[Asia Exclusive] Building Substance with 'Cold' Profitability-Selective Orders, Passionate Communication Between Ulsan and Bundang

'The Returning Firefighter' Turns Profit in First Quarter: The Secret Between Coolness and Passion...

Cho Seok, President of Hyundai Electric, is explaining the company's achievements this year and the management goals for 2021 in an interview with Asia Economy at Hyundai Electric's Bundang Office in Gyeonggi-do on the 3rd. Photo by Kim Hyunmin kimhyun81@

[Asia Economy Reporter Ki-min Lee] Jo Seok, president of Hyundai Electric, who earned the nickname "firefighter" after serving as Vice Minister of the Ministry of Knowledge Economy (now Ministry of Trade, Industry and Energy) and president of Korea Hydro & Nuclear Power, cited "profitability" and "communication" as the secrets behind turning the company profitable for three consecutive quarters within one year of his appointment.

President Jo recently assessed the business environment, stating, "As the power generation model shifts to distributed renewable energy generation, it is not easy for Hyundai Electric's main business sector, ultra-high voltage power equipment, to grow." The spread of COVID-19 added to the challenges. President Jo first focused on how to achieve profitability. He said, "This year, rather than pursuing external growth, we thoroughly focused on profitability-oriented selective orders, which proved effective." He explained, "Instead of reckless orders to maintain sales volume, we enhanced profitability by selecting high-quality projects that bring real benefits to the company, and efforts to produce higher quality products while charging appropriate prices have begun to bear fruit."

Since the transformer smart factory in Ulsan, which improves production efficiency, began full operation in January this year, the profitability of core products has improved dramatically. Large-scale orders have continued in the Middle East ultra-high voltage power equipment market, where the company had been struggling. In May this year, Hyundai Electric secured orders worth 35 billion KRW, including 23 billion KRW from the Saudi Electricity Company (SEC) and 12 billion KRW from Aramco.

Since President Jo's appointment, Hyundai Electric has also been steadily progressing with organizational reform efforts based on "communication" as a key weapon. He holds employee meetings every week, traveling between the Ulsan factory and the Bundang office to listen to voices from the field. President Jo's philosophy is that even employees in different work areas can find common ground and create compromises by openly discussing issues, leading to greater synergy. He emphasized, "Management is done by people. By freely proposing and immediately implementing small and large improvement ideas in each person's work, there has been a positive effect of fostering confidence and responsibility with the mindset of 'we can do it too.'"

His final request:

"Before the economy grows and achievements are measured, someone creates added value. One of those places is the company. Ultimately, companies are made up of people. Since it is work done by people and companies run by people, I hope they are viewed with warm eyes. I believe that is the way for all of us to prosper together."

◇Jo Seok, President of Hyundai Electric

▲Born 1957, Iksan, Jeonbuk ▲Jeonju High School ▲Bachelor’s in Diplomacy, Seoul National University ▲Master’s in Economics, University of Missouri, USA ▲Ph.D. in Economics, Kyung Hee University ▲25th Administrative Examination ▲Energy Policy Planning Officer, Ministry of Industry and Resources ▲Industrial Policy Officer, Ministry of Knowledge Economy ▲Head of Growth Engine Office, Ministry of Knowledge Economy ▲Vice Minister, Ministry of Knowledge Economy ▲President, Korea Hydro & Nuclear Power ▲Professor, Graduate School of International Studies, Kyung Hee University ▲Current President, Hyundai Electric

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