemicals. SK Telecom is preparing scenarios considering the worst-case situations regarding liquidity and profitability, while SK Energy has lowered the operating rate of its crude oil refining plants to about 85%. SK Hynix aims to improve profitability through the advancement of its main products, such as DRAM and NAND flash. An industry insider said, "The word 'happiness,' which Chairman Chey has emphasized so far, has changed from an abstract concept to a tangible and urgent reality," adding, "Members have gained a lot of strength from Chairman Chey's message and are putting more effort into overcoming the crisis through it."

This content was produced with the assistance of AI translation services.