Jang Dong-hyun "Repurchased Over 1% of Market Cap in Treasury Shares Annually for 4 Years"... Strengthening Shareholder Returns

SK Inc. to Hold '31st Regular General Meeting of Shareholders' on 29th
"Dividend of Over 30% of Operating Dividend Income"
CEO and Executives to Present Business Plan Directly

Jang Dong-hyun, Vice Chairman and CEO of SK Inc. (Photo by SK)

[Asia Economy Reporter Moon Chaeseok] "This year, we will reorganize our asset portfolio and investment strategy, strengthen investment expertise, and advance our management system including shareholder returns."

Jang Donghyun, Vice Chairman and CEO of SK Inc., announced that over the next four years, he will implement a strong shareholder return management policy, including purchasing more than 1% of the market capitalization in treasury shares annually.

On the 29th, at the '31st Annual General Meeting of Shareholders' held at the Suprex Hall on the 3rd floor of the SK Seorin Building in Jongno-gu, Seoul, Vice Chairman Jang emphasized "shareholder returns and shareholder communication." Along with CEO Jang, executives in charge of finance and investment took the stage to provide shareholders with detailed explanations of business performance and growth strategies. An online live broadcast was provided for shareholders who found it difficult to attend the meeting in person.

Vice Chairman Jang stated, "This year, we will reorganize our asset portfolio and investment strategy, strengthen investment expertise, and advance our management system including shareholder returns. Despite the rough market environment, we will leap forward as a true frontier by achieving differentiated results through active profit realization and asset efficiency."

SK Inc. emphasized that it will strengthen its shareholder return policy to enhance shareholder value. CFO Lee Seonghyung said, "In addition to the existing policy of paying more than 30% of recurring dividend income, we will purchase treasury shares worth more than 1% of the market capitalization annually until 2025, using profits generated from investment portfolios such as IPOs." He added, "The cancellation of treasury shares will also be considered as an option for shareholder returns."

Investment executives explained the performance and strategies by business sector. Kim Yangtaek, Head of the Advanced Materials Investment Center, said, "We have been making proactive investments in semiconductor materials, battery materials, and electric vehicle supply chain (SCM) areas. This year, we will focus on securing growth momentum and achieving visible results in next-generation battery materials business through the completion of the anode commercial facility of Group 14 joint venture (JV) and the establishment of a single-crystal cathode material joint venture with Beijing Espring."

Lee Donghun, Head of the Bio Investment Center, explained, "Last year, the consolidated sales of SK Pharmteco, the integrated CMO (Contract Manufacturing Organization) corporation for active pharmaceutical ingredients, grew about 19% year-on-year. We succeeded in expanding our business into the rapidly growing cell and gene therapy CMO sector through the acquisition of France’s Eposketch and investment in the US CBM." He added, "This year, in the CMO sector, we aim to achieve stable growth in the existing synthetic active pharmaceutical ingredient business and early value growth in the cell and gene therapy business. In the pharmaceutical sector, we will enter the high-growth bio new drug field to nurture the 'second SK Biopharm.'"

Kim Muhwan, Head of the Green Investment Center, said, "Under the banner of 'decarbonization,' we have secured base investments and commercialization foundations for promising overseas assets focusing on four core areas: alternative energy, sustainable food, environmental technology, and carbon dioxide treatment. This year, based on these assets, we will accelerate domestic and Asian regional businesses while continuously securing a global core business foundation."

At the general meeting, four agenda items?approval of financial statements, election of directors, appointment of audit committee members, and approval of director remuneration limits?were all passed as originally proposed. SK Group Chairman Choi Tae-won was reappointed as an inside director, and former Korea University President and board chairman Yeom Jaeho and former Hana Financial Group Vice Chairman Kim Byungho were reappointed as outside directors.

SK Inc. stated that it is leading "shareholder-friendly management" by being the first large conglomerate holding company to hold dispersed shareholder meetings, implement electronic voting, and announce a corporate governance charter. In December last year, it formalized its commitment to strengthen communication with shareholders and stakeholders through a full revision of the governance charter. Based on this, SK has been included in the Dow Jones Sustainability Index (DJSI) for 10 consecutive years and received an AA rating in the Morgan Stanley Capital International (MSCI) ESG (Environmental, Social, and Governance) evaluation.

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