Profile
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HD Hyundai Construction Equipment CEO & President
Choi Cheol-gon
- Choi Cheol-gon is President and CEO of HD Hyundai Construction Equipment. He is currently overseeing the merger of HD Hyundai Infracore to fundamentally strengthen the competitiveness of HD Hyundai Construction Equipment. He has set a goal to achieve KRW 15 trillion (US$10.8 billion) in annual sales by 2030, placing the company among global top-tier levels. He was born on April 17, 1960, in Changwon, South Gyeongsang Province. He graduated from Busan Mechanical Technical High School and earned his bachelor's degree in Business Administration from Korea National Open University. He also obtained both master's and doctoral degrees in Business Administration from Changwon National University. He started his career at Samsung Heavy Industries. After working at Volvo Construction Equipment Group and Doosan Infracore, he joined Hyundai Construction Equipment (now HD Hyundai Construction Equipment) as Vice President. In 2022, he was promoted to President upon appointment as CEO. Every week, he visits the Ulsan factory to inspect the site and actively communicates with employees. #HDHyundaiConstructionEquipment #ChoiCheolgon #HyundaiInfracore #Merger #GlobalExpansion #ConstructionMachinery #CEOLeadership #CorporateStrategy #UlsanFactory #SalesGoal
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HD Hyundai Construction Equipment CEO & President
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Dankook University Chairman of School Board
Chang Ho-sung
- Chang Ho-sung is the chairman of the board of Dankook University. He was born on March 28, 1955, in Seoul. His father is Jang Choong-sik, former chairman of the Dankook University Foundation, and his grandfather is Jang Hyung, an independence activist known by the pen name Beomjeong, who founded Dankook University. He graduated from Kyunggi High School in Seoul and earned his bachelor’s degree in electronic engineering from Sogang University. He later received both his master’s and doctoral degrees in electronic engineering from Oregon State University in the United States. After serving as a professor in the Department of Electrical and Electronic Engineering at Hanyang University, he moved to Dankook University. He served as Vice President for Planning and Vice President of the Cheonan Campus before becoming university president in 2008, a position he held for 11 years. In 2020, he was appointed chairman of the Dankook University Foundation and was reappointed in 2024. Though an engineer by profession, he has shown strong interest in sports, having served multiple times as head and deputy head of the Korean delegation to the Universiade. He also serves as chairman of the Korea University Sports Federation. He previously served as president of the Korean Council for University Education. He led the relocation of Dankook University’s Hannam-dong campus to the Jukjeon campus in Yongin. #DankookUniversity #ChangHoSung #highereducation #universityleadership #Koreaneducation #engineering #OregonStateUniversity #KoreanUniversiade #campusrelocation #BeomjeongJangHyung
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Dankook University Chairman of School Board
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Candidate of Minister of SMEs and Startups
Han Seong-sook
- Han Seong-sook (한성숙 in Korean) has been nominated as the first Minister of SMEs and Startups in the Lee Jae-myung administration. She was born on June 20, 1967, in Uijeongbu, Gyeonggi Province. Han graduated from Uijeongbu Girls' High School and earned her degree in English Language and Literature from Sookmyung Women’s University. She began her career as a reporter at the computer magazine Mincom, later serving as the head of public relations at Nanum Technology. In 1997, she joined the founding team of Empas. After moving to NHN, she played a leading role in transforming Naver into South Korea’s No. 1 internet company, serving as Head of Service Division 1 and Executive Director overseeing overall services. In 2017, she was appointed CEO of Naver and served in the role for five years. During her tenure, she was credited with leading what many call the company’s “golden era.” While leading Naver, Han paid special attention to initiatives supporting small business owners and SMEs, earning a reputation for her strong understanding of the startup and small business landscape. She is scheduled to face a confirmation hearing before the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee on July 15, 2025. After being nominated, she identified “digital transformation for small business owners and SMEs” as her top policy priority. If confirmed, Han will become the wealthiest minister in the civilian government era. #HanSeongSook #LeeJaeMyung #MinistryofSMEsandStartups #KoreaPolitics #DigitalTransformation #Naver #SMEPolicy #SmallBusinessSupport #Empas #WomenLeadership
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Candidate of Minister of SMEs and Startups
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Kakaobank CEO & President
Yun Ho-young
- Yun Ho-young is the CEO & President of Kakaobank. He is leading the company's full-fledged expansion into overseas markets, starting with Indonesia and Thailand, while also diversifying Kakaobank's platform services into financial investment and everyday lifestyle sectors. He was born on June 20, 1971, in Anyang, Gyeonggi Province. After graduating from Shinsung High School in Anyang, he earned a degree in Business Administration from Hanyang University. He began his career at Daehan Fire Insurance and later held key roles in business planning and management support at Ergo Daum Direct and Daum Communications, where he primarily oversaw internal operations. At Kakao, he served as Vice President of the Mobile Bank Task Force Team and was appointed Co-CEO of Korea Kakao in 2016. In 2017, with the founding of Kakaobank, he was named CEO and has since been reappointed five consecutive times. Recognized as an expert in both finance and information and communication technology (ICT), he played a central role in launching and growing Kakaobank. He is known for leading the organization through autonomous and innovative management. He has expressed a strong commitment to securing future competitiveness by evolving Kakaobank into an AI-optimized financial platform. \#Kakaobank #YunHoYoung #Kakao #digitalbanking #fintech #ICT #AIfinance #Indonesia #Thailand #platformstrategy #KoreanCEO
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Kakaobank CEO & President
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i-Scream Media Corporation. CEO
Heo Ju-hwan
- Heo Ju-hwan is the CEO of i-Scream Media Corporation, an edtech company. He was born on May 9, 1968. He graduated from Seoul National University of Education with a degree in elementary education. He began his career as an elementary school teacher, working at Yangdong Elementary School and Wooshin Elementary School, before joining Yahoo Korea in 2000. At Yahoo Korea, he served as Head of the Content & Community Division, then moved to Daum Communications, where he was Head of the Digital Content Division. He later worked at Kakao as Head of the UGC Division. In 2017, he joined i-Scream Media as Head of the Training Business Division and was appointed CEO in 2021. He led the development of "i-Scream S," the first digital education platform in Korea, which is now used in over 93% of elementary school classrooms nationwide. He is currently focused on expanding the company’s reach by strengthening its platform foundation. #HeoJuHwan #iScreamMedia #edtech #digitaleducation #elementaryeducation #K12learning #Kakao #YahooKorea #DaumCommunications #iScreamS
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i-Scream Media Corporation. CEO
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Webcash CEO & President
Kang Won-ju
- Kang Won-ju is the CEO of Webcash. He is focusing on transforming the company into a financial AI agent, leveraging its expertise in e-finance and B2B fintech technologies. He was born on March 8, 1968, in Busan. Kang graduated with a degree in accounting from Kyungsung University. He began his career at Dongnam Bank and later moved to Housing Bank, where he worked as a systems developer. In 2000, he joined Webcash as a founding member. After serving as CEO of Webcash InnoValue, he was appointed CEO of Webcash in 2020. Since the founding of Webcash, he has led the development of all the company’s products and worked extensively as a B2B financial solutions manager. He played a central role in developing million-selling products such as the Cash Management Service (CMS) and Kyungri Nara. Kang has also served as Vice Chairman of the Korea Fintech Industry Association and the Korea Software Industry Association. #KangWonju #Webcash #Fintech #B2Bfinance #AIagent #CMS #KyungriNara #KoreaFintech #SoftwareIndustry #DigitalBanking
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Webcash CEO & President
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Access Bio, inc. CEO
Choi Young-ho
- Choi Young-ho is the CEO of Access Bio. He aims to transform the company from a diagnostic kit specialist into a comprehensive healthcare enterprise. He was born on January 8, 1964. Choi earned a degree in Agricultural Chemistry from Korea University and a master’s degree in Biotechnology from KAIST (Korea Advanced Institute of Science and Technology). He began his career at the CJ CheilJedang Central Research Institute, later joining Princeton BioMeditech (PBM) in the United States, where he eventually became head of research. In 2002, he founded Access Bio in the U.S. He also established a subsidiary, Wells Bio, and a private company, Medisensor, becoming chairman and CEO of both. In 2019, he sold his stake and management rights in Access Bio to PharmGen Science (formerly Wooridul Pharmaceutical) for KRW 30 billion (US$ 21.6 million), continuing to lead the company as a professional executive. Founded in the U.S. by a Korean entrepreneur, Access Bio became the first U.S.-based biotech firm to be listed on KOSDAQ. With over 30 years of research experience in diagnostic kits, Choi led the company to become the global leader in malaria diagnostics. #AccessBio #ChoiYoungho #diagnostickits #healthcare #biotech #KOSDAQ #malariadiagnostics #KAIST #PharmGenScience #WellsBio
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Access Bio, inc. CEO
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Doosan Fuel Cell CEO & President
Lee Doo-soon
- Lee Doo-soon is the President and CEO of Doosan Fuel Cell. He was born on February 8, 1972. Lee graduated from the Department of Mechanical Engineering at Seoul National University and earned a Master’s degree in engineering from the same university. He later completed an MBA at the Johnson Graduate School of Management at Cornell University in the United States. He began his career at Hyundai Motor Company. He went on to work at A.T. Kearney and Monitor Group before joining Doosan. He served as Executive Director of Tri-C (Strategy), and later moved to Doosan Infracore as Executive Director of Global Marketing. In 2016, he was appointed CEO of Doosan Mobility Innovation (DMI), where he led the development of hydrogen fuel cells for drones. He became Chief Operating Officer (COO) of Doosan Fuel Cell in 2024, and was later promoted to President and CEO. He also serves as the CEO of HyAxiom, Doosan Fuel Cell’s U.S. subsidiary. In addition, Lee is Chairman of the Korea Hydrogen Fuel Cell Industry Association. He is committed to contributing to the growth of the hydrogen economy by commercializing SOFC (Solid Oxide Fuel Cell) systems in South Korea. #LeeDooSoon #DoosanFuelCell #HyAxiom #hydrogen #fuelcell #SOFC #SouthKorea #CEOprofile #hydrogeneconomy #energytransition
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Doosan Fuel Cell CEO & President
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Taesung Co., Ltd. CEO
Kim Jong-hak
- Kim Jong-hak is the CEO of Taesung. He was born on December 19, 1963. He graduated from Cheonan Technical High School. He accumulated 13 years of experience primarily in the field of development at companies such as Iljin Precision and Sungwoo Precision. In 2000, he founded Taesung Engineering (now Taesung) and grew it into a mid-sized KOSDAQ-listed company with a market capitalization of approximately KRW 800 billion (US$ 576 million), holding the top domestic market share in PCB (printed circuit board) automation equipment. He is an engineer with both technological innovation and market development capabilities. He is driving future growth through technological diversification, including the establishment of new business divisions for camera modules and secondary batteries. #KimJonghak #Taesung #PCB #automation #KOSDAQ #camera_module #secondary_battery #technology_innovation #Korean_CEO #market_leader
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Taesung Co., Ltd. CEO
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Democratic Party of Korea Acting Party Leader and Floor Leader
Kim Byung-kee
- Kim Byung-kee is the acting leader and floor leader of the Democratic Party of Korea. He is focusing his efforts on legislative support to ensure the successful reform agenda of the Lee Jae-myung administration. He is also interested in restoring political cooperation through bipartisan dialogue. Kim was born on July 10, 1961, in Sacheon, South Gyeongsang Province. He graduated from Jungdong High School in Seoul and earned his degree in Public Ethics from Kyung Hee University. In 1987, he began his career at the Agency for National Security Planning, the predecessor of the National Intelligence Service. He served in several key posts including Director of Human Resources and retired in 2013. In 2016, he entered politics after being recruited by then-Democratic Party leader Moon Jae-in. He ran in the general election that year as the party’s candidate in Dongjak-gu Gap, Seoul, and won a seat in the 20th National Assembly. He was re-elected in both the 21st and 22nd general elections, becoming a three-term lawmaker. In 2022, Democratic Party leader Lee Jae-myung appointed him as Senior Deputy Secretary General. In 2024, he served as secretary of the party’s General Election Nomination Management Committee, contributing to the party’s victory in the 22nd general election. In June 2025, he was elected floor leader of the Democratic Party. #KimByungkee #DemocraticParty #KoreaPolitics #LeeJaemyung #floorleader #SouthKorea #NationalAssembly #2025election #intelligencecareer #bipartisanpolitics
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Democratic Party of Korea Acting Party Leader and Floor Leader
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Haesung DS co., ltd. Vice Chairman & Chairman of the Board
Dan U-yeong
- Dan U-yeong is the Vice Chairman of Haesung DS. He was born on June 1, 1979, in Seoul, as the eldest son among two sons and one daughter of Haesung Group Chairman Dan Jae-wan and Kim Young-hae. He graduated with a degree in economics from Johns Hopkins University in the United States. Dan began his career as a consultant at Samil PwC. He later joined Hankuk Paper, the flagship company of Haesung Group, where his father serves as chairman. There, he held roles including Director of Sales, Head of Strategic Planning, and Executive Vice President. In 2017, he moved to Haesung DS and was appointed President. In 2019, he was promoted to Vice Chairman in charge of operations. He went on to become Vice Chairman of Keyang Electric Machinery, Vice Chairman of Hankuk Paper, Vice Chairman of Haesung DS, and Vice Chairman of Haesung Industrial. He also serves as Chairman of the Board at Korea Package and Haesung DS. In 2011, while serving as Senior Managing Director at Hankuk Paper, he launched the copy paper brand “milk,” which went on to achieve the top market share in Korea. Dan is currently in a competitive dynamic over management succession of the group with his younger brother, Dan U-jun, President of Haesung Industrial. #HaesungGroup #DanUyeong #succession #HankukPaper #HaesungDS #KeyangElectric #KoreaPackage #Koreanbusiness #milkbrand #corporateleadership
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Haesung DS co., ltd. Vice Chairman & Chairman of the Board
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CEO of NCSoft
Park Byung-moo
- Park Byung-moo serves as co-CEO of NCSoft alongside founder and fellow co-CEO Kim Taek-jin. He is in charge of corporate restructuring and new business development, leading efforts to enhance operational efficiency through structural reforms and the implementation of an effective decision-making system. Park was born in Seoul in 1961. He graduated from Daeil High School and earned a law degree from Seoul National University. He passed the 24th Korean bar exam as the youngest successful applicant that year. Park began his career at Kim & Chang, where he specialized in mergers and acquisitions. He later served as CEO of Planners Entertainment in 2000 and held key positions including Korea Representative of Newbridge Capital (now TPG Asia Fund), CEO of Hanaro Telecom, co-CEO of Bogo Fund, and CEO of VIG Partners. In 2024, NCSoft appointed him co-CEO, recognizing him as the right person to lead internal transformation after the company struggled with poor performance in 2023. Park is seeking new growth drivers through mergers and acquisitions, backed by strong financial resources. Known for his cool-headed analysis and bold decision-making, he has earned the nickname “Midas’ hand.” #ParkByungMoo #NCSoft #coCEO #corporateleadership #M&A #SouthKorea #businessstrategy #lawbackground #techindustry #executiveprofile
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CEO of NCSoft
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CEO of Onconic Therapeutics
John Kim
- John Kim (Korean name: Kim Jung-hoon) is the CEO of Onconic Therapeutics. He is focusing on expanding into the global market with Jaqbo, a treatment for gastroesophageal reflux disease. He is also accelerating the research and development of another core pipeline drug, Nesuparib. Kim was born on November 18, 1967. He graduated from Simon Fraser University in Canada and earned both his master's and doctoral degrees in clinical pharmacy from the University of British Columbia. Since 1997, he has worked as a researcher at Biogen in the United States and Boehringer Ingelheim in Germany. He later joined LG Life Sciences as Head of Clinical Development, and then moved to Hanmi Pharmaceutical as Director of Global Clinical Development. He also served as Head of Business Development for the Asia-Pacific region at Mundipharma. In 2015, he was appointed CEO of SeoulCRO, a clinical trial-focused affiliate of CHA Biotech, and also lectured as a professor at CHA University and the College of Pharmacy at Sungkyunkwan University. In 2020, he became CEO of Onconic Therapeutics. Kim is a clinical development expert who has worked across the full spectrum of new drug development, including drug discovery, domestic and international clinical trials, and global business development. He has led the research and development of Jaqbo, a treatment for gastroesophageal reflux disease. #OnconicTherapeutics #KimJungHoon #Jaqbo #gastroesophagealreflux #biotech #clinicaltrials #newdrugdevelopment #Nesuparib #globalpharma #CEO
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CEO of Onconic Therapeutics
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CEO of NH Nonghyup Insurance
Song Chun-soo
- Song Chun-soo is the President and CEO of NH Nonghyup Insurance. He is focused on maximizing profitability based on his deep understanding of the insurance industry. Song was born in 1965 in Hapcheon, South Gyeongsang Province. He graduated from Masan Jungang High School and earned a degree in philosophy from Yonsei University. In 1990, he joined the National Agricultural Cooperative Federation (NACF), and went on to serve as Head of Marketing Strategy and Head of Corporate Sales at NH Nonghyup Insurance, later becoming Executive Vice President in charge of Customer Support. After stepping away from management in 2023, when he concluded his term as Executive Vice President of Customer Support, he returned to the helm of the company upon being nominated as CEO in January 2025. Since joining NACF, he has built over two decades of experience solely in the insurance sector, earning a reputation as an “insurance expert.” #SongChunsoo #NHNonghyupInsurance #NACF #insuranceexpert #Koreaninsuranceindustry #executiveprofile #SouthKorea #profitstrategy #financialleadership #YonseiUniversity
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CEO of NH Nonghyup Insurance
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CEO & Vice Chair of Samyang Foods
Kim Jung-soo
- Kim Jung-soo is the Vice Chair and CEO of Samyang Foods. She entered the company’s management after marrying Chun In-jang, the former Chairman of Samyang Foods and a second-generation member of the founding family. She has played a leading role in globalizing K-food, using the brand power of “Buldak Bokkeum Myeon,” a representative product of “K-ramen.” She was born on March 26, 1964, in Seoul. Kim graduated from Seoul Arts High School and Ewha Womans University with a degree in Social Work. After her marriage, she spent time as a homemaker. However, when Samyang Foods went bankrupt during the Asian Financial Crisis, she joined the company to support her husband, then-Chairman Chun In-jang. In 2020, Kim and her husband were convicted of embezzling company funds and stepped down from the management. Just seven months later, she received special approval for reemployment from the Ministry of Justice and returned to management. In 2023, she was reinstated through a Liberation Day special pardon. Kim has demonstrated strong performance in design and marketing. #SamyangFoods #KimJungsoo #Kfood #BuldakRamen #globalmarketing #Kramen #ChunInjang #IMFcrisis #corporateembezzlement #Koreanbusinesswoman
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CEO & Vice Chair of Samyang Foods
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CEO of Polaris Office
Ji Jun-gyeong
- Ji Jun-gyeong is the CEO of Polaris Office, where he is focusing on integrating artificial intelligence across all affiliates through what he calls a "vertical AI strategy." He was born on September 4, 1980. Ji earned a degree in computer science from Semyung University and completed an MBA program at Yonsei University's Graduate School of Business. He began his professional career at IA (I.A.) and went on to serve as Director of Management at MGenPlus, Director in charge of public disclosures and IR at Cellumed, and Director of Management at Foxbrain. After serving as Executive Vice President in charge of strategic planning at IA, he became CEO of IA’s subsidiary, IA Networks. In 2021, when Polaris Office was spun off from IA as an independent entity, Ji was appointed CEO. He became a professional manager at the age of 40. Ji enjoys strong trust from the company's owner, Chairman Cho Sung-woo, and currently serves as a registered board director at all four listed affiliates of Polaris Office. #PolarisOffice #JiJungyeong #verticalAI #AIstrategy #KoreanCEO #techstartup #IAgroup #businessleadership #AIintegration #executiveprofile
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CEO of Polaris Office
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CEO and Founder of APR
Kim Byung-hoon
- Kim Byung-hoon ("김병훈" in Korean) is the CEO of APR, a South Korean beauty and wellness company. He is focusing his efforts on expanding APR's beauty device production capacity while aggressively pursuing new overseas markets. Kim was born on November 5, 1988, in Seoul. He studied business administration at Yonsei University in 2007. While attending Yonsei, he launched a virtual fitting service called “Epida('이피다' in Korean)” and a dating matchmaking app named “Gilhanasai('길하나사이' in Korean).” In 2014, he founded a cosmetics company named InnoVentures, which was later renamed APR. He is a young entrepreneur who started his business at the age of 25 and has since grown it into a company with revenue in the KRW 500 billion (US$ 360 million) range. Known for his ‘workaholic’ tendencies, Kim is the kind of person who always follows through on his commitments and never backs down from what he sets out to do. #APR #KimByungHoon #SouthKorea #beautytech #startupfounder #virtualfitting #entrepreneurship #workaholic #cosmeticsindustry #globalexpansion
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CEO and Founder of APR
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CEO & Vice Chairman of Ahngook Pharmaceutical
Auh Jin
- Auh Jin ("어진" in Korean) is Vice Chairman and CEO of Ahngook Pharmaceutical, sharing the leadership with co-CEO Park In-cheol. He is focused on enhancing the company’s drug development capabilities. Born on March 30, 1964, Auh Jin is the eldest son among two sons and three daughters of former Honorary Chairman Auh Jun-seon and Im Young-gyun. He graduated from Kyungseong High School in Seoul and earned a degree in economics from Korea University. He later completed an MBA program at the University of Notre Dame in the United States. Auh began his career at Daishin Securities, then moved to Ahngook Pharmaceutical, the company founded by his father. There, he held roles including head of planning and director of general affairs before becoming CEO in 1998. In 2022, he stepped down from management after being indicted for charges involving rebates and illegal clinical trials. He later returned to the company as Vice Chairman and inside director, and in 2024, he was reinstated as CEO, taking charge of new business ventures. As a second-generation executive at Ahngook Pharmaceutical, he has worked at the company for more than 30 years, gaining extensive experience in the pharmaceutical and biotech industries. Auh prefers focusing on internal operations rather than external activities and is committed to discovering new growth drivers and diversifying the company’s business portfolio. He served a prison sentence for charges related to illegal clinical trials and offering rebates and was released in October 2024. This has raised ongoing concerns about “owner risk” for the company. #AhngookPharmaceutical #AuhJin #KoreanPharmaceuticalIndustry #biotech #drugdevelopment #CEO #rebatelawsuit #illegaltrials #pharmaexecutive #ownerleadership
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CEO & Vice Chairman of Ahngook Pharmaceutical
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CEO of Tovis
Kim Yong-beom
- Kim Yong-beom is the CEO of Tovis. He was born on September 24, 1962. He graduated from the Department of Electronic Engineering at the University of Seoul. He began his career as a researcher at Daewoo Electronics and later served as a lead researcher in the development division and director of the video equipment business division at Hyunwoo MacPlus. In 1998, he founded Tovis. In 2006, he acquired Neodys. He has grown Tovis into the world's No. 1 company in the casino gaming monitor segment. Since 2020, he has been restructuring the business to expand into automotive displays. In response to demands for improved governance due to sluggish stock performance, he has consistently pursued shareholder-friendly policies such as buying back and retiring company shares. #KimYongbeom #Tovis #casino #gamingmonitor #automotivedisplay #electronics #KOSDAQ #shareholderpolicy #Neodys #Koreanentrepreneur
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CEO of Tovis
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Member of the National Assembly
Park Jee-hye
- Park Jee-hye is a member of the National Assembly. She entered the National Assembly as the No. 1 recruited talent of the Democratic Party of Korea during the 22nd general election. She was born on October 31, 1978, in Yeoncheon, Gyeonggi Province. Park double-majored in Naval Architecture and Ocean Engineering and Business Administration at Seoul National University. She completed the master’s program in Environmental Planning at Seoul National University's Graduate School of Environmental Studies, and later earned a Master’s degree in Environmental Management and Policy from Lund University in Sweden. She also holds both a Master of Laws (J.D. equivalent) and a Doctor of Laws from Seoul National University School of Law. She worked as a senior researcher at Eco Frontier and as a CSR manager at SK Telecom. After passing the 6th bar exam, she served as a full-time lawyer at the Green Law Center, focusing on corporate social responsibility and environmental law. She also served as a board member of the nonprofit Climate Solutions and as co-representative of the nonprofit Plan 1.5. In the 2024 22nd general election, she ran as a candidate of the Democratic Party of Korea and was elected to represent the Uijeongbu A district. She has served on the Trade, Industry, Energy, SMEs and Startups Committee, the Special Committee on Budget and Accounts, and the Special Committee on the Climate Crisis. Within just one year, she introduced 40 bills as a lead sponsor. Park is an expert in climate and environmental issues. She is committed to serving as a catalyst to turn public interest in climate challenges into effective policy. #ParkJeehye #KoreaPolitics #DemocraticParty #NationalAssembly #ClimatePolicy #EnvironmentalLaw #CSR #GreenLaw #Uijeongbu #2024Election
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Member of the National Assembly
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CEO & President of Hitejinro and Hitejinro Holdings
Kim In-gyu
- Kim In-gyu is the CEO and President of Hitejinro as well as the CEO and President of Hitejinro Holdings. Following the retirement of Hitejinro Chairman Park Mun-deok from the front lines of management, Kim is now effectively leading the company. He was born on November 16, 1962, in Seoul. Kim graduated from Paichai High School in Seoul, earned a degree in mathematics from Yonsei University, and completed an MBA program at Yonsei University's Graduate School of Business. He joined Hite Brewery in 1989 and worked his way up through key positions, including Head of Sales and Executive Vice President. In 2011, after the merger of Hite Brewery and Jinro, he was appointed CEO and President of Hitejinro in charge of overall sales operations. In 2017, he was also appointed CEO and President of Hitejinro Holdings, the group's holding company. Kim is a loyal “Hite man” who has accumulated over 30 years of experience across personnel management, planning, marketing, and sales—virtually every part of the business. He is actively promoting the globalization of "Jinro" with a focus on expanding into Southeast Asian markets. #Hitejinro #KimInGyu #ParkMundeok #Jinro #KoreanLiquor #SojuExports #SoutheastAsiaMarket #YonseiMBA #KoreanBusiness #LeadershipTransition
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CEO & President of Hitejinro and Hitejinro Holdings
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Chairman of Korea Zinc
Choi Yun-birm
- Choi Yun-birm ("최윤범" in Korean) is the chairman of Korea Zinc. He is making all-out efforts to defend against an attempted takeover of management rights by a coalition formed by MBK Partners and Youngpoong. He was born on March 17, 1975, the second son among two sons and one daughter of Choi Chang-gul, honorary chairman of Korea Zinc, and Yoo Jung-geun, former president of the Korean Red Cross. He majored in mathematics and English literature at Amherst College in the United States, and earned a Juris Doctor degree from Columbia Law School. After working as a lawyer in New York, he joined Korea Zinc as director of the management support division at the Onsan Smelter. He began his career with the company at its local subsidiary in Peru for mining development and primarily worked at overseas subsidiaries, including a zinc smelter in Australia. He rose through the ranks to become co-CEO in 2019 and was appointed chairman in December 2022. As Korea Zinc holds the top position in the global non-ferrous metal smelting industry, he is driving future growth under the "Troika Drive" strategy, which focuses on three sectors: secondary battery materials, renewable energy, and resource recycling. #KoreaZinc #ChoiYunbirm #nonferrous #MBKPartners #Youngpoong #secondarybattery #renewableenergy #mining #smelting #troikadrive
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Chairman of Korea Zinc
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CEO & President of Hana Card
Sung Young-su
- Sung Young-su is the President and CEO of Hana Card. He is currently focusing on strengthening the corporate card segment, which has been showing growth, as well as the overseas card payment segment, represented by the brand "Travelog." He was born on June 7, 1965. After graduating from Jinju Dongmyung High School, he earned a degree in public administration from Korea University. He began his career at Commercial Bank of Korea (now Woori Bank), and later joined Hana Bank, where he served in various roles including corporate finance specialist, Namsan branch manager, head of the foreign exchange business division, head of the Gyeonggi business division, and head of the foreign exchange business group. In 2022, he was promoted to Vice President and Head of the Corporate and Investment Banking (CIB) Group at Hana Bank. He subsequently served as Head of the Corporate Group and Head of the Corporate Digital Division. He concurrently held roles as Head of the Group CIB Division at Hana Financial Group and Head of the Investment Banking Group at Hana Securities, before being appointed President and CEO of Hana Card in January 2025. He is recognized as an expert in corporate finance and foreign exchange. #HanaCard #SungYoungsu #corporatefinance #foreignexchange #creditcardbusiness #Travelog #CIB #HanaFinancialGroup #executiveprofile #KoreaBankingIndustry
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CEO & President of Hana Card
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CEO & President of SK Chemicals
Ahn Jae-hyun
- Ahn Jae-hyun ("안재현" in Korean) is the President and CEO of SK Chemicals. He leads SK Chemicals jointly with CEO Kim Cheol. He is accelerating SK Chemicals’ transition toward “green chemicals.” He was born on February 2, 1966. He graduated from Yeouido High School in Seoul and studied Applied Statistics at Yonsei University. He later earned an MBA from the Wharton School at the University of Pennsylvania in the United States. He began his career at Daewoo Group, where he headed the New York office of Daewoo Securities for four years until the firm was sold off during the IMF financial crisis. He later joined SK Group, where he served as project leader at the SK Restructuring Headquarters. In 2004, he was appointed CEO of SK D&D. He held key leadership roles in SK E&C (now SK Ecoplant), including Head of Global Marketing, and in SK Gas as Head of Management Support. He went on to serve as CEO of Global Biz, overseeing SK E&C’s overseas business. In 2019, he was appointed President and CEO of SK E&C and was reappointed to the position. In 2022, he became CEO of SK Discovery, and in 2023, he was appointed President and CEO of SK Chemicals. He is known for his bold personality and decisiveness. He is friendly and approachable with junior staff, even offering cigarettes in casual conversation. #SKChemicals #AhnJaehyun #greenchemicals #SKgroup #leadership #WhartonMBA #corporatereform #SKDiscovery #SKDND #SKecoplant
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CEO & President of SK Chemicals
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CEO of KG Inicis
Lee Sun-jae
- Lee Sun-jae (known as Jason Lee, "이선재" in Korean) is the CEO of KG Inicis. He is tightening his grip on KG Inicis’ push into the offline payments market, which is worth KRW 1,000 trillion (US$ 719.4 billion), as the company maintains its top position in the online payment gateway (PG) industry. He was born on October 3, 1973. He graduated from the Department of Electronic Engineering at Hongik University. He began his career in business development at GeoMC, a company known for its MC Square device, and later worked as the business development manager for Europe, the Middle East, and Africa (EMEA) at SK WiderThan UK, a mobile solution development subsidiary of SK Group. He also served as director of business development for the EMEA and North American regions at Insprit Co., Ltd., a mobile network solutions company. In 2010, he joined KG Inicis and led the global business division, overseeing the entire payment gateway (PG) business, including international operations. After serving as Chief Operating Officer (COO), he was appointed CEO and President of KG Inicis in March 2023. In 2024, he was recognized for effectively normalizing the company in a short period through appropriate risk management during the TMON incident. #KGInicis #LeeSunjae #paymentgateway #offlinepayments #fintech #TMON #riskmanagement #PGbusiness #KGecommerce #KoreanCEOs
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CEO of KG Inicis
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CEO & Founder of GI Inovation
Jang Myung-ho
- Jang Myung-ho is the CEO of GI Innovation, jointly leading the company with co-CEO Hong Jun-ho. He was born on June 3, 1968. He studied biochemistry at Hanyang University, where he also earned a master’s degree in the same field. He then obtained a Ph.D. in immunology from the Graduate School of Osaka University in Japan. Jang served as a professor for eight years at the Immunology Frontier Research Center of Osaka University Medical School, a globally recognized institution in the field of immunology, becoming the first Korean to do so. After returning to South Korea, he worked as a senior researcher at the Institute for Basic Science (IBS). He also served as a scientific advisor at Genexine and as Chief Scientific Officer (CSO) at Progen. In 2017, he founded GI Innovation. He initially served as CSO until 2021 and returned as CEO in April 2025. Motivated by a belief in preventing “medical poverty,” he established a company focused on developing immuno-oncology treatments. He is now concentrating on improving the company’s performance through licensing-out achievements. #JangMyungHo #GIInnovation #immunology #biotechstartup #OsakaUniversity #immunotherapy #IBS #KoreanScientist #biopharma #oncology
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CEO & Founder of GI Inovation
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Ceo & Vice Chairman of HS Hyosung
Cho Hyun-sang
- Cho Hyun-sang ("조현상" in Korean) is Vice Chairman and CEO of HS Hyosung. He also serves as an inside director of HS Hyosung Advanced Materials and HS Hyosung Information Systems. He was born on November 26, 1971, as the third son of former Hyosung Chairman Cho Suck-rae. He attended Gyeonggi Elementary School and Cheongun Middle School, graduated from Kyungbock High School, and then moved to the United States, where he earned a degree in economics from Brown University. He began his career at Bain & Company. After joining Hyosung, he worked in the restructuring TFT (Task Force Team) and management innovation team. He later joined Japan's NTT Communications, where he led wired and wireless strategy projects and took part in establishing the Korean branch. Cho then returned to Hyosung’s strategy division and served as head of the Industrial Materials PG (Performance Group) and CMO of the Chemical PG. After being promoted to president, he led the strategy division. When Hyosung was split into separate entities, he became a group-wide president. Following the division of Hyosung and HS Hyosung into a holding company structure, he was appointed CEO of HS Hyosung. He actively engages in international activities as a self-proclaimed civilian diplomat, representing Korean business leaders. He is leading the transformation of HS Hyosung’s business structure into fields such as artificial intelligence, secondary batteries, and semiconductor materials. He is known for being meticulous and detail-oriented. #ChoHyunsang #HSHyosung #Hyosung #semiconductors #AI #secondarybatteries #NTT #BrownUniversity #businessleadership #restructuring
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Ceo & Vice Chairman of HS Hyosung
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CEO & President of SK Biopharmaceuticals
Lee Dong-hoon
- Lee Dong-hoon is the President and CEO of SK Biopharmaceuticals. He also serves as CEO of its subsidiaries, SK Life Science and SK Life Science Labs. He is committed to expanding sales of the company’s novel epilepsy treatment, Cenobamate, while actively pursuing the discovery of new drug candidates. Lee was born on August 12, 1968. He studied Business Administration at Seoul National University and completed his MBA at the Fisher College of Business, Ohio State University, in the United States. Beginning his career as a certified public accountant, Lee led the investment advisory division at KPMG Samjong before entering the pharmaceutical industry as Head of Business Development at Dong-A Pharmaceutical. He later joined Dong-A Socio Holdings, where he played a key role in transitioning the company into a holding company structure and was appointed Executive Vice President and CEO in 2013. He also served as Executive Vice President in charge of global business at Dong-A ST. In 2019, Lee joined SK Group as Head of the Investment Center, overseeing investments and mergers and acquisitions in the biopharmaceutical sector. He was appointed President of SK Biopharmaceuticals in 2022. He was involved in establishing a joint venture with U.S.-based Roivant, as well as in investments in cell and gene therapy CDMO companies Yposkesi and CBM. With his background as an investment expert, Lee has brought a dual advantage to the pharmaceutical and biotech industries. He is also focusing on expanding SK Biopharmaceuticals’ digital healthcare business. #LeeDonghoon #SKBiopharmaceuticals #Cenobamate #SKLifeScience #biotechleadership #CDMO #Roivant #Yposkesi #digitalhealthcare #biopharmainvestment
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CEO & President of SK Biopharmaceuticals
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CEO of GNC Energy
Ahn Byung-chul
- Ahn Byung-chul ("안병철" in Korean) is the CEO of GNC Energy. He is focusing on building an eco-friendly energy supply chain from the perspective of carbon neutrality investment. He was born on April 5, 1958, in Dangjin, South Chungcheong Province. He graduated from Korea Maritime and Ocean University with a degree in Marine Engineering. He worked at Hyundai Merchant Marine for eight years. Finding the monotonous and closed work environment unsuitable for him, he boldly left the large corporation and founded GNC Energy, then known as Korea Technical Service. Recognizing the growth potential of the emergency power generator market during the construction boom, he worked tirelessly in the field to secure market competitiveness, successfully growing the company into a generator manufacturer with sales reaching KRW 200 billion (US$ 139.1 million). He is known for his decisiveness and strong sense of social responsibility. #GNCenergy #AhnByungchul #greenenergy #carbonneutrality #KRW200billion #emergencypower #SouthKorea #CEOprofile #marineengineering #HyundaiMerchantMarine
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CEO of GNC Energy
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CEO & Vice president of Lotte Wellfood
Yi Chang-yeop
- Yi Chang-yeop (also known as Paul Yi, "이창엽" in Korean) is the Executive Vice President and CEO of Lotte Wellfood. He is focusing on expanding Lotte Wellfood's overseas business, particularly in markets like India. He was born on May 30, 1967. He graduated from the University of Texas at Austin with a degree in accounting and earned an MBA from Columbia Business School in the United States. Yi began his career as an auditor at the accounting firm Arthur Andersen. He later served as the head of Hershey Korea and as the head of the marketing division at Haitai Confectionery & Foods. In 2005, he was appointed CEO of Nongshim Kellogg, and from 2007, he led Coca-Cola Korea as its CEO for nearly 14 years. He then moved to LG Household & Health Care, where he served as Vice President and COO of its subsidiary, The Avon Company. In 2022, he joined Lotte Confectionery as Executive Vice President and CEO, and he also serves as Chairman of the Board. He is regarded as an expert in global business. #LotteWellfood #YiChangyeop #KoreanCEO #globalstrategy #FMCG #confectionery #ColumbiaMBA #CocaColaKorea #LotteGroup #internationalbusiness
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CEO & Vice president of Lotte Wellfood
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CEO & Chairman of Korea Exchange
Jeong Eun-bo
- Jeong Eun-bo is the CEO and Chairman of the Korea Exchange. He is committed to restoring trust in South Korea’s capital markets and resolving the persistent issue of undervaluation of domestic companies, known as the "Korea Discount." He was born on August 18, 1961, in Cheongsong, North Gyeongsang Province. Jeong graduated from Daeil High School in Seoul and earned a bachelor’s degree in Business Administration from Seoul National University. He later obtained a master’s degree in Business Administration from the same university and earned a Ph.D. in Economics from Ohio State University in the United States. He began his public service career after passing the 28th Higher Civil Service Examination, starting work at the Ministry of Government Administration. He served as Director-General for International Finance Policy at the Ministry of Strategy and Finance, Director General of the Financial Policy Bureau at the Financial Services Commission (FSC), and Secretary-General of the FSC. He also worked as a policy advisor in the first economic division of the 18th Presidential Transition Committee under President Park Geun-hye and served as Assistant Minister for Planning and Coordination at the Ministry of Strategy and Finance during her administration. Jeong went on to become Vice Chairman of the Financial Services Commission and Chairman of the Securities and Futures Commission. He also served as Governor of the Financial Supervisory Service and represented South Korea as the chief negotiator in the Special Measures Agreement on Defense Cost-Sharing with the United States at the Ministry of Foreign Affairs. Known for emphasizing principles, Jeong is strict in his work but also attentive to the well-being of his staff. #JeongEunbo #KoreaExchange #KRX #KoreaDiscount #capitalmarket #financialregulator #FSC #FSS #ParkGeunhye #economicpolicy #publicsectorcareer
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CEO & Chairman of Korea Exchange
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CEO of QRT
Kim Young-boo
- Kim Young-boo is the CEO of QRT. He was born on January 15, 1953, in Seoul. He graduated from Sudo Electric Technical High School and earned his degree in Applied Electronics from Kwangwoon University. He began his career at Control Data and later worked at Daeduck Electronics and Samsung Electronics before joining Hyundai Electronics Industries. At Hyundai, he served in various leadership roles, including Director for Quality Assurance and Production Management, and Director of Quality FA at the Icheon Production Headquarters. After Hyundai Electronics Industries was renamed Hynix Semiconductor, Kim became Head of the Flash Business Unit as Managing Director, and later served as Executive Vice President in charge of Quality Assurance for R&D and Manufacturing. In January 2009, he acquired QRT Semiconductor (now QRT), which was spun off from Hynix Semiconductor. As the only domestic company specializing in semiconductor component reliability analysis, QRT has been expanding its business scope from service to equipment development and manufacturing to diversify its revenue streams. Kim has a strong passion for talent. Around 40% of the company’s production costs are invested in wages, offering top-level compensation in the industry. #QRT #KimYoungboo #semiconductor #Hynix #HyundaiElectronics #reliabilityanalysis #electronicsindustry #talentinvestment #KoreanCEOs #equipmentdevelopment
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CEO of QRT
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CEO of Hanwha Vision
Kim Ki-chul
- Kim Ki-chul ("김기철" in Korean) is the President and CEO of Hanwha Vision. He was born on April 2, 1970. He graduated from the Department of Economics at Chungnam National University and earned his MBA from the Kelley School of Business at Indiana University Bloomington in the United States. He joined Hanwha Group in 1995 and built his career in the planning office and the management diagnosis team. In 2015, he moved to Hanwha Techwin (now Hanwha Vision), where he served as head of the management planning team. He later held roles as Head of the Americas at Hanwha Techwin, Head of Sales and Marketing, and Head of Strategic Planning, before being appointed President and CEO in May 2025. He also concurrently serves as CEO of the subsidiary Hanwha Semitec. He has played a central role in establishing Hanwha Group’s strategy for becoming a top-tier global company, conducting management diagnostics across finance, manufacturing, and international operations. He is now focused on expanding the business into semiconductor equipment by creating synergy through a merger with Hanwha Industrial Solutions, based on AI-powered video security solutions. He is recognized as a strategist who has spent 30 years with Hanwha. #Hanwha #HanwhaVision #KimKiChul #CEO #KoreaBusiness #semiconductor #AIsecurity #MBAGraduate #HanwhaSemitec #leadership
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CEO of Hanwha Vision
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CEO of Viva Republica
Lee Seung-gun
- Lee Seung-gun is the CEO of Viva Republica. He is working to secure future growth engines for Toss by expanding the business both offline and overseas. He is also pushing for Viva Republica to go public on the U.S. stock market through an IPO. Lee was born on January 30, 1982, in Seoul. He graduated from Yeongdong High School and the School of Dentistry at Seoul National University. After working as a dentist at Samsung Medical Center, he founded Viva Republica. Following eight failed startup attempts, he gained attention in the business world after launching Toss, which featured a simple money transfer service. He has led Viva Republica into the black by steering stable growth in affiliates such as Toss Securities and Toss Bank. He is considered a pioneer in the Korean fintech industry. Lee is known for his adventurous spirit and meticulous attention to even the smallest aspects of the services his company offers. #LeeSeunggun #VivaRepublica #Toss #fintech #IPO #startup #Korea #dentistturnedfounder #TossBank #TossSecurities
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CEO of Viva Republica
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CEO of Maum.AI
Yoo Tae-joon
- Yoo Tae-joon is the CEO of Maum.AI. He is leading the development of three major foundation models aimed at realizing artificial general intelligence (AGI) across conversational AI, robotics, and autonomous driving. He was born on August 11, 1965, in Incheon. Yoo graduated from Seoul National University with a degree in aesthetics. After obtaining his certified public accountant (CPA) license, he joined Samil PwC in 1993. He served as a partner and executive director at the firm before being appointed CEO of MindsLab (now Maum.AI) in February 2014. He also served as vice president of the Artificial Intelligence Industry Association. Yoo faces the challenge of achieving economies of scale early on to become a dominant force in the AI market. #MaumAI #YooTaejoon #AIleadership #AGI #foundationmodel #KoreaAI #conversationalAI #robotics #autonomousdriving #techstartup
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CEO of Maum.AI
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The President of the Republic of Korea
Lee Jae-myung
- Lee Jae-myung ("이재명" in Korean) is the 21st President of the Republic of Korea. He was elected president in the early presidential election held on June 3, following the impeachment of former President Yoon Suk-yeol. His top priorities are ending the internal unrest and overcoming the economic crisis. Born on December 22, 1964, in Andong, North Gyeongsang Province, he was the fifth of seven children. He passed qualification exams for both middle and high school, then graduated from the Department of Law at Chung-Ang University. After passing the 28th bar exam, he worked as a human rights lawyer and entered politics through his involvement in a campaign to establish Seongnam City Medical Center. He joined the Uri Party and ran for mayor of Seongnam but lost. He later served as a senior deputy chief of staff to presidential candidate Chung Dong-young, and although he was strategically nominated to run in Bundang A District in Seongnam during the general election, he was unsuccessful. He ran again in the 5th local elections, won the mayoral seat in Seongnam, and was re-elected for a second term. In the 7th local elections, he ran as the Democratic Party's candidate for governor of Gyeonggi Province and won. In the 2022 Democratic Party presidential primary, he defeated former party leader Lee Nak-yon to become the nominee but lost the presidential race to Yoon Suk-yeol, the candidate of the People Power Party. He was later elected in a by-election for the Gyeyang B District in Incheon and became party leader. After winning a seat in the April 2024 general elections, he was re-elected as leader of the Democratic Party. In April 2025, he stepped down from the party leadership to run in the 21st presidential election and was elected President of the Republic of Korea on June 4 of the same year. #LeeJaeMyung #SouthKoreaPresident #KoreanPolitics #DemocraticParty #PresidentialElection #YoonSukYeol #SeongnamMayor #GyeonggiGovernor #Election2025 #KoreanHistory
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The President of the Republic of Korea
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CEO & President of Yujin Robot
Park Seong-ju
- Park Seong-ju is the President and CEO of Yujin Robot. He is leading the company’s expansion into overseas markets by positioning it as an end-to-end solution provider in the fields of autonomous driving solutions and smart factories. Born on March 2, 1963, Park studied electrical engineering at Hanyang University and earned a master’s degree in control and communication from Oklahoma State University in the United States. He began his career on the motor controller development team at Daewoo Heavy Industries. He later worked at Motorola Korea before joining Yujin Robot in 2000, following a connection with Shin Kyung-chul, the honorary chairman of the company. Park held several key roles at Yujin Robot, including Director of Technical Support, Vice President of Technical Support, Head of the Research Institute, and Chief Technology Officer (CTO), before being appointed President and CEO in 2021. He has transformed the company from a simple vacuum robot seller into a global robotics solution provider. #YujinRobot #ParkSeongju #robotics #smartfactory #autonomousdriving #KoreanCEO #roboticsindustry #startupleadership #globalexpansion #roboticsinnovation
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CEO & President of Yujin Robot
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CEO & Chairman of KCC Glass
Chung Mong-ik
- Chung Mong-ik ("정몽익" in Korean) is the co-CEO and Chairman of KCC Glass. He is targeting the global market with a factory in Batang, Indonesia, built with an investment of approximately KRW 300 billion (US\$ 208.6 million). He became the largest shareholder of KCC Glass after merging with Korea Auto Glass and acquiring shares of KCC Glass from his older brother, Lee Mong-jin, Chairman of KCC. Born on January 28, 1962, in Seoul, he is the second son of Lee Sang-young, Honorary Chairman of KCC. After graduating from Yongsan High School in Seoul, he studied business administration at Korea University and majored in Management Information Systems (MIS) at Syracuse University in the United States. He also earned a master’s degree in International Finance from the George Washington University Graduate School. He began his career at Keumkang, the predecessor of KCC, and held positions such as Head of the Management Division, Head of the LA Office, and Executive Vice President before being appointed CEO in 2006. He was promoted to Vice Chairman in 2019. In 2020, he became Chairman of KCC Glass. He currently leads KCC Glass with President Byun Jong-oh, serving as co-CEO. KCC Glass was established through a spin-off from KCC’s glass and interior business units, including flooring, artificial marble, and HomeCC Interior. #KCCGlass #ChungMongik #IndonesiaFactory #GlobalExpansion #CorporateLeadership #KoreaAutoGlass #SpinOff #InteriorMaterials #SyracuseUniversity #GeorgeWashingtonUniversity
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CEO & Chairman of KCC Glass
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President of Korea Gas Corporation
Choi Yeon-hye
- Choi Yeon-Hye("최연혜" in Korean) is the President of Korea Gas Corporation (KOGAS). She is currently focused on improving the company’s financial soundness, including resolving the overdue payment issue that surpassed KRW 14 trillion (US\$ 9.7 billion) in the first quarter of 2025. She was born on April 2, 1956, in Yeongdong, North Chungcheong Province. Choi graduated from Daejeon Girls' High School and studied German Language and Literature at Seoul National University, where she also earned a master's degree in the same field. She later moved to Germany and received both her master's and doctoral degrees in Business Administration from the University of Mannheim. She served as an invited research fellow at the Korea Institute for Industrial Economics and Trade (KIET) and was a professor at the Korea National Railroad College. She also chaired the Performance Evaluation Committee at the former Korea National Railroad, the predecessor to KORAIL. Additionally, she worked as an advisor in the Second Economic Division of the Presidential Transition Committee for President Roh Moo-hyun. Choi held various leadership positions in the railway sector, including Chair of the Fare and Rate Policy Deliberation Committee and Deputy Director of the Korea National Railroad. She later served as Vice President of KORAIL and eventually became the President of Korea National Railroad College. She ran as a candidate for the Saenuri Party in Daejeon during the 19th general election but was not elected. After Park Geun-hye became president, Choi was appointed President of Korea Railroad Corporation (KORAIL). She returned to politics as a proportional representative for the Saenuri Party in the 20th National Assembly, where she served on the Trade, Industry, Energy, SMEs and Startups Committee as well as the Science, ICT, Broadcasting, and Communications Committee. During the 20th presidential election, she led the Special Committee on Nuclear Phase-Out Policy for Yoon Suk-yeol’s campaign. After Yoon was elected, she was appointed President of Korea Gas Corporation in 2022. Choi made history as the first woman to head both Korea Railroad Corporation and Korea Gas Corporation. During her time as President of KORAIL, she took a firm stance against railway union strikes, earning her the nickname “Iron Lady.” Known for her meticulous nature, she is recognized for closely examining even the smallest details. #ChoiYeonHye #KoreaGasCorporation #KOGAS #KORAIL #IronLady #YoonSukYeol #SouthKoreaPolitics #EnergyPolicy #PublicEnterprises #Leadership
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President of Korea Gas Corporation
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CEO and President of Naver Cloud
Kim Yu-won
- Kim Yu-won ("김유원" in Korean) is the President and CEO of Naver Cloud. He is accelerating efforts to secure leadership in the cloud and AI industries through strategies such as the advancement of HyperCLOVA X, expansion of market share in both private and public sectors in Korea, and global market entry. He was born on October 24, 1971. He graduated from the Department of Computational Statistics at Seoul National University and went on to earn both his master's and doctoral degrees in statistics from the same university. Kim worked as a visiting professor at the University of Minnesota in the United States and as a researcher at the Center for Complex Systems and Statistical Research at Seoul National University. After joining NHN (now Naver), he held various key roles related to data, including Head of the Data Information Center, Executive Director of NHN Entertainment, Leader of Naver Biz Data, and Head of the Data Insight Center. He was appointed Co-CEO of Naver Cloud in September 2022 and became the sole CEO in 2023. He is regarded as one of Korea’s leading experts in data and technology. #KimYuWon #NaverCloud #HyperCLOVAX #AIstrategy #cloudcomputing #KoreanAI #techleadership #globalexpansion #statistics #datatechnology
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CEO and President of Naver Cloud
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President of Konyang University
Kim Yong-ha
- Kim Yong-ha is the President of Konyang University. He was born in 1966 as the eldest son of Kim Hi-soo, the founder of Konyang University. He earned a bachelor's degree in business administration from the University of Lynchburg in Virginia, United States, and a master's degree in the same field from the same university. He later received a Ph.D. in business administration from the graduate school of Sogang University. In 2003, he joined Konyang University as a professor in the Department of Hospital Management and was immediately appointed Vice President for External Affairs. He went on to serve as Director of Administration at Konyang University Medical Center and Head of Strategic Support at Konyang University Hospital before being appointed President of Konyang University in August 2022. He previously served as President of the Korea Service Management Society and as Chair of the Green Growth Forum in South Chungcheong Province. With the vision of becoming a “leading university for the K-defense industry,” Konyang University was selected for the Glocal University 30 initiative. #KimYongha #KonyangUniversity #universitypresident #Kdefenseindustry #GlocalUniversity30 #hospitalmanagement #Koreanuniversities #educationleadership #SouthChungcheong #servicesector
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President of Konyang University
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CEO of Biodyne
Im Wook-bin
- Im Wook-bin is the CEO of Biodyne. He is focused on technology-driven growth and expanding into the global diagnostics market. He was born on August 21, 1974. He earned his bachelor’s degree in Korean Language and Literature from Hongik University and a master’s degree in Journalism from the Graduate School of Mass Communication at Sogang University. He began his career as a producer in the product planning division at Hyundai Home Shopping and, in 2009, acquired Biodyne (then known as Medmex), a company specializing in liquid-based cytology testing. He is known for his challenging and enterprising spirit. Despite having no academic background or industry experience in biotechnology, he ventured into the in vitro diagnostics business. He studied medical textbooks for pathology specialists and led the development of Biodyne’s core blowing technology. He also successfully secured a partnership with Roche, the global leader in in vitro diagnostics. #Biodyne #ImWookbin #invitrodiagnostics #Roche #biotechstartup #medicaldiagnostics #healthtech #Koreanentrepreneur #pathology #blowingtechnology
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CEO of Biodyne
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CEO & Vice Chairman of OCI
Lee Woo-hyun
- Lee Woo-Hyun is the CEO and Vice Chairman of OCI Holdings. He is dedicated to expanding OCI Group’s business portfolio while focusing on building a vertically integrated solar power industry in the United States. Born on February 15, 1968, he is the eldest son of former OCI Group Chairman Lee Soo-Young and Kim Kyung-Ja, Chairperson of the Songam Cultural Foundation. He graduated from Hongik University High School and majored in Chemical Engineering at Sogang University. He later earned an MBA from the Wharton School of the University of Pennsylvania in the United States. After gaining experience in technical sales and mainly engaging in mergers and acquisitions and investment advisory at International Raw Materials in the U.S., BT Wolfensohn, CSFB in Hong Kong, and Z Partners in Seoul, he joined Dongyang Chemical as Executive Vice President and Head of Strategic Planning. Following the group’s rebranding from Dongyang Chemical Group to OCI Group, he was promoted to Executive Vice President overseeing business operations and became CEO in 2013. He later served as Vice Chairman and rose to CEO and Vice Chairman of OCI in 2023. He has served as Vice Chairman of the Seoul Chamber of Commerce and Industry and the Korea International Trade Association. He currently chairs the Korea-Malaysia Business Council. He personally explains OCI’s business performance to shareholders at each investor relations meeting. He is also an exhibiting photographer who holds photography exhibitions. #LeeWooHyun #OCI #solarenergy #CEO #chemicalindustry #KoreaMalaysia #Wharton #renewableenergy #investmentstrategy #businessleadership
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CEO & Vice Chairman of OCI
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President of Seoul St. Mary’s Hospital
Yoon Seung-kew
- Yoon Seung-kew is the President of Seoul St. Mary’s Hospital, Catholic University, and concurrently serves as the President of Yeouido St. Mary's Hospital. He aims to normalize hospital operations and improve efficiency, especially as hospital management has worsened due to conflicts between medical associations and the government. He was born on April 12, 1959. Yoon graduated from the Catholic University College of Medicine and earned both his master's and doctoral degrees in medicine from the university’s graduate school. He was appointed as a professor in the Department of Internal Medicine at the Catholic University College of Medicine. He served as Director of the Cancer Hospital at Seoul St. Mary’s Hospital and was appointed President of Seoul St. Mary’s Hospital in 2021. His term was renewed in 2023. He previously served as President of the Korean Liver Cancer Association and currently serves as President of the Asian Federation of Catholic Medical Associations. He is a renowned expert on hepatitis and liver cancer, and conducts research that integrates clinical and basic sciences. He played a key role in establishing the POSTECH (Pohang University of Science and Technology)–Catholic University Institute for Biomedical Convergence. He is currently tasked with leading a comprehensive structural transformation of the hospital to reposition it as a top-tier general hospital focused on severe and intractable diseases. #YoonSeungkew #CatholicUniversity #SeoulStMarysHospital #YeouidoStMarysHospital #livercancer #hepatitis #Koreanhealthcare #hospitalmanagement #POSTECH #medicalresearch
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President of Seoul St. Mary’s Hospital
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Vice Chairman of MBK Partners
Kim Kwang-il
- Kim Kwang-il is the Vice Chairman of MBK Partners and also serves as one of the co-CEOs of Homeplus. Born in 1962, he graduated from the Department of Business Administration at Seoul National University. He passed the 34th Korean bar exam and completed training at the Judicial Research and Training Institute. He then worked as a mergers and acquisitions attorney at the law firm Kim & Chang. In 2005, he joined MBK Partners. Since the second half of 2024, he has led investment strategies and major decision-making processes, including the high-profile management dispute over Korea Zinc, which has stirred up the capital market. Alongside MBK Partners founder Chairman Kim Byung-joo and Vice Chairman Yoon Jong-ha, he is widely recognized as a “master of mergers and acquisitions.” He is known as the behind-the-scenes figure in the acquisition of Homeplus. Often referred to as the “second-in-command” after Chairman Kim Byung-joo, he concurrently holds executive positions in about 20 companies, both in Korea and abroad. #MBKPartners #KimKwangil #Homeplus #M\&A #KoreaZinc #privateequity #capitalmarkets #executiveleadership #lawyerturnedexecutive #investmentstrategy
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Vice Chairman of MBK Partners
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CEO and Chairman of KPX Holdings
Yang Jun-young
- Yang Jun-young is the CEO and Chairman of KPX Holdings. Born on February 23, 1969, he is the eldest son among two sons and one daughter of Yang Kyu-mo, the Chairman of the Board at KPX Holdings. In 2023, he completed the succession process and began his leadership as the second-generation head of the company. He graduated from Daeil High School in Seoul and studied Industrial Engineering at Korea University. He later earned graduate degrees from Korea University Graduate School and the Department of Economics at Lewis & Clark Graduate School in the United States. As the head of the holding company KPX Holdings, he has focused on stabilizing the management of its affiliates. He is currently facing growing calls to improve corporate governance transparency and to strengthen ESG (Environmental, Social, and Governance) practices. #KPXHoldings #YangJunyoung #succession #KoreaUniversity #LewisAndClark #corporategovernance #ESG #industrialengineering #KPXGroup #secondgenerationleadership
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CEO and Chairman of KPX Holdings
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CEO of Konan Technology
Kim Young-sum
- Kim Young-sum is the CEO of Konan Technology. He is focusing on boosting performance after completing large-scale infrastructure investments. He was born on October 15, 1959. He graduated from the Department of Electronic Communications at Hanyang University and received both his master's and doctoral degrees in Electronic Communications from the Graduate School of Hanyang University. He worked as a senior researcher at the Electronics and Telecommunications Research Institute (ETRI) and served as a visiting researcher at Bellcore in the United States. In 1999, he founded Konan Technology with researchers from ETRI. In 2023, the company officially launched its large language model, ‘Konan LLM’. It has secured its own proprietary AI technology. #KimYoungsum #KonanTechnology #AIresearch #ETRI #Bellcore #KoreanAI #KonanLLM #techstartup #infrastructureinvestment #HanyangUniversity
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CEO of Konan Technology
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Vice Chairman of Mirae Asset Global Investments
Choi Chang-hoon
- Choi Chang-hoon is the Co-CEO and Vice Chairman of Mirae Asset Global Investments. He oversees the entire asset management division and jointly leads Mirae Asset Global Investments with Lee Jun-yong, Co-CEO and Vice Chairman, who is in charge of marketing and administration. He was born on October 21, 1969. He graduated from Iksan Nam High School in North Jeolla Province and earned a degree in business administration from The Ohio State University in the United States. He received a master's degree in real estate finance from Cornell University Graduate School. He began his career at Samsung Everland and went on to work at Kyobo Life Insurance and BHPK before joining Mirae Asset Maps Asset Management in 2005 as Head of the Real Estate Investment Division 2. In 2012, when Mirae Asset Maps Asset Management merged with Mirae Asset Global Investments, he became Head of the Real Estate Division at Mirae Asset Global Investments. As Head of the Real Estate Investment Division at Mirae Asset Group, he aggressively acquired office buildings and hotels in global markets. He is the only one among the four key figures who have developed the real estate divisions at Mirae Asset Maps Asset Management and Mirae Asset Global Investments since the early 2000s who is still with the company today. He was promoted to Vice Chairman in 2021 and reappointed in 2023. He is an expert in real estate investment who has been building the firm’s real estate portfolio since the early days of Mirae Asset Global Investments. He was the fastest among Mirae Asset Group’s professional managers to be promoted to Vice Chairman and has served as a bridge between Chairman Park Hyun-joo and the group’s professional management. #ChoiChanghoon #MiraeAsset #MiraeAssetGlobalInvestments #RealEstateInvestment #ViceChairman #GlobalInvestment #CornellUniversity #OhioStateUniversity #AssetManagement #ProfessionalExecutive
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Vice Chairman of Mirae Asset Global Investments
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CEO of Samsung Electro-Mechanics
Chang Duck-hyun
- Chang Duck-hyun is the President and CEO of Samsung Electro-Mechanics. He is focusing his efforts on expanding the AI substrate and electric vehicle component businesses, which have strong potential for future growth. He was born on February 13, 1964. He graduated from the Department of Electronic Engineering at Seoul National University. He earned a master’s degree in electronic engineering from the graduate school at Seoul National University and received a Ph.D. in electronic engineering from the University of Florida in the United States. He joined Samsung Electronics, where he served as Head of the Controller Development Team in the Memory Division, Executive in charge of Flash Memory Development, and Head of the Solution Development Office. At the System LSI Division, he worked as Head of LSI Development, Head of SoC Development, Head of the Component Platform Business Team, and Head of the Sensor Business Team. In 2022, he moved to Samsung Electro-Mechanics and was appointed President and CEO. He was reappointed in 2024. He is recognized as having a strong technological DNA in both memory semiconductors and system semiconductors. He has a strong will for technological innovation, to the extent that he says his favorite words are “tech” and “future.” He values communication with employees and enjoys surfing whenever he has the time. #ChangDuckhyun #SamsungElectroMechanics #AI #ElectricVehicle #Semiconductor #SystemLSI #TechLeadership #SNUAlumni #TechInnovation #KoreanExecutives
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CEO of Samsung Electro-Mechanics
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Chairman of Suprema
Lee Jae-won
- Lee Jae-won is the Chairman and CEO of Suprema and Suprema HQ. He is focusing on expanding the company’s global market share based on artificial intelligence-based security solution technology. He was born in Seoul on September 29, 1968. He graduated from Dankook University High School and earned his bachelor’s degree in Control and Instrumentation Engineering from Seoul National University. He received his master’s degree in the same field and his doctorate in Electrical Engineering from the graduate school of Seoul National University. He served as a visiting scholar at Stanford University in the United States before fulfilling his military duty through an alternative service program at Samsung Advanced Institute of Technology. In 2000, he founded Suprema, which is now known as Suprema HQ. He has served as Vice Chairman of the Korea Biometric Association (KBA), Vice President of the Korea Information Security Industry Association (KISIA), and Vice President of the Korea Venture Business Association. He is a full member of the National Academy of Engineering of Korea. He embraces a flexible management philosophy. Judging that microelectromechanical systems had limited business potential, he shifted the company’s focus to fingerprint recognition technology. He knows how to turn risks into opportunities. In the early 2000s, domestic trust in fingerprint recognition technology was very low, so he targeted overseas markets first. He values technology. He invests more than 10% of revenue in research and development and has structured 50% of the company’s workforce as R&D personnel. #LeeJaewon #Suprema #SupremaHQ #biometrics #fingerprintrecognition #AIsecurity #R&Dinvestment #technologydriven #Koreanengineering #globalexpansion
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Chairman of Suprema
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President of Gyeongkuk National University
Jeong Tae-ju
- Jeong Tae-ju is the first president of Gyeongkuk National University. He successfully led the smooth integration of Andong National University and Gyeongbuk Provincial University, launching Gyeongkuk National University on March 1, 2025. He was born in Seoul in 1965. After graduating from Yongmun High School in Seoul, he earned his bachelor's degree in Materials Science and Engineering at Seoul National University, followed by master's and doctoral degrees in the same field from the graduate school of Seoul National University. In 2002, he joined Andong National University as a professor in the Department of Electrical and Advanced Materials Engineering and served in various roles, including Head of the Startup Support Center, Director of the Industry-Academia Cooperation Education Project, Director of Planning, and Director of the Regional Innovation Project. Externally, he served as Chair of the Council of Planning Directors at Regional National Universities, a member of the Ministry of Education’s National University Development Task Force, a member of the National University Development Council under the Ministry of Education, and a program management committee member for the National University Promotion Project at the National Research Foundation of Korea. He led major initiatives such as the final selection for the Glocal University 30 Project and the merger with Gyeongbuk Provincial University. He is currently focusing on establishing a national medical school, one of the most pressing issues in the region. #JeongTaeju #GyeongkukNationalUniversity #AndongUniversity #GyeongbukProvincialUniversity #nationaluniversity #GlocalUniversity30 #Koreaneducation #regionalinnovation #publicuniversity #medicalschoolinitiative
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President of Gyeongkuk National University
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Chairman of Dunamu
Song Chi-hyung
- Song Chi-hyung is the chairman of Dunamu. He also serves as the chairman of the board of directors. Through Dunamu, a fintech company in which he is the largest shareholder, he operates the cryptocurrency exchange Upbit and is committed to developing the cryptocurrency and blockchain ecosystem, as well as ESG (Environmental, Social, and Governance) management. He was born in September 1979 in Gongju, Chungcheongnam-do. He graduated from Chungnam Science High School and studied Computer Engineering and Economics at Seoul National University. After working at Danal as an alternative to military service, he went through the consulting firm Inomove before founding Dunamu. He led the operation of the mobile-based securities trading platform ‘Securities Plus for Kakao’, bringing innovation to the asset management industry. Based on this experience, he launched the virtual asset exchange Upbit, ushering in a golden era for Dunamu. He has a strong ability to identify and commercialize upcoming trends such as mobile-based stock trading and cryptocurrencies. He is known for his exceptional development skills, earning the reputation of a genius developer. #SongChiHyung #Dunamu #Upbit #cryptocurrency #blockchain #fintech #SecuritiesPlus #Kakao #ESG #KoreaTechLeader
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Chairman of Dunamu
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CEO of Samsung Fire & Marine Insurance
Lee Mun-hwa
- Lee Mun-hwa is the CEO and President of Samsung Fire & Marine Insurance. He is striving to maximize profitability by focusing on protection-type insurance products through the corporate general agency (GA) channel. He was born in February 1967. He graduated from Janghoon High School in Seoul and the Department of Economics at Sungkyunkwan University. In 1990, he joined Ankook Fire & Marine Insurance (now Samsung Fire & Marine Insurance), where he served as Head of the Actuarial RM Team, Head of the Management Support Team, Head of the CPC Strategy Office, and Head of the Strategic Sales Division before becoming Head of the General Insurance Division. At the end of 2022, he moved to Samsung Life Insurance, where he served as Executive Vice President of the Strategic Sales Division. He was appointed CEO and President of Samsung Fire & Marine Insurance in March 2024. Except for a little over a year at Samsung Life Insurance, he has spent nearly 35 years at Samsung Fire & Marine Insurance, gaining extensive experience in management support, strategy, and sales, which enhanced his understanding of the industry. He has contributed to diversifying the company’s overseas market portfolio and improving its organizational structure. He communicates openly and informally with employees. #LeeMunhwa #SamsungFire #InsuranceCEO #SungkyunkwanUniversity #SamsungGroup #KoreanInsurance #GASalesChannel #ProfitabilityStrategy #GlobalInsurance #CorporateLeadership
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CEO of Samsung Fire & Marine Insurance
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CEO of Chips&Media
Kim Sang-hyun
- Kim Sang-hyun is the CEO of Chips&Media. He has led Chips&Media, Korea’s only company specializing in system semiconductor intellectual property (IP), to the top of the global video semiconductor IP sector. He was born on July 24, 1967, in Busan. He graduated from the Department of Avionics at Vaughn College in the United States and completed an MBA program at Dowling College in the United States. After working at General Electric (GE) in the United States, he gained experience in marketing, sales, and procurement at Korea Telecom Hitel, Telson Electronics, and Sejin Electronics. In 2005, he joined Chips&Media as Head of the IP Division. In 2008, he was appointed CEO. He presented a vision to achieve double-digit annual growth of 10–15% through 2030 and to increase the share of revenue from its self-developed neural processing unit (NPU) IP ‘CMNP’ to 20% of total sales. #KimSanghyun #ChipsandMedia #SemiconductorIP #VideoSemiconductor #KoreanCEO #VaughnCollege #DowlingCollege #CMNP #SystemSemiconductor #NPUIP
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CEO of Chips&Media
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CEO of KG Steel
Park Sung-hee
- Park Sung-hee is the CEO of KG Steel. He also serves as the chairman of the board of directors. He is focusing on increasing productivity using AI technology and responding to U.S. steel tariffs. He was born on June 2, 1964. He graduated from Namgang High School in Seoul and the Department of Metallurgical Engineering at Sungkyunkwan University. In 1994, he joined KG Dongbu Steel, the predecessor of KG Steel, and served as head of the Color Business Division at KG Dongbu Incheon Steel, head of the Marketing Office, and Executive Vice President of the Marketing and Sales Division. In 2021, he was appointed CEO and Executive Vice President of KG Steel. He was officially appointed CEO in 2021. He is a sales expert who has protected the company for over 30 years and has earned strong trust from Kwak Jae-sun, chairman of KG Group. #KGSteel #ParkSunghee #AItechnology #USsteelTariffs #KGGoup #KoreanCEOs #MetallurgicalEngineering #SteelIndustry #SungkyunkwanUniversity #KoreanBusinessLeadership
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CEO of KG Steel
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CEO of SPC Samlip
Kim Bum-soo
- Kim Bum-soo is the Vice President and Co-CEO of SPC Samlip. He was born on July 4, 1970. He graduated from the Department of French Language and Literature at Sogang University and earned a master’s degree in marketing from the Graduate School of Business at Seoul National University. He joined SK Telecom in 1997 and worked there for about 20 years. In 2016, he moved to SPC Group and held various positions, including Head of Happy Lab in the Marketing Strategy Office, Head of the Marketing Division at SPC Samlip, Head of the Food Business Division, Head of the Food BU, and Head of the Future Strategy BU. At the end of 2024, he was appointed as Co-CEO of SPC Samlip, taking charge of business operations and internal management. He has faced intense public criticism following a worker fatality incident at SPC Samlip. He is now in a position where he must focus all efforts on handling the aftermath, preventing recurrence, and restoring the company’s image. #KimBumsoo #SPCSamlip #SPCGroup #CoCEO #BusinessLeadership #CorporateManagement #LaborAccident #CrisisManagement #FoodIndustry #KoreanExecutives
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CEO of SPC Samlip
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Chairman of the Board at Bionote
Cho Young-shik
- Cho Young-shik is the Chairman of the Board at SD Biosensor. He also serves as the Chairman of the Board at Bionote, the largest shareholder of SD Biosensor. In the post-COVID-19 era, he is seeking new growth engines by diversifying diagnostic test items and pursuing corporate mergers and acquisitions. He was born on June 30, 1961, in Gyeonggi-do. He graduated from Yushin High School in Suwon, Gyeonggi, and earned his degree in veterinary medicine from Seoul National University. He obtained both his master’s and doctoral degrees in biochemistry from the graduate school of Seoul National University. He joined Green Cross, where he worked in the development and marketing of diagnostic reagents, then moved to Viromed. In 1999, he founded SD (now Abbott Diagnostics Korea), a company specializing in human diagnostic reagents. In 2003, he founded Bionote, specializing in veterinary diagnostic products. After SD was sold to a foreign company and SD Biosensor, the diagnostic equipment division, was spun off, he secured management control. During the COVID-19 outbreak, he expanded sales in the diagnostic product market, boosting revenue to over KRW 1 trillion (US$ 721 million). He considers technology to be the driving force behind business growth and competition. His management principle is to enter markets one step ahead of others. He believes in the philosophy that “staying still leads to failure,” emphasizing constant change for survival. #ChoYoungshik #SDBiosensor #Bionote #KoreanBiotech #DiagnosticReagents #COVID19Testing #MergersAndAcquisitions #VeterinaryDiagnostics #CorporateLeadership #BiotechInnovation
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Chairman of the Board at Bionote
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Chairman of POSCO Holdings
Chang In-hwa
- Chang In-hwa is the Chairman and CEO of POSCO Holdings. He is striving for a new leap forward for the POSCO Group by strengthening the competitiveness of the secondary battery materials business along with the steel business. He was born on August 17, 1955. He graduated from Kyunggi High School in Seoul and the Department of Naval Architecture and Ocean Engineering at Seoul National University. He earned a master’s degree in naval architecture from the Graduate School of Seoul National University and a doctorate in ocean engineering from the Graduate School of the University of Massachusetts in the United States. After joining POSCO, he held various positions including Director of the Steel Structure Research Center at the Pohang Research Institute of Science and Technology (RIST), Head of New Business Department in the Growth Investment Division, Head of New Business Management in the Financial Investment Division, and Head of Steel Solution Marketing in the Steel Business Division. He later served as Head of the Technology Investment Division and President of the Research Institute of Technology. While serving as Head of Steel Production, he was appointed President and CEO in 2018 and led the steel division. Although he was a final candidate in the chairman selection process, he failed to win the position and left the company, but returned in 2024 as Chairman and CEO of POSCO Holdings. He is known as a benevolent leader who unites internal members, focusing his efforts on restoring the competitiveness of the core steel business. #ChangInhwa #POSCOHoldings #SteelIndustry #SecondaryBatteries #KoreanExecutives #CEOProfile #EngineeringLeadership #SteelBusiness #POSCOReturn #CorporateLeadership
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Chairman of POSCO Holdings
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CEO of Shinsegae International
Kim Hong-geuk
- Kim Hong-geuk is the CEO of the Beauty & Life Division at Shinsegae International and also the CEO of Shinsegae Casa. He was born on December 1, 1964, in Jeongseon, Gangwon-do. He graduated from Gangneung Commercial High School and the Department of Economics at Kyung Hee University. He joined Shinsegae’s Management Support Office and held positions such as General Manager of the New Channel MD Team in the MD Planning Department of Shinsegae E-Mart Division, and Executive Director in charge of Home Appliances and Culture in the Lifestyle Division under E-Mart's Sales Division. He later served as Head of Product Division at E-Mart and Executive Director for Electro Mart BM before being appointed CEO of Shinsegae TV Shopping (now Shinsegae Live Shopping) in 2018. In November 2022, he became CEO of Shinsegae Casa, and in October 2024, he was appointed CEO of the Beauty & Life Division at Shinsegae International. He has proven his ability to improve profitability and management by taking the lead of Shinsegae Group affiliates that were in the red and turning them around into profitability one after another. #KimHonggeuk #ShinsegaeInternational #ShinsegaeCasa #beautyindustry #retailleadership #executiveappointment #businessprofitability #Koreanretail #corporateturnaround #EcommerceKorea
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CEO of Shinsegae International
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CEO of L&C Bio
Lee Whan-chul
- Lee Whan-chul is the CEO of L&C Bio. He is focusing on targeting the global human tissue graft market. He was born on March 15, 1976, in Iksan, Jeonbuk. He graduated from Iri North Elementary School, Namseong Middle School, and Namseong High School in North Jeolla. He graduated from the College of Education at Seoul National University. After working as a sales representative at Daewoong Pharmaceutical for about ten years, he served as head of the sales division at the medical device company CGBio. He founded L&C Bio in 2011. He is known for his strong self-direction and practical, field-oriented leadership. He also serves as CEO of Global Medical Research Center and L&C Bio Technology (L&C China). #LeeWhanchul #LCBio #humantransplantmarket #Koreanbiotech #SeoulNationalUniversity #DaewoongPharmaceutical #CGBio #medicaldevices #biotechstartup #globalleadership
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CEO of L&C Bio
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Vice Chairman of Kolmar Korea
Yoon Sang-hyun
- Yoon Sang-hyun is the Vice Chairman of Kolmar Korea. He also serves as Vice Chairman of the holding company, Kolmar Holdings. He succeeded Kolmar Korea after his father, former Kolmar Holdings Chairman Yoon Dong-han, stepped down from management. He is focusing on expanding the value chain of the cosmetics business and restructuring Kolmar Group’s governance. He was born on December 18, 1974, as the eldest of one son and one daughter of former Chairman Yoon Dong-han. He graduated from the Department of Agricultural Economics at Seoul National University. He earned a master's degree in economics from the London School of Economics and Political Science in the UK, and a master's degree in management science from Stanford University in the United States. He worked at the U.S. consulting firm Bain & Company before joining Kolmar Korea as Executive Director of the Planning and Management Division. He served as Executive Vice President at both the business entity Kolmar Korea and the holding company Kolmar Holdings, then was appointed CEO and President of Kolmar Holdings in 2016 and CEO and President of Kolmar Korea’s cosmetics division in 2017. He also served as Co-CEO of CJ Healthcare. He was promoted to Vice Chairman and CEO of Kolmar Korea but stepped down from both the CEO position at Kolmar Korea and the CEO position at HK inno.N in 2020. In 2024, he was appointed Vice Chairman and CEO of Kolmar Holdings. He successfully led major mergers and acquisitions for Kolmar Korea. #YoonSanghyun #KolmarKorea #KolmarHoldings #cosmeticsindustry #LSEalumni #Stanfordalumni #CJHealthcare #HKinnoN #Koreanbusiness #corporategovernance
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Vice Chairman of Kolmar Korea
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Head of AAM Division at Hyundai Motor Company
Shin Jai-won
- Shin Jai-won is the President and Head of the Advanced Air Mobility (AAM) Division at Hyundai Motor Company. He also serves as the Chief Executive Officer (CEO) of Supernal, Hyundai Motor Group’s independent urban air mobility corporation based in the United States. He is tasked with leading Hyundai Motor Group’s goal of commercializing Urban Air Mobility (UAM) within the next three years. He was born in July 1959 in Seoul. He graduated from the Department of Mechanical Engineering at Yonsei University and received a master’s degree in mechanical engineering from California State University, Long Beach. He later earned a Ph.D. in mechanical engineering from Virginia Polytechnic Institute and State University. He joined the National Aeronautics and Space Administration (NASA), where he served as Director of the Aeronautics Research Directorate at Glenn Research Center, Deputy Associate Administrator of the Aeronautics Research Mission Directorate at NASA Headquarters in Washington, and later became the first Asian to lead the Aeronautics Research Mission Directorate as Associate Administrator. In 2019, he joined Hyundai Motor Group as Executive Vice President and Head of the Urban Air Mobility (UAM) Division, and was promoted to President in 2020. He is a Fellow of both the American Institute of Aeronautics and Astronautics (AIAA) and the Royal Aeronautical Society (RAS) of the United Kingdom. He also serves as a member of the Drone Advisory Committee (DAC) for the U.S. Federal Aviation Administration (FAA). #ShinJaiwon #HyundaiMotor #Supernal #AAM #UAM #NASAcareer #Koreanengineer #urbanairmobility #globalaviation #Hyundaiexecutive
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Head of AAM Division at Hyundai Motor Company
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Chairman of the Board at Netmarble
Bang Jun-hyuk
- Bang Jun-hyuk is the Chairman of the Board at Netmarble and also serves as the Chairman of the Board at Coway. He is working to diversify Netmarble’s game genres and enhance the value of its original intellectual property (IP) by acquiring global social casino companies. After acquiring Coway, he focused on completing its integration with Netmarble and generating business synergy. He was born on December 23, 1968, in Seoul and spent his childhood in Garibong-dong, Guro-gu, Seoul. He did not complete high school. He worked at small and medium-sized enterprises to save money and tried launching internet film and satellite businesses, but both ended in failure. With a capital of KRW 100 million (US$ 72,100), he founded the game company Netmarble and achieved great success. He later sold Netmarble to CJ E&M and served as the president of CJ Internet, the gaming division of CJ E&M. Due to health issues, he stepped away from the gaming industry for a while. However, he returned when CJ E&M’s game business began to struggle. When CJ E&M merged its gaming business into a subsidiary named CJ Games, Bang became its largest shareholder during the process of receiving a US$ 500 million investment from Tencent in China. He later changed the name of CJ Games to Netmarble Games and spun it off from the CJ Group. He listed Netmarble on the KOSPI, making it the first Korean game company to do so, and is now focusing on expanding the company’s influence in overseas markets with the goal of becoming a global top-tier game developer. Coming from a humble background, he joined the ranks of billionaires with a fortune estimated at over KRW 2 trillion (US$ 1.44 billion) thanks to Netmarble's success. He values quick decision-making and avoids being confined by conventional thinking when making strategic choices. #BangJunhyuk #Netmarble #Coway #KoreanGames #KOSPIListing #TencentInvestment #CJGroup #GameIndustry #SocialCasino #StartupSuccess
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Chairman of the Board at Netmarble
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CEO of Silicon2
Kim Sung-woon
- Kim Sung-woon is the CEO of Silicon2. He was born in May 1972. He graduated from the Department of Social Welfare at Pusan National University. He began his career in overseas sales of semiconductor parts at Kiryung Electronics, then worked at MDI Korea before founding Silicon2 in 2002 to enter the international semiconductor distribution business. In 2012, he transformed the company into a B2B and B2C distribution business that introduces and sells Korean cosmetics brands overseas, growing it into a company with a market capitalization of KRW 2 trillion (US$ 1.44 billion). He has a vision of expanding the business scope beyond K-beauty to encompass the overall K-lifestyle. #KimSungwoon #Silicon2 #Kbeauty #Klifestyle #semiconductordistribution #Koreanstartup #CEOprofile #globaldistribution #B2Bcosmetics #Koreanentrepreneur
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CEO of Silicon2
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CEO of HPSP
Kim Yong-woon
- Kim Yong-woon is the CEO of HPSP. He was born in April 1969. He graduated from the Department of Ceramic Engineering at Yonsei University and received a master’s degree in ceramic engineering from Yonsei University Graduate School. He also completed an MBA program at the Yonsei University School of Business. He served as Executive Director at Applied Materials Korea, Country Manager of FormFactor Korea, and President of ASMK, accumulating managerial expertise in the semiconductor industry through various executive and leadership roles at global semiconductor companies. He was appointed CEO of HPSP in October 2020. Since joining the company, he has led HPSP with a technology-centered approach and a spirit of challenge, transforming it into a company gaining attention in the global semiconductor equipment market. He is currently overseeing the task of selling HPSP, which is valued at approximately KRW 2 trillion (US$ 1.44 billion). #KimYongwoon #HPSP #semiconductor #CEO #YonseiUniversity #ceramicengineering #MBA #AppliedMaterials #FormFactor #ASMK #KoreanStartup #techleadership
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CEO of HPSP
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CEO of PIE
Choi Jeong-il
- Choi Jeong-il is the CEO of PIE. Together with CEO Kim Hyun-joon, he leads PIE as co-CEO. He is accelerating the expansion of the company’s business structure, which is centered on secondary batteries, into fields such as semiconductors, glass substrates, and pharmaceuticals. He was born on December 16, 1970, in Seoul as the second son among two sons and one daughter. He graduated from the Department of Electronic Engineering at Sogang University and earned a master’s degree in electronic engineering from Sogang University Graduate School. He worked as an engineer at Samsung SDI for about 10 years and later served as vice president at DIT, a company specializing in semiconductor and display inspection equipment. He founded PIE in 2018. He emphasizes technological independence and has grown PIE into a company with over KRW 100 billion (US$ 72.1 million) in revenue within seven years by pursuing a technology-centered management strategy. He is a business leader who knows how to turn risk into opportunity. Even after the failure of the SPAC merger, he successfully completed PIE’s KOSDAQ listing by focusing on investments in new technologies and business diversification. He pursues investment from a long-term perspective. #ChoiJeongil #PIE #KOSDAQ #secondarybattery #semiconductors #glasssubstrates #pharmaceuticals #SogangUniversity #SamsungSDI #DIT
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CEO of PIE
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CEO of VUNO
Lee Ye-ha
- Lee Ye-ha is the Chief Executive Officer (CEO) of VUNO. He was born on January 26, 1978. He graduated from the Department of Computer Science and Engineering at POSTECH (Pohang University of Science and Technology), and earned his Ph.D. through an integrated master’s and doctoral program in computer engineering at POSTECH Graduate School. He joined Samsung Advanced Institute of Technology as a researcher and later co-founded VUNO in 2014 with fellow researchers. He was the first in South Korea to introduce deep learning to the medical IT field and commercialize it. As VUNO marks its 10th anniversary, the company is aiming to turn a profit in 2025 for the first time, pursuing qualitative growth through a “selection and concentration” strategy. #LeeYeha #VUNO #POSTECH #SamsungAdvancedInstitute #medicalAI #deepLearning #KoreanStartup #AIinHealthcare #healthtech #CEOprofile
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CEO of VUNO
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Vice Chairman of Aekyung Group
Chai Hyung-suck
- Chai Hyung-suck is the Vice Chairman and Group COO of Aekyung Group. He also serves as the CEO of AK Holdings, the group's holding company. He is focusing on improving Aekyung Group’s stagnant growth, strengthening its financial structure, and restructuring its business portfolio. He was born in Seoul in 1960 as the eldest son of Chai Mong-in, the founder of Aekyung Group, and Jang Young-shin, the current Chairwoman of the group. He graduated from Korea High School in Seoul and studied Business Administration at Sungkyunkwan University. He later earned a master’s degree in Business Administration from Boston University in the United States. He began his involvement in group management as an auditor at Aekyung Industrial, later serving as CEO of Aekyung Chemical and Vice Chairman of Aekyung Group. After being promoted to Vice Chairman and Group COO in 2006, he led the group's restructuring efforts. He entered the retail business by establishing Aekyung Department Store and launched the leisure and real estate development sectors through Aekyung Development. Despite opposition, he ventured into aviation and grew Jeju Air into the leading low-cost carrier in South Korea. He is known for his deep filial devotion to his mother, Chairwoman Jang Young-shin, and maintains strong bonds with his siblings. He delegates the management of affiliates to his younger siblings and professional executives, while focusing primarily on major group-wide issues. #ChaiHyungsuck #AekyungGroup #AKHoldings #JejuAir #KoreaBusiness #KoreaAviation #SungkyunkwanUniversity #BostonUniversity #grouprestructuring #KoreaFinance
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Vice Chairman of Aekyung Group
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CEO of SK Innovation
Park Sang-kyu
- Park Sang-kyu is the President and CEO of SK Innovation. He is working to secure profitability and growth by leveraging the merger synergy between SK Innovation and SK E\&S. He was born on August 9, 1964. He graduated from Baemyeong High School in Seoul and the Department of Business Administration at Seoul National University. He joined Yukong, the predecessor of SK Innovation, in 1986 and served as head of financial improvement and head of retail strategy. He served as Chief of Staff to the Chairman of SK Innovation and Executive Vice President of Hotel Operations at SK Networks before being appointed President and CEO of SK Networks in 2021. He later served as President and CEO of SK Enmove and was appointed President and CEO of SK Innovation in March 2024. He is considered a planning expert with a 40-year career across SK Group affiliates. He is regarded as a close aide to SK Group Chairman Chey Tae-won, having served as his Chief of Staff when Chey was Chairman and CEO of SK Innovation in 2013. #ParkSangkyu #SKInnovation #SKEandS #SKEnmove #SKNetworks #CheyTaewon #KoreaEnergy #businessleadership #KoreaFinance #executiveprofile
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CEO of SK Innovation
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CEO of Woori Card
Jin Sung-won
- Jin Sung-won is the President and CEO of Woori Card. Strengthening the status of Woori Card, which remains stagnant in the lower ranks of the industry, is the key to the success or failure of his management. He was born on November 5, 1963. He graduated from Peniel High School and the Department of Business Administration at Korea University. He is an expert who has worked solely in the card industry for over 30 years, starting with Samsung Card and continuing through Hyundai Card, Lotte Card, and Woori Card. He has built a well-rounded skillset in marketing, retail finance, sales planning, and debt management. At Hyundai Card, he held positions including Head of Marketing, Head of SME Business, Head of CLM, Head of Cross-sell Business, Head of Financial Business, and Head of Operations. After serving as an advisor at Lotte Card, he was appointed as President and CEO of Woori Card in 2025. He is the first external hire to become CEO of Woori Card. It is also his first time serving as CEO in his career. He is pushing for ‘compressed growth’ focused on core areas to drive a new leap forward for Woori Card. #JinSungwon #WooriCard #creditcardindustry #KoreaFinance #cardbusiness #compressedgrowth #HyundaiCard #LotteCard #SamsungCard #KoreaExecutives
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CEO of Woori Card
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Vice Chairman of TS Corporation
Seol Yoon-ho
- Seol Yoon-ho is the Vice Chairman of TS Corporation. He is focusing on improving the financial structure of TS Corporation by selling non-core assets and securing liquidity. He was born on February 22, 1975, as the eldest son of former TS Corporation Chairman Seol Won-bong and Park Sun-young, former chairwoman of the Inseon Cultural Foundation and daughter of Park Young-hak, founder of the Daenong Group. He has one younger sister. He graduated from the graduate school of Claremont University in the United States and joined TS Corporation. After serving as Executive Vice President and Managing Director in charge of business operations, he was appointed as CEO and Vice Chairman in 2010. In 2013, he resigned from the CEO position as TS Corporation transitioned to a professional management system, and as of 2025, he holds only the position of Vice Chairman. He is a third-generation business leader who took on executive responsibility at the young age of 35. He is known for being introverted and meticulous. #SeolYoonho #TSCorporation #DaenongGroup #financialrestructuring #thirdgenerationCEO #ClaremontUniversity #Koreanfoodindustry #executiveleadership #noncoreassets #Koreanbusinessman
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Vice Chairman of TS Corporation
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Vice Chairman of SGA Solutions
Choi Young-chul
- Choi Young-chul is the Vice Chairman and CEO of SGA Solutions. He was born on April 5, 1970. He graduated from the Department of Electrical, Electronic, and Computer Engineering at Sungkyunkwan University. He earned both his master’s and doctoral degrees in Electrical, Electronic, and Computer Engineering from the graduate school of Sungkyunkwan University. In 1998, he joined the Korea Internet & Security Agency (KISA), where he worked as a researcher for establishing an electronic signature authentication system. In 2000, he co-founded Bcure, a company specializing in cryptography and authentication, entering the private security market. He was appointed CEO of SGA Solutions in 2012 and was promoted to Vice Chairman in 2022, ten years later. He is regarded as a first-generation security venture entrepreneur, known as a "midwife of the Korean security industry" and a "pioneer in building integrated security platforms." Through technology-focused management strategies such as the early adoption of zero-trust security architecture and active M\&A activities, he has grown SGA Solutions into one of Korea's leading integrated security solution companies. #ChoiYoungChul #SGASolutions #Koreancybersecurity #zerotrust #integratedsecurity #ITentrepreneur #cyberdefense #M\&Astrategy #Bcure #KISA
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Vice Chairman of SGA Solutions
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Chairman of Hyosung Group
Cho Hyun-joon
- Cho Hyun-joon is the chairman of Hyosung Group. He also serves as CEO of the group's holding company, Hyosung. He is accelerating efforts to secure the hydrogen business value chain. He was born on January 16, 1968, in Haman County, South Gyeongsang Province, as the eldest son of former Hyosung Group Honorary Chairman Cho Suck-rae. After graduating from middle school, he studied abroad and graduated from St. Paul’s School and Yale University with a degree in political science. He earned a master’s degree in political science from Keio University Graduate School in Japan. He worked at Mitsubishi and Morgan Stanley before joining Hyosung. He worked in the Strategy Division and rose to the position of president, taking charge of the PG (Performance Group) for textiles, trading, and information technology. Even after being appointed chairman of the group and CEO of the holding company Hyosung, he continues to oversee the business strategies of affiliates. He led Hyosung Group’s expansion into overseas markets, laying the foundation for improved group performance, and finalized the holding company transition by liquidating Hyosung’s stake in Hyosung Capital. He also completed the separation of HS Hyosung from the holding company without major conflict. At the group level, he emphasizes ESG management and is achieving results. He is fluent in English and Japanese. A versatile athlete, he has a strong competitive spirit. #ChoHyunJoon #HyosungGroup #Hyosung #ESGmanagement #hydrogenbusiness #Koreanbusinessleaders #YaleUniversity #KeioUniversity #globalstrategy #HyosungCapital
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Chairman of Hyosung Group
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CEO of Samsung Bioepis
Kim Kyung-ah
- Kim Kyung-ah is the President and CEO of Samsung Bioepis. She oversees the research and development of biosimilars (biologic drug equivalents) and is exploring new drug development as a future business opportunity. She was born in 1968. She graduated from the College of Pharmacy at Seoul National University and earned a master’s degree in pharmacy from the university’s graduate school. She holds a Ph.D. in toxicology from the Johns Hopkins University School of Public Health in the United States. She worked for eight years in the U.S. as a researcher at drug development company Highsec, biotech firm Novello, and life sciences company Stemline. She then returned to Korea and joined the Samsung Advanced Institute of Technology as a principal researcher in bio drug development. Since 2015, she has played a pivotal role in all aspects of Samsung Bioepis’s biosimilar business. She became head of Samsung Bioepis after former CEO Ko Han-seung was appointed Head of Future Business Planning at Samsung Electronics at the end of 2024. She is the first female professional CEO to emerge from the Samsung Group. #KimKyungah #SamsungBioepis #Biosimilar #NewDrugDevelopment #SamsungCEO #JohnsHopkins #SNUPharmacy #WomenInLeadership #Biopharma #KoreanExecutives
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CEO of Samsung Bioepis
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CEO of Lotte Himart
Nam Chang-hee
- Nam Chang-hee is the Vice President and CEO of Lotte Himart. He also serves as Chairman of the Board. He is focused on improving the company’s fundamentals to overcome the slump in the home appliance retail industry. He was born on October 30, 1966. He graduated from Hwagok High School in Seoul and majored in German Language and Literature at Hanyang University. He joined Lotte Mart in 1992 and held key roles such as Head of Advertising and Promotions, Executive Director of the Home Appliance Division, and Head of Marketing. After being promoted to an executive position, he served in major posts within the Lotte Shopping Mart Division (Lotte Mart), including Head of Product Division, Head of Marketing Division, Head of Merchandise Division, and Head of Customer Division. In December 2019, he was brought in as a turnaround CEO to lead the Lotte Shopping Super Division (Lotte Super). At the time, he drew attention as the only “Lotte man” among the heads of several Lotte Shopping divisions. At the end of 2022, he was appointed CEO of Lotte Himart. He is working to shift the company’s structure from appliance sales to appliance care services. He is also striving to enhance profitability by strengthening the private brand. #NamChanghee #LotteHimart #LotteMart #HomeApplianceCare #LotteSuper #RetailTurnaround #KoreaRetail #ApplianceMarket #LotteLeadership #PrivateBrandStrategy
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CEO of Lotte Himart
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Chairman of DongKoo Bio & Pharma
Cho Yong-joon
- Cho Yong-joon is the Chairman and CEO of Dongkoo Bio & Pharma. He is focused on transforming Dongkoo Bio & Pharma into a “total healthcare company.” He was born on June 12, 1966, as the eldest son among one son and two daughters of founder Cho Dong-seop and Honorary Chairwoman Lee Kyung-ok. He graduated from the Department of Business Administration at Korea University and earned a master’s degree from Korea University Business School. Due to the illness of founder Cho Dong-seop, he gave up studying in the United States and immediately began learning business management. In 2005, at the age of 40, he was appointed CEO of Dongkoo Pharmaceutical. He began co-managing the company alongside his mother, Honorary Chairwoman Lee Kyung-ok. He currently serves as the Chairman of the Korea Pharmaceutical Cooperative Association. As a second-generation owner, he has grown Dongkoo Bio & Pharma into the number one pharmaceutical company in terms of dermatology prescription sales through focused and selective strategies. He is known for his strong sense of responsibility. #ChoYongjoon #DongkooBioPharma #PharmaceuticalLeadership #TotalHealthcare #SecondGenerationCEO #KoreaUniversity #DermatologyMarket #KPharma #LeadershipInPharma #HealthcareBusiness
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Chairman of DongKoo Bio & Pharma
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CEO of SM Entertainment
Tak Young-jun
- Tak Young-jun is the Co-CEO of SM Entertainment. He was born on May 23, 1978. He graduated from the Department of Political Science and International Relations at Dongguk University. He joined SM Entertainment (SM) in 2001 and served as Head of the Artist Management Division, Co-CEO (CMO·COO), and CEO of SM Life Design Group. Since March 2024, he has been serving as Co-CEO alongside former CFO Jang Cheol-hyuk. Over his 25-year career at SM, he has led the planning and development of new idol groups. Following the departure of founder Lee Soo-man and SM’s transition into a Kakao affiliate under Kim Beom-soo—accompanied by a management dispute with HYBE—he has focused on stabilizing the company’s operations. As part of the ‘SM 3.0’ strategy, he introduced and successfully established the ‘multi-production center system,’ which is regarded as a key achievement. #TakYoungjun #SMEntertainment #KpopLeadership #SM3.0 #KakaoAffiliate #HYBEConflict #KpopCEO #DonggukUniversity #IdolManagement #KpopIndustry
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CEO of SM Entertainment
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CEO of Intellian Technologies
Sung Sang-yub
- Sung Sang-yub is the CEO of Intellian Technologies. He is focusing the company’s capabilities on ground-based antenna systems, viewing them as a new growth engine. He was born on December 31, 1972. He graduated from the Department of Electronic Engineering at Yonsei University. He worked as a consultant at Accenture before founding MediaPlanet, a supply chain management (SCM) venture, in 2000. In 2004, he merged MediaPlanet with KOSDAQ-listed Myungjin Art to establish the integrated entity Myungjin Art. In 2004, he founded Intellian Technologies and developed it into the global No. 1 company in the maritime satellite communication VSAT (Very Small Aperture Terminal) market. He is now focusing on scaling the business, with a vision to grow it into a company with annual revenue of KRW 1 trillion (US\$ 721.0 million). #SungSangyub #IntellianTechnologies #VSAT #MaritimeCommunication #KoreanTech #GroundAntenna #SatelliteCommunication #YonseiUniversity #SCMVenture #TechEntrepreneur
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CEO of Intellian Technologies
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CEO of Peptron
Choi Ho-il
- Choi Ho-il is the CEO of Peptron. He is regarded as a pioneer in the field of sustained-release peptide drug development. He was born in September 1966. He graduated from the Department of Biochemistry at Yonsei University. He earned both his master’s and doctoral degrees in biochemistry from the graduate school of Yonsei University. He built his research and development experience at the Korea Research Institute of Bioscience and Biotechnology and LG Chemical Biotech (now LG Life Sciences), before establishing Peptron independently in November 1997. He is considered part of the first generation of biotech venture entrepreneurs in Korea. After personally suffering from a skin condition, he devoted himself to developing long-acting pharmaceutical products to eliminate the inconvenience of frequent medication. #ChoiHoil #Peptron #KoreanBiotech #Biopharmaceuticals #PeptideDrugs #DrugDelivery #YonseiUniversity #BiotechPioneer #PharmaInnovation #SkinDisorderTreatment
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CEO of Peptron
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CEO of Hanyang Securities
Lim Jae-taek
- Lim Jae-taek is the President and CEO of Hanyang Securities. He is diversifying the business portfolio to lay the foundation for sustainable growth. He was born on June 22, 1958, in Boryeong, South Chungcheong Province. He graduated from Yeouido High School in Seoul and studied Business Administration at Seoul National University. He earned a master’s degree in Business Administration from the graduate school of Seoul National University. In 1987, he joined Ssangyong Investment & Securities. He moved to Goodmorning Securities (now Shinhan Investment Corp.) where he served as Head of Corporate Finance and Head of Marketing Division. He served as President and CEO of IM Investment & Securities, advisor at Meritz Comprehensive Financial Securities, and Vice Chairman of GB Private Equity before being appointed as President and CEO of Hanyang Securities in 2018. He is a career securities professional who has remained in the securities industry, and is an expert in investment banking (IB). #LimJaeTaek #HanyangSecurities #KoreanFinance #InvestmentBanking #KoreaSecurities #CEOProfile #SeoulNationalUniversity #ShinhanInvestment #MeritzSecurities #PrivateEquity
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CEO of Hanyang Securities
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Former Prime Minister of Republic of Korea(South Korea)
Han Duck-soo
- Han Duck-soo is a former Prime Minister of South Korea. Before the impeachment of former President Yoon Suk-yeol, he served as Prime Minister and assisted the president. During the impeachment proceedings and after Yoon’s dismissal, Han governed as acting president. Following the president's dismissal, a “Han Duck-soo for President” movement rapidly gained momentum within the conservative bloc. As a result, Han resigned from the prime minister position and officially announced his presidential bid. He competed in a unification race against Kim Moon-soo, the People Power Party’s official candidate selected through the party primary, but ultimately failed to secure the nomination. He was born on June 18, 1949, in Jeonju, North Jeolla Province. He graduated from Kyunggi High School and the College of Commerce at Seoul National University (Department of Economics). He then obtained both a master’s and a doctoral degree in economics from Harvard University in the United States. While in his third year of college, he passed the 8th administrative exam and entered public service. He mainly held positions in the Ministry of Trade and Industry, focusing on external economic cooperation, and served as the Chief Negotiator for Trade at the Ministry of Foreign Affairs and Trade and the Senior Economic Secretary to the President during the Kim Dae-jung administration. He briefly left public office after being dismissed from the post of economic secretary following the controversy over the “Korea-China garlic negotiations,” which eased China's restrictions on Korean mobile phones in exchange for Korea relaxing restrictions on Chinese garlic imports. During the Roh Moo-hyun administration, he returned to public service as the Chief Coordinator for the Prime Minister’s Office, served as Deputy Prime Minister and Minister of Finance and Economy, and led the Korea-US FTA negotiations as the chairman of the support committee, eventually being appointed Prime Minister. In the Lee Myung-bak administration, he served as the South Korean Ambassador to the United States, and during the Park Geun-hye administration, he was President of the Korea International Trade Association. He is known as a traditional bureaucrat who has followed an elite career path, recognized for his meticulous yet affable personality and his rational handling of affairs. #HanDuckSoo #PrimeMinister #ActingPresident #Impeachment #PresidentialBid #PeoplePowerParty #Harvard #KoreaUSFTA #GarlicDeal #Bureaucrat #KoreanPolitics #EconomicPolicy #Diplomat #PublicService
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Former Prime Minister of Republic of Korea(South Korea)
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CEO & President of Toss Bank
Rhee Eun-mi
- Lee Eun-mi is the CEO and President of Toss Bank. She is focusing on diversifying revenue streams through the expansion of loan products and non-interest income businesses, as well as exploring entry into global markets. She was born in January 1973. She graduated from the Department of Electronic Computing (currently the Department of Computer Engineering) at Sogang University and completed her graduate studies at Ewha Womans University Graduate School of Translation and Interpretation. She completed MBA programs at Columbia Business School in the U.S., London Business School in the U.K., and the University of Hong Kong Business School. She studied data analysis at the London School of Economics and obtained certifications as a Certified Public Accountant (CPA) in the U.S., Chartered Financial Analyst (CFA), and Financial Risk Manager (FRM). She began her career in the financial division of Samil PwC’s tax department and then worked as a researcher at Daewoo Securities. She also served as a finance management manager at Standard Chartered Singapore & SC First Bank, head of finance at Deutsche Bank Seoul Branch, and CFO of Commercial Banking for the Asia-Pacific region at HSBC Hong Kong. She later joined Daegu Bank as Head of Strategic Planning, where she led a task force team and played a key role in its transition into a commercial bank. In March 2024, she was appointed CEO and President of Toss Bank. As the first female president of an internet-only bank in Korea, she led the bank to achieve its first net profit. She is a financial management expert with over 22 years of experience in the domestic and international financial sectors. #LeeEunMi #TossBank #FemaleLeadership #Fintech #DigitalBanking #GlobalExpansion #NonInterestIncome #FinancialExpert #MBA #CPA #CFA #FRM #SCBank #HSBC #DeutscheBank #DaeguBank #FirstFemaleCEO #InternetBank #StrategicLeadership #NetProfit
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CEO & President of Toss Bank
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President of Korea Land & Housing Corporation
Lee Han-joon
- Lee Han-joon(이한준 in Korean) is the president of the Korea Land & Housing Corporation (LH). He is working to reduce the organization's debt and restore public trust while focusing on stabilizing the housing market. He was born on August 29, 1951 (lunar calendar) in Jeongeup, North Jeolla Province. Lee graduated from Hanyang High School and earned a bachelor’s degree in urban engineering from Hanyang University. He also received a master’s degree in urban engineering from the Hanyang University Graduate School and a Ph.D. in urban planning from the Graduate School of Hongik University. He previously served as vice president of the Korea Transport Institute, president of Gyeonggi Urban Innovation Corporation (GH), and as an invited professor at Ajou University. During Kim Moon-soo’s term as governor of Gyeonggi Province, Lee served as a special policy advisor and played a key role in laying the groundwork for the Great Train Express (GTX) project in the Seoul metropolitan area. Under the Yoon Suk Yeol administration, he served as an advisor for the second economic subcommittee of the Presidential Transition Committee, a civilian member of the real estate task force (TF), and a member of the Ministry of Land, Infrastructure and Transport’s Housing Supply Innovation Committee. In 2022, he was appointed president of Korea Land & Housing Corporation. He has been committed to the redevelopment of the first-generation new towns and is focusing on the creation of third-generation new towns based on a "transportation-first, move-in-later" strategy. He is also pursuing digital and design innovation across urban, transportation, and residential sectors. #LH #LeeHanJoon #KoreaLandHousing #urbanplanning #housingpolicy #GTX #realestate #publichousing #smartcity #윤석열정부
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President of Korea Land & Housing Corporation
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The 20th President of the Republic of Korea
Yoon Suk-yeol
- Yoon Suk-yeol is the former president of the Republic of Korea. He was impeached by the National Assembly and removed from office by the Constitutional Court after declaring martial law in his second year in office, and is currently on trial for charges of insurrection. He was born on December 18, 1960, in Seoul as the eldest son among one son and one daughter of Yoon Ki-jung, a former professor at Yonsei University, and Choi Jeong-ja, a former professor at Ewha Womans University. He graduated from ChoongAng High School in Seoul and earned a degree in law from Seoul National University, where he also completed a master’s degree in law at the graduate school. He passed the 33rd bar exam and began his career as a prosecutor at the Daegu District Prosecutors’ Office. He served as Chief of the 2nd and 1st Divisions of the Central Investigation Department at the Supreme Prosecutors’ Office, Head of Special Investigation Division 1 at the Seoul District Prosecutors’ Office, Chief of the Yeoju Branch of the Suwon District Prosecutors’ Office, and later as Chief Prosecutor of the Seoul Central District Prosecutors’ Office. He was appointed Prosecutor General under the Moon Jae-in administration, seen as the right person to support prosecutorial reform. However, following the investigation into former Justice Minister Cho Kuk, he came into conflict with the Moon administration, resigned as Prosecutor General, and entered politics. He was nominated as the presidential candidate of the People Power Party and won the 2022 presidential election. He pushed for four major reforms—pension, healthcare, labor, and education—but faced strong resistance due to his unilateral approach lacking consensus. In the April 2024 general election, seen as a midterm evaluation of his administration, the ruling People Power Party suffered a crushing defeat, winning only 108 seats. On December 3, 2024, he abruptly declared martial law, which failed, leading to his indictment on charges of insurrection and putting him in the greatest crisis of his life. #YoonSukyeol #KoreanPresident #martiallaw #impeachment #insurrectiontrial #Koreanelection #PeoplePowerParty #MoonJaein #judicialreform #Koreanpolitics
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The 20th President of the Republic of Korea
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Chariman of HDC
Chung Mong-gyu
- Chung Mong-gyu is the Chairman and CEO of HDC. As the CEO of HDC, the holding company of the HDC Group, he leads the HDC Group. HDC operates under a co-CEO system with Chung Mong-gyu and CEO Kim Hoe-un. He is devoted to realizing a vision for transforming the group into a comprehensive financial and real estate group based on real estate development. He is also focused on restoring trust in the housing business through the reconstruction of the Gwangju Hwajeong I-Park Apartment (Gwangju Centennial I-Park). He was born on January 14, 1962, in Seoul. He graduated from Yongsan High School in Seoul and earned a degree in Business Administration from Korea University. He then obtained a Master’s degree in Political Science from the University of Oxford in the United Kingdom. He joined Hyundai Motor Company as an assistant manager and was rapidly promoted to become Chairman of Hyundai Motor. However, after control of Hyundai Motor shifted to his cousin Chung Mong-koo, Chairman of Hyundai Motor Group, he moved to HDC Hyundai Development Company with his father, Chairman Chung Se-young, and was appointed Chairman. In 1999, he spun off HDC Hyundai Development Company from Hyundai Group and established the HDC Group, growing it into a corporate group with over KRW 10 trillion (US\$ 7.2 billion) in assets in just 20 years. He has actively pursued mergers and acquisitions, expanding the group's business scope to include petrochemicals, information technology (IT), retail, and musical instrument manufacturing. He is known for being quietly strong, prioritizing practical outcomes over appearances. He has been re-elected four times as President of the Korea Football Association. He is nicknamed the “chameleon.” \#ChungMonggyu #HDC #realestategroup #KoreaFootballAssociation #HyundaiDevelopment #OxfordUniversity #M\&A #ITretail #HwajeongIPark #businessleadership
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Chariman of HDC
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CEO of Megazone Cloud
Yeum Dong-hoon
- Yeum Dong-hoon is the President and CEO of Megazone Cloud. He is leading the expansion of overseas business and the growth of new generative artificial intelligence (AI)-based ventures, drawing on 30 years of experience at global companies. He was born in 1973. He majored in Electrical Engineering and Computer Science at the Massachusetts Institute of Technology (MIT) in the United States. He joined Kearney in the U.S. and worked as a consultant in New York and Hong Kong. After returning to Korea, he co-founded the online solutions and consulting firm Xfinity Korea in 1999. In 2007, he joined Google Korea as Executive Director of Business Development and was appointed CEO in 2011. He moved to Amazon Web Services, where he served as General Manager of the Korean branch, Technical Advisor, Head of Global Channels and Partners, and Amazon GTM (Go-To-Market) Leader. In January 2025, he was appointed as the overall CEO of Megazone Cloud. He is recognized as a giant in the cloud industry. He is praised for having both technical expertise and management capabilities. \#YeumDonghoon #MegazoneCloud #cloudcomputing #generativeAI #MIT #GoogleKorea #AmazonWebServices #techleadership #startupfounder #Koreanexecutive
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CEO of Megazone Cloud
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President of Samsung Medical Center
Park Seung-woo
- Park Seung-woo is the President of Samsung Medical Center. He is leading efforts to build a cutting-edge medical environment by driving hospital digitalization and innovation in smart wards. He is also preparing for the future through the 'Next Normal Process' initiative. He was born in 1962. Park graduated from Seoul National University College of Medicine and earned both his master's and doctoral degrees in medicine from Seoul National University Graduate School. He completed his internship and residency at Seoul National University Hospital, and worked as a fellow and attending physician in internal medicine at both Seoul National University Hospital and Seoul Metropolitan Boramae Hospital, which is run under the university's management. In 1994, he joined Samsung Medical Center when it first opened. He also underwent training at the Mayo Clinic in the United States. At Samsung Medical Center, Park gained comprehensive experience in hospital operations, serving in key roles such as Director of the Information Strategy Office, Director of the QI Office, and Head of Planning and Strategy. These roles paved the way for his eventual appointment as hospital president. He was appointed President in 2021 and was reappointed in January 2025. He is a leading expert in the field of cardiovascular disease. He has served as Chairperson of the Korean Society of Echocardiography, Head of the Smart Health Research Committee of the Korean Society of Cardiology, and Vice President of the Korean Hospital Association. He is credited with laying the foundation for hospital digitalization through initiatives such as the introduction of electronic medical record systems and the development of the “Doctor Smart” app, revolutionizing the hospital's medical service processes. #SamsungMedicalCenter #ParkSeungwoo #hospitaldigitalization #smartward #NextNormalProcess #Koreanhealthcare #electronicmedicalrecords #cardiology #medicalinnovation #hospitalmanagement
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President of Samsung Medical Center
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CEO & Chairman of Atec
Shin Seung-young
- Shin Seung-young(신승영 in Korean) is the chairman and CEO of Atec. He is reorganizing the company around financial automation devices such as ATMs and focusing on expanding into global markets. He was born on January 15, 1955, in Yeongju, North Gyeongsang Province. He graduated from Anjeong Elementary School, Yeongju Middle School, and Yeonggwang High School in Yeongju, then earned a degree in electronic engineering from Yeungnam University. He began his career at GoldStar (now LG Electronics), where he worked in quality control, system inspection, and as a technical manager. He later left the company and, in 1989, founded Atec System (now Atec), a computer maintenance business. Starting with computer maintenance, he expanded into the finished LCD PC market and grew the company into one of the top three suppliers for public procurement. He also serves as CEO of Atec Mobility, AtecCN, and AtecAP, all spin-offs from Atec. He has served as chairman of the Association of High Technology Enterprises. #Atec #ShinSeungyoung #ATM #financialtechnology #globalexpansion #LGalumni #Koreanentrepreneurs #publicprocurement #LCDPC #techleadership
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CEO & Chairman of Atec
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CEO & Vice President of JVM
Lee Dong-hwan
- Lee Dong-hwan(이동환 in Korean) is the Vice President and CEO of JVM. He is accelerating efforts to expand JVM’s pharmacy automation systems into overseas markets and diversify its product portfolio. He was born on February 9, 1969. He earned his bachelor's degree in Chemical Engineering from Pusan National University and went on to receive a master's degree in Intelligent Mechanical Systems from the university’s Graduate Institute of Mechanical Technology. He began his career at LG Electronics, gaining 14 years of experience in manufacturing and quality control. He later served as a senior advisor at LSS Consulting and Korea Standard & Consulting United (Korea Standards Association). After working as the head of production at Sehwa Electronics, he joined JVM in 2011. He held positions including Head of Manufacturing and Quality Division and Executive Director before being appointed CEO in 2023. He is an expert in quality control and has played a key role in enhancing JVM’s productivity and quality competitiveness. He is strongly committed to technological development. #JVM #LeeDonghwan #pharmacyautomation #qualitycontrol #manufacturing #CEO #KoreaStandardsAssociation #PusanNationalUniversity #techleadership #globalexpansion
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CEO & Vice President of JVM
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CEO of Nain Tech
Park Geun-noh
- Park Geun-noh(Korean: 박근노) is the CEO of Nain Tech. He is the founder of Nain Tech, a company that manufactures equipment for secondary battery and display production processes. He is focusing on strengthening new growth drivers such as the recycled battery business, new material MXene, and equipment for semiconductor glass substrates. He was born on February 25, 1970. He graduated from Kyungpook National University with a degree in mechanical engineering. In 1995, he joined LG Display and later moved to DMS, where he served as development team leader. After gaining experience, he worked as a development director at Samhan Electronics before founding Nain Tech, an LG Display equipment supplier, in 2006. By diversifying into secondary battery assembly process equipment, he created a turning point for the company’s growth. #NainTech #ParkGeunnoh #batteryrecycling #MXene #glasssubstrate #semiconductor #LGDisplay #Koreanentrepreneur #displayequipment #secondarybattery
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CEO of Nain Tech
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CEO of Voronoi
Kim Hyun-tae
- Kim Hyun-tae(Korean: 김현태) is the CEO of Voronoi. He leads the company alongside CEO Kim Dae-kwon, who oversees research and development while Kim Hyun-tae is in charge of business operations. He was born in November 1976. He graduated from the Department of Business Administration at Seoul National University and completed an MBA program at the Seoul National University Graduate School of Business. He previously served as head of asset management teams at KB Securities, Hanwha Investment & Securities, and eBEST Investment & Securities. In October 2016, he became the largest shareholder of Voronoi after acquiring a stake in the company. He currently serves as both CEO and chairman of the board. Kim comes from a background in finance with no prior experience in the biotech industry. Under his leadership, Voronoi became recognized as a biotech venture firm known for its ability to identify new drug candidates using its proprietary AI platform and vast database. The company has since grown to achieve a market capitalization of KRW 2 trillion (US$ 1.39 billion). #Voronoi #KimHyuntae #biotech #AIplatform #drugdiscovery #SNUalumni #MBAbusiness #marketcap #pharma #startupCEO
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CEO of Voronoi
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President & CEO of ShinsungST
Ahn Byung-doo
- Ahn Byung-doo(Korean: 안병두) is the President and CEO of ShinsungST. He also serves as Chairman of the Board. He is focusing on expanding into the North American market and advancing the company’s secondary battery products. He was born on March 16, 1968. He graduated from the Department of Business Administration at Kyungnam University. In 1996, he served as Executive Director of Donga Precision. In 2004, he founded Doosung Techwon, the predecessor of ShinsungST. Even after the company was acquired and became a subsidiary of Shinsung Delta Tech, he has continued to lead the company under strong trust. With 35 years of experience, he is a specialist in the field of metal materials, with particular strengths in mold technology. He is known for his resilience and strong drive. #ShinsungST #AhnByungdoo #secondarybattery #NorthAmerica #metalmaterials #CEO #moldtechnology #Koreaindustry #businessleadership #manufacturing
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President & CEO of ShinsungST
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President of MS Company at LG Electronics
Park Hyoung-sei
- Park Hyoung-sei(Korean: 박형세) is the President of the Media Entertainment Solution (formerly Home Entertainment Division) Company at LG Electronics. He is focused on transforming LG Electronics’ TV business into a media- and entertainment-centered service platform. He is expanding the scope of webOS-based products—which were previously focused on smart TVs—to include monitors, digital signage, and in-vehicle infotainment systems. He was born on April 18, 1966. He graduated from John Glenn High School in the United States. He earned a bachelor’s degree in Business Administration from Michigan State University and a master’s degree in Business Administration from Indiana University. He joined LG Electronics and has held various positions, including Head of the DTV North America Group, Head of TV Marketing for North America, Head of IT Marketing, Head of Overseas Sales for the HE Division, and Head of the TV Business Operations Center. He is a marketing expert who has consistently followed a marketing-focused career path. #LG #LGElectronics #webOS #SmartTV #MediaPlatform #EntertainmentBusiness #ParkHyoungsei #TVbusiness #MarketingExpert #Infotainment
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President of MS Company at LG Electronics
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CEO/CTO & President of EcoPro BM
Choi Moon-ho
- Choi Moon-ho is the CEO and President of EcoPro BM. He also serves as the company's Chief Technology Officer (CTO). With a vision of becoming the world’s leading secondary battery materials company, he is focused on increasing production capacity and expanding market share. He was born on April 15, 1974. He graduated from Seoul National University with a degree in Chemical Engineering. He earned a master’s degree in Industrial Engineering from Hanyang University’s Graduate School of Industrial Management and later received a PhD in Energy Engineering from the same university. After working at Zeobuilder and Asin Technology, he joined the EcoPro Group in 2004, where he was responsible for technology development. He served as Executive Vice President of EcoPro’s Battery Materials Division before moving to EcoPro BM as Head of the Development Division and Vice President. In 2021, he was appointed President and CTO. In 2022, he was promoted to Co-CEO and President. With a background as an engineer specializing in cathode materials for secondary batteries, he is dedicated to securing differentiated technological competitiveness and reducing production costs. #EcoProBM #ChoiMoonho #battery #secondarybattery #cathodematerials #technologyleadership #productionexpansion #energystorage #materialsengineering #KoreanCEOs
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CEO/CTO & President of EcoPro BM
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Interim Party Leader and Floor Leader of the Democratic Party of Korea
Park Chan-dae
- Park Chan-dae is serving as both the Interim Party Leader and Floor Leader of the Democratic Party of Korea. He is focused on managing the party stably to secure a victory in the early presidential election scheduled for June 3. He is also striving to strengthen the party’s chances of winning the election by building alliances with other progressive political forces. Park was born on May 10, 1967, in Michuhol-gu, Incheon. He graduated from Dongincheon High School and studied business administration at Inha University. He later earned a master's degree in business administration from the Graduate School of Seoul National University. Park began his career as a certified public accountant at Sedong Accounting Corporation, before moving to Samil PwC. He later worked at the Financial Supervisory Service and Hanmi Accounting Corporation. He entered the National Assembly after winning a seat in the 20th general election, and secured re-election in the 21st and 22nd elections, making him a three-term lawmaker. Park has held various key positions within the Democratic Party, including Spokesperson for the Floor, Senior Vice Chair of the Policy Committee, Chief Deputy Floor Leader for Policy, and Supreme Council Member. In 2024, he was elected as the Floor Leader of the Democratic Party of Korea. In 2025, following the resignation of Lee Jae-myung as party leader, Park assumed the role of Interim Party Leader. He is widely regarded as diligent and good-natured. #ParkChanDae #DemocraticPartyOfKorea #interimleader #SouthKoreaPolitics #earlyelection2025 #KoreanNationalAssembly #Incheon #KoreanProgressivePolitics #KoreanPoliticalLeadership #LeeJaeMyung
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Interim Party Leader and Floor Leader of the Democratic Party of Korea
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Chairman of Kocom
Go Seong-wook
- Go Seong-wook(Korean: 고성욱) is the chairman and founder of Kocom, a smart home systems company. Born on July 14, 1949, in Mungyeong, Gyeongsangbuk-do, Go graduated from Mungyeong High School and earned a degree in electronic engineering from the International University of Japan. After gaining experience at Hwashin Sony and Samyoung Electronics, he established Korea Telecommunication (now Kocom) in 1976. In March 2024, he stepped down as CEO, passing management to his eldest son. For 50 years, he has dedicated himself solely to the home network systems industry. He now views drone detection and neutralization technology as a new growth engine. #Kocom #GoSeongwook #SmartHome #HomeNetwork #DroneTechnology #KoreaTelecommunication #Mungyeong #InternationalUniversityOfJapan #ElectronicsIndustry #LeadershipTransition
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Chairman of Kocom
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CEO & President of Samsung Life Insurance
Hong Won-hak
- Hong Won-hak(Korean: 홍원학) is the CEO and President of Samsung Life Insurance. He is solidifying the company’s position as the top player in the life insurance industry by achieving high profitability in a rapidly evolving market. He was born on July 10, 1964, in Seoul. He graduated from Yongsan Technical High School and earned a degree in Japanese Language and Literature from Korea University. He began his career at Samsung Life Insurance and later served as Managing Director of the Business Strategy Team at Samsung Electronics. After returning to Samsung Life Insurance, he was promoted to Executive Vice President, serving as Head of the Human Resources Team and later as Head of the Specialized Sales Division. In 2020, he transferred to Samsung Fire & Marine Insurance and was appointed CEO and President in 2021. In March 2024, he was appointed CEO and President of Samsung Life Insurance. Given that Samsung Fire & Marine Insurance, where he most recently served as CEO, has since become a subsidiary, he now faces the task of improving performance through synergy creation. He is known for his calm and meticulous personality, and his leadership style emphasizes careful and deliberate decision-making. \#Samsung #SamsungLife #HongWonhak #insuranceindustry #KoreaUniversity #executiveprofile #financialservices #SamsungFire #businessstrategy #CEOprofile
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CEO & President of Samsung Life Insurance
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CEO & President of Yuanta Securities Korea
Lo Chih-peng
- Lo Chih-peng (羅志鵬) is the President and CEO of Yuanta Securities Korea. He was born in 1969 in Taiwan. After building a career in Hong Kong's financial industry, he changed his nationality to Hong Kong. His English name is Arthur Lo. Lo graduated from National Taiwan University and later earned an MBA from the Wharton School of the University of Pennsylvania. Throughout his career, he has held positions at J.P. Morgan, Credit Suisse First Boston, Oriental Excellent Securities, Nomura Securities, Pacific Star New York Hedge Fund, Yuanta Securities, KGI Securities, Elitimes Asset Management, and Sunshine Asset Management. Leveraging the vast network of Yuanta Group, one of Taiwan’s leading financial conglomerates, Lo is focused on developing Yuanta Securities into a specialized Asian investment firm. #Yuanta #LoChihpeng #ArthurLo #YuantaSecurities #TaiwanFinance #WhartonMBA #AsiaInvestment #HongKongFinance #KoreanSecurities #GlobalFinanceCareer
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CEO & President of Yuanta Securities Korea
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President & Chairperson of The Korean Federation of Community Credit Cooperatives
Kim In
- Kim In(Korean: 김인) is the President of the Korean Federation of Community Credit Cooperatives (KFCC). He is striving to restore public trust in the Community Credit Cooperatives, which has been severely damaged by illicit loan practices and a bribery scandal involving the former president. He was born on November 6, 1952. Kim graduated from Kyungbock High School and the College of Education at Seoul National University. He previously served as the Chairperson of Namdaemun Market Corporation and as the Chairperson of the Namdaemun Community Credit Cooperative. He became Vice President of the KFCC, then served as Acting President, and was ultimately elected as President in December 2023. Having been elected through a by-election following the resignation of former President Park Cha-hoon, Kim has focused his efforts on stabilizing the organization. In light of issues such as a bank run and financial instability within the cooperatives, he is pushing forward with organizational reform through restructuring measures and a direct election system for chairperson positions. #KimIn #KFCC #CommunityCredit #KoreaFinance #CreditUnion #FinancialReform #BankRun #LeadershipChange #SouthKorea #PublicTrust
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President & Chairperson of The Korean Federation of Community Credit Cooperatives
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General Director of Severance Hospital
Lee Kang-young
- Lee Kang-young(Korean: 이강영) is the General Director of Severance Hospital. He is focusing on transforming the hospital system into a specialized medical center for critical and highly complex treatments, led by expert physicians. He was born in 1967. He graduated from Kyungmoon High School in Seoul and earned his medical degree from Yonsei University College of Medicine. He received a master’s degree in medicine from Yonsei University Graduate School and a PhD in pathology from Korea University Graduate School. He completed his residency at Yonsei University's Severance Hospital and later worked as a researcher at the University of Texas MD Anderson Cancer Center in the United States. In March 2012, he was appointed as a professor in the Department of Colorectal Surgery at Yonsei University College of Medicine. He has served as the head of the Colorectal Cancer Clinic at Gangnam Severance Hospital and as director of the Medical Quality Management Office at Severance Hospital. He later held key leadership positions at Yonsei University Health System, including Director of Planning and Coordination, Director of Future Strategy, and Head of the Mid-to-Long Term Project Division, where he played a key role in shaping both the present and future management of the hospital. In April 2024, he was appointed General Director of Severance Hospital for a two-year term. He is regarded as a pioneer in the field of robotic surgery for colorectal cancer in South Korea. He currently serves as President of the Korean Surgical Society.
