SK Hynix actively pursued shared growth by revitalizing the semiconductor ecosystem through support for its partner companies, and indirectly contributed to economic growth through tax payments, employment, and dividends, achieving increased social value creation compared to last year.

SK Hynix announced on the 30th that it created social value (SV) worth KRW 9.4173 trillion in 2021.

The company announced that it had tallied its performance last year according to SK Group's formula for calculating social value, and that it had achieved a 93% surge compared to KRW 4.8887 trillion in 2020. This amount exceeds half of SK Group's total social value creation amount of KRW 18.4 trillion in 2021.

By sector, 'indirect economic contribution performance' such as tax payment/employment/dividends was calculated at KRW 9.7201 trillion, 'environmental performance' was -KRW 952.7 billion, and 'social performance' was KRW 649.9 billion.

Indirect economic contribution performance increased by 81% (KRW 4.3465 trillion) compared to 2020, as SK Hynix recorded its highest sales since its founding last year.

Social performance also increased by 44% (KRW 198.5 billion) thanks to efforts to revitalize the semiconductor ecosystem and expand contribution activities targeting vulnerable groups.

On the other hand, in terms of environmental performance, the negative impact increased by 2% (KRW 15 billion) as the total amount of greenhouse gas emissions increased due to increased production resulting from the expansion of global semiconductor demand.

The indirect economic contribution performance increased in all areas including tax payment, employment, and dividends.

Tax payments increased by 160% (KRW 2.3633 trillion) year-on-year due to increased profits, and employment also increased by 56% (KRW 1.7245 trillion) due to an increase in the number of employees and increased compensation. In addition, dividends increased by 32% (KRW 258.6 billion) through an active shareholder return policy.

On the other hand, in terms of environmental performance, SK Hynix recorded negative performance for the second consecutive year, as resource consumption and greenhouse gas emissions increased as semiconductor production expanded.

In detail, negative costs in the resource consumption/environmental pollution sector increased by 3% (KRW 24.2 billion) compared to the previous year.

However, the company partially offset the negative impact by achieving a 128% (KRW 9.1 billion) increase in sales through the development of low-power products in the product/service sector.

An SK Hynix official explained, “To reduce our environmental impact, we are actively participating in the Green Premium system and making efforts in various ways, including reducing greenhouse gas emissions and expanding wastewater reuse.”

The official added, “On the other hand, as a company, we are sorry for any negative impact on the environment for whatever reason,” and “We will continue to focus on improving the environment in the future.”

Social performance has significantly improved in the area of shared growth. SK Hynix has consistently provided technical support and training to its partners, striving to revitalize the semiconductor ecosystem. Furthermore, the company has contributed to the domestic production of materials, components, and equipment through joint technology development with its partners. As a result, last year's joint growth performance increased by 56% (KRW 180.6 billion) compared to the previous year.

In addition, in the social contribution sector, the company continued its non-face-to-face social contribution activities even during the pandemic, achieving a 9% (KRW 9.7 billion) increase in performance compared to 2020.

Additionally, through support for social enterprises, the ‘improvement in the quality of life of vulnerable groups’ increased by 45% (KRW 8.2 billion).

SK Hynix Vice President Kim Yoon-wook (in charge of sustainable management) said, “Since 2019, our company has been communicating transparently with stakeholders by announcing our social value performance for the fourth consecutive year,” and “We will continue to increase the execution power of ‘SV 2030,’ the company’s mid- to long-term goal of creating social value, and strengthen ESG management to contribute to humanity and society.”