'Energy, Chemical Major
in Asia-Pacific Region'

SK Corp. CEO Shin expresses hope that his company will achieve the targets of the 'Second-to-Be'model

SK Corp. CEO Shin Hun-chul said SK Corp. has taken a step forward toward the year 2015 goal of becoming an energy, chemical major in the Asia-Pacific Region.
"Overcoming business hardships, our company has taken a step closer to becoming an energy, chemical major in the Asia-Pacific region thanks to support from shareholders and customers,"SK Corp. CEO Shin said in his New Year's message.
"SK has positioned itself as a global company as it achieved $10 billion worth of exports for the second straight year, saw crude oil and gas reserves surpassing 440 million barrels and expanded its global presence in China and Indonesia. SK Corp's inauguration of Incheon Oil Refinery has begun to have synergetic effects and the company has accelerated a move to build up a foundation for growth engines, starting with the implementation of the No. 2 Fluid Catalytic Cracking (FCC) Plant project. SK Corp.'s reliability in Korea and abroad has climbed up as the company's credit ratings have reverted to the investment ratings and became the winner of the Corporate Governance Grand Prize for the second straight year.
He said, "Internal and external business environment is not rosy during this year,
the final year of the 3-year "Second-to-Be"Model, but I have a firm belief that our executives and staff members will achieve the targets of the Second-to-Be."CEO Shin set four tasks for 2007.
First, he called for continuously strengthening competitiveness in core businesses. SK Corp. will strive to raise profitability by beefing up a competitive edge in the petroleum market, maximize synergetic effects with Incheon Oil Refinery, raise production and sales through expanded facility capacity and optimum operation and continue to improve efficiency of CLX, SK CEO Shin said. Besides, SK Corp. will accelerate oil exploration projects to secure additional crude oil and gas reserves and production volumes, he said.
Second, he said, SK Corp. will speed up a move to secure a foundation for securing growth engines by accelerating globalization in the Asia-Pacific region, including China, and development of new technologies. SK Corp. will step up efforts to develop a marketing network in China, stabilize the ongoing projects and explore new projects on a continuous basis.
Third, he said, SK Corp. will raise organizational capabilities and upgrade management systems. CEO Shin said his company will upgrade systems for global projects, culture, expenses linked to output, manpower input management, diverse risk management systems while upgrading such performance management systems as Key Performance Indicator (KPI) and raising efficiency of its operations.
Lastly, he called for making preparations for the launch of the Third To-Be Model in 2008. Recognizing that the company has acquired capabilities and what they lack, he said SK Corp. will push ahead with the Third to-Be Model starting 2008 without a hitch. nw

SK Corp. CEO Shin Hun-chul

SK Corp's Ulsan plant.