Established in 2012, SK hynix celebrated its 10th anniversary this year. Since day one, SK hynix has been proactively pursuing solutions to social problems by practicing SK Group’s double-bottom-line management philosophy. The company has created social value by conducting social-contribution activities rooted in information and communication technology (ICT).

SK hynix has made efforts to realize more meaningful corporate social responsibility (CSR) programming by verifying the efficiency and validity of its philanthropic activities. As a result, the communities surrounding SK hynix’s global production facilities see customized social relief strategies implemented to meet their unique needs. SK hynix plans to fulfill its responsibilities by establishing a social safety net and growing alongside each community by continuously promoting CSR initiatives that provide practical help to each region.

Make DRAM, Make DREAM: The Wuxi Subsidiary Delivers Hope to its Community

The Wuxi subsidiary in China is an essential production hub that drives continued growth for SK hynix by operating a 12-inch DRAM FAB. Since its establishment in 2005, the Wuxi subsidiary has created approximately 12,000 jobs.

▲ View of SK hynix’s Wuxi subsidiary

Under the theme of “Make DRAM, Make Dream,” the Wuxi subsidiary has developed various social programs that target environmental, poverty, and safety-related concerns in the Wuxi region. The Wuxi subsidiary’s CSR activities came about in three distinct stages. First, in 2007, the company carried out simple volunteer activities such as picking up trash and focused on sponsorship and emergency support. In 2016, SK hynix began to carry out independent projects in collaboration with the local government. At the same time, the company started raising funds through the Happiness Public Interest Fund for the first time as a foreign-invested company. The fund helps to develop and promote SK hynix’s local social contribution projects. Finally, from 2018 to now, the Wuxi subsidiary has been expanding the scope of its activities, developing additional social value beyond relief for the surrounding community.

The Wuxi subsidiary’s Loving Heart program has provided support for vulnerable communities since 2007. Built for children with physical disabilities in mind, the program features activities that include sporting events, mural painting, do-it-yourself crafts, and visits to cultural experience centers. A total of 4,800 Wuxi subsidiary members have volunteered since the campaign began, supporting 18,500 participants. In addition, in 2008, the Happiness Sharing Fund was established to provide monetary relief for members and their families’ medical expenses following severe illness and accidents. The Happiness Sharing Fund has provided financial support for 375 individuals, with 80% of the Wuxi subsidiary members currently participating voluntarily in fundraising efforts. In addition, local environmental protection activities have also been carried out by volunteers as a part of the Happy Together initiative.

Since 2016, the scope of the Wuxi subsidiary’s CSR efforts has expanded to include independent programs built in collaboration with local governments. During this period, efforts focused on localizing programming by uncovering community-based social concerns and creating unique solutions. The company’s Philanthropic Support Insurance began providing aid to an average of 6,000 people per year who struggle to obtain general insurance and manage medical expenses. Since 2017, the subsidiary has operated the Heartful Charity project to provide educational opportunities to 4,000 teenagers a year and funded cataract surgery for the elderly through its SK Light of Hope project. Finally, the company operates a mobile clinic called the Happiness Bus. Built using an ICT-based medical service system, the mobile clinic administers free medical examinations to vulnerable individuals.

▲ Image 1-2: SK Light of Hope project offering support for the elderly with cataract surgery
Image 3-4: Happiness Bus mobile clinic providing free medical examinations

The Wuxi subsidiary also contributed significantly to improving environmental management capabilities and perceptions in the region. Since 2018, it has provided consultation to other companies through the Corporate Environmental Sharing Infrastructure program. It also established a social enterprise to provide quality jobs to individuals who struggle to qualify for traditional employment opportunities, employing about 200 people as of 2021.

As traffic accidents frequently occur in the Wuxi region, the subsidiary created the Happy Umbrella campaign in 2018. Transparent umbrellas distributed to elementary school students help prevent accidents, and at the same time, the program raises awareness about safety, receiving an overwhelmingly positive response from the local community. In 2019, the Wuxi subsidiary launched the Happiness Village project to ease medical expenses in three disadvantaged villages and the Happy Sharing initiative to make semiconductor and career education accessible to local students.

▲ Image1: SK hynix Wuxi subsidiary’s Corporate Environmental Sharing Infrastructure program
Image2: Children taking part in the Happy Umbrella campaign to raise traffic safety awareness

The Wuxi subsidiary launched its Happiness Hearts campaign in 2020, installing Automated External Defibrillators (AED) and providing safety education in schools to prevent accidents and increase safety awareness. The introduction of this campaign led to the SKHidea social contribution idea competition held in 2020. Through this competition, and alongside the Chinese government, SK hynix discovers ideas for solving major social problems in China and supports the commercialization process. Last year, the SK hynix Foreign Language School was established to contribute to expanding the local educational infrastructure. Through SKHI Change Makers, the subsidiary is taking the lead in understanding social problems from the perspective of teenagers, creating social values together, and fostering future talent.

▲ Image1: Event celebrating the SKHidea competition
Image2-4: View of the SK hynix Foreign Language School campus

The Wuxi subsidiary has been carrying out CSR initiatives for many years, delivering happiness to the local community. The total number of beneficiaries reached approximately 40,000 in 2021.

As a result, the Wuxi subsidiary was selected as the “Best Korean CSR Model Company in China” by the local community for three consecutive years from 2019 to 2021, recognizing the sincerity in its continuous social contributions. In addition, SK hynix received a presidential citation in the Global Social Contribution category of Korea’s Beloved Corporate Government Awards in 2019 and was selected as the “Most Influential Charity” in the Charity Awards hosted by Jiangsu Province in 2020. In the future, the Wuxi subsidiary aims to continue to carry out various activities and establish a stronger local social safety net.

▲Image1: SK hynix honored at Korea’s Beloved Corporate Government Awards
Image2: Participants at the Charity Awards hosted by Jiangsu Province

Make People the Root of Everything, Create the Best, and Share Happiness: The Chongqing Subsidiary’s Journey

SK hynix’s NAND flash backend production base is located in Chongqing, China, and as such, the subsidiary plays an important role in continuing SK hynix’s growth in the global NAND market. Established in 2014, the Chongqing subsidiary has steadily contributed to revitalizing the local economy and developing local industry.

