Key Corporate Management Themes of the Year 'Future' and 'Customer' Seen Through the Chairman and CEO's New Year's Address

[Asia Economy Reporters Kim Hyewon and Cha Minyoung] Major domestic companies have set 'future' and 'customer' as their management themes for this year. Despite unprecedented management crises caused by the spread of COVID-19, the heads of companies have issued orders to accelerate digital innovation in preparation for the post-COVID era through new business initiatives and to adapt to the emerging untact society. They also strongly expressed their commitment to Environmental, Social, and Governance (ESG) management, which has become a trend in the business community.

On the 2nd, the heads and CEOs of major groups such as Samsung, Hyundai Motor, SK, and LG delivered New Year's messages emphasizing that 2021 should be the first year to respond to changes in the management environment caused by the COVID-19 crisis and to prepare for the future. Unlike previous years, no offline kick-off ceremonies were held due to the COVID-19 situation.

Hyundai Motor Group Chairman Chung Euisun, delivering his first New Year's message after his promotion, declared this year as the first year to concretely realize the group's innovation goals such as 'customer, humanity, future, and sharing.' In his message, Chairman Chung said, "2021 must be a year of great transformation toward new growth engines," and added, "Despite the challenging management environment, the mission that all group employees must unwaveringly uphold is to realize humanity's dream of 'safe and free mobility and peaceful life' together."

LG Group Chairman Koo Kwangmo, known as a 'customer enthusiast,' urged this year to "understand customers in detail and complete their delight to turn them into LG fans." Chairman Koo sent a digital video message to about 250,000 LG employees worldwide, saying, "Today, we will take time to think together about how to elevate LG's customer value to the next level and what more we can add to our actions." He emphasized, "As people's lifestyles become more personalized and consumption patterns change faster, it has become more important to read the hidden hearts of customers. Now is the time to understand customers more precisely, find their inner desires, and turn them into reality to enhance customer delight."

Samsung Electronics held an online kick-off ceremony in the morning, presided over by Vice Chairman and CEO Kim Ki-nam, where they united with the spirit of "transforming into a creative company where 'challenge and innovation' breathe, leading the industry with innovative leadership and differentiated competitiveness." Samsung Electronics Vice Chairman Lee Jae-yong is expected to visit the Pyeongtaek plant in the afternoon, as he usually starts the new year with on-site management.

SK Group Chairman Chey Tae-won sent a New Year's greeting email to employees on the 1st, urging them to empathize with society and work together to solve problems with a "new entrepreneurial spirit."

The key messages conveyed by the heads and CEOs of major domestic groups in their New Year's speeches to their employees were ▲discovering opportunities amid crisis ▲securing leadership in future new businesses ▲enhancing customer value ▲accelerating digital transformation innovation ▲and ESG management.

Coexistence of Crisis and Opportunity... Overcoming COVID-19 and Moving Toward the Future

The heads and CEOs of major groups did not only talk about the management 'crisis' caused by COVID-19. They agreed that opportunities always coexist within crises. Each company showed an urgent determination to systematically nurture next-generation growth sectors and prepare for the post-COVID era while looking ahead to the next decade.

Shin Dong-bin, Chairman of Lotte Group, who led the closure and restructuring of about 30% of underperforming stores last year, expressed a solemn resolve in his New Year's message. Chairman Shin said, "We need a prepared attitude to respond immediately when the economy regains vitality and a proactive and voluntary stance to lead economic recovery," adding, "With strong execution, let's build a company where we want to work even five or ten years from now. Do not be intimidated by surrounding risks, but focus on creating synergy by combining the strengths and capabilities of each company."

Kwon Oh-gap, Chairman of Hyundai Heavy Industries Holdings, set this year's management goal as "overcoming crisis and preparing for the future," ordering three things: skill improvement, technology that reads the flow of change, and responsible management by subsidiaries. SK Innovation, approaching its 60th anniversary next year, through General Manager Kim Jun's New Year's message, stated, "To fundamentally escape the fatal survival threat caused by COVID-19, we have set a financial story centered on eco-friendly energy and materials," emphasizing, "We will create a 'New SK Innovation' through comprehensive and total transformation."

LS Group Chairman Koo Ja-yeol identified four core goals for this year: ▲cash generation to prepare for uncertainty and promote future-leading new businesses ▲visible results in future growth businesses such as renewable and eco-friendly energy ▲independent business capabilities of overseas subsidiaries ▲and accelerating operational system transformation through digital transformation activities. He added, "Returning to basics once again, each member must actively practice these social values to secure LS's future and become a company respected and loved by society."

Hanjin Group Chairman Cho Won-tae focused on the significance and necessity of the integration of Korean Air and Asiana Airlines, the biggest issue, and urged understanding and empathy from employees. Chairman Cho said, "The integration of the two companies is not simply about merging into one but is a destiny and historical mission given to the employees of both companies responsible for the Korean skies."

No Company Without Fandom... New Themes ESG and Accelerated Digital Transformation

In companies dealing with consumer goods, 'customer value' appears annually as a core management keyword. Among major group heads, Hyundai Motor and LG are particularly active in advocating customer value.

LG Group Chairman Koo Kwangmo concretizes his management philosophy on customer value practice through his annual New Year's messages. Last year, he urged focusing on customers' pain points as a starting point, and this year, he emphasized 'detailed understanding and empathy for customers' and 'persistence to complete customer delight' as practical measures to elevate customer value one step further, urging the formation of an LG-specific fandom.

Shinsegae Group Vice Chairman Chung Yong-jin also reiterated the importance of customers following last year. He said, "Our only indomitable target is the customer," urging, "Focus fanatically on changing customer demands to find new opportunities and boldly think about changing customers' lifestyles." Amorepacific Chairman Suh Kyung-bae emphasized, "Only customers' choices guarantee a company's future, so we must return to the original 'customer-centric' mindset and accurately understand and reflect customer changes."

Many companies have also emphasized ESG management, which has emerged as a new theme in the business community. POSCO Chairman Choi Jeong-woo, who succeeded in his reappointment, said, "A great company is one that does not ignore the problems faced by the era and society but makes solving them the core goal and value of corporate management," pledging to present a new model of social value creation while moving toward the '2050 Carbon Neutrality' goal.

With the untact (non-face-to-face) era accelerated by COVID-19, the importance of digital transformation has also increased. GS Group Chairman Huh Tae-soo, in his second year in office, stated, "We must devote ourselves to discovering new businesses through strengthening digital capabilities and eco-friendly management," revealing a management plan to accelerate digital transformation of existing core businesses and enhance future competitiveness through business portfolio restructuring. Vice Chairman Chung Yong-jin judged, "The online shift in the retail market has been accelerated by at least three years due to COVID-19," adding, "We need talent to lead digital transformation that connects online and offline based on new IT technologies and a flexible organizational culture for this purpose."

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