SK Group to carry out annual executive reshuffle next week

SK Group Chairman Chey Tae-won, left, and SK discovery vice chairman Chey Chang-won

South Korea’s SK Group will carry out an annual executive reshuffle as early as December 7, which will include vice chairmen positions. The conglomerate is expected to bring more top-level changes than last year when it sought stability.

According to multiple sources from the conglomerate circle on Thursday, SK Group will announce its year-end reshuffle as early as December 7.

In October, SK Group Chairman Chey Tae-won emphasized survival and transformation during a CEO seminar. The failure for Busan to win the 2030 World Expo bid is likely to serve as a catalyst for change.

Chey was the co-chair of the World Expo 2030 Busan Bid Committee. CEOs of SK Group affiliates were also committed to the bid.

The business community’s eyes are on the reshuffle of vice chairman positions.

Cho Dae-sik, chairman of SK SUPEX Council, has been leading SK Group’s highest consultative panel since 2016.

His retention is likely to draw most attention in the reshuffle this year. Focus is also on whether SK hynix Inc. Vice Chairman Park Jung-ho will remain.

Industry insiders are also watching closely whether the positions of SK Corp. Vice Chairman Jang Dong-hyun and SK innovation Co. Vice Chairman Kim Jun will be held.

If Jang voluntarily resigns, SK siltron Co. President Chang Yong-ho could succeed the position. Park Sang-kyu, CEO of SK enmove Co., is a potential candidate for SK innovation CEO.

SK Inc. and SK innovation have been underperforming this year, with SK’s cumulative operating profit coming to 4.63 trillion won ($3.56 billion) as of the third quarter from 8.6 trillion won last year.

Chey Chang-won, vice chairman of SK discovery Co. and Chairman Chey’s cousin, is a strong candidate to succeed Cho as chairman of SK SUPEX Council.

SK discovery raised 307.4 billion won in operating profit in the first 9 months of this year on sales of 6.8 trillion won. Sales gained by more than 100 billion won from the same period a year ago.

Chang-won is the largest shareholder of SK discovery with a 40.18 percent stake.

“Eyes are on how much Chey’s priority over renewal and generation change will be reflected in the reshuffle,” said a business insider. “Recent moves by Hyundai Motor Group and LG Group to appoint CEOS in their 50s are spurring a generation shift in the business world.”