SK, Quantum Jump in Semiconductors, Batteries, and Bio Since Chey Tae-won's Appointment

Choi Tae-won's 23rd Anniversary as CEO... 3.8x Revenue, 7x Asset Growth
Energy & ICT to Semiconductors, Bio & Battery
Emphasizing 'Social Value' Management Philosophy Before ESG Rise
October CEO Seminar to Discuss Post-COVID Strategies

[Asia Economy Reporter Hwang Yoon-joo] SK Group is preparing for a quantum jump centered on new growth engines such as semiconductors, batteries, and bio. The rise in SK Group's status is largely attributed to the leadership and insight of Chairman Chey Tae-won of SK Group.

SK Group quietly marked the 23rd anniversary of Chairman Chey's appointment on the 1st without holding a ceremony. It is known that he is currently focusing on post-COVID management plans ahead of the group's CEO seminar next month.

Ahead of this year's CEO seminar, Chairman Chey's management moves are being discussed. Chairman Chey became the head of the group at the age of 37 when the founder of Seonkyung Group (now SK Group), former Chairman Chey Jong-hyun, passed away in 1998. He had to lead the group in a challenging environment amid the foreign exchange crisis at the time of his inauguration. He once recalled, "When I took office, the foreign exchange crisis hit, and the management situation was difficult. I thought we had to survive."

Despite facing a crisis of resigning from the group’s board due to a management dispute with the Sovereign Fund starting in 2003, he successfully defended his management rights in 2005 with the support of major shareholders and foreign investors. After strengthening the group's fundamentals for ten years, Chairman Chey once again drew attention in the business world with major mergers and acquisitions (M&A), which are the core of SK Group's growth strategy, and the management philosophy of 'social value.'

The biggest change since Chairman Chey's inauguration has been SK Group's business portfolio. Before his appointment, SK Group grew to the 5th largest in the business world, centered on energy and telecommunications. The group expanded its scope by acquiring semiconductor businesses one after another, including SK Hynix in 2012, SK Materials in 2016, SK Siltron in 2017, and Intel’s NAND business in 2020.

When the entire group’s executives opposed the acquisition of SK Hynix, Chairman Chey famously persuaded them by saying, "Financially, the acquisition is disadvantageous, but a CEO must look further ahead than the practitioners," and "Korean companies must secure a second-tier position in semiconductors so that Samsung can maintain its top-tier status in the semiconductor market and Korean semiconductors can dominate the global market."

The eco-friendly energy business strategy centered on batteries is also gaining attention as it aligns with the automotive industry's shift to electric and hydrogen vehicles. SK Innovation, which was primarily focused on refining, has aggressively invested in the battery business and is showing the fastest growth among global battery companies. Amid the US-China conflict, the value chains of the semiconductor and battery industries have emerged as important security businesses, highlighting the foresight that looks to the future.

In particular, the bio business started by the late Chairman Chey Jong-hyun is flourishing thanks to Chairman Chey’s commitment to nurturing it. Considering that new drug development takes at least 10 years, it is an area where business continuity is impossible without the management’s will. Chairman Chey continued to nurture and invest in the bio business even during management crises. SK Biopharm achieved significant results, including developing the first new drug in Korea to receive FDA approval in the United States. After COVID-19, vaccine production and therapeutic development have become important national agendas, making SK a group that operates all core industries: semiconductors, batteries, and bio.

In March this year, Chairman Chey became the first head of a large business group to be appointed as chairman of the Korea Chamber of Commerce and Industry. This is because the business community agrees that he is the right person, having consistently emphasized the need to pursue both economic profit and social value through his 2014 book, "New Exploration, Social Enterprise."

Chairman Chey plans to devote himself to fostering new businesses such as aviation and space, future mobility, and eco-friendly energy, building on the 40 years of progress made by Chairman Kim Seung-yeon.

Meanwhile, since Chairman Chey’s appointment, SK Group’s sales have grown 3.8 times from 37 trillion won to 139 trillion won, and assets have increased sevenfold from 34 trillion won to 239 trillion won. Its business ranking also jumped from 5th to 3rd.

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