SK Group Reorganizes SK Holdings

Plans to convert MRO business into a social enterprise

SK Group has carried out a partial overhaul of its holding company to shorten the group's decision-making process starting Oct. 1.
SK Holding Co. on Oct 5 announced its reorganization, calling for consolidating the New Business G&G Team and Technology Research ITC into G&G and halving its four-stage decision-making process.
An SK Group official said the reorganization, which has been advanced to an earlier date than expected, is designed to reestablish the responsibilities of the group's holding company and enhance effectiveness by reforming its corporate culture.
The reorganization has made its division structure into a greater team system so that the holding company can be nimble in order to respond to inside and outside changes in a fast and flexible fashion. The team member/team chief/office head/division chief/CEO structure has been changed to a team member/team chief/CEO system. SK Holdings has been reshaped into the G&G Corps responsible for pursuing growth, Business Support Team, Financial Team, Corporate Culture Team, COR Team, Law Affairs Team, and Management Planning Officer.
In the meantime, the business group said it decided to establish the SUPEX Implementation Committee, designed to strengthen ethics management of the group's subsidiary companies.
SK Holdings not only reinforces the competitiveness of its business portfolio and values, but also makes an effort to develop new growth drivers in spite of the rapid changes of the global economic situation. While developing SK's original values and corporate culture ― 'SK Values' ― SK Holdings is realizing its ideal future prospects.
SK Holdings is composed of various subsidiary and affiliate companies in the fields of energy, chemicals, IT, and logistics/services. Under the principle of responsible and transparent management, SK Holdings induces value maximization of each subsidiary by improving business competitiveness and management efficiency. At the same time, the holding company realizes the business philosophy "Separate Yet Together" by creating management synergy between each subsidiary.
As a long-term and strategic investment, SK Holdings is continuously reinforcing portfolio values and maximizing shareholder value. While maximizing return on investment (ROI) through the optimization of its portfolio, SK Holdings is focusing on developing new businesses to lead the future market. In particular, the holding company has been investing in the life sciences business in order to secure a next generation growth driver and is achieving excellent results in this business.
Since 1993, SK Holdings has been developing innovative drug candidates for treatment of the central nervous system and is actively conducting clinical trials approved by the FDA. In 1999, it signed an out-licensing agreement for epilepsy drug YKP509 (Carisbamate) with Johnson & Johnson. In 2009, the holding company signed an out-licensing agreement for narcolepsy drug SKL-N05 with Adrenex USA. Meanwhile, the CMS business is obtaining a worldwide reputation for its differentiated technologies and excellent service quality. SK Holdings is selling 40 products to the world's 10 best pharmaceutical companies.
SK Group Converting MRO Business into Social Enterprise
MRO Korea, which is in charge of SK's MRO business, is a 51 percent-49 percent joint venture between Grainger International and SK Networks with 150 employees and 2010 sales revenue of 102.4 billion won.
Through SK Group's conversion of the MRO business into a social enterprise, Korea's largest social enterprise will be established.
Also, the group is planning to receive a social enterprise authentication by reforming its organization and management system into one that can efficiently operate as a newly established social enterprise.
In addition, SK Group decided to create a new value chain between social enterprises in order to procure high quality MRO products by discovering excellent social enterprises and supporting them. This new value chain is expected to activate a new social enterprise ecosystem.
SK Group announced that it will give shape to a social enterprise model through discussions between concerned parties and a collection of opinions from government and civic groups.
Lee Man-woo, head of the SK Brand Management Office, said, "By converting an MRO business into an SK-style social enterprise, we will be able to activate a social enterprise movement and upgrade mutual growth between large companies and society." nw

SK Holdings not only reinforces the competitiveness of its business portfolio and values, but also makes an effort to develop new growth drivers in spite of the rapid changes of the global economic situation.

SK Group Chairman Chey Tae-won
Photo on courtesy of SK Group