Kwon Oh-gap, Chairman of Hyundai Heavy, "Responding Considering Worst-Case Scenarios Like Shanghai Lockdown and Ukraine Situation"

Hyundai Heavy Industries Group Executive Meeting
Review of Management Strategies for Global Business Environment Response

Kwon Oh-gap, Chairman of Hyundai Heavy Industries Group

[Asia Economy Reporter Oh Hyung-gil] Kwon Oh-gap, Chairman of Hyundai Heavy Industries Group, held a meeting with the group’s affiliate presidents on the 20th to review management strategies in response to the global business environment, including the lockdown in Shanghai, China, and the Russia-Ukraine situation.

The meeting was attended by 10 company representatives, including Kwon Oh-gap, Chairman of HD Hyundai; Jung Ki-sun, President; Ga Sam-hyun, Vice Chairman of Korea Shipbuilding & Offshore Engineering; Han Young-seok, Vice Chairman of Hyundai Heavy Industries; Lee Sang-gyun, President of Hyundai Heavy Industries; Shin Hyun-dae, President of Hyundai Mipo Dockyard; Kim Hyung-kwan, Vice President of Hyundai Samho Heavy Industries; Kang Dal-ho, Vice Chairman of Hyundai Oilbank; Joo Young-min, President of Hyundai Oilbank; Son Dong-yeon, Vice Chairman of Hyundai Genuine; Jo Young-chul, President of Hyundai Genuine; Oh Seung-hyun, Vice President of Hyundai Doosan Infracore; and Jo Seok, President of Hyundai Electric.

They examined the impact of rapidly changing business environment factors such as the resurgence of COVID-19 leading to the Shanghai lockdown, the Russia-Ukraine conflict, global interest rate hikes, and soaring raw material prices on the implementation of the management plans established earlier this year, and devised countermeasures to minimize external impacts.

They analyzed the effects of the recent sharp rise in raw material prices caused by rapid inflation on the shipbuilding sector and prepared countermeasures, as well as reviewed response strategies for the construction machinery business facing a contraction in the Chinese domestic market due to the Shanghai lockdown measures.

Regarding the energy business, they checked the management impact amid ongoing oil price instability caused by the Ukraine situation and discussed ways to improve the performance of the petrochemical business.

In particular, to prevent various safety accidents including major disasters, they shared safety management plans established at each business site and decided to immediately apply strengthened safety management policies tailored to the field conditions.

Chairman Kwon Oh-gap stated, "Future crises may be on a different level from those we have experienced so far, so each company must thoroughly prepare by considering even the worst-case scenarios and devising countermeasures," and urged, "If the presidents carry out management plans with responsibility and conviction, the crisis will soon become an opportunity, and they should also explain and share the management situation in detail with employees."

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