▲Exterior view of SK hynix’s Chongqing subsidiary

The Chongqing subsidiary has also taken initiative in tackling local social challenges. With the motto of “Make People the Root of Everything, Create the Best, and Share Happiness,” the subsidiary carries out various CSR initiatives for a broad range of people. The subsidiary’s efforts have been focused on preserving the environment, volunteering at social facilities, and improving living conditions for the vulnerable.

The Chongqing subsidiary has been spreading its values by regularly supporting students with scholarships, donating goods to regional elementary schools, and holding annual events for Children’s Day since 2015. The company also hosts Loving Heart – Tree Planting events in an effort to preserve local greenery and biodiversity. About 400 trees in total have been planted in the Gaoxin District, Chongqing City.

▲ SK hynix Chongqing subsidiary hosting the Loving Heart – Tree Planting program

SK hynix also repairs the lighting, electric circuits, and ceilings in local schools through a program launched in 2016 designed to provide assistance for the development of safe schools and housing. The company has made additional efforts to support the disadvantaged since 2018. It held a fundraising effort alongside the Chongqing Welfare Fund for the Disabled to receive aid through the program so far. Beginning in 2019, the company set up visits to welfare centers and senior citizens who lived alone, offering volunteer support and entertaining with performances.

▲ SK hynix Chongqing subsidiary helping provide safe schooling and housing support

Members of Chongqing subsidiary have worked together with the local community, not hesitating to offer volunteer support following the pandemic and natural disasters. Through the COVID-19 prevention support activities, 13,000 facemasks were donated to local daycare centers, kindergartens, and welfare centers. The Chongqing subsidiary also conducted consolation services for police officers, public transportation drivers, and medical staff in four hospitals. In 2020, when the large flood occurred in the region, additional consolation services following the disaster were conducted for relief workers such as firefighters. It was also the first year the subsidiary started to provide support for children living apart from their parents and help for underprivileged farming households.

▲Image1: SK hynix Chongqing subsidiary donating COVID-19 protective equipment
Image2: SK hynix Chongqing subsidiary helping local children in need

As a result of the Chongqing subsidiary’s CSR efforts in the community, the Chongqing Welfare Fund for the Disabled awarded SK hynix the “Loving Heart Company to Help the Challenged” title in 2019. It was also recognized as the “Loving Heart Company” by the Hongyingtao Voluntary Association(红樱桃义工协会) of Yuzhong District, Chongqing in 2020 and “Leading Company to Help the Disabled” by the Chongqing Welfare Fund for the Disabled in 2021.

▲SK hynix Chongqing subsidiary recognized by the Hongyingtao Voluntary Association of Yuzhong District

Additionally, the social contribution activities of SK hynix are not limited to Wuxi and Chongqing subsidiaries in China. The U.S. subsidiary donated about $200,000 to support and aid victims of COVID-19 pandemic in 2020. The company also helped the local community with various volunteer support such as sorting groceries with ‘Second Harvest,’ a food bank. About 100 colleagues gladly joined the volunteer work in spite of the pandemic to relieve the pain the community had suffered.

▲Volunteers lending a hand at the Second Harvest food bank

Connecting Humans and Technology Creates Happiness: Korean CSR Betters the Whole Community

SK hynix creates social value in multiple local communities by promoting growth together with the region and finding ways to make the world a brighter place for both contributors and beneficiaries.

▲Image1: View of SK hynix’s Icheon Campus
Image2: View of SK hynix’s Cheongju Campus

In Korea, CSR initiatives focus on three key areas: ICT-based social problem solving, future talent development, and voluntary participation of members.

In 2009, SK hynix initiated various CSR programs in Korea beginning with the launch of Happiness Sharing Volunteer group. In 2011, the company took a deeper look into the social challenges local communities were facing. Together with its members, the company created the Happiness Sharing Fund. Following a Matching Grant¹ method, donations were directing across various CSR initiatives. As of 2022, cumulative donations totaled KRW 27.5 billion. By utilizing the Fund, SK hynix runs a series of social contribution activities to solve social problems and nurture future talents. For instance, the Happy IT Zone project, launched in 2011, supports the remodeling of youth welfare facilities, adding ICT equipment to provide a more creative educational environment. Furthermore, the Happiness Lunch Box project provides side dishes for children and the elderly experiencing poverty.

Educational support for youths also continues. Underprivileged youngsters have a chance to learn music without financial burden through the Happiness Sharing Orchestra with Dreams project. Scholarships are also given out to underprivileged youths that excel and children and adolescents under institutional care through the Happiness Scholarship project.

▲Image1: 2022 Happiness Sharing Fund ceremony
Image2: Plaque commemorating 10-plus years of donations to the Happiness Sharing Fund

SK hynix’s CSR programming became even more diverse in 2016. It began with the launch of Happiness GPS, an initiative that prevents the disappearance of individuals with dementia and developmental disabilities. The company also provides support to at-risk youth through its coding and programming education initiative Heinstein. Finally, the Happy Moa project works to increase employment opportunities for individuals with developmental disabilities. The 100-Year Longevity of Veterans program provides cataract surgery and hearing aids free of charge to veterans.

▲Image1: Partnering to provide free GPS devices to track missing people
Image2: Fostering future talent through the Heinstein education initiative

Since 2017, SK hynix’s Happy School Uniform (RE:BUD) project has provided the elderly with financial opportunities by collecting and upcycling old school uniforms for resale. Its Silver Friend initiative, launched in 2018, works to reduce loneliness and inconveniences and ensure the safety of elderly individuals living alone. In addition, SK hynix members offer career guidance support to teenagers looking to enter science and engineering fields like the semiconductor industry through the Happy Dreaming program. Furthermore, the company supports social enterprises by donating used ICT devices, helping to create jobs for the disabled community, and extending the life of electronic devices.

