Chairman Kwon Oh-gap: "We Will Outpace Competitors with Eco-Friendly Technology"

[Asia Economy Reporter Choi Dae-yeol] Kwon Oh-gap, Chairman of Hyundai Heavy Industries Holdings (photo), said on the 24th, "Korea Shipbuilding & Offshore Engineering will make further efforts to secure ultra-competitive technologies that lead the market in the ‘carbon-neutral era’."

At the Korea Shipbuilding & Offshore Engineering shareholders' meeting held that day, Chairman Kwon stated that despite the ship order volume being the lowest since 2016 due to COVID-19 last year, the company achieved meaningful results. Korea Shipbuilding & Offshore Engineering is the intermediate holding company for the shipbuilding division of Hyundai Heavy Industries Group, with subsidiaries including Hyundai Heavy Industries, Hyundai Samho Heavy Industries, and Mipo Shipbuilding.

Chairman Kwon said, "The world’s first liquefied natural gas (LNG) powered container ship built by a subsidiary of Korea Shipbuilding & Offshore Engineering received high praise from the market," adding, "Our technological capabilities in electric propulsion, ammonia propulsion, and hydrogen carrier ships have also been recognized, presenting concrete solutions toward the carbon-zero era." He continued, "We are accelerating the advancement of smart ships integrating IT technologies such as artificial intelligence (AI) and the establishment of digital shipyards. Additionally, we are doing our best to finalize the acquisition by obtaining unconditional approvals from Singapore and China in the corporate merger review with Daewoo Shipbuilding & Marine Engineering."

He clearly stated the intention to further refine technology as it becomes more important due to environmental regulations related to ships. He said, "We will make greater efforts to secure ultra-competitive technologies that lead the market in the ‘carbon-neutral era’," and added, "We will promote a paradigm shift that places technology at the center of management." He emphasized, "As ESG (environment, social, governance) management takes root, eco-friendly technology is no longer optional but essential. We will use these market changes as an opportunity to widen the gap with competitors."

Specifically, while maintaining technological superiority in the LNG-powered ship sector where they already have strengths, they will focus on developing and commercializing independent technologies in zero-carbon fuel ship sectors such as electric, ammonia, and hydrogen. They also plan to advance smart ships that combine economic operation with eco-friendliness and safety by utilizing cutting-edge IT technologies.

Chairman Kwon also announced plans to strengthen systems that fairly evaluate abilities and performance, develop various programs for talent development, and secure key talents. Along with this, he pledged to establish an organizational culture of autonomy and responsibility to enhance creativity among members. For ESG management, the group appointed a Chief Sustainability Officer at the group level and created a dedicated team. They launched an ESG management advisory committee composed of the group CSO council and external ESG experts and decided to establish ESG committees on the boards of directors of each affiliate.

Referring to the 20th anniversary of the passing of Chung Ju-yung, Honorary Chairman of Hyundai Group and founder of the company, Chairman Kwon said, "The founder emphasized that ‘when starting any task, fill a perfect 100% with 90% certainty that it will succeed and 10% confidence that you can make it happen,’ highlighting that confidence and assurance are the most important in whatever you do."

Meanwhile, at the shareholders' meeting that day, four agenda items were passed, including the reappointment of Chairman Kwon as an inside director for a two-year term.

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