Jeong Gi-seon "Global Environmental Regulations Are an Opportunity for Han... Profitability Up with Selective Orders"

Press Conference Ahead of the US CES Opening

On the 4th (local time), at the HD Hyundai press conference held in Las Vegas, USA, CEO Jung Ki-sun is answering questions from the press. Photo by HD Hyundai

[Las Vegas, USA = Reporter Choi Seoyoon] Jung Ki-sun, CEO of HD Hyundai, stated, "The strengthening of global environmental regulations will present a greater opportunity for South Korea's shipbuilding industry," adding, "We will focus on improving 'profitability' through selective order intake."

On the 4th (local time), ahead of the opening of CES 2023, the world's largest electronics and IT exhibition held in Las Vegas, USA, Jung answered a question about why the order intake target for this year was set lower at a press conference.

Jung explained, "Since we exceeded our order intake targets in 2020 and 2021, this year we set a conservative order intake target to focus on profitability through selective orders." He continued, "The 2023 order intake target for the entire group is $15.74 billion (Hyundai Heavy Industries $9.44 billion, Hyundai Mipo Dockyard $3.7 billion, Hyundai Samho Heavy Industries $2.6 billion)." Last year's order intake was $24 billion.

Regarding the shipbuilding market outlook, he said, "Last year, orders for eco-friendly ships using LNG and methanol as fuel and LNG carriers driven by increased natural gas demand stood out," adding, "This year, while maintaining a similar trend, the decrease in container ship orders is expected to be offset by an increase in orders for tankers and others." He further stated, "Above all, with the strengthening of global environmental regulations, demand for eco-friendly ships is expected to continuously increase, which we anticipate will be a greater opportunity for South Korea's shipbuilding industry and our group's shipbuilding affiliates."

Regarding this year's CES activities, Jung said, "Many companies will awaken innovation in the mobility sector with advanced technologies," and added, "At this CES as well, we will closely observe global technology trends and seek close cooperation opportunities with the world's top companies to accelerate the achievement of our vision."

He also emphasized, "At last year's CES, which we participated in for the first time, we announced the group's direction to become a future builder creating future value through innovative technology beyond being the world's number one shipbuilder," and added, "This year, through our new vision, Ocean Transformation, we plan to present a concrete direction to realize the infinite possibilities of the sea for a sustainable future."

On the 4th (local time), an HD Hyundai meeting was held at the Mandalay Bay Hotel in Las Vegas, USA. (From left) Dohyung Kim, CEO of Abicus; Wansu Kim, Vice President of HD Hyundai; Kiseon Jeong, President of HD Hyundai; Seongjun Kim, Vice President of Korea Shipbuilding & Offshore Engineering; Gwangpil Jang, Executive Director of Korea Shipbuilding & Offshore Engineering. Photo by Seoyoon Choi

One of the core themes of this year's CES is sustainability. Jung said, "HD Hyundai has found the answer to overcoming future uncertainties and achieving sustainable growth in the 'sea,'" adding, "Based on the expertise and technological capabilities accumulated over the past half-century at sea, we plan to realize the infinite potential of the ocean." He further stated, "By establishing a hydrogen value chain that can maximize the potential value of the sea, we will transform the ocean into a field of eco-friendly energy."

Jung, who was promoted to CEO in October 2021, was asked about his reflections as a group leader and future plans. He replied, "The group is celebrating its 50th anniversary and entering a new 50 years, which is an important time. As CEO, I have spent much time contemplating what kind of HD Hyundai image we should present to employees and stakeholders," adding, "There is still much to be done, and regardless of circumstances, we will work with employees to create a dynamic company that can move one step ahead."

He also said, "Through unmanned technology, we will provide solutions that can operate in places humans cannot reach and during times when humans are not awake, introducing a new level of innovation in safety and efficiency at industrial sites."

Meanwhile, regarding the background of the acquisition of STX Heavy Industries, Kim Wansu, Vice President of HD Hyundai, said, "We decided to participate in the preliminary bidding as we judged that we could effectively respond to the increasing demand for ship engines," adding, "By integrating the engine technology possessed by Hyundai Heavy Industries, we expect to diversify the spectrum to include small and medium-sized engines and enhance competitiveness through synergy with the group's shipbuilding business."

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