Daewoo E&C Transitions to Dual CEO System with Kim Hyung and Jeong Hang-gi... Accelerating Sale Process

Daewoo E&C CEO Jeong Hang-gi

Daewoo Construction CEO Kim Hyung

Daewoo E&C announced on the 7th that it held an extraordinary general meeting of shareholders and a board meeting, approving a partial reorganization plan of the entire company’s organizational structure following the establishment of a dual CEO system. Amid recent rumors of Daewoo E&C’s sale, it is expected that the sale process will accelerate further.

This organizational restructuring was carried out to separate the duties and organizations of CEO Kim Hyung, in charge of business, and CEO Jeong Hang-gi, in charge of management, following the establishment of the dual CEO system. It also aimed to strengthen strategic planning functions as well as the practice of ESG (Environmental, Social, and Governance) management, enhancing checks and balances.

CEO Kim will be responsible for the business divisions including civil engineering, residential construction, plants, and new businesses, as well as the Human Resources Management Support Division, Management Support Office, Global Marketing Office, Quality and Safety Office, and the Technology Research Institute.

CEO Jeong will oversee the Future Strategy Division, Financial Management Division, and Procurement Division. Additionally, the Audit Office and Compliance Support Office have been organized as jointly managed entities to function as independent bodies ensuring checks and balances.

This move is interpreted as a measure to allow CEO Kim to focus on business operations while CEO Jeong, a financial expert, handles the sale process.

The Compliance Team under the existing Audit Office has been renamed the ESG Team to keep pace with changes in the management environment, and the Legal Support Office, previously under the Future Strategy Division, has been newly established as an independent Compliance Support Office.

Furthermore, to discover future growth engines and innovate processes, the Future Strategy Planning Team under the Future Strategy Division has been expanded and reorganized into the Strategic Planning Office, which now includes the Strategic Planning Team, Management Innovation Team, and New Growth Strategy Team.

A Daewoo E&C official stated, "Through this organizational restructuring, we plan to maximize the advantages of the dual CEO system and establish a system and framework that can proactively respond to the increasingly uncertain external environment."

Meanwhile, Daewoo E&C, whose largest shareholder is KDB Investment (holding 50.75%), a restructuring subsidiary of the Korea Development Bank, has recently been subject to repeated sale rumors.

The Korea Development Bank attempted to sell Daewoo E&C in 2017 but failed due to issues with overseas business site insolvency. However, with recent improved performance raising the company’s value, there are now 2 to 3 potential buyers, increasing expectations for the sale process.

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