November 30, 2024

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SK Chairman Chey Tae-won delivers a speech at 2022 Extended Management Meeting held in Seoul Friday. (Yonhap)

SK Chairman Chey Tae-won called on group executives to revamp a corporate valuation tool to better communicate with shareholders against the backdrop of global supply chain disruptions and monetary tightening, the company said Sunday.

In an extended management meeting held Friday, Chey stressed how the new corporate valuation tool -- designed to incorporate nonfinancial elements into financial performance measurement -- can reflect the business status of an SK Group affiliate with higher accuracy. The valuation tool would take into account social value, customer value, as well as tangible and intangible assets to a greater extent.

Moreover, the new valuation tool can lead to better management decisions with regards to resource allocation, such as investment and compensation, according to South Korea‘s second-largest conglomerate. The reframed tool can also contribute to enhanced performance measurement of an employee toward an intended result.

The event was held at Grand Walkerhill Seoul in Gwangjin-gu, Seoul and attended by more than 30 SK executives including Chey.

This is in line with SK’s groupwide effort to better communicate with stakeholders. In 2020, SK Group first unveiled plans to incorporate nonfinancial elements into financial performance measurement under its “Financial Story” initiatives.

SK has also sought to sharpen its tools to assess social value. Earlier in May, SK estimated the outcome of social impact created within the group to be at 18.4 trillion won ($14.2 billion) through 2021, up 60 percent from that of 2020.

Chey left for Paris on Sunday morning to support the presentation of Busan‘s candidacy for Expo 2030 on Tuesday during the 170th general assembly of the Bureau International des Expositions. The presentation will be delivered by Prime Minister Han Duck-soo.

SK, dedicated to semiconductor chips, chemicals and telecommunications, has some 190 affiliates within the group.

By Son Ji-hyoung (consnow@heraldcorp.com)