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General Director of Severance Hospital
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CEO of Dentis
Sim Gi-bong
- Sim Gi-bong(Korean: 심기봉) is the CEO of Dentis. He is focused on transforming Dentis into a global healthcare company, concentrating efforts on expanding its global footprint. He was born on February 15, 1969, in Pohang, North Gyeongsang Province. He graduated from Pusan National University with a degree in Inorganic Materials Engineering. He began his career at Shinhung, a company that manufactures dental equipment, where he served as Sales Team Leader. After gaining experience, he established Biocom, a company specializing in the distribution of dental implants. In 2005, he founded Dentis and expanded the business to include the manufacturing of dental implants. Sim is a self-made entrepreneur who rose from a sales position to become the owner of a dental medical device company. He embraces the management philosophy of "benefiting oneself by benefiting others" (利他自利). He also serves as Chairman of the Daegu West Crime Victim Support Center. Keywords: #SimGiBong #Dentis #dentalimplants #healthcareCEO #selfmadeentrepreneur #dentaldevices #globalexpansion #PusanNationalUniversity #SouthKoreahealthcare #Biocom
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CEO of Dentis
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Chairman of Seoul Auction
Lee Ho-jae
- Lee Ho-jae is the chairman of Seoul Auction and also serves as chairman of Gana Art. He is the founder of Seoul Auction, a leading art auction house, and Gana Art Gallery, a prominent art gallery. He has been driving the expansion of auction categories—including luxury goods, automobiles, and real estate—and working to invigorate the auction market. He was born on November 11, 1954. He graduated from Kyungbok High School in Seoul and earned a degree in business administration from Kyung Hee University. Lee began his career in art sales at Goryeo Gallery before founding Gana Gallery (now Gana Art Gallery) in 1983, where he became CEO. In response to the Asian financial crisis, he established Seoul Kyungmae (now Seoul Auction) in 1998 to revitalize the art distribution market. He was appointed chairman of Seoul Auction in 2014. He is widely recognized as a pioneer who led the industrialization of Korea's art market. #LeeHoJae #SeoulAuction #GanaArt #KoreanArtMarket #ArtIndustryPioneer #AuctionExpansion #LuxuryAuction #ArtEntrepreneur #ContemporaryArt #CulturalLeadership
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Chairman of Seoul Auction
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Co-CEO of ISC
Kim Jeong-ryeol
- Kim Jeong-ryeol is Co-CEO of ISC. ISC is a subsidiary of SKC specializing in semiconductor test solutions. He leads the company alongside fellow Co-CEO Yoo Ji-han. He is accelerating efforts to pursue mergers and acquisitions (M&A) aimed at strengthening competitiveness in the semiconductor back-end process sector. He was born on February 6, 1962. He graduated from Kyungpook National University with a degree in electronic engineering. After working at Hyundai Electronics (now SK hynix) and DYL Tech, he joined ISC on November 3, 2003. He was appointed CEO in 2010. He later moved to JMT Inc. in Japan, where he served as CEO, before returning to ISC as CEO in 2021. He is a professional executive who has led ISC for 22 years. He succeeded in localizing key consumable components for semiconductors, a market previously monopolized by Japan. #ISC #KimJeongryeol #SKC #semiconductor #ISCleadership #Koreansemiconductor #M&A #JMT #SKhynix #electronicsindustry
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Co-CEO of ISC
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CEO of SOOP
Seo Soo-gil
- Seo Soo-gil is the Co-CEO of SOOP. He leads SOOP as an owner alongside Chief Strategy Officer (CSO) Choi Young-woo. He faces the task of dispelling doubts about SOOP’s business operations and management capabilities, following the emergence of accounting fraud allegations and issues related to the promotion of explicit and gambling-like content in 2024. He was born on March 9, 1967, in Goesan, Chungcheongbuk-do. He graduated from Hwanil High School in Seoul and earned a degree in Aerospace Engineering from Seoul National University. He completed an MBA program at the Wharton School of the University of Pennsylvania in the United States. In 1997, he worked as a consultant at Boston Consulting Group in the United States before being appointed CEO of Itekstyle. He was later recruited as Vice President of the consulting firm Bellmore Partners (Clayman) and subsequently served as Executive Director of the Planning Division at SK C&C. He later served as CEO of Actoz Soft and CEO of Wemade Entertainment. In 2011, he acquired Nowcom, the predecessor of SOOP, and became its CEO. He renamed the company to AfreecaTV and served as CEO of AfreecaTV until 2021. He returned as CEO in 2024. He is credited with creating the ecosystem for the internet-based one-person broadcasting market in Korea. #SeoSooGil #SOOP #AfreecaTV #InternetBroadcasting #KoreanTech #BusinessLeadership #WhartonSchool #SeoulNationalUniversity #CorporateTurnaround #MediaIndustry
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CEO of SOOP
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CEO of Kolon TissueGene
Noh Moon-jong
- Noh Moon-jong is the CEO of Kolon TissueGene. He faces the challenge of successfully leading the U.S. clinical trials and product approval of TG-C, a cell and gene therapy for osteoarthritis, which is the company’s only pipeline candidate. He was born on March 12, 1968. He graduated from Seoul National University with a degree in Microbiology. He earned both his master’s and doctoral degrees in Molecular Biology from KAIST (Korea Advanced Institute of Science and Technology). He joined Kolon Central Research Institute, where he worked as a senior researcher and head of the Biotechnology Research Lab. He was dispatched to Kolon TissueGene and participated in the research and development of TG-C (U.S. development name for Invossa), a treatment for knee osteoarthritis. He served as Vice President overseeing R&D and as Chief Technology Officer (CTO) of Kolon TissueGene. In 2019, he was appointed CEO of Kolon TissueGene. He is leading the clinical trials of TG-C. He is the only remaining researcher from the early development team of Invossa at TissueGene. He has a deep attachment to the TG-C development project. #NohMoonjong #KolonTissueGene #TGCTherapy #Invossa #OsteoarthritisTreatment #ClinicalTrials #BiotechLeadership #KAIST #SNU #Genetherapy
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CEO of Kolon TissueGene
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CEO of Resort Group at Samsung C&T
Jeong Hai-lin
- Jeong Hai-lin is the CEO and President of Resort Group at Samsung C&T and the CEO and President of Samsung Welstory. He aims to focus on external growth. To achieve this, he is concentrating on expanding overseas business and strengthening solution capabilities. He was born on November 21, 1964. He graduated from Korea University with a degree in Economics. He joined Samsung Electronics in 1990, served as Head of the Management Support Group, and later worked as Executive Director at Samsung Group's Future Strategy Office. After transferring to Samsung C&T to work in the Corporate Planning Office, he returned to Samsung Electronics, where he served as Head of the Management Support Group of the Mobile Business Division Support Team and Executive Vice President in charge of the Business Support Task Force. In 2023, he was appointed CEO of Resort Group at Samsung C&T and CEO of Samsung Welstory. He is a management expert who has held key positions at the Future Strategy Office and the Business Support Task Force, both regarded as the command centers of Samsung Group and Samsung Electronics. #JeongHaiLin #SamsungCT #SamsungWelstory #SamsungElectronics #FutureStrategyOffice #BusinessSupportTaskForce #KoreaUniversity #ResortGroup #ManagementExpert #SamsungGroup
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CEO of Resort Group at Samsung C&T
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Chairman of Dongwon Group
Kim Nam-jung
- Kim Nam-jung is the Chairman of Dongwon Group. He is actively investing to discover new growth engines for Dongwon Group beyond the tuna industry. He was born on January 21, 1973, in Seoul, as the youngest son among two sons and two daughters of Kim Jae-chul, Honorary Chairman of Dongwon Group. He graduated from the Department of Sociology at Korea University and completed an MBA program at the Ross School of Business, University of Michigan. After joining Dongwon Industries, he worked at Dongwon Enterprise and Dongwon F&B, then served as Head of Management Support at Dongwon Industries and Dongwon Systems. After working as Deputy General Manager of the Construction Division at Dongwon Systems, he was appointed CEO of Dongwon Enterprise in 2011. He was promoted to Vice Chairman in 2014 and became Chairman in 2024, after ten years. While serving as Vice Chairman, he led more than ten mergers and acquisitions and technology investments, building the group's four major value chains spanning fisheries, food, materials, and logistics. He is known for being quiet and modest, showing a meticulous working style. #KimNamjung #DongwonGroup #Chairman #Fisheries #FoodIndustry #Logistics #MaterialsBusiness #MergersAndAcquisitions #BusinessLeadership #KoreaUniversity #UniversityofMichigan
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Chairman of Dongwon Group
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CEO of Zeus
Lee Jong-woo
- Lee Jong-woo is the CEO of Zeus. Together with CEO Hwang Ha-seop, he leads Zeus as a co-CEO. He is focusing on securing a long-term growth foundation by creating synergy among semiconductors, displays, and industrial robots. He was born on September 5, 1971, as the eldest son among one son and two daughters of Lee Dong-ak, the founder of Zeus. He graduated from the College of Engineering at the University of Michigan in the United States, majoring in Electrical and Computer Engineering, and received his master's degree from the same university. He also completed an MBA program at KAIST Graduate School of Business. In 1998, he started his career as a test design engineer at MACOM, an electronic components company in Massachusetts, USA. He then worked as a software engineer at Magme Design Automation in Cupertino, California, and as a product development engineer at Cadence Design Systems in San Jose, California. After returning to Korea, he joined Zeus, which was managed by his father, and completed seven years of management training before being appointed CEO of Zeus at the age of 41 in 2011. He aims to transform Zeus into a global engineering company. He spares no investment in people. #LeeJongwoo #Zeus #Semiconductor #Display #IndustrialRobots #UniversityofMichigan #KAIST #GlobalEngineeringCompany #Leadership #ManagementTraining
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CEO of Zeus
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CEO of The Pinkfong Company
Kim Min-seok
- Kim Min-seok is the CEO of The Pinkfong Company. He is the founder of The Pinkfong Company, a character-based content IP (intellectual property) company famous for "Baby Shark." He is focusing on expanding into the global market. He was born on April 10, 1981, as the eldest son among two sons of Kim Jin-yong, Chairman and CEO of Samsung Publishing. He graduated from the Department of Chemical Engineering at Yonsei University. After working in game development and service planning at Nexon and NHN, he moved to Samsung Publishing, founded by his grandfather, in 2008. While creating mobile apps at Samsung Publishing, he saw the growth potential of infant and toddler content and went independent to found SmartStudy, now The Pinkfong Company. He gained worldwide attention by making character IPs such as Pinkfong, Baby Shark, Bebefinn, and Silly Duck major hits. #KimMinseok #ThePinkfongCompany #BabyShark #Pinkfong #Bebefinn #SillyDuck #GlobalExpansion #ContentIP #SamsungPublishing #SmartStudy
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CEO of The Pinkfong Company
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Vice Chairman of Aekyung Industrial
Chai Dong-seok
- Chai Dong-seok is the Vice Chairman and CEO of Aekyung Industrial. He also serves as a Non-executive Director of AK Holdings and Aekyung AMC. He was born on May 18, 1964, in Seoul, as the second son of Chai Mong-in, the founder of Aekyung Group, and Jang Young-shin, the chairperson of Aekyung Group. He graduated from the Department of Philosophy at Sungkyunkwan University. He completed his MBA at the School of Business of George Washington University in the United States. In 2001, he took his first step into Aekyung Group as the CEO of AK&F and later served as the Vice Chairman overseeing distribution and real estate development sectors within Aekyung Group. In 2017, he was appointed as the Vice Chairman and CEO of Aekyung Industrial. Together with President and CEO Kim Sang-jun, who was appointed in 2024, he oversees the management of Aekyung Industrial. He is known for his strong marketing skills. He developed Luna and Age 20’s into Aekyung Industrial’s flagship cosmetics brands. #ChaiDongseok #AekyungIndustrial #AekyungGroup #AKHoldings #AekyungAMC #GeorgeWashingtonUniversity #SungkyunkwanUniversity #Age20s #Luna #KBeauty
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Vice Chairman of Aekyung Industrial
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CEO of Hyundai Glovis
Lee Kyoo-bok
- Lee Kyoo-bok is the President and CEO of Hyundai Glovis. He also serves as the Chairman of the Board of Directors. He is focusing his efforts on enhancing corporate value by promoting new businesses such as smart logistics solutions and battery recycling. He was born on April 25, 1968, in Busan. He graduated from Nakdong High School in Busan and the Department of Economics at Seoul National University. He joined Hyundai Motor Company, where he served as Head of Sales in France, CFO of the production subsidiary in the Americas, and Head of the Process Innovation Division. He was appointed CEO of Hyundai Glovis in 2023. He is a strategic planning expert with a background in finance and overseas sales. He is credited with laying the foundation for a “profitability-focused regional management system” at Hyundai Motor Company. #LeeKyooBok #HyundaiGlovis #BatteryRecycling #SmartLogistics #HyundaiMotor #CEO #CFO #GlobalBusiness #StrategicPlanning #ProfitabilityManagement
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CEO of Hyundai Glovis
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CEO of Coway
Seo Jang-won
- Seo Jang-won is the CEO of Coway. After Netmarble acquired Coway, he completed the integration process and took over as CEO, leading the company to achieve its first KRW 4 trillion (US$ 2.9 billion) in revenue in the industry. He was born on May 8, 1970. He graduated from Yeouido High School in Seoul and earned a degree in economics from Westminster University in the United States. After graduating from the University of Connecticut School of Law, he obtained his license to practice law and returned to Korea, where he worked as a senior attorney at law firm Sejong. In 2015, he was recruited by Bang Jun-hyuk and joined Netmarble, where he successfully led acquisitions of Jam City, the world’s second-largest puzzle game developer, and U.S. game company Kabam. He served as chairman of the Netmarble Cultural Foundation and as executive vice president in charge of investment strategy and communications. Following the acquisition of Coway in 2020, he served as CFO, co-CEO and executive vice president, and president before being appointed sole CEO and president in January 2023. Building on the milestone of exceeding KRW 1 trillion (US$ 720.9 million) in revenue in Malaysia, he is focusing on expanding into new markets in Southeast Asia, Europe, and Japan. #SeoJangwon #Coway #Netmarble #globalexpansion #BangJunhyuk #JamCity #Kabam #CFOtoCEO #Koreabusiness #homeappliances
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CEO of Coway
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Chairman of the Board at Com2uS Holdings
Song Byung-joon
- Song Byung-joon is the chairman of the board at Com2uS Holdings. He also serves as the chairman of the board at Com2uS and WYSIWYG Studios. He is focusing on expanding business areas through strategic investments in order to grow into a global content and platform company. He was born on January 8, 1976, in Daegu. He graduated from the Department of Electrical Engineering at Seoul National University. He founded Fitsnet (now Com2uS Holdings) and dedicated himself to developing mobile games for feature phones. After renaming the company to Gamevil, he acquired Com2uS, which was considered one of the two major players in mobile gaming alongside Gamevil, thereby expanding the company’s scale. He is broadening his scope into content areas with companies like WYSIWYG Studios. He is also interested in expanding the intellectual properties (IP) of core revenue sources such as “Summoners War” and “Com2uS Pro Baseball,” and in discovering new lineups by expanding other intellectual properties. He serves as the chairman of the Korea Venture Business Association. He is known for his determination and strong competitive spirit. #SongByungjoon #Com2uSHoldings #Com2uS #WYSIWYGStudios #SummonersWar #Gamevil #KoreaVentureBusinessAssociation #mobilegames #IPbusiness #Kcontent
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Chairman of the Board at Com2uS Holdings
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Minister of Education
Lee Ju-ho
- Lee Ju-ho is the Deputy Prime Minister for Social Affairs and Minister of Education. Except for Park Soon-ae, the former Minister of Education who voluntarily resigned just 35 days after taking office, he is effectively the first education minister under the Yoon Suk-yeol administration. He is leading the Ministry of Education during a government without a president, following the Constitutional Court's decision to remove former President Yoon Suk-yeol from office. He must accelerate efforts to resolve legislative conflicts while also addressing the numerous pending education reform issues. He was born on February 17, 1961, in Chilgok, Gyeongsangbuk-do. He graduated from Daegu Chunggoo High School and Seoul National University with a degree in international economics. He earned a master’s degree in economics from Seoul National University Graduate School and a Ph.D. in economics from Cornell University in the United States. As a professor at the Korea Development Institute (KDI), he specialized in vocational education and employment policy at both KDI and the KDI School of Public Policy and Management, establishing himself as an expert in education. Under the Lee Myung-bak administration, he served as the first Senior Secretary for Education, Science and Culture, the First Vice Minister of the Ministry of Education, Science and Technology, and later as the Minister of Education, Science and Technology, taking the lead in shaping education policy. In the Yoon Suk-yeol administration, he was appointed Deputy Prime Minister for Social Affairs and Minister of Education in November 2022. He emphasizes performance and holds the belief that education should be based on autonomy and competition. He is known for being meticulous and highly driven, though some say he lacks interpersonal charm. #LeeJuho #KoreanEducationMinister #EducationReform #YoonSukyeol #KDI #KoreaDevelopmentInstitute #DeputyPrimeMinister #VocationalEducation #CornellUniversity #KoreanPolitics
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Minister of Education
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CEO of CJ Logistics
Shin Young-soo
- Shin Young-soo is the CEO of CJ Logistics. He aims to strengthen the company’s competitive position through investments in facility infrastructure and advanced logistics technologies. He is also promoting the construction of a large-scale logistics center in the United States and the public listing of the Indian subsidiary, CJ Darcl Logistics, on the local stock exchange. He was born on October 28, 1966. He graduated from the Department of Agricultural Education at Seoul National University and completed the MBA program at Sogang University Graduate School of Business. He began his career at CheilJedang, later moving to CJ O Shopping where he worked in human resources. He then returned to CJ CheilJedang, serving as HR team leader, deputy director of the Talent Development Center, and head of HR support for the BIO division. In 2019, he was appointed CEO of CJ Feed & Care. At CJ Logistics, he served as CEO of the Parcel and E-commerce division, and concurrently as CEO of the Korea Business Division and the Global Business Division. In February 2024, he was appointed CEO of CJ Logistics. He is known for his enthusiasm, determination, and strong drive to push initiatives forward. He also serves as the chairman of the Korea Integrated Logistics Association. #ShinYoungsoo #CJLogistics #CJDarclLogistics #logisticsCEO #globallogistics #USlogisticscenter #logisticsinvestment #CJGroup #Koreanbusinessleader #KoreaIntegratedLogisticsAssociation
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CEO of CJ Logistics
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Chairman of Jahwa Electronics
Kim Sang-myeon
- Kim Sang-myeon is the chairman and CEO of Jahwa Electronics. Together with his son, Kim Chan-yong, who serves as CEO and president, he leads the company under a co-CEO system. He is focusing on securing new clients such as Apple in the United States and expanding production capacity. He was born on February 10, 1946, in Cheongwon-gun, Chungcheongbuk-do. He graduated from Cheongju Technical High School and earned a degree in Metallurgical Engineering from Hanyang University. He began his career at Poongsan Metal, then worked as a researcher at KAIST (Korea Advanced Institute of Science and Technology) and as a lecturer in the Department of Materials Engineering at Kyungpook National University before founding Jahwa Electronics in 1981. He became chairman and CEO of Jahwa Electronics in 2012. He is known as a workaholic who loves working so much that he is often called one. He prefers to be known as an engineer rather than a businessman. He localized the PTC Thermistor, which had been entirely imported from Japan, using proprietary technology. By leveraging core technology in the magnet field, he has continuously expanded the business and grown Jahwa Electronics into a company with KRW 600 billion (US$ 432.5 million) in revenue. #KimSangmyeon #JahwaElectronics #Koreanbusinessleader #magnettechnology #PTCthermistor #localization #Applepartner #engineeringCEO #KRW600billion #Koreanindustryleader
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Chairman of Jahwa Electronics
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Chairman of Creverse
Kim Young-hwa
- Kim Young-hwa is the Chairman of Creverse. He is the founder of Creverse, which began as a language academy business with institutions such as Cheongdam Language Institute and April Language Institute, and now operates educational services both domestically and internationally. He was born on April 5, 1952. He graduated from the Department of Philosophy at Seoul National University and earned a master’s degree in philosophy from the graduate school of the same university. After working as an English exam preparation instructor, he felt a lingering attachment to academics and went to Germany to study philosophy at the Free University of Berlin. Realizing that academia was not his calling, he returned to Korea and founded Cheongdam Language Institute (now Creverse) in 1998. In 2022, he merged with CMS Edu, a company specializing in math and integrated education, and launched Creverse. He is focusing his efforts on expanding the business in the global market, particularly in the Asian region. #KimYounghwa #Creverse #educationbusiness #CheongdamLanguageInstitute #AprilLanguageInstitute #CMSedu #Koreanentrepreneur #philosophymajor #FreeUniversityofBerlin #globalexpansion
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Chairman of Creverse
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CEO of SMEC
Choi Young-sup
- Choi Young-sup is the CEO of SMEC. He is leading the acquisition of Hyundai WIA, the second-largest company in South Korea’s machine tool industry, as SMEC aims to solidify its position among the top three domestic firms. He is focusing on strengthening both the company’s scale and financial soundness. He was born on January 9, 1969. He graduated from Dongguk University with a degree in accounting. Choi began his career in the finance team at New Core and later worked in the corporate planning department at Unix Electronics. In 2009, he joined SMEC as Chief Financial Officer (CFO). He was appointed CEO of SMEC in 2015. Choi led a reverse merger through M&A and became the largest shareholder in 2023 by acquiring the shares of the major shareholder. He views battery recycling as a new growth engine and is actively working on technological development and market expansion. He also serves as CEO of the subsidiary, Techssen. #SMEC #ChoiYoungsup #HyundaiWIA #machineTools #reverseMerger #batteryRecycling #Techssen #SouthKoreaIndustry #corporateLeadership #manufacturingInnovation
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CEO of SMEC
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Chairman of LS Group
Koo Ja-eun
- Koo Ja-eun is the chairman of LS Group. He emphasizes a so-called “ambidextrous management” approach, aiming to both strengthen the group’s main business in electric power equipment and foster future growth areas—namely batteries, electric vehicles, and semiconductors. In line with the group's tradition of family management, he will lead LS Group until 2029, serving as a bridge into the third generation of ownership leadership. Born on October 18, 1964, in Seoul, he is the eldest son of honorary chairman Koo Doo-hoe of Yesco Holdings. He is part of the second generation of business leaders in the extended LG family and a nephew of LG Group’s founder, Koo In-hwoi. He graduated from the affiliated high school of Hongik University in Seoul, then studied business administration at Benedictine University in the United States. He also completed an MBA program at the University of Chicago Booth School of Business. He began his career at LG Caltex Oil and later worked at LG Electronics before the group's separation. He has since held positions at LS Cable & System, LS-Nikko Copper (now LSMnM), LS Cable, and LS Mtron before becoming chairman of LS Group. He has ushered in an era where LS Group achieves over 1 trillion won in annual operating profit by riding the wave of global power grid expansion. Known for his soft charisma, he places strong emphasis on field-oriented management and personally engages with employees. His prowess in overseas sales has been recognized, and he is fluent in English, Chinese, and Japanese. He is known for his approachable personality, which is rare among business owners. At one point, he made headlines for keeping bees in his backyard. #KooJaeEun #LSGroup #AmbidextrousManagement #BatteryEVSemiconductor #LGFamily #GlobalLeadership #SoftCharisma #FieldManagement #Multilingual #BeekeepingChairman
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Chairman of LS Group
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CEO of Kumho Petrochemical
Park Jun-kyung
- Park Jun-kyung is the President and CEO of Kumho Petro Chemical. He is a third-generation business executive of the Kumho Petro Chemical Group. He is focused on strengthening the company’s eco-friendly portfolio to foster future core businesses and solidify its position as a leading company in the industry. Born on April 30, 1978, he is the eldest son of Park Chan-koo, Chairman of Kumho Petro Chemical Group. He graduated from Goojung High School in Seoul and studied Environmental Engineering at Korea University. In 2007, he began his career as a deputy general manager at Kumho Tire. He later moved to Kumho Petro Chemical, where he gained experience primarily in sales, serving as Managing Director of Resin Sales and then as Executive Vice President and Head of the Sales Division. In December 2022, he was appointed President and CEO of Kumho Petro Chemical. He is known for his humility and places great importance on maintaining horizontal relationships. #ParkJunkyung #KumhoPetroChemical #KoreanBusinessLeader #ThirdGenerationCEO #EcoFriendlyBusiness #EnvironmentalEngineering #KoreaUniversity #KumhoGroup #ChemicalIndustry #LeadershipStyle
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CEO of Kumho Petrochemical
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Chairman of The Korean Federation of Savings Banks
Oh Hwa-kyung
- Oh Hwa-kyung is the chairman of the Korea Federation of Savings Banks. He is committed to improving the soundness of the savings bank industry and restoring trust from the market and regulatory authorities. He is focused on diversifying the revenue channels of savings banks and enhancing their digital capabilities. He was born on January 15, 1960, in Uijeongbu, Gyeonggi Province. He graduated from Uijeongbu High School and majored in Accounting at Sungkyunkwan University. He earned a master's degree in Financial Management from the Korea University Graduate School of Business. He began his career in the financial sector as an industrial analyst at Seoul Securities. He then worked at HSBC Korea and HSBC China, and later served as Vice President of Aju Capital. In 2012, he became CEO of Aju Savings Bank and subsequently held CEO positions at Aju Capital and Hana Savings Bank. In 2022, he became the first person from within the savings bank industry to be appointed chairman of the Korea Federation of Savings Banks. He was re-elected in 2025. He actively communicates with member institutions. He considers organizational management and employee motivation as key elements of business leadership. #OhHwaKyung #SavingsBank #KoreaFederation #FinancialLeadership #DigitalFinance #RevenueDiversification #OrganizationalManagement #EmployeeMotivation
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Chairman of The Korean Federation of Savings Banks
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CEO of ASTK
Kim Doo-il
- Kim Doo-il is the CEO of ASTK and also serves as Head of the CR (Corporate Restructuring) Group at UAMCO. He is focused on normalizing ASTK’s management and driving performance growth. To achieve this, he is putting effort into expanding the company’s business portfolio. He was born on May 25, 1974. He graduated from the Department of Business Administration at Korea University and worked as a certified public accountant at Samil PwC. In 2009, he joined UAMCO (United Asset Management Company), serving as Head of the CR Group and Executive Vice President. After UAMCO acquired ASTK, he was appointed CEO of ASTK in 2024. He is an expert in corporate restructuring and rehabilitation. He is known for his bold decisiveness and strong confidence in technology-based competitiveness. He is regarded as a promising figure expected to establish ASTK’s presence in the global aviation market. #KimDooil #ASTK #UAMCO #corporaterestructuring #aerospaceindustry #KoreanCEOs #businessrevival #KoreaUniversity #accountingexpert #globalaviation
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CEO of ASTK
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President of Ajou University
Choi Kee-choo
- Choi Kee-choo is the President of Ajou University. He was born on August 22, 1961 (lunar calendar) in Sangju, North Gyeongsang Province. He graduated from Wooshin High School and earned his bachelor's degree in Civil Engineering from Seoul National University. He received a master's degree in Transportation Engineering from the graduate school of Seoul National University and a Ph.D. in Transportation Planning from the graduate school of the University of Illinois in the United States. After working as a Senior Researcher in the Urban Transportation Division at the Seoul Development Institute, he was appointed Professor in the Department of Environmental and Urban Engineering at Ajou University in 1994. He also served as Director of the Center for TOD-Based Sustainable Urban Transportation Research. He was elected President of Ajou University in 2022. Externally, he served as President of the Korean Society of Transportation and as Chairman of the Metropolitan Transport Commission. As a transportation engineer, he is a member of the National Academy of Engineering of Korea. #ChoiKeechoo #AjouUniversity #transportationengineering #urbanplanning #SeoulNationalUniversity #UniversityofIllinois #Koreanacademia #sustainabletransport #Koreanuniversitypresident #civilengineering
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President of Ajou University
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CEO of SK geo centric
Choi Ahn-seop
- Choi Ahn-seop is the President and CEO of SK geo centric. He is focusing his capabilities on acquiring next-generation eco-friendly chemical technologies and transforming the business structure to survive in global competition. He was born in February 1972. He graduated from the Department of Chemical Engineering at Yonsei University and received a master's degree in Chemical Engineering from the graduate school of Yonsei University. He joined SK Group in 1996. Coming from an engineering background, he served as Head of Optimal Operation at SK General Chemical. After the company was renamed SK geo centric, he took on the role of Head of O&D (Optimization and Digital Transformation). He was promoted to Executive Vice President as Head of the Strategy Division and later served as Head of the Materials Business Division before being appointed President and CEO in October 2024. He is dedicated to transforming SK geo centric from a petrochemical company into an eco-friendly company through efforts such as practicing a circular economy and developing biodegradable plastics. He is regarded as a technology-driven manager with experience and capabilities in developing core products. #ChoiAhnseop #SKgeocentric #chemicalengineering #circularEconomy #biodegradableplastics #KoreanCEOs #ecoFriendlyBusiness #greenChemistry #SKGroup #chemicalindustry
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CEO of SK geo centric
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President of Asan Medical Center
Park Seung-il
- Park Seung-il is the President of Asan Medical Center. He was appointed as hospital president in 2021 and succeeded in being reappointed for a third term in 2025. With this milestone, he plans to focus on organizational innovation to lead new challenges. He was born on July 14, 1954. He graduated from Seoul National University with a degree in medicine and earned both his master’s and doctoral degrees in medicine from the university’s graduate school. He completed his residency at Seoul National University Hospital and worked as a fellow at Asan Medical Center. In 1994, he was appointed to the Department of Thoracic and Cardiovascular Surgery at the University of Ulsan College of Medicine. He later served as a research fellow at Harvard Medical School, and held various positions at Asan Medical Center including Director of the Tissue Bank, Director of Inpatient Services in the Medical Support Division, Director of Planning and Coordination, and Vice President for Medical Affairs. He became President of Asan Medical Center in 2021 and was reappointed in 2023 and 2025. He is a renowned authority in lung transplantation, having successfully performed Korea’s first living-donor lung transplant surgery in 2017. He is also credited with contributing to the advancement of Asan Medical Center’s IT systems. He serves as Vice President and Chair of the Public Relations Committee for the Korean Hospital Association. #ParkSeungIl #AsanMedicalCenter #HospitalPresident #LungTransplant #MedicalLeadership #KoreanHealthcare #SeoulNationalUniversity #HarvardMedicalSchool #HealthcareInnovation #KoreanHospitalAssociation
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President of Asan Medical Center
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CEO of Kiwoom Securities
Eom Ju-sung
- Eom Ju-sung is the President and CEO of Kiwoom Securities. He is focusing his capabilities on obtaining a license as a mega investment bank (IB) and entering the short-term note issuance business. He was born on July 21, 1968, in Seoul. He graduated from Siheung High School in Seoul (currently Geumcheon High School) and majored in Applied Statistics at Yonsei University. He earned a master's degree in Investment Management from the KDI School of Public Policy and Management. He began his career at Daewoo Securities (now Mirae Asset Securities). After joining Kiwoom Securities in 2007, he went through the PI (Proprietary Investment) Division, Investment Management Division, and Strategic Planning Division before being appointed President and CEO in January 2024. He is an expert in the field of Proprietary Investment (PI). He is highly knowledgeable in market trends and numbers. He is credited with improving Kiwoom Securities' performance and strengthening its internal controls. #EomJuSung #KiwoomSecurities #CEOProfile #InvestmentBanking #ProprietaryInvestment #YonseiUniversity #KDIschool #FinanceLeadership #KoreanFinance #InternalControl
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CEO of Kiwoom Securities
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President of KT&G
Bang Kyung-man
- Bang Kyung-man is the President and CEO of KT&G. He is focusing on boosting the performance of KT&G’s three core businesses: overseas cigarettes, e-cigarettes, and health supplements. He was born on January 28, 1971. He graduated from the Department of Economics at Hankuk University of Foreign Studies and completed an MBA program at the University of New Hampshire Graduate School of Business in the United States. He joined Korea Tobacco & Ginseng Corporation, the predecessor of KT&G, through an open recruitment process in 1998, and held various roles including Head of Brand Division, Head of Global Business Division, Head of Strategic Planning Division, and Head of Business Division. Having worked across the company’s key areas, he is regarded as an expert in the tobacco industry. Immediately before being appointed as President and CEO, he served as Senior Executive Vice President, playing a key leadership role in the company. #BangKyungman #KTandG #CEO #TobaccoIndustry #MBA #HankukUniversity #HealthSupplements #ECigarettes #GlobalBusiness #KoreanExecutives
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President of KT&G
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CFO of Hyundai Engineering
Park Hee-dong
- Park Hee-dong is the CFO (Chief Financial Officer) of Hyundai Engineering. He has taken charge of Hyundai Engineering’s finances, working in step with Joo Woo-jeong, President and CEO of Hyundai Engineering. He was born in January 1969. He graduated from the Department of Economics at Hanyang University. He joined Kia in 1999 and spent 26 years there, serving in roles such as Head of Overseas Subsidiary Management Team, Head of Accounting Management, Head of Business Management, and Head of Finance at Dongfeng Yueda Kia (DKY), a joint venture in China. In 2025, he moved to Hyundai Engineering and was appointed Head of the Finance Division. He also serves as an inside director. #ParkHeedong #HyundaiEngineering #CFO #KiaMotors #DongfengYuedaKia #HanyangUniversity #KoreanExecutives #HyundaiGroup #CorporateFinance #ExecutiveProfile
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CFO of Hyundai Engineering
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CEO of WISEiTECH
Kim Da-san
- Kim Da-san is the CEO of WISEiTECH. He also serves as the CEO of its affiliate, EduAI. He is a second-generation owner; his father was the late Kim Jong-hyun, the founder and former CEO of WISEiTECH. He is focusing on subscription-based Software as a Service (SaaS) as a key growth engine. He was born on February 26, 1987. He graduated from the Department of Multimedia Engineering at Hansung University and earned a master’s degree from the Graduate School of Software at Soongsil University. He joined WISEiTECH in 2016 and worked as a senior researcher in the research lab and head of the new business division. Following the passing of his father, he was appointed CEO in 2023. As a young CEO in his 30s, he has set out a vision of pioneering new businesses based on artificial intelligence (AI) and big data technologies, and taking on the challenge of entering global markets. #KimDasan #WISEiTECH #EduAI #SaaS #AI #bigdata #youngCEO #HansungUniversity #SoongsilUniversity #Koreanstartup
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CEO of WISEiTECH
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Chairwoman of Hanmi Pharm Group
Song Young-sook
- Song Young-sook is the chairwoman of Hanmi Pharm Group. She stepped back from active management after resolving a management rights dispute with her two sons—Lim Jong-yun, chairman of KORI Group, and Lim Jong-hoon, inside director of Hanmi Science. However, as chairwoman of the group and a major shareholder of the holding company Hanmi Science, she continues to play a supportive role in establishing a professional management system. She was born in September 1948 in Gimcheon, Gyeongsangbuk-do. She graduated from the Department of Education at Sookmyung Women’s University in 1970. She is the widow of the late Lim Sung-ki, former chairman of Hanmi Pharm, who passed away in August 2020, and succeeded him in leading the Hanmi Pharm Group. Although she clashed with her two sons over the direction of the group’s management, she gained the upper hand by persuading Shin Dong-guk, chairman of Hanyang Precision and the largest individual shareholder of Hanmi Science. At the time, Song proposed the adoption of a management model like that of global pharmaceutical company Merck and advocated for the establishment of a professional executive system. This approach brought the year-long management dispute to an end. She resigned from her positions as CEO and inside director of Hanmi Science. #SongYoungsook #HanmiPharmGroup #HanmiScience #LimSungki #Merckmodel #managementdispute #professionalmanagement #Koreanpharma #secondgenerationconflict #SookmyungUniversity
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Chairwoman of Hanmi Pharm Group
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CEO of Naturecell
Byun Dae-jung
- Byun Dae-jung is the CEO of Naturecell. He is focusing on expanding the global market for the stem cell therapy “JointStem” following its designation as an “innovative therapy” by the U.S. FDA. He was born on January 26, 1973. He graduated from the Department of Law at Kyonggi University. He worked as a partner attorney at Chun Chu Law Firm and joined Naturecell in 2020 as the head of legal affairs. After the company’s owner and former CEO, Ra Jung-chan, stepped down from management, he has been leading the company together with co-CEO Kim Ju-sun. In December 2024, he was appointed as the sole CEO of Naturecell. As a professional manager with a background in law, he enjoys strong trust from Ra Jung-chan. #Naturecell #ByunDaejung #stemcelltherapy #JointStem #USFDA #biotech #CEO #RaJungchan #KyonggiUniversity #lawyerCEO
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CEO of Naturecell
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CEO of D&D Pharmatech
Lee Seul-ki
- Lee Seul-ki is the CEO of D&D Pharmatech. He is focused on developing highly effective and low-side-effect therapeutics based on the oral peptide platform technology ORALINK and long-acting PEGylation technology. He was born on July 17, 1977. He graduated from the Department of Polymer Engineering at Sungkyunkwan University and earned both his master’s and doctoral degrees in Materials Science and Engineering from GIST (Gwangju Institute of Science and Technology). He completed postdoctoral training in biomedical engineering, radiological medicine, and theranostic nanomedicine at the Korea Institute of Science and Technology (KIST), Stanford University School of Medicine in the United States, and the U.S. National Institutes of Health (NIH). He was a professor in the Department of Radiology at the Johns Hopkins University School of Medicine in the United States before founding D&D Pharmatech in 2014 with his father, Lee Kang-taek, a former professor at the College of Pharmacy at Sungkyunkwan University. He became CEO in 2023. Even after becoming CEO, he continues to lead research and development. He is regarded as one of the top domestic experts in the emerging peptide field. #LeeSeulki #DDPharmatech #ORALINK #PEGylation #peptidetherapeutics #Koreanbiotech #JohnsHopkins #StanfordNIH #biomedicalresearch #CEOscientist
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CEO of D&D Pharmatech
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Chairman of Incar Financial Service
Choi Byeong-chae
- Choi Byeong-chae is the Chairman and CEO of Incar Financial Service. He aims to transform the company from a simple insurance sales agency into a total financial service provider. He was born on August 1, 1961, in Pocheon, Gyeonggi Province. He graduated from Gwangseong High School in Incheon and majored in Landscape Architecture at Kyung Hee University. He joined Hyundai Marine & Fire Insurance and, at the age of 36, became the youngest division head, serving as Marketing Planning Manager. In 1999, he founded Automobile Insurance Market Co., Ltd. (the predecessor of Incar Financial Service) with former colleagues from Hyundai Marine & Fire Insurance. In April 2001, he was appointed CEO. Through bold investments in innovative information technology (IT) and training programs for insurance planners, he led the company’s growth and successfully listed it on KOSDAQ, a first in the industry. #ChoiByeongChae #IncarFinancialService #insuranceleader #KOSDAQlisting #HyundaiMarine #financialservices #Koreanfinance #CEO #fintechinnovation #totalfinancialservices
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Chairman of Incar Financial Service
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CEO of Kbank
Choi Woo-hyoung
- Choi Woo-hyoung is the CEO and President of Kbank. He is tasked with successfully leading Kbank’s initial public offering (IPO). He aims to secure future growth engines by targeting the corporate finance market. He was born on January 25, 1966. He graduated from Kyungdong High School in Seoul and the Department of Economics at Seoul National University. He received a master's degree in Financial Management from the Graduate School of Business at Seoul National University. After passing the Certified Public Accountant (CPA) exam, he began his career at Hana Bank in 1992. He later moved to Accenture, where he served as a Senior Manager in the Financial Services Industry (FSI) and as the leader of the Financial Performance Management (FPM) division. He served as Head of Development (Executive Director) at Samsung SDS and as Executive Director of Financial Business Development at IBM Korea. He returned to the financial industry by joining Kyongnam Bank as Deputy President and Head of the Digital Finance Division. After BNK Financial Group acquired Kyongnam Bank, he concurrently held the positions of Head of Digital and IT at BNK Financial Group and Deputy President and Head of the D-IT Group at Kyongnam Bank. He was appointed CEO of Kbank in January 2024. He is a digital finance expert with experience in both the financial and IT industries. He values practicality and communication. #ChoiWoohyoung #Kbank #digitalfinance #IPO #Koreanbanking #BNKFinancialGroup #KyongnamBank #Accenture #SamsungSDS #financialleadership
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CEO of Kbank
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CEO of T&I Group at Samsung C&T
Lee Jae-eon
- Lee Jae-eon is the President and CEO of the Trading & Investment Group at Samsung C&T. He is focusing on expanding essential industrial materials trading and eco-friendly business development with the goal of becoming a “global value-creating company.” He is actively advancing solar power development projects and hydrogen businesses as future eco-friendly growth drivers. He was born on November 12, 1968. He graduated from Kyunggi High School and studied Chemical Engineering at Sogang University. Since joining Samsung C&T in 1992, he has worked exclusively for the company for over 30 years. He has held positions including Head of Vietnam Operations, General Manager of Japan, Head of the Materials Business Division, and served as Head of Planning and Head of New Business Development. In March 2024, he was appointed President and CEO of the Trading & Investment Group at Samsung C&T. He is considered a traditional “trading man,” having held various key roles within the division. He is regarded as the right person to lead the eco-friendly development projects of the Trading & Investment Group at Samsung C&T. #LeeJaeEon #SamsungC&T #TradingAndInvestment #EcoFriendlyBusiness #HydrogenEnergy #SolarPowerProjects #KoreanBusinessLeaders #SogangUniversity #KoreanExecutives #SustainabilityInitiatives
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CEO of T&I Group at Samsung C&T
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CEO of GM Korea
Hector Villarreal
- Hector Villarreal is the President and CEO of GM Korea. He is a Mexican national, and his full name is Hector Raul Villarreal Gonzalez. He is focused on maintaining GM Korea's profitability and securing an annual production capacity of 500,000 units. He was born on September 18, 1967, in Mexico. He graduated from the Department of Mechanical Engineering at Tecnológico de Monterrey (ITESM) and earned a master’s degree in Industrial Engineering from the same university. He joined General Motors (GM) at the Ramos Arizpe plant in Mexico as a production project engineer. After being promoted to an executive in planning and program management, he joined GM Korea in 2012 as Vice President of Planning and Program Management. In 2015, he moved to GM Uzbekistan and was appointed President. He later served as GM Russia Executive Director, President of GM Southeast Asia, and Vice President of Sales, Service, and Marketing for GM Mexico, Central America, and the Caribbean. In August 2023, he was appointed President and CEO of GM Korea. He significantly increased GM Korea’s revenue and operating profit. #HectorVillarreal #GMKorea #GMMexico #AutomotiveIndustry #Leadership #KoreanAutomotive #GMUzbekistan #GMRussia #GMSoutheastAsia #IndustrialEngineering
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CEO of GM Korea
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President of Wonkwang University
Park Sung-tae
- Park Sung-tae is the president of Wonkwang University. He is the grandson of Sotaesan Park Jung-bin, the founder of Won-Buddhism. Wonkwang University was selected as one of the Glocal University 30 institutions and is focusing on co-growth with the local community and industries as a leading private university in the Jeonbuk region. He was born on May 30, 1958. He graduated from Jeonju Namseong High School and earned his bachelor's degree in Business Administration from Jeonbuk National University. He received both his master’s and doctoral degrees in Business Administration from the graduate school of Jeonbuk National University. He was appointed as a professor in the Department of Business Administration at Wonkwang University and served as Dean of the College of Economics and Business and Director of the Management Education Center before becoming university president at the end of 2022. He has served as President of the Korea Industrial Economic Association, President of the Korean Academic Society of Business Administration, Vice President of the Korea Financial Management Association, Vice President of the Korean Academy of Management, Vice President of the Korea CEO Association, and President of the Korea Financial Management Association. #ParkSungtae #WonkwangUniversity #KoreanAcademia #BusinessEducation #UniversityPresident #GlocalUniversity30 #JeonbukRegion #WonBuddhism #KoreanEconomics #HigherEducationKorea
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President of Wonkwang University
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CEO of Hancom
Kim Yeon-su
- Kim Yeon-su is the CEO and President of Hancom. He is a second-generation owner; his father is Kim Sang-cheol, Chairman of Hancom. He is focused on transforming Hancom into a cloud-based SaaS (Software as a Service) and artificial intelligence (AI)-driven enterprise. He is pursuing a growth strategy that expands the company’s business scope through aggressive mergers and acquisitions (M&A) and partnerships. He was born on March 23, 1983. He graduated with a degree in Business Administration from Boston University in the United States, completed an MBA program at Babson College Graduate School of Business, and earned a master’s degree in Finance from Boston College Graduate School. He previously worked at semiconductor manufacturer Wizit and SoftForum (now HancomWITH), before joining Hancom in 2012 as Director. He has held positions such as Head of Overseas Business, Head of Strategy at Hancom Group, and Head of Growth Strategy Division at Hancom Group. Since 2021, he has served as Co-CEO of Hancom alongside Chief Operating Officer Byun Sung-joon, overseeing the group's future strategy. #KimYeonsu #Hancom #HancomGroup #SaaS #AI #CloudBusiness #BusinessTransformation #SecondGenerationOwner #MergersAndAcquisitions #KoreanTechLeadership
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CEO of Hancom
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Chairman of Avaco
Wee Ji-myung
- Wee Ji-myung is the chairman of Avaco. He is the eldest son of Avaco founder, Chairman Wee Jae-gon. He is focusing on expanding into various business sectors, including semiconductors and secondary batteries. He was born on November 19, 1978. He majored in mechanical engineering at Purdue University in the United States. He completed an MBA program at the Haas School of Business, University of California, Berkeley. He built his career at Samsung Electronics’ display division and the development center of Japan’s Toray Engineering. After joining Avaco, he served as Head of Strategic Planning and CEO of Avaco's U.S. branch, before becoming co-CEO in 2018. In 2020, he stepped down from the CEO position and became chairman of the board. In 2024, he was appointed chairman. He is known for being both cautious and bold. He is leading Avaco’s global growth and technological innovation. #WeeJimyung #Avaco #Semiconductors #SecondaryBatteries #GlobalLeadership #PurdueUniversity #UCBerkeleyMBA #SamsungDisplay #TorayEngineering #KoreanBusinessLeaders
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Chairman of Avaco
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President of ALMAC
Park Jun-pyo
- Park Jun-pyo is the President of ALMAC and also serves as the CEO of its subsidiary, ALMAC Korea. He is a second-generation owner. His father is Park Soo-hyun, Chairman of ALMAC. He is focusing on expanding production capacity in aluminum extrusion and casting, as well as diversifying the customer base. He was born in July 1982. He graduated from the Department of Business Administration at Korea University and completed an MBA program at Columbia Business School in the United States. He worked at Samil PwC and Jeongdong Accounting Corporation, and later served as M&A Manager at Hanwha’s Global Strategy Office. In 2015, he joined ALMAC as President. He is a finance and strategy expert, equipped with sharp analytical and execution skills for navigating the rapidly changing electric vehicle market. He transformed ALMAC from an aluminum processing company into an electric vehicle parts manufacturer. #ParkJunpyo #ALMAC #ALMACKorea #EVparts #aluminumindustry #secondgenerationCEO #M&Aexpert #ColumbiaMBA #KoreaUniversity #automotiveindustrytransformation
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President of ALMAC
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Chairman of DN Automotive
Kim Sang-hun
- Kim Sang-hun is the Chairman and CEO of DN Automotive. He is also the Chairman and the owner of DN Group, recognized as its controlling shareholder (owner). As a second-generation owner, his father was the late Kim Man-soo, founder and former chairman of Dong-A Tire Industrial. Kim Sang-hun was born on April 1, 1963, in Sancheong, Gyeongnam. He graduated from the Department of Business Administration at Yonsei University. In 1986, he joined Dong-A Tire Industrial and served as Executive Vice President and then as CEO and President. In 2017, following a company spin-off, he became CEO and President of DTR Automotive (now DN Automotive). After the company changed its name, he was appointed Vice Chairman and CEO of DN Automotive in 2022, and Chairman and CEO in 2024. He led DN Automotive to become the No. 1 company in Korea and one of the top three in the world in the field of anti-vibration parts. He also expanded the company by acquiring DN Solutions (formerly Doosan Machine Tools). #KimSanghun #DNAutomotive #DTRAutomotive #DNGROUP #Koreanbusiness #automotiveindustry #DNsolutions #antivibrationparts #DoosanMachineTools #businessleader
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Chairman of DN Automotive
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President of KEPCO
Kim Dong-cheol
- Kim Dong-cheol is the President of Korea Electric Power Corporation (KEPCO). He is focusing on expanding the power grid to overcome the financial crisis and prepare for the age of AI. He was born on June 30, 1955 (lunar calendar) in Gwangju. He graduated from Gwangju Jeil High School and the Department of Law at Seoul National University. He began working at Korea Development Bank in 1983 and entered politics in 1989 as a policy aide to National Assembly member Kwon No-gap. After being elected in the 17th general election, he served four consecutive terms as a lawmaker. After losing in the 21st general election, he joined the presidential campaign of Yoon Suk-yeol from the People Power Party in 2021. He is the first president of KEPCO to come from a political background. Due to his complete lack of experience in the energy sector, he has faced criticism as a parachute appointee of the Yoon Suk-yeol administration. #KimDongcheol #KEPCO #KoreaElectricPower #energysector #parachuteappointment #YoonSukyeol #AIera #powergrid #KoreaDevelopmentBank #SouthKoreanpolitics
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President of KEPCO
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CEO of LS Securities
Kim Won-kyu
- Kim Won-kyu is the President and CEO of LS Securities. He is accelerating revenue diversification through the strengthening of investment banking (IB) operations. He is also focusing on expanding the scale of LS Securities by increasing its equity capital. He was born on May 17, 1960, in Uiseong, North Gyeongsang Province. He graduated from Daegu Commercial High School and the Department of Business Administration at Kyungpook National University. He is a person who rose to the position of CEO of a securities firm after starting as a rank-and-file employee. He joined Lucky Securities, the predecessor of NH Investment & Securities, and built over 20 years of experience in sales, serving in roles such as Head of Retirement Pension Sales, Head of Pension Trust Sales, and Head of WM (Wealth Management) Sales Division 1. In 2013, he was appointed President and CEO of Woori Investment & Securities, and in 2015, he became the first President and CEO of NH Investment & Securities, which was formed through the merger of NH NongHyup Securities and Woori Investment & Securities. After resigning from NH Investment & Securities, he was appointed CEO of LS Securities in 2019, just one year later. Following a three-year term renewal, he succeeded in being reappointed for an additional one-year term in 2025 despite legal risks. He is known for his “big brother leadership,” actively communicating with employees. He is the older brother of Kim Jae-won, former Supreme Council member of the People Power Party. #KimWonKyu #LSSecurities #KoreanFinance #investmentbanking #NHSecurities #WooriInvestment #businessleadership #financialindustryKorea #capitalexpansion #executiveprofile
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CEO of LS Securities
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President of SNUH
Kim Young-tae
- Kim Young-tae is the President and CEO of Seoul National University Hospital. He is dedicated to elevating medical care and research to a global level and fulfilling public healthcare responsibilities as the nation's central hospital. He was born on November 4, 1963, in Seoul. He graduated from Seoul National University College of Medicine. He earned his master's and doctoral degrees in medicine from the graduate school of Seoul National University. After completing his internship and residency at Seoul National University Hospital, he was appointed professor in the Department of Thoracic Surgery at Seoul National University College of Medicine. He completed a fellowship at the Mayo Clinic in the United States and served as the Director of the Lung Cancer Center and the Cardiopulmonary Intensive Care Unit at Seoul National University Hospital. He was one of the candidates recommended again after then-President Yoon Suk-yeol rejected the two candidates for hospital president recommended by the Seoul National University Hospital board. He was the first in the world to identify the gene (KIF5B-RET fusion gene) that causes lung cancer. He was the first in Korea to successfully perform a lung transplant surgery on an infant under the age of two. He is pursuing changes in the authoritative decision-making structure at Seoul National University Hospital by emphasizing horizontal relationships among members. #KimYoungtae #SeoulNationalUniversityHospital #lungcancer #thoracicsurgery #publichealthcare #KIF5BRET #MayoClinic #hospitalpresident #lungtransplant #medicalresearch
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President of SNUH
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CEO of Studio Dragon
Jang Kyung-ik
- Jang Kyung-ik is the CEO of Studio Dragon, a subsidiary of CJ ENM. He aims to boost performance by increasing global market influence. He was born on January 12, 1972. He graduated from Kyungpook National University with a degree in Economics. He began his career at Shinsegi Telecom. After working as the Programming and Scheduling Team Leader at Megabox, he co-founded the film investment and distribution company NEW in 2008. In 2013, he became CEO of the film division at NEW, later serving as CEO of its subsidiary Studio & NEW, and eventually became CEO of NEW. In 2024, he was appointed CEO of Studio Dragon. He has built his career in the entertainment industry through outstanding planning skills and insight. As the producer of dramas such as “Descendants of the Sun” and “Moving,” he is regarded as a creator of globally resonant content. #JangKyungik #StudioDragon #CJENM #Kdrama #DescendantsoftheSun #Moving #KoreanContent #EntertainmentIndustry #NEWfilms #GlobalKcontent
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CEO of Studio Dragon
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CEO of Samsung Display
Yi Chung
- Yi Chung is the President and CEO of Samsung Display. He is solidifying his dominance in the small and medium-sized OLED display market for IT devices such as smartphones and PCs, and is working hard to stay ahead of the competition from China. He was born in Seoul in 1966. He graduated from Shinil High School in Seoul and earned a degree in Chemical Engineering from Sogang University. He received both his master’s and doctoral degrees in Chemical Engineering from Pohang University of Science and Technology (POSTECH). He served as the head of the Development Group and the Panel Development Team in the OLED Business Division at Samsung Display. He later held positions as the Head of Development in the Small and Medium Business Division, Division Head, and Head of the IT Business Team. In November 2024, he was appointed President and CEO of Samsung Display, becoming the company’s first CEO with a background as a display engineer. He serves as Chairman of the Korea Display Industry Association. He is recognized as a technical expert with extensive experience in display process technologies, having worked in the LCD Business Division at Samsung Electronics and at Samsung Display. #YiChung #SamsungDisplay #OLED #DisplayEngineer #KoreaDisplayIndustryAssociation #POSTECH #ChemicalEngineering #ITDisplays #DisplayTechnology #TechLeadership
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CEO of Samsung Display
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Honorary Chairman of Samchully Group
Yi Man-deuk
- Yi Man-deuk is Honorary Chairman of Samchully Group and also Honorary Chairman of Samchully. He is a second-generation owner, and his father was the late Yi Jang-kyun, co-founder of Samchully. He is devoted to envisioning new businesses and discovering future growth engines for Samchully. He was born on April 21, 1956, in Seoul. He graduated from the Department of Business Administration at Korea University and completed an MBA program at International University in the United States. In 1981, he joined Miseong Trading at Samchully Group and has since taken the lead in businesses such as coal briquettes, city gas, combined heat and power (CHP) plants, renewable energy, and overseas energy development. He was promoted to Executive Vice President of Samchully in 1991 and to Vice Chairman of Samchully Group in 1992. In 1993, he became Chairman of Samchully. Since 2016, he has served as Honorary Chairman. He has also served as Chairman of the Korea City Gas Association and Vice Chairman of the Seoul Chamber of Commerce and Industry. #YiManDeuk #Samchully #SamchullyGroup #HonoraryChairman #CityGas #RenewableEnergy #KoreanExecutives #KoreaUniversity #EnergyDevelopment #BusinessLeadership
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Honorary Chairman of Samchully Group
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CEO of Daeduck
Kim Young-jae
- Kim Young-jae is the President and CEO of Daeduck. He also serves as President of the affiliated company, Daeduck Electronics. He is the second son of the late Kim Jung-sik, the founder and former Chairman of Daeduck Electronics. He was born on January 1, 1959, in Seoul. He graduated from Dongguk University High School and the Department of Industrial Chemistry at Seoul National University, and received a master's degree in Chemistry from the graduate school of KAIST (Korea Advanced Institute of Science and Technology). He joined Daeduck Electronics in 1983 and became President and CEO in 2004. After the company transitioned into a holding structure in 2020, he became the top executive of the holding company, Daeduck. Believing that the expansion of 5G mobile communications and the artificial intelligence (AI) market will drive up demand for non-memory products, he is focusing on diversifying the business structure, which has been centered on memory semiconductor substrates. Since 2012, he has served as Chairman of the Samsung Electronics Suppliers Association (Hyopseonghoe). #KimYoungjae #Daeduck #DaeduckElectronics #SemiconductorIndustry #NonMemoryExpansion #5G #AIIndustry #KAIST #SamsungPartners #ElectronicsLeadership
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CEO of Daeduck
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CEO of Korean Re
Won Jong-gyu
- Won Jong-gyu is the President and CEO of Korean Reinsurance. He is focusing on meeting the rising demand for reinsurance driven by climate risk response and capital management through the use of co-reinsurance. With the domestic market reaching saturation, he is concentrating on strengthening Korean Re's presence in overseas markets. He was born on September 2, 1959, in Seoul, as the third son of former Korean Re Chairman Won Hyuk-hee. He graduated from Yeouido High School in Seoul and the Department of Trade at Myongji University, then completed an MBA program at Yonsei University Graduate School of Business. He joined Korea Reinsurance Corporation (now Korean Reinsurance), and held positions including Head of the New York Office, Deputy General Manager of the Planning and Management Office, and Head of the Accounting Department. After 28 years with the company, he became President and CEO in 2013. He is known to be humble and is regarded as highly driven. #WonJonggyu #KoreanReinsurance #ClimateRisk #CoReinsurance #ReinsuranceMarket #GlobalExpansion #KoreanExecutives #InsuranceIndustry #LeadershipProfile #CapitalManagement
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CEO of Korean Re
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Chairman of Daewoo E&C
Jung Won-ju
- Jung Won-ju is the Chairman of Daewoo E&C and Vice Chairman of Jungheung Group. He is focusing on expanding Daewoo E&C’s overseas operations, particularly in key countries such as Vietnam and Nigeria. As the second-generation owner-executive of Jungheung Group, he is also putting effort into raising awareness of Jungheung Construction’s apartment brand, ‘Jungheung S-Class.’ He was born on July 30, 1968, in Gwangju Metropolitan City as the eldest son of Jungheung Group Chairman Jung Chang-sun. He graduated from Gwangil High School and the Department of Public Administration at Honam University. Following his father’s emphasis on field experience, he worked at Jungheung Housing’s construction sites after graduating from high school. He has effectively taken over the management of Jungheung Group from Chairman Jung Chang-sun. He has served as the Chairman of the Gwangju-Jeonnam Chapter and Central Headquarters of the Korea Housing Builders Association, as well as Chairman of The Herald. He is continuing the cautious business strategy of Chairman Jung Chang-sun, who is known for his careful approach, like “tapping even on a stone bridge before crossing.” #JungWonju #DaewooE&C #JungheungGroup #SouthKoreaConstruction #VietnamProjects #NigeriaDevelopment #JungheungSClass #SecondGenCEO #KoreaHousingBuildersAssociation #GwangjuBusiness
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Chairman of Daewoo E&C
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CEO of LG H&H
Lee Jung-ae
- Lee Jung-ae is the CEO and President of LG Household & Health Care (H&H). She faces the challenge of improving performance and overcoming sluggish stock prices amid the prolonged economic downturn in China. She was born on December 24, 1963. She graduated from the Department of Economics at Ewha Womans University. She joined LG Chem and built her career in marketing. She later served as Head of the Household Goods Division and was promoted to Executive Director in 2013 and Vice President in 2016. Since 2015, she has been in charge of the luxury cosmetics business, leading the growth of in-house brands such as "The History of Whoo" and "SU:M37." In 2018, she was appointed CEO of the subsidiary Coca-Cola Beverage Company, and in November 2022, she was appointed CEO and President of LG Household & Health Care. She is the first female executive across all LG Group affiliates. #LeeJungae #LGHouseholdHealthCare #KoreanBeauty #LuxuryCosmetics #EwhaWomansUniversity #LGGroup #WomenLeadership #KBeauty #Whoo #SUM37
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CEO of LG H&H
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CEO of Shinhan Life Insurance
Lee Young-jong
- Lee Young-jong is the CEO and President of Shinhan Life Insurance. After securing his second term, he is focusing his efforts on solidifying internal unity within the merged entity, Shinhan Life Insurance, aiming to elevate the company to the second-largest life insurer in the country. He was born in February 1966. He graduated from Baejeong High School in Busan and earned a degree in Business Administration from Seoul National University. He joined Shinhan Bank and held various positions including Head of the Future Strategy Department and Branch Manager of the Shinchon Central Branch. He later served as Head and Director of the Strategic Planning Team at Shinhan Financial Group, and as Regional Head of Shinhan Bank’s Gangseo Division. He then moved to Orange Life and took charge as Head of the Newlife Initiative. In January 2021, he was appointed CEO of Orange Life. After the merger of Shinhan Life and Orange Life, which led to the establishment of Shinhan Life Insurance, he served as Head of the Strategic Planning Group and Head of the Retirement Pension Business Group. In January 2023, he was appointed CEO and President of Shinhan Life. In 2024, he was appointed Chairman of the Board at Shinhan Life, and in 2025, he successfully secured his reappointment as CEO. He is regarded as one of the leading strategy experts in the Shinhan Financial Group. He played a leading role in major mergers and acquisitions (M&As), including the merger of Shinhan Bank and Chohung Bank, the merger of Shinhan Life and Orange Life, and the acquisition of Asia Trust by Orange Life. #LeeYoungjong #ShinhanLife #KoreanFinance #InsuranceCEO #ShinhanFinancialGroup #MergersAcquisitions #KoreaInsurance #OrangeLife #StrategicLeadership #FinancialExpert
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CEO of Shinhan Life Insurance
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CEO of L&K Biomed
Kang Gook-jin
- Kang Gook-jin is the CEO of L&K Biomed. He is focused on expanding the company's product portfolio and global sales network. He was born on August 10, 1966, in Gangwon-do. He graduated from the Department of Applied Biology at Kangwon National University. He worked at the Korean branch of Stryker, a U.S.-based medical device company. Later, he moved to GS Medical, where he oversaw the development and manufacturing of spinal medical products. In 2008, he founded L&K Biomed and became its CEO. He values substance and sustainability. He believes that "true corporate value comes from competing through technology." He is humble. He credits the company’s achievements to its employees and demonstrates a leadership style that puts others first. #KangGookJin #L&KBiomed #MedicalDevices #SpinalImplants #KoreanCEO #BiotechLeadership #TechDriven #GlobalBusiness #KangwonUniversity #HealthcareInnovation
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CEO of L&K Biomed
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CEO of Dong-A ST
Jeong Jae-hoon
- Jeong Jae-hoon is the President and CEO of Dong-A ST. He was appointed as a relief pitcher to turn around stagnant performance. He was born on November 3, 1971. He earned a master’s degree in pharmacy from Sungkyunkwan University Graduate School. He joined Dong-A Pharmaceutical and served as Head of the Operations Planning Team, later moving to Dong-A Socio Holdings, where he led the Ethical Management Office. In 2021, he was appointed Executive Vice President and CEO of Dong-A Socio Holdings, and in 2023, he became President and CEO of the company. In 2024, he was appointed President and CEO of Dong-A ST. He is an internal professional manager selected by Dong-A ST, which was in need of young leadership to drive new changes. With in-depth knowledge of internal operations and strengths in sales strategy, he is considered the right person to lead the company’s performance rebound. #JeongJaeHoon #DongAST #DongASocioHoldings #KoreanPharmaceutical #CorporateLeadership #BusinessTurnaround #ExecutiveAppointment #SungkyunkwanUniversity #PharmaCEO #InternalPromotion
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CEO of Dong-A ST
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Head of Future Growth Division at Lotte Corporation
Shin Yu-yeol
- Shin Yu-yeol is the Vice President and Head of Future Growth Division at Lotte Corporation. He also serves as the Head of Global Strategy at Lotte Biologics and CEO of Lotte Financial. He is the son of Lotte Group Chairman Shin Dong-bin and the heir apparent to lead the group. He is tasked with identifying new growth engines for Lotte Group. He was born on March 30, 1986, as the eldest of three children to Chairman Shin and his Japanese wife Shigemitsu Manami. He holds Japanese citizenship and his Japanese name is Shigemitsu Satoshi. His two younger sisters also hold Japanese citizenship. He attended Aoyama Gakuin, a private school in Japan, for elementary, middle, and high school, and graduated from the Faculty of Environment and Information Studies at Keio University. He earned an MBA from Columbia Business School in the United States. He began his career at Nomura Securities in Japan. He later worked as Head of Sales at Lotte Japan. He served as Executive Director of the Basic Materials Division at Lotte Chemical’s Tokyo office before moving to South Korea, where he took on the roles of Head of Future Growth at Lotte Corporation and Head of Global Strategy at Lotte Biologics. In 2023, he was appointed CEO of Lotte Financial. Having lived in Japan until the age of 40, his Korean language proficiency is limited, but he is capable of communication. As he is now over the age of 38, he is exempt from military service, and there is speculation that he will soon acquire South Korean citizenship. #ShinYuyeol #LotteCorporation #LotteGroup #LotteBiologics #LotteFinancial #KoreanChaebol #NextGenerationLeader #JapaneseKorean #BusinessSuccession #GlobalStrategy
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Head of Future Growth Division at Lotte Corporation
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CEO of Shinsegae International
William Kim
- William Kim is the CEO of the Fashion Division at Shinsegae International. He also serves as Chairman of the Board of Directors at Shinsegae International and Head of Digital & Global for Shinsegae Department Store Division. He was born in the United States in August 1972. He graduated from the University of Colorado with a degree in Accounting. At Gucci Group, he served as CFO (Chief Financial Officer) and COO (Chief Operating Officer), overseeing luxury watch brands including Stella McCartney, Alexander McQueen, and Bedat & Co. At Burberry, he held the position of Senior Vice President of Retail and Digital. He later became CEO of British fashion brand AllSaints, where he led the company to profitability within one year. He then moved to Samsung Electronics, where he served as Executive Vice President of Marketing for the Mobile Division, overseeing digital platforms, global stores, and training. In 2022, he became CEO of global cycling apparel brand Rapha, where he expanded the company’s digital platform. In January 2023, he was appointed as CEO of Shinsegae International. In October 2024, he was named CEO of the Fashion Division at Shinsegae International. #WilliamKim #ShinsegaeInternational #ShinsegaeFashion #LuxuryRetail #GlobalLeadership #Burberry #GucciGroup #SamsungElectronics #Rapha #DigitalTransformation
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CEO of Shinsegae International
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CEO of Caregen
Chung Yong-ji
- Chung Yong-ji is the CEO of Caregen and also serves as Chairman of the Board. He is aiming to develop pharmaceuticals using peptide technology. He was born in February 1970. He graduated from the Department of Genetic Engineering at Sungkyunkwan University and earned a master's degree in Biochemistry from the University of Texas at San Antonio. He received a Ph.D. in Molecular Biology (Animal Science) from Cornell University. In 2001, he founded Caregen, a company specializing in peptide-based cosmetics and fillers. In 2021, he signed a global exclusive agreement with BASF, a global chemical company, to supply cosmetic peptides. He is expanding beyond cosmetics into the bio field, focusing on the development of treatments for COVID-19, macular degeneration, and diabetes. #ChungYongji #Caregen #PeptideTechnology #Biotech #CosmeticPeptides #COVID19Treatment #MacularDegeneration #DiabetesTreatment #PharmaceuticalDevelopment #BASFPartnership
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CEO of Caregen
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CEO of Studio Mir
Yoo Jae-myung
- Yoo Jae-myung is the CEO of Studio Mir. He is focusing on securing intellectual property (IP) and diversifying revenue streams through its utilization. He is also prioritizing the strengthening of partnerships with major OTT companies such as Netflix to establish a stable revenue base. He was born on February 5, 1972, in Seoul. While attending high school, his family fell into financial hardship due to his father's business failure, and after his father's death, he faced difficult times. During this period, a ‘doodle’ he drew by chance caught the eye of a staff member at a comic production company, leading him to become an animator. He worked as a director at animation production companies such as Dongwoo Animation, Tin House, and JM Animation, before founding Studio Mir in 2010 and becoming its CEO. He is an animation expert with over 20 years of experience. He is considered one of the pioneers of the Korean animation industry. He emphasizes the importance of ‘staying true to the basics.’ #YooJaemyung #StudioMir #KoreanAnimation #AnimationIndustry #OTTpartnership #NetflixKorea #IntellectualProperty #AnimationDirector #KoreanContent #CreativeLeadership
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CEO of Studio Mir
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CEO of Deepnoid
Choi Woo-sik
- Choi Woo-sik is the CEO of Deepnoid. He is the founder of Deepnoid, a medical artificial intelligence (AI) solutions company. He is working to expand the market for a chest X-ray interpretation report generation solution. He was born on October 4, 1969. He graduated from the Department of Electronic Engineering at Yonsei University. He began his career as a mobile phone development engineer at Hanwha Information and Communications and later moved to Samsung Electronics to further his experience. In 2002, he founded the mobile phone development company Appleton and served as its Chief Technology Officer (CTO), though the company faced ups and downs. Turning to AI, he founded Deepnoid in 2008 and became its CEO. He aims to build a company that helps make AI accessible to everyone in the country. #ChoiWooSik #Deepnoid #AIhealthcare #YonseiUniversity #medicalAI #Koreanstartup #XrayAI #digitalhealth #Koreanentrepreneur #AIinnovation
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CEO of Deepnoid
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Chairman of Wemade
Park Kwan-ho
- Park Kwan-ho is the Chairman and CEO of Wemade, as well as the CEO of Wemix Korea. He is focused on the global launch of the company’s flagship game 'MIR M' and on establishing the cryptocurrency 'Wemix' in international markets. He was born on November 25, 1972. He graduated from the Department of Business Administration at Kookmin University. He co-founded 'ActozSoft' with senior members of the university’s computer club and developed 'Legend of Mir' while working as the development team leader. In February 2000, he became independent and founded 'Wemade', releasing 'Legend of Mir 2', which became a commercial success. In 2007, to focus on game development, he established a co-CEO system by appointing a professional manager to handle business operations. In 2012, he stepped down as CEO and transitioned to a professional management structure by becoming Chairman of the Board. After years of weak performance, he returned to the frontlines of management in 2024, marking his comeback after 12 years. He is considered one of the first-generation game developers in Korea. He is known for being cautious yet determined, with a deep passion for game development. #ParkKwanho #Wemade #Wemix #LegendofMir #Koreangameindustry #gameCEO #MIRM #cryptogames #gamefounder #Koreanblockchain
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Chairman of Wemade
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Founder of GemVax&KAEL
Kim Sang-jae
- Kim Sang-jae is the founder of GemVax&KAEL (hereinafter referred to as GemVax). After stepping down as CEO in 2024, he has remained as an advisor. He is focusing on leading the KRW 20 trillion (US$ 14.4 billion) market for neurodegenerative disease treatments. He was born on December 5, 1966. He graduated from Kyung Sung High School in Seoul and Hanyang University College of Medicine. He studied spinal neurology at the University of Southern California in the United States and received both his master's and doctoral degrees in cellular physiology from Hanyang University Graduate School. In 1995, he ran a clinic specializing in pediatric scoliosis in Apgujeong-dong, Seoul. In 2005, he founded the Korea Stem Cell Bank, which extracts and stores stem cells. While searching for air filters for stem cell cultivation, he acquired KAEL, a KOSDAQ-listed semiconductor filter manufacturer, in 2007. In October 2008, he acquired GEMVAX, a Norwegian biotechnology company owned by the Danish biopharmaceutical firm Pharmexa, and became CEO. For 17 years, he has focused on developing the new drug candidate ‘GV1001.’ He is expanding its application to treat neurodegenerative diseases such as Alzheimer’s disease, Parkinson’s disease, amyotrophic lateral sclerosis (ALS), and multiple sclerosis (MS). #KimSangjae #GemVax #GV1001 #neurodegenerativedisease #Alzheimers #Parkinsons #stemcells #biotechstartup #Koreanbiotech #pharmaceuticals
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Founder of GemVax&KAEL
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CEO of JSC
Park Sung-sik
- Park Sung-sik is the president and CEO of Jeju Semiconductor. He is the founder of Jeju Semiconductor, a fabless memory company. He is actively working to expand the market for memory semiconductors used in mobile and 5G-based Internet of Things (IoT) applications. He was born on July 12, 1961. He graduated from the Department of Electronic Engineering at Nihon University in Japan. He began his career at Samsung Electronics, where he worked in the Memory Division for 15 years. Sensing the potential of the low-capacity memory semiconductor market, he founded Apems Technology (now Jeju Semiconductor) in 2000. In 2005, he relocated the company’s headquarters from Seoul to Jeju, and in 2013, the company was renamed Jeju Semiconductor. He also oversees Donghaeng Lottery, a subsidiary engaged in the national lottery business. #ParkSungSik #JejuSemiconductor #MemoryChip #Fabless #IoT #5G #KoreanSemiconductor #StartupFounder #SamsungAlumni #TechLeadership
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CEO of JSC
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CEO of Duk San Neolux
Lee Su-hun
- Lee Su-hun is the chief executive officer of Duksan Neolux and also serves as chairman within the Duksan Holdings group. He concurrently holds CEO positions at Duksan Holdings, Duksan Hi-Metal, and Duksan EtherCT. He is actively pursuing business diversification for Duksan Neolux, including the acquisition of Hyundai Heavy Industries Turbo Machinery. While pushing for the diversification of OLED materials and expansion of production capacity, he is also tightening focus on the company's existing OLED materials business. Born on January 10, 1976, Lee is the eldest son of Lee Joon-ho, the founder of Duksan Group. He is a second-generation business leader who inherited control of the Duksan Holdings group. He studied History Education at Korea University and received a master's degree from the Graduate School of International Studies at the same university. After working in the Corporate Planning Office at Dongbu Anam Semiconductor, he joined Duksan Hi-Metal in 2007. In 2019, he became CEO of Duksan Neolux, followed by CEO roles at Duksan Hi-Metal and Duksan Nepcores. He resigned from the CEO posts at Duksan Neolux and Duksan Hi-Metal and became chairman of the Duksan Holdings group in 2023. In 2024, as part of efforts to strengthen management and leadership accountability, he returned as CEO of both Duksan Neolux and Duksan Hi-Metal. He is known for his humility and servant leadership, avoiding rigid authoritative structures. He values people above all in corporate management, believing that 90 percent of failures and 100 percent of successes in business stem from people. #LeeSuHun #DuksanNeolux #OLEDmaterials #BusinessDiversification #ServantLeadership #KoreanBusiness #SecondGenerationLeadership
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CEO of Duk San Neolux
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Governor of South Gyeongsang Province
Kim Koung-soo
- Kim Koung-soo is the former Governor of South Gyeongsang Province. As the nation enters the phase of the early presidential election in April 2025, he is being mentioned as a non-Lee Jae-myung presidential candidate within the Democratic Party of Korea. He has made efforts toward the impeachment of President Yoon Suk-yeol, including going on a hunger strike. He is preparing to run in the party’s primary for the presidential nomination, aiming to achieve meaningful results. He resigned from his post as governor after being convicted for his involvement in the "Druking online comment manipulation scandal." After being imprisoned, he was granted a special pardon and reinstatement of rights under the Yoon Suk-yeol administration, and subsequently rejoined the Democratic Party of Korea. He was born on December 1, 1967, in Yong-an-ri, Gaecheon-myeon, Goseong-gun, South Gyeongsang Province. In the sixth grade at Goseong Elementary School, he transferred to Jinju, where he later graduated from Dongmyeong High School. While attending the Department of Anthropology at Seoul National University, he participated in student activism and was arrested three times. He was later recognized as a person of merit in the democratization movement. Entering politics, he worked as an aide to National Assembly members Shin Gye-ryun, Yoo Seon-ho, and Lim Chae-jung. During the Roh Moo-hyun administration, he served as a secretary in the Blue House, assisting with election strategies and speech writing. After former President Roh Moo-hyun’s retirement, he followed him to Bongha Village and supported him, earning the nickname "President Roh’s last secretary." He was considered a close confidant of former President Moon Jae-in. He is known for being calm, gentle, and passionate in carrying out his duties. #KimKoungsoo #SouthGyeongsang #DemocraticPartyKorea #2025Election #YoonSukyeol #MoonJaein #RohMoohyun #DrukingScandal #KoreanPolitics #PresidentialCandidate
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Governor of South Gyeongsang Province
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CEO of Infobank
Park Tai-hyung
- Park Tai-hyung is the President and CEO of Infobank. He is the founder of Infobank, a company specializing in enterprise mobile messaging services. He aims to transform Infobank into an "AI solutions" company. He was born on April 1, 1957, in Seoul. He graduated from Kyunggi High School in Seoul, earned a bachelor's degree in Energy Resources Engineering from Seoul National University, and received a master's degree in Industrial Engineering from the graduate school at Seoul National University. He also completed an MBA program at the Wharton School of the University of Pennsylvania in the United States. He built his career as Senior Deputy Branch Manager at the Korea branch of Bankers Trust and founded Infobank independently in 1995, becoming its President and CEO. He was the first in Korea to develop SMS services that notify users of credit card approvals and bank deposits/withdrawals, as well as text voting services during live TV and radio broadcasts. #ParkTaihyung #Infobank #AIsolutions #mobilemessaging #Koreanentrepreneurs #techfounder #enterpriseIT #WhartonMBA #SNUalumni #Koreaninnovation
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CEO of Infobank
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CEO of Hanwha Aerospace
Son Jae-il
- Son Jae-il is the CEO of Hanwha Aerospace and Hanwha Systems. He is leading the integration of Hanwha Group’s land, sea, and air defense businesses. He is focusing on securing defense export contracts and building local production facilities to expand global sales. He was born in Daegu on March 5, 1965. He graduated from Yeongjin High School in Daegu and majored in Business Administration at Korea University. He began his career at Korea Explosives (now Hanwha) and has since worked exclusively within the Hanwha Group. He served as Executive Director of Hanwha’s Explosives Division and Managing Director of Hanwha Techwin’s Defense Business Division before being appointed CEO of Hanwha Land Systems in 2017. In 2020, he became CEO of Hanwha Defense, the unit overseeing Hanwha Group’s entire defense business, solidifying his reputation as a defense industry expert. He was appointed CEO of Hanwha Aerospace in 2022 and CEO of Hanwha Systems in 2024. He also serves as President of the Korea Space Technology Promotion Association. #SonJaeil #HanwhaAerospace #HanwhaSystems #HanwhaGroup #defenseindustry #Koreandefense #spacetechnology #KoreanCEOs #armsintegration #defenseexports
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CEO of Hanwha Aerospace
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CEO of Shinhan Card
Park Chang-hun
- Park Chang-hun is the President and CEO of Shinhan Card. He is focusing on transforming Shinhan Card into a platform company, with "change" and "innovation" as the key themes. He also faces the challenge of reclaiming the top spot in net profit in the card industry, a position that was lost after ten years. He was born on May 5, 1968. He graduated from Jinju High School in South Gyeongsang Province and studied Political Science and Diplomacy at Yonsei University. He joined LG Card and worked as Head of Sales Planning Team, among other roles. After Shinhan Card acquired LG Card, he held various positions at Shinhan Card including Head of Big Data Marketing Team, Head of Court 9 Task Force, Head of New Growth Division, Head of Life Business Division, Head of DNA Business Promotion Division (Executive Director), and Head of Payment Group (Executive Director). He was appointed as President of Shinhan Card in 2025. He is the second CEO to be promoted from within the company. He is the figure behind the "bold promotion" from executive director to CEO. Having worked in key departments related to digital and sales, he was chosen as the right person to lead the transformation into a platform company. He is regarded as a “new business expert” at Shinhan Card. With over 30 years of experience in the card industry, he possesses a deep understanding of the entire card business. #ShinhanCard #ParkChangHun #creditcardindustry #platformbusiness #digitaltransformation #KoreaFinance #CEOpromotion #YonseiUniversity #LGCard #KoreanCEOs
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CEO of Shinhan Card
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President of the University of Ulsan
Oh Yeon-cheon
- Oh Yeon-cheon is the President of the University of Ulsan. He is currently serving his third consecutive term, with his tenure set to run until February 2027. He is strengthening the university’s status as a glocal (global + local) institution and is focused on building a model for regional and industrial co-growth. He was born in 1951 in Gongju, Chungcheongnam-do. He graduated from the Department of Political Science at Seoul National University. He earned both his master’s and doctoral degrees in financial management from the graduate school of New York University in the United States. He briefly worked in public service after passing the 17th Higher Civil Service Examination, but returned to Korea after completing his studies in the U.S. and was appointed as a professor at Seoul National University. He served as Dean of the Graduate School of Public Administration and later as President of Seoul National University. He was also the first Chairman of the Board of Seoul National University after it became a national university corporation. He was a distinguished professor at Stanford University in the United States before being appointed President of the University of Ulsan. Externally, he served as Chair of the Policy Deliberation Committee at the Ministry of Information and Communication, Chairman of the Korea Evaluation Institute of Industrial Technology under the Ministry of Knowledge Economy, Chair of the Industrial Development Committee, and Chair of the Judicial Policy Advisory Committee of the Supreme Court. During his presidency at Seoul National University, he led the institution’s corporatization process. While he is widely respected as a scholar in the field of financial management, he has also been recognized as a university administration expert, having served as a university president for nearly 15 years. He was appointed the first three-term president in the history of the University of Ulsan, having led the university into the Glocal University 30 initiative and improved its performance in global university rankings, thereby significantly raising its status and capabilities. #OhYeoncheon #UniversityofUlsan #Koreanuniversity #glocaluniversity #SNU #financialmanagement #universitypresident #highereducation #Ulsan #Koreanscholar
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President of the University of Ulsan
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CEO of KSOE
Kim Sung-joon
- Kim Sung-joon is the Vice President and CEO of HD Korea Shipbuilding & Offshore Engineering (KSOE). He is focusing on gaining a competitive edge in the future shipbuilding industry through orders for eco-friendly vessels and the development of autonomous navigation technologies. HD Korea Shipbuilding & Offshore Engineering is an intermediate holding company under the HD Hyundai Group. It has under its umbrella the three major shipbuilding companies: HD Hyundai Heavy Industries, HD Hyundai Samho, and HD Hyundai Mipo. He was born on June 5, 1970. He graduated from Joongdong High School in Seoul and earned a bachelor's degree in Naval Architecture and Ocean Engineering from Seoul National University. He also obtained a master's degree in the same field from Seoul National University Graduate School and a Ph.D. in Ocean Engineering from the Massachusetts Institute of Technology (MIT) in the United States. After serving as a partner at Boston Consulting Group in the United States, he joined Hyundai Heavy Industries in 2016 as an executive director in charge of technology planning and quality planning within the Planning Team. In 2018, he served as head of the Planning and Synergy Promotion Division at Korea Shipbuilding & Offshore Engineering, and later as head of the Future Technology Research Institute, before being promoted to Vice President and CEO of HD Korea Shipbuilding & Offshore Engineering in 2023. He is regarded as a key figure to lead technological and managerial innovation within HD Hyundai Group, which is solidifying the third-generation ownership system under Chung Ki-sun. #KimSungjoon #HDKoreaShipbuilding #HDHyundaiGroup #shipbuildingindustry #autonomousships #greenenergy #MITalumni #futuretechnology #ChungKisun #SouthKoreaindustry
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CEO of KSOE
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CEO of AhnLab
Kang Suk-kyoon
- Kang Suk-kyoon is the CEO of AhnLab. As the company marks its 30th anniversary, he is aiming to elevate it to a world-class enterprise. He was born on September 22, 1960. He graduated from the Department of English Language and Literature at Korea University and completed the MBA program at the Helsinki School of Economics in Finland. He worked as a senior executive at Accenture’s Financial Services Group before moving to Kolon Benit, where he served as managing director. He then joined IBM Korea, where he led the Financial Services Sales Division and later served as head of the Storage Business Division. He also led solution sales at Benit and was country manager of Informatica Korea before joining AhnLab in 2013. He served as Executive Vice President of the Business Division, then as Vice President of EP and EPN Business Units, before being appointed CEO and President in 2020. As a management expert with experience in key positions at domestic and international IT companies and global consulting firms, he has led AhnLab’s business diversification and global expansion. #KangSukkyoon #AhnLab #cybersecurity #KoreanIT #CEO #globalexpansion #businessdiversification #Accenture #IBM #KoreaUniversity
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CEO of AhnLab
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Vice President of Hana Pharm
Cho Dong-hoon
- Cho Dong-hoon is the Executive Vice President in charge of management at Hana Pharm. He is accelerating efforts to expand into the Southeast Asian market and secure a lineup of opioid analgesics. He was born on September 26, 1980, as the eldest son of Cho Kyung-il, the founder of Hana Pharm. He graduated from the Business Administration Department at the University of Hawaii in the United States and joined Hana Pharm in 2006. He worked in the Seoul General Hospital Sales Team and served as Head of the Management Division before being promoted to Executive Vice President in 2015. He gained experience in the pharmaceutical and biotech sectors by working in various departments including sales, marketing, and planning. He is credited with contributing to the establishment of a stable revenue base for Hana Pharm. He is overseeing overall management and focusing on strengthening the company’s overseas business. #ChoDonghoon #HanaPharm #pharmaceuticals #biotech #SoutheastAsia #opioidanalgesics #KoreaPharma #executiveleadership #globalexpansion #businessstrategy
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Vice President of Hana Pharm
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CEO of Genians
Lee Dong-bum
- Lee Dong-bum is the CEO of Genians. He is the founder of Genians, an information security software company. He is focusing on zero trust solutions and global market expansion. He was born on June 5, 1969. He graduated from the Department of Information Engineering at Sungkyunkwan University. Utilizing his major, he chose Doosan Information & Communications as his first job. After moving to AlloSystem Tech, he led the development of VPN (Virtual Private Network) solutions as the head of the research lab. Through this, he helped the company become the No.1 VPN provider in South Korea. After experiencing the challenges of expanding VPN solutions abroad, he established Genie Networks (now Genians) in 2005 with the goal of developing a new solution capable of global market success. He positioned the company as the top domestic provider of NAC (Network Access Control solutions) and EDR (Endpoint Detection and Response solutions). He served as the chairman of the Korea Information Security Industry Association (KISIA). #LeeDongbum #Genians #cybersecurity #VPN #NAC #EDR #KISIA #zeroTrust #informationSecurity #startupCEO
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CEO of Genians
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President of Seoul Women’s University
Lee Yoon-sun
- Lee Yoon-sun is the president of Seoul Women’s University. She took office on March 1, 2025. She aims to build a university that strengthens the foundation of education and research while fulfilling its social responsibilities. Born in 1969, she graduated from the Department of Educational Psychology at Seoul Women’s University. She earned a master’s degree in education from the graduate school of Seoul Women’s University and a doctorate in education from the University of Washington in the United States. In 2008, she was appointed as a professor in the Department of Educational Psychology at her alma mater, Seoul Women’s University. She served in various key positions including Director of International Cooperation, Director of the Barom Character Education Research Center, Dean of Student Affairs, Secretary General, Director of Planning, and Head of the Data Innovation Office, before taking office as president of Seoul Women’s University in March 2025. Having held a wide range of major administrative roles, she has a deep understanding of university operations. Notably, just before becoming president, she led the Data Innovation Office directly under the president, where she established a data-based decision-making and management analysis system. Before joining Seoul Women’s University, she worked as an assessment director at the Washington State Department of Education in the United States and later served as a consultant for the ETS Achievement Test after becoming a professor. She served as Chair of the Education Services Committee and as Editor-in-Chief of the Korean Society for Business Education. She has proposed the key principles of university management as “a right university,” “an open university,” and “a strong university.” #LeeYoonSun #SeoulWomensUniversity #universitypresident #highereducation #datainnovation #educationleadership #ETSconsultant #WashingtonUniversity #charactereducation #universitymanagement
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President of Seoul Women’s University
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CEO of Celltrion
Seo Jin-seok
- Seo Jin-seok is the CEO of Celltrion in charge of overall management. He manages Celltrion as a co-CEO alongside Vice Chairmen Ki Woo-sung and Kim Hyoung-ki. He is the eldest son of Seo Jung-jin, Chairman of Celltrion and its founder. He was born on August 16, 1984. He graduated from the Department of Animal Science and Biotechnology at Seoul National University and received both his master’s and doctorate degrees from the Graduate School of Nanoscience and Technology in Life Science Engineering at KAIST (Korea Advanced Institute of Science and Technology). After joining the Celltrion Life Science Research Institute, he served as head of product planning at the Celltrion R&D Division and as Executive Vice President of Celltrion Skincure, before being appointed CEO of Celltrion Skincure in 2017. He returned to Celltrion as Senior Executive Vice President and Head of Product Development. After his father, Chairman Seo Jung-jin, announced his retirement from management, Seo Jin-seok stepped to the forefront by serving as Chairman of the Board of Directors at Celltrion, an inside director at Celltrion Healthcare Holdings, and an inside director at Exdati Therapeutics, a UK biotech company invested in by Celltrion. Following the 2023 merger of Celltrion and Celltrion Healthcare, he has been leading the company as co-CEO of Celltrion. Since his father, Chairman Seo Jung-jin, had long stated his intention to separate ownership and management and had drawn a line against succession of control, proving his management capability became the top priority. #SeoJinSeok #Celltrion #biotech #CEO #SeoJungJin #managementsuccession #KAIST #SNUalumni #CelltrionHealthcare #ExdatiTherapeutics
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CEO of Celltrion
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CEO of Samhyun
Hwang Sung-ho
- Hwang Sung-ho is the CEO of Samhyun. As a company specializing in actuators, it aims to lead the motion control industry, ranging from mobility to defense. He was born on March 27, 1958. He graduated from the Department of Political Science and Diplomacy at Kyungnam University. He earned a Master’s degree in Business Administration from the Kyungnam University Graduate School of Business and a Doctorate in Business Administration from the Kyungnam University Graduate School. In 1985, he joined Taeyang Machinery Industry. After leaving the company, he founded Samhyun in 1988 and became its CEO. The company provides electrification systems and eco-friendly mobility solutions across five major sectors: automobiles, shipbuilding, robotics, defense, and the urban air mobility (UAM) industry. It has secured large corporate clients such as Hyundai Motor and Hanwha Systems, solidifying its market position. #HwangSungHo #Samhyun #mobilitysolutions #actuators #motioncontrol #defenseindustry #robotics #HyundaiMotor #HanwhaSystems #UAM
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CEO of Samhyun
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CEO of HigenRNM
Kim Jae-hak
- Kim Jae-hak is the CEO of HigenRNM. He is focusing on new businesses such as robotics and electric vehicle parts. He was born on September 27, 1948. He graduated from Kyunggi High School in Seoul and went on to earn a degree in Mechanical Engineering from Seoul National University. He received a master's degree and a doctoral degree in Mechanical Engineering from the Massachusetts Institute of Technology (MIT) and the University of California, Berkeley (UC Berkeley), respectively. He also completed an MBA program at Harvard Business School. He began his career at Korea Heavy Industries & Construction (now Doosan Enerbility), where he served in roles such as Director of the General Planning Office and Executive Director of the Technology Division. He also worked as an Industrial Energy Technology Advisor for China and Mongolia at the World Bank (IBRD). He later joined POSCO E&C as Executive Vice President of the Overseas Business Division, and returned to Korea Heavy Industries & Construction to serve as Senior Executive Vice President. After the company was privatized and renamed Doosan Heavy Industries & Construction, he became Executive Vice President and CEO. He then moved to Hyosung, where he served as Head of the Hyosung Heavy Industries PG and CEO of Hyosung. In 2008, he founded Higen Motor (now HigenRNM), transitioning from a professional manager to an owner-operator. He values communication. He aims to reduce hierarchy and formalities to foster a culture of flexible communication. He has a deep understanding of culture and the arts, having served as Chairman of the National Chorus of Korea for eight years, from the Lee Myung-bak administration through the second year of the Moon Jae-in administration. #KimJaeHak #HigenRNM #KoreanCEOs #roboticsindustry #EVcomponents #Hyosung #DoosanEnerbility #MITalumni #UCberkeley #Koreanbusinessleaders
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CEO of HigenRNM
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CEO of SOSLAB
Jeong Ji-seong
- Jeong Ji-seong is the CEO of SOSLAB. He is the founder of SOSLAB, a smart optical sensor company that develops and manufactures LiDAR. He is fully devoted to technology development, viewing LiDAR for autonomous vehicles as the company's future growth engine. He is also focusing on expanding markets for industrial safety and security solutions, as well as parking control solutions. He was born on November 13, 1986. He graduated from the Department of Mechanical Control Engineering at Handong Global University and earned a master’s degree in Information and Mechatronics Engineering from Gwangju Institute of Science and Technology (GIST). While pursuing a doctoral program in the Department of Mechanical Engineering at GIST, he founded SOSLAB with three colleagues and became its CEO. The company is considered the most advanced among domestic LiDAR companies. #JeongJiseong #SOSLAB #LiDAR #AutonomousVehicles #SmartSensors #KoreanStartup #GIST #IndustrialSafety #ParkingSolutions #KoreanTechEntrepreneur
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CEO of SOSLAB
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CEO of Hana Securities
Kang Seong-muk
- Kang Seong-muk is Vice Chairman of Hana Financial Group and President and CEO of Hana Securities. He oversees the group's retail, wealth management, corporate and investment banking (CIB), and capital markets businesses, focusing on enhancing expertise and expanding collaboration. He is tasked with successfully securing the megainvestment bank (IB) license for the securities firm. He was born on September 27, 1964, in Cheongju. He graduated from Cheongju Shinheung High School and the Department of Sociology at Sogang University. He began his career at Commercial Bank. At Hana Bank, he served as Branch Manager of the Bundang Central Branch, Head of Management Support and Sales Support Groups, and Deputy President, and later became Vice President of Hana UBS Asset Management. In 2022, he was appointed CEO of Hana Alternative Asset Management. In 2023, he was named CEO of Hana Securities and Vice Chairman of the financial holding company. At the end of 2024, he was listed as a candidate for Chairman of Hana Financial Group, solidifying his standing within the group. He is recognized as a sales expert with comprehensive experience in retail, corporate banking, and asset management. He is known for his modest and humble character. #KangSeongmuk #HanaFinancialGroup #HanaSecurities #KoreanFinance #InvestmentBanking #AssetManagement #LeadershipProfile #FinancialExecutive #CIB #KoreaBusiness
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CEO of Hana Securities
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President of Chonnam National University
Lee Keun-bae
- Lee Keun-bae is the President of Chonnam National University. He took office on February 26, 2025. His term is four years. He aims to elevate the university to a research-oriented institution and to focus on producing talent that will lead regional innovation. He was born on December 6, 1963. He graduated from the College of Medicine at Chonnam National University and received both his master’s and doctoral degrees in medicine from the graduate school of the same university. He joined the faculty as a professor in the Department of Orthopedic Surgery at Chonnam National University’s College of Medicine, and served as the head of the Department of Orthopedic Surgery at Chonnam National University Hospital and director of the Biomedical Research Institute. Within the university, he served as Chair of the Chonnam National University Council and was the inaugural Chair of the Faculty Association. Externally, he was active as the President of the Association of Professors of National Flagship Universities and Executive Chairman of the Association of Professors of National and Public Universities in Honam and Jeju. In academia, he actively participated as Vice President of the Asia-Pacific Foot and Ankle Society, and served as President of the Korean Fracture Society, Korean Foot and Ankle Society, and Korean Orthopaedic Sports Medicine Society. In 2023, he became a regular member of the National Academy of Medicine of Korea. He is considered a leading authority in the field of foot fracture treatment in South Korea. #LeeKeunbae #ChonnamNationalUniversity #CNUPresident #orthopedics #medicalacademia #footfractureexpert #researchuniversity #regionalinnovation #Koreanmedicine #universityleadership
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President of Chonnam National University
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Minister of Employment and Labor
Kim Moon-soo
- Kim Moon-soo is the Minister of Employment and Labor. In 2025, amid the political turmoil following the impeachment of President Yoon Suk-yeol, he rapidly emerged as a leading presidential contender. He was born on August 27, 1951, in Yeongcheon, North Gyeongsang Province, as the third son among four sons and three daughters. He graduated from Kyungbuk High School in Daegu and entered the Department of Business Administration at Seoul National University, but was expelled due to involvement in the Mincheonghakryeon (National Democratic Youth and Students Federation) incident. He later graduated in 1994, 25 years after first enrolling. As a university student, he worked as a sewing machine operator in Seoul’s Guro Industrial Complex to participate in the labor movement. He served as the union leader at Hanil Doruko under the Korean Metal Workers' Union. He was taken to the Namyeong-dong anti-communist investigation office in Seoul, where he was tortured and later imprisoned in Seodaemun Detention Center. In 1986, he was imprisoned for leading the campaign to amend the constitution for direct presidential elections and was released in 1988 through a special amnesty. Declaring that “the era of revolution is over,” he joined the New Korea Party (now the People Power Party) and was elected in the 15th general election in 1996, representing Sosa District in Bucheon. He went on to serve three terms in the National Assembly. In the 4th local elections in 2006, he ran as the Grand National Party candidate for Gyeonggi Province Governor and was elected. He was re-elected for a second term. He ran in the Saenuri Party’s presidential primary for the 18th presidential election in 2012 but lost to Park Geun-hye. After that, Kim Moon-soo’s political career declined. In the 2016 general election, he ran in the conservative stronghold of Suseong District A in Daegu but was defeated. He also ran for Seoul Mayor in the 2018 local elections but lost. In 2020, he left the Liberty Korea Party (now the People Power Party) and became the leader of the Liberty Unification Party, later serving as co-chair of the Liberty Republican Party. At this time, he was seen as having shifted to the far-right camp. Following the launch of the Yoon Suk-yeol administration, he made a high-profile return as the first chairman of the Economic, Social and Labor Council. In August 2024, he was appointed as Minister of Employment and Labor. #KimMoonsoo #EmploymentandLabor #Koreanpolitics #YoonSukyeol #2025election #GyeonggiGovernor #SeoulNationalUniversity #labormovement #farRight #PeoplePowerParty
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Minister of Employment and Labor
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CEO of SFA
Kim Young-min
- Kim Young-min is the President and CEO of SFA. He also serves as the CEO of its affiliate, SFA Semiconductor. He was born on January 25, 1967. He graduated from Daegu High School and the Department of Ceramic Engineering at Yonsei University. He earned a master's degree in Inorganic Materials Engineering from the Korea Advanced Institute of Science and Technology (KAIST). He also completed an MBA program at Columbia University in the United States. He began his career at POSCO, and gained experience in finance through positions at consulting firm Bain & Company and Citigroup’s offices in New York, Hong Kong, and Seoul. He joined SFA in 2009 as Chief Financial Officer (CFO). In 2012, he was appointed President and CEO of SFA. He has diversified the company’s portfolio from display manufacturing to secondary batteries and semiconductors. SFA was founded during the Asian financial crisis by 252 engineers who spun off from the automation business unit of Samsung Techwin (formerly Samsung Aerospace, now Hanwha Aerospace). #KimYoungmin #SFA #SFASemiconductor #HanwhaAerospace #POSCO #ColumbiaUniversity #KAIST #secondarybattery #semiconductor #displaymanufacturing
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CEO of SFA
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CEO of SK Telecom
Ryu Young-sang
- Ryu Young-sang is the President and CEO of SK Telecom. He is focusing on developing artificial intelligence (AI) as a future growth engine, based on the company’s core telecommunications business. He was born on May 15, 1970. He graduated from the Department of Industrial Engineering at Seoul National University and earned a master’s degree in industrial engineering from the same university's graduate school. He completed an MBA program at the University of Washington Business School in the United States. He began his career at Samsung C&T. He later moved to SK Telecom, where he served as Head of Business Development. He then became Head of Business Development at SK C&C before returning to SK Telecom to serve as Head of Strategic Planning, Head of the Corporate Center, and Chief Financial Officer (CFO). He also served as Executive Vice President of the Mobile Business Division and as head of the AI strategy task force “Apollo.” In 2021, when SK Telecom was split into holding company SK Square and business entity SK Telecom, he was appointed President and CEO of SK Telecom. In 2023, he briefly served as CEO of SK Broadband for seven months before stepping down to become Chairman of the Board. On the day he was appointed CEO of SK Telecom, he set a target of achieving KRW 23 trillion (US$ 16.6 billion) in revenue by 2025. He is known as an expert in mergers and acquisitions (M&A), having led major deals such as the acquisitions of Hynix, Toshiba, and ADT Caps. Within the SK Group, he serves as Chairman of the ICT Committee of the SUPEX Council. Outside the group, he is active as Chairman of the Korea Association for ICT Promotion (KAIT). He enjoys strong trust from Park Jung-ho, Vice Chairman and CEO of SK Square. He is known for his active communication style and emphasis on a spirit of challenge. #RyuYoungsang #SKTelecom #AIstrategy #telecomindustry #KAIChairman #M&Aexpert #SKGroup #SUPEXCouncil #KoreaICT #2025revenuegoal
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CEO of SK Telecom
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CEO of Samsung SDI
Choi Joo-sun
- Choi Joo-sun is the President and CEO of Samsung SDI. He is accelerating research and development to diversify products. He is also focusing on expanding the customer base. He was born on May 21, 1963. He graduated from Daedong High School in Busan and the Department of Electronic Engineering at Seoul National University. He earned both his master’s and doctoral degrees in electronic engineering from KAIST. He began his career at Hynix Semiconductor as a DRAM design researcher. He later moved to Samsung Electronics, where he worked as a principal researcher in the ATD team of the Memory Division. He went on to serve as Head of DRAM Development at Samsung Electronics’ Memory Division and Head of North America for the Device Solutions (DS) Division, before being appointed President and CEO of the Large Display Business at Samsung Display in 2020. In 2024, he was appointed President and CEO of Samsung SDI. As a technology expert with an engineering background, he has been brought in as a 'relief pitcher' to overcome the chasm. Within Samsung, he led the growth of both the semiconductor and display businesses. He is a full member of the National Academy of Engineering of Korea and serves as the chairman of the Korea Display Industry Association. Based on his management performance at Samsung Display, there are high expectations that he will also lead profitability recovery and technological innovation at Samsung SDI. #ChoiJoosun #SamsungSDI #SamsungDisplay #semiconductor #displayindustry #R&D #KAIST #CEOleadership #KoreaTech #electronicsindustry
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CEO of Samsung SDI
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CEO of CIS
Kim Dong-jin
- Kim Dong-jin is the CEO of CIS. He has led revenue growth and technological innovation by driving management efficiency and business expansion. He was born on July 15, 1966. He graduated from the Department of Control and Instrumentation Engineering at Seoul National University. He worked in control design at Samsung Aerospace and Hanwha Q CELLS before joining SFA, where he served as team leader, director, head of R&D Center 2, and managing director. In 2023, when SFA acquired CIS, he was appointed CEO of CIS. He is a control design expert with 20 years of experience in the field. He contributed to strengthening competitiveness in the next-generation battery market by developing a hybrid coater and carrying out a national project on all-solid-state batteries. #KimDongjin #CIS #controlengineering #SeoulNationalUniversity #SFA #batterymarket #allsolidstatebattery #hybridcoater #techleadership #Koreanelectronics
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CEO of CIS
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CEO of Hyvision System
Choi Doo-won
- Choi Doo-won is the CEO of Hyvision System. He is the founder of Hyvision System, a company specializing in inspection equipment for mobile phone camera modules. He is focusing on business diversification into secondary battery equipment, as well as bio and semiconductor inspection equipment. He was born on January 10, 1971. He graduated from the Department of Electronic Engineering at Kyungwon University (now Gachon University). After gaining nearly 10 years of experience as an engineer at Anam Electronics, Hansol Electronics, and Hyundai Electronics (now SK hynix), he founded Hyvision System in 2002. Through technological development and innovation, he grew the company into a leading player in the mobile phone camera module inspection equipment industry. He takes great pride in being a CEO with an engineering background. #ChoiDoowon #HyvisionSystem #cameraequipment #inspectiontechnology #GachonUniversity #SKhynix #secondarybattery #semiconductorequipment #bioinspection #engineeringCEO
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CEO of Hyvision System
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CEO of HD Hyundai XiteSolution
Cho Young-cheul
- Cho Young-cheul is the President and CEO of HD Hyundai XiteSolution. He also serves as the President and CEO of its subsidiary, HD Hyundai Infracore. Alongside President Lee Dong-wook, he leads HD Hyundai XiteSolution (formerly Hyundai Genuine), the intermediate holding company for HD Hyundai Group's construction equipment division, under a co-CEO system. He aims to elevate the company into the global top five in the construction equipment sector. To achieve this, he is focusing on acquiring capabilities in new technologies, including unmanned and autonomous construction machinery. He was born on May 25, 1961, in Busan. He graduated from Geumseong High School in Busan and studied Agricultural Economics at Korea University. He began his career at Hyundai Heavy Industries. He later moved to Hyundai Oilbank, where he served as the Head of the Finance Division and Head of Management Support Headquarters, before returning to Hyundai Heavy Industries as Managing Director of the Corporate Planning Office's Management Analysis Task Force Team. In 2015, he was appointed CEO of Hyundai Futures. He then served as the Head of the Seoul Office and Chief Financial Officer (CFO) at Hyundai Heavy Industries, and as Executive Vice President and Head of Management Support at Korea Shipbuilding & Offshore Engineering, before being appointed President and CEO of HD Hyundai XiteSolution upon its launch in 2021. He also took on the role of CEO of its subsidiary, HD Hyundai Infracore. He played a key role in the acquisition of Daewoo Shipbuilding & Marine Engineering and the initial public offering (IPO) of Hyundai Heavy Industries. He is interested in generating synergies through the integration of human and material resources between HD Hyundai Construction Equipment and HD Hyundai Infracore. He is known as a financial expert within the HD Hyundai Group and is recognized as a leader who is both approachable and decisive. #ChoYoungcheul #HDHyundaiXiteSolution #HDHyundaiInfracore #constructionequipment #HyundaiHeavyIndustries #financialexpert #DaewooShipbuilding #HyundaiIPO #KoreaUniversity #autonomousmachines
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CEO of HD Hyundai XiteSolution
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CEO & Vice Chairman of Samsung Electronics
Han Jong-hee
- Han Jong-hee is Vice Chairman and CEO of Samsung Electronics, as well as Head of the DX (Device eXperience) Division. He oversees Samsung Electronics’ finished products and consumer electronics business. He is dedicated to innovating AI-powered home appliances and actively investing in four key new business areas: healthcare, robotics, automotive electronics, and HVAC (heating, ventilation, and air conditioning). He was born on the 15th day of the 2nd lunar month in 1962. He graduated from Cheonan High School and earned a degree in electronic engineering from Inha University. After joining the development team of Samsung Electronics' Visual Display Division, he focused on TV research and development, serving as the head of the LCD TV Lab, development team leader, and development group leader. He later became the head of the Visual Display Product Development Team and was promoted to President and Head of the Visual Display (VD) Division in 2017. In 2021, he was appointed Vice Chairman and CEO of Samsung Electronics, concurrently serving as Head of the DX Division. Since 2024, he has also served as Chairman of the newly established Quality Innovation Committee. He is exploring new growth engines for Samsung Electronics in fields such as the metaverse and robotics. He is a TV expert who has led Samsung Electronics to rank No. 1 in global TV market share for 19 consecutive years. #HanJonghee #SamsungElectronics #DXDivision #VisualDisplay #AIHomeAppliances #TVExpert #MetaverseInnovation #RoboticsInvestment #ExecutiveLeadership #GlobalTVMarketShare
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CEO & Vice Chairman of Samsung Electronics
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CEO & President of KB Life Insurance
Jeong Mun-cheol
- Jeong Mun-cheol is the CEO and President of KB Life Insurance (KB Life). He is focusing on stabilizing the integrated corporation and driving growth in new businesses centered around the long-term care sector. He was born on August 3, 1968. He graduated from Jeonju High School in Jeonbuk and the Department of Business Administration at Seoul National University. He completed an MBA program at the KAIST Graduate School of Management (Techno MBA). He joined KB Kookmin Bank and served as Head of the Financial Planning Department, Head of the Strategy Division, and Executive Director in charge of Public Relations and Branding at KB Financial Group. He also held positions as Executive Vice President of the Corporate Strategy Group and the SME Client Group at KB Kookmin Bank. He was the Vice President of the Retail Customer Group before being appointed CEO of KB Life Insurance in January 2025. He has accumulated broad experience in core management departments such as finance, strategy, and corporate planning at KB Kookmin Bank. He is known for his ability to manage business comprehensively and across the board. #JeongMunCheol #KBLifeInsurance #CEO #CorporateStrategy #LongTermCare #KAISTMBA #FinancialLeadership #PublicRelations #KookminBank #BrandManagement
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CEO & President of KB Life Insurance
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CEO & President of Samsung Card
Kim Yi-Tae
- Kim Yi-Tae is the CEO and President of Samsung Card. He is focused on strengthening digital capabilities and discovering future growth engines. He was born on February 22, 1966, in Hadong, Gyeongsangnam-do. He graduated from Gyeongsang High School in Masan and earned a degree in Business Administration from Seoul National University. He also received a master’s degree in Business Administration from the Graduate School of Business at Seoul National University, and later obtained a Ph.D. in Finance from the University of Missouri in the United States. He began his public service career by passing the 36th Higher Civil Service Examination and worked as an official in the Ministry of Finance. He served in the International Finance Bureau of the Ministry of Strategy and Finance, including roles in the International Finance Division and the Sovereign Wealth Fund Division, and was dispatched to the IMF’s Monetary and Capital Markets Department. After 22 years in public service, he joined Samsung Electronics’ Business Support Office, where he held various positions such as Executive in charge of the IR Group, Head of Strategy Group, Head of Global Communications Group, and Head of External Cooperation Team. In 2023, he was appointed CEO of Samsung Venture Investment. In 2024, he was named CEO and President of Samsung Card. He is regarded as a global expert with extensive experience and networks in the financial sector. #KimYiTae #SamsungCard #CEO #DigitalTransformation #FutureGrowth #FinanceExpert #PublicService #IMF #SamsungElectronics #GlobalFinance #Leadership
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CEO & President of Samsung Card
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President of Ewha Womans University
Lee Hyang-sook
- Lee Hyang-sook is the president of Ewha Womans University. She took office on February 1, 2025. She aims to lead the university in an era of great transformation through inclusive innovation. She was born on October 22, 1963, in Seoul. After graduating from Seomun Girls' High School, she earned her bachelor's degree in mathematics from Ewha Womans University. She then obtained her master's degree in mathematics from Ewha Womans University Graduate School and her doctorate in mathematics from Northwestern University in the United States. In 1995, she joined the Department of Mathematics at Ewha Womans University as a professor and has since served as Director of Research Affairs, Head of the Industry-Academic Cooperation Foundation, and Director of the Entrepreneurship Center. On February 1, 2025, she was inaugurated as the president of Ewha Womans University. She is the first president from a science and engineering background in the university’s history. Externally, she has served as Senior Vice Chair of the International Congress of Mathematicians Organizing Committee, a board member of the National Research Council of Science & Technology, and a board member of the National Research Foundation of Korea. She was elected as the first female president of the Korean Mathematical Society in its 70-year history. As a leading scholar in cryptography, she is recognized as one of the most prominent female scientists in the field both in Korea and internationally. #LeeHyangsook #EwhaWomansUniversity #mathematics #cryptography #universitypresident #STEM #womeninSTEM #KoreanMathematicalSociety #highereducation #scienceleadership
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President of Ewha Womans University
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Chairman of Simmtech
Chun Se-ho
- Chun Se-ho is the Chairman of Simmtech. He also serves as the Chairman of the Board at Simmtech. To overcome challenges in the semiconductor industry, he is focusing on the high-value MSAP substrate business. He was born on May 15, 1956, in Seoul. He graduated from Seoul Jungang High School and earned a degree in Korean Language and Literature from Korea University. He then completed an MBA program at Fairleigh Dickinson University in the United States. After working as the Head of Planning and Management at Cheongbang, a textile manufacturing company founded by his father, he became interested in the printed circuit board (PCB) business. As a result, he left his management training and established Simmtech in 1987. He served as CEO for 30 years. In 2015, he restructured Simmtech into a holding company by spinning off its PCB business unit and has since been serving as Chairman. He has a strong spirit of challenge and considers "honesty" the most important virtue in business management. He is a devout Christian and serves as an elder at Bogumchon Church. #ChunSeho #Simmtech #semiconductor #MSAP #PCB #businessleader #Korea #CEO #entrepreneur #technology
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Chairman of Simmtech
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CEO of Medipost
Oh Won-il
- Oh Won-il is the CEO of Medipost. He is working to expand into the global market with "Cartistem," a knee osteoarthritis treatment. He was born on October 2, 1962. He graduated from Seoul National University College of Medicine and earned his master's and doctoral degrees in medicine from Seoul National University Graduate School. After serving as a clinical instructor at Ulsan University College of Medicine's Asan Medical Center in Seoul, he worked as an assistant professor at Sungkyunkwan University School of Medicine's Samsung Medical Center. He joined Medipost in 2004 and held positions as Head of R&D and Vice President before being appointed CEO in 2022. He is expanding the market with the stem cell therapy "Cartistem" and the proprietary "SMUP-Cell" technology platform. #OhWonil #Medipost #Cartistem #stemcell #biotechnology #medicalresearch #healthcare #SamsungMedicalCenter #SeoulNationalUniversity #biopharma
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CEO of Medipost
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CEO of Kyobo Securities
Park Bong-kwon
- Park Bong-kwon is the CEO and President of Kyobo Securities. He leads Kyobo Securities under a co-CEO system alongside President Lee Seok-ki. He is focused on securing future growth engines and differentiating the company. He was born in September 1963 in Busan. He graduated from Busan Nam High School and earned a degree in law from Seoul National University. He later obtained a Master’s degree in law from the Graduate School of Dong-A University. He joined Kyobo Life Insurance, where he was responsible for stock and bond investments. He worked at HDC Asset Management, Fides Asset Management, and the National Pension Service before becoming Executive Vice President and Head of Asset Management at Kyobo Securities. He returned to Kyobo Life Insurance, where he served as Vice President and Chief Investment Officer (CIO). In 2020, he was appointed as CEO and President of Kyobo Securities. During his time as a fund manager at the National Pension Service, he was recognized as an expert in fund management. #ParkBongkwon #KyoboSecurities #investment #CIO #assetmanagement #finance #KoreaStockMarket #KyoboLife #NationalPensionService #business
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CEO of Kyobo Securities
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CEO of Sukgyung AT
Lim Hyung-sup
- Lim Hyung-sup is the CEO of Sukgyung AT. He leads Sukgyung AT, a company specializing in nanomaterials. He was born on September 25, 1959. He graduated from the Department of Inorganic Materials Engineering at Hanyang University. After joining Samsung Electro-Mechanics (now Samsung SDI), he gained experience in materials at Inseong Engineering, Sunjin Chemical, and Sukgyung Chemical (now Sukgyung AT). In 2001, when Sukgyung AT was incorporated, he became the CEO and largest shareholder. By focusing on securing core technologies, he developed the company into the only firm in South Korea equipped with all four fundamental nanomaterial technologies. #LimHyungsup #SukgyungAT #nanomaterials #SamsungSDI #HanyangUniversity #materialsengineering #technology #manufacturing #innovation #KoreaTech
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CEO of Sukgyung AT
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CEO of Yuil Robotics
Kim Dong-heon
- Kim Dong-heon is the CEO of Yuil Robotics. In 2024, he successfully attracted investment from SK Group and is now focusing on expanding into the global market based on this achievement. He was born on January 10, 1965. He graduated from the Department of Mechanical Engineering at Yuhan University and later completed a degree in Japanese Studies at Korea National Open University. He earned a Master’s degree in Industrial Engineering from the Graduate School of Engineering at Korea University. He began his career at Aviman Engineering (formerly Yudosuns), an integrated engineering company specializing in injection molding and cutting processing. After working in the injection molding equipment industry for over 20 years, he founded Yuil Systems (now Yuil Robotics) in May 2010 with the dream of localizing robotics in South Korea. By leading the localization of three major industrial robots, he contributed to the technological independence of South Korea’s robotics industry. #KimDongheon #YuilRobotics #SKGroup #robotics #industrialrobots #KoreaUniversity #engineering #manufacturing #localization #technology
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CEO of Yuil Robotics
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CEO of Shinsegae Property
Lim Young-rok
- Lim Young-rok is the President and Head of Business Strategy at Shinsegae Group, as well as the President and CEO of Shinsegae Property. He is focusing on securing new growth engines by diversifying the business beyond the complex shopping mall "Starfield." He was born in September 1964 in Hapcheon, Gyeongsangnam-do. He graduated from Jinju High School in Gyeongsangnam-do and earned a bachelor's degree in Political Science and International Relations from Sungkyunkwan University. He obtained a master's degree in Real Estate from the Sungkyunkwan University Graduate School of Business and a doctorate in Real Estate from Kangwon National University Graduate School. In 1997, he joined Shinsegae Engineering & Construction's Development Sales Team and built his career in planning and development, serving as Planning Manager in the Management Support Office of Shinsegae Group, Team Leader of the Development Planning Team, and Vice President of Development. In 2016, he was appointed CEO of Shinsegae Property. Since 2023, he has also been serving as the President and Head of the Business Strategy Office, the control tower of Shinsegae Group. He is a leading real estate and development expert within Shinsegae Group. He is regarded as a professional manager who enjoys strong trust from the owner family. #LimYoungrok #Shinsegae #ShinsegaeProperty #Starfield #realestate #businessstrategy #CEO #SouthKorea #retail #development
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CEO of Shinsegae Property
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Vice Chairman of Celltrion
Kim Hyoung-ki
- Kim Hyoung-ki is the Vice Chairman and CEO of Celltrion. He is focused on securing a strong foothold in overseas markets for "Remsima SC," a biosimilar for autoimmune diseases. He was born on May 3, 1965, in Dangjin, Chungnam. He graduated from Suwon High School and earned a degree in political science and diplomacy from Sogang University. He later completed an MBA program at the University of Michigan's Ross School of Business. He began his career at Daewoo Motors, where he worked as the head of the strategic planning team. When Seo Jung-jin founded Nexol, the predecessor of Celltrion, Kim joined the company and held key roles such as head of strategic planning, chief of staff, and head of corporate planning and coordination. He served as Senior Executive Vice President and President of Celltrion before becoming Co-CEO. Later, he was appointed Vice Chairman and CEO of Celltrion Healthcare, a Celltrion subsidiary. Following the merger of Celltrion and Celltrion Healthcare, he became Vice Chairman and CEO of the newly integrated Celltrion's Global Business Division. He is known as one of Chairman Seo Jung-jin’s most trusted and closest aides. At Celltrion, he effectively acted as the Chief Financial Officer (CFO) and played a key role in leading the company's transfer to the KOSPI stock exchange. He is widely regarded as "Chairman Seo's shield" for his proactive handling of various accounting-related controversies. #Celltrion #KimHyoungki #biosimilars #pharmaceuticals #RemsimaSC #businessleadership #finance #Korea #SeoJungjin #CFO
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Vice Chairman of Celltrion
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Vice Chairman of GS Holdings
Hong Soon-ki
- Hong Soon-ki is the Vice Chairman and CEO of GS. GS is the holding company of GS Group. He is dedicated to identifying new business opportunities for the group and strengthening financial stability. He was born on March 1, 1959, in Busan. He graduated from Jinju Daea High School and earned a degree in economics from Pusan National University. He received a master's degree in economics from Yonsei University. He joined Honam Oil Refinery (now GS Caltex) and worked at LG Restructuring Headquarters and LG Oil Refinery. After GS Group was separated from LG, he moved to the holding company GS, where he built his career in finance, rising from executive director in the finance team to president. In November 2024, he was appointed as the sole Vice Chairman and CEO of GS Group. He is the leading financial expert in GS Group, assisting Chairman Huh Tae-soo. #GSGroup #HongSoonki #GSViceChairman #KoreaBusiness #FinancialExpert #CorporateLeadership #GSCaltex #LGGroup #Economist #BusinessStrategy
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Vice Chairman of GS Holdings
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CEO of Igloo Corporation
Lee Deuk-choon
- Lee Deuk-choon is the CEO of Igloo Corporation. He is dedicated to the research and development of security management solutions incorporating artificial intelligence (AI) and expanding their market reach. He was born on May 24, 1963. He graduated from Inha University with a degree in Electronic Computing. He worked in the networking field at Nuri and Sambo Computer before serving as the Head of the Information Security Business Division at Cybertel Holdings. In 1999, he founded Igloo Security (now Igloo Corporation) and launched SPiDER, an integrated security management solution. He has grown Igloo Corporation into the No. 1 company in the domestic integrated security management sector. #LeeDeukchoon #IglooCorporation #cybersecurity #AIsecurity #SPiDER #securitymanagement #Koreantech #techCEO #informationsecurity #businessleader
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CEO of Igloo Corporation
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CEO of UTI
Park Deok-young
- Park Deok-young is the CEO of UTI. He is focused on expanding production capacity through aggressive investments, including the construction of a new factory in Vietnam as part of business diversification efforts. He was born on February 15, 1960. He graduated from Yonsei University with a degree in Ceramic Engineering and began his career in the Optical Communication Division of Daewoo Telecom. He gained experience at Samsung Advanced Institute of Technology’s Parts and Materials Research Center and the Thin Film Head Division of Nova Magnetics before founding NeowinSys in 2006, entering the strengthened glass business. After leaving NeowinSys through aggressive mergers and acquisitions, he founded UTI in 2010 and re-entered the strengthened glass industry. He developed a technology that directly embeds touch circuits into strengthened glass substrates, significantly reducing touch screen production costs. As a researcher-turned-entrepreneur, he emphasizes technology and innovation. He values a culture of open and independent research. #ParkDeokyoung #UTI #strengthenedglass #touchscreen #technologyinnovation #businessstrategy #manufacturing #SouthKorea #YonseiUniversity #corporatemanagement
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CEO of UTI
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Vice Chairman of Lotte Corporation
Lee Dong-woo
- Lee Dong-woo is the Vice Chairman and CEO of Lotte Corporation. He is responsible for Lotte Group's business strategy and finance while focusing on discovering new business opportunities. He was born on September 7, 1960. He graduated from Shinil High School in Seoul and earned a degree in Business Administration from Konkuk University. He completed an MBA program at Yonsei University Graduate School of Business. He joined Lotte Department Store and served as the Jamsil Branch Manager and Head of the Management Support Division before becoming the CEO of Lotte World in 2012. In 2015, he was appointed CEO of Lotte Himart, where he led performance improvements, and in 2020, he was promoted to CEO of Lotte Corporation. In 2021, he was promoted to Vice Chairman and CEO. He was chosen as the key figure to improve Lotte Group's structure and develop a new growth strategy. He has the strong trust of Shin Dong-bin, Chairman of Lotte Group. He is a lifelong "Lotte man," having worked at Lotte Group for 38 years. He is proactive in recruiting external talent, meticulous in his work, and highly disciplined in self-management. #Lotte #LotteCorporation #LeeDongwoo #businessstrategy #finance #newbusiness #leadership #Korea #CEO #management
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Vice Chairman of Lotte Corporation
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President of Soongsil University
Lee Yun-jae
- Lee Yun-jae is the President of Soongsil University. He took office on February 4, 2025. He aims to reboot Soongsil University through "Hyper-Innovation in the Era of Great Transition," focusing on restoring its status and targeting niche markets. He was born on December 18, 1956, in Dangjin, Chungcheongnam-do. He graduated from Dangjin High School and earned a degree in economics from Soongsil University. He later obtained both his master's and doctoral degrees in economics from Northern Illinois University in the United States. In 1991, he joined Soongsil University as a professor in the Department of Economics and held various administrative positions, including Director of Planning, Dean of Academic Affairs, and Dean of Student Affairs. Externally, he served as the President of the Korean Association of Small Business Studies and Chairman of the Hope Foundation for Small and Medium Business Owners. An expert in macroeconomics and open economy fluctuations, he has a strong interest in the economic issues of small and medium-sized businesses and self-employed entrepreneurs. #LeeYunjae #SoongsilUniversity #universitypresident #economist #macroeconomics #highereducation #smallbusiness #economicpolicy #Korea #leadership
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President of Soongsil University
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Vice Chairman of Hyundai Motor
Chang Jae-hoon
- Chang Jae-hoon is the Vice Chairman of Hyundai Motor Company's Complete Vehicle Division. He is tasked with overcoming the electric vehicle chasm (a temporary stagnation in demand) and achieving continuous performance growth. He was born on August 3, 1964. He graduated from Seoul High School and earned a degree in sociology from Korea University. He later completed an MBA program at Boston University’s School of Management in the United States. He joined Hyundai Motor Group as the Head of the Global Business Office at Hyundai Glovis. He then moved to Hyundai Motor Company, where he held various positions, including Head of Production Development Planning, Head of Customer Value and concurrently Head of Customer Channel Service, and Head of HR. When Hyundai Motor Group Chairman Chung Eui-sun took the helm of the company's management, Chang supported him as Executive Vice President and Head of the Business Support Division. His role expanded as he took on dual responsibilities as Head of the Domestic Business Division and Head of the Genesis Business Division. In 2020, he was promoted to President. In 2024, he was promoted to Vice Chairman of the Complete Vehicle Division, a newly established position, and now oversees overall business operations. He is recognized for leading open communication efforts, making Hyundai's traditionally conservative corporate culture more flexible. #Hyundai #ChangJaehoon #EVmarket #HyundaiMotor #automotiveindustry #businessgrowth #Genesis #HyundaiGlovis #leadership #Korea
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Vice Chairman of Hyundai Motor
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CEO of Clobot
Kim Chang-gu
- Kim Chang-gu is the CEO of Clobot. He aims to make Clobot one of the world's top three autonomous robot service companies. He was born on August 30, 1974. He majored in Mechanical Engineering at Chonnam National University and earned a master’s degree in Mechanical Engineering from the university’s graduate school. He then completed a Ph.D. program in Mechanical and Aerospace Engineering at Seoul National University. He began his career in 2005 as a researcher at the Korea Institute of Science and Technology (KIST) and has spent 20 years developing and commercializing intelligent robots. In 2017, he founded Clobot and became its CEO. Clobot became the first software company in the robotics industry to be listed on the KOSDAQ. He is recognized as a "technology-driven leader" with outstanding execution skills. #KimChangGu #Clobot #robotics #autonomousrobots #AI #KOSDAQ #technology #innovation #engineering #startup
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CEO of Clobot
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CEO of Newflex
Lim Woo-hyun
- Lim Woo-hyun is the CEO of Newflex. He is the founder of Newflex, a company specializing in flexible printed circuit boards (FPCB). He is working to expand the company's business beyond smartphones to include electric vehicle batteries and extended reality (XR) devices. He was born on January 6, 1954, in Yeongdeok, Gyeongsangbuk-do. He graduated from Daeryun High School in Daegu and earned a degree in Applied Chemistry from Kyungpook National University. He gained experience in the printed circuit board (PCB) industry while working at Dongyang Precision Industry and Shinseong Electronics. In 1992, he founded Deborah Electronics, the predecessor of Newflex. He expanded the company by securing LG Electronics and LG Innotek as clients and laid the foundation for growth by establishing business relations with Samsung Electronics. He is a self-made entrepreneur who has focused solely on his field, emphasizing technology management and quality management. #LimWooHyun #Newflex #FPCB #PCB #electricvehicles #XR #Samsung #LGElectronics #LGInnotek #entrepreneur
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CEO of Newflex
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CEO of Curexo
Lee Jae-jun
- Lee Jae-jun is the CEO of Curexo. He is focused on expanding into the global medical robotics market. He was born on May 10, 1968, in Nonsan, Chungcheongnam-do. He graduated from Dongsan High School in Daejeon and studied genetic engineering at Sungkyunkwan University. He joined Korea Yakult (now hy) and served as Director of the Purchasing Team. When Korea Yakult acquired Curexo in 2011, he was appointed CEO of Curexo. He led the company's growth, including the acquisition of Hyundai Heavy Industries' medical robotics division. He is a determined and hardworking CEO who values technological innovation and collaboration. #LeeJaejun #Curexo #MedicalRobotics #SungkyunkwanUniversity #hy #KoreaYakult #HealthcareTechnology #BusinessLeadership #Innovation #RoboticsIndustry
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CEO of Curexo
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CEO of NCSoft
Kim Taek-jin
- Kim Taek-jin is the CEO and President of NCSoft. He achieved massive success with games based on the *Lineage* intellectual property (IP). He was born on March 14, 1967, in Seoul. He graduated from Seoul National University with a degree in Electronic Engineering and earned a master’s degree in the same field from Seoul National University’s graduate school. He later enrolled in a doctoral program but dropped out. He worked with DreamWiz CEO Lee Chan-jin on the development of *Hangul Word Processor* and founded HanmeSoft in 1989. He later worked as a development team leader at Hyundai Electronics, where he had previously served under the alternative military service program. In 1997, he founded NCSoft with a capital of KRW 100 million (US$ 72,100) and became its CEO. Through the *Lineage* series, he swiftly adapted to the shift toward mobile gaming, generating enormous profits. However, he struggled to produce another hit title and failed to achieve significant results in developing new IPs and expanding into new business areas. In 2024, he brought in private equity investor Park Byung-moo as co-CEO and initiated aggressive restructuring measures, including voluntary retirements, to restore NCSoft’s reputation as a leading game company. He leads a modest and down-to-earth personal life but demonstrates a strong competitive spirit in business. #KimTaekjin #NCSoft #Lineage #GameIndustry #MobileGaming #NewIP #Restructuring #ElectronicEngineering #SeoulNationalUniversity #HyundaiElectronics
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CEO of NCSoft
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CEO of Novatech
Oh Choon-taek
- Oh Choon-taek is the CEO of Novatech. He also serves as the CEO of its subsidiary, Novalabs. In 2012, he developed the world's first Shield Magnet. He was born on May 31, 1960, in Yangyang, Gangwon Province. He graduated from Gangneung High School and studied Mechanical Design at Pusan National University. In 1986, he joined LG Electronics and worked there for ten years. In 1998, he founded Telecom Electronics. After experiencing bankruptcy, he established Novatech in 2007 and successfully made a comeback. Novatech is regarded as the only company in South Korea that has fully internalized magnet design, raw material sourcing, and production capabilities. #OhChoonTaek #Novatech #Novalabs #ShieldMagnet #LGElectronics #TelecomElectronics #SouthKorea #MechanicalDesign #PusanNationalUniversity #MagnetIndustry
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CEO of Novatech
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Chairman of DY
Cho Byung-ho
- Cho Byung-ho is the Chairman of DY and also serves as the Group’s Chief ESG Officer. He was born on April 5, 1946, in Buan, North Jeolla Province. He graduated from Kyunggi High School and earned a degree in Mechanical Engineering from Seoul National University. He later attended the graduate school of engineering at the University of Wuppertal in Germany. He began his career at Daewoo Heavy Industries. While studying in Germany, he gained expertise in hydraulic cylinder technology at MAN. In 1978, he founded Dongyang Hydraulic, the predecessor of DY. He advocates for profit-sharing, worker participation in management, and a professional management system. Declaring that he would not pass down management control to his children, he has kept all three of his sons out of company operations. He dedicates a significant portion of his free time to reading. #ChoByungHo #DY #hydraulics #engineering #business #Korea #ESG #management #manufacturing #CEO
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Chairman of DY
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Chairman of NongHyup Financial Group
Lee Chan-woo
- Lee Chan-woo is the CEO and Chairman of NongHyup Financial Group. He is strengthening internal controls to restore trust in NongHyup Financial Group and focusing on improving the holding company's profitability. He was born on February 13, 1966, in Yeongdeok, North Gyeongsang Province. He graduated from Busan National University High School and earned a degree in Political Science from Seoul National University. He received a Master’s degree in Policy Studies from the Graduate School of Public Administration at Seoul National University and completed an MBA program at Yale School of Management in the United States. He entered public service through the 31st Higher Civil Service Examination and worked at the Ministry of Strategy and Finance, serving as Director General of the Future Social Policy Bureau and Director General of the Economic Policy Bureau before stepping down from his government position as Vice Minister. After serving as Chairman of the Gyeongsangnam-do Economic Innovation Promotion Committee, he joined the Financial Supervisory Service as Senior Deputy Governor and later served as Acting Governor. In 2025, he was appointed CEO and Chairman of NongHyup Financial Group. Since the establishment of the Ministry of Strategy and Finance, he was the longest-serving Vice Minister and played a key role in shaping the early economic policies of the Moon Jae-in administration. #LeeChanwoo #NongHyupFinancialGroup #finance #banking #economicpolicy #publicservice #SeoulNationalUniversity #YaleMBA #Korea #CEO
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Chairman of NongHyup Financial Group
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CEO of Samsung Asset Management
Kim Uh-seog
- Kim Uh-seog is the CEO of Samsung Asset Management. To maintain its leading position in the domestic exchange-traded fund (ETF) market, he is expanding the company's global management infrastructure and strengthening its competitiveness in the pension sector. He was born in 1969 in Donghae, Gangwon Province. He graduated from Gangneung High School and earned a degree in Applied Statistics from Yonsei University. He completed an MBA program at Korea University Business School. He joined Samsung Fire & Marine Insurance, where he served as Head of the Planning Team, Head of the Actuarial RM Team and Chief Risk Officer, and Head of the Long-term Insurance Compensation Team. He later moved to Samsung Life Insurance, where he worked as Vice President of the Financial Competitiveness Enhancement Task Force and Head of the Asset Management Division. In 2024, he was appointed CEO of Samsung Asset Management. He is meticulous in his work and actively communicates with employees. #KimUhseog #SamsungAssetManagement #ETF #finance #investment #pension #riskmanagement #Korea #CEO #business
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CEO of Samsung Asset Management
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Chairman of HD Hyundai
Kwon Oh-gap
- Kwon Oh-gap is the Chairman and CEO of HD Hyundai. He leads the company alongside Senior Vice Chairman Chung Ki-sun, a third-generation owner-executive. He is overseeing the restructuring process to ensure that Senior Vice Chairman Chung Ki-sun ascends to the position of HD Hyundai Group Chairman and successfully inherits the controlling stake. He was born on February 10, 1951, in Seongnam, Gyeonggi Province, as the youngest of three sons and two daughters. He graduated from Hyosung High School in Seongnam and earned a degree in Portuguese from Hankuk University of Foreign Studies. After joining Hyundai Heavy Industries, he held positions as Secretary-General of Ulsan Technical Academy and Hyundai Academy (Ulsan University, Ulsan College, and Ulsan University Hospital) and served as Head of Foreign Procurement at Hyundai Heavy Industries' London office. In 2008, he was appointed CEO of Hyundai Heavy Industries Sports, and in 2010, he moved to Hyundai Oilbank as CEO. He has also served as CEO of Hyundai Heavy Industries, Head of Planning for Hyundai Heavy Industries Group, and CEO of Hyundai Heavy Industries Holdings. Additionally, he has been active as Vice Chairman of the Korea Employers Federation, President of the Korea Professional Football League, and Chairman of the Korea Professional Sports Association. He has played a key role in assisting both Chung Mong-joon, the football administrator, and Chung Mong-joon, the businessman. He is regarded as the person who best understands the intentions of Chung Mong-joon, HD Hyundai's largest shareholder. #KwonOhgap #HDHyundai #ChungKisun #HyundaiHeavyIndustries #HyundaiOilbank #CorporateLeadership #KoreanBusiness #FootballAdministration #HyundaiGroup #SouthKorea
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Chairman of HD Hyundai
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Chairman of Muhak
Choi Jae-ho
- Choi Jae-ho is the Chairman and CEO of Muhak. As the domestic soju market faces growth limitations, he is actively working on expanding into overseas markets. He was born on January 13, 1960, in Masan, Gyeongsangnam-do, as the second son among four sons and one daughter of Muhak founder Choi Wi-seung. He graduated from Gyeongsang High School and earned a degree in business administration from Kyungnam University. He obtained a Master’s degree in economics from Tokai University in Japan and a Doctorate in business administration from Changwon National University. He began his career at Daewoong Pharmaceutical. After joining Muhak, he served as Head of Planning before becoming CEO in 1994. He is currently serving as Chairman of the Changwon Chamber of Commerce and Industry. In the soju industry, he has led groundbreaking changes such as introducing low-alcohol soju, sugar-free soju, and color marketing strategies. #ChoiJaeHo #Muhak #SojuMarket #KoreanLiquor #AlcoholIndustry #Changwon #BusinessLeader #SouthKorea #SojuInnovation #GlobalExpansion
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Chairman of Muhak
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Mayor of Seoul
Oh Se-hoon
- Oh Se-hoon is the Mayor of Seoul. With the early presidential election in 2025 approaching, he is running as the People Power Party's presidential candidate to reclaim power. He was born on January 4, 1961, in Seongdong-gu, Seoul. After graduating from Daeil High School in Seoul, he entered the College of Law and Politics at Hankuk University of Foreign Studies and later transferred to Korea University's College of Law. He passed the 26th bar exam and worked as an environmental lawyer before gaining public recognition as a TV program host. At the suggestion of Lee Hoi-chang, then leader of the Grand National Party, he joined the party and ran in the Gangnam-B district of Seoul, winning a seat in the National Assembly in 2000. He did not run in the 17th general election and retired from politics, but he later ran in the 2006 Seoul mayoral election and won. Although he was re-elected as mayor of Seoul, he staked his position on a referendum regarding free school meals in the city. When the referendum was invalidated, he resigned midway through his term after just one year. He was re-elected as mayor in the 2021 by-election, returning to the position after ten years. Throughout his political career, he has demonstrated a bold and competitive nature, making decisive choices. However, these decisions have sometimes harmed his party and the broader conservative camp, leading to criticism that he is reckless. #OhSehoon #SeoulMayor #KoreanPolitics #PeoplePowerParty #2025Election #SouthKorea #PoliticalCareer #Seoul #Election #Leadership
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Mayor of Seoul
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Vice Chairman of Celltrion Holdings
Yoo Heon-young
- Yoo Heon-young is the Vice Chairman and CEO of Celltrion Holdings. He is tasked with leading Celltrion Holdings' listing on the NASDAQ in the United States. He was born on February 9, 1961. He graduated from Inha University with a degree in Industrial Engineering. He began his career at Samsung Electro-Mechanics, then moved to the Korea Productivity Center before joining Daewoo Motors as a management advisor. During his time at Daewoo Motors, he formed a connection with Seo Jung-jin, Chairman of Celltrion. In 2000, he joined Nexol, a company founded by Seo Jung-jin. In 2001, he was appointed as the CEO of Nexol Venture Capital, where he handled investment operations. In 2017, he was appointed as the CEO of the holding company, Celltrion Holdings, and in 2018, he was promoted to Vice Chairman. Along with Ki Woo-sung, Vice Chairman and CEO of Celltrion, and Kim Hyung-ki, Vice Chairman and CEO of Celltrion's Global Sales Division, he is considered one of the three key figures who contributed to the founding of Celltrion by Seo Jung-jin. Among them, he was the first to join, making him Celltrion's first-ever employee as part of its first recruitment class. Unlike the other vice chairmen, he strongly avoids external exposure. #YooHeonyoung #Celltrion #CelltrionHoldings #NASDAQ #biopharmaceuticals #SeoJungjin #InhaUniversity #SamsungElectroMechanics #DaewooMotors #biotech
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Vice Chairman of Celltrion Holdings
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CEO of F&F
Kim Chang-soo
- Kim Chang-soo is the President and CEO of F&F and the Chairman of F&F Holdings. He is focusing on brand diversification and expanding into the Southeast Asian market. He is the second son of Kim Bong-kyu, the founder of Samsung Publishing. He was born on April 18, 1961, in Seoul. He graduated from Dongsung High School in Seoul and studied Business Administration at Yonsei University. He began his career at Samsung Publishing, his father's company, and in 1992, he became the President and CEO of its subsidiary, Artbox. He entered the fashion industry by founding F&F, named after the first letters of "Fashion" and "Forward." He also served as the CEO of Benetton Korea. In 2002, he became the President and CEO of F&F, and in 2021, he was appointed Chairman of F&F Holdings. He has been described as a "marketing genius who understands the pulse of the fashion industry" and "the Midas touch of the fashion business." #KimChangsoo #FF #FFHoldings #FashionIndustry #BrandExpansion #SoutheastAsia #MarketingGenius #BusinessLeadership #KoreanFashion #Entrepreneurship
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CEO of F&F
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CEO of SK Incheon Petrochem
Roh Sang-goo
- Roh Sang-goo is the President and CEO of SK Incheon Petrochem. He is focusing his efforts on resolving chronic deficits and debt issues. He was born in November 1968. He graduated from Hanyang University with a degree in Chemical Engineering. He began his career at Yukong. He worked at SK Energy as the Head of Optimal Operation Office and Head of Energy Operation Division. He concurrently held the positions of Head of Strategic Operation Division and Head of Business Planning Office before being appointed as President and CEO of SK Incheon Petrochem in 2023. He is committed to cost reduction, profit improvement, and safety management. #RohSanggoo #SKIncheonPetrochem #CEO #ChemicalEngineering #SKEnergy #BusinessStrategy #CostReduction #ProfitImprovement #SafetyManagement #DebtResolution
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CEO of SK Incheon Petrochem
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Chairman of Whanin Pharm
Lee Gwang-sik
- Lee Gwang-sik is the Chairman and CEO of Whanin Pharm. He is focusing on increasing sales by distributing global pharmaceutical companies' drugs in the domestic market. He was born on November 5, 1947, in Daejeon. He graduated from Namseong High School in Iksan, North Jeolla Province, and earned a degree in pharmacy from Seoul National University. He later obtained a master's degree from the Graduate School of Public Health at Seoul National University. He began his career at Chong Kun Dang. In 1978, he acquired Whanin Pharm and expanded the business through collaborations with global pharmaceutical companies. He is currently preparing to transfer management rights to his son, Lee Won-beom, who serves as co-CEO. #WhaninPharm #LeeGwangSik #pharmaceuticals #globalbusiness #healthcare #startup #businessleadership #ChongKunDang #drugdistribution #managementsuccession
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Chairman of Whanin Pharm
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CEO of Cafe24
Lee Jae-suk
- Lee Jae-suk is the CEO of Cafe24. He also serves as the chairman of the board. He is focusing on advancing AI-based e-commerce platforms. He was born on January 28, 1968, in Daegu. He graduated from Kyungshin High School in Daegu and earned a degree in physics from Pohang University of Science and Technology. He worked as a researcher at KC Cottrell, an environmental equipment company, before founding Korea Network Business Consulting in 1996. In 1999, he established Simplex Internet and launched an e-commerce platform solutions business. After changing the company name to Cafe24, he expanded its scale through continuous mergers and acquisitions, broadening its business scope. By expanding into domestic and international markets through cooperation with YouTube Shopping, he envisions Cafe24 as the "Shopify of Asia." #Cafe24 #LeeJaeSuk #ecommerce #AI #YouTubeShopping #startup #business #technology #Asia #Shopify
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CEO of Cafe24
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Chairman of Samyang Group
Kim Yoon
- Kim Yoon is the Chairman of Samyang Group. He also serves as the Chairman of the holding company, Samyang Holdings. He is focusing on advancing the group's business portfolio with "specialty" and "global" as key themes. He was born on February 24, 1953, in Busan as the son of Kim Sang-hong, Honorary Chairman of Samyang Group. He graduated from Kyungbock High School and earned a degree in Business Administration from Korea University. He then completed an MBA program at the Middlebury Institute of International Studies at Monterey in the United States. He began his career at Bando Trading Company and later worked at Lloyd Raper in the U.S. before joining Samyang Corporation. In 1996, he was appointed President and CEO of Samyang Corporation. After the group transitioned to a holding company structure, he served as CEO and Chairman of Samyang Holdings from 2011. He stepped down as CEO of Samyang Corporation and Samyang Holdings in 2012 and 2020, respectively, but remains as Chairman. He also serves as Chairman of the Yangyoung Foundation and the Sudang Foundation, which are scholarship foundations of Samyang Group. Additionally, he is a Vice Chairman of the Federation of Korean Industries. He is known for his direct and straightforward communication style. #KimYoon #SamyangGroup #SamyangHoldings #businessleader #KoreaUniversity #MBA #corporategovernance #KoreanIndustry #executiveprofile #businessstrategy
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Chairman of Samyang Group
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Vice Chairman of Korean Air
Woo Kee-hong
- Woo Kee-hong is the Vice Chairman and CEO of Korean Air. He is focusing on the merger of Korean Air and Asiana Airlines. He was born on December 20, 1962, in Hamyang, Gyeongnam. He graduated from Jinju High School and Seoul National University with a degree in Business Administration. He completed MBA programs at KAIST and the University of Southern California in the United States. After joining Korean Air, he held positions such as New York Passenger Branch Manager, Head of the Americas Regional Headquarters, and Head of the Passenger Business Division. He served as Head of the Corporate Strategy Division before being appointed as Executive Vice President and CEO of Korean Air in 2017. He is known as one of the "Seoul National University Four" within Hanjin Group and is regarded as a leading professional manager. He has built a strong personal network in the U.S. aviation industry and enjoys deep trust from the owner family. #WooKeeHong #KoreanAir #AsianaAirlines #aviation #HanjinGroup #merger #businessleader #airlineindustry #USC #KAIST
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Vice Chairman of Korean Air
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Vice Chairman of Ildong Pharmaceutical
Yun Woong-sup
- Yun Woong-sup is the Vice Chairman and CEO of Ildong Pharmaceutical. He is focusing on new drug development with the goal of achieving annual sales of KRW 1 trillion (US$ 721.1 million) and a net profit of KRW 100 billion (US$ 72.1 million). He was born on July 7, 1967, in Seoul as the eldest son of Yun Won-young, Chairman of Ildong Holdings. He graduated from Youngdong High School in Seoul and Yonsei University with a degree in applied statistics, then earned a master's degree in accounting from Georgia State University in the United States. He worked as a reporter at the Georgia bureau of The Korea Times before joining KPMG in the U.S. as an accountant. He joined Ildong Pharmaceutical as an executive director, serving as the head of the PI team and director of the planning and coordination office before being appointed as Executive Vice President. In 2014, he became the co-CEO and President of Ildong Pharmaceutical. As Ildong Pharmaceutical transitioned to a holding company structure, he took on the role of CEO, fully initiating third-generation management. When profitability declined, he implemented bold restructuring measures, leading the company back to profitability within four years. #YunWoongsup #IldongPharmaceutical #pharmaceuticalindustry #newdrugdevelopment #Koreanbusiness #biopharma #executivemanagement #corporatestructure #businessleadership #KPMG
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Vice Chairman of Ildong Pharmaceutical
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Chairman of Nexteel
Park Hyo-jeong
- Park Hyo-jeong is the chairman of Nexteel. He also serves as the CEO of Nexteel Saha, the company's U.S. subsidiary, and as the sole manager of Nexteel Holdings. He is pursuing facility investments to expand the business portfolio. He was born on July 15, 1954, in Jecheon, Chungcheongbuk-do. He graduated from Jecheon High School in Chungbuk and earned a degree in trade from the University of Seoul. He started his steel business by establishing Injin Steel in the Shihwa Industrial Complex in Incheon. In 1990, he relocated his business to Pohang and founded Daewon Industrial. He has a strong competitive spirit and drive, valuing a hands-on sales approach by personally meeting with clients. He is dedicated to transforming Nexteel into a global comprehensive steel pipe company capable of supplying various types of steel pipes. #ParkHyojeong #Nexteel #steelindustry #businessleader #SouthKorea #globalbusiness #steelpipes #manufacturing #trade #industrialinvestment
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Chairman of Nexteel
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CEO of Kolon Global
Kim Jung-il
- Kim Jung-il is the CEO and President of Kolon Global. He is working to enhance cost and bidding competitiveness while strengthening the non-residential sector. He was born on November 8, 1961. He graduated from Sogang University with a degree in business administration and completed an MBA program at the University of Maryland. After joining Kolon Trading, he worked in Kolon’s Planning and Coordination Office. He then moved to Neoview Kolon, where he served as Head of the Management Division before being appointed CEO in 2011. At Kolon Industries, he served as Head of the Business Division and Executive Vice President overseeing the CPI business before being appointed CEO and President in 2022. He is known as one of Kolon Group’s leading strategists and emphasizes that the key to strategy lies in fieldwork and communication with employees. #KimJungil #KolonGlobal #businessstrategy #corporateleadership #manufacturing #globalbusiness #CPIbusiness #nonresidentialsector #SouthKorea #executivemanagement
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CEO of Kolon Global
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Former Leader of People Power Party
Han Dong-hoon
- Han Dong-hoon is the former leader of the People Power Party. He was born on April 9, 1973, in Chuncheon, Gangwon-do. He graduated from Hyundai High School in Seoul and Seoul National University’s College of Law. He completed an LLM program at Columbia Law School in the United States and obtained a New York State attorney license. After passing the 37th bar exam and completing the 27th Judicial Research and Training Institute course, he began his career as a prosecutor at the Seoul Central District Prosecutors’ Office. During the Moon Jae-in administration, he served as the third deputy chief prosecutor of the Seoul Central District Prosecutors’ Office under then-chief prosecutor Yoon Suk-yeol, leading investigations into corruption cases involving the Park Geun-hye and Lee Myung-bak administrations. After Yoon was appointed Prosecutor General, Han was promoted to chief prosecutor and led the investigation into Justice Minister Cho Kuk’s family as head of the Anti-Corruption and Violent Crimes Department at the Supreme Prosecutors’ Office (formerly the Central Investigation Department). He later served as deputy chief prosecutor of the Busan High Prosecutors’ Office, research officer at the Legal Research and Training Institute, and deputy director of the Judicial Research and Training Institute before becoming the first Minister of Justice under the Yoon Suk-yeol administration. He entered politics as the interim leader of the People Power Party and led the party’s campaign in the April 2024 general election, but suffered a crushing defeat. Three months after the election loss, he ran for party leader in the national convention and was elected. However, in December 2024, after the National Assembly passed an impeachment motion against President Yoon, the party leadership collapsed, leading to his resignation. Once considered Yoon’s closest confidant and even nicknamed the "Little President," Han later became a symbolic figure of the anti-Yoon ("Bi-Yoon") faction within the People Power Party. #HanDongHoon #PeoplePowerParty #SouthKoreaPolitics #YoonSukYeol #JusticeMinister #Prosecutor #GeneralElection #Impeachment #PoliticalLeadership #KoreanLaw
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Former Leader of People Power Party
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CEO of LG Uplus
Hong Bum-sik
- Hong Bum-sik is the CEO and President of LG Uplus. He is exploring new businesses in the telecommunications sector that can become future growth drivers based on artificial intelligence (AI). He was born on February 21, 1968. He graduated from Yeouido High School in Seoul and earned a degree in business administration from the University of Southern California. He also completed an MBA program at Columbia Business School. He worked at Monitor Group Korea before serving as Head of Business Strategy at SK Telecom and Korea Representative at Oliver Wyman. He then moved to Bain & Company, where he served as Head of the Asia-Pacific Telecommunications & Technology Division and as Global Director of Bain & Company Korea. He joined LG as Head of the Corporate Strategy Team and later became Head of Corporate Strategy before being appointed CEO of LG Uplus in 2024. As an expert in telecommunications technology and corporate strategy, he is considered a key executive personally selected by LG Group Chairman Koo Kwang-mo. #HongBumSik #LGUplus #ArtificialIntelligence #Telecommunications #BusinessStrategy #CorporateLeadership #KoreanBusiness #TechnologyInnovation #LGGroup #TelecomIndustry
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CEO of LG Uplus
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Chairman of Aju Group
Moon Kyu-young
- Moon Kyu-young is the chairman of Aju Group. He also serves as the chairman of Aju, the group's holding company. He was born on November 1, 1951, in Seoul as the eldest son among three sons and two daughters of Moon Tae-sik, the founder of Aju Industrial. He graduated from Whimoon High School and Korea University with a degree in agriculture. He began his career at Daewoo Corporation. After joining Aju Industrial as a director, he was appointed chairman of Aju Group in 2004. He has served as chairman of the Korea Ready-Mixed Concrete Industry Association, chairman of the Korea-China Economic Association, and senior vice chairman of the Korea Middle Market Enterprises Association. He has actively pursued mergers and acquisitions while diversifying the business beyond ready-mixed concrete into tourism and leisure, cold storage, car rentals, and automobile distribution and sales. He is focused on discovering future growth engines and establishing a strong corporate culture. #MoonKyuYoung #AjuGroup #AjuIndustrial #KoreaBusiness #CorporateExpansion #MergersAcquisitions #KoreanEconomy #ReadyMixedConcrete #AutomobileIndustry #TourismIndustry
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Chairman of Aju Group
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Chairman of Jusung Engineering
Hwang Chul-joo
- Hwang Chul-joo is the Chairman and CEO of Jusung Engineering. He is regarded as one of South Korea’s first-generation venture entrepreneurs. He was born on December 2, 1959, in Goryeong, North Gyeongsang Province. He graduated from Dongyang Technical High School in Seoul and later transferred from Inha Technical College to Inha University, where he studied Electronic Engineering. He started his career at Hyundai Electronics and later worked at the Dutch semiconductor equipment company ASM before founding Jusung Engineering in 1995, where he has served as CEO ever since. After listing on KOSDAQ, he expanded the company’s business beyond semiconductor equipment to include display and solar equipment. He was once referred to as a "Park Geun-hye man" after being appointed as Administrator of the Small and Medium Business Administration. He is known for his down-to-earth personality and strong competitive spirit. #HwangChuljoo #JusungEngineering #semiconductor #display #solarenergy #venturebusiness #startup #KOSDAQ #electronics #businessleader
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Chairman of Jusung Engineering
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CEO of LG Electronics
Cho Joo-wan
- Cho Joo-wan is the President and CEO of LG Electronics. He is focusing on expanding new businesses such as vehicle components, artificial intelligence (AI), and robotics. He is also working to improve profitability by strengthening subscription-based home appliance services and business-to-business (B2B) revenue models. He was born on October 11, 1962. He graduated from Dongsung High School in Busan and earned a degree in Mechanical Engineering from Pusan National University. He later completed an MBA program at Yonsei University. He joined Goldstar, the predecessor of LG, and served as Managing Director of LG Electronics Canada before becoming Managing Director of LG Electronics Australia, Managing Director of LG Electronics USA, and Executive Vice President and Head of North America Operations. He served as Executive Vice President and Chief Strategy Officer (CSO) before being appointed CEO of LG Electronics in 2021. Having spent more than half of his 35-year career overseas, he is known as a "global strategist." He has been dedicated to redefining LG Electronics' management system and business portfolio based on digital transformation. He is credited with embedding a "success DNA" into LG Electronics under the key theme of "winning growth and successful change." #LG #LGElectronics #CEO #technology #AI #robotics #B2B #digitaltransformation #globalstrategy #business
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CEO of LG Electronics
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CEO of Nextin
Park Tae-hun
- Park Tae-hun is the CEO of Nextin. He is focused on expanding the company’s global market share, particularly in China. He was born on February 3, 1966. He graduated from Kyungmoon High School and earned a degree in chemistry from Seoul National University. He also obtained a master's degree in chemistry from Seoul National University’s graduate school. He began his career at Samsung Electronics’ Semiconductor Research Center. He later worked at KLA Tencor Korea in the United States and at Negevtech in Israel. In 2010, he was appointed as CEO of Aurotek Technology. In 2012, he founded Nextin and entered the wafer pattern defect inspection equipment business for semiconductor front-end processes. #ParkTaehun #Nextin #semiconductor #waferinspection #SeoulNationalUniversity #SamsungElectronics #KoreaTech #KLA #Negevtech #businessleadership
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CEO of Nextin
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Chairman of KISCO Holdings
Jang Se-hong
- Jang Se-hong is the Chairman and CEO of KISCO Holdings. He also serves as the Chairman of Korea Steel. He was born on October 1, 1966, in Busan as the second son among three sons and two daughters of Jang Sang-don, Chairman of Korea Steel. He graduated from Seoul High School and earned a degree in chemistry from the University of Southern California. He then pursued a master's program in synthetic organic chemistry at Waseda University in Japan. He began his career as a director at Korea Special Steel before moving to Korea Steel as an Executive Vice President. In 2007, he was appointed President and CEO of Korea Steel. When the holding company KISCO Holdings was established in 2008, he took on the role of CEO. As a third-generation owner-executive, he maintains a low profile, rarely appearing in public and not even attending board meetings. #JangSehong #KISCOHoldings #KoreaSteel #steelindustry #businessleader #thirdgenerationCEO #Koreabusiness #manufacturing #executivemanagement #WasedaUniversity
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Chairman of KISCO Holdings
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CEO of DB Insurance
Jeong Jong-pyo
- Jeong Jong-pyo is the President and CEO of DB Insurance. He has identified the nursing care business and pet insurance as future growth engines and is focusing on securing long-term revenue sources. He was born in March 1962 in Uiseong, Gyeongsangbuk-do. He graduated from Daegu Kyesung High School and Yonsei University with a degree in law. He joined Dongbu Insurance and served as the head of the corporate sales department and the HR support team. He later took on the roles of head of the corporate business division and head of the corporate business sector, overseeing corporate business operations. In 2022, he was appointed President and CEO of DB Insurance. Initially, he led DB Insurance alongside Vice Chairman Kim Jeong-nam, but after Kim stepped down, he became the sole CEO. As an expert in insurance sales, he is pursuing a sales strategy centered on high-profit protection-type insurance to maintain DB Insurance’s position as the second-largest non-life insurer in the industry. #JeongJongpyo #DBInsurance #insuranceindustry #nonlifeinsurance #corporatebusiness #petinsurance #nursingcarebusiness #Koreabusiness #insuranceCEO #financialstrategy
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CEO of DB Insurance
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Vice Chairman of Maeil Dairies
Kim Seon-hee
- Kim Seon-hee is the Vice Chairman and CEO of Maeil Dairies. She is part of the owner family as a cousin of Kim Jung-wan, Chairman of Maeil Holdings. She is focusing on business diversification beyond the dairy industry. She was born on October 4, 1964. She graduated from Yonsei University with a degree in French literature and completed an MBA program at the University of Minnesota in the United States. She began her career at the French financial group BNP Paribas and later worked as a senior researcher at Crédit Agricole Bank. She also served as Head of Trust Risk Management at Citibank Korea and Director of Trust Risk Management at UBS Investment Bank in Switzerland. In 2009, she joined Maeil Dairies, where she led the merger of the cheese-specialized subsidiary Sangha and spearheaded the independence of the coffee shop business Paul Bassett. In 2014, she became the CEO of Maeil Dairies, making her the first female CEO in the dairy industry. She is known for her strong financial management skills. #KimSeonhee #MaeilDairies #CEO #dairyindustry #finance #businessdiversification #PaulBassett #leadership #investment #Korea
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Vice Chairman of Maeil Dairies
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CEO of Nextchip
Kim Kyoung-soo
- Kim Kyoung-soo is the CEO of Nextchip. He is working to establish a strong market presence for "Apache6," an advanced driver assistance system (ADAS) system-on-chip (SoC). He was born on February 26, 1965, in Incheon. He graduated from Songdo High School in Incheon and Sogang University with a degree in electronic engineering. He began his career at Daewoo Telecom before moving to CMS. In 1997, he founded NC& (NC& Corporation), a company specializing in image processing semiconductors. As the autonomous vehicle market expanded, he spun off NC&'s automotive division to establish Nextchip, a company dedicated to automotive semiconductors. He envisions making Nextchip a world-class semiconductor company for automotive camera sensors. He serves as the chairman of the Korea Fabless Industry Association. #KimKyoungsoo #Nextchip #ADAS #semiconductor #autonomousvehicles #electronics #SoC #automotive #fabless #Korea
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CEO of Nextchip
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CEO of KB Securities
Lee Hong-ku
- Lee Hong-ku is the CEO and President of KB Securities. He shares leadership with President Kim Sung-hyun under a co-CEO system and is responsible for the retail (personal finance) sector. He focuses on the individual brokerage market to improve performance while also showing interest in the adoption of AI. He was born on September 20, 1965. He graduated from Simin High School in Daegu and Korea University with a degree in Business Administration. He began his career at Hyundai Securities before moving to Keangnam Enterprises. He returned to the securities industry with KB Securities, where he served as Head of the PB Client Division and Head of the Gangnam Regional Headquarters. After serving as Head of the WM Division, he was appointed CEO and President of KB Securities in 2024. Following the merger of KB Securities and Hyundai Securities, he led growth by integrating the wealth management (WM) sector. #KBsecurities #LeeHongku #finance #investment #stockmarket #wealthmanagement #AI #Korea #brokerage #business
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CEO of KB Securities
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President of NongHyup Bank
Kang Tae-young
- Kang Tae-young is the President of NongHyup Bank. He is focused on strengthening digital finance with the goal of making NongHyup Bank a "digital leading bank" and is working to establish an internal control system to prevent financial fraud. He was born on December 20, 1966, in Jinju, Gyeongsangnam-do. He graduated from Daea High School in Jinju and studied animal science at Konkuk University. He later earned a master’s degree in convergence information technology from the Graduate School of Konkuk University. He joined the National Agricultural Cooperative Federation (NongHyup) and began his career at NongHyup Bank. He served as Head of the Human Resources Team, Head of the Strategic Planning Division in the Comprehensive Planning Department, Head of the All One Bank Business Department, Head of the Digital Strategy Department, and Head of the Gangbuk Business Division. He also served as Head of the DT (Digital Transformation) Division while concurrently holding the position of Vice President of Digital Finance at NongHyup Financial Group. In 2024, he was appointed as President of NongHyup Bank. He has been leading the digital transformation of NongHyup Bank. #KangTaeYoung #NongHyupBank #digitalfinance #bankingtransformation #financialsecurity #internalcontrol #NHBank #digitalbanking #leadership #financialtechnology
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President of NongHyup Bank
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Chairman of Amorepacific Group
Suh Kyung-bae
- Suh Kyung-bae is the Chairman and CEO of Amorepacific Group. He also serves as the CEO of Amorepacific. He is focusing on a global rebalancing strategy and strengthening premium brands. He was born on January 14, 1963, in Seoul as the second son among two sons and four daughters of Suh Sung-whan, the founder of Taepyeongyang. He graduated from Kyungseong High School in Seoul and studied business administration at Yonsei University. He later completed an MBA program at Cornell University’s Johnson Graduate School of Management in the United States. He joined Taepyeongyang Chemical as a manager and later served as Head of the Planning and Coordination Office before being appointed as President and CEO of Taepyeongyang in 1997. He values hands-on management, closely monitoring products and personally overseeing international business operations. He has a deep interest in art, history from both Eastern and Western perspectives, and philosophy. He has said that if he had not become a business executive, he would have been an art critic. #SuhKyungbae #Amorepacific #AmorepacificGroup #beautyindustry #globalstrategy #premiumbrands #businessleadership #artandphilosophy #YonseiUniversity #CornellMBA
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Chairman of Amorepacific Group
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CEO of Daewoo E&C
Kim Bo-hyun
- Kim Bo-hyun is the CEO and President of Daewoo Engineering & Construction (E&C). He is the son-in-law of Jung Chang-sun, Chairman of Jungheung Group. Amid the economic downturn, he is focusing on solid management while seeking breakthroughs through overseas projects. He was born on February 10, 1966, in Jangheung, Jeollanam-do. He graduated from the Korea Air Force Academy as part of the 36th class and earned a master’s degree in business administration from Mokwon University’s Graduate School of Industrial Information. In the Air Force, he served as Director of the Command and Reconnaissance Project Department at the Defense Acquisition Program Administration, Commander of the 19th Fighter Wing, and Director of the Aviation Technology Project Department before retiring as a brigadier general. He worked as Vice President of Herald, a media company affiliated with Jungheung Group. During the acquisition of Daewoo Engineering & Construction, he led negotiations with the labor union as the team leader. After Daewoo Engineering & Construction was incorporated into Jungheung Group, he served as an advisor and as Head of the Management Support Division and Executive Vice President before being appointed CEO in 2024. He values a horizontal organizational culture and emphasizes cooperation among executives and employees. #KimBoHyun #DaewooE&C #JungheungGroup #CEO #KoreaAirForce #businessstrategy #constructionindustry #management #corporateculture #leadership
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CEO of Daewoo E&C
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Chairman of ESTsoft
Kim Jang-joong
- Kim Jang-joong is the Chairman of ESTsoft. He also serves as the CEO of its subsidiary, ESTgames. He is focusing his efforts on AI business development. He was born in Seoul on January 15, 1972. He graduated from Inheon High School and earned a degree in Applied Mathematics from Hanyang University ERICA Campus. He also completed the Strategic Venture Management program at Hanyang University Graduate School of Business. In 1993, while still a university student, he founded ESTsoft with his friends. He established ESTsoft as a specialized software development company by launching the file compression program "ALZip," the graphic viewer "ALSee," and the security program "ALYac." He operates the internet portal "ZUM." As a first-generation entrepreneur in South Korea’s IT industry, he is dedicated to transforming ESTsoft from a security and utility software company into an AI-focused enterprise. #ESTsoft #KimJangJoong #AIbusiness #softwaredevelopment #KoreanITindustry #ventureentrepreneur #technology #cybersecurity #businessleadership #startups
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Chairman of ESTsoft
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CEO of Kumyang Green Power
Lee Yun-cheol
- Lee Yun-cheol is the CEO of Kumyang Green Power. As the second-generation owner, he has been managing Kumyang Green Power following his late father, former CEO Lee Sang-jun. He is focusing on shifting the company's core business from traditional electrical construction to renewable energy. He was born on October 10, 1958, in Ulsan. He graduated from Korea Maritime and Ocean University with a degree in Marine Engineering. After working as a ship engineer at SK Shipping, he joined Kumyang Industrial Development (now Kumyang Green Power), which was founded by his father. In 1998, he was appointed CEO of Kumyang Industrial Development. Since 2021, he has served as the chairman of the Ulsan Chamber of Commerce and Industry. He is also a vice chairman of the Korea Chamber of Commerce and Industry. #LeeYuncheol #KumyangGreenPower #renewableenergy #SouthKorea #Ulsan #CEO #marineengineering #businessleader #KCCI #SKShipping
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CEO of Kumyang Green Power
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CEO of Hyundai Mobis
Lee Gyu-suk
- Lee Gyu-suk is the President and CEO of Hyundai Mobis. He also serves as the Chairman of the Board of Directors at Hyundai Mobis. He is focused on expanding orders from global automakers and enhancing competitiveness in eco-friendly and future vehicle components. He was born on August 12, 1965. He graduated from Seoul National University with a degree in Business Administration and earned a master's degree in Business Administration from the Seoul National University Graduate School. He joined Hyundai Motor Company and held positions at Hyundai Motor and Kia, including Head of Purchasing Division 1, Head of Interior and Electrical Components Purchasing, Head of Purchasing Strategy, and Head of Purchasing Division 1. He oversaw purchasing at Hyundai Motor and Kia as Head of the Purchasing Headquarters before being appointed as the CEO of Hyundai Mobis in 2023. As a leading purchasing expert in Hyundai Motor Group, he spearheaded the establishment of a system for the timely procurement of key strategic materials. #HyundaiMobis #LeeGyuSuk #automotive #purchasing #HyundaiMotorGroup #Kia #futuremobility #supplychain #businessleader #SouthKorea
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CEO of Hyundai Mobis
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CEO of Kakao
Chung Shin-a
- Chung Shin-a is the CEO of Kakao. She is focused on resolving the legal risks surrounding the Kakao Group and restructuring its affiliates. She was born on February 28, 1975. She majored in French Language and Literature and Business Administration at Yonsei University and earned a master's degree in marketing from Yonsei University Graduate School of Business. She also completed an MBA program at the University of Michigan Ross School of Business. She worked at Boston Consulting Group and eBay before joining NHN. After moving to K Cube Ventures as an executive director, she was appointed co-CEO in 2018. She later joined Kakao as a non-executive director and took charge of business operations for the CA Council, Kakao’s affiliate coordination body. In 2024, she was appointed CEO of Kakao and also serves as acting chair of the company's Management Innovation Committee. She has expressed her commitment to driving growth by focusing on KakaoTalk and AI. #ChungShina #Kakao #CEO #businessleadership #technology #AI #KakaoTalk #management #corporatestrategy #startup
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CEO of Kakao
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Vice Chairman of Daewon Pharm
Baek Seung-ryel
- Baek Seung-ryel is the Vice Chairman and CEO of Daewon Pharm. He leads the company under a co-CEO system alongside his nephew, Baek In-hwan, who serves as President and CEO. He was born on March 10, 1959, in Eumseong, Chungcheongbuk-do, as the second son of Baek Bu-hyeon, the founder of Daewon Pharm. His older brother is Baek Seung-ho, Chairman of Daewon Pharm. He graduated from Gyeonggi High School in Seoul and earned a degree in Agricultural Biology from Seoul National University. He then obtained a master's degree in Plant Pathology from the University of Georgia and a Ph.D. in Agriculture from Seoul National University Graduate School. He joined Daewon Pharm as a director, later serving as Executive Vice President before being appointed President and CEO in 2008. He expanded the company's business scope into health functional foods and cosmetics by acquiring Keukdong H Pharm and SD Biotechnologies. He is working to expand the company with the goal of becoming a comprehensive healthcare company with KRW 1 trillion (US$ 721.1 million) in annual revenue by 2025. #BaekSeungryel #DaewonPharm #pharmaceuticals #healthcare #businessgrowth #cosmetics #nutritionalsupplements #corporatemanagement #biotechnology #executiveleadership
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Vice Chairman of Daewon Pharm
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Founder of Rainbow Robotics
Oh Jun-ho
- Oh Jun-ho is the founder of Rainbow Robotics. With Rainbow Robotics becoming a subsidiary of Samsung Electronics, he also serves as the head and advisor of Samsung Electronics' Future Robot Development Team. He was born on October 3, 1954, in Seoul. He graduated from Yonsei University with a degree in mechanical engineering and earned a master's degree in mechanical engineering from Yonsei University Graduate School. He obtained a Ph.D. in mechanical engineering from the University of California, Berkeley. While working as a professor in the Department of Mechanical Engineering at KAIST (Korea Advanced Institute of Science and Technology), he developed Korea's first bipedal humanoid robot, HUBO, earning him the nickname "Father of HUBO." In 2011, he founded Rainbow Robotics with researchers from the KAIST Department of Mechanical Engineering. He oversees the development of advanced robotic technologies, including humanoid bipedal robot platforms, quadrupedal robots, and collaborative robots. Leveraging his extensive experience in robotic technology and business know-how accumulated in academia and industry, he is dedicated to advancing Samsung Electronics' future robot development. #OhJunho #RainbowRobotics #SamsungElectronics #robotics #HUBO #KAIST #humanoidrobot #collaborativerobot #robottechnology #engineering
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Founder of Rainbow Robotics
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CEO of Robotis
Kim Byoung-soo
- Kim Byoung-soo is the CEO of Robotis. He is focusing on the company's core business of developing actuators for robots. He was born on August 19, 1969. He graduated from Korea University with a degree in electrical engineering and earned a master's degree in intelligent robotics from Hanyang University. He also completed an MBA program at Korea University Graduate School. He worked as an engineer at Kia Information Systems. He won championships in the Mobile Robot Contest, Japan Micromouse Competition, and Robot World Cup. In 1999, he founded Robotis. He has served as a director of the Korea Association of Robot Industry and the Korea Robotics Society, as well as the president of the STEAM Education Association. He is recognized for pioneering new fields in the robotics market and envisions a future where humans and robots coexist. #KimByoungsoo #Robotis #robotics #actuators #automation #AI #engineering #robotindustry #technology #innovation
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CEO of Robotis
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CEO of P&S Mechanics
Park Kwang-hun
- Park Kwang-hun is the CEO of P&S Mechanics. He is dedicated to expanding the company's robotic product lineup from its core lower-limb rehabilitation robots to upper-limb and full-body rehabilitation robots. He was born on December 26, 1957. He graduated from the Department of Mechanical Design at Seoul National University. He began his career as a researcher at Goldstar Research Institute. After working at Sindoh Research Institute, he founded the robotics company P&S Mechanics in 1997. He is a medical rehabilitation robotics expert who has played a pioneering role in the domestic medical robotics industry. #ParkKwanghun #PSMechanics #rehabilitationrobotics #medicalrobotics #robotics #SouthKorea #healthcaretechnology #innovation #engineering #businessleadership
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CEO of P&S Mechanics
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CEO of HDC Hyundai Development Company
Chung Kyung-ku
- Chung Kyung-ku is the designated President and CEO of HDC Hyundai Development Company. As HDC Group’s leading financial expert, he is focusing organizational capabilities on the Gwangwoon University Station area development project. He was born on June 18, 1965. He graduated from Seongdo High School in Busan and earned a degree in law from Seoul National University. He joined Shinhan Investment Corporation and worked there for nearly 20 years before moving to the finance team at Hyundai Development Company. In 2017, he was appointed CEO of HDC Asset Management. He served as Head of the Management Planning Division at HDC Hyundai Development Company and as CEO of HDC Hyundai Development Company before becoming CEO of HDC, the group’s holding company, in 2022. In 2024, he returned to HDC Hyundai Development Company as the designated President and CEO. He is working to restore the I’Park brand and regain market trust by completing the reconstruction of Hwajeong I’Park in Gwangju. #ChungKyungku #HDCHyundaiDevelopmentCompany #HDC #realestate #finance #construction #investment #IPark #Gwangju #corporatemanagement
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CEO of HDC Hyundai Development Company
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Vice Chairman of Hanwha Group
Kim Dong-kwan
- Kim Dong-kwan is the Vice Chairman of Hanwha Group. He serves as CEO of Hanwha’s Strategy Division, as well as the Strategy Divisions of Hanwha Solutions and Hanwha Aerospace, and the Investment Division of Hanwha Impact. He was born on October 31, 1983, as the eldest son of Kim Seung-youn, Chairman of Hanwha Group. He graduated from St. Paul’s School in the United States and earned a degree in Political Science from Harvard University. He began his career at Hanwha and later worked at Hanwha SolarOne and Hanwha Q CELLS. When Hanwha Chemical and Hanwha Q CELLS merged to form Hanwha Solutions, he was appointed as CEO and President in 2020. As Head of Hanwha’s Strategy Division, he took on a key role in overseeing the group. By also serving as CEO of Hanwha Solutions, Hanwha Aerospace, and Hanwha Impact, he reinforced his leadership within the company. He has restructured Hanwha Group’s business portfolio to focus on aerospace and defense, marine, and energy sectors. He also led the acquisition of solar energy companies and Daewoo Shipbuilding & Marine Engineering, paving the way for management succession. He is known for his polished manners and has a strong workaholic tendency. #KimDongkwan #Hanwha #HanwhaGroup #HanwhaSolutions #HanwhaAerospace #HanwhaImpact #DaewooShipbuilding #solarenergy #defenseindustry #businessleadership
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Vice Chairman of Hanwha Group
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President of Hana Bank
Lee Ho-sung
- Lee Ho-sung is the president of Hana Bank. He is focused on expanding the customer base to drive Hana Bank’s growth as a leading bank. He was born on December 25, 1964, in Daegu. He graduated from Daegu Jungang Commercial High School. He began his career at Hanil Bank before joining Hana Bank, where he held positions as head of the Central Sales Group, Yeongnam Sales Group, and Sales Group. In 2023, he was appointed CEO of Hana Card, and in 2025, he was named president of Hana Bank. As a commercial high school graduate who started his career at a different bank before joining Hana Bank, he is often compared to Ham Young-joo, chairman of Hana Financial Group, for his rise to the CEO position based on strong sales expertise. He has an outgoing and easygoing personality and interacts naturally with employees. #LeeHosung #HanaBank #HanaFinancialGroup #HanaCard #banking #finance #Daegu #Koreabanking #CEO #leadership
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President of Hana Bank
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CEO of Saltlux
Lee Kyung-il
- Lee Kyung-il is the CEO of Saltlux. He aims to expand the virtual human video generation service "Plunit Studio" by leveraging the merger of subsidiary companies. He was born on July 14, 1971. He graduated from the Department of Electronic Materials Engineering at Inha University and earned a master's degree in electronic materials engineering from Inha University Graduate School. After working at LG Central Research Laboratory, he was employed at Hyundai Electronics. In 2000, he founded Sysmeta, a company specializing in natural language processing, which was the predecessor of Saltlux. Sysmeta later merged with Mobico International, leading to the company being renamed Saltlux. In 2025, he launched the language model "LUXIA 2.5," which has gained attention as a competitor to China's generative AI "Deepseek." #LeeKyungil #Saltlux #AI #generativeAI #PlunitStudio #LUXIA #Deepseek #HyundaiElectronics #naturalanguageprocessing #Koreantech
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CEO of Saltlux
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CEO of Stellantis Korea
Bang Sil
- Bang Sil is the President and CEO of Stellantis Korea. She is the first Korean President and CEO of Stellantis Korea and the company's first female CEO. She is focused on expanding the sales of Jeep and Peugeot. She was born in 1971. She graduated from Ewha Womans University with a degree in Textile Art and earned a master's degree in Textile Art from the same university’s graduate school. She also completed an MBA program at Korea University Graduate School. She began her career as a PR manager at Volkswagen Korea and later served as Head of Marketing PR and Head of Marketing PR & Sales. She then moved to Renault Samsung Motors, where she held various positions, including Head of Marketing Operations, Head of Customer Experience Operations, Head of Direct Sales Division, and Head of Individual Sales Division, before serving as Head of Network Training & Support Operations. In 2024, she was appointed President and CEO of Stellantis Korea. She is known as an "all-around player" in the automotive industry, having experience in PR, marketing, sales, after-sales, and network operations. #BangSil #StellantisKorea #automotiveindustry #Jeep #Peugeot #VolkswagenKorea #RenaultSamsungMotors #marketing #sales #leadership
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CEO of Stellantis Korea
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CEO of LG Innotek
Moon Hyuk-soo
- Moon Hyuk-soo is the CEO of LG Innotek. He is focusing on diversifying the company's revenue structure, which has been heavily reliant on optical solutions, by expanding into high-value semiconductor substrates and automotive components. He was born on November 15, 1970, in Seoul. He graduated from Gyeonggi Science High School and KAIST (Korea Advanced Institute of Science and Technology) with a degree in chemical engineering. He also earned both his master’s and doctorate degrees in chemical engineering from KAIST. He began his career at LG Cable before moving to LG Innotek. He served as the head of the Optical Solution Research Lab and the head of the Optical Solution Business Unit before working as the Chief Strategy Officer (CSO). In 2024, he was appointed CEO. He played a leading role in establishing LG Innotek as a key player in the mobile camera module industry. #MoonHyuksoo #LGInnotek #CEO #opticalsolutions #semiconductorsubstrates #automotivecomponents #KAIST #LGCable #businessleadership #cameramodules
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CEO of LG Innotek
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CEO of Sungkwang Bend
Ahn Jae-il
- Ahn Jae-il is the CEO of Sungkwang Bend. He is focusing on enhancing shareholder value while accelerating business diversification. He was born on November 10, 1962, in Busan as the son of Ahn Gap-won, chairman of Sungkwang Bend. He graduated from Dongseong High School in Busan and Dongguk University with a degree in philosophy. He joined Sungkwang Bend and worked as a sales director and managing director. In 2003, he was appointed as the CEO of Sungkwang Bend. He expanded the business scope from pipe fittings in the petrochemical, shipbuilding, marine, and power plant industries to solar power generation. Known for his bold personality, he takes an interest in employee welfare. #AhnJaeil #SungkwangBend #CEO #businessdiversification #solarenergy #petrochemical #shipbuilding #powerplant #shareholdervalue #employeewelfare
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CEO of Sungkwang Bend
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CEO of SK Enmove
Kim Wone-kee
- Kim Wone-kee is the President and CEO of SK Enmove. He is focusing on new businesses, including the commercialization of fluid-based cooling technology. He was born in December 1970. He graduated from Hanyang University with a degree in chemical engineering. He worked as the head of the Base Oil Marketing Office at SK Lubricants, the predecessor of SK Enmove, before moving to SK Engineering & Construction as CEO of EMC. He returned to SK Lubricants, where he served as the head of the Amsterdam branch and the head of the Green Growth Division. In 2023, he was appointed President and CEO of SK Enmove. As an expert in the lubricants business, he is strengthening the competitiveness of the base oil business while focusing on discovering new business opportunities. He values communication among organizational members. #KimWonekee #SKEnmove #lubricants #coolingtechnology #chemicalengineering #HanyangUniversity #businessleadership #baseoil #greengrowth #CEO
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CEO of SK Enmove
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CEO of Green Plus
Park Young-hwan
- Park Young-hwan is the CEO of Green Plus. He is the founder of Green Plus, a company engaged in the aluminum and smart farm businesses. He is working to expand the overseas exports of the smart farm business. He was born on February 14, 1965. He graduated from Suwon Industrial College with a degree in Mechanical Design. In 1988, he joined Heeseung Aluminum, marking his entry into the aluminum industry. In 1997, he founded Green Plus, an aluminum extrusion and processing company, and later expanded its business scope to smart farm materials and construction. He has grown Green Plus into the top-ranked company in South Korea for greenhouse construction capability. #ParkYounghwan #GreenPlus #CEO #smartfarm #aluminum #founder #greenhouse #exports #business #SouthKorea
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CEO of Green Plus
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CEO of GeneOne Life Science
Park Young-kun
- Park Young-kun is the CEO of GeneOne Life Science. He also serves as the CEO of its subsidiary, VGXI. He is accelerating efforts to secure orders for plasmid DNA, a key raw material for gene therapies and DNA vaccines. Born on March 25, 1964, he is a Korean-American who immigrated to the United States with his parents when he was in the first year of middle school. He graduated from Dickinson College with a degree in economics, completed an MBA program at MIT Sloan School of Management, and earned a J.D. from the University of Pennsylvania Law School, obtaining his U.S. attorney license. He established his own law firm, Law Office Y.K. PARK. He was a founding member and vice president of VGX Pharmaceuticals, a subsidiary of U.S. biotech company Inovio. After serving as an in-house legal counsel and director at GeneOne Life Science, which was acquired by Inovio, he became CEO in 2011. That same year, he also assumed the role of CEO at its subsidiary, VGXI. He possesses perseverance and drive, seeing every endeavor through to the end. #ParkYoungkun #GeneOneLifeScience #VGXI #biotechnology #DNAvaccine #genetherapy #plasmidDNA #Inovio #biopharmaceuticals #CEO
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CEO of GeneOne Life Science
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CEO of Citibank Korea
Yoo Myung-soon
- Yoo Myung-soon is the CEO of Citibank Korea and also serves as the Chairman of the Board. She is working hard to grow Citibank Korea into a major subsidiary of Citigroup. Born on November 8, 1964, Yoo graduated from Ewha Womans University with a degree in English Education and earned an MBA from the Graduate School of Business at Sogang University. She began her career at Citibank Korea, working as an analyst in the Corporate Credit Department, a credit officer in the Multinational Corporations Department, head of the Multinational Corporations Division, and head of the Corporate Banking Products Division before becoming a vice president. She then moved to JP Morgan Chase as a branch manager. Yoo returned to Citibank Korea as the head of the Corporate Banking Group, and after serving as a senior vice president, she was appointed as the bank’s CEO. She is the first female CEO of Citibank Korea and the first female CEO of a private bank in South Korea. With over 30 years of experience in corporate finance, she is a corporate banking expert. #YooMyungSoon #CitibankKorea #Citigroup #femaleCEO #SouthKorea #corporatefinance #banking #corporatebanking #womenleaders #businesswoman
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CEO of Citibank Korea
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Chairman of HLB
Jin Yang-gon
- Jin Yang-gon is the Chairman and CEO of HLB. He is focused on the commercialization of new drugs, including the anticancer drug "Rivoceranib," and securing growth momentum through mergers and acquisitions. He was born on January 14, 1966, in Busan. He graduated from Wonkwang University with a degree in law and earned a master's degree in business administration from Yonsei University Graduate School. After working at Busan Bank and Peace Bank, he left the banking sector and ran a pub. In 1998, he founded the consulting firm J&Lee Partners. In 2004, he established the investment company Golden Light and entered the mergers and acquisitions business. After acquiring HLB, he ventured into the biotechnology industry. He has applied for U.S. Food and Drug Administration (FDA) approval for Rivoceranib as a liver cancer treatment and is preparing for commercialization. He advocates for people-centered management. #HLB #biotech #pharmaceuticals #Rivoceranib #FDAapproval #anticancerdrug #businessleadership #mergersandacquisitions #Korea #healthcare
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Chairman of HLB
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CEO of Neuromeka
Park Jong-hoon
- Park Jong-hoon is the CEO of Neuromeka. He is focusing on the food tech business with the goal of turning a profit in 2025. He was born in January 1969. He graduated from Pohang University of Science and Technology (POSTECH) with a degree in mechanical engineering and earned both his master's and doctoral degrees in mechanical engineering from the same institution. After graduation, he worked as a senior researcher at the Korea Institute of Robot and Convergence, a development team leader at Pohang Intelligent Robot Research Center, and a chief technology officer at SimLab before founding the robotics manufacturing company Neuromeka in 2013. He localized cooperative robots by independently developing components that had previously been imported. His work contributed to improving operational efficiency across various industries while reducing labor costs. Despite being an engineer, his strong business acumen enabled him to grow the company into one of South Korea’s leading robotics firms within just 10 years. #ParkJonghoon #Neuromeka #Robotics #Automation #AI #FoodTech #Manufacturing #Engineering #Startup #Innovation
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CEO of Neuromeka
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Chairman of the Board at Lunit
Baek Seung-wook
- Baek Seung-wook is the Chairman of the Board at Lunit. As a founder, he also serves as the Chief Innovation Officer (CIO). He is focused on discovering future new businesses and fostering collaborations with the world's top five pharmaceutical companies. He was born on July 20, 1983. He graduated from the Korea Advanced Institute of Science and Technology (KAIST) with a degree in electronic engineering and earned both his master's and doctoral degrees from the same institution. During his second year at KAIST, he assisted with research at a company founded by a senior student, which inspired his entrepreneurial ambitions. After graduation, in 2013, he co-founded a company named CLDI with fellow KAIST alumni. In 2015, the company changed its name to Lunit, and he became its CEO. As a first-generation medical AI company, Lunit aims to conquer cancer through artificial intelligence. Within ten years of its founding, he grew the company into a KRW 1 trillion (US$ 721.2 million) enterprise. His goal is to establish an innovative AI-powered medical support system covering the entire cancer diagnosis and treatment process. #BaekSeungwook #Lunit #AIHealthcare #MedicalAI #CancerDiagnosis #CancerTreatment #KAIST #Startup #Innovation #Biotech
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Chairman of the Board at Lunit
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Head of the Foundry Business at Samsung Electronics.
