From Textiles to Semiconductors... 73 Years of SK, Returning to the 'SKMS' Spirit

On the morning of the 8th, which marks the 73rd anniversary of the founding of SK Group, preparations for 'Memorial Day' were underway in a solemn atmosphere at Seonhyewon in Jongno-gu, Seoul, starting at 7:00 a.m. Memorial Day is a private event held on the anniversary of SK Group's founding to commemorate the late founding Chairman Chey Jong-gun and the late former Chairman Chey Jong-hyun. The event, which took place at 11:00 a.m. on the same day, was attended by SK Group Chairman Chey Tae-won, Chairman (Vice Chairman) Chey Chang-won of the SK SUPEX Council and other members of the owner family, as well as key management from major group affiliates, including SK Hynix President Kwak Nojeong.

SK Group Chairman Chey Tae-won was seen at Seonhyewon on the 8th, where an event was held to honor the late founding Chairman Chey Jong-gun and the late previous Chairman Chey Jong-hyun. Photo by Joint Press Corps

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SK Group began as Sunkyong Textile in 1953 and grew into a global company, expanding its new growth engines from energy and chemicals in the 1980s, information and communications in the 1990s, semiconductors in the 2010s, and more recently, electric vehicle batteries and the bio industry. SK achieved innovation through vertical integration, described as 'from petroleum to textiles,' and continues to write its history of innovation today. Just as the previous chairman secured new axes of growth by acquiring Sunkyong Textile, Union Oil Corporation of Korea (Yukong), and Korea Mobile Telecom, Chairman Chey Tae-won's acquisition of Hynix Semiconductor was a springboard for further progress. The launch of SK Hynix is often referred to as 'SK's fourth foundation,' as it not only broadened the group's business portfolio into semiconductors but also laid the groundwork for proactively responding to the era of artificial intelligence (AI). In 2011, during the creditor management period, when SK Hynix's survival was uncertain, Chairman Chey made swift and bold investments, quickly turning the company from a loss to a profit immediately after the acquisition. His unwavering commitment to SK Hynix is now paying off in the age of AI. Last year, SK Hynix achieved its largest-ever annual results, posting sales of 97.1467 trillion won and an operating profit of 47.2063 trillion won.

On the morning of the 8th, a vehicle carrying attendees of the 'Memorial Day' event held at Seonhyewon in Jongno-gu, Seoul, is entering the parking lot. Photo by Bokyung Jang

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On this day, attendees renewed their commitment to SK's founding principles by reflecting on key statements made by the founding and former chairmen. It is said that founding Chairman Chey Jong-gun once remarked, "Building a company brings abundant happiness to many people, just as a big tree casts a wide shadow," and emphasized, "The goal of a company is not to pursue individual gain, but to create benefits for the many people who live together."

The founding chairman consistently stressed that "the true asset of a company is its people," and the late former Chairman Chey Jong-hyun built upon this by establishing SK Group's unique management system, SKMS (SK Management System). SKMS serves as the foundation for building SK's corporate culture through consensus and sharing among all members. While providing the basic direction for management, it also details SK's management philosophy and concrete methods for putting it into practice. Since its inception, SKMS has been revised 14 times, with its management focus now defined as the sustainable happiness of its members, and with the creation of social value for the happiness of all stakeholders recognized as a core priority.

Chairman Chung Joon-young, predecessor of SK Group, lecturing on SK Management System (SKMC) at the University of Chicago in 1991.

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The management philosophies of both chairmen have been carried on by Chairman Chey. After establishing the Social Value Research Institute, Chairman Chey has continued efforts to create social value as a board member. The 'Social Progress Credit (SPC) Project,' in which SK measures the monetary value of social problems solved by social enterprises and provides cash incentives in proportion to their achievements, has involved 468 companies over the past 10 years. This has generated a total of 536.4 billion won in social value, with approximately 76.9 billion won in cash incentives awarded in proportion to these achievements.

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