▲Image1: Providing job opportunities for the disabled through the Happy Moa project
Image2: Creating jobs for the elderly through the Happy School Uniform (RE:BUD) project

SK hynix’s CSR initiatives continued to evolve throughout the years, inspiring both beneficiaries and SK hynix’s members. Its 2020 Walk ‘N Give initiative is a prime example. As part of this campaign, donations are made based on a target number of steps members achieve. Last year, participants at SK hynix Cheongju Campus topped a cumulative 500 million steps and donating KRW 30 million for reaching their goal. This year, the program is expanding its target to all the SK hynix members. Many SK hynix members participate enthusiastically in Walk N’ Give as it presents an opportunity to contribute to the community while creating healthy lifestyle habits.

Even in the face of the pandemic last year, SK hynix’s CSR activities found ways to adapt, continuing to deliver support to the community. For instance, the Happy Bread Bakery project provides vocational education to the disabled and encourages financial independence, and the Purme Social Farm initiative supports smart farm growth through the employment of people with developmental disabilities. In addition, projects such as the ICT Reception Room and the Silver Café helped establish ICT infrastructure for the elderly and create high-quality jobs for local seniors. Furthermore, the Metaverse Academy continued its work to foster future ICT talent through coding education using Metaverse.

▲Image1: Providing vocational education for the disabled through the Happy Bread Bakery project
Image2: MOU signing to build smart farms and create jobs for people with disabilities

Advancing ICT and Fostering Future Talent: The Future of SK hynix’s CSR Initiatives

Looking to the future, SK hynix has established a roadmap for long-term CSR initiatives through 2030. It plans to continue to use ICT to support the resolution of local community issues, build a better social safety net, and develop a platform that fosters global ICT talent. In addition, the company plans to continue its efforts to create a happier society through members’ volunteer work, creating a stronger foundation for sharing their talents.

This year, SK hynix plans to expand the use of ICT devices to solve social problems. It plans to increase the cumulative supply of Happy GPS devices to more than 28,000 and upgrade the support system through close cooperation with the Ministry of Health and Welfare and the National Police Agency. The distribution of Silver Friend, an AI technology-based care service for senior citizens living alone, is also set to expand with the goal of providing support to 5,000 older individuals.

In addition, SK hynix’s drive to systemize its Social Safety Net begins this year. The company is working to determine a clear target and scope of support and to specify the beneficiary review process so that help can be delivered promptly. SK hynix expects to increase the number of face-to-face activities in line with COVID-19 becoming endemic. In the area of fostering future talent, SK hynix plans to add metaverse and IoT subjects to the Heinstein education curriculum while continuing its Happy Dreaming activities by establishing an online/offline mentoring group which consists of college students.

That’s a quick look at the global CSR activities being undertaken at SK hynix locations around the world. SK hynix plans to continue various CSR activities and create happiness using ICT as a foundation to offer support for the underprivileged in our communities and grow together with our local areas.

¹Matching Grant: A donation model in which companies add the same value of monetary donations as members voluntarily contribute. In other words, it is a donation model with a “1 plus 1” concept in which members and companies join forces to donate.

The post SK hynix’s Global CSR Initiatives: Creating Happiness by Connecting People & Technology first appeared on SK hynix Newsroom.

Some of SK hynix’s most notable ventures supporting vulnerable communities include Happy GPS and Silver Friend. Happy GPS prevents children with developmental disabilities and elderly individuals with memory impairments from going missing, and the Silver Friend program provides AI speaker to elderlies in order to keep lonely elders company and aids in accident prevention. Both have received overwhelmingly positive feedback expressing the impact of each in overcoming the challenges within their respective communities.

However, these efforts are not the only ways SK hynix is lending a helping hand. In addition to these well-known projects, SK hynix is pursuing CSR efforts around the world to support the local communities our employees call home.

Let’s take a look at the wide variety of CSR activities introduced during the first half of this year and the diverse communities they serve.

Supporting Our Communities around the World

SK hynix America Inc.

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On June 23, 20 employees from SK hynix America and Hewlett Packard Enterprise (HPE) gathered at Second Harvest in Silicon Valley. Second Harvest, a food bank, collects grocery donations and distributes them to low-income individuals and families. Employees from both companies donated their time to sort and pack food donations for those in need.

Since last year, SK hynix has worked collaboratively in this way with major client, HPE, to actively pursue Social Values (SV). SK hynix approached HPE with the joint volunteering plan in an effort to introduce SV metrics and create social value as a part of their business relationship.

*All participants in the volunteer program had completed their COVID-19 vaccinations in advance of their participation.

Volunteer participant Edward Parsons, Senior Manager at SK hynix, stated “It’s really meaningful to lend a helping hand to those in need during the pandemic.” HPE employees also added that it “felt so rewarding to pack the food boxes and help in relieving the concerns of local families,”

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These efforts serve as a wonderful example of cooperation for social value between global companies, further building mutual trust and leading to a stronger partnership overall.

Wuxi and Chongqing subsidiaries in China

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Our Wuxi subsidiary has been running their ‘Loving Heart’ program every quarter for vulnerable communities since 2007. In the first half of this year alone, 75 people participated in several events and activities including a sports day for children with physical disabilities, the painting of murals on school walls, DIY creative projects, and visiting cultural experience centers.

Since the ‘Loving Heart’ program’s inception, a total of 4,480 employees from the Wuxi subsidiary have participated, benefiting more than 14,000 people. This is a great example of CSR demonstrates SK hynix’s commitment to working with local organizations to spread happiness throughout the community.

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On June 4, National Disability Day in China, our Chongqing subsidiary donated ¥30,000 (approximately $4,600 USD) to the city’s welfare fund supporting the handicapped community. The donation will be allocated to upgrading artificial inner ears for deaf children. The Chongqing subsidiary also made a donation in-kind of nutritional supplements and snacks to a nearby rehabilitation facility in an effort to help the patients remain motivated and focused on their rehabilitation journey.

Additionally, during Spring Festival in February, our Chongqing employees inspired their local community by organizing a gift donation for children who spend hours home alone waiting for their working parents to return.

