Hanjin Heavy Industries Accelerates Business Normalization Process

Appointment of Hong Mun-gi as New CEO

[Asia Economy Reporter Choi Dae-yeol] Hanjin Heavy Industries announced on the 3rd that it held an extraordinary general meeting of shareholders and appointed Hong Moon-gi, CEO of Dongbu Engineering (photo), as the new CEO. For inside directors, it appointed Yoo Sang-chul, CEO of EcoPrime PE, and Seong Gyeong-cheol, vice president and internal executive. With this, Hanjin Heavy Industries, which completed the merger and acquisition process with the Dongbu Construction consortium at the end of last month, has newly organized its board of directors to accelerate the normalization of management.

As the largest shareholder has decided to actively invest, it is expected to enhance its capabilities focusing on defense industry and national infrastructure construction projects. Hanjin Heavy Industries is a leading defense contractor in Korea with the highest number of warship construction records domestically, capable of 100% in-house design and construction of warships. It is particularly strong in various landing ships, transport ships, and high-speed patrol boats, including the Dokdo-class amphibious assault ship. Last month, it teamed up with Daewoo Shipbuilding & Marine Engineering to enter the bidding for the basic design of the Korean-type light aircraft carrier. It has also consecutively introduced ships holding domestic and international first records such as submarine support vessels, icebreakers, and LNG bunkering ships. With signs of recovery in the merchant ship market recently, it has decided to resume orders focusing on small and medium-sized LNG and LPG carriers, as well as petrochemical product carriers.

Its capabilities in national infrastructure construction such as airports and ports are also a strength. This year, it has secured construction contracts worth 1 trillion won so far. In the public construction market in the first half of this year, it ranked second in terms of order amount. The company expects to leverage this expertise and create synergy through collaboration with Dongbu Construction. Since Dongbu Construction and its affiliates are also engaged in the same construction industry, they intend to share Hanjin Heavy Industries’ construction know-how and technical skills to generate synergy.

They are also considering entering new business areas such as eco-friendly energy and offshore plants. Dongbu Construction has expressed confidence that it can achieve early normalization of Hanjin Heavy Industries’ management through crisis management capabilities and management know-how. CEO Hong said, "We will do our best to ensure the company has core competitiveness and grows into a sustainable enterprise for the future."

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