Chairman Kim Seung-yeon of Hanwha Marks 40th Anniversary of Inauguration... Asset Grows 288 Times with Bold Moves in Every Crisis

Discovering New Growth Engines through M&A Including Samsung's Big Deal in Chemical Business
'Loyalty Management' and Inclusive Leadership
Entry into Petrochemical Business via M&A Immediately After Inauguration
Expanding Future Territories from Solar Power and Hydrogen to Space

[Asia Economy Reporter Hwang Yoon-joo] "Gambler, M&A wizard, loyal management, humanist, leader of inclusion..."

These are the epithets used to describe Kim Seung-yeon, Chairman of Hanwha Group. But that's not all. There are many nicknames that reflect Chairman Kim's stature in the business world, such as a tenacious manager and a private diplomat. These titles have been attached to him one by one during the 40 years he has led Hanwha Group since the passing of founder Chairman Kim Jong-hee.

Chairman Kim will mark his 40th anniversary in office on the 1st of next month. He succeeded the management rights in July 1981 when his father, Chairman Kim Jong-hee, suddenly passed away. At that time, he was 29 years old.

According to Hanwha Group on the 30th, as of 2020, Hanwha Group's sales amounted to 65.44 trillion won. This is about 60 times the total sales of Korea Explosives Group (1.1079 trillion won) in 1981 when Chairman Kim took office. During the same period, Hanwha Group's assets surged 288 times from 754.8 billion won to 217 trillion won.

Chairman Kim played a major role in Hanwha Group's growth. One of the first actions he took after taking office was entering the petrochemical business. In 1981, Han Yang Chemical (now Hanwha Solutions Chemical Division) and Korea Dow Chemical were acquired at once, making defense industry and petrochemicals the two main pillars of the business. Despite the negative outlook on petrochemicals due to the second oil shock caused by the Iran-Iraq War in 1979, Chairman Kim judged it was not an industrial crisis and strongly expressed his intention to acquire. In this process, with a smart and bold strategy, he received a proposal from Dow in the U.S. for full payment of the acquisition price in installments. It was the moment the history of "Gambler Kim Seung-yeon" began. The acquired company actually turned a profit within a year.

The decisive turning point for Hanwha Group to become a major player in the business world was the acquisition of Jeong-A Group (Hanwha Hotels & Resorts). In September 1983, when the entire Jeong-A Group was included in the list of companies to be liquidated due to insolvency, Chairman Kim acquired six major companies at once in 1985. This propelled Hanwha Group from 11th place in the business world rankings in 1980 to 7th place within five years.

Hanwha Group regards the acquisitions of Hanwha Life, Hanwha Q CELLS, and the big deal with Samsung as important M&As. After the foreign exchange crisis, Hanwha Group restructured and reduced the number of affiliates from 37 to 17. Chairman Kim made finance a new growth engine and acquired Daehan Life Insurance. In 2012, he moved to acquire the German company Q CELLS. At the time, securities analysts opposed the deal, calling it "an unattractive transaction," but Chairman Kim thought differently. He emphasized, "The solar power business is a path that contributes not to the company's profits but to the nation and humanity," and proceeded with the acquisition. This was based on his judgment that the solar power market would soon enter a full-fledged growth phase. At the time of acquisition, Hanwha Q CELLS was operating at a loss with a factory utilization rate in the 20% range, but its sales scale grew to nearly 4 trillion won.

Chairman Kim Seung-yeon is visiting the construction site of the Bismayah New City in Iraq, led by Hanwha Construction, at the end of 2014, sharing a meal and conversation with employees at the base camp staff cafeteria.

The big chemical business deal with Samsung was a major issue not only for the group but also in the history of domestic M&A. Chairman Kim acquired four affiliates of Samsung Group's defense and chemical businesses for K-defense and K-energy businesses. At the time, it was evaluated as a private-led autonomous business restructuring. The companies acquired then?Hanwha Aerospace, Hanwha Defense, Hanwha Systems, Hanwha Total, and Hanwha General Chemical?have become the foundation for the core chemical business and the future aerospace industry.

At this time, Chairman Kim's nickname "loyal management" resurfaced. After the big deal with Samsung, the employees of the affiliates incorporated into Hanwha Group maintained their retirement age, salaries, welfare, and various working conditions. Additionally, stories such as Chairman Kim gifting luxury bags as rewards to outstanding Hanwha Life planners or personally selecting gifts with group executives at high-end clothing stores are well known. It is widely recognized in the business world that Hanwha Group employees have high loyalty.

Meanwhile, Chairman Kim plans to spend his 40th anniversary quietly without any special events. Considering COVID-19 and other factors, Hanwha has not prepared any group-level events or ceremonies.

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