SK hynix memory solutions Eastern Europe

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In Belarus, SK hynix memory solutions Eastern Europe has been running their ‘Wings of Happiness’ project since 2018 to help children and adolescents with developmental disabilities better adapt to societal structures and connect with their communities. The program offers various activities designed to help develop interpersonal skills including operating an art studio, putting on plays, making robots, woodwork sessions, chess club, etc.

As a part of this project, every October, one week is designated as the ‘Wings of Happiness’ holiday season. Over the past three years, each event has drawn significant attention with over 2,000 participants in total.

Doubling Our Impact with Sharing and Donations: Supporting the Community, Empowering the Youth, and Job Creation

Online Bazaar at Communications & External Affairs

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On May 21, SK hynix employees held a fiercely competitive bidding war to purchase items at an auction held by the Communications & External Affairs division.
Even though, due to the pandemic, the event was held online, more than 100 employees donated items and joined the live auction to bid on items and donate to a good cause. Some participants even donated their talents by sharing videotaped impressions of each other and partaking in entertaining performances, increasing not only the joy and excitement but the total fundraising amount as well.

The bazaar has been an annual affair since 2019, with more than 10 million won (approximately $8,700 USD) worth of donations collected each year. The proceeds are donated to SK hynix’s Happy GPS initiative to help prevent the disappearances of elderly individuals with memory disorders and children with developmental disabilities.

Support those in need with ICT

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SK hynix also operates the ‘ICT Reception Room’ based on the CSR belief that connecting humans and technology creates happiness.

An expansion of the Silver Friend AI speaker business for the independent elderly, this program offers four services: Happy Lounge, the chance to experience ICT equipment and care robots; Health Lounge, monitoring health conditions with smart health care programs and wearables; Vitality Lounge, providing various entertainment sources such as VR and AR; and Knowledge Lounge, supporting digital education and helping the elderly use kiosks and tablets easily.

Each of the four areas play an important role in preventing senior citizens from feeling isolated in our modern, digitized society by providing opportunities to familiarize themselves with ICT devices.

Fostering future talent

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SK hynix also actively supports young talent, the rising stars of our future. SK hynix’s Heinstein is a program that provides coding and software programming education to children and adolescents in the spirit of nurturing scientific talent.

Our program supports around 1,000 kids every year in taking coding classes provides in-depth education to the applicants among the competition winners in order to help them win prizes in both domestic and international coding / software contests. As of 2020, the program became available online, allowing any child to easily participate wherever they are in the world (as of 2021 the program supported more than 3,000 children.)

Employment support for socially vulnerable groups

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SK hynix’s ICT Infrastructure Eco-Business, responsible for recycling and reusing electronic waste, in cooperation with Happy ICT foundation, operates an employment support program for vulnerable communities. 40% of all members of Happy ICT belong to a vulnerable community and 34% among them identify as people with a disability. The foundation sorts reusable resources after examining old ICT devices from SK hynix, either fixing them to sell as second-hand products or donating them to those in need. Profits from these efforts are used to create even more jobs for individuals from vulnerable communities. In parallel, the program contributes to bettering the environment by recycling and encouraging more community donations.

In a similar effort, SK hynix established the Happy Bread bakery through Happy Moa. A subsidiary-type standard workplace for the disabled, Happy Bread seeks to provide job security and economic independence for its employees and members of their community. In addition, Purme-Socialfarm, our yet another socially contributing organization which establishes smart farms applying ICT technologies, seeks to employee development disabilities to help them become economically self-sufficient, and increase disability employment rate.

Although it is a difficult time around the world due to the impacts of the pandemic, SK hynix continues to share happiness with communities under the social value of coexistence.
SK hynix is committed to continue its efforts to improve and develop additional CSR activities in support of vulnerable communities around the world, empowering every individual to live a rich and rewarding life as an integrated member of society.

The post The Everyday Heroes of SK hynix: Demonstrating Our Global Commitment to Local CSR first appeared on SK hynix Newsroom.

SK hynix Inc. (or ‘the Company’, www.skhynix.com) announced its achievements in creating social value (SV) in 2020. Since 2019, major affiliates of SK Group have been quantifying and announcing the SVs created in the previous year in three areas of “achievements in indirect contribution to the economy”, “business achievements in social performance”, and “achievements in social contribution”.

SK hynix’s achievements of SV last year in the three areas are as follows: KRW 5,373.7 billion for “achievements in indirect contribution to the economy” including tax payment, employment, and dividends; KRW -596.9 billion for “business achievements in social performance” including social (labor/shared growth) and environmental fields; and KRW 110.6 billion for “achievements in social contribution” including donation and social contribution activities.

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The achievements in indirect contribution to the economy has increased by 32% (KRW 1,314.3 billion) compared to the previous year as the semiconductor business conditions improved from last year. The business achievements in social performance, however, the negative amount has increased by 11% (KRW 57.1 billion) year on year due to environmental impacts such as greenhouse gas emissions. Meanwhile, the amount of achievements in social contribution has increased by KRW 41.3 billion mainly due to intensive support for overcoming COVID-19.

Looking into each area more specifically, the Company announced that the achievements in indirect contribution to the economy have shown meaningful results in all sectors of tax payment, employment, and dividends. Firstly, the amount achieved in the tax payment sector has significantly increased by 211% compared to the previous year. Also, SK hynix reached the quota employment rate for the disabled (3.1% for private companies with 50 or more employees at all times) in 2020, achieving results in terms of employing the vulnerable. In terms of dividends, the achievement amount has increased by 17% year on year. SK hynix expects that the achievements in indirect contribution to the economy will continue to grow with the clear signs of improvements of the industry conditions this year.

Business achievements in social performance incurred the negative costs of KRW 944.8 billion in the environmental sector, increased by KRW 127.2 billion from 2019. SK hynix explained that this is due to the characteristics of the semiconductor industry, which consumes large amounts of water and electricity and emits greenhouse gases during the manufacturing process. An official from SK hynix said, “As a result of efforts such as recycling resources across the company, the amount of greenhouse gas emissions per unit production has decreased. However, the Company feels regrettable to its stakeholders that total amount of emissions have increased. SK hynix will focus on reducing the total amount of greenhouse gas emissions by making efforts in various fields such as environmental technology development to reduce adverse environmental impacts.”

