SK Inc. CEO Jang Dong-hyun speaks at the company's general shareholders' meeting at the Supex Hall of the SK Serin Building in Seoul, Tuesday. / Courtesy of SK Inc.
By Kim Hyun-bin
SK Group Chairman Chey Tae-won was reappointed as executive director of SK Inc. at the company's 31st regular general shareholders' meeting, Tuesday, despite opposition from the National Pension Service (NPS).
At the meeting, shareholders approved all four items on the agenda including the financial statements for 2021, the re-election of directors including Chey as well as Yeom Jae-ho and Kim Byoung-ho as outside directors, appointing an auditor, and the remuneration limit for directors. The meting was held at the Supex Hall of the SK Serin Building in Seoul, Tuesday.
The NPS strongly opposed Chey's reappointment, claiming, "He has a history of undermining corporate value and infringing on shareholder rights."
SK Group Chairman Chey Tae-won
SK Inc. explained that various efforts were made to strengthen communication with shareholders at the general shareholders' meeting.
The NPS had previously opposed Chey's executive director appointment and reappointment in 2016 and 2019, but failed both times. As of the end of last year, Chey is the largest shareholder of SK Inc. holding a 17.5 percent stake. Chey's younger sister Chey Ki-won, president of SK's The Happiness Foundation, also owns 6.5 percent. Chairman Chey's stake, including related parties, accounts for 26.69 percent, while the NPS has only on 8.38 percent stake.
For 2021, SK Inc. reported consolidated revenue of 98.33 trillion won, and an operating profit of 4.94 trillion won.
The top-level management, from CEO to investment and financial directors, took the stage to present business results and growth strategies for shareholders.
"SK Inc. will realign its asset portfolio and investment strategies in 2022, while bolstering its investment expertise and upgrading its management system including shareholders' return policy," SK Inc. CEO Jang Dong-hyun said in his opening remarks. "Despite challenging market conditions, SK Inc. continues to elevate itself as a frontier, which sets itself apart by aggressively delivering a profit to shareholders and making assets more efficient."
The company highlighted its commitment to enhance its shareholder return further and create stronger value for shareholders.
"In addition to the existing shareholder return policy of distributing over 30 percent of recurring dividend income, SK Inc. plans to use gains from the investment portfolio to repurchase its own shares, equivalent to more than 1 percent of market cap, every year through 2025" said Lee Sung-hyung, CFO of SK Inc. "Share buyback and cancellation are among the possible options from a shareholder return perspective."
Senior executives also presented their investment results and strategies.
"We have been investing proactively in areas with strong growth prospects such as semiconductor materials, battery materials and electric vehicle supply chain management (SCM)," said Kim Yang-taek, executive vice president of SK Inc.'s Advanced Materials Investment Center. "This year, we will focus on increasing the visibility of the next-generation EV battery materials business with the completion of an anode materials plant via a joint venture with Group14 Technologies and the establishment of a single crystalline cathode materials joint venture with Beijing Easpring, enhancing the fundamental competitiveness of the existing businesses and securing sustainable growth momentum."