Han Jin-man
- Han Jin-man is the President and Head of the Foundry Business in the Device Solutions (DS) Division at Samsung Electronics. He is focusing the company's efforts on narrowing the technological gap in advanced semiconductor manufacturing processes with Taiwan’s TSMC. He was born on October 24, 1966, in Gangwon Province. He graduated from Gangwon High School and earned a degree in Electrical Engineering from Seoul National University. He joined Samsung Electronics' Semiconductor (DS) Division as part of the DRAM Design Team in the Memory Business Unit. After working at Micron in the United States, he returned to Samsung Electronics as a senior executive in the Flash Development Office of the Memory Business Unit. He later held positions as Head of the PE Team in the Solution Development Office, Head of the SSD Development Team, and Head of the Product Planning Team in the Strategic Marketing Office, before serving as the Head of Strategic Marketing. After working as the Head of Samsung Electronics’ DS Division in North America, he was promoted in 2024 to President and Head of the Foundry Business in the DS Division. He is focused on securing big-tech clients for semiconductor processes below 2 nanometers. #Samsung #semiconductor #foundry #TSMC #SamsungElectronics #chipmanufacturing #nanotechnology #techleadership #memorybusiness #engineering
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Head of the Foundry Business at Samsung Electronics.
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CEO of KB Kookmin Card
Kim Jae-kwan
- Kim Jae-kwan is the CEO and President of KB Kookmin Card. He is focused on strengthening the B2B business to improve profitability while working to elevate KB Kookmin Card from its current third-place ranking in the credit card industry to the top position. He was born on July 14, 1968, in Seoul. He graduated from Shinil High School in Seoul and earned a degree in economics from Sogang University. He began his career at Kookmin Bank, where he held positions as Head of the Corporate Products Department, Head of the SME Customer Department, and Head of the Corporate Finance Solutions Division. He later served as Senior Executive Vice President, leading the Management Planning Group, before moving to KB Financial Group as Vice President in charge of finance. In 2025, he was appointed CEO of KB Kookmin Card. He values efficient work processes through active communication. #KimJaekwan #KBKookminCard #KBFinancialGroup #creditcards #banking #finance #B2B #businessgrowth #leadership #SouthKorea
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CEO of KB Kookmin Card
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CEO of Oscotec
Kim Jung-kun
- Kim Jung-kun is the CEO of Oscotec. He leads Oscotec under a co-CEO system alongside CEO Yoon Tae-young. While developing new drugs, he focuses on enhancing corporate value and shareholder value. He was born on February 20, 1960, in Chuncheon, Gangwon Province. He graduated from the School of Dentistry at Seoul National University. He earned a master's degree in dentistry and a doctorate in biochemistry from the graduate school of Seoul National University. He worked as a professor in the Department of Biochemistry at Dankook University’s College of Dentistry. After serving as a researcher at Harvard Medical School in the United States and as the director of the Korea Institute of Biomaterials, he founded Ostek in 1998 and started a bone grafting business. After transitioning to new drug development, he developed Lazertinib, an EGFR lung cancer treatment candidate. He possesses strong determination, drive, and perseverance. #Oscotec #KimJungkun #biotechnology #newdrugdevelopment #Lazertinib #EGFR #lungcancertreatment #biopharmaceuticals #HarvardMedicalSchool #SeoulNationalUniversity
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CEO of Oscotec
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CEO of Nextbiomedical
Lee Don-haeng
- Lee Don-haeng is the CEO of Nextbiomedical. He founded the company while working as a doctor and has continued to practice medicine even after its establishment. He was born on February 28, 1963. He graduated from Yonsei University with a degree in medicine and earned both his master's and doctoral degrees in internal medicine from Yonsei University Graduate School. He joined Inha University Hospital as an assistant professor in the Department of Gastroenterology and served as co-director of the Utah-Inha DDS Joint Research Center and director of the Biomedical Research Institute. In 2014, he founded Nextbiomedical and launched the NexPowder business, an endoscopic hemostatic agent. He served as the director of the National Designated Gastrointestinal Disease Efficacy Evaluation Center. He aims to develop endoscopic hemostatic agents, vascular embolic microspheres, and musculoskeletal pain embolization treatments to establish the company as a leading global polymer therapeutics firm. #LeeDonhaeng #Nextbiomedical #medicalstartup #biotechnology #gastroenterology #endoscopy #hemostaticagent #vascularembolization #polymertherapeutics #medicalinnovation
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CEO of Nextbiomedical
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CEO of the Industrial Bank of Korea
Kim Sung-tae
- Kim Sung-tae is the CEO of the Industrial Bank of Korea (IBK). He is focusing on expanding financial support for small and medium-sized enterprises (SMEs) and small business owners while strengthening capital supply to foster promising ventures. He was born in 1962 in Seocheon, Chungcheongnam-do. He graduated from Daejeon Commercial High School and earned a degree in business administration from Chungnam National University. He also completed an MBA program at the Helsinki School of Economics in Finland. He joined the Industrial Bank of Korea and held positions such as Head of Future Planning, Head of Comprehensive Planning, Head of Marketing Strategy, Head of the Busan-Ulsan Regional Headquarters, and Head of the Gyeongdong Regional Headquarters. He later served as Head of the Consumer Protection Group and Head of the Management Strategy Group before being appointed CEO of IBK Capital, a subsidiary of the Industrial Bank of Korea, in 2019. After returning to the Industrial Bank of Korea as Senior Executive Vice President, he was appointed CEO of the Industrial Bank of Korea in 2023. He is regarded as a strategic expert with exceptional planning skills and execution capabilities. #KimSungtae #IBK #IndustrialBankofKorea #CEO #finance #SMEsupport #venturecapital #banking #SouthKorea #business
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CEO of the Industrial Bank of Korea
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CEO of DL E&C
Park Sang-shin
- Park Sang-shin is the CEO of DL E&C. He is focusing on improving operating profit to navigate through the construction industry downturn. He was born on April 6, 1962. He graduated from Daheung High School in Chungnam and earned a degree in Business Administration from Korea University. After joining Samho, he consistently worked in DL Group’s construction affiliates, handling the housing business. At Samho, he served as Head of Sales and Development Projects before becoming Head of the Management Innovation Division. In 2016, he was appointed CEO of Korea Development Corporation. He later served as Head of the Housing Business Division and CEO of the Construction Business Unit at Daelim Industrial. After a brief tenure as CEO of Jinheung Construction, he returned as CEO of DL E&C in 2024. He led the rebranding of the high-end apartment brand "ACRO." He is recognized for his outstanding crisis management skills. #ParkSangshin #DLE&C #construction #realestate #housing #CEO #business #management #Korea #ACRO
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CEO of DL E&C
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Chairman of Pharmicell
Kim Hyun-soo
- Kim Hyun-soo is the Chairman and CEO of Pharmicell. He also serves as the Chief Director of 'Kim Hyun-soo Stem Cell Clinic.' He is focusing on expanding the production capacity of stem cell therapeutics. He was born in January 1964 in Seoul. He graduated from Yonsei University Wonju College of Medicine and earned a master's degree from Ajou University School of Medicine. He worked as an assistant professor in the Hematology-Oncology Department at Ajou University before founding the stem cell therapy venture company FCB-Pharmicell in 2002. He acquired a clothing company to list FCB-Pharmicell through a backdoor listing and later acquired IDBchem to enter the gene therapy raw material business. He developed the world's first stem cell therapy. He is committed to the research, development, and commercialization of nucleosides, a raw material for gene therapy. #KimHyunsoo #Pharmicell #stemcell #biotechnology #genetherapy #medicalresearch #healthcare #biopharma #biotechstartup #nucleosides
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Chairman of Pharmicell
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Governor of Gyeonggi-do
Kim Dong-yeon
- Kim Dong-yeon is the Governor of Gyeonggi-do. He was born on January 28, 1957, in Eumseong, Chungcheongbuk-do. He graduated from Seoul Deoksu Commercial High School and joined Korea Trust Bank. While working, he completed his undergraduate degree in law at International University, a night school. He then earned a master's degree in public administration from Seoul National University Graduate School and later obtained both a master's and a doctoral degree in policy studies from the University of Michigan Graduate School in the United States. In 1982, he passed the 6th Legislative Examination and the 26th Administrative Examination, beginning his public service career at the Economic Planning Board. He mainly worked at the Ministry of Planning and Budget and the Ministry of Strategy and Finance, where he was responsible for planning and executing the "Vision 2030" initiative during the Roh Moo-hyun administration. After serving as Minister of Government Policy Coordination and President of Ajou University, he became Deputy Prime Minister and Minister of Strategy and Finance under the Moon Jae-in administration. After stepping down as Deputy Prime Minister, he announced his candidacy for the presidential election and founded a political party. However, during the election process, he merged his campaign with Democratic Party candidate Lee Jae-myung, and after the election, his party merged with the Democratic Party. In the 2022 local elections, he ran for Governor of Gyeonggi-do and was elected. He is considered a potential candidate for the next presidential election and is focusing on presenting economic solutions for overcoming national crises. He is humble and gentle, yet firm in his convictions and highly driven. #KimDongyeon #Gyeonggido #politics #economicpolicy #publicservice #finance #governor #leadership #SouthKorea #nextpresident
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Governor of Gyeonggi-do
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Chairman of Mirae Asset Financial Group
Park Hyeon-joo
- Park Hyeon-joo is the chairman of Mirae Asset Financial Group. He is dedicated to expanding into the Indian market, strengthening the overseas exchange-traded fund (ETF) brand, and growing the company's global operations. He was born on October 17, 1958, in Gwangju. He graduated from Gwangju Jeil High School and studied business administration at Korea University. After working at Dongyang Securities, he served as a director at Dongwon Securities before founding Mirae Venture Investment and Mirae Asset Global Investments in 1997. He expanded into the securities and insurance sectors by successively establishing Mirae Asset Venture Investment, Mirae Asset Securities, and Mirae Asset Life Insurance. He further grew the company through mergers and acquisitions, acquiring SK Investment Trust Management, SK Life Insurance, KDB Daewoo Securities, as well as ETF-specialized asset management firms in Canada, the United States, and Australia. He also acquired Sharekhan Securities, a local brokerage firm in India. After stepping down as chairman of Mirae Asset Securities, he has been focusing on international business as the Global Strategy Officer. He is regarded as a "pioneer of Korea’s capital market" and "one of the best financial strategists." He is known for his bold decision-making and instinctive investment acumen. #ParkHyeonjoo #MiraeAsset #KoreaFinance #GlobalInvestment #ETF #CapitalMarket #FinancialStrategy #Securities #InvestmentBanking #KoreaBusiness
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Chairman of Mirae Asset Financial Group
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CEO of Chobi
Lee Seung-yeon
- Lee Seung-yeon is the CEO and President of Chobi. She also serves as the CEO of its affiliate, Top Fresh. She was born on September 17, 1981, as the second daughter among one son and two daughters of Lee Byung-man, Chairman of Kyung Nong. As a third-generation business executive, her older sister, Lee Jae-yeon, works as a director at Global Agro, while her younger brother, Lee Yong-jin, serves as the CEO of Kyung Nong and Dongo Holdings. She majored in financial accounting at the University of Pennsylvania in the United States. She worked as an analyst at Prudential and Avon Products in the U.S. She joined Kyung Nong and served as president before being appointed CEO of Chobi in 2021. She is committed to ethical management and corporate social responsibility. She sees controlled-release fertilizers coated with biodegradable resin as a new growth driver and is focusing on research and development as well as expanding sales. #LeeSeungyeon #Chobi #KyungNong #TopFresh #DongoHoldings #biodegradable #fertilizer #corporatesocialresponsibility #CEO #businesswoman
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CEO of Chobi
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Floor Leader of the People Power Party
Kweon Seong-dong
- Kweon Seong-dong is the floor leader of the People Power Party. With President Yoon Suk-yeol facing a potential impeachment crisis, he is working to unify the People Power Party. He was born on April 29, 1960, in Gangneung, Gangwon-do. He graduated from Myeongryun High School in Gangneung and studied law at Chung-Ang University. After passing the 27th bar exam, he served as a legal officer in the Navy before becoming a prosecutor. He worked as the head of the Special Investigation Division at the Incheon District Prosecutors' Office and concluded his prosecution career at the Gwangju High Prosecutors' Office before becoming an attorney at Seojeong Law Firm. During the Lee Myung-bak administration, he served as the legal affairs secretary in the presidential office. In the 2009 by-election, he ran as the candidate for the Grand National Party in Gangneung and was elected. He has since been elected five consecutive times as the representative for Gangneung in the National Assembly, up to the 22nd National Assembly. During the impeachment trial of President Park Geun-hye, he served as the head of the impeachment prosecution committee, representing the National Assembly. He left the Saenuri Party to join the Bareun Party but later returned to the Liberty Korea Party (now the People Power Party). In the 21st general election, after failing to secure a party nomination, he ran as an independent, won, and later rejoined the party. Amid the political turmoil following President Yoon Suk-yeol’s December 3 emergency martial law declaration, he was elected as the floor leader of the People Power Party. As a 40-year-long friend and political partner of President Yoon Suk-yeol, he is considered a key figure among the so-called "Yoon core associates" (Yoon Haek-gwan). #KweonSeongdong #PeoplePowerParty #SouthKorea #politics #YoonSukyeol #impeachment #NationalAssembly #floorleader #prosecutor #Gangwondo
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Floor Leader of the People Power Party
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Chairman of the Korea Federation of Banks
Cho Yong-byoung
- Cho Yong-byoung is the chairman of the Korea Federation of Banks. As demands for stricter internal controls on banks intensify, he is focusing on serving as a bridge between the banking sector and financial authorities. He was born on June 30, 1957, in Haman, Gyeongsangnam-do. He graduated from Daejeon High School and studied law at Korea University. He completed an MBA program at the Helsinki School of Economics in Finland. He joined Shinhan Bank, where he held positions as head of the Human Resources Department, head of the Planning Department, and branch manager of the New York branch before serving as an executive director in charge of global business. After serving as head of the Retail Division and deputy president of the Sales Promotion Group, he became CEO of Shinhan BNP Paribas Asset Management in 2013. He served as president of Shinhan Bank before being appointed chairman of Shinhan Financial Group in 2017. After completing two terms as chairman, he was elected chairman of the Korea Federation of Banks in 2023. He demonstrates strong leadership while maintaining smooth communication. #ChoYongbyoung #KoreaFederationofBanks #banking #finance #ShinhanBank #ShinhanFinancialGroup #leadership #internalcontrol #financialsector #bankregulation
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Chairman of the Korea Federation of Banks
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CEO and Chairman of Cheil Grinding Wheel
Oh Yu-in
- Oh Yu-in is the Chairman and CEO of Cheil Grinding Wheel. As the second-generation owner, his father was the late Chairman Oh Il-yong, the founder of both Cheil Grinding Wheel and Dongil Industries. He is actively promoting digital transformation efforts to enhance the company's growth and competitiveness. He was born on August 20, 1950, in Sangju, Gyeongsangbuk-do. He graduated from Daegu Kyesung High School and Hanyang University with a degree in Ceramic Engineering. In 1972, he joined Cheil Grinding Wheel and later served as Executive Director and Vice President of Dongil Industries before being appointed CEO and President of Cheil Grinding Wheel in 1990. In 2013, he separated from Dongil Industries and began independent management, and in 2014, he became Chairman of Cheil Grinding Wheel. He also serves as CEO of the affiliated company Semyung Enterprise. He has grown Cheil Grinding Wheel into the No. 1 company in the domestic market for grinding wheels. He is establishing a foundation for third-generation management by forming a co-CEO system with his son, Oh Hyun-soo, while appointing professional managers to support the company's leadership. #OhYuIn #CheilGrindingWheel #GrindingIndustry #DigitalTransformation #KoreanBusiness #FamilyBusiness #Manufacturing #IndustrialGrowth #KoreanCompanies #Leadership
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CEO and Chairman of Cheil Grinding Wheel
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President of Korea University
Kim Dong-one
- Kim Dong-won is the president of Korea University. Ahead of the university's 120th anniversary in 2025, he is accelerating efforts to lay the foundation for a quantum leap. He was born on January 15, 1960, in Andong. After graduating from the Business Administration Department at Korea University, he earned his master’s and doctoral degrees in Industrial Relations from the University of Wisconsin-Madison in the United States. He worked as a professor of business administration at the State University of New York before moving to Korea University as a professor of business administration. He served as the director of general affairs, the director of planning and budgeting, the dean of the Graduate School of Labor Studies, the dean of the College of Business Administration, and the dean of the Graduate School of Business before being elected president of Korea University in 2023. He was the third Asian and the first Korean to serve as the president of the International Labour and Employment Relations Association (ILERA). He is focused on establishing a future-oriented education and research platform. He believes that universities gain their value through participation in and research on social issues. #KoreaUniversity #KimDongWon #UniversityPresident #HigherEducation #BusinessAdministration #IndustrialRelations #ILERA #AcademicLeadership #FutureEducation #SocialResearch
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President of Korea University
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CEO of Bohae Brewery
Im Ji-sun
- Im Ji-sun is the co-CEO and president of Bohae Brewery. As a third-generation owner, she leads the company under a co-CEO system alongside CEO Cho Young-seok. She is focused on developing products that align with trends in the liquor industry. She was born on August 24, 1985, as the eldest daughter of Im Sung-woo, chairman of Changhae Ethanol, and has one brother and one sister. She graduated from the University of Michigan in the United States and earned a master's degree from Yonsei University’s Graduate School of Business. After working at Cheil Worldwide, she joined Changhae Ethanol as an executive director after her father acquired the company. She later served as head of sales at Bohae Brewery before becoming CEO in 2015 at the age of 30. She is a rare female CEO in the liquor industry and also the youngest CEO in the field. She is known for her ability to quickly identify market trends. #ImJisun #BohaeBrewery #liquorindustry #femaleCEO #youngestCEO #businessleadership #alcoholbeverages #markettrends #Koreanbusiness #CEO
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CEO of Bohae Brewery
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President of Woori Bank
Jung Jin-wan
- Jung Jin-wan is the president of Woori Bank. He is focused on restoring trust that was damaged by improper loans and employee embezzlement. He was born on November 17, 1968, in Pohang, Gyeongsangbuk-do. He graduated from Pohang Jecheol High School and Kyungpook National University with a degree in law. He began his career at Hanil Bank. After Hanil Bank merged with Commercial Bank to form Woori Bank, he held positions as head of the SME Strategy Department, head of the Main Branch Business Division, and executive vice president of the SME Group. In 2025, he was appointed as the bank's president, making him the youngest president of Woori Bank since privatization. He is focused on preventing financial incidents while overcoming factional conflicts between former Hanil Bank and Commercial Bank employees. Recognized as a leading corporate finance expert, he has strong expertise in SME banking. #JungJinwan #WooriBank #banking #finance #corporatefinance #SMEbanking #privatization #Koreanbanking #financialtrust #bankpresident
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President of Woori Bank
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CEO of Dreamtech
Kim Hyoung-min
- Kim Hyoung-min is the Co-CEO of Dreamtech. He is in charge of the healthcare business and leads the company under a co-CEO system alongside CEO Park Chan-hong, who oversees the smartphone components business. He was born on August 22, 1970. He completed his MBA at The Wharton School of the University of Pennsylvania. He began his career at Korea Exchange Bank. He worked at Kiwoom Securities and the U.S. firm Lehman Brothers before serving as an investment advisor at Samsung Securities. He became associated with Dreamtech through its parent company, Uniquequest, as a client and later joined Dreamtech as CFO. He was appointed CEO in 2016. Since 2024, he has also served as CEO of its affiliate, Plasmapp. He is focused on expanding the smart medical device and healthcare business while actively seeking new growth engines. #Dreamtech #KimHyoungmin #healthcare #smartmedicaldevices #Plasmapp #SamsungSecurities #LehmanBrothers #investment #Uniquequest #CEO
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CEO of Dreamtech
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Chairman of Motrex
Lee Hyung-hwan
- Lee Hyung-hwan is the chairman and CEO of Motrex. He is the founder of Motrex, a company specializing in in-vehicle infotainment (IVI) systems. He was born on November 30, 1967. He graduated from Beolgyo Commercial High School. He began his career at Hyundai Motor Company. In 2001, he founded Motrex and entered the automotive climate control parts distribution business. After expanding into the automotive navigation business, he broadened the company’s scope to the AVN (audio, video, and navigation) market. In 2018, he acquired Jeonjin Construction Robot, a company specializing in concrete pump trucks. He is exploring future business opportunities in electric vehicle charging and purpose-built vehicle (PBV) displays. #Motrex #LeeHyungHwan #IVI #automotive #infotainment #EVcharging #PBV #technology #businessgrowth #Korea
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Chairman of Motrex
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CEO of Kyobo Life Insurance
Cho Dae-kyu
- Cho Dae-kyu is the co-CEO and president of Kyobo Life Insurance. Kyobo Life Insurance’s owner-executive, Chairman Shin Chang-jae, oversees strategy, planning, and asset management, while Cho, as a professional manager, is responsible for the overall insurance business. He was born on September 2, 1964, in Seoul. He graduated from Sungkyunkwan University with a degree in Physical Education and earned a master’s degree in Business Administration from Sangmyung University Graduate School. He joined Kyobo Life Insurance and held positions as Head of Corporate Planning and Human Resources Support before being promoted to vice president. In 2024, he was appointed as the CEO and president. Having worked exclusively at Kyobo Life Insurance for nearly 36 years, he is a true "Kyobo man" and focuses on improving the profitability of the insurance business, particularly in health insurance. He is strengthening the insurance claim trust business to transform the company into a comprehensive trust firm. #KyoboLife #insurance #ChoDaeKyu #CEO #business #finance #trustbusiness #Korea #healthinsurance #executive
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CEO of Kyobo Life Insurance
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CEO of DK&D
Choi Min-seok
- Choi Min-seok is the CEO and President of DK&D. He is focusing on expanding the business by acquiring DooRim Tech, a synthetic leather manufacturing company. He was born on November 13, 1961, in Goseong, Gyeongnam. He attended Hail Elementary School in Goseong, Gyeongnam, and graduated from Dong-eui University with a degree in chemistry. He earned a master's degree in business administration from Kyungwon University (now Gachon University) Graduate School of Business and a doctorate in business administration from Gachon University Graduate School. After graduating from university, he joined DooRim Tech, a synthetic leather manufacturer, and worked as the head of the research center. He founded Dongkwang Trading and engaged in distribution businesses such as synthetic leather. Later, he acquired DooRim Tech, where he had previously worked, and entered the synthetic leather production industry. He expanded into the production of nonwoven fabrics and sports caps by acquiring DK VINA in Vietnam and Dada C&C. With 30 years of experience in the synthetic leather industry, he is a seasoned expert in the field. #ChoiMinseok #DKD #DooRimTech #syntheticleather #businessleader #KoreanCEO #textileindustry #manufacturing #Vietnambusiness #nonwovenfabric
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CEO of DK&D
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CEO of Kia
Song Ho-sung
- Song Ho-sung is the President and CEO of Kia. He is focused on transforming Kia into a smart mobility service company through its future vehicle strategy, "Plan S." He was born on October 13, 1962 (lunar calendar) in Jeonju, Jeollabuk-do. He graduated from Jeonju High School and earned a degree in French Language and Literature from Yonsei University. He began his career at Hyundai Motor Company. He later moved to Kia, where he served as Head of Export Planning, Head of Kia Europe, and Head of Global Business Management before being appointed CEO in 2020. He has led Kia’s transformation in the electric vehicle era by changing the company name, brand philosophy, emblem, and other core elements. He is recognized as an expert in European markets and export strategy, having worked in these areas for a long time. #SongHosung #Kia #PlanS #SmartMobility #ElectricVehicles #HyundaiMotor #KiaEurope #GlobalStrategy #BusinessLeadership #KoreanAutomotiveIndustry
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CEO of Kia
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CEO of Hyundai Futurenet
Kim Sung-il
- Kim Sung-il is the Vice President and CEO of Hyundai Futurenet. He is focused on strengthening Hyundai Futurenet’s capabilities as the hub for Hyundai Department Store Group’s new businesses. He was born in November 1967. He graduated from Mokpo High School and earned a degree in Business Administration from Korea University. He obtained a master’s degree in Broadcasting and Visual Media from Yonsei University’s Graduate School of Communication and Media, and another master’s degree in Hospital Management from Yonsei University’s Graduate School of Public Health. He began his career at Hyundai Department Store. He served as the Executive Director in charge of PP at Hyundai HCN before being appointed as CEO of Hyundai HCN and Hyundai IT&E in 2019. After working as the CEO of Hyundai IT&E and the Head of DT Promotion at the Planning and Coordination Division, he was appointed as the CEO of Hyundai Futurenet and the Head of DT Promotion at Hyundai GF Holdings in 2024. He has been leading the digital transformation of Hyundai Department Store Group. #KimSungil #HyundaiFuturenet #HyundaiDepartmentStore #HyundaiGFHoldings #DigitalTransformation #KoreaUniversity #YonseiUniversity #BusinessLeadership #RetailInnovation #ITandMedia
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CEO of Hyundai Futurenet
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President of Seoul National University
Ryu Hong-lim
- Ryu Hong-lim is the President of Seoul National University. Amid an era of great transformation, he is focusing on educational innovation to create new synergies between education and research. He was born on December 12, 1961, in Cheongju, Chungcheongbuk-do. He graduated from Cheongju High School and earned a degree in political science from Seoul National University. He then obtained a master's degree in political science from the graduate school of Seoul National University. He earned his Ph.D. from Rutgers University in the United States, specializing in Western political thought history and modern political thought. Since 1995, he has been a professor in the Department of Political Science and International Relations at Seoul National University. He has served as the chief editor of the Seoul National University newspaper, director of the university archives, and dean of the College of Social Sciences before being elected president in 2023. He has also served as the president of the Korean Association of Political Thought. He is dedicating efforts to innovating university governance, infrastructure, and operational systems to build a dynamic education and research ecosystem. #SeoulNationalUniversity #RyuHongLim #EducationInnovation #PoliticalScience #HigherEducation #UniversityLeadership #AcademicResearch #KoreanEducation #RutgersUniversity #UniversityReform
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President of Seoul National University
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Chairman of JW Group
Lee Kyung-ha
- Lee Kyung-ha is the chairman of JW Group. He also serves as the CEO of the holding company, JW Holdings. He is leading the development of innovative new drugs and business diversification. He is the third-generation owner, as the grandson of Lee Ki-seok, the founder of JW Pharmaceutical. He was born on August 29, 1963. He graduated from the College of Pharmacy at Sungkyunkwan University and completed an MBA program at Drake University in the United States. In 1986, he joined JW Pharmaceutical. In 2001, he was appointed as the CEO and president of JW Pharmaceutical while concurrently serving as the CEO of key affiliates such as JW Medical. In 2015, he became chairman and began full-scale management of the group. While most pharmaceutical companies focused on generic and modified drugs, he dedicated himself to developing innovative new drugs. He is known for his considerate leadership and places great importance on talent development. #JWGroup #LeeKyungHa #PharmaceuticalIndustry #DrugInnovation #JWPharmaceutical #BusinessLeadership #CorporateStrategy #KoreanBusiness #HealthcareIndustry #TalentDevelopment
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Chairman of JW Group
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Chairwoman of Shinsegae
Chung Yoo-kyung
- Chung Yoo-kyung is the Chairwoman of Shinsegae. She has maintained a sibling management structure with her older brother, Chung Yong-jin, Chairman of Shinsegae Group. However, they are now working towards a corporate split, with Chung Yoo-kyung focusing on Shinsegae Department Store and Chung Yong-jin leading E-Mart. She was born on October 5, 1972, as the second child of Chung Jae-eun, Honorary Chairman of Shinsegae Group, and Lee Myung-hee, General Chairwoman of Shinsegae Group. After graduating from Seoul Arts High School, she entered Ewha Womans University to study visual design but later moved to the United States, where she majored in graphic design at the Rhode Island School of Design. In 1996, she joined Shinsegae Chosun Hotel as an executive director in charge of marketing, where she led the upgrade of hotel room designs and interiors. After moving to Shinsegae, she introduced internationally renowned brands and expanded the lifestyle brand ‘Jaju.’ Nine years after being appointed as the General President of Shinsegae, she was promoted to Chairwoman in 2024. With a background in design, she has a strong sense of fashion and a keen eye for global trends. However, she tends to stay out of the public eye. She focuses on the store design of Shinsegae Department Store and supports the fashion and cosmetics business of Shinsegae International. #Shinsegae #ChungYookyung #ShinsegaeDepartmentStore #ShinsegaeInternational #Ecommerce #Retail #LuxuryBrands #FashionBusiness #KoreanBusiness #RetailIndustry
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Chairwoman of Shinsegae
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CEO and Chairman of the Board of Lionheart Studio
Kim Jae-young
- Kim Jae-young is the CEO and Chairman of the Board of Lionheart Studio. He is focused on expanding performance while preparing for the consecutive launch of new games. He was born on November 10, 1973. He graduated from Hanyang University with a degree in Mechanical Engineering and earned a master's degree in Mechanical Design Engineering from the same university. In 2001, he joined the Japanese game development company Koei. After working at the Korean game company Softnyx, he led the development of the action role-playing game (RPG) 'Warlord' at Neowiz Games. In 2012, he founded Action Square and spearheaded the development of the action RPGs 'Blade' and 'Blade 2'. In 2018, he established the game development company Lionheart Studio and became its CEO and Chairman of the Board. In 2021, he gained recognition by successfully launching the massively multiplayer online role-playing game (MMORPG) 'Odin: Valhalla Rising'. #KimJaeYoung #LionheartStudio #MMORPG #OdinValhallaRising #gameindustry #RPG #Blade #KoreaGaming #gameCEO #Neowiz
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CEO and Chairman of the Board of Lionheart Studio
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TYM CEO and Chairman
Kim Hee-yong
- Kim Hee-yong is the Co-CEO and Chairman of TYM. He is focused on developing autonomous agricultural machinery and expanding market influence. As the second-generation owner, his father was the late Kim In-deuk, the honorary chairman and founder of Byucksan Group. He was born on November 2, 1942, in Seoul as the second son among three sons and two daughters. He graduated from Gyeonggi High School in Seoul and studied business administration and industrial design at Indiana State University in the United States. In 1972, he joined Byucksan Group and became Vice Chairman in 1995. In 1987, he was appointed CEO of Dongyang Machinery (TYM), a subsidiary of Byucksan Group, and has served as Chairman and CEO since 2021. He became independent from Byucksan Group in 2004 and has been managing the company on his own. He is making efforts to expand market dominance beyond North America to Europe and diversify market presence. #TYM #KimHeeyong #AutonomousAgriculture #MarketExpansion
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TYM CEO and Chairman
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CEO & President of FILA Holdings Corp.
Yoon Keun-chang
- Yoon Geun-chang is the CEO of Fila Holdings. He shares responsibilities with his father, Yoon Yoon-soo, Chairman of Fila Holdings, and is primarily in charge of brand operations and other business affairs. He is actively seeking new brands that could become the "post-Fila" to drive the growth of the fashion business. Yoon was born in 1975 as the eldest son of Yoon Yoon-soo, Chairman of Fila Group. He graduated from the University of California with a degree in Computer Engineering. He pursued a master's degree in Computer Engineering at the Korea Advanced Institute of Science and Technology (KAIST) and completed an MBA program at the University of Rochester in the United States. Yoon began his career at Samsung Techwin, specializing in software technology. In 2007, when Fila Korea acquired its global headquarters, he joined Fila USA, which became a subsidiary, and took charge of business development, licensing, and sourcing. He served as the Chief Financial Officer (CFO) of Fila USA and later held positions at Fila Korea, including Head of Strategic Planning, Head of Footwear, Head of Business Management, and CFO. After being appointed CEO of Fila Korea, he led the group’s brand business. While concurrently serving as CEO of Fila Holdings, he stepped down as CEO of Fila Korea in 2022. As of 2025, he remains the CEO of Fila Holdings. #Fila #FilaHoldings #YoonGeunchang #fashionbusiness #brandmanagement #sportswear #businessleadership #CEO #FilaKorea #globalfashion
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CEO & President of FILA Holdings Corp.
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CEO of Samsung SDS
Lee June-hee
- Lee June-hee is the CEO and President of Samsung SDS. He is working to enhance the competitiveness of new businesses focused on cloud and digital logistics. He was born on March 30, 1969. He graduated from Seoul High School and Seoul National University with a degree in electronic engineering. He earned a master's degree and a Ph.D. in electrical and electronic engineering from the Massachusetts Institute of Technology. He worked as a researcher at the Awear Lab and the DMC Lab at Samsung Electronics. He served as the head of the Technology Strategy Team in the Wireless Business Division, the Development Team in the Network Business Division, and the Strategy Marketing Team. He was appointed CEO and President of Samsung SDS in 2024. As one of Samsung Group's leading IT and telecommunications technology experts, he played a key role in the commercialization of 5G. #LeeJunehee #SamsungSDS #cloud #digitallogistics #5G #MIT #technologyexpert #CEO #ITleader #electronics
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CEO of Samsung SDS
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CEO of Junjin Construction & Robot
Ko Hyun-guk
- Ko Hyun-guk is the CEO of Junjin Construction & Robot. He is expanding the organization and business with the goal of achieving the number one global market share. He was born in August 1959. He graduated from Kyung Hee University with a degree in mechanical engineering. He worked as the head of the overseas sales division at Hyundai Motor Company before moving to Motrex, where he served as head of the sales division. After Motrex acquired Junjin Heavy Industries and renamed it Junjin Construction & Robot, he was appointed CEO in 2021. He is deeply interested in developing smart construction robots. In particular, he views former U.S. President Trump’s Freedom City and infrastructure investment plans, as well as the reconstruction projects in Ukraine, as opportunities to strengthen the company's presence in the global market. #KoHyunguk #JunjinConstructionRobot #smartconstruction #robotics #infrastructure #globalmarket #FreedomCity #UkraineReconstruction #HyundaiMotor #Motrex
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CEO of Junjin Construction & Robot
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Chairman of TKG Taekwang
Park Joo-hwan
- Park Joo-hwan is the Chairman and CEO of TKG Taekwang. He is a second-generation owner and the son of the late Park Yeon-cha, former Chairman of Taekwang Industrial. Park Joo-hwan was born on September 21, 1983, as the youngest of one son and three daughters of the late Park Yeon-cha. He graduated from the Department of Economics at the University of Wisconsin in the United States. He joined Taekwang Industrial, serving as Head of the Planning and Coordination Office and Head of the Strategic Management Office. In 2020, following his father’s passing, he became CEO at the young age of 37. He demonstrates a swift decision-making approach and a bold management style. He is focused on responding to the poor performance of Nike, its largest client, and managing associated risks. #ParkJooHwan #TKGTaekwang #Taekwang #Nike #secondgenerationCEO #management #riskmanagement #economics #businessleadership #fastdecisionmaking
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Chairman of TKG Taekwang
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CEO of PNT
Kim Joon-sup
- Kim Joon-sup is the CEO of PNT(People & Technology). The company is striving to transition from a manufacturer of secondary battery equipment to a total solutions provider for secondary batteries. He was born on May 17, 1964, in Andong, North Gyeongsang Province. He graduated from Daegu Gyeongbuk Mechanical Technical High School and the Department of Mechanical Engineering at Kumoh National Institute of Technology. He joined Seotong Technology and worked as a design engineer. In 2003, he established PNT and localized the production of optical film and prism sheet coating equipment, as well as roll-to-roll technology, which previously relied on imports. He is focusing on building a secondary battery value chain that connects "PNT → PNT MS → PNT Materials." The company is expanding its business with the goal of achieving KRW 1 trillion (US$721.4 million) in sales by 2025. #KimJoonSup #PNT #secondarybattery #batterytechnology #businessgrowth #mechanicalengineering #localization #SouthKorea #valuechain #technologyinnovation
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CEO of PNT
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CEO of Korea Investment & Securities
Kim Sung-hwan
- Kim Sung-hwan is the President and CEO of Korea Investment & Securities. He is working to expand the organization and business with the goal of transforming the company into a global financial investment firm. He was born on November 21, 1969, in Seoul. He graduated from Dangkok High School in Seoul and majored in Economics at Korea University. He began his career at Kyobo Life Insurance. After working at LG Investment & Securities, he moved to Dongwon Securities and continued to work there even after Dongwon Securities was acquired by Korea Investment & Securities. He held various roles, including Head of the Project Finance Division, Group Head of the IB Division, Vice President of Strategic Planning, and Group Head of the Retail Client Division, before being appointed CEO in 2024. He is an investment banking (IB) expert who introduced asset-backed securities (ABS) and asset-backed commercial papers (ABCP) based on real estate project financing (PF) to the securities industry for the first time. #KimSungHwan #KoreaInvestment #securities #investmentbanking #CEO #globalfinance #realestatefinance #financialinnovation #ABS #leadership
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CEO of Korea Investment & Securities
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CEO of Hyundai Motor
José Muñoz
- José Muñoz is the President and CEO of Hyundai Motor Company. He is the first foreign CEO of Hyundai Motor. He holds Spanish nationality, and his full name is Muñoz Barceló José Antonio. He was born on June 15, 1965, in the United States. He earned a Ph.D. in Nuclear Engineering from Madrid Polytechnic University and completed an MBA program at IE Business School in Madrid. He worked as a dealer for Peugeot-Citroën in Spain. He served at Daewoo Motor Iberia, Toyota Europe Marketing Corporation, and later joined Nissan Europe Corporation. At Nissan, he worked as the head of the Mexico office, head of the North America office, head of the China office, and Chief Performance Officer (CPO). He simultaneously served as the Global Chief Operating Officer (COO) of Hyundai Motor Group and the head of the North America office, overseeing Hyundai Motor's sales in North America, and was appointed CEO in 2025. #JoséMuñoz #Hyundai #automotive #CEO #HyundaiMotor #globalbusiness #Spain #NorthAmerica #engineering #leadership
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CEO of Hyundai Motor
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Senior Vice Chairman of HD Hyndai
Chung Ki-sun
- Chung Ki-sun is the Senior Vice Chairman and CEO of HD Hyundai. He also serves as the CEO of HD Korea Shipbuilding & Offshore Engineering. He is focused on breaking away from HD Hyundai’s conservative image. He was born on May 3, 1982, in Seoul as the eldest son among two sons and two daughters of Chung Mong-joon, chairman of Hyundai Asan Social Welfare Foundation. He graduated from Daewon Foreign Language High School in Seoul, studied economics at Yonsei University, and completed an MBA program at Stanford University. After joining Hyundai Heavy Industries, he completed his studies in the United States and worked at the Korean branch of Boston Consulting Group (BCG). He rejoined Hyundai Heavy Industries, served as the head of the financial division and the general manager of the shipbuilding and offshore sales division, and became the CEO of Hyundai Global Service in 2017. He served as the head of Hyundai Heavy Industries' Shipbuilding & Offshore Business Division and became the CEO of HD Hyundai and HD Korea Shipbuilding & Offshore Engineering in 2022. As a third-generation leader of the founding family, his rapid promotion to the position of CEO at a young age has drawn attention to his organizational and business management style. #ChungKiSun #HDHyundai #KoreaShipbuilding #HyundaiHeavyIndustries #businessleadership #thirdgenerationmanagement #rapidpromotion #youngCEOs #globalbusiness #BCG
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Senior Vice Chairman of HD Hyndai
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Chairman of Samyoung
Lee Seok-jun
- Lee Seok-jun is the Chairman and CEO of Samyoung. He sees ultra-thin capacitor films for eco-friendly vehicles as a future growth engine and is making concentrated investments in this area. He was born on July 12, 1954, in Uiryeong, Gyeongnam, as the eldest son among two sons and four daughters of Lee Jong-hwan, the former honorary chairman of Samyoung. He graduated from the Seoul National University Affiliated High School and Sungkyunkwan University with a degree in Business Administration. He later completed an MBA program at Roosevelt University in the United States. He began his career at Hyundai Construction. He moved to Samyoung Chemical Industry, became CEO in 1994, and changed the company name to Samyoung. He is actively involved in social contribution activities and serves as the chairman of the Gwanjeong Lee Jong-hwan Educational Foundation. #LeeSeokjun #Samyoung #ecoFriendlyVehicles #ultrathinFilms #businessLeader #SungkyunkwanUniversity #RooseveltUniversity #HyundaiConstruction #socialContribution #educationFoundation
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Chairman of Samyoung
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President of Suhyup Bank
Shin Hak-gi
- Shin Hak-gi is the President of Suhyup Bank. He is focusing on strengthening digital competitiveness and non-banking sectors while ensuring adequate capital levels. He was born on January 20, 1968, in Changnyeong, Gyeongsangnam-do. He graduated from Yeongsan High School in Gyeongnam and Dong-A University, majoring in Trade. He joined the National Federation of Fisheries Cooperatives and worked as the Corporate Customer Strategy Team Leader in the Corporate Customer Department, Manager of the Ingye-dong Branch, Head of the Customer Support Department, and Head of the Risk Management Department. After Suhyup Bank was separated from the National Federation of Fisheries Cooperatives, he served as the Head of the Southern Regional Headquarters and later as the Senior Vice President of the Business Strategy Group at Suhyup Bank. In 2024, he was appointed as the President of Suhyup Bank. He is focused on acquiring non-banking financial companies to transition Suhyup Bank into a holding company. #SuhyupBank #ShinHakgi #KoreanFinance #BankPresident #FinancialStrategy #NonBanking #DigitalFinance #BankLeadership #Gyeongsangnamdo #KoreanBanks
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President of Suhyup Bank
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CEO of the E&C Group at Samsung C&T
Oh Se-chul
- Oh Se-chul is the President and CEO of the E&C Group at Samsung C&T. He is diversifying overseas construction contracts while focusing on fostering new businesses such as green hydrogen, modular construction, and smart cities. He was born on November 4, 1962, in Busan. He graduated from Haedong High School in Busan and earned a degree in architecture from Seoul National University. He completed a joint MBA program offered by Sungkyunkwan University and Indiana University in the United States. After joining Samsung C&T, he worked as a site manager in Malaysia, Singapore, and the United Arab Emirates. He served as the head of the Middle East Support Team, head of Global Procurement, head of Plant PM Headquarters, and head of the Plant Business Division before being appointed President and CEO of the E&C Group in 2021. In 2024, he became Chairman of the Management Committee of Samsung C&T. He is a regular member of the Construction and Environmental Engineering Division of the National Academy of Engineering of Korea. He is actively expanding urban redevelopment projects, focusing on the reconstruction of areas such as Hannam-dong, Yeouido, and Apgujeong-dong in Seoul. As the first CEO with a technical background since the merger with Cheil Industries, he emphasizes technological capabilities and values communication with on-site teams. #OhSechul #SamsungC&T #greenhydrogen #modularconstruction #smartcity #urbanredevelopment #constructionleadership #Busan #engineeringCEO #Samsung
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CEO of the E&C Group at Samsung C&T
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President and Head of Visual Display Business at Samsung Electronics' DX (Device eXperience) Division
Yong Seok-woo
- Yong Seok-woo is the President and Head of Visual Display Business at Samsung Electronics' DX (Device eXperience) Division. He is focusing on strengthening the connection between artificial intelligence and TVs, as well as expanding the TV product lineup. He was born on September 16, 1970. He graduated from Konkuk University with a degree in Electrical Engineering and earned a master's degree in Electronic Engineering from the Polytechnic Institute of New York University in the United States. He joined LG Industrial Systems and worked in the Circuit Design Team. After moving to Samsung Electronics, he held positions such as Head of TV Development Group, Head of Specialist Technology Group, Head of Panel Development Group, and Vice President of the Development Team in the Visual Display Business. In 2023, he was promoted to President. He is the first young president at Samsung Electronics born in the 1970s. As an expert in the TV business, he is striving to strengthen Samsung Electronics' position in the TV market. #YongSeokwoo #Samsung #VisualDisplay #DXDivision #TVmarket #KonkukUniversity #NewYorkPolytechnic #SamsungPresident #1970sLeadership #TVbusiness
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President and Head of Visual Display Business at Samsung Electronics' DX (Device eXperience) Division
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Chairman of GS Group
Huh Tae-soo
- Huh Tae-soo is the Chairman of GS Group. He also serves as the CEO of GS, the group's holding company. He is seeking future business opportunities for GS Group in areas such as climate change response, resource recycling, and bio industries. He was born on November 8, 1957, in Busan as the youngest of five sons of Huh Joon-goo, Honorary Chairman of LG Engineering & Construction. He graduated from Seoul Joongang High School and the Department of Law at Korea University. He also earned a Master’s degree in Business Administration from George Washington University in the United States. He worked at Continental Bank and Irving Bank before joining LG Investment & Securities, where he served as Executive Director of the IB Business Division and Executive Director of the Strategic Planning Division. He later moved to GS Home Shopping, where he became Executive Vice President overseeing management support and was appointed CEO in 2007. In 2019, he became Chairman of GS Group following the retirement of his older brother, former Chairman Huh Chang-soo. He values practicality and efficiency over formality and protocol, known for being down-to-earth and diligent. He emphasizes innovation through artificial intelligence technology and digital transformation. Through key executive appointments at major affiliates, he is laying the groundwork for the fourth-generation management of GS Group. #HuhTaeSoo #GSGroup #businessleadership #climatechange #resourcecirculation #bioindustry #digitaltransformation #artificialintelligence #futurebusiness #Koreanbusiness
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Chairman of GS Group
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CEO of Motonic
Kim Hee-jin
- Kim Hee-jin is the CEO and President of Motonic. She leads Motonic under a co-CEO system alongside CEO and President Shin Hyun-don. Born on March 11, 1989, she is the eldest daughter of Kim Young-bong, the former chairman of Motonic. After joining Motonic, she served as the Executive Director of Financial Management. She succeeded to the management position as CEO in 2024 due to her father’s illness. Kim Hee-jin is a third-generation leader of the Beom Dae-seong family. Her uncle, Vice Chairman Kim Young-mok, is the second-largest shareholder of Motonic. Motonic is a primary vendor for Hyundai Motor Company, manufacturing fuel systems, powertrains, and electronic components. More than 70% of its revenue depends on Hyundai Motor. #KimHeejin #Motonic #HyundaiMotor #CEO #thirdgenerationleader #automotiveindustry #powersystems #executivemanagement #SouthKorea #businessleadership
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CEO of Motonic
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Chairman of Pyunghwa Holdings
Kim Jong-suk
- Kim Jong-suk is the Chairman of Pyunghwa Holdings. He was born on February 22, 1953, in Sangju, Gyeongsangbuk-do, as the eldest son among five sons and one daughter of Kim Geon-gi, the former honorary chairman of Pyunghwa Industry. He graduated from Daegu High School and the Department of Metallurgical Engineering at Inha University. He joined Pyunghwa Industry and, after 10 years, became the CEO and President of the company in 1987. In 2006, he transformed Pyunghwa Industry into a holding company structure and has since served as the CEO and Chairman of the holding company, Pyunghwa Holdings. He has played a pivotal role in advancing Korea’s rubber industry by localizing automotive parts such as oil seals and O-rings. He is currently focusing on improving the company's financial structure through business restructuring as deficits continue. #KimJongSuk #PyunghwaHoldings #PyunghwaIndustry #automotiveparts #rubberindustry #oilseal #oring #financialrestructuring #Koreanbusiness #industryleadership
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Chairman of Pyunghwa Holdings
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President of the Catholic University of Korea
Choi Jun-gui
- Choi Jun-gui is the President of the Catholic University of Korea. He is transitioning the Catholic University of Korea into a research-oriented university. He was born on October 21, 1965. He graduated from Whimoon High School in Seoul and the School of Theology at the Catholic University of Korea. He obtained a master's degree in systematic theology from the graduate school of the Catholic University of Korea. In 1991, he was ordained as a priest and received a master's degree and a doctorate in educational administration from the Catholic University of America. He joined the Catholic University of Korea as a professor in the Department of Education and has served as the head of the University Development Promotion Team, Dean of the Special Graduate School, and Director of the Lifelong Education Center. In 2025, he was appointed as the president for a four-year term. He has been active as the President of the Korean Society for Religious Education and serves as the chaplain for the Catholic Professors’ Association of the Archdiocese of Seoul. #ChoiJungui #CatholicUniversityofKorea #universitypresident #systematictheology #educationadministration #Seoul #religiouseducation #universitydevelopment #Korea #highereducation
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President of the Catholic University of Korea
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Chairman of Celltrion Group
Seo Jung-jin
- Seo Jung-jin is the chairman of Celltrion Group. He is transforming Celltrion from a biosimilar (biopharmaceutical generic drug) company into a new drug developer. He was born on October 23, 1957, in Cheongju, Chungcheongbuk-do. He graduated from Jemulpo High School in Incheon and majored in Industrial Engineering at Konkuk University, where he also earned a master's degree from the Graduate School of Industry. He began his career at Samsung Electro-Mechanics. He later moved to the Korea Productivity Center, where he was responsible for consulting Daewoo Motors, eventually being selected as an advisor for planning and finance at Daewoo Motors. In 1999, he founded "Nexol," the predecessor of Celltrion. Although he stepped down from management as Celltrion Group shifted to a professional management system, he returned to lead the company. He aims to make the company a global pharmaceutical leader with KRW 10 trillion (US$ 7.2 billion) in revenue by 2030. When things do not go smoothly, he tackles problems hands-on to find solutions. He enjoys work to the extent that he considers business trips abroad a hobby. #SeoJungJin #CelltrionGroup #biosimilar #newdrugdevelopment #pharmaceutical #DaewooMotors #SamsungElectroMechanics #globalpharma #KoreanCEO #businessstrategy
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Chairman of Celltrion Group
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Vice Chairman of Yesco Holdings
Koo Bon-hyuck
- Koo Bon-hyuck is the Vice Chairman and CEO of Yesco Holdings. He was born on July 10, 1977, as the eldest son among one son and one daughter of Koo Ja-myung, Chairman of LS MnM. He graduated from Kyungbock High School in Seoul and the Department of International Business at Kookmin University. He completed an MBA program at the University of California, Los Angeles (UCLA). After joining LS Cable & System, he worked as the head of the LS Global LA branch and as a manager in the Business Strategy Team of LS Group. At LS MnM, he served as the head of the Management Support Division and the Business Division. He moved to Yesco Holdings, where he served as the head of the Future Business Division before being promoted to CEO in 2021. He transformed Yesco Holdings from a general holding company into an investment holding company. He became the first of the third generation of the LS family to be promoted to Vice Chairman. #KooBonhyuck #YescoHoldings #LSMnM #LSGroup #businessleadership #investmentholdings #UCLAMBA #KookminUniversity #KyungbockHighSchool #LSfamily
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Vice Chairman of Yesco Holdings
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President of KB Kookmin Bank
Lee Hwan-ju
- Lee Hwan-ju is the President of KB Kookmin Bank. He is working to prevent financial accidents by improving the operational system and management structure. At the same time, he is focusing on enhancing the group's value by expanding the global business, which is considered a weakness of KB Kookmin Bank. He was born in October 1964. He graduated from Sunrin Commercial High School in Seoul and the Department of Business Administration at Sungkyunkwan University. He completed an MBA program at the University of Helsinki in Finland. He began his career at Housing Bank and later worked at Kookmin Bank, serving as the Head of the Foreign Exchange Business Division, Executive Director for Personal Customers, and Deputy President of the Management Planning Group. After serving as the Vice President in charge of finance at KB Financial Group, he was appointed CEO of KB Life Insurance in 2022. He worked as the CEO of KB Life Insurance, which was formed through the merger of KB Life Insurance and Prudential Life Insurance, and was appointed President of KB Kookmin Bank in 2025. He is a financial expert who served as Chief Financial Officer at KB Kookmin Bank and KB Financial Group and values communication. #LeeHwanju #KBKookminBank #financialexpert #bankingindustry #KBLifeInsurance #KookminBank #KBFinancialGroup #globalbusiness #bankingleadership #careerpath
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President of KB Kookmin Bank
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CEO of Histeel
Um Jung-keun
- Um Jung-keun is the CEO of Histeel. He was born on February 11, 1951, in Seoul as the third son among four sons and one daughter of Um Chun-bo, Honorary Chairman of Hanil Steel. He graduated from Yongsan Technical High School in Seoul and the Department of Electronic Engineering at Kwangwoon University. He joined Hanil Steel, the predecessor of Histeel, as a section chief in the pipe management department. In 2003, when the pipe business division of Hanil Steel was spun off, he became the CEO of the newly established Histeel. He is active as the chairman of the Pipe Committee of the Korea Iron & Steel Association. He sees Hicolumn, a large rectangular steel pipe, and high-manganese steel pipes for cryogenic use as new growth drivers. He has a deep interest in art and actively pursues creative work as a photographer. #UmJungkeun #Histeel #HanilSteel #Koreanindustry #steelpipes #Hicolumn #highmanganesesteel #KoreaIronSteelAssociation #businessleadership #photography
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CEO of Histeel
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CEO of ST Pharm
Sung Moo-je
- Sung Moo-je is the President and CEO of ST Pharm. He was born on December 30, 1965. He graduated from Korea University's Department of Chemistry and earned a Master's degree in Organic Chemistry from Sogang University Graduate School. He obtained a Ph.D. in Organic Chemistry from the University of Alabama in the United States and completed a postdoctoral fellowship at Harvard University. He worked for over 20 years at Novartis, focusing on new drug development. He then moved to ST Pharm, a subsidiary of the Dong-A Socio Group, where he served as the Head of the Innovation Strategy Development Division before being appointed as President and CEO in 2024. He is committed to expanding active pharmaceutical ingredient contracts with global partner companies and strengthening drug development capabilities. #SungMooje #STPharm #pharmaceuticalindustry #organicchemistry #drugdevelopment #KoreaUniversity #HarvardUniversity #Novartis #CEO #biotechnology
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CEO of ST Pharm
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CEO of Hyundai E&C
Lee Han-woo
- Lee Han-woo is the Vice President and CEO of Hyundai Engineering & Construction (E&C). He is focused on improving profitability amid a downturn in the construction market. He was born on September 3, 1970, in Seoul. He graduated from Boseong High School in Seoul and earned a degree in architecture from Seoul National University. After joining Hyundai E&C, he worked as the Head of the Architectural Planning Office in the Architecture Business Division, the Head of the Architectural and Housing Support Office in the Housing Business Division, and the Head of the Strategic Planning Division. After serving as the Head of the Housing Business Division, he was promoted to Vice President in 2024 and appointed as CEO. Having been with Hyundai E&C for over 30 years, he is a housing business expert with strengths in strategy and planning. He is the first CEO born in the 1970s in Hyundai E&C’s history. #LeeHanWoo #HyundaiE&C #ConstructionMarket #Profitability #HousingBusiness #ArchitectureExpert #CorporateStrategy #SeoulNationalUniversity #SouthKoreaBusiness #Leadership
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CEO of Hyundai E&C
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Chairman of the Emergency Response Committee of PPP
Kwon Young-se
- Kwon Young-se is the Chairman of the Emergency Response Committee of the People Power Party. He is focused on stabilizing the party, which has been thrown into turmoil due to President Yoon Suk-yeol’s illegal declaration of martial law. He was born on February 24, 1959 (lunar calendar) in Seoul. He graduated from Paichai High School in Seoul and Seoul National University with a degree in law. He earned a master’s degree in law from Seoul National University Graduate School and a master’s degree in public administration from Harvard University’s Kennedy School of Government. After passing the 25th National Judicial Exam, he served as a prosecutor at the Suwon District Prosecutors’ Office and the Chuncheon District Prosecutors’ Office Gangneung Branch before working as an associate chief prosecutor at the Seoul District Prosecutors’ Office. In 2002, he ran as a candidate for the Grand National Party in the Yeongdeungpo District by-election and was elected, serving as a National Assembly member for the 16th to 18th sessions. In the 21st and 22nd general elections, he was elected as a representative for Yongsan District. During the 20th presidential election, he served as the head of the election campaign for Yoon Suk-yeol, the People Power Party’s candidate. He was appointed Vice Chairman of Yoon Suk-yeol's Presidential Transition Committee and later became the first Minister of Unification in the Yoon administration. Known for his moderate and cautious personality, he is considered one of the leading strategists in the conservative camp. #KwonYoungse #PeoplePowerParty #KoreanPolitics #YoonSukyeol #UnificationMinister #SouthKorea #ConservativePolitics #ElectionCampaign #Strategist #KoreanGovernment
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Chairman of the Emergency Response Committee of PPP
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CEO of Naver Corp.
Choi Soo-yeon
- Choi Soo-yeon is the CEO of Naver. She is focusing on integrating artificial intelligence (AI) into core businesses such as search, commerce, and content. She was born on November 3, 1981, in Gwangju Metropolitan City. She graduated from Gwangju Dongshin Girls’ High School and Seoul National University with a degree in Earth Environmental Systems Engineering. She also graduated from Yonsei University Law School and completed the LLM program at Harvard Law School. She passed the first bar exam in Korea, earning her lawyer qualification, and also holds a New York State bar license. She worked in the communication and marketing department at NHN and served as a corporate M&A and capital markets law specialist at Yulchon LLC. After rejoining Naver, she led the global business support division and was appointed CEO in 2022. #ChoiSooYeon #Naver #AIintegration #businessleadership #KoreanCEOs #HarvardLaw #YonseiLaw #technologybusiness #globalbusiness #corporateleadership
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CEO of Naver Corp.
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Speaker of the National Assembly
Woo Won-shik
- Woo Won-shik is the Speaker of the National Assembly of South Korea. As the head of the legislative branch, he faces the challenge of overcoming the December 3 martial law incident and the impeachment trial of President Yoon Suk-yeol, working to resolve national political uncertainties. He is also focused on restoring global trust through parliamentary diplomacy. Woo was born on September 18, 1957, in Seoul. He graduated from Kyungdong High School in Seoul and enrolled in the Civil Engineering Department at Yonsei University. While attending Yonsei University, he led protests against then-President Park Chung-hee, which led to his forced conscription. After returning to school, he participated in protests calling for the resignation of then-President Chun Doo-hwan, for which he was sentenced to three years in prison. Following forced conscription, imprisonment, and expulsion from university, he graduated 21 years after first enrolling. He entered politics by running as the Democratic Party candidate for Nowon-e in Seoul during the first local elections, winning a seat as a Seoul City Councilor. During the Participatory Government era, he ran as the Uri Party candidate for Nowon-e and entered the National Assembly. Although he lost in the following general election, he ran again and won. As the inaugural chairman of the Democratic Party's Euljiro Committee, he focused on resolving labor disputes and conflicts between business and labor groups. Under the Moon Jae-in administration, he served as the first floor leader of the Democratic Party of Korea. After winning the 22nd general election, he became a five-term lawmaker. In June 2024, he was elected Speaker of the National Assembly for the first half of the 22nd National Assembly. Woo gained attention for his careful and composed response as Speaker during the unprecedented situation of President Yoon Suk-yeol declaring martial law on December 3. Notably, he demonstrated leadership by pushing through a resolution to lift martial law just 155 minutes after it was declared, crossing the parliamentary fence to reach the main assembly hall. This leadership has elevated him as a potential presidential candidate. #WooWonShik #SouthKorea #NationalAssembly #MartialLaw #YonseiUniversity #DemocraticParty #ParliamentaryDiplomacy #SouthKoreaPolitics #SpeakerOfTheNationalAssembly #PresidentialCandidate
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Speaker of the National Assembly
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CEO of Korea Investment Corporation
Park Il-young
- Park Il-young is the President of Korea Investment Corporation (KIC). He faces the challenge of improving the returns on managed assets in an investment environment with increasing uncertainty. He was born on August 13, 1968, in Seoul. He graduated from Seoul Airport High School and Seoul National University with a degree in International Economics. He earned a Master’s degree in Public Policy from the Duke University Sanford School of Public Policy in the United States. He entered public service through the 36th Administrative Examination and held positions such as Director General of Development Finance, Director General of International Economic Affairs, and Deputy Minister for International Affairs at the Ministry of Economy and Finance. He has served as a Senior Advisor at the International Monetary Fund (IMF), an Economist, and an Executive Director at the World Bank. He is an international finance expert with extensive experience and a broad network in global organizations. #ParkIlYoung #KoreaInvestmentCorporation #Finance #Economy #InternationalFinance
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CEO of Korea Investment Corporation
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Chairman of Hanjin Group
Cho Won-tae
- Cho Won-tae is the chairman of Hanjin Group and also serves as the CEO of Korean Air. He is focusing on strengthening synergies between Korean Air and Asiana Airlines following their merger. Born on January 25, 1976, in Seoul, Cho is the eldest son of the late Cho Yang-ho, former chairman of Hanjin Group. He graduated from Marian High School in the United States and earned a degree in Business Administration from Inha University. He later obtained a Master's degree in Business Administration from the University of Southern California. After joining Hanjin Information & Communications, he moved to Korean Air, where he became a vice chairman just ten years after joining the company. He formally stepped into management when he was appointed as the CEO of Uniconverse, an IT subsidiary of Hanjin Group. In 2016, he became the CEO of Korean Air, and in 2019, he took office as chairman of Hanjin Group, marking the beginning of the third-generation leadership of the group. Though he faced challenges in a management dispute within the group, Cho demonstrated his strategic ability by turning the tide with the acquisition of Asiana Airlines. By completing the acquisition of Asiana Airlines, he opened the era of "mega carriers" (super-large airlines). Cho is transforming the traditionally conservative corporate culture of Korean Air into a more youthful and innovative one. He has shown an assertive management style and possesses deep knowledge of IT. #ChoWonTae #HanjinGroup #KoreanAir #AsianaAirlines #businessleader #mergersandacquisitions #thirdgenerationleadership #airlineindustry #ITknowledge #corporateculture
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Chairman of Hanjin Group
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Chairman of Korea Financial Investment Association
Seo Yoo-seok
- Seo Yoo-seok is the Chairman of the Korea Financial Investment Association. He was born on August 4, 1962, in Nonsan, Chungcheongnam-do. He graduated from Paichai High School in Seoul and the Department of Economics at Korea University. He earned a master's degree in Financial Management from the Graduate School of Business Administration at Korea University. He began his career at Daehan Investment Trust. He later moved to Mirae Asset Securities, where he served as head of the Retail Business Division and Retirement Pension Promotion Division. After serving as President of Mirae Asset Maps Asset Management and head of the ETF Division at Mirae Asset Asset Management, he was appointed CEO of Mirae Asset Asset Management in 2016. He is an alumnus of Korea University alongside Park Hyun-joo, Chairman of Mirae Asset Group, and has been involved with Mirae Asset Group since its early days, working with Chairman Park for over 20 years. #SeoYooSeok #KoreaFinancialInvestmentAssociation #finance #investment #MiraeAsset #DaehanInvestmentTrust #retirementpension #KoreaUniversity #ETFmanagement #leadership
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Chairman of Korea Financial Investment Association
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Chairman of Dasco
Han Sang-won
- Han Sang-won is the Chairman and CEO of Dasco. He was born on January 18, 1954, in Haenam, Jeollanam-do. He graduated from Gwangju Commercial High School and the Department of Business Administration at Chosun University. He also completed an MBA program at the Chosun University Graduate School of Business Administration. In 1983, he founded Dong-A Angle, a company specializing in prefabricated angles. He expanded his business by establishing Dong-A Industry and Dong-A Machinery (now Dasco) to produce guardrails. He further expanded into noise barriers, insulation materials, and deck plates. He acquired Hongin Academy, which operates Yeongsan Middle School and Yeongsan High School, and serves as its chairman. He is active as the Chairman of the Gwangju Chamber of Commerce and Industry. He views the solar power pre-assembled rebar (WBM) business as a new growth engine. #HanSangWon #Dasco #businessleader #SouthKorea #constructionindustry #solarenergy #guardrails #educationleadership #Gwangju #newgrowthengine
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Chairman of Dasco
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Chairman of Shinsegae Group
Chung Yong-jin
- Chung Yong-jin is the Chairman of Shinsegae Group. Among the two pillars of Shinsegae Group's business, Shinsegae and E-Mart, he is in charge of E-Mart. He leads businesses centered on large discount stores, including supermarkets, convenience stores, specialty stores, hotels, and complex shopping malls. He serves as the de facto leader of Shinsegae Group on behalf of his mother, Lee Myung-hee, who is the General Chairperson of Shinsegae Group. He was born as the eldest son of two siblings on September 19, 1968, to Chung Jae-eun, former honorary chairman of Shinsegae, and Lee Myung-hee, General Chairperson of Shinsegae Group. His younger sister is Chung Yoo-kyung, Chairman of Shinsegae. He graduated from the Department of Western History at Seoul National University and later from the Department of Economics at Brown University in the United States. He began his professional career at Fujitsu Korea. After joining Shinsegae as an assistant manager in the Strategy Planning Office, he served as Senior Manager in the Planning and Coordination Office, Vice President in the Management Support Office, and Vice Chairman before becoming CEO of Shinsegae in 2010. In 2011, he also assumed the role of CEO of E-Mart. As his sister, Chairman Chung Yoo-kyung, leads the department store and fashion business and pursues independence, he focuses on overseeing the process of business division within the group. He enjoys communicating with the public, especially through active engagement on social media, which often draws attention and sometimes controversy. #ChungYongjin #ShinsegaeGroup #EMart #retailindustry #Koreanbusiness #socialmedia #businessleadership #SouthKorea #departmentstores #groupmanagement
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Chairman of Shinsegae Group
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Chairman of Korea Investment Holdings
Kim Nam-goo
- Kim Nam-goo is the Chairman and CEO of Korea Investment Holdings. He is striving to grow Korea Investment Financial Group into a global investment banking (IB) company. He is also focused on managing internal risks within the group's subsidiaries. He was born on October 10, 1963, in Gangjin County, South Jeolla Province, as the eldest son of Kim Jae-chul, Chairman of Dongwon Group. He graduated from Kyungseong High School in Seoul and earned a degree in business administration from Korea University. He began his career at Dongwon Industries, a fisheries company. He obtained a master's degree in business administration from Keio University's Graduate School of Business in Japan and joined Dongwon Securities as an assistant manager. He advanced to roles such as manager of Dongwon Industries' planning department and managing director of Dongwon Securities, eventually taking the helm as the CEO and president of Dongwon Securities. After acquiring Korea Investment & Securities, he was appointed CEO and president of Korea Investment Holdings, later becoming vice chairman and then chairman. In his younger years, he gained practical experience from the ground up, even working on deep-sea fishing vessels, earning recognition as a second-generation owner with hands-on expertise. He is known for his strong drive and commitment to talent-centric management. #KimNamgoo #KoreaInvestmentHoldings #investmentbanking #businessleader #DongwonGroup #financeindustry #globalbusiness #riskmanagement #talentmanagement #leadership
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Chairman of Korea Investment Holdings
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CEO of DoubleU Games
Kim Ga-rham
- Kim Ga-rham is the CEO and President of DoubleU Games. Within a decade of its founding, he grew DoubleU Games into a KRW 1 trillion (US$ 721.6 million) market-cap gaming company with a single social casino game. Under the banner of "Beyond Social Casino," he is working to diversify game genres into areas such as iGaming and casual games. Born in 1978 in Chuncheon, Gangwon Province, he graduated from Gangwon Science High School and KAIST with a degree in electronic engineering. He worked as a researcher at Gaon-i and Sys & Code and served as the head of the business division at cloud technology company Innogrid. He founded "A Few Good Soft," the predecessor of DoubleU Games, and launched the social casino game "DoubleU Casino." DoubleU Casino gained immense popularity in North America and Europe, leading to the company’s successful listing on KOSDAQ. He acquired the global social casino gaming company DoubleDown Interactive (DDI) for KRW 1 trillion (US$ 721.6 million) and listed it on NASDAQ. He is known as a meticulous manager who directly oversees game development. #KimGarham #DoubleUGames #socialcasino #DoubleUCasino #gamingindustry #DoubleDownInteractive #NASDAQ #globalbusiness #gameindustryleader #BeyondSocialCasino
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CEO of DoubleU Games
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CEO of PI Advanced Materials
Song Geum-su
- Song Geum-su is the CEO of PI Advanced Materials. He is one of the founding members of PI Advanced Materials and became its first professional CEO. He was born in August 1968. He graduated from the Department of Business Administration at Sogang University. In 1993, he joined SKC and worked for 15 years, including as the leader of the film industry team in Frankfurt, Germany. In 2008, he joined as a founding member of SKC Kolon PI (now PI Advanced Materials), a joint venture between SKC and Kolon Industries. He subsequently served as sales team leader, head of the sales division, and head of the business division at SKC Kolon PI. He became CEO in March 2023 and began his term. PI Advanced Materials is the only manufacturer of polyimide (PI) film in South Korea. As of the end of 2023, it is the global leader in the PI film market with a 28.90% market share. Song Geum-su was recognized for his contribution to the localization of PI film materials in 2022 and was awarded the Minister of Trade, Industry, and Energy Award. He was credited with successfully entering the PI film industry, which had been dominated by companies in the United States and Japan, and enhancing the global competitiveness of related industries in South Korea. #SongGeumsu #PIAdvancedMaterials #polyimidefilm #SouthKorea #localization #globalmarketleader #industryleadership #CEO #PIfilm #manufacturing
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CEO of PI Advanced Materials
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CEO of Samsung Biologics
John Rim
- John Rim is the CEO and President of Samsung Biologics. He also serves as the Chairman of the Board of Directors. Born in October 1961 in South Korea, he later immigrated to the United States and holds U.S. citizenship. He graduated from Columbia University with a degree in chemical engineering. He earned a master's degree in chemical engineering from Stanford University and completed an MBA program at Northwestern University’s Kellogg School of Management. After working at the consulting firm Booz & Company, he served as Chief Financial Officer (CFO) of the U.S. subsidiary of the Japanese pharmaceutical company Yamanouchi. He also worked as the CFO of the American biotech company Genentech and the CFO of the U.S. subsidiary of the multinational pharmaceutical company Roche. He joined Samsung Biologics, serving as Vice President in charge of Plant 3 and later as Head of Process Operations. In 2021, he was appointed as CEO and President. He is focused on expanding the production capacity of biopharmaceuticals to position the company as the world's leading Contract Development and Manufacturing Organization (CDMO). #JohnRim #SamsungBiologics #biotechnology #chemicalengineering #CDMO #globalbusiness #pharmaceuticals #businessleadership #CEOprofile #biopharma
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CEO of Samsung Biologics
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Chairman of Hanwha Group
Kim Seung-yeon
- Kim Seung-yeon is the chairman of Hanwha Group. He is in the process of transferring management rights to his three sons, with the focus on his eldest son, Kim Dong-kwan, vice chairman of Hanwha Group. By acquiring Daewoo Shipbuilding & Marine Engineering, he has moved a step closer to realizing his dream of turning Hanwha Group into the "Lockheed Martin of Korea." He was born on February 7, 1952, in Cheonan, Chungcheongnam-do, as the eldest son among two sons and one daughter of Kim Jong-hee, the founder of Hanwha Group. He graduated from Seoul Gyeonggi High School, Shattuck St. Mary’s School in the United States, and the business administration department of Menlo College. He earned a master’s degree in international politics from DePaul University. In 1981, following the death of his father, he became chairman at the young age of 29. After being convicted of charges such as embezzlement, he stepped down from all positions as CEO of affiliated companies, while retaining the title of group chairman. In 2021, he officially returned to management after seven years, serving as a non-registered executive of Hanwha, Hanwha Solutions, and Hanwha Construction. He has served as vice president of the Korean Olympic Committee, president of the Korea Amateur Boxing Federation, president of Kyunghyang Shinmun, and chairman of the board at Sungkonghoe University. He upholds trust as his management philosophy and has established a unique corporate culture that values loyalty. #KimSeungyeon #HanwhaGroup #KoreanBusiness #DaewooShipbuilding #LockheedMartinKorea #CorporateCulture #KoreanBusinessHistory #ManagementPhilosophy #FamilyManagement #SouthKorea
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Chairman of Hanwha Group
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Governor of the Bank of Korea
Rhee Chang-yong
- Rhee Chang-yong is the Governor of the Bank of Korea. He is dedicating his full efforts to implementing optimal monetary policies aimed at stabilizing inflation while also helping the economy recover from sluggish growth amidst concerns over an economic downturn and an uncertain external environment. He was born on May 16, 1960, in Nonsan, Chungcheongnam-do. He graduated from Inchang High School in Seoul and the Department of Economics at Seoul National University. He earned a master’s and doctorate degree in economics from Harvard University in the United States. He served as an assistant professor in the Department of Economics at the University of Rochester in the United States and as a professor in the Department of Economics at Seoul National University. After participating in the Presidential Transition Committee during the Lee Myung-bak administration and designing the blueprint for financial policies, he held positions as Vice Chairman of the Financial Services Commission and Director-General of the Planning and Coordination Division of the Presidential Committee for the G20 Summit. He worked as the Chief Economist at the Asian Development Bank and later served as the Director of the Asia-Pacific Department at the International Monetary Fund (IMF). He was appointed Governor of the Bank of Korea just before the inauguration of the Yoon Suk-yeol administration in 2022. He is known for his expertise in both theory and practice and for his strong international network. He is also regarded as rational in handling tasks and well-regarded for his interpersonal relationships. #RheeChangyong #BankofKorea #KoreanEconomy #MonetaryPolicy #EconomicRecovery #IMF #HarvardEconomist #G20Summit #AsianDevelopmentBank #SouthKorea
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Governor of the Bank of Korea
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Chairman of Lotte Group
Shin Dong-bin
- Shin Dong-bin is the chairman of Lotte Group. He also serves as the CEO of Lotte Corporation, Lotte Chemical, Lotte Wellfood, and Lotte Chilsung Beverage. He is attempting to overcome the group’s crisis, which began with Lotte Chemical’s poor performance, through personnel renewal. He is focusing on establishing a stable governance structure by listing Hotel Lotte to resolve its relationship with Japanese Lotte, while also working to improve the group’s image tarnished by the management corruption of the founding family. He was born on February 14, 1955, in Tokyo, Japan, as the second son among two sons and two daughters of Shin Kyuk-ho, the founder of Lotte Group. He graduated from Aoyama Gakuin’s kindergarten, elementary school, middle school, and high school before earning his degree from Aoyama Gakuin University. He completed an MBA program at Columbia Business School in the United States. He worked at Nomura Securities in Japan before joining Lotte Corporation in Japan as a director. He joined Lotte Group in Korea as an executive director of Honam Petrochemical, the predecessor of Lotte Chemical. He served as vice president of the group’s Planning and Coordination Office and as head of the Policy Headquarters before becoming chairman in 2011 and later CEO of Lotte Holdings in Japan in 2015. He has also served as the president of the Korea Ski Association. He values humility and etiquette. He is quiet but demonstrates strong determination. #LotteGroup #ShinDongBin #LotteChemical #HotelLotte #CorporateGovernance #ColumbiaMBA #AoyamaGakuin #KoreaSkiAssociation #ManagementReform #JapaneseLotte
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Chairman of Lotte Group
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CEO of LigaChem Biosciences
Kim Yong-zu
- Kim Yong-zu is the CEO of LigaChem Biosciences. He was born on May 17, 1956, in Daejeon. He graduated from Daejeon High School and the Department of Chemistry at Seoul National University. He earned a master’s degree and a doctorate in organic chemistry from the Korea Advanced Institute of Science and Technology (KAIST). After serving as the director of the LG Chem Technology Research Institute, he worked as the head of the U.S. branch of LG Life Sciences and as the director of the New Drug Research Institute at the Technology Research Institute. In 2006, he founded LegoChem Biosciences (now LigaChem Biosciences), which focuses on pharmaceutical research and development. He transferred the position of the largest shareholder to Orion Group and is currently leading the company as the second-largest shareholder. He has focused on the field of Antibody-Drug Conjugates (ADC), a targeted cancer therapy, and aims to establish the company as a new drug development enterprise that conducts its own clinical trials. #KimYongzu #LigaChemBiosciences #biotechnology #pharmaceuticals #organicchemistry #newdrugdevelopment #antibodydrugconjugates #cancertherapy #OrionGroup #biopharma
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CEO of LigaChem Biosciences
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Chairman of Woori Financial Group
Yim Jong-ryong
- Yim Jong-ryong is the Chairman and CEO of Woori Financial Group. He is working to restore customer trust damaged by financial incidents within Woori Financial Group and is strengthening the group's non-banking portfolio. He was born on August 3, 1959, in Boseong, South Jeolla Province. He graduated from Youngdong High School in Seoul and earned a degree in Economics from Yonsei University. He pursued a master's program in Public Administration at Seoul National University's Graduate School of Public Administration and obtained a master's degree in Economics from Oregon State University. He entered public service by passing the 24th Administrative Examination. He served in various roles at the Ministry of Finance and Economy, including as Director of the Banking System Division, Securities System Division, Comprehensive Policy Division, and Financial Policy Bureau, and worked as an Economic Secretary in the Presidential Office. After serving as the first Vice Minister of the Ministry of Strategy and Finance, he concluded his public service career as Chief Secretary of the Prime Minister's Office. He returned to public service as Chairman of NH NongHyup Financial Group and later as Chairman of the Financial Services Commission. He also served as a Special Professor at Yonsei University's Graduate School of Economics and as an Advisor at Yulchon LLC before being appointed Chairman of Woori Financial Group in 2023. He is known for his outstanding mediation skills, earning him the nickname "Zhuge Liang of Finance." #YimJongryong #WooriFinancialGroup #finance #SouthKorea #economicpolicy #publicservice #nonbankingportfolio #customertrust #NHNongHyup #financialleadership
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Chairman of Woori Financial Group
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Chairman of Novarex
Kwon Seok-hyung
- Kwon Seok-hyung is the Chairman and CEO of Novarex. In response to the slowdown in the domestic health functional food market, he is focusing on expanding exports overseas while concentrating on securing individually recognized ingredients. He was born on March 15, 1955, in Bonghwa-gun, Gyeongsangbuk-do. He graduated from Jungdong High School in Seoul and earned his undergraduate degree in pharmacy from Chung-Ang University. He also obtained both his master’s and doctoral degrees in pharmacy from Chung-Ang University Graduate School. He began his career at Chong Kun Dang Pharmaceutical and later worked at Sam-A Pharm and Dongbang Pharm. After serving as Managing Director of Korea Pharma, he was appointed CEO of RexGene Biotech in 1997. In 2008, he established Health Science, a health functional food company (now Novarex), and later merged it with RexGene Biotech. He served as Chairman of the Korea Health Functional Food Association. He is focusing on expanding the core health functional food business rather than diversifying into other areas. #KwonSeokHyung #Novarex #HealthFunctionalFood #ExportStrategy #PharmacyGraduate #KoreaPharma #RexGeneBiotech #HealthScience #KHFA #BusinessExpansion
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Chairman of Novarex
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Chairman of Hana Financial Group
Ham Young-joo
- Ham Young-joo is the CEO and Chairman of Hana Financial Group. He is dedicated to enhancing shareholder returns and improving corporate value. By strengthening non-banking affiliates, he is working to expand global operations with the goal of becoming Asia’s leading financial group. He was born on November 10, 1956, in Buyeo, South Chungcheong Province. He graduated from Kanggyung Commercial High School in South Chungcheong Province and joined Seoul Bank as a high school graduate. While working, he earned a degree in Accounting from Dankook University. After Seoul Bank was merged with Hana Bank, he held positions including Head of the Southern Regional Headquarters, Head of the South Chungcheong and North Chungcheong Regional Headquarters, Head of the Daejeon Sales Headquarters, and Head of the Chungcheong Business Headquarters. In 2015, he was appointed CEO of KEB Hana Bank, the merged entity of Hana Bank and Korea Exchange Bank. He served as Vice Chairman of Hana Financial Group before being appointed CEO and Chairman of Hana Financial Group in 2022. Ham has consistently achieved excellent results in sales based on his diligence. Known for his inclusive leadership style, he is described as approachable and personable. #HamYoungjoo #HanaFinancialGroup #Asiafinancialleader #corporategovernance #bankingindustry #shareholderreturns #globalbusiness #corporatevalue #financialmanagement #leadership
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Chairman of Hana Financial Group
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Chairman of LG Group
Koo Kwang-mo
- Koo Kwang-mo is the Chairman of LG Group. He also serves as the CEO of LG, the holding company of LG Group. He prioritizes customers to the extent of referring to employees as "customer value creators." He was born on January 23, 1978, in Seoul, as the eldest son of Koo Bon-neung, Chairman of Heesung Group, and the younger brother of the late Koo Bon-moo, former Chairman of LG Group. In 2004, he was adopted by the late Koo Bon-moo. He graduated from Yeongdong High School in Seoul and the Department of Computer Science at the Rochester Institute of Technology in the United States. He also studied in the MBA program at Stanford University Graduate School of Business. He worked at LG Electronics before moving to a startup. After returning to LG Electronics, he served as Managing Director of LG Synergy Team and Head of the Information Display (ID) Business Division in LG Electronics' B2B Business Division. In 2018, he became CEO and Chairman of LG. He emphasizes execution and values both internal growth and collaboration with external partners. He is known for his modesty, humility, and practical thinking. #KooKwangmo #LGGroup #LGChairman #businessleadership #customerfocus #globalbusiness #Koreanbusiness #pragmatism #businessgrowth #LGElectronics
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Chairman of LG Group
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CEO of LVMC Holdings
Oh Sei-young
- Oh Sei-young is the CEO of LVMC Holdings and also serves as the chairman of Kolao Group, the largest private company in Laos. Through LVMC Holdings, the parent company of Kolao Group, he conducts business in Vietnam, Myanmar, and Cambodia, with Laos as the main hub. He was born on April 24, 1963, in Mukho, Donghae City, Gangwon Province. He graduated from Sungkyunkwan University with a degree in textile engineering. After working at Kolon Corporation, he founded Turbo Trading in Vietnam in 1990 and engaged in garment and automobile trade businesses. In 1997, he established Kolao Developing in Laos, assembling and selling automobiles while expanding his business into finance and logistics. He has been active as the chairman of the World Korean Business Convention and the president of the Korean Business Association in Laos. He renamed the company from Kolao to LVMC, derived from the initials of Laos, Vietnam, Myanmar, and Cambodia, actively targeting the ASEAN market. He is nicknamed the "Car King of Laos" and the "Chung Ju-yung of Laos." #OhSeiyoung #LVMC #KolaoGroup #Laos #ASEAN #automotive #finance #logistics #KoreanBusinessLeader #textileengineering
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CEO of LVMC Holdings
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Chairman of Shinhan Financial Group
Jin Ok-dong
- Jin Ok-dong is the CEO and Chairman of Shinhan Financial Group. He is strengthening the position of Shinhan Financial Group as a leading domestic financial holding company by pursuing management efficiency, digital transformation, and global business expansion. As he reached the midpoint of his term, he carried out a high-intensity personnel reshuffle to improve the organizational structure. He was born on February 21, 1961, in Imsil, Jeollabuk-do. He graduated from Seoul Deoksu Commercial High School and studied Business Administration at Korea National Open University. He earned a master's degree in Business Administration from Chung-Ang University Graduate School. He began his career at the Industrial Bank of Korea. He then moved to Shinhan Bank, where he served as Deputy Manager in the Credit Review Department and Team Leader in the Treasury Department. While serving as the branch manager of the Osaka Branch in Japan, he led the launch of SBJ Bank, Shinhan Bank's Japanese subsidiary, and later served as Vice President and President of SBJ Bank. He held positions such as Vice President in charge of Shinhan Bank's Management Support Group, Vice President of Shinhan Financial Group's Operations Division, and President of Shinhan Bank before being appointed CEO and Chairman of Shinhan Financial Group in 2023. He is known for his gentle and unpretentious personality. He values horizontal communication and leads by example. #JinOkdong #ShinhanFinancialGroup #CEO #banking #digitaltransformation #globalbusiness #financialgroup #SBJBank #managementefficiency #leadership
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Chairman of Shinhan Financial Group
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Chairman of Hyundai Motor Group
Chung Eui-sun
- Chung Eui-sun is the Chairman of Hyundai Motor Group. He is focused on transforming Hyundai Motor Group into a smart mobility solution provider that offers comprehensive services related to transportation, such as urban air mobility (UAM) and autonomous driving. He was born on October 18, 1970, in Seoul, as the eldest son among one son and three daughters of Chung Mong-koo, Honorary Chairman of Hyundai Motor Group. He graduated from Goojung Middle School and Whimoon High School in Seoul, and earned a degree in Business Administration from Korea University. After joining Hyundai Precision & Industries (now Hyundai Mobis) as a manager, he pursued further studies in the United States and obtained an MBA from the University of San Francisco. He worked at Itochu Corporation’s New York branch before joining Hyundai Motor Company as a purchasing manager. He served as Deputy Head of the Domestic Sales Division at Hyundai Motor, as well as Deputy Head of the Planning Headquarters for Hyundai and Kia Motors, before becoming the CEO of Kia Motors in 2005. After serving as Vice Chairman of Hyundai Motor, he was inaugurated as Chairman of Hyundai Motor Group in 2020. During his tenure as Kia’s CEO, he led the company’s "design management" strategy and brought a new wave of innovation to Hyundai Motor by actively recruiting international executives. He is known for being modest and humble and is praised for his open communication with employees. #ChungEuisun #HyundaiMotorGroup #SmartMobility #UrbanAirMobility #AutonomousDriving #KiaMotors #DesignManagement #BusinessLeadership #KoreanBusiness #HyundaiMobilityTransformation
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Chairman of Hyundai Motor Group
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President of Kyungpook National University
Heo Young-woo
- Heo Young-woo is the President of Kyungpook National University. He was born in 1968. He graduated from Kyungpook National University with a degree in Inorganic Materials Engineering and earned a master’s degree in the same field at Kyungpook National University Graduate School. After working at LG Chem’s Advanced Materials Research Institute, he obtained a Ph.D. in Materials Engineering from the University of Florida in the United States. He joined Kyungpook National University as a professor in the Department of Advanced Materials Science and Engineering, serving as Dean of the College of Engineering, Dean of the Graduate School of Industry, and Director of the Advanced Materials Research Institute. He was appointed President of Kyungpook National University in 2024. Heo has also served as the Chairman of the Transparent Oxide Semiconductor Research Society, Vice President of the Korean Vacuum Society, Vice President of the Korean Association of Engineering Colleges, and Vice President of the Korean Sensor Society. He is dedicated to restoring Kyungpook National University’s weakened reputation and establishing a foundation for sustainable growth. #HeoYoungwoo #KyungpookNationalUniversity #President #AdvancedMaterials #InorganicMaterials #EngineeringLeadership #SustainableGrowth #KoreanEducation #UniversityLeadership #AcademicInnovation
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President of Kyungpook National University
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Chairman of KB Financial Group
Yang Jong-hee
- Yang Jong-hee is the CEO and Chairman of KB Financial Group. He is focusing on strengthening a stable portfolio of banking and non-banking sectors to respond to increasingly uncertain external management environments. He was born on June 10, 1961, in Jeonju. He graduated from Jeonju High School and earned a degree in Korean History from Seoul National University. He completed a master's program at Sogang University Graduate School of Business Administration. He joined Housing Bank, served as the branch manager of KB Kookmin Bank's Seocho Station branch, and worked at KB Financial Group as the head of the Board Secretariat, head of the Strategic Planning Department, and executive director in charge of strategic planning. He was promoted to Vice President after leading practical operations related to the acquisition of LIG Insurance (now KB Insurance). In 2016, he was appointed President and CEO of KB Insurance. After serving as Vice Chairman of KB Financial Group, he was appointed Chairman of KB Financial Group in 2023. He is known for his expertise in finance and strategy. #YangJonghee #KBFinancialGroup #CEO #Chairman #FinanceStrategy #Banking #NonBanking #InsuranceAcquisition #KoreanHistory #BusinessLeadership
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Chairman of KB Financial Group
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Chairman of SK Group and KCCI
Chey Tae-won
- Chey Tae-won is the Chairman of SK Group and also serves as the Chairman of the Korea Chamber of Commerce and Industry (KCCI). He was born on December 3, 1960, in Suwon, Gyeonggi Province, as the eldest son of Chey Jong-hyun, the former chairman of Sunkyung Group. He graduated from Shinil High School in Seoul, the Department of Physics at Korea University, and the Department of Economics at the University of Chicago in the United States. He completed an integrated master's and doctoral program in economics at the University of Chicago Graduate School. Chey joined SK Trading as a department head, later serving as a director of SK America and as an executive director of SK Trading before becoming CEO of SK in 1997. In 1998, he was promoted to Chairman and CEO of SK, also taking on the roles of CEO at SK Innovation and SK Hynix. He has identified semiconductors and artificial intelligence (AI) as the group's future growth engines and has made significant investments in these areas. As the group faced the proliferation of affiliates and increased total debt, he pursued business restructuring (rebalancing) by divesting non-core affiliates. He is undergoing divorce and property division proceedings with his wife, Noh So-young, the director of Art Center Nabi. Chey is known for his large build and natural athleticism. Beyond enjoying sports personally, he actively supports sports teams at the group level. #CheyTaeWon #SKGroup #KCCI #semiconductor #AIinvestment #businessrestructuring #sportsmanagement #divorceproceedings #economiceducation #corporateleadership
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Chairman of SK Group and KCCI
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Chairman of Guyoung Tech
Lee Hee-hwa
- Lee Hee-hwa is the Chairman and CEO of Guyoung Tech. He was born on July 25, 1954, in Yeongyang, Gyeongsangbuk-do. He graduated from Pohang Technical High School. He began his career at Hyundai Motor Company. After working as the production management manager at Myungshin Industry, he founded Mikwang Industry (now Guyoung Tech), an auto parts company, in 1986. As the automotive industry undergoes significant changes focusing on hybrid and electric vehicles, he is expanding the eco-friendly auto parts business. He aims to transform Guyoung Tech into a specialized mobility parts company and is focusing on expanding exports overseas. #LeeHeeHwa #GuyoungTech #automotiveparts #hybridvehicles #electricvehicles #mobility #Koreanentrepreneur #ecoFriendlybusiness #exportexpansion
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Chairman of Guyoung Tech
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Chairman of PharmaResearch
Jung Sang-soo
- Jung Sang-soo is the Chairman of the Board of Directors at PharmaResearch. He is actively expanding the European market entry of the medical device Rejuran and pursuing a domestic botulinum toxin business. He was born on April 25, 1958, in Gangneung, Gangwon Province. He graduated from Gangneung High School and the College of Pharmacy at Chung-Ang University. At Daewoong Pharmaceutical, he served as the head of the development team and handled global pharmaceutical licensing. In 1993, he founded PharmaResearch Products (currently PharmaResearch) and began a consulting business for product licensing and development. The company grew rapidly with the launch of the wrinkle improvement medical device Rejuran. After acquiring the filler business division of Estra, a subsidiary of Amorepacific Group, he established PharmaResearch Bio. In 2020, he stepped down as CEO, transitioning PharmaResearch to a professional management system, and assumed the role of Chairman of the Board. #JungSangSoo #PharmaResearch #Rejuran #BotulinumToxin #KoreanPharmaceuticals #Gangneung #MedicalDevice #ChungAngUniversity #Estra #ProfessionalManagement
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Chairman of PharmaResearch
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Chairman of Samsung Electronics
Lee Jae-yong
- Lee Jae-yong is the chairman of Samsung Electronics. As the third-generation leader of the Samsung conglomerate, he oversees the management of the group, succeeding former chairman Lee Kun-hee. He is focusing his efforts on reviving the struggling semiconductor sector while prioritizing the development of four major new business areas identified as future growth drivers: automotive electronic components, robotics, healthcare, and eco-friendly air conditioning systems. Born on June 23, 1968, in Seoul, he is the eldest son among one son and three daughters of the late chairman Lee Kun-hee. He graduated from Kyungbock High School in Seoul and majored in Oriental History at Seoul National University. He obtained a master’s degree in business administration from Keio University in Japan and completed a doctoral program in business administration at Harvard Business School in the United States. Lee joined Samsung Electronics as a manager in the General Affairs Group. He climbed through the ranks, holding positions such as executive director in charge of management strategy, chief operating officer (COO) and vice president, president, and vice chairman. After Lee Kun-hee suffered an acute myocardial infarction and was hospitalized, Lee Jae-yong effectively led the Samsung Group as vice chairman. He formally inherited leadership following his father’s passing. He served a prison sentence for his involvement in the Park Geun-hye-Choi Soon-sil corruption scandal but was released on parole. In August 2022, he was reinstated through a special Liberation Day pardon and became chairman of Samsung Electronics in October of the same year. Lee is also involved in a separate trial concerning accounting fraud allegations related to Samsung BioLogics during the merger between Samsung C&T and Cheil Industries. Known for his practical and rational decision-making, he is regarded as approachable, with strong interpersonal and communication skills. #Samsung #LeeJaeYong #SamsungElectronics #Semiconductor #NewBusiness #Leadership #Korea #CorporateManagement #Technology #Innovation
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Chairman of Samsung Electronics
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Chairman of Shinsung Tongsang
Yeom Tae-soon
- Yeom Tae-soon is the Chairman and CEO of Shinsung Tongsang. He is focusing on growing Shinsung Tongsang's flagship brand, TOPTEN10, into a global clothing brand. He was born on April 24, 1953, in Seoul. He graduated from Kyungdong High School and studied Political Science and Diplomacy at Sogang University. In 1983, he founded Ganaan, exporting bags. He established Asian Fashion, expanding his business into clothing sales. In 2002, he acquired Shinsung Tongsang, a former affiliate of the Daewoo Group, marking the beginning of significant business expansion. He believes that "clothing should be seen in stores first," and has focused more on the offline market than online. He has a strong interest in developing clothing materials. #YeomTaeSoon #ShinsungTongsang #TOPTEN10 #fashionindustry #businessleadership #offlinefocus #clothingmaterials #globalbrand #DaewooGroup #SogangUniversity
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Chairman of Shinsung Tongsang
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CEO of Gaonchips
Jung Kyu-dong
- Jung Kyu-dong is the CEO of Gaonchips. He was born on July 11, 1973. He graduated from Pusan National University with a degree in Electrical Engineering. He worked as a semiconductor layout researcher at Samsung Electronics and Finesemiconductor. He moved to AlphaChips, a design house, where he was responsible for sales. In 2012, he founded Gaonchips. He practices talent management, focusing on building the company around its people. He views artificial intelligence (AI) semiconductors as a new growth engine and is actively engaged in research and development as well as expanding orders. #JungKyudong #Gaonchips #semiconductor #AI #talentmanagement #PusanNationalUniversity #SamsungElectronics #startup #researchanddevelopment #growthengine
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CEO of Gaonchips
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CEO of Handsome
Kim Min-duk
- Kim Min-duk is the CEO and President of Handsome. He was born in June 1967. He graduated from Hanyang University with a degree in Business Administration. He joined Hyundai Department Store and worked as an Executive Vice President in charge of business strategy at the Planning and Coordination Division. After transferring to Handsome, he served as the head of the Management Division and the Sales Division, then as the Executive Vice President in charge of management at the Business Support Division. In 2020, he was appointed CEO. As a financial expert within the Hyundai Department Store Group, he has drawn attention for how he maintains Handsome's fashion DNA after being acquired by a retail company. He has been strengthening the company's portfolio by discovering overseas brands and expanding business areas beyond the fashion industry to cosmetics and food and beverages (F&B). #KimMinDuk #Handsome #HyundaiDepartmentStore #BusinessLeader #FashionIndustry #Cosmetics #FNB #PortfolioExpansion #CEO #SouthKorea
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CEO of Handsome
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President of Pusan National University
Choi Jae-weon
- Choi Jae-weon is the President of Pusan National University. He was born in 1965. He graduated from Dongseong High School in Busan and earned his bachelor's degree in Control and Instrumentation Engineering from Seoul National University. He also obtained his master’s and doctorate degrees in Control and Instrumentation Engineering from Seoul National University Graduate School. He was appointed as a professor in the Department of Mechanical Engineering at Pusan National University. He served as Director of Planning, Director of the Mechanical Technology Research Institute, Director of the Center for Engineering Education Innovation, and Director of the Accreditation Institute for Engineering Education. He later held positions as Dean of the College of Engineering, Dean of the Graduate School of Industry, Dean of the Graduate School of Environment, and Dean of the Graduate School of Technology Entrepreneurship before being appointed President in 2024. He has also served as Director of the Engineering Education Innovation Leadership Center for the Ministry of Trade, Industry and Energy, an Independent Evaluator for the Ministry of Education, President of the Institute of Control, Robotics, and Systems, and President of the Council of Deans of National Engineering Colleges. He is a regular member of the National Academy of Engineering of Korea and serves as Co-Executive Director of the Busan Science and Technology Council. He is particularly focused on establishing a veterinary college and integrating Pusan National University with Busan National University of Education. #ChoiJaeWeon #PusanNationalUniversity #engineeringeducation #universityleadership #Koreanacademia #veterinaryschool #universityintegration #engineeringinnovation #Busan #academicleadership
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President of Pusan National University
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CEO of Daewoong Pharmaceutical
Park Seong-soo
- Park Seong-soo is the CEO and President of Daewoong Pharmaceutical. He shares the co-CEO role with Lee Chang-jae, focusing on overseas business and research and development. He also serves as CEO of Daewoong Pharmaceutical affiliates, Aficel Therapeutics and Daewoong Investment. He was born in February 1976. He graduated from Cheongju Shinhung High School in Chungcheongnam-do and earned a degree in pharmacy from Seoul National University. He also received a master’s degree in medicinal chemistry from Seoul National University Graduate School. After joining Daewoong Pharmaceutical, he worked as the head of the U.S. branch and as head of the Nabota Business Division. He was promoted to vice president and then appointed as CEO in 2024. He has played a leading role in the Nabota business, which has become one of Daewoong Pharmaceutical’s core operations. He has outlined a vision to achieve KRW 1 trillion (US$ 721.5 million) in revenue from each of Daewoong Pharmaceutical’s three flagship innovative drugs, aiming to usher in an era of KRW 1 trillion (US$ 721.5 million) in operating profit. #ParkSeongSoo #DaewoongPharmaceutical #Nabota #innovativemedicine #globalbusiness #R&D #pharmaceuticalindustry #CEO #operatingprofit #SeoulNationalUniversity
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CEO of Daewoong Pharmaceutical
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Chairman of HS Hwasung
Lee Jong-won
- Lee Jong-won is the Chairman and CEO of HS Hwasung. He was born on September 8, 1972, in Daegu as the eldest of three children of Lee In-jung, Honorary Chairman of HS Hwasung. He graduated from Gyeongbuk High School in Daegu and the Department of French Language and Literature at Kyungpook National University. He completed his MBA at the University of Wisconsin School of Business. As a third-generation owner-manager, he joined Hwasung Industrial (currently HS Hwasung) and became CEO and President in 2019. He had a serious management dispute with his two uncles but eventually reconciled. He is expanding business beyond the Daegu-Gyeongbuk region into Seoul and the capital area, while also focusing on environmental and international business projects. He is the second-largest shareholder of KCGI Asset Management and shows significant interest in financial investments. #LeeJongwon #HSHwasung #KCGIAssetManagement #SouthKorea #CEO #MBA #businessmanagement #familybusiness #environmentalbusiness #globalexpansion
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Chairman of HS Hwasung
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CEO of Philoptics
Han Ki-su
- Han Ki-su is the CEO of Philoptics. He is focused on diversifying the company’s business beyond OLED display processing equipment to include secondary battery processing equipment and semiconductor processing equipment. Han was born on May 23, 1969. He graduated from Hanyang University with a degree in physics and worked at Samsung SDI for 10 years. In 2008, he founded Philoptics and entered the OLED display processing equipment manufacturing industry. Han successfully localized the photolithography machines (equipment that uses light to create circuits during manufacturing processes), which were previously dependent on imports. He is regarded as an entrepreneur with a strong pioneering spirit, leaving a stable job to achieve success in his startup venture. #HanKisu #Philoptics #OLED #DisplayEquipment #Semiconductor #BatteryTechnology #SamsungSDI #Entrepreneurship #KoreanInnovation #LocalizedTechnology
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CEO of Philoptics
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Chairman of Kakao Management Innovation Committee
Kim Beom-soo
- Kim Beom-soo is the Chairman of Kakao Management Innovation Committee. He is currently on trial without detention on charges of stock manipulation related to SM Entertainment. Born on March 8, 1966, in Damyang, Jeollanam-do, he is the eldest son in a family of two sons and three daughters. He graduated from Konkuk University High School and earned a bachelor's degree in industrial engineering from Seoul National University, where he also completed a master's degree in the same field. After working at Samsung SDS, he founded the gaming company Hangame in 1999. Hangame merged with Naver Corporation to form NHN, where he served as co-CEO. However, after a disagreement with Lee Hae-jin, Naver's Global Investment Officer (GIO), he left the company and moved to the United States. Upon returning to Korea to pursue mobile ventures, he launched the mobile messenger KakaoTalk. He later merged Kakao with Daum Communications and rebranded the company as Kakao. After stepping down as CEO, he focused on overseas business development as the head of the Future Initiative Center. However, he returned to management during a company crisis. Known for his bold and down-to-earth personality, Kim has a gambler's instinct and makes quick, decisive choices. #KimBeomsoo #KakaoTalk #Kakao #DaumKakao #Hangame #Naver #SMEntertainment #Entrepreneurship #StartupSupport #MobileMessenger
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Chairman of Kakao Management Innovation Committee
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Chairman of Daechang Forging
Park An-sik
- Park An-sik is the chairman of Daechang Forging. He also serves as an internal director at subsidiaries such as DCF TREK, Bongnim Metal, and TREK INC. As a second-generation owner, he leads the management of Daechang Forging, a company specializing in construction machinery components. He was born on April 29, 1940, in Busan. He graduated from Busan Commercial High School (currently Gaesung High School) and Yonsei University’s College of Liberal Arts and Sciences. In 1966, he became the president of Daechang Crank Forging Industrial (now Daechang Forging) and served as the CEO of Daechang Forging from 1981 to 1997. In 1997, he was appointed chairman of Daechang Forging. Park An-sik is recognized as a business leader who has grown Daechang Forging into a leading forging company and a prominent enterprise in Korea. He has consistently emphasized the importance of the forging industry as a core sector and has dedicated his career solely to forging. #ParkAnSik #DaechangForging #DCFtrek #forgingindustry #constructionmachinery #Koreanbusiness #industryleader #Busan #YonseiUniversity #BongnimMetal
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Chairman of Daechang Forging
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President of the University of Seoul
Won Yong-kul
- Won Yong-kul is the president of the University of Seoul. As a macroeconomist, he is dedicated to enhancing the status of public universities, including his commitment to establishing a public medical school. He was born on June 7, 1963, in Suwon, Gyeonggi Province. Won graduated from Suseong High School in Suwon and majored in economics at Seoul National University. He earned a master’s degree in economics from Seoul National University’s graduate school and a Ph.D. in economics from Indiana University in the United States. After working at the Bank of Korea, he served as a senior researcher at the Korea Institute for International Economic Policy (KIEP) before being appointed as a professor at Incheon National University in 1998. In 2002, he moved to the University of Seoul, where he served as the Dean of the College of Urban Sciences and Director of the Institute for Social Science Research. On March 30, 2023, he was inaugurated as the 10th president of the University of Seoul. Won has held leadership roles such as president of the Korean Association of International Finance and vice president of the Korean Association of International Trade and Commerce. He currently serves as the president of the Korean Association of International Economics. #WonYongkul #UniversityofSeoul #publicuniversity #macroeconomics #education #publicmedicalschool #Korea #economics #universitypresident #leadership
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President of the University of Seoul
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CEO of Hyundai Engineering
Joo Woo-jeong
- Joo Woo-jeong has been appointed as the CEO of Hyundai Engineering. He is recognized as a leading financial expert within the Hyundai Motor Group. Joo was nominated as the CEO of Hyundai Engineering in November 2024 with the task of improving the company's weak profitability and organizational structure. Born in June 1964, Joo graduated from Daegu Oseong High School and majored in Economics at Sogang University. He began his career in 1990 at Hyundai Precision & Industry Co., Ltd. (now Hyundai Mobis). He later served as the Head of Management Control at Kia Slovakia (KMS) and as the Financial Director at Kia Motors Europe (KME). In 2010, he was appointed as the Head of Financial Management at Kia. In 2015, Joo moved to Hyundai Steel, where he held roles such as Head of Cost Management and Head of Business Management. In 2018, he returned to Kia as the Head of Finance, earning a promotion to Executive Vice President. In 2020, he was promoted again to Vice President at Kia. In the 2024 year-end appointments, Joo was chosen as the first CEO of Hyundai Engineering with a background in finance. #JooWoojeong #HyundaiEngineering #HyundaiMotorGroup #KiaMotors #financialexpert #corporateleadership #CEOappointment #Koreanbusiness #HyundaiSteel #SogangUniversity
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CEO of Hyundai Engineering
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CEO of Sanil Electric
Park Dong-suk
- Park Dong-suk is the CEO of Sanil Electric. He is focusing on expanding transformer orders in response to favorable market trends such as the aging power transmission infrastructure in the United States and the growing power demand for data centers driven by the growth of the artificial intelligence (AI) industry. Born on May 15, 1961, Park began his career at Yu-il Electric, a manufacturer of heavy electrical equipment, where he worked for six years starting at the age of 20. In 1981, he founded Sanil Electric, entering the transformer and electrical equipment manufacturing business. Later, he earned a master’s degree in electrical engineering from Korea University. Guided by the belief that "opportunity comes to those who are prepared," Park has dedicated himself to technological investment and overseas order acquisition. This preparation allowed him to successfully respond to market opportunities such as the aging U.S. transmission grid and the rising power demand in data centers fueled by AI industry growth. #ParkDongsuk #SanilElectric #TransformerIndustry #AI #PowerTransmission #DataCenters #ElectricalEngineering #BusinessGrowth #TechnologyInvestment #MarketTrends
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CEO of Sanil Electric
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Chairman of Hwangkum ST
Kim Jong-hyun
- Kim Jong-hyun is the Chairman and CEO of Hwangkum ST (Steel and Technology). He also serves as an internal director at its affiliate, Isang Networks. As the second-generation owner, he succeeded his father, Honorary Chairman Kim Sung-joo, and has been leading Hwangkum ST's operations in the steel and construction industries. Kim was born on December 26, 1961, in Seoul. He graduated from Kyunghee High School and earned a bachelor's degree in mechanical engineering from Hanyang University. He further pursued his studies at the Georgia Institute of Technology in the United States, where he obtained both a master's and a doctoral degree in mechanical engineering. Kim joined Hwangkum ST in 1992, became CEO in 1998, and was promoted to Chairman in 2009. Since assuming the CEO position, he has successfully managed Hwangkum ST, maintaining profitability every year. Under his leadership, the company became a leading enterprise in the industry and expanded its business into bridge construction through successful mergers and acquisitions. Kim holds the Professional Engineer qualification in mechanical engineering, the highest certification in the field. He views stainless steel bars and structural steel as new growth drivers and is striving to expand business in these areas. #KimJonghyun #HwangkumST #SteelIndustry #Construction #MechanicalEngineering #GeorgiaTech #BusinessExpansion #StainlessSteel #BridgeConstruction #CorporateLeadership
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Chairman of Hwangkum ST
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President of Korea South-East Power
Kang Ki-yoon
- Kang Ki-yoon is the president of Korea South-East Power (KOEN). He is the first president of the company to come from a political background. He was born on June 4, 1960, in Changwon, Gyeongsangnam-do. After graduating from Masan Technical High School, he pursued an associate degree in electrical engineering at the Vocational College affiliated with Kyungnam University. Kang worked as a laborer at the LG plant in Changwon for 10 years before transitioning into the business sector. He served as the CEO of Iljin Metalworks and the CEO of Kumho Engineering. In 2002, Kang was elected as a Gyeongsangnam-do provincial councilor during the 3rd nationwide local elections and subsequently enrolled in the Public Administration Department at Changwon National University. He later obtained a master’s degree in local administration from the Graduate School of Public Administration at Chung-Ang University and a doctorate in public administration from Changwon National University. Kang entered politics in 2012 after being elected as a National Assembly member for the Seongsan district of Changwon, Gyeongsangnam-do, as a Saenuri Party candidate in the 19th National Assembly election. He defeated Sohn Seok-hyung of the Unified Progressive Party. Although he lost to Roh Hoe-chan of the Justice Party in the 20th National Assembly election, he returned to office in 2020 by winning the 21st National Assembly election. In the 22nd National Assembly election held in April 2024, Kang ran as a candidate of the People Power Party in the same constituency but narrowly lost to Heo Sung-moo of the Democratic Party, who had previously served as the mayor of Changwon, by a margin of 0.68 percentage points. In November 2024, Kang Ki-yoon was appointed president of Korea South-East Power. #KangKiYoon #KoreaSouthEastPower #politician #CEO #NationalAssembly #Changwon #Gyeongsangnamdo #LGPlant #publicadministration #localgovernment
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President of Korea South-East Power
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President of Korea East-West Power
Kwon Myung-ho
- Kwon Myung-ho is the President of Korea East-West Power. He prioritizes safety as the core value and focuses on securing new growth engines, such as power development, renewable energy generation, and energy-related new businesses, to achieve sustainable growth. He was born on January 10, 1961 (lunar calendar) in Dong-gu, Ulsan. Kwon attended Bangojin Elementary School, Bangojin Middle School, Hakseong High School, and graduated from the English Language and Literature Department at the University of Ulsan. He also completed a master's degree in public administration at the Graduate School of Public Policy at the University of Ulsan. His political career began in 2006 as the Chair of the Dong-gu Council in Ulsan Metropolitan City. He subsequently served as a member of the 5th Ulsan Metropolitan Council and as the Head of Dong-gu District in the 7th term. Kwon was elected as a member of the 21st National Assembly, representing Dong-gu, Ulsan, and served in various positions, including Deputy Floor Leader of the People Power Party, member of the National Assembly's Trade, Industry, Energy, SMEs, and Startups Committee, and Vice Chairman of the Small and Medium Enterprises Committee of the People Power Party. However, he was defeated when he ran as a People Power Party candidate for Dong-gu, Ulsan, in the 22nd general election. He was appointed as the President of Korea East-West Power on November 5, 2024, after recommendations from the executive nomination committee, deliberation and resolution by the Public Institution Operation Committee, approval at the general shareholders’ meeting, recommendation by the Minister of Trade, Industry, and Energy, and formal appointment by the President. Kwon's deep understanding of Ulsan’s local issues, stemming from being born and raised in Dong-gu, was seen as one of his strengths. However, some critics labeled his appointment as political parachuting. #KwonMyungHo #KoreaEastWestPower #renewableenergy #Ulsan #powergeneration #sustainablegrowth #PeoplePowerParty #energyindustry #DongguUlsan #publicadministration
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President of Korea East-West Power
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Chairman of Hyundai Marine & Fire Insurance
Chung Mong-yoon
- Chung Mong-yoon is the Chairman of Hyundai Marine & Fire Insurance. Under the new accounting system (IFRS17), he is working to secure profitability and ensure dividendable profits for shareholder returns. He was born on March 18, 1955, in Seoul, as the seventh son among eight sons and three daughters of Chung Ju-yung, the founder of the Hyundai Group. He graduated from Seoul Joongang High School, earned a bachelor's degree in business administration from San Francisco State University, and received a master's degree in business administration from the same university's graduate school. Chung began his career at Hyundai Corporation and later moved to Hyundai Marine & Fire Insurance, where he rose through the ranks from vice president to president, eventually becoming chairman. After Hyundai Marine & Fire Insurance was separated from the Hyundai Group, he successfully developed the company into a quasi-large corporate group with assets exceeding KRW 5 trillion (US$ 3.6 billion). His focus on ESG (Environmental, Social, and Governance) management and securing future growth is evident as he personally supported the non-profit corporation Root Impact, established during his son Chung Kyung-sun’s tenure as the head of Silban Group. #ChungMongYoon #HyundaiMarineInsurance #IFRS17 #HyundaiGroup #ChungJuYung #ESGmanagement #RootImpact #businessleadership #futuregrowth #corporategovernance
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Chairman of Hyundai Marine & Fire Insurance
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Chairman of Daejoo Electronic Materials
Lim Moo-hyun
- Lim Moo-hyun is the founder and chairman of Daejoo Electronic Materials. He also serves as the CEO of the company’s subsidiaries in Dongguan and Qingdao, China. He is focusing on expanding the business into silicon anode materials, positioning it as a future growth engine. Lim was born on June 21, 1942. He graduated from the Department of Chemical Engineering at Seoul National University in 1965 and earned another degree from the Department of Commerce (now Business Administration) at the same university in 1967. Starting in 1968, Lim worked in chemical and pharmaceutical companies before founding the trading company Daejoo Trading in 1981. In 1985, he renamed the company Daejoo Precision Chemicals and officially entered the electronic materials development business. In 2003, the company changed its name to Daejoo Electronic Materials. Lim places the highest importance on technology research and development. He successfully introduced conductive silver paste technology to South Korea by learning it from Japanese Dr. Kunimine Noboru. He has been recognized for his contributions to localizing raw materials for the electronics industry and advancing silicon anode material technology. #DaejooElectronicMaterials #LimMoohyun #siliconanodematerials #Koreanindustry #electronicmaterials #businessleader #technologyinnovation #founderprofile #materialslocalization #R&D
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Chairman of Daejoo Electronic Materials
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President of Korea Midland Power
Lee Young-jo
- Lee Young-jo is the President of Korea Midland Power. He is committed to improving the stability and efficiency of power generation projects while ensuring a successful energy transition. Lee Young-jo was born in 1962 in Bonghwa-gun, Gyeongsangbuk-do. He graduated from Andong High School and Dong-A University, where he studied Political Science and International Relations. He later earned a master's degree in Public Administration from Pusan National University Graduate School. Lee began his career at Korea Electric Power Corporation (KEPCO) in 1988. In 2001, he moved to Korea Midland Power, where he served in key positions, including Chief of Information Security and Director of Planning and Management. In 2024, he was appointed President of Korea Midland Power. Notably, he was the only internal promotion among the presidents of KEPCO's subsidiaries at the time. With over 37 years of experience, Lee has dedicated his career solely to the energy and power generation industry. #LeeYoungjo #KoreaMidlandPower #KEPCO #energytransition #powergeneration #internalpromotion #publicadministration #Koreanenergyindustry #energyefficiency #leadership
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President of Korea Midland Power
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Chairman of PSK Holdings
Park Kyung-soo
- Park Kyung-soo is the Chairman and CEO of PSK Holdings. He also serves as an internal director at PSK, a listed affiliate. Park is the founder of PSK Holdings and PSK, companies that manufacture semiconductor equipment. He was born on December 13, 1952, in Seoul. He graduated from Kyungbock High School in Seoul and earned a degree in Business Administration from Korea University. He later obtained a Master of Business Administration (MBA) from California State University in the United States. In 1986, Park established Geumyoung Trading, the precursor to PSK Holdings, and operated a business as a Korean sales agency for Japanese semiconductor equipment. He later formed a joint venture with a Japanese company to establish PSK and successfully localized dry strip equipment, a front-end semiconductor process tool, for the first time in 1997. Park is striving to expand the market in response to the growing demand for high-bandwidth memory (HBM). #ParkKyungsoo #PSKHoldings #PSK #semiconductorequipment #drystrip #Koreansemiconductor #HBM #founder #businessleader #technologyinnovation
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Chairman of PSK Holdings
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CEO and President of Youngjin Pharmaceutical
LEE GI SOO
- Lee Gi Soo is the CEO and President of Yungjin Pharm. He was born in July 1966. Lee earned a Ph.D. in Cell Genetics from Kumamoto University in Japan. After working at Hanil Pharmaceutical and CJ CheilJedang, he served as Head of International Business at Yungjin Pharm in 2012 and as an executive in Global Business at Chong Kun Dang in 2017. In March 2022, Lee returned as CEO of Yungjin Pharm. He was brought in as a “relief pitcher” to overcome the company’s sluggish performance during the COVID-19 pandemic. Lee successfully turned the company around in just two years by increasing the proportion of Yungjin Pharm's in-house products and focusing on management efficiency. He is actively driving aggressive investments in research and development as well as fostering open innovation. There is growing interest in whether he will be reappointed when his term expires in February 2025. #YungjinPharm #LeeGiSoo #CEO #pharmaceuticals #COVID19 #turnaroundsuccess #R&D #openinnovation #managementefficiency #ChongKunDang
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CEO and President of Youngjin Pharmaceutical
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Mirae Asset Life Insurance CEO and Executive Director
Hwang Mun-gyu
- Hwang Mun-gyu is the Co-CEO and Executive Vice President of Mirae Asset Life Insurance. He has been strengthening insurance profits by focusing on profitability through protection-type insurance products. He was born on August 5, 1970. After graduating from Busan National University High School, he earned a degree in Business Administration from Dongguk University in 1993. He began his career in 2006 in the BA Sales Division at PCA Life Insurance and served as the Regional Sales Team Leader of PCA Life's GA Sales Division starting in 2014. Following the Financial Services Commission's final approval of the merger between PCA Life Insurance and Mirae Asset Life Insurance in December 2017, he served as the GA Sales Team Leader at Mirae Asset Life Insurance from March 2018 to November 2020. Afterward, he held roles as the Head of the GA Sales Headquarters and Managing Director of the GA Sales Division before being appointed Co-CEO of Mirae Asset Life Insurance on March 28, 2024. In October 2024, he was promoted to Executive Vice President of Mirae Asset Life Insurance. He has accumulated significant experience in insurance sales, which has deepened his understanding of the market. #HwangMunGyu #MiraeAssetLifeInsurance #Insurance #Leadership #Career
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Mirae Asset Life Insurance CEO and Executive Director
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CEO of LG HelloVision
Song Gu-young
- Song Gu-young is the CEO of LG HelloVision. As the domestic pay-TV market shifts toward internet TV, he is focusing on differentiation through region-specific content. He is also strengthening cooperation with LG Uplus. To improve profitability, he is exploring new business opportunities such as rental services and regional cultural projects to secure future growth engines. He was born in June 1966. He graduated from Daejeon High School and Yonsei University with a degree in Business Administration. He also earned a Master of Business Administration (MBA) from Yonsei University Graduate School. At LG Uplus, he served as Executive Director of the Western Sales Division, Executive Director of Sales Strategy, and Executive Director and Senior Executive Director of the Home Media Division. He played a key role as Senior Executive Director of the CJ Hello Acquisition Task Force, leading the acquisition of CJ Hello. He has extensive field experience and is known for his gentle personality, earning him respect among company employees. #SongGuyoung #LGHelloVision #payTV #LGUplus #businessstrategy #regionalcontent #profitability #CJHello #futuregrowth #mediaindustry
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CEO of LG HelloVision
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CEO and Chairman of SungEel HiTech
Yi Kang-myung
- Yi Kang-myung is the Chairman and CEO of SungEel HiTech. He is dedicated to expanding the production capacity of secondary battery materials by building additional waste battery recycling plants both domestically and internationally. He is also interested in lithium iron phosphate battery recycling and energy storage system projects. Born in December 1966, Yi graduated from Korea University with a degree in Metallurgical Engineering and later obtained a master’s degree in the same field at the same university. In 1992, he completed his military service as an alternative service member at Daejoo Electronic Materials. In 2000, Yi co-founded SungEel HiTech with Lee Kyung-ryul, the current President of SungEel HiTech, and Hong Seung-pyo, the current CEO of SungEel HiMetal. Yi and Lee Kyung-ryul were high school classmates. Initially, SungEel HiTech started as a precious metal recycling company. Recognizing the potential of the recycling business, Yi decided to leave his doctoral program and establish SungEel HiTech. In 2008, the company shifted its focus to the battery recycling business. As part of this transition, it acquired waste battery scrap technology in 2011 and established a new plant. In March 2017, the company spun off its secondary battery recycling division to form the newly established SungEel HiTech. At that time, Yi acquired shares from Hong Seung-pyo, his co-founder and the joint largest shareholder of SungEel HiMetal, becoming the sole largest shareholder of SungEel HiTech. #SungEelHiTech #YiKangMyung #batteryrecycling #secondarybatterymaterials #lithiumironphosphate #energystoragesystem #wastebattery #KoreaUniversity #metallurgicalengineering #technology
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CEO and Chairman of SungEel HiTech
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President of Korea Western Power
Lee Jung-bok
- Lee Jung-bok is the CEO of Korea Western Power. He has been dedicated to improving the stability and efficiency of power generation projects and ensuring a successful energy transition. He was born on August 26, 1963. He graduated from Seoul Kyunggi High School and earned a degree in Sociology from Sungkyunkwan University. After joining Korea Electric Power Corporation (KEPCO), he served as Head of the Media Relations Team, Head of the Public Relations Planning Team, Director of the Management Evaluation Office, Director of Talent Development, and Director of Job Policy. He also held positions as Director of Human Resources, Head of the Management Headquarters, Head of the Coexistence Management Headquarters, Executive Vice President of Business Management, and Acting President of Korea Electric Power Corporation. He was appointed as CEO of Korea Western Power after being recommended by the executive nomination committee, reviewed and approved by the Public Institutions Operation Committee, resolved at the general shareholders' meeting, nominated by the Minister of Trade, Industry and Energy, and appointed by the President. With over 30 years of experience at Korea Electric Power Corporation, he is known for his strong emphasis on communication, earning deep trust within the organization. He is also regarded as a resilient yet quietly strong leader. #KoreaWesternPower #LeeJungbok #KEPCO #EnergyTransition #PowerGeneration #Leadership #PublicSector #EnergyEfficiency #SouthKorea #CorporateLeadership
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President of Korea Western Power
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CEO of Frombio
Shim Tae-jin
- Shim Tae-jin is the CEO of FromBIO. He is the founder of FromBIO, a company specializing in health functional foods. He was born on April 23, 1973, in Jeongseon County, Gangwon Province. Shim graduated from Yeoryang High School in Jeongseon County. He gained experience by handling sales and delivery roles at Haenglim Pharmaceutical and Daedeok Yakup. In 2006, he established Jinyong Natural (now FromBIO) and became its CEO. Starting from scratch, he grew FromBIO into one of the leading health functional food companies in South Korea. He is currently focusing on developing stem cell-based hair loss treatments, viewing it as a new growth engine for FromBIO. #FromBIO #ShimTaejin #HealthFunctionalFood #CEO #StemCell #HairLossTreatment #SuccessStory
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CEO of Frombio
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Vice Chairman of Mirae Asset Securities
Kim Mi-seob
- Kim Mi-seob is the Vice Chairman and Co-CEO of Mirae Asset Securities. He is focusing his efforts on improving the company's financial performance, which has been weakened by losses from overseas commercial real estate investments. Following Choi Hyun-man, the former Chairman and CEO of Mirae Asset Securities, Kim is establishing the second phase of the professional management system at Mirae Asset Group. He shares leadership with Heo Sun-ho, who also serves as Vice Chairman and Co-CEO. Kim oversees global business and investment banking (IB), while Heo handles retail banking. Born in 1968, Kim graduated from Seoul National University with a degree in economics. He joined Mirae Asset Global Investments, where he served as CEO of the overseas subsidiaries, CEO of Mirae Asset Global Investments, and head of global business at Mirae Asset Securities. At Mirae Asset Group, Kim has led Mirae Asset Hong Kong Asset Management as Chief Financial Officer (CFO) and served as the head of the Singapore and Brazil branches, pioneering overseas markets. During his tenure as CEO of Mirae Asset Global Investments, he expanded the company’s global business by acquiring Global X, a U.S.-based exchange-traded fund (ETF) company. At Mirae Asset Securities, Kim has been responsible for the Innovation Promotion Task Force and the Global Business Division. He is regarded as someone who deeply understands the overseas expansion strategy of Mirae Asset Group Chairman Park Hyun-joo. #KimMiSeob #MiraeAssetSecurities #GlobalBusiness #InvestmentBanking #OverseasExpansion #MiraeAssetGroup #FinancialPerformance #RealEstateInvestments #GlobalMarkets #Leadership
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Vice Chairman of Mirae Asset Securities
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CEO of Kakao Games
Han Sang-woo
- Han Sang-woo is the CEO of Kakao Games. He is focusing on improving the company’s performance and strengthening its global competitiveness. Born on March 22, 1971, Han graduated from Chungnam National University with a degree in Business Administration. He served as the head of the China branch and Executive Vice President of Global Business at Neowiz Games (now Neowiz). Afterward, he co-founded the mobile game company Aina Games with former Neowiz Games members and worked as Chief Operating Officer (COO). Han became the first Korean CEO of Tencent Korea, the Korean branch of the Chinese IT giant Tencent. He later joined Kakao Games, where he served as Chief Strategy Officer (CSO) and Head of the Overseas Business Division, eventually becoming Senior Vice President of the division. In 2024, he was appointed CEO of Kakao Games and simultaneously assumed leadership of the company’s Renewal Task Force (TF). Han is focusing on improving performance through management efficiency and the launch of new games. #HanSangWoo #KakaoGames #CEO #GlobalCompetitiveness #GameIndustry #TencentKorea #AinaGames #Neowiz #PerformanceImprovement #NewGameLaunch
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CEO of Kakao Games
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CEO of Aprogen
Kim Jae-seob
- Kim Jae-seob is the CEO of Aprogen and also serves as the co-CEO of Aprogen Biologics. He was born on January 31, 1963, in Wonju, Gangwon-do. Kim graduated from the Department of Microbiology at Seoul National University and earned his Ph.D. in Science from Seoul National University Graduate School. He has held positions as a researcher at Cornell University, a research assistant professor at the University of Wisconsin, a professor at Seoul National University's Genetic Engineering Research Institute, and a professor at KAIST's Department of Biological Sciences. In 2000, Kim founded the venture company Genexel. After acquiring Aprogen in 2006, he expanded the company aggressively through mergers and acquisitions, growing its affiliates to more than 10. During this process, the company diversified its business areas to include pharmaceutical distribution, gaming, and healthcare. In October 2005, while serving as a professor at KAIST’s Department of Biological Sciences, Kim left a significant mark in academia by discovering a new biological clock gene, which he named "Han." Thirteen years after acquiring Aprogen, he successfully transformed it into a unicorn company, a privately held venture company with a valuation exceeding KRW 1 trillion (approximately USD 721 million). #KimJaeseob #Aprogen #CEO #Biotechnology #KAIST #SeoulNationalUniversity #BiologicalClockGene #UnicornCompany #Genexel #HealthcareIndustry
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CEO of Aprogen
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President of Sogang University
Sim Jong-hyeok
- Sim Jong-hyeok is the President of Sogang University. He was re-elected for a consecutive term as the sole candidate. He was born on October 17, 1955, in Seoul. Sim graduated from Seoul Dongsung High School and pursued undergraduate studies in mathematics and physics at Sogang University. He earned a master’s degree in physics from the Sogang University Graduate School. He further completed master’s programs in pastoral studies and theology at Weston School of Theology in the United States and earned his doctoral degree in theology from the Pontifical Gregorian University in Rome, Italy. Sim is known as a scientist who later transitioned into theology. He is a Catholic priest. In 1992, Sim was appointed as a professor in the Department of Religious Studies at Sogang University. Over the years, he served in various leadership roles, including Director of the Institute of Theology, General Affairs Director, Planning Director, Vice President for Academic Affairs, and Dean of the Graduate School. In 2021, he was appointed as the President of Sogang University. Sim faces demands for reform from university members regarding the governance structure dominated by the Jesuit-affiliated foundation. Resolving the conflict between the foundation and university members remains a key challenge. Despite being summoned by police over allegations of misconduct in the appointment of an endowed professor, which put his reappointment in doubt, the university’s board of trustees reinstated Sim Jong-hyeok. #SimJongHyeok #SogangUniversity #universitypresident #Catholicpriest #Jesuitgovernance #academicleadership #theology #scientistturnedtheologian #universityreform #reappointment
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President of Sogang University
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Vice Chairman of Celltrion
Kee Woo-sung
- Kee Woo-sung is the Vice Chairman and CEO of Celltrion. He has focused on expanding Celltrion’s core biosimilar (biopharmaceutical generic drug) business while enhancing the company’s new drug development capabilities. He was born on December 10, 1961 (lunar calendar). Kee graduated from Joongdong High School in Seoul and Hanyang University with a degree in Industrial Engineering. He began his professional career in the planning department at Daewoo Motors. When Seo Jung-jin, the Chairman of Celltrion, founded Nexol, the predecessor of Celltrion, Kee joined and served as the Head of Production Management, Chief Secretary, and Vice President. He progressed to become Celltrion’s Senior Executive Vice President, President, and was later appointed Co-CEO before being promoted to Vice Chairman in 2018. In December 2023, following the merger of Celltrion and Celltrion Healthcare, the integrated Celltrion was launched, with a three-person CEO structure comprising Seo Jin-seok, Chairman of the Celltrion Board of Directors, Kim Hyung-ki, Vice Chairman of Celltrion, and Kee Woo-sung. Kee is considered one of Chairman Seo Jung-jin's closest associates. During his tenure as Head of Celltrion’s Product Development Division, he laid the foundation for Celltrion by developing "Remsima," an autoimmune disease treatment. He is known for his strong spirit of challenge and places great importance on leadership that inspires passion among employees. #Celltrion #KeeWooSung #biosimilar #biopharmaceutical #Remsima #leadership #SeoJungJin #drugdevelopment #healthcaremerger #biotech
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Vice Chairman of Celltrion
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CEO of Hanwha General Insurance
Na Chea-bum
- Na Chea-bum is the CEO of Hanwha General Insurance. He has chosen femtech as a future growth area and is focusing on developing insurance products tailored to become "the insurance company that understands women the best." He was born on November 13, 1965, in Goryeong, Gyeongsangbuk-do. He graduated from Gyeongbuk Mechanical Technical High School and earned a law degree from Yeungnam University. He later obtained a master's degree in business administration (MBA) from Sungkyunkwan University Graduate School. Known as one of Hanwha Group's leading financial experts, he is highly regarded for his expertise in insurance sales and marketing. At Hanwha Life, he served in roles such as Gyeongbuk Regional Head, CPC Strategy Director and Head of Change and Innovation Task Force (TF), Management Control Team Leader, Personal Support Team Leader, Head of Management Innovation, and Chief Financial Officer (CFO). At Hanwha General Insurance, he is expected to contribute to business stabilization and improved profitability through reforms in sales practices and modernization of management systems. He values communication with employees and has demonstrated strong leadership and execution capabilities. #NaCheaBum #Hanwha #HanwhaGeneralInsurance #Femtech #InsuranceInnovation #Leadership #KoreanCEO #FinancialExpert #BusinessStabilization #InsuranceMarketing
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CEO of Hanwha General Insurance
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CEO of COSMECCA KOREA
Cho Im-rae
- Cho Im-rae is the CEO of COSMECCA KOREA. Together with his wife, CEO Park Eun-hee, he leads the company as co-CEOs. He also serves as the CEO of the Chinese subsidiaries, COSMECCA SUZHOU and COSMECCA CHINA, and as a non-executive director of the U.S. subsidiary, Englewood Lab. He is accelerating efforts to expand into overseas markets with the goal of achieving KRW 1 trillion in annual sales. Born on March 28, 1953, Cho began his career at cosmetics companies such as Peerless and Oh Hyun Dureura. In 1992, he joined Kolmar Korea as a research lab director. Later, he served as an executive director at Taeung Cosmetics. When Taeung Cosmetics ceased operations, he founded COSMECCA KOREA in 1999. With over 40 years of experience as a researcher in the cosmetics industry, Cho is recognized as an expert in cosmetics development. He places great emphasis on research and development, considering himself not just a business leader but primarily a cosmetics development researcher. #ChoImrae #COSMECCAKOREA #cosmeticsdevelopment #Kbeauty #RND #globalexpansion #cosmeticsresearcher #EnglewoodLab #COSMECCACHINA #COSMECCASUZHOU
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CEO of COSMECCA KOREA
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Chairman of Hankook & Company
Cho Hyun-bum
- Cho Hyun-bum is the Chairman and CEO of Hankook & Company, the holding company of Hankook & Company Group. He also serves as Chairman of its subsidiary, Hankook Tire & Technology. He is focusing on completing the acquisition of Hanon Systems, the world’s second-largest automotive thermal management company, and driving internal integration to create synergies with the existing group. Born on January 7, 1972, in Haman County, Gyeongnam Province, Cho Hyun-bum is the second son of Cho Yang-rae, Honorary Chairman of Hankook & Company Group. He graduated from Dwight-Englewood High School in the United States and earned a degree in finance from Boston College. After serving as Head of the Marketing Division at Hankook Tire, he moved to the position of Head of Corporate Strategy at Hankook Tire Worldwide (now Hankook & Company), the group's holding company. Following the spin-off of Hankook Tire & Technology from Hankook & Company, he joined the tire business company, Hankook Tire & Technology. Before Cho Hyun-sik, Advisor at Hankook & Company, assumed the role of Non-Executive Director of Hanon Systems, Cho Hyun-bum served as an Executive Director of Hanon Systems. He returned to management in 2020 as the sole CEO of Hankook & Company after receiving a suspended sentence in a trial related to personal misconduct. In 2023, he was arrested on charges of embezzlement and breach of trust. As of 2024, he is currently out on bail and undergoing trial without detention. Cho emphasizes creativity and a proactive corporate culture, actively engaging in communication with employees. He is the son-in-law of former President Lee Myung-bak. #ChoHyunBum #HankookAndCompany #HankookTire #HanonSystems #KoreanBusiness #CorporateLeadership #HankookGroup #AutomotiveIndustry #Leadership #KoreanCEO #BusinessNews #LeeMyungBakFamily #KoreanCompanies
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Chairman of Hankook & Company
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Chairman of Hyungji
Choi Byung-oh
- Choi Byung-oh is the chairman of Fashion Group Hyungji and also serves as the CEO of both Fashion Group Hyungji and Hyungji I&C. He was born on November 18, 1953, in Busan, as the third of seven children in his family. After the sudden passing of his father, who ran a lime factory, Choi's family faced severe poverty. At the age of 19, after graduating from a technical high school, he began his entrepreneurial journey by operating a paint dealership. He later founded a company named "Crown" in Seoul's Dongdaemun Market, starting a women's pants wholesale business. Despite running the brand for ten years, the company eventually went bankrupt. With the idea of creating affordable and accessible clothing for women in their 30s to 50s, Choi launched the women’s casual brand "Crocodile Lady" and established Hyungji Apparel. Choi is also active as the chairman of the Korea Apparel Industry Association, a member of the Unified Economy Committee of the Federation of Korean Industries, and an adjunct professor at Soongsil University's Graduate School of Business. He is known for his bold entrepreneurial spirit, which led to his success story in Dongdaemun Market. Choi attributes his achievements to "genuine consideration for others" and "health." #ChoiByungoh #FashionGroupHyungji #CrocodileLady #entrepreneurship #Dongdaemun #womensfashion #KoreaApparelIndustry #HyungjiINC #successstory #leadership
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Chairman of Hyungji
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Chairman of Toptec
Lee Jae-hwan
- Lee Jae-hwan is the chairman of Toptec. Although he serves as an internal director, he does not hold the CEO position. He is the founder of Toptec, a company that manufactures automation equipment used in production processes for displays and secondary batteries. Lee was born on February 4, 1967, in Bonghwa County, North Gyeongsang Province. He graduated from Busan Technical High School and Dongseo University's Department of Mechanical Engineering. After completing his military service following high school, he founded Toptec in 1992. Starting from nothing, he built the company into a mid-sized enterprise with annual sales reaching into the hundreds of billions of won. In the 2020s, he successfully promoted process diversification in the secondary battery equipment sector, achieving a broader business structure beyond the display equipment focus. He has been working to diversify Toptec's secondary battery equipment customer base, which was previously skewed toward SK Group. #LeeJaeHwan #Toptec #secondarybattery #automationequipment #displayindustry #businessdiversification #entrepreneur #manufacturing #SKGroup #Koreanbusiness
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Chairman of Toptec
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CEO of Hotel Shilla
Lee Boo-jin
- Lee Boo-jin is the President and CEO of Hotel Shilla. She is focused on expanding the duty-free business and establishing a global hotel chain. She is concentrating on restoring the performance of the duty-free and hotel businesses, which were impacted by the COVID-19 pandemic. Born on October 6, 1970, in Seoul, she is the eldest daughter of the late Samsung Chairman Lee Kun-hee. She graduated from Daewon Foreign Language High School and Yonsei University, majoring in Child Studies. Lee began her career in the planning support team at Samsung Welfare Foundation and later moved to Samsung Electronics. She then transitioned to Hotel Shilla's planning department as a department head and was rapidly promoted to executive director. After serving as an executive director for business strategy at Samsung Everland and as an advisor for Samsung C&T's trading division, she was appointed President and CEO of Hotel Shilla. She is known for her cool-headed nature, earning the nickname "Little Lee Kun-hee." Many recognize her for having bold and decisive leadership. #LeeBooJin #HotelShilla #SamsungGroup #DutyFreeBusiness #GlobalHotelChain #BusinessLeadership #COVID19Recovery #KoreanBusinessLeaders #LeeKunHee #FemaleCEO
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CEO of Hotel Shilla
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President of SK Inc. C&C
Yoon Poong-young
- Yoon Poong-young is the President of SK Inc. C&C. SK Inc. C&C handles the information technology (IT) services business of SK Group. Yoon Poong-young is tasked with strengthening the competitiveness of the artificial intelligence (AI)-based businesses that SK Inc. C&C focuses on, while leading the digital transformation across the entire SK Group. He was born on November 28, 1974. Yoon graduated from Yonsei University with a degree in Mechanical Engineering and obtained a Master of Business Administration (MBA) from INSEAD in France. He began his career in the information technology (IT) industry as a developer at IBM Korea. In 2007, he joined SK Telecom's business development division, marking his connection with SK Group, where he has held various positions within the organization. After holding key roles in business development, finance, and planning, he distinguished himself in the areas of strategy and investment. He served as Chief Investment Officer (CIO) of SK Square, Chief Financial Officer (CFO) of SK Telecom, and Head of the PM Group before being appointed President of SK Inc. C&C in 2023. Yoon is recognized for his understanding of the information and communications technology (ICT) industry and his expertise in finance. He is known for his meticulous personality and exceptional business execution capabilities. #YoonPoongyoung #SKIncC&C #SKGroup #ArtificialIntelligence #DigitalTransformation #ICTIndustry #SKSquare #SKTelecom #BusinessLeader #AIInnovation
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President of SK Inc. C&C
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CEO of Lake Materials
Kim Jin-dong
- Kim Jin-dong is the CEO of Lake Materials and also serves as the CEO of its affiliate, Lake Technology. He is focusing on expanding production capacities for organic chemical materials such as trimethylaluminum (TMA) and lithium sulfide. Kim was born on October 22, 1966, in Bonghwa, Gyeongsangbuk-do. He graduated from Sungkwang High School in Daegu and earned a degree in Chemistry from Yonsei University. He went on to obtain a master’s degree in Organic Chemistry and a doctorate in Organometallic Chemistry from the Korea Advanced Institute of Science and Technology (KAIST). Kim began his career as a researcher in the petrochemical division at Daelim Industrial. Later, he co-founded the semiconductor materials company DNF. After successfully listing DNF on the KOSDAQ market in 2007, he sold his shares in 2010 and established Lake LED, which is now Lake Materials. As an expert in organic chemical materials with a strong entrepreneurial spirit, Kim achieved the successful development of high-difficulty materials like trimethylaluminum. He contributed to the domestic semiconductor materials industry by localizing materials such as LED materials and trimethylaluminum, which previously relied on imports. In 2024, Kim took office as the 3rd Chairman of the Sejong Chamber of Commerce and Industry, dedicating efforts to the growth of the local community. #KimJindong #LakeMaterials #OrganicChemistry #Trimethylaluminum #SemiconductorMaterials #LakeTechnology #Localization #SejongChamber #MaterialInnovation #Entrepreneurship
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CEO of Lake Materials
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CEO of Cheryong Electric
Park Jong-tae
- Park Jong-tae is the CEO of Cheryong Electric. He also serves as the CEO of its affiliate, Cheryong Industrial. He focuses on securing orders to meet the rising demand for transformers in the North American market. Born on November 15, 1957, in Mungyeong, Gyeongsangbuk-do, Park graduated from Yongmun High School in Seoul and later earned a degree in Craft Design from Seoul Institute of Technology. After working at companies such as KEPCO Chemicals and Daeboong Electric Wire, he served as CEO of “Sale Trading.” In 1994, Park became the CEO of Cheryong Electric, and in 2011, he took on the role of CEO at the newly established Cheryong Industrial following a corporate spin-off. As a second-generation business leader, he has led a specialized heavy electrical equipment company for 40 years. Park values technological innovation. He spearheaded the development and commercialization of high-efficiency earthquake-resistant molded transformers, earthquake-resistant gas-insulated switchgear (GIS), and amorphous transformers. He is also dedicated to developing eco-friendly products, such as “toxic substance-reducing molded transformers.” Park possesses excellent foresight in capturing opportunities. He anticipated that the U.S. Inflation Reduction Act and the increase in electric vehicle production would drive investments in power infrastructure, leading to transformer shortages. By focusing on the U.S. transformer market, he successfully elevated Cheryong Electric into a mid-sized company with revenues surpassing KRW 200 billion (US$ 144.3 million). #ParkJongTae #CheryongElectric #CheryongIndustrial #TransformerMarket #TechnologicalInnovation #EcoFriendlyProducts #NorthAmericaMarket #ElectricVehicles #PowerInfrastructure #InflationReductionAct
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CEO of Cheryong Electric
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CEO of Telechips
Lee Jang-kyu
- Lee Jang-kyu is the President and CEO of Telechips. He is the founder of Telechips, a fabless system semiconductor company. Lee was born on March 5, 1963. He graduated from the Department of Electronic Engineering at Sogang University and earned a master’s degree in Electronic Engineering from Yonsei University Graduate School. Lee worked as a researcher in the Memory Division at Samsung Electronics before co-founding the semiconductor fabless company C&S Technology (now known as iA) in 1993. In 1999, he established Telechips, and in 2014, he became the largest shareholder and was appointed as President and CEO. He is regarded as one of South Korea's pioneering first-generation fabless company executives. In particular, he led Telechips to become the leading company in South Korea for automotive semiconductors. Lee has been actively expanding Telechips’ business areas beyond its traditional focus on automotive infotainment application processors (AP) to advanced driver assistance system (ADAS) vision processors and system-in-package (SiP) solutions. #LeeJangkyu #Telechips #semiconductor #fabless #automotive #ADAS #SiPsolutions #SouthKorea #technology #founder
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CEO of Telechips
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CEO of Korea Aerospace Industries
Kang Goo-young
- Kang Goo-young is the President and CEO of Korea Aerospace Industries (KAI). He is focused on expanding exports and securing new growth engine businesses. Kang was born on April 15, 1959, in Changnyeong, Gyeongsangnam-do. He graduated from Yeongnam High School in Daegu and entered the Korea Air Force Academy as the top-ranked student. After commissioning as an Air Force pilot, he served in key positions such as Commander of the 5th Tactical Airlift Wing, Commander of the Southern Combat Command, Commander of the Air Force Education and Training Command, and Deputy Chief of Staff of the Air Force, before retiring as a three-star general. He subsequently served as Aerospace Industry Policy Director for Sacheon, Gyeongsangnam-do, and as a distinguished professor at Yeungnam University. In 2022, he was appointed President and CEO of Korea Aerospace Industries. Kang is an aviation expert who has held major Air Force positions and completed the highest-level professional course at the Empire Test Pilots' School in the United Kingdom. #KangGooyoung #KoreaAerospaceIndustries #KAI #aviationexpert #AirForce #exports #newgrowthbusiness #defenseindustry #leadership #aerospace
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CEO of Korea Aerospace Industries
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CEO of Hyosung Heavy Industries
Woo Tae-hee
- Woo Tae-hee is the President and CEO of Hyosung Heavy Industries. He is working to secure orders for the power equipment manufacturing division by riding the global transmission network expansion boom. He is also fostering new energy businesses such as hydrogen, wind power, and energy storage systems (ESS), which are expected to become new growth engines for Hyosung Heavy Industries. Woo Tae-hee was born on September 29, 1962, in Seoul. He graduated from Baemoon High School in Seoul and Yonsei University with a degree in Public Administration. He later earned a master’s degree in Public Administration from Seoul National University’s Graduate School of Public Administration, a master’s degree in Economic Policy from UC Berkeley, and a doctorate in Business Administration from Kyung Hee University. He began his career in public service after passing the 27th Administrative Examination with the highest score as the youngest successful candidate. He primarily worked in the trade sector and rose to the position of Second Vice Minister at the Ministry of Trade, Industry, and Energy. During his tenure, he served as the chief negotiator for the Korea-China Free Trade Agreement (FTA), leading the successful conclusion of the agreement. After leaving public service, Woo Tae-hee held various positions, including Special Professor at Yonsei University, Outside Director of Lotte Fine Chemical, Vice Chairman of the Korea Chamber of Commerce and Industry, Employer Representative at the Presidential Economic, Social, and Labor Council, and Chairman of the Energy and Industry Transition Subcommittee under the Carbon Neutrality and Green Growth Commission. In February 2024, Woo joined Hyosung Group as the CEO of Hyosung Heavy Industries. With his extensive experience as a trade official, he is expected to contribute to expanding Hyosung Heavy Industries' power equipment exports and reducing U.S. tariffs on Korean power equipment. He is highly regarded for his expertise, planning ability, and drive. In government circles, he has been recognized across administrations and has often been mentioned as a candidate for ministerial positions during cabinet reshuffles. Woo Tae-hee adheres to three key work philosophies: "communication," "timely decision-making by managers," and "independent survival." He is known for his firm personality and his tendency to speak his mind when necessary. Woo describes himself as a "bookworm" who reads three books a month. #WooTaehee #HyosungHeavyIndustries #CEO #KoreaChinaFTA #PowerEquipment #NewEnergy #HydrogenBusiness #ESS #TradeExpert #HyosungGroup
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CEO of Hyosung Heavy Industries
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CEO of IMM Private Equity
Song In-jun
- Song In-jun is the CEO of IMM Private Equity. He strives to enhance the value of acquired companies to recover investments while seeking major transaction opportunities to expand his presence in the mergers and acquisitions market. He was born on September 22, 1965, in Daejeon. Song graduated from Dongsan High School in Daejeon and earned a bachelor's degree in Business Administration from Seoul National University. He later received a master's degree in Business Administration from the Graduate School of Business at Seoul National University. After working at Arthur Andersen and Korea General Finance, he participated in launching CKD Venture Capital, established by Chong Kun Dang. Song founded IMM Partners, a corporate restructuring specialist (CRC), and later merged it with IMM Venture Capital to establish IMM Investment. In 2006, he separated the private equity (PE) division to create IMM Private Equity as an independent entity, developing it into one of South Korea's leading private equity firms. Song values trust, possesses strong determination, and often makes bold decisions. #SongInjun #IMMPrivateEquity #PrivateEquity #CorporateRestructuring #Investment #SouthKorea #FinanceLeader #MergersAndAcquisitions #CKDVentureCapital #IMM
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CEO of IMM Private Equity
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CEO of Hyundai Capital
Chung Hyung-jin
- Chung Hyung-jin is the CEO and President of Hyundai Capital. He is focused on strengthening global market cooperation as the financial arm of Hyundai Motor Group. Chung was born on December 11, 1970, in Seoul. He graduated from Daewon Foreign Language High School in Seoul and earned a bachelor’s degree in economics from Harvard University in the United States. He later received both his master’s and doctoral degrees in economics from Brown University. Before joining Hyundai Capital, Chung spent 25 years at the global financial investment firm Goldman Sachs, where he established himself as an expert in global finance and mergers and acquisitions (M&A). He began his career at Goldman Sachs’ Seoul branch and later served as Executive Director at the Hong Kong office, Head of Investment Banking at the Seoul branch, and ultimately the Representative of Goldman Sachs Korea. Chung has been serving as the CEO of Hyundai Capital since June 2024. He is the elder brother of Chung Hyung-kwon, CEO of Gmarket. #ChungHyungjin #HyundaiCapital #HyundaiMotorGroup #GlobalFinance #GoldmanSachs #CEO #MergersAndAcquisitions #KoreanFinance #HarvardUniversity #Gmarket
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CEO of Hyundai Capital
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President of Cha University of Medicine and Science
Cha Won-tae
- Cha Won-tae is the President of Cha University of Medical Sciences. He is a third-generation member of the family that founded the institution and the grandson of Cha Kyung-seop, the founder of Cha Hospital. His father, Cha Kwang-ryul, is the Global Research Director and the founder of Cha University of Medical Sciences and the CHA Biotech Group. Born on June 24, 1980, Cha Won-tae graduated from Duke University in the United States with a degree in Biological Anatomy. He earned a Master of Public Health (MPH) from Yale University and a Master of Business Administration (MBA) from MIT. He also obtained a doctorate in Public Health from Yonsei University. In 2005, he joined the present-day CHA Biotech and held positions such as Director of Global Strategic Planning at CHA Health Systems and Chief Operating Officer. He later served as Vice President and eventually as President of CHA Health Systems. In April 2024, he assumed the position of President at Cha University of Medical Sciences. #ChaWontae #ChaUniversityofMedicalSciences #CHAHealthSystems #biotech #medicaleducation #DukeUniversity #YaleUniversity #MIT #YonseiUniversity #Koreabiotech
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President of Cha University of Medicine and Science
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CEO of SK broadband
Park Jin-hyo
- Park Jin-hyo is the CEO and President of SK Broadband. He has worked for over 20 years at SK Telecom, making him a quintessential "SK man" and a technology expert who has dedicated his career to the information and communications technology (ICT) field. Currently, he is striving to challenge KT, the leading company in the IPTV and broadband internet markets, while also exploring future growth opportunities to address the slowdown in the IPTV market. Born on March 17, 1970, in Masan, Gyeongsangnam-do, Park graduated from Changshin High School in Masan and Korea University. He also earned a master's degree in information and communications engineering from the graduate school of Korea University. At SK Telecom, Park worked at the Central Research Institute and the Network Research Institute before becoming the head of the ICT Technology Center, where he also served as the Chief Technology Officer (CTO). In 2020, he was appointed CEO of ADT Caps, and even after the company was renamed SK Shieldus, he remained as its CEO. In 2023, following the sale of SK Shieldus to Sweden’s Wallenberg Group investment company, Park transitioned to lead SK Broadband. In December 2024, despite CEO changes in subsidiaries like SK Telink and SK Planet during SK Group's year-end executive reshuffle, Park retained his position as the head of SK Broadband. Park is the younger brother of Park Jung-ho, Vice Chairman of SK Group and SK Hynix, highlighting a family legacy of professional management within the SK Group. #ParkJinhyo #SKBroadband #SKGroup #IPTV #telecom #KoreaUniversity #SKShieldus #SKTelecom #leadership #ICT
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CEO of SK broadband
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President of Korea Southern Power
Kim Jun-dong
- Kim Jun-dong is the President of Korea Southern Power. He is dedicated to transforming Korea Southern Power into a global energy leader that brightens the future through environmentally friendly energy initiatives. He was born on December 17, 1961, in Uiseong, North Gyeongsang Province. Kim graduated from Yeongshin High School in Daegu and earned a bachelor's degree in Political Science from Seoul National University. He also holds a master's degree in Public Administration from the Graduate School of Public Administration at Seoul National University and a Ph.D. in Economics from the University of Missouri in the United States. After passing the National Civil Service Exam, he began his career as a public official at the Ministry of Commerce, Industry, and Energy. He later served in various roles within the ministry and its successor organizations, including Director of E-Commerce Support at the Ministry of Commerce, Industry, and Energy; Spokesperson, Director-General for New Industry Policy, and Director-General for Climate Change and Energy Resource Development Policy at the Ministry of Knowledge Economy; and Director-General of Energy Resources and Director of Planning and Coordination at the Ministry of Trade, Industry, and Energy. In July 2015, after retiring from public service, Kim took on several significant roles, including Secretary-General of the National Research Foundation of Korea, Executive Vice President of the Korea Chamber of Commerce and Industry, Outside Director and Audit Committee Member of DB HiTek, and Advisor to the law firm Sejong. In November 2024, he was appointed as the President and CEO of Korea Southern Power. #KimJunDong #KoreaSouthernPower #EnergyLeader #CleanEnergy #GlobalEnergy #RenewableEnergy #SouthKorea #Leadership #Sustainability #PublicService
