Conglomerate says it won’t cut back on investments despite Chey’s imprisonment
SK Group, the country’s third-largest conglomerate, said Monday it would increase its investments to 16.6 trillion won ($15.33 billion) this year, up 10 percent from 15.1 trillion won in 2012, in research and development as well as human resources management.
Kim Chang-geun, chairman of SK’s top decision-making body SUPEX Council, also said the firm would also hire about 7,500 new employees, including experienced and high school graduates, in 2013.
The comments were made during his first meeting with reporters as the new chief of the nation’s No.3 conglomerate, who was appointed in December last year. SK is currently undergoing difficulties as its chairman Chey Tae-won is in jail after receiving a four-year sentence for embezzling corporate funds for stock investment.
“It’s the beginning of the year and we’re facing uncertainties here and abroad, but we’ve made the decision to boost investments by 10 percent,” Kim said.
“If we stray away from investments at difficult times like this, we may end up losing in the contest. It’s more of our duty to make more active and efficient investments by knowing our priorities.”
Kim also said it had set its target for enterprise value at 300 trillion won without stating a specific date to accomplish that goal.
“The target of 300 trillion won is not a subject that could be decided by the group itself, but one that could be reached depending on how our affiliates work together on adjusting their three- to five-year business plans,” he said.
The enterprise value for 86 SK affiliates stands at about 100 trillion won when excluding the repetitive projects, according to the chairman.
Separately, Kim said he would play the mediator role in response to a question on what his role would be as the chief of SK’s SUPEX Council.
“The role I’m responsible for is mediating, not giving commands,” he said. “It’s also my duty to listen, discuss and find the best answers through that process.”
The SUPEX Council, which is divided into six different commissions such as strategy, global growth, shared growth and human resources, has a total of 17 SK firms as regular members.
Regarding the absence of its owner and former SK Group chairman Chey, he said he had concerns about how to take the conglomerate forward without its owner.
“Chairman Chey has played a large role as the strategic investor by meeting political leaders, chiefs and owners of large-scale global companies and creating opportunities from those relationships,” said Kim. “We’re somewhat flustered at this point … (But) we’re scrambling to come up with measures that are specific and hopeful.”
koreaherald@heraldcorp.com
