What Is Chey Tae-won's 'New Capitalism' Paradigm?

(Seoul=Yonhap Infomax) Su Jin Yoo – Chey Tae-won, Chairman of SK Group, has underscored the need for a 'new capitalism' that incorporates social value alongside financial performance.

Chey argued that only by embracing this approach can society address pressing challenges such as environmental issues and social polarization, thereby achieving sustainable growth. As a methodology, he proposed the measurement and management of social value.

According to SK Group, Chey stated at the 'Tokyo Forum 2025' held in Tokyo, Japan, on the 21st, "Under the current capitalist system, we are facing a range of social problems," adding, "We need a new framework of capitalism that measures and manages the social value generated by solving these issues."

Chey pointed out, "Traditional capitalism has focused solely on financial aspects, offering little reward or incentive for social value." Social value, he explained, refers to contributions that go beyond economic profit to enhance the well-being of various stakeholders by addressing societal problems.

He emphasized the necessity of measuring and managing social value. "Because social value is difficult to quantify, optimal allocation of resources for its creation has not been achieved. Measurement has entailed high transaction costs and faced limitations such as data shortages," Chey said. "Now, with digital technology and artificial intelligence (AI), we have powerful tools to overcome these challenges." He suggested that technological advances like AI could serve as a key inflection point.

Chey continued, "Once systematic measurement and evaluation become possible, we can allocate resources differently and create incentives to change behavior." He referred to this as 'new capitalism.' He further explained that if capitalism comes to encompass social value, it could create a much better structure for a sustainable future.

To illustrate, Chey introduced SK's group-wide 'social value measurement' initiatives to help participants better understand the concept.

"At SK, we assess various factors such as job creation, tax payments, environmental impact, and community contributions for each affiliate, using a plus-minus evaluation system," he said. "Once measurement begins, it fundamentally changes corporate decision-making."

He added, "Key performance indicators (KPIs) for companies are no longer limited to financial value creation. The goal is not only to avoid undermining social value, but to continuously enhance it year after year."

Over the two-day Tokyo Forum 2025, held at Yasuda Auditorium at the University of Tokyo, Chey is set to diagnose the complex issues arising from deepening capitalism and highlight the importance of measuring and managing social value as a solution.

The Tokyo Forum has been jointly hosted annually by the Chey Institute for Advanced Studies and the University of Tokyo since 2019 to address global issues such as rapid technological advancement and geopolitical instability. This year's theme is "Rethinking Capitalism: Diversity, Contradictions, and the Future."

sjyoo@yna.co.kr

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