SK pledges to empower outside board members

SK Inc. board chairman Yeom Jae-ho (right) talks during a recent gathering of board directors of SK companies at a Seoul hotel on Oct. 31. (SK Group)

SK Group said Sunday it is ramping up efforts to bolster the role of outside board members in a way to help its board of directors play a more active role as the top decision-making body and elevate corporate value ultimately.

After giving them more authority like evaluating CEO performance, the chip-to-energy giant said it is launching new measures to boost the board’s expertise and prowess across affiliates.

Currently, SK Inc., the holding unit, has a nine-member board consisting of four in-house directors and five outside directors. SK Group Chairman Chey Tae-won is one of the in-house members.

SK said it has secured a group of candidates for outside directors who are specialists in diverse areas like finance, global business and environmental, social and governance issues. Starting next year, the list will be offered for review by SK companies when they fill seats on their boards.

SK also said it has developed a portal system to help outside directors better understand board agenda. Related internal documents and management information will be shared in a more transparent and efficient way. SK Inc. and SKC, a chemical unit, will adopt the system first.

The group has also launched “Directors’ Summit,” a communication platform where outside directors of SK companies share views on diverse industrial trends and discuss the role of a board directors to respond to the changes.

During a recent meeting held on Oct. 31, a total of 54 outside directors at 15 affiliates joined the event, with electric vehicle batteries and artificial intelligence topping the agenda.

“We will continue efforts for a board of directors to play not just the role of check and balance but also the role of partners who help elevate corporate value together,” said an SK official.

By Lee Ji-yoon(jylee@heraldcorp.com)