SK Group enhances board's role as part of governance revamp plan

SK Group said it will fortify the monitoring and advising role of its board as part of its governance revamp plan.

SK Group Chairman Chey Tae-won, far left, speaks during the Directors' Summit 2023 held Tuesday at the Grand Walkerhill Hotel in eastern Seoul. [SK GROUP]

SK Group said it will fortify the monitoring and advising role of its board as part of its governance revamp plan.

The decision was made during SK Group’s Directors’ Summit 2023 held Tuesday at the Grand Walkerhill Seoul where outside board members of 14 SK affiliates participated.

SK Group Chairman Chey Tae-won also attended the event.

“The board needs to roll out activities where they actively provide feedback and continuously monitor the decision-making process so that the CEO can make the best, balanced decision,” said Chey.

“As the board puts effort into communicating with executives and employees, the company’s problems and inconveniences should be solved and it can efficiently push for development.”

As a result of Tuesday's meeting, the audit committee under the board will directly oversee the companies’ internal audit teams in order to strengthen the companies' risk management system.

SK companies will also come up with a decision-making system where the management has to abide with the board’s policy and regulation in making investment or other management decisions.

The outside board members, will also strengthen their insight into new business areas, in order to properly act as a top decision-making body.

They also discussed ways to strengthen communication with stakeholders and elevate shareholder values.

SK Group has come up with what’s called its Governance Story in 2021 in order to push for an overhaul in the group’s governance structure under Chairman Chey’s will.

From this year, SK Group has elevated the status of Directors' Summit meeting to one of its top-tier strategy meetings that include Extended Management Meeting, Icheon Forum and CEO Seminar.

“Today’s summit is where discussions should be made on how to deliver SK’s sustainable development story and how to reflect more of the stakeholders’ voice in our management,” said Chey Jae-won, executive vice chairman at SK On.

“Outside board members should not only monitor management but also should understand and actively voice their opinions in major business areas in order to help the management.”

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]