SK chief to give up board seats at affiliates

By Choi Kyong-ae

Chey Tae-won

SK Group Chairman Chey Tae-won will give up his seats on the boards of all the group’s affiliates, the company said Tuesday.

“The chairman will step down as director of all SK affiliates to take responsibility for the recent guilty verdict at the Supreme Court,” the company said in a statement.

Chey made the decision as he prioritizes putting the company back on track among other things, a company spokeswoman said by telephone.

On Feb. 27, Chey was sentenced by the top court to four years in prison for the misuse of company funds, dealing a blow to the country’s third-biggest conglomerate by assets.

Not surprisingly, the company has been facing a series of difficulties due to the absence of its chief. It has a number of overseas projects underway or on the drawing board that have been stalled because of his absence.

The SK affiliates from which the chairman will quit as director include SK Corp., SK Innovation, SK C&C and SK hynix, the statement said.

SK Group will soon discuss who will replace Choi. Sources said the firm may fill Choi’s positions with outside directors.

“The chairman asked chief executives of all SK affiliates and some 80,000 employees to make a concerted effort to ride out the current difficulties and further focus on customer services,” said the statement.

And Chey also said he will do whatever he can do for the good of the company even after quitting his director role, said the spokeswoman.

Meanwhile, SK Group Vice Chairman Chey Jae-won will also step down as director of SK E&S and SK Networks. He was also involved in the embezzlement case together with his older brother.

“With the chairman and the vice chairman years away from making key decisions, SK executives and employees will be on high alert to survive the uncertainties,” the statement said.