"Sudden Death" Shouted Choi Tae-won... Will Choi Chang-won Take Over as Supex Chairman?

SK Group Year-End Regular Personnel Changes on the 7th
Vice Chairmen Likely to Resign Together
Vice Chairman Choi Chang-won as 'Group No. 2'

Choi Tae-won, Chairman of SK Group (63), who warned about the dangers of "sudden death" (sudden demise), plans to carry out a large-scale replacement of the group's top executives. He drew public attention by mentioning sudden death when he replaced the top management of the group back in 2016. Recently, Chairman Choi is reported to have conveyed his intention for a generational shift to the vice chairmen.

A scenario is emerging where Choi Chang-won (59), Vice Chairman of SK Discovery and Chairman Choi's cousin, will become the group's second-in-command. However, since Vice Chairman Choi has declined, there is speculation that Choi Jae-won, the senior vice chairman and Chairman Choi’s younger brother, may officially begin to take on the role of second-in-command.

SK Group is preparing for its year-end regular personnel reshuffle scheduled for the 7th. The group has designated the so-called "BBC (Bio, Battery, Semiconductor)" as its future business portfolio and has been making large-scale investments annually since the acquisition of SK Hynix. However, due to the global complex crisis, management uncertainties are expected to increase next year. Moreover, core businesses are experiencing poor performance. The group has expressed its intention to revitalize the atmosphere through a generational change.

It is interpreted that Chairman Choi’s recent request for resignation from Chairman Cho Dae-sik of SK SUPEX Council (63), Vice Chairman Jang Dong-hyun (60), Vice Chairman Kim Jun of SK Innovation (62), and Vice Chairman Park Jung-ho of SK Hynix (60) is part of this context.

These executives have led the group for seven years. When Chairman Choi first mentioned the term "sudden death" during the major management reshuffle in 2016, they were appointed as heads of major affiliates. At that time, the focus was on confidence and enthusiasm for new businesses. After acquiring Hynix, the group began generating large-scale profits, boosting confidence.

Vice Chairmen Jang Dong-hyun and Park Jung-ho are credited with playing significant roles in the acquisition of Hynix, which led them to their current positions. These vice chairmen, who contributed to elevating the group to the second-largest conglomerate in Korea, are reportedly deciding to retire for the sake of their juniors.

On the other hand, the 2023 "sudden death" can be interpreted as a signal that it is time to reorganize the businesses developed so far and redraw the future, rather than focusing on new businesses or new investments. Meanwhile, if the four vice chairmen step down, Vice Chairman Yoo Jung-joon (61), who was appointed last year as Head of External Cooperation in the Americas, and Vice Chairman Seo Jin-woo (62), responsible for China, are also likely to resign together.

[Image source=Yonhap News]

The gap caused by the simultaneous retirement of the vice chairmen in their 60s will be filled by those in their 50s. In particular, it is reported that Vice Chairman Choi Chang-won of SK Discovery will succeed Chairman Cho Dae-sik of the SK SUPEX Council. However, since he has reportedly expressed his intention to decline, his appointment remains uncertain.

Vice Chairman Choi Chang-won is the third son of the late Choi Jong-gun, the founder of SK, and the cousin of Chairman Choi Tae-won. The eldest, Vice Chairman Choi Si-won, and Choi Chang-won have effectively split SK Networks and SK Discovery respectively and managed them independently. The SK Group’s unique management style of "separately yet together" originated here.

Since Vice Chairman Choi Chang-won has built an independent management system, if he takes on the position of Chairman of the SUPEX Council, the group’s system is expected to shift from the "brotherly management" of Chairman Choi Tae-won and Vice Chairman Choi Jae-won to a "cousin management" system.

Additionally, it is said that SK Hynix will be led solely by Co-CEO Kwak No-jung (58), SK Innovation by Park Sang-gyu (59), current President of SK Enmove, and SK Corporation by Jang Yong-ho (59), President of SK Siltron.

Many expect that the role of Senior Vice Chairman Choi Jae-won (60), who has been leading SK On’s battery business, will grow after this personnel reshuffle. Chairman Choi Tae-won and Vice Chairman Choi Jae-won have shown a unique brotherly affection since the SK incident in the past. Vice Chairman Choi personally took the initiative to support his brother, who was undergoing investigations and detention, by finding suitable personnel externally and creating an external activities team, believing the company’s support for the chairman was insufficient at the time.

At the CEO seminar held last month in Paris, France, Chairman Choi mentioned "sudden death" again after seven years, stating that "if we do not change quickly and decisively in response to rapid internal and external environmental changes, we cannot survive." He also said, "A CEO should not only focus on the company they lead but also be able to propose solution packages that leverage the strengths of the group."

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