SK to regain vigor with CEO's pardon

The Korea Times

The Korea Times

Business

Sat, September 23, 2023 | 00:04

Companies

SK to regain vigor with CEO's pardon

Posted : 2015-08-13 16:40

Updated : 2015-08-13 18:28

SK Group employees are welcoming the special pardon of Chairman Chey Tae-won, expressing the hope that his return will help the group push ahead with key business projects. / Yonhap

By Park Si-soo

SK Group is expecting a boost for its business because the firm's chairman Chey Tae-won was pardoned on Thursday along with 13 other convicted businessmen. The pardons were issued in recognition of the 70th anniversary of the nation gaining independence from Japan's 1910-1945 colonial rule.

Chey was reinstated to his position, clearing the way for him to retake control of the nation's third biggest conglomerate after two years and seven months in prison.

SK said his return to the helm will help the company recover growth momentum.

Hanwha Group Vice Chairman Kim Hyun-joong and Yeochun NCC CEO Hong Dong-wook were among the pardoned CEOs. Hanwha Group Chairman Kim Seung-youn on the other hand was not included.

"The pardons will pave the way for the country to reinvigorate its economy and tighten the unity of the people," the Korea Chamber of Commerce and Industry, said in a statement. "Korea has achieved miraculous economic growth over the past seven decades. The status of companies has also been lifted significantly during the same period. But one shortcoming made along the way was that companies have done little to get people's confidence."

The biggest business lobby group here expressed "regret" for the fallout, saying the pardons will give companies an opportunity to retool as transparent and responsible organizations.

SK extended its deep gratitude to the government and citizens, saying it will make all-out efforts to become a respected company.

"We will do everything we can for the nation's development and economic recovery," the company said in a statement.

SK officials said the chairman's return will facilitate the company's recovery with stability in its management. They said his absence had left the company reluctant to make decisions on big budget projects at home and abroad so the firm lost several profitable deals.

"SK will expand investment and employment," a SK official said. "The chairman will play a central role in implementing this."

In fact, SK's investment has shrunken significantly in the wake of the chairman's imprisonment. The company spent 15 trillion won expanding manufacturing and research and development facilities in 2012. But this fell to 13 trillion won in 2013.

Industry observers expected that SK's key affiliates will unveil a series of investment plans soon. Many say SK Hynix will lead the investment drive because the company has shown impressive performance so far this year on soaring demand for its high-end chips.

They said SK will come up with more aggressive ways to tackle the problem of youth unemployment, for which President Park Geun-hye seeks the cooperation of big companies.

Last week, SK unveiled a two-year startup incubating project, though which it aims to create more than 20,000 new jobs for young adults.

Meanwhile, Hanwha Group expressed regret about its chairman's exclusion from the pardoned list.

"It's regrettable," Hanwha said in a statement. "Nevertheless, we will hold onto our commitment to investment in the economic development of the country."

pss@koreatimes.co.kr