SK Group Enhances Governance Structure for the AI Era
South Korea’s SK Group, the country’s second-largest conglomerate, has announced a significant initiative aimed at enhancing its governance structure in preparation for the rapidly evolving landscape of artificial intelligence (AI). This commitment was unveiled during the SK Directors’ Summit 2024 held in Seoul, where Chairman Chey Tae-won and other executives discussed the new "Board 2.0" initiative.
The initiative aims to transition the board's role from merely decision-making to a more comprehensive function that includes setting strategic directions and evaluating performance. This shift is intended to better equip SK Group to navigate the complexities and opportunities presented by the AI era. The Directors’ Summit, now in its third year, serves as a crucial platform for strategic discussions within SK Group, alongside other key events like the Icheon Forum and CEO Seminars. The summit was attended by 50 external directors from 13 SK affiliates, highlighting the collaborative approach to governance.
Building on the previous "Board 1.0" framework, the new governance model seeks to align SK Group’s practices with global standards. The focus will be on long-term strategic planning, cross-checking management decisions, and overseeing the execution of activities. During the summit, executives discussed SK Group’s future strategies in critical sectors such as semiconductors, AI, and energy solutions. Chey Tae-won emphasized the importance of enhancing the group’s core competitiveness, particularly as the AI market is projected to expand significantly by 2027. He highlighted that to capitalize on AI-driven opportunities, SK Group must strengthen its core capabilities through operational improvements, with the board's expanded role facilitating deeper engagement in strategic direction and performance evaluations.
Since 2021, SK Group has been focused on board-centered management, driven by Chey’s vision to reshape governance and establish new standards. The conglomerate regularly conducts workshops and meetings for new external directors to ensure continuous improvement in governance practices. In his closing remarks, SK Supex Council Chairman Chey Chang-won indicated that the Board 2.0 initiative is a stepping stone towards achieving "Board 3.0," suggesting a future evolution of governance practices.
SK Group's commitment to enhancing its governance structure through the Board 2.0 initiative reflects a proactive approach to adapting to the challenges and opportunities of the AI era. By expanding the board's role and focusing on long-term strategic planning, SK Group aims to strengthen its core competencies and maintain its competitive edge in a rapidly changing business environment. This initiative not only underscores the importance of effective governance but also positions SK Group as a forward-thinking leader in the South Korean corporate landscape.
