SK Networks held the 71st General Shareholders’ Meeting, aiming to accelerate its evolution into an AI company.
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2024-03-27
- The foundation for evolution was established in 2023 through business structure improvement and profit expansion.
- Interim dividends were also introduced to enhance shareholders' profit returns.
- Further plans include reinforcing AI businesses, ensuring a sound financial structure, and promoting shareholder-friendly management.
SK Networks (CEO: Hojeong Lee) held the 71st General Shareholders’ Meeting on March 27 at Samil Building (located at Jongno-gu, Seoul) and approved various agenda items, including financial statements, modification of the articles of incorporation related to interim dividends, independent director and audit committee member appointments as initially proposed. Additionally, the company announced to shareholders its strategy to evolve itself into an AI company by incorporating artificial intelligence (AI) technology into its existing businesses and executing strategic investments.
In the preceding year, SK Networks reported consolidated sales of KRW 9,133.9 billion and operating income of KRW 237.3 billion, indicating a 3.1% decrease in sales and a 33.6% increase in operating income compared to the previous year. These results were driven by the robust performance of its rental subsidiaries and Walkerhill’s strong business outcomes. As COVID-19 entered the endemic stage, Walkerhill revitalized its hotel and airport services, undergoing a successful turnaround through the introduction of technology-driven offerings like NFT membership and media-linked products. SK Rent-a-car boosted its profitability by expanding its overseas sales channels for used cars, while SK Magic refined its business portfolio for future growth. Furthermore, the year signaled the start of SK Networks’ shift towards becoming an AI-centric company with the acquisition of Encore, a top domestic data solution provider.
At the General Shareholders’ Meeting on this day, SK Networks resolved to introduce interim dividends as part of its proactive approach to returning profits generated by both the headquarters and its affiliates’ operations and investments. Consequently, a new provision for implementing interim dividends was incorporated into to the articles of incorporation following the board of directors’ resolution. The company aims to establish a more transparent dividend policy closely tied to business outcomes, and beginning this year, arrangements will be made to distribute interim dividends based on business and investment performance.
Regarding director appointments, Director Moonyoung Lee was reappointed, while Director Hwajin Jang, a tech-based management expert, was newly appointed. Both directors will also serve as members of the Audit Committee. As a result, the SK Networks Board of Directors (BoD) now consists of two internal directors, one non-executive director, and four independent directors. Sooil Chae, an independent director, was appointed as the board chairman at the BoD meeting following the shareholder’s meeting.
This year, SK Networks seeks to ensure a sound financial structure and enhance shareholder returns, while at the core of its strategy lies accelerating its transition to a business model centered around AI. SK Networks aims to promote continuous development throughout its headquarters and affiliates as an AI company and increase shareholder value through related investments.
CEO Hojeong Lee stated, “We will apply AI to our existing businesses, launch new AI products and services to realize our vision as an AI company,” and added, “We will continue to draw a sustainable future with our stakeholders, including shareholders, through treasury stock retirement and strengthened dividends.”
[Photos 1-1, 1-2] SK Networks CEO Hojeong Lee is presenting the business report to shareholders at the 71st General Shareholders’ Meeting of SK Networks held at Samil Building on March 27.
[Photo 2] A scene at the SK Networks shareholders’ meeting