SK Accelerates 'Board Management'... 30 Outside Directors Including Kim Jong-hoon Communicate with World's Largest BlackRock

Seminar on the 16th... Enhancing Expertise and Strengthening Governance Transparency
SK "Discussing ESG Sustainable Investment Strategies from Investor Perspective"

Kim Jong-hoon, Chairman of SK Innovation (center), speaking at a seminar with BlackRock, the world's largest asset management company, on the 16th. (Photo by SK)

[Asia Economy Reporter Moon Chae-seok] SK is accelerating its "board management." Thirty outside directors from major affiliates are communicating with prominent institutional investors such as BlackRock, the world's largest asset management firm, to explore ESG (Environmental, Social, and Governance) management strategies. BlackRock was the first ESG seminar institution SK approached.

According to SK on the 17th, 30 outside directors from 12 group affiliates, including Yeom Jae-ho, Chairman of the Board of SK Inc., Kim Jong-hoon, Chairman of SK Innovation, and Kim Yong-hak, Chairman of SK Telecom, held a two-hour online seminar the previous afternoon with Won Shin-bo, Head of BlackRock Asia's Stewardship Investment Team. The seminar was arranged with the support of SK's in-house university, Sunny (mySUNI), to engage with BlackRock, a leader in ESG management.

The participants candidly discussed ▲how investment institutions view companies' ESG efforts ▲the roles and responsibilities of outside directors in pursuing ESG ▲and how companies should pursue ESG within Korea's geopolitical context. In particular, SK's outside directors exchanged views on investors' objective evaluations of ESG management, including governance innovation initiatives undertaken by group affiliates, as well as future plans to upgrade ESG management.

Head Won stated regarding SK's ESG-driven management, "The pursuit of social value, which Chairman Chey Tae-won has emphasized for a long time, aligns with ESG and is positively evaluated by the market. If SK's board manages the 'G' (Governance) risks, which investors value as much as 'E' (Environment) and 'S' (Social), well and builds trust with the market, SK can become a beneficiary of the major investment flows centered on ESG."

SK is focusing on strengthening board-centered management beyond global standards as part of its "Governance Story," emphasizing enhancing board capabilities and roles and expanding communication with investors. Chairman Chey has also stressed, "The core of the Governance Story is to prove governance transparency to the market and lead to long-term trust." Last year, Chairman Chey and outside directors from 13 affiliates held three workshops to discuss governance innovation measures, demonstrating company-wide commitment to executing the Governance Story.

The outside directors confirmed at the seminar that global investment trends are shifting toward ESG and sustainable sectors and agreed that SK must meet global standards to achieve a "big rip" (significant success). Some outside directors suggested interpreting the "S" in ESG not as "Social" but as "Stakeholder," expanding the management scope from the "relevant society" to the "world."

The reason outside directors selected BlackRock as the first seminar partner with external investors is that BlackRock leads global ESG initiatives. Founded in 1988 by CEO Larry Fink, BlackRock manages assets worth $10 trillion (approximately 1,200 trillion KRW) and has driven ESG management through its annual CEO investment letters to investors.

Currently, each SK board operates as an independent highest decision-making body, involved in CEO candidate nomination, evaluation, and compensation, while setting mid- to long-term growth strategies referencing external perspectives. The boards exercise decision-making authority based on independence and expertise, and it is not uncommon for board decisions to differ from the intentions of inside directors, indicating that board-centered management is well established. An SK official said, "Strengthening the board's role is key to governance transparency," adding, "We will create opportunities to communicate and empathize with various stakeholders to enhance the board's expertise."

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