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At a press conference held on the 20^th, SK Networks (Chairman and CEO Man-won Jeong) disclosed its strategies for bringing about an early end to the joint control by the creditor group the company is currently under, and the growth plan for coming years, detailing the steps for it to reinvent itself into a top integrated marketing company.   

“Vision 2010 is the blueprint which will guide us at SK Networks in our efforts to put an early end to the situation of joint control by the creditor group, and in our bid to give a new vitality to our company and become Korea’s leading marketing firm,”  explained Chairman Man-won Jeong.  The plan notably unveiled SK Networks’ goal of achieving over 10 trillion won in company value by 2010.  Chairman Jeong presented SK Networks’ pledge to “do our utmost to redress the wrongs done and restore the trust undermined through the crisis of 2003 by achieving greater transparency in our management and increasing company value.” 

SK Networks achieved last year 279.2 billion won in EBITDA (earnings before interest, taxes, depreciation and amortization), surpassing the corresponding figure promised to its credit group in the business normalization plan, by as much as 70 billion won.  Enjoying a continued upturn in performance, the company this year set its EBITDA goal at 435.7 billion, raising it by 36 billion won over the corresponding figure proposed in the normalization plan.  

Meanwhile the company’s ‘self-rescue plan,’ a plan proposing liquidation of its non-operating assets, is also being smoothly carried out as scheduled.  Raising 450.3 billion won in sales proceeds of investment securities and 53.1 billion won from property sales, SK Network already performed 50% of its obligations agreed upon in the ‘self-rescue plan.’ 

An official from the creditor group commented on the progress made by the company by saying “if SK Networks keeps going at this pace, it will be able to resume normal operation as early as in 2005 and be free of creditor control of the company by early 2006.”   

Asked about these impressive strides by SK Networks toward normalization, a company official attributed them to “its quality manpower, organized approach adopted in restructuring process, and willingness to part clean with tangential and secondary businesses to completely preempt any potential problems.”   “These factors helped SK Networks speedily remodel its business structure to a more profitable one and drive up its operating income,” he added.   

Moreover, SK Networks has already succeeded its metamorphosis into a firm with one of the most rational and open governance structures in Korea and embodying an exemplary management transparency. 

It has put into a place oversight bodies such as independent management team nomination committee and management evaluation committee, composed of representatives of the creditor banking institution group, accounting firms, law firms and the fund management council, to control and limit the power of the board of directors.  Other committees under the board, such as the board steering committee, independent director nomination committee and audit committee further ensure equity and transparency in the company’s management. 

The company’s overall supervisory system is in fact multi-layered, reinforced by extra measures implemented to guarantee transparency, such as independent standing auditors under the audit committee, exclusively made up of independent directors.