3rd Generation Management Shines Amid Complex Crises... Kim Dong-kwan and Jeong Ki-sun's 'Eco-Friendly Drive' Gains Recognition

Hanwha and Hyundai Heavy Industries Show Focus on Eco-Friendly Industry in Carbon Neutral Era
Strong Performance Amid Complex Crisis...Flexible Leadership of 3rd Generation Executives Yields Results

Kim Dong-kwan, Vice Chairman of Hanwha Solutions (left), and Jung Ki-sun, CEO of HD Hyundai and Korea Shipbuilding & Offshore Engineering. Photo by each company

[Asia Economy Reporter Jeong Dong-hoon] The third-generation business leaders in the corporate world have shown remarkable performance in the third quarter of this year. These young executives in their 30s and 40s have proven their capabilities through results by riding the wave of the eco-friendly industry despite the complex crisis of high exchange rates, high interest rates, and high inflation. Unlike the traditional reliance on chimney industries that have been the core of their groups, these third-generation leaders are the first to raise the banner of innovation to transform their businesses into sustainable management. Representative figures include Kim Dong-gwan, Vice Chairman of Hanwha Solutions, and Jung Ki-sun, CEO of HD Hyundai and Korea Shipbuilding & Offshore Engineering.

According to the industry on the 29th, Hanwha Solutions, led by Vice Chairman Kim Dong-gwan, recorded its highest-ever operating profit of 348.4 billion KRW and sales of 3.3657 trillion KRW in the third quarter of this year, driven by strong sales of solar modules since the integrated corporation was launched in January 2020. This is a passing grade as the first report card since Kim’s promotion. Compared to the same period last year, sales increased by 30.4%, and operating profit rose by 95.3%. Notably, operating profit set a new record for the second consecutive quarter following 277.7 billion KRW in the second quarter.

HD Hyundai, led by CEO Jung Ki-sun, also showed a turnaround amid the recession by posting operating profits in the trillion KRW range for two consecutive quarters. HD Hyundai, the holding company of Hyundai Heavy Industries Group, recorded operating profits in the 1 trillion KRW range for two consecutive quarters. On the 27th, HD Hyundai announced consolidated third-quarter sales of 17.2872 trillion KRW and operating profit of 1.0716 trillion KRW. Compared to the same period last year, sales increased by 137.5%, and operating profit surged by 255.2%.

Despite the global economic uncertainties caused by worldwide inflation, interest rate hikes in various countries, and the prolonged Russia-Ukraine war, the company recorded operating profits in the 1 trillion KRW range for the second consecutive quarter. In particular, all affiliates including the shipbuilding division, which turned profitable, Hyundai Oilbank, Hyundai Genuine, Hyundai Electric, Hyundai Global Service, and Hyundai Robotics achieved profitability.

Source=Hanwha Solutions

◆Solar New Business Blossoms with Results...Proof of Kim Dong-gwan’s Leadership= The common denominator between the two leaders is the eco-friendly drive. They do not settle for the group’s roots in defense and petrochemicals (Hanwha) or shipbuilding (Hyundai Heavy Industries) but show flexible yet strong focus on the global carbon neutrality trend.

Vice Chairman Kim Dong-gwan has proven his management skills by leading the solar new business early on and is now reaping results. Kim served as Executive Director at Hanwha Q CELLS from January to November 2015 and was promoted to Managing Director in December of the same year. He then rose to Vice President in 2019 and became President of Hanwha Solutions in September 2020.

Kim played a significant role in Hanwha Solutions’ Q CELLS division (solar business subsidiary) quickly capturing the U.S. and European markets. The expansion of the U.S. solar business, including securing production facilities in the U.S., and active eco-friendly energy projects in Europe were effective strategies based on early recognition of the potential in these regions and focused business capabilities.

By business segment, the renewable energy division recorded sales of 1.3316 trillion KRW, a 61% increase compared to the same period last year, and operating profit turned positive at 197.2 billion KRW. Although the renewable energy division had posted operating losses for six consecutive quarters until the first quarter due to rising raw material costs and logistics burdens, it achieved a slight profit turnaround in the second quarter and set a record high profit in the third quarter.

Globally, as carbon neutrality activities and energy security have become more important, solar module sales in Hanwha Solutions’ main markets such as the U.S. and Europe were so strong that supply shortages occurred. The company held the No. 1 market share for 16 consecutive quarters in the U.S. residential solar market and 11 consecutive quarters in the commercial solar market through the second quarter, and it is highly likely to maintain the top position in the third quarter this year as well.

Source=HD Hyundai

◆HD Hyundai Shines with LNG Ships and Expansion of Eco-friendly Chemical Materials Amid Energy Crisis = HD Hyundai, which showed a turnaround in performance, saw remarkable improvement in the shipbuilding division, which turned profitable thanks to the increased share of LNG (liquefied natural gas) carriers, rising exchange rates, and continuous cost-cutting efforts.

Korea Shipbuilding & Offshore Engineering announced third-quarter sales of 4.2644 trillion KRW and operating profit of 188.8 billion KRW. Despite a decrease in operating days due to summer vacations and a difficult external business environment including global inflation, the company succeeded in turning profitable compared to the previous quarter through improved ship portfolio, steady cost reduction, and process efficiency efforts. Compared to the same period last year, sales increased by 19.9% and operating profit by 33.2%.

Hyundai Oilbank, which had raised concerns about performance due to falling international oil prices and refining margins, showed strong results by leading with its eco-friendly chemical materials business. Hyundai Oilbank recorded sales of 10.2831 trillion KRW and operating profit of 702.2 billion KRW. Despite refining margin declines due to demand slowdown and inventory valuation losses caused by falling oil prices, operating profit increased by 305.6% compared to the same period last year. Hyundai Oilbank plans to strengthen its eco-friendly chemical materials business centered on the recently completed HPC plant and expand its eco-friendly portfolio by investing in the construction of a next-generation biodiesel plant scheduled for completion in the third quarter of next year.

CEO Jung was promoted to president in October last year and began full-scale management activities, and in March he took office as CEO of the holding company HD Hyundai and Korea Shipbuilding & Offshore Engineering. During this period, he led the shipbuilding and construction machinery divisions to strong performance by pursuing the vision of becoming a 'future pioneer' and strengthening autonomous navigation, eco-friendly ships and construction machinery, and R&D capabilities.

Hyundai Heavy Industries Group plans to invest a total of 7 trillion KRW in eco-friendly R&D over the next five years. Through this, it has unveiled a blueprint to establish a comprehensive system for hydrogen transportation, including eco-friendly ship equipment, carbon capture technology, and hydrogen and ammonia-powered ships in the shipbuilding business sector.

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