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President of Korea Southern Power
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Minister of Agriculture, Food and Rural Affairs
Song Mi-ryung
- Song Mi-ryung is the Minister of Agriculture, Food and Rural Affairs. She is also the first woman to hold this position in the history of the ministry. Amid increasing uncertainty surrounding rural areas due to climate change and an aging population, she is tasked with ensuring food security and revitalizing the rural economy. Born in 1967 in Nonsan, South Chungcheong Province, Song graduated from Changdeok Girls’ High School in Seoul and Ewha Womans University, majoring in Political Science and Diplomacy (Class of 1985). She earned a master's degree in Urban Planning and a doctorate in Public Administration from Seoul National University. She began her professional career in 1997 as a senior researcher at the Korea Rural Economic Institute. Over the years, she has held several significant roles, including Director of Planning and Coordination, Head of the Agricultural Observation Center, Director of the Agricultural and Rural Policy Research Division, and Head of the Balanced Development Research Unit. In December 2023, she was appointed as the second Minister of Agriculture, Food and Rural Affairs under the administration of President Yoon Suk-yeol. On December 4, 2024, following the state of emergency declared by President Yoon, Song expressed her intent to resign, taking responsibility as a member of the Cabinet. #SongMiRyung #KoreaAgriculture #FoodSecurity #RuralDevelopment #ClimateChange #AgingPopulation #YoonAdministration #KoreanPolitics #WomenInLeadership #AgriculturePolicy
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Minister of Agriculture, Food and Rural Affairs
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CEO of Jeju air
Kim E-bae
- Kim E-bae is the CEO and President of Jeju Air, Korea's leading low-cost carrier (LCC). He is preparing for the emergence of a unified LCC that will appear after the merger of Korean Air and Asiana Airlines. Kim was born on December 10, 1965, in Jangheung, South Jeolla Province. He graduated from Jangheung High School and Seoul National University with a degree in International Economics. He was one of the founding members of Asiana Airlines and worked there for 30 years. During his tenure, he held key positions, including Head of Strategic Management, Executive in charge of Strategic Planning, Head of the Americas Regional Headquarters, and Chief of Business Management. In 2020, Kim joined Jeju Air as CEO. He is credited with successfully improving the company's financial structure through a capital increase and expanding international routes in response to the resumption of travel following the COVID-19 crisis. Kim is known for his pragmatic management style and emphasis on communication with employees. #KimEbae #JejuAir #CEO #KoreanAirlines #LCC #AviationIndustry #BusinessLeadership #CorporateStrategy #COVIDRecovery #AirlineManagement
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CEO of Jeju air
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CEO of SK energy
Kim Jong-hwa
- Kim Jong-hwa is the President of SK Energy, focusing on improving operations at the Ulsan plant and strengthening collaboration with partner companies. Born in July 1967, Kim graduated from Hanyang University with a degree in Industrial Chemistry. He began his career as an engineer at Daehan Yukong, the predecessor of SK Innovation. Over the years, he held several key positions, including Head of Engineering at SK Energy, Vice President and Chief Safety Officer (CSO) at SK Energy, and General Manager of the SK Innovation Ulsan Complex (CLX). In 2024, he was appointed as President of SK Energy. With extensive on-site experience and advanced technical expertise, Kim is focused on enhancing the company’s business capabilities. As a science and engineering professional, he is expected to achieve significant improvements in plant operations. #KimJonghwa #SKEnergy #SKInnovation #UlsanComplex #EngineeringLeadership #IndustrialChemistry #SafetyManagement #PlantOperations #EnergyIndustry #BusinessOptimization
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CEO of SK energy
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CEO of Yuhan Corporation
Cho Wook-je
- Cho Wook-je is the President and CEO of Yuhan Corporation. To achieve the goal of ranking among the top 50 global pharmaceutical companies by 2026, he is focusing on developing new drugs such as "Leclaza," a treatment for non-small cell lung cancer. He was born on January 2, 1955. Cho graduated from Masan High School in Gyeongnam and went on to study Agricultural Chemistry at Korea University. After joining Yuhan Corporation, he worked exclusively in the sales department for 30 years, establishing himself as an expert in sales and marketing. In 2021, he succeeded the former President and CEO Lee Jeong-hee and was appointed as the President and CEO. In March 2024, Cho was successfully re-elected during the annual shareholders’ meeting, extending his term until March 2027. #Yuhan #ChoWookje #pharmaceuticals #Leclaza #non-smallcelllungcancer #CEO #SouthKorea #drugdevelopment #KoreaUniversity #globalpharma
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CEO of Yuhan Corporation
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CEO of Hyundai HT
Lee Gun-koo
- Lee Gun-koo is the CEO of Hyundai HT. As the second-generation owner, he is the son of the late Lee Nae-heun, chairman of Hyundai HT. He was born on July 31, 1976. After earning a degree in Business Administration from the University of Washington, he completed an MBA at Stanford University’s Graduate School of Business. From 2002 to 2008, he worked in the Investment Banking Division at the Korea Development Bank. In 2010, he joined Hyundai Communications (now Hyundai HT) and served as the head of the Sales Division. By 2012, he had been promoted to CEO. He envisions advanced smart homes equipped with artificial intelligence (AI) and the Internet of Things (IoT) as future growth drivers and is focused on enhancing competitiveness in these areas. Additionally, he is working to expand the company’s overseas business, particularly targeting Southeast Asia. #LeeGunkoo #HyundaiHT #smarttechnology #AI #IoT #smartHome #businessleadership #SoutheastAsia #MBA #technology
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CEO of Hyundai HT
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Chairman of the Board of Zinus
Lee Youn-jae
- Lee Youn-jae is the founder and chairman of the board of Zinus. He was born on April 5, 1948, in Gongju, Chungcheongnam-do. He graduated from Daejeon High School and Yonsei University with a degree in Political Science and Diplomacy. In 1975, he began his career at KOTRA (Korea Trade-Investment Promotion Agency). In 1979, he founded Jinwoong Enterprise, which operated under the name Jinwoong and focused on manufacturing and selling camping products, such as tents, until the early 2000s. Jinwoong was delisted in 2005 due to poor performance, but during this period, the company changed its name to Zinus in April 2000. Starting in the mid-2000s, the company shifted its focus to mattresses, pillows, and furniture, successfully relisting on the KOSPI in October 2019 after 14 years. On March 22, 2022, Lee sold Zinus to the Hyundai Department Store Group for KRW 774.7 billion (approximately USD 558.6 million) but continues to participate in management as the chairman of the board. Known for his indomitable entrepreneurial spirit, Lee has overcome numerous crises, including a failed startup, delisting, relisting after 14 years, and a successful exit, earning him a reputation as a true venture entrepreneur. Since selling the company, he has focused on supporting startups by sharing his 40 years of experience as a manager, including both successes and failures, with young entrepreneurs. #LeeYounjae #Zinus #entrepreneurship #venturebusiness #startupsupport #HyundaiDepartmentStoreGroup #mattressIndustry #KOSPIrelisting #businessSuccess #SouthKorea
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Chairman of the Board of Zinus
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CEO of Hyundai Marine & Fire Insurance
Lee Sung-jae
- Lee Sung-jae is the President and CEO of Hyundai Marine & Fire Insurance. He operates within a co-CEO system alongside Vice Chairman Cho Yong-il, overseeing areas such as corporate insurance and digital strategy. Amid changes in the insurance industry, such as the adoption of new accounting standards, Lee is focused on strengthening long-term insurance sales and improving profitability through better automobile insurance performance. Born on February 28, 1960, he graduated from Seoul High School and earned a degree in economics from Sogang University. Lee began his career at Hyundai Marine & Fire Insurance, serving in various roles, including Corporate Sales Director, Head of the Strategic Planning Division, and Head of the Overseas Business Division. After a stint as the CEO of Hyundai C&R, a building management subsidiary of Hyundai Marine & Fire Insurance, he returned to lead the Corporate Insurance Division and later became Executive Vice President. In 2020, he was appointed as co-CEO alongside Vice Chairman Cho Yong-il. With more than 38 years at Hyundai Marine & Fire Insurance, Lee is regarded as a seasoned expert in the insurance industry. He is noted for his ability to identify new business opportunities, particularly in digital innovation. #LeeSungJae #HyundaiMarineFireInsurance #insuranceindustry #digitalinnovation #corporateinsurance #longterminsurance #automobileinsurance #SouthKorea #leadership #businessstrategies
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CEO of Hyundai Marine & Fire Insurance
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CEO of Daehwa Pharmaceutical
Kim Eun-seok
- Kim Eun-seok is the CEO and President of Daehwa Pharmaceutical. He has declared the vision "Dispense in Handy," focusing on the development of improved drugs that enhance convenience for patients. Kim was born on November 20, 1975, to Kim Soo-ji, Honorary Chairman of Daehwa Pharmaceutical, and Lee Myung-hee. He graduated from Sungkyunkwan University with a degree in Industrial Psychology and later earned a master's degree in Business Administration from the same university. After working at Bukwang Pharmaceutical, he joined Daehwa Pharmaceutical in 2008. In 2013, he was promoted to Executive Director. In 2015, at the age of 40, he became the Co-CEO and President of Daehwa Pharmaceutical alongside then-Chairman Roh Byung-tae. In 2024, he was appointed as the sole CEO of Daehwa Pharmaceutical. With 20 years of experience in the pharmaceutical industry, Kim is recognized as an expert in the field. He has expertise in analyzing the global pharmaceutical industry and currently serves as Vice President of the Korea Pharmaceutical Traders Association. Kim is credited with driving the growth of Daehwa Pharmaceutical by completing the construction of the second plant's Building B and advancing the Chinese business of Liporaxel Liquid, an oral anticancer drug. #KimEunseok #DaehwaPharmaceutical #pharmaceuticalindustry #globalpharma #drugdevelopment #businessleader #Liporaxel #KoreaPharmaceuticalTradersAssociation #pharmaceuticalexpert #leadership
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CEO of Daehwa Pharmaceutical
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CEO of Kolmar BNH
Yoon Yea-won
- Yoon Yea-won is the CEO and President of Kolmar BNH. He leads Kolmar BNH, the top-ranked health functional food company in South Korea. As a second-generation leader, he is the son of Yoon Dong-han, the founder and chairman of Korea Kolmar. Yoon was born on October 5, 1976. He graduated from Yonsei University with a degree in Public Administration and earned both a master’s and doctorate in Marketing from Yonsei University’s Graduate School of Business (MBA). Yoon joined Korea Kolmar in 2001, serving as the CEO of HNG, Executive Vice President of Marketing Strategy at Korea Kolmar, and Vice President in charge of Planning and Management at Kolmar BNH, before being promoted to CEO and President in 2020. He pursues aggressive management strategies, including expanding facility investments to grow the company’s scale. He has also focused on expanding international operations. Yoon has set the goal of making Kolmar BNH the "Global No. 1 Provider of Health Functional Food ODM (Original Development Manufacturing)." #YoonYeawon #KolmarBNH #healthfunctionalfood #globalbusiness #leadership #KoreaKolmar #ODMprovider #businessstrategy #internationalexpansion #secondgenerationleadership
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CEO of Kolmar BNH
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Chairman of Daehan Steel
Oh Chi-hoon
- Oh Chi-hoon is the chairman of Daehan Steel. He was born on October 20, 1974, in Busan, South Korea. Oh Chi-hoon is the grandson of Oh Woo-young, the honorary chairman and founder of Daehan Steel, and the eldest son of Oh Wan-soo, the former chairman. His uncle is Oh Keo-don, the former mayor of Busan. After graduating from Dongin High School in Busan, he earned a degree in business administration from Yonsei University. He later completed the "General Management Program" at Harvard Business School in the United States. Daehan Steel, originally founded as a hardware store in Busan's International Market in 1954, has grown into a leading local company in the Busan area, achieving mid-sized enterprise status with sales exceeding KRW 1 trillion (US$ 721.2 million) as of 2023. It is the third-largest rebar manufacturer in South Korea, following Hyundai Steel and Dongkuk Steel. As a third-generation leader, Oh Chi-hoon is credited with driving Daehan Steel's growth. In 2006, he led the company to become the first in South Korea to manufacture and sell coil rebar (BIC, Bar-in-Coil), while also expanding its rebar processing business domestically. These achievements are widely regarded as significant milestones under his leadership. #OhChiHoon #DaehanSteel #SouthKorea #Busan #SteelIndustry #YonseiUniversity #HarvardBusinessSchool #KoreanBusiness #FamilyBusiness #RebarManufacturing
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Chairman of Daehan Steel
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Minister of Patriots and Veterans Affairs
Kang Jung-ai
- Kang Jung-ai is the Minister of Patriots and Veterans Affairs in South Korea. She is actively working to implement the Yoon Suk-yeol administration’s vision of “first-class veterans affairs,” focusing on reforming compensation systems for national merit holders and expanding facilities at veterans' hospitals. She is also involved in the National Seoul National Cemetery redevelopment project and the construction of a second Independence Hall of Korea. Born on May 5, 1957, in Seoul, Kang graduated from Hongik University High School and earned a degree in Business Administration from Sookmyung Women’s University. She obtained her master’s in Business Administration from Sookmyung Women’s University Graduate School and later completed her Ph.D. in Human Resource Economics at Paris 1 University in France. Kang served as a professor in the Business Administration Department at Sookmyung Women’s University while holding various public roles, including member of the Minimum Wage Council, civilian member of the Presidential Regulatory Reform Committee, chair of the Self-Evaluation Committee of the Ministry of Personnel Management, and member of the Veterans Fund Management Deliberation Committee of the Ministry of Patriots and Veterans Affairs. She also served as president of Sookmyung Women’s University. In 2023, Kang was appointed as the second Minister of Patriots and Veterans Affairs. #KangJungAi #MinistryOfPatriotsAndVeteransAffairs #SouthKorea #VeteransAffairs #NationalCemetery #IndependenceHall #HigherEducation #SookmyungWomensUniversity #YoonSukYeolAdministration #PublicService
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Minister of Patriots and Veterans Affairs
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CEO of Timefolio Asset Management
Hwang Sung-hwan
- Hwang Sung-hwan is the Co-CEO and President of Timefolio Asset Management, leading the company alongside Kim Hong-gi. Hwang is focused on expanding Timefolio Asset Management's operations from private equity to the public market, establishing it as a comprehensive asset management company. He was born on October 23, 1976, in Uiseong, North Gyeongsang Province. Hwang graduated from Gwangju's Chosun University High School and earned a degree in Earth and Environmental Engineering from Seoul National University. He began his career at Daewoo Securities, working in the dealing room on investment operations, but left after a year to start his own company. He acquired a private equity fund and established "Timefolio & Company," renaming it to Timefolio Asset Management in 2016. Hwang is a legendary figure in the investment industry, starting with KRW 16 million (approximately USD 11,500) in stock investments during college and rising to become the head of an asset management firm overseeing trillions of won. #HwangSungHwan #Timefolio #AssetManagement #SouthKorea #Investment #PrivateEquity #PublicMarket #Finance #Entrepreneurship #SeoulNationalUniversity
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CEO of Timefolio Asset Management
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President of Inha University
Cho Myeong-woo
- Cho Myeong-woo is the President of Inha University. He was born on May 23, 1960. He graduated from Seoul National University with a degree in Mechanical Design. He earned a master's degree in Mechanical Design from the Graduate School of Seoul National University and a Ph.D. in Engineering from the University of Illinois in the United States. After serving as a professional advisor at the Korea Productivity Center and as the head of the Systems Division at Daewoo Electronics, he was appointed as a professor in the College of Engineering at Inha University in 1997. He served as the Deputy Director of the Industry-Academia Cooperation Project Team and the Vice President for Academic Affairs before being appointed President of Inha University in 2018. He was reappointed in 2022. He has served three terms as Chairman of the Council of University Presidents in the Gyeongin Area and is currently the Chairman of the Incheon Presidents Forum and the Korea University Sports Federation. To mark the 70th anniversary of Inha University's founding, he presented the vision of building a "Global Multiversity Leading Future Value Creation." #ChoMyeongwoo #InhaUniversity #KoreanEducation #GlobalMultiversity #IncheonLeadership #UniversityPresident #AcademicExcellence #HigherEducation #EngineeringExpertise #Korea
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President of Inha University
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CEO of Enchem
Oh Jung-kang
- Oh Jung-kang is the CEO of Enchem. He is striving to diversify the company's portfolio, moving beyond its core business structure centered on electrolytes for secondary batteries. Born in August 1971, he graduated from Songdo High School in Incheon and majored in Chemical Engineering at Ajou University and its graduate school. In 2008, he worked as a senior researcher at Cheil Industries, where he was responsible for developing electrolytes for secondary batteries. In 2012, he founded Enchem in Jecheon, Chungcheongbuk-do, establishing an electrolyte manufacturing plant with an initial capital of KRW 1 billion (USD 721,000). As a CEO, he adheres to the management philosophy of "purely technology," emphasizing that a company's value lies in the recognition of its technological prowess. Notably, since the company's early years in 2013, he set a goal of becoming the global market leader and has been recognized for his practical managerial skills by steadily working toward this ambition. #OhJungkang #Enchem #CEO #Electrolytes #SecondaryBatteries #ChemicalEngineering #TechnologyDriven #Leadership #GlobalMarket #BatteryIndustry
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CEO of Enchem
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CEO of LINA Life Insurance
Cho Jee-eun
- Cho Jee-eun is the President and CEO of LINA Life Insurance. She focuses on strengthening telemarketing competitiveness, leveraging the company's unique position as the only insurance company in the industry specializing in telemarketing. She also faces the task of creating synergy for the integrated LINA brand. Born on April 7, 1975, she graduated from Daewon Foreign Language High School and the College of Nursing at Seoul National University. She later attended the Graduate School of Interpretation and Translation at Hankuk University of Foreign Studies and earned an MBA from Duke University's Fuqua School of Business in the United States. Cho’s career includes roles as an analyst at LG Investment & Securities, Chief Marketing Officer (CMO) at MetLife Korea, and head of operations at Sun Life Financial’s Korea branch. She joined LINA Life Insurance in 2011 and was appointed CEO in 2020. At the time of her appointment, she was the youngest CEO in the insurance industry and its only female CEO. As of 2024, she is serving her third term. She holds various financial certifications and is known for her exceptional English proficiency. #ChoJeeun #LINALifeInsurance #InsuranceIndustry #Telemarketing #WomenLeadership #CEO #Korea #FinancialExpertise #DukeMBA #InsuranceInnovation
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CEO of LINA Life Insurance
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Chairman of JS Corporation
Hong Jae-sung
- Hong Jae-sung is the founder and Chairman of JS Corporation. He was born in September 1954 in Seoul, South Korea. After graduating from Kyungbock High School in Seoul, he briefly attended Seoul Institute of the Arts but did not complete his studies. In 1981, he joined the American fashion company Circo International and worked as the head of its Korean branch. In 1985, he established JS Corporation, a handbag manufacturing company, named after his English initials. In 2014, JS Corporation merged with CHO Limited, and in 2020, it acquired Yakjin Trading Corporation, entering the knitwear manufacturing business. He was also known as a "super ant" investor for his exceptional investment acumen, achieving significant profits through investments in companies like VirtualTek and Barunson. #HongJaeSung #JSCorporation #KoreanEntrepreneur #HandbagManufacturer #KnitwearBusiness #FashionIndustry #Investor #SuperAnt #BusinessLeader #CorporateAcquisition
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Chairman of JS Corporation
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Chairman of CoAsia
Lee Hee-jun
- Lee Hee-jun is the Chairman and CEO of CoAsia. He leads CoAsia and its affiliates, which operate in the system semiconductor, camera and lens module, and LED businesses. He was born on January 24, 1962, in Seoul. Lee graduated from Baemyung High School in Seoul and earned a degree in electronic engineering from Konkuk University. After graduating from university, he worked in the domestic sales department at Samsung Electronics and later as a resident officer in Taiwan. While in Taiwan, he founded CoAsia Electronics, a company specializing in the distribution of electronic components and solutions. In 2015, he acquired the domestic camera module company BSE Holdings (now CoAsia), reorganizing the business with a focus on Korea. In 2019, he established CoAsia Semi, a company specializing in foundry design solutions. Lee views the Design Solution Partner (DSP) business, which bridges fabless and foundry in the system semiconductor ecosystem, as a core driver of future growth. #LeeHeeJun #CoAsia #systemsemiconductors #DSPbusiness #cameramodules #LEDindustry #foundrydesign #CoAsiaSemi #Koreanbusiness #electronicsindustry
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Chairman of CoAsia
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Chairman of Shinan Group
Park Soon-seok
- Park Soon-seok is the Chairman of Shinan Group and the Chairman of the Board at Husteel. He was born on November 29, 1944, in Sinan, Jeollanam-do, the hometown of former President Kim Dae-jung. At the age of 13, Park moved to Seoul and worked as a laborer to save money. At the age of 37, in 1980, he founded Sinan General Construction, the foundation of what would become Shinan Group. In 2001, he acquired Shinho Steel, a manufacturer of steel pipes, and in 2002, renamed it Husteel. Husteel is the only publicly listed company within Shinan Group. Park manages the company alongside his eldest son, Park Hoon, who serves as the CEO of Husteel. Under Park’s leadership, Shinan Group has grown into a mid-sized conglomerate ranked around 60th in terms of assets in South Korea, with more than 20 subsidiaries spanning construction, services, and finance. As of 2024, at the age of 80, Park remains actively involved in business as the Chairman of Husteel’s Board of Directors. #ParkSoonSeok #ShinanGroup #Husteel #businessleader #constructionindustry #familybusiness #SouthKorea #corporategovernance #steelindustry #midtierconglomerate
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Chairman of Shinan Group
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Chairman of UNID
Lee Wha-young
- Lee Wha-young is the Chairman and CEO of UNID. He was born on May 16, 1951, in Seoul. Lee is the third son among six children (three sons and three daughters) of Lee Hoe-rim, the founder of Dongyang Chemical Industrial (now OCI Group). His older brothers include the late Lee Soo-young, former Chairman of OCI, and Lee Bok-young, Chairman of Samkwang Glass. Lee joined Dongyang Chemical Industrial in 1977 and held various leadership roles, including President of OCI Trading in 1994 and Executive Vice President of Dongyang Chemical Industrial in 1995. Since 1997, he has served as both President and Chairman of UNID. Carrying on his father’s philosophy of “domestic production of potassium products,” Lee has dedicated over 40 years to the chemical industry, achieving a global milestone by securing UNID's position as the world’s leading company in market share for potassium-based chemical products. #LeeWhaYoung #UNID #OCIGroup #chemicalindustry #businessleader #potassiumproducts #marketleader #SouthKorea #LeeHoeRim #familybusiness
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Chairman of UNID
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President of the Business Support T/F at Samsung Electronics
Park Hark-kyu
- Park Hark-kyu is the President in charge of the Business Support Task Force (T/F) at Samsung Electronics. He also serves as an internal director for both Samsung Electronics and its key affiliate, Harman. Born on November 10, 1964, in Cheongju, Chungcheongbuk-do, Park graduated from Cheongju High School and earned a bachelor's degree in Business Administration from Seoul National University. He also holds a master's degree in Management Science from the Korea Advanced Institute of Science and Technology (KAIST). Park is recognized as a financial expert, having started his career in the Finance Team of Samsung Group's Secretariat Office. He has held various leadership roles, including Head of the Management Diagnosis Team at the now-defunct Future Strategy Office, Executive Vice President overseeing business operations at Samsung SDS, and President of the Management Support Division in the Device Solutions (DS) business unit at Samsung Electronics. Park played a key role in leading Samsung Group's corporate mergers and acquisitions (M&A). He is known for his meticulous self-management, strong execution skills, and flexible thinking. #ParkHarkKyu #SamsungElectronics #Harman #SamsungSDS #businessleader #MergersAndAcquisitions #financeexpert #KAIST #SeoulNationalUniversity #SouthKorea
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President of the Business Support T/F at Samsung Electronics
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President of Yeungnam University
Choi Oe-chool
- Choi Oe-chool is the president of Yeungnam University. He was born in 1957. Choi graduated from the Department of Regional Community Development at Yeungnam University. He earned a master’s degree in public administration from the Graduate School of Hannam University and a doctorate in public administration from the Graduate School of Daegu University. At Yeungnam University, he held various key positions, including Dean of the Park Chung Hee School of Policy and Saemaul, Director of the Park Chung Hee Leadership Institute, Director of External Affairs, and Vice President for External Affairs, before being appointed president in 2021. In 2024, he successfully secured a second term as president. In 2012, during the Saenuri Party’s presidential primary, he served as a special advisor for planning and coordination in Park Geun-hye’s presidential campaign. He also worked as a special advisor for planning and coordination for Park Geun-hye, the Saenuri Party’s presidential candidate. Known as the founder of "Saemaul Studies," Choi is dedicated to sharing economic development strategies with developing countries and promoting the Saemaul spirit globally. #YeungnamUniversity #ChoiOeChool #SaemaulStudies #ParkChungHee #education #publicadministration #SaenuriParty #ParkGeunHye #SouthKorea #leadership
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President of Yeungnam University
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Vice Chairman of Kyungdong Pharm
Ryu Ki-sung
- Ryu Ki-sung is the vice chairman and CEO of Kyungdong Pharmaceutical. As a second-generation owner-manager, he leads Kyungdong Pharmaceutical alongside professional manager Kim Kyung-hoon. He also serves as the CEO of unlisted subsidiaries Ryuil International and KD Pharma. He aims to grow Kyungdong Pharmaceutical into a comprehensive healthcare company by expanding skincare, healthcare businesses, and securing a new drug pipeline. Born on June 21, 1982, as the son of Ryu Deok-hee, honorary chairman of Kyungdong Pharmaceutical. He graduated from Kangnam University with a degree in Business Administration and obtained a master's degree from Sungkyunkwan University Graduate School of Business. He joined Kyungdong Pharmaceutical, held positions such as planning and coordination director, and became the CEO of Ryuil International in 2007. In 2011, he became the CEO and vice chairman of Kyungdong Pharmaceutical. He became the CEO of Kyungdong Pharmaceutical at the young age of 30. He introduced a decentralized organizational system and showed leadership by motivating promotions within the company. However, there are doubts about Ryu Ki-sung's management capabilities. #RyuKiSung #KyungdongPharmaceutical #SecondGenerationCEO #HealthcareBusiness #SkincareExpansion #Leadership #BusinessAdministration #NewDrugPipeline
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Vice Chairman of Kyungdong Pharm
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Chairman of KFTC
Oh Won-suk
- Oh Won-suk is the Chairman and CEO of KFTC. He is the founder of KFTC (Korea Fuel-Tech Corporation), the leading domestic company specializing in eco-friendly automotive parts such as carbon canisters. He was born on February 14, 1953, in Seoul. Oh graduated from Seoul Kyunggi High School and Seoul National University with a degree in Mechanical Engineering. After working at Hyundai Yanghaeng, Daewoo Shipbuilding & Marine Engineering, and Korea Air Tech, he founded the automotive parts company Dayco Korea (now KFTC) in 1996. He was the first in Korea to localize the production of carbon canisters, which absorb and recirculate automotive engine combustion gases, as well as filler necks, which connect fuel caps to fuel tanks. Oh is actively working to expand sales of carbon canisters for hybrid vehicles. During his time at Daewoo Shipbuilding & Marine Engineering, he was inspired by the "Global Management" philosophy introduced by the late Kim Woo-Choong, the Chairman of Daewoo Group, and aims to carry on this legacy. #OhWonsuk #KFTC #CarbonCanister #EcoFriendlyTechnology #AutomotiveParts #HybridVehicles #GlobalManagement #SeoulNationalUniversity #KoreaAutomotiveIndustry #Innovation
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Chairman of KFTC
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CEO of IBK Securities
Suh Jung-hak
- Suh Jung-hak is the CEO and President of IBK Securities. He is focused on improving IBK Securities' underwhelming performance and leveraging its strengths as a securities firm specializing in supporting small and medium-sized enterprises (SMEs). Suh was born on October 15, 1963, in Jincheon, Chungcheongbuk-do. He graduated from Kyungsung High School in Seoul and earned a degree in English Literature from Dongguk University. In 1989, he joined the Industrial Bank of Korea (IBK) and has dedicated over 30 years to the IBK Financial Group, making him a quintessential "IBK man." He was appointed CEO and President of IBK Securities in 2023. Throughout his career, Suh has primarily handled investment banking (IB) operations and gained extensive overseas work experience. Known for his gentle personality, he is often seen with a warm smile. #IBKSecurities #SuhJungHak #CEOProfile #InvestmentBanking #SmallBusinesses #IBKFinancialGroup #KoreaFinance #Leadership #CorporateProfile #FinanceExpert
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CEO of IBK Securities
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CEO of Com2uS
Nam Jae-kwan
- Nam Jae-kwan is the CEO of Com2uS. As a financial expert, he is focused on improving Com2uS’s performance and enhancing its global competitiveness. He was born on January 9, 1973. Nam graduated from Korea University with a degree in economics. He previously served as CFO and Head of New Business Strategy Group at Daum Communications, as well as CFO of Kakao Games, CFO of Kakao IX, Vice President of Kakao, and CFO of Kakao Ventures. On July 3, 2023, he joined Com2uS as Vice President and Head of the Business Strategy Division, overseeing the company’s overall management. On March 29, 2024, he was appointed CEO of Com2uS. The previous CEO, Lee Ju-hwan, transitioned to the role of Production General Manager to focus on game development. Nam successfully led Com2uS to three consecutive quarters of profitability in 2024, following a prolonged period of losses. He is focused on increasing performance through the self-development and publishing of new games. Nam rarely engages in public activities beyond conference calls, with few publicly available photos of him. #Com2uS #NamJaeKwan #CEO #KoreanGaming #GlobalCompetitiveness #FinancialExpert #GameDevelopment #Publishing #Leadership #Profitability
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CEO of Com2uS
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Chairman of Sajo Group
Choo Chin-woo
- Choo Chin-woo is the chairman of Sajo Group. He also serves as a non-executive director for Sajo Daerim and Sajo Dongawon. Born on August 28, 1949, in Seongju, Gyeongsangbuk-do, he is the eldest son of Choo In-yong, the founder of Sajo Industries. Choo graduated from Kyunggi High School and Seoul National University with a degree in political science. He later earned a master’s degree in political science from Columbia University and a doctorate in political science from Hanyang University. After inheriting the management of Sajo Group, founded by his father, Choo expanded it into a comprehensive food company with annual revenue of KRW 4 trillion (USD 2.89 billion). Initially focused on the fishing industry, Sajo Industries expanded into livestock, leisure, and IT sectors under Choo’s leadership, driven by his proactive mergers and acquisitions (M&A) strategy. Leveraging his political science background, Choo entered politics and served as a member of the 15th and 16th National Assemblies under the Grand National Party. He is often described as a "risk-taker." #ChooChinWoo #SajoGroup #KoreanBusiness #PoliticalScience #MergersAndAcquisitions #Leadership #GrandNationalParty #FoodIndustry #CorporateExpansion #RiskTaker
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Chairman of Sajo Group
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Chairman of hy
Yoon Ho-joong
- Yoon Ho-joong is the chairman of the hy Group. He was born in 1970 as the only son of Yoon Deok-byeong, the founder of Korea Yakult (now hy). In 1995, he graduated from Keio University in Japan with a degree in economics. That same year, he joined Korea Yakult. He was promoted to Senior Executive Vice President in 2004, Vice Chairman in 2012, and became Chairman in 2020. Known for rarely appearing in public, he is often referred to as a "reclusive owner." Following the management philosophy established by his father, Yoon delegates overall management to professional executives and does not actively involve himself in daily operations. Instead, he focuses on discovering future growth engines, investing in new businesses, and pursuing acquisitions. In 2021, he personally led the effort to rebrand the company as "hy," driving a major transformation from a food and beverage company to a distribution platform group. #YoonHoJoong #hyGroup #KoreanBusiness #CorporateLeadership #KeioUniversity #ReclusiveOwner #BrandTransformation #NewBusinessInvestment #FutureGrowth #FoodAndBeverageIndustry
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Chairman of hy
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President of Soongsil University
Jang Beom-sik
- Jang Beom-sik is the President of Soongsil University. He was born in 1957. Jang graduated from Seoul National University with a degree in English Education and earned a master’s degree in Business Administration from the same university. He later obtained a Ph.D. in Business Administration from the University of Texas at Austin. He worked at the Korea Development Bank and the Korea Securities Research Institute before joining Soongsil University as a professor in the School of Business in 1995. Jang has held various prominent positions, including Chair of the Audit Committee at the Korea Exchange, Chair of the Financial Supervision Advisory Committee and Financial Reform Promotion Committee at the Financial Supervisory Commission, and Advisor to Korea Securities Finance Corporation. Since 2020, he has served as Chair of the Board at Samsung Securities. At Soongsil University, Jang has held roles such as Dean of the Graduate School of Business, Dean of the Graduate School of Labor Relations, and Vice President for Academic Affairs, before being appointed President in 2021. He is dedicated to fostering AI engineers and interdisciplinary professionals specializing in AI integration. #JangBeomsik #SoongsilUniversity #SeoulNationalUniversity #UniversityofTexas #businessadministration #SamsungSecurities #AIeducation #highereducation #universityleadership #academicachievement
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President of Soongsil University
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Vice Chairman of Hanwha Life Insurance
Yeo Seung-joo
- Yeo Seung-joo is the Vice Chairman and CEO of Hanwha Life Insurance. He has been strengthening market dominance and expanding the sale of highly profitable protection-type insurance products, leveraging the enhanced corporate insurance agency (GA) network following the acquisition of People Life. Born on July 12, 1960, in Seoul, he graduated from Kyungbok High School and studied mathematics at Sogang University. Yeo began his career at Kyungin Energy, a subsidiary of Hanwha Group at the time. Later, he joined Korea Life Insurance, where he served as the Head of the Finance Team and the Director of Strategic Planning, overseeing the company's listing on the KOSPI. As the Head of Strategic Planning for Hanwha Group, he led the acquisition of Samsung Group's chemical affiliates. He was then appointed CEO of Hanwha Investment & Securities, where he helped the company recover from losses in equity-linked securities (ELS) and established a foundation for operational normalization. Yeo served as the co-CEO and President of Hanwha Life Insurance before taking on the role of sole CEO following Vice Chairman Cha Nam-kyu's retirement. In 2023, he was promoted to Vice Chairman and CEO. Recognized as a financial and strategic expert representing Hanwha Group, Yeo is known for his keen ability to analyze financial markets and exceptional crisis management skills. #YeoSeungjoo #HanwhaLife #insurance #financialexpert #HanwhaGroup #PeopleLife #protectioninsurance #businessleadership #crisismanagement #financialmarkets
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Vice Chairman of Hanwha Life Insurance
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CEO of Eubiologics
Baik Yeong-ok
- Baik Yeong-ok is the CEO of Eubiologics. He was born on September 9, 1962. Baik graduated from Seoul National University with a master’s degree in Veterinary Microbiology and earned a doctorate in Biotechnology from Korea University. He began his career at Green Cross Veterinary Products Research Center and later worked at CJ CheilJedang’s Pharmaceutical Business Division for 18 years, focusing on vaccine development. During his tenure at CJ CheilJedang, he held positions such as Head of Technology, Head of Production, and Head of Quality Assurance (QA). Afterward, he served as Head of the Bioprocess Division at the Korea Institute of Industrial Technology. As plans for establishing the biotech company Eubiologics took shape, Baik Yeong-ok, recognized for his expertise, was brought on as a specialist to manage the company. His contributions to the company’s founding earned him the role of CEO in 2012, a position he has held ever since. Baik views vaccines as the "flower of life sciences." Under his leadership, Eubiologics has grown into a company poised to surpass KRW 100 billion (approximately USD 72.1 million) in annual revenue by 2024. #BaikYeongok #Eubiologics #biotechnology #vaccine #lifesciences #KoreaUniversity #SeoulNationalUniversity #CJCheilJedang #leadership #biotechindustry
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CEO of Eubiologics
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CEO of Samsung E&A
Namkoong Hong
- Namkoong Hong is the CEO and President of Samsung E&A. He focuses on expanding orders in the Middle East and Southeast Asia by leveraging a strategy linked to Front-End Engineering Design (FEED). He is also committed to securing future growth engines by investing in business development and technology acquisition in eco-friendly energy fields such as hydrogen, ammonia, and carbon neutrality. Born in August 1965, Namkoong graduated from Sangmoon High School in Seoul and earned a bachelor’s degree in Mechanical Engineering from Inha University. He also completed an MBA program at the Helsinki School of Economics in Finland. He began his career in the export department of Hyosung's automotive parts division. Namkoong later joined Samsung Engineering (now Samsung E&A), where he held key roles, including Head of Marketing Planning, Head of Marketing Group 1, and Director of SEUAE, the company’s Middle East regional headquarters. After serving as Executive Vice President and Head of the Plant Business Division, he was appointed CEO and President of Samsung Engineering in 2023. He continues to lead the company following its name change to Samsung E&A. Namkoong's personal motto is "Bul Gwang Bul Geup" (不狂不及), meaning "Without obsession, one cannot reach excellence." #NamkoongHong #SamsungEA #engineering #FEEDstrategy #MiddleEast #ecoenergy #hydrogen #ammonia #carbonneutrality #businessleadership
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CEO of Samsung E&A
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CEO of POSCO Holdings
Jeong Ki-seop
- Jeong Ki-seop is the CEO and President of POSCO Holdings, the holding company of the POSCO Group. He also serves as the Chief Strategy Officer (CSO), overseeing financial operations and overall business strategies. He focuses on enhancing the corporate value of the POSCO Group by concentrating the company’s resources on its two main business sectors: steel and secondary battery materials. Jeong Ki-seop was born on October 4, 1961. He graduated from Yonsei University with a degree in Business Administration. He began his career at Daewoo Heavy Industries and later worked at Daewoo International (now POSCO International). When the company was acquired by POSCO, he became part of the POSCO team. Jeong is recognized as a financial expert with extensive experience across various subsidiaries of the POSCO Group, having held positions such as Head of the Business Planning Office at Daewoo International, Finance Committee Member at POSCO's Value Management Center, and Head of Planning and Support at POSCO Energy. He also served as the CEO of POSCO Energy. Returning as the Chief Financial Officer (CFO) of POSCO Holdings, Jeong became the first externally recruited CFO in the history of the POSCO Group. #JeongKiSeop #POSCO #POSCOHoldings #SteelIndustry #BatteryMaterials #FinancialExpert #CFO #POSCOEnergy #DaewooInternational #CorporateStrategy
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CEO of POSCO Holdings
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CEO of Park Systems
Park Sang-il
- Park Sang-il is the founder and CEO of Park Systems. He is accelerating efforts to expand market share in the atomic force microscope (AFM) sector through mergers and acquisitions as well as the launch of new products. Born on August 11, 1958, Park attended Seoul Dongseong High School and earned a degree in Physics from Seoul National University. He later obtained a Ph.D. in Applied Physics from Stanford University in the United States and completed the AEA-Stanford Executive Institute Program, a collaborative executive education initiative between the American Electronics Association (AEA) and Stanford University. After earning his doctorate at Stanford, Park founded "Park Scientific Instruments" in the United States in 1988, where he successfully commercialized the world’s first atomic force microscope. After selling the company, he returned to Korea and established PSIA (now Park Systems), taking on the role of CEO. Park has held various roles, including Advisory Board Member of the Korean Society of Semiconductor & Display Technology, Vice President of the Korean Physical Society, Director of the Korean Vacuum Society, and Member of the KOSDAQ Market Listing Committee. He also served as an advisory member of the Presidential Advisory Council on Science and Technology and as a member of the Future Preparation Committee under the Ministry of Science, ICT and Future Planning in 2014. He is an active full member of the National Academy of Engineering of Korea and has served as President of the Institute of Control, Robotics and Systems (ICROS). Park is regarded as a pioneer for commercializing the world’s first atomic force microscope. As a child, he dreamed of becoming a scientist like Edison. #ParkSangIl #ParkSystems #AtomicForceMicroscope #AFM #SemiconductorTechnology #StanfordUniversity #KoreanEngineering #PioneeringScientist #ScienceAndTechnology #CorporateLeadership
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CEO of Park Systems
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CEO of KONA I
Cho Chung-il
- Cho Chung-il is the Chairman and CEO of KONA I, a fintech company specializing in smart cards and payment platforms. He was born on January 24, 1962, in Seoul. Cho graduated from Daekwang High School and earned a degree in Physics from Sungkyunkwan University. After working at Daewoo Telecom and Korea Information & Communications, he founded KB Technology, the predecessor of KONA I, in 1998. In its early days, the company developed Korea’s first integrated transportation card system for buses and subways, laying the foundation for its growth. Subsequently, Cho shifted focus to the smart card business utilizing IC chips, establishing KONA I as the leading company in this field in Korea. He sees the company’s integrated prepaid payment system, “Kona Plate,” as a new growth driver and is actively working to expand its market presence. #ChoChungIl #KONAI #SmartCards #PaymentPlatforms #Fintech #TransportationCards #KonaPlate #Entrepreneurship #Innovation #BusinessLeadership
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CEO of KONA I
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Vice Chairman of Hansae
Kim Ik-whan
- Kim Ik-whan is the Vice Chairman and CEO of Hansae. He was born on September 15, 1976, as the second son of Kim Dong-nyung, Chairman of Hansae Yes24 Holdings and the founder of the Hansae Yes24 Group. Kim Ik-whan graduated from Korea University with a degree in Philosophy. In 2002, he began his career at LG Distribution before earning an MBA from George Washington University in the United States. After working at the American clothing company Abercrombie & Fitch, he joined Hansae in 2004 as an assistant manager in the Management Support Team. In 2017, he was appointed CEO of Hansae, and in January 2020, he was promoted to Vice Chairman and CEO. #KimIkwhan #Hansae #KoreanBusiness #Leadership #MBA #GeorgeWashingtonUniversity #HansaeYes24Holdings #FashionIndustry #CorporateLeadership #KoreaUniversity
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Vice Chairman of Hansae
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Chairman of Orion Group
Tam Chul-gon
- TAM Chul Gon is the chairman of the Orion Group. He established independence from the Dongyang Group and has been leading the Orion Group. While diversifying the business into areas such as distribution, media, film, and dining, he struggled to achieve notable results. He is now refocusing on the food industry, aiming to transform Orion into a comprehensive food company. Born on June 6, 1955, in Daegu, Gyeongsangbuk-do, he hails from a Taiwanese-Chinese family that operated a traditional Korean medicine clinic. During middle school, he attended the Seoul Foreign School and later graduated from George Washington University with a degree in business administration. At Seoul Foreign School, he met Lee Hwa Kyung, the second daughter of Dongyang Group founder Lee Yang Goo, and they eventually married. TAM joined Dongyang Cement as a manager, and within a year, transitioned to Dongyang Confectionery. He worked as vice president and, after the passing of founder Lee Yang Goo, inherited managerial control and was appointed CEO and president of Dongyang Confectionery. After separating Dongyang Confectionery from the Dongyang Group, he renamed the company Orion and became its chairman. However, both he and his wife, Vice Chairwoman Lee Hwa Kyung, stepped down as registered directors of Orion. TAM is praised for his keen ability to read trends and prepare the company for the future. However, he has faced criticism for exacerbating owner-related risks, particularly due to controversies including a conviction for embezzlement. #TAMChulGon #OrionGroup #SouthKorea #businessleadership #corporategovernance #management #businessdiversification #entrepreneurship #corporaterisks #businesshistory
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Chairman of Orion Group
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CEO of Krafton
Kim Chang-han
- Kim Chang-han is the CEO of Krafton. To diversify Krafton’s revenue structure, which relies heavily on the game "PUBG: Battlegrounds," he is focusing on developing new games. He was born on September 13, 1974, in Seoul. He graduated from Seoul Science High School and the Computer Science Department of KAIST, where he also earned his master’s and doctorate degrees. While pursuing his doctorate, he worked as a developer, planner, and technical team leader at the gaming company "IMagic." Later, he moved to "Nextplay" as the CTO and technical director. After obtaining his doctorate, he served as the CTO and development producer at "Ginno Games." Following the acquisition of Ginno Games by Bluehole (now Krafton), he became the head of development at Bluehole Ginno Games (now PUBG). Later, he was appointed as the CEO of PUBG and Krafton. He is called the "Father of PUBG," which holds the record as the 5th best-selling game globally. He is known as a "hardworking genius." Despite 17 years of repeated failures, he never gave up and continued his path, eventually achieving remarkable success. #Krafton #KimChanghan #PUBG #gamingindustry #revenuegrowth #gameinnovation #KoreanCEO #KAIST #gamebusiness #diversification
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CEO of Krafton
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Chairman of Eusu Holdings
Choi Eun-young
- Choi Eun-young is the chairperson of Eusu Holdings (formerly Hanjin Shipping Holdings). She also serves as the chairperson of the subsidiary CyberLogitec. She was born on May 3, 1962, as the eldest daughter of Shin Jeong-sook, the younger sister of the late Shin Kyuk-ho, former chairman of the Lotte Group. Choi graduated from Seoul Seongshim Girls' High School and the Department of English Literature at Seongshim University in Tokyo, Japan. Choi Eun-young is the daughter-in-law of the late Cho Joong-hoon, the founder of Hanjin Group, and the wife of the late Cho Su-ho, former chairman of Hanjin Shipping. After being a housewife for many years, Choi entered the business world in March 2007, following the death of her husband Cho Su-ho in 2006. She became the vice-chairperson of Hanjin Shipping. In December 2009, she assigned the shipping business to a newly established company, Hanjin Shipping, and changed the name of the parent company to Hanjin Shipping Holdings. In November 2014, she sold all shares of Hanjin Shipping to her brother-in-law, the late Cho Yang-ho, former chairman of Hanjin Group, completing the separation between Hanjin Group and Hanjin Shipping Holdings. The name of Hanjin Shipping Holdings was also changed to Eusu Holdings. Eusu Holdings primarily focuses on logistics, but under Choi's leadership, the company expanded into the food and retail industries. She values communication with employees so much that she prefers to be called “Dongdaemun (DDM)” rather than “Chairperson.” DDM is a nickname derived from the code for owner-managers, "DD," with the addition of "M" for Madam, symbolizing her leadership style. #ChoiEunyoung #EusuHoldings #HanjinShipping #CyberLogitec #logistics #shipping #businesswoman #HanjinGroup #femaleCEO #Dongdaemun
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Chairman of Eusu Holdings
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CEO of K Car
Jung In-gook
- Jung In-gook is the CEO of K Car, a direct-operated used car platform company. He was born on November 30, 1970, in Busan. He graduated with a degree in Business Administration from Pusan National University and completed a Master's degree in Social Welfare from Yonsei University's Graduate School of Public Administration. In 1995, he joined SK Group and co-founded SK Encar, the predecessor of K Car, in 2000 as an in-house venture of SK Group. He has held various positions, including Head of the Comprehensive Planning Department at Encar Network, Head of the Retail Business Division at SKC&C Encar, and Head of the Retail Business Division at SK Encar. Since the launch of K Car in October 2018, he has served as the CEO. With a background as a salaried professional, he has led the transparency and modernization of the domestic automotive e-commerce sector for 24 years. #JungIngook #KCar #usedcarplatform #automotiveecommerce #SKGroup #SKEncar #socialwelfare #YonseiUniversity #Busan #CEO
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CEO of K Car
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Chairman of the Board at Hongik University
Lee Myeon-young
- Lee Myeon-young is the chairman of the board of trustees at Hongik University. He is a cousin of Lee Do-young, the former chairman who took over Hongik University. Lee Myeon-young was born in 1933 in Seoul. He graduated from the Department of Agricultural Chemistry at Seoul National University. He earned a master's degree from Korea University's Graduate School of Business Administration and a Ph.D. in Business Administration from Sungkyunkwan University. In 1966, he began his career as a professor at Hongik University. In 1985, he was appointed president of Hongik University for the first time and served four consecutive terms. Since 1997, he has been the chairman of the Hongik University Foundation for nearly 30 years. He has focused his efforts on establishing the Hwaseong Fourth Industrial Revolution Campus, improving educational infrastructure, and ensuring excellence in research and education. Hongik University, renowned for its prestigious College of Fine Arts, is also known as the university with the largest reserve funds. In response to demands for improvements in poor educational conditions, the university is pursuing the New Hongik Project. #LeeMyeonYoung #HongikUniversity #educationleadership #highereducation #NewHongikProject #HwaseongCampus #SouthKorea #educationexcellence #universityfunding #FourthIndustrialRevolution
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Chairman of the Board at Hongik University
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Chairman of Soulbrain Holdings
Chung Ji-wan
- Chung Ji-wan is the Chairman and Board Chairperson of Soulbrain Holdings. He also serves as a board member for affiliated companies such as Soulbrain SLD, Soulbrain MI, ARK Diagnostics, UP System, and CJW Global. Additionally, he holds positions as a non-executive director at Now IB Capital and co-CEO of Kingsdale. Chung has served as Director, Vice President, and President of the KOSDAQ Association and currently holds the title of Honorary President as of 2024. Born on October 18, 1956, in Daejeon, Chungcheongnam-do, Chung graduated from Chungnam High School in Daejeon and majored in Chemical Engineering at Sungkyunkwan University. He began his career at Seongwon Trading, a trading company, where he gained four years of experience in international trade. He then founded Techno Trading, the predecessor of Soulbrain Holdings. Chung later served as CEO and Chairman of Soulbrain Holdings but stepped down as CEO in 2022, retaining his roles as Chairman and Board Chairperson. Chung Ji-wan is regarded as one of Korea's pioneering first-generation venture entrepreneurs. At the age of 31, he founded Techno Trading, transforming it into Soulbrain, a dominant player in semiconductor and panel material sectors. Chung initially focused on importing semiconductor materials from Japan, fostering the dream of localizing semiconductor chemical materials. By establishing joint ventures with Japanese chemical companies, he successfully localized semiconductor chemical materials in Korea. He diversified the company’s business into panel chemical materials and expanded into secondary batteries and OLED panel chemical materials, ultimately growing Soulbrain into a conglomerate with annual revenue exceeding KRW 1 trillion (US$ 721 million). Chung is widely respected for his emphasis on trust. #ChungJiwan #SoulbrainHoldings #semiconductor #chemicals #OLED #ventureentrepreneur #KOSDAQ #Koreanbusiness #leadership #trust
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Chairman of Soulbrain Holdings
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CEO of POSCO
Lee Si-woo
- Lee Si-woo is the CEO and President of POSCO. He is focused on improving POSCO's profitability and transitioning to a low-carbon production system. Born in October 1960, Lee graduated from Hanyang University with a degree in Metallurgy. He began his career at Pohang Iron and Steel Co. (POSCO's predecessor). Lee served as the head of POSCO Maharashtra in India. Upon returning to Korea, he held key positions including Deputy Head of Rolling at the Gwangyang Steelworks, Head of Steel Production Strategy, Head of Safety and Environment, and Head of Production Technology. Over a 40-year career, he has dedicated his professional life entirely to POSCO. In March 2023, Lee was appointed CEO and President of POSCO, working alongside Vice Chairman and Co-CEO Kim Hak-dong in a co-leadership system. As of February 2024, Lee has been serving as the sole CEO and President of POSCO. With over four decades at POSCO, Lee is a seasoned expert in the steel industry. #POSCO #LeeSiwoo #steelindustry #lowcarbon #sustainability #Koreanceo #metallurgy #HanyangUniversity #GwangyangSteelworks #leadership
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CEO of POSCO
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Vice Chariman of Samsung Heavy Industries
Choi Sung-an
- Choi Sung-an is the Vice Chairman and CEO of Samsung Heavy Industries. He also serves as the Chairman of the Korea Offshore & Shipbuilding Association. In the current boom phase of the shipbuilding industry, he aims to continue improving the company’s performance. He is focused not only on selectively winning profitable future orders but also on channeling the company's capabilities into the development of eco-friendly ships, as environmental regulations for the shipbuilding and offshore industries are set to be implemented soon. Choi was born on December 1, 1960, in Masan City, Gyeongsangnam-do (currently Changwon City). He graduated from Masan High School and later earned a degree in Mechanical Engineering from Seoul National University. He started his career as a new employee at Samsung Engineering. He advanced through roles in the Chemical Business Team and Energy Business Team, eventually becoming the Head of the Procurement Division, Head of the Chemical Business Division, and Head of the Plant Business Division 1 before being appointed as CEO of Samsung Engineering. In December 2022, he was promoted to Vice Chairman and appointed CEO of Samsung Heavy Industries. He is highly trusted within the group, becoming one of the four Vice Chairmen in the Samsung Group and the first to be promoted to this position under the leadership of Chairman Lee Jae-yong. He considers engineering his lifelong calling and places great importance on technology. He is known for his meticulous and thorough approach to work. #SamsungHeavyIndustries #ChoiSungAn #ShipbuildingIndustry #EcoFriendlyTechnology #EngineeringLeadership #KoreaShipbuilding #MasantoChangwon #SamsungGroup #LeeJaeYongLeadership #MechanicalEngineering
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Vice Chariman of Samsung Heavy Industries
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Chairman of KPF
Song Moo-hyun
- Song Moo-hyun is the CEO and Chairman of KPF, as well as the Chairman of its holding company, Songhyun Holdings. He was born on July 8, 1948, in Jinju, Gyeongsangnam-do. Song graduated from Kyungpook National University High School and earned a degree in Metallurgical Engineering from Korea University. After graduating from university, he worked at Daewoo Heavy Industries and Jinro Industries, gaining experience in the shipbuilding and cable industries. In 1991, he founded Seojin Industries, a marine cable company that later became the predecessor of TMC. In 2008, he acquired KPF, a fastener manufacturing company. Starting from scratch, Song expanded his business into a mid-sized enterprise with nearly 20 affiliated companies. He places great emphasis on securing core technologies that lead the industrial materials sector. Song views the reducer, a key component in robotics, as a driving force for future growth. #SongMoohyun #KPF #SonghyunHoldings #IndustrialMaterials #Fasteners #Shipbuilding #CableIndustry #TechnologyLeadership #BusinessExpansion #Robotics
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Chairman of KPF
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Chairman of Suhyup
Noh Dong-jin
- Noh Dong-jin is the Chairman of Suhyup (National Federation of Fisheries Cooperatives). He also serves as a board member of the International Cooperative Alliance (ICA), Chair of the Fisheries Committee, and President of the Korea Fisheries Industry Federation. He was born on November 13, 1954, in Jinhae, Gyeongsangnam-do, as the son of an ark clam farmer. From an early age, he was involved in the fishing industry. Noh graduated from the Department of Chinese Language at Changshin University and completed an advanced management program at the Graduate School of Public Administration at Changwon National University. He has been an advocate for fishermen in issues related to the construction of the New Port in Jinhae, Gyeongsangnam-do. He has also led efforts to protect fishermen’s rights in matters such as sea sand extraction. As the 21st and 22nd head of Jinhae Suhyup, he significantly expanded the cooperative. On February 16, 2023, he was elected as the 26th Chairman of Suhyup. Since his inauguration, Noh has focused on increasing fishermen’s income by developing new overseas markets for Korean seafood. He is also working on measures to address the growing impact of climate change on the fisheries sector. Noh values on-site management, prioritizing listening directly to fishermen's concerns by visiting field locations. #NohDongjin #Suhyup #FisheriesCooperative #KoreanSeafood #InternationalCooperativeAlliance #ClimateChange #FishermenRights #KoreanFisheries #ExportPromotion #OnsiteManagement
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Chairman of Suhyup
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Chairman of Samyang Tongsang
Hur Nam-kack
- Hur Nam-kack is the Chairman and CEO of Samyang Tongsang. He manages the company alongside his son, Hur Jun-hong, who serves as co-CEO. He also holds a directorship at Samyang International. Hur Nam-kack inherited Samyang Tongsang, a company founded by his grandfather, and has continued to lead its operations. Samyang Tongsang is an affiliate of the GS Group. Hur Nam-kack is a third-generation leader of the GS Group. He was born on May 28, 1938 (lunar calendar) in Jin-yang, South Gyeongsang Province. He graduated from Boseong High School in Seoul and earned a degree in Economics from Seoul National University. He later obtained a master’s degree from the University of Chicago. Hur established "Korea Nike" through a business partnership with Nike, Inc. However, when Nike decided to supply directly to the Korean market via a subsidiary, Hur sold off Samyang Tongsang’s footwear division and pivoted the company to leather manufacturing. To address the challenges of the declining leather industry, he has focused on developing high-value products, such as leather for car seats and furniture. Samyang Tongsang supplies leather seats for Hyundai’s Genesis vehicles. #HurNamkack #SamyangTongsang #GSGroup #KoreaNike #LeatherManufacturing #HyundaiGenesis #ThirdGenerationLeader #BusinessTransformation #AutomotiveIndustry #HighValueProducts
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Chairman of Samyang Tongsang
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CEO of SK Shieldus
Hong Won-pyo
- Hong Won-pyo is the CEO of SK Shieldus. He became the first CEO following SK Shieldus's acquisition by EQT Partners, an investment company of Switzerland's Wallenberg Group. He is dedicated to fostering new business ventures and expanding globally through the integration of physical and cybersecurity. Born on February 8, 1960, in Hwaseong, Gyeonggi Province, he graduated from Seoul National University with a degree in electronic engineering and earned a master’s and a Ph.D. in electrical engineering from the University of Michigan, USA. He started his career as a program manager at Bell Labs in the U.S., then moved to Korea Telecom, where he served in various roles, including Head of Technology Planning for Korea Telecom Freetel (KTF), Head of Strategic Planning and Coordination, Head of Marketing, and Head of New Business. He later joined Samsung Electronics as Vice President and Head of Product Strategy for the Wireless Business Division, and was promoted to president while heading the Media Solution Center. After serving as Global Marketing Head at Samsung Electronics, he led the Solutions Business Division at Samsung SDS before being appointed CEO. After stepping down as CEO in 2021, he became an advisor. In 2023, after the Wallenberg Group’s acquisition of SK Shieldus, he was appointed CEO. He is known for his quick decision-making, strong skills in management, marketing, and external communications.
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CEO of SK Shieldus
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Chairperson
Lee Auh-ryung
- Lee Auh-ryung is the Chairperson of Daishin Financial Group. As the only female owner-manager in Korea’s securities industry, she leads the group alongside her eldest son, Yang Hong-seok, Vice Chairman of Daishin Securities, and Oh Ik-keun, CEO of Daishin Securities. In celebration of the group's 60th anniversary, the group rebranded itself as Daishin Financial Group, now Daishin Financial Group, with a strategic goal of achieving "10 trillion won in equity capital" through expanded global business and investment initiatives. She is also pursuing the title of the 10th comprehensive investment finance company (general investment company) in Korea, aiming to broaden the group’s business scope and drive growth using this status as a platform. Born on September 9, 1953, in Goesan, North Chungcheong Province, she graduated with a degree in Physical Education from Sangmyung Women's Teachers College. She married Yang Hoe-mun, the former Chairman of Daishin Securities, with whom she had two sons and one daughter. Initially a homemaker, she began participating in management, both directly and indirectly, during her husband’s three-year illness. After his passing, she promptly assumed the chairmanship of Daishin Securities and later became the Chairperson of Daishin Financial Group upon its establishment. Known for her shy and gentle nature, she practices “warm management,” yet she makes bold decisions when necessary.
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Chairperson
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CEO & President of SK Earthon
Myeong Seong
- Myeong Seong is CEO & President of SK Earthon. He is focusing on strengthening the traditional oil exploration business while also dedicating efforts to developing eco-friendly technologies like carbon capture. Born in May 1969. He graduated from Pusan National University with a degree in Trade. He joined SK Innovation and has spent over 25 years specializing in oil exploration, earning a reputation within the company as an oil development expert. He held various roles such as President of the Bogotá office, Head of Exploration Project Management, and Business Representative for Oil Development before being appointed as the President and CEO of SK Earthon. He prefers to directly lead and guide employees on-site. #MyeongSeong #SKEarthon #OilDevelopment #CarbonCapture #EcofriendlyTechnology #SKInnovation #Leadership #OilExploration #PusanNationalUniversity #Energy
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CEO & President of SK Earthon
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President of Hanjin Logistics
Emily Lee Cho
- Emily Lee Cho is the President of Hanjin Logistics. Her Korean name is Cho Hyun-min and English name is Emily Lee Cho. She has designated the platform business as a new growth driver for Hanjin and is focusing on strengthening the logistics sector. Born on August 31, 1983, in Hawaii, USA, she is the second daughter of the late Cho Yang-ho, former Chairman of Hanjin Group. She holds American citizenship and graduated from the University of Southern California with a degree in Communications. Her career began at LG Ad. She then moved to the Integrated Communications Office at Korean Air, where she was promoted from Manager to IMC Team Leader, Executive Director, and eventually Senior Vice President. She held various roles, including Vice President of Jin Air, Senior Vice President of Korean Air's Integrated Communications Office, CEO of Hanjin Travel, and CEO of Kal Hotel Network, before stepping down from all positions following the infamous "water cup abuse" scandal. After a year, she returned to management as Chief Marketing Officer of Hanjin KAL and Vice President of Jeongseok Enterprises. She later moved to Hanjin Logistics and was appointed as a board member in 2023. Throughout her career at Korean Air and Jin Air, she was responsible for marketing, and at Hanjin, she oversees marketing, focusing on "logitainment," a blend of logistics and entertainment. Known for her candid personality, her remarks in public often draw attention. Standing tall at 175 cm, she was even offered a fashion modeling opportunity as a student. She has a unique background, including experiences as a children's book author and an advertising model. #EmilyLeeCho #HanjinLogistics #KoreanAir #JinAir #ChoYangho #Marketing #Logitainment #WaterCupScandal #HanjinKAL #USCGraduate
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President of Hanjin Logistics
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Mayor of Daegu Metropolitan City
Hong Joon-pyo
- Hong Joon-pyo is the Mayor of Daegu Metropolitan City. He is considered one of the potential presidential candidates from the conservative camp. By winning the 2022 local election with a high vote share, he secured a foothold for a possible future presidential bid after a previous failed attempt. As Mayor of Daegu, Hong focuses on key tasks such as the construction of the Daegu-Gyeongbuk Integrated New Airport, fostering five advanced industries, resolving Daegu’s water supply issues, and restructuring public institutions. Amid declining approval ratings for the Yoon Suk-yeol administration and the ruling People Power Party in 2024, Hong is expected to play a significant role as a senior figure within the party. He was born on December 5, 1954, in Changnyeong County, Gyeongsangnam-do. Hong graduated from Yeongnam High School in Daegu and studied Public Administration at Korea University. He passed the bar exam and became a prosecutor, gaining fame as a tough prosecutor in the Criminal Division, notably for his investigation into the slot machine scandal, which inspired the prosecutor character in the drama 'Sandglass.' He left the prosecution after serving as Legal Adviser to the Director of the National Security Planning Agency (NSP). He entered politics at the suggestion of President Kim Young-sam. Hong ran for the National Assembly in Songpa District, Seoul, and was elected but lost his seat due to a violation of election laws. He returned to the National Assembly after winning a seat in Dongdaemun District, Seoul, and was re-elected three times in the same district, during which he served as the floor leader and senior member of the Grand National Party, eventually becoming party leader. After losing in the 19th National Assembly election, Hong ran in the by-election for Gyeongsangnam-do Governor and won, successfully securing re-election. He paid off the province’s debt during his term but faced constant controversy due to his blunt speaking style. In the 19th presidential election, he ran as the candidate for the Liberty Korea Party but was defeated by Moon Jae-in of the Democratic Party. As the leader of the Liberty Korea Party, Hong led the party through the 7th local elections but suffered a significant loss, with traditional strongholds like Busan, Ulsan, and Gyeongnam falling to the opposition. When he was denied a nomination by the United Future Party for the 21st National Assembly election, he ran as an independent candidate in Suseong District, Daegu, and won. He later rejoined the People Power Party. Hong has maintained an independent stance within the conservative bloc, without affiliating with any particular faction. He is known for his outspoken and direct speech, which has often led to controversy. This style resulted in his dismissal as Senior Advisor of the People Power Party and a 10-month suspension of party membership, weakening his position within the party. #HongJoonpyo #DaeguMayor #ConservativePolitics #PeoplePowerParty #DirectSpeech #GyeongsangnamdoGovernor #LibertyKoreaParty #PresidentialCandidate #PoliticalControversy #IndependentStance
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Mayor of Daegu Metropolitan City
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Chairman of KMW
Kim Duk-yong
- Kim Duk-yong is the Chairman and CEO of KMW. He is the founder of KMW, a company specializing in mobile communication base station equipment. Kim Duk-yong was born on June 1, 1957, in Incheon, South Korea. He graduated from Incheon High School and later earned a degree in Electronic Engineering from Sogang University. He also received an honorary doctorate in engineering from Sogang University. Kim began his career at Daeyoung Electronics, Daewoo Telecom, and Samsung Hewlett-Packard before founding Korea Microwave (now KMW) in 1991, with the goal of localizing telecommunication equipment. He is recognized as a first-generation venture entrepreneur and a veteran in the domestic mobile communication industry. Kim is currently leading a restructuring effort at KMW, as the company faces a downturn in performance due to reduced demand for 5G investment. #KimDukyong #KMW #MobileCommunication #5G #TelecomIndustry #Founder #VentureEntrepreneur #Restructuring #SogangUniversity #KoreaMicrowave
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Chairman of KMW
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CEO of Synopex
Son Kyoung-ik
- Son Kyoung-ik is the CEO of Synopex. Synopex specializes in the development and manufacturing of flexible printed circuit boards (FPCBs) and filtration products. Son Kyoung-ik is focused on expanding the FPCB business and diversifying the company’s portfolio by leveraging advanced filtration technology. He was born on December 16, 1966, in Ulsan, South Korea. He graduated with a degree in Economics from Yeungnam University. His career spans roles at Knowledge and Creative Venture Investments, United M&A, Nexus Investment, Shinhan TS, and U-One Telecom. Son Kyoung-ik served as the Vice President and CEO of the software distribution company SoftLand before becoming an internal director and later CEO of Synopex. He is regarded as an expert in corporate restructuring and mergers & acquisitions. While at SoftLand, he led the acquisition of 'Wellmade Entertainment'. He is credited with domestic production of blood filters for dialysis machines, which were previously imported. Additionally, Son Kyoung-ik pioneered the localization of nanofluoropolymer filters and protective clothing for semiconductor core processes using proprietary filtration technology. Under his leadership, Synopex has grown into a mid-sized company with annual revenues exceeding KRW 200 billion, focusing on the flexible printed circuit board business. #SonKyoungIk #Synopex #CEO #FPCB #FiltrationTechnology #Localization #MergersAndAcquisitions #Semiconductors #BloodFilter #KoreanBusiness
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CEO of Synopex
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President of Sangmyung University
Hong Seong-tae
- Hong Seong-tae is the President of Sangmyung University. He is focusing on enhancing the university's brand value and promoting internationalization. Born on September 5, 1962, in Seoul, he graduated from the Department of Business Administration at Seoul National University and went on to obtain both his Master’s and Doctorate degrees in Business Administration from the same institution. In 1989, he joined the Bank of Korea before moving to Korea Telecom (KT), where he worked for nine years. In 1998, he was appointed as a professor in the Department of International Trade at Sangmyung University. Throughout his tenure, he has held various key positions, including Director of Industry-Academia Cooperation, Director of Research, Director of Planning, Dean of the College of Business, Director of Administration, and Vice President for Academic Affairs. He has also served as Vice President of the Korean Productivity Association and President of the Korean Aviation Management Association. In 2023, he was appointed as the Chairman of the Seoul Presidents’ Forum. He is recognized for his efforts to demonstrate communicative leadership. #HongSeongtae #SangmyungUniversity #universityleadership #internationalization #SeoulNationalUniversity #BankofKorea #KT #academiccareer #SeoulPresidentsForum #communicativeleadership
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President of Sangmyung University
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CEO of Boryung
Jay Kim
- Jay Kim (Korean name: Kim Jeong-gyun) is the President and CEO of Boryung (formerly known as Boryung Pharmaceutical). He also serves as the CEO of Boryung Holdings, the largest shareholder of Boryung. He is a third-generation leader of the Boryung Group, following in the footsteps of the group’s founder Kim Seung-ho and Boryung Holdings Chairperson Kim Eun-sun. His birth name was Yoo Jeong-gyun, but after his father passed away and his mother, Chairperson Kim Eun-sun, assumed management control, he changed his surname to Kim in 2010. He has been injecting substantial capital into Boryung and is pursuing an ambitious mid- to long-term strategy with the goal of achieving KRW 1 trillion (US$ 721.4 million) in sales by 2026. Born on August 29, 1985. He graduated with a degree in Industrial Engineering from the University of Michigan and obtained a master’s degree in Social and Administrative Pharmacy from Chung-Ang University’s Graduate School of Medicine and Food. He worked at Samjeong KPMG in the United States before joining Boryung Pharmaceutical’s Strategic Planning Office in November 2013 as an Executive Director. In 2019, he was appointed CEO of Boryung Holdings, and in 2022, he also took on the role of President and CEO of Boryung, leading the company’s operations. He is actively investing in new business ventures, including space healthcare. #Boryung #JayKim #CEO #Pharmaceuticals #BoryungHoldings #KoreanBusiness #SpaceHealthcare #ThirdGenerationLeader #HealthcareInvestment #KimEunSun
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CEO of Boryung
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Chairman of Komipharm
Yang Kyung-hoon
- Yang Kyung-hoon is the Co-CEO and Chairman of Komipharm. He manages the company together with Co-CEO Moon Sung-chul, with Yang overseeing the human pharmaceuticals division and Moon handling the animal health business. Yang was born on August 1, 1953, in Incheon. His former name was Yang Yong-jin, and he legally changed his name in 2022. He graduated from Ganghwa High School in Incheon and then earned a law degree from Kukje University. He later pursued a Master’s degree in Business Administration from Inha University Graduate School. In 1988, he became CEO of the Korea Microbial Research Institute, the predecessor of Komipharm. He was appointed Chairman and CEO of Komipharm in 2004. Yang expanded Komipharm's business from manufacturing and selling animal health products to include human pharmaceuticals. Komipharm is conducting international clinical trials for its anticancer drug Kominox (PAX-1) as part of its product development efforts. In 2024, the company entered the home environment improvement sector by launching a new business manufacturing and selling low-power air conditioners without external units. Yang plans to use the revenue generated from this new venture to fund the late-stage clinical trials of Kominox, aiming to bring the product to market. #YangKyunghoon #Komipharm #CoCEO #humanpharmaceuticals #animalhealth #anticancerdrug #Kominox #businessdiversification #clinicaltrials #newbusiness
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Chairman of Komipharm
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CEO of Classys
Baek Seung-han
- Baek Seung-han is the CEO of Classys, a company specializing in medical devices for aesthetic purposes. The company’s largest shareholder is Bain Capital, while Baek Seung-han serves as a professional executive. Classys aims to achieve annual revenue of US$ 1 billion (approximately KRW 1.3 trillion) by 2030, focusing on expanding its overseas business operations. Baek was born on August 25, 1972. He graduated from the College of Health Sciences at Yonsei University and earned an MBA from the Helsinki School of Economics in Finland. His career includes positions at German pharmaceutical company Bayer Korea, American pharmaceutical company Abbott Korea, and the Healthcare Business Division of SK Telecom. He later held roles such as CEO of Beckman Coulter Korea, Board Director of Danaher Korea, and Chairman of the In Vitro Diagnostics Committee at the Korea Medical Devices Industry Association. Baek was appointed CEO of Classys in 2022. With over 20 years of experience in domestic and international healthcare companies, Baek is recognized as an expert in the healthcare business sector. #BaekSeungHan #Classys #BainCapital #HealthcareExpert #MedicalDevices #AestheticMedicine #BusinessExpansion #GlobalStrategy #CEO #HealthcareIndustry
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CEO of Classys
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Chairman of Youlchon Chemical
Shin Dong-yoon
- Shin Dong-yoon is the Chairman and CEO of Youlchon Chemical and also serves as Vice Chairman of Nongshim Holdings. He was born on January 9, 1958, in Busan. Shin is the second son of Shin Chun-ho, the founder and honorary chairman of Nongshim Group (who passed away on October 27, 2021). He has a twin brother, Shin Dong-won, who is the Chairman of Nongshim. Shin graduated from Seoul Jungang High School and later earned a degree in Industrial Engineering from Korea University. He also completed a Master’s program in International Business at Chung-Ang University. In 1982, he started his career at Nongshim’s finance department, where he began learning the ropes of business management. In 1989, he moved to Youlchon Chemical, where he held various positions, including Managing Director of Sales, Vice President, President, and Vice Chairman, before becoming Chairman in 2022. Youlchon Chemical is a packaging company that supplies ramen and snack packaging to Nongshim. Shin Dong-yoon is currently leading the transformation of Youlchon Chemical into a battery materials company. He successfully localized the production of aluminum pouches for secondary batteries. #ShinDongYoon #YoulchonChemical #NongshimHoldings #BatteryMaterials #KoreanBusiness #PackagingIndustry #NongshimGroup #IndustrialEngineering #BusinessLeadership #AluminumPouches
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Chairman of Youlchon Chemical
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Chairman of Cammsys
Kwon Hyun-jin
- Kwon Hyun-jin is the Chairman and CEO of Cammsys. As the owner who acquired the company, he has been leading its management. He was born on September 2, 1971, in Seoul. Kwon graduated from Daewon Foreign Language High School and earned a degree in Accounting from Dankook University. He later completed a master’s program in Logistics at George Washington University in the United States. After finishing his studies, Kwon founded and managed Ideanet, a company offering free online photo services. Along with his late father, Chairman Kwon Young-chun, he acquired Cammsys, a manufacturer of camera modules for mobile phones. In an effort to diversify the company’s revenue structure, which was heavily reliant on smartphone camera modules, Kwon has been focusing on business diversification. He sees ultrasound battery diagnostic kits, AI cameras for home appliances, and drone cameras as potential future growth drivers for the company. #KwonHyunjin #Cammsys #CEO #BusinessDiversification #CameraModules #SmartphoneCameras #FutureGrowth #AItechnology #LogisticsExpertise #FamilyBusiness
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Chairman of Cammsys
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Chariman of KCC
Chung Mong-jin
- Chung Mong-jin is the Chairman and CEO of KCC. Since acquiring the global silicone company Momentive, he has focused on developing the silicone business as a future growth engine for KCC. He has worked hard on the development of building materials such as paints, glass, and insulation, establishing KCC as the top building materials company in South Korea. He was born on August 5, 1960, in Seoul, as the eldest son of Chung Sang-young, Honorary Chairman of KCC. Chung Sang-young is the youngest brother of Chung Ju-yung, the Honorary Chairman of the Hyundai Group. Chung Mong-jin graduated from Yongsan High School in Seoul and earned a degree in Business Administration from Korea University. He later received a Master’s degree in Business Administration from George Washington University in the United States. He joined Koryo Chemical, the predecessor of KCC, as a director and became the Group’s Chairman after just nine years. He has been leading KCC and its affiliates for 20 years. Chung is praised for his exceptional foreign language skills and keen investment acumen. He is known for his cautious approach to management, stating, “I never venture into fields I don’t know, and it typically takes 5 to 7 years of consideration before entering a new business.” #KCC #ChungMongjin #Momentive #SiliconeBusiness #SouthKorea #BuildingMaterials #HyundaiGroup #CautiousManagement #InvestmentStrategy #ForeignLanguageSkills
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Chariman of KCC
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Director of National Security
Shin Won-sik
- Shin Won-sik is the Director of the National Security Office. He has been working to strengthen the South Korea-U.S. alliance and enhance the joint defense posture to bolster deterrence against North Korea. He also closely monitors international developments affecting South Korea’s security, such as the Ukraine-Russia war and the Middle East crisis. He was born on July 24, 1958, in Tongyeong, Gyeongsangnam-do. Shin graduated from Dongseong High School in Busan and the Korea Military Academy. He earned a Master’s degree in Business Administration from Kyungnam University and a Ph.D. in Business Administration from Kookmin University. A graduate of the 37th class of the Korea Military Academy, Shin was a classmate of Park Ji-man, Chairman of EG Group and brother of former President Park Geun-hye. He is also a senior by three classes to former Defense Minister Lee Jong-sup. During his active duty, he specialized in defense policy and strategy. Shin served as Deputy Chief Inspector for Combat Readiness at the Joint Chiefs of Staff, Deputy Director of Defense Policy at the Ministry of National Defense, and was promoted to Major General, taking roles as the Commander of the 3rd Division and Director of Policy Planning at the Ministry of National Defense. During the Lee Myung-bak administration, as the Director of Policy Planning, he participated in the second revision of the South Korea-U.S. Missile Guidelines (extending missile range). He was promoted to Lieutenant General, serving as the Commander of the Capital Defense Command and Director of Operations at the Joint Chiefs of Staff, before retiring as Vice Chairman of the Joint Chiefs of Staff. In the 20th National Assembly elections, he ran as a proportional representative candidate for the Saenuri Party (22nd on the list) but did not secure a seat. Shin was one of the founding members of the Bareun Party and served as the Head of the Security Committee in Yoo Seung-min’s presidential campaign for the 19th presidential election, temporarily aligning himself with the “Yoo Seung-min faction.” After rejoining the Liberty Korea Party, Shin became known for his strong conservative rhetoric at rallies against former President Moon Jae-in. He was elected as a proportional representative in the 21st National Assembly under the Future Korea Party, an affiliated party of the United Future Party (currently the People Power Party). He served as the ruling party's secretary on the National Defense Committee and as the Chairman of Policy Coordination for the People Power Party. Starting from the 2022 National Assembly audit, Shin raised the issue of the bust of General Hong Beom-do at the Korea Military Academy. He continued to play a leading role in the ensuing controversy over the removal and relocation of the statue, positioning himself as an aggressive spokesperson for the Yoon Suk-yeol administration. Shin was appointed as Minister of National Defense in 2023 and moved to his current role as Director of the National Security Office in August 2024. #ShinWonsik #NationalSecurityOffice #DefenseMinister #SouthKoreaUSAlliance #MilitaryAcademy #YoonAdministration #ConservativePolitics #NationalAssembly #PolicyPlanning #MissileGuidelines
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Director of National Security
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CEO of Joycity
Cho Seong-won
- Cho Seong-won is the CEO of Joycity. He acquired and currently manages the game company Joycity. Cho Seong-won was born on June 1, 1969, in Seoul. He graduated from Dongguk University with a degree in economics. After graduating from university, he initially worked in finance and investment roles. He later shifted to the gaming industry, recognizing its growth potential, and became the CEO of NDOORS. Following NDOORS' acquisition by Nexon, Cho held key positions at Nexon, including Head of Publishing and Director of Business Development. In 2013, he was appointed CEO of JC Entertainment (now Joycity), a subsidiary of Nexon at the time. In 2015, he acquired Joycity through his own game company, NDREAM. Cho’s unique career trajectory from finance and investment to leading a game company has earned him a reputation as a CEO with a strong financial acumen. He is currently focused on developing successful new game titles and diversifying the business, including expanding into the webtoon market. #ChoSeongWon #Joycity #GameIndustry #NDOORS #Nexon #NDREAM #CEO #BusinessAcquisition #WebtoonExpansion #SouthKorea
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CEO of Joycity
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Minister of Justice
Park Sung-jae
- Park Sung-jae is the Minister of Justice in the administration of President Yoon Suk-yeol. As the Minister of Justice, overseeing the prosecution, corrections, and human rights protection, he faces the task of ensuring that the Prosecutor's Office and other affiliated institutions can carry out their duties fairly and appropriately, without succumbing to political interference. He was born on January 24, 1963, in Cheongdo, North Gyeongsang Province. He graduated from Daegu High School and later earned a law degree from Korea University. In 1985, he passed the 27th National Judicial Examination. He began his career as a prosecutor at the Seoul District Prosecutors' Office. His roles included Deputy Chief Prosecutor at the Seoul Eastern District Prosecutors' Office, Chief Prosecutor at the Gangneung Branch of the Chuncheon District Prosecutors' Office, Research Officer at the Supreme Prosecutors' Office, Head of the Financial Crimes Investigation Department at the Seoul Central District Prosecutors' Office, Inspector General at the Ministry of Justice, Deputy Chief Prosecutor at the Seoul Eastern District Prosecutors' Office, and the First Deputy Chief Prosecutor at the Daegu District Prosecutors' Office. In 2006, while serving as Head of the Financial Crimes Investigation Department, he participated in the investigation of the Samsung Everland convertible bonds case, which involved illegal gifting strategies by Samsung Group Chairman Lee Kun-hee. Around the same time, he led an investigation into allegations that Shinsegae Vice Chairman Chung Yong-jin acquired new shares from Gwangju Shinsegae at a low price as part of a scheme to secure management control. He concluded his career as a prosecutor after serving as the Chief Prosecutor of the Seoul Central District Prosecutors' Office and the Seoul High Prosecutors' Office. Following his tenure as a prosecutor, he operated a private legal office and later became the Managing Partner at the law firm Hae-song (Limited). He was subsequently appointed as the Minister of Justice, becoming the second Minister of Justice under President Yoon Suk-yeol's administration. He is known for his calm and rational demeanor but is also described as principled and hands-on, demonstrating strong drive in his duties. #ParkSungJae #MinisterOfJustice #YoonSukYeol #Prosecutor #SamsungInvestigation #FinancialCrimes #LegalCareer #SouthKorea #HumanRights #Judiciary
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Minister of Justice
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CEO of MetLife Insurance
Song Young-rok
- Song Young-rok is the President and CEO of MetLife Insurance. He is focusing on expanding product sales with variable insurance, the company's main product, while also strengthening offerings in health insurance, aiming to position MetLife as a top-tier life insurer. Born on March 25, 1968, in Daegu, he graduated from Daegu Seonggwang High School and earned a degree in mathematics from Seoul National University. Song began his career as an accountant, working at Sedong Accounting Corporation, Samil Accounting Corporation, and Ernst & Young Hanyoung. He joined MetLife Insurance in 2007 as a Director of Financial Controlling. He served as Executive Vice President of Finance and Chief Financial Officer before being appointed as CEO in 2018. He was reappointed in 2021 and successfully secured a third term in 2024. Song is a rare financial expert among insurance industry CEOs, having a background as a certified accountant. #SongYoungRok #MetLifeInsurance #CEO #FinancialExpert #InsuranceIndustry #HealthInsurance #VariableInsurance #Reappointment #SouthKorea #Accounting
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CEO of MetLife Insurance
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Vice Chairman of Doosan Bobcat
Scott Park
- Scott Park is the Co-CEO and Vice Chairman of Doosan Bobcat. Having first assumed the role of CEO in 2013, he has led Doosan Bobcat for over a decade and has shared the co-CEO structure with CFO Cho Duk-jae since 2021. Under his leadership, Doosan Bobcat achieved record-breaking results in 2021, solidifying its role as a cash cow for its parent company. Park is also accelerating technology development to capture the future construction equipment market. Born on March 28, 1965, in London, UK, he graduated from Altaloma High School in the United States and earned a bachelor’s degree in Electrical Engineering from Harvey Mudd College. He later received a master’s degree in International Business from the University of California, San Diego (UCSD). Before joining Doosan, Park worked with Volvo Construction Equipment, where he served as Global Chief Information Officer (CIO) and Vice President of Process and Systems in Belgium, and as Vice President and CIO overseeing the Korean and Asian excavator business in Singapore. He joined Doosan in 2012, serving as Executive Vice President in charge of strategy, production strategy, and quality management, before being appointed CEO in 2013. With over 25 years of international experience in manufacturing, Total Quality Management (TQM), information technology, and strategic development, he is recognized as a global market expert. A U.S. citizen with the English name Scott, he is fluent in both Korean and English, making him an ideal CEO for Doosan Bobcat, whose headquarters are in Korea and primary business operations are in North America. #ScottPark #DoosanBobcat #CoCEO #GlobalMarketExpert #ConstructionEquipment #Leadership #RecordPerformance #TechnologyDevelopment #TQM #InternationalExperience
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Vice Chairman of Doosan Bobcat
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CEO of Yuyu Pharma
Yu Won-sang
- Yu Won-sang is the CEO and President of Yuyu Pharma. His grandfather, Yoo Teuk-han, founded Yuyu Pharma and was the brother of Yoo Il-han, the founder of Yuhan Corporation. His father, Yoo Seung-pil, also served as CEO and Chairman of Yuyu Pharma. Born in March 1974 in New York, United States, Yu attended Kent School in the U.S., then graduated from Trinity University with majors in Economics and Japanese. He earned his Master’s degree from Columbia University’s Graduate School of Business. Before joining Yuyu Pharma, he worked abroad in consulting, financial investment, and global pharmaceutical companies, gaining experience in open-minded corporate cultures. He is now working to transform Yuyu Pharma’s organizational culture into a more horizontal, open structure. In 2012, he leveraged big data for sales at Yuyu Pharma, becoming the first in the pharmaceutical industry to do so, which boosted sales of the children’s wound treatment product "Venoplus Gel" by nearly 50% compared to the previous year. In 2020, he was appointed CEO and President of Yuyu Pharma, becoming the company's largest shareholder. Following the retirement of his father, Yoo Seung-pil, from the chairman role in 2021, Yu took over full responsibility for managing Yuyu Pharma. He later recruited Park No-yong as a co-CEO to enhance management efficiency and strengthen expertise, leading Yuyu Pharma together as joint CEOs. #YuWonSang #YuyuPharma #PharmaceuticalIndustry #CEO #BigData #CorporateCulture #YuhanCorporation #ManagementEfficiency #JointLeadership #PharmaceuticalInnovation
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CEO of Yuyu Pharma
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Vice Chairman of Orion Group
Hur Inn-chul
- Hur Inn-chul is the Vice Chairman of Orion Group. He serves as both the CEO of the holding company Orion Holdings and the Vice Chairman in charge of overall management at the business entity Orion. Born on March 26, 1960, in Masan, South Gyeongsang Province, he attended Masan High School and later graduated with a degree in Business Administration from Yonsei University. Hur began his career at Samsung C&T, where he was responsible for financial management. He later moved to Shinsegae, working in the business support office, where he continued handling finance-related tasks and eventually rose to the position of Vice President of the Business Support Office. When Shinsegae split into two separate entities, Shinsegae and E-Mart, Hur played a leading role in overseeing the division and was subsequently promoted from Vice President to President of the Shinsegae Group's Strategic Planning Office. He later served as CEO and President of E-Mart, after which he resigned, worked as a full-time advisor, and then joined Orion Group. Following the retirement of Orion Group Chairman Dam Chul-gon and his wife, Vice Chairwoman Lee Hwa-kyung, from their roles as registered executives, Hur has stepped up to fill the management gap left by the founding family. He has expanded his management reach by exploring new business opportunities.
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Vice Chairman of Orion Group
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Chairman of Jastech
Chung Jae-song
- Chung Jae-song is the CEO and Chairman of Jastech, a company specializing in manufacturing equipment for the semiconductor and display industries. He is the founder of Jastech, born on May 16, 1958, in Yecheon, Gyeongbuk Province. Chung graduated from the Department of Mechanical Assembly at Busan Technical High School and studied Industrial Management at Kyungnam Industrial University (now Gyeongsang National University). He worked at Dongmyung Heavy Industries and Daewoo Shipbuilding & Marine Engineering before founding Jastech in 1995, where he became CEO. With a strong sense of pride as an engineer, Chung prefers to be known as a "technician" rather than an "entrepreneur." He views logistics robots and battery cell production equipment for secondary battery manufacturing lines as new growth drivers for the company. #ChungJaeSong #Jastech #semiconductorequipment #displaymanufacturing #companyfounder #SouthKorea #engineeringpride #secondarybattery #logisticsrobot #growthstrategy
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Chairman of Jastech
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Largest Shareholder of Uniquest
Lim Charles Changwan
- Lim Charles Changwan is the founder and largest shareholder of Uniquest. Born on November 4, 1962, in the United States, he graduated from UC Berkeley with a degree in sociology. He began working at Samsung Electronics’ U.S. branch in 1986, and in 1993, he established Uniquest, a non-memory semiconductor supply company, in San Jose, San Francisco. In 1995, he incorporated the company and founded Uniquest Korea. In 2004, he listed Uniquest on the Korea Exchange. Lim managed Uniquest as CEO until 2011, when he transitioned the company to a professional management system. Throughout the 2000s, he helped modernize and improve Korea’s semiconductor distribution market, breaking away from outdated practices and competing alongside global distribution companies, thus contributing to the growth of Korea’s semiconductor industry.
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Largest Shareholder of Uniquest
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Head of MX at Samsung Electronics
Roh Tae-moon
- Roh Tae-moon is the President and Head of Samsung Electronics' Mobile eXperience (MX) Division. As the artificial intelligence (AI) smartphone market enters a new era, Roh is focusing on enhancing Samsung Electronics' AI-powered "Galaxy AI" to gain an edge over Apple in this competitive landscape. He is also working to expand Samsung's presence in AI smart devices by collaborating with Google and Qualcomm to launch extended reality (XR) devices equipped with AI capabilities. Born on September 3, 1968, Roh graduated from Daeryun High School in Daegu and went on to earn a degree in Electronic Engineering from Yonsei University. He also obtained a master’s and doctoral degree in Electrical and Electronic Engineering from POSTECH (Pohang University of Science and Technology) Graduate School. Roh joined Samsung Electronics as a researcher, where he achieved notable success in smartphone development. This led to him becoming the company’s youngest executive director and, six years later, a rapid promotion to vice president. When he was promoted to president, Roh was recognized as the youngest president at Samsung Electronics. As the head of the Wireless Division, he oversaw Samsung’s smartphone business. Having handled wireless development roles since his initial entry into Samsung, Roh is a smartphone specialist. In product development, he places the utmost importance on consumer feedback. #RohTaeMoon #SamsungElectronics #GalaxyAI #smartphones #AI #XR #POSTECH #YonseiUniversity #consumerfeedback #technology
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Head of MX at Samsung Electronics
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CEO of Dong-A Pharmaceutical
Baek Sang-hwan
- Baek Sang-hwan is the CEO and President of Dong-A Pharmaceutical. As a professional manager, he is focused on transforming Dong-A Pharmaceutical into a comprehensive healthcare company. Born in November 1972, Baek graduated from Korea University with a degree in Western History in 2002. He joined Dong-A Pharmaceutical in 2000, serving as the head of the Corporate Planning Team and later as the Chief of Corporate Planning. He also held the position of Chief of Corporate Planning at Dong-A Socio Holdings, the parent company. In 2022, Baek returned to Dong-A Pharmaceutical as CEO and President. Under his leadership, the company has been expanding its over-the-counter (OTC) business and developing new brands in the health and beauty (H&B) sector. He is also focusing on strengthening the company’s capabilities in the functional household goods sector and boosting cosmetics exports. Baek has reduced the company's reliance on Bacchus, its flagship product, and established a balanced business structure by positioning premium vitamins like Orthomol as new growth drivers. #BaekSangHwan #DongAPharmaceutical #HealthcareIndustry #CorporateLeadership #OTCBusiness #HealthAndBeauty #FunctionalProducts #Orthomol #BusinessExpansion #CorporateStrategy
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CEO of Dong-A Pharmaceutical
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Chairman of Ilji Tech
Koo Bon-il
- Koo Bon-il is the Chairman and CEO of Ilji Tech, a company he founded specializing in automotive body parts. Born on April 20, 1947, in Daegu, Koo graduated from Seonggwang High School and the Department of Commerce at Cheonggu University (now Yeungnam University). After completing his studies, he worked at Jungang Spinning and Industrial before establishing Daegu Steel Industrial in 1983. In 1986, he decided to pivot to the automotive parts industry, founding Shin-A Engineering, which later became Ilji Tech. The name "Ilji Tech" combines "Ilji" (meaning single-minded determination) and "Technology," reflecting the company’s commitment to becoming a leading technology firm in automotive parts. Ilji Tech focuses on "lightweight components" and "eco-friendly vehicle parts," dedicating itself to research, development, and investment in these areas. #KooBonIl #IljiTech #AutomotiveParts #BusinessLeadership #CompanyFounder #LightweightComponents #EcoFriendlyVehicles #ResearchAndDevelopment #CorporateHistory #KoreanBusiness
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Chairman of Ilji Tech
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Former Chairman of Taekwang Group
Lee Ho-jin
- Lee Ho-jin is the former chairman of Taekwang Group. Born on December 8, 1962, in Busan, he is the third son of Lee Im-yong, the founder of Taekwang Industrial. Lee graduated from Seoul National University with a degree in Economics. He earned a master’s degree from Cornell University's Business School and completed the PhD coursework in Business Administration at New York University. He began his career in management as a director at Heungkuk Life Insurance and went on to serve as the CEO of Taekwang Industrial and Daehan Synthetic Fiber. After the passing of Taekwang Group Chairman Lee Im-yong, the chairmanship was initially passed to Lee Ki-hwa, Lee Im-yong’s brother-in-law and then vice chairman, while the eldest son, Lee Sik-jin, became vice chairman. Following the resignation of Lee Ki-hwa in 2002 and the death of the eldest son, Lee Sik-jin, in 2003, Lee Ho-jin ascended to the chairmanship of Taekwang Group in 2004. However, in 2011, Lee Ho-jin was arrested and charged with embezzlement and breach of trust involving KRW 140 billion (US$ 101 million). He resigned on February 10, 2012, following his indictment. Lee was sentenced to prison but was released on medical bail and remained under trial for 7 years and 8 months. In June 2019, his sentence of three years in prison was finalized, and he was released in October 2021 after serving his term. In August 2023, he was granted a special pardon on Liberation Day. Separately, in May 2024, police sought another arrest warrant for Lee on charges of creating slush funds amounting to tens of billions of won, but it was denied. As of November 2024, the prosecution's investigation is ongoing. Once known as a "reclusive manager" for avoiding public exposure, Lee has frequently come into the public eye due to his repeated legal troubles, resulting in a tarnished reputation. #LeeHojin #TaekwangGroup #CorporateLeadership #Embezzlement #BusinessEthics #LegalTroubles #HeungkukLifeInsurance #TaekwangIndustrial #KoreanBusiness #EconomicCrimes
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Former Chairman of Taekwang Group
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CEO of Shinhan Asset Management
Cho Jae-min
- Cho Jae-min is the CEO of Shinhan Asset Management. Until 2023, Shinhan Asset Management operated under a co-CEO system, with Cho overseeing the traditional asset division. Starting in 2024, he became the sole CEO, leading the company on his own. He is committed to enhancing Shinhan Asset Management’s competitiveness as a comprehensive asset management firm. Cho was born on September 13, 1962, in Busan. He graduated from Choongam High School in Seoul and earned a bachelor's degree in Business Administration from Seoul National University. He later obtained a master's degree in Business Administration from New York University. Recognized as a capital market expert with extensive experience in foreign exchange and bonds, Cho is a highly regarded professional manager in the asset management industry. He began his career as CEO of Midas Asset Management and has served as a CEO in asset management firms for nearly 25 years. After leaving Midas Asset Management, he led KB Asset Management before moving to KTB Asset Management. He returned to KB Asset Management as co-CEO alongside Lee Hyun-seung after four years. Upon being appointed CEO of Shinhan Asset Management, Cho joined the Shinhan Financial Group. He is known for his dedication to work, to the extent that he has little time for hobbies. #ChoJaeMin #ShinhanAssetManagement #KTBAssetManagement #KBAssetManagement #MidasAssetManagement #CapitalMarkets #AssetManagement #CEOProfile #ShinhanFinancialGroup #BusinessLeadership
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CEO of Shinhan Asset Management
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Vice Chairman of Eugene Investment & Securities
Yu Chang-soo
- Yu Chang-soo is the Vice Chairman and CEO of Eugene Investment & Securities. As a second-generation leader of the company, he shares the CEO role with professional manager Ko Kyung-mo. While Ko oversees operations and risk management within Eugene Investment & Securities, Yu focuses on the overall management strategy for the financial affiliates of the Eugene Group, including Eugene Investment & Securities. Born on May 21, 1963, in Seoul, Yu is the third son of Yu Jae-pil, Honorary Chairman of the Eugene Group. He graduated from Kyungseong High School in Seoul and earned a degree in Sociology from Korea University. He later obtained an MBA from the College of Business at Northern Illinois University in the United States. Yu held positions as President of Eugene Comprehensive Development and CEO of Eugene Group's Cement Division before being appointed Vice Chairman and CEO of Seoul Securities (now Eugene Investment & Securities) in 2007. After stepping down as CEO in 2009, he continued as Chairman of the Board. He returned as CEO in 2011 and has been leading Eugene Investment & Securities for the past 13 years. Under his leadership, Eugene Investment & Securities has established itself as a competitive mid-sized firm among larger securities companies. Yu is known for his attentiveness to those around him and his proactive communication style. #YuChangSoo #EugeneInvestment #Leadership #CEO #FinancialStrategy #SecondGenerationLeadership #KoreaUniversity #EugeneGroup #SecuritiesIndustry #CorporateManagement
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Vice Chairman of Eugene Investment & Securities
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CEO of Shift Up
Kim Hyung-tae
- Kim Hyung-tae is the CEO of Shift Up, one of South Korea's top four game companies. He is actively expanding the company's game portfolio. Born on February 7, 1978, Kim initially studied in the Visual Communication Design Department at Chung-Ang University’s College of Arts but eventually dropped out due to an extended leave. In 1997, he began his career as a professional illustrator at game company Mantra, serving as an industrial technical agent. He later worked at Softmax before moving to NCSoft in 2005, where he served as Art Director (AD) and oversaw the overall design for the MMORPG "Blade & Soul," up to its "Silverfrost Mountains" season. Kim is known for his distinctive art style, characterized by exaggerated depictions of certain human features. In 2013, he founded Shift Up. The company entered the gaming business in earnest with the 2016 release of "Destiny Child," a subculture game (styled after Japanese anime) co-developed with Line Games. In 2022, Shift Up launched the subculture game "Goddess of Victory: Nikke," followed by the action-adventure game "Stellar Blade" in 2024. Kim is currently focused on the development of the upcoming game "Project Witches" and expanding the service areas and platforms for existing titles. #KimHyungtae #ShiftUp #GameIndustry #VisualCommunicationDesign #BladeAndSoul #DestinyChild #GoddessOfVictoryNikke #StellarBlade #ProjectWitches #GameDevelopment #ArtDirection
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CEO of Shift Up
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Chairman of InBody
Cha Ki-chul
- Cha Ki-chul is the Co-CEO and Chairman of InBody, as well as its founder. He manages the company alongside Co-CEO and President Lee Ra-mi. Born on January 22, 1958, in Daejeon, Cha graduated from Daekwang High School and Yonsei University with a degree in mechanical engineering. He earned a master’s degree in mechanical engineering from KAIST and later pursued a PhD in biomedical engineering at the University of Utah during his studies in the U.S. After completing a postdoctoral fellowship at Harvard Medical School, Cha returned to Korea and founded InBody (formerly Biospace) in 1996. Motivated by his desire to personally develop a body composition analyzer, he successfully created the 'InBody' device in 1997. The device stands out for its use of multi-frequency measurement and direct segmental analysis, offering higher accuracy compared to existing products both domestically and internationally. The popularity of the device even led to the creation of the neologism "to InBody," meaning to perform a body composition analysis. Cha Ki-chul has expanded InBody’s product line beyond medical devices to include home-use and wearable devices, aiming to capture a larger share of the global health market. #ChaKiChul #InBody #BiomedicalEngineering #BodyCompositionAnalyzer #GlobalHealthMarket #Innovation #HealthTech #MedicalDevices #WearableTechnology #Entrepreneurship
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Chairman of InBody
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Vice Chairman of Samyang Corporation
Kim Won
- Kim Won is the Vice Chairman of Samyang Corporation. He serves as the Chairman of the Board of Directors as an internal director. Along with his cousin, Vice Chairman Kim Ryang, he leads Samyang Corporation. He was born on March 5, 1958, in Seoul. As a third-generation member of the Samyang Group’s founding family, his grandfather is Kim Yeon-soo, the founding chairman, and his father is Kim Sang-ha, the second chairman. His cousin, Kim Yoon, is the third chairman of the Samyang Group. Kim Won graduated from Seoul Joongang High School and Yonsei University with a degree in Chemistry. He later completed his master's studies in Materials Engineering and Industrial Engineering at the University of Utah in the United States. In 1988, he joined Samyang Corporation, where he served as CEO and COO (President), and later as Vice Chairman of Samyang Holdings, before assuming his current role as Vice Chairman of Samyang Corporation. He has upheld the principle of joint management with his cousin, a tradition passed down through the family. With a background in science and engineering, he is known for his meticulous nature and exceptional managerial analysis skills. #KimWon #SamyangCorporation #ViceChairman #KimFamily #SamyangGroup #Leadership #Chemistry #IndustrialEngineering #CorporateManagement #KoreanBusiness
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Vice Chairman of Samyang Corporation
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Chairman of OK Financial Group
Choi Yoon
- Choi Yoon is the Chairman of OK Financial Group. In an effort to shed the company’s past image as a loan provider, he has focused on corporate social responsibility initiatives while preparing for a transition into a comprehensive financial group. Born on September 6, 1963, in Nagoya, Japan, Choi is a third-generation Korean-Japanese who graduated from Nagoya University with a degree in economics. He initially founded a restaurant called "Shilla-kan," which featured yakiniku (Japanese-style grilled meat) as its main offering, and expanded the business to operate 60 branches at one point. After moving to South Korea, he established a venture capital company and invested in IT companies, but faced setbacks as the venture boom faded. When a Japanese lending company under the A&O Group was put up for sale, he organized a consortium called JNP with other Korean-Japanese entrepreneurs to acquire the company. He renamed the acquired company to "APLO." Through aggressive marketing under the "Rush & Cash" brand, Choi expanded the business and subsequently merged seven affiliate companies using the Rush & Cash brand. He acquired Miz Sarang, Korea IB Finance, and Yes Credit Information. Choi further expanded into the secondary financial sector by acquiring Yena Savings Bank and Yeju Savings Bank, establishing OK Savings Bank, and eventually exited the loan business altogether. In 2019, marking the 20th anniversary of the company’s founding, he changed the company name from APLO Service Group to "OK Financial Group." #OKFinancialGroup #ChoiYoon #RushAndCash #corporatesocialresponsibility #thirdgenerationKoreanJapanese #financialgroup #Nagoya #APLO #OKSavingsBank #MizSarang
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Chairman of OK Financial Group
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Chairman of the Board at Coupang, Inc.
Bom Kim
- Bom Kim(Korean: 김범석) is the Chairman of the Board and CEO of Coupang, Inc., the parent company of Coupang. After completing large-scale infrastructure development, he successfully shifted the company from "planned losses" to profitability. Kim has expanded Coupang's influence beyond e-commerce into sectors such as food delivery and online video streaming (OTT). He was born on October 7, 1978, in Seoul. Kim is a Korean-American who moved to the United States during middle school when his father, an overseas employee of Hyundai Construction, relocated there. Holding U.S. citizenship, he is known by his American name, Bom Kim. Kim graduated with a degree in political science from Harvard University and later earned an MBA from Harvard Business School. While at Harvard, he founded the magazine 'Current', which he eventually sold to 'Newsweek'. He began his career at the Boston Consulting Group. Kim founded 'Vintage Media Company', which produced a monthly magazine targeting elite university graduates, later selling the company. In 2010, with KRW 3 billion in startup capital, he co-founded Coupang with Sun-joo Yoon (a director with ties from Harvard and daughter of former Minister of Strategy and Finance Yoon Jeung-hyun) and Harvard Business School alumnus Jaewoo Koh, who serves as Vice President. Initially established as a social commerce company, Coupang transitioned to an e-commerce company, introducing the groundbreaking "Rocket Delivery" service, which positioned Coupang as one of the most formidable competitors in the online and offline retail sectors. In 2021, Kim took Coupang public on the New York Stock Exchange (NYSE), raising KRW 5 trillion (approximately USD 4.3 billion). These funds enabled Coupang to expand its nationwide logistics network and venture into new businesses such as 'Coupang Eats' and 'Coupang Play'. As a self-made entrepreneur and innovative business leader, Kim is often referred to as the "Jeff Bezos of Korea." #BomKim #Coupang #RocketDelivery #CoupangEats #CoupangPlay #ecommerce #NYSE #innovation #Harvard #selfmadeentrepreneur
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Chairman of the Board at Coupang, Inc.
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CEO of HK inno.N
Kwak Dal-won
- Kwak Dal-won is the CEO and President of HK inno.N. After CJ Healthcare was acquired by Korea Kolmar, its name was changed to HK inno.N. HK inno.N aims to maximize corporate value by increasing sales abroad for treatments like ‘K-CAB,’ a medication for gastroesophageal reflux disease, while also expanding its health functional foods and Health & Beauty (H&B) business segments. The company is also exploring new ventures, such as Contract Development and Manufacturing Organization (CDMO) services in biopharmaceuticals. Kwak was born on May 13, 1960. He graduated from Gyeongbok High School and earned a degree in business administration from Sungkyunkwan University, where he later obtained a master’s degree in marketing. Kwak started his career at Samsung Group and later held various positions at CJ CheilJedang’s pharmaceutical division, including roles as Head of Yeongnam Regional Sales, Head of Sales Support, and Head of the Second Business Division. When CJ CheilJedang’s pharmaceutical division became an independent company as CJ Healthcare, he served as Co-CEO. After the transition to a single-CEO system under Kang Seok-hee, Kwak led the Competitiveness Enhancement Task Force (TF). Following CJ Healthcare’s acquisition by Korea Kolmar and its renaming to HK inno.N, Kwak served as Head of Prescription Drugs (ETC) and Head of Production before being appointed as CEO of HK inno.N in 2022.
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CEO of HK inno.N
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Chairman of Kyeryong Construction
Lee Seung-chan
- Lee Seung-chan is the Chairman of Kyeryong Construction Industrial. He has shifted from conservative management focused on internal stability to a more aggressive expansion strategy. Lee has diversified the company’s business portfolio by expanding into distribution (such as highway rest areas) and leisure businesses (such as golf course management). Additionally, he has been promoting growth in modular housing, smart farming, and shared housing sectors. Born on November 27, 1976, in Daejeon, he is the youngest son and only son of Kyeryong Construction Industrial’s founder, Lee In-gu. Lee graduated from Daejeon High School and studied economics at Yonsei University. He earned both a master's and doctorate in architectural engineering from Chungnam National University. He began his career at Doosan Construction, gaining industry experience, before joining Kyeryong Construction Industrial as a director. He rose through the ranks, serving as senior managing director, executive vice president, and chief operating officer, eventually becoming president and CEO. As a second-generation executive leader, he held the CEO role but stepped down upon his promotion to chairman on March 28, 2023, retaining only his position as an inside director on the board. #LeeSeungchan #KyeryongConstruction #businessdiversification #modularhousing #smartfarming #sharedhousing #Chairman #expansionstrategy #secondgenerationCEO #leisurebusiness
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Chairman of Kyeryong Construction
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President of Kyungnam University
Park Jae-gyu
- Park Jae-gyu is the president of Kyungnam University, serving in this role for 21 years, with a total of 33 years as president, excluding a period when he briefly left the university for a government position. He served as the Minister of Unification under the Kim Dae-jung administration and was one of the key figures behind the first inter-Korean summit. A respected expert on North Korean and unification issues, Park has advised and consulted various administrations, spanning both conservative and progressive governments. Born on August 11, 1944, in Changwon, Gyeongnam, Park studied political science at Fairleigh Dickinson University in the U.S. and earned his master’s and doctoral degrees from the City University of New York Graduate School and Kyung Hee University, respectively. His older brother, Park Jong-gyu, former director of the Kyungnam University Foundation and a former Blue House Security Chief under President Park Chung-hee, established the foundation. Park Jae-gyu took on the role of corporate director for the foundation, consistently leading the university as president. He joined Kyungnam University in 1973 as a professor and served as director of the Institute for Far Eastern Studies, renowned for its North Korean research. He chaired the Inter-Korean Summit Promotion Committee and served as a presidential advisor on unification across the Roh Moo-hyun and Lee Myung-bak administrations, and as a unification advisory committee member under the Park Geun-hye administration. Park was instrumental in establishing Kyungnam University’s North Korean Studies program, developing it from an undergraduate program into a specialized graduate school and later into the University of North Korean Studies. Kyungnam University is the largest private university in Gyeongnam based on enrollment size. However, the freshman enrollment rate fell below 80% for the 2024 academic year, and the university failed to secure a spot in the major government-funded Glocal University 30 project in both 2023 and 2024. This has led to calls for renewed leadership to help the university progress. #ParkJaegyu #KyungnamUniversity #NorthKoreanStudies #unificationexpert #SouthKoreangovernment #InterKoreanSummit #highereducation #leadershiprenewal #GlocalUniversity30 #Gyeongnam
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President of Kyungnam University
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Chairman of Mgame Corp
Son Seung-chul
- Son Seung-chul is the Chairman of Mgame and also serves as CEO of its affiliate, Mfarm, an agricultural company. He has focused on discovering new business opportunities. In 2024, he returned as an internal director of Mgame to concentrate on the gaming business. Born on June 8, 1966, in Andong, North Gyeongsang Province, Son graduated from Chung-Ang University with a degree in electronic engineering and earned a master’s degree in semiconductor engineering from the same university's graduate school. He founded Wizgate, the predecessor of Mgame, as a game development company and became its CEO. Son later rose to the position of chairman of Mgame but stepped down in 2018. He returned in 2021 as the non-registered chairman of Mgame and took on the role of internal director in 2024. As a first-generation developer in the gaming industry, Son is a business leader who transitioned from development to management. After entrusting management duties to Kwon Yi-hyung, the current CEO of Mgame and his junior at Chung-Ang University, he began focusing on development. Through flagship games such as 'Yulgang Online' and 'Knight Online,' he helped Mgame reach a revenue level of approximately KRW 80 billion. #SonSeungchul #Mgame #KoreanGamingIndustry #YulgangOnline #KnightOnline #businessleadership #gameindustrypioneer #ChungAngUniversity #gamingdevelopment #SouthKorea
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Chairman of Mgame Corp
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Chairman of Infac
Choi Ohe-gil
- Choi Ohe-gil is the chairman of Infac, a company that manufactures automotive parts, including actuators and control cables. Choi was born on January 23, 1942, in Gangneung, Gangwon Province. He graduated from Gangneung Commercial High School and earned a degree in Business Administration from Korea University, where he also completed a master’s degree from the Graduate School of Business Administration. Choi’s career includes roles at Korea Development Bank and Daishin Securities, after which he served as CEO of Dongshin Paper Industry. In 1991, he acquired control cable company Samyoung Cable (now Infac) and became its largest shareholder and CEO. The company name 'Infac' combines 'Infinite' (symbolizing boundlessness) and 'Accuracy.' In March 2023, Choi stepped down as CEO. He holds certifications as a certified public accountant and a tax accountant. Currently, Choi is focused on future growth investments in power conversion printed circuit boards (PCBs) for eco-friendly vehicles and battery components for electric vehicles. #ChoiOhegil #Infac #AutomotiveParts #ElectricVehicles #EcoFriendlyTechnology #KoreaUniversity #ControlCables #CertifiedPublicAccountant #ElectricVehicleComponents #FutureInvestments
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Chairman of Infac
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CEO of Hyundai Rotem
Lee Yong-bae
- Lee Yong-bae is the President and CEO of Hyundai Rotem. He is recognized as a leading financial expert within the Hyundai Motor Group, where he plays a key role in driving financial structure improvements. Born on April 8, 1961, Lee graduated from Yeongnak Commercial High School (now Yeongnak Medical Science High School) and earned a degree in Business Administration from Jeonju University. He later obtained a master’s degree from the Kyung Hee University Graduate School of Business. Lee began his career in the accounting department of Hyundai Precision, the predecessor of Hyundai Mobis. He later held various roles, including management planning at Hyundai Motor, Head of Business Management, and Head of Planning & Coordination Division 3. He also served in senior roles at Hyundai Wia, overseeing planning, finance, procurement, and management. After serving as Vice President in charge of sales at HMC Investment & Securities, and as CEO of Hyundai Motor Securities, Lee was appointed CEO of Hyundai Rotem in 2020. Lee is particularly committed to helping employees stay informed about trends in future industries. #LeeYongBae #HyundaiRotem #HyundaiMotorGroup #financialexpert #corporatemanagement #futureindustry #leadership
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CEO of Hyundai Rotem
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CEO of Nexon
Lee Jung-hun
- Lee Jung-hun is the CEO of Nexon. Nexon is headquartered in Japan and serves as the parent company of the Nexon Group. It oversees Nexon Korea as a subsidiary. The company is focusing on expanding its existing games to overseas markets and launching new titles by utilizing new intellectual property (IP) to maintain its growth trajectory. Following the passing of Kim Jung-ju, the founder of Nexon and CEO of NXC, Lee has been concentrating on stabilizing the organization. Lee was born on March 12, 1979. He began his career at Nexon Korea as a game planning associate and later held various positions, including Head of Neople Control Center, Head of FIFA Division at Nexon Korea, and Vice President. He was eventually appointed as CEO of Nexon Korea and, by the end of 2023, was designated as the CEO of Nexon's Japanese headquarters. Lee demonstrated his expertise in marketing through the use of game IPs and played a pivotal role in the successful launch of *FIFA Online 3*, helping it gain popularity in the domestic PC café market. As a rare non-developer to become a CEO in the gaming industry, Lee has garnered attention for both his management capabilities and performance. He has been a gaming enthusiast since his high school years, particularly enjoying Nexon games, and values diversity in game development. #LeeJungHun #Nexon #NexonKorea #gamingindustry #FIFAOnline3 #NXC #Neople #gameIP #gamingCEO #PCcafe
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CEO of Nexon
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Chairman of KC Tech
Koh Seok-tae
- Koh Seok-tae is the Chairman of KC Tech and the founder of the company. He also serves as the Chairman (Board Chairman) of KC. Born on March 31, 1954, in Seoul, Koh graduated from Seoul High School and earned a degree in Chemical Engineering from Sungkyunkwan University. He began his career in sales at Daesung Oxygen, an industrial gas production company under the Daesung Group. In 1987, he founded a trading company that imported and sold semiconductor equipment. Koh pursued his dream of localizing semiconductor equipment by partnering with suppliers from the United States and Japan, developing semiconductor process equipment starting in 1991. He has received numerous government commendations for his contributions to the localization of semiconductor equipment. In 2017, Koh restructured the company through a corporate split: KC focused on chemical engineering areas such as gases for semiconductors and displays, while KC Tech specialized in manufacturing and selling front-end equipment and consumable materials for semiconductor and display processes. KC Tech’s core business revolves around producing equipment and consumables for semiconductor and display manufacturing processes, with major clients including Samsung Electronics and SK Hynix. Koh is regarded as a typical "salesman-turned-CEO." He has been working to expand KC Tech’s business beyond its position as Korea’s only provider of chemical mechanical polishing (CMP) process equipment into new areas such as materials development. #KohSeokTae #KCTech #KC #semiconductorequipment #CMP #SamsungElectronics #SKHynix #semiconductorlocalization #chemicalengineering #businessleader
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Chairman of KC Tech
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President of Inje University
Jeon Min-hyon
- Jeon Min-hyon is the President of Inje University, currently serving his second term after successfully being reappointed. He focuses on educational innovation, enhancing research capabilities, and boosting glocal competitiveness to meet the needs of the regional community. Jeon is a materials scientist specializing in compound semiconductors and solar cells. He was born on November 1, 1957, in Cheorwon, Gangwon Province. After graduating from Myeongji High School in Seoul, he earned a bachelor's degree in Metallurgical Engineering from Hanyang University. He then pursued advanced studies in the United States, receiving a master’s degree in Materials Engineering from the University of Kentucky and a Ph.D. in Materials Engineering from the University of Florida. Jeon worked as a researcher at the Agency for Defense Development and served as a senior researcher at Samsung Advanced Institute of Technology before joining Inje University in 1999 as a professor in the Department of Nano Convergence Engineering. Within the university, he has held various leadership positions, including Director of Research Innovation, Head of the Industry-Academia Cooperation Foundation, and the inaugural Dean of the BNIT Convergence College, before being appointed as President. In 2024, Inje University joined the Glocal University 30 initiative, providing new momentum for the university's next stage of development. #JeonMinHyon #InjeUniversity #educationinnovation #glocalcompetitiveness #materialsengineering #compoundsemiconductors #solarenergy #universityleadership #GlocalUniversity30
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President of Inje University
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CEO of Neptune
Jeong Wook
- Jeong Wook is the CEO of the game development company Neptune. He leads Neptune alongside Co-CEO Kang Yul-bin. He focuses on improving management efficiency and diversifying the company’s business. He was born on December 15, 1972. After graduating from Seoul National University with a degree in Inorganic Materials Engineering, he worked as an analyst at Accenture, a U.S.-based management consulting firm. He later joined the portal site operator Freechal before moving to NHN, where he served as the CEO of NHN Hangame. While at NHN Hangame, he managed the web board division before leaving to establish Neptune in 2012. He is a seasoned expert in the gaming industry, with extensive experience. He has a strong background in investments and values building a robust personal network. #JeongWook #Neptune #gamingindustry #CEO #Accenture #NHN #Freechal #investment #gameexpert #businessdiversification
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CEO of Neptune
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CEO of Intops
Kim Keun-ha
- Kim Keun-ha is the CEO and President of Intops. He is a second-generation business leader, and his father, Kim Jae-kyung, serves as the Chairman of Intops. Kim was born on October 31, 1977. He graduated from the University of Washington and earned an MBA from the Michael G. Foster School of Business at the same university. After gaining experience at PCA Asset Korea and Samsung Electronics, he joined Intops in 2006. In 2013, Kim was promoted to Executive Vice President and Chief Operating Officer (COO), and in 2015, he became CEO and President. Kim aims to develop a “manufacturing platform” that collaborates with companies that have technology but lack manufacturing capabilities. He views contract manufacturing for robots as a key growth driver. Intops has gained attention by producing robots for Bear Robotics and Samsung Electronics. #KimKeunha #Intops #KimJaekyung #CEO #manufacturingplatform #robotics #BearRobotics #Samsung #leadership #businessmanagement
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CEO of Intops
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CEO of DB Financial Investment
Kwak Bong-seok
- Kwak Bong-seok is the CEO and President of DB Financial Investment. He is actively working to enhance corporate value, becoming the first among small- and medium-sized securities firms to introduce a value-up disclosure. Kwak is focusing on improving profitability by strengthening operations linked to the Private Investment Bank (PIB). He aims to build a stable revenue structure through corporate finance and asset management while reducing exposure to real estate project financing (PF). He is also improving financial soundness by enhancing key metrics, such as the Net Capital Ratio (NCR). In the Equity Capital Market (ECM), the company has made its mark by successfully managing IPOs, particularly for biotech and beauty companies. Kwak was born on February 5, 1969, in Sacheon, South Gyeongsang Province. He graduated from Jeonju High School and went on to earn a degree in law from Korea University. He began his career at Korea Investment & Trust Management (formerly Daehan Investment Trust) before joining Dongbu Securities, which later became DB Financial Investment. He is regarded as an expert in investment finance, including real estate. Known for his down-to-earth personality, Kwak enjoys open communication with employees. He is meticulous in his work and has built significant experience in corporate finance (IB) and project financing (PF), earning a reputation for his market insights. He possesses an extensive personal network and enjoys sports such as baseball and golf in his free time. #KwakBongseok #DBFinancialInvestment #corporatefinance #projectfinancing #IPO #financialsoundness #PIB #investmentbanking #networking #sports
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CEO of DB Financial Investment
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Vice Chairman of SUN&L
Chung Yun-joon
- Chung Yun-joon is the Vice Chairman of SUN&L and also serves as a director of its subsidiary, SUN&L Interior. He was born on April 21, 1967, in Busan as the son of Chung Hae-soo, the former chairman and founder of SUN&L. His grandfather, Chung Tae-sung, who founded Seongchang Store, is the originator of the company. Chung graduated from the Attached High School of Hongik University’s College of Education and earned a degree in Persian from Hankuk University of Foreign Studies. He later obtained a master’s degree from Vanderbilt University’s Graduate School of Business in the United States. SUN&L was formerly known as SunChang Industry and was renowned for its furniture brand, Sun Furniture. Chung joined SunChang Industry in 1991 and served as its CEO from April 2005 to March 2012. In March 2012, he stepped down as CEO and was promoted to Vice Chairman of SUN&L (formerly SunChang Industry). Chung is known for his ability to respond quickly to changing market trends. Amid a downturn in the domestic construction sector, he made the bold decision to exit the company’s timber business, which accounted for half of its revenue. Instead, he pursued a strategic shift by acquiring cosmetic packaging manufacturers such as Darin and Illupack. Chung now faces the challenge of filling the performance gap left by the timber business, which once contributed 40% of revenue, and steering the company toward profitability. #ChungYunjoon #SUNandL #SunChangIndustry #leadership #businessstrategy #timberbusiness #cosmeticpackaging #Illupack #acquisitions #marketadaptation #Koreanbusiness
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Vice Chairman of SUN&L
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CEO of Hyundai Commercial
Jeon Si-woo
- Jeon Si-woo is the Co-CEO of Hyundai Commercial, sharing the role with Chung Tae-young, Vice Chairman and CEO of Hyundai Card and Hyundai Commercial. Aligned with Hyundai Commercial’s strategy of balanced growth, Jeon focuses on building a well-rounded asset portfolio across industrial, corporate, and investment finance sectors. He was born on April 14, 1970. Jeon graduated from Yonsei University with a degree in Business Administration. After joining Hyundai Capital, he gained nearly 30 years of experience working across Hyundai Card and Hyundai Commercial. Jeon is recognized as a financial and strategic expert, having built his career primarily in management and strategic planning roles. He also served as the head of the Corporate Finance Division at Hyundai Commercial, earning high regard for his deep understanding of corporate finance. #JeonSiwoo #HyundaiCommercial #HyundaiCard #HyundaiCapital #corporatefinance #strategicplanning #balancedgrowth #Koreamarket #financeindustry #businessleader
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CEO of Hyundai Commercial
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Vice Chairman of Insung Information
Won Jong-yoon
- Won Jong-yoon is the Vice Chairman and CEO of Insung Information and also serves as Vice Chairman of the SNET Group. As the founder of Insung Information, he is recognized as one of the first-generation entrepreneurs in South Korea’s system integration (SI) industry. Won was born on January 3, 1959, in Seoul. He graduated from Yeouido High School and earned a degree in Nuclear Engineering from Seoul National University. After completing his military service as an officer in the Korean Army, he worked at Hyundai Electronics, Samil Economic Research Institute, and Gain Systems before founding Insung Information in 1992. In 2020, Insung Information became a subsidiary of SNET Systems. Won envisions IT-managed services and digital healthcare as the future growth areas for Insung Information. #WonJongyoon #InsungInformation #SNETGroup #systemintegration #entrepreneurship #ITmanagedservices #digitalhealthcare #SouthKorea #firstgenerationventures #businessleadership
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Vice Chairman of Insung Information
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Executive Advisor of EcoPro
Lee Dong-chae
- Lee Dong-chae(Korean: 이동채) is the Executive Advisor of EcoPro. He is also the founder of the EcoPro Group. The EcoPro Group, which focuses primarily on battery materials, is preparing countermeasures as it faces challenges due to a slowdown in the growth of the electric vehicle market. He was born on December 10, 1959, in Pohang, Gyeongsangbuk-do. He graduated from Daegu Commercial High School and later earned a degree in Business Administration from Yeungnam University. Lee started his career at Korea Housing Bank and briefly worked at Samsung Electronics. After earning his CPA (Certified Public Accountant) license, he worked as an accountant. Despite having a stable income as an accountant, he transformed into an entrepreneur, determined to become a business leader supporting 10,000 employees. In 1998, he founded *Korea Zeoleum*, which became the foundation of EcoPro Group. He was inspired to enter the environmental business sector after learning about the Kyoto Protocol. Through unwavering efforts in the battery material business, he developed EcoPro into one of the leading companies listed on the KOSDAQ market. He was sentenced to prison for gaining profits through stock trading based on insider information but was released through a special amnesty granted on Liberation Day. Before founding EcoPro, he lost his entire fortune when a fur business he had invested in with a relative went bankrupt during the Asian financial crisis. From this experience, he learned the importance of unique business ideas, human resources, and the role of capital markets. In 2004, he received a proposal from Cheil Industries to acquire its cathode materials and precursor business, marking the beginning of EcoPro’s focus on battery materials. With stock assets worth over a trillion KRW, he ranked among the top 10 wealthiest individuals in South Korea based on stock holdings by the end of 2023. He emphasizes the importance of talent. #LeeDongchae #EcoPro #battery #electricvehicle #KyotoProtocol #entrepreneur #KOSDAQ #CPA #KoreaZeoleum #LiberationDay
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Executive Advisor of EcoPro
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Chairman of the board at Devsisters
Lee Ji-hoon
- Lee Ji-hoon is the founder and chairman of the board at Devsisters. He led the company alongside co-CEO Kim Jong-heon but transitioned to the role of chairman in March 2024, appointing Jo Gil-hyun as the sole CEO. To improve the company’s performance, Lee is focusing on expanding the *Cookie Run* intellectual property (IP), exploring global markets, and developing new game titles. Born in November 1978 in Busan, Lee Ji-hoon studied Visual Communication Design at Hongik University but did not complete the program. He began his career at the portal site Freechal and later joined NHN (now Naver). In 2007, he founded an educational content production organization called Extras Standard, which was rebranded as Moblier in 2009, where he served as CEO. The company changed its name again in 2010 to Devsisters. In March 2024, Lee appointed Jo Gil-hyun, co-CEO of Studio Kingdom, as the sole CEO of Devsisters and stepped back to focus on his role as chairman of the board. Lee is known for his resolute personality. #LeeJihoon #Devsisters #CookieRun #gamingindustry #IPexpansion #globalmarkets #gameindustryleadership #Koreanbusiness #entrepreneurship #StudioKingdom
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Chairman of the board at Devsisters
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Chairman of School Board at Kwangwoon University
Cho Sun-young
- Cho Sun-young is the Chairperson of Kwangwoon University, having assumed the position in 2018. She has presented a vision of transforming the university into one that opens the future through creativity, communication, and innovation. Her grandfather is Cho Kwang-woon, the university’s founder, and she is the eldest daughter of Cho Moo-sung, the former chairperson. Born in 1978, Cho Sun-young graduated from Carnegie Mellon University in the United States and completed her graduate studies at the University of Illinois at Urbana-Champaign. She also completed coursework for a Ph.D. in Organizational Theory at Yonsei University’s Graduate School of Business. Cho’s professional career includes roles such as Consulting Manager at Samjong KPMG and Senior Researcher in Corporate Social Responsibility Strategy at NSYSCOM. She entered the Kwangwoon Education Foundation by serving as Policy Director and later became a board member of the foundation, rising to Chairperson within two years. She also serves as Chairperson of the Hwado Memorial Foundation, which commemorates the spirit of the university’s founder. In addition, Cho is an independent director at Daishin Securities. She is actively involved in education policy, serving as a member of the Glocal University Committee and the University Innovation Subcommittee of the Education Reform Advisory Committee under the Ministry of Education. #ChoSunyoung #KwangwoonUniversity #educationalleadership #CarnegieMellon #DaishinSecurities #highereducation #universityinnovation #Koreaneducation #YonseiUniversity #philanthropy #organizationaltheory
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Chairman of School Board at Kwangwoon University
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CEO of Kolon Industries
Kim Yeong-bom
- Kim Yeong-bom is the CEO and President of the Manufacturing Division of Kolon Industries. He oversees all business operations except for the fashion division. Together with Yoo Seok-jin, CEO and President of the Fashion Division, he leads Kolon Industries under a dual-CEO system. Kim is actively pursuing various new business opportunities, ranging from securing advanced materials such as aramid fiber and atometal to developing biodegradable plastics and recycling used batteries. He was born on May 26, 1965. After graduating with a degree in Business Administration from Yonsei University, Kim began his career in the Kolon Code Business Division. He has concurrently held CEO positions at Kolon Plastics and Kolon BASF Inno-Form. Kim also served as the President and CEO of Kolon Glotech before being appointed to his current position as CEO and President of the Manufacturing Division at Kolon Industries. In his first year in office, the company faced underperformance, and with weak results continuing into 2024, improving performance has become a key challenge for him. #KolonIndustries #KimYeongbom #CEO #advancedmaterials #batteryrecycling #biodegradableplastics #aramidfiber #businessleadership #Koreanindustry #dualleadership
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CEO of Kolon Industries
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CEO of Bukwang Pharmaceutical
Lee Jae-young
- Lee Jae-young is the CEO and President of Bukwang Pharmaceutical. He also serves as Executive Vice President of Strategic Planning at OCI Holdings. Lee has focused on improving Bukwang Pharmaceutical’s profitability, with particular emphasis on its central nervous system (CNS) pharmaceutical business. He was born on January 29, 1974. Lee graduated from Hyundai High School in Seoul and earned a degree in Business Administration from Seoul National University. He later obtained an LLM from Columbia Law School in the United States. After passing the 40th bar exam, Lee worked as a prosecutor at the Seoul District Prosecutors’ Office, Chuncheon District Prosecutors’ Office, and the Daejeon High Prosecutors’ Office. In 2019, he transitioned to corporate management, becoming a managing director of business planning at OCI Holdings. In 2023, he was promoted to Executive Vice President of Strategic Planning at OCI Holdings. The following year, in 2024, he was appointed CEO and President of Bukwang Pharmaceutical. Lee transformed Bukwang Pharmaceutical’s business structure by shifting the focus to contract sales organizations (CSOs) and establishing the CNS Business Division directly under the CEO’s office. He also prioritized the marketing of 'Latuda', a CNS drug. These efforts contributed to Bukwang Pharmaceutical’s return to profitability in the third quarter of 2024. #LeeJaeyoung #BukwangPharmaceutical #OCIHoldings #CNSBusiness #Latuda #CorporateManagement #KoreanPharmaceuticals #Profitability #BusinessStrategy #ColumbiaLawSchool #SNU
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CEO of Bukwang Pharmaceutical
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Chairman of Elentec
Lee Se-yong
- Lee Se-yong is the Chairman and CEO of Elentec. He is the founder of Elentec, a company that supplies mobile phone cases and battery packs to Samsung Electronics. Lee was born on January 26, 1949. He graduated from Kyungshin High School and earned a degree in Electronic Engineering from Kyung Hee University. After graduating from university, Lee worked at Samsung Electronics before founding an electronic components company, Samil Precision Industry (now Elentec), in 1978. Over the past 40 years, he expanded Elentec’s business to include storage batteries, camcorder batteries, mobile phone cases, and small battery packs, growing it into a major electronics component manufacturer with annual revenue nearing KRW 1 trillion. In the 2020s, Lee has focused on diversifying the company’s business into new sectors, including e-cigarettes, medium-to-large battery packs, and mobility battery packs. Lee also identifies home energy storage systems (ESS) as a key future growth driver, given the expanding renewable energy market. #LeeSeyong #Elentec #SamsungElectronics #ElectronicsManufacturing #BatteryPacks #ESS #EnergyStorage #CorporateGrowth #NewBusiness #KoreanBusiness #Entrepreneur
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Chairman of Elentec
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CEO of CJ CGV
Heo Min-heoi
- Heo Min-heoi is the CEO of CJ CGV. He is focusing on improving the company’s financial structure while promoting the future growth strategy, "Next CGV," in response to changing movie-watching trends following the end of the COVID-19 pandemic. He was born on March 15, 1962, in Busan. Heo graduated from Masan High School and earned a degree in Accounting from Pusan National University. He also completed an MBA at the Graduate School of Business at Yonsei University. He began his career at the finance team of CJ CheilJedang and later held key positions such as Head of the Management Team and Head of the Business Support Division at CJ Investment & Securities, as well as Director of the Business Support Division at CJ Hello. Heo served as Vice President in charge of business operations at CJ Corporation, the holding company of the CJ Group, before being appointed CEO of CJ Foodville. During Chairman Lee Jay-hyun’s absence from management, Heo took on the role of Vice President in charge of overall business operations at CJ. Later, he became the CEO of CJ OliveNetworks and also headed the Creative Economy Promotion Division within CJ Group. Heo subsequently managed the business support division at CJ CheilJedang before being appointed CEO of CJ O Shopping. After the merger of CJ O Shopping and CJ E&M, he served as the CEO of CJ ENM and then transitioned to his current role as CEO of CJ CGV. Known for his strong execution and drive, Heo has often been deployed to struggling CJ affiliates to restore them to stability, acting as a firefighter for the group. #HeoMinheoi #CJCGV #NextCGV #CJGroup #KoreaCinema #BusinessLeadership #CJCheilJedang #CJOShopping #CJENM #PostPandemic
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CEO of CJ CGV
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Director of National Policy at the Office of the President
Sung Tae-yoon
- Sung Tae-yoon is the Director of National Policy at the Office of the President. He was born in 1970 in Seoul. Sung graduated from Guro High School and earned a degree in Economics from Yonsei University. He went on to complete a master’s degree in Economics from Yonsei University and a PhD in Economics from Harvard University. He began his career as an Associate Research Fellow on the Financial Economics Team at the Korea Development Institute (KDI) and later served as an assistant professor at the Korea Advanced Institute of Science and Technology (KAIST). Since 2007, he has been a professor in the Department of Economics at Yonsei University. During his tenure as a professor, Sung actively participated in policy advisory roles for the Ministry of Economy and Finance and the Financial Services Commission. He gained recognition as a macroeconomics expert and advocate of free-market economics. Sung was also a vocal critic of the Moon Jae-in administration’s income-led growth policy. In 2023, he was appointed Director of National Policy in the administration of President Yoon Suk-yeol. During his graduate studies at Yonsei University’s College of Business and Economics, Sung studied under the late Yoon Ki-joong, a former professor and the father of President Yoon Suk-yeol. #SungTaeyoon #DirectorOfNationalPolicy #YoonSukyeol #OfficeOfThePresident #Economics #YonseiUniversity #HarvardUniversity #KDI #KAIST #MacroEconomics #FreeMarketEconomy
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Director of National Policy at the Office of the President
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CEO of GC Biopharma
Huh Eun-chul
- Huh Eun-chul is the President and CEO of GC Biopharma. After two attempts, he successfully began the overseas expansion by launching the sale of the blood-derived immune deficiency treatment, 'Aliglo,' in the U.S. He is also focusing on developing vaccines and treatments for rare diseases, thereby expanding GC Biopharma's business scope. Huh was born on February 23, 1972, in Seoul as the second son of Huh Young-sup, former chairman of GC Biopharma, and his wife, Jung In-ae. His grandfather, Huh Chae-kyung, was the founder of Hanil Cement. He graduated from Yeongdong High School in Seoul and earned a degree in food engineering from Seoul National University. He also completed a master’s degree in biochemical engineering at Seoul National University’s graduate school and pursued a Ph.D. in food engineering at Cornell University. Huh joined GC Biopharma’s Corporate Planning Office and mainly worked in research and development (R&D). After holding positions as managing director and senior managing director of the R&D Planning Office, he expanded his role as Chief Technology Officer (CTO). Later, he oversaw overall management as the head of the Corporate Coordination Office. He initially led GC Biopharma as a co-CEO alongside Vice Chairman Cho Soon-tae. When Cho stepped down, Huh became the sole CEO, assuming full responsibility for managing the company. He is a devout Christian. Known for his dislike of rigid formalities, Huh promotes a horizontal organizational culture and is regarded among employees as a symbol of youthfulness and open communication. #GCBiopharma #HuhEunchul #CEO #pharmaceuticals #Aliglo #rareDiseases #immunodeficiency #biotech #innovation #corporateLeadership
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CEO of GC Biopharma
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Chairman of Jeil Pharma Holdings
Han Seung-soo
- Han Seung-soo is the chairman of Jeil Pharma Holdings. He was born on November 10, 1947 (lunar calendar) in Seoul as the son of the late Han Won-seok, founder of Jeil Pharmaceutical. Han graduated from Seoul High School and the business administration department at Oklahoma State University in the United States. He joined Jeil Pharmaceutical in 1975 and has been serving as the chairman of Jeil Pharma Holdings since 2017. Under his leadership, the company has expanded its business focus from products such as the “Penguin Patch” Jeilpaf and the arthritis patch treatment *Kepentech* to new drug development. Han is currently concentrating efforts on listing Onconic Therapeutics, a specialized subsidiary for drug development, on the KOSDAQ market by 2024. #HanSeungsoo #JeilPharmaHoldings #OnconicTherapeutics #JeilPharmaceutical #PenguinPatch #KOSDAQIPO #newdrugdevelopment #Kepentech #pharmaceuticals #businessleader
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Chairman of Jeil Pharma Holdings
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Chairman of Miwon Holdings
Kim Chong-don
- Kim Chong-don is the Chairman and CEO of Miwon Holdings and also serves as the co-CEO of Dongnam Chemical. He was born on January 1, 1954, as the eldest son of Kim Jin-bak, the founder of Miwon Commercial. Together with his younger brother, Kim Chong-man, the Chairman and CEO of Miwon Chemicals, he has managed the Miwon corporate group. The Miwon group is a mid-sized chemical company specializing in basic chemical materials and advanced precision chemical materials. Kim Chong-don graduated from Jungang High School in Seoul and earned a degree in chemical engineering from Seoul National University. He later obtained a master’s degree from the Korea Advanced Institute of Science and Technology (KAIST). He joined Miwon Commercial in 1976 and became President and CEO in 1990. From 1999 to February 2015, he served as Chairman and CEO of Miwon Commercial. After stepping down from that role, he returned in 2017 to become Chairman and CEO of Miwon Holdings. Kim is recognized as a second-generation business leader who founded Miwon Specialty Chemical and quickly developed it into a globally competitive company in the specialty chemicals sector. #KimChongdon #MiwonHoldings #MiwonGroup #chemicalindustry #DongnamChemical #specialtychemicals #businessleadership #SeoulNationalUniversity #KAIST #familybusiness
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Chairman of Miwon Holdings
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Vice President of Dongwha Pharm
Yoon In-ho
- Yoon In-ho is the Chief Operating Officer (COO) and Vice President of Dongwha Pharm. He also serves as the CEO of its affiliate DWP Holdings and its subsidiary Dongwha GMP. Yoon focuses on expanding into overseas markets and developing new business ventures. He was born on February 11, 1984. He studied economics at the University of Wisconsin–Madison. Yoon joined Dongwha Pharm in 2013 as a manager in the Finance and IT Department. He later held positions such as Deputy General Manager of the Central Nervous System (CNS) Team, Director of Strategic Planning, Managing Director, and Senior Executive Director. In 2022, he was promoted to Vice President and COO. He is a fourth-generation leader of Dongwha Pharm. Yoon is known for his strong drive and spirit of challenge. #YoonInHo #DongwhaPharm #COO #DWPHoldings #leadership #newbusiness #overseasexpansion #CNSteam #fourthgeneration #strategy
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Vice President of Dongwha Pharm
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CEO of Kiwoom Asset Management
Kim Ki-hyun
- Kim Ki-hyun is the CEO of Kiwoom Asset Management. He focuses on improving the company’s portfolio through the development of various new products. Known as a "bond expert," Kim has worked as a researcher in the bond sector of securities firms and as a fund manager at asset management companies. He was born in 1967 in Daegu. After graduating from Neungin High School in Daegu, he earned his bachelor’s degree in economics from Sogang University. He then pursued both a master’s and a doctoral degree in economics at the same university. Kim started his career at Allianz Life Insurance and later worked as a bond researcher at Samsung Securities’ Research Center. He entered the asset management industry by joining the bond management team of Samsung Investment Trust Management, now known as Samsung Asset Management. He was recruited as the head of the bond management team at Woori Asset Management, the predecessor of Kiwoom Asset Management, and went on to serve as the head of the bond management division and Chief Investment Officer (CIO) overseeing the securities division at Kiwoom Asset Management. In March 2024, Kim was appointed CEO of Kiwoom Asset Management. He is known for his meticulous approach to risk management and emphasizes the importance of teamwork. As the CEO, he faces the challenge of expanding the company’s market share in the ETF sector, which is considered a new growth area for asset management firms. #KimKiHyun #KiwoomAssetManagement #CEO #bondexpert #riskmanagement #ETFs #assetmanagement #teamwork #fundmanager #SogangUniversity
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CEO of Kiwoom Asset Management
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Chairman of Unitekno
Lee Jwoa-young
- Lee Jwoa-young is the Chairman and CEO of Unitekno and the founder of the company. Unitekno is an automotive parts manufacturer specializing in the production of plastic injection-molded components for automobiles. Lee was born on August 3, 1955, in Busan and graduated from Haedong High School in Busan. After gaining experience at various automotive parts companies, he founded Ilshin Industries in 1979, though the venture was unsuccessful. In 1982, he joined Samyang Chemical, a defense contractor, where he worked until 1993, eventually rising to the position of Production Manager. In 1993, Lee founded Daesung Unitekno, a plastic injection molding company, which later became known as Unitekno. Lee follows a management philosophy focused on “growth with stability,” prioritizing financial soundness. He views electric vehicle (EV) battery cases and energy storage system (ESS) cases as key future growth drivers for the company. #LeeJwoaYoung #Unitekno #founder #automotiveparts #plasticinjection #EVbattery #ESS #growthwithstability #financialsoundness #management
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Chairman of Unitekno
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CEO of Hanwha E&C Division
Kim Seung-mo
- Kim Seung-mo is the President and CEO of Hanwha Corporation E&C Division. Until the 2022 consolidation of Hanwha's defense divisions, he held dual roles as President and CEO of both the defense and construction divisions. After the integration, he now focuses solely on leading the E&C Division. Kim is committed to advancing large-scale mixed-use development projects, a key strength of Hanwha's E&C Division, while expanding into data centers and eco-friendly business areas. He was born on August 3, 1963, in Jeju. Kim graduated from O-Hyun High School in Jeju and earned a degree in Industrial Engineering from Sungkyunkwan University. He joined Hanwha Group, initially handling new business initiatives. He later worked at Hanwha Q CELLS Korea, where he served as Head of Domestic Business, Chief Operating Officer, and eventually CEO, before returning to Hanwha as an executive overseeing business strategies. Kim also held strategic roles at Hanwha Techwin, Hanwha Land Systems, and Hanwha’s Business Support Division, along with leading the overall management of Hanwha’s defense business. In 2022, following the merger of Hanwha E&C into Hanwha Corporation, Kim was appointed as President of the E&C Division. He is recognized as a strategic expert in Hanwha’s core businesses of defense and manufacturing. #KimSeungmo #Hanwha #E&C #defenseindustry #manufacturing #datacenter #greenbusiness #corporatestrategy #Koreabusiness #leadership
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CEO of Hanwha E&C Division
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Minister of Science and ICT
Yoo Sang-im
- Yoo Sang-im is the Minister of Science and ICT. He focuses on securing research and development capabilities by fostering talent in science and engineering and strengthening competitiveness in future strategic technologies. Yoo is also interested in establishing the AI Basic Act and restructuring telecommunications policies. He was born on October 10, 1959, in Yeongwol, Gangwon-do. He graduated from Kyungbock High School and earned a degree in ceramic engineering from Seoul National University. Yoo obtained a master’s degree in inorganic materials engineering from Seoul National University and a Ph.D. in materials engineering from Iowa State University in the United States. He has worked as a postdoctoral researcher at the Ames Laboratory under the U.S. Department of Energy (US-DOE), a visiting researcher at Japan's Superconductivity Research Laboratory, and a senior researcher at the Railway Technical Research Institute (RTRI). He also served as a professor in the Department of Materials Science and Engineering at Seoul National University. Yoo held roles such as Director of the Institute of Advanced Materials at Seoul National University, President of the Korean Superconductivity and Cryogenics Society, and an elected member of the National Academy of Engineering of Korea. He was appointed as the second Minister of Science and ICT under the Yoon Suk-yeol administration. Known for his gentle personality, he emphasizes the importance of connecting technology with the needs of the industrial field. #YooSangim #ScienceICT #KoreaGovernment #AIpolicy #EngineeringEducation #MaterialsScience #Superconductivity #ResearchDevelopment #TechnologyPolicy #YoonSukyeol
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Minister of Science and ICT
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CEO of Uangel
Ryu Jy-weon
- Ryu Jy-weon is the CEO of Uangel, jointly overseeing the company’s management with Vice Chair Park Ji-hyang, the spouse of the late Chairman Choi Choong-yeol, the company’s founder. Ryu was born on December 6, 1965, in Daegu. He graduated from Simin High School in Daegu and earned a degree in electronic engineering from Yonsei University. After working as a researcher at SK Telecom, he left the company during the IMF financial crisis, joining colleagues to establish Uangel. Following the passing of Chairman Choi Choong-yeol, Ryu took over the leadership of the company. Uangel specializes in software development, providing communication networks, Internet of Things (IoT) services, and ICT-based educational content for children to domestic and international telecom operators. Ryu also leads initiatives through the Uangel Voice Foundation, supporting students majoring in vocal performance. He is known for practicing "human-centered management," focusing on listening to and valuing the voices of individual employees. #RyuJyweon #Uangel #KoreanTech #ICT #IoT #Telecommunications #HumanCenteredManagement #UangelVoiceFoundation #Leadership #KoreanBusiness
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CEO of Uangel
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CEO of Hyundai Marine & Fire Insurance
Cho Yong-il
- Cho Yong-il is the Vice Chairman and Co-CEO of Hyundai Marine & Fire Insurance. He has been working to strengthen the corporate insurance agency channel to expand the sale of long-term insurance policies with high profitability. He is leading efforts to integrate information technology (IT) into insurance operations to enhance customer convenience and improve operational efficiency. Cho was born on August 18, 1958, in Daegu. He graduated from Gyeongbuk High School in Daegu and obtained a degree in English Language and Literature from Seoul National University. He began his career at Hyundai Engineering & Construction and later moved to Hyundai Marine & Fire Insurance, where he held various positions, including General Insurance Division and Corporate Insurance Division. He eventually served as the Chief Operating Officer (COO) and President of the company. After serving as the Chief Executive President, he was appointed Co-CEO along with Lee Seong-jae, Vice President of Hyundai Marine & Fire Insurance, in March 2020, and later promoted to Vice Chairman. Having served as a resident officer at the New York office and head of overseas operations, Cho has developed a deep understanding of international markets, including the U.S. He is recognized as a sales expert with extensive field experience both domestically and internationally. #ChoYongil #HyundaiInsurance #insuranceindustry #coCEO #corporateinsurance #ITintegration #overseasoperations #salesexpert #insuranceleadership #HyundaiMarine
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CEO of Hyundai Marine & Fire Insurance
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Prosecutor General
Shim Woo-jung
- Shim Woo-jung is the second Prosecutor General appointed by President Yoon Suk-yeol. He is tasked with smoothly managing politically sensitive investigations, including the investigation into luxury handbag gifts received by Kim Keon-hee, the President's wife, the stock manipulation allegations involving Deutsch Motors, and the preferential hiring allegations related to the former son-in-law of ex-President Moon Jae-in. Born in 1971 in Gongju, South Chungcheong Province, Shim is the son of Shim Dae-pyung, a former leader of the Liberty Forward Party. He graduated from Whimoon High School in Seoul and earned a law degree from Seoul National University. In 1994, he passed the 36th National Judicial Exam and, after completing the Judicial Research and Training Institute in 1997, began his legal career as a prosecutor at the Seoul District Prosecutors’ Office in 2000. His career includes positions at the Gangneung Branch of the Chuncheon District Prosecutors' Office, as a research officer at the Supreme Prosecutors' Office, and as an inspector at the Ministry of Justice. In 2010, he served as a legal cooperation officer at the Consulate General in Los Angeles, where he obtained a California bar license. In 2015, Shim was appointed head of the Criminal Division 1 at the Seoul Central District Prosecutors’ Office. During the Moon Jae-in administration, he served as Deputy Chief Prosecutor at the Seo District Branch of the Daegu District Prosecutors' Office and later held roles as the Chief of Scientific Investigation Planning at the Supreme Prosecutors’ Office and Deputy Chief at the Seoul High Prosecutors’ Office. Shim then moved to the Ministry of Justice, serving as Director of the Planning and Coordination Office, assisting former Justice Ministers Choo Mi-ae and Park Beom-gye. He went on to serve as Chief Prosecutor of the Seoul Eastern District Prosecutors' Office and the Incheon District Prosecutors' Office. In September 2023, he became Deputy Prosecutor General of the Supreme Prosecutors' Office and was subsequently appointed Vice Minister of Justice. On September 18, 2024, Shim was appointed Prosecutor General. Within the prosecutorial organization, Shim is known for his calm and rational demeanor, with colleagues saying they have rarely seen him lose his temper. He is regarded as a specialist in planning and administration, having worked in key departments across the Ministry of Justice and the Supreme Prosecutors’ Office, with a focus more on management and administration than on field investigations. #ShimWoojung #ProsecutorGeneral #KoreanProsecution #legalcareer #YoonSukyeol #politicalinvestigations #judicialadministration #legalexpertise #MinistryOfJustice #calmleadership
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Prosecutor General
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Chairman of Dongduk Women’s University
Cho Won-young
- Cho Won-young is the Chairman of the Board of Trustees at Dongduk Women’s University and has been serving in this role since 2015. He previously served as the university’s third and fourth president. He is the grandson of Cho Dong-sik, one of the university’s co-founders. Cho aims to transform Dongduk Women’s University into a leading institution focused on cultural and knowledge-based convergence, emphasizing practical values. He was born on October 17, 1949, in Seoul. He graduated from Kyungbock High School and studied business administration at Yonsei University. He later earned graduate degrees from New York University and Kyungnam University. Cho began his career as a lecturer at Dongduk Women’s University in 1980 and was later promoted to a full-time faculty position. The following year, he became the university's Director of Planning. In 1996, he was appointed as the third president of the university and reappointed in 2000. He has also served as an advisor to the National Unification Advisory Council and chaired both the Chun-Kang Scholarship Foundation and the Chun-Kang Memorial Association. Additionally, he held the position of Secretary-General of the Association of University Presidents. After stepping down as president due to embezzlement and other misconduct allegations, Cho returned to the university as a corporate board member after 12 years. Just seven months later, he was appointed Chairman of the Board. #ChoWonyoung #DongdukWomensUniversity #highereducation #universityleadership #educationalmanagement #culturalconvergence #ChunKangFoundation #YonseiUniversity #KyungbockHighSchool #NYU #KoreanEducation
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Chairman of Dongduk Women’s University
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Chairman of the Board at Neowiz Holdings
Na Sung-kyun
- Na Sung-kyun is the Chairman of the Board at Neowiz Holdings and also serves as an internal director at GameOn, a subsidiary of Neowiz Holdings. He has focused on improving the corporate governance of Neowiz Holdings by transitioning the company to a professional management system and separating ownership from management. Na was born on November 12, 1971, in Seoul. He graduated with a degree in business administration from Seoul National University and earned a master’s degree in management science from the Korea Advanced Institute of Science and Technology (KAIST). He also completed coursework for a Ph.D. in management science at KAIST. In 1997, Na founded Neowiz (now Neowiz Holdings) and developed products like the internet auto-connect program 'OneClick' and the web-based chat and community platform 'SayClub,' which were successfully commercialized. After completing his military service, Na returned to the company’s management and became CEO. In 2020, he stepped down as CEO, transformed Neowiz Holdings into a professional management-led company, and assumed the role of Chairman of the Board. Na is recognized as a pioneer of the first generation of entrepreneurs who contributed to the growth of internet services in Korea. Known for his calm demeanor, Na is also driven by a determination to excel in his field. After returning to management following his military service, he focused on the gaming business, successfully growing Neowiz Holdings into a mid-sized company. #NaSungKyun #NeowizHoldings #GameOn #corporategovernance #Koreantech #internetservices #gamingindustry #entrepreneur #professionalmanagement #SayClub #OneClick
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Chairman of the Board at Neowiz Holdings
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President of Korea Railroad
Han Moon-hee
- Han Moon-hee is the President of the Korea Railroad Corporation (KORAIL). He has focused on securing railway safety by driving innovations across institutional practices and organizational culture. Born on November 26, 1963, in Yeoju, Gyeonggi-do, he graduated from Railroad High School and went on to study political science and international relations at Konkuk University. After graduating from high school, he joined the Korea National Railroad (currently KORAIL). In 1993, after passing the 37th Administrative Exam, he worked as an administrative officer at the Ministry of Government Administration and Home Affairs and the Ministry of Public Information before returning to the Korea National Railroad. At KORAIL, he held key positions such as Head of the Management Innovation Office, Head of the Planning and Coordination Office, Head of the Seoul Headquarters, and Director of the Management Support Division, before retiring in 2018. After serving as CEO of Uiwang ICD, he worked as the President of the Busan Transportation Corporation. However, he resigned with 18 months left in his term to apply for the presidency of KORAIL. In July 2023, he became the first internally recruited president of KORAIL, focusing on restoring public trust, implementing digital management strategies, and promoting overseas railway exports. #HanMoonHee #KORAIL #railway #railwayexport #digitalsolutions #railwayinnovation #Koreantransportation #railwaysafety #BusanTransportationCorporation #UiwangICD
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President of Korea Railroad
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CEO & Chairman
Ahn Young-Koo
- Ahn Young-Koo is the Chairman and CEO of UNICK. He is the founder of UNICK, the No. 1 company in Korea and No. 3 globally for solenoid valves, a key component of automatic transmissions for automobiles. He was born on February 20, 1947, in Seoul. He graduated from Gyeonggi High School in Seoul and the Department of Industrial Education at Seoul National University. In 1971, he founded Jeokgo, a watch company that was the predecessor of UNICK. He was the first to localize small watches powered by AAA batteries and expanded the business to include car clocks and cigarette lighters. In 1992, he developed Korea's first solenoid valve for 4-speed automatic transmissions, and in 2010, he successfully mass-produced the solenoid valve for 8-speed automatic transmissions, the second in the world to do so. He views hydrogen vehicle parts, including valve modules for supplying and regulating hydrogen in hydrogen fuel cell stacks, as a future growth driver for UNICK.
