Chairman Jung Ki-sun of HD Hyundai: "Let Us Become 'Future Builders' Pioneering the Future of Humanity"

New Leadership at HD Hyundai: Determined to Overcome Crisis
"Challenging Business Environment, But We Will Seek New Growth Engines"
"Heavy Sense of Responsibility... Will Communicate with Employees Everywhere"

Jung Ki-sun, Chairman of HD Hyundai Group, emphasized in his inaugural address that "overcoming challenges is embedded in HD Hyundai's DNA," and called on everyone to unite as "Future Builders pioneering the future of humanity." This was his first message upon returning to owner management after more than 30 years. Chairman Jung stated, "Despite the complex crisis arising from the U.S.-China power struggle, economic recession, and oversupply from China, we will turn these crises into opportunities."

In an internal email sent to all employees on October 20, Chairman Jung said, "We have overcome countless moments of crisis to come this far, but today’s business environment is more severe than ever." He added, "HD Hyundai stands where it is today thanks to the dedication of all our employees who have endured hardships." He continued, "Since the groundbreaking of the Ulsan Shipyard in 1972, whenever we faced crises, we focused on 'what we could do right now' and eventually created 'what only we could do.' We will not forget this DNA and will rise to the challenge once again."

Jung Ki-sun, Chairman of HD Hyundai. Photo by Yonhap News

Chairman Jung offered a candid assessment of each business division while also providing clear direction. Regarding shipbuilding, he said, "This year, the global volume of ship orders has plummeted, and China’s market encroachment is spreading to all types of vessels." He noted, "Our mainstay, LNG carriers, dropped sharply from 93 vessels last year to just 37 this year." Nevertheless, he added, "Although our ship prices are more than 10% higher than China’s, we are persuading customers with new technologies and ship models that are over 10% more fuel efficient."

He further stated, "By transforming our shipyards through AI and digital technology (FOS, Future of Shipyard), we will narrow the cost competitiveness gap. We will also open new markets by participating in the MASGA (Make American Shipbuilding Great Again) initiative and acquiring overseas yards, leveraging geopolitical opportunities."

Regarding the construction equipment business, he said, "Difficulties persist due to U.S. tariffs and aggressive market entry by major competitors. Even dealers are struggling to sell due to cost pressures." However, he emphasized, "With the merger of HD Hyundai Construction Equipment and HD Hyundai Infracore, we are combining our assets to establish a global manufacturing framework (GMF), pursuing efficiency through the integration of support organizations and parts centers. Our next-generation models, equipped with the latest technologies like electronic hydraulics, are receiving positive feedback. Now, we must strengthen our sales networks and service capabilities to pioneer new markets such as India, Brazil, and Australia."

On the refining and petrochemical front, he said, "It is a tough time, as all four domestic refiners recorded losses in the first half of the year." He added, "For our refining business, we will secure margins even during downturns by developing eco-friendly products such as circular and bio-based products, as well as new businesses like lubricants and power generation." He continued, "In petrochemicals, we must optimize input materials and operating conditions to reduce costs and increase the proportion of high-value products such as soft thermoplastic olefins (Soft TPO). We will also actively consider direct ethane imports and the integration of petrochemical complexes."

HD Hyundai Oilbank factory overview. HD Hyundai Oilbank is currently in discussions with Lotte Chemical for the integration of naphtha cracking facilities (NCC) in the Daesan Industrial Complex, Seosan City, Chungnam Province. Photo by Asia Economy Database

Regarding the power equipment business, he said, "HD Hyundai Electric is enjoying a boom due to increased power consumption, and we must use this opportunity to strengthen our fundamentals. We need to accelerate investments for the future so that we remain resilient even if another downturn comes." He added, "Our power distribution business was less competitive compared to our previous power business, but with the completion of the new Cheongju plant and international certification for exports to North America, we have established a foundation for growth. The expansion of our Ulsan and Alabama plants, along with new growth businesses such as high-voltage direct current (HVDC) transmission and energy storage systems (ESS), will transform HD Hyundai’s structure going forward."

Chairman Jung also made clear his commitment to future strategic industries. He said, "In fields such as AI, autonomous navigation, fuel cells, battery packs, robotics, small modular reactors (SMR), offshore wind power, and solar energy, HD Hyundai must act with a sense of national responsibility. I will also take on this responsibility together with you."

He continued, "One of my roles is to fully pass on our DNA to future generations. Communication is most important for this. I promise to listen and communicate with employees anytime and anywhere." He added his intention to "hear voices from the field directly and work together to ensure employees have a satisfying work life."

Chairman Jung also said, "Honorary Chairman Kwon Oh-gap led us admirably through difficult times. I will inherit his dedication and leadership to achieve further development and growth for HD Hyundai." He concluded, "The safety of our employees is the company’s most important value. Please remember that your well-being and that of your families is the very foundation of the company."

He finished by saying, "Once again, I thank all employees for their efforts in overcoming difficulties. Let us unite as one and move forward as 'Future Builders pioneering the future of humanity.'"

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