SK Group eyes October reshuffle as attention turns to vice chairman promotions, leadership continuity

Speculation is mounting over SK Group's upcoming executive reshuffle, expected as early as the end of this month. At the center of attention is whether Choi Chang-won, chairman of the SK Supex Council, will stay on after leading the group's two-year rebalancing drive. Whether a second consecutive year of vice chairman promotions will follow is also drawing scrutiny, with SK hynix President Kwak Noh-jung and SK Inc./SK Innovation President Jang Yong-ho named as the leading candidates. Business circles say the reshuffle will offer the clearest signal yet of SK Group's management priorities in the post-rebalancing era.

SK Group plans to carry out its president-level reshuffle as early as the end of this month, industry sources said Monday, timed to coincide with a CEO seminar scheduled for Nov. 12-14. The group had traditionally held its executive reshuffle in early December, but moved the timeline forward by about a month last year so that incoming executives could participate in the seminar, where next year's business plans are discussed.

The most closely watched question is whether Choi Chang-won will remain as Supex Council chairman. A cousin of SK Group Chairman Chey Tae-won, Choi took the chairmanship at the end of 2023 and has since directed the group's sweeping rebalancing effort — overseeing mergers among affiliates and the sale of non-core assets to reduce debt and improve liquidity after years of aggressive expansion. As a result, SK Group's net borrowings fell from 82 trillion won ($60.8 billion) at the end of 2023 to 38.2 trillion won last year, and the number of affiliates shrank from 219 to 151 over the same two-year period.

Some observers believe that with the group now back on a stable footing after roughly two years of rebalancing, Choi may step down from the chairmanship and return to his role as vice chairman of SK Discovery. Should he depart, speculation has emerged that one of the group's four professional-manager vice chairmen — Yoo Jeong-jun, Seo Jin-woo, Lee Hyung-hee and Jang Dong-hyun — could take over the position.

Others, however, argue that Choi will continue to lead the rebalancing effort, noting that SK still has more affiliates than its peers among the four major conglomerates. "Some affiliates, including petrochemicals, continue to post losses, so group-wide rebalancing could well extend into next year," one industry official said.

Whether SK Group will produce vice chairman promotions for a second consecutive year is another point of keen interest. Last year's reshuffle saw Lee Hyung-hee, chairman of the communications committee, elevated to vice chairman — the first such promotion in four years since 2021. Eyes are now on whether strong business performance and expanded group roles will again translate into promotions this year.

Kwak is widely mentioned as the top candidate. He has served as CEO of SK hynix for more than four years since 2022, a period during which the company has firmly held the top position in the global HBM market and is on track to post record earnings this year. Many observers believe his track record warrants a promotion to vice chairman.

"The recent moves of vice chairmen Yoo Jeong-jun, Seo Jin-woo and Lee Hyung-hee into SK hynix simply reflect the company's growing weight within the group — they need not be seen as a variable working against Kwak's promotion to vice chairman," another industry official said.

The potential promotion of Jang Yong-ho, who concurrently heads SK Innovation and SK Inc., and the follow-on personnel moves it could trigger are also being closely watched. If Jang is elevated to vice chairman, he may relinquish his concurrent role at SK Inc. and concentrate on managing SK Innovation.

Such a scenario would likely bring changes to SK Inc.'s leadership structure as well. Kang Dong-su, who was promoted to president of SK Inc. last year and currently oversees its overall operations, could see his role expanded. With SK Innovation pressing ahead with further restructuring — including the planned absorption merger of SK ie technology following its earlier merger with SK E&S — observers say the reshuffle could spell out a clearer division of responsibilities among executives and a reorganized management structure.

The overall scale of changes to SK Group's president-level leadership is also drawing attention. Last year's reshuffle was sweeping, encompassing a CEO change at SK Telecom in the wake of the SIM card hacking incident along with a broad reorganization of management at major affiliates. In total, one executive was promoted to vice chairman, 11 were elevated to president, and four presidents were reassigned.

If last year's reshuffle was defined by urgency and a push for execution, the question this year is whether the emphasis will fall on renewal or stability. Earnings improvement at key affiliates, balance-sheet strengthening and the progress of new business initiatives are all expected to factor into the decisions. Given the need for continuity in carrying out post-rebalancing work, some observers suggest the group may opt for selective, situation-specific personnel changes at certain affiliates rather than a sweeping overhaul.