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CEO & Chairman
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Chairman of Mico
Jeon Sun-kyu
- Jeon Sun-kyu is the chairman of Mico. He oversees the company’s operations alongside CEO Lee Seok-yoon. He was born on April 24, 1958, in Seoul. Jeon graduated from Inchang High School in Seoul and studied business administration at Seoul National University. In 1996, he founded Mico, a semiconductor component manufacturing company. Since then, he has restructured Mico’s corporate framework, expanding its business into the bio and energy sectors. In new business ventures, Jeon has focused on eco-friendly projects, aiming to position Mico among the 'top 10 global ceramic material parts companies' in terms of revenue. He is a business leader who emphasizes 'technological capability.'
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Chairman of Mico
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Chairman of BH
Lee Kyung-Hwan
- Lee Kyung-Hwan is the chairman of BH. He is an engineer-turned-executive. He was born on April 21, 1960, in Hampyeong-gun, Jeollanam-do. He graduated from Sungkyunkwan University with a degree in electronic engineering. In his late 20s, he founded the electronic components company, Bumhan Electronics, but faced a crisis due to the IMF bailout situation. Fortunately, he secured new investments and, together with his colleague from Molex Korea, Kim Jae-chang (former BH representative), they established Bumhan Flex. Lee Kyung-Hwan took charge of attracting external investments and new business opportunities, while Kim Jae-chang focused on maintaining existing operations. For over 20 years, he has been dedicated to the flexible printed circuit board (FPCB) business for smartphones, leading the company with the premium expertise and crisis management skills of a first-generation entrepreneur. His technological capabilities have gained recognition, with global smartphone companies like Samsung Electronics and Apple as clients. #LeeKyungHwan #BH #electronics #FPCB #smartphones #technology #engineering #crisismanagement #entrepreneurship #investment
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Chairman of BH
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CEO & President of KT
Kim Young-shub
- Kim Young-shub is CEO & President of KT. He is actively seeking new growth engines for KT in areas such as cloud computing and artificial intelligence (AI). Notably, he is accelerating the 'AICT' (AI + ICT) project in collaboration with Microsoft. Born on April 10, 1959, in Mungyeong, Gyeongsangbuk-do, he graduated from Kyungbuk High School and later earned a degree in Business Administration from Korea University. He began his career at Lucky Goldstar (now LX International), which is the predecessor of LG Corporation, working in the General Affairs Department and the Financial Improvement Team of the LG Restructuring Headquarters before moving to LGCNS. At LGCNS, he served as Vice President of the Management Support Division and head of the Solution Business Division, before taking on the role of CFO (Chief Financial Officer) at LG Uplus. After being appointed as CEO, he returned to LGCNS. Upon taking office as CEO of LGCNS, he enhanced organizational efficiency through a restructuring process. In August 2023, he was appointed as the CEO of KT. With his experience of expanding IT businesses by focusing on smart logistics and smart cities during his tenure at LGCNS, he is expected to leverage related capabilities in KT's IT new business sector. However, he also faces the challenge of addressing various uncertainties in KT's telecommunications operations. Although he is recognized as a financial expert, he also possesses a high level of understanding of IT technology. #KimYoungShub #KT #AI #cloudcomputing #Microsoft #AICT #LGCNS #telecommunications #ITbusiness #CFO
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CEO & President of KT
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CEO of iFamilySC
Kim Tae-uk
- Kim Tae-uk is the CEO of iFamily SC. He leads iFamily SC as co-CEO alongside CEO Kim Seong-hyeon. He is a singer-turned-entrepreneur and the husband of actress Chae Si-ra. Starting with the wedding business, he grew iFamily SC into a company with over KRW 100 billion (US$ 72.6 million) in revenue by making the cosmetics business a new growth engine. He was born on September 5, 1969, in Daegu. He graduated from Yeongnam High School in Daegu and later from Inha Technical College with a degree in Naval Architecture. In 1991, he debuted as a singer with the song "Gaeggoom" (meaning "Dog's Dream"). In 2000, recognizing the potential in the wedding industry, he founded iWedding.net (now iFamily SC) and became its CEO. In 2016, he officially entered the cosmetics industry by launching the color cosmetics brand "Rom&nd." He is focusing on expanding into overseas markets, particularly by growing the cosmetics brand's lineup and distribution channels.
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CEO of iFamilySC
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Chairman of JB Financial Group
Kim Ki-hong
- Kim Ki-hong is CEO and Chairman of JB Financial Group. Under the vision of being a "small but strong financial group," he focuses on quality growth centered on profitability and proactive risk management. Born on January 10, 1957, in Seoul, Kim graduated from Kyungdong High School and earned a degree in Business Administration from Barat College in the United States. He later obtained his MBA from the University of Missouri and a Ph.D. in Business Administration from the University of Georgia. Throughout his career, he has worked in academia, private research institutes, the Financial Supervisory Service, and KB Kookmin Bank. He served as a specialist at the Korea Institute of Taxation, director of research coordination at the Korea Insurance Development Institute, and deputy superintendent of the Financial Supervisory Service. While working as a professor in the International Business Department at Chungbuk National University, he held roles as a director at the Korea Economic Institute (KorEI), outside director at KB Kookmin Bank, and outside director at LG Insurance (now KB Insurance). He later moved to KB Kookmin Bank as senior vice president and strategy group vice president, where he was in charge of planning the establishment of the KB Kookmin Bank holding company. After serving as CEO of JB Asset Management, he was appointed as chairperson and CEO of JB Financial Group, where he has been re-elected. His management style is characterized by determination; he is known for his aggressive work style, often referred to as a "bulldozer," while also being adept at communication. #KimKiHong #JBFinancialGroup #financialmanagement #Koreanbanking #leadership #businessadministration #riskmanagement #qualitygrowth #KookminBank #bulldozermanagement
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Chairman of JB Financial Group
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CEO & Chairman
Lee Young-ho
- Lee Young-ho is the Chairman and CEO of Choil Aluminum. As a third-generation owner, his grandfather was the late Lee Tae-hee, the founder and former chairman, and his father is Lee Jae-seop, the honorary chairman. He was born on August 30, 1965, in Seoul. After graduating from Yeongjin High School in Daegu, he studied Business Administration at New York University and later earned an MBA from Fordham University. He joined Choil Aluminum in 1985 and was promoted to CEO in 2004. He became Vice Chairman in 2020 and Chairman in 2024. He is focusing on investment and market expansion, seeing the aluminum foil for electric vehicle batteries as a new growth driver for the company.
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CEO & Chairman
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Busan University Alumnus Becomes First Bank President, Tackles KRW 300 Billion Embezzlement [2024]
Ye Kyong-tak
- Ye Kyong-tak is the President of BNK Kyongnam Bank. He is focused on financial practices that promote coexistence with the local community and on digital innovation. He is also working to address the aftermath of a embezzlement incident that occurred in 2023. Born in November 1966, Ye graduated from Miryang High School and earned a degree in sociology from Pusan National University. He later obtained a master's degree in business administration from Changwon National University. Having joined the bank in 1992, he has worked exclusively at Kyongnam Bank for over 30 years. Throughout his career, he has held various positions including branch manager of the Yulha branch, head of the card business division, head of the Eastern Sales Headquarters, and group leader of the credit operations group. In 2023, he was appointed as the president of Kyongnam Bank. Ye aims to establish the bank as a pillar of the local economy. He is noted for his gentle leadership style and actively engages in communication with employees. #YeKyongtak #KyongnamBank #financialinnovation #digitaltransformation #localcommunity #leadership #banking #businessadministration #economicdevelopment #employeeengagement
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Busan University Alumnus Becomes First Bank President, Tackles KRW 300 Billion Embezzlement [2024]
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CEO of Samsung Securities
Park Jong-moon
- Park Jong-moon is the CEO and President of Samsung Securities. He has been expanding the wealth management (WM) division by offering specialized services tailored to ultra-high-net-worth individuals. Park is also focused on strengthening corporate sales to achieve balanced growth in the investment banking (IB) division. Born in 1965, he graduated from Naeseong High School in Busan and studied business administration at Yonsei University. He completed a master’s degree in financial engineering at KAIST and began his career at Samsung Life Insurance. As a long-serving 'Samsung man' within the financial affiliates of the Samsung Group, Park mainly handled management support and asset management. When Samsung Securities faced the shock of a net loss due to the fallout from the real estate project financing (PF) crisis, he was brought in as a "relief pitcher." Park is regarded as possessing extensive global capabilities, having served as a control tower for the group's financial affiliates.
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CEO of Samsung Securities
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CEO & Chairman
Park Han-oh
- Park Han-oh is the Chairman and CEO of Bioneer. He was born on May 16, 1962, in Inje, Gangwon Province. He graduated from Wushin High School in Seoul and obtained a degree in Chemistry from Seoul National University. He earned his Master’s and Ph.D. degrees in Biochemistry from KAIST Graduate School. While working as a researcher, he founded Bioneer with the aim of achieving the localization of genetic technology, which was then heavily reliant on imports. Bioneer is the "first domestic" bio venture company created through a spin-off from the Korea Research Institute of Bioscience and Biotechnology. The company successfully synthesized DNA for the first time in Korea and developed the first PCR diagnostic kits and equipment in the country. It is increasing its sales with products that apply its technologies, including the hair loss relief cosmetic "Cosmerna" and the functional probiotic product for body fat reduction, "Bienalssin." He is regarded as a first-generation bio engineer and manager who has contributed to building and expanding the life sciences research infrastructure in Korea.
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CEO & Chairman
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CEO of NexonGames
Park Yong-hyun
- Park Yong-hyun is the CEO of Nexon Games. He is focusing on the expansion of new intellectual properties (IP) for the Nexon Group. He was born on November 19, 1970. After graduating from Korea University with a degree in electrical engineering in 1993, he began his career as a software developer. He served as the head of Studio E&G at NCSoft and later as the head of Bluehole Studio (now Krafton). In May 2013, he founded NetGames and took on the role of CEO. The company entered the KOSDAQ market through a merger with NH Corporation Acquisition Purpose No. 9 in 2017. In 2018, Nexon Korea acquired a 30% stake in NetGames, increasing its total ownership to 48.3%, thus integrating it as a subsidiary. In March 2022, Nexon Games was established through a merger with another subsidiary, Nexon GT. Park Yong-hyun has been serving as CEO for over 11 years since the NetGames era and has also been the Vice President in charge of development at Nexon Korea since April 2024. Nexon Games is focusing on the long-term success of its shooting game "The First Descendant," which was released in July 2024, along with the launch of large new game projects by Nexon Korea. #ParkYongHyun #NexonGames #Nexon #gaming #KOSDAQ #intellectualproperty #TheFirstDescendant #softwaredevelopment #merger #Krafton
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CEO of NexonGames
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Chairman of Dong-A Socio Holdings Co.,Ltd.
Kang Jeong-seok
- Kang Jeong-seok is the chairman of Dong-A Socio Holdings Co., Ltd. and serves as the chair of the Sustainability Committee (CSO). He was born on October 30, 1964. He is the grandson of the late founder of Dong-A Pharmaceutical, Kang Jung-hee, and the fourth son of honorary chairman Kang Shin-ho, making him a third-generation owner. From an early age, he was identified as a successor and received management training. Kang graduated from Chungang University with a degree in philosophy and earned a master's degree in pharmacy from Sungkyunkwan University. He joined Dong-A Pharmaceutical in 1989 and held various positions, including team leader of the Management Control Team and head of the Medical Business Division. He also served as president of Dong-A Otsuka and vice president of Dong-A Pharmaceutical. In 2013, he became the CEO of Dong-A Socio Holdings, and in January 2017, he was appointed chairman. However, just seven months after becoming chairman, in August 2017, Kang Jeong-seok was arrested on charges of embezzling company funds and providing kickbacks. He was released in 2020 but faced a five-year employment restriction, making it difficult for him to return to management for over six years. On August 15, 2023, he was reinstated through a special pardon on Liberation Day, and in September 2023, with the board’s approval, he was appointed chair of the Sustainability Committee (CSO), marking his return to management activities. He now faces the challenge of establishing his presence as a third-generation leader, stepping out from under the shadow of his father, who created the formula "Dong-A Pharmaceutical = Korea's No. 1 Pharmaceutical Company." #KangJeongSeok #DongASocioHoldings #SustainabilityCommittee #pharmaceuticals #Korea #leadership #business #corporategovernance #familybusiness #pardon
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Chairman of Dong-A Socio Holdings Co.,Ltd.
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CEO of Alteogen
Park Soon-jae
- Park Soon-jae is the CEO of Alteogen. He aims to elevate Alteogen beyond the level of a biosimilar (biopharmaceutical generic drug) company, transforming it into a global pharmaceutical company that develops biobetters (improved biopharmaceuticals). Park was born on December 22, 1954, in Gunsan, Jeollabuk-do. He graduated from Seoul High School and earned a degree in biochemistry from Yonsei University. He later obtained a Ph.D. in chemistry from Purdue University in the United States. Park worked as a researcher at the Massachusetts Institute of Technology (MIT) graduate school. He joined Lucky Biotech Research Institute (now LG Chem Research Institute) as a senior researcher, where he led research, development, and regulatory approval of biopharmaceuticals. Park played a pivotal role in advancing LG Chem’s biopharmaceutical business by launching eight biopharmaceutical products, including growth hormones, hepatitis B vaccines, and interferons. He also led the global technology transfer of the quinolone antibiotic "Factive," the first domestically developed new drug to receive U.S. FDA approval. Park later moved to Hanwha Petrochemical as Managing Director and Head of Bio Development, where he spearheaded the Dream Pharma business. During his tenure as Vice Chairman and CEO at Binex, he secured private management rights for the government’s Korea Biotech Commercialization Center (KBCC). In 2008, he co-founded Alteogen with his wife, Professor Jung Hye-shin, and became the company’s CEO in 2011. His personal motto is "Live a life like a grain of wheat," reflecting his humble and service-oriented approach to leadership. Park emphasizes a management principle that the company must have either a world-first or differentiated platform. #ParkSoonjae #Alteogen #biopharmaceuticals #biosimilars #biobetters #globalpharma #biotech #Factive #LGchem #Binex #innovativeplatforms #leadership
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CEO of Alteogen
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CEO of Lotte Insurance
Lee Eun-ho
- Lee Eun-ho is the CEO of Lotte Insurance. He is focusing on improving Lotte Insurance’s performance by enhancing the company's internal structure. He was born on July 23, 1974. Lee graduated from Choongam High School in Seoul and studied Electrical Engineering at Korea University. He also earned an MBA from INSEAD in France. He first became involved with Lotte Insurance when he participated in consulting for JKL Partners during their acquisition of the company in 2019. Following the acquisition, he joined Lotte Insurance as the Chief Financial Officer (CFO) overseeing strategic planning. He became CEO in 2022 and successfully extended his term in 2024. Lee is a financial strategy expert who has provided advisory services to domestic and international financial companies at Oliver Wyman, A.T. Kearney Korea, and PwC Consulting.
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CEO of Lotte Insurance
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President of Kangwon National University
Jeong Jae-yeon
- Jeong Jae-yeon is the president of Kangwon National University, with a term starting from June 24, 2024, lasting for four years. He aims to establish Kangwon National University as a globally recognized local university that advances together with the region, based on the creation of value and knowledge. Jeong is an expert in the field of taxation and public finance. He was born on September 13, 1968. He graduated from Korea University with a degree in Business Administration and later earned both a master's and doctorate in Business Administration from Korea University's graduate school. He started his career as a certified public accountant (CPA), working at Samil Accounting Corporation before serving as an auditor at Samduk Accounting Corporation. He then became a professor in the School of Management, Tourism, and Accounting at Kangwon National University. In academia, he served as president of the Korean Academic Society of Taxation, and in the industry, he was active as a National Tax Research Committee member for the Korean Institute of Certified Public Accountants. Within the university, he held various leadership roles such as the head of the Entrepreneurship Education Center, director of the Industry-University Cooperation Foundation, dean of the College of Business Administration, dean of the Graduate School of Business, and chair of the Finance Committee. He was also an outside director for Doosan Robotics. In government, Jeong served as a budget policy advisory committee member for the National Assembly Budget Office, a member of the Tax System Development Deliberation Committee for the Ministry of Economy and Finance, and the chair of the Business Succession Promotion Committee for the Korea Federation of SMEs. With the selection of the Glocal University 30 project, he is determined to drive educational innovation at the unified Kangwon National University, aiming to establish it as the sole national university in Gangwon Province. #KangwonNationalUniversity #JeongJaeyeon #taxation #publicfinance #DoosanRobotics #GlocalUniversity30 #Koreaneducation #accounting #businessadministration #universalleader
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President of Kangwon National University
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President of KHNP
Whang Joo-ho
- Whang Joo-ho is the president of Korea Hydro & Nuclear Power (KHNP). He is focusing his efforts on achieving the goal of "exporting 10 nuclear power plants by 2030." He was born on March 22, 1956, in Busan. After graduating from Seoul Kyunggi High School and Seoul National University with a degree in nuclear engineering, he earned both his master's and doctoral degrees in nuclear engineering from the Georgia Institute of Technology in the United States. He served as a professor in the Department of Nuclear Engineering at Kyunghee University before moving to the Korea Institute of Energy Research as the president. He has also served as the co-chairman of KHNP's Innovation Growth Committee and the chairman of the Nuclear Safety Advisory Committee before being appointed as the president of Korea Hydro & Nuclear Power in August 2022. He is the first university professor to be appointed president of KHNP since its separation from KEPCO. He is a leading authority in the field of spent nuclear fuel. #WhangJooho #KHNP #KoreaHydroNuclearPower #nuclearpower #nuclearfuel #energyresearch #nuclearsafety #spentnuclearfuel #nuclearengineering #KoreanEnergy #nuclearexport
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President of KHNP
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CEO and Chairman of Patron
Kim Jong-koo
- Kim Jong-koo is the Chairman and CEO of Patron. He leads the company as co-CEO alongside his son, Kim Won-geun. He focuses on fostering new businesses and is also interested in enhancing shareholder value through responsible management. Born in November 1949 in Jeonbuk, he graduated from Jungdong High School in Seoul and then earned a degree in mechanical engineering from Seoul National University before joining Samsung Electronics. After serving as the director of the Planning Team at the Samsung Group Chairman's Office, he moved to Samsung Electro-Mechanics, where he held positions such as Head of the Comprehensive Research Institute, Head of the Layered Thin Film Division, Head of the Electronic Components Business Unit, and Chief Technology Officer (CTO). After working for 29 years in the Samsung Group, he founded Patron with former employees of Samsung Electro-Mechanics. The company name, Patron, signifies becoming a partner that supplies quality components to finished product manufacturers. Patron was established as a spin-off of Samsung Electro-Mechanics' wireless communication business, inheriting the components business, including dielectrics and isolators for mobile phones. He is a self-made entrepreneur. He established Patron in 2003 with a capital of KRW 27.1 billion (US$ 19.7 million) and grew it into a mid-sized company with annual sales of over KRW 1 trillion (US$ 726 million). He possesses excellent management skills and technical expertise, receiving positive evaluations for his drive, judgment, and leadership. --- **Keywords:** #Patron #KimJongkoo #CEO #entrepreneur #Samsung #businessleadership #shareholdervalue #selfmade #mid-sizedcompany #newbusiness
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CEO and Chairman of Patron
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CEO & President of Renault Korea Motors
Stéphane Deblaise
- Stéphane Deblaise is the President and CEO of Renault Korea Motors. He is focusing on the “Aurora” project, which involves developing new vehicles, including hybrid cars, in collaboration with Geely Group. Born on July 16, 1972, he studied engineering at the University of Strasbourg and IFP School. He completed his Master of Business Administration (MBA) at INSEAD in France. After joining Renault Group, he primarily worked in new vehicle development. Deblaise served as the Chief Engineer for vehicle development in the South American market, Vice President of Product and Brand Planning for Dongfeng-Renault, and Director of new vehicle development programs for the Renault C (compact) and D (mid-size) segments. He worked as Director of Advanced Projects and Cross Car Line Programs at Renault Group before being appointed President and CEO of Renault Korea in 2022. #StéphaneDeblaise #RenaultKoreaMotors #AuroraProject #hybridcars #automotive #vehicledevelopment #GeelyGroup #INSEAD #engineering #leadership
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CEO & President of Renault Korea Motors
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CEO and Chairman
Song Ho-keun
- Song Ho-Keun is the Chairman and CEO of YG-1. He is the founder of YG-1, which is the global leader in the endmill market within the cutting tools industry. Song Ho-Keun was born on January 15, 1952, in Seoul. He graduated from Seoul High School and then from the Department of Mechanical Engineering at Seoul National University. In 1977, he joined Taehwa Machinery, a subsidiary of Taehwa Group, where he realized the growth potential of the cutting tools market. In 1981, he founded Yangji Precision Tools, now known as YG-1. YG-1 has also received equity investment from renowned investor Warren Buffett. Song Ho-Keun is working hard to transform YG-1 into a Total Tooling Solution Provider, which offers comprehensive solutions for cutting tools. He aims to make YG-1 the number one company in the global cutting tools market by 2035.
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CEO and Chairman
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CEO of Musinsa
Cho Man-ho
- Cho Man-Ho is the CEO of Musinsa. He is dedicated to fostering a cooperative ecosystem within the domestic fashion industry while actively promoting international expansion. Born in 1983 in Tongyeong, South Gyeongsang Province, he attended Tongyeong High School until the first year before moving to Seoul to complete his high school education. He graduated from Dankook University with a degree in Fashion Design. During high school, he founded "Mujinjang, a place with many shoe photos," which eventually became the leading fashion platform in South Korea. After establishing Musinsa.com and serving as its CEO, he stepped down in 2021 to become the chair of the board. In March 2024, he returned as CEO to strengthen responsible management. He is often referred to as the "Jeff Bezos of the domestic fashion industry" and the "manager of coexistence." His passion for fashion is evident as he entered the fashion platform industry to help designers facing poor working conditions. #ChoManHo #Musinsa #fashion #ecosystem #internationalexpansion #responsiblemanagement #fashiondesign #coexistence #SouthKorea #fashionplatform
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CEO of Musinsa
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Chairman of Eugene Technology
Um Pyung-yong
- Um Pyung-yong is the Chairman and CEO of Eugene Technology. He was born on September 14, 1954. Um graduated from Kwangwoon University with a degree in Applied Electronics Engineering. After graduation, he began his career in the semiconductor industry by working at Hyundai Electronics (now SK Hynix). In 2000, he founded Eugene Technology as an independent venture. Through research focused on the localization of semiconductor deposition equipment, he successfully developed the "single-type LPCVD (Low Pressure Chemical Vapor Deposition) equipment," which is used in front-end semiconductor processes for thin film deposition. This made Eugene Technology the only company in South Korea to develop such equipment. His company supplies equipment to global semiconductor giants such as Samsung Electronics, SK Hynix, and Micron. As an engineer-turned-CEO, Um is often referred to as a "living legend of South Korea's semiconductor industry," having dedicated his entire career to the field. He has set a goal to elevate Eugene Technology to become one of the world's top 10 semiconductor equipment manufacturers. #UmPyungYong #EugeneTechnology #semiconductorequipment #LPCVD #thinfilmdeposition #Samsung #SKHynix #Micron #semiconductorindustry #CEO #engineering
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Chairman of Eugene Technology
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Chairman of Nongshim
Shin Dong-won
- Shin Dong-won is the chairman of the Nongshim Group. He is in charge of overseeing the management of Nongshim Holdings, the group's holding company. Shin is focused on continuously enhancing Nongshim's brand value through overseas operations, particularly in North America and other regions. He is also prioritizing business diversification, aiming to expand into new ventures such as health functional foods and alternative meats, thereby reducing the company's heavy reliance on ramen and snack products. Born on January 9, 1958, in Busan, he is the eldest son of Shin Choon-ho, the founder of Nongshim Group. He graduated from Shillim High School in Seoul and received a degree in Chemical Engineering from Korea University. He also obtained a master’s degree in International Trade from Korea University's Graduate School. During the summer vacation of his second year at university, following his father Shin Choon-ho’s remark, "Why waste time?" he underwent new employee training at a factory. After joining Nongshim, Shin gained extensive management training by working in key areas such as finance, purchasing, planning, and overseas operations. He served as the International CEO of Nongshim, CEO of Nongshim Engineering, and CEO of Nongshim Taekyung, before becoming the CEO of both Nongshim and Nongshim Holdings. In 2021, after the death of his father, Shin Choon-ho, he assumed the position of chairman of Nongshim. He stepped down from his roles as CEO of Nongshim and Nongshim Holdings, transitioning the company to a professional management system. Shin views overseas market competitiveness as critical to Nongshim’s future. He is known for his gentle demeanor and displays leadership that is outwardly soft but internally strong. Although not frequently in the public eye, Shin leads social gatherings among business leaders and remains dedicated to research and development. #ShinDongwon #Nongshim #NongshimHoldings #globalbusiness #healthfoods #alternativemeats #chemicalengineering #KoreaUniversity #businessdiversification #leadership
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Chairman of Nongshim
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CFO of Naver Corp.
Kim Nam-sun
- Kim Nam-sun is the Chief Financial Officer (CFO) of Naver. Together with CEO Choi Soo-yeon, he is leading the company's efforts in expanding Naver's global business, including mergers and acquisitions of overseas companies. He was born on November 27, 1978, in Samcheok, Gangwon Province, as the eldest of one son and one daughter to Kim Taek-gi, a former member of the Millennium Democratic Party, and Lee Yang-hee, an honorary professor at Sungkyunkwan University. His grandfather, Kim Jin-man, served as a seven-term Deputy Speaker of the National Assembly, and his maternal grandfather is Lee Cheol-seung, a former member of the National Assembly. He graduated from Sehwa High School in Seoul and earned a degree in Materials Science and Engineering from Seoul National University. After completing his Juris Doctor (JD) at Harvard Law School, he worked as a lawyer at the American law firm Cravath, Swaine & Moore LLP. He was involved in mergers and acquisitions at global investment banks Lazard, Morgan Stanley, and Macquarie Asset Management. In 2020, he joined Naver as the Head of Business Development, Investment, and Mergers & Acquisitions, and since 2022, he has been serving as the Chief Financial Officer. Known for his calm demeanor, he is quick in making judgments. #KimNamSun #Naver #CFO #ChoiSooYeon #globalbusiness #mergersandacquisitions #investmentbanking #HarvardLaw #materialsengineering #leadership
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CFO of Naver Corp.
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Chairman of DI Dongil
Suh Min-sok
- Suh Min-sok is the Chairman of DI Dongil and also serves as the Chairman of the Board of Directors. He was born on June 15, 1943, as the eldest son of Suh Jung-ik, the founder of Dongil Textile. Suh graduated from Kyunggi High School and studied Textile Engineering at Seoul National University. He later completed a master’s degree at the University of Michigan and received an honorary Doctorate in Business Administration from Sejong University in 2000. In 1970, Suh joined Dongil Textile, and after the death of his father in 1973, he began participating in the company's management at the age of 35. He became CEO in 1978 and was promoted to Chairman in 1991. In 1995, Suh also served as Chairman of Chohung Bank and was an Honorary Consul of Belize in Central America. In 2006, Suh was selected as one of the "60 Engineers Who Raised Korea" by Seoul National University and the National Academy of Engineering of Korea. Since 1969, Suh has contributed significantly to Korea's export of garments by developing and localizing various types of spun and sewing threads. In the early 1970s, he was also recognized for diversifying and upgrading products by producing ultra-fine yarns and developing new materials. He has actively contributed to the advancement of textile technology as the Chairman of the Korea Spinners Association, Chairman of the Korea Textile Technology Research Institute, and Vice Chairman of the Korea Federation of Textile Industries. As a second-generation leader, Suh inherited Dongil Textile and, through innovation and change, expanded DI Dongil’s business into future industries such as secondary battery materials and eco-friendly plants, transforming it from a traditional textile company into a modern, diversified enterprise. #SuhMinSok #DIDongil #DongilTextile #textileindustry #Koreanengineering #secondarybatterymaterials #innovation #businessleadership #globalexpansion #textiletechnology #honorarydoctorate #SeoulNationalUniversity
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Chairman of DI Dongil
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CEO of Dong A Eltek
Park Jae-kyoo
- Park Jae-kyoo is the CEO and Chairman of Dong A Eltek, where he leads the company alongside Co-CEO Choi Kwi-sang. He also serves as the CEO and Chairman of Sunic System, an affiliate of Dong A Eltek. Park is focused on expanding orders for OLED deposition equipment, while also paying attention to enhancing shareholder value at Dong A Eltek. Born on March 25, 1955, he graduated from Chung-Ang University with a degree in Electronic Engineering and worked at Korea Precision Electronics and Chung-Ang Electronics. In 1987, he founded Dong A Electronics (now Dong A Eltek) and became its CEO. He has also been active as Vice Chairman of the KOSDAQ Association and Vice Chairman of the Korea Display Industry Association. Park has been a driving force behind the localization of display inspection equipment and OLED deposition equipment. #ParkJaeKyoo #DongAEltek #SunicSystem #OLEDtechnology #displayequipment #Koreanbusiness #electronicengineering #KOSDAQ #localization #shareholdervalue #Koreadisplayindustry
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CEO of Dong A Eltek
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Chairman of Daesung Industrial
Kim Young-dae
- Kim Young-dae is the CEO and Chairman of Daesung Industrial, overseeing the company's operations alongside Co-CEO President Lee Eun-woo. Kim also serves as co-CEO of Daesung’s affiliates: Daesung Control, Daesung C&S, and Daesung Nachi Hydraulics. Born on October 2, 1942, in Daegu, he is the eldest son of the late Kim Soo-geun, the founder of Daesung Group. Kim graduated from Kyungpook National University High School, earned a law degree from Seoul National University, and obtained a master's degree from Seoul National University's Graduate School of Business. Since 1988, Kim has served as Chairman and CEO of Daesung Industrial. Under his leadership, Daesung Industrial, originally an energy company, diversified its business into sectors such as distribution, information technology, and construction. He is known for emphasizing “trust,” and has been credited with steering Daesung Industrial through numerous crises. #KimYoungDae #DaesungIndustrial #DaesungGroup #businessleadership #energysector #corporatediversification #trustinbusiness #Koreabusiness #companymanagement #businessstrategy
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Chairman of Daesung Industrial
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Chairman of YC Corporation
Choi Myung-bae
- Choi Myung-bae is the CEO and Chairman of YC Corporation. He also serves as CEO of its affiliates Exicon, Samtools, DHK Solution, and Samtec. Choi is a pioneer in the domestic memory semiconductor wafer tester industry. He was born on October 1, 1952, in Yeongyang, Gyeongbuk. Choi graduated from Kyungdong High School in Seoul and majored in Metallurgical Engineering at Seoul National University. He began his career at Samsung C&T in 1978 and later moved to Samsung Electronics' semiconductor division, where he rose to the rank of Executive Director. After leaving Samsung, he served as CEO of DI, a semiconductor testing equipment company. In 2004, Choi founded Samtec, a precision machinery and tools company for semiconductors, and in 2005, he acquired a semiconductor testing equipment company, Test ENG (now Exicon). In 2012, he acquired the semiconductor memory wafer tester division from Japan’s Yokogawa Electric and established YIK Corporation (now YC Corporation). Choi sees wafer testers for high bandwidth memory (HBM) as a new growth engine and is focusing on research, development, and market expansion in this area. #ChoiMyungBae #YCcorporation #semiconductorindustry #wafertester #Exicon #Samtools #HBM #semiconductorequipment #Koreatechnology #businessleadership
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Chairman of YC Corporation
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Vice Chairman of Shinyoung Securities
Won Jong-suk
- Won Jong-suk is the CEO and Chairman of Shinyoung Securities. He has maintained stable management by upholding the company's 53-year tradition of consecutive profits. Won Jong-suk was born on October 22, 1961, in Seoul as the only son of Shinyoung Securities Chairman Won Guk-hee and his wife, Min Suk-gi. He graduated from Gyeonggi High School in Seoul and majored in Civil Engineering at Chung-Ang University. In 1988, he joined Shinyoung Securities, where he worked in various departments, including the International Department, Planning and Coordination Office, Research Department, and Sales Branch. In 2005, he was appointed CEO. He has also served as a member of the Korea Financial Investment Association’s Self-Regulation Committee and as an outside director of the Korea Securities Depository. Won’s management philosophy emphasizes building long-term trust with clients rather than focusing solely on profits. He continues to pursue both major and minor innovations. #WonJongSuk #ShinyoungSecurities #CEO #Chairman #financialsector #leadership #innovation #trustbasedmanagement #Korea #investment
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Vice Chairman of Shinyoung Securities
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Chairman of Mezzion Pharma
Park Dong-hyun
- Park Dong-hyun is the CEO, Chairman, and Board Chair of Mezzion Pharma. He was born on August 15, 1956. He graduated from Yale University with a degree in economics and earned a master's degree in accounting from New York University Graduate School. He holds the American Institute of Certified Public Accountants (AICPA) certification. After serving as CEO of Philcom Communication, he transitioned to the U.S. investment bank Merrill Lynch, where he worked as Vice President of Merrill Lynch Capital Markets in charge of Asia. He then became President and CEO of Far East Investment Limited while also serving as an outside director at Dong-A Pharmaceutical. In 2002, he was appointed CEO of Dong-A PharmTech, a new drug development company under Dong-A Pharmaceutical. He is focused on developing ‘Udenafil,’ a drug patented by Dong-A Pharmaceutical for erectile dysfunction treatment, as a treatment for single-ventricle heart disease patients. He is currently making his third attempt to obtain FDA approval for Udenafil. #ParkDonghyun #MezzionPharma #YaleUniversity #FDAapproval #DongAPharmaceutical #Udenafil #singleventricle #investmentbanking #pharmaceuticalindustry #newdrugdevelopment
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Chairman of Mezzion Pharma
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CEO of POSCO Future M
Yoo Byeong-og
- Yoo Byeong-og is the CEO and President of POSCO Future M. He was born on May 4, 1962. Yoo graduated from Busan High School and Seoul National University with a degree in Metallurgical Engineering. He also earned a master’s degree in Technology Management from Pohang University of Science and Technology (POSTECH). He joined POSCO, where he held various roles, including Head of Raw Materials, Director of Management Strategy at the Value Management Center, Head of Purchasing and Investment at the Steel Division, and Head of the Industrial Gas and Hydrogen Business Division. Yoo later moved to POSCO Holdings, where he oversaw the eco-friendly future materials division, managing POSCO Group’s battery materials business. In 2024, Yoo was appointed CEO and President of POSCO Future M. #YooByeongog #POSCOFutureM #POSCO #BatteryMaterials #TechnologyManagement #POSCOHoldings #SteelIndustry #HydrogenBusiness #ExecutiveLeadership #EcoFriendlyMaterials
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CEO of POSCO Future M
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CEO of Lotte Card
Cho Jwa-jin
- Cho Jwa-jin is the CEO and President of Lotte Card. He is focused on establishing a strong performance foundation for Lotte Card, increasing market share, and maximizing corporate value. He has presented the direction of the company as a “Curating Digital Company” and is working to enhance products and platform services. He was born on November 6, 1967, in Busan. He graduated from Naeseong High School in Busan and went on to study economics at Seoul National University. He began his career at Samsung Life Insurance and later moved to the consulting firm A.T. Kearney. He joined Hyundai Motor Group as an executive director at Hyundai Capital, where he played a key role in the early establishment of Hyundai Card. After serving as the head of marketing at Hyundai Card and Hyundai Capital, he moved to the consulting firm Oliver Wyman, where he served as the head of the Korea office. He then returned to Hyundai Card and Hyundai Capital as head of the financial marketing division and CVM (Card Verification Method) team, before taking on roles as Head of Strategic Planning and Chief Financial Officer. He also served as the head of the Hyundai Capital America (HCA) subsidiary. He founded his own consulting company, JCMC (James Cho Management Consulting), named after himself. In 2020, he was appointed CEO of Lotte Card, and in March 2024, he began his third term. He is known for his practical and strategic approach, as well as his flexible and horizontal mindset. #LotteCard #ChoJwajin #CEO #HyundaiCard #HyundaiCapital #Consulting #KoreanFinance #DigitalCompany #Marketing #CVM
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CEO of Lotte Card
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Chairman of TSE
Kwon Sang-jun
- Kwon Sang-jun is the chairman of TSE. TSE is a company that manufactures testing equipment for semiconductors and electronic products. Kwon Sang-jun has focused on expanding the probe card lineup and developing testing equipment for non-memory semiconductors. He was born on July 26, 1958. He graduated from Daegu High School and studied electronic engineering at Kyungpook National University. Immediately after graduating from Kyungpook National University, he joined Samsung Electronics, where he worked until 1988. He then gained experience at Schlumberger Korea, a U.S. oil development company, and at Donghwa Advantest, a Japanese manufacturer of semiconductor testing equipment. Later, he founded TSE and became its CEO. In 2019, he stepped down from the CEO position and introduced a professional management system. He localized semiconductor testing equipment, which had previously been reliant on imports. #KwonSangjun #TSE #semiconductor #testingequipment #probeCard #localization #electronics #KyungpookUniversity #SamsungElectronics #professionalmanagement
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Chairman of TSE
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President of Chosun University
Kim Chun-sung
- Kim Chun-sung is the president of Chosun University, having taken office on December 8, 2023, for a four-year term. He aims to transcend the boundaries between the university and the local community, positioning the university as a catalyst for regional growth and innovation. Born in 1968, Kim earned his undergraduate degree in Genetic Science from Chosun University, followed by a master's and doctorate in Genetic Science from Chosun University's Graduate School. He also worked as a postdoctoral researcher at the University of Minnesota Medical School in the United States. In March 2009, Kim returned to his alma mater, joining the faculty of the Basic Dental Science Department at Chosun University’s School of Dentistry. He has held various leadership positions, including Director of the Technology Commercialization Center, Head of the LINC+ Project Group, Director of the Marine Healthcare Efficacy Verification Center, Director of Research, and Head of the University-Industry Cooperation Foundation. He also served as Director of Planning and Coordination and Head of the University Innovation Project Support Center. Externally, Kim has been a member of the Presidential Committee for Regional Development's Evaluation Advisory Group and a specialist at the Ministry of Science, ICT and Future Planning's Research Outcome Commercialization Promotion Agency. Amid heightened tensions between the university administration and the foundation, which escalated to the resignation of the vice president and faculty leadership, as well as a movement calling for the chairman’s resignation, the university faced significant upheaval. The situation was further exacerbated by the university’s failure to be selected for the Glocal University 30 project, causing a considerable shock. Kim must now mediate internal conflicts, heal the wounds, and guide the university through these challenges, as tensions that surfaced before his appointment have escalated within his first year in office. #KimChunsung #ChosunUniversity #universitypresident #regionaldevelopment #geneticscience #highereducation #facultyconflict #leadership #innovation #universitygovernance
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President of Chosun University
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CEO of VT
Jeong Cheol
- Jeong Cheol is the co-CEO of VT and also serves as the co-CEO of Cube Entertainment. Together with co-CEO Kang Seung-gon, Jeong oversees the management of VT. Cube Entertainment operates under a three-person management system with co-CEOs Kang Seung-gon, Ahn Woo-hyung, and Jeong Cheol. Born on March 7, 1985, in Gwangju, Jeong graduated from Korea National College of Agriculture and Fisheries. After graduation, in 2010, he founded "Gonsen," the predecessor of VT Cosmetics. VT (formerly VT GMP) is the result of a 2019 merger between VT Cosmetics and GMP, a laminating manufacturer. VT primarily operates in the cosmetics and entertainment sectors. Its major subsidiary, Cube Entertainment, is well-known as the agency of the idol group (G)I-DLE. Since 2021, Jeong has been serving as the co-CEO of both VT and Cube Entertainment, focusing on maximizing the synergy between the cosmetics and entertainment businesses. #JeongCheol #VT #CubeEntertainment #cosmetics #entertainment #GIDLE #KangSeunggong #AhnWoohyung #synergy #management #merger
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CEO of VT
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CEO of S-1 Corporation
Namgoong Beom
- Namgoong Beom is the CEO and President of S-1 Corporation. He is leading the company’s efforts to penetrate the smart security market by incorporating advanced technologies such as artificial intelligence, the Internet of Things (IoT), and big data into the security business. Namgoong Beom was born on January 15, 1964. He graduated with a degree in Business Administration from Korea University. In 1989, he joined Samsung Electronics’ accounting team and worked in financial management for over 30 years. After serving as head of the accounting group, he was promoted to Executive Vice President and Head of the Financial Management Team in 2015. In 2022, he was appointed CEO and President of S-1 Corporation. Namgoong Beom is recognized as a financial expert due to his long tenure in financial management at Samsung Electronics. He is considered a key figure in Samsung’s financial division, following in the footsteps of Choi Yoon-ho, CEO and President of Samsung SDI, and former Head of Samsung Electronics' Corporate Management Office. #NamgoongBeom #S1Corporation #SamsungElectronics #smartsecurity #AI #IoT #bigdata #financialexpert #Koreanbusiness #CEO #Samsung
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CEO of S-1 Corporation
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Vice Chairman of LG Chem
Shin Hak-cheol
- Shin Hak-cheol is the Vice Chairman and CEO of LG Chem. He is focusing his efforts on strengthening LG Chem’s non-petrochemical businesses, such as battery materials, eco-friendly materials, and global new drug development, with the goal of transforming LG Chem into a "top global science company." Born on August 18, 1957, in a farming family in Goesan, Chungcheongbuk-do, Shin graduated from Cheongju High School. He began his career as an engineer at Poongsan Metal Corporation before graduating from Seoul National University with a degree in Mechanical Engineering. After moving to 3M Korea, he worked in the Philippines branch and later at 3M’s U.S. headquarters. Shin started at 3M as a junior employee and rose to become Executive Vice President overseeing 3M’s global business, earning the nickname "innovation evangelist." Shin was recruited as Vice Chairman and CEO of LG Chem when LG Group Chairman Koo Kwang-mo took office, and he began his second term as CEO in 2022. He is the first external professional executive to lead LG Chem. Shin emphasizes "leadership based on fundamentals and principles" and prioritizes hands-on field management. Since 2024, he has been focusing on fostering three new growth engines: battery materials, eco-friendly materials, and pharmaceuticals. He highlights innovation, learning, communication, and debate as essential qualities of leadership. #ShinHakcheol #LGChem #LGGroup #batterymaterials #ecofriendlymaterials #pharmaceuticals #leadership #Koreanbusiness #innovation #globalexpansion #professionalCEO
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Vice Chairman of LG Chem
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Chairman of Biosmart
Park Hye-rin
- Park Hye-rin is the Chairwoman of Biosmart. She also serves as CEO of its affiliates, Omnisystem and AMS Bio. At the listed affiliates Biosmart and The Lami, she works as an inside director. Park Hye-rin was born on September 1, 1969, in Yeoju, Gyeonggi-do. She graduated from Jamsil Girls' High School and studied Library Science at Seoul Women's University. She later earned a master's degree in Convergence Technology Management from Yonsei University Graduate School. After graduating from university, she achieved success in the tire import and distribution business and acquired a stake in Biosmart in 2007. She is a business leader who has expanded her company through mergers and acquisitions (M&A) and has earned the nickname "The Queen of M&A." #ParkHyerin #Biosmart #Omnisystem #AMSbio #CEO #chairwoman #M&A #businessleader #Koreanbusiness #companyacquisition #ConvergenceTechnologyManagement
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Chairman of Biosmart
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CEO of Yanolja
Lee Su-jin
- Lee Su-jin is the CEO of Yanolja. He has set the goal of transforming Yanolja, the leading platform in the domestic accommodation industry, into a global travel tech company. Born in February 1978 in Chungju, Chungcheongbuk-do, he graduated from Doowon Technical High School in Anseong and the Department of Mold Engineering at Cheonan Technical College (currently Kongju National University's College of Engineering, Cheonan Campus). Having lost his parents early, he was raised by his grandparents. After graduating from the technical college, he gained experience in the lodging business by working as a cleaner in a motel. In 2007, he founded Yanolja and has been leading the company as its CEO ever since. He is regarded as a model of a successful, self-made young entrepreneur. He is also known for showing decisiveness through bold investments. #LeeSujin #Yanolja #CEO #selfmade #entrepreneur #lodgingbusiness #globalexpansion #investment #traveltech #success
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CEO of Yanolja
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Chairman of Korea Petrochemical Ind. Co.
Lee Soon-kyu
- Lee Soon-kyu is the Chairman of Korea Petrochemical Ind. Co., Ltd., one of the first-generation petrochemical companies in South Korea. He was born on July 14, 1959, in Seoul. Lee is the nephew of Lee Jung-rim, Honorary Chairman and founder of Korea Petrochemical. His father, Lee Jung-ho, was also a co-founder and the younger brother of Lee Jung-rim. He graduated from Myungji High School in Seoul and studied law at Hanyang University. He later completed his MBA at Hofstra University in the United States. Lee began his career at Wondong Industries in 1988 and joined Korea Petrochemical in 1991. He held various positions, including auditor, executive director, vice president, and president, before becoming Chairman and CEO in 2007. #LeeSoonkyu #KoreaPetrochemical #firstgenerationbusiness #SouthKorea #petrochemicalindustry #businessleadership #familybusiness #HanyangUniversity #HofstraUniversity
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Chairman of Korea Petrochemical Ind. Co.
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Minister of National Defense
Kim Yong-hyun
- Kim Yong-hyun is the third Minister of National Defense under the Yoon Suk-yeol administration. He was born on June 25, 1959, in Masan, Gyeongsangnam-do (now part of Changwon). In 1978, he graduated from Chungam High School in Seoul (Class 7), where he was one year ahead of President Yoon Suk-yeol (Class 8). In the same year, he entered the Korea Military Academy as part of the 38th class, marking the start of his military career. He later served as Commander of the 17th Infantry Division and the Capital Defense Command, before retiring as a three-star general (Lieutenant General) in 2017. There is a perspective that Kim’s promotion to a four-star general (General) was hindered when the Moon Jae-in administration opted to promote non-Korea Military Academy generals, bypassing traditional military ranks. After his retirement, Kim reportedly became close friends with Yoon Suk-yeol, then Prosecutor General, often described as his drinking buddy. In August 2021, Kim entered politics by joining Yoon Suk-yeol's presidential campaign. Following Yoon's election, Kim served on the Presidential Transition Committee and was appointed Chief of the Presidential Security Service in May 2022, under Yoon’s first administration. On August 12, 2024, Kim was nominated as the third Minister of National Defense under the Yoon administration, and he was formally appointed on September 6 of the same year. #KimYonghyun #YoonSukyeol #NationalDefenseMinister #Koreanmilitary #ChungamHighSchool #KoreaMilitaryAcademy #politics #militaryleadership #Yoonadministration #defense
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Minister of National Defense
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Chairman of JNTC
Jang Sang-wook
- Jang Sang-wook is the Chairman of JNTC. He focuses on the business of strengthened glass (cover glass) for mobile phones and is also accelerating efforts in the semiconductor glass substrate sector. Jang was born on May 18, 1959, in Uljin, North Gyeongsang Province, as the third child in a family of three sons and one daughter. He graduated from Busan Technical High School, majoring in Mechanical Engineering. After working as a researcher at Samsung Electro-Mechanics’ Production Technology Research Institute, he founded Jinwoo Engineering and became its CEO. In 1999, he established JNTC and led its growth by founding subsidiaries in China, Vietnam, and Comet, among others. He played a key role in the localization of factory automation equipment. By focusing on the strengthened glass business for mobile phones, he grew JNTC into a mid-sized company with annual sales exceeding KRW 300 billion (US$ 216 million). Jang is known for his creativity and enjoys logical reasoning. #JNTC #JangSangwook #CoverGlass #Semiconductor #MobileTechnology #FactoryAutomation #Entrepreneurship #KoreanBusiness #Innovation #Leadership
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Chairman of JNTC
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Chairman of DB
Kim Nam-ho
- Kim Nam-ho is the Chairman of DB Group. He is working to cultivate the semiconductor business as a new growth engine for the group, aiming to reduce dependence on the financial sector and build a business portfolio capable of sustainable growth. He also faces the task of restructuring the corporate governance, including the conversion of DB into a holding company. He was born on August 23, 1975, in Seoul, as the eldest son of Kim Jun-ki, the founding chairman of Dongbu Group. He graduated from Gyeonggi High School in Seoul and majored in Business Administration at Westminster University in the United States. After working at the global consulting firm AT Kearney, he earned his MBA from the University of Washington Graduate School. He joined Dongbu Steel as a deputy manager of the Asan Bay Management Team and later served as the head of the HR department at Dongbu Steel and a manager at Dongbu Farm Hannong. He then advanced through roles such as Head of Financial Strategy at DB Financial Research Institute and Vice President before becoming the Chairman of DB Group. Known for his humble and calm personality, he is often recognized for having a leadership style distinct from his father, Kim Jun-ki, the founding chairman. #DBGroup #KimNamho #Chairman #Semiconductor #SustainableGrowth #CorporateGovernance #FinancialSector #DongbuSteel #Leadership #KoreanBusiness
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Chairman of DB
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CEO of MCNEX
Min Dong-uk
- Min Dong-uk is the CEO and founder of MCNEX, a company that manufactures camera modules for mobile phones and automotive electronics. He was born on October 4, 1970, in Seoul. Min graduated from Goryeo High School and later earned a degree in Electrical Engineering from Dongguk University. In 1997, he joined Hyundai Electronics as a mobile phone development researcher, where he participated in the development of the "Gulliver" phone. In 2001, he moved to Pantech & Curitel, where he contributed to the implementation of video technology for video calls in mobile phones for the first time. With the ambition of localizing mobile phone camera modules that were previously reliant on Japanese imports, Min founded MCNEX in 2004. In less than 20 years, he grew the company into a mid-sized enterprise with annual revenues exceeding KRW 1 trillion (US$ 720 million). He is now focusing on research and development and expanding the market for cameras that will be used in autonomous vehicles, seeing this as the company’s future growth driver. #MCNEX #MinDonguk #CameraModules #AutonomousVehicles #MobileTechnology #KoreanBusiness #CEO #Entrepreneur #AutomotiveElectronics #CorporateGrowth
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CEO of MCNEX
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President of Incheon Airport
Lee Hak-jae
- Lee Hak-jae is the CEO & President of Incheon International Airport Corporation. He is focused on fully normalizing airport operations to meet the recovering demand for air travel. Additionally, he is working to successfully complete the fourth-phase project aimed at expanding Incheon Airport’s infrastructure. Lee was born on August 19, 1964, in Gimpo, Gyeonggi Province. He graduated from Bupyeong High School and earned a degree in Animal Science from Seoul National University. He later obtained both a master’s and a doctorate in Economics from Chung-Ang University Graduate School. Lee began his career with the Incheon Environmental Movement Union and later served as a member of the Seo District Council in Incheon. He went on to serve two terms as the mayor of Incheon’s Seo District. He was elected as a member of the National Assembly three times in a row, starting from the 18th general election. Lee was appointed as Chief of Staff to Park Geun-hye when she was the interim leader of the Saenuri Party and later served as her Chief of Staff during her presidential campaign. He has held various key roles, including secretary of the National Assembly’s Special Committee on Budget and Accounts, vice-chairman of the Saenuri Party’s Policy Committee, and chairman of the National Assembly’s Intelligence Committee. Lee left the Liberty Korea Party (now the People Power Party) to join the Bareun Party, before rejoining the Liberty Korea Party. He served as a political advisor to Yoon Suk-yeol during his presidential campaign as a candidate of the People Power Party. In the 2020 general election for the 21st National Assembly, Lee was defeated by Kim Kyo-heung, a member of the Democratic Party of Korea. In April 2023, after Kim Kyung-wook resigned from his position with 10 months left in his term, Lee applied for and was ultimately selected as the new CEO & President of Incheon International Airport Corporation. He assumed office in June 2023 amidst controversy over his appointment, which some critics labeled as a “parachute” appointment. His term is set for three years. As a former social activist turned politician, Lee is known for his strong leadership and effective communication skills. #LeeHakjae #IncheonAirport #AviationRecovery #AirportInfrastructure #SouthKorea #NationalAssembly #ParkGeunhye #PeoplePowerParty #YoonSukyeol #IncheonInternationalAirportCorporation #Leadership
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President of Incheon Airport
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Minister of Trade, Industry and Energy
Ahn Duk-geun
- Ahn Duk-geun is the Minister of Trade, Industry and Energy. He is dedicated to supporting companies in expanding exports and enhancing the competitiveness of future industries. He is also focused on successfully completing major projects such as securing contracts for nuclear power plant construction in the Czech Republic and developing oil and gas fields in the East Sea. He was born on April 21, 1968, in Daegu. Ahn graduated from Daegu Deokwon High School and Seoul National University with a degree in International Economics. He earned both his master’s and doctorate degrees in Economics from the University of Michigan's graduate program, and obtained a Juris Doctor (J.D.) from the University of Michigan Law School. Ahn has served as a visiting professor, assistant professor, and associate professor at the KDI School of Public Policy and Management, and worked as a professor in the Graduate School of International Studies at Seoul National University. As an expert in international trade, he has held various advisory positions including advisor to the Ministry of Justice’s New Round Legal Support Task Force, non-executive member of the Trade Commission at the Ministry of Trade, Industry and Energy, chair of the TPP Strategic Forum, chairman of the Private Advisory Committee for Trade Negotiations, and non-executive director of KOTRA. During the Park Geun-hye administration, he served as an expert member of the Presidential Transition Committee’s Economic Division 1 and as a macro-finance advisor for the National Economic Advisory Council. With the inauguration of the Yoon Suk-yeol administration, Ahn was appointed as the head of the Trade Negotiation Headquarters at the Ministry of Trade, Industry and Energy, where he focused on responding to the U.S. Inflation Reduction Act (IRA) and semiconductor policies. He is known for his gentle personality and strong communication skills. #AhnDukgeun #TradeIndustryEnergy #KoreanPolitics #CzechNuclearProject #EastSeaOilGas #TradeNegotiation #InternationalTrade #YoonSukyeolAdministration #InflationReductionAct #SouthKorea
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Minister of Trade, Industry and Energy
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CEO of EO Technics
Sung Kyu-dong
- Sung Kyu-dong is the CEO of EO Technics, where he oversees management alongside co-CEO Park Jong-goo. He was born in 1957 in Busan. Sung graduated from Seoul National University with a degree in Electrical Engineering and later earned a master’s degree in the same field from Seoul National University Graduate School. He began his career at the Goldstar Central Research Center (now LG Electronics Research Institute). After working at Daewoo Heavy Industries’ Technology Research Center and Korea Laser, he founded EO Technics in 1989. Sung developed the world’s first pen-type laser marking equipment. He has also served as a director of the Korea Semiconductor Industry Association and as a vice-chairman of the KOSDAQ Association. Sung is known for his charismatic leadership and strong sense of pride. He is committed to growing EO Technics into a total laser solutions company that covers all areas of the laser industry through bold and innovative management strategies. #SungKyudong #EOTechnics #laserindustry #semiconductor #innovativeleadership #lasermarking #totalsolutions #SouthKorea #technology #CEO
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CEO of EO Technics
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President of Duksung Women’s University
Kim Gun-hee
- Kim Gun-hee is the president of Duksung Women's University, having taken office on January 20, 2022, with a four-year term. She is the first president of the university to be an alumna and the second to be elected through a direct election system. Her goal is to build a prepared university that pursues future values. Born on February 5, 1958, in Seoul, Kim graduated from Jinmyeong Girls' High School and earned her bachelor's degree in Food and Nutrition from Duksung Women's University. She later received a master's degree in Food and Nutrition from the same university and a Ph.D. in Food Engineering from the University of New South Wales in Australia. In 1993, she joined her alma mater, Duksung Women's University, as a professor in the Department of Food and Nutrition. She has worked as a visiting researcher at the U.S. Department of Agriculture, the University of Hawaii, the University of Newcastle, and the University of New South Wales. Kim has served as a food consultant for eight ASEAN countries and held leadership positions such as Vice President of the Korean Society of Food and Nutrition, President of the Korean Society of Food Hygiene and Safety, and Director of the Korea Nutrition Education and Evaluation Institute. Within the university, she has held roles such as Dean of the College of Natural Sciences and Dean of the College of Science and Technology, before being appointed president of Duksung Women's University in 2022. #KimGunHee #DuksungWomensUniversity #universitypresident #FoodNutrition #FoodEngineering #KoreanEducation #ASEANFoodConsultant #universityleadership #academicleadership #womeninleadership
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President of Duksung Women’s University
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Minister of Health and Welfare
Cho Kyoo-hong
- Cho Kyoo-hong is the Minister of Health and Welfare. Cho faces the task of resolving conflicts between the government and the medical community that have arisen from the Yoon Suk-yeol administration’s policy to increase medical school quotas. He is also working to revise the national pension reform plan, which was introduced in September 2024, in response to demands from various sectors of society. Cho was born on February 19, 1967, in Seoul. He graduated from Seoul Jungang University High School and majored in economics at Seoul National University. He later earned a master’s degree in public administration from Seoul National University’s Graduate School of Public Administration, as well as a master’s and doctorate in economics from the University of Colorado, USA. Cho entered public service through the 32nd civil service exam and worked in the Budget Office of the Ministry of Finance and Economy and the Ministry of Planning and Budget. At the Ministry of Strategy and Finance, he served as Director of the Budget System Division, Director of the General Budget Division, Economic Budget Deliberation Officer, and Director-General for Fiscal Management. During the Lee Myung-bak administration, he worked at the Blue House as an administrative officer and senior administrative officer in the Office of Planning and Management. He also worked as a senior administrative officer in the Office of Planning Secretary during the Park Geun-hye administration. After serving as Director-General for Fiscal Management at the Ministry of Strategy and Finance, Cho worked as a director at the European Bank for Reconstruction and Development (EBRD). He also participated in drafting economic policy pledges as a member of the first economic subcommittee of the Presidential Transition Committee for the Yoon Suk-yeol administration. After Yoon’s administration began, Cho was appointed as the First Vice Minister of Health and Welfare. Four months later, he was promoted to Minister of Health and Welfare. #ChoKyooHong #MinisterofHealthandWelfare #YoonSukYeol #pensionreform #medicalschoolquota #publichealthpolicy #economicpolicy #SouthKorea #healthcare #governmentleadership
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Minister of Health and Welfare
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Executive Director of Hyundai Insurance
Chung Kyung-sun
- Chung Kyung-sun is the Executive Director at Hyundai Marine & Fire Insurance. He has been involved in supporting social enterprises and social ventures, and it is expected that he will accelerate the management succession process at Hyundai Marine & Fire Insurance while strengthening its ESG activities, based on his prior experiences. Born on August 28, 1986, in Seoul, Chung graduated from Kyungbock High School and earned a degree in Business Administration from Korea University. He later completed an MBA at Columbia Business School in the United States. In 2012, leveraging his experience working at the Asan Nanum Foundation, a public welfare organization, he founded Root Impact, which supports social enterprises, nonprofit foundations, and social ventures. In 2014, he established the impact investment firm HGI. Since 2020, he has been a co-founder and managing partner at Silvan Group. In December 2023, Chung joined Hyundai Marine & Fire Insurance as Chief Sustainability Officer (CSO) and Executive Director. In August 2024, he also took on the role of Chief Risk Officer. As of 2024, Chung serves on the advisory board of Rockefeller Asset Management, is the Chair of the Board at Communitas America, and is also a board member at the Resilient Cities Network. Though known for his introverted personality, he is also praised for his strong drive and determination. #ChungKyungSun #HyundaiMarine #ESG #RootImpact #HGI #ColumbiaMBA #socialventure #impactinvestment #corporatesustainability #resilientcities #managementsuccession
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Executive Director of Hyundai Insurance
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Chairman of the Board at Soonchunhyang University
Suh Kyo-il
- Suh Kyo-il is the Chairman of the Dongeun Educational Foundation, which operates Soonchunhyang University. He served as the university's president during its 4th, 5th, 7th, and 8th terms. He is the only son of Suh Succ-jo, the founder of Soonchunhyang University and a renowned neurologist who was also the personal physician of First Lady Yuk Young-soo. Suh Kyo-il himself is an internal medicine specialist with additional expertise in endocrinology and nuclear medicine. Suh is dedicated to fostering adventurous and innovative creativity and providing education that instills correct values. He was born in Seoul on August 3, 1959. He graduated from Baemoon High School in Seoul and obtained his medical degree from Seoul National University College of Medicine. He also earned his master’s and doctorate degrees from Seoul National University Graduate School. After completing his residency at Seoul National University Hospital, he continued his training as a fellow in endocrinology at the University of Southern California. In 1994, he joined the Department of Internal Medicine at Soonchunhyang University’s College of Medicine, which was founded by his father. In academia, Suh served as the president of the Korean Endocrine Society. He has also held various leadership positions, including Director of the Korean Federation of Science and Technology Societies, member of the University Admission Committee of the Korean Council for University Education, and Senior Vice President of the Korean Association of Private University Presidents. #SuhKyoIl #SoonchunhyangUniversity #endocrinology #DongeunEducationalFoundation #Koreaneducation #medicaleducation #SeoulNationalUniversity #KoreanEndocrineSociety #academicleadership #privateuniversities
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Chairman of the Board at Soonchunhyang University
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Chairman of PHC
Kim Sang-tae
- Kim Sang-tae is the chairman of PHC. He also serves as the CEO of affiliated companies, VPHI and PHC Valeo. However, he stepped down as CEO of the key subsidiary PHA (formerly Pyeonghwa Jeonggong) in 2022. As a second-generation owner, his father was the late chairman Kim Sang-young. Kim Sang-tae was born on November 20, 1953, in Daegu. He graduated from Daegu Gyeseong High School and Kyungpook National University, where he majored in English education at the College of Education. After graduating from university, he worked as a high school teacher. Later, he gained experience at Dongwon Industries and joined Pyeonghwa Clutch Industry in 1982. After his father passed away in 1990, Kim took over the company's management and grew it into a mid-sized enterprise with annual revenue exceeding KRW 1 trillion (approximately US$ 721.2 million). Notably, PHA has become the global leader in the automotive door module market. Kim Sang-tae values corporate innovation and social responsibility. He is currently focused on ensuring the smooth operation of PHC's new plant in Georgia, USA, which is scheduled to begin production at the end of 2024. He is also interested in new business ventures such as hydrogen fuel cell systems, electromagnetic shielding materials, and purpose-built vehicles (PBV). #PHC #KimSangTae #PHA #automotivedoormodules #hydrogenfuelsystems #electromagneticshielding #purposebuiltvehicles #corporatesocialresponsibility #automotiveindustry #Georgia
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Chairman of PHC
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Chairman of Samchundang Pharm
Yoon Dai-in
- Yoon Dai-in is the Chairman and CEO of Samchundang Pharm. He also holds the positions of Chairman and CEO of Sohoa Group and Chairman of Gangdong Sacred Heart Hospital. Born on March 23, 1950, he is the second son of the late Yoon Deok-seon, honorary chairman and founder of Ilsong Academy. Ilsong Academy founded Hallym University Medical Center and Hallym University, which operates several hospitals, including Seoul Gangnam Sacred Heart Hospital, Gangdong Sacred Heart Hospital, and Dongtan Sacred Heart Hospital. Yoon graduated from Kyunggi High School in Seoul and earned his bachelor’s degree in business administration from Seoul National University. He later obtained an MBA from Long Island University in the United States. He inherited the Sacred Heart Medical Foundation and Gangdong Sacred Heart Hospital from his father, Yoon Deok-seon. In 1986, Yoon acquired Samchundang Pharm and rapidly grew the company by supplying its pharmaceutical products to the hospitals under his management. Although Samchundang Pharm had seen limited success for several decades after its founding, it began to grow significantly after Yoon took over. The company has continued to show steady growth, evolving into a mid-sized pharmaceutical company with annual sales exceeding KRW 200 billion (US$ 144.3 million). Samchundang Pharm was founded in December 1943 under the name "Chosun Samchundang." It changed its name to the current "Samchundang Pharm" in February 1986, and was listed on the KOSPI in October 2000. Samchundang Pharm specializes in ophthalmic drugs, with more than half of its revenue coming from this category. Its leading products include "Hameron" and "Tearin Free," treatments for dry eyes and keratitis. Yoon Dai-in, a devout Catholic, is recognized for running the company with a Catholic-based philosophy, contributing to public health through ethical management practices. #YoonDaiin #SamchundangPharm #SohoaGroup #GangdongSacredHeartHospital #ophthalmicdrugs #pharmaceuticalindustry #Catholicbusiness #HallymUniversityMedicalCenter #KOSPI #Hameron #KyunggiHighSchool
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Chairman of Samchundang Pharm
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Chairman of Dongkook Pharmaceutical
Kwon Gi-beom
- Kwon Gi-beom is the chairman of Dongkook Pharmaceutical. Kwon is focusing on business expansion with the goal of achieving KRW 1 trillion (US$ 721.2 million) in revenue by 2025. He is particularly committed to strengthening the healthcare business and advancing the research and development of improved new drugs. Born on March 23, 1967, Kwon Gi-beom is the eldest son of Kwon Dong-il, the founder of Dongkook Pharmaceutical. He graduated from Yongsan High School in Seoul and went on to study social work (currently known as social welfare) at Yonsei University. In 1991, he pursued an MBA at the University of Denver, and later completed the Stanford Executive Program in 1996 and the Trium Global EMBA in 2012. Kwon joined Dongkook Pharmaceutical in 1994. He held positions as managing director and executive director before being appointed vice president and CEO in 2002. He later served as president and vice chairman, eventually becoming chairman in 2022. Taking on the CEO role at the young age of 34, Kwon grew Dongkook Pharmaceutical's revenue from around KRW 30 billion (US$ 21.6 million) in 2002 to KRW 730 billion (US$ 526.3 million) by 2023. #KwonGibeom #DongkookPharmaceutical #pharmaceuticalindustry #businessgrowth #healthcare #newdrugdevelopment #executiveleadership #Koreanbusiness #corporateleadership #revenuegrowth
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Chairman of Dongkook Pharmaceutical
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Chairman of Sama Aluminium
Hahn Nam-hee
- Hahn Nam-hee is the Co-CEO and Chairman of Sama Aluminium. He also serves as the Chairman of the Board of Directors. He was born on December 17, 1956, in Seoul, as the eldest son of Hahn Sang-gu, Honorary Chairman of Sama Aluminium, and Yoo Soon-kyung. Hahn Nam-hee graduated from Gyeonggi High School in Seoul and went on to earn a degree in aerospace engineering from Seoul National University. He completed his master’s degree at both Seoul National University’s graduate school and Stanford University (majoring in aerospace engineering). He later finished his Ph.D. in engineering at the University of California, Davis. He worked as a senior researcher at Daewoo Motors’ Technical Research Institute before joining Sama Aluminium in 1991. He advanced through various positions, including Head of the Technology Division, Director, and Executive Vice President, before being promoted to Vice President in 1999 and CEO in 2001. Since 2015, he has held the roles of Co-CEO, Chairman, and Chairman of the Board of Directors. Hahn is also active as a director of the Korea National University of Arts Development Foundation. In 1998, Sama Aluminium became the first company in Korea to successfully develop aluminum foil for secondary batteries. The company supplies this product to Korea’s top three battery manufacturers: LG Energy Solution, SK On, and Samsung SDI. By swiftly transitioning its core business to secondary batteries, Sama Aluminium has significantly increased its corporate value. #HahnNamhee #SamaAluminium #secondarybatteries #Korea #LGEnergySolution #SKOn #SamsungSDI #aluminumfoil #businessleader #corporategovernance #SouthKorea #KoreaNationalUniversityofArts #DaewooMotors
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Chairman of Sama Aluminium
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Honorary Chairman of Fursys Holdings
Son Dong-chang
- Son Dong-chang is the Honorary Chairman of Fursys Holdings. He also serves as the chairman of the Mokhoon Foundation under Fursys. He is the founder of Fursys, the leading office furniture company in South Korea. Son Dong-chang was born on March 9, 1948, in Andong, Gyeongsangbuk-do. He graduated from Kyungbok Middle School in Seoul and the Craft Department of Gyeonggi Technical College (now Seoul National University of Science and Technology). After gaining experience at Hanssem, where he joined in 1976, he founded Hanssem Industries (now Fursys) in 1983. In 2019, he stepped down from the frontlines of management and became the Honorary Chairman. He is a self-made businessman who built South Korea's top office furniture company from scratch. #SonDongchang #FursysHoldings #MokhoonFoundation #officefurniture #founder #selfmade #businessman #honorarychairman #Koreabusiness #Hanssem
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Honorary Chairman of Fursys Holdings
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President & GM of the Foundry Business at Samsung Electronics
Choi Si-young
- Choi Si-young is the President and General Manager of the Foundry Business at Samsung Electronics. He is striving to overtake Taiwan’s TSMC, the world leader in the foundry (semiconductor contract manufacturing) business, which forms a crucial part of Samsung Electronics' system semiconductor division. Currently, he is focusing the company's efforts on resolving yield (ratio of functional products) issues in advanced processes of 3nm or smaller technologies. Choi was born on January 18, 1964, in Seoul. He graduated from Yonsei University with a degree in Materials Engineering and earned a master’s degree in Materials Engineering from Yonsei University’s graduate school. He also received a Ph.D. in Electronic Materials Engineering from Ohio State University in the United States. After joining Samsung Electronics, Choi gained expertise in semiconductor processes, working in the Process Development Team of the Semiconductor Research Institute. He later held roles such as Head of the Process Development Team in the Foundry Business Team, Head of the Yield Enhancement (YE) Team in the System LSI Center, Head of the Foundry Manufacturing Technology Center, and Head of the Memory Manufacturing Technology Center. In 2020, he succeeded President Jung Eun-seung as the Head of the Foundry Business. Choi has led both the process development and manufacturing sectors of Samsung Electronics' semiconductor business. #ChoiSiYoung #Samsung #foundry #semiconductor #TSMC #systemsemiconductor #3nmprocess #yieldenhancement #processdevelopment #manufacturing
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President & GM of the Foundry Business at Samsung Electronics
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CEO of Selvas AI
Kwak Min-chul
- Kwak Min-chul is the CEO of Selvas AI and also serves as the CEO of Mediana. He was born on January 10, 1975. Kwak graduated from the Department of English Language and Literature at Incheon University. In 1997, he graduated from the Department of Applied Computer Science at the Graduate School of Management Information Systems at Hankuk University of Foreign Studies. That same year, he founded Infraware, the predecessor of Selvas AI. In 2016, the company changed its name to Selvas AI. Selvas AI became the first AI company to be listed on the KOSDAQ, earning the title of "Korea's first AI-listed company." As an AI company, Selvas AI offers a range of AI-integrated products based on Human-Computer Interaction (HCI) technology, which helps facilitate communication between humans and computers. These technologies include voice recognition, speech synthesis, Optical Character Recognition (OCR), and handwriting recognition. The company’s name, ‘Selvas,’ refers to a tropical rainforest, where plant growth is the fastest on Earth. This name reflects Kwak Min-chul’s management philosophy of "continuous growth through relentless challenges." #KwakMinchul #SelvasAI #Mediana #AI #Infraware #HCI #KOSDAQ #voiceRecognition #OCR #SouthKorea #businessleadership #AItechnology #growth
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CEO of Selvas AI
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Vice Chairman of Dong-A Otsuka
Jo Ik-sung
- Jo Ik-sung is the Vice Chairman of Dong-A Otsuka. He is focusing on achieving KRW 400 billion (US$ 288.4 million) in revenue by 2026, with a strong emphasis on expanding the zero-calorie carbonated beverage business. He is also committed to promoting Dong-A Otsuka's ESG (Environmental, Social, Governance) management. Born in 1961, Jo majored in Accounting at Chosun University's School of Business before joining Dong-A Pharmaceutical in 1987. In 2011, he moved to a subsidiary of Dong-A Socio Holdings, which manufactures glass bottles, where he served as Senior Executive Director in 2011 and Executive Director in 2015. In 2016, he became the CEO of Suseok. In 2021, Jo was appointed CEO of Dong-A Otsuka, demonstrating exceptional management skills by overcoming the company's deficit. Recognizing his achievements, he was promoted to Vice Chairman of Dong-A Otsuka in 2023. He is known for his keen sense of adapting to changing market trends. #JoIksung #DongAOtsuka #zerocalorie #carbonatedbeverages #ESG #ViceChairman #businessleadership #markettrends #Koreanbusiness
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Vice Chairman of Dong-A Otsuka
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Chairman of Hana Micron
Choi Chang-ho
- Choi Chang-ho is the Chairman of Hana Micron and also serves as the Chairman of its subsidiary, Hana Materials. He is not registered as an executive director in either company. Choi is the founder of Hana Micron, which operates in the semiconductor post-processing business, and Hana Materials, which manufactures components used in semiconductor production. Born on December 26, 1950, in Masan, Gyeongnam, Choi graduated with a degree in Economics from Yeungnam University and later earned a Ph.D. in Business Administration from the Korea University of Technology and Education. He began his career in 1973 at Cheil Industries and moved to Samsung Electronics' Semiconductor Division in 1987, where he contributed to the early development of Samsung’s semiconductor division as Director of the Management Headquarters. During his time at Samsung Electronics, Choi held key positions, including Director of the Management Support Office, Head of the Semiconductor Support Office, and Director of the Mexico Complex. In 2001, he led the spinoff of Samsung Electronics' semiconductor packaging division and founded Hana Micron. In 2007, he established Hana Silicon, which is now Hana Materials. Choi has grown Hana Micron into the top semiconductor post-processing company in Korea. The company is recognized for having a balanced portfolio in both memory and non-memory sectors. Choi is focused on positioning Hana Micron as a leading company in the system semiconductor ecosystem, performing post-processing operations through a turn-key approach. #ChoiChangho #HanaMicron #HanaMaterials #semiconductor #postprocessing #SamsungElectronics #founder #businessleadership #turnkey
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Chairman of Hana Micron
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Chairman of DGB Financial Group
Hwang Byung-woo
- Hwang Byung-woo is the Chairman of DGB Financial Group and also serves as the president of iM Bank. He is focusing on expanding iM Bank's nationwide sales network after its conversion into a commercial bank. Hwang is also interested in digital transformation and communication among employees. He was born on April 27, 1967, in Sangju, Gyeongsangbuk-do. He graduated from Seonggwang High School in Daegu and majored in Economics at Kyungpook National University. He also obtained his master’s and doctoral degrees in Economics from the same university. Hwang began his career as a researcher at Daegu Bank's Financial Economics Research Institute, a subsidiary of Daegu Bank. Within Daegu Bank, he held various positions including Director of DGB Management Consulting Center, Director of Corporate Management Consulting Center, and Branch Manager of Bonridong. After Kim Tae-oh became the chairman of DGB Financial Group, Hwang moved to the holding company, where he served in roles such as Chief of Staff, Director of Management Support, Secretary General of the Board of Directors, Head of Group Future Planning, Director of Group Sustainability Management, and Head of the ESG Strategic Management Institute. After the establishment of DGB Financial Group in 2011, he became known as the 'youngest bank president.' In 2024, he was appointed as the Chairman of DGB Financial Group. Hwang values communication within the organization and actively responds to changes. #HwangByungwoo #DGBFinancialGroup #iMBank #Chairman #digitaltransformation #banking #corporatemanagement #ESG #leadership #financialindustry
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Chairman of DGB Financial Group
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CEO of Woori Bank
Cho Byung-kyu
- Cho Byung-kyu is the CEO of Woori Bank. He is working towards making Woori Bank the number one bank in terms of net profit among commercial banks in 2024. He is also focused on maximizing the bank's operational capacity with the goal of reviving Woori Bank's reputation as a leader in corporate finance. During his approximately one-year term, a series of incidents related to internal controls have occurred, leading to increased efforts to prevent recurrences. He was born on February 9, 1965. He graduated from Gwanak High School in Seoul and studied economics at Kyung Hee University. After joining Commercial Bank in 1992, he primarily worked in the corporate finance sector at Woori Bank. He held various roles, starting as the head of the corporate branch at the Corporate Finance Headquarters, and later served as the head of Large Corporate Credit Department, head of the Gangbuk Business Division, and Executive Vice President of the Corporate Group. Known for his calm demeanor, he actively communicates with employees. He emphasizes the importance of a cooperative mindset for achieving results. #ChoByungKyu #WooriBank #CEO #corporatefinance #leadership #internalcontrol #businessstrategy #cooperation #bankingindustry #netprofit
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CEO of Woori Bank
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CEO of Hyundai Motor Securities
Bae Hyung-keun
- Bae Hyung-keun is the President and CEO of Hyundai Motor Securities. He is focused on recovering losses from real estate project financing (structured finance) and establishing a stable future revenue structure. Born in 1965, he graduated from Seoul's Kyunggi High School and studied Business Administration at Korea University. In 1990, Bae joined Hyundai Group, working in the comprehensive planning office. He later served as an aide to Hyundai Motor’s top management, as well as the head of the planning office and the head of the corporate strategy office. After that, he moved to Hyundai Mobis, where he held the positions of CFO and Vice President. In 2024, he was appointed President and CEO of Hyundai Motor Securities. Bae is known as a leading financial expert within Hyundai Motor Group. With his experience in various group affiliates, such as Hyundai Engineering & Construction's comprehensive planning office and Incheon Steel, he has developed expertise in the group’s overall business and strategy. He also has an extensive personal network both domestically and internationally. #BaeHyungkeun #HyundaiMotorSecurities #financialexpert #realestatefinancing #HyundaiMobis #HyundaiMotorGroup #CFO #businessstrategy #KoreaUniversity #financialmanagement
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CEO of Hyundai Motor Securities
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Chairman of Chemtronics
Kim Bo-kyun
- Kim Bo-kyun is the Chairman and CEO of Chemtronics. He is the founder of Chemtronics and serves as co-CEO alongside his eldest son, President Kim Eung-soo. Kim Bo-kyun was born on May 17, 1954, in Geumsan, Chungcheongnam-do, and graduated from Konkuk University. After graduating from university, in 1983, he founded "Shinyoung Chemicals," the predecessor of Chemtronics, a company specializing in electronic components and chemical materials. In 2000, the company changed its name to Chemtronics, a combination of the words “chemistry” and “electronics.” Chemtronics started with the solvent business, producing liquid chemicals that dissolve specific substances, and expanded into electronics, etching (a process that thins thick glass through chemical reactions), and EMC (Electromagnetic Compatibility) materials for wireless charging systems that block electromagnetic waves. Chemtronics gained attention when it was selected as a supplier of components for Apple's next-generation display, the "Hybrid OLED." Kim Bo-kyun is a typical manufacturing industry leader who describes manufacturing as a "comprehensive art." #KimBokyun #Chemtronics #ShinyoungChemicals #manufacturing #electronics #OLED #Apple #EMC #wirelesscharging #chemicalmaterials #businessleader
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Chairman of Chemtronics
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CEO of Pearl Abyss
Heo Jin-young
- Heo Jin-young is the CEO of Pearl Abyss. He is currently focusing the company’s resources on the launch of a major new game. Born on April 11, 1971, Heo graduated from Korea University with a degree in Physics and earned a master’s degree in Physics from the same university’s graduate school. He completed his military service as an industrial technical personnel at OnNet (now Webzen OnNet). Heo held various positions, including Head of Community at SK Communications and Head of Publishing at OnNet, before serving as Head of Game Services at Daum Communications. He later joined Pearl Abyss, where he served as Chief Operating Officer (COO) before being appointed CEO in 2022. He is currently focused on the Chinese release of *Black Desert* (Chinese version), scheduled for the fourth quarter of 2024. #HeoJinyoung #PearlAbyss #BlackDesert #gameindustry #CEO #KoreaUniversity #gaming #COO #gamedevelopment #Chinesemarket #gamepublishing
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CEO of Pearl Abyss
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Chairman of Foosung
Kim Keun-soo
- Kim Keun-soo is the founder and chairman of the Foosung Group and also serves as the chairman of Firstec. He was born on September 15, 1948, as the second son of Kim Young-joo, former honorary chairman of Korea Flange Industrial (now Korea Movex), and Chung Hee-young, the younger sister of Chung Ju-yung, former honorary chairman of the Hyundai Group. Kim graduated with a degree in Business Administration from Kyung Hee University and later completed his MBA at California State University in the United States. He began his career at Hyundai Construction. In 1980, he acquired Korea Refractories and, in 1983, purchased Ulsan Chemical, marking his independent path after separating from Hyundai Group. He expanded his business into sectors with high entry barriers, such as refrigerants and specialty gases for semiconductors. In anticipation of the electric vehicle market's growth, he also entered the electrolyte business for secondary batteries, achieving diversification. The group name "Foosung" was derived from his personal pen name. #KimKeunsoo #FoosungGroup #Firstec #electricvehicles #semiconductor #HyundaiGroup #businessdiversification #refrigerants #specialtygases #secondarybatteries
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Chairman of Foosung
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President of Dongseo University
Chang Je-kuk
- Chang Je-kuk is the President of Dongseo University. He has been in office since 2011, serving four consecutive terms. His current term began on March 1, 2023, and will continue until the end of February 2027, spanning four years. His father, Chang Seong-man, was the founder of Dongseo University and a former National Assembly Speaker. His mother, Park Dong-sun, is the former President of Dongseo University and currently serves as the chair of the university's board of directors. Born on August 12, 1964, Chang Je-kuk majored in Political Science at George Washington University in the United States, where he also earned a master's degree in Political Science from the university's graduate school. He obtained a Doctorate in Law from Syracuse University and a Doctorate in Political Science from Keio University in Japan. He is licensed to practice law in the United States. After spending over ten years as a special advisor and auditor for companies in Japan and the United States, he joined Dongseo University in 2003 as a professor in the Department of International Relations, which was founded by his father. At the university, he has served as the Chair of the International Cooperation Committee and the Director of the Japan Research Center, and became the Vice President in 2007. He has been the President since 2011, leading the university for over a decade. Externally, he has also held roles such as a policy advisor for the Ministry of Foreign Affairs and Trade and co-chair of the Special Committee for the 2030 Busan Expo Bid. He has served as President of the Korea Association of Private Universities and Chairman of the Korean Council for University Education. With Dongseo University joining the ranks of the Glocal University 30 in 2024, there is growing interest in whether Chang Je-kuk will solidify his reputation as a successful 'ownership model.' #ChangJeKuk #DongseoUniversity #UniversityPresident #PoliticalScience #InternationalRelations #GlocalUniversity30 #KoreanEducation #2030BusanExpo #KoreanPrivateUniversities #EducationLeadership
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President of Dongseo University
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CEO of SGI Seoul Guarantee
Lee Myung-Soon
- Lee Myung-soon is the CEO of SGI Seoul Guarantee. She is focusing on performance improvement for a successful IPO. She was born on July 19, 1968, in Uiryeong, Gyeongnam. She graduated from Daeryun High School in Daegu and Seoul National University with a degree in Economics. In 1992, she entered public service through the 36th Administrative Examination. She has served as the Director of Structural Improvement Policies at the Financial Services Commission and as a Standing Commissioner at the Korea Securities Depository. She worked as the Senior Deputy Commissioner at the Financial Supervisory Service. Lee Myung-soon spent most of her career at the Financial Services Commission and participated in the privatization of Woori Bank during her time as Director of Structural Improvement Policies, helping with the recovery of public funds.
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CEO of SGI Seoul Guarantee
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Lotte Healthcare CEO
Woo Woong-jo
- Woo Woong-jo is the CEO of Lotte Healthcare. Lotte Healthcare was established in April 2022 as a wholly-owned subsidiary of Lotte Corporation. He was born in 1974. He graduated from Boston University with a degree in Computer Engineering. He led healthcare businesses at LG Electronics, SK Telecom, and Samsung Electronics. Since 2023, he has been overseeing the healthcare business that Lotte Corporation is nurturing as a future growth engine.
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Lotte Healthcare CEO
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Chairman of Booyoung Group
Lee Joong-keun
- Lee Joong-keun is the chairman of Booyoung Group and a self-made entrepreneur who grew the company through its rental housing business. Born on January 11, 1941, in Suncheon, Jeollanam-do, he was the third of six siblings. After graduating from Seoul Sangji High School, Lee entered the Department of Political Science and Diplomacy at Korea University. However, due to financial difficulties, he dropped out after completing his third year. He founded and listed Woorim Construction Industry, but the company went bankrupt due to insolvency. Lee later established Samjin Engineering, which provided a foundation for success in the rental apartment business. He then changed the company’s name to Booyoung. Booyoung’s housing and overseas business sectors were physically separated, leading to the establishment of Booyoung Housing. Lee also founded Booyoung CC, an operator of golf courses, and Booyoung Environmental Industry. He acquired the Muju Deogyusan Resort from Korea Electric Cable Company and expanded into the leisure business. Lee solidified his position in the construction industry with his rental housing business and managed to overcome the financial crisis through stable business operations. He holds 90-100% of the shares in Booyoung Group's holding company, Booyoung, and major affiliates, ensuring strong control. After stepping down as CEO of an affiliate due to embezzlement and breach of trust allegations, he was reinstated in 2023 through a special pardon on Liberation Day and returned to management. Lee pursues stable and solid management. #LeeJoongkeun #BooyoungGroup #RentalHousing #ConstructionIndustry #SamjinEngineering #GolfCourses #LeisureBusiness #FinancialCrisis #SpecialPardon #BusinessManagement
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Chairman of Booyoung Group
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CEO of T&L
Choi Yoon-so
- Choi Yoon-so is the CEO of T&L and also serves as the president of subsidiaries such as T AND L (JIAXING) CO., LTD and JIASHAN TAILI TRADING CO., LTD. In China, "president" refers to the highest-ranking individual within the board of directors. Since "director" in Chinese translates to "board member," the title "president" indicates the CEO or highest-ranking executive. He is focused on expanding the company's global distribution network. Choi was born on February 1, 1959. He graduated from Sungkyunkwan University with a degree in Textile Engineering and earned both a master’s and a doctorate from Tokyo Institute of Technology in Japan. After working at RIKEN, a research institution under the Japanese Ministry of Education, Culture, Sports, Science and Technology (formerly the Science and Technology Agency), he joined the Central Research Institute of Dong Sung Chemical (now Dong Sung Chemical) as a researcher in 1992. Following the IMF crisis in 1997, Choi left Dong Sung Chemical and founded T&L in 1998, becoming its CEO. He is recognized for developing Korea’s first hydrocolloid dressing. Starting with orthopedic fixation devices, he transitioned the company’s focus to wound care products, growing T&L into a company with annual sales surpassing KRW 100 billion (US$ 72.1 million). #ChoiYoonso #T&L #hydrocolloid #woundcare #orthopedicdevices #CEO #globaldistribution #TANDLJiaxing #JiashanTailiTrading #TextileEngineering #TokyoInstituteofTechnology #DongSungChemical #businessleadership #Koreanentrepreneur #medicalproducts
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CEO of T&L
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CEO of Kumho Tire
Jung Il-taik
- Jung Il-taik is the President and CEO of Kumho Tire. He assumed leadership during a period of continued annual losses for the company and is now dedicated to fully restoring its financial health. Born on June 11, 1964, Jung graduated from Gwangju Jeil High School and went on to study chemical engineering at Chonnam National University, where he also earned a master's degree in polymer engineering. Jung began his career at Kumho Tire in 1988. Throughout his tenure, he has predominantly worked in research and development, having held positions such as head of the Quality and R&D divisions. Aside from a brief period in charge of the Sales division, his career has been focused on technical and developmental roles. In 2021, Jung was promoted to president and appointed as CEO. He also serves as the chairman of the Korea Tire Manufacturers Association. Jung is known for his proactive communication with employees. #JungIltaik #KumhoTire #CEOKumhoTire #tireindustry #KoreaTireManufacturersAssociation #businessleadership #researchanddevelopment #Koreanbusiness #tiretechnology #corporateleadership
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CEO of Kumho Tire
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Vice Chairman of Korea Petroleum Industries
Kang Seung-mo
- Kang Seung-mo is the Vice Chairman and CEO of Korea Petroleum Industries. He is the third-generation owner of the company; his grandfather, the late Chairman Kang Gwan-seok, was the founder, and his father is Chairman Kang Bong-gu. Kang Seung-mo was born on August 21, 1971, in Seoul. He graduated from Korea University with a degree in Business Administration. He joined Korea Petroleum Industries in 1995, became President in 2011, and was promoted to Vice Chairman and CEO in 2014. Having inherited the company, which is the leading industrial asphalt producer in Korea, Kang has successfully maintained its stability. At the same time, he has focused on research and development with a focus on "eco-friendliness," earning praise for improving the company’s operations. He is heavily investing in and expanding the market for new growth engines, such as asphalt concrete track systems and recycled organic solvents. #KangSeungmo #KoreaPetroleumIndustries #AsphaltIndustry #EcoFriendly #ResearchAndDevelopment #NewGrowthEngines #RecycledSolvents #AsphaltConcrete #KoreanBusiness #ThirdGenerationOwner
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Vice Chairman of Korea Petroleum Industries
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Vice Chairman of Lotte Food Division
Lee Young-gu
- Lee Young-gu is the Vice Chairman and Chief Executive Officer (CEO) of Lotte Group Food Division HQ. He also serves as the CEO of Lotte Wellfood. He is focused on revitalizing the profitability of Lotte Group's food subsidiaries, whose growth has stagnated, and is seeking new growth engines. He was born on July 20, 1962. He graduated from Seoul Joongdae High School and Soongsil University with a degree in Industrial Engineering. In 1987, he joined Lotte Chilsung Beverage. After working at Lotte Aluminum and the Management Improvement Office of Lotte Group's Policy Headquarters, he returned to Lotte Chilsung Beverage, where he oversaw sales and marketing in the beverage division. He was appointed the head of Lotte Chilsung Beverage's Beverage Business Group (BG) before being promoted to the company's integrated CEO. He also served as the head of Lotte Group's Food Business Unit (BU) and CEO of Lotte Confectionery. In 2021, after a corporate reorganization, he was promoted to the CEO of Lotte Group Food Division HQ. In Lotte's regular executive reshuffle in 2024, he was promoted to Vice Chairman of Lotte Group Food Division HQ. Having worked at Lotte for more than 30 years, he is a "Lotte man" with extensive field experience. #LotteGroup #LotteWellfood #LeeYounggu #FoodIndustry #ExecutivePromotion #LotteChilsung #LotteConfectionery #CorporateRestructuring #BusinessGrowth #Korea
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Vice Chairman of Lotte Food Division
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CEO of Emart
Han Chae-yang
- Han Chae-yang is the CEO of Emart and also holds the position of CEO at Emart24. He was born in August 1965 in Seoul. He graduated from Mapo High School in Seoul and went on to earn a degree in Business Administration from Yonsei University. Upon graduation, he began his career as a company employee. After working at SK Telecom, he joined Shinsegae in 2001 as a manager in the Corporate Support Office. After the outbreak of the COVID-19 pandemic, he was appointed CEO of Chosun Hotels & Resorts, facing a challenging situation as a leader. However, he focused on improving the company’s profit structure through internal restructuring, turning Chosun Hotels & Resorts profitable after 53 months. In 2023, he was appointed CEO of Emart. Simultaneously, he took on the roles of CEO at Emart Everyday and Emart24. It was the first time that Shinsegae Group entrusted the leadership of three offline companies to one person. He is known for his meticulousness, personally overseeing new products to be introduced to customers every month. #HanChaeYang #Emart #CEO #Emart24 #ShinsegaeGroup #retailbusiness #ChosunHotels #SKTelecom #COVID19 #businessleadership
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CEO of Emart
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Chairman of BioPlus
Jung Hyun-kyu
- Jung Hyun-kyu is the Chairman and CEO of BioPlus and also serves as an adjunct professor at Chungnam National University. He was born on November 15, 1957, in Gwangju. Jung graduated from Hongik University High School and majored in Chinese and International Economics at Hankuk University of Foreign Studies. He later earned a master's and Ph.D. in Environmental Engineering from Kwangwoon University. He began his career at LG Electronics in the trade department. Jung has previously served as CEO of Top Trading and EcoBio. Since 2013, he has been the CEO of BioPlus. As an adjunct professor at Chungnam National University, he is committed to growing BioPlus into a world-class global BMC (Bio-Beauty, Medical, Cosmetic) company. #JungHyunKyu #BioPlus #BMC #ChungnamNationalUniversity #LGElectronics #TopTrading #EcoBio #biotechnology #businessleadership #globalexpansion #environmentalengineering
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Chairman of BioPlus
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CEO of LG CNS
Hyun Shin-gyoon
- Hyun Shin-gyoon is the Vice President and CEO of LG CNS. He was born on February 25, 1965, in Seoul. He graduated from Seoul High School and earned a degree in Computational Statistics from Seoul National University. He also obtained a master’s degree in Statistics from Seoul National University and completed a Ph.D. program in Statistics at the University of Wisconsin. Prior to joining LG, he built his career primarily at foreign consulting firms such as Accenture, US West Communications, the United Nations (UN), and A.T. Kearney. In 2010, he joined LG Display, marking his first involvement with the LG Group. After moving to LG CNS in 2017, he held positions including Chief Technology Officer (CTO) and Head of the D&A Business Division. In 2023, he was appointed Vice President and CEO of LG CNS. He is an IT technology expert with extensive experience in consulting on IT process innovation for various companies. He is currently leading efforts to strengthen LG CNS’s digital transformation (DX) capabilities, with global competitiveness and the company's initial public offering (IPO) identified as key challenges. #HyunShinGyoon #LGCNS #digitaltransformation #DX #ITconsulting #globalcompetitiveness #LGGroup #IPO #Accenture #ATKearney #technologyleadership
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CEO of LG CNS
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Chairman of KET
Lee Chang-won
- Lee Chang-won is the Chairman and Co-CEO of Korea Electric Terminal (KET), leading the company alongside his son, President Lee Won-joon. He was born in Seoul on August 23, 1936. Lee graduated from Seoul High School and earned a degree in Law from Seoul National University. From 1961 to 1972, he worked as a journalist for Kyunghyang Shinmun and JoongAng Ilbo. In 1973, he founded Korea Electric Terminal. After serving as CEO, he became Chairman in 2012. He also serves as Honorary Chairman of the Korea Connector Technology Industry Association and Director of the Korea Electronics Industries Cooperative Association. Korea Electric Terminal supplies automotive connectors and electronic modules to Hyundai Motor and Kia Motors, commanding over 50% of the market share in the domestic automotive connector parts market. Driven by the growth of the electric vehicle market, KET reached KRW 1 trillion (US$ 721.2 million) in revenue in 2022. Recently, the company has seen rapid sales growth in the U.S., securing large-scale orders for its Inter-Connect Board (ICB) products from North American automakers and battery manufacturers. #LeeChangwon #KET #KoreaElectricTerminal #AutomotiveConnectors #ElectricVehicles #Hyundai #Kia #USMarket #ICB #EVGrowth #ConnectorIndustry
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Chairman of KET
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CEO of Chunbo
Lee Sang-ryul
- Lee Sang-ryul is the CEO of Chunbo and leads the company alongside his spouse, Co-CEO Seo Ja-won. In addition to Chunbo, he serves as CEO of its affiliates Chunbo Precision, Chunbo BLS, and Chunbo Recycling. He also holds director positions at affiliated companies like Jungwon Materials, Ace Chemical, Chunbo Advanced Materials, and Chunbo BLA, and serves as an auditor at OAE. Lee also oversees Chunbo’s research and development as head of the company’s research center. He focuses on expanding production capacity for electrolytes and electrolyte additives. Born on October 21, 1961, in Yeongam County, Jeollanam-do, Lee attended Seho-buk Elementary School (now Jangcheon Elementary) and graduated from Yeongam Seho Middle School. He then studied chemical engineering at Hanyang University and earned a master’s degree in chemical engineering from Hanyang’s Graduate School of Industrial Studies in 1993. Lee began his career as a researcher at Dongyang Chemical (now OCI) before founding Chunbo Precision (now Chunbo) in 1997, launching a display materials manufacturing business. In 2007, Chunbo Precision transitioned into a corporation under the name Chunbo. Together with his wife Seo Ja-won, who was working in quality control at a textile company at the time, Lee expanded the business into new areas, including pharmaceutical intermediates, semiconductor materials, and electric vehicle battery materials, ultimately growing Chunbo into a mid-sized company with annual revenues of around KRW 300 billion (US$216.4 million). Lee is credited with commercializing lithium salt electrolyte (LiFSI) for secondary batteries, a world-first achievement. He is known for his strong attachment to his hometown. Lee donated KRW 100 million (US$72,100) to his hometown of Seongjae Village in Yeongam County, Jeollanam-do. #LeeSangryul #Chunbo #LiFSI #batterytechnology #chemicalengineering #electrolyteproduction #semiconductormaterials #pharmaceuticalintermediates #entrepreneurship #corporateleadership
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CEO of Chunbo
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Chariman of KCC E&C
Chung Mong-yeol
- Chung Mong-yeol is the Chairman and CEO of KCC E&C. He is attempting to step out of the shadow of KCC, the group's de facto holding company, and establish independence. He is focusing on restructuring the business model to improve the profitability of KCC E&C. Chung has been serving as co-CEO alongside a professional manager. As of 2024, he has established a co-CEO system with Sim Kwang-joo, a seasoned veteran in the construction industry. He was born on January 11, 1964, as the third son of Chung Sang-young, Honorary Chairman of KCC. He graduated from Fairleigh Dickinson University (FDU) in the United States with a degree in Computer Science and later earned a Master's in Management Information Systems (MIS) from Dongguk University Graduate School. Chung joined Koryo Chemical, the predecessor of KCC, and climbed the ranks from inside director to president and CEO, eventually becoming the chairman of KCC E&C. He became the second-largest shareholder of KCC E&C after receiving shares from his father, Chung Sang-young. Chung is known for his quiet and reserved management style, rarely making public appearances. #KCC #ChungMongyeol #KCCEandC #KCCChairman #KoreanBusiness #MIS #KCCGroup #FairleighDickinson #ConstructionIndustry #ChungSangyoung
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Chariman of KCC E&C
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Chairman of Hojeon Limited
Park Young-chul
- Park Young-chul is the Chairman and CEO of Hojeon Limited, a company specializing in global apparel OEM (Original Equipment Manufacturer) production. He is the founder of Hojeon Limited, which operates in the global apparel OEM business. Park Young-chul was born on July 20, 1943, in Daejeon. He graduated from Daejeon High School and majored in Food Engineering at Dongguk University. After graduation, he initially worked in the food industry, leveraging his major at Korea Suntory, a beverage company established in partnership with a Japanese firm. However, after an unsuccessful attempt to start his own food business, Park shifted industries. He joined Daeyong Trading Company, a business founded by his late older brother, Park Yong-dae, where he learned about the apparel industry. In 1985, he founded Hojeon Limited. #ParkYoungchul #HojeonLimited #globalappareloem #founder #Koreanbusiness #DonggukUniversity #Daejeon #apparelindustry #Koreanentrepreneur #textile
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Chairman of Hojeon Limited
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President of Sookmyung Women’s University
Moon Si-yeun
- Moon Si-yeun is the President of Sookmyung Women’s University, having taken office on September 2, 2024, for a four-year term. She has garnered public attention by pledging to conclude the investigation into the plagiarism allegations surrounding First Lady Kim Keon-hee's master’s thesis. Born on September 11, 1965, in Seoul, Moon attended Eunkwang Girls' High School before graduating from Sookmyung Women’s University with a degree in French Language and Literature. She earned her master’s degree in Theatre Studies from Nouvelle Sorbonne University (Paris 3), where she also received her PhD in Literature. An expert in French literature, particularly French theatre, Moon returned to Korea in 1997 and joined her alma mater as a professor in the French Language and Literature Department at Sookmyung Women’s University. Moon has been actively involved in academic circles, serving as a board member in various organizations such as the Korean Association of Women’s Studies, the Korean Society of French Language and Literature, the French Cultural and Artistic Society, and the French Society. She has also served as president of the World Association for Hallyu Studies. Her contributions to education and culture have been recognized with France’s Ordre des Palmes Académiques and Ordre des Arts et des Lettres. In 2026, she plans to announce the "Third Founding" of Sookmyung Women’s University, in celebration of its 120th anniversary, and aims to present a new development model for the 21st-century global women’s university. #MoonSiyeun #SookmyungWomensUniversity #Frenchliterature #academicleadership #globaluniversity #KimKeonhee #plagiarisminvestigation #Frenchtheatre #womeneducation #Koreanacademia
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President of Sookmyung Women’s University
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CEO of SBI Savings Bank
Kim Moon-seok
- Kim Moon-seok is the CEO and President of SBI Savings Bank. Amid challenging management conditions in the savings bank industry, he has focused on strengthening internal management, striving to improve SBI Savings Bank's profitability and financial soundness. He was born on January 10, 1965. He graduated from Daeseong High School and earned a degree in Political Science and Diplomacy from Inha University. Before joining SBI Savings Bank in August 2010 as the Director of the Management Support Division, he worked at Samsung Card, Samsung Group's Restructuring Headquarters, and Doosan Capital. At SBI Savings Bank, he held positions such as Senior Managing Director of the Management Strategy Division, Executive Director, and Vice President. He became the first CEO after SBI Savings Bank transitioned to a sole CEO system in 2015, a shift that took place after seven years. #KimMoonseok #SBISavingsBank #CEO #bankingindustry #profitability #financialsoundness #InhaUniversity #DaeseongHighSchool #DoosanCapital #SamsungCard
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CEO of SBI Savings Bank
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CEO of HD Hyundai Heavy Industries
Lee Sang-kyun
- Lee Sang-kyun is the Co-CEO and President of HD Hyundai Heavy Industries. He focuses on stabilizing the production sites of HD Hyundai Heavy Industries while also securing future orders by capitalizing on the shipping industry's short-term boom, which has led to an increase in orders. Lee places a strong emphasis on safety at shipyard production sites. He was born on January 28, 1961, in Jangheung, South Jeolla Province. After graduating from Jangheung High School and majoring in Naval Architecture at Inha University, he joined Hyundai Heavy Industries. He worked in production management before moving to Hyundai Samho Heavy Industries. At Hyundai Samho Heavy Industries, he became CEO for the first time in his career and later returned to Hyundai Heavy Industries to serve as CEO of the Shipbuilding and Offshore Business. In October 2021, he was appointed CEO of Hyundai Heavy Industries. Lee is considered a field expert with extensive experience in the production sector. His motto is "Do your best in the task at hand." He describes himself as someone with a positive mindset and a strong sense of curiosity. #LeeSangkyun #HDHyundaiHeavyIndustries #CEO #shipbuildingindustry #productionmanagement #shipyardsafety #leadership #fieldexpert #positivemindset #futureorders
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CEO of HD Hyundai Heavy Industries
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Chairman of Sungdo ENG
Seo In-soo
- Seo In-soo is the Chairman of the Board at Sungdo ENG. He also serves as the Co-CEO of STI alongside CEO Lee Woo-seok. In addition, he holds the position of CEO at Sungdo Ipdeok Jisan (Daekyung) Co., Ltd., and serves as an inside director at Sungdo L&D. Seo was born on March 15, 1955, in Seoul. He graduated from Chung-Ang University with a degree in Mechanical Engineering. After graduation, he worked at Samsung Engineering before founding Sungdo Engineering, the predecessor of Sungdo ENG, in 1987. In 1997, a decade after founding the company, Seo spun off the semiconductor and display equipment division of Sungdo ENG to establish STI. In 2000, he successfully listed Sungdo ENG on the KOSDAQ and developed it into a robust company that supplies to major corporations such as Samsung Electronics and SK Hynix. Seo is recognized for elevating the level of domestic display technology with solid technical expertise. #SeoInsoo #SungdoENG #STI #semiconductorequipment #displaytechnology #SouthKorea #SamsungElectronics #SKHynix #KOSDAQ #engineeringleadership
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Chairman of Sungdo ENG
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CEO of Woori Investment Securities
Nam Ki-cheon
- Nam Ki-cheon is the CEO of Woori Investment Securities. He is laying the foundation for collaboration and synergy among affiliates of the Woori Financial Group. Nam is working on diversifying the company’s product offerings, which have been primarily focused on bonds, by expanding into equities and global solutions, thereby building a balanced business portfolio. He has set ambitious goals for Woori Investment Securities, aiming to increase its capital to KRW 3 trillion (US$ 2.16 billion) within five years and further expand it to KRW 4 trillion (US$ 2.88 billion) within 10 years to secure a license as a major investment bank. Nam was born on April 20, 1964, in Hadong, South Gyeongsang Province. He graduated from Daedong High School in Busan and earned a degree in business administration from Seoul National University. He also completed a master’s degree in business administration from Seoul National University Graduate School and later an MBA from the University of California, Berkeley. Nam began his career at Daewoo Securities, where he held positions such as head of the London branch, head of proprietary asset management, and head of alternative investments. He then moved to Multi Asset Management (formerly KDB Asset Management), a subsidiary of Mirae Asset, where he served as CEO. At the invitation of Yim Jong-yong, chairman of Woori Financial Group, Nam took on the role of CEO of Woori Asset Management. He also served as CEO of Woori Investment & Securities after the merger of Woori Comprehensive Finance and Force Securities, where he became the inaugural CEO. During his time at Daewoo Securities, Nam led the listing of Korea’s first Special Purpose Acquisition Company (SPAC), a company established for the purpose of acquiring unlisted firms. With over 20 years of experience in securities and asset management, Nam is known as an expert in alternative investments and is bold in seizing investment opportunities when they arise. #NamKiCheon #WooriInvestmentSecurities #WooriFinancialGroup #alternativeinvestment #SPAC #investmentbanking #capitalgrowth #securitiesindustry #assetmanagement #globalinvestment #boldinvestment
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CEO of Woori Investment Securities
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Chairman of Taeyoung Group
Yoon Suk-mynn
- Yoon Suk-mynn is the Chairman of Taeyoung Group. He is currently striving to normalize operations as the group’s key subsidiary, Taeyoung E&C, has entered a corporate restructuring process. Yoon was born on October 9, 1964, in Seoul, as the only son of Honorary Chairman Yoon Se-young. He graduated from Whimoon High School in Seoul and earned a degree in chemical engineering from Seoul National University. He also received an MBA from Harvard Business School. Yoon joined Taeyoung E&C, where he rose through the ranks to become Director of Planning and eventually the CEO. During his nearly 30-year tenure at Taeyoung E&C, he helped the company rise to the 13th position in the Construction Capacity Evaluation ranking. He also served as an inside director at SBS, SBS Contents Hub, and SBS Plus. In 2019, Yoon stepped down as CEO of Taeyoung E&C when he became Chairman of Taeyoung Group. He has faced ongoing demands from the SBS labor union to separate the management and ownership of the broadcasting company. Yoon is known for being humble, diligent, and meticulous in self-management. #YoonSukmynn #TaeyoungGroup #Chairman #Taeyoung #CorporateRestructuring #SBS #BusinessLeadership #KoreanConglomerate #ChemicalEngineering #HarvardMBA
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Chairman of Taeyoung Group
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CEO of CLIO
Han Hyun-ok
- Han Hyun-ok is the CEO of CLIO, a company specializing in color cosmetics. She also serves as the CEO of CLIO's subsidiaries, including CLIO Japan (formerly Doowon) and Kiwami. Han Hyun-ok is focused on expanding into the global market, particularly by strengthening CLIO's presence in Japan through the acquisition of Japanese cosmetics distributors and import agencies. She was born on April 14, 1960. She graduated from Yonsei University with a degree in Sociology and later earned a master's degree in Sociology from the same university. After working as a researcher at the Korea Advanced Institute of Science and Technology (KAIST), she gained experience at a law firm and a research institute. When the last company she worked for closed, Han Hyun-ok decided to pursue the cosmetics business that the company had been considering as part of its business diversification strategy, leading her to establish CLIO. Since its founding, CLIO has consistently been profitable. The company gained significant popularity in China, known as the "Gong Hyo-jin Cosmetics," and eventually listed on the KOSDAQ. With her extensive research experience, Han Hyun-ok is skilled at understanding market demand. #HanHyunok #CLIO #cosmetics #Koreanbusiness #KOSDAQ #globalexpansion #Japanmarket #businessleadership #marketstrategy #colorcosmetics
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CEO of CLIO
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Chairman of Poongsan and FKI
Ryu Jin
- Ryu Jin is the Chairman of Poongsan Group and the Chairman of the Federation of Korean Industries (FKI). He also serves as the Chairman and CEO of Poongsan, a major subsidiary of Poongsan Group, as well as the Chairman and CEO of Poongsan Holdings, the group's holding company, and the Chairman of Poongsan Special Metal. He has taken the helm of Poongsan Group following in the footsteps of his father, Ryu Chan-woo, the founder of the company. He was born on March 5, 1958, in Hahoe Village, Andong, Gyeongbuk, as the youngest son of Ryu Chan-woo. Ryu Jin graduated from Seoul National University with a degree in English Literature and pursued a Master's degree in Business Administration at Dartmouth College in the United States. After joining Poongsan Metal Corporation, he spent more than a decade learning management skills before being appointed as the President and CEO of Poongsan. He became the Chairman of Poongsan in 2000, a year after his father's passing. Ryu Jin is credited with elevating Poongsan's two core businesses, copper processing and defense, to a world-class level. Although he avoids interviews and has an image as a 'reclusive businessman,' he is well-connected in political and business circles, continuing the networks built by his family, earning him the reputation of a 'mover and shaker.' He is known for his humble and practical nature, often traveling alone on business trips. With a deep knowledge of wine and impeccable manners, he is referred to as the 'gentleman of the business world.' #RyuJin #PoongsanGroup #Chairman #KoreanBusiness #FKI #BusinessLeadership #KoreanEconomy #CorporateLeadership #DefenseIndustry #CopperProcessing
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Chairman of Poongsan and FKI
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Chief Prosecutor of CIO
Oh Dong-woon
- Oh Dong-woon is the Chief Prosecutor of the Corruption Investigation Office for High-ranking Officials (CIO). He was born in 1969 in Sancheong-gun, Gyeongsangnam-do. He graduated from Nakdong High School in Busan and Seoul National University, where he also obtained a master's degree in law from the same university's graduate school. Oh Dong-woon passed the 37th National Judicial Examination and began his legal career as a preliminary judge at the Busan District Court. He served as a presiding judge at the Ulsan District Court and the Seongnam Branch of the Suwon District Court before stepping down from the bench in 2017. Afterward, he practiced law, serving as a National Tax Review Committee member at the Seongdong Tax Office and as a tax law advisor to the Incheon Regional Tax Office. Since May 2024, he has been serving as the 2nd Chief Prosecutor of the Corruption Investigation Office for High-ranking Officials (CIO). #OhDongwoon #CIO #CorruptionInvestigation #Koreanlaw #ChiefProsecutor #Koreanjudiciary #legalcareer #Koreangovernment #anticorruption #publicofficials
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Chief Prosecutor of CIO
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CEO of Seojin System
Jeon Dong-kyu
- Jeon Dong-kyu is the CEO and President of Seojin System. He is focused on diversifying the company's business areas. Jeon was born on April 27, 1970. After graduating from Hanyoung High School in Seoul, he worked as a mold engineer at Sunjin Semiconductor. In 1996, he founded Seojin Tech (now Seojin System), a semiconductor parts mold manufacturing company, in Yeongdeungpo-gu, Seoul. He later converted the company into a corporation and became the CEO of Seojin System. Jeon is known for creating a "high school graduate success story." After graduating from high school, he started his business at the age of 25. He diversified his initial mold manufacturing business into semiconductor equipment parts and energy storage system components. Through these efforts, he has grown Seojin System into a mid-sized company with annual sales of approximately KRW 700 billion (approximately USD 505 million). #JeonDongkyu #SeojinSystem #businessdiversification #semiconductorequipment #energystoragesystems #entrepreneurship #moldmanufacturing #Koreanbusiness #mid-sizedcompany #highschoolgraduate
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CEO of Seojin System
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CEO of Samsung Bioepis
Christopher Hansung Ko
- Christopher Hansung Ko is the President and CEO of Samsung Bioepis. As the founding CEO of Samsung Bioepis, he oversees the research and development of biosimilars (biopharmaceutical generics). With Samsung BioLogics acquiring full ownership of Samsung Bioepis, he is exploring new ventures, including new drug development. Born on April 20, 1963, in Busan, according to the lunar calendar, he immigrated to the United States during his middle school years. He holds American citizenship and is known by the name 'Christopher Ko' in the United States. He graduated from Prospect High School in California and majored in Biochemistry at the University of California, Berkeley. He earned his Master’s and Doctorate degrees in Genetic Engineering from Northwestern University. He began his career at the biotech venture company Dyax. He has held positions as the Head of BioHealth Lab at Samsung Advanced Institute of Technology and as Executive Vice President in the New Business Development Team at Samsung Electronics. He was appointed as CEO when Samsung Bioepis was established. He has been developing biosimilars to target the global markets, including Europe and the United States. Alongside John Rim, President and CEO of Samsung BioLogics, he is a key figure responsible for Samsung Group’s bio-business. #SamsungBioepis #biosimilars #ChristopherKo #biotech #SamsungBioLogics #geneticengineering #biopharma #globalmarkets #drugdevelopment #biohealth
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CEO of Samsung Bioepis
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CEO of Pan Ocean
Ahn Joong-ho
- Ahn Joong-ho is the CEO of Pan Ocean. He leads the company alongside Kim Hong-kuk, Chairman of the Harim Group, under a co-CEO structure. As the head of South Korea's largest bulk carrier company, Pan Ocean, he is diversifying the fleet from a focus on dry bulk shipping to include LNG carriers and container ships. To diversify Pan Ocean's business portfolio, which is sensitive to fluctuations in the shipping market, he is also expanding the grain trading business. He was born on January 13, 1962, in Ulsan. Ahn graduated from Hakseong High School in Ulsan and earned a degree in English Language and Literature from Pusan National University. He has spent his entire career at Pan Ocean (formerly known as STX Pan Ocean), rising through the ranks to become CEO. During his time with STX Pan Ocean, he served as Head of Overseas Business, Head of the Pacific Sales Division, and Head of the Atlantic Sales Division. After serving as Executive Vice President and Vice President of Pan Ocean's Sales Division, he was appointed CEO in 2020. With over 30 years of experience in the shipping industry, Ahn is recognized as a "sales expert" with a global perspective. He consistently emphasizes to his employees the importance of maintaining a positive mindset and confidence. #AhnJoongho #PanOcean #shippingindustry #bulkcargo #LNGcarriers #containershipping #graintrading #HarimGroup #globalbusiness #leadership
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CEO of Pan Ocean
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CEO of SGC Energy
Lee Woo-sung
- Lee Woo-sung is the CEO of SGC Energy. He leads the company as a co-CEO alongside Park Joon-young. He also serves as the co-CEO of SGC E&C and the CEO of SGC Partners. Born on November 17, 1978, Lee Woo-sung is the grandson of the late Lee Hoe-rim, the founder of SGC Energy. His father, Lee Bok-young, is the Chairman of SGC E&C and the second son of the late Lee Hoe-rim. Lee Woo-sung graduated with a degree in Business Administration from Carnegie Mellon University in the United States and earned an MBA from the Wharton School of the University of Pennsylvania. In November 2022, he was promoted to CEO of SGC Energy, marking the beginning of his active involvement in the third generation of family leadership. He is focused on ESG management, emphasizing eco-friendly energy initiatives. #LeeWoosung #SGCEnergy #SGCEandC #SGCPartners #WhartonSchool #CarnegieMellon #ESGmanagement #cleanenergy #Koreanbusinessleaders #thirdgenerationleadership
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CEO of SGC Energy
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Chairman of DI Corporation
Park Won-ho
- Park Won-ho is the Chairman and CEO of DI Corporation. He is the eldest son of Park Gi-eok, the founder of Dongil Trading (now DI Corporation), and the father of singer Psy (Park Jae-sang). He was born on January 2, 1950, in Seoul. Park graduated from Kyunggi High School in Seoul, then earned a degree in Commerce and later an MBA from Yonsei University. He joined Samsung Heavy Industries in 1976 and worked there until 1979 when he joined Dongil Trading (now DI Corporation), the company founded by his father, Chairman Park Gi-eok. Park held positions as Executive Director and Vice President before being appointed President and CEO of Dongil Trading in 1990. Dongil Trading entered the semiconductor business by merging with Dongil Semiconductor Equipment in 1989. In 1996, the company changed its name to DI Corporation. DI Corporation is a company that manufactures and sells semiconductor testing equipment. Its main products include Burn-in Systems and Burn-in Boards, with Burn-in Boards holding the top market share in South Korea. DI Corporation has consistently supplied semiconductor testing equipment to companies like Samsung Electronics and SK hynix. #ParkWonho #DICorporation #semiconductor #BurninSystem #BurninBoard #SamsungElectronics #SKHynix #semiconductortesting #ParkGieok #Psy
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Chairman of DI Corporation
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Chairman of the General Insurance Association of Korea
Lee Byung-rhae
- Lee Byung-rhae is the Chairman of the General Insurance Association of Korea. He faces the task of supporting the stable implementation of the electronic claims processing system for indemnity health insurance, as well as enhancing the management of non-covered medical services and improving product structures. He is committed to helping non-life insurance companies strengthen their product and service competitiveness and create new revenue streams by responding to rapid demographic changes such as aging and digital transformation, and by promoting overseas expansion. Lee Byung-rhae was born on May 5, 1964, in Seosan, Chungnam Province. He graduated from Daejeon High School and earned a degree in Trade from Seoul National University. He also holds a Master's degree in Public Administration from Seoul National University Graduate School of Public Administration and a Ph.D. in Economics from the University of Missouri, USA. He passed the 32nd Administrative Examination and worked at the Ministry of Finance in various roles, including the International Financial Institutions Division of the International Finance Bureau, the Capital Market Division of the Securities Bureau, and the Vice Minister’s Office. After studying in the United States, he continued his career at the Financial Supervisory Commission. At the Financial Services Commission, he served as the Insurance Division Director, Financial Policy Division Director, Advisor to the Governor of the Central Bank of Mongolia, and Spokesperson. He was also the Director of the Financial Intelligence Unit and later appointed as the CEO of the Korea Securities Depository. After serving as the Vice President of External Affairs at the Korea Institute of Certified Public Accountants, he was appointed as the 55th Chairman of the General Insurance Association of Korea in December 2023. He is a financial policy expert with nearly 30 years of experience working in financial policy-making institutions. #LeeByungrhae #GeneralInsuranceAssociation #financialpolicy #nonlifeinsurance #digitaltransformation #indemnityinsurance #productcompetitiveness #overseasexpansion #KoreaSecuritiesDepository #financialexpert
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Chairman of the General Insurance Association of Korea
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Chairman of Huons Global
Yoon Sung-tae
- Yoon Sung-tae is the Chairman of Huons Global. After stepping down as CEO of Huons Global in 2022, he took on the role of CEO at Huons Lab, one of the group's subsidiaries. In other subsidiaries, including Huons Global, he serves as an inside director or non-executive director. As the second-generation owner, Yoon Sung-tae is the son of the late Yoon Myung-yong, the founder of Huons. Yoon Sung-tae was born on July 13, 1964, in Asan, Chungcheongnam-do. He graduated from Inchang High School in Seoul and earned a bachelor's degree in Industrial Engineering from Hanyang University, followed by a master's degree in Project Management from Hanyang University's Graduate School of Engineering. After working at IBM Korea, he joined Kwangmyung Pharmaceutical, the predecessor of Huons, in 1992. In 1997, following the sudden passing of his father, he took over the family business and became CEO. In 2016, he became the CEO of Huons Global, the holding company, and in 2022, he was appointed Chairman of Huons Global. During his tenure, he grew the company from a business with KRW 6 billion (US$ 4.3 million) in revenue to a large healthcare group with revenue in the KRW 700 billion (US$ 504.7 million) range. Yoon is recognized as an expert in mergers and acquisitions (M&A) and emphasizes a management style focused on harmony among people. He has built the business around a "trinity" of pharmaceuticals, health functional foods, and aesthetics, directing the subsidiaries to grow based on mutual synergies. #YoonSungtae #HuonsGlobal #healthcare #pharmaceuticals #businessleadership #SouthKorea #M&A #HuonsLab #familybusiness #aesthetics
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Chairman of Huons Global
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CEO & Chairman of Wontech
Kim Jong-won
- Kim Jong-won is the Chairman and Co-CEO of Wontech. He leads the company alongside his son, CEO Kim Jeong-hyun. He is focused on strengthening Wontech's distribution network. Wontech is a company specializing in medical devices for skincare and beauty. He was born on April 6, 1952. After graduating from Seoul Gwangwoon Electronics Technical High School, he began his military service and served in the Vietnam War for five years. He graduated from Yeungnam University with a degree in Electronic Engineering and earned both a Master’s and a Ph.D. in Engineering from the same university. He later completed various programs, including Information and Communication courses and the Advanced Management Program at Seoul National University, Korea University, and KAIST (Korea Advanced Institute of Science and Technology). In 1999, he founded Won Technology (now Wontech) and became the Chairman and CEO. Since then, he has held positions such as Director of Korea Radiowave Ground Station, President of the Daejeon Athletics Federation, and CEO of Information Communication Newspaper. As of 2024, he is active as a Director of the Korea Medical Device Cooperative and Vice Chairman of the Daejeon Chamber of Commerce and Industry. He shifted the company’s main business focus from cancer treatment laser devices to medical devices for skincare and beauty, successfully growing Wontech into a company with annual sales exceeding KRW 100 billion (approximately USD 72.6 million). **Keywords:** #KimJongwon #Wontech #medicaldevices #skincare #beauty #businessleadership #electronicsengineering #SouthKorea #companygrowth #distributionnetwork
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CEO & Chairman of Wontech
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CEO & Chairman of LOT Vacuum
Oh Heung-shig
- Oh Heung-shig is the Chairman and CEO of LOT Vacuum. He founded LOT Vacuum, the only dry vacuum pump manufacturer in South Korea. Oh Heung-shig was born on April 7, 1962, in Sokcho, Gangwon Province. He attended Sokcho High School and graduated from the Department of Electronic Devices at Kyunggi Technical College, followed by a degree in Chemical Engineering from Suwon University. After working for the German vacuum pump company Oerlikon Leybold Vacuum Korea, he founded LOT Vacuum and acquired the dry vacuum pump business unit when the company decided to withdraw from that market. He then focused on technological development, achieving the first domestically produced dry vacuum pump in South Korea. As of 2024, LOT Vacuum is still recognized as the only South Korean company that competes in the dry vacuum pump market, where foreign companies dominate, based on its technological capabilities. In February 2023, Oh Heung-shig was appointed as the Chairman of the KOSDAQ Association for a two-year term. #OhHeungshig #LOTVacuum #dryvacuumpump #KOSDAQ #SouthKoreanindustry #vacuumtechnology #Sokcho #chemicalengineering #KOSDAQassociation #SouthKoreantechnology
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CEO & Chairman of LOT Vacuum
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CEO & Chairman of ASIA Holdings
Lee Hoon-beom
- Lee Hoon-beom is the Chairman and CEO of ASIA Holdings. He also serves as the Chairman of ASIA Paper, ASIA Cement, and Halla Cement. He was born on January 26, 1969, in Seoul as the grandson of the late Chairman Lee Dong-nyung, the founder of ASIA Holdings. Lee graduated from Sungkyunkwan University and later completed his graduate studies at New York University in the United States. After graduation, he worked as the CEO of ASIA Cement, a major subsidiary of the ASIA corporate group. In 2021, he was appointed Chairman and CEO of ASIA Holdings, where he oversees the management of the entire corporate group. Together with his younger brother, Vice Chairman Lee In-beom, he is leading the third generation of the family in managing the ASIA corporate group. Lee is recognized for achieving success in ESG (Environmental, Social, and Governance) management through shareholder-friendly and environmentally-friendly policies. #LeeHoonbeom #ASIAHoldings #ESGmanagement #ASIAGroup #LeeDongnyung #HallaCement #ASIAcement #shareholderfriendly #environment
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CEO & Chairman of ASIA Holdings
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President of Dong-A University
Lee Hae-woo
- Lee Hae-woo is the president of Dong-A University. He was first appointed in August 2020 and successfully secured a second term in 2024. His new term will run until July 31, 2028. Under the slogan "Creating Your History at Dong-A University," he has focused on developing differentiated educational capabilities. Born in 1963, Lee graduated from Gyeongju Munhwa High School and earned a bachelor's degree in metallurgical engineering from Dong-A University. He went on to obtain a master's degree in metallurgical engineering from Dong-A University and a Ph.D. in naval architecture and ocean engineering from Pusan National University. From 1992 to 2004, Lee served as a senior researcher at Samsung Heavy Industries Research Institute. In 2007, he was appointed as a professor in the Department of Materials Science and Engineering at Dong-A University. Within the university, he has held positions such as Dean of Student Affairs, Dean of Career Support, and Dean of Academic Affairs. In 2021, he was selected as a regular member in the field of materials and resource engineering by the National Academy of Engineering of Korea. Having secured a second term, Lee expressed his strong ambition to drive Dong-A University towards becoming the top private university in Korea by 2030. Despite failing to be selected as a Glocal University in 2023, Lee demonstrated a strong commitment to transforming Busan into a global innovation city by forming a "mega-university alliance" with Dongseo University. This led to Dong-A University joining the Glocal University 30 initiative in 2024. With the university's entry into the Glocal University program in the first year of his second term, expectations are high for Dong-A University to play a central role in reshaping the future of Busan as an international city. #LeeHaewoo #DongAUniversity #UniversityPresident #HigherEducation #Busan #MetallurgicalEngineering #GlocalUniversity #SamsungHeavyIndustries #Korea #EducationalLeadership
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President of Dong-A University
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Chairman of the Korea Life Insurance Association
Kim Chul-ju
- Kim Chul-ju is the president of the Korea Life Insurance Association. He supports life insurance companies in exploring new markets such as healthcare and long-term care businesses. He is promoting product development and system improvements to secure differentiated competitiveness for life insurance in the pension and third-party insurance markets. He was born on November 23, 1963, in Daegu. He graduated from Daegu Cheonggu High School and Seoul National University with a degree in economics. He earned a master's degree in finance from Georgia State University in the United States. After passing the 29th Administrative Examination, he served as the Director of the Economic Policy Bureau in the Ministry of Finance and Economy, followed by positions such as Director of the Public Policy Bureau, Director of the Economic Policy Bureau, and Chief of Planning and Coordination at the Ministry of Strategy and Finance. He also worked as the Secretary for Economic and Financial Affairs in the Presidential Office. He later served as the Deputy Director of the Asian Development Bank Institute (ADBI) before taking on the role of Chairman of the Financial Creditors' Adjustment Committee in 2021. He has built expertise in economic policy and international finance over more than 30 years of public service. He is highly regarded for his international perspective and broad outlook. #KimChulju #LifeInsurance #InsuranceMarket #Healthcare #PensionMarket #EconomicPolicy #InternationalFinance #PublicService #ADBI #KoreaLifeInsuranceAssociation
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Chairman of the Korea Life Insurance Association
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Minister of Land, Infrastructure and Transport
Park Sang-woo
- Park Sang-woo is the Minister of Land, Infrastructure and Transport. He is focused on easing regulations on reconstruction and redevelopment and stabilizing the real estate market in line with the Yoon Suk-yeol administration's policy to revitalize housing supply. He is also prioritizing the smooth landing of real estate project financing (PF) issues, expanding overseas ventures for South Korean construction companies, and ensuring the proper implementation of the new airport project at Gadeokdo. He was born on May 2, 1961 (lunar calendar) in Busan. He graduated from Dongnae High School in Busan and earned a bachelor’s degree in public administration from Korea University. He also received a master’s degree in urban and regional planning from George Washington University in the United States and a Ph.D. in urban planning from Gachon University. He began his public service career as part of the 27th class of the Higher Civil Service Examination and held various positions in the Ministry of Land, Infrastructure and Transport, including Director of Construction Policy, Director General of Land Policy, Director General of Housing and Land, and Director General of Planning and Coordination. After serving as a visiting professor in the Department of Urban Engineering at Chungbuk National University and as the President of the Korea Research Institute for Construction Policy, he was appointed as the President of Korea Land and Housing Corporation (LH). After stepping down as the President of LH, he worked as the CEO of the private research firm Sin Nambang Economic Research Institute and as an adjunct professor in the Urban Regeneration Cooperative Program at Korea University before being nominated as the Minister of Land, Infrastructure and Transport, succeeding former Minister Won Hee-ryong. He is an expert in urban and housing policy, having worked extensively in the Ministry of Land, Infrastructure and Transport and holding a Ph.D. in urban engineering. #ParkSangwoo #MinisterofLandInfrastructureandTransport #YoonSukyeol #urbanpolicy #housingmarket #constructionpolicy #realestate #Gadeokdoairport #KoreaUniversity #publicservice
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Minister of Land, Infrastructure and Transport
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CEO of Emro
Song Jae-min
- Song Jae-min is the CEO of Emro, the leading company in the domestic supply chain management (SCM) software market, which he has been leading since 2005. He was born on June 7, 1967. Song graduated from Seoul National University with a degree in International Economics and earned his MBA from the University of Illinois Urbana-Champaign (UIUC). After completing his studies, he worked at Deloitte & Touche, a U.S.-based accounting firm, before transitioning into the investment industry, inspired by the dot-com boom. While working as a team leader at Korea Investment Partners, he saw the growth potential of Emro during an investment review and decided to acquire the company directly. Recognizing the importance of artificial intelligence (AI) technology early on, he actively integrated it into Emro's solutions, transforming the company into a provider of AI-based digital innovation solutions. In 2023, Song has been actively working with Samsung SDS, Emro's largest shareholder, to expand the company's SCM Software as a Service (SaaS) platform into international markets. #SongJaemin #Emro #SCM #software #CEO #AI #digitaltransformation #supplychainmanagement #SamsungSDS #internationalexpansion
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CEO of Emro
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President of Chungnam National University
Kim Jeong-Kyoum
- Kim Jeong-Kyoum is the 20th President of Chungnam National University. His term began on April 1, 2024, and will last for four years. He has committed to playing a pivotal role in regional and national development, advocating for the university to lead in global higher education and innovation ecosystems. Born in 1963, Kim Jeong-Kyoum graduated from Chungnam National University with a degree in Education and went on to earn both a master's and a doctoral degree in Education from the same institution. He joined the faculty of Chungnam National University's Department of Education in 2001 and has held several key positions within the university, including Director of the Basic Liberal Arts Education Center, Director of the Leading University Project for Undergraduate Education, Dean of Academic Affairs, and Director of the AI Convergence Education Research Institute. Kim has also served as a member of the Presidential Committee for National Integration and as an Educational Policy Advisor to the Ministry of Education. Additionally, he is the President of the Korean Society for Educational Technology. Through the university's long-term vision for development, "Vision 2040," he aims to establish a mega-campus and create a unique educational model, positioning Chungnam National University as a strong leader in the future society. Although Chungnam National University initially failed to make the list for the "Glocal University 30" project in its early stages, it was placed on the preliminary selection list after a reapplication in 2024. However, following Kim Jeong-Kyoum's appointment as president, the university's proposed merger with Hanbat National University fell through, putting its selection in jeopardy. All eyes are now on Kim Jeong-Kyoum to see whether he can demonstrate the leadership needed to resolve this crisis. #KimJeongKyoum #ChungnamNationalUniversity #universitypresident #educationleadership #Vision2040 #highereducation #SouthKorea #AIeducation #GlocalUniversity30 #universitymerger
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President of Chungnam National University
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CEO of KT Skylife
Choi Young-bum
- Choi Young-bum is the CEO and President of KT Skylife. He previously served as the Senior Secretary for Public Communication and Special Advisor for External Cooperation in the Yoon Suk Yeol administration. His appointment as the president of KT Skylife sparked controversy because it marks another instance of a politician from the ruling party being appointed to this position. He faces the challenge of finding new momentum to break the nearly four-year-long slump in performance. The company is seeking a turnaround by fostering new content and utilizing artificial intelligence (AI) in its services. Choi was born on July 7, 1960, in Seoul. He graduated from Yeongdong High School in Seoul and earned a bachelor’s degree in law from Sungkyunkwan University. He completed the Advanced Leadership Program (ALP) at Seoul National University’s Law School and a fellowship program at Georgetown University in the United States. Choi began his journalism career as a reporter in the social affairs department at the Dong-A Ilbo. In 1991, he moved to SBS, where he held various positions, including Political Editor, News Director, Editorial Writer, Head of the News Division, and Head of the Management Support Division. He also served as Vice President of the Korea News Editors' Association. He later transitioned to Hyosung Group, where he served as Vice President of the Communication Office. Choi was appointed as the first Senior Secretary for Public Communication in the Yoon Suk Yeol administration. Later that year, he became the Special Advisor for External Cooperation, a position he resigned from in April 2023. In February 2024, he was appointed CEO and President of KT Skylife. ### Keywords: #ChoiYoungbum #KTSkylife #YoonSukYeol #Korea #CEO #AI #journalist #broadcasting #controversy #leadership
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CEO of KT Skylife
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Daewon Cable CEO & Chairman
Suh Myoung Hwan
- Suh Myoung Hwan is the Chairman and CEO of Daewon Cable and also serves as the CEO of Gapdo Mulsan, the holding company of Daewon Cable. He was born on September 15, 1955, as the son of Suh Kang-Hee, the founder of the construction company Cheonghwa Enterprise. Suh Myoung Hwan graduated from Kyungdong High School in Seoul and earned his degree in Textile Engineering from Hanyang University in 1980. He completed his graduate studies at the University of California in 1982. In 1984, he became the CEO of Cheonghwa Enterprise, which was founded by his father, Suh Kang-Hee. Since 1987, he has also been serving as the CEO of Gapdo Mulsan. In 1999, Suh Myoung Hwan acquired Daewon Cable, which had sales of approximately 60 billion won at the time, and has since expanded it to a scale of around 500 billion won (as of 2023). Since the acquisition in 1999, he has been the Chairman and CEO of Daewon Cable. He has achieved domestic production of specialty high-voltage cables and instrumentation cables by obtaining UL certification, which has helped reduce reliance on imports. As the leading domestic manufacturer of automotive wires, Daewon Cable has developed fire-resistant, colorless, and odorless wires in collaboration with automobile manufacturers. Looking ahead to the era of electric and hydrogen vehicles, Suh Myoung Hwan has proactively expanded the production capacity for automotive wires.