Nevertheless, SK hynix has shown the increase of 21% year on year by KRW 322.4 billion in social sector and 116% year on year by KRW 25.5 billion in the products/services sector, partially improving the negative result in overall environmental sector. The Company has strengthened support for its partners by operating “the Technology Innovation Company program” and “the analysis and measurement support center” to foster localization of materials, parts, and equipment. Also, the Company has expanded the supply of low-power products including SSDs that drastically reduce carbon dioxide emissions.

SK hynix has recorded a 60% increase year on year by KRW 110.6 billion in achievements in social contribution. Throughout last year, SK hynix continuously strived to contribute to overcoming the COVID-19 crisis. The Company showed its support to medical staff and provided smart devices necessary for remote learning for children from low-income families in order to build a social safety net.

SK hynix plans to concentrate the company-wide capabilities on “SV 2030”, announced in January this year as the company’s mid- to long-term plan for SV creation. Through this, the Company aims to achieve key goals including becoming net zero by 2050, vitalization of the semiconductor ecosystem, establishment of a social safety net, and internalization of a corporate culture based on diversity and inclusion.

In particular, as the first company to join RE100* in the semiconductor memory industry, SK hynix has shown its strong will to actively make improvements in the environmental field through various efforts such as minimizing greenhouse gas emissions, reducing waste, and expanding water resource recycling in the semiconductor manufacturing process. In addition to this, the Company plans to continue its efforts to replace the existing storage device, HDD, with low-power SSD to expand environment-friendly technology.

*RE100: Declaration to cover 100% of the company’s electricity us with renewable energy by 2050

Kim Youn-wook, Vice President for Corporate Sustainability Management of SK hynix said, “SK hynix has been raising the objectivity and reliability in measuring its performance by announcing the company’s social value achievements for three consecutive years. We also will keep seeking ways to contribute to humanity and society by increasing the scale of social value creation while strengthening ESG management at the same time.”

※ Reference: The purpose and future plans of SK’s social value measurement announcement

Since 2019, SK Group measures the social values created in the previous year based on the ‘Double Bottom Line (DBL) Management’ that pursues both economic value (EV) and social value (SV) and publishes the results every year.

Over the past three years, SK has achieved promising results in the products and services areas, such as displaying meaningful social value creation achievements, and expanding employment of socially vulnerable groups. Nevertheless, SK self-evaluated that the innovation of business model (BM) based on social values has not yet ridden the track, and that a breakthrough effort to drastically reduce greenhouse gas emissions is still necessary.

SK, which is implementing a financial story based on ESG, plans to actively connect its social value measurement with its ESG management, by reflecting social value measurement result in management strategies and decision-making of SK’s affiliates. It also plans to increase the reliability of measurement by transparently disclosing the greenhouse gas measurement index and formula to external stakeholders.

Meanwhile, the quantitative measurement of ESG performance is also spreading globally. The Value Balancing Alliance (VBA), launched by SK with more than 20 global companies and organizations such as BASF and Novartis in order to develop a global measurement model, is currently expanding its influence by collaborating with the International Financial Reporting Standards (IFRS) and the World Economic Forum (WEF), and Harvard Business School (HBS). SK plans to lead the global standardization of social performance measurement by strengthening cooperation with these organizations.

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), Flash memory chips (“NAND Flash”) and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

Media Contact

SK hynix Inc.
Global Public Relations

Technical Leader
Jaehwan Kevin Kim
E-Mail: global_newsroom@skhynix.com

Technical Leader
Eun Suk Yixi Lee
E-Mail: global_newsroom@skhynix.com

Technical Leader
Sejin Julia Yoo
E-Mail: global_newsroom@skhynix.com

The post SK hynix Announces 2020 Social Value (SV) Achievements first appeared on SK hynix Newsroom.

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SK hynix discovered otters, Natural Monument No. 330 and a level-one endangered animal in South Korea, living near Jukdang Creek at Icheon, South Korea. The creek, which is close to SK hynix Icheon Production Site, receives properly treated effluent from the site.

SK hynix first discovered otter excrement and footprints in February 2019. Since then the Company constantly monitored the surrounding water ecosystem, and finally succeeded to shoot actual otters with unmanned infrared sensor cameras.

Figure 1. SK hynix discovered otters near SK hynix Icheon Production Site

SK hynix has been conducting quarterly water ecosystem investigation around its Icheon Production Site since 2019. As a result, the Company discovered not only otters but also sparrow hawks, kestrels, mandarin ducks living near Jukdang Creek; these animals are all enlisted as Natural Monuments in South Korea.

It is believed that the reason why a wide variety of animals inhabit Jukdang Creek is the stable food chain. The properly treated effluent from Icheon Production Site increased the water volume of the creek, and eventually provided animals inhabiting this area with more food.

Water is utilized for various manufacturing processes including wafer cleaning, equipment cooling, and clean room temperature adjustment. The effluent is then discharged via treatment facilities, with such proper treatment SK hynix Icheon Production Site discharges averagely 80,000 tons of water to Jukdang Creek on daily basis.

SK hynix currently has one integrated wastewater treatment plant at Icheon Production Site, and is building an eight-story advanced wastewater treatment plant which is to be operated within this year. Once the construction of the new plant M16 is finished and the water usage increases, the Company anticipates this huge facility will help treat effluent properly in the future.

It is notable that Icheon Production Site applies a much stricter water quality standard than the general standard set by the government. Under Framework Act on Environmental Policy by South Korean government, all indicators of SK hynix’s effluent maintain the “Ia (very good)” or “Ib (good)” level.

“We are conducting monthly water quality investigation and quarterly water ecosystem monitoring at the creek with external specialized institutions to minimize impact on the creek and increase ecological diversity,” said Hyeong Soo Kim, Head of Safety Health Environment (SHE) at SK hynix. “We plan to preserve the surrounding water ecosystem through continuous environmental impact monitoring and analysis.”

