Special Lecture by Chairman Chey Tae-won

On April 27, 2022, Chairman Chey Tae-won gave a lecture on the topic of “the changing market and the businesses of the future” for university students, on track to join the future industry talent pools. Sharing his experience at the forefront of business management of the changes in the market and corporations as well as his thoughts on what businesses of the future should look like, the chairman explained that “the future value of a company will be determined by its relationship with customers.” Scroll down to find out the details of the lecture filled with enthusiasm of the students.

 

 

 

 

What Do Companies Strive For?

Chairman Chey Tae-won was invited to Seoul National University in Korea to give a lecture on the topic of “the purpose of businesses.” Chairman Chey Tae-won explained, “The purpose of operating a business is evolving from simply maximizing profit to ‘maximizing value,’ which encompasses the idea of social value.”

 

 

Chairman Chey Tae-won explained that changes in the market have influenced the shift in the purpose of operating a business. The chairman continued to elaborate: Digitalization has reduced the search cost and transaction cost for customers and suppliers. Globalization has resulted in the elimination of physical boundaries between markets while the heightened importance of ESG management now demands companies to take into account various elements such as the environment, society, and governance.

 

 

The critical element that determines the value of a company in the transformed market is the one-to-one (1:1) relationship with various stakeholders. Advances in AI and data accumulation enabled provision of products and services personalized to countless individual customers. The development of social media also accelerated the exchange of feedback and spread of information. “In contrast to the business environment of the past, a whole suite of tools has become available to build 1:1 relationship with customers, and using these tools can tackle problems that have persisted for a long time and create new markets,” explained Chairman Chey Tae-won.

 

 

In the end, the conventional market, which has long been dominated by supply and demand will gradually transform into one that is based on relationship, and the values that translate to the share price of a company are also evolving to sustainability, the stability of the client base, and profitability. This is the reason why stock prices will play a crucial role in the market going forward.

 

 

 

 

 

 

What Determines the Value of a Company?

“A business can generate value when it has a convincing story that instills confidence in its shareholders and investors that the company has the determination and capabilities to implement the story,” explained Chairman Chey Tae-won, citing SK Group’s financial story as an example.

 

 

Since the 2021 CEO Seminar, held in June 2021, SK Group decided to work towards contributing to reducing 200 million tons of carbon emissions, which translates to 1% of the global carbon reduction target, and each member company established specific and tangible targets led by their respective CEO. To this end, SK is in the process of transforming its business portfolio to become eco-friendly through efforts such as technological development and investments and expanding into new business areas such as hydrogen and battery.

 

 

 

 

What Do Companies Look For in Employees?

Last but not least, Chairman Chey Tae-won explained that the changes in the market are also creating different needs in companies when it comes to talent acquisition. In the market of the future, the production factor that matters is not land or capital, but people. Labor in digital economy is translated as “mental labor.” Chairman Chey Tae-won said, “Leaders of the future are not rule-takers, but those who are capable of designing the rules themselves.” He then urged the students: “I hope you embrace changes and turn them into opportunities.”

 

 

A series of questions followed from the students during the Q&A session. Chairman Chey Tae-won welcomed the questions and led a candid conversation before closing his special lecture.