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Daewon Cable CEO & Chairman
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Chairman of Amicogen
Shin Yong-chul
- Shin Yong-chul is the founder and chairman of Amicogen. He also serves as the chairman of the board of directors. He was born on August 4, 1960. He graduated from Seoul National University with a degree in Food Engineering and earned both his master's and doctoral degrees in Biotechnology from KAIST. Shin Yong-chul was a professor in the Department of Microbiology at Gyeongsang National University. During the IMF financial crisis, he decided to start a business to create jobs as his students struggled with employment difficulties. In 2000, he founded the biotech venture company "Amicogen" in Jinju, Gyeongnam, where Gyeongsang National University is located. Amicogen operates in the healthcare industry by utilizing special enzyme technology developed in-house. Amicogen's eco-friendly special enzymes play a role in reducing environmental pollutants by about 30% during the production process of synthetic drugs. The company also manufactures and sells health functional foods using its special enzyme technology. After 25 years since its founding, Shin Yong-chul is recognized as a successful professor-turned-entrepreneur, having grown Amicogen to a market capitalization of around KRW 300 billion (US$ 217.8 million). #ShinYongchul #Amicogen #biotechnology #enzyme #healthcare #eco-friendly #startups #professor #entrepreneur #IMFcrisis
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Chairman of Amicogen
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CEO of SHIN Steel
Shin Seung-gon
- Shin Seung-gon is the CEO of SHIN Steel. He also serves as the CEO of subsidiaries SHIN STEEL THAILAND and SHIN STEEL MEXICO, as well as an inside director of SHIN Steel SC. Shin is focused on expanding SHIN Steel's production capacity. He was born on June 14, 1972. After graduating from the Department of Business Administration at Kyungnam University, he worked at Jin Yang Metals, a steel manufacturing company. Subsequently, in 2005, he founded SHIN Steel and became its CEO. Having worked in several steel-related companies, Shin established his own company and grew it into a mid-sized enterprise with annual sales of around KRW 300 billion (approximately USD 216.4 million). #ShinSeunggon #SHINSteel #steelindustry #businessgrowth #KyungnamUniversity #JinYangMetals #corporateleadership #productionexpansion #mid-sizedenterprise #KRW300billion
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CEO of SHIN Steel
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CEO of HFR
Cheong Jong-min
- Cheong Jong-min is the CEO of HFR. He also serves as an inside director at Entels, H1Radio, and KR Ventures. Cheong Jong-min was born on December 16, 1968. He earned his bachelor's, master's, and doctoral degrees in Electrical and Electronics Engineering from the Korea Advanced Institute of Science and Technology (KAIST), specializing in optical communication. In 1995, he joined SK Telecom as a senior researcher. In 2000, through SK Telecom's venture startup program, he founded HFR, a telecommunications equipment company. Cheong Jong-min has grown HFR into a leading Korean provider of wired and wireless communication equipment and solutions. He is recognized as an expert who has witnessed and contributed to the evolution of domestic wireless communication, from the era of pagers to 5G. He views "5G specialized networks," which are customized networks for specific buildings or regions, as a new growth engine and is focused on expanding this market. #CheongJongmin #HFR #5G #Telecommunications #SKTelecom #KAIST #OpticalCommunication #WirelessCommunication #NetworkSolutions #KoreanTechnology
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CEO of HFR
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CEO of Korea Investment Management
Bae Jae-kyu
- Bae Jae-kyu is the CEO and President of Korea Investment Management. He also serves as the Chairman of the Board. He is focusing the company's organizational capabilities on placing Korea Investment Management within the top three in the Exchange-Traded Fund (ETF) market. Bae was born on June 25, 1961 (lunar calendar) in Sancheong, Gyeongsangnam-do. He graduated from Boseong High School in Seoul and studied Economics at Yonsei University. After working in the stock management teams of Korea General Finance and SK Securities, he moved to Samsung Asset Management. While at Samsung Asset Management, Bae led the domestic ETF market by launching Asia's first leveraged and inverse ETFs, earning the nicknames "Pioneer of ETFs" and "Father of ETFs." He served as the Vice President of Samsung Asset Management before joining Korea Investment Management. Bae is known for his passionate approach to work and his open communication with employees. #BaeJaekyu #KoreaInvestmentManagement #ETF #SamsungAssetManagement #KoreaFinance #YonseiUniversity #BoseongHighSchool #KoreanFinanceIndustry #ETFPioneer #Leadership
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CEO of Korea Investment Management
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CEO of Lotte Biologics
Richard Won-jik Lee
- Lee Won-jik is the CEO of Lotte Biologics and also serves as the head of its U.S. subsidiary. He is focused on enhancing the company's contract development and manufacturing (CDMO) capabilities, securing clients, and positioning Lotte Biologics for success in its early stages. Born on August 4, 1977, Lee Won-jik graduated from the Molecular and Cell Biology Department at the University of California, Berkeley. He previously worked at global pharmaceutical companies Kyron (now Novartis Vaccines) and Bristol-Myers Squibb (BMS). Lee joined Samsung Electronics' New Business Development Division and played a role in the launch of Samsung Biologics. He was appointed head of the DP (finished pharmaceutical products) division at Samsung Biologics upon its establishment. After joining Lotte Holdings as the head of the New Growth Team 2, he prepared for the CDMO business entry and was later appointed CEO of Lotte Biologics when it was founded. He aims to position Lotte Biologics among the top 10 global CDMO companies by 2030 and is undertaking a large-scale investment for facility expansion. Lee Won-jik is a rare 40-something CEO within Lotte Group. #LeeWonJik #LotteBiologics #CDMO #Pharmaceuticals #Leadership
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CEO of Lotte Biologics
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Co-CEO & President of Kyobo Securities
Lee Seok-gi
- Lee Seok-gi is the President and CEO of Kyobo Securities. He shares the role of co-CEO with Park Bong-kwon, focusing on discovering new business opportunities that will drive future growth. Born on January 13, 1965, in Seoul, Lee Seok-gi graduated from Seoul National University with a degree in Economics. He earned a Master’s degree in Economics from Seoul National University Graduate School and completed the Technological Management Program at KAIST (Korea Advanced Institute of Science and Technology). Lee Seok-gi joined Kyobo Life Insurance, where he held positions such as Executive Director of Asset Management, Vice President of Management Support, and CFO (Chief Financial Officer). In 2021, he transitioned to Kyobo Securities as a Senior Advisor and was later appointed co-CEO. On February 14, 2024, he was also appointed as an Outside Director (Audit Committee Member) of the Korea Exchange, representing the securities industry. A finance expert, he has held various positions within the Kyobo Group, including Head of the Finance Team, Director of Financial Affairs, Head of the Management Planning Office, and Head of the Investment Business Division. Lee Seok-gi values communication with employees and is leading efforts to shift Kyobo Securities away from its conservative culture. #LeeSeokgi #KyoboSecurities #FinanceExpert
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Co-CEO & President of Kyobo Securities
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CEO & Chairman of Amotech
Kim Pyung-kyu
- Kim Pyung-kyu is the CEO, Chairman, and founder of Amotech. He was born on September 24, 1956, in Seoul. After graduating from Seoul High School, he earned his bachelor's, master's, and doctoral degrees in Metallurgical Engineering (now the Department of Materials Science and Engineering) from Seoul National University. After obtaining his Ph.D., he worked as the director of a metallurgical research institute. Driven by the ambition to establish a leading components company in South Korea, he founded Amotech in 1994. Leveraging his background as a metallurgical researcher, Kim Pyung-kyu focused on material technology, building Amotech into one of the world's top three companies in the chip varistor industry, a key component for electrostatic discharge protection. Amotech counts major global companies such as Samsung Electronics, Apple, and Motorola among its clients. Kim Pyung-kyu is expanding Amotech's business by focusing on multilayer ceramic capacitors (MLCC), which are used in electric vehicles and other products, as a new growth area. He has also set a goal of achieving KRW 1 trillion (approximately US$ 726.5 million) in sales. #KimPyungKyu #Amotech #CEO #Founder #MetallurgicalEngineering #MaterialsScience #ChipVaristor #GlobalLeader #Samsung #Apple #Motorola #MLCC #ElectricVehicles #1TrillionWonGoal
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CEO & Chairman of Amotech
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CEO of Standard Chartered Bank Korea
Park Jong-bok
- Park Jong-bok is the CEO of Standard Chartered Bank Korea. Amid the financial market uncertainties caused by high interest rates, he is focusing his efforts on achieving stable performance. He was born on May 29, 1955 (lunar calendar) in Cheongju, Chungcheongbuk-do. He graduated from Cheongju High School and earned a degree in Economics from Kyung Hee University. After joining the predecessor of Standard Chartered Bank Korea, Cheil Bank, he worked mainly in the sales department for over 35 years. He has been the first Korean CEO of Standard Chartered Bank Korea, holding the position for ten years, making him the longest-serving CEO among current bank CEOs. He values communication and frequently meets with customers and employees. Prioritizing practicality over formality, he receives work reports via text message and sometimes visits branches unannounced. Due to his natural gray hair, he has earned the nickname "Silver-haired JB." He follows the management philosophy of "Geunja-yeol Wonjare," meaning "If you please those close to you, others will hear and come from afar." #ParkJongbok #StandardCharteredBankKorea #CEO #Korea #Finance #Banking #Leadership #ManagementPhilosophy #SilverHair #Longevity
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CEO of Standard Chartered Bank Korea
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CEO of Lotte On
Park Ik-jin
- Park Ik-jin is the Vice President and CEO of Lotte On. Lotte On is the integrated online mall of Lotte Group's distribution division, launched in 2020. It is also referred to as Lotte Shopping's e-commerce division. He was born in 1968. After completing his bachelor's and master's degrees in Physics at Seoul National University, he earned a Ph.D. in Physics from the Massachusetts Institute of Technology (MIT) in the United States. From 2000, he worked as a Project Manager at McKinsey & Company, and from 2004 to 2006, he served as the Chief Financial Officer (CFO) and Chief Strategy Officer (CSO) at Citibank Korea's Card Division. In 2006, he became an Associate Partner at McKinsey, and in 2012, he served as Executive Vice President in charge of strategy at Hyundai Card and Hyundai Capital. From 2014 to 2019, he held the position of Vice President and Head of Marketing at ING Life. In 2019, he was appointed Vice President in charge of Marketing and Digital at MBK Lotte Card, and in 2021, he served as the Head of Operations at Affinity Equity Partners. In 2024, he joined Lotte Shopping and was appointed Vice President and CEO of Lotte On, the e-commerce division. #LotteOn #ParkIkjin #ecommerce #LotteGroup #retail #MIT #SeoulNationalUniversity #executiveleadership #strategy #digitaltransformation
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CEO of Lotte On
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President of Gyeongsang National University
Kweon Jin-hye
- Kweon Jin-hye is the President of Gyeongsang National University, officially inaugurated on July 22, 2024, with a term of four years. He is dedicated to achieving a sophisticated level of organic integration following the physical merger of Gyeongsang National University and Gyeongnam National University of Science and Technology. Kweon is also focusing his efforts on revitalizing the regional ecosystem of Gyeongnam by leveraging the university's specialization in aerospace and defense to generate and disseminate the outcomes of the Glocal Leading University Project. An expert in aerospace, his primary areas of expertise include aircraft structures and composite materials. He was born on December 6, 1964, in Jinju, Gyeongnam Province. Kweon Jin-hye graduated from the Department of Aerospace Engineering at Seoul National University and earned his master’s and doctoral degrees in Aerospace Engineering from KAIST. He worked at the Samsung Aerospace Research Institute before being appointed as a professor in the Department of Mechanical, Aerospace, and Information Engineering at Gyeongsang National University. At Gyeongsang National University, he served as the Deputy Dean of the Graduate School of Aerospace Specialization, the Director of the Aircraft Parts Technology Research Institute, and as the Director of Planning. He is also the editor of the International Journal of Aerospace Sciences and the President of the Korean Society for Composite Materials. #KweonJinhye #GyeongsangNationalUniversity #aerospace #defense #aerospaceengineering #GlocalLeadingUniversity #SeoulNationalUniversity #KAIST #SamsungAerospace #academicleadership
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President of Gyeongsang National University
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Chairman of Yulchon
Lee Heung-hae
- Lee Heung-hae is the CEO and Chairman of Yulchon. He is focused on expanding Yulchon's business areas. Born on April 4, 1952, Lee graduated from Cheongju Commercial High School in Chungcheongbuk-do and worked at Dongyang Wood Industries and Dongyang System Industries. In 1990, he acquired shares in Yulchon, becoming the largest shareholder, and the following year, he was appointed CEO. Lee has served as the first head of the Siheung branch of the Gyeonggi Export Companies Association and as the 5th and 6th president of the Gyeonggi Small and Medium Business Association. As of 2024, he is actively involved as the Vice Chairman of the Siheung Chamber of Commerce and Honorary Chairman of the Gyeonggi Small and Medium Business Association. Through the expansion of the steel pipe business, Lee has grown Yulchon into a company with annual sales of KRW 70 billion (approximately USD 50.5 million). #LeeHeunghae #Yulchon #BusinessExpansion #SteelPipeBusiness #KoreanBusinessLeader #GyeonggiBusinessAssociation #SmallAndMediumEnterprises #CorporateLeadership #SiheungChamberOfCommerce
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Chairman of Yulchon
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CEO of LIG Nex1
Shin Ick-hyun
- Shin Ick-hyun is the CEO and President of LIG Nex1. He is dedicated to laying the foundation for the sustained growth of LIG Nex1 through the expansion of defense exports. Shin was born on December 27, 1959. He graduated from Gongju High School in Chungcheongnam-do and the Korea Air Force Academy. In 1984, he was commissioned as an Air Force pilot and later served as the commander of the 8th Fighter Wing and the Director of Force Planning 3 at the Joint Chiefs of Staff. He retired as a Brigadier General in 2015. In 2017, Shin joined LIG Nex1 as a Strategic Planning Specialist. He went on to serve as the Head of the Surveillance and Reconnaissance Business Division, the Head of the C4ISTAR (Command, Control, Communications, Computers, Intelligence, Surveillance, Target Acquisition, and Reconnaissance) Business Division, and eventually the Head of the C4ISTAR Business Division. #ShinIckhyun #LIGNex1 #DefenseIndustry #MilitaryLeadership #C4ISTAR #KoreanAerospace #DefenseExports #CorporateLeadership #KoreaAirForce #StrategicPlanning
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CEO of LIG Nex1
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CEO of SK ecoplant
Kim Hyung-keun
- Kim Hyung-keun is the CEO of SK ecoplant. He was born in June 1970. Kim graduated from Seoul National University with a degree in Business Administration. He also earned an MBA from Michigan State University and a Master's degree in Public Policy from the Korea Development Institute (KDI) School of Public Policy and Management. He joined Yukong, the predecessor of SK Innovation, in 1997, and has since held various key financial roles within SK Group, including Head of Finance at SK Energy & Service and Head of Finance at SK E&S. In 2020, he demonstrated his management capabilities as the CEO of SK Airgas. Starting in 2021, when he served as Head of SK Portfolio Management, he played a crucial role in SK's transition to a holding company structure and the establishment of a management system based on corporate value, focusing on corporate governance restructuring and portfolio optimization. In 2024, Kim was appointed CEO of SK ecoplant, tasked with enhancing the company's value through financial restructuring in preparation for its IPO. Kim is focused on diversifying SK ecoplant's business portfolio and strengthening its financial health, particularly as the company shifts its business model towards environmental and energy sectors. #KimHyungkeun #SKEcoplant #SKGroup #CEO #financialleadership #businessdiversification #corporategovernance #IPO #businessmodeltransition #environmentalbusiness #energysolutions
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CEO of SK ecoplant
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CEO of TheBorn Korea
Baek Jong-won
- Baek Jong-won is the CEO of TheBorn Korea. He also serves as the chairman of the Yeduk Academy Foundation and the CEO of TMC Entertainment. As TheBorn Korea celebrates its 30th anniversary, Baek Jong-won is pursuing an initial public offering (IPO). In recent years, attempts by companies in the distribution industry to go public have often failed, making Baek Jong-won's efforts to successfully list TheBorn Korea a topic of significant interest. Born on September 4, 1966, in Daejeon, Chungcheongnam-do (now Daejeon Metropolitan City), Baek Jong-won is the eldest son of Baek Seung-tak, the former Superintendent of Chungcheongnam-do Office of Education. He graduated from Seoul High School and Yonsei University's College of Theology. Baek completed his military service as an officer, serving as a first lieutenant in the 7th Artillery Brigade of the Army, and was honorably discharged after fulfilling his service obligation. After his discharge, Baek entered the food service industry by acquiring "Wonjo Ssam Bap Jip" in 1993, and in 1994, he founded TheBorn Korea. In 2010, Baek began his television career with a regular appearance on SBS's "The Real Taste of Korea." As of 2024, he continues to appear on various TV programs and operates the YouTube channel "Baek Jong-won." Baek Jong-won prefers to be referred to as a "food business entrepreneur" or "culinary researcher" rather than a chef, and he suggests titles like "boss" or "CEO." However, the title he favors most is "food service management expert." He is widely regarded as a practical expert who has a keen understanding of public demand. #BaekJongwon #TheBornKorea #IPO #KoreanEntrepreneur #FoodBusiness #CulinaryExpert #YouTubeChannel #KoreanCuisine #FoodServiceManagement #TVPersonality
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CEO of TheBorn Korea
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Global Investment Officer of Naver
Lee Hae-jin
- Lee Hae-jin is the Global Investment Officer (GIO) of Naver and also serves as the chairman of A Holdings, a joint venture between Naver and SoftBank in Japan. He oversees Naver's international business operations, focusing on expanding Naver's influence globally. Although he stepped down as chairman of Naver's board and withdrew from day-to-day management, Lee continues to hold responsibility for Naver's overall management as the company's de facto leader. Lee Hae-jin was born on June 22, 1967, in Seoul. He graduated from Seoul National University with a degree in Computer Engineering and earned a master’s degree in Computer Science from the Korea Advanced Institute of Science and Technology (KAIST). He began his career at Samsung SDS. Lee founded Naver's predecessor, NaverCom, and led its management. Later, he merged the company with Hangame, founded by Kim Beom-su (the founder of Kakao), to establish NHN. Leveraging the success of the "Knowledge iN" service, Lee positioned NHN as the leading company in the portal industry. After Hangame spun off as NHN Entertainment, the company was renamed Naver. Lee transitioned from chairman of Naver's board to his current role as Global Investment Officer. Despite his meticulous nature and calm demeanor, he is known for being bold and unafraid of taking risks when making business decisions. #LeeHaejin #Naver #GlobalInvestmentOfficer #Aholdings #SoftBank #TechIndustry #BusinessLeadership #KoreanEntrepreneurs #NaverGlobalExpansion #CorporateStrategy
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Global Investment Officer of Naver
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Chairman of C&C International
Bae Eun-chul
- Bae Eun-chul is the CEO and chairman of C&C International, as well as its founder. C&C International is an original design manufacturer (ODM) specializing in color cosmetics. He was born on April 5, 1957. Bae graduated from Seoul Technical High School. After graduating from high school, he worked for the major cosmetics company Taepyeongyang (now Amorepacific). Driven by his determination to establish a company specializing in color cosmetics manufacturing, he founded C&C International in 1997. Color cosmetics are more difficult to produce than general cosmetics due to complex manufacturing processes and higher defect rates, making mass production challenging. As a result, large cosmetics companies often outsource the production of these products. Bae Eun-chul founded the company based on his belief that by establishing an ODM company with strong product competitiveness in color cosmetics, he could capture a significant share of the market. C&C International’s color cosmetics have been recognized for their quality abroad, with major global brands like L'Oréal and Estée Lauder sourcing and selling its products. Bae Eun-chul is known for his passion for developing color cosmetics technology, to the extent that he carries color cosmetics such as eyebrow pencils in his pocket and frequently tests their quality by applying them on the back of his hand. #BaeEunchul #C&CInternational #ColorCosmetics #ODM #Amorepacific #CosmeticsManufacturing #L'Oreal #EsteeLauder #ProductDevelopment #BeautyIndustry
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Chairman of C&C International
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Chairman of the Board of Directors at L&F
Heo Jae-hong
- Heo Jae-hong is the Chairman of the Board of Directors at L&F and also serves as the CEO of affiliated companies JH Chemical Industries and JH Materials (formerly Sanko Korea). Heo Jae-hong is a great-grandson of Heo Man-jung(Huh Man-jung), the co-founder of LG Group, and a fourth-generation member of the larger GS family. His grandfather, Heo Hak-gu, who founded Seronics, was the second son of Heo Man-jung. Heo Jae-hong's father, Heo Jeon-su, was the only son of Heo Hak-gu and served as the chairman of Seronics. Heo Jae-hong was born on November 24, 1976. He graduated from Yonsei University with a degree in chemical engineering and earned a master's degree in chemical engineering from the University of Southern California. He began his career at LG Philips LCD Research Center in 2001 and started working at L&F's research center in 2003. In 2006, Heo Jae-hong joined Seronics, and after the passing of his father, Chairman Heo Jeon-su, in May 2010, he became the CEO, serving in that role until October 2023. Seronics was founded by Heo Jae-hong's grandfather, Heo Hak-gu, in 1968 under the name Jeonghwa Metal. The company was later renamed Seronics during the tenure of Heo Jae-hong's father, Heo Jeon-su, as CEO. L&F was established in July 2000 by Heo Jeon-su after inheriting Seronics, to supply LCD backlight units (BLUs) to LG Display. Heo Jae-hong served as CEO of L&F from 2018 to March 2021 and, as of August 2024, holds the position of Chairman of the Board of Directors. L&F is currently operated under the leadership of professional manager Choi Su-an as CEO. In April 2023, Heo Jae-hong gained attention from Bloomberg after securing a large supply contract with Tesla. Bloomberg estimated that the combined value of the shares held by Heo Jae-hong and his related parties exceeded $800 million (approximately KRW 1 trillion). According to the Bloomberg Billionaires Index, the valuation of their shares is estimated to be at least $800 million, which, considering exchange rates, amounts to over KRW 1 trillion. #HeoJaehong #LF #JHMaterials #JHChemical #Seronics #LGGroup #Tesla #SupplyContract #ChemicalEngineering #CorporateLeadership #BloombergBillionairesIndex
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Chairman of the Board of Directors at L&F
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CEO of Sambo Industrial
Lee Tae-yong
- Lee Tae-yong is the CEO of Sambo Industrial. Together with CEO Choi Jae-hoon, a professional manager, he leads Sambo Industrial as co-CEO. He is focused on improving the financial structure of Sambo Industrial. He was born on September 7, 1960, in Busan. After graduating from Hyekwang High School in Busan, he studied sociology at Yonsei University. In 1987, he obtained a Master of Business Administration (MBA) from Long Island University in the United States and then joined Sambo Industrial. He progressed through the ranks at Sambo Industrial, becoming the president and eventually the CEO in 2000. He has served as a member of the Small and Medium Business Committee of the Korea Chamber of Commerce and Industry. He grew Sambo Industrial, inherited from his father, into a mid-sized company with sales of KRW 400 billion (US$ 288.4 million). #LeeTaeYong #SamboIndustrial #CEO #KoreanBusiness #FinancialImprovement #Busan #YonseiUniversity #MBA #KoreanIndustry #MidSizedBusiness
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CEO of Sambo Industrial
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Chairman of SPG
Lee Jun-ho
- Lee Jun-ho is the Chairman and CEO of SPG. He founded SPG, which has become the leading company in the domestic small geared motor market. Lee Jun-ho was born on June 1, 1960. He graduated from the Department of English at Hankuk University of Foreign Studies and earned a degree in Business Administration from the University of Illinois at Urbana-Champaign. He also obtained an MBA in Finance from George Washington University. After completing his studies, he worked at Sungshin, a motor company founded by his late father, Chairman Lee Hae-jong. In 1991, he founded Myungjin Electronics (now SPG) and became independent. He focused on developing technology for small geared motors and general speed reducers, achieving localization in a market previously dominated by Japanese companies. Lee sees precision reducers, a key component in robotic joints, as the company's future growth driver, and he is committed to advancing technology and expanding the market. #SPG #LeeJunho #GearedMotors #PrecisionReducers #Robotics #TechnologyDevelopment #Localization #MarketLeader #BusinessGrowth #KoreanEntrepreneur
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Chairman of SPG
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Vice Chairman of Daishin Securities
Yang Hong-seok
- Yang Hong-seok is the Vice Chairman of Daishin Securities. In March 2023, he succeeded his mother as the Chairman of the Board of Daishin Securities, marking the official beginning of the third-generation management of Daishin Financial Group. He is focusing on revenue generation through business diversification. Yang was born on April 20, 1981, in Seoul as the son of Yang Hoi-moon, the former Chairman of Daishin Securities, and Lee Auh-ryung, the current Chairman of Daishin Financial Group. He is the grandson of Yang Jae-bong, the honorary chairman and founder of Daishin Securities. Yang graduated from Hyundai High School in Seoul and went on to earn a degree in Business Administration from Seoul National University. He worked at Daishin Securities' Seolleung Station branch and Myeongdong branch, and within a year, he was promoted to Executive Director of Daishin Asset Management. After serving as Senior Executive Director, Vice President, and President, he was promoted to Vice Chairman in 2021. He avoids media exposure. Yang is known for his strong interpersonal skills and actively communicates with employees. #YangHongSeok #DaishinSecurities #ViceChairman #DaishinFinancialGroup #thirdgenerationmanagement #businessdiversification #YangHoiMoon #LeeAuhRyung #SeoulNationalUniversity #corporateleadership
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Vice Chairman of Daishin Securities
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Chairman of Pangrim
Suh Jae-hee
- Suh Jae-hee is the CEO and Chairman of Pangrim. He was born on April 20, 1936, in Ulsan, as the grandson of Pangrim's founder, former Chairman Suh Gap-ho, and the son of former Pangrim Chairman Suh Sang-geun. He graduated with a degree in Business Administration from Dongguk University. After joining Pangrim, he became the President and CEO of the company in 1989. He served as Chairman of the Korea Mutual Savings Bank and has been serving as the CEO of Pangrim since 2012. As a third-generation owner-manager, he diversified the company by acquiring "Silverfree" and expanding into the elderly care and welfare business. He is also focused on improving the company's structure by developing eco-friendly materials and replacing outdated factory equipment. #Pangrim #SuhJaehee #CEO #Chairman #Korea #BusinessLeader #Diversification #EcoFriendly #ElderlyCare #CorporateStructure
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Chairman of Pangrim
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CEO of KB Capital
Bin Jung-ill
- Bin Jung-ill is the CEO and President of KB Capital. He is focused on restructuring KB Capital's asset portfolio, which has been heavily skewed towards automobile financing. He has set the direction for "balanced growth" between retail finance assets and corporate and investment finance assets. He was born on May 17, 1968. He graduated from Daea High School in Jinju and majored in Chemistry at Gyeongsang National University. He is a corporate finance expert with extensive experience in the Corporate and Investment Banking (CIB) and Structured Finance sectors. He began his career at Housing & Commercial Bank. After its merger with KB Kookmin Bank, he held positions such as Head of Structured Finance Department 2, Chief Credit Officer of the CIB & Global Review Department, Head of CIB & Global Review Department, Head of Structured Finance Department 3, and Head of the Structured Finance Division. He is committed to fostering internal stability by actively communicating with employees. #KB #BinJoongil #corporatefinance #investmentbanking #structuredfinance #KBCapital #retailfinance #CIB #leadership #banking
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CEO of KB Capital
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President of Sejong University
Eom Jong-hwa
- Eom Jong-hwa is the president of Sejong University. He assumed office on July 27, 2024, with a term lasting three years. His goal is to collaborate with the local community to create social value and to demonstrate global leadership by connecting with the world. He was born in 1965. After graduating from Neungin High School in Daegu, he majored in physics at Seoul National University. He then obtained a master's degree from the same university and earned a Ph.D. in physics from Northwestern University in the United States. In 2001, he joined Sejong University as a professor in the Department of Physics and Astronomy. He held several key administrative positions at the university, including Director of External Affairs, Director of Academic Affairs, Vice President for Academic Affairs, and Vice President for Administrative Affairs, before being appointed as the university president. He is renowned for developing the world's first spin transistor. He has published numerous papers in various prestigious academic journals, including *Science*. He also serves as a management committee member for the Ministry of Education's LAMP project. #EomJonghwa #SejongUniversity #UniversityPresident #Physics #SpinTransistor #GlobalLeadership #HigherEducation #AcademicResearch #LAMPProject #NorthwesternUniversity
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President of Sejong University
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CEO of HD Hyundai Oilbank
Chu Young-min
- Chu Young-min is the CEO and President of HD Hyundai Oilbank. He is leading the transformation of HD Hyundai Oilbank by establishing a circular economy for waste plastics, pioneering the white bio industry, expanding into overseas markets, and improving the company's image. Born on December 1, 1962, he graduated from Sungkyunkwan University with a degree in Chemical Engineering and earned a master’s degree from Korea University Business School. He joined Kukdong Oil Refining (now HD Hyundai Oilbank) and later became the CEO of Hyundai Shell Base Oil. After serving as the head of the Global Business Division at Hyundai Oilbank, he was appointed CEO and President of Hyundai Oilbank. As an engineer who rose to the position of overall management, he is often regarded as a symbol of the "salaryman success story." He is focused on leveraging his practical experience in the field to achieve results in the new eco-friendly business sectors that HD Hyundai Oilbank is pursuing. #ChuYoungmin #HDHyundaiOilbank #CEO #circular economy #whitebio #chemicalengineering #overseasmarkets #sustainability #businessleadership #greenenergy
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CEO of HD Hyundai Oilbank
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President of Korea Expressway Corporation
Ham Jin-gyu
- Ham Jin-gyu is the President of the Korea Expressway Corporation. He is dedicated to enhancing highway safety and rectifying internal discipline within the corporation. The Korea Expressway Corporation has been experiencing a decline in operating profits, and he is also focused on improving its financial structure. He was born on August 13, 1959, in Siheung, Gyeonggi-do. He graduated from Dochang Elementary School and Sorae Middle School in Siheung, followed by Inha University High School. After graduating from Korea University's Department of Law, he completed his master's and doctoral coursework in law, as well as a doctoral course in political science at Korea University Graduate School. He entered politics by running for the Gyeonggi-do Provincial Assembly election as a candidate for the National Congress in the 2nd National Simultaneous Local Elections. He joined the Grand National Party and was elected as a Gyeonggi-do Provincial Assembly member in the 2002 and 2006 local elections. In the 19th National Assembly election, he ran as a Saenuri Party candidate in Siheung-gap, Gyeonggi-do, and was elected as a member of the National Assembly. He was re-elected in 2016. He was appointed as the President of the Korea Expressway Corporation in February 2023. He is known for his diligence and excellent political acumen. #HamJingyu #KoreaExpresswayCorporation #highwaysafety #Siheung #Gyeonggido #KoreaUniversity #politician #GrandNationalParty #SaenuriParty #GyeonggidoProvincialAssembly
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President of Korea Expressway Corporation
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Chairman of PJ Metal
Song Dong-chun
- Song Dong-chun is the chairman of PJ Metal and also serves as the chairman of its parent company, Poong Jeon NonFerrous Metals. He is focusing his efforts on the electric vehicle battery recycling business. Born in 1956 in Yeongju, Gyeongsangbuk-do, he started his career in companies related to non-ferrous metals before founding Poong Jeon Metal Industry (now Poong Jeon NonFerrous Metals) in 1983. He expanded his business by acquiring PJ Altek and PJ Chemtech, thereby entering the zinc alloy and zinc oxide manufacturing sectors. In 2006, he stepped down as the CEO of Poong Jeon NonFerrous Metals, which then transitioned to a professional management system. He is a self-made entrepreneur who built a group of companies with annual sales reaching KRW 1 trillion (US$ 721.2 million) through mergers and acquisitions. #SongDongchun #PJMetal #PoongJeon #NonFerrousMetals #ElectricVehicle #BatteryRecycling #ZincAlloy #ZincOxide #MergersAndAcquisitions #SelfMadeEntrepreneur
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Chairman of PJ Metal
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Vice Chairman of Nexen Tire
Kang Ho-chan
- Kang Ho-chan is the Vice Chairman and CEO of Nexen Tire. He also serves as the CEO of Nexen, the holding company. He is focused on realizing the medium- to long-term goal of making Nexen Tire one of the top 10 global tire companies. He is also working to improve the recently deteriorated business conditions. Kang was born on October 30, 1971, in Busan. He graduated from Busan Middle School and Busan High School. He majored in Business Administration at Yonsei University and later obtained a master's degree from the Graduate School of Business at Seoul National University. He began his career at Daeyu Regent Securities. He then joined Nexen Tire as a manager in the finance team and rose through the ranks, serving as Executive Director of Corporate Planning, Executive Director of Sales, and Vice President before being promoted to President in charge of strategy. Kang shares the CEO role of the holding company Nexen and Nexen Tire with his father, Kang Byung-joong, Chairman of Nexen Group. As an owner-manager with field experience, he has led efforts to enhance the company's image and performance through sports marketing. He is actively pursuing new initiatives, such as introducing a tire rental service. Known for his cheerful demeanor and friendly greetings, he has earned the nickname "Smile Man." #NexenTire #KangHoChan #CEO #BusinessLeader #SportsMarketing #TireIndustry #KoreanBusiness #CorporateStrategy #NewInitiatives #SmileMan
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Vice Chairman of Nexen Tire
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CEO of S Polytech
Lee Hyuck-yul
- Lee Hyuck-yul is the CEO of S Polytech, the leading engineering plastics company in South Korea. He was born on May 30, 1958, in Boryeong, Chungcheongnam-do. Lee graduated from Bomun High School in Daejeon and the Department of Chemical Engineering at Chungbuk National University. After graduating from university, he worked at a small and medium-sized plastic processing company. In 1997, he acquired Sehwa Polytech, a plastic manufacturing company. Later, he became the CEO and major shareholder of U-Plus, a KOSDAQ-listed company, and led the merger with Sehwa Polytech, resulting in the creation of S Polytech. Lee is known for his relentless efforts to localize the engineering plastics market, which was dominated by foreign companies, and successfully achieved this goal. He now faces the challenge of improving the company's performance, which has been deteriorating since 2021. #LeeHyuckyul #SPolytech #engineeringplastics #SouthKorea #plasticmanufacturing #SehwaPolytech #UPlus #localization #businessleadership #KOSDAQ
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CEO of S Polytech
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Minister of Foreign Affairs
Cho Tae-yul
- Cho Tae-yul is the second Minister of Foreign Affairs in the Yoon Suk-yeol administration. Born in 1955 in Yeongyang-gun, Gyeongsangbuk-do, he is the third son of poet Cho Ji-hoon. He graduated from Seoul Jungang High School and the Seoul National University School of Law. He also completed a master’s program at the same university. In 1979, he passed the 13th Foreign Service Examination. Afterward, he served in the Ministry of Foreign Affairs and Trade as the Deputy Permanent Representative to the Geneva Mission, Chair of the WTO Government Procurement Committee, Ambassador to Spain, and Advisor to the UN Development Cooperation Forum. During the Park Geun-hye administration, he served as the Second Vice Minister of Foreign Affairs in 2013 and as the Ambassador to the United Nations in 2016. He is recognized for his extensive experience in multilateral diplomacy and is also regarded as one of the top international trade experts in the Ministry of Foreign Affairs. He is known for his exceptional writing skills, gentle personality, and meticulous work ethic. In 2021, he published "The Power of Pride and Principles: A Sketch of a 40-Year Diplomatic Career in Trade Diplomacy," where he emphasized the importance of the "Korea-U.S. alliance." In 2019, while serving as the Ambassador to the United Nations, he stated, "I have lived my life striving to be a son who is not ashamed of his father, and my highest goal has been to live in a way that does not bring disgrace to my father." #ChoTaeYul #YoonSukYeol #ForeignAffairs #SouthKorea #Diplomacy #InternationalTrade #UNAmbassador #KoreaUSAlliance #ParkGeunHye #ChoJiHoon
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Minister of Foreign Affairs
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Chairman of YeaRimDang
Na Choon-ho
- Na Choon-ho is the Chairman and CEO of YeaRimDang. He was born on August 19, 1942, in Dalseong County, Daegu. After being discharged from the Air Force, he moved to Seoul in 1967, seeking to escape the hardships of rural life. While staying at an inn in Seoul, he was encouraged by a neighbor to work as a door-to-door salesman for children's books. Motivated by the desire to create and distribute quality books for children, he founded YeaRimDang in 1973. YeaRimDang's flagship series, the educational comic books for children titled "Why?" has sold over 80 million copies in South Korea, gaining immense popularity. In 2013, he expanded into the aviation industry by acquiring T'way Air, a low-cost carrier that was brought to Daegu through the city’s efforts, further strengthening his ties to his hometown. Na Choon-ho is regarded as a "first-generation publisher" who revolutionized the paradigm of the Korean publishing market. In the 1970s, when the concept of manuscript fees was virtually nonexistent, he paid writers KRW 1,000 (USD 0.72) per page and transformed the book distribution system from door-to-door sales, which was the norm at the time, to a bookstore-centered model. During his tenure as the president of the Korean Publishers Association, he laid the foundation for the modernization of the Korean publishing industry by introducing the POS (Point of Sale) system and ISBM (International Standard Book Number). #NaChoonho #YeaRimDang #Whyseries #Koreanpublishing #firstgenerationpublisher #TwayAir #POSsystem #ISBM #bookdistribution #modernization
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Chairman of YeaRimDang
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Chairman of Fine Besteel
Jang In-hwa
- Jang In-hwa is the chairman of Fine Besteel. He also serves as the chairman of its affiliates, Dongil Steel and Fine International. Fine Besteel is a steel company specializing in the manufacturing of hot-rolled and extruded products, particularly for shipbuilding. Jang was born on January 1, 1963, in Busan, as the son of Jang Young-soo, the founder of Dongil Steel. He graduated from Gyeongnam High School in Busan and Dong-A University with a degree in Trade. He also earned a master’s degree from Pusan National University’s Graduate School of International Studies. In 1985, he joined Dongil Steel, where he gained experience in various roles such as production, procurement, and sales. At the age of 30, in 1993, he became the CEO of Dongil Steel. Apart from inheriting his father’s company, Jang founded Fine International, Fine Besteel, and Fine Steel, growing them into mid-sized companies specializing in shipbuilding steel products. In July 2014, he successfully listed Fine Besteel on the KOSPI. He established a comprehensive shipbuilding production line encompassing Dongil Steel and Fine Besteel (shipbuilding equipment) to Daesun Shipbuilding (small and medium-sized ship manufacturing). Jang is known for his belief that "a company must coexist with its community," and he actively engages in various philanthropic activities. In 2018, he became the 141st member of the Honor Society in Busan. In 2021, he was elected as the 24th president of the Busan Chamber of Commerce and Industry and also served as the first civilian president of the Busan Sports Council. In 2023, Jang has been focusing on eco-friendly and digital transformation, making bold investments in building a robotics ecosystem and digital twin technology for DX (Digital Transformation). #JangInHwa #FineBesteel #DongilSteel #Busan #shipbuilding #steelindustry #corporateleadership #philanthropy #digitaltransformation #KOSPI
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Chairman of Fine Besteel
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CEO of Hanjoo Light Metal
Lee Yong-jin
- Lee Yong-jin is the President and CEO of Hanjoo Light Metal. Hanjoo Light Metal is a specialized company in aluminum die casting, manufacturing parts for automobiles and ships. He was born on June 7, 1974. After graduating from Hanyang University with a degree in Business Administration, he earned an MBA from the University of Illinois. He then joined Hanjoo Light Metal, which was led by his mother, Chairperson Jung Sam-soon, and took on the role of President. In 2021, he became the CEO of Hanjoo Light Metal. In 2024, he was appointed Honorary Consul of Slovakia. He has grown Hanjoo Light Metal, which he inherited from his father, Founder Lee Joong-hee, and his mother, Chairperson Jung Sam-soon, into a mid-sized company with sales in the KRW 200 billion (US$ 144.2 million) range. As the Honorary Consul of Slovakia, he is serving as a bridge between South Korea and Slovakia. #LeeYongjin #HanjooLightMetal #Slovakia #HonoraryConsul #AutomotiveIndustry #Shipbuilding #BusinessLeader #SouthKorea #AluminumDieCasting #KoreaSlovakiaRelations
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CEO of Hanjoo Light Metal
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Chairman of NVH Korea
Koo Ja-kyum
- Koo Ja-kyum is the Chairman and CEO of NVH Korea. He also serves as the CEO of subsidiaries KNSOL and Samhyun B&E, and as an internal director of GH Advanced Materials. Koo Ja-kyum was born on January 26, 1959, in Seoul. He graduated from Seoul Dongbuk High School and earned a bachelor's degree in Mechanical Engineering from Hanyang University. He then obtained a master's degree in Mechanical Engineering from the same university's graduate school and a Ph.D. in Mechanical Engineering from the University of Iowa in the United States. After working at Hyundai Motor Company and Ssangyong Motor Company, he joined Hanil E-Hwa (now Seoyon) before becoming the major shareholder of NVH Korea by acquiring the former Ilyang Industry, marking his independence. He has grown NVH Korea into a leading domestic company in the field of NVH (Noise, Vibration, Harshness) components, which block noise, vibration, and discomfort in vehicles. He views electric vehicle battery pack modules, semiconductor and display clean rooms, and battery dry rooms as new growth drivers and is focused on expanding the market in these areas. #NVHKorea #KooJak-yum #automotiveindustry #electricvehicles #mechanicalengineering #cleanrooms #batterydryroom #semiconductor #Seoyon #HanyangUniversity
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Chairman of NVH Korea
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CEO of HDC Hyundai Development Company
Choi Ik-hoon
- Choi Ik-hoon is the Vice President and CEO of HDC Hyundai Development Company. He has established a joint representative system with Vice President Kim Hoi-yen, the Chief Financial Officer (CFO), and Vice President Cho Tae-jea, the Chief Safety Officer (CSO). He is focusing the company's efforts on the development and sales of the Kwangwoon University Station area development project in Nowon-gu, Seoul. He is also dedicating his efforts to completing the demolition and reconstruction of Gwangju Hwajeong I-Park to restore the I-Park brand and market trust. He was born on July 15, 1968, in Seoul. He graduated from Youngdong High School in Seoul and Yonsei University with a degree in Applied Statistics. He earned a Master’s degree in Marketing Communications from Westminster University in the United States. He began his career at Hyundai Motor Company. After moving to Hyundai Development Company, he served as the Head of Management Support at Hyundai I-Park Mall, the Head of Management Support at iControls, and the Head of Procurement at HDC Hyundai Development Company. He served as the CEO of HDC I-Park Mall and Realty R114 before being appointed CEO of HDC Hyundai Development Company in 2022. He has extensive experience in various fields such as construction, real estate, and distribution. He is well-versed in the internal affairs of HDC Group's affiliates. #HDC #ChoiIkhoon #HyundaiDevelopment #GwangwoonUniversity #HwajeongIPark #construction #realestate #CEO #Korea #YonseiUniversity
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CEO of HDC Hyundai Development Company
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Minister of Environment
Kim Wan-sup
- Kim Wan-sup is the Minister of Environment. He is focusing on addressing various issues related to the climate crisis, including the 2035 Nationally Determined Contributions (NDC). He is also striving to lead the establishment of an international plastic convention as the chair country of the UN Plastic International Convention meeting. He was born on April 19, 1968, in Wonju, Gangwon-do. He graduated from Seoul Youngdong High School and majored in Business Administration at Korea University. In 1993, he obtained a master's degree from the Graduate School of Public Administration at Seoul National University and earned a Ph.D. in Economics from the University of Missouri in 2005. He began his public service career after passing the Higher Civil Service Examination in 1992. He held various positions in the Ministry of Planning and Budget and the Ministry of Strategy and Finance, including Head of the Private Investment Management Team, Director of the Labor and Environment Budget Division, Social Budget Review Officer, Comprehensive Budget Review Officer, and Budget Office Director. In July 2023, he was appointed the 2nd Vice Minister of the Ministry of Strategy and Finance, and in April 2024, he ran for the 22nd National Assembly election in the Wonju-eul constituency in Gangwon-do but was not elected. In July 2024, he was appointed as the second Minister of Environment in the Yoon Suk-yeol administration. He is recognized as a budget expert, having held key budget-related positions as an economic official. However, there are evaluations that he lacks expertise as the Minister of Environment. #KimWanSup #MinisterOfEnvironment #ClimateCrisis #2035NDC #UNPlasticConvention #Wonju #GangwonDo #KoreaUniversity #SeoulNationalUniversity #UniversityOfMissouri #YoonSukYeolAdministration
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Minister of Environment
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Honorary Chairman of Yangjisa
Lee Bae-goo
- Lee Bae-goo is the founder and honorary chairman of Yangjisa. He was born on January 20, 1949, in Gongju, Chungcheongnam-do. He graduated from Konkuk University with a degree in law. After graduating from university, he worked at Anseong Glass Industry before founding Yangjisa in 1976 and starting the diary business. In the mid-1970s, when the culture of record-keeping was not well developed in South Korea, he became the first in the country to produce corporate notebooks and diaries in earnest. Yangjisa's slogan, "The Platform of Thoughts, Yangji Diary," emphasizes the diary's function in driving the growth of individuals and companies through the recording of thoughts. In line with the "paperless era," he is actively seeking business diversification. #LeeBaeGoo #Yangjisa #founder #honorarychairman #KonkukUniversity #diarybusiness #corporatenotebooks #recordkeeping #businessdiversification #paperlessera
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Honorary Chairman of Yangjisa
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President of Dongguk University
Yun Jae-woong
- Yun Jae-woong is the president of Dongguk University. His term started on March 1, 2023, and lasts for four years. He is a specialist in Midang literature, having studied directly under the poet Seo Jeong-ju (Midang). He presents "Dongguk contributing to humanity through innovative imagination" as his blueprint. Born in 1961 in Tongyeong, Gyeongsangnam-do, Yun graduated from Yongsan High School in Seoul and earned his bachelor's, master's, and doctoral degrees in Korean literature from Dongguk University. In 2003, he was appointed as a professor in the Department of Korean Language Education at his alma mater, Dongguk University's College of Education, and served as the head of strategic public relations, dean of the College of Education, and dean of the Graduate School of Education. He has been active as the president of the Dongak Korean Literature Society and the Literature and Environment Society, and currently serves as the secretary-general of the Midang Memorial Society. Since becoming president, he has focused on expanding the university's finances by promoting mergers and acquisitions (M&A) with small and medium-sized universities in the Seoul metropolitan area and increasing enrollment in advanced new technology fields. #DonggukUniversity #YunJaeWoong #MidangSeoJeongJu #KoreanLiterature #UniversityPresident #HigherEducation #AcademicLeadership #Innovation #UniversityFinance #SeoulEducation
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President of Dongguk University
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Head of DS at Samsung Electronics
Jun Young-hyun
- Jun Young-hyun is the Vice Chairman and Head of the Device Solutions (DS) Division at Samsung Electronics. He is focused on improving the high-bandwidth memory (HBM) business, an area where SK Hynix has taken the lead. Utilizing the capabilities of an integrated device manufacturer (IDM), he aims to turn the tables with the sixth-generation HBM4. He is dedicated to technological development to stay ahead in the foundry competition with TSMC. Normalizing the System LSI business is also considered a major task. He was born on December 20, 1960, in Seoul. He graduated from Baejae High School and Hanyang University with a degree in electronic engineering. He earned his master's and doctorate degrees in electronic engineering from the Korea Advanced Institute of Science and Technology (KAIST). He worked as a researcher on the DRAM development team at LG Semiconductor. When LG Semiconductor merged with Hyundai Electronics, he moved to Samsung Electronics. At Samsung Electronics, he served as the design team leader and development manager in the DRAM development office. After being promoted to Vice President, he held roles as head of flash development, head of memory strategic marketing team, and head of the memory division. He moved to Samsung SDI and served as CEO for five years. Subsequently, he was appointed as the Chairman of the Board of Directors at Samsung SDI, which led to speculation that he might step back from frontline management. However, he was recognized for elevating the battery business to a global level and was appointed Vice Chairman and Head of Future Business Planning at Samsung Electronics. As the semiconductor crisis intensified, he was appointed Head of the DS Division at Samsung Electronics on May 21, 2024, as a "relief pitcher." This marked an unusual career move, returning to Samsung Electronics as a responsible executive after moving to Samsung SDI. He is known for his practical approach and meticulous personality that does not tolerate mistakes. #JunYounghyun #SamsungElectronics #DSDivision #Semiconductor #HBM #IDM #TSMC #SystemLSI #SamsungSDI #KAIST
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Head of DS at Samsung Electronics
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CEO of Daea TI
Choi Jin-woo
- Choi Jin-woo is the founder of Daea TI. He serves as the CEO and Chairman of the Board of Daea TI. He is focused on securing orders for Daea TI and is also interested in finding new growth drivers. He was born on June 26, 1961. After graduating from the Department of Electrical Signals at Railroad High School and the Department of Electrical Engineering at Chung-Ang University, he worked at the Korean National Railroad and LG Industrial Systems (now LS Electric). He then established Inno Digital (now Daea TI) and became its CEO. In 2021, he stepped down as CEO and only retained the position of Chairman of the Board, but in 2024, he resumed the role of CEO. He has served as Chairman of the Software Mutual Aid Association, Director of the Korea Urban Railway Association, Director of the Korea Railway Signal Technology Association, and Vice President of the Korean Society of Railway. He is a railway expert who has dedicated 50 years to the railway sector. He led the localization of railway signal technology. #ChoiJinwoo #DaeaTI #railwaysignals #Koreanrailways #CEO #boardchairman #LGIndustrialSystems #LSElectric #railwayexpert #localization
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CEO of Daea TI
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Chairman of SL Corporation
Lee Choong-kon
- Lee Choong-kon is the Chairman of SL Corporation. As a second-generation owner, his father was the late honorary chairman Lee Hae-joon (1920-2003), the founder of SL. He was born on August 5, 1944, in Daegu. He graduated from Daegu Gyeongbuk National University High School and Yonsei University with a degree in Mechanical Engineering. After graduating from university, he joined Samlip Industries, the predecessor of SL, and has led the auto parts business. He grew SL into the largest automotive lamp company in South Korea. In 2021, he stepped down as CEO and handed over management to his son, Vice Chairman Lee Sung-yeop. He pursues a management philosophy that values people first, known as 'human-first management.' He sees electric vehicle parts and advanced electronic products as future growth drivers. #LeeChoongkon #SLCorporation #automotive #management #humanfirst #electricvehicles #Daegu #YonseiUniversity #leadership #business
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Chairman of SL Corporation
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President of Hanwha Life Insurance
Kim Dong-won
- Kim Dong-won is the President of Hanwha Life Insurance. As the Chief Global Officer (CGO), he leads Hanwha Life Insurance's global business operations. Previously, he served as the Chief Digital Strategy Officer (CDSO), where he spearheaded the digital transformation of Hanwha Group's financial affiliates, including Hanwha Life Insurance. Under the leadership of CEO Yeo Seung-joo, he is expanding his management activities by overseeing new business investments at Hanwha Life Insurance. He was born on August 20, 1985, in Seoul, as the second son of Kim Seung-yeon, the Chairman of Hanwha Group. He graduated from Saint Paul Preparatory School in the United States and Yale University with a degree in East Asian Studies. After joining Hanwha L&C, he became the head of the Digital Team at Hanwha Group's Corporate Planning Office. Moving to Hanwha Life Insurance, he has worked in various capacities including Innovation Planning, Future Innovation, Global Operations, and as Head of Future Innovation, discovering future growth opportunities for Hanwha Life Insurance. He has a keen interest in fintech and regularly participates in international events such as the Davos Forum and Boao Forum to expand his overseas network. Among the three sons of Chairman Kim Seung-yeon, he is said to have the most similar personality to his father. #HanwhaLife #KimDongwon #digitaltransformation #fintech #globalbusiness #innovation #futuregrowth #YaleUniversity #HanwhaGroup #internationalnetwork
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President of Hanwha Life Insurance
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Chairman of HanmiGlobal
Kim Jong-hoon
- Kim Jong-hoon is the chairman of HanmiGlobal. HanmiGlobal is a company specializing in Construction Management (CM). He founded the company with the goal of modernizing the Korean construction industry and creating a 'Great Work Place' (GWP). He was born on September 24, 1949, in Geochang, Gyeongnam. He graduated from Seoul National University High School and majored in architecture at Seoul National University. He worked at the Hanssem Architecture Research Institute and served as the Quality and Safety Director at Samsung Construction (now Samsung C&T Corporation's construction division). On June 18, 1996, he established Hanmi Construction Technology (now HanmiGlobal) as a joint venture with Parsons of the United States. Since 2005, he has been selected as one of the top 100 CEOs leading Korea. He pioneered the introduction of Construction Management (CM, PM) techniques in Korea, contributing to the modernization of the construction industry. He has successfully completed over 2,900 PM projects domestically and internationally and is also interested in solving social issues such as low birth rates. #KimJonghoon #HanmiGlobal #ConstructionManagement #CM #PM #Top100CEOs #KoreanConstruction #GreatWorkPlace #Architecture #SocialIssues
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Chairman of HanmiGlobal
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CEO & Chairman of Koas
Roh Jae-gyun
- Roh Jae-gyun is the CEO and Chairman of Koas. He was born on September 11, 1947, in Busan. He graduated from Dong-A University with a degree in Mechanical Engineering. While working as an engineer at LG Electronics, he encountered advanced office environments incorporating Office Automation (OA) systems during a business trip to the United States, which inspired him to start his own business. In 1984, he founded 'Korea OA', the predecessor of Koas, and introduced the nation's first ubiquitous office furniture integrating IT into furniture. In 2011, to facilitate smooth overseas expansion, he renamed the company to 'Koas' (an abbreviation of Korea OA System) and that same year, he became the CEO and Chairman of Koas. Roh Jae-gyun is focused on customer-centric management, with the vision of making Koas a 'Happy Office Environment Partner'. #Koas #RohJaeGyun #CEO #Chairman #OfficeFurniture #OfficeAutomation #BusinessExpansion #CustomerCentric #HappyOffice #MechanicalEngineering
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CEO & Chairman of Koas
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Vice Chairman of SK On
Yu Jeong-joon
- Yu Jeong-joon is the Vice Chairman and CEO of SK On. He leads SK On as a co-CEO along with President and CEO Lee Seok-hee. He also serves as the CEO of SK Americas. Yu is striving to complete large-scale facility investments stably and expand global operations to achieve early profitability for SK On. He was born on December 20, 1962, in Seoul. Yu graduated from Kyunggi High School and studied Business Administration at Korea University. He earned a Master's degree in Accounting from the University of Illinois at Urbana-Champaign. He began his career as an accountant at the New York office of Deloitte & Touche. After working at McKinsey and LG Construction, he joined the SK Group. Within the SK Group, Yu held various positions including President of the Resource & Chemicals (R&C) division of SK Energy, CEO of SK Lubricants, President of the Reflecting & Marketing (R&M) division of SK Energy, Head of the Global & Growth (G&G) Promotion Team of SK Group, CEO of SK E&S, and Chairman of the Global Growth Committee and Energy Chemical Committee of the SK Supex Council. During the management rights dispute with hedge fund Sovereign, Yu played a pivotal role as the Chief Financial Officer in defending the management rights of the SK Group's owner family. He has also worked closely with Chey Jae-won, the Senior Vice Chairman of SK Innovation and brother of SK Group Chairman Chey Tae-won, for a long time. Yu is known for his calm and rational decision-making. He enjoys reading and has a keen interest in the humanities. #SKOn #SKGroup #YuJeongjoon #SKAmericas #BusinessLeadership #GlobalOperations #FinancialManagement #CorporateStrategy #CheyTaeWon #CheyJaeWon
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Vice Chairman of SK On
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CEO & Chairman of A-PRO
Lim Jong-hyun
- Lim Jong-hyun is the Chairman and CEO of A-PRO. He concurrently holds the positions of CEO for subsidiaries such as Nanjing A-PRO Technology Co., Ltd., A-PRO Semicon, A-PRO USA, A-PRO Partners, and EchoVolt, and serves as the Chairman of the Board for GreenVolt. He focuses on the localization strategy for secondary battery activation equipment, enhancing the company's ability to meet customer demands. Additionally, he is concentrating on the gallium nitride (GaN) semiconductor business of the subsidiary A-PRO Semicon. He was born on February 25, 1965. After working as a researcher at a lab developing chargers, he founded A-PRO in 2000 and became its CEO. He later obtained a Master’s degree in Business Administration from Sungkyunkwan University and a Ph.D. in Electronic Engineering from Hoseo University. He places great importance on technological innovation, growing A-PRO into a secondary battery activation equipment company based on proprietary power conversion technology. #LimJonghyun #A-PRO #secondarybattery #localizationstrategy #semiconductor #GaNtechnology #technologyinnovation #SungkyunkwanUniversity #HoseoUniversity #powerconversiontechnology
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CEO & Chairman of A-PRO
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CEO of Se'A Mechanics
Cho Chang-hyun
- Cho Chang-hyun is the CEO of Se'A Mechanics. He expanded Se'A Mechanics' production capacity through new factory expansion investments, thereby responding to increased order volumes. He was born in February 1969. Cho graduated from Dong-A University with a degree in Metallurgical Engineering and obtained a master's degree in Materials Engineering from Pusan National University. He completed a doctoral course in Information and Electronic New Materials Engineering at Kyung Hee University and the Advanced Management Program at Seoul National University. He worked as a team leader at LG Electronics' Production Technology Institute for about 10 years before founding the semiconductor laser processing equipment manufacturer HPK (now HT Holdings) in 2008, becoming its CEO. In 2020, he acquired the aluminum die-casting specialist company Se'A Mechanics and became its CEO. Cho is active as a director of the Korea KOSDAQ Association, a member of the Korea Foundry Society and the Korea Die Casting Society, and a vice president of the Daegu Gyeongbuk Technologists' Association. He is an owner from a major corporation and aims to grow Se'A Mechanics into a smart manufacturing-based unicorn company. #ChoChanghyun #SeAMechanics #CEO #factoryexpansion #LG #HTHoldings #KOSDAQ #KoreaFoundrySociety #smartmanufacturing #unicorncompany
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CEO of Se'A Mechanics
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CEO of Samsung Asset Management
Seo Bong-kyun
- Seo Bong-kyun is the CEO of Samsung Asset Management. He is working hard to solidify the domestic status of Samsung Asset Management, which manages assets exceeding KRW 360 trillion (US$ 259.5 billion), and to elevate it to a global advanced management company. He was born on September 25, 1967. He graduated from Hanyang University with a degree in Urban Engineering and received a master's degree from Yonsei University's Graduate School of Business. He joined Samsung Securities as the Head of the Asset Management Division after working at Morgan Stanley, Citigroup, and Goldman Sachs. After serving as the Head of Sales & Trading at Samsung Securities, he was appointed CEO of Samsung Asset Management. As an asset management expert from foreign securities firms, he broke the tradition of Samsung Life Insurance alumni leading Samsung Asset Management. He is credited with enhancing the global competitiveness of Samsung Asset Management. He has a quiet and steady work style that delivers results. #SamsungAssetManagement #SeoBongkyun #assetmanagement #globalfinance #urbanengineering #HanyangUniversity #YonseiUniversity #MorganStanley #GoldmanSachs #SamsungSecurities
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CEO of Samsung Asset Management
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CEO of Korea Securities Depository
Lee Soon-ho
- Lee Soon-ho is the CEO of the Korea Securities Depository. Despite controversy over parachute appointments, he has taken office as the CEO of the Korea Securities Depository and is pushing new businesses such as the issuance of security token offerings (STO) and the establishment of a government bond-related system. Born in 1967, he graduated from Dongin High School in Busan and the Department of Economics at Seoul National University. After obtaining a master's degree in economics from the graduate school of Seoul National University, he received a Ph.D. in economics from the graduate school of the University of Illinois in the United States. He began his career as a research fellow at the Financial Industry and System Research Department at the Korea Institute of Finance and went on to hold positions such as Director of the Financial Consumer Research Center, Director of the Digital Finance Research Center, Head of the Banking and Insurance Research Department 2, and Head of the Banking Research Department. He participated as a member of the economic think tank in President Yoon Suk-yeol's presidential campaign and served as a non-standing advisor to the Presidential Transition Committee. He began his term as CEO of the Korea Securities Depository in 2023. He is a scholar-like administrator who has been engaged in research activities for a long time at the Korea Institute of Finance. #LeeSoonho #KoreaSecuritiesDepository #STO #economicpolicy #finance #YoonSukyeol #securitytokens #financialresearch #KIF #economicadvisor
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CEO of Korea Securities Depository
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CEO of Chosun Welding
Chang Won-young
- Chang Won-young is the Chairman and CEO of CS Holdings. He also serves as the Chairman and CEO of Chosun Welding, a major subsidiary of CS Holdings. CS Holdings, a welding material manufacturer, was founded in 1949. In 1965, it produced the country's first covered arc welding rods. Chang Won-young's great-grandfather was the late Chairman Chang Kyung-ho, the founder of Chosun Welding Industry, the predecessor of CS Holdings. Chang Won-young is the fourth-generation owner of CS Holdings. He was born on August 26, 1975. He graduated from Kyunggi High School in Seoul and Boston University in the United States with a degree in Economics. After graduation, following the death of his father, the late Chang Se-myung, former president of Chosun Welding, he began participating in the management of Chosun Welding Industry in 2005. In 2010, he transformed Chosun Welding Industry into a holding company structure and changed the company name from Chosun Welding Industry to CS Holdings. He also established the Chosun Welding Corporation through a spin-off. Since March 2022, he has been serving as the Chairman and CEO of both CS Holdings and Chosun Welding. Through consistent investment in research and development, he has introduced over 250 different welding products, contributing to various industries in Korea. #ChangWonyoung #CSHoldings #ChosunWelding #weldingmaterials #Koreabusiness #corporateleadership #holdingcompany #businesshistory #innovation #industrialcontribution
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CEO of Chosun Welding
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CEO of Binggrae
Jeon Chang-won
- Jeon Chang-won is the CEO of Binggrae. In early 2020, Binggrae caused a significant shift in the ice cream industry by acquiring Haitai Ice Cream (the ice cream division of Haitai Confectionery and Foods). Since his appointment as CEO, Jeon Chang-won has focused on business diversification and global market expansion. He is working on pioneering overseas markets and overcoming the limitations of being a latecomer in the health functional food market. He was born on September 25, 1961 (lunar calendar). He graduated from Geochang High School in Gyeongnam and Busan National University with a degree in Business Administration. He joined Binggrae in 1985. Having served in the company for over 30 years, he has held positions such as Director of the Talent Development Center and Management Executive, making him a 'true Binggrae man.' In his first year as CEO in 2019, he achieved the highest sales since the company's founding and the highest operating profit since 2014, gaining attention both inside and outside the company. To diversify the business, he launched health functional food brands for women and men and introduced 'TFT Mall,' an online specialty sales channel. He is pioneering overseas markets, focusing on the United States, China, and Vietnam. He demonstrates a rational and gentle management style. He has extensive experience in HR management, having held positions such as Director of the Talent Development Center and Management Executive. #JeonChangwon #Binggrae #CEO #HaitaiIceCream #businessdiversification #globalmarketexpansion #healthfunctionalfoods #TFTMall #overseasmarkets #rationalmanagement
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CEO of Binggrae
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Chairman of Snet Systems
Park Hyo-dae
- Park Hyo-dae is the Chairman of Snet Systems. He serves as the chairman of the board but is not the CEO. Park Hyo-dae was born on March 20, 1954, in Busan. He graduated from Busan Dong-A High School and Seoul National University with a degree in Electrical Engineering. He earned a master's degree in Electrical Engineering from the University of Pennsylvania and a doctorate in Electrical Engineering from Purdue University. After graduating from college, he joined Samsung Group and held various positions such as Head of the Computer Application Research Lab at Samsung Advanced Institute of Technology, Head of the CAE Center at Samsung Group, Head of the Business Division and Director of the Information Technology Research Institute at Samsung SDS. He left Samsung in 1994 and took over his father's business, managing it for four years. In 1998, he founded a company called Sara Information. In February 1999, he became the CEO of Snet Systems, which was established by spinning off from Samsung Electronics' Network Division. He has since grown Snet Systems into a leading mid-sized company in the IT infrastructure and services sector in Korea, specializing in SI (System Integration), NI (Network Integration), hardware and software maintenance, among other areas. He is also focusing on integrating artificial intelligence (AI) into existing IT infrastructure and services. #ParkHyoDae #SnetSystems #Chairman #Samsung #ITInfrastructure #SystemIntegration #NetworkIntegration #ArtificialIntelligence #SeoulNationalUniversity #PurdueUniversity
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Chairman of Snet Systems
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Chairman of FSC
Kim Byoung-hwan
- Kim Byoung-hwan is the 10th Chairman of the Financial Services Commission. He was born in 1971 in Masan, Gyeongsangnam-do. He graduated from Busan Sajik High School and Seoul National University with a degree in Economics (Class of '90). In 1993, he passed the Higher Civil Service Examination and began his career in public service. In 2005, he earned a Master's degree in Business Administration from the University of Birmingham in the United Kingdom. He is the youngest chairman of the Financial Services Commission and rapidly advanced to the position of First Vice Minister at the Ministry of Economy and Finance. He is a veteran economic bureaucrat who has gained extensive experience in macroeconomics and policy by holding various key positions within the Ministry of Economy and Finance. #KimByounghwan #FinancialServicesCommission #youngestchair #economicbureaucrat #MinistryofEconomyandFinance #macroeconomics #policyexperience #publicservice #SeoulNationalUniversity #UniversityofBirmingham
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Chairman of FSC
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CEO of Hankook Cosmetics Manufacturing
Lee Yong-joon
- Lee Yong-joon is the Vice Chairman and CEO of Hankook Cosmetics Manufacturing. He also serves as the CEO of Hankook Cosmetics, which was newly established through a personnel split in 2010, and as the CEO of The Saem International. He is the eldest son of Kim Sook-ja, the Chairman, and the daughter of Kim Nam-yong, Honorary Chairman and one of the co-founders of Hankook Cosmetics. Additionally, Lee Yong-joon is the nephew-in-law of Lim Chung-heon, Chairman and son of another co-founder, Lim Kwang-jung, Honorary Chairman. Chairman Lim Chung-heon is married to Kim Ok-ja, the second daughter of Honorary Chairman Kim Nam-yong. He was born on April 3, 1962. He graduated from Kyungbock High School in Seoul and received his bachelor's degree in English Literature from Hankuk University of Foreign Studies. He obtained a Master’s degree in English Literature from Michigan State University in the United States. He has served as Vice President and President of the advertising agency Daebo Planning, and has held positions as Vice President, CEO, and now Vice Chairman and CEO of Hankook Cosmetics. For 15 years, he has been leading the management of the Hankook Cosmetics group, which has a 60-year tradition built through co-founders and in-law management, and has been at the forefront of developing new technologies in domestic cosmetics manufacturing. #LeeYongjoon #HankookCosmetics #CEO #KoreanCosmetics #TheSaem #KimNamYong #LimChungHeon #CosmeticsIndustry #KBeauty #CorporateLeadership
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CEO of Hankook Cosmetics Manufacturing
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CEO of Hyundai Steel
Seo Gang-hyun
- Seo Gang-hyun is the President and CEO of Hyundai Steel. He also serves as the Chairman of the Board of Directors of Hyundai Steel. Amid a downturn in the steel market, he was appointed as the CEO of Hyundai Steel. He focuses his management efforts on expanding a stable, profitability-centered business foundation with the goal of creating a "sustainable and eco-friendly steel company." He was born on January 5, 1968. He graduated from Seoul National University with a degree in International Economics. He has held positions such as Head of Management Control and Head of Accounting at Hyundai Motor Company, and Head of Finance at Hyundai Steel. In 2021, he returned to Hyundai Motor Company as Head of Planning and Finance, where he played a key role in strategic decision-making and setting the mid- to long-term direction of the company before becoming the CEO of Hyundai Steel. He is considered one of the leading financial experts within the Hyundai Motor Group. #HyundaiSteel #financialexpert #SeoGanghyun #HyundaiMotorGroup #CEO #strategicmanagement #sustainablesteel #businessleadership #SeoulNationalUniversity #corporategovernance
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CEO of Hyundai Steel
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CEO of RFTech
Lee Jin-hyung
- Lee Jin-hyung is the CEO of RFTech. He is responsible for managing RFTech, which operates in the information technology (IT) and biotechnology sectors. Lee Jin-hyung was born on July 13, 1973. He graduated from Incheon University with a degree in Trade and obtained a master's degree from Yonsei University's Graduate School of Public Health. After completing his studies, he worked in small-scale trade brokerage and then in overseas marketing at a plastic surgery clinic in Gangnam-gu, Seoul. In 2015, he founded the cosmetics company Jayjun Cosmetic and achieved significant success in a short period by exporting mask packs. In 2019, he acquired RFTech, a company that produces mobile phone chargers and cables, as well as 5G base station antenna modules, and became its CEO. After a process of organizing shares, he ended his relationship with Jayjun Cosmetic. He is achieving results through aggressive business expansion and corporate renewal. He is focusing on expanding the biotechnology business, including fillers and botulinum toxin for skin beauty. #LeeJinhyung #RFTech #JayjunCosmetic #biotechnology #IT #CEO #business #expansion #cosmetics #5G
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CEO of RFTech
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Chairman of Hoban Group
Kim Sun-kyu
- Kim Sun-kyu is the chairman of Hoban Group. As a professional manager, he oversees the management of Hoban Group and focuses on enhancing the competitiveness of the group's core construction business. He is also involved in expanding the overseas business of the group's affiliate, Taihan Cable & Solution. He was born on August 17, 1952, in Boryeong, Chungnam. He graduated from Deoksu Commercial High School in Seoul and majored in Business Administration at Myongji University. He earned a master's degree from the Graduate School of Business Administration at Seoul National University. He joined Hyundai Construction and worked there for over 30 years before resigning as vice president. He has extensive experience in overseas projects and received the Gold Tower Order of Industrial Service Merit for his contributions to the overseas plant business. He served as president of Korea Housing Guarantee, the predecessor of Korea Housing and Urban Guarantee Corporation (HUG). He joined Hoban Group in 2020, became the overall chairman in 2021, and was appointed chairman in 2022. He has experience in all aspects of the housing business, including housing construction, housing sales, and housing finance. During his tenure as president of Korea Housing Guarantee, he visited construction sites nationwide where sale guarantees were issued. He is praised for his excellent work ability and organizational control, and he is known for his smooth communication with subordinates. #HobanGroup #KimSunKyu #ConstructionIndustry #BusinessManagement #OverseasExpansion #HousingBusiness #Leadership #OrganizationalControl #CommunicationSkills #IndustrialServiceMerit
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Chairman of Hoban Group
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CEO of Webtoon Entertainment
Kim Jun-koo
- Kim Jun-koo is the founder and CEO of Webtoon Entertainment. He also serves as an internal director of the web novel platform Munpia. Webtoon Entertainment is a North American subsidiary established by Naver Webtoon to expand overseas. In May 2020, Naver Webtoon changed its headquarters to Webtoon Entertainment, the North American subsidiary, and incorporated it as a subsidiary. Kim Jun-koo also serves as the CEO of Naver Webtoon. He aims to develop Webtoon Entertainment into a global intellectual property (IP) company akin to Disney. He was born on May 12, 1977. He graduated from Seoul National University with a degree in Chemical and Biological Engineering in 2007. In 2004, he joined Naver as a developer. Starting as a regular employee, he led the then-nascent Naver Webtoon service in 2004, driving the popularization of webtoons. His long-standing hobby of comics led him to dive into the Naver Webtoon service. He considers affection and passion as core values in management. #KimJunkoo #WebtoonEntertainment #NaverWebtoon #Munpia #IPCompany #GlobalExpansion #SeoulNationalUniversity #ChemicalEngineering #Developer #ComicsHobby
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CEO of Webtoon Entertainment
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Chairman of Hyundai Department Store
Chung Ji-sun
- Chung Ji-sun is the Chairman of Hyundai Department Store Group. He also serves as the CEO of Hyundai Department Store. Aiming for a total sales target of KRW 40 trillion (US$ 28.8 billion) by 2030, he is pursuing new investments and mergers and acquisitions (M&A) while actively engaging in new businesses in the healthcare, bio, eco-friendly, and senior-friendly sectors. In the distribution sector, he is focusing on turning the duty-free business into a new growth engine and striving to create synergy by expanding distribution channels for food, fashion, and furniture in the manufacturing sector. Born on October 20, 1972, in Seoul, he is the eldest son of Chung Mong-keun, Honorary Chairman of Hyundai Department Store, and the grandson of Chung Ju-yung, the founder of Hyundai Group. After graduating from Kyungbock High School in Seoul, he attended Yonsei University, majoring in sociology, before studying at Harvard University in the United States. He joined Hyundai Department Store as a manager in the management department, and progressed through roles including Director of Planning, Vice President in charge of planning and management, and General Vice Chairman of Hyundai Department Store Group. He became Vice Chairman in his early 30s and was appointed Chairman at the age of 35, initially demonstrating a cautious management approach. However, he gradually showed enthusiasm for mergers and acquisitions, acquiring Livart, Handsome, SK Networks' fashion division, Hanwha L&C, Hyundai Bioland, and Zinus. He is expanding the duty-free business by opening stores in Dongdaemun and Incheon Airport following the Trade Center branch of Hyundai Department Store. Through the fashion subsidiary Handsome, he is diversifying the business by starting a cosmetics business. He shows warm leadership by communicating freely with employees. #Hyundai #DepartmentStore #ChungJiSun #Chairman #BusinessExpansion #Healthcare #BioIndustry #EcoFriendly #SeniorFriendly #MergersAndAcquisitions
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Chairman of Hyundai Department Store
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Chairman of Hanchang Paper
Kim Seung-han
- Kim Seung-han is the Chairman and CEO of Hanchang Paper. He was born on October 6, 1956, in Busan, as the son of Kim Jong-seok, the honorary chairman and founder of Hanchang Paper. He graduated from Busan High School and Sungkyunkwan University with a degree in German Language and Literature. After graduating from university, he worked at Hanchang Group, the predecessor of Hanchang Paper, and became the Chairman and CEO of Hanchang Paper in 2005. Hanchang Paper was established in December 1973. The company engages primarily in the manufacturing and sale of paper products. It has led the upgrading of packaging paper by introducing the country's first all-pulp dedicated manufacturing facilities. Kim Seung-han is committed to environmentally friendly management. Hanchang Paper promotes its eco-friendly brand "Greenus," producing environmentally friendly products using biodegradable materials. #KimSeungHan #HanchangPaper #EnvironmentalManagement #Greenus #EcoFriendly #PackagingPaper #CorporateLeadership #SustainableBusiness #PaperIndustry #EnvironmentalResponsibility
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Chairman of Hanchang Paper
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Chariman of Woojin I&S
Hong Pyeong-woo
- Hong Pyeong-woo is the Chairman of Woojin I&S and also its founder. Woojin I&S is a specialized machinery company that produces and installs high-tech machinery for industrial facilities, as well as HVAC and fire protection systems for buildings. Hong Pyeong-woo also serves as the Chairman of One Can Networks, an online platform for construction equipment materials. He is the former Chairman of Shilla Myunggua. He was born on June 2, 1944, in Sinuiju, North Pyongan Province. He graduated from Boseong High School in Seoul in 1963 and from Dongguk University with a degree in Business Administration in 1970. He worked at Gongdong Industries from 1970 to 1974. On January 27, 1975, he founded Woojin Equipment Co., Ltd. and served as CEO until March 2020. In 1984, he acquired the bakery business rights of Hotel Shilla’s confectionery division and expanded it into the bakery chain Shilla Myungga. In 2001, he launched an online marketplace called e-Market Place, leading a transformation in the distribution of equipment materials. He is a self-made entrepreneur who has demonstrated his managerial capabilities in a wide range of industries, from construction equipment manufacturing to e-commerce and the bakery business. #HongPyeongwoo #WoojinINS #OneCanNetworks #ShillaMyungga #construction #HVAC #fireprotection #bakery #ecommerce #entrepreneur
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Chariman of Woojin I&S
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CEO of SJ Group
Lee Ju-young
- Lee Ju-young is the CEO of SJ Group. SJ Group is a comprehensive fashion company that outsources the production of Kangol hats, among other items. The company focuses on creating new value through 'rebranding,' which involves reinterpreting existing brands. Lee Ju-young was born on November 5, 1967. He graduated from Myongji University with a degree in Business Administration and obtained a Master's degree in Business Administration from California State University in 2015. He worked on overseas business planning at 'Samtan' and served as an investment manager at 'Incubation Venture Capital' and business director at 'DNA Limited Helen Kaminski.' In 2008, he founded Special Joint Group (now SJ Group) and became its CEO. He has an exceptional eye for brands. #LeeJuYoung #SJGroup #Kangol #rebranding #fashionindustry #CEO #businessgrowth #MyongjiUniversity #CaliforniaStateUniversity #brandmanagement
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CEO of SJ Group
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Chairman of Aluko
Park Do-bong
- Park Do-bong is the Chairman of Aluko. He serves as an in-house director for both Aluko and KPTU. He has stepped down from the position of CEO. Starting under challenging conditions, he grew Aluko, an aluminum materials company, into a mid-sized enterprise, exemplifying a self-made business leader. He was born on November 3, 1960, in Geumsan County, Chungcheongnam-do. He graduated from Daejeon Commercial High School and Mokwon University with a degree in Commercial Education. After working in a metal heat treatment factory, he founded Jang-An General Heat Treatment (now KPTU) in 1988. In 2002, he acquired Dongyang Steel (now Aluko), which was up for sale under court management, and normalized its operations. He is the driving force behind transforming Aluko's aluminum business, which was primarily focused on architectural window materials, into a company that produces high-value-added parts and materials for advanced industries such as electric and electronics, transportation machinery, and solar energy. He is investing in and expanding the market for electric vehicle battery components, seeing them as the company's future. #ParkDoBong #Aluko #KPTU #selfmade #businessleader #aluminumindustry #electricvehicles #advancedmaterials #Geumsan #Daejeon
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Chairman of Aluko
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CEO of Hi Investment & Securities
Sung Moo-yong
- Sung Moo-yong is the CEO and President of Hi Investment & Securities. He was born on January 1, 1963, in Gyeongbuk. He graduated from Neungin High School in Daegu and the Department of Statistics at Daegu University. He faces the tasks of boosting Hi Investment & Securities' performance and managing the risks associated with real estate project financing (PF). The risks related to real estate PF at Hi Investment & Securities also burden the DGB Financial Group, making it crucial to address these issues. As a former Vice President of DGB Daegu Bank, he needs to improve Hi Investment & Securities' structure to create synergy with the group and its affiliates. His lack of familiarity with securities company operations, having built his career around holding companies and banks, is seen as a weakness. He briefly left DGB Financial Group to work as an advisor at Daegu law firm Haeon. His return to DGB Financial Group was attributed to his high competence and character. Internally, he is regarded as a responsible and resolute individual. Hi Investment & Securities, established in 1989, was incorporated into DGB Financial Group in October 2018. The company is set to change its name to 'iM Securities' in August 2024. #SungMooYong #HiInvestmentSecurities #DGBFinancialGroup #realestatePF #financialriskmanagement #DaeguUniversity #NeunginHighSchool #iMSecurities #DGBDaeguBank #financialindustry
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CEO of Hi Investment & Securities
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CEO of Seoul Food Industrial
Suh Sung-hoon
- Suh Sung-hoon is the President and CEO of Seoul Food Industrial. He was born on December 18, 1953, as the son of the company's founder, Chairman Suh Chung-taek. He graduated from Seoul Kyunggi High School and Hankuk University of Foreign Studies with a degree in English. After graduation, he served as Vice President of Seoul Heinz and has been working as the President and CEO of Seoul Food Industrial since 1989. Seoul Food Industrial was established in 1955. Widely known as 'Someripyo' for its cow's head logo, Seoul Food Industrial produced margarine, premium cooking oil, and breadcrumbs during the early days of Western food culture in Korea. The company was also the first food company to introduce bakery and snack businesses in Korea, gaining recognition with its flagship products 'Koala Bread' and 'Ppeong-I-Yo.' After succeeding his father, Chairman Suh Chung-taek, as the President and CEO, Suh Sung-hoon has diversified the company's business areas in response to changing times. In 2011, he expanded the business into the frozen dough sector, which includes bread that can be baked directly in the oven, and ventured into environmental projects. #SuhSungHoon #SeoulFoodIndustrial #foodindustry #CEO #KoalaBread #PpeongIYo #frozendough #businessdiversification #Koreanfoodcompany #SeoulHeinz
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CEO of Seoul Food Industrial
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President of Gachon University
Lee Gil-ya
- Lee Gil-ya is the founder and president of Gachon University. She is also the honorary chairperson of the Gachon University Gil Hospital. She aims to elevate Gachon University into a leading institution focused on advanced industries such as bio, battery, and semiconductor, collectively known as BBC (Bio·Battery·Chips). Since the integration of Gachon University of Medicine and Science with Kyungwon University in 2012 to form the unified Gachon University, she has continuously served as its president. Lee Gil-ya oversees various institutions including Gachon University, Gachon University Gil Hospital, Gachon University Oriental Hospital, Brain Science Research Institute, Lee Gil-ya Cancer and Diabetes Research Institute, Gyeongin Ilbo, Gachon Cultural Foundation, Gachon Museum, and Shinmyung Girls' High School. Through the Gachon Gil Foundation, she actively conducts activities in education, healthcare, research, and media. She was born on May 9, 1932 (lunar calendar) in Okgu, Jeollabuk-do. The name "Gachon" of the university is derived from her pen name. Starting with the 'Lee Gil-ya Obstetrics and Gynecology Clinic' in Incheon, she established the Gil Medical Foundation and Gachon University Gil Hospital. She is often referred to as the "most self-made woman CEO since the founding of the Republic" and the "female Chung Ju-yung." She is single with no children. Her elder sister, Lee Gui-rye, who served as the chairman of the Korea Tea Culture Association and was designated as a cultural asset, has children who are involved in university and hospital management. #LeeGilYa #GachonUniversity #GilHospital #BioTechnology #BatteryIndustry #Semiconductor #KoreanHealthcare #EducationalLeadership #FemaleCEO #SelfMadeSuccess
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President of Gachon University
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CEO of GS Caltex
Hur Sae-hong
- Hur Sae-hong is the President and CEO of GS Caltex and also serves as the Chairman of the GS Caltex Board of Directors. He is a fourth-generation executive of the GS Group and a candidate for the next Chairman of GS Group. He is focusing on diversifying the business beyond the oil industry into petrochemicals, hydrogen, and new ventures in gas stations. Born on November 21, 1969, in Seoul, he is the eldest son of Hur Dong-soo, the Honorary Chairman of GS Caltex, known as 'Mr. Oil.' He graduated from Whimoon High School in Seoul and Yonsei University with a degree in Business Administration. He also earned a Master's degree from Stanford University Graduate School of Business in the United States. He began his career at Osaki Electric in Japan and worked at Bankers Trust Korea and IBM in New York. After joining GS Caltex, he held various positions including heading the Singapore branch, Yeosu plant, Petrochemical Business Division, and the Petrochemical & Lubricant Business Division. He became the CEO of GS Global less than a year after becoming a registered director of GS Caltex, following Hur Dong-soo's resignation from the Board of Directors. Ascending to the position of CEO of GS Caltex, a key affiliate of the group, he emerged as a strong contender for the succession of GS Group’s leadership. However, there are concerns about his standing due to the recent poor performance of GS Caltex. He enjoys and excels at golf. He is known for his quiet personality. In 2008, he was selected as one of the 'Young Global Leaders of the Year' by the World Economic Forum (WEF, Davos Forum). #GSGroup #HurSaeHong #GSCaltex #BusinessLeader #Succession #Petrochemicals #Hydrogen #NewVentures #YoungGlobalLeader #BusinessDiversification
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CEO of GS Caltex
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CEO of ITM Semiconductor
Na Hyeok-hwi
- Na Hyeok-hwi is the President and CEO of ITM Semiconductor. As a professional manager, he is responsible for the management of ITM Semiconductor, a company specializing in secondary battery protection circuits. Na Hyeok-hwi was born on December 25, 1964. He graduated from Kyung Hee University with a degree in Chemical Engineering. He worked in the battery division of Hyosung and Saehan before moving to Power Logics, an electronic components company, where he rose to the position of CEO. After Power Logics established ITM Semiconductor, a company specializing in secondary battery protection circuits, in 2000, he moved between the two companies until he became the CEO of ITM Semiconductor in 2008, taking full responsibility for the company's management. He focused on research and development, introducing innovative products such as POC (Protection One Chip) and PMP (Protection Module Package). These products integrate secondary battery protection circuit components, with PMP being exclusively manufactured and sold by ITM Semiconductor worldwide. Na Hyeok-hwi is striving to diversify PMP clients beyond Apple. He is also diversifying the business into electronic cigarettes, battery management systems (BMS), and medium to large battery packs. #ITMSemiconductor #NaHyeokhwi #secondarybattery #batterymanagement #PMP #POC #Apple #electroniccigarettes #BMS #PowerLogics
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CEO of ITM Semiconductor
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Chairman of Dongkuk Steel Group
Chang Sae-joo
- Chang Sae-joo is the chairman of Dongkuk Steel Group. In 2015, he was indicted on charges of embezzlement and stepped down as an internal director of Dongkuk Steel. However, he returned to management in May 2023, after an eight-year hiatus. In May 2023, he was reinstated as an internal director through an extraordinary general meeting of Dongkuk Steel shareholders. Shortly after his return, he transformed Dongkuk Steel into a holding company structure through a corporate split. He is focused on strategic investments to secure future growth engines for Dongkuk Steel Group and is actively responding to the downturn in the steel industry. Chang Sae-joo was born on November 8, 1953, in Busan, as the eldest son of Chang Sang-tae, the honorary chairman of Dongkuk Steel. He graduated from Seoul Choongang High School and Yonsei University's College of Engineering. He then moved to the United States and graduated from Towson University's Department of Economics. After joining Dongkuk Steel, he held positions such as head of Incheon Steelworks, head of the Planning and Coordination Office, head of the Management Planning Office, and head of the Sales Division. He received 23 years of management training from his father, honorary chairman Chang Sang-tae. He has a close relationship with his younger brother, Chang Sae-wook, who is the vice chairman and CEO of Dongkuk Steel. Chang Sae-joo is known for his down-to-earth manner with employees. He demonstrates strong willpower and a determined drive. #ChangSaeJoo #DongkukSteel #chairman #embezzelement #managementreturn #holdingcompany #strategicinvestment #steelindustry #ChangSangTae #brotherhood
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Chairman of Dongkuk Steel Group
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CEO of NewTree
Kim Do-un
- Kim Do-un is the CEO of NewTree. He shares the CEO role with Park Ki-bum, who oversees sales and marketing. NewTree is a company specializing in health supplements, currently accelerating its expansion into the global market. Born on January 15, 1962, Kim graduated from Yonsei University with a degree in Food Engineering and obtained a master's degree from the same university. He served as CEO of Intertech before founding NewTree in 2001, where he became the CEO. While serving as NewTree's CEO, he earned a Ph.D. in Biological Materials Engineering from Yonsei University in 2005. He has held positions such as president of the Yonsei University Biotechnology Alumni Association and adjunct professor at Yonsei University's Department of Biotechnology (formerly Food Engineering). He also served as vice president of the Korean Society of Skin Functional Foods and the Korean Society of Food Science and Technology. As a former researcher, he founded NewTree and grew it into a mid-sized company. He improved NewTree's profitability by diversifying its distribution channels. #KimDo-un #NewTree #healthsupplements #globalmarket #YonseiUniversity #FoodEngineering #Intertech #biotechnology #distributionchannels #profitability
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CEO of NewTree
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Deputy Prime Minister
Choi Sang-mok
- Choi Sang-mok is the second Deputy Prime Minister and Minister of Economy and Finance under the Yoon Suk-yeol administration. He continues the fiscal prudence policy in line with President Yoon's commitments. Choi Sang-mok previously served as the first Chief Economic Secretary to the President's Office in the Yoon Suk-yeol administration. He faces numerous challenges, including stabilizing high household debt in South Korea, controlling inflation, recovering exports, and stimulating the economy. He must immediately address the issue of real estate project financing (PF) defaults due to economic slowdown and high interest rates, preventing a chain of bankruptcies among construction and financial companies and achieving a soft landing. He was born on June 7, 1963, in Seoul. He graduated from Osan High School in Seoul and earned a bachelor's degree in law from Seoul National University, followed by a Ph.D. in economics from Cornell University in the United States. He entered public service as part of the 29th class of the Administrative Examination and worked at the Ministry of Finance and Economy (now the Ministry of Economy and Finance) and the Financial Services Commission. At the Ministry of Economy and Finance, he held positions such as Director of Policy Coordination and Director of Economic Policy, eventually becoming the Director of Policy Cooperation. During the Park Geun-hye administration, he served as Secretary for Economic and Financial Affairs in the Presidential Secretariat and the First Vice Minister of Economy and Finance, and after the inauguration of the Yoon Suk-yeol administration, he was appointed as the first Chief Economic Secretary. On December 29, 2023, he was appointed as the Deputy Prime Minister and Minister of Economy and Finance. He is known as a "smart and diligent" type of boss and has been chosen as a "role model boss" due to the trust he garners from his juniors. His determination and leadership stand out as he persistently pursues what he believes to be right. #Economy #Finance #DeputyPrimeMinister #MinisterOfEconomyAndFinance #YoonSukYeol #SouthKorea #PublicService #EconomicPolicy #Leadership #ChoiSangMok
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Deputy Prime Minister
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CCO of CJ ENM
Lee Kyung-hoo
- Lee Kyung-hoo is the Head of Brand Strategy at CJ ENM. She also serves as the Chief Creative Officer (CCO) of the Music Content Division. She is the eldest daughter of Lee Jay-hyun, the chairman of CJ Group, and is considered a candidate for the succession of CJ Group's management along with her younger brother, Lee Sun-ho, who is a management leader at CJ CheilJedang. Born on January 18, 1985, she graduated from Columbia University in the United States with a degree in French Literature and earned a master's degree in Organizational Psychology from the same university's graduate school. Lee Kyung-hoo started her career as an assistant manager in the Planning Team of CJ Group's holding company. She then worked in the Broadcast Planning Team of the Product Development Division at CJ O Shopping and as the Head of Integrated Marketing at CJ's U.S. regional headquarters. After moving to CJ ENM, she has been working as the Head of Brand Strategy and the Chief Creative Officer of the Music Content Division. As a management leader at CJ ENM, she is expanding her management activities, leading to speculations that she might take over the role of Lee Mi-Kyung, Vice Chairman of CJ Group, who currently leads CJ Group's cultural business. She is known for her modest and unpretentious personality. She is meticulous and proactive in her work. As of 2024, she has rarely been exposed to the media. #CJENM #LeeKyungHoo #CJGroup #BrandStrategy #ChiefCreativeOfficer #LeeJayHyun #LeeSunHo #CulturalBusiness #ColumbiaUniversity #OrganizationalPsychology
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CCO of CJ ENM
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Chairman of Kwangdong Pharmaceutical
Choi Sung-won
- Choi Sung-won is the Chairman and CEO of Kwangdong Pharmaceutical. He is the only son of Choi Soo-boo, the founder and former chairman of Kwangdong Pharmaceutical, and he has succeeded his father in leading the company. He was born on December 8, 1969, in Seoul. After graduating from Youngdong High School in Seoul and the Business Administration Department of Seoul National University, he completed a master's degree in business administration at Keio University in Japan. He joined Kwangdong Pharmaceutical as a new employee and climbed the ranks, serving as Head of the Sales Division (Executive Director) and Vice President before becoming President. When Choi Soo-boo passed away in 2013, he became Vice Chairman. He was appointed Chairman in December 2023. Building on a foundation of traditional herbal medicines such as Kwangdong Kyungokgo, Woohwang Cheongsimwon, and Kwangdong Ssanghwatang, he has expanded sales by incorporating the beverage business and mergers and acquisitions. Compared to other pharmaceutical companies, Kwangdong Pharmaceutical has relatively lower operating profits. To address this, he is focusing on diversifying the business. He is also paying attention to strengthening corporate control due to the relatively low shares he holds in Kwangdong Pharmaceutical. #ChoiSungwon #KwangdongPharmaceutical #CEO #Chairman #HerbalMedicine #BusinessExpansion #CorporateControl #PharmaceuticalIndustry #BusinessDiversification #KoreanBusinessLeaders
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Chairman of Kwangdong Pharmaceutical
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CEO of Dongin Entech
Jung In-soo
- Jung In-soo is the CEO of Dongin Entech and also serves as the CEO of Care Partners. He was born in April 1955. He graduated from Seoul National University with a degree in Mechanical Design and worked at Hyundai Heavy Industries. In 1992, he founded Dongin Entech. Dongin Entech is a specialized Original Development Manufacturing (ODM) company for outdoor bags. It has over 40 overseas clients, including Gregory, Arc'teryx, and Black Diamond, and holds a 50% market share in the global outdoor backpack production market. The company operates 10 production subsidiaries and factories in the Philippines, using ultra-lightweight and ultra-high-strength aluminum manufacturing technology to produce outdoor backpacks, tent poles, and golf bags. Dongin Entech was listed on the KOSPI market on November 21, 2023. #JungInsoo #DonginEntech #CarePartners #SeoulNationalUniversity #HyundaiHeavyIndustries #outdoorbags #ODM #globalmarket #KOSPI #Philippines
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CEO of Dongin Entech
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CEO of Woojin
Lee Jai-sang
- Lee Jai-sang is the President and CEO of Woojin. He is the son of Woojin's founder and Chairman, Lee Sung-bum. Woojin is a company engaged in the manufacturing and maintenance of industrial measuring instruments and exclusively supplies four key measuring instruments installed in the reactors of large domestic nuclear power plants. He was born as the second son on November 30, 1973, to Chairman Lee Sung-bum and Kim Gwang-ja (who passed away on January 3, 2023). Lee Jai-won, the Chairman of Woojin's Board of Directors, is his elder brother. Lee Jai-sang graduated from the Physics Department at Cheongju University in 1998 and earned a Master's degree in Business Administration from Yonsei University Graduate School in 2015. He joined Woojin as the Head of the Research Planning Team and advanced through roles such as Director, Deputy Director of the Research Institute, and Executive Director of the Integrated Operations Office. In March 2016, he became President and CEO, taking over the management rights. As a second-generation owner-manager, he oversees Woojin's nuclear business research and development processes and strives for the localization of Korean nuclear power plant measuring instruments. #Woojin #LeeJaisang #CEO #President #NuclearIndustry #IndustrialMeasuringInstruments #SouthKorea #BusinessLeader #NuclearPower #LocalizationEfforts
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CEO of Woojin
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President of HUFS
Park Jeong-woon
- Park Jeong-woon is the 12th president of Hankuk University of Foreign Studies (HUFS). His term began on March 1, 2022, and lasts for four years. He is focused on establishing HUFS as an international education hub through a creative and convergent talent education system and an expert platform. Born on March 20, 1960, Park graduated from HUFS with a degree in English in 1983. He earned a master's degree from HUFS Graduate School, as well as a master's and a Ph.D. in Linguistics from the University of California, Berkeley. After serving as a full-time lecturer at Seowon University in Chungbuk, he became a professor in the English Department at HUFS in 1996. He has held positions such as Director of the Language Research Institute, Director of the Office of External Affairs, Director of the Foreign Language Examination (FLEX) Center, and Dean of the College of English. Externally, he has been active as President of the Discourse and Cognitive Linguistics Society and Vice President of the International Association for Korean Language and Culture. Elected as the president by a direct vote involving faculty, staff, and students, Park has pursued strong structural reforms since taking office. He is working to achieve the chemical integration of the Seoul and Global campuses into a single university. Through curriculum reform, he aims to establish and develop advanced interdisciplinary departments that reflect the characteristics of HUFS, focusing on building an educational infrastructure that meets the demands of the Fourth Industrial Revolution. #ParkJeongwoon #HUFS #universitypresident #educationreform #internationaleducation #linguistics #directvote #structuralreform #advancedfaculty #integration
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President of HUFS
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Chairman of IDIS
Kim Young-dal
- Kim Young-dal is the Chairman and CEO of IDIS. He also serves as the CEO of the holding company IDIS Holdings and its affiliates, including Kotech, Ivest, and IDIS PowerTel. He is a representative 'first-generation venture entrepreneur' who wrote a success story for venture companies by developing the world's first digital video recorder (DVR). He was born on July 17, 1968, in Daegu. He graduated from the Department of Computer Science at the Korea Advanced Institute of Science and Technology (KAIST) and obtained both his master's and doctoral degrees in computer science from the same university. In 1997, he founded IDIS and launched the first DVR in 1998. Subsequently, he expanded the business into CCTV cameras and video management software (VMS), establishing IDIS as a total video security solutions provider. He is dedicated to integrating artificial intelligence (AI) into video security solutions. #KimYoungdal #IDIS #DVR #CCTV #VMS #AI #securitysolutions #KAIST #ventureentrepreneur #Kotech
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Chairman of IDIS
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CEO of GS E&C
Huh Yoon-hong
- Huh Yoon-hong is the President and CEO of GS Engineering & Construction (GS E&C). As the 4th generation leader of the GS Group, he is dedicated to restoring trust following a series of incidents and controversies, including the collapse of an underground parking lot in Incheon. He was born on January 24, 1979, in Seoul, as the eldest son of Huh Chang-soo, the Chairman of GS Construction. He graduated from Seoul Han Young Foreign Language High School and earned a degree in International Business from Saint Louis University in the United States. He also obtained a Master's degree in Business Administration from the University of Washington. After joining LG-Caltex Oil (now GS Caltex), he moved to GS Construction, where he is celebrating his 19th year. Prior to becoming CEO, he held positions as the Future Innovation Representative, Business Support Director, and Head of New Business Division. With extensive experience in overseas construction sites, he emphasizes on-site management. Known for his modest and amicable personality, he often shares drinks with his employees.
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CEO of GS E&C
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Director of National Security
Jang Ho-jin
- Jang Ho-jin is the Director of National Security at the Office of the President of the Republic of Korea. With the increase in provocations from North Korea, he is working hard to strengthen the country's response capabilities. As tensions with Russia escalate, he is also focused on managing the relationship between South Korea and Russia. He was born on August 10, 1961, in Seoul. He graduated from Seongdong High School in Seoul and studied Diplomacy at Seoul National University, where he also earned a master's degree in Public Administration from the Graduate School of Public Administration. He obtained a master's degree in International Politics from Cambridge University in the United Kingdom. After passing the Foreign Service Examination in 1982, he began his public service career in 1983 as an officer at the Ministry of Foreign Affairs and Trade. He has held various positions, including counselor at the South Korean Embassy in Russia, deputy head of the North Korean Nuclear Diplomacy Planning Team, ambassador to Cambodia, diplomatic secretary to the President, diplomatic advisor to the Prime Minister, and ambassador to Russia. In 2023, he was appointed First Vice Minister of Foreign Affairs. In December 2023, he was appointed Director of National Security. A seasoned diplomat, he is well-versed in the core diplomatic issues of South Korea and is known for his cool-headed and meticulous work style.
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Director of National Security
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CEO & Chairman of Daegu Departmentstore
Koo Jung-mo
- Koo Jung-mo is the CEO and Chairman of Daegu Department Store. He also serves as the Vice Chairman of the Daegu Chamber of Commerce and Industry. He was born on April 3, 1963, in Daegu as the son of Koo Bon-heung, the founder of Daegu Department Store. He graduated from Daekwang High School in Seoul and studied theology at Yonsei University. Since 2010, he has been working as the CEO and Chairman of Daegu Department Store. Based on the management philosophy of customer-first, field-first, and talent-first principles, he has led Daegu Department Store, which celebrated its 81st anniversary in 2024. He is a devout Christian and runs Daegu Department Store as a Christian company. He considers donation and volunteer activities as the company's social responsibility and is committed to these efforts. #KooJungmo #DaeguDepartmentStore #CEO #Chairman #DaeguChamberofCommerce #Philanthropy #Christian #YonseiUniversity #Leadership #81stAnniversary
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CEO & Chairman of Daegu Departmentstore
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President of Ewha Womans University
Kim Eun-mee
- Kim Eun-mee is the president of Ewha Womans University. She graduated from the Department of Sociology at Ewha Womans University and received her master's and doctoral degrees in sociology from Brown University in the United States. After serving as a professor at the University of Southern California and a visiting professor at Harvard University, she joined Ewha Womans University in 1997 as a professor at the Graduate School of International Studies. She was a member of the Presidential Commission on Regulatory Reform under the Lee Myung-bak administration and a member of the Task Force for Reviewing the Agreement on the Comfort Women Issue between South Korea and Japan under the Moon Jae-in administration. She became the first female outside director at Samsung Electronics. She ran for the position of president of Ewha Womans University for the second time in a direct election and was elected in 2021. As a professor from the Graduate School of International Studies, she has shown a strong aptitude for international exchange and cooperation. She is working to identify the unique social values and roles of Ewha Womans University as the crisis of declining school-age population intensifies. #KimEunmee #EwhaWomansUniversity #sociology #BrownUniversity #HarvardUniversity #Samsung #internationalcooperation #universitypresident #SouthKorea #academicleadership
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President of Ewha Womans University
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CEO of Kakaopay Insurance
Chang Young-kun
- Chang Young-kun is the CEO of Kakaopay Insurance. He is striving to develop differentiated, life-oriented insurance products that highlight the unique characteristics of Kakaopay Insurance. Drawing on his experience in global insurtech (a portmanteau of insurance and technology) companies, he is working diligently to overcome poor performance. He was born on December 2, 1976. He graduated from the Department of Business Administration at Yonsei University and completed his MBA at the Massachusetts Institute of Technology (MIT) Graduate School. Afterward, he worked at SK Telecom and Bain & Company, founded the IT startup LabsixK, and served as a partner at the Boston Consulting Group. He then moved to the global insurtech company Bolttech, where he served as a global executive and the representative of the Korean branch before being appointed CEO of Kakaopay Insurance. He is known for his rich experience in managing innovative products and services. He has a high level of understanding of digital insurance and IT services. #ChangYoungKun #KakaopayInsurance #insurtech #digitalinsurance #innovation #MITMBA #globalexecutive #ITservices #insuranceproducts #leadership
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CEO of Kakaopay Insurance
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CEO of Heungkuk F&B
Park Chul-bum
- Park Chul-bum is the CEO of Hyungkuk F&B. Together with his wife, CEO Oh Gil-young, they serve as co-CEOs. Hyungkuk F&B focuses on diversifying its distribution channels. The company's name, 'F&B', stands for 'Food and Beverage.' He was born on January 19, 1969. Park graduated from Hanyang University with a degree in Chinese Language and Literature and worked in the food service division of Doosan. In 2000, he founded the trading company Hyungkuk Trade and became its CEO. Later, in 2008, he established Hyungkuk F&B as the sales subsidiary of Hyungkuk Trade (then HK Trading) and became its CEO. Using his experience from working in Doosan's food service division, he launched his trade business and eventually grew Hyungkuk F&B into a company with revenues in the range of KRW 100 billion (approximately USD 72.1 million). He is known for his strong drive. He started his business despite opposition from his family. Park is a person with strong pride. He did not borrow money from his businessman father but borrowed only the company name to establish Hyungkuk Trade and Hyungkuk F&B. #ParkChulbum #HyungkukF&B #BusinessGrowth #DistributionChannels #FoodAndBeverage #CEO #HanyangUniversity #Doosan #TradeBusiness #KRW100Billion
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CEO of Heungkuk F&B
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CEO of Cell Biotech
Chung Myung-jun
- Chung Myung-jun is the CEO of Cell Biotech. He is dedicated to research and development for 'gut health' and 'developing Korean probiotics.' He was born on January 5, 1958, in Seoul. Chung graduated from Yonsei University with a degree in Biology. He earned a master's degree in Microbiology from Seoul National University and a Ph.D. in Biotechnology from the Technical University of Denmark. He worked at the Central Research Institute of Miwon and Daesang. In 1995, he founded Cell Biotech and grew it into the company with the most GRAS-registered probiotics, the highest safety certification by the U.S. Food and Drug Administration (FDA), worldwide. He is expanding the business by developing various disease treatments based on probiotic technology. #ChungMyungjun #CellBiotech #Probiotics #GutHealth #KoreanProbiotics #FDA #GRAS #Biotechnology #DiseaseTreatment #YonseiUniversity #SeoulNationalUniversity
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CEO of Cell Biotech
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President of POSTECH
Kim Seong-keun
- Kim Seong-Keun is the President of Pohang University of Science and Technology (POSTECH). His term runs from September 1, 2023, to August 31, 2028. Under the banner of 'POSTECH 2.0,' he has declared the establishment of the second foundation, focusing on realizing the original goal of becoming a 'world-class research university.' Born on June 19, 1957, in Daegu, Gyeongbuk. He graduated from Gyeonggi High School and Seoul National University's Department of Chemistry and earned his Master's and Ph.D. in Chemical Physics from Harvard University in 1982 and 1987, respectively. He has served as a professor at Seoul National University and Chairman of the Samsung Foundation for Future Technology Development. Recognized for his outstanding research achievements in the field of chemistry, he was selected as the first National Scholar by the Ministry of Education and Human Resources Development (Ministry of Education) in 2006 and as a Fellow of the Royal Society of Chemistry in 2013. He was recruited as the president, being evaluated as the person with the most needed leadership for POSTECH, which is at a turning point ahead of its 40th anniversary. #KimSeongKeun #POSTECH #President #worldclass #research #university #leadership #chemistry #scholar #education
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President of POSTECH
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CEO of Chungdam Global
Choi Seok-ju
- Choi Seok-ju is the CEO of Chungdam Global. Chungdam Global is an e-commerce distribution platform company that purchases cosmetics and health supplements to supply to Alibaba in China. The company focuses on business diversification and expanding distribution channels. He was born on September 14, 1988, in China as a third-generation Korean Chinese. After graduating from Seoran Korean High School in China, he naturalized in Korea and established Oseong Travel Agency. After working as the director of sales at Chungdam, he founded Chungdam Global in 2017, specializing in the distribution of cosmetics and health supplements. Focusing on the Chinese market, he grew Chungdam Global into a mid-sized company with a revenue of KRW 200 billion. Here are ten keywords based on the provided information: #ChoiSeokju #ChungdamGlobal #ecommerce #cosmetics #healthsupplements #Alibaba #Chinesemarket #KoreanChinese #businessdiversification #KRW200billion
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CEO of Chungdam Global
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Chairman of INZI Controls
Jung Goo-yong
- Jung Goo-yong is the Chairman and CEO of INZI Controls. He also serves as the CEO of listed affiliates Cymechs and INZI Display. Jung is a self-made entrepreneur who built a leading company in automotive engine temperature control parts from scratch. Born on July 22, 1945, in Okcheon-gun, Chungcheongbuk-do, he graduated from Okcheon Commercial High School. After high school, he worked as an accounting clerk at Hyundai Motor and other companies, where he gained insight into the automotive industry. In 1978, he founded Gonghwa Metal Industry, now known as INZI Controls. He expanded the company into a specialist in temperature control parts, such as thermostats, through a technology partnership with a Japanese firm. Jung is striving to expand INZI Controls' business to include non-engine parts and eco-friendly car parts. He serves as the Chairman of the Korea Listed Companies Association, actively advocating for the interests of listed companies and mid-sized enterprises. #JungGooyong #INZIControls #AutomotiveParts #SelfMadeEntrepreneur #Cymechs #INZIDisplay #TemperatureControlParts #EcoFriendlyCarParts #KoreaListedCompaniesAssociation #AutomotiveIndustry
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Chairman of INZI Controls
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CEO of Gamsung Corporation
Kim Ho-sun
- Kim Ho-sun is the CEO of Gamsung Corporation. Gamsung Corporation, formerly known as VirtualTech, primarily focuses on the apparel business. He was born on February 19, 1972. He graduated from Bucheon University with a degree in Business Administration and obtained an MBA from the Korea Advanced Institute of Science and Technology (KAIST) Graduate School of Business. Kim served as CEO at Bitwin and SBM. Since 2019, he has been serving as the CEO of Gamsung Corporation. Leveraging his experience as the CEO of an ODM tent manufacturer, he secured a licensing agreement with Japan's tent brand Snow Peak, introducing the third-generation outdoor brand 'Snow Peak Apparel' to Korea. Through his strategic planning, he has successfully established Snow Peak as a leading domestic apparel brand, earning a reputation for his exceptional planning skills. #KimHosun #GamsungCorporation #SnowPeak #OutdoorApparel #CEO #BusinessLeadership #ApparelIndustry #BrandExpansion #StrategicPlanning #KAISTMBA
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CEO of Gamsung Corporation
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Vice Chairman of Fashion Group Hyungji
Choi Jun-ho
- Choi Jun-ho is the Vice Chairman of Fashion Group Hyungji. He is the eldest son of Choi Byung-oh, the Chairman of Fashion Group Hyungji. Born in 1984, Choi Jun-ho graduated from Dankook University with a degree in Public Administration and from the London College of Fashion with a degree in Fashion Management. After graduating, he joined Fashion Group Hyungji in 2011. He gained practical experience by serving as the head of the Group’s Integrated Purchasing and Production Headquarters in 2018 and as the Head of Supply Operations in 2020, covering areas from purchasing and production to finance. In May 2021, he was appointed CEO of golf apparel company Castelbajac, and in December 2021, he became President of Fashion Group Hyungji. In 2023, he was promoted to Vice Chairman of Fashion Group Hyungji, solidifying the second-generation management structure. In April 2024, Choi Jun-ho accompanied President Yoon Suk-yeol on overseas trips to the United States, Vietnam, Poland, and Indonesia, supporting the government’s economic diplomacy. He also recently accompanied trips to Saudi Arabia and Qatar. #ChoiJunho #FashionGroupHyungji #SecondGenerationLeadership #ChoiByungoh #Castelbajac #FashionManagement #DankookUniversity #GlobalExpansion #EconomicDiplomacy #KoreanFashionIndustry
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Vice Chairman of Fashion Group Hyungji
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Chairman of Hoban Group
Kim Sang-yeol
- Kim Sang-yeol is the founder of Hoban Group. He serves as the chairman of the Hoban Scholarship Foundation and Seoul Shinmun. Born in 1961 in Boseong, Jeollanam-do, he graduated from high school after six years due to difficult family circumstances. After graduating from Chosun University with a degree in architectural engineering, he worked at a small construction company before founding Hoban at the age of 28 in 1989. As of 2024, Hoban has grown into a large conglomerate, ranked 34th in the business community. After establishing Hoban by purchasing public housing sites and building houses, he ventured into the financial sector by founding Hyundai Finance. During the IMF financial crisis, he laid the foundation for growth by purchasing land sold by other construction companies for liquidity and conducting housing sales. Through conservative management principles, such as 'debt-free management,' he stably grew the business, elevating Hoban Construction to the 10th position in construction capability evaluation rankings. He made Hoban Construction known by participating in major acquisition bids, including Kumho Industrial, which owns Asiana Airlines, and Daewoo Engineering & Construction. By acquiring leisure businesses such as Deokpyeong Country Club in Icheon and West Seoul Country Club in Paju, he expanded into the leisure sector, and also purchased agricultural product distributor Daea Cheonghwa and Samsung Gold Exchange. After stepping down from Hoban Construction management, he focused on growing the media business, helping Hoban Group shed its image as a regional construction company and rise to a national level. He acquired Seoul Shinmun, Electronic Times, and economic cable channel EBN to build a national media business. However, Electronic Times was sold to IT company Douzone Bizon in September 2023. He entered the renewable energy business by acquiring shares and management rights of Taihan Electric Wire, and laid the groundwork for exploring overseas construction markets. As a self-made entrepreneur, he has demonstrated a strong competitive spirit. As of 2024, Hoban Construction is focusing on expanding its portfolio through mergers and acquisitions, equity investments, and startup investments, while seeking overseas expansion. #KimSangyeol #HobanGroup #SeoulShinmun #HobanConstruction #selfmadeentrepreneur #mergersandacquisitions #businessgrowth #mediaexpansion #renewableenergy #overseasexpansion
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Chairman of Hoban Group
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Chairman of COSMO & Company
Huh Kyung-soo
- Huh Kyung-soo is the chairman of COSMO & Company. He also serves as the chairman of COSMO AM&T and COSMO Chemical, which are listed on the KOSPI. Born on January 1, 1957, in Jinju, Gyeongnam, Huh is the eldest son among two sons and two daughters of Huh Shin-goo, the honorary chairman of GS Retail, and Yoon Bong-sik. He is the grandson of Huh Man-jung, the co-founder of Lucky Chemical Industrial (the predecessor of LG Group). Huh Shin-goo, Huh Kyung-soo's father, served as the honorary chairman of GS Retail from 2005 after the spin-off from LG Group to GS Group, until his death on February 5, 2017. Huh Kyung-soo's younger brother is Huh Yeon-soo, the vice chairman and CEO of GS Retail. Huh Kyung-soo graduated from Korea University with a degree in business administration and worked for 17 years at LG International Corp and LG Electronics' overseas branches starting in 1981. In 1998, Huh Kyung-soo began his independent business career by managing COSMO Yanghaeng (a trading and distribution affiliate), which was a property management company left by his father, Huh Shin-goo. He later acquired COSMO Chemical (formerly Korea Titanium Industrial) and COSMO AM&T (formerly Saehan Media) and established Maruman Korea as a joint venture with Maruman Japan, thus forming a group of companies under COSMO & Company. Huh Kyung-soo is a cousin of Huh Tae-soo, the chairman of GS Group. As of March 31, 2024, Huh Kyung-soo holds a 2.10% stake in GS, giving him influence within the GS Group. #COSMOCompany #COSMOAMT #COSMOChemical #HuhKyungsoo #GSGroup #LGGroup #businessleadership #KoreaUniversity #KOSPI #familybusiness
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Chairman of COSMO & Company
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Chairman of Daewon Media
Jung Wook
- Jung Wook is the founder and Chairman & CEO of Daewon Media. Together with his son, Jung Dong-hoon, who is the President & CEO of Daewon Media, they jointly hold the representative positions at Daewon Media. He also holds representative director positions at Daewon CI and Daewon Broadcasting, which are affiliates of Daewon Media. By expanding Daewon Media’s business scope from comics to broadcasting and publishing, he has grown Daewon Media into a mid-sized company with sales of KRW 300 billion (approximately US$ 216.4 million). He is currently focusing on content expansion based on the One Source Multi Use (OSMU) strategy. He was born on March 17, 1946, in Gangneung, Gangwon Province. After graduating from Gangneung High School in Gangwon Province, he moved to Seoul and became an apprentice to artist Shin Dong-heon. Artist Shin Dong-heon was the creator of "Hong Gil-dong," Korea’s first theatrical animation. At the age of 21, Jung Wook participated as an animator in the production of "Hong Gil-dong." Jung Wook made his debut as a comic artist in 1969 with the children's comic "Choripdongja," and four years later, in 1973, he started his entrepreneurial journey by founding One Production. In 1989, he achieved a box office success with "Young-gu and Ddaengchiri," and in the same year, he completed a graduate course at Dongguk University’s Graduate School of Business Administration. He has served as a private member of the Video Industry Development Private Advisory Committee of the Ministry of Commerce, Industry and Energy (now the Ministry of Trade, Industry and Energy), the first president of the Korea Animation Producers Association, and the vice chairman of the Seoul International Cartoon Festival Promotion Committee. After putting Daewon Media’s comics and film business on track, he established affiliates such as Daewon Publishing (now Daewon CI) and Daewon Broadcasting, expanding the business into publishing, broadcasting, and gaming. He is known for his strong spirit of challenge. He is regarded as a key figure who led the Korean comics industry. #ComicsIndustry #Manga #DaewonMedia #Chairman #Korea #MangaArtist #MediaCompany #ApprenticeToChairman #60YearsCareer #MangaIndustry
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Chairman of Daewon Media
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Chairman of the Board at Yonsei University
Hur Dong-soo
- Hur Dong-soo is the Chairman of the Board at Yonsei University, with a term from April 4, 2024, to April 3, 2028. Since 2017, he has served as the Chairman of Yonsei University's board and is also the Honorary Chairman of GS Caltex. He focuses on enhancing Yonsei University's educational and research capabilities to make it the best private university in Asia. He has previously served as the CEO of GS Caltex and the Chairman of the Board at GS Energy. Born on July 13, 1943 (lunar calendar) in Jinju, Gyeongnam Province, he graduated from Bosung High School in Seoul and earned a degree in chemical engineering from Yonsei University. He obtained his master's and doctorate degrees in chemical engineering from the University of Wisconsin in the United States. After working at Chevron Research in the US, he joined GS Caltex in 1973. He became CEO in 1994, Vice Chairman in 1998, and Chairman in 2002. He is well-known for his skill and passion for Go, having served as the Chairman of the Korea Baduk Association for 15 years. Emphasizing corporate social responsibility, he served as Chairman of the Community Chest of Korea and, as of 2024, is the head of the Donghaeng Welfare Foundation, a social welfare organization he established with his own funds. His eldest son, Hur Sae-hong, is the CEO of GS Caltex. He is the second son of the late Hur Jung-gu, Honorary Chairman of Samyang Trading. As the Chairman of Yonsei University's board, he is dedicated to strengthening the university's finances for its sustainable development and growth. #HurDongsoo #YonseiUniversity #GSCaltex #CorporateLeadership #Education #KoreanBusiness #ChemicalEngineering #GoPlayer #SocialResponsibility #UniversityDevelopment
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Chairman of the Board at Yonsei University
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CEO of Shinheung SEC
Hwang Man-yong
- Hwang Man-yong is the CEO of Shinheung SEC. He leads the management of Shinheung SEC, a company that manufactures safety components to prevent explosions in secondary batteries. He is the son-in-law of the founder, Chairman Choi Hwa-bong. Hwang Man-yong was born on July 30, 1965. He graduated from Seoul National University College of Pharmacy and obtained a master's degree from the same university. After graduating from graduate school, he worked at CJ CheilJedang. He married Chairman Choi Hwa-bong's daughter and joined his father-in-law's company in 2003. He became the CEO of Shinheung SEC in 2009. He focuses on developing 46mm cylindrical battery components as a new growth driver. Additionally, with the expansion of customer companies into the U.S., he anticipates explosive growth in sales of medium and large prismatic battery components and is working on securing production capacity. #HwangManyong #ShinheungSEC #BatterySafetyComponents #ChoiHwabong #KoreanBusiness #SecondaryBatteries #BatteryExplosionPrevention #SeoulNationalUniversity #CJCheilJedang #BatteryComponentDevelopment
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CEO of Shinheung SEC
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Vice President of Sejin Heavy Industries
Yoon Ji-won
- Yoon Ji-won is the Vice President and inside director of Sejin Heavy Industries Co., Ltd. He also holds the position of inside director at its affiliates such as Dongbang Ship Machinery, GI Tech, SJ New Materials, and S&T Innovation. He is focusing on diversifying Sejin Heavy Industries' business operations and accelerating the diversification of its customer base. Yoon Ji-won was born on January 8, 1985, as the eldest son among one son and one daughter to Yoon Jong-guk, Chairman of Sejin Heavy Industries, and the late Im Sung-sim. He graduated from Hakseong High School in Ulsan and then from Purdue University's College of Engineering in the United States. Subsequently, he earned a master's degree from the Graduate School of Technology Management, Economics, and Policy at Seoul National University and joined Sejin Heavy Industries as an Executive Director in 2017. In 2021, he was appointed as an inside director of Sejin Heavy Industries and promoted to Vice President. Yoon Ji-won is a second-generation leader of Sejin Heavy Industries. After becoming an Executive Director, he learned practical work in production, sales, and human resources, laying the foundation for his management succession. #SejinHeavyIndustries #YoonJiWon #businessdiversification #customerbase #secondgenerationleader #PurdueUniversity #SeoulNationalUniversity #engineering #executivedirector #managementsuccession
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Vice President of Sejin Heavy Industries
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CEO of Hanwha Investment & Securities
Hahn Doo-hee
- Hahn Doo-hee is the CEO and President of Hanwha Investment & Securities. After completing a two-year term as the CEO of Hanwha Asset Management, he was brought in as a 'relief pitcher' to Hanwha Investment & Securities, which was struggling with poor performance, and led the company to turn a profit within a year. He was born on November 18, 1965, in Yeoncheon, Gyeonggi Province. He graduated from Uijeongbu High School and the Business Administration Department of Korea University, and obtained a Master's degree in Business Administration from KAIST (Korea Advanced Institute of Science and Technology). He began his career at Samsung Life Insurance and served as the Chief of the Financial Team at the Samsung Group Restructuring Headquarters. He held positions as the Head of the Strategic Management Division at Commerzbank Investment Trust Management, and the Head of Derivatives and Alternative Investment Management Division at Shinhan Asset Management before joining Hanwha Group in 2015. At Hanwha Investment & Securities, he served as the Head of the Product Strategy Center, Head of the Product Strategy Office, and Head of the Trading Division. Subsequently, he served as the Head of the Investment Business Division at Hanwha Life Insurance, and after serving as the CEO of Hanwha Asset Management, he was appointed CEO of Hanwha Investment & Securities. He is known as a 'gentleman' with excellent judgment. He possesses a cautious and calm personality and is skilled in communication. #Hanwha #HanwhaInvestmentSecurities #CEO #businessleader #financialmanagement #KAIST #SamsungGroup #investment #turnaround #leadership
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CEO of Hanwha Investment & Securities
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Chairman of Shinwon
Park Sung-chul
- Park Sung-chul is the chairman of Shinwon. He is the founder of Shinwon, a company engaged in clothing manufacturing and the fashion business. Although he serves as an inside director, he is not the CEO. Park Sung-chul was born on June 24, 1940, in Sinan-gun, Jeollanam-do. He graduated from Mokpo High School and Hanyang University with a degree in Public Administration. After working as a journalist for an economic newspaper, he developed an interest in the textile industry and decided to enter the field, starting a clothing manufacturing factory in 1971 to begin his business. In 1973, he established Shinwon Trading, now known as Shinwon, a clothing trading company. Starting with nothing, he built a leading domestic clothing company, embodying a self-made entrepreneurial spirit. He is a devout Christian, and Shinwon was once famous for the advertising slogan “We rest on Sundays.”
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Chairman of Shinwon
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Chairman of CJ Group
Lee Jay-hyun
- Lee Jay-hyun is the chairman of CJ Group. In 2023, he has focused his efforts on improving the management efficiency of CJ Group's affiliates and preparing future growth engines amidst declining profitability. He is executing a strategy to invest over KRW 20 trillion (approximately USD 14.4 billion) by 2025 in the areas identified as the four growth engines: Culture, Platform, Wellness, and Sustainability (C.P.W.S). He was born on March 19, 1960, in Seoul, as the eldest son of Lee Maeng-hee, former honorary chairman of CJ, and Sohn Bok-nam, former management advisor of CJ CheilJedang. He is also the eldest grandson of Lee Byung-chul, the founder of Samsung Group. Lee graduated from Kyungbock High School in Seoul and earned a degree in law from Korea University. After working at Citibank, he joined CJ CheilJedang, where he held various positions, including manager of the accounting department, managing director, executive director, and vice-chairman. Through expansive management, he transformed CJ CheilJedang, a food company with sales of approximately KRW 2.2 trillion (approximately USD 1.6 billion), into CJ Group, encompassing food, logistics, biotechnology, and media. After serving a prison sentence for charges including tax evasion, he was released in 2016 through a special pardon on Liberation Day. Upon returning to management, he has pursued mergers and acquisitions and restructured the affiliate governance to expand CJ Group's business. He is known for being frugal and humble.
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Chairman of CJ Group
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CEO of Shinsung E&G
Lee Ji-seon
- Lee Ji-seon is the President and CEO of Shinsung E&G. She leads the management of Shinsung E&G, which is engaged in clean environment and renewable energy businesses such as semiconductor factory cleanrooms, secondary battery factory dry rooms, and solar modules. As the second-generation owner, her father is Chairman Lee Wan-geun, the founder. Lee Ji-seon was born on January 30, 1975. She graduated from Duksung Women's University with a degree in Psychology and received a Master's degree in Business Administration from the Graduate School of Sogang University. She joined Shinsung E&G as a junior staff member in 2002 and received management training, eventually rising to the position of President and CEO in 2016. In February 2024, she became the sole CEO, taking full responsibility for the management of Shinsung E&G. She has a keen interest in renewable energy, including solar power. She is particularly focused on expanding Shinsung E&G's role in businesses aimed at realizing RE100. RE100 is a global campaign that aims for companies to source 100% of the electricity they consume from renewable energy. Lee Ji-seon is also actively involved in ESG (Environmental, Social, Governance) management. She is committed to eco-friendly policies, mutual growth with partners, and transparent management. She faces the challenge of increasing orders for cleanrooms and dry rooms to grow the company's revenue.
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CEO of Shinsung E&G
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CEO & President of Kumyang
Ryu Kwang-ji
- Ryu Kwang-ji is the chairman of Kumyang. Kumyang is a mid-sized company that produces and sells fine chemical products, including foaming agents, and is also engaged in the secondary battery business. He was born on May 25, 1966, in Gunwi, Gyeongbuk. He graduated from Daegu Neungin High School and Korea University with a degree in law. After graduating from university, Ryu Kwang-ji joined Seoul Securities, a subsidiary of the Daelim Group. While working at Seoul Securities, a friend requested his help with Kumyang, which was facing difficulties, and he joined Kumyang in 1998 as a manager. During his tenure at Kumyang, he played a crucial role in normalizing the company, which was on the verge of bankruptcy in the late 1990s, and became CEO in 2001. Based on his management philosophy of 'never staying stagnant and continuously evolving,' he has recently been expanding investments with the goal of establishing a global presence in the secondary battery industry and pioneering the standardization of hydrogen fuel cells. In 2022, Kumyang became the third company in Korea, following Samsung and LG, to succeed in developing cylindrical secondary batteries. #Kumyang #RyuKwangji #secondarybattery #hydrogenfuelcell #Koreabusiness #chemicalproducts #DaelimGroup #SeoulSecurities #batterydevelopment #CEO
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CEO & President of Kumyang
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Chairman of Hanil Hyundai Cement
Huh Gi-ho
- Huh Gi-ho is the Chairman and CEO of Hanil Holdings and the Chairman of Hanil Hyundai Cement. After reorganizing into a holding company structure, he has been focusing on finding new growth opportunities for the group. To address the issue of the cement industry's oversupply-centered business structure, he is expanding the trading company Hanil International. He was born on November 15, 1966, in Seoul as the eldest son of Huh Jung-sup, Honorary Chairman of Hanil Cement. He graduated from Seongnam High School in Seoul and studied Economics at Sungkyunkwan University. He also earned a Master of Business Administration from Thunderbird School of Global Management in the United States. He joined Hanil Cement in 1997, serving as Head of the Management Division and Head of the Business Planning Office, and in 2005, at the age of 40, he became the President and CEO. He raised Hanil Cement, which was fourth in market share, to second place. In 2016, he became Chairman and has been leading the group. After the restructuring of the governance structure, he moved to the position of Chairman of Hanil Holdings, the holding company. He also serves as Chairman of Hanil Hyundai Cement, a subsidiary of Hanil Cement. He pursues stable management by securing cash and minimizing borrowing.
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Chairman of Hanil Hyundai Cement
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Chairman of FOMEK
Choi Jin-shik
- Choi Jin-shik is the President of the Federation of Middle Market Enterprises of Korea (FOMEK). He also serves as the Chairman and CEO of Simpack. He is working on overcoming anti-business sentiments, spreading win-win management, and building an innovation platform while conveying the voices of mid-sized enterprises to the government. He was born on September 22, 1959, in Goyang, Gyeonggi Province. He graduated from Hanyeong High School in Seoul and studied trade at Dongguk University. He earned his master's degree from Yonsei University Graduate School of Business. He joined Dongyang Securities as a regular employee and became a registered executive after ten years. In 2001, he acquired SsangYong Precision, a subsidiary of the SsangYong Group. By changing the company name to SIMPAC, he pursued aggressive management and grew it into a global company with annual sales exceeding KRW 1 trillion (US$ 721.1 million). He emphasizes management that adheres to the basics and pays close attention to labor-management relations. His management philosophy is, "Manufacturing companies must excel in well-known tasks." #KoreaFederationOfMidSizedEnterprises #ChoiJinSik #SIMPAC #BusinessManagement #InnovationPlatform #LaborRelations #AggressiveManagement #GlobalCompany #AntiBusinessSentiment #ManagementPhilosophy
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Chairman of FOMEK
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Chairman of Korea Development Bank
Kang Seog-hoon
- Kang Seog-hoon is the Chairman of KDB Korea Development Bank. He is focusing his efforts on major restructuring projects such as the merger of Korean Air and Asiana Airlines, and the sale of HMM and KDB Life Insurance. He is committed to the relocation of KDB's headquarters to Busan, redefining the role of policy finance, and supporting advanced strategic industries, as promoted by the Yoon Suk-yeol administration. Born on August 15, 1964 (lunar calendar) in Bonghwa, Gyeongsangbuk-do, he graduated from Seoul Serabul High School and Seoul National University with a degree in Economics. He holds a Master’s and Ph.D. in Economics from the University of Wisconsin-Madison in the United States. He served as the head of the financial team at Daewoo Economic Research Institute, a professor at Sungshin Women's University, and a member of the Financial Development Advisory Committee at the Financial Services Commission. Entering the National Assembly in the 19th general election, he focused on redefining the role and enhancing the efficiency of policy finance. During the 18th presidential election, he led the policy development team for candidate Park Geun-hye, later serving as Chief of Economic Policy at the Blue House. In the 20th presidential election, he advised on economic policy and developed campaign pledges as the political director and policy advisor for President Yoon Suk-yeol. He is noted for his expertise and drive. He has a calm and meticulous personality. #KangSeoghoon #KDB #KoreaDevelopmentBank #PolicyFinance #EconomicPolicy #KEPCO #YoonSukyeol #BusanRelocation #StrategicIndustries #FinancialRestructuring
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Chairman of Korea Development Bank
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Chairman of Doosan Group
Park Jeong-won
- Park Jeong-won is the chairman of the Doosan Group and also serves as the CEO of Doosan, the group's holding company. By selling off assets and subsidiaries of the Doosan Group, he repaid debts amounting to KRW 3 trillion (US$ 2.16 billion) and escaped from creditor management control. To rebuild the Doosan Group, he is accelerating investments in next-generation energy businesses such as small modular reactors (SMRs), gas turbines, and hydrogen fuel cells. He is also entering high-growth industries such as semiconductor testing and battery materials. Born on March 9, 1962, in Seoul, he is the eldest son of the late Park Yong-gon, honorary chairman of the Doosan Group. He graduated from Daeil High School in Seoul and obtained a degree in Business Administration from Korea University. He also holds a Master of Business Administration from Boston University in the United States. After joining Doosan Industrial's New York office as an employee, he worked at Kirin Brewery in Japan and rejoined the Doosan Group as a manager at Dongyang Brewery. At Doosan, the group's holding company, he held various positions including Executive Managing Director of the Management Headquarters, Vice President of Doosan Trading BG, and President of Doosan Trading BG. After serving as Vice Chairman of Doosan Construction and Doosan, he became the first of the fourth generation of the Doosan family to be appointed as chairman. As a registered director of Doosan, he oversaw management with Chairman Park Yong-man and succeeded him to open the era of the fourth-generation ownership management of the Doosan Group. He is known for being taciturn and unpretentious. Widely recognized as a baseball enthusiast, he values teamwork and talent development. #Doosan #ParkJungwon #Chairman #SMR #EnergyInvestment #Semiconductor #BatteryMaterials #KoreaUniversity #BostonUniversity #FourthGenerationLeadership
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Chairman of Doosan Group
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CEO of Neowiz
Kim Seung-cheol
- Kim Seung-cheol is the CEO of Neowiz. Together with CEO Bae Tae-geun, he serves as the co-CEO of Neowiz. He is focused on enhancing Neowiz's game development capabilities and expanding its intellectual property (IP) through mergers and acquisitions of game development companies. He was born in September 1977. He graduated from Seoul National University with a degree in Business Administration. In 2002, he joined Neowiz and worked in the web board business division and the Japanese subsidiary, GameOn. He served as the head of Neowiz Mobile Game Business Division and Game Business Headquarters before leading Neowiz's game business as the Chief Operating Officer (COO). Since 2021, he has been serving as the co-CEO of Neowiz. As a game expert who has been with Neowiz's game business for over 20 years, he is strengthening Neowiz's game business competitiveness through game development and securing new intellectual properties (IP).
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CEO of Neowiz
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CEO of Paseco
Yoo Il-han
- Yu Il-han is the CEO of Paseco. He is focused on expanding market share by leveraging Paseco's brand power and strengthening business-to-consumer (B2C) distribution channels. Paseco is a comprehensive home appliance company that manufactures combustion devices and window air conditioners. Yu Il-han was born on April 20, 1971, to Yu Byung-jin, founder and chairman of Paseco, and Mrs. Koo Ja-yeom. He graduated from Yonsei University with a degree in Russian Language and Literature and obtained a master's degree from Duke University's Fuqua School of Business in the United States. After serving as the head of the Korean Film Investment Division and the production team leader at CJ Entertainment (now CJ ENM), he joined Paseco as an executive director in 2008. He became the CEO of Paseco in 2011. Yu Il-han, a second-generation business leader who inherited Paseco from his father, has grown the company into a mid-sized enterprise with sales of around KRW 200 billion (US$ 145.2 million). He transformed Paseco, which was centered on built-in home appliances, into a comprehensive home appliance company by strengthening B2C distribution channels. He focused on research and development, leading the launch of new products such as window air conditioners. As a result, he successfully increased Paseco's brand awareness.
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CEO of Paseco
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Chairman of Kookmin University
Kim Ji-yong
- Kim Ji-yong is the chairman of Kookmin University. He was appointed as the chairman of Kookmin Education Foundation in December 2016. Emphasizing entrepreneurial spirit, he focuses on nurturing practical fusion talents that change the world collectively. Born on October 1, 1973, in Seoul, he graduated from Seoul High School and Korea University with a major in Business Administration. As a third-generation owner of Ssangyong Group, he also serves as the chairman of the school corporation Guam Education Foundation and the Sunggok Press and Culture Foundation. He previously served as the head of the Korean national team at the PyeongChang Winter Olympics and as the president of the Korea Swimming Federation. After the dissolution of Ssangyong Group following the IMF financial crisis, he faced challenges in managing the university due to government financial support restrictions and the stigma of being designated as a university with limited financial support. He established the first automotive graduate school, automotive college, and automotive industry graduate school in Korea, focusing on cultivating the best automotive engineering and design experts in the country. He is expanding Kookmin University's specialization in future mobility by incorporating automotive technology.
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Chairman of Kookmin University
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Founder & Chairman of D&C Media
Shin Hyun-ho
- Shin Hyun-ho is the founder and Chairman of the Board of D&C Media. He is accelerating the expansion of content using D&C Media's intellectual property (IP). Born on March 13, 1958, he graduated from Inha University with a degree in Trade. He worked at various publishing companies, including Hagwonsa and Seoul Munhwasa. Leveraging his experience in the popular culture content field, he founded D&C Media in 2002 and became its president. After serving as CEO of D&C Media, he stepped down in 2023 and has been serving as Chairman of the Board since then. He expanded the business from publishing physical books to providing e-book services, growing D&C Media into a company with a revenue of approximately KRW 60 billion (US$ 43.6 million). He has strong confidence in his marketing abilities. #ShinHyunho #D&C Media #contentexpansion #intellectualproperty #founder #chairman #publishing #ebookservices #revenuegrowth #marketing
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Founder & Chairman of D&C Media
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Chairman of Shinsung Delta Tech
Koo Ja-cheon
- Koo Ja-cheon is the chairman of Shinsung Delta Tech. Founded in 1987, Shinsung Delta Tech, which is gaining attention for secondary battery parts, has grown into a mid-sized company with annual sales in the KRW 800 billion range. Koo Ja-cheon was born on May 3, 1953, in Jinju, Gyeongsangnam-do. He graduated from Jinju High School and the French Language and Literature Department at Yonsei University, and obtained a master's degree from the same university's Graduate School of Business. After graduating from university, he worked at Lucky Development (now GS E&C Corp.) before moving to work at Shinhung (now Shinsung Total), a wood company founded by his father. In 1987, he established a joint venture company, Shinsung Delta Industries (now Shinsung Delta Tech), which received investment from a Japanese company to produce plastic injection products. Regarded as a business leader who values harmony between labor and management, Shinsung Delta Tech has never experienced labor disputes in nearly 40 years since its establishment. In March 2024, he stepped down as CEO, effectively completing the process of handing over management rights to his son, Vice Chairman Koo Bon-sang.
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Chairman of Shinsung Delta Tech
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Chairman in CR Holdings
Lee In-ok
- Lee In-ok is the Chairman and largest shareholder of CR Holdings. CR Holdings is the parent company of Chosun Refractories, the only comprehensive refractory manufacturer in Korea, supplying refractories to POSCO and other clients. Refractories are materials similar to special bricks that can withstand temperatures exceeding 1,500 degrees Celsius, primarily used in blast furnaces at steel mills. He is the third generation leading Chosun Refractories, following in the footsteps of the founder Lee Hoon-dong and honorary chairman Lee Hwa-il (also Chairman of Seongok Cultural Foundation). Born in 1971 in Haenam, Jeollanam-do, he is the eldest of two sons and one daughter to honorary chairman Lee Hwa-il and Moon Il-kyung. He graduated from Hyundai High School in Seoul and Brown University in the United States. He joined Chosun Refractories and progressed through the roles of Senior Vice President and Vice Chairman before becoming Chairman in 2013. Since Chosun Refractories was divided into a holding company (CR Holdings) and an operating company (Chosun Refractories) through a physical split in July 2023, he has held shares but no position in Chosun Refractories. Chosun Refractories has maintained a professional management system for over 20 years since the inauguration of Chairman Lee Hwa-il in 1999. #LeeInok #ChosunRefractories #CRHoldings #RefractoryMarket #POSCO #ProfessionalManagement #KoreaIndustry #SteelIndustry #CorporateLeadership #FamilyBusiness
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Chairman in CR Holdings
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Director of IS Dongseo
Kwon Min-seok
- Kwon Min-seok was the President of IS Dongseo. As the son of Kwon Hyuk-woon, the Chairman of IS Dongseo, he took on the role of CEO of IS Dongseo in his 30s, stepping into a major managerial position early on. He has been focused on expanding the environmental business sector through aggressive mergers and acquisitions in the fields of construction waste and waste battery recycling. Born on February 27, 1978, he graduated from Hanyoung Foreign Language High School in Seoul, obtained a degree in economics from Boston University in the United States, and completed an MBA at Yonsei University's Graduate School of Business. He joined Ilsin Construction Industry, the predecessor of IS Dongseo. In 2012, at the age of 35, he was appointed CEO of IS Dongseo, leading new business development and business diversification. Although he has stepped down as CEO, he continues to oversee overall management while maintaining his position as an internal director. He avoids exposure to the media or the public. #KwonMinseok #ISDongseo #environmentalbusiness #recycling #mergersandacquisitions #constructionwaste #wastebattery #CEO #businessdiversification #management
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Director of IS Dongseo
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Chairman of Chung-Ang University
Lee Hyun-soon
- Lee Hyun-soon is the 12th Chairman of Chung-Ang University, having taken office on November 6, 2023. He aims to create a powerful growth engine for the university based on change and innovation. Lee is recognized as the first Korean to develop a car engine and is considered one of Korea's representative Chief Technology Officers (CTOs). He was born on November 11, 1950, in Seoul. After graduating from Seoul High School, he majored in Mechanical Engineering at Seoul National University and obtained his Master’s and Ph.D. in Engineering from the State University of New York at Stony Brook. He worked in the engine development department at the GM Research Lab before moving to Hyundai Motor Company, where he served as Vice Chairman overseeing research and development. He then became a visiting professor at Seoul National University and served as an advisor at Doosan, eventually becoming Vice Chairman responsible for technology at Doosan. Lee is a regular member of the National Academy of Engineering of Korea. He has served as a member of the National Science and Technology Council, the National Science and Technology Advisory Council, and the President of the Korean Society of Automotive Engineers. He also took his first step as an educational administrator as the Chairman of the National University Corporation, Ulsan National Institute of Science and Technology (UNIST). After serving as the Chairman of UNIST, he was appointed as the Chairman of Chung-Ang University. Lee's achievements in technological development and contributions to industry and academia have been recognized, providing a foundation for his involvement in the education sector. He focuses on nurturing outstanding talent in science and engineering. Given his background as an engineer in the industry, Lee has a clear vision for nurturing industrial technology talent. He is determined to enhance the university's competitiveness and its social role. Keywords #LeeHyunsoon #ChungAngUniversity #FirstKoreanEngineDeveloper #DoosanCTO #EngineeringEducation #KoreanAutomotiveIndustry #IndustrialTechnology #UniversityChairman #EducationalLeadership #InnovationInEducation
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Chairman of Chung-Ang University
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Chairman of Haesung Industrial
Dan Jae-wan
- Dan Jae-wan is the chairman of Haesung Group. He serves as the chairman of Haesung Industrial, Hankuk Paper, Keyang Electric Machinery, and Haesung DS, as well as the managing director of Hankuk Package. He was born on March 21, 1947, in Seoul. He is the eldest son among 9 siblings, born to his father Dan Sa-cheon, the founder of Haesung Group, and his mother, Kim Chun-soon. He graduated from Seoul Kyungbok High School in 1966. In 1970, he graduated from Yonsei University with a degree in Philosophy. Dan Jae-wan joined Keyang Electric Machinery in 1978. From 1985 until March 2020, he served as the managing director and chairman of Haesung Industrial. After being the vice chairman of Hankuk Paper in 1987, he rose to become the managing director and chairman. In 1997, he was appointed as the managing director and chairman of Keyang Electric Machinery. In 2001, he became the managing director and chairman of Hankuk Package, a subsidiary of Hankuk Paper. Dan Jae-wan's father, Dan Sa-cheon, was known as the 'Cash King' in the Myeongdong financial industry in the 1950s and 1960s. Among Dan Sa-cheon's second-generation heirs, Dan Jae-wan was the only one listed in the shareholder registry of Hankuk Paper, being designated as the successor early on. Dan Jae-wan is known to own a significant amount of real estate in areas like Gangnam, Seoul, and is recognized for his substantial financial resources. He is referred to as the 'reclusive businessman' for not often appearing in public events.
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Chairman of Haesung Industrial
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Chairman of Daedong
Kim Jun-sik
- Kim Jun-sik is the Chairman and CEO of Daedong. He shares the role of Co-CEO with Vice Chairman Won Yoo-hyun. Kim also serves as the CEO of Daedong's affiliates: Daedong Metal, Daedong Gear, and Daedong Mobility. Kim is accelerating Daedong's Digital Transformation. Kim was born on May 20, 1966, to his father, former Daedong Chairman Kim Sang-soo, and his mother, Park Kyung. His birthplace is Jinju, Gyeongnam Province. He graduated from Bosung High School in Seoul and studied Business Administration at Korea University. Immediately after graduating from Korea University, Kim joined Daedong (then known as Daedong Industrial) managed by his father. He worked his way up, serving as Head of Planning and Coordination, Executive Director, and Vice President. In 2005, he was appointed Co-CEO of Daedong. Subsequently, Kim held positions as President and Vice Chairman of Daedong, and in 2017, he became Co-CEO and Chairman of Daedong Industrial. Kim transformed Daedong into a high-tech company, growing it into a mid-sized enterprise with sales reaching KRW 1 trillion (US$ 726 million). Keywords: #KimJunSik #Daedong #DigitalTransformation #HighTechCompany #KoreaUniversity #BosungHighSchool #Jinju #Gyeongnam #KRW1Trillion #MidSizedEnterprise
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Chairman of Daedong
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CEO of Spigen Korea
Kim Dae-young
- Kim Dae-young is the CEO & President of Spigen Korea. Founded after the release of the iPhone in 2007, he led the expansion of the smartphone case and accessory market, building a successful mid-sized company with sales in the KRW 400 billion range. Kim Dae-young was born on October 13, 1971. He graduated from Seoul High School and the Physics Department of Chung-Ang University. After graduating, he worked as a salesperson at SsangYong Information & Communications and K-Coms before founding Spigen Korea in 2009. Regarded as a pioneer in discovering new markets in the IT industry and an excellent salesman. It is worth noting that despite the impression given by the company name, Spigen Korea is not a foreign company.
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CEO of Spigen Korea
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Chairman of LS Group
Koo Ja-yeol
- Koo Ja-yeol is the Chairman of Board of Directors at LS. He plays a strong role as Chairman during a time of expanding investments by the LS Group. He was born on March 2, 1953, in Jinju, Gyeongsangnam-do. His father, Koo Pyung-hoe, is the younger brother of LG Group founder Koo In-hoe, the honorary chairman of E1. He graduated from Seoul High School, studied business at Korea University, and graduated from London Business School at the University of London. He held positions at LG International and LG Cable before LS Group's independence, including overseeing the international division at LG Investment & Securities (now NH Investment & Securities) and serving as deputy head of the finance department at LG Cable (now LS Cable & System). After the separation from LG Group, he has been in charge of major LS Group subsidiaries. He served as Vice Chairman of LS Cable and President of the LS Cable & LS Mtron business divisions. Following his cousin Koo Ja-hong, the founding chairman of LS Group, he took over as chairman of LS Group and later stepped down to become Chairman of the Board of Directors at LS. During his tenure as LS Group chairman, he expanded the group's business into eco-friendly energy policies worldwide, focusing on undersea cables, solar energy, and smart energy as new growth drivers. To adapt to the Fourth Industrial Revolution era and move away from traditional manufacturing, he vigorously promoted digital transformation by integrating technologies such as artificial intelligence and big data at the group level. He emphasizes on-site management in a field commander style, showing strong spirit of challenge and drive.
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Chairman of LS Group
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Chairman of Kyobo Life Insurance
Shin Chang-jae
- Shin Chang-jae is the Chairman and CEO of Kyobo Life Insurance. He is the only owner-CEO in the domestic life insurance industry and serves as a co-CEO alongside President Cho Dae-gyu. He is actively pushing for the transition to a holding company and the establishment of a comprehensive financial group. Shin is showing strong determination to resume the IPO, which was previously halted due to disputes with financial investors. Born on October 31, 1953, in Seoul, he is the eldest son of Shin Yong-ho, the founder of Kyobo Life Insurance. After graduating from Gyeonggi High School in Seoul and Seoul National University College of Medicine, he obtained a master's degree and a doctorate in medicine from Seoul National University Graduate School. He worked as an obstetrician-gynecologist and served as a professor at Seoul National University College of Medicine for 10 years. After being diagnosed with cancer, he accepted his father's request, who was considering succession issues, to join the management of Kyobo Life as Vice Chairman. Under his leadership, Kyobo Life grew from a loss-making company to the third largest in the life insurance industry by total assets. He advocates for "ambidextrous management," generating profits from the life insurance business with one hand while discovering future growth engines like MyData and healthcare services with the other. His management style is generally cautious but can be bold at times. He also emphasizes open communication with employees. #KyoboLife #ShinChangJae #lifeinsurance #holdingcompany #IPO #finance #healthcare #MyData #leadership #businessgrowth
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Chairman of Kyobo Life Insurance
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CEO of KB Securities
Kim Sung-hyun
- Kim Sung-hyun is the CEO of KB Securities. He shares the role of co-CEO with President Lee Hong-gu, overseeing corporate finance (IB), wholesale, the research center, and global business. He also serves as the head of the Corporate Investment Banking (CIB) division at KB Financial Group, focusing on consolidating the group's capabilities and securing a competitive edge in the investment banking market. Kim was born on August 5, 1963, in Gwangyang, Jeollanam-do. He graduated from Suncheon High School and Yonsei University with a degree in economics. He began his career as a 'securities man' at Daishin Securities' Myeong-dong branch. After moving to Hannuri Investment & Securities, he was promoted to executive director. When Hannuri Investment & Securities was acquired by KB Kookmin Bank, he became part of KB Securities, eventually rising to the positions of head of the Corporate Finance Division and head of IB Operations before being appointed CEO. Kim is an expert in investment banking (IB) who has led corporate finance teams since his time at Daishin Securities. He is known for his practical sense and insight. Over his 30-year career in the domestic financial investment industry, he has built a significant network of contacts. In his work, he is meticulous and thorough, but in private, he is known to be easygoing.
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CEO of KB Securities
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President of Hallym University
Choi Yang-hee
- Choi Yang-hee is the 11th President of Hallym University, having assumed office on September 1, 2021. His term is for four years. He is dedicated to transforming the university into a dynamic platform for exchange, where social change is led and new futures are designed. He is recognized as one of the top experts in the fields of AI, ICT, and convergence in South Korea. He was born on July 27, 1955, in Gangneung, Gangwon Province. He graduated from Seoul Kyunggi High School and the Department of Electronic Engineering at Seoul National University. He earned a master’s degree in Electrical and Electronic Engineering from the Korea Advanced Institute of Science (KAIS), which later merged with the Korea Institute of Science and Technology (KIST) to become KAIST. He received his Ph.D. in Computer Science from the National Institute of Telecommunications (ENST) in France. He has served as the Director of the Advanced Convergence Technology Institute at Seoul National University, the inaugural Chairman of the Samsung Future Technology Promotion Foundation, and as the Minister of Science, ICT, and Future Planning under the Park Geun-hye administration. As the Chair of the AI Committee at Seoul National University, he established the SNU AI Master Plan. Hallym University was selected in the first year of the Ministry of Education's large-scale financial support project, Glocal University 30, securing KRW 100 billion (approximately USD 72.6 million) in national funding over five years. With this, he declared a new start for Hallym University as a Glocal University, under the vision of 'an open university cultivating creative convergence talents based on AI.' #ChoiYanghee #HallymUniversity #AI #ICT #GlocalUniversity #SouthKorea #education #technology #science #innovation #futureplanning
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President of Hallym University
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CEO & President of Coreana Cosmetics
Yu Hak-su
- Yu Hak-su is the CEO of Coreana Cosmetics. Born on June 19, 1960, as the eldest son of Yu Sang-ok, the founder of Coreana Cosmetics. He graduated from Yongsan High School, Sejong University with a major in English literature, and from the Graduate School of Business at Korea University. Established on November 15, 1988, Coreana Cosmetics was considered one of the top three domestic cosmetics companies in the 1990s along with Amorepacific and Hankook cosmetics. At that time, a famous TV commercial featured actress Chae Si-ra singing 'Coco Coco~ Coreana' with cosmetics on the tip of her nose. Within five years of its establishment, Coreana Cosmetics surpassed sales of KRW 100 billion and achieved listing on the KOSDAQ market within ten years. Coreana Cosmetics is aiming for a resurgence by diversifying distribution channels through online platforms in the era of evolving internet trends.
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CEO & President of Coreana Cosmetics
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Chairman of Shilla Group
Park Joon-hyung
- Park Joon-hyung is the Chairman of Shilla Group Park Joon-hyung is the Chairman of Shilla Group. Through business diversification, he expanded the group's business areas to include steel manufacturing, agricultural distribution, and the food service industry. He was born on October 3, 1936, in Gyeongsan, Gyeongsangbuk-do. He graduated from Daegu Gyeongbuk High School and then studied economics at Dongguk University. Afterward, he completed the Advanced Management Program at Seoul National University's Business School and received an honorary doctorate in economics from his alma mater, Dongguk University. In 1963, he became the CEO of Myeonghwa Textile, founded by his older brother Park Seong-hyung, the former Chairman of Shilla Textile. He then established Shilla Trading (formerly Jeonasan Industry) and became its CEO. He has served as an executive member of the Seoul Chamber of Commerce, a director of the Federation of Korean Industries, and the chairman of the Korea Deep-Sea Fisheries Association. He is also active as the chairman of the Shilla Cultural Scholarship Foundation. After establishing Shilla Trading, he grew it into a mid-sized enterprise with annual sales of KRW 900 billion (US$ 653.5 million). As of June 2024, despite being 89 years old, he continues to lead the management of Shilla Group with strong responsibility. Keywords: #ParkJoonhyung #ShillaGroup #BusinessDiversification #SteelManufacturing #AgriculturalDistribution #FoodServiceIndustry #KoreanBusinessLeader #DonggukUniversity #ShillaTrading #KoreanEconomy
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Chairman of Shilla Group
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Chairman of Sigongtech
Park Ki-seok
- Park Ki-seok is the chairman of Sigongtech. He is the founder of Sigongtech, recognized for pioneering South Korea's exhibition culture industry. Park Ki-seok was born on February 20, 1948, in Boseong-gun, Jeollanam-do. He graduated from Suncheon High School and the Department of German Language and Literature at Korea University. After graduating from university, he joined Yulsan Group, where he conducted business in the Middle East and later started a business selling construction materials in the Middle East. In 1988, he founded Sigongtech and ventured into the exhibition business, which was virtually non-existent domestically at the time, growing the company into the top domestic player in this field. He also focused on the education content business, developing i-Scream edu and i-Scream media into competitive digital education content companies. It is worth noting that Sigongtech is a different company from the publishing company Sigongsa.
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Chairman of Sigongtech
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Chairman of National Credit Union Federation
Kim Youn-sik
- Kim Yoon-sik is the Chairman of the National Credit Union Federation of Korea. He is working to bring the performance of credit unions back on track amidst the prolonged high interest rates and high inflation. He also serves as the Chairman of the Asian Confederation of Credit Unions, a director of the World Council of Credit Unions, a director of the International Raiffeisen Union, CEO of the Muminjae Corporation, and CEO of the Hotel Ariana. In 2023, the credit union successfully terminated an agreement with the government to improve management performance, which was a condition for receiving public funds of KRW 260 billion (US$ 189 million). He was born in Daegu in 1956. He graduated from Daeryun High School in Daegu and studied physical therapy at Shingu University in Seongnam, Gyeonggi Province. He has held various positions including Chairman of the World Council of Credit Unions' COVID-19 Response Committee, Chairman of the Daily Top Leaders Academy Alumni Association, CEO of the Muminjae Calligraphy Museum, CEO of Hyosung Cheonggwa, Vice Chairman of the Serim Credit Union, Chairman of the Daegu Credit Union Regional Council, Director of the National Credit Union Federation of Korea, CEO of Ariana Hotel, and Vice Chairman of the Democratic Party of Korea's Policy Committee. Transitioning from a calligrapher to a businessman and then to a financier, he was appointed as the Chairman of the National Credit Union Federation of Korea. Since becoming the Chairman of the National Credit Union Federation of Korea in 2018, he has been serving his second term since 2022. While commercial banks are reducing branches by enhancing non-face-to-face services, he emphasizes that credit unions should increase branches to realize social value. Known as a crisis manager, he has taken on multiple companies suffering from deteriorating performance and resolved their management difficulties. He stresses balanced growth between large and small member unions and is pursuing the 'Eight Inclusive Finance Tasks' to seek the realization of social financial value. #KimYoonSik #NationalCreditUnionFederationofKorea #CreditUnion #AsianConfederation #WorldCouncil #InternationalRaiffeisenUnion #PublicFunds #ManagementImprovement #SocialValue #InclusiveFinance
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Chairman of National Credit Union Federation
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CEO & President of Posco International
Lee Kye-in
- Lee Kye-in is the CEO & President of Posco International. He focuses on leading the leap from a 'comprehensive trading company' to a 'global comprehensive business company' by concentrating his capabilities after Posco Group's energy business was integrated into Posco International and he took over as CEO the following year. He was born on December 5, 1964. He graduated from Yongmoon High School in Seoul and majored in Economics at Sogang University. He also obtained a Master of Business Administration (MBA) from Sungkyunkwan University Graduate School of Business. In 1989, he joined Daewoo and held various positions in the steel trade sector, including Daewoo International Steel Team Leader, Istanbul Branch Manager, Posco Daewoo HR Support Manager, Posco International Parts & Materials Division Manager, and Steel Trade Division Manager. In 2023, he took on the role of head of the global business division overseeing all business operations after Posco International merged with Posco Energy. He is a true 'Businessman' who has been in the trading sector for 35 years. He is known for his modesty and approachability, often engaging in conversations with employees without airs.
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CEO & President of Posco International
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Chairman of Youngone Corporation
Sung Ki-hak
- Sung Ki-hak is the chairman and CEO of Youngone Corporation. He also serves as the CEO of Youngone Outdoor. He founded Youngone Corporation and grew it into a global company with KRW 3 trillion in revenue by solely focusing on outdoor products. They export products of famous overseas sports brands like The North Face through Original Equipment Manufacturing (OEM) to countries like Bangladesh, Vietnam, China, and El Salvador. He was born on July 8, 1947. He graduated from Seoul Saemaul High School and Seoul National University with a major in Trade. Since his student days at Seoul National University, he has had a passion for sports and developed an interest in outdoor sportswear while being active in the mountaineering club. At the age of just 27, encouraged by a foreign buyer, he established Youngone Corporation while working in a trading company. Youngone Corporation has never been in the red since its founding and has continued to operate in the black. He is known for making bold decisions by reading the market well. He is also recognized for his efforts in promoting gender equality and creating jobs for women.
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Chairman of Youngone Corporation
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CEO of Korea Water Resources Corporation
Yun Seog-Dae
- Yoon Seok-dae is CEO of Korea Water Resources Corporation. He is striving to expand South Korea's water industry globally. Born on March 1, 1967 (lunar calendar) in Gongju, Chungnam-do. He graduated from Dongsan High School in Daejeon and the Department of Sociology at Chungnam National University. During his time at Chungnam National University, he served as the president of the student council and vice-chairman of the National Council of Student Representatives, participating in events such as the June 10th Democratic Uprising. He earned a master's degree in urban planning from the Graduate School of Regional Development at Hannam University and a doctorate in engineering from Soongsil University. After graduation, he joined Kumsung Beakjoe Construction Corp, a mid-sized construction company in Daejeon, at the suggestion of Chairman Jung Sung-wook. He took on roles in management planning and business development. He was also appointed CEO of Taedong Development, a real estate development and consulting subsidiary established in 1995. In 1995, he entered politics by joining the Democratic Party. He ran as the candidate for the United Democratic Party in Seogu District, Daejeon, in the 15th National Assembly election in 1996 but was defeated by Lee Won-beom of the United Liberal Democrats. As the regional chairman of the United Democratic Party in Seogu, Daejeon, Yoon Seok-dae joined the founding members of the Grand National Party during the merger of the United Democratic Party and the New Korea Party in November 1997. During this process, he established a connection with former Grand National Party leader Lee Hoi-chang and assisted in the presidential election. As a conservative politician, he joined the Bareun Party, Bareunmirae Party, and the New Conservative Party, eventually returning to the United Future Party (now the People Power Party) during the conservative unification process in 2020. During the 20th presidential election, he served as the Director of Vision Planning in the Economic and Social Committee and a policy advisor in the Central Election Committee for Yoon Seok-youl, the People Power Party's presidential candidate. #YunSeokDae #KoreaWaterResources #SouthKorea #WaterIndustry #GlobalExpansion #Chungnam #Daejeon #ConservativePolitician #PeoplePowerParty #EconomicAdvisor
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CEO of Korea Water Resources Corporation
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Chairman of Itcen
Kang Jin-Mo
- Kang Jin-mo is the Chairman of ITCEN Group. He was born on September 18, 1968, in Sangju, Gyeongsangbuk-do. He graduated from Ajou University with a degree in Physics in 1994 and earned a master's degree in Engineering Management from Yonsei University's Graduate School of Engineering in 2011. In 1994, he joined the first-generation venture company, Daou Technology. He later ventured into entrepreneurship, but his efforts were halted due to the aftermath of the IMF crisis, leading him to join Yeolrim Technology in 1998. At Yeolrim Technology, he was in charge of the network equipment business and laid the foundation for his independence by founding ITCEN in 2005. Since 2016 and as of June 2024, he has been serving as the Chairman of ITCEN Group. In 2022, he was appointed President of the Korean Institute of Information Scientists and Engineers. Since 2019, he has set a record of "achieving trillion-won sales for three consecutive years." #KangJinMo #ITCENGroup #DaouTechnology #YeolrimTechnology #AjouUniversity #YonseiUniversity #KoreanInstituteofInformationScientistsandEngineers #EngineeringManagement #IMFCrisis #TrillionWonSales
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Chairman of Itcen
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Chairman of Samwha Capacitor Group
Oh Young-joo
- Oh Young-joo is the chairman of Samwha Capacitor Group. He also serves as the CEO of subsidiaries such as Samwha Capacitor, Samwha Electronics, Samwha Electric, and as the chairman of the Samwha Jibong scholarship foundation. He focuses on research and development of capacitors and other electronic components. He is dedicated to nurturing talents in the engineering field. Born on January 16, 1959, he is the eldest son among two sons and two daughters of his father Oh Dong-sun, the founder of Samwha Capacitor Group, and his mother, Mrs. Kim Dong-yun. He was born in Seoul. He graduated from Myongji University with a degree in Business Administration and obtained a master's degree in Business Administration from Roosevelt University in the United States. Starting as a director at Samwha Electronics, he learned about management through positions as a director and executive director at Samwha Electric, Samwha Capacitor, and eventually became the vice chairman of Samwha Electronics in 1993 before assuming the position of chairman of Samwha Capacitor Group in 1999. He possesses a modest personality. He has a strong passion for research and development, leading the technological advancements in Multilayer Ceramic Capacitors (MLCC).
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Chairman of Samwha Capacitor Group
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CEO & Chairman of i-Sens
Cha Geun-sig
- Cha Geun-sig is the CEO and chairman of i-Sens. He is the co-founder of i-Sens, the leading domestic blood glucose monitoring company. Cha Geun-sig was born on March 7, 1954. He graduated from the Department of Chemistry at Korea University and obtained a master's degree from the same school's graduate school of chemistry. He earned a Ph.D. in chemistry from the University of Michigan in the United States. Later, he was appointed as a professor in the Department of Chemistry at Kwangwoon University, where he taught students. While working as a professor, he established i-Sens, a related venture company, in 2000 while conducting a national project on the development of biomaterial analysis devices. He considers the continuous glucose monitoring (CGM) device, which can be attached to the body in patch form without the need for blood sampling, as the company's future growth engine and is focusing on investment and market expansion.
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CEO & Chairman of i-Sens
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Chairman of The Export-Import Bank of Korea
Yoon Hee-sung
- Yoon Hee-sung is the Chairman and President of The Export-Import Bank of Korea. He is the first internal candidate to become the bank's Chairman and President. He is focusing on supporting export recovery by centering on advanced strategic projects, defense industry, and large-scale projects in the Middle East. To prevent the impact of major resource supply uncertainties on domestic companies and industries, he is paying attention to financial support for stabilizing the supply chain. He was born on September 27, 1961. He graduated from Whimoon High School and Seoul National University with a degree in Economics. He also obtained a Master's degree in Public Administration from Seoul National University Graduate School. After joining the Export-Import Bank, he served as the Director of Public Relations, Director of International Finance, and Head of Capital Markets before becoming the Head of Innovative Growth Finance. After retirement, he returned as the Chairman and President of the Export-Import Bank. He is praised for his excellent insights and sensitivity in international finance. He is proactive in communication and maintains good relationships with his employees.
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Chairman of The Export-Import Bank of Korea
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Vice Chairman of CJ CheilJedang
Kang Sin-ho
- Kang Sin-ho is the Vice Chairman and CEO of CJ CheilJedang. Focused on turning around CJ CheilJedang's performance. Actively pursuing the sale of loss-making businesses. Working hard to expand 7 key global strategic items in the overseas food business. Born on August 3, 1961, in Pohang, Gyeongsangbuk-do. Graduated from Pohang High School, studied Business Administration at Korea University, and completed a master's program in Business Administration at KAIST. Started his career at Samsung Group, later joining CJ Group by moving to the Management Team of CJ CheilJedang. Held positions such as HR Team Leader at CJ Holdings, Head of Management Support at CJ CheilJedang, and Director of PI Promotion Team at CJ Logistics. Earns strong trust from Lee Jay-hyun, CJ Group Chairman. Contributed to CJ Logistics achieving record-breaking performance continuously while serving as CEO. Regarded as an HR and management strategy expert at CJ Group. Known as a rational manager who does not make unrealistic demands when setting business plans or goals. Took over as CEO of CJ Freshway and tripled the operating profit within a year. Led the global expansion of K-Food focusing on the 'bibigo' brand while serving as the head of the Food Business Division at CJ CheilJedang. The CJ CheilJedang US food business, in which Kang Sin-ho was involved in the acquisition, became a core pillar. Possesses a meticulous personality and values communication with employees. Once trust is given to an employee, it is not easily withdrawn. Enjoys hiking and golfing and is a thirsty soul.
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Vice Chairman of CJ CheilJedang
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Chairman of Hanyang University
Kim Chong-yang
- Kim Chong-yang is the Chairman of Hanyang University. His father, Kim Yeon-jun, was an educator, entrepreneur, and musician who founded Hanyang University. Through the foundation, he oversees Hanyang University, Hanyang Women's University, Hanyang Technical High School, Hanyang Middle School, Hanyang Women's High School, Hanyang Women's Middle School, Hanyang Elementary School, and Hanyang Women's University Kindergarten. He was born on September 4, 1950, in Seoul. He graduated from Seoul National University High School and Yonsei University with a degree in Education, studied at New York University Graduate School, and earned a Ph.D. in Education from Columbia University Graduate School. He joined Hanyang University as a professor in the Department of Educational Technology in 1984. He was appointed president in 1993 and served for 18 years until 2011, after which he moved to the position of chairman. He has served as President of the Korean Educational Technology Society, Vice President of the Korean Olympic Committee, Vice President of the Association of Private University Presidents, Vice President of the University Social Service Association, and Advisor to the National Science and Technology Council. He is humble yet bold. He has a keen interest in university sports and contributed to hosting the World Universiade Games in Korea. Following his father's educational philosophy, he participates in the Sunfull Movement and human rights activities. He is a Christian and enjoys hiking. His wife is Choi Kyung-hee, a cousin of SK Group Chairman Chey Tae-won. #HanyangUniversity #KimChongryang #KimYeonjun #education #industrialinnovation #talentdevelopment #universitymanagement #educationalphilosophy #SunfullMovement #universiadesports
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Chairman of Hanyang University
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Chairman of Taihan Textile
Seol Beom
- Seol Beom is the Chairman of Taihan Textile. He is focusing on improving Taihan Textile's financial structure. Additionally, he is accelerating the business structure transition of Taihan Textile. Born on March 5, 1958, as the eldest son between his father, the former honorary chairman of Taihan Textile, Seol Won-shik, and his mother, Im Hee-sook. He was born in Seoul. He graduated from PaiCahi High school in Seoul and majored in Business Administration at Yonsei University. He joined his father's company, Taihan Textile, and rose to become the CEO in 1996 after holding positions such as executive director, managing director, and vice president. In 1998, he became the Chairman of Taihan Textile. He is a third-generation leader who became the chairman at the young age of 41. He possesses a modest and gentle personality. He enjoys sports and was active as a rugby player during his time at Yonsei University.
