[NewsSpace = JeongYoung Kim]  SK Group Chairman Choi Tae-Won has revealed that he is in the process of formulating a succession plan for the group in an interview with Bloomberg.

Choi took over the reins of the company at the young age of 39 in 1998, following the passing of his predecessor, Choi Jong-Hyun. This year marks the 25th anniversary of his leadership. Choi, who has reached the age of 63 in 2023, is nearing the average age of chaebol leaders in South Korea, and considering recent succession transitions at major conglomerates like Samsung, Hyundai, and LG, SK Group's future leadership has become a topic of interest within the business community.

During an interview conducted in Paris on 9th (local time), Chairman Choi responded to questions about succession by stating, "I am giving a lot of thought to the issue of succession and must be prepared. If something were to happen to me unexpectedly, who would lead the group? A succession plan is necessary." He went on to say, "I do have a plan, but it is not yet the right time to make it public."

This interview marks a departure from his previous statements during a BBC interview in December 2021, where Chairman Choi mentioned, "Nothing has been decided. My son is still young and has his own life. I Won't force the chairman role on him," and "Opportunities are open to everyone. My children will need to earn their place. It will require approval from the board."

This shift in the interview content suggests that Chairman Choi may have already formulated a succession plan and engaged in discussions with the board. The SK Group board consists of four inside directors and five outside directors.

Chairman Choi has three children, and there is speculation in the business community that he may opt for a corporate division strategy to pass on key businesses within the group to his offspring. Chairman Choi has previously positioned semiconductor, biotechnology, and electric vehicle battery businesses, among others, as the group's core growth drivers and expanded global investments.

Chairman Choi's daughter, Yoon Jung, serves as the Head of the Strategic Investment Team at SK Biopharmaceuticals and is actively involved in the New Drug Development Task Force (TF). His second daughter, Min Jung, previously served as a naval officer and worked at SK Hynix, but recently took a leave of absence. She is currently working as a consultant for a U.S.-based remote medical startup. His only son, In Geun, is employed at SK E&S North America, an energy-focused subsidiary of the group.

However, transferring Chairman Choi's 17.5% ownership of SK Corporation to his children may prove to be a challenging task, especially considering the burden of inheritance taxes. None of Chairman Choi's three children currently hold SK Group shares. Given the current tax rates of a 50% gift tax and a 20% surcharge for major shareholders of large corporations, it may not be realistic for SK Group to continue its fourth-generation leadership. A transition to professional management and a board-driven system cannot be ruled out.

According to the Fair Trade Commission, SK Group's assets have grown substantially, from KRW 32.8 trillion in 1998 to KRW 327.3 trillion as of May this year, resulting in the group's rise in the business rankings from fifth to second place.

During the Bloomberg interview, Chairman Choi expressed his satisfaction with the U.S. government's decision to grant a reprieve on restrictions regarding the import of semiconductor equipment into China. He also commented on SK Hynix's involvement in Huawei's new smartphone, the "Mate 60 Pro," saying, "It's a mystery. They are not our customer anymore," and emphasized, "According to our internal investigation, we are no longer doing business with that particular customer."