Kwon Oh-gap's Warning: "A Crisis of a Different Dimension is Coming... Prepare for the Worst-Case Scenario" (Comprehensive)

Hyundai Heavy Industries Group Executive Meeting
Review of Management Strategies for Responding to the Global Business Environment

[Asia Economy Reporter Oh Hyung-gil] "Future crises may be on a different level from the ones we have experienced so far. It is necessary to thoroughly prepare by reviewing and establishing countermeasures, including considering the worst-case scenarios for each company."

On the 20th, Kwon Oh-gap, Chairman of Hyundai Heavy Industries Group, held an emergency meeting of the group’s presidents and stated this, urging, "Each group affiliate must prepare thorough countermeasures considering the ‘worst-case scenario.’"

This presidents’ meeting was held for the first time in four months, with all representatives from 10 affiliates attending, including Jung Ki-sun, President of HD Hyundai, Ga Sam-hyun, Vice Chairman of Korea Shipbuilding & Offshore Engineering, and Han Young-seok, Vice Chairman of Hyundai Heavy Industries. At this meeting, executives reviewed management strategies to respond to the global business environment, including the lockdown in Shanghai, China, and the Russia-Ukraine situation.

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 plan established at the beginning of the year, and devised countermeasures to minimize external impacts.

They analyzed the impact of the recent sharp rise in raw material prices caused by rapid inflation on the shipbuilding business sector and prepared countermeasures. They also discussed response strategies for the construction machinery business regarding the contraction of the domestic market in China due to the Shanghai lockdown measures.

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

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

Chairman Kwon ordered, "If the presidents carry out the management plan with responsibility and conviction, a moment will come when the crisis turns into an opportunity. Please also explain and share the management situation in detail with the employees."

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