[Steel CEO Overcoming Crisis] Andong-il's Bold Move on 'Smart City'

Promoting New Digital Businesses Aligned with the Korean New Deal

Focused Research on Digitalization Ideas for Social Overhead Capital

Overcoming Management Crisis through Strengthening Corporate Structure Rather than Restructuring

[Asia Economy Reporter Park So-yeon] Andong-il, CEO of Hyundai Steel, announced that he plans to overcome the management crisis caused by the prolonged COVID-19 pandemic by promoting new businesses such as the digitalization of social overhead capital in line with the government’s 'Korean New Deal' initiative.

In a recent interview, CEO Ahn said, "We are planning to turn up the business plan in the third quarter," adding, "We are placing our hopes on the government's 'Digital New Deal'." He continued, "Among the 'Korean New Deal' projects, the Ministry of Trade, Industry and Energy is gathering ideas for the digitalization of social overhead capital, meaning that the construction industry is not just about building structures like buildings, roads, and ports, but integrating digital technology." He added, "We are also conducting focused research to come up with innovative ideas." In particular, CEO Ahn emphasized that Hyundai Steel will promote various projects related to the Green New Deal by engaging in discussions and R&D with the construction industry on smart buildings, smart cities, and smart grids.

Recently, the core steel industry has raised concerns as demand from major sectors such as automotive, shipbuilding, and construction has sharply declined both domestically and internationally. Hyundai Steel also recorded losses in the first quarter due to the impact of COVID-19. With sluggish demand from upstream industries like automotive and construction and delayed recovery of overseas subsidiaries in regions such as China, operating losses occurred in the first quarter following the fourth quarter of last year.

CEO Ahn stated, "Since we are not a company with a diverse portfolio, difficulties arise when upstream demand declines," adding, "In the case of Hyundai Motor Company, domestic sales were stable in the first quarter, but overseas plants were all shut down, which had an impact, and this effect will fully hit the steel sector in the second quarter." Regarding the timing of demand recovery, he said, "Overall overseas demand and demand from the automotive and shipbuilding industries must recover first," and added, "We are preparing for the 'worst-case scenario' including a resurgence of COVID-19 in the fourth quarter."

He also revealed that rather than passive solutions like restructuring, the company will overcome difficulties through active measures such as strengthening its corporate structure. CEO Ahn said, "Internally, rather than passive strategies like restructuring, we are striving to quickly turn up in the third quarter through supply-demand adjustment, cost reduction efforts, and structural improvements," adding, "If we maintain competitiveness, we can turn the crisis into an opportunity and increase our market share globally."

This content was produced with the assistance of AI translation services.