[Running Toward the Future of Business②] Swift August Appointments... Hanwha Completely Transforms Its Structure

Chairman Kim Seung-yeon Returns to Management
Injecting Tension into the Organization
Hanwha Impact Leading Structural Reform
Investing in Future Technologies like Bio
Space Business 'Space Hub'
President Kim Dong-gwan Takes Command

[Asia Economy Reporter Choi Dae-yeol] When Hanwha Group hastened its regular personnel appointments at the end of August, rumors circulated inside and outside the company that Chairman Kim Seung-yeon, who returned to management in February this year after a 7-year hiatus following the end of his employment restriction period, was tightening his shoelaces and instilling tension throughout the organization. Hanwha's personnel appointments were the fastest among major conglomerates.

The entity leading Hanwha's structural reform is Hanwha Impact. This company became a Hanwha affiliate through a big deal with Samsung in 2015, and in June this year, it purchased the remaining 24% stake held by Samsung. Completing the big deal after six years, the company also changed its name from Hanwha General Chemical to its current name. The name was derived from impact investing, which focuses on investing in areas that generate profits while positively influencing society.

Kim Hee-cheol, who laid the foundation for Hanwha's early solar power business, came on board as CEO. CEO Kim is regarded as a global strategist within Hanwha. Originally, this company was a holding company with subsidiaries engaged in petrochemical and solar power businesses, but it transformed into an investment holding company by recruiting affiliates and external personnel and reorganizing the organization for more specialized investment operations.

True to its identity as a professional impact investment company, it is notable that Hanwha Impact is focusing on future innovative technologies such as eco-friendly energy, next-generation mobility, bio, and IT. A Hanwha Impact official said, "Besides refining technology through research and development and developing products and services, investment projects that provide funding based on future growth potential and market expansion are also promising."

Chairman Kim Seung-yeon of Hanwha Group (left) and Edwin Feulner, Chairman of the Asia Studies Center at the Heritage Foundation, met in 2018 to discuss domestic and international affairs.

Many of the companies in which it acquires shares or invests are in relatively unfamiliar fields. It is known that the company had been interested in and monitoring American PSM and Dutch Thomassen Energy, which possess hydrogen co-firing technology, for one to two years before deciding to acquire them. Hydrogen co-firing is a technology that modifies gas turbines, which traditionally run on liquefied natural gas (LNG) or diesel, to use fuel mixed with hydrogen. Although hydrogen is considered a future eco-friendly fuel with zero carbon emissions, it is expected to take decades to establish the infrastructure for mass production, so this technology is anticipated to play a significant role in the intermediate stage.

Agricultural technology company Inari Agriculture and DNA-based data storage technology firm Catalog Technologies represent areas rarely seen in domestic M&A. Inari develops technology that uses artificial intelligence (AI) and gene-editing techniques to create seeds that reduce water and fertilizer usage by 40% while increasing yield. This is considered an innovative technology that could contribute to solving the global food crisis upon commercialization. Catalog, headquartered in Boston, USA, is developing data storage technology that increases storage density by a billion times compared to traditional tape methods while maintaining long-term data integrity. Its low power consumption is expected to help alleviate the power shortages faced by data centers worldwide.

Kim Dong-kwan, President of Hanwha Solutions, delivering the keynote speech at the energy session of the 2021 P4G Seoul Summit held last May. He leads new energy sectors such as hydrogen and solar power, as well as space business within the group.

Kim Dong-kwan, who was promoted to president last year and has served as CEO of Hanwha Solutions, a key affiliate, since this year, is focusing on the space business. He serves as an unpaid registered executive of Setrec Eye, the only satellite system development company in Korea, which Hanwha acquired earlier this year. Kim also leads the 'Space Hub,' a team composed mainly of field engineers from Hanwha Aerospace, Hanwha Systems, and other group affiliates related to the space business.

Additionally, Hanwha Solutions is expanding its new energy business areas worldwide by acquiring a French renewable energy developer and securing shares in a U.S. solar material company, comprehensively reorganizing its value chain. This is based on the judgment that the energy market paradigm is changing. At the 69th anniversary event in October, Chairman Kim Seung-yeon said, "A great whirlwind of transformation has once again been placed before us," adding, "To move toward a more advanced future, a change in thinking and behavior on a different level is necessary."

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