SK hynix creates 5.37 trillion won economic contribution in 2020

By Baek Byung-yeul

SK hynix has been cruising on increasing its social contributions as part of the chip maker's efforts to strengthen environmental, social and corporate governance (ESG)-based management and achieve mutual growth with society.

The semiconductor arm of SK Group announced its achievements in creating social value last year. Since 2019, the company has quantified how much social value it has created in the previous year in three areas ― indirect contributions to the economy, business achievements in social performance and social contributions.

In terms of indirect contributions to the economy, which includes tax payment, employment and dividends, the company contributed 5.37 trillion won ($4.82 billion) to the Korean economy in 2020.

SK hynix posted minus 596.9 billion won in what it calls “business achievements in social performance,” explained as an indication of social value generated through product development, production and sales.

However in the social contributions sector that shows value generated for local communities through social contribution activities, the company contributed 110.6 billion won, 41.3 billion won more than the previous year due mainly to its intensive support measure for overcoming the COVID-19 pandemic.

The company elaborated it could generate 32 percent more in indirect contributions to the economy, compared to 2019, due to improvements in the conditions of the chip business. The negative amount for business achievements in social performance stemmed from environmental impacts such as greenhouse gas emissions.

Looking into each area more specifically, SK hynix said the indirect contributions to the economy have shown meaningful results in all sectors of tax payment, employment and dividends.

“Firstly, the amount achieved in the tax payment sector has increased significantly by 211 percent compared to the previous year. Also, SK hynix in 2020 reached the quota employment rate for the disabled ― 3.1 percent for private companies with 50 or more employees at all times ― achieving results in terms of employing the economically vulnerable. In terms of dividends, the achievement amount has increased by 17 percent year-on-year,” SK hynix said, adding it expects the figure will continue to grow with clear signs of improvements of the chip industry this year.

To further improve its ESG standards, the company will concentrate on achieving its social values 2030 (SV 2030) goals this year. In January, SK hynix announced it aims to achieve key goals including carbon neutrality, vitalization of the semiconductor industry, establishment of a social safety net and setting up a corporate culture based on diversity and inclusion.

“SK hynix has been raising the objectivity and reliability in measuring its performance by announcing the company's social value achievements for three consecutive years. We also will keep seeking ways to contribute to humanity and society by increasing the scale of social value creation while strengthening ESG management at the same time,” said Kim Yoon-wook, vice president and head of sustainability management of SK hynix.