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Chairman of Taihan Textile
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CEO of SoluM
Jun Sung-ho
- Jun Sung-ho is the CEO of SoluM. A 'Samsung Man' with a career at Samsung Electronics and Samsung Electro-Mechanics. Founded SoluM in 2015 after spinning off from Samsung Electro-Mechanics. Born on July 17, 1959, in Seoul. Graduated from Seoul High School and Hongik University with a degree in Electronic Engineering. Joined Samsung Electronics in 1983, rising to Vice President, then moved to Samsung Electro-Mechanics in 2014 as the Business Unit Head (Vice President) for the DM (Digital Module) division before becoming the CEO of SoluM in 2015. Developed the spun-off business from Samsung Electro-Mechanics into a solid electronic components company with nearly KRW 2 trillion in revenue. Particularly excelled in the ESL (Electronic Shelf Label) business, transforming it from vague potential to a global leader. Pioneering new businesses in power modules for electric vehicle chargers, various sensors, healthcare, smart streetlights, and more for the future.
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CEO of SoluM
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Vice Chairman of Samsung Electronics
Chung Hyun-ho
- Chung Hyun-ho is the Vice Chairman and Head of Samsung Electronics' Business Support Task Force (TF). He leads the Business Support TF, responsible for Samsung Electronics' future strategy and personnel management, and is seeking ways to respond to the semiconductor conflict between the United States and China. Born on March 6, 1960, in Seoul, he graduated from Yonsei University with a degree in Business Administration and obtained an MBA from Harvard Business School in the United States. He joined Samsung Electronics' International Finance Department and worked in the Financial Team of Samsung's secretarial office, the predecessor of the Samsung Future Strategy Office. After serving as the Head of Samsung Electronics' IR Group, he worked as a managing director in the Strategic Planning Office, the successor organization to Samsung's secretarial office. He served as the Head of the Support Team for the Wireless Business Division and the Head of the Digital Imaging Business Division at Samsung Electronics, and later held the positions of Head of the Management Diagnosis Team and the Personnel Team in the Samsung Future Strategy Office. Although he took responsibility for the dismantling of the Samsung Future Strategy Office and resigned, he returned the same year as the Head of the Business Support TF at Samsung Electronics. Chung Hyun-ho faced difficulties when allegations arose that Samsung Biologics concealed evidence under the direction of the Samsung Electronics Business Support TF ahead of a prosecution investigation related to the accounting fraud incident. He is a financial and strategic planning expert who enjoys the deep trust of Chairman Lee Jae-yong and other members of the owner family. He is considered the 'second-in-command' of the Samsung Group, following former Group Strategic Planning Office Vice Chairman Lee Hak-soo and former Future Strategy Office Vice Chairman Choi Ji-sung. #Samsung #ChungHyunHo #BusinessSupportTF #semiconductorconflict #strategicplanning #SamsungBiologics #accountingfraud #LeeJaeYong #SamsungFutureStrategyOffice #KoreanBusinessLeadership
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Vice Chairman of Samsung Electronics
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CEO of NHN
Chung U-jin
- Chung U-jin is the CEO of NHN. He is focusing on enhancing the competitiveness of the main game business and increasing profitability in the cloud and easy payment markets. He was born on March 9, 1975, in Germany. He graduated from Seoul National University with a degree in Sociology. He joined Search Solution, which was later acquired by NHN, leading him to move to NHN. After working at NHN for over 10 years, he was appointed as the CEO of NHN Entertainment (now NHN), having held positions such as Head of Business Development Group in the U.S., Head of Planet Business, and Head of Casual Game Business. Originally, NHN was established in 2013 through the spin-off of Naver's game business unit, Hangame. It was initially named NHN Entertainment but changed to NHN in 2019. He has built trust with Lee Joon-ho, the Chairman of NHN, over a long period. His management philosophy emphasizes ensuring autonomy and creativity for employees.
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CEO of NHN
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CEO of Moorim SP
Lee Do-kyun
- Lee Do-gyun is the CEO of Moorim SP. He also serves as the CEO of three listed companies within the group, including Moorim P&P and Moorim Paper. Born on May 12, 1978, as the eldest son of the founder Lee Moo-il and the chairman Lee Dong-wook of Moorim Group. Lee Do-gyun majored in Business Administration at New York University. In 2007, he joined Moorim Paper's sales headquarters, where he received management training in the paper industry and strategic planning. He was promoted to executive director in 2010 and managing director in 2012. Since 2020, Lee Do-gyun has been leading Moorim SP, Moorim P&P, and Moorim Paper as the CEO. He also serves as a registered executive of unlisted companies such as Moorim Capital, Moorim Powertech, and Moorim Logitech. In March 2024, he was reappointed as an internal director of the three listed companies within the group, including Moorim SP, Moorim P&P, and Moorim Paper.
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CEO of Moorim SP
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Chairman of the board at HYBE
Bang Si-hyuk
- Bang Si-hyuk(Korean: 방시혁) is the chairman of the board at HYBE. He became the first head of a domestic entertainment company to exceed KRW 5 trillion in assets. He is focusing on diversifying the revenue structure away from the main artist, BTS. Continuously discovering new artists through a multi-label system. Recently, facing conflicts with its subsidiary label ADOR, the stability of the multi-label system is being shaken, highlighting the need for a reassessment. He was born on August 9, 1972, in Seoul. He graduated from Kyunggi High School and the Department of Fine Arts at Seoul National University. He nurtured his dream of becoming a musician since starting band activities in middle school but focused on studying according to his parents' wishes. After entering Seoul National University, he engaged in composition activities and worked as a producer and chief composer at JYP Entertainment. He founded Big Hit Entertainment and led BTS to become a global artist. In 2020, he became the CEO and chairman of Big Hit Entertainment. After changing the company name to HYBE in 2021, he now only holds the position of chairman. He is known as a genius who constantly strives. He has a close relationship with composer Kim Hyung-suk and Park Jin-young, the Chief Creative Officer (COO) of JYP Entertainment.
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Chairman of the board at HYBE
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Chairman of KG Group
Kwak Jae-sun
- Kwak Jae-sun is the chairman of KG Group. He started KG Group from scratch, expanding into chemicals, steel, eco-friendly energy, IT, consulting, education, media, leisure, and dining businesses. After acquiring Ssangyong Motor, he focuses on electric vehicle transition and global expansion for KG Mobility (formerly Ssangyong Motor) recovery. Born on January 15, 1959, in Daejeon. He graduated from Incheon National University with a degree in Mechanical Engineering and obtained a master's degree from Sungkyunkwan University Graduate School of Business. After graduating from high school, he started his business by founding a construction plant company, Saeil Engineering, with a partner in 1985. In 2003, he acquired Gyeonggi Chemical, a struggling fertilizer company under rehabilitation, laying the foundation for business expansion. He rapidly expanded his business empire by acquiring and reviving troubled companies through mergers and acquisitions (M&A) regardless of industry. Starting with Gyeonggi Chemical (now KG Chemical), he successfully normalized the management by acquiring Sihwa Energy (now KGETS), Yellow Cap, Zero In, Woongjin Passone, Edaily, Inicis, Eduwon, KFC Korea, and Dongbu Steel successively. In 2022, he acquired Ssangyong Motor, renamed it KG Mobility, and assumed the position of chairman. He demonstrates a 'straightforward' management style, executing decisions promptly without hesitation.
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Chairman of KG Group
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Chairman of LS ELECTRIC
Koo Ja-kyun
- Koo Ja-kyun is the Chairman and CEO of LS ELECTRIC Co., Ltd. He also serves as the CEO of LS Mtron and LS Metal, and concurrently holds the position of Chairman of the Korea Industrial Technology Association. Koo is actively involved in the smart energy business that integrates power equipment, automation, metals, energy storage systems (ESS), and energy management systems (EMS). Born on October 8, 1957, in Seoul as the third son of the late Chairman E1 of the Koo Pyung-hoe. He graduated from Seoul Central High School and the College of Law at Korea University. He then obtained a master's and doctoral degree in International Business from the University of Texas in US. Starting his career as a professor at Kookmin University and the Graduate School of International Studies at Korea University, he later joined LS Industrial Systems (now LS ELECTRIC) as an executive vice president. Having served as the President and Vice Chairman of LS Industrial Systems, he is currently the Chairman of LS ELECTRIC. Known for emphasizing principles while possessing a gentle charisma.
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Chairman of LS ELECTRIC
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Chairman of Hwacheon Group
Kwon Young-ryual
- Kwon Young-ryual is the chairman of Hwacheon Group. He also serves as the honorary chairman of Hwacheon Machine Tool, chairman of Hwacheon Machinery, and director of Seoam Cultural Foundation. He is stepping down from the representative director positions of major subsidiaries to accelerate the succession of Hwacheon Group's management rights. Born on July 11, 1946, as the eldest son among three sons and three daughters between his father, Kwon Seung-kwan, the founder, and his mother, Lady Jiwallye. His birthplace is Gwangju, Jeollado. He graduated from Gwangju High School and majored in Electrical Engineering at Hanyang University. Right after graduation, he joined Hwacheon Machine Tool Co., Ltd. (now Hwacheon Machine Tool). After serving as executive director, managing director, and vice president, he became the president and CEO of Hwacheon Machine Tool in 1989. He then became the chairman of Hwacheon Group in 1997. He was active as the vice chairman of Gwangju Chamber of Commerce and Industry, vice chairman and chairman of the Korea Machine Tool Industry Association, and non-standing vice chairman of the Korea International Trade Association. He is a second-generation business leader who has developed Hwacheon Group into a mid-sized conglomerate. He is recognized for leading the localization of machine tools.
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Chairman of Hwacheon Group
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CEO of Sekonix
Park Eun-kyung
- Park Eun-kyung is the CEO of Sekonix. She is the second generation owner of Sekonix, the leading company in domestic mobile and automotive camera lenses and modules. Her father was the late Park Won-hee, chairman of Sekonix (1939-2023). Park Eun-kyung was born on March 8, 1972, in Seoul. She graduated from Ewha Womans University with a degree in Life Art and obtained a master's degree from Ajou University Graduate School of Business. After graduating from university, she worked in the advertising industry until she joined Sekonix in response to her father's call in 2003. In 2011, she rose to the position of CEO overseeing the automotive business, laying the foundation for the company's future business in the automotive electronics field. She became co-CEO for the first time in 2016 and has been solely responsible for managing Sekonix as the CEO since 2019. She considers camera lenses and modules to be the future growth engines that will be installed in autonomous vehicles, and she is dedicated to research and development, increasing production capacity, and expanding the market. She is a prominent female CEO who is gaining attention in the electronic components industry.
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CEO of Sekonix
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President of Sungkyunkwan University
Yoo Ji-beom
- Yoo Ji-beom is the president of Sungkyunkwan University. He assumed office as the 22nd president on January 2, 2023, with a term of 4 years. He values research enhancement and expansion as the core values of the university. Yoo Ji-beom emphasizes expanding high-level collaborative research through cooperation with overseas research institutions. He is a nanoscientist who developed production technology for graphene, a new material in the field of information technology. His nanoscience paper was published in a world-renowned academic journal and was selected as one of the 'Top 5 Outstanding Papers' in the same year. Yoo Ji-beome was born on September 6, 1959, in Incheon. He graduated from Incheon Jeil High School and Seoul National University with a degree in Metallurgical Engineering. After obtaining a master's degree in Metallurgical Engineering from Seoul National University, he earned a Ph.D. in Electronic Materials from Stanford University in the United States. Yoo worked as a senior researcher at the Electronics and Telecommunications Research Institute (ETRI) and then became a professor in the Department of Materials Engineering at Sungkyunkwan University in 1994. In the university, he served as the Director of the Center for Engineering Education Innovation, Vice President of the Nano Science and Technology Institute, Dean of the College of Engineering, Vice President of the Natural Science Campus, Director of the Industry-Academia Cooperation Office, Director of the Public Equipment Institute, and Director of LINC (Leaders in Industry-University Cooperation). Yoo Ji-beom held positions such as Invited Researcher at Samsung Advanced Institute of Technology, Director of the Nano-Material-Based Human Interface Research Center, Head of the National Research Institute for Nanotechnology, and Chairman of the Nano Technology Research Council, and has been a member of the Korean Academy of Engineering. Since 2022, he has been a member of the National Energy Technology Adjustment Committee. He served as an outside director for Samsung Electro-Mechanics and LMS and is a regular member of the Korean Academy of Engineering. Since March 2024, he has been serving as the Chairman of the Seoul Presidents' Forum. During his term as university president, he actively embraces and leads global management by creating a new brand impact of 'Sungkyun' through global leadership. Yoo is recognized for enhancing our nanotechnology capabilities as a researcher and contributing to the growth of the domestic nano-convergence industry.
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President of Sungkyunkwan University
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Director of Financial Supervisory Service
Lee Bok-hyun
- Lee Bok-hyeon is the Director of the Financial Supervisory Service (FSS). He is tasked with leading financial market stabilization, including supporting capital market value-up and restructuring real estate project financing (PF). He is also dedicated to strengthening the supervision and oversight of the financial sector’s governance and internal controls to enhance consumer protection. Born on October 5, 1972, in Seoul, Lee graduated from Seoul Kyungmoon High School and Seoul National University with a degree in Economics. He passed the 33rd Certified Public Accountant exam and the 42nd Judicial Exam. As a prosecutor from the 32nd Judicial Research and Training Institute, Lee served in various roles, including positions at the Gunsan District Prosecutor's Office, the Ministry of Justice Prosecutor's Office, the Chuncheon District Prosecutor's Office, the Anti-Corruption Investigation Division at the Seoul Central District Prosecutor's Office, and the Economic Crime Division at the Seoul Central District Prosecutor's Office. Lee is the youngest and first Financial Supervisory Service Director to come from a prosecutorial background. With an accounting qualification, he has insight into financial and tax crime investigations. He has a close relationship with President Yoon Suk-yeol and is known as the youngest member of the 'Yoon Suk-yeol Faction.' During President Yoon's days as a prosecutor, they worked together on investigations, including the Hyundai Motor slush fund case and the low-priced sale of Lone Star Exchange Bank. Lee was also dispatched to the special investigation team for the Park Geun-hye·Choi Soon-sil scandal to investigate the Samsung Group succession issue. #LeeBokhyeon #FinancialSupervisoryService #FSS #FinancialMarket #RealEstatePF #ConsumerProtection #KoreanEconomy #YoonSukyeolFaction #FinancialCrime #ProsecutorTurnedDirector
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Director of Financial Supervisory Service
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Co-CEO & Vice Chairman of Mirae Asset Securities
Heo Seon-ho
- Heo Sun-ho is the Vice Chairman and CEO of Mirae Asset Securities, leading the company's professional management in the second-generation system with Vice Chairman Kim Mi-seob. He is recognized as an expert in the retail sector, including pensions, overseas stocks, digital transformation, and wealth management (WM). Born in 1969, he graduated from Suncheon High School and Chosun University with a degree in Economics. He started his career in the securities industry at Choheung Securities and later moved to Daewoo Securities, where he worked in financial product sales and strategic planning. After Daewoo Securities merged with Mirae Asset Securities, he contributed to management support and WM at Mirae Asset Securities. In 2021, he took on the role of overseeing WM at Mirae Asset Securities, and in 2022, he served as the President of the WM Business Division, enhancing the company's asset management capabilities. He is described as cautious and reserved yet possessing a strong spirit of challenge.
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Co-CEO & Vice Chairman of Mirae Asset Securities
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Floor Leader of the People Power Party
Choo Kyung-ho
- Choo Kyung-ho is the Floor Leader of the People Power Party. In the 22nd National Assembly, he must support the policies of the Yoon Suk-yeol government through negotiations with the opposition to legislate them. He also faces the task of defending against the legislative onslaught of the opposition, which has secured a majority of seats, including the special prosecutor bill. Choo was born on July 29, 1960, in Daegu. He graduated from Daegu Gyesung High School, studied Business Administration at Korea University, and obtained a Master's degree in Economics from the University of Oregon in the United States. He passed the 25th Administrative Examination and mainly worked at the Korea Institute of Public Finance, and the Ministry of Economy and Finance. Choo was dispatched to the World Bank as a Senior Economist, then returned to the Ministry of Economy and Finance, where he served as the Director of Banking System and Director of Financial Policy. Choo went on to become the Director of Financial Policy at the Financial Services Commission, Economic and Financial Secretary to the President at the Blue House, and Vice Chairman of the Financial Services Commission before being appointed as the Vice Minister of the Ministry of Economy and Finance. After serving as the Director of the State Affairs Planning Office at the ministerial level, he left public office to run for the general election. He ran for and was elected in the 20th and 21st general elections in Dalseong-gun, Daegu. Choo served as the Director of the Yeouido Research Institute, Head of the Strategic Planning Department at the Liberty Korea Party, and Deputy Chief of Staff for the People Power Party. He was active as the Secretary of the Planning and Coordination Subcommittee of the Presidential Transition Committee in 2022 and was appointed as a candidate for Deputy Prime Minister for the Economy and Minister of Economy and Finance. After stepping down as Deputy Prime Minister for the Economy to run for the 22nd general election, he ran in Dalseong-gun, Daegu, and became a three-term parliamentarian. He was elected as the Floor Leader of the People Power Party. Coming from a background in economics, he is well-versed in various economic aspects, analytical, and strives for communication.
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Floor Leader of the People Power Party
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CEO & Chairman of Hands Corporation
Seung Hyun-chang
- Seung Hyun-chang is the CEO & Chairman of Hands Corporation. He focuses on improving the profitability of Hands Corporation, a company that manufactures aluminum wheels for automobiles. He was born on March 15, 1977, between Seung Geon-ho, former vice president of Donghwa Sanghyup (currently Hands Corporation), and Cha Hee-sun, current director of Haksan Cultural Foundation. His birthplace is Seoul. He graduated from Korea University with a degree in Economics and completed business school at the University of Washington in the United States. He joined Hands Corporation led by Director Cha Hee-sun, starting as a vice president and eventually becoming the CEO & Chairman at the age of 35 in 2012. He is also active as the president of the Korea Automobile Tuning Association. He is a third-generation leader who has grown Hands Corporation into a mid-sized company with annual sales in the 700 billion won range.
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CEO & Chairman of Hands Corporation
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CEO & Chairman of Sejoong
Chun Shin-il
- Chun Sin-il is SEJUNG's CEO & Chairman, the founder of SEJUNG. SEJUNG engages in travel, software, and business process outsourcing. Chun Sin-il was born on September 11, 1943, in Busan. He graduated from Busan Kyungnam High School and Korea University with a degree in Political Science and Diplomacy. After serving in the army as a second lieutenant (ROTC), he worked as a parliamentary secretary and then started his business by founding Dongyang Steel Industry, Taehwa Oil Transportation, and others. Since establishing SEJUNG in 1982, he has led the company for over 40 years. Known for his extensive connections in politics and business, he actively engages in external activities. He has maintained a close relationship with Samsung and POSCO for a long time. He is also known as a close friend of former President Lee Myung-bak.
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CEO & Chairman of Sejoong
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Chairman of Sindoh and Sindoh SDR
Woo Suk-hyung
- Woo Suk-hyung is the chairman of Sindoh. He also serves as the chairman of Sindoh SDR. Born on July 23, 1955, as the eldest son of Woo Sang-ki, the founder of Sindoh, and Choi Soon-young, a former director of Sindoh. He graduated from Hanyang University's Department of Electrical Engineering in 1978 and joined Sindoh in 1980,ascending to the position of president and CEO after serving as head of planning and vice president. In March 2002, following the passing of the founder, Woo Sang-ki, he assumed the position of chairman in July 2003. Since stepping down as president in December 2019, Woo Suk-hyung currently focuses on key issues as the chairman of the board. Building on the legacy of the founder, Woo Sang-ki, known for pioneering copier production in Korea, he expanded the business and grew Sindoh into a leading mid-sized company in the office equipment industry.
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Chairman of Sindoh and Sindoh SDR
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CEO of DL E&C
Seo Young-jae
- Seo Young-jae is the CEO of DL E&C. He is focusing his efforts on stabilizing DL E&C, which is experiencing difficulties in securing profitability, and finding opportunities for a rebound. In his inaugural address, he emphasized overcoming the current crisis in the construction industry through safe worksites and sound financial structures. Given his strength in nurturing new businesses, he is also dedicated to fostering growth engines such as Carbon Capture, Utilization, and Storage (CCUS), Small Modular Reactors (SMR), and hydrogen and ammonia projects. He was born on September 15, 1967. He graduated from Kyungpook National University with a degree in electronic engineering. He earned a master's degree in business administration from the University of Illinois. He began his career at LG Electronics. At LG Electronics, he worked in the TV planning department and the CFO division of the HE Business Division. In 2011, he was promoted to executive director as the head of the smart business division within the HE Business Division. In 2019, after being promoted to senior vice president as the head of the Business Incubation Center in the CSO Division at LG Electronics headquarters, he served as the head of the IT Business Department in the BS Business Division. Having long been responsible for discovering new businesses at LG Electronics, he is expected to accelerate innovation at DL E&C. Seo Young-jae is the third consecutive CEO of DL E&C, including its predecessor Daelim Industries' construction division, to come from LG Electronics. #SeoYoungjae #DLEandC #CEO #constructionindustry #newbusiness #CCUS #SMR #hydrogen #ammonia #innovation
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CEO of DL E&C
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Senior Secretary for Civil Affairs at Presidential Office
Kim Joo-hyun
- Kim Joo-hyun is the first Senior Secretary for Civil Affairs and Justice of the Yoon Suk-yeol government. Yoon revived the position, abolished as a campaign promise, appointing Kim as the first Senior Secretary for Civil Affairs and Justice. Expected to play a role in 'listening to public opinion' and 'personnel verification,' emphasized by President Yoon as a former prosecutor. Kim shares the same name as the Financial Services Commission Chairman. Born in Seoul in 1961. Graduated from Seoul Seorabeol High School in 1980 and received a Bachelor of Laws from Seoul National University Law School in 1985. Completed a master's program at the same university and obtained a Master of Laws (LL.M) from UC Berkeley Law School in the U.S. in 1998. Passed the 26th Judicial Examination in 1986. After completing the Judicial Research and Training Institute in the 18th class in 1989, started a public career as a prosecutor at the Seoul Central District Prosecutors' Office. Subsequently held positions such as Head of Special Investigation Support Division at the Supreme Prosecutors' Office, Head of Prosecution at the Ministry of Justice, Chief Judge of Criminal Division 1 at Seoul Central District Court, and Spokesperson for the Ministry of Justice. Promoted to the position of Deputy Chief Prosecutor at the Seoul Central District Prosecutors' Office in 2009, then served as Head Prosecutor of Anyang Branch at Suwon District Prosecutors' Office, Deputy Chief Prosecutor at Daejeon District Prosecutors' Office, and Director of Planning and Coordination Office at the Ministry of Justice before becoming the Director of Prosecution at the Ministry of Justice in 2013. Became the Vice Minister of Justice in the 58th administration in 2015, then served as Deputy Chief Prosecutor at the Supreme Prosecutors' Office before starting a career as a lawyer in 2017. From 2017 to 2020, worked as the Managing Partner at Baeksan Law Firm and has been working as a lawyer at Kim & Jang Law Firm since 2021. Known for valuing principles and maintaining good communication with colleagues, Kim is highly respected within the prosecution. Kim has a connection with President Yoon from their time working together at the Daegu District Prosecutors' Office and Seoul Central District Prosecutors' Office during their prosecutor days.
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Senior Secretary for Civil Affairs at Presidential Office
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President of Chungbuk National University
Koh Chang-seop
- Koh Chang-sup is the 22nd President of Chungbuk National University. Inaugurated on April 17, 2023, serving a 4-year term. Aiming for a creative knowledge community based on autonomy and communication. Main research areas as an electrical engineer include optimal design of electrical devices, numerical analysis of electromagnetic fields, and non-destructive testing. Born in Jeju-do Seogwipo in 1964. Graduated from Jeju Ohyun High School and Seoul National University with a degree in Electrical Engineering. Obtained master's and doctoral degrees in Electrical Engineering from Seoul National University Graduate School. Worked as a senior researcher at the Production Technology Research Institute, Seoul National University Engineering Research Institute, and Samsung Electro-Mechanics. Appointed as a professor in the Department of Electrical Engineering at Chungbuk National University in 1996. Managed government-university projects and industry-academic cooperation as the head of the National University Promotion Project Team, the Director of the Academic-Industrial Joint Technology Research Institute, and the Director of the BK21 Chungbuk Information Technology Project Team. A senior member of the IEEE and an editor of the journal 'Journal of Electrical Engineering & Technology.' Strives for balanced development of basic disciplines, diversity, and convergence-oriented education to maintain the identity of a national university. Achieved entry into the 'Glocal University 30,' a large-scale support project of the Ministry of Education based on the integration with Korea National University of Transportation in 2023. Subsequently, in the medical school expansion under the Yoon Suk-yeol government in 2024, the highest number of additional allocations were made among all universities.
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President of Chungbuk National University
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Hanshin Engineering & Construction Chairman
Choi Yong-sun
- Choi Yong-sun is the chairman of Hanshin Engineering & Construction. He was born on June 20, 1944, in Imsil, Jeonbuk. He graduated from Jeonju High School and majored in Business Administration at Myongji University. He also graduated from Yonsei University's Graduate School of Journalism and Public Relations. From 1976, he worked at Wooseong Construction for about ten years. In 1986, he founded Hyupseung Construction and became independent. In 2001, he became the CEO of Koam Si & Si Development, and in 2002, he acquired Hanshin Engineering & Construction, which was under court receivership. In November 2002, he was appointed as the CEO and chairman of Hanshin Engineering & Construction. He focused on building a stable portfolio mainly in public construction projects, and even after the housing market slump in 2009, he managed to grow the company, surpassing a contract amount of KRW 2 trillion.
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Hanshin Engineering & Construction Chairman
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CEO of Tongyang Life Insurance
Lee Moon-koo
- Lee Moon-koo is the CEO of Tongyang Life Insurance. He is focusing his efforts on continuing strong performance through the sale of health insurance targeted at seniors. To build a new corporate culture, he emphasizes communication with employees. He was born on September 11, 1965. He graduated from Yeongdeungpo High School in Seoul and studied Educational Technology at Hanyang University. In 1992, he joined Tongyang Life Insurance and worked his way up through various positions including Head of the Business Division, Head of Alliance Strategy Team, and Executive Director, eventually becoming Chief Marketing Officer (CMO). He also managed roles as Head of CPC Division, Head of Sales Division, and Head of FC Division before being appointed CEO in 2024. He is the first Korean CEO to be appointed six years after Tongyang Life Insurance was acquired by China's Anbang Insurance. #LeeMoonkoo #TongyangLifeInsurance #CEO #healthinsurance #seniormarket #corporateculture #communication #HanyangUniversity #AnbangInsurance #KoreanCEO
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CEO of Tongyang Life Insurance
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Sungshin Women's University President
Yi Seong-keun
- Yi Seong-keun is the president of Sungshin Women's University. Born in 1963 in Yeongwol, Gangwon Province. He graduated from Chuncheon High School and the Department of English Language and Literature at Korea University. He obtained a master's and doctoral degree in business administration and a doctoral degree in statistics from Korea University Graduate School. After working as a researcher at Korea Nielsen, he served as the head of the marketing research team at SK Telecom. He was a professor at Dongyang Technical College before moving to Sungshin Women's University as a professor in the Department of Business Administration in 2004. In 2022, he was appointed as the president of Sungshin Women's University. He established an annual cultural school for culturally and educationally marginalized children and youth in his hometown of Yeongwol, Gangwon Province, and operated curriculum-based and experiential education programs. He is actively working to restore the university's tarnished image due to the embezzlement scandal of former president Sim Hwa-jin, controversies surrounding the preferential treatment of disabilities and unfair grade inflation of the child of lawmaker Na Kyung-won, and the crisis of exclusion from general financial support universities, as well as seeking solutions to the university's financial difficulties.
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Sungshin Women's University President
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Chairman & Founder of Namseoul University
Lee Jae-sik
- Lee Jae-sik is the President of the board of directors of the Seongam Foundation, affiliated with Namseoul University, and the principal of Sudo Academy. He focuses on nurturing talented individuals with character, intellect, and practical skills based on Christian values. He was born on April 8, 1935, in Jangsu, Jeollabuk-do. He graduated from Jeonbuk Namwon Middle School, Namwon Yongsung High School, and Hanyang University with a degree in nuclear engineering. He started his career at the Korea Institute of Metals and Materials. In 1968, he founded Sudo Academy, a specialized academy for civil service exams. In 1994, he established Namseoul University based on the Seongam Foundation. He has been active as the vice chairman of the Korean Academy Association and the Korean University Association. Despite his advanced age, he continues to be actively involved in various activities.
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Chairman & Founder of Namseoul University
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Chairman of Itshanbul
Lim Byung-chul
- Lim Byung-chul is the chairman of It's Hanbul. Born on February 14, 1959, as the third son of Lim Kwang-jung, the chairman of Hankook Cosmetics. He graduated from Hanyang University with a major in English literature and Wayne State University in the U.S. with a degree in marketing and international business. He started his career at Hankook Cosmetics. In 1989, he founded Hanbul Cosmetics and established its subsidiary, It's Skin, in 2006. In 2017, he merged Hanbul Cosmetics with It's Skin, renaming the company It's Hanbul and becoming the chairman. Through ethical management, he strengthens trust relationships with employees and representatives of partner companies.
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Chairman of Itshanbul
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Dongsung Group Chairman
Baek Jeong-ho
- Baek Jeong-ho is the chairman of Dongsung Group. He serves as a board member of DSTI and Dongsung Chemical. Focusing on biodegradable packaging business. Born on September 3, 1958, in Busan to father Baek Jegab, the founder of Dongsung Group, and mother Yoon Ji-won. Graduated from Yonsei University with a degree in Sociology. Joined Dongsung Chemical as a planning manager. In 1989, at the young age of 32, he became the CEO when his father's health deteriorated. Active as Vice Chairman of Busan Chamber of Commerce, Honorary Consul of Canada in Korea, Vice Chairman of Korea Messena Association, and Director of KBS Symphony Orchestra.
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Dongsung Group Chairman
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President of Shinhan Bank
Jung Sang-hyuk
- Jung Sang-hyuk is the President of Shinhan Bank. He is strengthening the 'Leading Bank' status and focusing on expanding ESG (Environmental, Social, Governance) management. He was born on November 26, 1964. He graduated from Daegu Deokwon High School and Seoul National University with a major in International Economics. He joined Shinhan Bank and held positions as Chief of Staff, Executive Vice President of the Management Planning Group, and Deputy Head of the Management Planning and Capital Markets Group. In 2023, he was appointed as the President of Shinhan Bank. Known for effective communication and a proactive personality. He is praised for his exceptional crisis management skills.
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President of Shinhan Bank
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CEO & Chairman of Sungwoo Hitech
Lee Myung-geun
- Lee Myung-geun is the Chairman and CEO of Sungwoo Hitech. He is expanding the business into electric vehicle parts, such as battery cases. He is also dedicated to research and development for vehicle lightweighting. He was born on November 5, 1944, in Busan. He graduated from Busan Dong-A High School and Korea University with a degree in Law. In 1977, he founded Sungwoo Metal (now Sungwoo Hitech), which initially produced agricultural and kitchen tools. He expanded the business into the automotive parts industry by supplying moldings to Hyundai Motor Company. He has served as a director of the Korea Auto Industries Cooperative Association. #LeeMyunggeun #SungwooHitech #ElectricVehicleParts #BatteryCases #VehicleLightweighting #Busan #KoreaUniversity #AutomotiveIndustry #HyundaiMotor #KAICA
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CEO & Chairman of Sungwoo Hitech
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CEO of ABLY Corporation
Kang Seok-hoon
- Kang Seok-hoon is the founder and CEO of ABLY Corporation. He is focused on expanding the categories of the fashion platform 'ABLY' from a fashion-centric approach to include beauty and interior, aiming to grow it into a style commerce platform that encompasses all aspects of lifestyle. Born in 1984. He studied Business Administration at Yonsei University. He participated in the establishment of the online video service (OTT) Watcha. In 2015, he entered the fashion business by starting the women's clothing shopping mall Apparel J. In 2018, he launched the online fashion platform 'ABLY'. In 2019, he changed the company name to 'ABLY Corporation'. #KangSeokhoon #ABLYCorporation #ABLY #Watcha #fashionplatform #stylecommerce #beauty #interior #YonseiUniversity #startup
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CEO of ABLY Corporation
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Chairman of Kyeryong Construction Industrial
Han Seung-goo
- Han Seung-goo is the CEO and Chairman of Kyeryong Construction Industrial. Beyond operating highway rest areas and golf courses, he diversifies the business portfolio into modular housing, smart farms, and shared housing. He was born on October 16, 1955, in Daejeon. He graduated from Daejeon Chungnam High School and Chungnam National University with a degree in architectural engineering. He obtained a master's and doctoral degree in architectural engineering from Chungnam National University Graduate School. In 1989, he began his career at Kyeryong Construction Industrial and was appointed CEO in 2008. He is active as the Chairman of the Construction Association of Korea, the Federation of Construction Associations, the Director of the Korea Institute of Construction Industry, the Director of the Construction Technology Education Institute, the Director of the Construction Industry Social Contribution Foundation, and the Vice Chairman of the Korea Construction Management Association. He served as a visiting professor in the Department of Architectural Engineering at Chungnam National University and Hanbat University.
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Chairman of Kyeryong Construction Industrial
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Coupang CEO and Managing Director
Kang Han-seung
- Kang Han-seung is the CEO and Managing Director of Coupang. He also serves as the Chairman of the Board. He was born on November 17, 1968, in Mapo-gu, Seoul, as the eldest son of Kang Shin-ok, a former member of the National Assembly. He graduated from Seoul Kyungseong High School and Korea University Law School. After passing the 33rd Judicial Examination, he completed the 23rd Judicial Training Institute. He is a colleague of President Yoon Suk-yeol from the training institute. After completing his military service as a military legal officer, he began his legal career as a judge at the Seoul District Court. He served as a judge in the Court Administration Planning and Coordination Office, a legal cooperation officer at the U.S. Embassy, and a judge at the Seoul High Court. During the Lee Myung-bak administration, he worked as a legal secretary at the Blue House and later moved to Kim & Chang Law Firm. While at Kim & Chang, he handled the lawsuit between courier companies and Coupang regarding Coupang's Rocket Delivery and provided legal advice related to Coupang. In 2020, he was appointed as the CEO and Managing Director of Coupang. He values communication and approaches his work with legal reasoning.
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Coupang CEO and Managing Director
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Chairman of Kleannara
Choi Byeong-min
- Choi Byeong-min is the chairman of kleannara. Born on March 14, 1952, in Busan, as the son of founder Chairman Choi Hwa-sik. His wife, Gu Mi-jeong, is the younger sister of Gu Bon-neung, the chairman of Heesung Group, and the aunt of Gu Gwang-mo, the chairman of LG Group. He graduated from Seoul Gyeonggi High School and the Department of Diplomacy at Seoul National University. He also graduated from the Business School at the University of Southern California. In 1978, he joined Daehan Pulp Industry Co., Ltd. (hereinafter referred to as Daehan Pulp). After serving as the head of the planning and coordination office, he became the CEO in 1983. He actively promoted the diversification of Daehan Pulp's business beyond the paper industry. At the end of 2008, he underwent a liver transplant surgery from his eldest son, Director Choi Jeong-gyu, after stepping down from the management due to deteriorating health. He returned as chairman in 2015. He is also active as the chairman of the Korea Paper Resources Development Institute.
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Chairman of Kleannara
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CEO of Daewon Chemical
Kang Dong-yup
- Kang Dong-yup is the CEO of Daewon Chemical. He is focusing on improving Daewon Chemical's revenue structure. He was born on March 1, 1969, in Seoul, as the eldest of three sons born to Kang Su-chang, the founder of Daewon Chemical. He graduated from Seoul Hongik University High School and completed his undergraduate studies in history at Yonsei University. He then obtained a master's degree in business administration from the University of Illinois. After working at Samsung Electronics, he started working at Daewon Chemical, founded by his father Kang Su-chang, in 1998. He progressed through various positions at Daewon Chemical, eventually becoming the CEO in 2002. He diversified Daewon Chemical's business and grew it into a billion-dollar company.
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CEO of Daewon Chemical
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CEO of SurplusGLOBAL
Kim Jung-woong (Bruce Kim)
- Kim Jung-woong is the CEO of SurplusGLOBAL. He also serves as the CEO of its subsidiary, EquGLOBAL. He was born on January 17, 1966. He graduated from Yonsei University with a degree in Metallurgical Engineering. He worked in sales at Kolon Corporation and Halla Resources, and served as a trade commissioner at Chungcheongnam-do Overseas Trade Promotion Agency. In 2000, he founded the trading company SurplusGLOBAL, which became the top global dealer of used semiconductor equipment in 20 years. He is focused on building a semiconductor legacy process integration platform, mainly for 28-nanometer and above processes. He is striving to increase the share of turnkey solution business lineup for 8-inch (200mm) wafer-based semiconductor processes. He is actively expanding businesses utilizing semiconductor equipment clusters. He has a deep interest in promoting welfare for people with disabilities.
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CEO of SurplusGLOBAL
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Chairman of Seohee Construction and CEO of Yoosung TNS
Lee Bong-kwan
- Lee Bong-kwan is the chairman of Seohee Construction and also serves as the CEO of the holding company Yoosung TNS. Facing Seohee Construction's crisis due to the construction industry downturn, he is actively promoting new businesses with his three daughters. Born in 1945 in Pyongyang, Pyeonganam-do, he fled to South Korea during the Korean War. He graduated from Gyeongbuk Gyeongju Cultural High School and the Business Administration Department of Kyung Hee University. He started his career at POSCO. In 1982, he founded the transportation company Youngdae Transportation, acquired Korea Sinthong Transportation, and established Yoosung Specialized Cargo. In 1994, he switched from transportation to construction, changing the company name from Youngdae Transportation to Seohee Construction and ventured into the construction industry, while Yoosung Specialized Cargo continued its transportation business. As a devout Christian, he built churches and hospitals that other construction companies avoided, engaging in construction business. Since 2008, he has been actively involved in regional housing cooperative projects, earning recognition as a top player in the domestic regional housing cooperative sector.
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Chairman of Seohee Construction and CEO of Yoosung TNS
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CEO of HMM
Kim Kyung-bae
- Kim Kyung-bae is the CEO and President of HMM. He is focused on enhancing HMM's business competitiveness. He was born on September 30, 1964, in Seoul. He graduated from Seongnam High School and Yonsei University with a major in Business Administration. He started his career at Precision Hyundai (now Hyundai Mobis). He worked as the executive secretary to Chung Ju-young, the chairman of Hyundai Group, for 10 years, and as the head of the secretariat to Chung Mong-koo, the chairman of Hyundai Motor Group, for 2 years. He served as the Head of Business at Hyundai Motor's Global Strategy Division and was appointed as the Vice President of Hyundai Glovis in 2009. In 2002, he became the CEO and President of Hyundai Wia, and in 2022, he was appointed as the CEO and President of HMM. He emphasizes principles and rules with meticulous attention to detail.
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CEO of HMM
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Myongji University President
You Byong-jin
- Yoo Byung-jin is the president of Myongji University and also serves as a director of Myongji Educational Foundation. He is actively positioning Myongji's Seoul and Yongin campuses as specialized universities in software and semiconductors. He is dedicating efforts to establish educational and research infrastructure through the integration of Myongji University and Myongji College. He was born on January 16, 1952, in Seoul as the second son among four sons and one daughter of Myongji University founder Yoo Sang-geun. He graduated from Seoul Jungang High School, Myongji University's Department of Trade, and obtained a master's degree in business administration from Myongji University Graduate School. He completed an MBA program at Long Island University in the United States and received a Ph.D. in economics from Kyoto University Graduate School in Japan. He served as a professor in the Department of Business Administration at Kangdong University under the Myongji Educational Foundation and became the president of Kangdong University in 2001. Since 2008, he has been the president of Myongji University. Following the confirmation of the conclusion of the reorganization process by the court for the Myongji Educational Foundation, which was in a crisis of bankruptcy, efforts are underway to normalize operations.
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Myongji University President
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Vice Chairman of Hyundai Card
Chung Tae-young
- Chung Tae-young is the Vice Chairman and CEO of Hyundai Card. He also serves as the CEO of Hyundai Commercial, a subsidiary. He is actively enhancing data and digital competitiveness to transform Hyundai Card into a fintech company. Amid the need to expand beyond the Hyundai Motor Group's boundaries, he focuses on discovering new revenue sources. Born on April 11, 1960, in Seoul as the eldest son of Jung Kyung-jin, the founder of Jongro Academy. He is the husband of Jung Myung, the daughter of Chung Mong-koo, the honorary chairman of the Hyundai Motor Group and the CEO of Hyundai Commercial. After graduating from Korea University's High School and majoring in Korean literature at Seoul National University, he obtained a master's degree in management from the Massachusetts Institute of Technology (MIT). He worked as the head of planning at Hyundai Corporation, then held positions as the head of Hyundai Engineering's North American and Mexican branches, followed by being the head of planning and finance at Hyundai Mobis and the head of purchasing at Kia Motors. After moving to Vice Chairman of Hyundai Card, he was appointed as the CEO of Hyundai Card and Hyundai Capital. He also took on the role of CEO of Hyundai Commercial. Since stepping down as the CEO of Hyundai Capital in 2021, he now solely leads Hyundai Card and Hyundai Commercial. He introduced innovative methods at Hyundai Card and actively engaged in cultural marketing initiatives like Super Concerts. He emphasizes effective communication and a flat corporate culture. He frequently expresses his thoughts through social media.
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Vice Chairman of Hyundai Card
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Chairman of Soosan Group
Chung Suk-hyun
- Chung Suk-hyun is the chairman of Soosan. Acquiring a power plant in the Philippines to expand Soosan Industry's business scope to power plant operation. Born on May 29, 1952, in Jangsu, Jeonbuk, as the youngest of three brothers and two sisters. He graduated from Jeonju Technical High School and joined Hyundai Construction as a high school graduate in 1970. While working at Hyundai Construction, he graduated from Hanyang University with a degree in Mechanical Engineering. He started his business with tool sales. Established Seokwon Industry (now Soosan Industry) in 1983. Emphasizes owner management responsibility. Refusing to pass on the criminal punishment risk to professional managers when the Major Accident Punishment Act was enacted, he directly took charge of the major subsidiaries.
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Chairman of Soosan Group
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LG Chief Financial Officer and Head of Business Support Division
Ha Beom-jong
- Ha Beom-jong is the CFO of LG. He also serves as the head of the management support division, overseeing not only financial tasks but also legal affairs, ESG (environment, social, governance), and promotional activities. He was born on July 16, 1968. He graduated from Gyeongnam High School in Busan and the Business Administration Department at Korea University. He started his career at LG Corporation (now LX International). He has held positions as an executive at LG Chem and team leader at LG Finance before taking on the role of CFO and head of the management support division at LG in 2021. In 2022, he also became an outside director at LG Display. He leads the newly established management support division in the era of Chairman Koo Kwang-mo. He is the first CFO under Chairman Koo Kwang-mo's leadership.
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LG Chief Financial Officer and Head of Business Support Division
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Chairman of Seoyon Group and CEO of Seoyon
Yoo Yang-seok
- Yoo Yang-seok is the chairman of Seoyon Group. He also serves as the CEO of Seoyon, the holding company. A second-generation owner-manager, his father is the former honorary chairman Yoo Hee-chun. He was born on February 25, 1959, in Seoul. He graduated from Hanyang University College of Medicine and obtained a master's and doctoral degree in medicine from Hanyang University Graduate School. He worked as an orthopedic surgeon at Asan Foundation Geumgang Hospital. At the age of 47 in 2006, he joined Hanil Hwa (now Seoyon) as a director, a company managed by his father. Since becoming the vice chairman and CEO in 2009, he has been overseeing the management. He focuses on research and development for lightweight and high-end parts to align with the era of eco-friendly and autonomous vehicles.
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Chairman of Seoyon Group and CEO of Seoyon
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Netmarble Co-CEO
Kwon Young-sik
- Kwon Young-sik is the co-CEO of Netmarble. Along with co-CEO Kim Byung-kyu, he leads Netmarble. He also serves as the CEO of Netmarble Neo and the chairman of the board. To turn Netmarble's consecutive losses into profits, they are focusing on organizational capabilities. Centered around Studio Netmarble Neo, which he also heads, they are pursuing an aggressive strategy for launching new games. He was born on March 1, 1968, according to the lunar calendar. He graduated from Daegu University of Science and Technology. He started his career at Yufung Corporation. During his time managing organizational affairs at the Korea Internet Plaza Association, he formed a connection with Bang Jun-hyuk, the chairman of Netmarble's board at the time, who was involved in satellite internet business. He handled marketing duties at iRing and served as the CEO at GIA Games. After serving as the CEO of CJ Games, Netmarble Games, and Netmarble Neo, he was appointed as the CEO and executive officer of Netmarble in 2018. Since 2021, he has also been the chairman of the Netmarble ESG Management Committee.
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Netmarble Co-CEO
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CEO & President of SKC
Park Won-cheol
- Park Won-cheol is the CEO and President of SKC. He is focusing on expanding the business to lead in the fields of battery materials, semiconductor materials, and eco-friendly materials as a 'global ESG material solution company.' He was born on August 25, 1967. He graduated from the Seoul National University with a degree in Chemical Engineering and obtained his master's and doctoral degrees in Chemical Engineering from the Seoul National University Graduate School. He completed the MBA program at the University of Chicago Booth School of Business. Having worked at Boston Consulting Group (BCG), OCI, SK Energy, GS Energy, and Hana Alternative Asset Management, he has been with the SK Group since 2018. He is a new business expert responsible for global growth and business development at the SUPEX council of SK. He is leading the task of transforming SKC from a film and chemical business-centric company to a chemical, secondary battery, and semiconductor material company. He was appointed as the CEO and President of SKC in 2022.
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CEO & President of SKC
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Inside Director of Hanmi Science and Nominee for CEO of Hanmi Pharmaceutical
Lim Jong-yun
- Lim Jong-yun is an inside director of Hanmi Science. Soon, he will be appointed as the CEO of Hanmi Pharm after an extraordinary general meeting and board meeting of Hanmi Pharm. Born in 1972 as the eldest son among two sons and one daughter of the late Lim Sung-ki, former chairman of Hanmi Pharm Group. He graduated from Boston College with a degree in biochemistry and pursued a master's degree in jazz composition at Berklee College of Music. He joined Hanmi Pharm as a manager in the strategic team and served as the general manager (president) of Beijing Hanmi Pharm. He became the president of Hanmi Pharm and, along with his father, Chairman Lim Sung-ki, was appointed co-CEO of the holding company Hanmi Holdings when Hanmi Pharm transitioned to a holding company system. Hanmi Holdings was renamed Hanmi Science, and as Lim Sung-ki stepped down as an inside director, Lim Jong-yun became the sole CEO of Hanmi Science. He and his mother, Song Young-sook, who is the chairman of Hanmi Pharm Group, were co-CEOs until a management dispute arose within Hanmi Pharm Group in January 2024, leading to his dismissal as president. However, he returned to management by being appointed as an inside director at the shareholders' meeting held the same year. He is now working on resolving the inheritance tax issues that arose during the management dispute and attracting investments for the contract research organization (CRO) or contract development organization (CDO) business in biopharmaceuticals. He prioritizes practical thinking and emphasizes open communication with employees. Keywords #LimJongyun #HanmiScience #HanmiPharm #CEO #inheritancetax #investment #biopharmaceuticals #CRO #CDO #managementdispute
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Inside Director of Hanmi Science and Nominee for CEO of Hanmi Pharmaceutical
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Chairman of SK Supex Council
Choi Chang-won
- Choi Chang-won is the chairman of the SK Supex Council and vice chairman and CEO of SK Discovery. Along with CEO Jeon Kwang-hyun, he serves as the co-CEO of SK Discovery, focusing on three main business areas: energy, chemicals, and biotechnology. Since 2024, Choi has been the chairman of the SK Supex Council, the highest decision-making body of SK Group. However, SK Discovery and its subsidiaries operate independently from SK Group. He was born on August 27, 1964, in Seoul as the youngest son of Choi Jong-gun, the founder of SK Group. He graduated from Yeouido High School in Seoul and majored in psychology at Seoul National University. He earned a master's degree from the University of Michigan's Ross School of Business. Choi began his career in the corporate planning office of Sunkyong Group, the predecessor of SK Group. He handled planning and financial tasks at SK Chemicals, SK Global, Walkerhill, and SK Construction. After serving as the vice chairman and CEO of SK Chemicals and SK Construction (now SK Ecoplant), he is currently the vice chairman and CEO of SK Discovery, the intermediate holding company of SK Group as of 2024. He also holds the position of vice chairman of SK Gas. Choi is known for his numerous ideas and strong drive. He is also very interested in philanthropy. #ChoiChangwon #SKDiscovery #SKGroup #SKSupexCouncil #JeonKwanghyun #Energy #Chemicals #Biotechnology #Philanthropy #Leadership
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Chairman of SK Supex Council
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Founder and President of HanSeo University
Ham Ki-sun
- Ham Ki-seon is the founder and president of Hanseo University. His wife, Han Seung-hye, is a professor at Hanseo University and an obstetrician. He is interested in making Hanseo University a specialized university in aerospace. He was born on April 2, 1941 in Yesan, Chungcheongnam-do. He graduated from Yesan Agricultural High School and the Su-do College of Medicine (currently Korea University College of Medicine). He received his master's and doctoral degrees from Seoul National University Graduate School of Public Health. After completing his plastic surgery residency at Baek Hospital, he served as a military officer in Vietnam. He worked as a professor at the Catholic University College of Medicine and established Korea's first specialized plastic surgery hospital, O-In Plastic Surgery Hospital. In 1989, he founded the Hamju Foundation and in 1992 established Hanseo University, where he became the chairman. He became the president of Hanseo University in 2000. He also served as the vice president of the Korean Red Cross. He performed free surgeries for over 2,000 cleft palate patients.
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Founder and President of HanSeo University
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Chief of Staff to the President
Chung Jin-suk
- Chung Jin-suk is the Chief of Staff to the President. Following the ruling party's defeat in the 22nd general election, he has been working to strengthen communication within the presidential office. In the National Assembly, where the opposition holds the majority, he is seeking strategies to respond to the opposition's offensive, including the Special Prosecutor Act. His focus is on supporting the passage of the government's budget and legislation. Born on September 4, 1960, in Gongju, Chungcheongnam-do, Chung Jin-suk is the youngest of three children of Jeong Seok-mo, former Minister of Home Affairs. He graduated from Seongdong High School in Seoul and studied Political Science and International Relations at Korea University. Chung began his career at the Korea Times, where he worked as a reporter in the social and political departments, a Washington correspondent, and an editorial writer. He entered politics as a special assistant to former Prime Minister Kim Jong-pil. Chung was first elected as a member of the National Assembly in the 16th general election as a candidate for the United Liberal Democrats, representing Gongju, Chungcheongnam-do. He was re-elected in the 17th, 18th, 20th, and 21st general elections, serving a total of five terms as a member of the National Assembly. During the Lee Myung-bak administration, he served as Senior Secretary for Political Affairs, working to facilitate communication between President Lee Myung-bak and former Grand National Party leader Park Geun-hye. After losing in the 19th general election, Chung served as Chief of Staff to the Speaker of the National Assembly and Secretary General of the National Assembly. He returned to the National Assembly in the 20th general election and was elected as the floor leader of the Saenuri Party, where he faced the political turmoil of President Park Geun-hye's impeachment. In the 21st National Assembly, he was elected Vice Speaker and later appointed as Chairman of the Emergency Response Committee, succeeding Ju Ho-young, whose duties were suspended by a court ruling. After losing in the 22nd general election, Chung was appointed Chief of Staff to President Yoon Suk-yeol. Keywords: #ChungJinsuk #ChiefOfStaff #SouthKorea #22ndGeneralElection #SpecialProsecutorAct #PoliticalStrategy #GovernmentBudget #LegislationSupport #PoliticalCareer #NationalAssembly
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Chief of Staff to the President
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President of Sehan University
Yi Sung-hoon
- Yi Sung-hoon is the president of Sehan University. He was born on February 20, 1960, in Naju, Jeollanam-do, as the son of Lee Kyung-soo, the founder of Sehan University. He graduated from Gwangseong High School in Seoul and the Department of Business Administration at Seoul National University. He obtained a master's degree in business administration from the University of Michigan in the United States. He completed his doctoral program at Sogang University Graduate School and received his Ph.D. from Jeonju University Graduate School. In 2006, he was inaugurated as the president of Daebul University (now Sehan University) but resigned due to embezzlement. He returned in 2010 and has been serving as the president for 17 years. He served as the chairman of the Association of Presidents of Private Universities in Korea. He is strengthening relationships with universities in the Asian region, focusing on attracting international students.
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President of Sehan University
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Chairman of DL Group
Lee Hae-wook
- Lee Hae-wook(Korean: 이해욱) is the chairman of DL Group. He is focusing on restructuring the business into a global developer, mainly in construction, petrochemicals, and energy sectors. He is interested in improving the group's image and establishing governance structure. Born on February 14, 1968, in Seoul, as the eldest son among three sons and two daughters of Lee Jun-yong, the honorary chairman of Daelim Group. He graduated from Seoul Kyungbok High School, earned a bachelor's degree in Business Statistics from the University of Denver in the U.S., and a master's degree in Applied Statistics from Columbia University in the U.S. He joined Daelim Engineering as a manager, became the CEO of Daelim Corporation in 2007, and was appointed as the vice chairman of Daelim Industry in 2011. As the largest shareholder of DL Company, the pinnacle of DL Group's governance structure, he transitioned to a professional management system and took on the role of chairman after stepping down from the board of directors. He has a free-spirited nature with a keen sense of art.
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Chairman of DL Group
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CEO and President of KB Insurance
Koo Bon-wook
- Koo Bon-wook is the CEO and President of KB Insurance. He is focused on expanding the sale of protection-type insurance, which is becoming increasingly competitive following the introduction of new accounting standards. In new business ventures, he aims for KB Insurance to enter the top ranks in the health care and pet insurance sectors. He was born on May 18, 1967, in Chungnam. He graduated from Chungnam High School in Daejeon and Yonsei University with a degree in Business Administration. He served as the head of the accounting team and the finance director at LIG Insurance, and after the company was acquired by KB Insurance, he held positions as head of management, head of business strategy, and head of risk management. In 2024, he was appointed CEO and President. He is the first internally promoted president since the launch of KB Insurance in 2015. Known as a 'strategist,' he is highly competitive and is praised for his clear distinction between public and private matters and his cool-headedness. #KooBonwook #KBInsurance #CEO #protectioninsurance #newaccountingstandards #healthcare #petinsurance #businessstrategy #Chungnam #YonseiUniversity
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CEO and President of KB Insurance
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CEO & President of NH Insurance
Seo Kook-dong
- Seo Kook-dong is the President and CEO of NH NongHyup Property and Casualty Insurance. He is dedicated to developing a stable profit model for NH NongHyup Property and Casualty Insurance. He was born on January 21, 1965, in Dalseong County, Daegu. He graduated from Simin High School in Daegu and studied Civil Engineering at Korea University. He earned a Master’s degree in Business Administration from Ajou University Graduate School. He began his career at the National Agricultural Cooperative Federation (NongHyup). He then moved to NongHyup Bank, where he served as the head of the Anyang City Branch. He returned to the National Agricultural Cooperative Federation, where he held positions such as Chief Secretary, Head of Alternative Investments in Mutual Finance, and Head of Asset Management, before being appointed as the CEO of NH NongHyup Property and Casualty Insurance. He is known for his extensive field experience and strong sales capabilities.
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CEO & President of NH Insurance
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CEO and President of NH Investment & Securities
Yun Byeong-un
- Yoon Byung-un is the CEO and President of NH Investment & Securities. He is regarded as a key contributor to enhancing NH Investment & Securities' corporate finance (IB) capabilities, alongside former CEO Jung Young-chae. Born in 1967 in Seosan, Chungcheongnam-do, he graduated from Yeongdeungpo High School in Seoul and majored in Chinese Language and Literature at Hankuk University of Foreign Studies. He began his career at LG Investment & Securities and remained with the company through its transitions and name changes to Woori Investment & Securities and NH Investment & Securities. He has held positions such as Head of Coverage Division, Head of Corporate Finance Division, and Head of IB Business. He values communication and emphasizes trust with corporate clients. #YoonByungun #NHInvestmentSecurities #CorporateFinance #IB #JungYoungchae #Seosan #Chungcheongnamdo #YeongdeungpoHighSchool #HankukUniversity #LGInvestmentSecurities
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CEO and President of NH Investment & Securities
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President of Baekseok University
Chang Jong-hyun
- Chang Jong-hyun is the president of Baekseok University. He was born on August 19, 1949. He graduated from Chungnam Cheonan High School and Dankook University with a degree in English Literature. He obtained a Ph.D. in Public Administration from Dankook University Graduate School. He founded the Theological Seminary (now Baekseok Foundation) and served as dean and president of Cheonan Foreign Language University (now Baekseok University) and Cheonan University (now Baekseok University). He was sentenced to 3 years in prison for embezzlement, but was released on Liberation Day in 2016 after serving half of his term. He returned as the president of Baekseok University. He also served as the Moderator of the General Assembly of the Presbyterian Church of Korea and currently holds the position of Chairman of the National Council of Churches in Korea after founding the Presbyterian Church of Baekseok (Ye-jang Baekseok).
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President of Baekseok University
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Chairman of Tonymoly
Bae Hae-dong
- Bae Hae-dong is the chairman of Tonymoly and also serves as the head of Taesung Industries. He was born on June 6, 1958, in Gwangju. He graduated from Dongyang Future University (formerly Dongyang Technical College). He was in charge of container development at Juria Cosmetics and founded Taesung Industries, a cosmetic container manufacturing company, in 1992. In 2006, he established Tonymoly, venturing into the cosmetics manufacturing industry. He practices communicative management based on strong leadership. He believes in the philosophy that 'if the distance between employees and the company widens, the distance from consumers also widens.'
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Chairman of Tonymoly
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Chairman of BNK Financial Group
Bin Dae-in
- Bin Dae-in is the CEO and Chairman of BNK Financial Group. He is striving to improve performance through personnel renewal and digital transformation, aiming to elevate the company to a global financial group based outside the capital region. He is dedicated to strengthening internal controls and expanding coexistence finance to build customer trust. Bin was born on July 8, 1960, in Namhae, Gyeongsangnam-do. He graduated from Busan Horticulture High School and Kyungsung University's Department of Law. He joined Busan Bank and held various positions including Head of the Management Innovation Department, Head of the Human Resources Department, Manager of the Sasang Industrial Complex Branch, Head of the Northern Business Division, and Vice President. He served as Acting President of Busan Bank before being appointed President of Busan Bank. After leaving BNK Financial Group as President of Busan Bank, he returned two years later to succeed former Chairman Kim Ji-wan as CEO and Chairman of BNK Financial Group. Bin is known for his diligent and meticulous "model student style," demonstrating gentle and rational leadership. #BNKFinancialGroup #BinDaein #DigitalTransformation #InternalControls #CustomerTrust #BusanBank #FinancialLeadership #SouthKoreaFinance #GlobalFinance #LeadershipStyle
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Chairman of BNK Financial Group
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Chairman of LF
Koo Bon-keul
- Koo Bon-keul is the Chairman of LF and also serves as the Chairman of LF's Board of Directors. He is dedicated to discovering new businesses to grow the company into a global lifestyle culture enterprise that creates customers' lifestyles beyond fashion. He was born on August 2, 1957, in Seoul, as the eldest son of Koo Ja-seung, the former president of LG International Corp. He graduated from Seoul Jungang High School and Yonsei University with a degree in Business Administration, and completed his MBA at the University of Pennsylvania's Wharton School. He joined LG Securities (now NH Investment & Securities) in the finance team and handled financial-related tasks within the LG Group. After taking charge of the fashion business division of LG International Corp., he led the spin-off of the fashion business division. After becoming the Chairman of LG Fashion, he changed the company's name to LF. He is a lively and humble executive who actively engages with his employees. #KooBonKeul #LF #Chairman #globalexpansion #newbusiness #lifestylecompany #fashionindustry #leadership #corporatetransformation #humbleexecutive
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Chairman of LF
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CEO of Hoban Construction
Park Chul-hee
- Park Chul-hee is the President and CEO of Hoban Construction and also serves as the Chairman of the Board of Directors of Hoban Construction. He was born on May 25, 1971. He completed his MBA at Konkuk University Graduate School of Business. After joining Hoban Construction in 1999, he became the CEO of Sky Valley Country Club in his 30s. In 2011, he was appointed as the CEO of Hoban Construction Industry. After the merger of Hoban Construction Industry with Hoban Construction, he served as the Head of Management Division and Vice President of Hoban Construction, and in 2018, he was appointed as the President and CEO. He also became the CEO of Hoban, which was merged with Hoban Construction. During the process of preparing for Hoban Construction's initial public offering (IPO), he temporarily stepped down as CEO. However, when the IPO was delayed, he returned the following year as the sole CEO of Hoban Construction. He emphasizes solid fundamentals and demonstrates a management style that addresses difficult problems head-on. #ParkChulhee #HobanConstruction #CEO #businessleader #constructionindustry #managementstyle #IPO #SouthKorea #MBA #leadership
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CEO of Hoban Construction
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CEO of Meritz Securities
Chang Won-jae
- Chang Won-jae is the CEO of Meritz Securities. He was recruited as a crisis management expert and is focusing on strengthening internal controls to stabilize the organization. He was born on June 7, 1967, in Seoul. He graduated from Seorabeol High School in Seoul and earned a degree in Mathematics from Seoul National University. He obtained a master's degree in Mathematics from the Graduate School of Seoul National University and a Ph.D. in Mathematics from the University of Minnesota Graduate School. He was the first science and engineering Ph.D. holder to join Samsung Securities, where he served as Managing Director and Chief Risk Officer (CRO). After moving to Meritz Fire & Marine Insurance, he took on the role of Chief Risk Officer at Meritz Fire & Marine Insurance and Meritz Financial Group. He then moved to Meritz Securities, where he worked as the Head of Sales & Trading (S&T) before being appointed CEO in 2023. He is known for his sharp numerical skills and quick calculations. #ChangWonJae #MeritzSecurities #CEO #CrisisManagement #InternalControls #MathematicsPhD #SamsungSecurities #MeritzFireAndMarine #SalesAndTrading #FinancialExpert
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CEO of Meritz Securities
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Chairman of Sampyo Group
Chung Do-won
- Chung Do-won is the Chairman of Sampyo Group. As the second son of the late Chairman Chung In-wook of Kangwon Industries Group, the predecessor of Sampyo Group, he is leading the Sampyo Group. He is dedicated to improving the performance of Sampyo Industrial and Sampyo Cement and discovering new growth engines. He is also focused on establishing a framework for the succession of management rights. He was born on March 22, 1947, in Seoul. He graduated from Kyungbock High School in Seoul and the Department of Metallurgy at the University of Wisconsin, USA. During the financial crisis, he completed the workout of Kangwon Industries (now Sampyo Industrial) through business restructuring within four years and changed the group's name to Sampyo. He acquired Dongyang Cement (now Sampyo Cement) to complete the vertical integration of the ready-mix concrete business. He emphasizes quality management and is committed to eco-friendly businesses and research and development. He has a familial relationship with Chung Mong-koo, the Honorary Chairman of Hyundai Motor Group, and they are also senior and junior alumni of Kyungbock High School. #ChungDoWon #SampyoGroup #cementindustry #businessleader #Koreanhistory #corporatemanagement #KyungbockHighSchool #WisconsinUniversity #qualitymanagement #ecofriendlybusiness
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Chairman of Sampyo Group
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CEO of Woori Financial Capital
Jung Yeon-ki
- Jung Yeon-ki is the President and CEO of Woori Financial Capital. He has set the goal of elevating Woori Financial Capital to a 'top-tier capital company' and is working on strengthening the competitiveness of its core automotive finance business while diversifying its business focus to corporate and investment finance. He was born on October 10, 1964. He graduated from Yongmun High School in Seoul and earned a degree in English Language and Literature from Yonsei University. He joined Woori Bank and held various positions including Branch Manager of the Gwacheon Branch, Head of the Personal Sales Strategy Department, Deputy President of the Asset Management Group, Deputy President of the Financial Consumer Protection Group, and Head of the SME Group. With his extensive experience in sales, strategy, asset management, and risk management, he is expected to accelerate the business diversification of Woori Financial Capital. #JungYeonki #WooriFinancialCapital #CEO #automotivefinance #businessdiversification #Koreanfinance #corporatefinance #investmentfinance #bankingcareer #financialleadership
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CEO of Woori Financial Capital
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Vice Chairman of SK Group and CEO of SK On
Chey Jae-won
- Chey Jae-won is the Vice Chairman of SK Group and the CEO of SK On. Leading SK Group's battery business as the CEO of SK On, a specialized electric vehicle battery company. Shows interest in automotive electrification and artificial intelligence (AI). Born on May 16, 1963, in Seoul, as the second son of the late SK Group Chairman Chey Jong-hyun. Graduated from Shinil High School, Brown University with a degree in Physics. Obtained a Master's degree in Materials Engineering from Stanford University and an MBA from Harvard Business School. Started his career as the head of business planning and overseas business at SKC. Held various positions including Head of SKC Management Support Division, SK Telecom Strategic Support Division, SKE&S CEO, SK Gas CEO, and Chairman of SK Telecom and SK Networks boards before becoming the Vice Chairman of SK Group. Sentenced to 3 years and 6 months for embezzlement in 2014, released on parole in July 2016 nearing the end of the sentence. Appointed as the CEO of SK On in 2021, officially returning to management. Driving global expansion of SK On's production facilities and strengthening battery alliances with automotive companies. Enjoys intellectual and open discussions. Known for being humble without displaying 'owner's airs.'
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Vice Chairman of SK Group and CEO of SK On
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CEO of Meerecompany
Kim Joon-koo
- Kim Joon-koo is the CEO of Meerecompany. As a second-generation owner-manager, his father is the founder of Meerecompany, former Chairman Kim Jong-in. He was born on January 24, 1981. He graduated from Cornell University in the United States, received a master's degree in engineering from Cornell University Graduate School, and completed an MBA at the University of Chicago Booth School of Business. After working at Samsung Electronics and Bain & Company, he ended his life in the United States and joined Meerecompany after his father's passing. He is dedicated to diversifying the company's business structure, which was focused on display processing equipment, and advancing technology development. He sees laparoscopic surgical robots and solid-state battery manufacturing equipment for electric vehicles as future new businesses and is working to enhance investment and competitiveness in these areas.
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CEO of Meerecompany
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Chairman of the Board of Audit and Inspection
Choe Jae-hae
- Choe Jae-hae is the Chairman of the Board of Audit and Inspection. He is focused on the efficiency of audits and the establishment of public office discipline. He was born on October 7, 1960, in Seoul. He graduated from Dongguk University High School in Seoul and majored in Public Administration at Sungkyunkwan University. He earned a Master's degree in Public Administration from Seoul National University, a Master's degree in Policy Studies from Indiana University in the United States, and a Ph.D. in Public Administration from Sungkyunkwan University. After passing the 28th Administrative Examination, he held various positions at the Board of Audit and Inspection, including Director of Planning and Management, Director of Social and Cultural Audit, First Deputy Secretary-General, and Audit Commissioner. In 2021, he was appointed as the second Chairman of the Board of Audit and Inspection under the Moon Jae-in administration. He is the first Chairman from within the organization. He is known for his extensive experience and knowledge in audit administration and his excellent organizational management skills. #ChoeJaehae #BoardofAuditandInspection #Chairman #audit #publicoffice #discipline #Seoul #administration #MoonJaein #organizationalmanagement
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Chairman of the Board of Audit and Inspection
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CEO of Posco DX
Jung Duk-kyoon
- Jung Duk-kyoon is the CEO and President of Posco DX. In 2023, the company changed its name from Posco ICT to Posco DX, focusing its organizational capabilities on new growth businesses such as industrial automation robots and smart logistics. He was born in October 1962. He graduated from Busan National University with a degree in Computer Statistics and obtained a master's degree in Information and Communication from Pohang University of Science and Technology. He began his career at Posco. He moved to Posco DX, where he held positions such as Vice President of Corporate Culture Group, Director of Solution Development Center, Head of SM Division, and Head of Smart IT Business Office. He returned to Posco and served as Executive Vice President and Head of the Information Planning Office. In 2021, he was appointed CEO and President of Posco ICT. He actively communicates with employees. #PoscoDX #JungDukkyoon #industrialautomation #smartlogistics #corporateculture #leadership #career #innovation #businessgrowth #communication
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CEO of Posco DX
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CEO of Lotte Chemical and Head of Lotte Chemical Group
Lee Hun-gi
- Lee Hun-gi is the CEO of Lotte Chemical and the head of Lotte Group's chemical division. During a challenging period of ongoing operating losses, he has been dedicated to securing profitability for Lotte Group's chemical division. He has been focusing on diversifying the traditionally petrochemical-centered business structure into eco-friendly ventures, including electric vehicle battery materials. Born on August 29, 1967, he graduated from Daegu Deokwon High School and Seoul National University's Department of Chemical Engineering. Lee began his career at Lotte Chemical. He then moved to Lotte Group’s Planning and Coordination Office before returning to Lotte Chemical to handle international business. When Lotte Group acquired Lotte Rental, he served as CFO and later as CEO of Lotte Rental. He also led the ESG Management Innovation Office at Lotte Corporation, where he was responsible for discovering new business opportunities and expanding sustainable management at the group level. In 2022, he became the first CEO of the newly established Lotte Healthcare, and in 2023, he was appointed as the CEO of Lotte Chemical and the head of Lotte Group's chemical division. #LotteChemical #LeeHungi #CEO #LotteGroup #chemicaldivision #eco-friendlybusiness #EVbatterymaterials #profitability #sustainability #businessdiversification
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CEO of Lotte Chemical and Head of Lotte Chemical Group
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Founder & Former Chairman of Konyang University
Kim Hi-soo
- Kim Hi-soo, the honorary president of Konyang University and founder of Konyang University Hospital, was born on July 9, 1928, in Nonsan, South Chungcheong Province. He graduated from Gongju High School and the Severance Medical School. Kim obtained a master's degree from the University of Illinois College of Medicine in the United States and completed his internship at St. Francis Hospital in the U.S. He earned a Doctor of Medicine degree from Yonsei University Graduate School. Kim established a private ophthalmology clinic in Yeongdeungpo, Seoul, after working at Incheon Christian Hospital and the 3rd Army Hospital. He began his educational endeavors by founding Konyang Middle School and Konyang High School. Kim founded Konyang University and Konyang Cyber University, becoming the president of both institutions as well as the chairman of Konyang Academy. He also opened Konyang University Hospital and served as its president. In 2017, he resigned from his position as president amid allegations of misconduct and abuse. However, he returned to the university administration as an honorary president in 2019. Kim emphasizes a philosophy of "taking full responsibility from student admission to employment," demonstrating his commitment to education. #KimHiSoo #KonyangUniversity #KonyangUniversityHospital #Education #Medicine #SouthKorea #HonoraryPresident #AcademicLegacy #Healthcare #Leadership
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Founder & Former Chairman of Konyang University
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CEO & President of KB Asset Management
Kim Young-seong
- Kim Young-sung, the CEO & President of KB Asset Management, is focusing on strengthening the company's ETF (Exchange-Traded Fund) competitiveness and expanding market share by introducing performance-based incentives and organizational restructuring. He is also paying significant attention to improving profitability. Kim was born on September 8, 1969. He graduated from Hansung High School in Seoul and earned a degree in Economics from the University of Minnesota in the United States. He also holds an MBA from Temple University. Kim began his career as a bond management manager at Samsung Life Insurance. He then served as the Head of Bond Management at Samsung Asset Management and the Head of the Overseas Investment Team at the Government Employees Pension Service before joining KB Asset Management. At KB Asset Management, Kim held positions such as Head of Global Strategy Management and Head of Pension and Securities before being appointed CEO in 2024. With nearly 30 years of experience in the domestic asset management industry, Kim is recognized as a market expert, particularly in bond management and overseas investment. Keywords: #KimYoungsung #KBAssetManagement #ETF #BondManagement #OverseasInvestment #FinancialExpert #MarketShare #Profitability #AssetManagement #2024
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CEO & President of KB Asset Management
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CEO of Meritz Fire & Marine Insurance
Kim Jung-hyeon
- Kim Joong-hyun is the CEO of Meritz Fire & Marine Insurance. He is implementing a strategy to expand sales centered on long-term insurance. He is exploring business expansion with pet insurance and daily life insurance. He was born on February 13, 1977. He graduated from Daeryun High School in Daegu and majored in Business Administration at Seoul National University. After working as a consultant at A.T. Kearney, he moved to Meritz Fire & Marine Insurance in 2015. He served as the head of the Change Innovation TFT, head of the Auto Insurance Team, head of Product Strategy, and head of Management Support before being appointed CEO in 2023. Upon becoming the CEO of Meritz Fire & Marine Insurance, he, along with Kang Byung-kwan, CEO of Shinhan EZ General Insurance, became the youngest CEO in the non-life insurance industry. ### Keywords #KimJoonghyun #MeritzFireAndMarine #insurance #CEO #longterminsurance #petinsurance #businessstrategy #A.T.Kearney #youngestCEO #nonlifeinsurance
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CEO of Meritz Fire & Marine Insurance
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CEO & Vice Chairman of Youngone Holdings
Sung Rae-eun
- Sung Rae-eun is the CEO of Youngone Holdings and Vice Chairman of Youngone Corporation. She is the second daughter of Sung Ki-hak, the Chairman of Youngone Corporation, and runs the company alongside her father, establishing a father-daughter management system. Born on November 17, 1978, she moved to the United States during middle school, graduated from the private high school Choate Rosemary Hall, and earned a degree in Sociology from Stanford University. She joined Youngone Corporation and served as Director and Executive Director of the Global Compliance CSR division. In 2016, she became the CEO of Youngone Holdings, the holding company of Youngone Corporation, making her a prominent successor among the chairman's three daughters. After serving as President of Sales and General Management, she became Vice Chairman in 2022. She is also active as the President of the Korea Fashion Industry Association. As a second-generation leader, she has shown respect for and adherence to her father's management philosophy. She has published a book titled "Eternal Lessons," which reflects the nature of her management education. # Keywords #Youngone #SungRaeEun #FashionIndustry #Management #Successor #CSR #KoreaFashion #Leadership #FamilyBusiness #GlobalCompliance
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CEO & Vice Chairman of Youngone Holdings
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CEO and President of Seoul National University Bundang Hospital
Song Jung-han
- Song Jung-han is the CEO and President of Seoul National University Bundang Hospital. He was born on August 1, 1963. He graduated from Seoul National University College of Medicine and received his master's and doctoral degrees from Seoul National University Graduate School. He worked as a full-time instructor at Dankook University College of Medicine. After moving to the Department of Clinical Pathology at Seoul National University College of Medicine, he served as a professor in the Department of Laboratory Medicine. He served as the Director of Management Innovation, Director of Talent Development, and Vice Director of Medical Affairs at Seoul National University Bundang Hospital, before being appointed Director of the hospital in 2023. He has also served as the Chairman of the Korean Society for Laboratory Medicine, the Head of the Public Healthcare Project Group at Seoul National University Bundang Hospital, the Chairman of the Non-portfolio Committee of the Korean Hospital Association, and the Chairman of the Korea Foundation for the Advancement of Smart Healthcare Devices. He is an authority in the field of diagnostic laboratory medicine. He is dedicated to positioning Seoul National University Bundang Hospital as a center of biohealthcare through the Healthcare Innovation Cluster. #SongJungHan #SeoulNationalUniversity #BundangHospital #HealthcareInnovation #DiagnosticLaboratoryMedicine #Biohealthcare #MedicalLeadership #KoreanMedicalField #HospitalManagement #MedicalEducation
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CEO and President of Seoul National University Bundang Hospital
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Chairman of NACF
Kang Ho-Dong
- Kang Ho-dong is the Chairman of the National Agricultural Cooperative Federation (NACF). He is striving to increase farm income through changes and innovations centered on regional agricultural cooperatives. He was born on October 25, 1963, in Hapcheon-gun, Gyeongsangnam-do. He graduated from Hapcheon High School in Gyeongsangnam-do and the Department of Tax Accounting at Daegu Mirae College. He also studied at the Graduate School of Business Administration at Nonghyup University. He joined Hapcheon Yulgok Nonghyup in Gyeongsangnam-do in 1987, served as managing director, and held the position of cooperative president five times. He worked as a director of NACF and a director of the Farmers' Newspaper. In the 2020 NACF Chairman election, he lost to former chairman Lee Sung-hee but ran again in 2024 and was elected. He has extensive knowledge of Nonghyup operations, having held various positions in both regional agricultural cooperatives and NACF. #KangHoDong #NonghyupCentral #FarmIncome #AgriculturalCooperatives #Innovation #SouthKorea #Hapcheon #NonghyupUniversity #FarmersNewspaper #2024Election
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Chairman of NACF
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CEO of Kurly
Kim Seul-ah
- Kim Seul-ah, the CEO of Kurly, was born on June 16, 1983, in Ulsan. She graduated from Korean Minjok Leadership Academy and majored in political science at Wellesley College, a private women's college in the United States. After working in bond trading at Goldman Sachs, she moved to McKinsey & Company. She later worked at Temasek Holdings, Singapore's sovereign wealth fund, and Bain & Company, a consulting firm, before founding The Farmers, the predecessor of Kurly, in 2014. With the early morning fresh food delivery service, Dawn Delivery, she quickly elevated Market Kurly to the status of a unicorn company. To ensure Market Kurly's continued growth, she is pursuing an initial public offering (IPO). She describes herself as a hardworking talent. Her goal is to create a company that can endure beyond its founder, allowing employees to share in its successes. #KimSeulah #Kurly #FemaleCEO #Startup #MarketKurly #UnicornCompany #IPO #HardworkingTalent #Entrepreneur #Leadership
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CEO of Kurly
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President of National Health Insurance Service
Jung Ki-suck
- Jung Ki-suck is the President of the National Health Insurance Service (NHIS). He is dedicated to reforming health insurance through improvements in the fee system and payment methods. He was born on August 17, 1958, in Daegu Metropolitan City. He graduated from Kyungpook National University High School and Seoul National University Medical School, where he also obtained his master's and doctoral degrees in medicine. He served as the head of the Department of Internal Medicine at Hallym University Sacred Heart Hospital, the Director of the Respiratory Center, and later became the Director of Sacred Heart Hospital. During the Park Geun-hye administration, he worked as the Director of the Korea Centers for Disease Control and Prevention (KCDC) at the Ministry of Health and Welfare, before returning to Hallym University as the Medical Center Director. During the 20th presidential election, he joined the campaign team of Yoon Suk-yeol, the People Power Party's presidential candidate, and served as the Chairman of the COVID-19 Crisis Response Committee and Special Advisor for COVID-19 Response. With the inauguration of the Yoon Suk-yeol administration, he took on the role of Head of the COVID-19 Special Response Team at the Central Disaster and Safety Countermeasure Headquarters of the Ministry of the Interior and Safety. In 2023, he was appointed as the President of the NHIS. He is an expert in the field of respiratory diseases. He is known for his gentle personality and effective communication with employees. #JungKisuck #NHIS #healthinsurance #medicalreform #respiratorydiseases #COVID19 #SouthKorea #YoonSukyeol #healthcare #publichealth
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President of National Health Insurance Service
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The Director of Strategy Headquarters and Vice President of Hanwha Galleria
Kim Dong-seon
- Kim Dong-seon, born on May 30, 1989, is the third son of Kim Seung-youn, Chairman of Hanwha Group. He currently holds multiple key positions within the Hanwha Group, including the Director of Strategy Headquarters and Vice Presidentat at Hanwha Galleria, Head of Strategy Division at Hanwha Hotels & Resorts, Head of Strategic Planning at Hanwha Robotics, and Head of Overseas Business Division at Hanwha Construction. Kim Dong-seon was educated in the United States, graduating from Taft School and majoring in Political Science at Dartmouth College. He has an illustrious background as a national equestrian athlete, winning three gold medals and one silver medal at the Doha Asian Games, Guangzhou Asian Games, and Incheon Asian Games as a member of the Hanwha Galleria Equestrian Team. Kim started his career at Hanwha Construction, working in the Overseas Construction Business Division and the New Growth Strategy Team. He also ventured into the culinary business by running a restaurant in Germany and worked at SkyLake Investment. Returning to the Hanwha Group as the Global Strategy Manager at Hanwha Energy, he progressed to lead the Premium Leisure Group at Hanwha Hotels & Resorts and served as Head of New Business Strategy and Strategy Headquarters at Hanwha Solutions’ Galleria Division. From 2024, he has taken on the role of Head of Overseas Business Division at Hanwha Construction. Known for his global network and sociability, Kim Dong-seon has faced several controversies due to incidents of verbal abuse and assault at social gatherings. Nevertheless, he continues to receive strong support from his father, Chairman Kim Seung-youn. ### Keywords #KimDongseon #HanwhaGalleria #ManagementSuccession #EquestrianChampion #HanwhaGroup #GlobalStrategy #BusinessLeadership #CorporateStrategy #AsianGames #Conglomerate
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The Director of Strategy Headquarters and Vice President of Hanwha Galleria
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CEO of CJ Olive Young
Lee Sun-jung
- Lee Sun-jung is the CEO of CJ Olive Young. She is working hard to prove the growth potential to relaunch the listing of CJ Olive Young. She was born on September 4, 1977. She graduated from Konkuk University with a degree in Agricultural Chemistry (Applied Biology and Chemistry). She started her career at Ministop Korea. She moved to CJ Olive Young, where she served as the Head of Health & Beauty Business, Head of MD Business Division, and Head of Sales Division, before being appointed CEO. As an expert in product planning, sourcing, and marketing, she played a leading role in making CJ Olive Young a 'Mecca' of K-beauty. She is the youngest CEO among CJ Group's affiliates and the first female CEO of CJ Olive Young. ### Keywords #LeeSunjung #CJOliveYoung #FemaleCEO #KBeauty #YoungestCEO #GrowthPotential #ListingRelaunch #CareerPath #MarketingExpert #KonkukUniversity
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CEO of CJ Olive Young
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President of Chonnam National University
Jung Sung-taek
- Jung Sung-taek is the President of Chonnam National University. He is an orthopedic surgeon specializing in pediatric orthopedics and bone and soft tissue oncology. He was born on April 22, 1961, in Damyang, Jeollanam-do. He graduated from Chonnam National University Medical School and received his master's and doctorate degrees in medicine from Chonnam National University Graduate School. In 1999, he was appointed as a professor in the Department of Orthopedic Surgery at Chonnam National University Medical School. He served as the Director of Planning and Coordination and Dean of Student Affairs at Chonnam National University Hospital. He has been active as the president of the Korean Pediatric Orthopedic Society, the Korean Society for Limb Lengthening and Reconstruction, and the Korean Bone and Joint Oncology Society. He is also the president of the National Association of Presidents of National and Public Universities. He was elected president through a direct election system in 2021. He is committed to restoring the status of Chonnam National University as a leading national university and preparing for the future through change and integration. #JungSungtaek #ChonnamNationalUniversity #orthopedics #pediatricorthopedics #boneoncology #medicalprofessor #universitypresident #SouthKorea #nationaluniversity #educationleadership
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President of Chonnam National University
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CEO and President of Shinhan Card
Moon Dong-kwon
- Moon Dong-kwon is the CEO and President of Shinhan Card. Since the launch of integrated Shinhan Card in 2007, he is the first CEO promoted from within the company. He aims to transform Shinhan Card from the top card company to the top lifestyle financial platform company, focusing on enhancing digital competitiveness. He was born on July 23, 1968. He graduated from Seongdo High School in Busan and Yonsei University with a degree in Business Administration. He is a card business expert with over 20 years of experience in the industry. He started his career at LG Installment Financing. After LG Installment Financing merged with LG Card, he served as the Head of Risk Management and Head of Business Management at LG Card. After Shinhan Card acquired LG Card, he held positions such as Head of Business Management, Head of Strategic Planning, Director of the Planning Division, and Executive Director of Management Planning Group at Shinhan Card, before being promoted to Vice President. In 2023, he was appointed CEO of Shinhan Card. He is known for being humble and taking good care of his employees. #MoonDongKwon #ShinhanCard #CEOPromotion #CardIndustry #DigitalCompetitiveness #BusinessExpert #FinancialPlatform #CareerProgression #EmployeeFocused #InternalPromotion
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CEO and President of Shinhan Card
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CEO and Chairman of Hansung Enterprise
Lim Woo-kun
- Lim Woo-kun is the CEO and Chairman of Hansung Enterprise. Together with his eldest son, President Lim Jun-ho, he leads the company as Separate Representative. He is focusing on improving the company's profitability. Born on January 2, 1948, in Tongyeong, Gyeongsangnam-do, he is the eldest son among five sons and one daughter of Hansung Enterprise founder Lim Sang-pil and Kim Hee-soon. He graduated from Gyeongnam High School in Busan and majored in Trade at Pusan National University. After joining Hansung Enterprise, he became the CEO & President of Hansung Enterprise in 1975. He has served as the Vice President of the Busan Baseball Association, the Financial Director of the Korea Equestrian Federation, the President of the Seoul Equestrian Federation, the President of the Korea Overseas Fisheries Association, and the Chairman of the National Defense Culture and Arts Promotion Committee. At the young age of 27, he took on the role of CEO and grew Hansung Enterprise, inherited from his father, into a mid-sized company with annual sales of KRW 300 billion (approximately USD 217.8 million). He demonstrates a gentle leadership style. #LimWooKun #HansungEnterprise #secondgenerationCEO #seafoodprocessing #profitability #LimJunHo #SouthKorea #businessleadership #mid-sizedcompany #familybusiness
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CEO and Chairman of Hansung Enterprise
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Head of Future Business Planning at Samsung Electronics
Kyung Kye-hyun
- Kyung Kye-hyun is the head of Future Business Planning at Samsung Electronics and the President of Samsung Advanced Institute of Technology (SAIT). He was born on March 5, 1963, in Chuncheon, Gangwon Province. He graduated from Gangwon High School and Seoul National University with a degree in Control and Instrumentation Engineering. He also obtained a master’s degree and a doctorate in Control and Instrumentation Engineering from Seoul National University. Kyung joined Samsung Electronics and worked in the DRAM Development Department of the Memory Business Division. He then served as the Head of the Flash Design Team, Head of Flash Development, and finally, the Head of Solution Development. After serving as the CEO of Samsung Electro-Mechanics, he was appointed CEO of the Device Solutions (DS) Division at Samsung Electronics. As a semiconductor design expert, he played a key role in Samsung Electronics leading the technology in memory semiconductors. He is very interested in innovating organizational culture and is proactive in communication. He is also an art and culture enthusiast. #SamsungElectronics #KyungKyeHyun #FutureBusiness #SAIT #Semiconductor #MemoryTechnology #OrganizationalCulture #Communication #ArtEnthusiast #Leadership
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Head of Future Business Planning at Samsung Electronics
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CEO and President of SK Geo Centric
Na Kyung-soo
- Na Kyung-soo, CEO and President of SK Geo Centric, is a specialist in strategic planning, known for his strong ability to develop new business ventures and for spearheading the transition to eco-friendly projects. To shift from petrochemicals to eco-friendly business, SK Geo Centric is establishing a plastic resource recycling ecosystem, involving significant capital investment and technical collaboration with overseas companies. He is dedicating the company’s full capabilities to creating the world’s first waste plastic recycling complex, the Ulsan ARC (Advanced Recycle Cluster). Na Kyung-soo was born on June 28, 1964. He graduated from Sangmun High School in Seoul and studied Business Administration at Korea University. He began his career at Yukong’s Business Support Team and later moved to the Marketing Strategy Team at SK Innovation. At Yukong, he served as the Head of Strategic Planning Team and Head of Business Planning before becoming the Head of Strategic Planning Headquarters. He was then appointed as the President and CEO of SK General Chemicals (later renamed SK Geo Centric). In his role at SK Innovation, he diversified the business by developing the chemical business through SK Geo Centric and laying the foundation for the electric vehicle battery business. He is praised as a visionary executive with an excellent eye for identifying new business opportunities. Na is known for his hands-on approach, often visiting field sites, and emphasizing smooth communication among employees. He actively participates in corporate activities with the staff. #NaKyungSoo #SKGeoCentric #StrategicPlanning #EcoFriendly #BusinessTransition #PlasticRecycling #Leadership #Sustainability #Innovation #CorporateStrategy
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CEO and President of SK Geo Centric
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CEO of Kakao Mobility
Ryu Geung-seon
- Ryu Geung-seon(Alex Ryu) is the CEO of Kakao Mobility. To prepare for Kakao Mobility's initial public offering (IPO), he is strengthening the competitiveness of the taxi platform business and exploring various mobility services based on the mobile app KakaoT. He is also focusing on expanding overseas by acquiring global mobility platform companies. Born in 1977, he graduated from Seoul National University with a degree in Computer Science. He began his career at Danal, where he served as Head of the Development Division, CEO, and CEO of the European branch. He developed the world's first mobile payment system. After joining Kakao Mobility in 2018, he served as co-CEO and has been the sole CEO since 2020. In 2021, he turned Kakao Mobility profitable, but the IPO schedule has been delayed due to a downturn in the IPO market. During the company's expansion, he faced controversies over abuse of power and algorithm manipulation allegations. He is under investigation by the Financial Supervisory Service (FSS) for accounting fraud allegations. Despite the FSS's recommendation for his dismissal, he was reappointed as CEO. #KakaoMobility #RyuGeungseon #IPO #KakaoT #mobilityservices #globalexpansion #mobilepayment #profitability #controversies #FSSinvestigation
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CEO of Kakao Mobility
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Chairman of Doosan Enerbility
Park Gee-won
- Park Gee-won is the Chairman and CEO of Doosan Enerbility (formerly Doosan Heavy Industries & Construction) and also serves as the Chairman of the Board. Alongside President and COO Jeong Yeon-in and President and CFO Park Sang-hyun, he leads Doosan Enerbility under a three-person joint representative system. The company is focusing its organizational capabilities on transitioning its business structure from traditional power generation to eco-friendly power generation. Born on March 20, 1965, in Seoul, he is the second son of Park Yong-gon, Honorary Chairman of Doosan Group. After graduating from Yonsei University with a degree in Business Administration and New York University's Stern School of Business, he began his career at Oriental Brewery. He then worked at Doosan Trading Company and Doosan Corporation before moving to Doosan Enerbility. As the Vice Chairman of Doosan Group, he is considered one of the leading candidates to succeed his older brother, Park Jeong-won, as the next Chairman of the group. He is dedicating efforts to nurturing new businesses, focusing on four key growth areas: gas turbines, hydrogen, renewable energy, and next-generation nuclear power plants. A principled leader who emphasizes harmony, he meticulously attends to the personal events and occasions of his employees. #ParkGeewon #DoosanEnerbility #CEO #Chairman #EcoFriendlyPower #DoosanGroup #GasTurbines #HydrogenEnergy #RenewableEnergy #NextGenNuclearPower
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Chairman of Doosan Enerbility
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President of Jeonbuk National University
Yang O-bong
- Yang O-bong is the President of Jeonbuk National University. He is dedicated to making Jeonbuk National University a global hub and a flagship university. Born in 1962 in Namwon, Jeollabuk-do. He graduated from Jeonju High School and studied chemical engineering at Korea University, then received his master's and doctoral degrees from KAIST. After working at Hanwha Energy and Pohang Institute of Industrial Technology, he joined the Department of Chemical Engineering at Jeonbuk National University in 1995. He served as a visiting professor at the University of Stuttgart in Germany, a visiting scientist at the National Renewable Energy Laboratory in the United States, and a visiting professor at the University of Valencia in Spain. At Jeonbuk National University, he served as the head of the Silicon-based Solar Cell Advanced Human Resources Training Project Group and the director of the Solar Energy Research Center before being appointed as president. He has been a member of the Special Committee on Regional Policy and Pledges under the Presidential Committee on Regional Development, a civilian member of the Saemangeum Committee for Energy and New Industries under the Prime Minister's Office, the Planning Committee Chair for Crystalline Silicon Solar Cells at the Korea Energy Technology Evaluation Institute, and the president of the Korean Society for Solar Energy. He is a member of the National Academy of Engineering of Korea and the head of the National Support Committee for Jeonbuk Special Self-Governing Province. He is a chemical engineer researching renewable energy, solar cell materials and devices, and energy storage materials. As the first president of the Glocal University 30 University Council, he is committed to the successful establishment of the Glocal University 3.0 project. #YangObong #JeonbukNationalUniversity #chemicalengineering #renewableenergy #solarcells #energyresearch #globaluniversity #KAIST #KoreaUniversity #academicleadership
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President of Jeonbuk National University
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The Chief Justice of the Supreme Court of Korea
Cho Hee-dae
- Cho Hee-dae is the Chief Justice of the Supreme Court. He is striving to restore discipline within the judiciary, which has been unsettled by the vacancy in the Chief Justice position, and to ensure smooth trials and fair judicial administration. In particular, he is focusing on restoring the authority of the judiciary, which was damaged during the tenures of former Chief Justices Yang Sung-tae and Kim Myeong-su. Born on June 6, 1957, in Wolseong, Gyeongsangbuk-do, he graduated from Gyeongbuk High School and Seoul National University with a degree in law. He passed the 23rd bar exam and completed the 13th Judicial Research and Training Institute. In 1986, he began his legal career as a judge at the Seoul Criminal District Court. He served in various positions including Supreme Court Research Judge, Presiding Judge at Daegu District Court, Professor at the Judicial Research and Training Institute, Presiding Judge at Seoul Central District Court, and Chief Judge of Daegu District Court and Daegu Family Court. After serving as a Supreme Court Justice, he was appointed Chief Justice in 2023. During the tenure of former Chief Justice Kim Myeong-su, he expressed minority opinions in major cases such as the state manipulation scandal and conscientious objection to military service, earning him the nickname 'Mr. Minority Opinion'. He published an autobiography titled 'Coexistence for All'. #ChoHeeDae #ChiefJustice #SupremeCourt #Judiciary #PublicTrust #MinorityOpinion #YangSungTae #KimMyeongSu #LegalCareer #Autobiography
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The Chief Justice of the Supreme Court of Korea
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Co-CEO and Vice Chairman of Mirae Asset Global Investments
Lee Jun-yong
- Lee Jun-yong, Co-CEO and Vice Chairman of Mirae Asset Global Investments, has been pivotal in leading the company alongside Choi Chang-hoon, the head of the asset management division, who oversees alternative investments. Lee Jun-yong has been instrumental in diversifying ETF products, expanding the pension business, and implementing algorithm-based product management using artificial intelligence (AI). Born in March 1969 in Seoul, Lee Jun-yong graduated from Daejeon Dae-shin High School and Seoul National University with a degree in Business Administration. He also holds a Master’s degree in Business Administration from the Graduate School of Seoul National University. Lee's career path includes positions at Boram Bank, Daewoo Securities, and Meritz Securities before joining Mirae Asset Group in 2002 as the Head of Financial Engineering at Mirae Asset Investment Trust Management. He then served as the CEO of Mirae Asset Global Investments' UK branch, CIO of the US and Brazil branches, and Head of Financial Engineering at Mirae Asset MAPS Global Investments. After holding positions such as Head of Multi-Asset Investments and Chief Investment Officer at Mirae Asset Global Investments, Lee Jun-yong was promoted to Vice Chairman in 2023 and appointed CEO of Mirae Asset Global Investments. Known for his expertise in financial engineering and the global investment market, Lee is recognized for his intense focus and dedication. He enjoys the deep trust of Mirae Asset Group Chairman Park Hyeon-joo and plays a crucial role in the group’s second-generation professional management structure. #LeeJunyong #MiraeAsset #ETF #FinancialEngineering #GlobalInvestment #AI #InvestmentStrategy #Leadership #PensionBusiness #AlgorithmicTrading
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Co-CEO and Vice Chairman of Mirae Asset Global Investments
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CEO of POSCO E&C
Chon Jung-son
- Chon Jung-son is the CEO and President of POSCO E&C. As a key subsidiary of the POSCO Group, he is dedicated to strengthening the internal stability of POSCO E&C, which has been suffering from deteriorating profitability. He was born on August 26, 1962. He graduated from Andong High School in Gyeongbuk and Korea University Law School. He joined POSCO and began his executive career as the head of the Management Information Team, the Coal Purchasing Group, and the Raw Material Development Office. He supported Chairman Choi Jeong-woo while serving as the Strategic Committee Member of the Value Management Office and the Head of the Management Strategy Office. After serving as the CEO of POSCO Steelion (formerly POSCO C&C), he returned to POSCO as the Head of the Value Management Center. He held positions as the Head of the Strategic Planning Division and the Head of the Global Infrastructure Division before serving as the CEO of POSCO Holdings after its transition to a holding company structure. Known for his long-standing collaboration with former Chairman Choi Jeong-woo, he is highly regarded within the POSCO Group for his strategic and financial acumen. In 2024, he was one of the final six candidates for the POSCO Holdings Chairman selection process and was once again entrusted with a significant role under Chairman Jang In-hwa's leadership. #JeonJoongSun #POSCO #POSCOENC #KoreaUniversity #CEO #POSCOHoldings #ChoiJeongWoo #JangInHwa #KoreanBusiness #CorporateLeadership
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CEO of POSCO E&C
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Leader of Rebuilding Korea Party
Cho Kuk
- Cho Kuk is the leader of the Rebuilding Korea Party. He is working tirelessly to secure the election of proportional representation candidates from the Rebuilding Korea Party in the general election. Entering the National Assembly, he prioritizes checking the Yoon Suk-yeol administration. He was born in Busan on April 6, 1965. He graduated from the School of Law at Seoul National University and obtained his master's and doctoral degrees in law from the same university's graduate school. He graduated from the University of California, Berkeley School of Law, majoring in criminal procedure law. He served six months in prison for aiding the Socialist Workers' Alliance, during which Amnesty International designated him a prisoner of conscience immediately after his imprisonment. He served as a professor at Seoul National University School of Law, a member of the Innovation Committee of the Democratic Party of Korea, and a member of the National Human Rights Commission of Korea. As a professor, he advocated for the establishment of the Corruption Investigation Office for High-ranking Officials (CIO) and the adjustment of investigative powers between the prosecution and the police. With the inauguration of the Moon Jae-in administration, he was appointed Senior Secretary for Civil Affairs in the Blue House, serving the longest term among Blue House aides. He was responsible for personnel verification, establishing public office discipline, and reforming power institutions. After stepping down as Senior Secretary for Civil Affairs, he was nominated as Minister of Justice. During the confirmation hearing, various allegations surfaced, leading to a fierce confrontation between the ruling and opposition parties over his appointment. He resigned from the ministerial position just over a month after taking office. Ahead of the 22nd National Assembly elections in April 2024, he founded the Rebuilding Korea Party and ran as a proportional representation candidate. As a scholar and activist with no prosecution background, he has represented the socially disadvantaged. However, during the appointment process for Minister of Justice, suspicions of his children's college admissions fraud emerged, damaging his reputation as a progressive intellectual. ### Keywords #ChoKuk #RebuildingKoreaParty #SouthKoreaPolitics #YoonSukYeol #MoonJaeIn #CivilRights #LegalReform #PoliticalCareer #SocialActivist #ProportionalRepresentation
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Leader of Rebuilding Korea Party
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CEO of the National Pension Service
Kim Tae-hyun
- Kim Tae-hyun is the CEO of the National Pension Service. He is dedicated to promoting pension reform. Born on November 15, 1966, in Jinju, Gyeongsangnam-do, he graduated from Da-A High School in Jinju and Seoul National University's School of Business. He also pursued a master's degree in Business Administration at Seoul National University Graduate School of Business. He entered public service by passing the 35th Administrative Examination and worked at the Ministry of Finance and Economy before moving to the Financial Services Commission in 2008. He served as the Director General of the Capital Market Bureau and the Financial Policy Bureau at the Financial Services Commission and later held positions as Standing Commissioner and Secretary General. In 2021, he was appointed President of the Korea Deposit Insurance Corporation but stepped down in less than a year before being appointed CEO of the National Pension Service in 2022. He values decision-making based on principles and has strong execution skills, earning him the nickname "Bulldozer." #KimTaeHyun #NationalPensionService #PensionReform #Finance #PublicService #FinancialServicesCommission #KoreaDepositInsurance #Leadership #Bulldozer #SeoulNationalUniversity
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CEO of the National Pension Service
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CEO of Hahn & Company
Hahn Sang-won
- Hahn Sang-won is the CEO of Hahn & Company. He focuses on successfully selling investment companies like Hanon Systems to recoup investment funds and discover new investment opportunities. He was born on July 1, 1971, in Seoul. He graduated from Phillips Exeter Academy and Yale University with a degree in economics. He also completed his MBA at Harvard Business School. He has served as the Korea Representative for Morgan Stanley PE and the Chief Investment Officer (CIO) for PE Asia. After founding Hahn & Company in 2010 and becoming its CEO, he quickly propelled it to become the second-largest private equity firm in South Korea. He has shown strength in investing in manufacturing sectors such as cement, shipping, and auto parts, earning the nickname 'Champion of Industrial Investments.' He adheres to the principles of 'focused investment' and 'long-term investment.' His strategy involves not just buying companies cheaply and selling them at a higher value but also acquiring similar businesses to create synergies, thereby increasing the value of the related industry. ### Keywords #HahnSangwon #HahnAndCompany #PrivateEquity #Investment #Korea #Business #Finance #Economics #HarvardMBA #FocusedInvestment
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CEO of Hahn & Company
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CEO of Lotte Shopping
Jung Joon-ho
- Jung Joon-ho is the President of the Department Store Business Division at Lotte Shopping (CEO of Lotte Department Store). As the first external appointee CEO of Lotte Shopping, he is focused on enhancing the brand image of Lotte Department Store. He emphasizes a free organizational culture and professional work expertise to his employees. He was born on January 26, 1965, in Chungju, Chungcheongbuk-do. He graduated from Chungju High School and the Department of Industrial Psychology at Sungkyunkwan University. He started his career through the Samsung Group's open recruitment and worked at Shinsegae Department Store. He served as the Head of Overseas Fashion Division at Shinsegae International and the Head of Duty-Free Business Division at Shinsegae Chosun Hotel. At Shinsegae International, he was responsible for overseas business, bringing fashion brands such as Armani, Moncler, Maison Margiela, and Acne Studios to Korea. After working at Shinsegae Group for over 20 years, he joined Lotte GFR (a fashion subsidiary of Lotte Group) in 2019. At Lotte GFR, he restructured the business by discontinuing less profitable brands and introducing new ones such as the British cosmetics brand Charlotte Tilbury, the Italian sports brand Kappa, and the French lifestyle brand K-Way. In 2021, he moved to Lotte Department Store. #JungJoonho #Lotte #departmentstore #leadership #brandimage #businessculture #Shinsegae #fashionbrands #corporatestructure #Koreanbusiness
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CEO of Lotte Shopping
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CEO of Hyundai Engineering
Hong Hyeon-sung
- Hong Hyeon-sung is the CEO & Vice President of Hyundai Engineering. He is overseeing the housing business, infrastructure business, and plant business while striving to bring the new eco-friendly business on track. He is also pushing for the re-initiation of Hyundai Engineering's IPO. Born in June 1964, he graduated from Chung-Ang University with a degree in civil engineering. After joining Hyundai Engineering, he worked as a site manager for overseas plant projects in Vietnam, Oman, and Kuwait. In 2022, he was promoted to Vice President of Hyundai Engineering and then appointed as CEO. He emphasizes the importance of listening, experience, and training.
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CEO of Hyundai Engineering
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CEO of LG Display
Jeong Chul-dong
- Jeong Chul-dong is the CEO & President of LG Display. He continues to strengthen OLED competitiveness while focusing on developing various display solutions such as transparent OLED. He was born on May 11, 1961. He graduated from Daeryun High School in Daegu and Kyungpook National University with a degree in Electronic Engineering. He studied Electronic Engineering at Chungbuk National University for his graduate studies. He started his career at LG Semicon and worked his way through roles such as Production Technology Manager at LG Philips LCD, and held positions as Director of the Production Technology Center, Executive Director of the Production Technology Center, and Vice President & Chief Production Officer (CPO) at LG Display. He was promoted to President of the Information & Electronic Materials Division at LG Chem, where he stabilized the glass substrate and water treatment filter businesses early on. In 2019, he became the CEO of LG Innotek and moved to become the CEO of LG Display in 2023. He is focusing on cost innovation to improve LG Display's performance.
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CEO of LG Display
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CEO and President of Hana Life Insurance
Namgoong Won
- Namgoong Won is the CEO and President of Hana Life Insurance. He is focusing on increasing investment profits and strengthening sales channel capabilities to improve Hana Life Insurance's performance. He was born on January 5, 1967. He graduated from Busanjin High School and Seoul National University with a degree in Economics. He began his career at Korea Exchange Bank. At Korea Exchange Bank, he served as the head of the Securities Operations Office and the head of the Strategic Planning Department. After Korea Exchange Bank merged with Hana Bank, he worked at Hana Bank as the head of the Money Market Business Division, the head of the Money Market Group, the head of the Management Planning Group, and then as the Deputy President of the Money Market Group before being appointed CEO of Hana Life Insurance. As an expert in the money market, he is focused on strengthening the profitability of the investment profits sector under the IFRS17 framework. #NamgoongWon #HanaLifeInsurance #CEO #investmentprofits #saleschannel #BusanjinHighSchool #SeoulNationalUniversity #KoreaExchangeBank #HanaBank #moneyMarketExpert #IFRS17
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CEO and President of Hana Life Insurance
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Ministry of SMEs and Startups Minister
Oh Young-ju
- Oh Young-ju is the Ministry of SMEs and Startups Minister . Her husband, Jang Myung-seok, is a former Seoul Metropolitan Government official who served as the Secretary of Public Discipline under the Lee Myung-bak administration. In 2011, he was convicted for ordering the diversion of special activity funds from the National Intelligence Service to prevent the exposure of civilian surveillance but was reinstated through a special pardon under the Yoon Suk-yeol administration. She was born on March 27, 1964, in Masan, Gyeongsangnam-do. She graduated from Daegu Girls' High School and Ewha Womans University with a degree in Political Science and International Relations. She earned a Master's degree in International Relations from the University of California, San Diego. Starting her public service career by passing the 22nd Foreign Service Examination, she served as the First Secretary at the Permanent Mission to the United Nations, Counselor in China, Director-General for Development Cooperation, Director of the Institute of Foreign Affairs and National Security, Ambassador to Vietnam, and the Second Vice Minister of Foreign Affairs. She is a career diplomat and an expert in multilateral and economic diplomacy. #OhYoungJu #SMEs #Startups #Diplomat #ForeignAffairs #YoonSukYeol #MultilateralDiplomacy #EconomicDiplomacy #SpecialPardon #InternationalRelations
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Ministry of SMEs and Startups Minister
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Ministry of Oceans and Fisheries Minister
Kang Do-hyung
- Kang Do-hyung is the Minister of Oceans and Fisheries. He is dedicated to fostering new marine industries and developing technologies. He was born on September 30, 1970, in Seongsan-eup, Jeju Island. He graduated from Namnyeong High School in Jeju and the Department of Oceanography at Inha University. He earned his master's and doctoral degrees in Fisheries Biology from Jeju National University. After serving as the head of the Jeju Specialized Research Center and the Jeju Research Institute at the Korea Ocean Research Institute, he was appointed as the President of the Korea Institute of Ocean Science and Technology. As an expert with 20 years of experience in the marine biotechnology field, he has intensively researched spirulina, a type of marine microalgae. He has shown interest in commercialization beyond simple research by signing technology transfer contracts with health functional food production companies. #KangDoHyung #MinisterOfOceansAndFisheries #MarineBiotechnology #Spirulina #JejuIsland #Oceanography #KoreaInstituteOfOceanScienceAndTechnology #TechnologyTransfer #MarineIndustries #FisheriesBiology
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Ministry of Oceans and Fisheries Minister
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President of Korea Deposit Insurance Corporation
Yoo Jae-hoon
- Yoo Jae-hoon is the president of the Korea Deposit Insurance Corporation (KDIC). He is focused on establishing a financial market crisis response system and expanding the protection scope of financial products. He was born in Seoul on March 10, 1961. He graduated from Kyunggi High School and Seoul National University with a degree in trade. He earned a master's degree in public administration from the Graduate School of Public Administration at Seoul National University and a master's degree in economics from the Graduate School of Sciences Po in Paris. He also obtained a Ph.D. in economics from Kyunggi University. He began his public service career after passing the 26th Higher Civil Service Examination. He worked at the Ministry of Finance and the Financial Supervisory Commission, and served as the spokesperson for the Financial Services Commission, a standing member of the Securities and Futures Commission, the Director General of the Treasury Bureau at the Ministry of Strategy and Finance, and the president of the Korea Securities Depository. He also worked at the Asian Infrastructure Investment Bank (AIIB), the World Bank (IBRD), and the Asian Development Bank (ADB). In 2022, he was appointed as the president of the Korea Deposit Insurance Corporation. He is recognized as a policy finance expert with extensive experience in economic ministries and the Financial Services Commission, as well as an international expert. #YooJaehoon #KDIC #financialcrisis #financialproducts #SeoulNationalUniversity #KyunggiHighSchool #economicexpert #AIIB #WorldBank #ADB
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President of Korea Deposit Insurance Corporation
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President & CEO of NongHyup Bank
Lee Seok-Young
- Lee Seok-Young is the President & CEO of NongHyup Bank. He is accelerating the digital transformation of NongHyup Bank, focusing on enhancing profitability and managing risks. He was born on November 7, 1965, in Paju, Gyeonggi Province. He graduated from Munsan High School and Hoseo University, and received a master's degree from the Graduate School of Public Administration at Yonsei University. He joined the National Agricultural Cooperative Federation (NongHyup) in 1991 and served as Head of the Human Resources Strategy Team, Director of the Board Secretariat, Head of the Paju Branch, Director of the Cooperative Structural Improvement Support Department, and Director of the Cooperative Audit Committee Secretariat. At NongHyup Bank, he served as Head of the Trustee Operations Center and Head of the Seoul Sales Headquarters before being promoted to Head of the Planning and Coordination Division (Executive Director) of the National Agricultural Cooperative Federation. In January 2023, he was appointed President & CEO of NongHyup Bank. He has accumulated experience in various key positions and frontline sales sites within the cooperative. He is known for his gentle personality and good social skills. # LeeSeokYoung #NongHyupBank #digitaltransformation #profitability #riskmanagement #YonseiUniversity #Koreanbanking #leadership #financialservices #NHBank
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President & CEO of NongHyup Bank
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Chairman of Kiswire
Hong Young-chul
- Hong Young-chul is the chairman of Kiswire. He has resigned from both his positions as CEO and inside director. As a second-generation owner, his father was the late Hong Jong-yeol, the honorary chairman and founder. Hong Young-chul was born on May 29, 1948, in Changwon, Gyeongnam. He graduated from Kyungbock High School and Yonsei University with a degree in Business Administration. He joined Kiswire in 1971 and became the chairman and CEO in 2001. He has grown Kiswire into South Korea's leading specialty wire rod company and a top-tier enterprise. He views superconducting wire rods as a future growth driver and is actively investing in them. He is particularly focused on research and development through the subsidiary KAT.
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Chairman of Kiswire
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Chairman of Meritz Financial Group
Cho Jung-ho
- Cho Jung-ho is the chairman of Meritz Financial Group. He was born on October 5, 1958 (lunar calendar) in Incheon as the youngest of four sons and one daughter of Cho Jung-hoon, the founder of Hanjin Group. He graduated from high school in Boston, USA, and majored in Economics at the University of Southern California. He earned a Master of Business Administration from the International Institute for Management Development in Switzerland. He joined Korean Air as a deputy manager and worked at the European regional headquarters before moving to Hanil Securities. After working at Hanjin Investment & Securities, he joined Dongyang Fire & Marine Insurance, a subsidiary of Hanjin Group, as Vice President. He was the first among his siblings to become independent from Hanjin Group. He renamed Hanjin Investment & Securities and Dongyang Fire & Marine Insurance to Meritz Securities and Meritz Fire & Marine Insurance respectively and became the chairman of Meritz Securities. After his father, founder Cho Jung-hoon, passed away, he separated Meritz Fire & Marine Insurance, Meritz Securities, and Hanbul Securities from the group and launched Meritz Financial Group by consolidating these three financial companies. He was appointed chairman of the holding company, Meritz Financial Group, but stepped down from management after facing criticism for receiving KRW 13.6 billion (USD 9.8 million) in salary and dividends. He served as the full-time chairman of Meritz Securities and returned as the chairman of Meritz Financial Group in 2014. He is proactive in recruiting talent and ensures autonomy for professional managers. He operates a system that actively recruits talent and rewards performance accordingly. #ChoJungHo #MeritzFinancialGroup #HanjinGroup #KoreanAir #MeritzSecurities #MeritzFireMarineInsurance #HanbulSecurities #BusinessLeadership #TalentRecruitment #PerformanceRewards
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Chairman of Meritz Financial Group
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Vice Chairman of Dongbu Corporation
Heu Sang-hee
- Heu Sang-hee is the Vice Chairman of Dongbu Corporation. He is striving to restore the former glory of Dongbu Corporation, which once ranked 9th in construction capability evaluation. He focuses on urban renewal projects in key areas of Seoul, creating synergies with HJ Heavy Industries, and diversifying businesses through overseas orders to restore profitability. He was born on February 15, 1964, in Jeonju, Jeollabuk-do. He graduated from the Department of Architectural Engineering at Wonkwang University and completed his master's degree at Wonkwang University Graduate School. He served as the CEO of Nitgen & Company, Sinsung Construction, and MK Electron before being appointed as an inside director of Dongbu Corporation. After Dongbu Corporation emerged from court receivership, he focused on normalizing management and was promoted to CEO and President. He values communication with employees and meticulously manages all projects directly. While focusing on expanding orders and clearing unprofitable projects, he seeks selective orders for high-profit projects. Although he stepped down as CEO in 2023, he still retains his position as an inside director. #HeuSangHee #DongbuCorporation #ViceChairman #ConstructionIndustry #UrbanRenewal #OverseasOrders #ManagementNormalization #SelectiveOrders #HighProfitProjects #CommunicationWithEmployees
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Vice Chairman of Dongbu Corporation
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CEO of Lotte Global Logistics
Kang Byoung-ku
- Kang Byoung-ku is the CEO of Lotte Global Logistics. He is focusing on strengthening Lotte Global Logistics' global business capabilities and enhancing corporate value for a successful listing. He was born in November 1968. After graduating from Seoul Kyung Sung High School, he went to the United States and attended Winter Haven High School. He graduated from the University of Tampa with a degree in Business Administration and obtained a Master's degree in Business Administration from Everest University. He began his career at the global logistics company UPS. He worked as a senior consultant at Samsung SDS and then returned to UPS, where he served as Vice President of Sales for the Asia-Pacific region and Vice President of Global Sales at the headquarters. After serving as the Head of the Global Division at CJ Logistics, he was appointed CEO of Lotte Global Logistics in 2024. #KangByoungku #LotteGlobalLogistics #CEO #GlobalBusiness #CorporateValue #Logistics #UPS #SamsungSDS #CJLogistics #BusinessLeader
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CEO of Lotte Global Logistics
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CEO and President of Hana Insurance
Bae Sung-wan
- Bae Sung-wan is the CEO and President of Hana Insurance. He is focusing on reorganizing the product portfolio centered around long-term insurance to improve the performance of Hana Insurance. Bae Sung-wan was born on November 15, 1968. He graduated from Yeongnam High School in Daegu and studied economics at Yeongnam University. He began his career at Samsung Fire & Marine Insurance. During his tenure at Samsung Fire & Marine Insurance, he held various positions, including Head of the Metropolitan Business Division 1, Head of GA Business Division 1, Planning Team Leader of the Long-term Insurance Division, and eventually became the Head of the Long-term Insurance Division. After retiring as Vice President of Samsung Fire & Marine Insurance, he was recruited in 2024 as the President and CEO of Hana Insurance. He is the first President and CEO recruited from outside Hana Financial Group after Hana Insurance was incorporated as a subsidiary of Hana Financial Group. #BaeSungwan #HanaInsurance #SamsungFire #LongTermInsurance #FinancialLeadership #InsuranceIndustry #CareerAchievements #CorporateLeadership #FinancialInnovation
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CEO and President of Hana Insurance
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CEO of SK On
Lee Seok-hee
- Lee Seok-hee is the CEO and President of SK On. He focuses on improving SK On's performance and establishing a profitable business model. He is dedicated to expanding the customer base by diversifying the chemical composition (chemistry) and form factor of lithium iron phosphate (LFP), cylindrical, and prismatic batteries. He was born on June 23, 1965, in Gyeongsan, Gyeongbuk. He graduated from Seoul National University with a degree in Inorganic Materials Engineering and obtained a master's degree in Inorganic Materials Engineering from the same university. After joining Hyundai Electronics, the predecessor of SK Hynix, he went abroad to study and earned a Ph.D. in Materials Engineering from Stanford University. He worked at Intel for 11 years before becoming a professor in the Department of Electrical Engineering at the Korea Advanced Institute of Science and Technology (KAIST). He was recruited as an Executive Vice President at SK Hynix, where he served as the Head of the Future Technology Research Institute, Head of the DRAM Development Division, Chief Operating Officer (COO) of Business Operations, and Head of Business Support before being appointed CEO. After stepping down from SK Hynix, he returned to SK Group's next-generation growth engine, the battery business, as CEO of SK On, about two years later. He strives to communicate with employees and pursues 'happiness management.' He has a meticulous personality and demonstrates bold business execution. #Keywords: #LeeSeokhee #SKOn #BatteryBusiness #LithiumIronPhosphate #InorganicMaterialsEngineering #StanfordUniversity #KAIST #Intel #SKHynix #HappinessManagement
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CEO of SK On
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President of Planning at Hoban Group
Kim Dae-heon
- Kim Dae-heon is the President of Planning at Hoban Group. He serves as an inside director of Hoban Construction. He is working on discovering new businesses by expanding investments in startups in the fields of smart construction and eco-friendly construction technology. He was born on October 25, 1988, as the eldest son among two sons and one daughter to Kim Sang-yeol, the founder of Hoban Group, and Woo Hyun-hee, the chairman of Taesung Cultural Foundation. He graduated from Seoul High School and the Golf Industry Department of Kyung Hee University. He earned a master's degree in business administration from Korea University Business School. He worked at Hoban Construction Housing before serving as Executive Director of the Future Strategy Office and Vice President of Management Division at Hoban Construction. He opened the second-generation management era of Hoban Group by being promoted to President of Hoban Construction after serving as the head of the Planning Division, responsible for discovering new businesses. He is the largest shareholder of Hoban Construction. #HobanGroup #KimDaeheon #SmartConstruction #EcoFriendlyTech #NewBusiness #Investment #Startup #SeoulHighSchool #KyungHeeUniversity #KoreaUniversity
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President of Planning at Hoban Group
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CEO of KB Kookmin Bank
Lee Jae-keun
- Lee Jae-keun is the president of KB Kookmin Bank. He is engaged in intense competition with Hana Bank and Shinhan Bank for the top bank position. He was born on May 27, 1966, in Seoul. He graduated from Seoul High School and majored in Mathematics at Sogang University. He earned a master's degree in Economics from Sogang University Graduate School and a master's degree in Financial Engineering from the Korea Advanced Institute of Science and Technology (KAIST). He began his career at Housing Bank, the predecessor of KB Kookmin Bank, and served as Chief Secretary of KB Financial Group and Branch Manager of KB Kookmin Bank Pangyo Techno Valley Branch. After serving as Head of Financial Planning and Director at KB Financial Group, he returned to KB Kookmin Bank. He held the positions of Executive Director of the Management Planning Group and Deputy President of the Sales Group before being appointed president of KB Kookmin Bank in 2021. As one of the youngest heads of a major bank, he is noted as the leader of generational change at KB Kookmin Bank. Having worked as the group's Chief Financial Officer, he has a deep understanding of KB Financial Group's strategic direction and financial situation. He emphasizes execution over planning, and his decision-making is sharp and quick. #LeeJaekeun #KBKookminBank #banking #financialservices #leadership #competition #finance #strategy #execution #decisionmaking
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CEO of KB Kookmin Bank
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Chief Investment Officer of National Pension Service
Seo Won-joo
- Seo Won-joo is the Chief Investment Officer (CIO) of the National Pension Service (NPS). He is striving to diversify the sources of income for the NPS, including alternative investments. Born in 1965, Seo graduated from Yonsei University with a degree in Business Administration. He also earned a Master's degree in Business Administration from the Yonsei University Graduate School of Business and completed a doctoral program in Financial Management at Soongsil University. He began his career at Samsung Life Insurance, where he held positions such as Head of Variable Account Management and Head of Asset Management. Seo also served as Head of Asset Management at PCA Life Insurance (now Mirae Asset Life Insurance) and as Head of Fund Management at the Government Employees Pension Service. Although he has a cautious personality, he maintains a firm stance on strengthening responsible management. #SeoWonjoo #NPS #NationalPensionService #CIO #alternativeinvestments #SamsungLife #MiraeAssetLife #YonseiUniversity #SoongsilUniversity #financialmanagement
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Chief Investment Officer of National Pension Service
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CEO of CJ Bioscience
CHUN Jon JongSik
- Chun Jon Jong-sik is the CEO of CJ Bioscience. He leads CJ Group's bio-business, focusing on new drug development and diagnostic services utilizing the human microbiome (microbial communities). He aims to elevate the company to the global number one microbiome company by 2025, with goals of having 10 new drug candidates (pipeline) and two technology exports. Born on February 20, 1967. He graduated from the Department of Microbiology at Seoul National University and obtained a Ph.D. in Bacteriology from Newcastle University in the UK. He worked as a researcher at the Marine Biotechnology Institute of the University of Maryland, USA, and as a senior researcher at the Korea Research Institute of Bioscience and Biotechnology, before being appointed as a professor in the Department of Biological Sciences at Seoul National University. While serving as a professor, he founded ChunLab, a microbiome specialty company. After ChunLab was acquired by CJ Group and transformed into CJ Bioscience, he resigned from his professorship to focus on the business. He founded the company believing that research on microorganisms alone had limitations in contributing to society and that various substances necessary for humanity could be discovered through microorganisms. He is a scholar in the field of microbiology who has been selected as a Highly Cited Researcher (HCR) in the world's top 0.1% for five consecutive years. He is interested in making microbiology-related information easily accessible to the general public through media appearances and writing. #Keywords #ChunJonJongSik #CJBioscience #microbiome #newdrugdevelopment #biotechnology #SeoulNationalUniversity #ChunLab #highlycitedresearcher #microbialresearch #biopharmaceuticals
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CEO of CJ Bioscience
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Chairman of NongHyup Financial Group
Lee Suk-joon
- Lee Suk-Joon is the chairman of NongHyup Financial Group. He is focusing on strengthening risk management to prepare for financial market uncertainties and enhancing digital competitiveness. He was born on May 18, 1959, in Busan. He graduated from Dong-A High School in Busan and Seoul National University with a degree in Economics. He earned a master's degree in Economics from Chung-Ang University Graduate School and completed an MBA program at MIT Sloan School of Management. He began his public service career through the 26th Administrative Examination, serving as Director of Policy Coordination at the Ministry of Planning and Finance, standing committee member of the Financial Services Commission, and Director of the Budget Office at the Ministry of Planning and Finance. He later held positions as Vice Minister of the Ministry of Planning and Finance, First Vice Minister of the Ministry of Science and Future Planning, and Chief of the Presidential Office of Government Coordination. He was the first to join the campaign camp when Yoon Suk-yeol ran for president as the candidate for the People's Power Party. After the presidential election, he was appointed as the director of the Seoul Scholarship Foundation. He assumed office as chairman of NongHyup Financial Group in 2023. He contributes many innovative ideas with his flexible thinking. He demonstrates precise judgment and a rational work style.
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Chairman of NongHyup Financial Group
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CEO of Hanwha Impact
Kim Hee-cheul
- Kim Hee-cheul is the President & CEO of Hanwha Impact and also serves as the President & CEO of Hanwha Energy. At Hanwha Impact and Hanwha Energy, he is expanding the hydrogen and renewable energy businesses and discovering new business opportunities to increase corporate value, assisting Vice Chairman Kim Dong-kwan, the third-generation owner, in his management succession. He was born on October 10, 1964, in Daegu. He graduated from Daegu Seonggwang High School and the Chemical Engineering Department of Seoul National University. He earned a master's degree in chemical engineering from Seoul National University Graduate School and an MBA from the University of Washington Business School in the United States. After joining Hanwha Group, he served as CEO of Hanwha SolarOne, Hanwha General Chemical, Hanwha Total, and Hanwha Q CELLS, leading the chemical, material, and solar businesses. In 2021, he was appointed President & CEO of Hanwha Impact and the holding company division of Hanwha Energy. He is a prominent strategic expert within Hanwha Group and led the chemical division task force team in the 'big deal' between Hanwha Group and Samsung Group. He served as an adjunct professor in the Department of Chemical and Biological Engineering at Seoul National University and is a general member of the National Academy of Engineering of Korea, recognized as a chemical expert. # Keywords: # KimHeecheul #HanwhaImpact #HanwhaEnergy #RenewableEnergy #HydrogenBusiness #CorporateValue #ManagementSuccession #ChemicalEngineering #HanwhaGroup #StrategicExpert
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CEO of Hanwha Impact
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CEO of Daewoo E&C
Baek Jung-wan
- Baek Jung-wan is the CEO and President of Daewoo E&C. He is focusing on profitability-centered management after taking charge of Daewoo E&C, which moved from the ownership of Korea Development Bank to Jungheung Group. He was born on August 7, 1963, in Yeoncheon County, Gyeonggi Province. He graduated from Shinil High School and Hanyang University with a degree in architectural engineering. After joining Daewoo E&C in 1985, he has only worked at Daewoo E&C, making him a traditional Daewoo E&C man. He achieved results in Daewoo E&C's core housing business, serving as the head of the Housing Business Division, Risk Management Division, and Housing Construction Business Division. To respond to the housing market recession, he established a public construction organization directly under the CEO to actively pursue civil engineering project orders. At the same time, with the support of Jung Won-joo, Chairman of Daewoo E&C, he is striving to expand overseas plant business. He is a benevolent leader with excellent communication skills with employees. When necessary, he boldly exhibits his gambler's instincts. #BaekJungwan #DaewooE&C #CEO #JungheungGroup #profitability #HanyangUniversity #housingbusiness #civilengineering #overseasplant #leadership
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CEO of Daewoo E&C
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CEO and President of Hanjin KAL
Ryu Kyeong-pyo
- Ryu Kyeong-pyo is the President and CEO of Hanjin KAL. Leading the holding company Hanjin KAL, he is restructuring Hanjin Group's financial structure to acquire Asiana Airlines. He was born on August 23, 1964, in Pyeongtaek, Gyeonggi Province. He graduated from Hyomyung High School and the Business Administration Department of Seoul National University. He obtained a Master’s degree in Business Administration from the Massachusetts Institute of Technology (MIT) graduate school. He began his career as an accountant at Samil Accounting Corporation. Since 1990, he has been part of Hanjin Group, serving as the head of the IR team at Korean Air and the head of the financial planning team at the Group Restructuring Office. After serving as the Chief Administrative Officer at Inha University, the head of the audit department at S-Oil, and the head of the production support headquarters at S-Oil, he returned to Hanjin Group and served as the Executive Vice President of Finance and the head of the Corporate Planning Office at Hanjin. He became the CEO of Hanjin and was appointed as the CEO of Hanjin KAL, the holding company of Hanjin Group, in 2022. He holds certifications as a Certified Public Accountant and a Tax Accountant. He is regarded as a key manager leading the third generation of management at Hanjin Group. #HanjinKAL #RyuKyeongpyo #AsianaAirlines #FinancialRestructuring #KoreanAir #MIT #SeoulNationalUniversity #CPA #HanjinGroup #CorporateManagement
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CEO and President of Hanjin KAL
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CEO of Hana Bank
Lee Seung-lyul
- Lee Seung-lyul is the CEO & president of Hana Bank. He is the first president from the former Korea Exchange Bank after the merger between Hana Bank and Korea Exchange Bank. He has set a goal to make Hana Bank a 'bank stronger in crisis, leading bank' by focusing on strengthening its strengths in asset management, corporate finance, and foreign exchange. He was born on April 8, 1963. He graduated from Gyeongbuk High School and Seoul National University with a degree in Economics, and received a master's degree in Economics from Seoul National University Graduate School. He worked at Korea Exchange Bank as the head of the Strategic Planning Department and the Management Planning Department. After Korea Exchange Bank was acquired by Hana Financial Group, he served as the head of the Management Planning Department at Hana Bank, Vice President and Group Chief Financial Officer (CFO) of Hana Financial Group, and Deputy President of the Management Planning Group and Social Value Headquarters at Hana Bank. He was appointed president of Hana Bank after serving as president of Hana Life Insurance for one year. He has primarily worked in the fields of bank and holding company management planning and finance. He is known for his gentle personality and leading by example. When promoting tasks, he thoroughly discusses with employees and strives to achieve reasonable results. #LeeSeungLyul #HanaBank #KoreaExchangeBank #banking #finance #merger #leadership #assetmanagement #corporatefinance #foreignexchange
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CEO of Hana Bank
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President of the Home Appliance & Air Solution Company at LG Electronics
Lyu Jae-cheol
- Lyu Jae-cheol is the President of the Home Appliance & Air Solution Company at LG Electronics. He is targeting the premium home appliance market with LG Electronics' ultra-premium home appliances ‘LG Signature’ and customized space appliances ‘LG Objet Collection’. He is also focusing on the ‘Up Appliance’ lineup, which can be upgraded to suit customer preferences. He was born on March 15, 1967, in Sacheon, Gyeongsangnam-do. He graduated from Seoul National University with a degree in Mechanical Engineering and completed an MBA at the University of Illinois. He joined LG Electronics (formerly Goldstar) as a washing machine researcher and has been a technology expert in home appliances for 30 years. He has held positions such as Refrigerator Production Manager, RAC (Room Air Conditioner) Business Manager, and Head of the Living Appliance Business Division, overseeing all aspects of home appliances. He succeeded former President Song Dae-hyun, who led LG Electronics' H&A Business Division to record performance, and is now leading the company's home appliance business. He is known for his ability to understand customer needs and market trends. #LG #LyuJaeCheol #homeappliances #premiumappliances #LGSignature #LGObjetCollection #H&A #technologyexpert #markettrends #leadership
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President of the Home Appliance & Air Solution Company at LG Electronics
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CEO and President of SK Energy
Oh Jong-hoon
- Oh Jong-hoon is the CEO and President of SK Energy. He focuses on building a complex energy platform, integrated transportation services, and combining gas station logistics chains. He was born in January 1968. He graduated from Yonsei University with a degree in law. After serving as the Head of Energy Strategy at SK Energy and CEO of P&M CIC, he was appointed as the CEO and President of SK Energy. He is dedicated to diversifying the business through eco-friendly new ventures while enhancing the brand value of the existing oil business. He enjoys visiting business sites personally and values gathering opinions from employees.
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CEO and President of SK Energy
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President of Seoul Women's University
Seung Hyun-woo
- Seung Hyun-woo is the President of Seoul Women's University. He was born on January 7, 1959, in Seoul. He graduated from Sogang University with a degree in English Language and Literature and obtained a master's degree and a doctorate in Computer Science from the Illinois Institute of Technology in the United States. He worked as the head of the Database Research Lab at the Software Research Institute of Korea Telecom (currently KT). In 1994, he joined Seoul Women's University as a professor in the Department of Information and Communication Engineering. He has served as the Dean of the College of Information and Media, the Director of International Cooperation, the Director of Academic Affairs, the Dean of the Graduate School of Education, the Dean of the Graduate School of Human Services, and the Dean of the Graduate School of Special Treatment. He was appointed President in 2021, becoming the first male president of the university. From the stage of his appointment by the university's board of directors, he faced opposition from the faculty, experiencing difficulties even before his term began. He is focused on improving the presidential election system through campus communication and enhancing educational capabilities that transcend the limitations of a women's university. #SeoulWomensUniversity #SeungHyunWoo #SogangUniversity #IllinoisInstituteofTechnology #KT #education #universitypresident #SouthKorea #academicleadership #womenseducation
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President of Seoul Women's University
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CEO and President of SK Ecoplant
Park Kyoung-il
- Park Kyoung-il is the Co-CEO and President of SK Ecoplant. He leads SK Ecoplant in a dual leadership system with Vice Chairman and Co-CEO Jang Dong-hyun. He is focusing on expanding global operations in environmental energy fields such as battery recycling, green hydrogen, and offshore wind power. To ensure a successful initial public offering (IPO) for SK Ecoplant, he is dedicated to cost efficiency, investment reduction, and diversifying contracts to secure financial stability. He was born on January 24, 1969, in Cheongju. He graduated from Cheongju High School and majored in Business Administration at Seoul National University. He began his career in the Financial Management Office of Shinsegi Telecom. He served as the head of the Business Planning Team and the Strategic Planning Office at SK Telecom, followed by roles as the head of the PM Strategy Office, head of the SV (Social Value) Promotion Group, and head of the Happiness Design Center at SK. He moved to SK Ecoplant's predecessor, SK Construction, where he was the Chief Operating Officer before being appointed CEO of SK Ecoplant in 2021. He has an adventurous and progressive personality, enjoying challenges. #ParkKyoungil #SKEcoplant #CEO #environmentalenergy #globalbusiness #batteryrecycling #greenhydrogen #offshorewindpower #IPO #SKConstruction
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CEO and President of SK Ecoplant
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Vice Chairman and CEO of Hanwha Ocean
Kwon Hyuk-woong
- Kwon Hyuk-woong is the Vice Chairman and CEO of Hanwha Ocean. He is focused on normalizing the management and expanding the business of Hanwha Ocean. Born on March 3, 1961, in Seoul, he graduated from Kyunggi High School and Hanyang University with a degree in Chemical Engineering. He earned both his Master’s and Doctorate degrees in Chemical Engineering from the Korea Advanced Institute of Science & Technology (KAIST). After joining Hanwha Energy in 1985, he mainly worked in the refining, petrochemical, and energy sectors. He served as CEO of Yeosu Cogeneration Plant, Hanwha Energy, Hanwha Total, and Hanwha General Chemical. He also took charge of overall group operations as the Head of the Human Resources Team at Hanwha Group’s Management Planning Office, and in the Management Division and Support Division of Hanwha Holdings. He led the acquisition team for DSME (currently Hanwha Ocean), directing the acquisition process. After the acquisition was completed, he was appointed as the first CEO of the newly launched Hanwha Ocean and was promoted to Vice Chairman. He is highly regarded for his management skills and expertise in the energy sector. #KwonHyukwoong #HanwhaOcean #ViceChairman #CEO #ChemicalEngineering #KAIST #BusinessExpansion #EnergySector #ManagementSkills #DSMEAcquisition
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Vice Chairman and CEO of Hanwha Ocean
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President of Kyungpook National University
Hong Won-hwa
- Hong Won-hwa is the president of Kyungpook National University. He was born on April 4, 1963, in Yecheon, Gyeongbuk. He graduated from Daegu Kyungwon High School and Kyungpook National University's Department of Architectural Engineering. He obtained a master's degree and a doctorate in architecture from Waseda University in Japan. He worked as a visiting researcher at the University of Tokyo and as a senior researcher at Waseda University before being appointed as a professor in the Department of Architectural Engineering at Kyungpook National University in 1999. He served as the Director of External Cooperation, Director of Industry-Academic Research, and Dean of the Graduate School of Industry before being appointed president in 2020. He has been active as a member of the Presidential Commission on Architecture Policy, head of the Disaster Safety Technology Development Project under the Ministry of Public Safety and Security, and vice chairman of the University Architecture Society. As of January 2024, he is a member of the Basic Research Project Promotion Committee of the Ministry of Science and ICT, chairman of the Daegu Technopark Foundation, and a member of the Presidential National Education Commission. He has also served as the president of the Korean Council for University Education. He is focused on establishing an innovation platform for education and research. He is committed to leading regional development through the establishment of an industry-academic cooperation network linked to the local community. Although he aimed for Kyungpook National University to be recognized as a top national university, the university failed to be selected for the Ministry of Education's 'Glocal 30 Universities' initiative. #KyungpookNationalUniversity #HongWonHwa #architecture #WasedaUniversity #TokyoUniversity #DaeguTechnopark #KoreanCouncilForUniversityEducation #education #research #regionaldevelopment
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President of Kyungpook National University
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President of KEPCO KPS
Kim Hong-youn
- Kim Hong-youn is the President of KEPCO KPS. He is focused on enhancing the maintenance capabilities of thermal power plant facilities and expanding business areas into renewable energy and nuclear decommissioning. He is also dedicated to strengthening ESG (Environmental, Social, and Governance) management. He was born on March 5, 1958, in Jeollanam-do. He graduated from Chonnam National University with a degree in Business Administration and earned a Master's degree in Energy Policy from Seoul National University of Science and Technology. He joined KEPCO and held positions such as Director of the Management Research Institute, Director of Overseas Business Operations, Head of the Jeju Special Branch, Director of Group Management, and Head of the Seoul Regional Headquarters. As the Director of Overseas Business Operations, he led the successful acquisition of large-scale wind power projects abroad. In 2021, he was appointed as the President of KEPCO KPS. He emphasizes the importance of the field, frequently stating that "the answer lies in the field." #KimHongyoun #KEPCOKPS #ESGmanagement #renewableenergy #nucleardecommissioning #thermalpower #energypolicy #ChonnamNationalUniversity #SeoulScienceandTechnology #fieldemphasis
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President of KEPCO KPS
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CEO of Hyundai E&C
Yoon Young-joon
- Yoon Young-joon is the President and CEO of Hyundai Engineering & Construction. Due to the contraction of the real estate market, he is focused on steadily advancing the pre-ordered residential construction projects. Along with securing urban redevelopment projects focused on large-scale developments such as Apgujeong and Hannam New Town in Seoul, he is actively engaging in new businesses such as large nuclear power plants, small modular reactors (SMR), renewable energy power purchase agreements (PPA), and offshore wind power. He is interested in securing profitability through high-value overseas orders and stable management of construction sites. He was born on December 19, 1957. He graduated from Cheongju University with a degree in Public Administration and obtained a Master's degree in Environmental Studies from Yonsei University Graduate School. He is a housing business expert who has worked solely at Hyundai Engineering & Construction for 35 years, overseeing and managing various construction projects as a site manager. During his tenure as Head of the Housing Business Division, he achieved good results in urban redevelopment project orders and housing brand management, which led to his promotion to President and CEO. He demonstrates exceptional organizational control and a competitive spirit. He is meticulous and thorough. #YoonYoungjoon #HyundaiConstruction #realestate #urbanredevelopment #nuclearpower #renewableenergy #offshorewind #housingexpert #constructionmanagement #leadership
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CEO of Hyundai E&C
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President of The Catholic University of Korea
Won Jong-chul
- Won Jong-chul is the President of Catholic University. He was born on October 14, 1958. He graduated from the Department of Theology at Catholic University and was ordained a priest in 1986. He obtained a Master’s and Doctorate in Education from Temple University in the United States. He has served as a Catholic Scout leader, and an assistant priest at the Korean Catholic Church in Philadelphia. He has held various positions at Catholic University, including Director of the Institute for Human Studies, Director of Planning, Dean of the Graduate School of Education, and was appointed President. He is the Chairman of the Association of Catholic University Presidents in Korea. He has established strategies for university management focused on curriculum innovation, specialized research enhancement, leading industry-academia collaboration, and improving administrative systems. He is concentrating on securing future growth drivers through internationalization, employment rates, reputation, and the establishment of lifelong education systems. #WonJongChul #CatholicUniversity #Education #Leadership #Innovation #Internationalization #HigherEducation
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President of The Catholic University of Korea
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CEO and President of SK E&S.
Choo Hyeong-wook
- Choo Hyeong-wook is the President and CEO of SK E&S. He is focusing on establishing a hydrogen business value chain to make SKE&S the 'global number one hydrogen business operator.' He is dedicated to growing SKE&S into a 'global major eco-friendly energy company' with a corporate value of KRW 35 trillion (US$ 25.2 billion) by 2025. He was born on October 26, 1974. He graduated from Seoul Wooshin High School and majored in Economics at Inha University. He obtained a Master's degree in Business Administration from Sungkyunkwan University Graduate School. He began his career at Samsung Electro-Mechanics. He joined SK Group, starting in the Strategic Planning Team of SKE&S. He was promoted to president just three years after becoming an executive. He played a leading role in planning SK Group's LNG business and was central to the acquisition process of SK Nexilis (formerly KCFT), which is SKC's new growth driver. Since 2021, he led SKE&S alongside Vice Chairman Yoo Jung-joon in a co-CEO system, and from 2023, he has been overseeing management as the sole CEO. #ChooHyeongwook #SKE&S #hydrogenbusiness #SKGroup #LNGbusiness #SKNexilis #eco-friendlyenergy #corporatevalue #CEO #businessgrowth
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CEO and President of SK E&S.
