As Bonus Pay Complaints Pour In... Park Jung-ho of SKT Says "We Will Communicate"

[Asia Economy Reporter Seulgina Jo] Park Jung-ho, CEO of SK Telecom, recently addressed concerns about dissatisfaction with performance bonuses, stating, "We will continue to expand communication with our members."

At the 'Service Champion Awards' event held on the 4th at T Tower in Jung-gu, Seoul, Park Jung-ho CEO commented on the performance bonus controversy, saying, "The social value enhanced through ESG (Environmental, Social Responsibility, and Governance) management is not being properly reflected," and urged, "Let's work harder for the company's growth, development, and enhancement of corporate value." He added, "To increase corporate value, accelerating ESG management and expanding financial performance must happen simultaneously," promising to do his best starting with himself.

This statement is interpreted as a response to a letter sent to CEO Park by the SK Telecom labor union chairman expressing dissatisfaction and concerns about the scale of performance bonuses. Earlier, the union cited last year's SK Telecom management performance in the letter, pointing out, "We cannot help but have serious concerns about the performance bonuses expected to decrease significantly compared to last year." They also demanded, "Measures that members who have done their best under difficult conditions can understand and empathize with must be presented."

Regarding the recently introduced 'Employee Shareholder Participation Program,' CEO Park mentioned, "It is a good initiative that not only enhances employees' loyalty to the company but also drives the company's growth together." On corporate restructuring, he said, "It is under review as a measure to enhance corporate value, but nothing has been decided yet," adding, "We are sincerely seeking solutions that satisfy employees, shareholders, and the company."

Earlier, at SK Hynix, despite achieving operating profits exceeding 5 trillion won last year, employees expressed dissatisfaction when performance bonuses were set at about 20% of their annual salary. After Chairman Chey Tae-won announced plans to forgo part of his salary and the controversy continued to spread, SK Hynix agreed at the Central Labor-Management Council held that afternoon to improve the excess profit sharing (PS) system and to provide employee stock ownership to members.

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