The post Welcome, Otters! – Natural Monument Found near SK hynix Icheon Production Site first appeared on SK hynix Newsroom.

SK hynix has been playing a leading role in the development and manufacturing of memory semiconductors for decades, thanks to a great deal of supports from its local and global partners. SK hynix has been sharing its assets accumulated for over 30 years to bolster the semiconductor ecosystem’s competitiveness, by nurturing partner companies’ workforces and strengthening their technological prowess through various activities. Among them, a knowledge-sharing platform named the “Semiconductor Academy” is one of the resources numerous partners are keeping their eyes on. SK hynix newsroom team met up with Social Value (SV) Business Model Team who runs this unique platform to learn more about the Semiconductor Academy and get a clearer picture of the future that SK hynix is aiming to achieve through infrastructure sharing among its partners.

Forming a Virtuous Circle in the Semiconductor Ecosystem

SK hynix is striving to establish a “Shared Infrastructure” to open up its various assets to its valued partners, with the aim of enhancing the semiconductor ecosystem. As part of these efforts, SK hynix launched its knowledge-sharing platform “Semiconductor Academy” in 2018, where SK hynix’s partners can learn more about its knowledge of semiconductor industry.

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At the Semiconductor Academy, every employee working at one of SK hynix’s partner companies can choose from 205 online courses, which cover a diverse range of topics including semiconductor basics, devices, design and statistics, all free of charge on a PC or a mobile device. SK hynix also provides 180 offline sessions a year at a discounted price, which consist of 86 different content that extend to 16 fields including process, design, product, quality, marketing, and automation.

Along with both online and offline open lectures, the Semiconductor Academy also provides customized lectures reflecting the needs of valued partners. Full-time lecturers deliver offline lectures according to each partner company’s preference of curriculum, schedules and locations. Starting with 12 sessions that benefitted eight partners in 2018, the Academy held 40 sessions in 2019, and the number of companies taking part also doubled to 16.

Currently, 255 partner companies benefit from courses found at Semiconductor Academy, and the free online lectures have already been watched by 57,530 people as of January 2020. By the second half of 2019, 2,590 people from 105 companies completed the offline courses, an increase of the number of students more than 100% year-over-year (YoY). Based on this strong support displayed by partners, the Semiconductor Academy has emerged as one of the top semiconductor-specialized educational institutions in just two years since its launch.

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Jinhyo Baik, Technical Leader (TL) at SV Business Model Team said, “Since SK hynix’s semiconductors are completed through many collaborations with numerous partners, we believe that the technological prowess of our partners must improve simultaneously so that we can produce the highest quality products together. We sincerely believe that sharing our vast knowledge accumulated over years is the best way to further strengthen the virtuous cycle in the semiconductor ecosystem, which will ultimately come back as even greater value to SK hynix.”

“Practical hands-on training applicable to the field”

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SK hynix is also holding regular meetings with its partners to discuss the best ways to foster semiconductor talents. Given the name “Semmunity” (Semiconductor + Community), these workshop sessions are held once or twice a year with the people in charge of each partner company’s employee education. SK hynix aims to achieve synergy effect of knowledge sharing through the communication and networking among its partners.

In addition, SK hynix is actively seeking valuable feedback from the students, listening to their opinions via after-class events and social networking services (SNS).

What are the greatest merits of taking lectures in Semiconductor Academy? The students enrolled at after-class events in the second half of 2019 listed five best merits as below.

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The students chose the brilliant lecturers as one of the best merits at Semiconductor Academy. Many commented that the practical trainings provided by field experts were incredibly helpful. The curriculum, which was designed to encourage effective and gradual learning by introducing courses from basic to advanced level, was also well-received by participants. The low lecture prices were also often mentioned as one of the biggest advantages.

There was an overwhelmingly positive response on the pleasant lecturing environment. With the Semiconductor Academy providing smaller classes than other institutions’ lectures, participants always had ample Q&A time with specialists during the sessions. Students also felt the opportunity to meet with other partner companies’ employees whom they had no prior connection with was especially important, as they were able to share knowledge and expertise, and form new networks through the lectures and workshops.

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Thanks to the honest and positive feedback from partners, SK hynix plans to employ more instructors, as well as diversify and enhance its curriculum starting this year. Besides simply transferring knowledge, SK hynix plans to provide effective consultation on establishing self-educational systems that allow partners to develop their own unique capabilities.

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Lastly, we asked about the future SK hynix dreams of, especially regarding the sharing of knowledge with partners. Baik said, “SK hynix is committed to continuing its efforts to grow mutually with partners based on trust and support, becoming a kind of “business family” rather than simple “business partners”. We expect the Semiconductor Academy to strengthen the fundamental competitiveness of our partners and play a key role in leading the virtuous cycle in the semiconductor ecosystem.”

The post The Semiconductor Academy: SK hynix’s Unique Knowledge-sharing Platform for its Trusted Partners first appeared on SK hynix Newsroom.

The SK hynix newsroom team met with the people related to the project to learn more about the outstanding achievements of the Happy GPS project over the past three years, and to show how the initiative has made society a happier and safer place to live in.

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Under SK hynix’s philosophy of creating social value by solving social problems, the company has been striving to solve such issues that have arisen in welfare blind spots for a long time. Initially, the company began with supporting the residents in need among the local communities near its campuses. But with the accumulation of know-how and the kind supports from its employees, SK hynix started to engage in more diverse CSR efforts dealing with various social issues.

Hence the Happy GPS project began. As one of the leading memory semiconductor companies, SK hynix looked for new social contribution programs that utilize ICT technology. It learned of the seriousness of missing cases related to dementia-stricken senior citizens, with the information from the Korean National Police Agency (KNPA) in 2016. As a result, SK hynix decided to help early detection of missing persons with memory disorders when such incidents occur, and even help prevent missing cases in advance. . To achieve this, SK hynix developed a real-time location tracking roaming detector in 2016, and began to distribute the device in 2017.

