Panel downplays SK governance reform.

(From The Korea Herald)

By Kim Hyun-chul Despite last week's surprise announcement of resignations by SK Group's top executives, the Korea Fair Trade Commission remains doubtful about the governance structure of Korea's fourth-largest business conglomerate.

"After an internal review of SK's plan, we have reached a conclusion that it is not good enough to improve the group's governance structure," a commission official said. "The plan is positive for SK Corp. but the governance structures at other SK units fall behind that of SK Corp. and the cross-shareholdings among affiliates remain intact." The negative remark came after group chairman Son Kil-seung, the group chairman, and Chey Tae-won, the SK Corp. chairman and son of the conglomerate's late chief, Chey Jong-hyun, offered to resign from the board at SK Telecom, the nation's largest mobile carrier. Son has also stepped down from the top post at the conglomerate.

After the two were convicted last year for their roles in the $1.2 billion accounting fraud and illegal stock trading, they had been under mounting pressure from foreign and minority shareholders of SK companies.

SK Telecom president Pyo Moon-soo and vice president Chey Jae-won also announced their resignations. Pyo is a cousin of the SK Corp. chairman, and Chey is his brother.

On Saturday, SK Telecom appointed Kim Shin-bae, a company executive and board member, as its new president and CEO to replace Pyo. Kim has no family ties ...