SK Group bolsters board’s role as a corporate governance watchdog

SK Group Chairman Chey Tae-won [Courtesy of SK]

SK Group recently adopted a new initiative on corporate governance and transparency. As part of the effort, the group’s audit committee, which operates under the board of directors, will directly oversee internal audit units at each affiliate, a move designed to address management risks and enhance the board’s ability to assist chief executives in making well-informed and balanced decisions.

The initiative was announced during the Directors’ Summit 2023 on Tuesday, SK Group’s corporate-wide event for its 14 affiliates.

The non-executive directors from the 14 affiliates at the event agreed on the initiative that allows the board’s audit committee to oversee the affiliates’ in-house audit unit to prevent any management risks.

They also reached a consensus on the need for the management to make specific decisions on investment and management in accordance with policies and regulations set by the board.

SK Group Chairman Chey Tae-won also called on the board for new approaches to corporate governance.

“The board of directors should play its role in encouraging CEOs to make balanced decisions by enhancing the decision-making process and offering feedback to the executives,” he said during a panel discussion at the event. “By putting more effort into interactions with executives and staff members, the board will be able to address affiliates’ issues and inconveniences while promoting growth in an efficient way.”