This Year's Keywords Are AI and Governance... SKT's Park Jung-ho "We Will Maximize Shareholder Value"

SK Telecom Holds 37th Annual General Meeting of Shareholders
CEO Park Jung-ho Emphasizes "AI-Centered Company Transformation and Establishment of Global-Level Governance"
Organic Connection of ICT Family Products
Expansion and Reorganization of Four Committees Under the Board of Directors

On the morning of the 25th, SK Telecom held the 37th Annual General Meeting of Shareholders at the T Tower in Euljiro, Seoul, and approved the agenda. The photo shows Chairman and CEO Park Jung-ho explaining the 2021 business strategy. Photo by Park Jung-ho

[Asia Economy Reporter Minyoung Cha] SK Telecom has introduced AI-based new information and communication technology (ICT) portfolios and governance establishment aligned with global standards as this year’s key themes. This reflects CEO Park Jung-ho’s strong determination to break out of the undervaluation phase and definitely increase shareholder value this year.

Annual General Meeting Held... Agenda Approved

On the morning of the 25th, SK Telecom held its 37th Annual General Meeting of Shareholders at the T Tower in Euljiro, Seoul, approving agendas including the finalization of the 2020 consolidated financial statements, reappointment of inside directors and audit committee members, and partial amendments to the articles of incorporation.

At this general meeting, SK Telecom CEO Park Jung-ho explained the achievements and management vision of the 5th generation (5G) and new ICT businesses. The business unit presentations were directly conducted by Yoo Sang-young, Head of MNO Business, Choi Jin-hwan, Head of Media Business, Park Jin-hyo, Head of S&C Business, Lee Sang-ho, Head of Commerce Business, and Lee Jong-ho, CEO of T map Mobility.

Chairing the meeting, CEO Park, with shareholders’ consent, passed a resolution to reappoint Yoo Sang-young, Head of MNO Business, as an inside director, and Professor Yoon Young-min of Korea University as an outside director and audit committee member. The board of directors consists of eight members: two inside directors, one other non-executive director, and five outside directors. The outside directors are Kim Yong-hak, Kim Seok-dong, Ahn Jung-ho, Yoon Young-min, and Kim Jun-mo.

The 2020 consolidated financial statements were also approved. SK Telecom achieved a record-high revenue of KRW 18.6247 trillion through improvements across all business sectors, including the mobile network operator (MNO) division, and operating profit grew by 22% compared to the previous year. The new ICT business recorded a profit of KRW 320 billion in 2020 following its first profitable year in 2019. The operating profit ratio stands at around 24%.

The cash dividend was finalized at KRW 10,000 per share, including the interim dividend of KRW 1,000 paid in August last year. SK Telecom plans to reflect the basis for quarterly dividends in its articles of incorporation and pursue the sequential initial public offerings (IPOs) of its subsidiaries.

Direction of Change in 2021: 'AI Company'

On the morning of the 25th, SK Telecom held the 37th Annual General Meeting of Shareholders at the T Tower in Euljiro, Seoul, and resolved the agenda. Photo by Yoo Sang-young, Head of MNO Business, presenting the MNO business plan.

Following last year, SK Telecom disclosed its business direction again at this year’s general meeting. The key themes for this year are ‘Transformation into an AI Company’ and ‘Establishment of Governance at a Global Level.’ CEO Park added, “We will maximize shareholder value by growing the new ICT portfolio based on the five major business divisions.”

Regarding the company’s core direction of change in 2021, CEO Park Jung-ho stated, “This year marks a turning point for a major directional shift,” and “SK Telecom will transform into a genuine artificial intelligence (AI) company.”

To this end, SK Telecom will organically connect all ICT family products and services, including its core businesses?MNO, media, security, and commerce?centered on AI. It also plans to collaborate with external partners to provide innovative customer experiences.

The core MNO business division aims to accelerate growth in the 5G-based mobile business, transform into an AI-based subscription marketing company, and grow the enterprise business based on 5G and cloud. In particular, it will attempt to diversify revenue streams by discovering new business models in the subscription and enterprise sectors.

Establishing World-Class Governance

The second goal is to build advanced governance that meets global standards. CEO Park explained, “Our company has already established and operates a management system centered on an independent board of directors with expertise and diversity,” and “to gain more recognition and support from stakeholders, we will evolve to a global-level governance.”

Since 2012, SK Telecom has separated the roles of CEO and chairman of the board to strengthen the board’s independence. In 2018, it appointed a female outside director, and even before the 2012 amendment to the Commercial Act requiring a majority of outside directors, SK Telecom has maintained more than 50% outside directors since 2009.

First, the company will newly establish a Corporate Governance Charter in its articles of incorporation. This is an action reflecting its commitment to transparent and sound governance. The board committees will be reorganized into four, expanding their roles and authority. The four committees are the Future Strategy Committee (mid- to long-term direction), the Personnel and Compensation Committee (future management development), the Audit Committee (fair and transparent corporate operation), and the ESG Committee (enhancement of ESG management activities), supporting board-centered management.

Meanwhile, following last year’s pioneering online live broadcast of the general meeting?the first among large corporations?SK Telecom conducted both on-site proceedings and real-time broadcasting this year as well. Since 2018, it has led shareholder-friendly management by proactively introducing electronic voting. This year, the management answered questions submitted in advance until the day before the meeting directly at the general meeting, and these were broadcast online.

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