Business World '3rd and 4th Generation Management' Gains Momentum... Hyundai, Hanwha, SK, GS, Hyosung, and More

Consolidating Succession Structure... Accelerating Management of New Businesses in Mobility, Aerospace, and Blockchain

Hyundai Heavy Industries Holdings CEO Jeong Gi-seon is seen introducing the group's future vision, 'Future Builder,' at the Hyundai Heavy Industries Group press conference held at 'CES 2022' in Las Vegas, USA, on January 5th (local time). (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] One of the key themes at the 2022 regular shareholder meetings of major listed companies in South Korea is seen as solidifying '3rd and 4th generation management.' Figures such as Jung Ki-sun, President of Hyundai, and Kim Dong-kwan, President of Hanwha, are leading new business ventures including autonomous marine mobility, hydrogen, solar power, and aerospace, drawing significant attention from the industry.

According to the industry on the 27th, starting with Samsung Electronics' shareholder meeting on the 16th, over a two-week period, 3rd and 4th generation executives of major groups were appointed as inside directors of their key affiliates. In Hyundai's case, Jung Ki-sun, President of Korea Shipbuilding & Offshore Engineering and eldest son of Jung Mong-joon, Chairman of the Asan Foundation, was appointed as an inside director at the shareholder meeting held on the 22nd. He was also appointed as CEO at the board meeting held that day. He is also scheduled to be appointed as an inside director at Hyundai Heavy Industries Holdings' shareholder meeting on the 28th. This marks his taking overall charge of group management nine years after joining management in 2013.

Kim Dong-kwan, President of Hanwha Solutions. (Photo by Hanwha Solutions)

Kim Dong-kwan, President of Hanwha Solutions and eldest son of Kim Seung-yeon, Chairman of Hanwha Group, is scheduled to be appointed as an inside director at the shareholder meeting of Hanwha Corporation on the 29th. Although the group does not operate a holding company system at the group level, Hanwha Corporation has a structure controlling affiliates such as Hanwha Life, Hanwha Construction, Hanwha Aerospace, Hanwha Solutions, and Hanwha Hotels & Resorts. In other words, if President Kim takes on the role of inside director, it means an expansion of control over the entire group. President Kim already holds a 4.44% stake (common shares) in Hanwha Corporation.

Choi Seong-hwan, Head of Business at SK Networks. (Photo by SK Networks)

At SK, Choi Sung-hwan, Chief Business Officer and eldest son of former SK Networks Chairman Choi Seon-won, is scheduled to be appointed as an inside director at the shareholder meeting on the 29th. Choi is the largest individual shareholder with a 1.89% stake. He has been increasing his shares while receiving management training under former Chairman Choi. Choi Sung-hwan is effectively filling the vacancy left by former Chairman Choi, who is currently on trial for embezzlement and breach of trust charges. The former chairman resigned in October last year.

Chairman Cho Hyun-joon of Hyosung Group. (Photo by Hyosung)

Hyosung also reappointed Chairman Cho Hyun-joon, eldest son of Honorary Chairman Cho Seok-rae, and Vice Chairman Cho Hyun-sang, the third son, as inside directors. Hyosung TNC announced the new appointment of Chairman Cho, and Hyosung Advanced Materials announced the new appointment of Vice Chairman Cho. Chairman Cho had been listed only as an inside director of the holding company Hyosung after his father, Honorary Chairman Cho, stepped down from active management.

In GS, Heo Se-hong, CEO of GS Caltex, also took on the role of chairman of the board. He succeeded former board chairman Heo Jin-soo, who stepped down from active management. As the eldest among GS Group's 4th generation executives, Heo Se-hong can now strengthen his presence in management alongside Heo Yun-hong, President of GS Construction, and Heo Seo-hong, Head of GS Future Business Team (Vice President).

Heo Se-hong, President and CEO of GS Caltex. (Photo by GS Caltex)

Notably, the 3rd and 4th generation executives are leading their groups' new business ventures. President Jung is said to have played a significant role in Hyundai Heavy Industries Group's decision to rename itself HD Hyundai at the shareholder meeting. He also influenced the group's recent selection of shipbuilding & offshore, energy, and machinery as its three core business sectors. There is a strong commitment to expanding the hydrogen business, with plans to build a 100-megawatt (MW) green hydrogen production plant by 2025 and develop the world's first 20,000 cubic meter-class hydrogen carrier ship.

President Kim of Hanwha is accelerating growth in the group's future growth businesses such as solar power and aerospace. Despite profitability challenges due to aggressive low-price competition from China in solar power, the business continues. He is regarded as the right person to accelerate responsible management and the implementation of future strategies in future business sectors including aerospace and defense.

Choi Sung-hwan of SK has led about ten early-stage investments in promising future sectors based on a global network and is nurturing the blockchain business as the company's new growth engine.

Chairman Cho of Hyosung is leading Hyosung TNC, the world's number one spandex company, while Vice Chairman Cho is leading Hyosung Advanced Materials, the world's number one tire cord company, driving the group's growth. Heo Se-hong of GS, as chairman of the board, will play a role in accelerating the group's new growth businesses such as mobility and hydrogen, as well as business structure reorganization.

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