SK Corporation Press Release: Appeals Court Grants Probation
Seoul (ots/PRNewswire)
SK Corporation issued the following statement on the decision by the Seoul Court of Appeals to grant probation on Chairman Chey Tae-Won's sentence on his appeal of the June 2003 lower court decision against him.
Dr. Kyuho Whang, SK Corp. Senior Vice President, the Head of Corporate Relations, said: "We respect the Court's ruling which granted him probation." In reaching its decision, the Court said that it took the following points into consideration.
The court recognized that the events that led to the charges against Mr Chey occurred in the process of trying to resolve problems from the past that he inherited when he became chairman.
The court believes that Mr. Chey did nothing motivated by self interest.
The court sees that Mr. Chey has made great progress in improving the company's corporate governance.
The court found that the losses that had been incurred have already been recovered.
The court recognizes the critical role Mr. Chey continues to play in corporate activities.
"Mr. Chey has continued to vigorously lead the company as it implements its strategic plan to grow, improve its business performance, and create value for all shareholders. Mr. Chey received a vote of confidence at the 2005 Annual General Meeting of SK Corp. A substantial majority of shareholders voted to accept every recommendation of the Board of Directors, including the reappointment of Chairman Chey. We believe this vote also acknowledged the success and continued potential of Chairman Chey's long-term growth strategy."
Results of Chairman Chey's strategy and actions include:
-- SK Corp achieved an increase in Return on Equity (ROE) from 2.8% in
1998 when Chairman Chey took office to 24.5% in 2004.
-- SK Corp's net debt/equity was reduced from 132% in 2001 to 73% in 2004
and total operating profits for 2004 increased 141% over the
corresponding period in 2003.
-- Under Chairman Chey's leadership, SK has adopted corporate governance
initiatives which are recognized as among the strongest in Korea.About SK Corporation
SK Corporation is the leading energy company in Korea and is the world's second largest single oil refinery. Established in 1962, SK Corporation has established operations in a number of core areas, including petroleum, petrochemicals, lubricants and exploration & production. The company, which employs 4,931 staff worldwide, is headquartered in Seoul with offices around Europe, the US and Asia.
SK Corporation continuously seeks to maximize investment efficiency and to increase return to its shareholders, investors and employees to the greatest extent possible. SK Corporation is also focused on securing its position as the most valuable company in Korea -- a successful value innovative company, a company its employees are proud of, and a company respected by the community.
Contact at SK Corporation:
Katharine Kho
Assistant VP
Public Relations Department of SK Corp.
Tel: +82-2-2121-5449
Mobile: +82-11-9122-8343
Email: kath@skcorp.com
Ji-young Lee
Assistant Manager
Public Relations Department of SK Corp.
Tel: +82-2-2121-5954
Mobile: +82-10-7149-2032
Email: jylee@skcorp.comContact:
Katharine Kho, +82-2-2121-5449, or +82-11-9122-8343, or
kath@skcorp.com, or Ji-young Lee, +82-2-2121-5954, or
+82-10-7149-2032, or jylee@skcorp.com