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Press Release
SK Telecom Makes the Number of Outside Directors Larger Than the Number of Standing Directors
2005.03.11 PrintAt SK Telecom’s 21st Annual General Shareholders’ Meeting the number of Outside Directors was made larger than the number of Standing Directors with the aim of creating more managerial transparency.
Bang Hyung Lee, Dae Gyu Byun, Dae Sik Kim, and Seung Taek Yang, were appointed as new members of SK Telecom’s Board of Directors.
SK Telecom held its 21st Annual General Shareholders’ Meeting on March 11 in the company’s Borame Building in Seoul. At this meeting SK Telecom’s annual financial statements for 2004 were approved. The company’s total sales and net income for 2004 fiscal year recorded KRW 9.7 trillion and KRW 1.5 trillion respectively.
SK Telecom has been raising its regular dividend payout every year, since 2001. When the interim dividend paid last August is included, a dividend of KRW 9,300 per share was declared for 2004. If the special dividend, scheduled to be offered in April 2005 is included, the total cash dividend for 2004 amounts to KRW 10,300 per share. The 2005 regular dividend payout ratio for SK Telecom has been set at 35%. This is 10% higher than the percentage in 2004.
In addition, SK Telecom has made efforts to improve the Corporate Governance further, by revising the Articles of Incorporation to make the number of Outside Directors larger than the number of Standing Directors. This will lay the groundwork for further strengthening a Board of Directors-oriented management, and protecting minority shareholders’ interests.
An SK Telecom official revealed that by increasing the number of outside directors from 4 to 7, SK Telecom ensured that there would be enough outside directors to effectively run the following four subcommittees. They are: an outside director recommendation committee, an audit committee, a CapEx review committee, and a compensation review committee. The company aim is to have a board that creates value, as it goes beyond the usual role of checks and balances in the exercising of power within the company.
At the shareholder’s meeting, Bang Hyung Lee, executive vice-president of SK Telecom, Dae Gyu Byun, president of Humax Co., Ltd., Dae Sik Kim, professor of Hanyang University, and Seung Taek Yang, former Minister of Information and Communications were newly appointed as members of SK Telecom’s Board of Directors (BOD). In addition, Shin Bae Kim, president of SK Telecom, Jae Seung Yoon, president of Daewong Pharmaceutical Co., Ltd., Sang Chin Lee, former chairman of CNI, were reappointed as members of the BOD. As a result, the total eleven members of SK Telecom’s BOD were finalized. The BOD consists of four in-house directors: Jung Nam Cho, vice-chairman and representative director, Shin Bae Kim, president and representative director, Bang Hyung Lee, executive vice-president, and Sung Min Ha, vice-president. The seven outside directors are: Yong Woon Kim, Sang Koo Nam, Jae Seung Yoon, Sang Chin Lee, Dae Gyu Byun, Dae Sik Kim, and Seung Taek Yang.
SK Telecom vice-chairman Jung Nam Cho said in his address to the shareholders, "2005 will be a very important year for SK Telecom in respect to the laying of a robust foundation for developing new growth engines, and breaking into new markets quickly in preparation for rapid growth over the next ten years. In order to keep up with the new business paradigm of convergence between telecommunications and broadcasting, we plan to launch the world’s first commercial satellite DMB service in May of this year. In addition, SK Telecom is constantly striving to satisfy our customers’ ever-changing needs by launching such new services as ’Telematics’, ’Broadband Convergence Networks’, wired and wireless financial portals, and ’Digital Home’. This will ensure our success in the upcoming ubiquitous era".
SK Telecom has been raising its regular dividend payout every year, since 2001. When the interim dividend paid last August is included, a dividend of KRW 9,300 per share was declared for 2004. If the special dividend, scheduled to be offered in April 2005 is included, the total cash dividend for 2004 amounts to KRW 10,300 per share. The 2005 regular dividend payout ratio for SK Telecom has been set at 35%. This is 10% higher than the percentage in 2004.
In addition, SK Telecom has made efforts to improve the Corporate Governance further, by revising the Articles of Incorporation to make the number of Outside Directors larger than the number of Standing Directors. This will lay the groundwork for further strengthening a Board of Directors-oriented management, and protecting minority shareholders’ interests.
An SK Telecom official revealed that by increasing the number of outside directors from 4 to 7, SK Telecom ensured that there would be enough outside directors to effectively run the following four subcommittees. They are: an outside director recommendation committee, an audit committee, a CapEx review committee, and a compensation review committee. The company aim is to have a board that creates value, as it goes beyond the usual role of checks and balances in the exercising of power within the company.
At the shareholder’s meeting, Bang Hyung Lee, executive vice-president of SK Telecom, Dae Gyu Byun, president of Humax Co., Ltd., Dae Sik Kim, professor of Hanyang University, and Seung Taek Yang, former Minister of Information and Communications were newly appointed as members of SK Telecom’s Board of Directors (BOD). In addition, Shin Bae Kim, president of SK Telecom, Jae Seung Yoon, president of Daewong Pharmaceutical Co., Ltd., Sang Chin Lee, former chairman of CNI, were reappointed as members of the BOD. As a result, the total eleven members of SK Telecom’s BOD were finalized. The BOD consists of four in-house directors: Jung Nam Cho, vice-chairman and representative director, Shin Bae Kim, president and representative director, Bang Hyung Lee, executive vice-president, and Sung Min Ha, vice-president. The seven outside directors are: Yong Woon Kim, Sang Koo Nam, Jae Seung Yoon, Sang Chin Lee, Dae Gyu Byun, Dae Sik Kim, and Seung Taek Yang.
SK Telecom vice-chairman Jung Nam Cho said in his address to the shareholders, "2005 will be a very important year for SK Telecom in respect to the laying of a robust foundation for developing new growth engines, and breaking into new markets quickly in preparation for rapid growth over the next ten years. In order to keep up with the new business paradigm of convergence between telecommunications and broadcasting, we plan to launch the world’s first commercial satellite DMB service in May of this year. In addition, SK Telecom is constantly striving to satisfy our customers’ ever-changing needs by launching such new services as ’Telematics’, ’Broadband Convergence Networks’, wired and wireless financial portals, and ’Digital Home’. This will ensure our success in the upcoming ubiquitous era".