SK chief to head SK Telecom, forgo remuneration

SK Group Chairman Chey Tae-won

By Lee Kyung-min

SK Group Chairman Chey Tae-won will serve as chairman of SK Telecom without pay or any executive authority, in a bid to help the group's telecommunications affiliate accelerate its artificial intelligence (AI) business and digital innovation, the group said Monday.

Chey will not engage in corporate decision-making and instead will guide the management and the board to lead innovation, the group said.

SK Telecom's daily management activities will be led by current firm executives including CEO Ryu Young-sang, and major decisions will be made by the board chaired by Kim Yong-hak.

SK Telecom will be able to accelerate key initiatives to become a global AI company. The firm's medium- to long-term growth vision beyond short-term profit will in turn increase corporate valuation.

Chey's decision was backed by support from SK Telecom's outside directors who agreed that the affiliate's valuation will be strengthened in the long term.

“Innovation to become a global AI firm is a task that can no longer be delayed, and we are pressed for time with limited opportunities for the challenge,” he posted on the company's intranet bulletin board earlier in the day.

Chey expects successful innovation at SK Telecom will translate into overall deep changes for SK Group, speeding up the group's other key ICT businesses as a result.

“Since SK hynix was acquired by the chairman a decade ago, other SK affiliates have succeeded in expanding into the batteries, bio and hydrogen sectors,” an SK Group official said. “SK Telecom's innovation will help SK Group to become more agile.”

Chey helped strengthen SK hynix after it acquired Intel's NAND memory and storage business, and transformed SK Innovation, the group's energy affiliate, into an eco-friendly business.

The corporate value of SK hynix exceeded 100 trillion won ($83 billion) for the first time last year, becoming the second-largest firm on the benchmark KOSPI by market capitalization. It was a significant growth from its 2011 market capitalization of 13 trillion won, when it was ranked 14th on the KOSPI. It has since slid down one slot to third place, after the listing of LG Energy Solution.

“The chairman will integrate SK Telecom's capabilities through his vision, global network and strong resolve, thereby advancing innovation more effectively,” the official added.