The number of Happy GPS devices distributed in Korea over the past three years has reached 16,000. In 2017, when the device was introduced, 6,000 Happy GPS devices were sent to the elderly with dementia, and in 2018 an additional 4,000 units were provided. In 2019, the target extended to people with developmental disorders. Consequently, 3,000 Happy GPS devices were delivered to both the elderly with dementia and developmental disorder patients each, to make up a total of 6,000 units in the year.

Meanwhile, “Happiness Sharing Fund,” established in 2011 by SK hynix, has been used for the Happy GPS project. The fund is created to provide financial support to socially vulnerable groups via a “matching grant” method, where the company donates the same amount of money as donated by the company employees. So far, a total of KRW 1.4 billion was spent for the Happy GPS project.

Since the introduction of Happy GPS device, solving missing cases has become much easier. As soon as a missing case is recognized, the missing person’s location can be traced in real time so that they can be found before any additional accidents might occur. According to data provided by KNPA, a total of 207 reported missing cases have been solved thanks to Happy GPS.

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According to statistics from KNPA, 7,000 to 8,000 cases of missing disabled people occur every year, with the number keep increasing year over year. While the number stood at 7,724 in 2014, this figure increased to 8,881 in 2018. The number of missing disabled people not found after going missing has also increased dramatically from 6 in 2014 to 65 in 2018.

People with developmental disorders are more likely to get missing. Although guardians such as parents and teachers try their best to keep an eye on them at all times, missing incidents can happen in a split-second. Also, in the case of the patients whose mental development is below their physical growth level, their guardians cannot easily control their behavior.

The major problem is that compared to the people without disorder, the developmental disorder patients tend to lack the capability to avoid dangers in general. They might get in roads and railways without paying the appropriate attention, and are much more likely to be exposed to crimes such as kidnapping. If found early, they can return home safely; if not, they might suffer injuries, or, in the worst-case scenario, found deceased. Gum mi Kim, Head of Garam Psychological Counseling Center, said, “Since it is essential to locate the missing people in time to guarantee their safety, a GPS capable of tracing locations real time plays a huge role”.

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According to SK hynix and KNPA, the first six hours is the most important in finding a missing person safe and sound. The survival rate of missing people differs depending on the seasons, but it declines significantly after 6 hours on average. For this reason, the police’s response is focused on locating missing people as early as possible. This is emphasized when it comes to the socially disadvantaged, categorized as “code-zero group.” This includes the elderly with dementia and people with mental disorders, and when such people are reported gone missing, every police force in the region are mobilized for wide-spread searches.

In this regard, the role of Happy GPS has become critical as it has remarkably reduced the time for finding missing people. According to SK hynix and KNPA, the average time needed to locate missing people decreased from 12 hours to just 50 minutes after the introduction of Happy GPS, with the number of people needed for searches also declining since missing people’s locations can be quickly verified thanks to the reliable tracking device. This in turn frees up valuable police time and resources that could be spent to other cases in the region.

The Happy GPS device’s practical bracelet form is no coincidence. It was specifically designed to meet the objective of “locating missing people as soon as possible.” The elderly with dementia and developmental disorder patients often throw away their belongings and accessories when symptoms appear. That is why the GPS function on mobile phones becomes useless in missing people incidents; if the devices are designed in certain form which people can take off or remove easily, like a necklace, they might not be able to serve as a real time roaming detector solution. Therefore, by seeking out the opinions of experts from KNPA and numerous related agencies, SK hynix created the Happy GPS device as a bracelet that cannot be removed without the help of a guardian. It features only the absolutely necessary functions and an improved battery performance for long time usage, focusing on its core function – “real-time location tracking.” As a result, it provides a dependable aid for finding a missing person before it is too late.

Suk-hee Choi, section chief at KNPA, said, “Since the introduction of Happy GPS, we have been able to save lives of numerous people with the higher success rate and faster response time thanks to the device’s accurate tracking feature. I believe the value of this device is immeasurable. What was previously impossible due to budget restrictions is now possible thanks to our cooperation with SK hynix, with results both visible and inspiring. We hope more like-minded policies and efforts take root in the future to ensure a safer environment for the people who need it most.”

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SK hynix plans to provide 3,200 additional Happy GPS devices for individuals with dementia or developmental disabilities in 2020. The company also continues to reinforce the foundation for providing Happy GPS devices by strengthening its invaluable collaborations with KNPA and other leading agencies.

SK hynix is also carefully considering the expansion of its Happy GPS project target group. Since the company began the project without specifying any target group, it is exploring the idea of expanding the project to various groups that would benefit most from owning a Happy GPS tracker. In order to do this, SK hynix has opened up the possibilities for cooperation with leading organizations with a strong understanding of these specific groups.

Another important task is linking the project with other CSR projects. SK hynix is contemplating including neighbors in the welfare blind zone in the social safety system, by linking the project with other social contributors carried out by SK hynix such as “Silver Friend ,” a project providing AI speakers to help the elderly who lives alone.

In addition, the company is working to upgrade Happy GPS’s functionality and design. While the company first focused on improving its GPS-based location tracking function and battery sustainability, it now plans to add additional features such as waterproof function and improved durability to enhance the daily life convenience by including. The company also seeks to improve its design, making it look similar to the smart bands found today.

Ha commented, “With the Happy GPS project being an overwhelming success, the social interest for Happy GPS is increasing considerably. We will continue to expand the project by working even harder for the socially disadvantaged people who have often been disregarded within rapid social change, so that they can live a safer, happier life.”

The post “Happy GPS”: Protecting Lives by Preventing Missing Cases first appeared on SK hynix Newsroom.

This validation is certified by Underwriters Laboratories (UL), the first US safety standard certification organization, after an in-depth investigation to measure recycling rates by deducting a worksite’s non-recyclable waste weight from its total weight of waste generated annually. UL validates companies displaying excellent recycling rates, then categorizes them into three different grades to match their performance: Platinum (100%), Gold (95-99%), and Silver (90-94%). According to the data from 2018, SK hynix recorded waste recycling rates of 93% in Icheon, 94% in Cheongju, 96% in Wuxi, and 91% in Chongqing.

