SK Chairman Chey steps down from top post

The headquarters of SK Group in downtown Seoul

SK Group Chairman Chey Tae-won has stepped down from the top post of Korea’s third largest conglomerate’s decision-making body to serve as a strategic stakeholder, the group said Tuesday. Kim Chang-geun, vice chairman of SK Chemical, was appointed to chair the group starting January, it said.

Chey Tae-won

“Chey, who has served as the group’s head since 2004, will focus on global growth, future engine development and overseas networking as a strategic stakeholder,” SK said in a press release.

The 51-year-old will continue to lead the group’s three units ― SK Innovation, SK Holdings and SK hynix.

Nevertheless he won’t have any say in the affiliates’ management affairs, a spokesman said. SK Innovation is the country’s leading oil refiner; while SK hynix is the country’s No. 2 memory chip manufacturer after Samsung Electronics; SK Holdings has businesses including oil exploration and refining, chemicals, telecommunications and transportation.

Kim Chang-geun

“His departure will help increase autonomy of the group’s affiliates in terms of management because each of them will be controlled by their respective CEO,” the official said.

The group unveiled a set of new management strategies in early November whose essence could be summed up as “Don’t ask the group. Be independent, make a judgment, execute the plan and take responsibility.” The strategies will be put into practice from Jan. 1.

Chey’s unexpected departure was announced after the stock market closed so that the news carried no negative impact on the group’s stock prices. The market won’t open today due to the presidential election.

Rumors have it that his resignation was a preemptive action to avoid a managerial vacuum in the event of Chey being imprisoned in an upcoming court ruling later this month where he will face embezzlement charges.

SK officials strongly denied the allegations, saying the reshuffle was conducted without consideration of the ruling.

The verdict on Chey is expected to be made on Dec. 28. It’s hard to predict a ruling on the case, but court insiders don’t rule out the possibility that he could be jailed.

The tycoon was indicted in January on charges that he embezzled 180 billion won ($165 million) from SK Holdings’ affiliates to cover investment losses by himself and his younger brother. Chey has strongly denied the charges, claiming he hasn’t used any company money inappropriately.

Kim, born in 1950, started his career in SK Chemical in 1974 and has served at key posts at the conglomerate, including CEO of SK Holdings.

He graduated from Yonsei University in Seoul with a degree in business administration and earned a master’s degree in business administration from the University of Southern California. <The Korea Times/Park Si-soo>