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CEO Message

SK Networks is advancing toward a happy future that creates sustainable value

We are
pleased to welcome you
to the SK Networks website.

Since its foundation in 1953, SK Networks has been devoted to increasing the value of its customers, shareholders, and other stakeholders through business model innovations, keeping pace with the changing times. In 2024, SK Networks will be oriented towards three key objectives to achieve a new leap forward and long-term growth.

CEO Message from Lee Ho Jeong

CEO & President
Lee-Ho Jeong

Goals of SK Networks

  1. 01 First, we will evolve into an artificial intelligence
    (AI) company.

    Once again, SK Networks aims to prepare for a new future in the era of artificial intelligence (AI). AI is the most powerful trend in existence, and like electricity, it is expected to permeate all industries and individuals’ daily routines. Therefore, the gap between companies that adopt AI and those that do not will become increasingly difficult to bridge over time. In particular, we will integrate AI into our businesses, such as SK Magic, SK Rent-a-car, Walkerhill, and encore to create mutual synergies and demonstrate organic growth. Moreover, we will continuously explore new M&A opportunities across the AI landscape to secure new growth engines. Ultimately, SK Networks aims to utilize AI technology to provide a wide range of products and benefits, thereby maximizing value creation.

  2. 02 Second, we will
    ensure that a sound financial structure is maintained.

    A stable financial structure is a prerequisite for successful change. Amid the high-interest environment, our consolidated debt ratio exceeded 300% in 2023 due to the influence of SK Rent-a-car. However, the unconsolidated ratio was 146%, an improvement of 121% compared to the previous year, which marked our efforts focused on strengthening financial performance. SK Networks’ credit rating remained AA- while SK Rent-a-car was upgraded to A+ in 2023. This year, while continuously managing the profitability of its core businesses, SK Networks will improve its operating income ratio and further strengthen financial stability, including credit rating management.

  3. 03 Third, we will further enhance shareholder returns.

    SK Networks has been deeply contemplating how to strengthen shareholder returns for many years. As a result, we have increased communication with the market through active IR activities and executed treasury stock buyback and retirement since last year. In addition, we plan to operate a dividend policy linked to performance. To achieve this, business profits and investment performance earnings based on the dividend profits of the headquarters and subsidiaries will be used as a financial source for dividends. We also plan to pay a significant portion of business profit dividends as regular dividends in the first half of the year and introduce interim dividends to additionally pay a proportion of business and investment profits. As we advance, we will demonstrate our sincerity in shareholder returns to repay our shareholders’ trust and confidence in SK Networks.

As we pursue the evolution into an AI company, as mentioned above, SK Networks will realize this vision by transparently communicating with the market and various stakeholders. We also promise to continuously contemplate and strive to promote the company’s sustainable development. We look forward to your continued interest and support in our journey to prepare for a new future.

Thank you.