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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, November 6 (local time) — South Korea’s SK Group will advance its year-end executive reshuffle to begin next week, signaling the start of a sweeping reorganization across the conglomerate. According to an exclusive report by The Chosun Ilbo, industry insiders anticipate a large-scale reduction in executive positions, with SK Telecom expected to implement the first and most extensive cuts.
The newspaper reported that SK Telecom has already collected resignations from its C-level management and begun notifying executives selected for departure. The telecom unit, long considered a stable “cash cow” within the group, has reportedly become a primary target for restructuring following a high-profile hacking incident earlier this year that hit its earnings and reputation.
Major Cuts and Organizational Consolidation
Sources cited by The Chosun Ilbo said SK Telecom plans to cut up to 30 % of its executives and merge overlapping divisions. Within its in-house AI CIC (Company-in-Company) unit, about 40 % of executives have already lost their positions. One insider described the atmosphere as “tense, with everyone holding their breath amid sweeping structural reforms.”
The group’s top decision-making body, the SUPEX Council (SUPEX Pursuit Council), is also expected to undergo a 40–50 % staff reduction, as SK shifts executional roles back to its subsidiaries while maintaining the council’s strategic oversight functions.
Group-Wide Restructuring and Timing
Other SK affiliates are expected to follow with sequential announcements. While timing may vary, most personnel changes will take effect in early December, allowing for coordinated transfers across the group.
SK Innovation has already downsized amid weak performance, while SK hynix, buoyed by the semiconductor recovery, will reportedly remain outside the cost-cutting framework. Observers noted that Chairman Chey Tae-won’s recent partial legal reprieve in his divorce appeal case reduced uncertainty surrounding leadership decisions, paving the way for aggressive reform.
Leadership and Next Steps
Vice Chairman Choi Chang-won, head of the SUPEX Council, has spearheaded the restructuring drive and finalized executive-level appointments earlier than usual — on October 30, roughly a month ahead of SK’s typical schedule.
SK Group is currently holding its annual “CEO Seminar” from November 6–8 in Icheon, Gyeonggi Province, bringing together senior executives — including newly appointed leaders — to finalize the 2025 business strategy and organizational overhaul plan.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
