SK Group redefines its board roles to better embrace AI

SK Group Chairman Chey Tae-won announced 'Board 2.0' initiatives, shifting board roles to strategic direction and performance evaluation.

SK Group Chairman Chey Tae-won speaks at SK Directors' Summit 2024 in Seoul on Nov. 7. [SK GROUP]

SK Group Chairman Chey Tae-won is pushing for a board reform to help the group navigate growing risks in the emerging AI era.

At SK Group's Directors’ Summit 2024 on Nov. 7, the group unveiled “Board 2.0” initiatives, redefining the board’s role from business decision-making to setting strategic directions and evaluating performance. Business decisions will primarily be handled by management, according to the announcement.

“To capture business opportunities as the AI era expands around 2027, it’s essential to strengthen core competitiveness through improved operational efficiency,” Chey said in his opening remarks.

“The board’s role will shift from decision-making to setting strategic directions and later assessing outcomes.”

SK Group had previously implemented “Board 1.0” initiatives, emphasizing board independence and transparency by strengthening the role of external directors.

In its second phase, the board will focus on setting mid- to long-term strategies, cross-checking management’s decisions and monitoring and evaluating performance.

“This redefinition aligns with a global trend where boards are engaged more with monitoring and directing while focusing on agendas beyond the management’s scope,” the group said in a release Monday.

The Directors’ Summit, now in its third year, is a key event for SK Group, alongside its management strategy meeting, the Icheon Forum, and CEO seminar, where key executives from its affiliates convene to make strategic decisions.

Attendees of this year's Directors' Summit included Chairman Chey, SK Supex Council Chairman Chey Chang-won and 50 external directors from 13 affiliates.

They also went over key businesses at the group such as semiconductors, AI and energy solutions.

At the CEO seminar earlier in the month, SK Group Chairman Chey had predicted that the AI era would face a major turning point around 2027 with the emergence of ChatGPT.

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