SKMS: SK Management System

Any SK People must have heard of SKMS at least once. SKMS is the abbreviation of SK Management System, epitomizing the management philosophy and unique corporate culture of SK.

‘Corporate culture’ conventionally conjures up company atmosphere, working practices, dress code, etc. Yet, SKMS harbors more profound implications. SKMS delivers SK’s core philosophy and execution methodology to all group affiliates. SK owes much of its present growth and development to SKMS-enabled management initiatives.

‘SKMS’, growth DNA of SK

SKMS represents a kind of ‘SK manual’ studied and developed by SK in 4 years to lift up the management prowess of SK People to global level after announcing the 2nd business inauguration in 1975 in a bid to join the league of global business enterprises.

In March, 1979 when the global economy was faltering in the wake of the 2nd Oil Shock, the late chairman Chey Jong-hyeon established SKMS in a belief that ‘Corporate management must be enabled by principles’ rather than focus on impending crisis. It was a conclusion consented by all executives in a 4-day-long executive seminar.

Since the establishment of SKMS, SK has grown into a global business organization, achieving 50-fold revenue growth in 30 years. Without SKMS, a series of SK’s successes in semiconductor and bio industries would have been difficult to achieve.

SKMS, evolving in response to changing business environment

Industries and technologies evolve very rapidly, with competition between businesses getting ever more intense. The scope of business and way of working have also become more diversified and complicated than the past. Since its inauguration in 1979, SKMS has been updated 13 times to maintain SK’s core philosophy and boost up execution capabilities of affiliates in response to changing business environment.

SKMS established SUPEX in the 1990s as SK’s unique way of working; and introduced the happiness of stakeholders and system management framework, etc. in the 2000s. More recently in 2016, SKMS explicitly named social value creation as a corporate management mission together with economic values, stipulating focus on responsibilities toward the society at large. As such, SKMS has evolved flexibly as a guide for SK’s growth rather than being locked into a pre-determined frame.