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Meanwhile, in October 2018, SK hynix announced its “2022 ECO Vision” with both medium and long-term goals to create social value through eco-friendly semiconductor manufacturing plants management. Accordingly, SK hynix plans to minimize waste emission and maximize resource recycling.

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The post SK hynix Became the First Korean Company to Obtain Zero Waste to Landfill Validation for All Production Sites first appeared on SK hynix Newsroom.

To recognize the efforts of DBL Implementation Group, SK hynix held its “Outstanding SV Creation Practices Sharing Festival”. Among 1,247 SV creating practices, each department presented its own outstanding practices during the festival. SK hynix Newsroom met with Technical Leader (TL) Young Sun Cho, who led the impressive case of “Elimination of Harmful Pollutants and Achievement of Mutual Growth via PKG Mold Equipment Improvement (or ‘the Case’)”, to learn more about how Cho was able to create SV, and what kinds of innovations Cho has brought about with this practice.

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Adopting “Zero-pollution Mold Cleaning Technology” in PKG Mold Equipment to Improve Field Employees’ Working Conditions

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As one of the part leaders of P&M Process & Equipment Technology Team at SK hynix, Cho is in charge of reforming and improving general equipment in the field to make them perfectly compatible with SK hynix’s processes; he is also in charge of developing new equipment when called upon. Since last year, his responsibilities extended to exploring potential SV creating cases as a member of DBL Implementation Group.

But what made him focus on improving PKG Mold equipment, with so much other equipment to choose from? In general, the equipment improvement mostly aims for better process efficiency. This case, however, began with Cho’s determination to resolve the difficulties of field workers who were dispatched from partner companies. Though the beginning may seem small, it eventually resulted in creating both EV and SV at the same time.

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“While only a very small amount, the sheet paper used in mold cleaning processes produces harmful pollutants. Workers have to wear cumbersome air purifying masks that hinder breathing. This motivated me to search for solutions to provide a better working environment for them.”

To solve this daily problem, Cho devised a new cleaning method. Instead of wiping off pollutants by inserting sheet paper manually, Cho’s newly invented method covers the mold equipment with a mold film to fundamentally prevent the contamination of molds. With Cho’s invention attached within the equipment, the upgraded PKG Mold Equipment automatically emits the used film and then covers the equipment with the new film between every compressing process.

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Eliminating the need to manually insert and remove sheet paper, field workers are now able to work in a safer and more pleasant working environment. The change from manual labor to an automatic processing also allows continuous operation of the equipment without stopping for the mold cleaning. Furthermore, unlike the sheet paper, the cleaning films do not produce environmentally harmful pollutants, and they are not classified as industrial wastes. As a result, the new invention reduced the cost for proper disposal of industrial wastes, i.e., the used sheet paper.

Process Efficiency Increased by 33% through Software Localization

While closely examining the cleaning process, Cho identified inefficiencies as well. He noticed that although the equipment holds three molds, only one or two were used and the rest was left idle.

“In the past, a mold was rarely replaced since the semiconductor manufacturing industry focused more on the mass production of a few major products. However, as the industry shifted to small-batch production of diverse products, it is now normal to change molds between each operation. Unfortunately, switching molds could take considerable time and efforts, and to solve this problem we used to install different types of molds in separated sections on a single equipment. But the idle mold issue remained unsolved, so I thought about replacing the existing software that only utilizes one mold type at once, with the upgraded multi-software that is capable of utilizing two types of molds simultaneously.”

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The aim was clear, but the procedure to realize it was a big challenge to overcome. Competitors had already tried and failed to implement the same idea in the past, with huge investment loss as a price. As a matter of fact, the proposal for software upgrade was rejected at first, as “it had a high risk of failing.” Partners also showed their disapproval.

“When dealing with the equipment used in the field, persuading workers to remove this equipment in order to make improvements is often the most challenging task, but this case was different. Since most workers were frustrated with the equipment’s limitations, they possessed the same desire for a much-needed upgrade. The real problem was how to decrease the risk of failing, since all partners from our equipment manufacturers to other partners were saying it was way too risky.”

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With numerous analysis, Cho relentlessly persuaded business partners that the software upgrade was a feasible task. Consequently, Cho and the partners succeeded in the joint development of the new software that supports multiple mold utilization. The software increased process efficiency by 33% and lessened the reliance on foreign software imports through localization. This project helped improve the partnering company’s technological prowess and expand its market influence, creating mutual growth.

SV of Approximately USD 10.1 Million was Created via DBL-inspired Equipment Upgrade

The enhanced equipment was tested at the end of 2018, and has been deployed in mass production process since early 2019. The ultimate goal is to transform the entire production line using the improved equipment within 2020. With proactive cooperation from the field, the replacement is being carried out smoothly. If this equipment is applied to all production lines, what would be the expected effect of that?

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Cho estimated that the EV and SV generated from the improvement were equal to USD 3.6 million and USD 10.1 million respectively. This means that a grand total DBL value of USD 13.7 million was created, a result of actively pursuing DBL system and leaving the outdated ways in the past. For this reason, the case is considered as a perfect example of how DBL practices in the field can go a long way in creating an enormous DBL value.

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Instead of simply handling the tasks they’re given, the people at SK hynix continue to try and discover new and better ways of working, with the aim of finding new methods of creating EV as well as SV. Cho said, “While people had solely pursued economic results (profit) in the past, members now feel it’s their duty to undergo tasks that inspire both EV and SV, even when simply suggesting an idea.”

Chang Yong Park, TL at Corporate Sustainability Management (CSM) said, “SK hynix plans to expand DBL system at the enterprise level in the future. By establishing operating programs at each corresponding DBL pursuing stages and developing standardized modules compatible with each internal organization, SK hynix plans to establish an environment where its members can easily access and commit themselves to forward-thinking DBL activities.”

The post DBL Philosophy in the Field – Introducing the Outstanding Practice of SV Creation first appeared on SK hynix Newsroom.