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CEO of Simmons
Ahn Jung-ho
- Ahn Jung-ho is the CEO and President of Simmons. He leads the bed and mattress manufacturing company, Simmons, with a focus on quality management and ESG (Environmental, Social, and Governance) management. He was born on May 2, 1971, in Seoul. He graduated from the Economics Department at Southern Illinois University in the United States and joined Simmons in 1998, becoming CEO and President in 2001. As a second-generation owner, his father is Ahn Yoo-soo, the former chairman of Ace Bed. His brother, Ahn Sung-ho, is the CEO and President of Ace Bed. The former chairman, Ahn Yoo-soo, passed on Ace Bed and Simmons to his sons, Ahn Sung-ho and Ahn Jung-ho, respectively. The brothers engage in friendly competition in the bed industry. He is actively interested in expanding the company's positive influence through philanthropy and cultural content. #AhnJungHo #Simmons #ESGManagement #QualityManagement #Philanthropy #CulturalContent #AceBed #BedIndustry #SecondGenerationOwner #SouthernIllinoisUniversity
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CEO of Simmons
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President of Chungnam National University Hospital
Cho Kang-hee
- Cho Kang-hee is the director of Chungnam National University Hospital. While enhancing the professionalism of medical services, he is focusing on promoting medical research and advancing the bio-healthcare industry to prepare for future medicine. As a rehabilitation specialist, his expertise lies in spinal cord injury rehabilitation, musculoskeletal rehabilitation, and sports rehabilitation. He was born on October 26, 1962. He graduated from Chungnam National University College of Medicine and obtained his master's and doctoral degrees in medicine from Chungnam National University Graduate School. In 1999, he was appointed as an assistant professor in the Department of Rehabilitation Medicine at Chungnam National University Hospital. He has served as the director of the Medical Engineering Research Institute, the head of the Department of Rehabilitation Medicine, the head of the Regional Medical Rehabilitation Center, and the chairman of the Sejong Chungnam National University Hospital Establishment Promotion Committee before being appointed as the director of Chungnam National University Hospital in 2023. He has been the chairman of the Korean Academy of Rehabilitation Medicine, the president of the Korean Society of Neuromusculoskeletal Ultrasound, and the president of the Korean Academy of Clinical Pain. He is currently serving as the vice-chairman of the International Academic Affairs Committee of the Korean Hospital Association. He is promoting the construction of a new cancer hospital with a capacity of 1,000 beds and is seeking to operate a public children's rehabilitation hospital effectively. He is focusing on improving the hospital's weak financial structure. #ChoKanghee #ChungnamNationalUniversityHospital #rehabilitation #medicalresearch #biohealthcare #spinalcordinjury #musculoskeletalrehabilitation #sportsrehabilitation #cancerhospital #childrensrehabilitation
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President of Chungnam National University Hospital
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CEO and President of Sh Suhyup Bank
Kang Shin-sook
- Kang Shin-sook is the President of Sh Suhyup Bank. She is the first female president of Suhyup Bank. She is focusing on acquiring non-bank financial companies and strengthening the profitability of Sh Suhyup Bank to support the conversion of Suhyup Central Federation into a financial holding company. She was born on April 7, 1961, in Sunchang, Jeollabuk-do. She obtained a Master's degree in Public Administration from Yonsei University's Graduate School of Public Administration. She joined Suhyup Central Federation and progressed through various positions including Head of Personal Customer Department, Head of Review Department, Head of Central Corporate Finance Center, Head of Financial Headquarters for Gangbuk and Gangnam Regions, Executive Director, and Managing Director for Guidance, eventually becoming Deputy Representative in charge of Finance. In 2022, she was appointed as the president of Suhyup Bank. She holds the titles of the youngest female department head, the first female head of headquarters, and the first female executive in Suhyup Central Federation. She is recognized as a leading sales expert in Suhyup Bank. She took charge of the Ogum-dong branch in Songpa-gu, Seoul, which was on the verge of closing, and turned it into the top-rated branch nationwide for eight consecutive quarters. She values positive engagement. She is known for her strong drive and exceptional focus. #KangShinSook #SuhyupBank #firstfemaleleader #financialexpert #salesleader #positiveengagement #strongdrive #exceptionalfocus #nonbankacquisition #profitabilityboost
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CEO and President of Sh Suhyup Bank
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CEO of Ace Bed
Ahn Sung-ho
- Ahn Sung-ho is the CEO and President of Ace Bed. He also serves as the CEO of the furniture company Flex Korea. He was born on April 21, 1968, in Seoul. He graduated from Korea University with a degree in Geology. As a second-generation owner, his father is Ahn Yoo-soo, the former chairman and founder of Ace Bed. Former Chairman Ahn Yoo-soo passed down Ace Bed and Simmons Bed to his sons, Ahn Sung-ho and Ahn Jung-ho, respectively. He joined Ace Bed in 1992 and was promoted to CEO and President in 2003. Amidst a challenging management environment due to economic downturns, the rise of competitors, and intensified competition in the mattress market, he is focused on maintaining the industry's top position. He is concentrating the organization's efforts on improving the company's short-term performance, which has deteriorated. #AceBed #FlexKorea #AhnSungHo #KoreaUniversity #Geology #AhnYooSoo #CEO #FurnitureIndustry #MattressMarket #BusinessLeadership
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CEO of Ace Bed
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President of Korea National Oil Corporation
Kim Dong-sub
- Kim Dong-sub is the President of Korea National Oil Corporation (KNOC). He is dedicated to improving the financial structure of KNOC, which has fallen into a state of complete capital erosion, while also discovering new growth engines in consideration of the carbon-neutral trend. He was born on January 3, 1957, in Pohang, Gyeongbuk. He graduated from Kyungpook National University High School and Seoul National University with a degree in Naval Architecture. He earned a master's degree in Naval Architecture from Seoul National University and a Ph.D. in Industrial Engineering from Ohio State University in the United States. He served as the head of the Asia-Pacific engineering division at Shell and was the president and CTO at SK Innovation. He worked as a professor in the Department of Industrial Engineering and Dean of the College of Information and Biotechnology Convergence at Ulsan National Institute of Science and Technology (UNIST). In 2021, he was appointed as the President of KNOC. He is a prominent expert in Korea's oil industry, emphasizing communication and servant leadership, and is known for being flexible and rational. #KNOC #KoreaNationalOilCorporation #KimDongsub #carbonneutral #oilindustry #financialstructure #newgrowth #servantleadership #expert #SouthKorea
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President of Korea National Oil Corporation
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CEO of Shinsegae Live Shopping
Lee Seock-koo
- Lee Seock-koo is the President and CEO of Shinsegae Live Shopping. Having worked at Shinsegae Group for 24 years, he is now leading an online subsidiary for the first time, focusing on improving the profitability of Shinsegae Live Shopping. He was born on June 18, 1949, in Yongin, Gyeonggi Province. He graduated from Dongsung High School and Yonsei University with a degree in Business Administration. He joined Samsung C&T Corporation, working in the Management Administration Office and Planning Management Office, and served as the head of support for both the Shinsegae Department Store and E-Mart divisions. After serving as CEO of Chosun Hotel, he was the CEO of Starbucks Korea (now SCK Company) for 11 years. In 2023, he was appointed President and CEO of Shinsegae Live Shopping. He is the oldest among the CEOs of subsidiaries of the top 10 conglomerates in Korea. During his long tenure at Starbucks Korea, he achieved the first annual sales of KRW 1 trillion (US$ 721.3 million) in the coffee industry and positioned Starbucks Korea at the forefront of coffee culture, earning the nickname 'Trend Maker.' He stepped down as an advisor to Starbucks Korea but returned as President of the JAJU business division of Shinsegae International, demonstrating the high level of trust he enjoys within the Shinsegae Group. #LeeSeockkoo #ShinsegaeLiveShopping #ShinsegaeGroup #OnlineSubsidiary #Profitability #StarbucksKorea #TrendMaker #ChosunHotel #YonseiUniversity #KoreanBusinessLeader
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CEO of Shinsegae Live Shopping
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CEO of T'way Air
Jeong Hong-geun
- Jeong Hong-geun is the CEO of T'way Air. He is focusing on the recovery of the passenger business after the end of COVID-19. He is expanding routes to mid- to long-distance regions such as Australia and Central Asia. He was born on August 6, 1958, in Uiryeong, Gyeongnam. He graduated from Dongrae High School in Busan and studied Political Science and International Relations at Korea University. He also received a Master's degree in Comparative Politics from Korea University Graduate School. He worked at Korean Air for over 20 years, serving as the Domestic Sales Team Leader and Nagoya Branch Manager before becoming the Head of the Management Support Department at Jin Air, a subsidiary of Hanjin Group. In 2013, he moved to T'way Air, where he served as the Head of Sales Service Division and Head of Japan Regional Headquarters before being appointed as CEO. He is known as the longest-serving CEO among the executives of domestic low-cost carriers and is recognized for his excellent sales capabilities. He emphasizes the importance of education and training. #JeongHonggeun #TwayAir #CEO #airlineindustry #COVID19recovery #routeexpansion #KoreaUniversity #KoreanAir #JinAir #lowcostcarrier
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CEO of T'way Air
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Chairman of The Credit Finance Association
Chung Wan-kyu
- Chung Wan-kyu is the Chairman of the Credit Finance Association. He focuses on strengthening cooperation among member companies and supporting vulnerable sectors to enhance the competitiveness of the specialized credit finance industry. He was born on October 13, 1963. He graduated from the Attached High School of Chonnam National University College of Education and majored in Public Administration at Korea University. He began his public service career by passing the 34th Higher Civil Service Examination. He has served as the Director of the Capital Markets Division, the Director of Administrative Personnel, the Planning Coordinator, and the Director of SME and Microfinance Policy at the Financial Services Commission. He was the Director of the Financial Intelligence Unit (FIU), the CEO of Korea Securities Finance Corporation, and an outside director at Toss Bank before being appointed as the Chairman of the Credit Finance Association. He is dedicated to rationalizing card merchant fees and easing regulations to diversify funding sources for the specialized credit finance industry. #ChungWanKyu #CreditFinanceAssociation #KoreaFinance #PublicService #KoreaUniversity #FinancialPolicy #FIU #KoreaSecuritiesFinance #TossBank #FinancialRegulation
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Chairman of The Credit Finance Association
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CEO of Samsung SDS
Hwang Sung-woo
- Hwang Sung-woo is the President and CEO of Samsung SDS. He is working to enhance Samsung SDS's competitiveness in new businesses such as cloud computing and digital logistics. He was born on August 25, 1962. He graduated from Seoul National University with a degree in Electronic Engineering, obtained a Master's degree in Electronic Engineering from Seoul National University's Graduate School, and a Ph.D. in Electrical Engineering from Princeton University in the United States. He worked as a researcher at NEC Fundamental Research Laboratories in Japan before moving to Korea University as a professor in the School of Electrical Engineering, where he served as the director of the Creative Research Initiative for Time-Domain Nano Functional Devices. He joined Samsung Electronics' Advanced Institute of Technology, working through Frontier Research Lab, Nanoelectronics Lab, and Device Lab. As Deputy Director of the Advanced Institute of Technology, he also served as the head of the Device & System Research Center and the Fine Dust Research Center. He was promoted to President of the Advanced Institute of Technology in 2020 and appointed President and CEO of Samsung SDS in 2021. He is one of the leading technology experts in the Samsung Group. It is rare for an external recruit from academia to rise to the position of President and CEO. #HwangSungwoo #SamsungSDS #technologyexpert #cloudcomputing #digitallogistics #SeoulNationalUniversity #PrincetonUniversity #NEC #KoreaUniversity #SamsungElectronics
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CEO of Samsung SDS
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CEO & President of Inha University Medical Center
Lee Tack
- Lee Tack is the Director of Inha University Medical Center. He also serves as the Director of Inha University Hospital and Vice President for Medical Affairs at Inha University. His specialty is urology. Born in 1965, he graduated from Yonsei University College of Medicine. He obtained a master's degree in urology and a doctorate in medical science from the Graduate School of Yonsei University. He served as a visiting researcher in the Department of Clinical Pharmacology at Lund University in Sweden. At Inha University Hospital, he held positions such as Director of the Translational Research Center, Director of the Robotic Surgery Center, Director of Planning and Coordination, and Director of the Regional Public Health Policy Office before being appointed Director of the Medical Center and Hospital in 2022. He is expanding the ICU beds and enhancing smart medical services. Considering the increasing population in Gimpo, he is promoting the establishment of Gimpo Inha University Hospital. #LeeTack #InhaUniversityMedicalCenter #InhaUniversityHospital #urology #YonseiUniversity #LundUniversity #smartmedicalservices #ICUexpansion #GimpoHospital #medicaldirector
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CEO & President of Inha University Medical Center
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Vice Chairman of Lotte E&C
Park Hyun-chul
- Park Hyun-chul is the Vice Chairman and CEO of Lotte Engineering & Construction. He was brought in as a relief pitcher for Lotte Engineering & Construction, which faced a liquidity crisis due to the real estate market downturn. With high interest rates, rising construction material costs, and a prolonged economic downturn, he is focusing on improving the profitability of the housing business and diversifying the revenue structure through new business initiatives. He was born on October 16, 1960, in Gyeongju, Gyeongsangbuk-do. He graduated from Yeongnam High School in Daegu and majored in Statistics at Kyungpook National University. He joined Lotte Engineering & Construction and worked through the Lotte Group Management Headquarters and Lotte Policy Headquarters before serving as the Head of Business Division at Lotte Corporation. As CEO of Lotte Corporation, he led the completion of the Lotte World Tower, a long-cherished project of the Lotte Group. He moved to Lotte Holdings, where he served as the Head of the Management Improvement Office. In 2022, he succeeded CEO Ha Suk-joo and was appointed CEO of Lotte Engineering & Construction, later being promoted to Vice Chairman. He spent about half of his career at the group's control tower, the Lotte Policy Headquarters, and Lotte Holdings. He is known for valuing on-site work and has been recognized for his meticulous style and crisis management skills. #ParkHyunChul #LotteConstruction #realestate #economiccrisis #highinterest #constructionmaterials #diversification #management #crisismanagement #LotteWorldTower
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Vice Chairman of Lotte E&C
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CEO of Samsung SDI
Choi Yoon-ho
- Choi Yoon-ho is the President and CEO of Samsung SDI. He is a financial expert from the Samsung Electronics Future Strategy Office and has been focusing on solidifying the company's internal structure while promoting large-scale investments in Samsung SDI's battery business for 'qualitative growth with profitability as a priority.' He is also interested in research and development, such as establishing a global R&D research center and developing all-solid-state batteries. He was born on January 11, 1963 (lunar calendar). He graduated from Deoksu Information Industry High School in Seoul and the Department of Business Administration at Sungkyunkwan University. He joined Samsung Electronics and mainly worked in finance-related departments such as the International Accounting Group, Management Control Group, and Overseas Management Group. He was in charge of Strategy Team 1 in the Future Strategy Office of Samsung Group. After being promoted to President and Head of Business Support at Samsung Electronics, he was registered as an inside director. He is known for his extensive experience in finance and strategy and for his impeccable work. #ChoiYoonHo #SamsungSDI #batterybusiness #financeexpert #strategist #SamsungElectronics #globalR&D #solidstatebatteries #corporateleadership #qualitativegrowth
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CEO of Samsung SDI
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CEO of Welcome Savings Bank
Kim Dae-woong
- Kim Dae-woong is the Vice Chairman and CEO of Welcome Savings Bank. He completed his first term as CEO in 2023 and was reappointed. He was born on December 16, 1965, in Gwangju Metropolitan City. After graduating from Jeonnam High School and the Department of Economics at Seoul National University, he began his career at Hanil Lease Finance. He moved from KD Partners and Golden Bridge to Welcome Financial Group. While serving as the Head of Future Strategy Division at Welcome Credit Line Lending, he laid the foundation for the establishment of Welcome Savings Bank by acquiring Yesin Savings Bank and Haesol Savings Bank. When Welcome Savings Bank was launched, he served as the Executive Director (Managing Director). He was appointed as the successor CEO when Son Jong-joo, the founder of Welcome Savings Bank, stepped down as CEO and became the Chairman of Welcome Group. He emphasizes the importance of "challenge" to his employees. #WelcomeSavingsBank #KimDaeWoong #KoreanFinance #FinancialLeadership #BankingIndustry #CorporateStrategy #WelcomeFinancialGroup #BankingCEO #BusinessLeadership #KoreanEconomy
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CEO of Welcome Savings Bank
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Vice Chairman of Kumho E&C
Park Se-chang
- Park Se-chang is the President of the Management Division at Kumho Construction. Together with CEO and President Seo Jae-hwan, he is responsible for the management of Kumho Construction. He was born in Seoul on July 16, 1975. He graduated from Whimoon High School and Yonsei University with a degree in Biology, and earned an MBA from the Massachusetts Institute of Technology (MIT) Sloan School of Management. He joined Asiana Airlines in 2002, and went on to serve as Executive Director of the Strategic Management Division at Kumho Asiana Group, Vice President of Kumho Tire, and CEO of Asiana IDT, before becoming President of Kumho Construction in 2021. He is the third-generation owner of the Kumho Asiana Group, with his grandfather being the founder Chairman Park In-chon and his father being former Chairman Park Sam-koo. He is focused on achieving results through Kumho Construction to rebuild the group, which has effectively been disbanded. He is known for being humble, polite, and having good crisis management skills. #ParkSechang #KumhoConstruction #management #KumhoAsianaGroup #businessleader #MIT #AsianaAirlines #KumhoTire #AsianaIDT #corporatereconstruction
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Vice Chairman of Kumho E&C
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Vice Chariman of Kolon
Lee Kyu-ho
- Lee Kyu-ho is the Vice Chairman and CEO of Kolon Strategy Division. In 2023, he focused on establishing and discovering future growth strategies and enhancing financial capabilities for Kolon Mobility Group, which was launched in the same year. In November 2023, he moved to Kolon Holdings. As the successor to the group's management rights, he is striving to prove his management capabilities. He is the great-grandson of Kolon Group founder Lee Won-man and the eldest son of Kolon Group Honorary Chairman Lee Woong-yeul. He was born in the United States in August 1984. After completing high school in the United Kingdom, he graduated from Cornell University in the United States with a degree in hotel management. He joined Kolon Industries as a deputy manager and later moved to Kolon Global before returning to Kolon Industries. He was promoted to executive director of Kolon Holdings and appointed as the first CEO of subsidiary Liveto. In 2020, he took charge of the imported car division as Vice President of Kolon Global, and in 2022, he was promoted to President and appointed CEO of Kolon Mobility Group, which was established by integrating the imported car division. Kolon Group follows the principle of primogeniture, making it highly likely that he will inherit the group's management rights. He is known for his unpretentious demeanor, mingling comfortably with employees. #Kolon #LeeKyuho #business #CEO #management #automotive #strategy #inheritance #leadership #corporate
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Vice Chariman of Kolon
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Chairman of Paradise Group
Chun Phil-Lip
- Chun Phil-Lip is the chairman of Paradise Group. He dreams of creating a 'resort kingdom' beyond just a casino company. With the resumption of international travel following the COVID-19 endemic, he is focusing on recovering Chinese VIP customers. He was born on November 10, 1961, as the eldest son of Chun Rak-Won, the founder of Paradise Group. He dropped out of Chung-Ang University's Business Administration program and graduated from Berklee College of Music in Boston, USA. After a car accident, he began his management career as an executive director of Paradise Investment & Development. He rose through the ranks to become the president and CEO of Paradise and later the chairman of Paradise Group. He is a devout churchgoer. During his time at Chung-Ang University, he played drums in a band and participated in the production of albums for popular singers. He is actively involved in supporting the cultural and arts sector. #ChunPhilLip #ParadiseGroup #ResortKingdom #CasinoIndustry #ChineseVIP #InternationalTravel #BerkleeCollege #CulturalSupport #BusinessLeadership #KoreanBusinessLeader
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Chairman of Paradise Group
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President of Chung-Ang University Medical Center
Hong Chang-kwun
- Hong Chang-kwun is the director of Chung-Ang University Medical Center. He is a dermatologist specializing in hair loss, skin allergies, and cosmetic skin surgery. Born on May 11, 1953, in Gunsan, Jeollabuk-do. His hometown is Namyang. He graduated from Daegwang High School and Chung-Ang University Medical School and earned a master's degree and a doctoral degree in medicine from Chung-Ang University Graduate School. As a graduate of the first class of Chung-Ang University Medical School, he was appointed as a professor in the dermatology department at Chung-Ang University Medical School in 1987. He served as the director of Chung-Ang University Medical Center from 1999 to 2005, then returned to the medical director position after 15 years. He has served as chairman of the Korean Society of Aesthetic Dermatologic Surgery, president of the Korean Society of Skin Allergy, president of the Korean Society of Aesthetic Dermatologic Surgery, and president of the Korean Skin Cancer Society, and currently serves as vice president of the Korean Hospital Association. He is a regular member of the Korean Academy of Medical Sciences. He served as the medical director of the dermatology department at H Plus Yangji Hospital. He is focused on expanding medical income, which has decreased since the coronavirus pandemic, and stabilizing the operation of Chung-Ang University Gwangmyeong Hospital. #HongChangkwun #ChungAngUniversityMedicalCenter #dermatology #hairloss #skinalergies #cosmeticskinsurgery #KoreanMedicalSocieties #ChungAngUniversity #medicalincome #GwangmyeongHospital
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President of Chung-Ang University Medical Center
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CEO of SK hynix
Kwak Noh-jung
- Kwak Noh-jung is the CEO of SK hynix. Together with Vice Chairman Park Jung-ho, he forms a co-CEO system. He is dedicated to enhancing SK hynix's semiconductor production yield and strengthening technological capabilities. He also focuses on strengthening safety management and improving corporate culture. He was born on November 6, 1965. He graduated from Korea University with a degree in Materials Engineering and obtained both his master's and doctoral degrees in Materials Engineering from the Korea University Graduate School. He joined Hyundai Electronics, the predecessor of SK hynix, and has worked solely at SK hynix for 29 years, making him a true "Hynix man." He has served as a development researcher in the Process Technology Office, Vice President in charge of Manufacturing and Technology, and President of Safety, Development, and Manufacturing. In 2022, after SK hynix CEO Lee Seok-hee stepped down from his position to become the Chairman of the Board of Directors at Solidigm, a U.S. subsidiary, Kwak Noh-jung was appointed as the successor CEO. He is considered a leading semiconductor technology expert at SK hynix. He is active in communicating with employees. #SKHynix #KwakNohjung #semiconductors #technology #CEO #leadership #corporateculture #safetymanagement #KoreaUniversity #Solidigm
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CEO of SK hynix
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CEO of HD Hyundai Electric
Cho Seok
- Cho Seok is the CEO and President of HD Hyundai Electric. By emphasizing a profitability-oriented bidding strategy, he turned HD Hyundai Electric, which had been suffering losses for two years, into a profitable company. He is working to transform HD Hyundai Electric, which used to produce general electrical equipment, into a 'comprehensive energy solution company' by expanding its business areas to eco-friendly electrical equipment and energy solutions (energy management). He was born on September 27, 1957 (lunar calendar) in Iksan, Jeollabuk-do. He graduated from Jeonju High School and Seoul National University with a degree in Diplomacy. He earned a master's degree in Economics from the University of Missouri and a doctorate in Economics from Kyung Hee University. He entered public service through the 25th Administrative Examination and served in the Ministry of Commerce and Industry, the Ministry of Trade and Industry, the Presidential Office, the Ministry of Commerce, Industry and Energy, and the Ministry of Knowledge Economy. He served as the Director of the Growth Engine Office of the Ministry of Knowledge Economy, the Chairman of the Korea Industrial Complex Corporation, and ended his public service career as the 2nd Vice Minister of the Ministry of Knowledge Economy. He served as the President of Korea Hydro & Nuclear Power and the Chairman of the Korea Nuclear Industry Association. When he was appointed CEO of Hyundai Electric (now HD Hyundai Electric), he became the first external CEO in the history of the Hyundai Heavy Industries Group (now HD Hyundai Group). He values communication and unity among employees and demonstrates bold and strong leadership. His hobbies are reading and walking, and he is a Catholic. #ChoSeok #HDHyundaiElectric #CEO #businessleadership #energytransition #publicservicecareer #economicexpertise #corporateturnaround #communication #leadership
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CEO of HD Hyundai Electric
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Director of Ajou University Hospital
Han Sang-uk
- Han Sang-uk is the director of Ajou University Medical Center. Born in 1963, he graduated from Seoul National University College of Medicine. He earned his master's and doctorate degrees in medicine from Seoul National University Graduate School and trained at the National Cancer Institute in the United States. In 1997, he was appointed as a professor of gastrointestinal surgery in the Department of Surgery at Ajou University School of Medicine. He has held various positions at Ajou University Medical Center, including the First Vice President of Clinical Affairs, Head of the Gastric Cancer Center, Director of Planning and Coordination, and Director of Ajou University Hospital. Since September 2023, he has served as the Director of the Medical Center and Vice President of Medical Affairs at Ajou University. Han has been active in several professional societies, including serving as the President of the Korean Society of Endoscopic and Laparoscopic Surgeons, the President of the Korean Laparoscopic Gastrointestinal Surgery Study (KLASS), the inaugural President of the Korean Society for Anti-Reflux Surgery, Vice President of the Korean Society of Robotic Surgery, and Chairman of the Korean Gastric Cancer Association. As of 2023, he is the Vice President of the Korean Society of Gastrointestinal Surgery. His main clinical fields include gastric cancer, gastroesophageal reflux disease, and severe obesity, and he is a pioneer in laparoscopic gastric cancer surgery. He has also been actively involved in clinical research. While he successfully raised the profile of the hospital as a regional trauma center, conflicts arose between hospital management and frontline medical staff. The hospital's image was tarnished when it was discovered that general patients were being operated on at the regional trauma center. #AjouUniversityMedicalCenter #HanSanguk #gastriccancer #laparoscopicsurgery #medicalleadership #SeoulNationalUniversity #Koreansurgeon #medicalresearch #traumacenter #hospitalmanagement
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Director of Ajou University Hospital
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Chairman of the Korea Fair Trade Commission
Han Ki-jeong
- Han Ki-jeong is the Chairman of the Korea Fair Trade Commission. Aligning with the Yoon Suk-yeol administration's principles of market autonomy and regulatory easing, he is focused on redefining the role of the KFTC as a regulatory body. Born on February 10, 1964, in Seoul. He graduated from Yangjeong High School and the Department of Public Law at Seoul National University. He received a Master's degree in Public Administration from the Graduate School of Public Administration at Seoul National University and a Ph.D. in Law from the University of Cambridge in the United Kingdom. He served as the Dean of the School of Law at Seoul National University after teaching at Hallym University and Ewha Womans University. He also served as the President of the Law Schools Association. He has held various roles, including Financial Dispute Mediation Expert at the Financial Supervisory Service, Member of the Financial Development Council at the Financial Services Commission, President of the Korea Insurance Research Institute, Chairman of the Inspection Committee at the Ministry of Justice, and Member of the Supreme Court's Judicial Administration Advisory Committee. As a legal scholar who follows the principles of market economy, he has been active in various government agencies and committees in the financial sector and is recognized as an economic expert. As the first Chairman of the KFTC from a legal scholar background, he is focused on preventing arbitrary decisions by the KFTC as a regulatory body and enhancing the predictability and consistency of law enforcement. #HanKiJeong #KFTC #YoonSukYeol #marketautonomy #regulatoryeasing #KoreaFairTradeCommission #lawscholar #financialexpert #legalenforcement #economicexpert
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Chairman of the Korea Fair Trade Commission
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Co-CEO of Kumho Mitsui Chemicals
Park Chan-koo
- Park Chan-koo serves as the co-CEO of Kumho Mitsui Chemicals and he is the honorary Chairman of Kumho Petrochemical Group and . He separated Kumho Petrochemical from the Kumho Asiana Group and, after a prolonged legal battle with his elder brother, Park Sam-koo, the former Chairman of Kumho Asiana Group, they reached a reconciliation. Park is known for his 'one-track' strategy, focusing on developing and producing high-value-added chemical products. He was born on August 13, 1948, in Gwangju, as the fourth son of Park In-cheon, the founder of Kumho Asiana Group. He graduated from Gwangju Jeil High School and the University of Iowa with a degree in Statistics. He started his career at Korea Synthetic Rubber (now Kumho Petrochemical) and then worked at Kumho Industries and Kumho Construction. After serving as Vice Chairman and CEO of Kumho Petrochemical, he became the Chairman of the Chemical Division of Kumho Asiana Group before being appointed Chairman of Kumho Petrochemical. Kumho Petrochemical was spun off from Kumho Asiana Group, achieving independence. In 2021, he stepped down as CEO of Kumho Petrochemical and retired as Honorary Chairman of the group in 2023, but returned to the management frontlines as co-CEO of Kumho Mitsui Chemicals just five months later. True to his background in Statistics, he is meticulous and places high importance on communication with employees. #ParkChanKoo #KumhoPetrochemical #KumhoMitsuiChemicals #OneTrackStrategy #ChemicalIndustry #BusinessLeadership #StatisticsBackground #EmployeeCommunication
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Co-CEO of Kumho Mitsui Chemicals
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CEO and Vice Chairman of Mirae Asset Life Insurance
Kim Jae-Sik
- Kim Jae-sik is the Vice Chairman and CEO of Mirae Asset Life Insurance. He employs a two-track strategy, expanding the sales of guarantee insurance and strengthening the competitiveness of variable insurance. Born on February 20, 1967 (lunar calendar) in Okgu, Jeollabuk-do. He graduated from Unho High School in Cheongju and majored in Business Administration at Sogang University. He also earned a Master’s degree in Financial Management from Sogang University Graduate School of Business. He worked at Dongyang Fire & Marine Insurance, Hannam Investment Trust, and Joongang Comprehensive Finance. He then served as Head of Asset Management, Head of Risk Management, and Head of Equity Derivatives Center at Mirae Asset Securities. After moving to Mirae Asset Life Insurance, he served as Vice President of Value Management and CEO. After PCA Life Insurance was integrated into Mirae Asset Life Insurance, he was appointed co-CEO with Vice Chairman Ha Man-deok. He returned to Mirae Asset Daewoo (now Mirae Asset Securities) as President of the Innovation Promotion Team and President of PI Division. Later, he became President in charge of management at Mirae Asset Life Insurance and was appointed co-CEO with Byun Jae-sang, the President of Sales, in 2022. He was promoted to Vice Chairman in 2023 and became the sole CEO. He demonstrates quiet but practical leadership. #KimJaeSik #MiraeAssetLifeInsurance #InsuranceStrategy #Leadership #KoreanBusiness #FinancialManagement #VariableInsurance #Innovation #MiraeAssetSecurities #BusinessLeadership
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CEO and Vice Chairman of Mirae Asset Life Insurance
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President of KAIST
Lee Kwang-hyung
- Lee Kwang-hyung is the president of KAIST. He was born on November 15, 1954, in Jeongeup, Jeollabuk-do. He graduated from the Department of Industrial Engineering at Seoul National University and obtained his master's degree from KAIST and his Ph.D. from the National Institute of Applied Sciences in Lyon, France. In 1985, he was appointed as a professor in the Department of Computer Science at KAIST. He has also served as a visiting professor at Stanford University in the United States and the University of Tokyo in Japan. At KAIST, he has held various positions including Director of International Cooperation, Director of Academic Affairs, Director of the Center for Gifted Education in Science, and Vice President of Academic Affairs before being appointed as the President. He is a full member of both the Korean Academy of Science and Technology and the National Academy of Engineering of Korea. He has served as the chairman of the Dispute Mediation Committee of the Presidential Intellectual Property Committee, the chairman of the Policy Coordination Expert Committee of the National Science and Technology Council, and the chairman of the Future Preparation Committee of the Ministry of Science, ICT, and Future Planning. He is currently the chairman of the Mid- to Long-Term Strategy Committee of the Ministry of Economy and Finance and the chairman of the Policy Committee of the Ministry of Justice. He is known as the godfather of KAIST ventures for producing the first generation of venture entrepreneurs. #KAIST #LeeKwangHyung #SeoulNationalUniversity #NationalInstituteOfAppliedSciences #KAISTPresident #KoreanAcademyOfScienceAndTechnology #NationalAcademyOfEngineeringOfKorea #StanfordUniversity #UniversityOfTokyo #VentureEntrepreneurs
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President of KAIST
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CEO and Chairman of Ottogi
Ham Young-joon
- Ham Young-joon is the Chairman and CEO of Ottogi. He is focusing on increasing the market share of instant noodles in the domestic market and expanding the ready-to-eat meal business. He is also interested in expanding overseas sales. He was born on March 2, 1959, in Seoul, as the eldest son of Ham Tae-ho, the Honorary Chairman of Ottogi. After graduating from Osan High School and the Business Administration Department of Hanyang University, he received a Master of Business Administration degree from the University of Southern California. He joined Ottogi, rose through the ranks to become president, and eventually became chairman. While diversifying Ottogi's business with tea and health foods, his main focus remained on instant noodles. He is working to close the gap with Nongshim in the domestic instant noodle market. He earned nicknames like 'Model Student' and 'Righteous CEO.' The company has gained a reputation as a 'Good Company' due to its minimal use of temporary workers. However, he faced difficulties when issues of internal dealings surfaced. #Ottogi #HamYoungjoon #instantnoodles #readytoeatmeals #businessleader #SouthKorea #Nongshim #goodcompany #CEO #businessdiversification
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CEO and Chairman of Ottogi
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CEO & President of BC Card
Choi Won-seok
- Choi Won-seok is the CEO of BC Card. He is actively diversifying BC Card’s revenue structure, which has been heavily dependent on card payments, by advancing data-driven businesses and expanding into overseas markets. He also shows strong interest in pioneering new business sectors. Born on May 29, 1963, in Damyang, Jeollanam-do, Choi graduated from Hanseong High School and earned a degree in International Economics from Seoul National University. He further obtained a Master’s degree in Economics from Sogang University and completed a master’s program at New York University’s Stern School of Business. Choi built his career at Korea Long Term Credit Bank, Samsung Securities, and FnGuide, where he served as CFO and Director of the Financial Research Institute. He was later appointed CEO of FnRatings before becoming the CEO of BC Card. Known for his expertise in the integration of finance and data, Choi introduced the industry’s first financial information business model using data. He values communication with employees and promotes a horizontal organizational culture, using the nickname "Wonstein" to foster open dialogue. #BCCard #ChoiWonSeok #RevenueDiversification #DataBusiness #GlobalExpansion #DigitalInnovation #FinancialLeadership #HorizontalCulture #Wonstein #NewBusinessFrontier .
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CEO & President of BC Card
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Chairman of CS Wind
Kim Sung-Kwon
- Kim Sung-Kwon is the CEO and Chairman of CS Wind. Along with CEO Kim Seung-Bum, he leads CS Wind. Starting from scratch, he has grown CS Wind into the world's number one company in the wind turbine tower manufacturing sector. He is focusing on expanding production capacity in line with the global trend of renewable energy industry expansion. Born on January 26, 1954, in Sanoe-myeon, Jeon-eup, Jeollabuk-do, he graduated from Jeonju Shinhung High School and Chung-Ang University with a degree in Trade. In 1979, he joined Kukdong Construction and worked at a construction site in Saudi Arabia. He then moved to the American steel company BMTC WICKE, where he worked as a material specialist. In 1989, he founded Joongsan Precision (now CS Wind), a steel structure manufacturing company. Anticipating that renewable energy would become the industry of the future due to the surge in international oil prices and environmental issues, he boldly renamed Joongsan Precision to CS Wind and made wind turbine towers its main product. He demonstrates an aggressive management style. He emphasizes 'innovation, perseverance, and prudence' to his employees. #KimSungKwon #CSWind #renewableenergy #windturbine #businessleader #innovation #managementstyle #renewableindustry #windenergy #globalleader
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Chairman of CS Wind
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President of Sookmyung Women's University
Chang Yun-keum
- Chang Yun-keum is the President of Sookmyung Women's University. She is the first president elected through a direct election by professors, staff, students, and alumni. She was born in 1961. She graduated from the Department of Library and Information Science at Sookmyung Women's University. She earned a master's degree in Library and Information Science from Indiana University Bloomington, and a Ph.D. in Library and Information Science from the University of Wisconsin-Madison. In 2004, she was appointed as a professor in the Department of Library and Information Science at Sookmyung Women's University. She served as the President of the Seoul Presidents Forum and the Korean Association of Women Presidents. Since 2022, she has been the President of the Korean Council of Private University Presidents. She is promoting university innovation through digital convergence, startup incubators, and ESG. She values empathy and emotional bonds. She is known for her boldness, strong sense of responsibility, and drive in handling tasks. #ChangYunKeum #SookmyungWomensUniversity #FirstDirectlyElectedPresident #LibraryAndInformationScience #IndianaUniversity #UniversityOfWisconsinMadison #SeoulPresidentsForum #KoreanAssociationOfWomenPresidents #KoreanCouncilOfPrivateUniversityPresidents #UniversityInnovation #DigitalConvergence #StartupIncubators #ESG #Empathy #Leadership #Boldness #Responsibility
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President of Sookmyung Women's University
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CEO and Vice Chairman of LS
Myung Noe-hyun
- Myung Noe-hyun is the Vice Chairman and CEO of LS. He leads the overall management of the group alongside Koo Ja-eun, Chairman of LS Group, who is a member of the owning family. He was born on July 30, 1961, in Incheon. He graduated from Inha University with a degree in Trade and obtained a master's degree in International Business from Yonsei University Graduate School. He began his career at LS Cable & System in 1987 and has worked there for 35 years. He established himself as a 'financial expert' at LS Cable & System, serving as Executive Director of Finance, CFO Vice President, and CEO of Management. Following LS Group's tradition of cousin management, he was appointed as the CEO of LS and promoted to Vice Chairman when Koo Ja-eun's regime commenced. He is known for his strong business drive. #MyungNoehyun #LS #LSElectrics #businessleader #KooJaeun #financeexpert #InhaUniversity #YonseiUniversity #corporatemanagement #leadership
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CEO and Vice Chairman of LS
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Vice Chairman of Daesang Holdings and Daesang
Lim Se-ryung
- Lim Se-ryung is the Vice Chairman of Daesang Holdings and Daesang. She is focusing on strengthening the global expansion of Daesang Group's food business and expanding the home meal replacement (HMR) business. She was born on August 13, 1977, as the eldest daughter of Im Chang-wook, Honorary Chairman of Daesang Group, and Park Hyun-joo, Vice Chairman of Daesang Holdings. She graduated from Seomun Girls' High School and studied Business Administration at Yonsei University before graduating from New York University with a degree in Psychology. During her university years, she married Lee Jae-yong, the third-generation owner of Samsung Group and Chairman of Samsung Electronics. After 10 years and 8 months of marriage, she divorced and joined Daesang Group to participate in management. She served as the CEO of Daesang HS, Creative Director in charge of food business strategy at Daesang, Executive Director in charge of marketing at Daesang Food BU, and eventually became the Vice Chairman in charge of marketing at Daesang and Vice Chairman in charge of strategy at Daesang Holdings. She is known for being friendly with employees. There is also talk that she is more interested in personal business than in group management. She avoids public activities and shuns contact with the media. #LimSeRyoung #Daesang #ViceChairman #FoodBusiness #HMR #GlobalExpansion #Samsung #LeeJaeyong #Management #BusinessWoman
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Vice Chairman of Daesang Holdings and Daesang
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CEO and President of Korea Investment & Securities
Il-Mun Jung
- Jung Il-mun is the CEO and President of Korea Investment & Securities Co., Ltd. He is striving to recover the sharply decreased performance due to the stock market slump and increased volatility and to regain the top position in net profit. He was born on November 26, 1964, in Gwangju, Jeollanam-do. He graduated from Gwangju Jinheung High School and Dankook University with a degree in Business Administration. He began his career at Hanshin Securities, the predecessor of Dongwon Securities. Even after Dongwon Securities was acquired by Korea Investment & Securities, he did not change companies and worked in the Investment Banking (IB) division for over 30 years. He is known as an expert in initial public offerings (IPOs), having handled the IPOs of Samsung Card and Samsung Life Insurance, which are considered landmark deals. He is reputed for his outstanding job performance and strong drive, having been promoted directly to an executive position without passing through the position of department head. #JungIlmun #KoreaInvestment #stockmarket #securities #CEO #investmentbanking #SamsungIPO #career #businessadministration #finance
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CEO and President of Korea Investment & Securities
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Presidento of Ewha Womans University Medical Center
Ryu Kyung-ha
- Ryu Kyung-ha is the President of Ewha Medical Center and also serves as the Vice President for Medical Affairs at Ewha Womans University. She began her first term in 2020 and started her second term at Ewha Medical Center in 2022, the first time this has happened at the institution. She was born in 1960. She graduated from Ewha Womans University College of Medicine and obtained her master's and doctoral degrees in medicine from Ewha Womans University Graduate School. Since 1996, she has been a professor in the Department of Pediatrics at Ewha Womans University College of Medicine. Ryu Kyung-ha is an authority in the fields of pediatric oncology and hematologic oncology. She has served as a visiting professor at UCLA, vice president of the Korean Society of Blood and Marrow Transplantation, and chairman of the Korean Society of Pediatric Hematology and Oncology. At Ewha Medical Center, she has held positions such as Director of Planning and Coordination and Director of Ewha Mokdong Hospital. She is dedicated to creating a hospital that generates new value through the Ewha Advanced Convergence Healthcare Cluster. She is focused on improving the image of Ewha Mokdong Hospital and Ewha Medical Center, which were damaged by a mass neonatal death incident. #EwhaMedicalCenter #RyuKyungHa #EwhaWomansUniversity #pediatriconcology #hematologiconcology #UCLA #KoreanSocietyofBloodandMarrowTransplantation #KoreanSocietyofPediatricHematologyandOncology #EwhaAdvancedHealthcareCluster #hospitalmanagement
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Presidento of Ewha Womans University Medical Center
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CEO and President of Woori Card
Park Wan-sik
- Park Wan-sik is the CEO and President of Woori Card. He is focused on increasing membership and securing merchants based on Woori Card's own payment network to improve performance. He has a keen interest in social contribution activities. He was born on February 28, 1964. He graduated from Dongguk University High School attached to the College of Education and from the Trade Department of Kookmin University. He is a sales expert who has served as Head of Personal Group, Deputy Head of Sales Division, and Executive Vice President of Personal and Institutional Group at Woori Bank. At Woori Bank, he served as Managing Director of the Digital Finance Group, demonstrating a high level of understanding of the digital sector. #WooriCard #ParkWanSik #CEOPresident #membershipincrease #merchantacquisition #socialcontribution #financialexpert #digitalfinance #KookminUniversity #DonggukUniversity
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CEO and President of Woori Card
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CEO of Naver Financial
Park Sang-jin
- Park Sang-jin is the CEO of Naver Financial. He is responsible for Naver's financial business. Park Sang-jin is dedicated to growing Naver Financial into a comprehensive financial platform that connects all aspects of customers' daily lives through integration with Naver Shopping. Born in 1972, he graduated from Yonsei University with a degree in Applied Statistics and earned a master's degree from Korea University's Business School. He began his career at Samsung SDS. He then moved to Naver, where he served as Head of Business Planning, Head of Financial Planning, and Director of Financial Planning. He is known for his expertise in both finance and logistics. To expand Naver Financial's overseas payment options, he is collaborating with Alipay to prepare for entry into the Japanese market. #ParkSangjin #NaverFinancial #Naver #CEO #FinancialBusiness #ComprehensiveFinancialPlatform #YonseiUniversity #KoreaUniversity #SamsungSDS #Alipay #JapaneseMarket
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CEO of Naver Financial
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CEO of Seegene Inc.
Chun Jong-yoon
- Chun Jong-yoon is the CEO of Seegene. He is seeking new drivers to continue Seegene's growth following the transition of COVID-19 to an endemic phase. Born on July 6, 1957, in Yongseong-myeon, Gyeongsan, Gyeongbuk, he was the third child among three sons and two daughters. He graduated from Konkuk University with a degree in agriculture and received his Ph.D. in molecular biology from the University of Tennessee. He completed his postdoctoral research at Harvard University and UC Berkeley and worked as a full-time researcher at the Kumho Life Sciences Research Institute. He served as a professor in the Department of Life Sciences at Gwangju Institute of Science and Technology and in the Department of Biological Sciences at Ewha Womans University. In 2000, while a professor at Ewha Womans University, he founded Seegene, encouraged by his uncle Chun Kyung-joon, former Vice President of Technology at Samsung Electronics and chairman of Seegene. After resigning from his professorship in 2001, he devoted himself to managing Seegene. By developing timely COVID-19 diagnostic products, he grew the company into a KRW 1 trillion (US$ 720 million) enterprise.
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CEO of Seegene Inc.
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CEO and President of Korea University Medicine
Yoon Eul-sik
- Yoon Eul-sik is the President of Korea University Medicine. He also serves as the Vice President for Medical Affairs at Korea University. As the head of Korea University Medicine, he oversees the operation of its five medical campuses. He is dedicated to presenting a blueprint for the future of medicine in South Korea and focuses on training physician-scientists. Born in 1964. He graduated from Korea University College of Medicine, earned a master's degree in medicine from Dongguk University Graduate School, and a doctorate in medicine from Korea University Graduate School. As a plastic surgeon specializing in breast reconstruction, lymphedema, and fat surgery, he was the first in the country to introduce robotic breast reconstruction surgery. He has served as the Chairman of the Korean Society of Plastic and Reconstructive Surgeons, the President of the Korean Society of Breast Plastic Surgery, the President of the Korean Association of Private University Hospitals, the Vice President of the Korean Hospital Association, and the President of the Korean Association of Training Hospitals. After serving as a professor of plastic surgery at Korea University Ansan Hospital, he moved to Korea University Anam Hospital, where he served as the Vice Director of Clinical Affairs and Hospital Director. He is working to elevate Korea University College of Medicine, which is approaching its 100th anniversary, to a world-class medical brand. #KoreaUniversity #YoonEulsik #medicalcenter #plasticSurgery #roboticSurgery #medicaleducation #SouthKorea #futureofmedicine #physicianscientists #medicalleadership
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CEO and President of Korea University Medicine
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CEO & President of Busan Bank
Bang Seong-bin
- Bang Seong-bin is the president of BNK Busan Bank. He is striving to make Busan Bank a mid-sized bank with assets of KRW 100 trillion (US$ 72.1 billion) by 2025. He is also focused on achieving results in digital transformation and overseas business. Born on July 16, 1965, in Busan, he graduated from Busan Peniel High School and Dong-A University's Law Department. He joined Busan Bank and held positions such as Head of the Inspection Department, Head of the Compliance Department, Head of the Management Planning Division, and Vice President of Busan Bank. After serving as Managing Director of BNK Financial Group, he left BNK Financial Group in 2022 and returned as the president of Busan Bank in 2023. He keeps in mind the saying, "A company that ignores change has no future." Believing that the beginning of change must start from the top, he strives to set an example himself. #BangSeongbin #BNKBusanBank #digitaltransformation #overseasbusiness #Busan #leadership #financialgoals #change #bankingindustry #careertrajectory
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CEO & President of Busan Bank
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Chairman of SPC Group
Heo Young-in
- Heo Young-in is the Chairman of SPC Group. He led the growth of Paris Baguette through meticulous site management systems and research and development for quality improvement. He is striving to expand overseas operations to elevate SPC Group into a 'Great Food Company.' He was born on May 17, 1949, in Hwanghae-do, as the second son of Heo Chang-seong, the Honorary Chairman of Samlip Food. Seven months after becoming the CEO of Samlip Food, he went to Kansas City in the United States to learn baking technology. After completing his studies abroad, he returned to take on the role of CEO of Shany. While his elder brother, Chairman Heo Young-seon, led Samlip Food into business difficulties due to investments in the resort business, he grew Paris Baguette, Baskin-Robbins, and Dunkin' Donuts into leading domestic franchises. When Samlip Food went into court receivership due to bankruptcy, he acquired Samlip Food and established SPC Group by merging Samlip Food, Shany, Paris Croissant, and BR Korea. He expanded global operations by opening Paris Baguette stores in China and the United States, the first in the domestic baking industry. He is pushing to expand into a comprehensive food company by entering the fresh food business through international food and beverage franchises such as Jamba Juice, Pascucci, Shake Shack, and Eggslut. He is known for his meticulous nature, emphasizing fieldwork and quality management.
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Chairman of SPC Group
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SUPEX Council Head of the social value committee
Jee Dong-seob
- Jee Dong-seob is the President and CEO of SK On. He is focused on improving the profitability and securing the competitiveness of SK On. He emphasizes enhancing the mid-to-long-term competitiveness through improving battery yield and diversifying the product portfolio, while also paying close attention to strengthening battery safety. He was born on July 7, 1963, in Icheon, Gyeonggi Province. He graduated from Gyeongnam High School in Busan and the Department of Physics at Seoul National University. He also earned a master's degree in economics from the Graduate School of Seoul National University. He began his career at Yukong, the predecessor of SK Innovation. He has held various positions including Director at SK Telecom, Director at SK, Secretary General of the SK SUPEX Council, and CEO of SK Lubricants. After serving as the Head of the Battery Business at SK Innovation, he was appointed as the President and CEO of SK On. Since becoming the CEO of SK Lubricants, he has established continuous cooperative relationships with global automobile companies. Through his roles as Head of Corporate Strategy at SK Telecom, Director of Marketing Strategy, and Director of the Mobile Network Operator (MNO) Planning Office, he has established himself as a leading strategic expert within the group. He is known for his rational personality, valuing dialogue and compromise. #JeeDongseob #SKOn #CEO #batterytechnology #corporatestrategy #SKInnovation #SeoulNationalUniversity #businessleadership #economics #automotiveindustry
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SUPEX Council Head of the social value committee
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CEO & Vice Chariman of Daelim
Bae Weon-bog
- Bae Weon-bok is the Vice Chairman and CEO of Daelim, which is the largest shareholder of DL, the holding company of DL Group. Since the establishment of the holding company system at DL Group, he has been focusing on enhancing eco-friendly new businesses and strengthening ESG (Environmental, Social, and Governance) management. He is interested in improving the group’s image and enhancing brand value through strengthening win-win management. He was born on November 30, 1961, in Seoul. He graduated from Gwanak High School and the Department of Mechanical Engineering at Sungkyunkwan University, and completed an MBA program at Lancaster University in the UK. He worked at LG Electronics for over 30 years, where he led the mobile phone business as the Head of the MC Product Planning Team, Director of the Design Management Center, and Marketing Group Head. He was recruited to Daelim Group as the CEO of Daelim Motorcycle, then became the Head of the Management Support Division at Daelim Industrial, and was subsequently appointed as CEO. After the transition to the holding company system at DL Group, he served as the CEO of the holding company DL before moving to become the CEO of Daelim. He is recognized as a marketing and product planning expert who led the heyday of LG Electronics' mobile phone business in the 2000s. #BaeWeonbok #Daelim #DLGroup #ESGManagement #BrandValue #MarketingExpert #ProductPlanning #LGElectronics #HoldingCompany
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CEO & Vice Chariman of Daelim
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CEO & President of KB Kookmin Card
Lee Chang-kwon
- Lee Chang-kwon is the President and CEO of KB Kookmin Card. He has set the goal of restoring KB Kookmin Card's position as the 'No. 1 card company' and is focusing on strengthening core business capabilities and growing new businesses. He was born on November 15, 1965. He graduated from Seoul Jungang High School and Korea University with a degree in Applied Statistics. While working in the Strategy Planning Department at KB Financial Group, he was responsible for the spinoff of KB Kookmin Card. After moving to KB Kookmin Card, he served as the Head of Strategy Planning, Head of Management Planning, Head of New Business, and Head of Lifestyle Services. He returned to KB Financial Group, where he served as the Head of Strategy Planning, Executive Vice President of Strategy Planning, and Vice President of Strategy. He led the acquisition of Prudential Life Insurance at KB Financial Group. He is focused on transforming KB Kookmin Card's mobile app, 'KB Pay,' into a comprehensive financial platform in response to the entry of big tech platforms into the financial industry. He is actively communicating with employees. #KBKookminCard #LeeChangKwon #CEO #FinancialIndustry #KBPay #PrudentialLifeInsurance #MobileApp #BigTech #BusinessStrategy #CorporateLeadership
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CEO & President of KB Kookmin Card
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Vice Chairman of Wemade
Chang Hyun-guk
- Chang Hyun-guk is the CEO of Wemade and Wemade Max (formerly Joymax). He is dedicated to the global launch of Wemade's flagship game Mir M and the successful market entry of the cryptocurrency WEMIX. Born on October 8, 1974. He graduated from Seoul National University with a degree in Business Administration and earned a master's degree in Management Engineering from KAIST's Graduate School of Technological Management. He first entered the gaming industry by joining Nexon at the invitation of its founder Kim Jung-ju. He moved to Neowiz and served as the CEO of Neowiz Mobile. After joining Wemade Entertainment (now Wemade) as the Head of Strategic Planning, he was appointed as the CEO of Wemade Entertainment. He is a prominent first-generation executive in the domestic gaming industry and an expert on China, having won consecutive lawsuits over Wemade's intellectual property (IP) infringements in China. Despite being a meticulous strategist, he is known for his generosity and kindness. #ChangHyunGuk #Wemade #MirM #WEMIX #cryptocurrency #gamingindustry #Chinaexpert #intellectualproperty #Neowiz #Nexon
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Vice Chairman of Wemade
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CEO & President of SK Bioscience Co Ltd.
Ahn Jae-yong
- Ahn Jae-yong is the CEO and President of SK Bioscience. As sales related to COVID-19 vaccines decline, he is focusing on securing new growth drivers. In preparation for the 'next pandemic,' he is exploring new fields such as messenger RNA (mRNA) vaccines and cell and gene therapy. He was born on November 14, 1967, in Seoul. He graduated from Yeouido High School in Seoul and studied economics at Yonsei University. He completed his Master of Business Administration (MBA) at the University of Chicago Booth School of Business. After working at Korea Export Insurance Corporation, he moved to SK Chemicals. At SK Chemicals, he served as the head of the strategy team and the head of strategic planning. He led the launch of the world's first quadrivalent cell-culture influenza vaccine, "SkyCellflu Quadrivalent," as the head of the vaccine business division. When the vaccine business division of SK Chemicals spun off to become SK Bioscience, he was appointed as CEO and was promoted to president. He emphasizes collaboration with overseas institutions for the growth of the vaccine business. He believes that for the company to grow, it is essential to create an environment where employees can work effectively. #SKBioscience #AhnJaeyong #COVID19 #vaccines #mRNA #geneTherapy #businessLeadership #pandemicPreparation #globalCollaboration #employeeWellbeing
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CEO & President of SK Bioscience Co Ltd.
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CEO of Hanwha Qcells
Lee Koo-yung
- Lee Koo-young is the CEO of Hanwha Solutions Q CELLS Division (Hanwha Q CELLS) and also serves as the Chairman of the Hanwha Solutions Board of Directors. Together with Kim Dong-kwan, Vice Chairman and CEO of Hanwha Solutions Strategic Division, and Nam Yi-hyun, CEO of Hanwha Solutions Chemical Division, he leads Hanwha Solutions under a co-CEO system. He focuses on investment and research and development to lead the future solar market. In particular, he is interested in the 'Solar Hub' project, an integrated solar production complex in Georgia, USA, with an investment of over KRW 3 trillion (approximately USD 2.16 billion). Born on April 7, 1964, in Seoul, he graduated from Daesin High School and Yonsei University with a degree in Political Science and International Relations. He joined Hanwha Group and worked in the overseas sales team of Hanwha Chemical and at the New York office before becoming the head of Hanwha Q CELLS (now Hanwha Solutions Q CELLS Division) in the United States. He served as the Chief Commercial Officer (CCO) at Hanwha Q CELLS and Hanwha SolarOne. He worked in Hanwha Group’s Business Planning Office and later served as the Head of Business Strategy at Hanwha Chemical. In 2019, he became the CEO of Hanwha Chemical and in 2020, the CEO of Hanwha Solutions Chemical Division. Having closely collaborated with Vice Chairman Kim Dong-kwan in the solar business, he is considered a key figure in Kim's succession process within the group. He is one of Kim Dong-kwan's key advisors, along with Kim Hee-chul, President of Hanwha Impact, and Ryu Doo-hyung, President of Hanwha Momentum Division. #Hanwha #HanwhaSolutions #SolarPower #Investment #LeeKooYoung #KimDongKwan #SolarHub #GeorgiaProject #RenewableEnergy #Leadership
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CEO of Hanwha Qcells
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CEO & Chairman of MBK Partners
Michael Byung-ju Kim
- Kim Byung-joo is the Chairman of MBK Partners. He leads MBK Partners, the largest private equity fund (PEF) in South Korea with assets exceeding $25.6 billion, and one of the major private equity funds in Northeast Asia. In the significantly changed market conditions following COVID-19, he is actively seeking new investment opportunities. He was born on October 8, 1963, in Jinhae, Gyeongsangnam-do. As a teenager, he went to the United States alone, where he majored in English Literature at Haverford College and completed an MBA at Harvard Business School. He met and married Park Kyung-ah, the fourth daughter of former Prime Minister Park Tae-joon, while she was studying at Parsons School of Design in the United States. He worked at Goldman Sachs' New York headquarters and Hong Kong branch before moving to Salomon Smith Barney, where he participated in the Korean government's issuance of $4 billion worth of foreign exchange stabilization bonds during the financial crisis. He joined The Carlyle Group and began to attract attention in the private equity market by leading the acquisition of Hanmi Bank. In 2005, he established the private equity firm MBK Partners and went independent. Starting with Daewoo Precision Industries, he participated in numerous acquisition bids and achieved significant results in major acquisition battles. He is known as the 'Midas Touch' in the M&A market. #MBKPartners #KimByungJoo #PrivateEquity #Investment #EconomiesOfScale #MidasTouch #Acquisition #Finance #Business #NortheastAsia
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CEO & Chairman of MBK Partners
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Chairman of LX Group
Koo Bon-joon
- Koo Bon-joon is the chairman of LX Group. He also serves as the CEO of LX Holdings, the holding company of LX Group. After separating from LG Group to form LX Group, he established it as a prominent conglomerate within two years. He is focused on developing new businesses, including the semiconductor business, which he had to leave midway during his tenure at LG Group. He was born on December 24, 1951, in Jinju, Gyeongsangnam-do, as the third son of Koo Ja-kyung, Honorary Chairman of LG Group. He graduated from Seoul National University with a degree in Computational Statistics and earned an MBA from the University of Chicago. He worked at AT&T Technologies in the United States, then held positions such as Manager at Goldstar Semiconductor, Executive Director at LG Chemical, Executive Director at LG Semiconductor, and CEO of LG Semiconductor. He served as the President and CEO of LG Philips LCD (now LG Display), was promoted to Vice Chairman, and then moved to serve as Vice Chairman and CEO of LG International Corp. When LG Electronics faced a crisis, he returned as a savior and served as Vice Chairman and CEO of LG Electronics for 4 years and 8 months. He then moved to lead the New Growth Business Promotion Team of LG Corp., where he was responsible for identifying the group's growth engines. He played a pivotal role in the management system of former LG Group Chairman Koo Bon-moo by enhancing the competitiveness and profitability of core businesses and overseeing overall business operations. He represented the group both internally and externally, managing group operations, strengthening new businesses, and presiding over performance reporting meetings on behalf of former LG Group Chairman Koo Bon-moo. When former LG Group Chairman Koo Bon-moo passed away and his son Koo Kwang-mo ascended as chairman, Koo Bon-joon retired as an advisor to LG. Following LG Group's tradition, he separated from LG Group in 2021, officially launching LX Group and becoming its chairman. He has a keen interest in the technology and products that form the foundation of manufacturing and is highly passionate about leading the market. He is known for his "direct" style, being unreserved in expressing his thoughts and pursuing what he wants to do. #LXGroup #KooBonJoon #Chairman #LGGroup #Semiconductor #NewBusiness #Leadership #BusinessGrowth #Manufacturing #MarketLeadership
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Chairman of LX Group
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CEO of Kakao
Hong Eun-taek
- Hong Eun-taek is the CEO of Kakao. He also serves as the chairman of the Kakao Impact Foundation. As the co-director of the 'Community Alignment Center (CAC)', which serves as the control tower of the Kakao Community (affiliates), he also oversees the ESG management of the Kakao Community. Born on December 10, 1963, he graduated from Chungkyung High School and the Department of Oriental History at Seoul National University. He worked as a reporter for Dong-A Ilbo, a producer for American radio station KBIA, and editorial director for Oh My News International before entering the IT industry when he joined NHN, the predecessor of Naver. In 2012, he joined Kakao as Vice President of Content Services and launched Kakao Page and Kakao Makers, a joint ordering platform. He was promoted to senior vice president after serving as Daum Kakao content team leader, social impact team leader, and Kakao chief operating officer. Since 2018, he has served as CEO of Kakao Commerce and has increased Kakao Commerce's transaction volume by more than four times. He was promoted to Chairman of the Kakao Impact Foundation and Vice Chairman of Kakao in 2022, and then appointed CEO in July of the same year. From October 2022, he has been leading Kakao as its sole CEO. He is working with Bae Jae-hyun, head of investment, to restructure Kakao's affiliates and reorganize their business structure. Although he is one of the oldest Kakao Group executives, he is an exercise fanatic who completed a triathlon and is also said to be a 'free spirit'. #HongEuntaek #Kakao #NHN #ESG #CAC
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CEO of Kakao
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CEO & President of Samsung Card
Kim Dae-hwan
- Kim Dae-hwan is the CEO of Samsung Card. He is focusing on solid management to cope with the deteriorating business environment in the card industry. Born on December 16, 1963, he graduated from Busan Daedong High School and Seoul National University with a degree in Economics. Starting his career at Samsung Life, he has held positions such as Marketing Strategy Group Manager, Management Support Office Manager, Executive Director of the Management Support Office, and Vice President of the Management Support Office, specializing in finance. He worked in the Financial Excellence Promotion Team of the Group Future Strategy Office, which was the control tower of Samsung Group. He is exploring internal innovation of companies through digitalization and actively contributing to the development of new business models utilizing big data. He is interested in expanding synergies with the mobile payment service 'Samsung Pay'. He is known for his balanced and rational thinking. #KimDaeHwan #SamsungCard
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CEO & President of Samsung Card
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General Director of Severance Hospital
Ha Jong-won
- Ha Jong-won is the director of Severance Hospital. He assumed office in August 2020 and has been serving his second term since 2022. He is interested in providing safe and efficient digital medical services through the integration of IoMT (Internet of Medical Things) technology and medical information systems in the digital transformation era. Born on February 18, 1964, he graduated from Gyeonggi High School and Yonsei University College of Medicine. He obtained his master's and doctorate degrees from the Graduate School of Yonsei University. In 1995, he was appointed to the Department of Internal Medicine at Yonsei University College of Medicine and has served as the director of the Intensive Care Unit at Severance Cardiovascular Hospital and the director of External Affairs. He has been active as the chairman of the Vascular Research Group of the Korean Society of Cardiology, the president of the Korean Society of Echocardiography, the founding president of the Korean Society of Vascular Medicine, and the chairman of the Planning Committee of the Korean Hospital Association. His specialties include diagnosing heart diseases using cardiac ultrasound and treating valvular diseases and heart failure. He gained attention for his paper published in the Harrison textbook, known as the bible of internal medicine. #SeveranceHospital #HaJongwon #digitalhealth #IoMT #cardiology #heartdisease #YonseiUniversity #medicalinnovation #heartfailure #valvulardisease
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General Director of Severance Hospital
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CEO & President of Hanjin Logistics
Noh Sam-sug
- Noh Sam-sug is the CEO and President of Hanjin. He also serves as a director of the Jeongseok Logistics Foundation, a public interest corporation established by the Hanjin Group. In a phase where the logistics industry is shrinking due to the global economic slowdown, he is investing to strengthen logistics competitiveness. Together with President Cho Hyun-min, who oversees Digital Platform Business and Marketing, he is leading Hanjin and reinforcing its global business. He was born on August 15, 1964, in Gyeongnam. He graduated from the Department of Trade at Pusan National University and obtained an MBA in Logistics Management from Inha University Graduate School. He completed a Ph.D. program in Aviation Transportation and Logistics at Korea Aerospace University Graduate School. He joined Korean Air, where he served as a branch manager in overseas locations such as India and Sri Lanka, and held positions including Cargo Supply Operation Team Leader and Cargo Team Leader at the Southeast Asia Regional Headquarters. He was appointed CEO of Hanjin in 2019 and promoted to President in 2022. With over 30 years of experience in the air logistics industry, he is a sales expert who has acted as a key regional sales leader. He emphasizes willpower and drive that surpass external environments. Based on the belief that "the protagonist of the many stories contained in the history of the company is the customer," he practices customer-centric management. He has the deep trust of Hanjin Group Chairman Cho Won-tae. #NohSamsug #Hanjin #logistics #leadership #globalbusiness #customercentric #ChoHyunmin #ChoWontae #airlogistics #salesexpert
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CEO & President of Hanjin Logistics
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CEO of LG Uplus
Hwang Hyeon-sik
- Hwang Hyeon-sik is the CEO and President of LG Uplus. As the 5G communication market grows, he is focusing on discovering new businesses to secure new growth engines based on the telecommunications business. He is paying attention to the growth potential of content and subscription services based on Internet TV (IPTV) channels, metaverse, data, advertising, security, smart mobility, and smart factories. He was born on August 1, 1962, in Incheon. He graduated from Bupyeong High School and Hanyang University with a degree in Industrial Engineering. He obtained a master's degree in Industrial Engineering from the Korea Advanced Institute of Science and Technology (KAIST). He joined LG and worked in the Chairman's office. After moving to the consulting firm PW&C, he returned to the LG Group as the head of the Business Development Team at LG Telecom. He went through the sales support and strategy sectors of LG Telecom and served as the head of the management team at the holding company LG. Returning to LG Uplus, he oversaw the mobile business. He led the wired and wireless business, encompassing mobile communication, Internet TV, high-speed internet, and smart home business, as the head of the consumer business. He was promoted to President in 2020 and appointed CEO of LG Uplus in 2021. For over 20 years, he has been responsible for the telecommunications business sales strategy since the days when LG Uplus was LG Telecom, being recognized as a 'sales expert' both inside and outside the company. #LGUplus #5G #telecommunications #HwangHyeonsik#CEO #metaverse #smartfactory #IPTV #innovation #salesexpert
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CEO of LG Uplus
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COO & Vice Chairman of Doosan Enerbility
Jung Yeon-in
- Jung Yeon-in is the CEO and President of Doosan Enerbility. He is responsible for the management division and serves as the Chief Operating Officer (COO), supporting the business operations of Doosan Enerbility. Along with Chairman and CEO Park Ji-won, who oversees overall business, and CEO Park Sang-hyun, who is in charge of financial management, Jung leads Doosan Enerbility as part of a three-person co-CEO system. He is focused on devising support plans to back Doosan Enerbility's wind power, hydrogen energy business, and small modular reactor business. Born on January 27, 1963, in Changwon, Gyeongsangnam-do. He graduated from Masan Jungang High School and Busan National University with a degree in Mechanical Design. He joined Korea Heavy Industries, the predecessor of Doosan Enerbility, where he handled management tasks including production support. Upon being promoted to Senior Executive Vice President from Executive Director of the Boiler Business Unit, he assumed the role of head of the management division and was appointed CEO. #JungYeonin #DoosanEnerbility #CEO #COO #WindPower #HydrogenEnergy #SmallModularReactor #BusinessManagement #KoreaHeavyIndustries #MechanicalDesign
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COO & Vice Chairman of Doosan Enerbility
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Former Minister of Land, Infrastructure and Transport
Won Hee-ryong
- Won Hee-ryong is the Minister of Land, Infrastructure, and Transport. Appointed as the first Minister of Land, Infrastructure, and Transport under the Yoon Suk-yeol administration, focusing on stabilizing the real estate market. Born on February 14, 1964, in Jungmun-dong, Seogwipo-si, Jeju Island. Graduated from Jeju Jeil High School, Seoul National University Law School, and obtained a master's degree in New Media Studies from Hanyang University Graduate School of Journalism and Information. Passed the 34th Judicial Examination with top honors, worked as a prosecutor, and later opened a law firm. Entered politics as a member of the former ruling party, the Hannara Party. Served as a three-term member of the National Assembly from Yangcheon-gu, Seoul, and held positions such as the Hannara Party's Reform Special Committee Chair, Secretary-General, and Chief Executive. Known as part of the 'Namwonjeong Trio' with Nam Kyung-pil, former Governor of Gyeonggi Province, and Jung Byung-guk, former lawmaker, advocating for reform within conservative parties. Left the party after the Park Geun-hye-Choi Soon-sil gate scandal, spent some time as an independent. Joined the Bareun Party and Bareun Future Party but left due to ideological differences, returned as an independent before joining the Future Integration Party. Re-elected as the Governor of Jeju Island. Resigned during the second term and entered the presidential primary of the People Power Party but lost, then worked alongside Yoon Suk-yeol's presidential campaign. During the presidential campaign, he oversaw policy development as the head of the People Power Party's Election Strategy Committee. After Yoon Suk-yeol's election as President, he became the Chairman of the Planning Committee tasked with turning campaign promises into policy tasks. Initially seen as a moderate reformist contributing to expanding the conservative base, but has taken a more hardline conservative stance post-election. Critics have labeled his post-impeachment actions as opportunistic.
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Former Minister of Land, Infrastructure and Transport
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Vice Chariman of SK Ecoplant
Jang Dong-hyun
- Jang Dong-hyun is the Vice Chairman and CEO of SK, the holding company of SK Group. He is leading the development of new growth drivers for SK Group, such as semiconductors, batteries, and bio. With SK Group Chairman Chey Tae-won emphasizing ESG (Environmental, Social, and Governance) management, Jang is also focusing on reorganizing the business portfolio related to these areas. He was born on August 20, 1963, in Daegu. He graduated from Kyungpook National University High School and obtained a bachelor's degree in Industrial Engineering from Seoul National University. He also earned a master's degree in Industrial Engineering from the graduate school of Seoul National University. He started his career at Yukong, which was acquired by SK Group. He then worked at SK and held positions as the Chief Financial Officer, Head of Business Planning, Head of Strategic Planning, and Head of Marketing at SK Telecom. As the Chief Operating Officer (COO) at SK Planet, he promoted the overseas expansion of the e-commerce company 11st and launched a new integrated online and offline commerce brand called 'Syrup.' After serving as the CEO of SK Telecom, he became the CEO of SK and was promoted to Vice Chairman. He is striving to transform SK from a company that merely supports its subsidiaries to an investment-oriented holding company that discovers and invests in new businesses to generate profits. He is regarded as one of the top financial experts within SK Group. #SKGroup #JangDongHyun #ViceChairman #CEO #semiconductors #batteries #bio #ESGmanagement #financialexpert #investmentholding
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Vice Chariman of SK Ecoplant
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Vice Chairman of Hana Financial Group
Lee Eun-hyung
- Lee Eun-hyung is the Vice Chairman of Hana Financial Group. He oversees three divisions at Hana Financial Group: Group Global Division (CGSO), Group ESG Division (CESGO), and Group Brand Division (CBO). Born on November 12, 1974, in Seoul, he is the second son of Lee Kwan-woo, the former president of Hanil Bank. He graduated from Seocho High School in Seoul and Korea University. He earned his master's and doctoral degrees in economics from Jilin University in China. He has held positions as the head and general representative of the China branch of Global Capital Investment Group (GCIG), a professor at the Northeast Asia Research Institute of Jilin University in China, and a consulting professor at Peking University in China. In 2011, he was recruited by Hana Financial Group and has served as Vice President in charge of global strategy at Hana Financial Group, Vice Chairman of China Minsheng Investment Group, and Chairman of the Investment Decision Committee. He was appointed Vice Chairman in charge of global affairs at Hana Financial Group in 2020 and has been serving his term since. He served as CEO of Hana Financial Investment (now Hana Securities) in 2021 and 2022. He is fluent in five languages and is an overseas expert with an extensive global network. He holds a philosophy of communicating with humility and emphasizes leadership through communication and empathy. #LeeEunHyung #HanaFinancialGroup #ViceChairman #GlobalStrategy #ESG #InternationalExpert #Leadership #Communication #Empathy #FinancialIndustry
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Vice Chairman of Hana Financial Group
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Chairman of BGF Group
Hing Seok-joh
- Hong Seok-joh is the chairman of BGF Group. He also serves as the chairman of BGF Retail. He transitioned from prosecution to lead BGF Retail (formerly known as Bogwang Family Mart), focusing on expanding the CU convenience store business. He entrusted the holding company to his eldest son, Hong Jeong-kook, who serves as the CEO of BGF, while his second son, Hong Jeong-hyuk, oversees new businesses as the CEO of BGF Eco Materials, establishing a foundation for succession. Born on January 8, 1953, in Seoul as the son of Hong Jin-ki, former chairman of JoongAng Ilbo, he has an older brother Hong Seok-hyun, chairman of JoongAng Holdings, an older sister Hong Ra-hee, former director of the Samsung Museum of Art Leeum, and a brother-in-law Lee Kun-hee, former chairman of Samsung Electronics. He graduated from Seoul National University's College of Law and Harvard University Graduate School in the United States. After passing the bar exam, he served as the head of planning at the Supreme Prosecutors' Office, head of the Prosecution Department at the Ministry of Justice, and chief prosecutor at Gwangju High Prosecutors' Office. Although he was once considered a candidate for Prosecutor General, he left the legal profession after being implicated in the 'An Gi-bu X-Files' case exposed by lawmaker Roh Hoe-chan, accused of delivering bribes, concluding his career as chief prosecutor at Gwangju High Prosecutors' Office. Moving to the CEO and chairman position at Bogwang Family Mart, he renamed the company to BGF Retail and rebranded it as CU, severing ties with Japan's FamilyMart. By dividing BGF into BGF for investment and BGF Retail for business operations, he transitioned the group into a holding company structure. Despite initial skepticism about his management capabilities due to his prosecutorial background, he elevated CU to a leading position in the industry. His hands-on management style has earned him recognition as the most successful among the children of former chairman Hong Jin-ki in the field of business management. #HongSeokJoh #BGFGroup #BGFRetail #CU #SuccessionPlanning #FormerProsecutor #HongJinKiFamily #SeoulNationalUniversity #HarvardGrad
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Chairman of BGF Group
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President of Sejong University
Bae Deg-hyo
- Bae Deg-hyo is the President of Sejong University. He is dedicated to nurturing creative talents to lead the Fourth Industrial Revolution. He was born in 1960. He graduated from the Department of Civil Engineering at Yonsei University. He earned his master's and doctoral degrees in Construction and Environmental Engineering from the University of Iowa in the United States. At Sejong University, he served as the Head of the Department of Construction and Environmental Engineering, Director of Planning, and Dean of the Graduate School. He has held positions such as Vice President of the Korean Society of Climate Change Research, Academic Vice President of the Korean Water Resources Association, Non-Executive Director of the Korea Water Resources Survey Technology Institute, and Chairman of the National Water Management Committee. As an expert in environment and energy, he has extensive knowledge in the field of water management. #SejongUniversity #BaeDegHyo #FourthIndustrialRevolution #CreativeTalents #CivilEngineering #YonseiUniversity #UniversityOfIowa #WaterManagement #EnvironmentExpert #KoreanWaterResourcesAssociation
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President of Sejong University
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Vice Chairman of GS Retail
Huh Yeon-soo
- Huh Yeon-Soo is the Vice Chairman and CEO of GS Retail. He is focusing his efforts on reducing the deficit of the online business and improving the operating profit margin of the convenience store business. He is actively engaging in mergers and acquisitions and investment activities to enhance the integrated platform that encompasses both online and offline operations. Through quick commerce, which utilizes GS Retail's offline channels as delivery bases, he is responding to changes in consumer purchasing patterns. He was born on July 26, 1961, as the second son of Huh Shin-Goo, Honorary Chairman of GS Retail. He graduated from Korea University with a degree in Electrical Engineering and received a Master's degree in Computer Science from Syracuse University in the United States. He joined Lucky-Goldstar and held positions such as Executive Director of the Singapore branch of LG International Corp and Executive Director in charge of new store planning at LG Distribution. At GS Retail, he served as Executive Director of the Convenience Store Business Division, Vice President of Sales, Vice President and Head of MD Headquarters, President and Head of MD Headquarters, and President of the Convenience Store Business Division before being appointed CEO. He was promoted to Vice Chairman in 2019. Huh has led the growth of GS Retail's convenience store business. He is known for being sensitive to trends and strong in details. Along with Huh Tae-Soo, Chairman of GS Group, he is playing a pivotal role in stabilizing the group as a third-generation owner-manager. #GSRetail #HuhYeonSoo #conveniencestore #onlinetoooffline #mergersandacquisitions #investment #quickcommerce #consumertrends #businessgrowth #thirdgenerationleadership
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Vice Chairman of GS Retail
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President of Yonsei University
Suh Seoung-hwan
- Suh Seoung-hwan is the President of Yonsei University. He envisions transforming Yonsei University into an educational institution that fosters 'innovative leaders with a communal self.' He is strategically strengthening the fields of artificial intelligence (AI) and big data, focusing on developing Yonsei into a practical research-oriented university. Suh is dedicated to transforming the international campus into a global hub for bio-research and industry. Born on June 28, 1956, in Seoul, he graduated from Seoul High School and Yonsei University with a degree in economics. He obtained his master's degree in economics from Yonsei University Graduate School and earned his Ph.D. in economics from Princeton University. As a professor of economics at Yonsei University, he served as the president of the Korean Regional Science Association and the Korean Association of Applied Economics, and as the director of the Yonsei University Economic Research Institute. Suh was a member of the Central Urban Planning Committee of the Ministry of Land, Transport and Maritime Affairs and a member of the Early Warning System (EWS) Indicator Review Committee of the Ministry of Construction and Transportation. As a member of the 18th Presidential Transition Committee, he proposed the key real estate policies of President-elect Park Geun-hye, including the 'Happy Housing' and 'Jeonse(lent in korea) without Lump Sum' plans, and served as the Minister of Land, Infrastructure, and Transport. He launched the innovative education platform 'LearnUs,' which is open to the public, receiving praise for shifting the paradigm to a blended online and offline education model. #SuhSeounghwan #YonseiUniversity #AI #BigData #BioResearch #GlobalHub #Economics #HappyHousing #LearnUs #EducationInnovation
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President of Yonsei University
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CEO & President of GS Energy
Huh Yong-soo
- Hur Yong-soo is the President and CEO of GS Energy. GS Energy, a subsidiary of the GS Group in the energy and chemical sector, is led by Hur Yong-soo, who focuses on establishing future growth drivers centered on eco-friendly initiatives such as hydrogen, renewable energy, and electric vehicle-related businesses. He is dedicated to strengthening the group's overall energy and chemical business by establishing a value chain for liquefied natural gas (LNG) and exploring opportunities in the chemical industry. Born on October 16, 1968, he graduated from Georgetown University in the United States and the Korea Advanced Institute of Science and Technology (KAIST) Business School. He joined the GS Group as an executive director after working for Seungsan Group. At GS, he served as the head of the Business Support Team, promoting the expansion into overseas markets and new business ventures. At GS Energy, he held positions as Chief Planning Officer and Head of the Energy Resources Business Division. He was appointed CEO of GSEPS, taking on a major management role before being appointed CEO of GS Energy. He is known for being a manager who actively communicates with employees. As the youngest of the third-generation executives in the owner family, he is one year older than Heo Se-hong, President and CEO of GS Caltex, who leads the fourth generation of executives. He stands as a rival to Heo Se-hong in the group’s succession competition. Keywords #GS #GSEnergy #HurYongsoo #hydrogen #renewableenergy #electricvehicles #LNG #chemicalindustry #GSGroup #businessleadership
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CEO & President of GS Energy
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CEO & President of Hyundai Wia
Jung Jae-wook
- Jung Jae-wook is the CEO and President of Hyundai Wia. In line with Hyundai Motor Group's strategy for transitioning to future vehicles, he is dedicated to enhancing the competitiveness of eco-friendly car parts, including electric and hydrogen vehicles. Born on March 5, 1959, he graduated from Pusan National University with a degree in Mechanical Engineering. He has worked at Kia Motors and Hyundai Mobis before joining Hyundai Motor, where he served as the Head of Parts Development 1 Division and the Head of Parts Development Business Unit. After being promoted to Vice President, he moved to the Chinese subsidiary, Beijing Hyundai Motor Company, where he served as the Head of the Purchasing Division before returning as the Head of the Purchasing Division at Hyundai Motor. In 2021, he was promoted to President and appointed CEO of Hyundai Wia. With over 30 years of experience at Kia Motors, Hyundai Mobis, and Hyundai Motor, he is a specialist in auto parts. Keywords: #JungJaeWook #HyundaiWia #EcoFriendlyCars #ElectricVehicles #HydrogenCars #AutoPartsDevelopment #HyundaiMotorGroup #FutureVehicles #AutomotiveIndustry #MechanicalEngineering
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CEO & President of Hyundai Wia
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Founder & Chief Creativity Officer of JYP Entertainment
Park Jin-young
- Park Jin-young is the founder and largest shareholder of JYP Entertainment, holding a 15.2% stake. He serves as an inside director and Chief Creativity Officer (CCO) at JYP Entertainment. He is focused on a localization strategy, introducing idol groups composed of local members from countries such as the United States, Japan, and China. Born on December 13, 1971, in Seoul, his registered birthday is January 13, 1972. He moved to the United States during elementary school, where he lived for two and a half years, was exposed to American popular culture, and nurtured his dream of becoming a singer. While studying in the Department of Geology at Yonsei University, he debuted with the group 'Park Jin-young and the New Generation' but did not achieve significant success as a group. He made his solo debut with the title track 'Don't Leave Me'. Hits such as 'Elevator', 'She Was Pretty', 'Honey', and 'I Have a Woman' established him as one of the representative singers of South Korea in the 1990s. Transitioning into a producer, he founded JYP Entertainment. The company grew into one of South Korea's top four entertainment agencies, producing artists like god, Park Ji-yoon, Rain, Byul, Wonder Girls, 2PM, Miss A, TWICE, Stray Kids, and ITZY. With a determination to sing and perform even as he ages, he continued his singing and broadcasting activities without a break in 2023, even after turning 50, embodying the spirit of an 'eternal entertainer'.
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Founder & Chief Creativity Officer of JYP Entertainment
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CFO & President in SK
Lee Sung-hyung
- Lee Sung-hyung is the President of SK Group's Finance Division and Portfolio Management Division. He serves as the Chief Financial Officer (CFO) and Head of Portfolio Management (PM) at SK Group's holding company, SK, dedicating his efforts to building the 'financial story' championed by Chey Tae-won, Chairman of SK Group. As SK Group has plans to invest KRW 247 trillion (US$ 179.4 billion) by 2026, he is focused on managing the financial stability to secure the necessary investment resources. Born on December 25, 1965, he graduated from Gyeongju High School in Gyeongbuk and Yonsei University with a degree in Business Administration. After joining Yukong, the predecessor of SK Innovation, he held positions such as Head of Corporate Finance at SK Securities, Director of SK Finance Division 1, and Director of Financial Management at SK Telecom. In addition to his roles as Head of SK Finance Division and PM Division, he also serves as an outside director for SKC, SK E&S, and SK Ecoplant. #SKGroup #Finance #Investment #CFO #LeeSunghyung #PortfolioManagement #CheyTaeWon #FinancialStability #BusinessAdministration #CorporateFinance
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CFO & President in SK
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COO & Vice Chairman of LG Corp.
Kwon Bong-seok
- Kwon Bong-seok is the CEO & Vice Chairman of LG Corp. Along with LG Group Chairman Koo Kwang-mo, he leads the holding company LG in a co-CEO structure. While assisting Chairman Koo in leading LG, he is exploring new business ventures through direct and indirect investments, including mergers and acquisitions. He was born on September 9, 1963, in Busan. After graduating from Busan Daedong High School and majoring in Industrial Engineering at Seoul National University, he completed an MBA program at Helsinki School of Economics in Finland. He joined LG Electronics and worked mainly in the display field, serving in roles such as Manager of DID (Digital Signage) Business Planning Group and Head of the Monitor Business Unit and HE Media Business Unit. As the Executive Director of MC Product Planning Group, he participated in the early development of LG's strategic smartphone 'G' series and the smartwatch 'G Watch.' He moved to LG Corp., the holding company, where he supported the businesses of LG Group affiliates as Head of the Synergy Team, then transitioned to lead the HE Business Division, managing LG Electronics' TV business. Following the group strategy of applying the success know-how of OLED TVs to the smartphone business, he concurrently served as Head of the MC Business Division before being appointed CEO of LG Electronics. He is known for his integrative management strategy, possessing both technological and marketing capabilities, and is praised for listening well to the voices on the front lines, thus having a strong sense of field experience. #LG #KwonBongseok #KooKwangmo #businessleadership #mergersandacquisitions #newbusinessventures #OLEDTV #smartphonebusiness #managementstrategy #technologymarketing
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COO & Vice Chairman of LG Corp.
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CEO & President of Samsung Life Insurance Co, Ltd.
Jeon Young-muk
- Jeon Young-mook is the President and CEO of Samsung Life Insurance. With the domestic insurance market saturated, he is focusing on strengthening overseas business and asset management sectors. He was born on October 20, 1964 (Lunar Calendar) in Jeongseon, Gangwon Province. After graduating from Wonju High School and Yonsei University with a degree in Business Administration, he earned an MBA from the University of Pennsylvania in the United States. He began his career at Samsung Life Insurance, serving as Head of the Asset PF Operations Team, Head of the Investment Business Department, and Head of the Asset Management Headquarters. He was appointed Vice President and CEO of Samsung Asset Management, leading the development of new products such as lifecycle funds and pension products. In 2020, after five years away from Samsung Life Insurance, he returned as President and CEO, marking a triumphant homecoming. Renowned for his expertise in asset management and business administration, he is considered one of the leaders who will guide Samsung Group's financial affiliates. #JeonYoungmook #SamsungLifeInsurance #assetmanagement #businessadministration #Koreaninsurance #overseasbusiness #financialleadership #SouthKorea #insuranceindustry #SamsungGroup
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CEO & President of Samsung Life Insurance Co, Ltd.
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Executive Producer of YG Entertainment
Yang Hyun-suk
- Yang Hyun-suk is the founder and Executive Producer of YG Entertainment. He is focused on overcoming the crisis triggered by the Burning Sun scandal and restoring public trust. He was acquitted in the first trial of 'retaliatory threats' charges and is currently undergoing an appeal trial. Born on January 9, 1970, in Seoul, Yang began his career as a legendary dancer in Itaewon and debuted with 'Seo Taiji and Boys,' shaking up the domestic music scene. After Seo Taiji and Boys' sudden retirement, Yang shifted his career path to music production. In 1996, he established Hyun Planning, a hip-hop specialized record label. After discovering Jinusean and 1TYM, he changed the company's name to YG Planning and continuously pursued a brand image as a 'specialist in black music,' solidifying his foundation as a producer. Renaming the company to YG Entertainment, he discovered and successfully launched artists such as Se7en, Gummy, BIGBANG, and 2NE1, widely showcasing his prowess as a producer. He also achieved significant success in the global music market with PSY's 'Gangnam Style.' Yang stepped down as Chief Executive Producer of YG Entertainment, taking responsibility for the Burning Sun scandal involving former BIGBANG member Seungri, but returned after three and a half years. He is working on renewing the contract with BLACKPINK and is directly managing the new girl group 'Baby Monster,' striving to restore his and the company's image. Keywords #YangHyunSuk #YGEntertainment #BurningSunScandal #Kpop #MusicProducer #SeoTaijiAndBoys #BIGBANG #BLACKPINK #BabyMonster #GangnamStyle
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Executive Producer of YG Entertainment
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President of Samsung Electronics
Park Yong-in
- Park Yong-in is the President and Head of System LSI Business at Samsung Electronics' Device Solutions (DS) Division. He leads Samsung Electronics' non-memory semiconductor business, including mobile chips, image sensors, and artificial intelligence (AI) semiconductors. He focuses on enhancing system semiconductor design capabilities to catch up with companies like Qualcomm and Sony in mobile processors (AP) and image sensors. Born on April 23, 1964. He graduated from Whimoon High School in Seoul and received a bachelor's degree in electronic engineering from Yonsei University, where he also earned a master's degree in electronic engineering from the graduate school. He has design and process development experience in the analog and system integrated circuit (IC) fields and is recognized as an expert in high-difficulty data converters among analog semiconductors. He began his career at LG Electronics, then moved to LG Semiconductors and Texas Instruments (TI) in the United States before being recruited by Dongbu HiTek (now DB HiTek). At Dongbu HiTek, he established the display business unit and led LDI development. He moved to Samsung Electronics, where he held key positions in the System LSI Business Division, including Head of LSI Development, Head of Sensor Business Team, and Head of System LSI Strategy Marketing, leading the growth of display driver ICs (DDI), power management ICs (PMIC), and sensor businesses. #SamsungElectronics #ParkYongin #SystemLSI #NonMemorySemiconductors #MobileChips #ImageSensors #AIsemiconductors #DataConverters #SemiconductorIndustry #AnalogSemiconductors
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President of Samsung Electronics
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Head of Food Growth Promotion at CJ CheilJedang
Lee Sun-ho
- Lee Sun-ho is the Head of Food Growth Promotion at CJ CheilJedang. As the eldest son of CJ Group Chairman Lee Jae-hyun, he is the top candidate for succession of CJ Group's management rights. In his role at the Food Growth Promotion Office, he focuses on the overseas growth of CJ CheilJedang's food business and the exploration of new businesses. He was born on May 30, 1990. He graduated from Columbia University in the United States with a degree in Financial Economics before joining CJ Group. He has held various positions, including Manager at CJ CheilJedang, Head of the Bio Business Management Team at CJ CheilJedang, and Senior Manager in the Management Strategy Office at CJ Corporation. He later moved to the Food Strategy Planning Team 1 in the Food Business Division of CJ CheilJedang. With the reorganization of CJ CheilJedang, he was appointed Head of the Food Growth Promotion Office. He was tried for violating the Narcotics Control Act. During this process, he was suspended from the company but returned a year later as Head of Global Business. He is known to be quiet, humble, and unpretentious.
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Head of Food Growth Promotion at CJ CheilJedang
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President & Head of Global marketing in Samsung Electronics
Lee Young-hee
- Lee Young-hee is the President and Head of Global Marketing at Samsung Electronics. She oversees Samsung Electronics' brand marketing strategy, effectively fulfilling the role of Chief Marketing Officer (CMO). She is the first female president in the Samsung Group, excluding the owner family. Born in November 1964, Lee graduated from Yonsei University with a degree in English Literature and earned a master's degree in Advertising Marketing from Northwestern University in the United States. She has served as an advertising executive at Leo Burnett Korea, Marketing Manager at Unilever Korea, and Marketing Director at SC Johnson Korea, gaining experience as a marketing leader in global companies. Lee also held the position of Executive Director of the Pharmaceutical and Hospital Division at L'Oréal Korea. After being recruited as an executive at Samsung Electronics, she worked in the Strategic Marketing Team at the DMC Research Center, focusing on mobile phone marketing. Her efforts in establishing and promoting the Galaxy series brand led to her rapid promotions to Senior Vice President and Executive Vice President. As a brand marketing expert, she played a crucial role in overcoming the discontinuation crisis of the Galaxy Note 7 and worked diligently to restore the brand image of Samsung Electronics' smartphones. Lee consistently participates in lectures and events related to female leadership, becoming a role model for female executives in South Korea. #Samsung #LeeYounghee #GlobalMarketing #CMO #GalaxySeries #BrandMarketing #FemaleLeadership #RoleModel #Smartphones #CorporateSuccess
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President & Head of Global marketing in Samsung Electronics
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Chairman of Hyundai Home Shopping
Chung Kyo-sun
- Chung Kyo-sun is the Vice Chairman of Hyundai Department Store Group. He also serves as the CEO of Hyundai Home Shopping. He assists Chung Ji-sun, the Chairman of Hyundai Department Store Group, in managing the overall operations of the group, striving to elevate Hyundai Department Store Group into a 'Total Life Care Company.' As Hyundai Department Store Group transitions to a dual holding company structure, he is focusing on improving the performance of Hyundai GF Holdings subsidiaries, including Hyundai L&C, Hyundai Green Food, Hyundai Livart, Hyundai Everdigm, and Hyundai IT&E. Born on October 31, 1974, in Seoul, he is the second son of Chung Mong-geun, Honorary Chairman of Hyundai Department Store Group. He graduated from Hankuk University of Foreign Studies with a degree in Trade and completed an MBA at Adelphi University in the United States. He joined Hyundai Department Store, working in the Management Control Team and Planning and Coordination Headquarters, eventually becoming Vice Chairman of Hyundai Department Store and Vice Chairman of Hyundai Green Food. When his father, Honorary Chairman Chung Mong-geun, retired from management, he, along with his elder brother, Chairman Chung Ji-sun, ushered in the third generation of leadership for Hyundai Department Store Group. Alongside Chairman Chung Ji-sun, he oversees the operations of Hyundai Department Store and other affiliates within Hyundai Department Store Group, including Hyundai Livart, Hyundai Everdigm, and Hyundai Green Food, among others in the distribution sector. He is known for his unpretentious and bold personality and possesses a keen sense of art. #HyundaiDepartmentStore #ChungKyoSun #HyundaiHomeShopping #TotalLifeCareCompany #HyundaiGFHoldings #HyundaiL&C #HyundaiGreenFood #HyundaiLivart #HyundaiEverdigm #ThirdGenerationLeadership
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Chairman of Hyundai Home Shopping
News
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- GM Korea's Exit Denial Rings Hollow Again
- Concerns are once again mounting within the South Korean auto industry that GM Korea may withdraw from the country. GM Korea's management has strongly denied such speculation, calling it nothing more than a “rumor.” CEO Hector Villarreal has been actively engaging in on-site management, visiting various business locations to reassure employees. Nevertheless, confusion grew after GM Korea announced on May 28 that it would gradually sell off nine directly operated service centers and portions of the Bupyeong plant's land and assets. GM has a history of denying withdrawal plans in other countries, only to accept government support based on employment assurances before ultimately exiting. In South Korea as well, GM used the threat of withdrawal or court receivership in 2018 to pressure the government into providing financial support. Such precedents have led to widespread distrust toward GM. GM Korea’s business structure prioritizes the interests of its U.S. headquarters over strengthening domestic operations. For instance, around 5% of its annual revenue is paid to the U.S. headquarters as royalties and R&D expenses. In 2024 alone, GM Korea paid KRW 563.6 billion (US$ 392 million) in royalties. As a result, many argue that to put the withdrawal rumors to rest and regain public trust, GM Korea must expand new car lineups at its domestic plants and strengthen its presence in the domestic market to dispel fears of plant closures. Villarreal’s future actions are drawing attention in this context. A native of Mexico, Hector Villarreal is seen as a seasoned strategy and planning expert with rich global experience within GM. He previously served as GM Korea’s VP of Planning and Program Management from 2012 to 2015 and returned in August 2023 as the company’s CEO. △ Background Behind Resurfacing GM Korea Exit Rumors Former U.S. President Donald Trump imposed a 25% tariff on imported automobiles in April 2025. As of May 2025, Korean-made vehicles exported to the U.S. are subject to this 25% tariff. Ironically, GM Korea, which is headquartered in the U.S., has suffered the biggest blow among Korean automakers due to this policy. If the tariff remains in place, GM Korea would need to spend several trillion KRW more annually. With a net profit of KRW 2.2 trillion (US$ 1.5 billion) in 2024, the company could quickly fall into the red. This is due to GM Korea's deep dependence on its U.S. headquarters. In 2024, 95% of its production was exported, and 88.5% of those exports (equivalent to 84% of total production) were sold in the U.S. GM Korea's performance is not based on independent sales but rather on production volume allocations from the GM headquarters. In contrast, its domestic market presence continues to decline. Less than 5% of production is sold domestically, and in 2024, domestic sales revenue fell below KRW 1 trillion (US$ 695 million) for the first time. Its domestic market share is just 1.8% (2024). Moreover, GM Korea currently produces only two distinct models in South Korea. The company manufactures four models domestically—Trailblazer, Trax Crossover, Buick Envista, and Buick Encore—but the latter two share platforms with the Trax and Trailblazer, respectively. These models are popular in the U.S. due to their relatively low prices. However, if their prices increase due to tariffs, sales may drop. All these factors fuel persistent doubts about GM Korea’s viability as an independent operation. △ GM Denies Exit Plans, but Trust Remains Broken CEO Hector Villarreal and other GM Korea executives continue to deny any plans to exit the Korean market. On May 15, Villarreal visited the Changwon plant, where he comforted employees and announced plans to increase production by 21,000 units this year. Previously, on April 16, at the launch of the new Cadillac Escalade, Villarreal said, “We will continue to introduce new models and invest in our network,” emphasizing that “the withdrawal rumors are nothing more than unfounded speculation.” At the same event, Vice President Gustavo Colossi also promised to continue launching new products and sharing release plans with the media. Despite these assurances, mistrust among the Korean government, citizens, and GM Korea employees continues to linger. This is due to GM’s track record of betrayal in other countries. GM has similarly pulled out of Belgium, Germany, Australia, and Sweden after denying withdrawal plans and collecting government support. The company also exited India, Indonesia, and Thailand, citing declining profitability. In Korea, GM used large-scale losses from 2014 to 2017 to pressure the government into providing support, ultimately securing aid from the Korea Development Bank (KDB). Nevertheless, GM shut down its Gunsan plant in 2018 and halted operations at its Bupyeong Plant 2 in 2022. If GM decides to withdraw from Korea, around 11,000 employees at the Bupyeong and Changwon plants would lose their jobs. Furthermore, around 3,000 partner companies—including 276 Tier-1 suppliers—would face existential threats. It is estimated that GM Korea supports around 150,000 direct and indirect jobs. Back in 2018, GM signed a “10-year commitment” with KDB to maintain its production facilities in Korea through 2028. Only three years now remain in that agreement. △ Union Demands New Vehicle Allocations To restore public and employee trust, many say GM Korea must clearly demonstrate its commitment to continuing operations in Korea. The GM Korea labor union, in particular, insists that beyond simply maintaining production volume, the company must present detailed plans for future vehicle models to be manufactured at the Bupyeong and Changwon plants. The union also demands a roadmap for transitioning to electric and future mobility vehicles. In the upcoming 2025 collective bargaining talks, the union plans to push for: Resumption of plug-in hybrid (PHEV) development, Production of new models, Domestic production of internal combustion engines, and Introduction of the Buick brand in the Korean market. The issue, however, lies in GM Korea’s lack of autonomy in decision-making, as key decisions such as plant closures are made based on the global strategy of GM headquarters. Nevertheless, GM is lobbying the Trump administration to exempt its domestic-brand vehicles from tariffs and offer protective measures. In March 2025, GM, Ford, and Stellantis vehicles produced in Canada and Mexico were granted a one-month tariff exemption starting March 5. GM Korea could receive similar treatment. #GMKorea #GMwithdrawal #automotiveindustry #tariffs #SouthKorea #USautoimports #laborunion #HectorVillarreal #Buick #GMtariffimpact
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- Korea’s First ‘Climate President’ Lee Launches Race to Recover Lost Time
- For the first time in Korean history, a presidential administration has come to power with climate policy as a core national agenda. As South Korea has long been regarded as one of the world's laggards in the global energy transition, the new administration is expected to launch a high-speed campaign to recover lost time. President Lee Jae-myung officially began his duties on the morning of June 4 by taking the oath of office at the National Assembly. In his inaugural address, President Lee emphasized, "The climate crisis threatens humanity and is forcing a massive industrial transformation. The rapid changes in the global order, including rising protectionism and the reorganization of supply chains, are directly threatening our very survival." This appears to reflect the current global context, where the European Union is leading in energy transition and countries like the United States are implementing carbon tariffs and clean competition legislation, raising “green tariff barriers.” President Lee continued, “Unfortunately, at this critical juncture, we face a complex web of overlapping crises in every sector—from the economy and people’s livelihoods to diplomacy, security, and democracy. The present and future of Korea are simultaneously under threat.” During the presidential campaign, Lee pledged concrete and essential actions to tackle the climate crisis, including achieving the 2030 Nationally Determined Contributions (NDC) target, hosting the 33rd UN Climate Change Conference (COP33), and strengthening carbon reduction incentives. Lee is the first Korean president to directly highlight climate issues in an inaugural address and express strong commitment to addressing them. By contrast, former President Moon Jae-in in 2017 promised inter-Korean forest cooperation to reduce greenhouse gases, but did not treat it as a core agenda. President Lee also vowed to fully implement the RE100 (100% renewable energy) initiative, seen as a crucial step for South Korea’s industrial climate response. As of 2024, data from the OECD shows that South Korea’s share of renewable energy remains at about 10%, the lowest among major economies. The OECD average exceeds 35%. Despite this, the previous Yoon Suk-yeol administration faced strong criticism for setting a modest target of just 29.2% renewable energy by 2038 in the 11th Basic Plan for Long-Term Electricity Supply and Demand. Many in politics, industry, and environmental circles have labeled the Yoon era as “three lost years.” In contrast, President Lee has announced plans to establish a dedicated Ministry of Climate and Energy and rapidly expand renewable energy use. In his inaugural speech, Lee said, “We will swiftly transition to a renewable energy-centered economy in line with global climate response trends. This will help reduce energy imports, enhance corporate competitiveness through RE100, and revitalize declining local areas by building a dense renewable energy grid so that anyone, anywhere, can generate clean energy.” His government plans to install more solar panels on general buildings, parking lots, and industrial complexes, and increase support for improving solar technology efficiency. A plan to create a RE100 industrial complex to supply power to the semiconductor cluster in Yongin has also been announced. Environmental groups both in Korea and abroad, which had long criticized the lack of progress under the Yoon administration, welcomed Lee’s policy direction. However, they also expressed concern that the announced measures fall short of fully delivering on his promises. One of the key criticisms is the lack of a detailed roadmap for phasing out fossil fuels other than coal. Although Lee pledged to close all domestic coal power plants by 2040, no clear plan was presented for reducing the use of liquefied natural gas (LNG). A Greenpeace representative noted, “President Lee’s platform still lacks a clear roadmap for reducing LNG use, and there is no plan for managing rising methane emissions. The construction of six new LNG power plants to meet power demands for the Yongin semiconductor cluster directly contradicts the climate agenda and must be canceled.” In a joint report with Greenpeace, the Korea-based group Climate Solution analyzed alternatives to supply the 3-gigawatt electricity demand of the Yongin national industrial complex with nearby renewable energy instead of LNG. Their analysis found that doing so could save up to KRW 30 trillion (US$ 20.9 billion) in electricity costs by 2050. Considering the avoided social costs of LNG construction, the economic impact of renewable procurement would be even greater. Beyond LNG issues, Greenpeace pointed out the need for stronger policies on plastic reduction, expansion of domestic environmental protection zones, and improved response systems for climate disasters. The Green Transition Institute, a Korean climate policy think tank, also issued a similar policy recommendation, emphasizing that the government’s current plans lack specific financial strategies for the energy transition. President Lee has stated that the necessary funding will come from a supplementary budget this year and from increases in total government revenue starting next year. The Green Transition Institute stressed, “President Lee’s term may be Korea’s last golden window for serious climate action. We must not waste this precious opportunity and must escape our status as a climate laggard.” #LeeJaeMyung #KoreaClimatePolicy #RE100 #EnergyTransition #GreenNewDeal #Renewables #Inauguration #CarbonNeutrality #ClimateCrisis #Sustainability
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- Kbank’s Final Hurdle: Choi Must Fix Board to Become Real Bank
- “We gauged market demand while pursuing the IPO this time. We plan to regroup and try again in January 2025.” This is what Choi Woo-hyoung, CEO of Kbank, told reporters after attending the 9th Financial Day ceremony in Yeouido on October 29, 2024. Although the timeline has been slightly delayed from what Choi initially stated, Kbank officially resolved to resume its IPO efforts at a board meeting in March 2025, marking its third attempt at going public. Typically, the success of an IPO hinges on a company’s business model and financial stability. However, for a company to be properly valued by the market after listing, it must also adopt an advanced governance structure that ensures board independence. Going public is essentially a declaration to undergo external scrutiny regarding managerial transparency and accountability. This is particularly significant for Kbank, which operates in the banking sector—an industry closely tied to the national economy. For such an institution, board independence and governance transparency are even more critical. The issue, however, is that Kbank has consistently faced criticism regarding the independence, diversity, and expertise of its board. △Kbank Exceeds KRW 2 Trillion in Capital, Still Fails to Meet Gender Diversity Requirements According to Kbank’s Q1 2025 quarterly report, its total capital stood at KRW 2.0153 trillion (US$ 1.4 billion), exceeding the KRW 2 trillion threshold. Under Article 165-20 of the Capital Markets Act, financial or insurance companies with capital exceeding KRW 2 trillion must not have a board composed entirely of directors of the same gender. Despite this, Kbank’s current board is composed solely of men, thereby failing to meet the legal requirement. Gender diversity on the board is also a symbolic indicator of corporate sustainability and inclusiveness. Foreign institutional investors, in particular, often consider a lack of gender diversity a significant governance flaw. KakaoBank, a competitor, appointed Lee Eun-kyung, head of the law firm Sanji, as its first female outside director in August 2022—prior to the revised law's enforcement—and has maintained at least one female director since. The current sole female outside director, Kim Ryun-hee, an associate professor of Technology Management at KAIST, will serve until March 2026. While some dismiss such moves as token gestures, KakaoBank at least fulfills the basic institutional requirement—unlike Kbank. △CEO Also Serving as Board Chair—Higher Standards Required for Banks Choi Woo-hyoung currently serves as both CEO and board chair of Kbank. Unlike the lack of female board members, this dual role is not illegal. Article 13 of the Financial Company Governance Act requires the board chair to be an outside director. However, Paragraph 2 of the same article allows for a non-outside director to assume the role if the company discloses the reason and appoints a lead outside director to represent other outside board members. Nonetheless, Kbank is not merely an internet service company—it is a bank that collects customer deposits, issues loans, and manages customer assets. Given its role as a financial institution operating on public funds, Kbank must uphold higher governance transparency than general corporations. While it may be common in many companies for the CEO to also chair the board, banks are held to a different standard. After going public, KakaoBank appointed outside director Jin Woong-sub as its board chair, signaling a clear intent to strengthen governance transparency. Similarly, if Kbank wants to be a true participant in the capital market through its IPO, it must build a governance structure that meets such expectations. △Board Lacks IT Expertise in Digital Banking Era Concerns have also been raised about the composition of Kbank’s board. Apart from attorney Oh In-seo and engineering PhD Lee Kyung-sik, all of Kbank’s outside directors come from financial backgrounds. Notably, there are no cybersecurity experts on the board—a point of concern for investors and customers alike. Following a major customer data breach at SK Telecom, public attention toward corporate data security has intensified. As an internet-only bank offering all services digitally and remotely, Kbank’s system reliability and cybersecurity capabilities are directly linked to customer trust. As ESG management becomes a corporate imperative, voices are also calling for the inclusion of directors with ESG expertise. Especially post-listing, investor scrutiny of board composition will intensify, making it urgent for Kbank to restructure its board now in preparation. △IPO Is Just the Start—Board Reform Is the Final Piece to Becoming a True Bank As Korea’s first internet-only bank, Kbank has pursued various innovations to date. It has secured a market presence through user-friendly digital services and flexible product offerings and now aims to leap forward through its IPO. Given the nature of the banking industry, the transparency and independence of the board are prerequisites for gaining customer trust. The board is not merely a legal formality but a mirror reflecting the company’s philosophy and management principles to the market. If Choi Woo-hyoung’s goal is not just to list Kbank but to transform it into a genuine bank, the board is the first place that needs change. An industry insider commented, “A bank is not just a profit-making entity—it’s a financial intermediary with public responsibilities and systemic risk management roles. Thus, governance transparency and board independence are held to far stricter standards than in ordinary firms. During an IPO process, external pressure for board independence becomes even more intense to ensure investor protection.” A Kbank representative stated, “Financial soundness is the most important factor in operating a bank,” and added, “Key indicators such as delinquency rates and the ratio of substandard or below loans improved significantly in Q1 this year.” #Kbank #IPO #governance #ChoiWoohyoung #genderdiversity #boardtransparency #bankingindustry #corporategovernance #ESG #cybersecurity
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- Factory Boy Who Envied School Uniforms Rises to Presidency
- Lee Jae-myung of the Democratic Party of Korea is all but confirmed to have been elected as the 21st President of the Republic of Korea as of 11:40 p.m. on the night of the 3rd. After losing the 2022 presidential election, his political career faced a severe threat amid a series of prosecutorial investigations, indictments, and trials. He even faced actual physical violence. Yet, he overcame each ordeal, scaled the National Assembly fence during the "night of martial law," and now, the people have entrusted him with the helm of the Republic of Korea. President-elect Lee began his life as a child laborer, unable to attend middle or high school. He later passed the qualification exam, entered university, and passed the bar exam to become a lawyer. Though he emerged from humble beginnings, he returned to the grassroots. He joined civic movements and entered politics. After several setbacks, he rose steadily through the ranks, first as mayor of Seongnam, then as governor of Gyeonggi Province. Writer Yoo Si-min once described him as a “work in progress.” The Lee Jae-myung of ten or five years ago is not the same as today. Still, the path he has walked laid the foundation for who he has become. Three pivotal moments define his journey. ① From Factory Boy to Civic Activist: A Life Changed by Roh Moo-hyun’s Lecture President-elect Lee was born as the seventh of nine children in a very poor family in a remote mountain village in Andong, North Gyeongsang Province. Due to extreme poverty, his family relocated to Seongnam, Gyeonggi Province, where he was unable to attend middle school and worked as a factory boy. He recalled in his autobiography, “During the six years I worked in factories, my body was covered with metal and chemicals, but I was nothing more than a nameless factory boy.” Eventually, he passed the college qualification exam and entered the law department at Chung-Ang University as a scholarship student. Though he had grades high enough to enter Seoul National University, he chose Chung-Ang for the financial support it offered. While preparing for the bar exam, he dreamed of more. In his web autobiography, he wrote, “I realized that through the bar exam, I could rise to a mainstream position in society—as a lawyer, judge, or prosecutor. I decided I needed to make another leap in status through the bar exam.” However, a lecture he attended in 1987 during his time at the Judicial Research and Training Institute altered his life trajectory. It was delivered by Roh Moo-hyun, then a renowned human rights lawyer. He recalled, “Listening to Roh Moo-hyun, I thought, ‘You can make a living without becoming a judge or prosecutor,’ and I began to dream of becoming a human rights lawyer.” His decision to live as a civic activist wasn’t solely because of that lecture. From his college days, he had felt a calling to contribute to society in some form. After failing the second round of the bar exam in his senior year due to a careless mistake, he took a year off to study again. He later reflected that this failure gave him a new perspective on life. He came to understand that the pain he had endured during adolescence was not a personal issue, but a structural and societal problem. It became a turning point that made him deeply aware of his historical responsibilities. In his autobiography, he wrote, “Had I passed the bar exam in my senior year, I would have become a judge or prosecutor, and I would have found ways to justify and not regret that choice. But after a year of retrying, I resolved to participate in social activism as a lawyer.” A journal entry from his time at the Judicial Research and Training Institute reveals that he had vowed to dedicate his life to civic activism upon seeing the oppression of workers. After completing his training, he ended a brief stint as a probationary prosecutor in Andong and opened a law office in front of Seongnam City Hall in 1989, entering the lives of ordinary citizens. In 1994, he joined the civic group “Seongnam Citizens’ Alliance” as deputy secretary-general and also worked with Lawyers for a Democratic Society (Minbyun). The 2004 campaign to establish Seongnam City Hospital became a turning point that led him into politics. He strongly protested with citizens after a resident-initiated ordinance, backed by 20,000 Seongnam citizens, was rejected in just 47 seconds by the ruling Grand National Party in the city council. He was indicted for obstructing official duties and went into hiding for five days in a small prayer room in the basement of a local church. It was in that church basement that he decided, “I’ll enter politics to create the society that citizens want.” Eventually elected as mayor of Seongnam, his first pledge was to build Seongnam City Medical Center. Even after resigning as Gyeonggi governor in October 2021, his first visit was to that very hospital. ② Surviving Prosecution, Indictments, and Death Threats President-elect Lee survived it all. Though he repeatedly faced prosecutorial investigations and indictments that threatened to end his political life, he grew in stature through it all. He was indicted in eight separate cases before becoming president, and faced five trials simultaneously during the campaign. Even a single conviction could have ended his political career, let alone his presidential bid. Yet he endured the countless investigations and trials, and his supporters became more united. Even during his time as governor, he nearly crossed the “Jordan River.” Prosecutors indicted him for spreading false information during the 2018 gubernatorial election. The appeals court sentenced him to a KRW 3 million fine, which would have annulled his election. But the Supreme Court overturned the ruling in July 2020, allowing his return. His greatest crisis came in September 2023. Prosecutors sought an arrest warrant for charges including perjury, preferential treatment in the Baekhyeon-dong project, and illicit payments to North Korea. Then-Democratic Party leader Lee went on a hunger strike to protest what he saw as unjust investigations and urged his colleagues to reject the motion to lift his immunity. However, dissenting votes within his own party allowed the motion to pass the National Assembly. It was his biggest political crisis. The image of him entering the court leaning on a cane for his arrest warrant hearing—after the toll of the hunger strike—was one of the most critical moments of his political career. He seemed like a candle in the wind. But the court rejected the arrest warrant, and he returned once again. Lee thanked the judiciary, calling it “a clear proof that the court remains the final bastion of human rights.” Even during the impeachment crisis of former President Yoon Suk-yeol, Lee faced challenges. In a case over golf-related campaign photos, a district court found him guilty and sentenced him to probation, which could have barred him from running for office. However, the appeals court overturned the decision and found him not guilty on all charges. That was not the end. On May 1, the Supreme Court’s full bench sent the case back for retrial with a guilty ruling. The court said all 12 justices read through the 60,000-page case file in just four days. However, the Seoul High Court delayed the retrial until after the election, allowing Lee to run for president. ③ Scaling the National Assembly Fence on the Night of Martial Law President-elect Lee stood in front of the National Assembly fence on the night of December 3, 2024. It was dark, and no one knew when soldiers might appear. Then-President Yoon Suk-yeol had declared martial law that day, seemingly out of nowhere. In his autobiography “The People Do It in the End,” published in April, Lee recalled that night, writing, “I blurted out ‘He’s insane’ and urgently typed just three words—‘To the Assembly’—into the Democratic Party’s Telegram chatroom.” Riding in a car driven by his wife, Kim Hye-kyung, Lee headed to the National Assembly. Thinking it was vital to inform citizens as quickly as possible, he began a live stream on his YouTube channel “Lee Jae-myung TV.” In his autobiography, he recalled the broadcast that began with “Citizens of Gwangju,” remembering the weeping families of the May 18 Gwangju Massacre victims “branded into my heart.” He wrote, “How could a few lawmakers stop armed soldiers? If I’m arrested, at least citizens can witness it if I’m live-streaming.” His climb over the Assembly wall was broadcast live on YouTube. At the time, “Lee Jae-myung TV” had around 1.07 million subscribers, but the video was viewed more than 2.4 million times by the morning of December 4, 2024. Thanks to Lee’s fence climb and the mobilization of both Democratic Party and some People Power Party lawmakers, the Assembly barely managed to repeal Yoon’s martial law. Afterward, Lee declared, “Yoon Suk-yeol is no longer the president,” and began taking control of the political narrative. Although the subsequent political turbulence continued—due to the failure of Yoon’s impeachment, his release, and delays by the Constitutional Court—Lee effectively led the country through the six-month crisis. #LeeJaeMyung #KoreanPolitics #2025Election #DemocraticParty #SouthKoreaPresident #YoonSukYeol #MartialLaw #Prosecution #CivilActivism #PresidentialVictory
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- Kumho Petrochemical Emerges as Top Value Stock, Faces Growth Test
- Kumho Petrochemical has been included in the Korea Value-Up Index, a program led by the Korea Exchange to recognize companies with strong corporate value, solidifying its status as a leading value stock in the petrochemical industry. Park Jun-kyung, President of Kumho Petrochemical, now faces increased responsibility to not only expand the company’s specialty chemicals business and enhance shareholder returns, but also to fend off any future threats to management control. On June 3, Kumho Petrochemical announced plans to further boost its corporate value following its inclusion in the Korea Value-Up Index the previous day. The Korea Value-Up Index is part of the Korea Exchange’s initiative to channel capital toward companies with strong fundamentals. Among major petrochemical firms, Kumho Petrochemical was the only one to be selected. Companies are chosen for the index based on profitability, shareholder return policies, market valuation, capital efficiency, and their disclosure of value-up strategies. Kumho Petrochemical met the criteria through its share buybacks, share cancellations, and public commitment to enhancing corporate value. Between 2021 and 2025, the company repurchased 11,496,238 common shares and canceled 7,952,404 of them, worth approximately KRW 472.0 billion (US$ 328.2 million). This means the company bought back about one-third of its 34,411,991 total shares and canceled 70% of those repurchased. In February, Kumho Petrochemical also unveiled a “Corporate Value Enhancement Plan,” which outlined key goals such as a 6% annual sales growth rate, a return on equity (ROE) of over 7% by 2026, and maintaining a shareholder return ratio of 30–40% of net income on a standalone basis through 2026. The company also laid out three main strategies for growth: strengthening eco-friendly automotive solutions, expanding bio and sustainable materials, and accelerating the shift to high-margin specialty products. With these efforts, Kumho Petrochemical became the only major petrochemical company added to the Korea Value-Up Index during the regular review cycle. A company representative stated, “Our long-standing efforts to enhance corporate value have been recognized,” adding, “We will continue expanding shareholder returns based on our three growth strategies.” However, industry insiders point out that such proactive policies may be driven by the need to defend against internal threats to management. Park Jun-kyung’s cousin, Park Chul-wan, a former executive at Kumho Petrochemical, challenged the leadership in shareholder meetings in 2021, 2022, and 2024, opposing Chairman Park Chan-koo—Park Jun-kyung’s father—through a series of shareholder proposals. This so-called “nephew rebellion” centered around demands related to shareholder value, such as higher dividends and increased share cancellations. In 2021, Park Chul-wan proposed a dividend of KRW 11,000 per common share and KRW 11,050 per preferred share, more than double the company’s actual proposal of KRW 4,200 and KRW 4,250 per share, respectively. In 2024, Park Chul-wan allied with Cha Partners Asset Management to submit proposals at the annual shareholder meeting that included amending the company charter to allow share cancellations by shareholder resolution alone, and canceling 50% of treasury shares by the end of 2024 and the remaining 50% by the end of 2025. Although these proposals were rejected due to concerns over future growth, the company responded by ramping up its corporate value efforts starting in 2021. When Park Jun-kyung was appointed internal director in 2022, he stated, “The management and all employees will unite to focus on the company’s core mission—enhancing shareholder value.” While Park Chul-wan did not make any shareholder proposals at this year’s meeting and has ended his alliance with Cha Partners, the management dispute may not be fully resolved. He still holds 8.82% of the company’s shares, making him the largest individual shareholder. According to Korea’s Financial Supervisory Service disclosures, Park Jun-kyung holds a 7.40% stake, while Chairman Park Chan-koo holds 6.92%. Park Jun-kyung’s younger brother, Vice President Park Ju-hyung, began actively buying shares late last year and has increased his stake to 1.08%. Still, the combined stake of Park Jun-kyung and related parties remains at around 16%. Given the potential for future challenges similar to the “nephew rebellion,” it is critical for Kumho Petrochemical to strengthen its base of friendly shareholders through enhanced shareholder returns. To fund these returns, Park Jun-kyung is expected to intensify efforts to grow the company’s high-margin specialty chemicals business. This year, he completed expansions of EPDM (ethylene propylene diene monomer) and MDI (methylene diphenyl diisocyanate) production. Last year, the company boosted its nitrile butadiene (NB) latex capacity from 710,000 tons to 940,600 tons. The NB latex expansion is expected to generate significant benefits, especially as the U.S. imposes higher tariffs on Chinese-made latex gloves. In synthetic rubber, the company has decided to convert general-purpose production lines to SSBR (solution styrene-butadiene rubber), a high-value, eco-friendly product used in electric vehicle tires. In advanced materials, Kumho Petrochemical established a 360-ton capacity for carbon nanotube (CNT) production last year and is expected to begin full-scale commercial production this year. CNTs, which enhance electrical conductivity, are used in batteries and could help boost the company’s share in the secondary battery market. Thanks to its specialty focus, Kumho Petrochemical stood out as the only one among Korea’s “Big Four” petrochemical firms to post strong earnings in the first quarter. In Q1 2024, Lotte Chemical recorded an operating loss of KRW 126.6 billion (US$ 88.1 million), LG Chem lost KRW 56.5 billion (US$ 39.3 million) in its petrochemical division, and Hanwha Solutions posted a KRW 91.2 billion (US$ 63.4 million) loss in its chemical segment. Jeon Yu-jin, a researcher at iM Investment & Securities, said, “Kumho Petrochemical is showing the most stable performance in the petrochemical sector,” adding, “It’s a company investors can count on across all fronts—market conditions, performance, financial structure, and shareholder policy.” #KumhoPetrochemical #KoreaValueUpIndex #ParkJunKyung #shareholderreturns #specialtychemicals #CNT #NBlatex #EPDM #SSBR #managementdispute
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- Salesman No.1 Kang Seong-muk Eyes Hana Financial Chair with Sales DNA
- “Salesman No.1.” That’s the phrase proudly displayed on the business card of Kang Seong-muk, CEO of Hana Securities. It’s also a favored term within Hana Securities to describe Kang, a reflection of both his identity and pride as the top sales expert within Hana Financial Group. This identity also serves as a keyword that encapsulates Kang’s management style. He places a strong emphasis on field operations and direct communication with customers. On March 26, 2025, he even answered customer calls himself, taking part in a company event called “Customer Voice Experience Day.” Since joining Hana Bank in 1993, Kang has built his expertise in field-oriented roles, including Head of the Sales Support Group and Head of the Central Sales Group. He has consistently grown as a person deeply embedded in sales. Kang is also emerging as a strong contender in the race for the next chairman of Hana Financial Group. In December 2024, he officially stepped into the race after being shortlisted as an internal candidate by the Chairman Candidate Recommendation Committee, alongside current Chairman Ham Young-joo and Vice Chairman Lee Seung-yeol. With Chairman Ham’s term not ending until March 2028, how Kang leads Hana Securities could become a critical factor in the group’s next leadership decision. ◆ The Gateway to the Chairmanship: Mega IB License and Profit Recovery Two key items are considered decisive in the race for Hana Financial Group’s next chairman: obtaining a mega investment bank (IB) license and achieving a turnaround in performance. On April 9, the Financial Services Commission announced its “Plan to Enhance Corporate Finance Competitiveness in the Securities Industry,” stating that it would accept applications in the third quarter of this year to designate comprehensive investment firms with KRW 4 trillion (US\$ 2.8 billion) and KRW 8 trillion in capital based on current requirements. A mega IB license is granted to securities firms with capital exceeding KRW 4 trillion (US\$ 2.8 billion), allowing them to raise and operate funds up to twice their capital through short-term notes. This enables expansion into high-return sectors like corporate finance and global infrastructure investment. For Hana Securities, securing this license is a crucial step toward transforming its revenue model. If Kang has his sights set on the chairmanship, this achievement is seen as a strategic milestone he must reach. Hana Securities already meets the capital requirement for the mega IB license, with capital of KRW 5.961 trillion (US\$ 4.1 billion) as of the end of 2024. However, a blemish remains. The Financial Supervisory Service imposed a fine of around KRW 3 billion (US\$ 2.1 million) and an institutional warning after discovering the company had recycled bonds in wrap accounts and money trust accounts. Such warnings are classified as serious disciplinary actions and restrict new business ventures for a year. Nevertheless, some believe the penalty may not pose a significant obstacle to obtaining the license. The fact that the penalty was downgraded from an initially expected business suspension by two levels is seen as a positive signal. ◆ A Return to Profit in 2024, But the Road Is Still Long Kang’s first year as CEO in 2023 was not an easy one. That year, Hana Securities recorded an operating loss of KRW 366.7 billion (US\$ 255.1 million) and a net loss of KRW 288.9 billion (US\$ 200.9 million), primarily due to defaults in real estate project financing (PF). Kang quickly restructured the portfolio, focusing on asset management and traditional corporate finance. Moving away from a real estate-heavy model to a more balanced business structure, the company achieved a turnaround in 2024 with KRW 141.9 billion (US\$ 98.7 million) in operating profit and KRW 223.9 billion (US\$ 155.8 million) in net profit on a consolidated basis. Still, considering the high expectations Hana Financial Group has for Hana Securities, some view this as only a “partial success.” Chairman Ham has consistently emphasized strengthening the group’s non-banking sector. Yet in 2024, Hana Securities’ net profit was just one-fifteenth that of Hana Bank. Hana Bank, a core affiliate of Hana Financial Group, posted KRW 4.5469 trillion (US\$ 3.2 billion) in operating profit and KRW 3.3686 trillion (US\$ 2.3 billion) in net income in 2024. ◆ Leadership Expansion Through Organizational Culture Reform In the financial industry, Kang’s customer-centric philosophy—rooted in his identity as a salesman—is seen as a potential driving force behind Hana Securities’ performance improvement. Kang is working to embed his “salesman spirit” throughout the company. At the beginning of 2025, it was reported that all executives were instructed to include “Salesman” on their business cards, following Kang’s example. Hana Securities is trying to improve its business portfolio by reducing the proportion of real estate finance and increasing its focus on asset management—a field where direct customer contact is essential. It’s a perfect stage for Kang’s philosophy to shine. In December 2024, the company launched the WM Innovation Division as a control tower for sales and reorganized the PWM Sales Division to provide tailored services for high-net-worth clients. It also established a Retirement Sales Office to expand pension-related services. Sales has truly become embedded in every aspect of the organization. An industry insider remarked, “Kang Seong-muk not only leads Hana Securities but also bears the task of proving himself as a leader for Hana Financial Group. It remains to be seen what changes his leadership—anchored in the identity of a salesman—will bring to Hana Securities.” #KangSeongmuk #HanaSecurities #HanaFinancialGroup #SalesLeadership #MegaIB #FinancialTurnaround #NonBankingExpansion #CustomerCentric #AssetManagement #KoreanFinance
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- GS E&C Targets Profit Recovery—Huh Yoon-hong Bets on GS Inima Sale
- GS E&C is projected to recover its quarterly operating profit to pre-Incheon Geomdan accident levels from the second quarter of 2023. CEO Huh Yoon-hong of GS E&C is working to improve the company’s financial structure by pursuing the sale of its water treatment subsidiary, GS Inima, which is estimated to be worth up to KRW 2 trillion (US$ 1.44 billion). If the sale of GS Inima is successful, it is expected to serve as a foundation for enhancing GS E&C’s bidding competitiveness in urban redevelopment projects—a key focus for CEO Huh. According to sources inside and outside GS E&C on May 28, the company is expected to see a clear trend of profitability improvement starting from the second quarter. According to financial information provider FnGuide, major securities firms forecast that GS E&C will record consolidated revenue of KRW 3.22 trillion (US$ 2.32 billion) and operating profit of KRW 100 billion (US$ 72.1 million) in the second quarter. This would be a 2% decline in revenue compared to the same period last year, but a 17% increase in operating profit. The projected operating margin is 3.1%, up 0.3 percentage points from a year ago. GS E&C explained that the increase in operating profit for the second quarter will be due to the reflection of contract cost increases at redevelopment sites where construction cost disputes had occurred, and a structural reduction in the share of past high-cost projects. On this day, some securities firms even suggested that GS E&C could significantly exceed market expectations (consensus) for the second quarter. IBK Investment & Securities projected GS E&C’s second-quarter operating profit to surpass KRW 150 billion (US$ 108.2 million). According to GS E&C, this analysis is based on the fact that additional costs amounting to KRW 130.8 billion (US$ 94.3 million) from the Maple Xi and Cheolsan Xi The Heritage projects will be reflected in second-quarter results, along with stronger-than-expected earnings from the Thu Thiem development project in Vietnam. A quarterly operating profit of KRW 150 billion (US$ 108.2 million) would mark the first time GS E&C has exceeded that level since the first quarter of 2023, before the collapse of an underground parking lot at an Incheon Geomdan apartment site in April 2023. Since recording KRW 158.9 billion (US$ 114.6 million) in consolidated operating profit in Q1 2023, GS E&C has failed to exceed KRW 100 billion (US$ 72.1 million) in any quarter. After becoming CEO of GS E&C, Huh Yoon-hong focused on cost restructuring at construction sites, brand renewal for restoring trust, and concentrating on core competencies, especially in housing. These efforts now appear to be bearing fruit in terms of performance. While the construction industry is highly focused on nuclear power plant projects—both large-scale and small modular reactors (SMR)—and large-scale development projects, GS E&C has shown relatively little activity in these areas. In this context, recovering operating profit to pre-accident levels through housing projects becomes the top priority for CEO Huh. With a strong likelihood of a clear upward trend in operating profit, CEO Huh is expected to further accelerate efforts to improve the financial structure through the sale of GS Inima. Moreover, the GS Inima sale is viewed as more than just a financial restructuring—it is also considered a key factor for enhancing bidding competitiveness in future urban redevelopment projects. GS E&C is currently pursuing a full sale of its 100% stake in GS Inima to TAQA, a state-owned energy company in the United Arab Emirates (UAE), as a potential buyer. The sale of GS Inima, which had seen little progress for about a year, has gained momentum in 2024 with the emergence of identified buyers and the start of the second round of due diligence. According to overseas media including MEED, a Middle Eastern business publication, GS Inima’s total corporate value is estimated at around KRW 2 trillion (US$ 1.44 billion). With the KRW 2 trillion (US$ 1.44 billion) sale of GS Inima, GS E&C is expected to significantly improve its financial structure by sharply lowering its debt ratio. The securities industry anticipates that GS E&C’s standalone debt ratio could drop from 212% at the end of Q1 to the 160% range. This would return the ratio to near the end-of-2022 level of 158%, after staying above 200% since 2023. In addition, the company is expected to recover a significant portion of its standalone net debt ratio, which rose from 23% at the end of 2022 to 54% at the end of Q1 2024. The net debt ratio represents the proportion of net debt to total capital. If GS E&C's financial stability improves and leads to a credit rating upgrade, it could boost its competitiveness in future urban redevelopment bidding wars such as in Apgujeong and the Seongsu Strategic Redevelopment Zone. GS E&C’s credit rating for unsecured bonds was downgraded from A+ to A in February 2024 following the Geomdan accident. The downgrade was primarily due to increased business and financial volatility and debt burden resulting from the accident and subsequent cost adjustments. However, maintaining solid business performance and reducing debt are key factors that could lead to a credit rating upgrade. If the credit rating improves, GS E&C can offer lower guarantee rates during bidding, providing better financial terms to redevelopment and reconstruction cooperatives. In major bidding competitions, such as the redevelopment of Hannam District 4 in Yongsan-gu, Seoul, selected in January, and the currently contested redevelopment of Yongsan Maintenance Base Area Section 1, construction companies are actively offering aggressive financial packages to win over cooperative members. GS E&C is currently focusing on winning the redevelopment project in Seongsu District 1 within the Seongsu Strategic Redevelopment Zone and is also exploring opportunities in the Apgujeong reconstruction zone. Notably, the redevelopment of Seongsu District 1, which is also attracting interest from Hyundai E&C and HDC Hyundai Development Company, may serve as CEO Huh’s debut bid in the urban redevelopment market. Jung Hyun Cho, a researcher at IBK Investment & Securities, stated, “Among large construction companies with similar brand power and site management capabilities, credit strength will determine bidding competitiveness,” and added, “If GS E&C’s credit rating improves, it will likely become a core element in enhancing new project bidding power.” #GSE&C #HuhYoonhong #GSInima #FinancialRestructuring #OperatingProfitRecovery #UrbanRedevelopment #ConstructionIndustry #DebtRatio #CreditRating #KoreanConstruction
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- KT&G’s KRW 6 Trillion Milestone: A New Global Path Beyond Bang Kyung-man’s Predecessor
- “I will do my utmost to proactively lead innovation and seize future growth opportunities so that KT&G can rise as a global top-tier company.” This was what KT&G CEO Bang Kyung-man said in February 2024, after being confirmed as the company’s new CEO. And throughout 2024, CEO Bang proved his statement with real results. However, some say that the remaining two years of his term are far more important than the past year. This is because KT&G's 2024 performance is also evaluated as the result of the roadmap established by his predecessor, former CEO Baek Bok-in. ◆ KT&G’s Top Global Expert KT&G CEO Bang Kyung-man is considered one of the group’s top global strategists. From 2015, he led KT&G’s global division for about six years and spearheaded the company’s global strategy. During this time, the number of countries KT&G entered expanded from around 40 to about 100. He also succeeded in localizing strategies by building market-specific brand portfolios, which laid the groundwork for KT&G to surpass KRW 1 trillion (US$ 721 million) in overseas sales for the first time. He didn’t just increase the number of countries entered but tailored strategies for each market, achieving successful localization. This is why he is regarded as the person who best understood and executed the globalization of KT&G. ◆ A Successful Start to the ‘Bang Kyung-man Era’ in 2024, Leading a Rebound After Four Years The year 2024 marked Bang Kyung-man’s first official year as CEO. From the moment he took office, he instilled a global strategic mindset across the organization and achieved measurable results in his first year. KT&G recorded increases in both revenue and operating profit in 2024 compared to the previous year—a feat not achieved in four years. In 2024, KT&G posted consolidated revenue of KRW 5.9088 trillion (US$ 4.26 billion) and operating profit of KRW 1.1888 trillion (US$ 857 million). Compared to 2023, revenue increased by 0.79% and operating profit by 1.84%. In particular, the overseas business segment delivered remarkable results, with strong performance in cigarette exports helping to achieve record-high overseas sales. KT&G generated overseas sales of KRW 2.0731 trillion (US$ 1.49 billion) in 2024, a 15.4% increase from 2023. The experience and market insight that CEO Bang Kyung-man accumulated while leading the global division for years are now reflected in KT&G’s overall business performance. ◆ The ‘Bang Kyung-man Era’—The Real Evaluation Begins Now Of course, the success in 2024 cannot be attributed solely to CEO Bang Kyung-man’s leadership. Some analyses suggest that the results were based on the business portfolio established by former CEO Baek Bok-in over many years. Indeed, former CEO Baek consistently emphasized the importance of overseas business. When he took office in 2015, Baek stated, “We will focus on exploring emerging mega-markets through the overseas tobacco business to sustain growth.” At KT&G’s 30th anniversary celebration in March 2017, he stressed, “We will lead a second leap forward through exports and business innovation.” At the 35th regular general shareholders’ meeting in March 2022, Baek said, “We will maximize sales and profits through expansion of the e-cigarette overseas market and cost reductions,” adding, “We will focus the capabilities of overseas subsidiaries on revitalizing the conventional cigarette business in the Middle East and Asia-Pacific markets to generate results.” Therefore, the increase in KT&G’s overseas sales in 2024 is seen by some as a continuation of the business direction pursued since Baek Bok-in’s tenure. ◆ Aggressive Investment in the Middle East and Africa—Will Bang Kyung-man Lead KT&G Into the KRW 6 Trillion Era? CEO Bang Kyung-man is leveraging his capabilities as a global strategist to expand KT&G’s international foothold through aggressive investment. In January 2025, Bang announced that KT&G had established a new subsidiary in Uzbekistan and would expand its plant in Türkiye. The plant expansion in Türkiye is particularly noteworthy. According to KT&G, this expansion will raise the annual tobacco production capacity in Türkiye to a maximum of 12 billion cigarettes. KT&G plans to use the Türkiye plant expansion to transform it into a hub for export networks extending from the Middle East to Africa and Latin America. The financial market anticipates that CEO Bang Kyung-man’s global management efforts will yield significant results. Hanwha Investment & Securities predicts that KT&G will achieve consolidated revenue of KRW 6.521 trillion (US$ 4.70 billion) and operating profit of KRW 1.358 trillion (US$ 979 million) in 2025. This represents a 10.4% increase in revenue and a 14.3% increase in operating profit compared to 2024. An industry insider stated, “KT&G has never surpassed KRW 6 trillion in revenue,” adding, “If CEO Bang Kyung-man can exceed that in 2025 as expected by the consensus and guidance, it will mark a major milestone in KT&G’s history.” #BangKyungman #KT&G #GlobalStrategy #KT&GRevenue #KT&GLeadership #TobaccoExports #TurkiyeFactory #KRW6TrillionEra #KoreanBusiness #GlobalCEO
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- SK’s Chey Tae-won Set to Cut Debt Below KRW 5 Trillion, But Hacking Crisis Threatens
- Chairman Chey Tae-won of SK Group has been continuing the group's asset rebalancing efforts by selling non-core assets for nearly two years, and the impact of this initiative is expected to become evident this year. SK, the group's holding company, is projected to reduce its net debt from over KRW 10 trillion (US$ 7.2 billion) at the end of 2024 to around KRW 5 trillion (US$ 3.6 billion) by the end of this year—cutting it nearly in half. However, the unexpected USIM hacking incident at SK Telecom, the group’s main cash generator, is raising concerns about potential financial instability. As of March 2025, SK had already reduced its net debt to KRW 8.1 trillion (US$ 5.8 billion) from KRW 10.52 trillion (US$ 7.6 billion) at the end of 2024, accelerating financial restructuring through rebalancing. In March, SK sold its specialty gas subsidiary SK Specialty for KRW 2.63 trillion (US$ 1.9 billion), and in the second quarter, it plans to sell its Pangyo Data Center to affiliate SK Broadband for KRW 506.8 billion (US$ 365.5 million). Recently, it also secured approximately KRW 300 billion (US$ 216.3 million) by selling a 64.81% stake in Vietnamese pharmaceutical company Imexpharm to China's Livzon Pharmaceutical Group. SK is also pushing to sell semiconductor wafer maker SK Siltron. It is currently negotiating with private equity firm Hahn & Company to sell its 70.6% controlling stake in SK Siltron. If the deal closes, SK is expected to secure over KRW 3 trillion (US$ 2.2 billion) in cash. SK Siltron is estimated to have a corporate value of up to KRW 5 trillion (US$ 3.6 billion). Choi Gwan-soon, a researcher at SK Securities, said, “If SK Siltron is sold within this year, SK’s net debt could fall from KRW 10.5 trillion (US$ 7.6 billion) at the end of last year to below KRW 5 trillion (US$ 3.6 billion) by year-end,” adding, “The inflow of cash from rebalancing could be partly used for shareholder returns.” This would be the first time in four years that SK’s borrowings fall below KRW 10 trillion (US$ 7.2 billion) since 2021. However, the hacking incident at SK Telecom could disrupt this progress in financial restructuring. SK Telecom’s management has said it is still difficult to quantify the financial impact of the breach, but concerns are rising about possible dividend reductions due to deteriorating earnings. SK holds a 30.57% stake in SK Telecom and received approximately KRW 230 billion (US$ 165.9 million) in dividends from it in 2024. Shin Eun-jung, an analyst at DB Financial Investment, stated, “We have lowered our 2025–2026 operating profit forecasts for SK Telecom by 10% each, reflecting factors like subscriber losses and compensation expenses.” She added, “Apart from the estimated KRW 45 billion (US$ 32.5 million) in revenue loss due to a net subscriber decrease of 250,000 to 350,000 in Q2 and KRW 100 billion (US$ 72.1 million) in USIM replacement costs, there may also be dealer compensation and regulatory fines.” If the government allows waiver of early termination fees for SK Telecom customers, the company could suffer losses amounting to several trillion won. Ryu Young-sang, CEO of SK Telecom, stated during a National Assembly hearing on May 8, “If termination fees are waived, up to 5 million subscribers could leave in a single month,” adding, “Including the value of three years’ worth of revenue per user, total losses could exceed KRW 7 trillion (US$ 5.0 billion).” This means SK Telecom may no longer be able to continue serving as SK Group’s main cash generator in the near future. The Ministry of Science and ICT is expected to decide on the waiver issue by the end of June. Public demand for increased investment in cybersecurity is also growing. SK Group invested about KRW 210 billion (US$ 151.5 million) in information security in 2023, but this only represents 5.3% of its total IT investment—far lower than the U.S. corporate average of 26%. Chairman Chey Tae-won is expected to hold a second-half business strategy meeting from June 13 to 14 to review the group’s rebalancing status and discuss response measures to the hacking incident, including investment plans for cybersecurity. Korea Ratings stated, “SK, as the group’s holding company, is easing its financial burden through the sale of non-core assets while enhancing its capacity to support affiliates,” adding, “However, financial pressure remains heavy as investment performance in newly launched businesses has continued to underperform.” #CheyTaeWon #SKGroup #SKTelecom #RyuYoungSang #FinancialRebalancing #CybersecurityCrisis #SKSiltronSale #DividendRisk #USIMHack #KoreanConglomerates
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- Cho Man-ho’s Calculated Alarm—The Unsettling Math Beneath Musinsa’s Shining Results
- As Musinsa, the fashion platform, surpassed KRW 1 trillion (US$ 721 million) in annual sales and reached the peak of its external growth, CEO Cho Man-ho has once again shifted direction. When Musinsa entered a company-wide emergency management system this past April, it sparked confusion and curiosity both inside and outside the industry. However, a closer look at the first-quarter report offers clarity. Simply put, while both revenue and profit increased, inventory swelled, and cash declined. Transaction volume fell short of internal targets, and weakened consumer sentiment added to growing uncertainty in performance. Outwardly, the company appears to be growing, but internally, complications are surfacing. Observers suggest that now is not the time for greater scale, but for reassessing Musinsa’s fundamentals. As of May 27, a comprehensive view of Musinsa's recent actions suggests that CEO Cho will likely focus more on financial stability than expanding external growth in 2024. In the first quarter of this year, Musinsa recorded consolidated sales of KRW 292.9 billion (US$ 211.2 million) and operating profit of KRW 17.6 billion (US$ 12.7 million), up 12.6% and 24.0%, respectively, from the same period last year. On paper, Musinsa still looks like a thriving company. But the internal structure behind those numbers tells a slightly different story. Warning signs are flashing when it comes to inventory, cash flow, and operational efficiency. Musinsa’s inventory is growing rapidly, while its turnover rate is slowing. As of Q1 2024, the inventory of products from partner brands reached KRW 240.2 billion (US$ 173.2 million), and Musinsa Standard's inventory stood at KRW 197.1 billion (US$ 142.1 million). Compared to the previous year, product inventory increased by 16.9% and brand inventory by 38.7%. The problem lies in poor sales performance. Inventory turnover dropped from 1.7 last year to 1.1 in Q1 2024, meaning it takes much longer to clear stock. This is particularly concerning given that Musinsa’s core customer base—people in their 20s and 30s—are highly sensitive to trends and typically ignore out-of-season products. Slow-moving inventory inevitably leads to discounting, which directly affects profitability and brand value. This rising inventory isn’t just a warehouse issue—it poses a complex risk to both Musinsa’s financial health and brand image. A Musinsa spokesperson explained, “The increase in inventory was influenced by the proactive stocking of Musinsa Standard products to support offline store expansion,” adding, “In Q1, the fashion industry typically experiences a temporary sales slowdown due to the arrival of spring and summer collections, which also contributed to the inventory growth.” Cash flow is also showing signs of strain. As of the end of Q1 2024, Musinsa’s cash and cash equivalents stood at KRW 425.9 billion (US$ 307.1 million), a decrease of about KRW 260 billion (US$ 187.4 million) from the end of last year. Operating cash flow turned negative, from KRW 456.9 billion (US$ 329.5 million) to -KRW 184.7 billion (US$ -133.2 million). Though Musinsa posted accounting profits, its cash is draining—reflecting a structural issue. As a fashion platform, Musinsa faces high logistics and operating costs due to managing numerous brands and products while meeting customer expectations for fast delivery and returns. The simultaneous increase in inventory and decrease in cash could potentially develop into a liquidity risk. Some of this is seasonal. In the fashion industry, Q4 typically sees high sales and large brand settlement payments, which are then paid in Q1—explaining much of the cash outflow. Still, the shift to negative operating cash flow remains a worrying signal. As such, Musinsa appears to be at a turning point. With its external growth trajectory set, the focus must now shift from speed to direction. CEO Cho seems to be confronting the next phase by prioritizing internal strength over continued expansion. Since April, Musinsa has been fully operating under its emergency management system, which is continuing into Q2. This includes weekend work for executives, organizational streamlining, and cost structure restructuring—efforts reflecting CEO Cho’s commitment to cutting inefficiencies while continuing key initiatives like offline expansion and global expansion. A Musinsa representative stated, “Uncertainty from weakened consumer sentiment is expected to continue in Q2, and we are maintaining our emergency management system as a preemptive crisis response.” Industry insiders view Musinsa’s actions not as simple austerity, but as a signal that the company is preparing for its IPO. Behind the scenes, Musinsa is reportedly working to select an underwriter. Companies preparing to go public must demonstrate more than just sales growth—they must also prove financial soundness and operational efficiency. Therefore, the current emergency management approach is seen as a proactive move toward internal restructuring. For platform businesses, early growth focuses on expanding scale and market share. But once a certain size is reached, true capability is measured by how efficiently assets are managed and converted into stable cash flow. A Musinsa spokesperson said, “Amid ongoing consumption stagnation and economic uncertainty, we are consistently pursuing cost efficiency through the emergency management system,” adding, “However, we will continue planned investments in key growth drivers such as offline distribution expansion and global market entry.” #Musinsa #ChoManho #FashionPlatform #EmergencyManagement #InventoryRisk #CashFlowCrisis #CorporateTurnaround #IPOPreparation #KoreanStartup #RetailStrategy
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- Did Choi Yoon-beom Defend Korea Zinc? Final Judgment Lies with the Court—and That Day Is Coming
- The conflict between Youngpoong and Korea Zinc over control of Korea Zinc's management concluded—at least temporarily—on March 28, 2025, when Choi Yoon-beom, Chairman of Korea Zinc, emerged victorious at the annual general shareholders’ meeting. However, with numerous lawsuits still pending and intense confrontation on key issues, the dispute has now entered a long-term phase. ◆ Main Issues and Outlook in the Korea Zinc vs. Youngpoong Conflict Although Korea Zinc’s side secured a victory at the March 2025 shareholders’ meeting, it still trails the Youngpoong–MBK alliance in shareholding percentage, and faces substantial legal risks. Above all, the legitimacy of Korea Zinc’s win at the shareholder meeting is on shaky ground. Their victory hinged on the court’s rejection of the Youngpoong–MBK alliance’s injunction to block a circular shareholding structure created by Korea Zinc just before the meeting. This court decision could be overturned in the future. In fact, a main lawsuit is underway regarding the restriction of voting rights held through the circular shareholding structure. If a higher court reverses the Seoul District Court’s injunction dismissal, Youngpoong–MBK could file a lawsuit to nullify the shareholders’ meeting results. The Korea Fair Trade Commission is also investigating whether Korea Zinc’s artificially formed circular shareholding structure violates the Fair Trade Act’s restrictions on circular ownership. Furthermore, the Youngpoong–MBK alliance (40.97% stake) still holds more shares than Choi Yoon-beom’s side (34.35% including friendly stakes). Depending on the court's decision regarding voting rights, the alliance could gain an advantage. Youngpoong–MBK believes they can strengthen control of the board over time, as they currently have 4 out of 15 directors. Chairman Choi Yoon-beom also faces multiple lawsuits and investigations. First, he may face civil and criminal liability for using KRW 1.8 trillion (US$ 1.3 billion) in borrowings to repurchase treasury shares as a means of defending managerial control. This raised Korea Zinc’s total debt by about KRW 2.6 trillion (US$ 1.87 billion) and pushed the debt ratio from 24.93% at the end of 2023 to 94.75% at the end of 2024. Youngpoong–MBK plans to sue for breach of fiduciary duty and seek damages over this issue. Chairman Choi is also under investigation for violations of the Capital Markets Act (unfair trading and false disclosure) and breach of duty related to a KRW 2.5 trillion (US$ 1.8 billion) rights offering announced on October 2024 and then withdrawn. The offering was seen as an attempt to reverse his loss in the tender offer battle, but became controversial due to its pricing disparity: treasury shares were repurchased at KRW 890,000 per share, while the rights offering was proposed at KRW 670,000. If the Korea Zinc board had prior knowledge of the treasury share repurchase and the capital raise for debt repayment, it could constitute false disclosure and unfair trading under capital market law. Youngpoong also filed a lawsuit in March 2024 to nullify a capital increase through a third-party allotment of new shares made by Korea Zinc to HMG Global, an overseas affiliate of Hyundai Motor Group. Youngpoong claims the issuance violated Korea Zinc’s articles of incorporation, which require “managerial necessity” for new share issuance. The first trial ruling is scheduled for June. If Korea Zinc loses, Chairman Choi risks losing part of his friendly shareholding base. ◆ The Complex and Fierce Battle Between Korea Zinc and Youngpoong The conflict began in earnest on September 12, 2024, when Youngpoong signed a shareholder agreement with MBK Partners to jointly exercise voting rights and transferred a controlling stake in Korea Zinc to MBK. Youngpoong sold slightly more than half of its Korea Zinc shares to MBK, effectively giving MBK majority control. This move was intended to secure an ally, take control of Korea Zinc, and restructure its governance. A public tender offer battle followed, during which the Youngpoong–MBK alliance secured 40.97% of the shares, significantly outpacing Choi Yoon-beom’s stake. Youngpoong immediately petitioned the court for permission to convene an extraordinary shareholders’ meeting to gain board control. In response, Korea Zinc devised a clever strategy. Through its Australian grandchild company Sun Metals Corporation (SMC), it acquired 10.33% of Youngpoong’s shares and established a circular shareholding structure: Korea Zinc → SMC → Youngpoong → Korea Zinc. Using Article 369, Paragraph 3 of the Commercial Act, which restricts mutual voting rights when two companies hold more than 10% of each other’s shares, Korea Zinc aimed to nullify Youngpoong’s voting rights. Youngpoong had previously broken its own circular shareholding structure in 2017 by acquiring a 10% stake in Youngpoong held by S-Rin Trading (now KZ Trading), following the amendment of the Fair Trade Act banning circular shareholding. Korea Zinc then succeeded in appointing its directors at an extraordinary shareholders’ meeting on January 23, 2025, while Youngpoong’s voting rights were restricted. As a result, the effective voting rights of Youngpoong–MBK dropped from 40.97% to 15.55%, leading to defeat in the vote. Youngpoong filed an injunction to suspend the meeting's effects. The court sided with Youngpoong, ruling that Article 369 does not apply to limited liability companies, and SMC, being one, was exempt. Thus, all resolutions except the adoption of cumulative voting lost validity. Youngpoong responded by breaking the circular structure again. On March 7, they established a company named YPC and contributed their 25.42% stake in Korea Zinc as a capital investment. Korea Zinc countered by reestablishing the circular shareholding. SMC transferred its Youngpoong shares to its parent company, Sun Metals Holdings (SMH), thus forming a new loop: Korea Zinc → SMH → Youngpoong → Korea Zinc. SMH is a 100% subsidiary of Korea Zinc and wholly owns SMC. Korea Zinc argued that SMH qualifies as a corporation under Australian law and is subject to voting rights restrictions. Ahead of the March 28 annual shareholders’ meeting, Youngpoong–MBK filed for an injunction to allow voting rights. They argued SMH did not hold any Youngpoong shares on the record date (December 31, 2024), and that Youngpoong was not a Korea Zinc shareholder at the time SMH acquired its shares—thus, mutual ownership rules did not apply. However, the court dismissed the injunction on March 27, 2025, allowing Korea Zinc to secure a victory at the shareholders’ meeting. The board was restructured from 5 Korea Zinc-aligned and 1 MBK–Youngpoong director to 11 Korea Zinc and 4 MBK–Youngpoong directors. The Seoul Central District Court upheld the legality of the circular shareholding structure created by Korea Zinc and dismissed Youngpoong’s arguments. The key issues were whether the voting rights restriction rules applied to foreign corporations and what the valid record date was. The court interpreted both in favor of Korea Zinc. The court ruled that although YPC was formed on March 7 and Youngpoong’s Korea Zinc shares were transferred to it, the applicable date for voting rights restrictions was the shareholders’ record date. At that time, Youngpoong still held the Korea Zinc shares, and thus the circular structure applied. It also concluded that Korea Zinc’s subsidiary SMH, though a foreign corporation, shared sufficient characteristics with a stock company for the Commercial Act’s voting rights restriction provisions to apply. #KoreaZinc #Youngpoong #MBKPartners #ChoiYoonbeom #CorporateBattle #ShareholdersMeeting #CircularShareholding #LegalDispute #CapitalMarketsLaw #GovernanceReform
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- With Global Sales Slowing, Hyundai’s Chung Eui-sun Pressed to Expand in China and Emerging Markets
- Diversifying sales markets has emerged as a key task for Hyundai Motor Group Chairman Chung Eui-sun. Although Hyundai Motor Group is showing strong sales performance in the United States—the world's second-largest car market—and India, the third-largest, overall global sales have stagnated due to a slowdown in European sales. Chairman Chung is also aiming to reenter the Chinese and Russian markets, but since those efforts are expected to take significant time to yield results, sales performance in emerging markets such as the Middle East and Southeast Asia is becoming increasingly important. According to industry sources on May 26, analysts believe that penetrating emerging markets is essential for Hyundai Motor Group to rise to the top of the global automobile market. According to the Korea Automotive Technology Institute (KATECH), Hyundai Motor Group sold 1.63 million vehicles worldwide in the first quarter of this year, maintaining third place behind Toyota and Volkswagen. While it retained its ranking, the sales volume dropped by 0.3% compared to the first quarter of last year. Unlike Toyota and Volkswagen, which saw increases of 3.4% and 1.7% respectively, Hyundai Motor Group was the only one among the global top three automakers to experience a decline. Given that global car sales reached 22.17 million units in Q1, up 4.6% year-over-year, Hyundai’s decline is all the more disappointing. This drop is largely attributed to poor performance in China. Global automotive sales growth in Q1 was led by China and the United States. China recorded 7.46 million units sold, up 11.1% year-over-year, and the U.S. sold 4.02 million units, a 3.3% increase. Hyundai Motor Group posted solid Q1 results in the U.S., selling 419,912 vehicles—its highest-ever first-quarter U.S. sales. This is also the first time the group surpassed 400,000 units in Q1 U.S. sales. On the other hand, Hyundai’s business in China continues to struggle. After reaching a peak of 1.13 million units sold in 2016, sales were nearly halved the following year due to China’s retaliation for the THAAD missile deployment. In 2023, Hyundai sold only 125,000 vehicles in China, and its market share fell to 0.6%, with a 43.8% decline compared to the previous year. In Q1 2024, combined Hyundai and Kia sales in China dropped nearly 30% year-over-year. In April, Hyundai unveiled the "Eleczo," its first electric SUV exclusively for China, reigniting its effort to revive its Chinese business. The company plans to build a new EV lineup starting with the Eleczo, making its success crucial to Hyundai’s China strategy. However, some predict a tough road ahead, as Hyundai may struggle to match the price competitiveness of Chinese brands. The Eleczo is a compact electric SUV—a segment known for fierce competition in China. In Europe, where Hyundai still ranks fourth in sales, performance has also weakened. According to the European Automobile Manufacturers’ Association (ACEA), Hyundai Motor Group sold 267,234 units in Europe (EU + EFTA + UK) in Q1 2024, down 4.0% from the same period last year. Market share also declined by 0.3 percentage points to 7.9%. Reentry into the Russian market has also become uncertain. According to Reuters, Russia’s State Duma Committee on Property is pushing legislation to block companies that left assets in Russia from reentering the market. With uncertain prospects in both Russia and China, sales performance in emerging markets has become even more vital. Kia has launched its first-ever pickup truck, the Tasman, to tap into the Oceania market. The Tasman will officially debut in Australia in July and New Zealand in August. Kia CEO Song Ho-sung recently visited both countries to assess local market conditions, indicating how seriously Kia is taking its expansion into Oceania. Kia also plans to expand Tasman sales into the Middle East and will begin selling in African markets like Mozambique starting in June. Hyundai is showing good results in Vietnam. Last year, Hyundai sold 67,168 vehicles in Vietnam. Although this was a 0.4% decrease from 2023, it maintained its top market share at 16.5%. Toyota sold 66,576 units, ranking second. By consistently outselling Toyota—a brand traditionally strong in Vietnam—Hyundai is turning Vietnam into a strategic base for its Southeast Asian market expansion. #HyundaiMotorGroup #ChungEuisun #globalautosales #Chinaautosales #USautomarket #KiaTasman #Vietnammarket #EleczoEV #emergingmarkets #automotiveindustry
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- Hanwha Life Regains 'Big Three' Status with Moody’s Upgrade—Will Yeo Seung-joo Accelerate Global Investor Outreach?
- Yeo Seung-joo, Vice Chairman and CEO of Hanwha Life Insurance, has led internal reforms that are now translating into credit rating upgrades from domestic and international credit rating agencies, raising expectations for a rebound in capital adequacy in the second half of the year. Hanwha Life showed disappointing trends in both net profit and capital soundness from the second half of last year through the first quarter of this year. As credit rating upgrades can boost institutional investors’ confidence, there is an assessment that Hanwha Life’s financing conditions for global investors have practically improved. According to the results released on the 26th by major credit rating agencies, not only the top three domestic credit rating agencies—Korea Ratings, Korea Investors Service, and NICE Investors Service—but also international agencies Fitch and Moody’s have upgraded Hanwha Life’s credit rating. The insurance industry sees this as the result of a shift in credit rating agencies’ evaluation standards, which now weigh long-term risk management capabilities and consistent profitability more heavily than short-term performance. In fact, credit rating agencies cited the company’s shift toward a protection-type insurance-centered portfolio, strengthened risk management, and stable capital policies as the key reasons for the upgrade. Moody’s stated in its evaluation, “With the strong sales capabilities of Hanwha Life Financial Services, the largest corporate insurance agency (GA) in Korea, the company is shifting toward a profitability-focused product portfolio,” adding that “a steady inflow of new contracts and minimized duration gap will help maintain a stable capital adequacy ratio (K-ICS) even amid interest rate risk.” This positive assessment appears to stem from Vice Chairman Yeo Seung-joo’s consistent focus on capital management and his efforts to restructure the product portfolio to restore profit-generating capacity. Yeo is credited with quickly establishing the separation of product development and sales through a subsidiary-type GA system, enhancing sales competitiveness and strengthening the profit-focused management framework. His strategy is seen as one of the driving forces behind the recent rating upgrades. The upgrade is particularly significant considering it came at a time when Hanwha Life had not issued a dividend last year, raising concerns about its capital management. In the first quarter of this year, Hanwha Life recorded stable insurance profit, but investment profit declined sharply due to increased financial market volatility. Its risk-based capital (RBC) ratio, a key measure of capital adequacy, was down 8.7 percentage points from the end of last year and was only slightly above the Financial Supervisory Service’s recommended 150% threshold. Since insurers effectively need to maintain an RBC ratio well above 150% to be able to pay dividends, capital adequacy remains a key concern in the market. At the Q1 earnings conference call, Kim Dong-hee, Head of Finance at Hanwha Life, stated, “Due to the provisioning of surrender value reserves, our dividendable profits are somewhat limited,” and added, “We will do our best to enhance shareholder value with the goal of resuming dividend payments.” In this context, the credit rating upgrade may lead to improved capital raising conditions. As institutional investors often rely on credit ratings for investment decisions, the upgrade could realistically improve capital inflows. Observers also note the significance of narrowing the credit rating gap between Hanwha Life and other major Korean life insurers. Until now, among the so-called “Big Three” life insurers in Korea (Samsung Life, Hanwha Life, and Kyobo Life), only Hanwha Life had a credit rating one notch below the others. This was mainly due to its traditional focus on savings-type insurance products, which are less profitable under the new IFRS 17 accounting standards, and slightly lower evaluations in capital risk management. Despite being a top-tier insurer, the relatively low credit rating had been a constraint in areas such as capital raising and attracting investments. With the recent upgrade, Hanwha Life is now on equal footing with other major insurers, removing some of the disadvantages it previously faced in securing funding and investments. Some speculate that Hanwha Life may now expand efforts to attract global investors. In its press release on the rating upgrade, Hanwha Life stated, “We will continue to build strong trust with customers and both domestic and international investors as Korea’s leading global insurer.” This reference to “international investors” is interpreted as a sign of future outreach. An industry official commented, “Due to the nature of the life insurance industry, it is rare to see formal overseas investor relations (IR) activities,” but added, “Many overseas institutional investors participate in domestic stocks, so the credit rating improvement is a positive signal for attracting investors.” #HanwhaLife #YeoSeungjoo #creditratingupgrade #capitaladequacy #KICS #IFRS17 #insuranceportfolio #GAstrategy #MoodyFitch #globalinvestors
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- Who Will Lead Samchully Group's Third-Generation Succession—Nephew Yi Eun-baek or Daughter Yi Eun-seon?
- Samchully Group is a conglomerate primarily focused on the city gas business, and it has no relation to Samchuly Bicycle, which manufactures bicycles. Their English names are also different: Samchully Group uses “Samchully,” while Samchuly Bicycle uses “Samchuly.” Among the general public, Samchuly Bicycle is more well-known, but the two companies differ greatly in scale. Samchully Group is a large corporation with assets of KRW 9.66 trillion (US$ 6.97 billion), whereas Samchuly Bicycle is a mid-sized company with assets around KRW 300 billion (US$ 216.3 million). Samchully Group is a massive business group with 81 affiliates, including Samchully, and ranked 53rd in the 2025 Korean business group rankings. The group’s official leader (owner) is Honorary Chairman Yi Man-deuk, the second-generation member of the founding family. Yi stepped back from frontline management in 2016 when he resigned from all executive board positions across affiliates. He currently oversees the group’s overall strategy and new business planning. The core city gas company, Samchully, is led by professional managers: Vice Chairman and co-CEO Lee Chan-ui and President and co-CEO Yoo Jae-kwon. Full-fledged third-generation management has yet to begin. The two most likely succession candidates are Yi’s nephew, Yi Eun-baek, President of Samchully, and his third daughter, Yi Eun-seon, Vice President of Samchully. Neither has joined the board yet and both are effectively being tested for their management capabilities. Samchully is currently in a transitional period, shifting from second-generation to third-generation leadership. ◆ Who Are Samchully Successor Candidates Yi Eun-baek and Yi Eun-seon? President Yi Eun-baek is the son of the late Yi Cheon-deuk, former Vice President of Samchully and the older brother of Honorary Chairman Yi Man-deuk. The late Vice President Yi passed away at the young age of 36 in 1987, leaving behind one son and two daughters. Yi Man-deuk’s support for Yi Eun-baek is believed to stem from family respect, as Eun-baek is the eldest grandson and might have been the rightful heir had his father lived. Yi Eun-baek is regarded as an expert in overseas business, having served as Head of Samchully's Americas and Global Business Divisions. He currently works as Head of Strategy at Samchully. Vice President Yi Eun-seon is the third daughter of Honorary Chairman Yi. While the eldest daughter Yi Eun-hee and second daughter Yi Eun-nam do not participate in management, Eun-seon is the only child actively working under her father. She previously served as Head of Future Business and New Business Divisions at Samchully and now leads the Future Business Division, focusing on exploring new business opportunities. At present, Yi Eun-baek appears to be ahead in the succession race. He owns 9.18% of Samchully’s shares, compared to Yi Eun-seon’s 0.67%, making him the largest shareholder—surpassing even Honorary Chairman Yi, who holds 8.34%. However, it is not impossible that the Honorary Chairman could favor his daughter. When combining his 8.34% stake with the combined 1.34% held by his two elder daughters, their collective stake could exceed Yi Eun-baek’s. Some speculate that the two could divide responsibilities and jointly manage the group. Still, at a critical time when identifying new growth engines is essential, the person who can proactively drive positive change is likely to gain the upper hand. A Samchully representative told C Journal, “Both have been working hard in the company for many years, and nothing has been decided yet regarding the succession structure.” #Samchully #citygasbusiness #corporatesuccession #YiMandeuk #Koreanconglomerates #leadershiptransition #YiEunbaek #YiEunseon #SamchullyGroup #Koreanfamilybusiness #leadershipsuccession #Samchullystrategy #Koreanconglomerates #familyownership #newbusinessdevelopment #gasindustryKorea
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- Misguided Customer Service? Hana Securities Stunned by Branch Investigation Over Leaked Probe Details
- Kang Seong-muk, Vice Chairman of Hana Financial Group and CEO of Hana Securities, is struggling with a series of internal control controversies. According to coverage compiled on May 23, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency conducted a raid on May 21 targeting former branch manager A of a Hana Securities branch. A is suspected of leaking investigation information, such as the issuance of a financial seizure warrant for account tracking, to a suspect currently under police investigation while serving as the branch manager. The charge falls under the Financial Investment Services and Capital Markets Act. The current branch manager B of the same branch is also under suspicion for the same charge. Police raided both the branch and Hana Securities’ headquarters last month. A Hana Securities official stated, “It is true that we are under police investigation,” but added, “Since the matter is under investigation, we cannot disclose further details.” This is not the first internal control incident involving Hana Securities. In January 2024, Hana Securities received an “institutional caution” and a fine from the Financial Services Commission. The disciplinary action followed the Financial Supervisory Service’s discovery in December 2023 of illegal circular trading. At the time, a person in charge of managing bond-type wrap accounts and specific money trusts was found to have used new customers’ funds to cover maturing accounts or to have used the company’s proprietary funds to offset certain losses. Kang Seong-muk, who took office as Vice Chairman in 2023, upgraded the existing audit office to the Audit Headquarters after being reappointed at the end of last year. This move was intended to strengthen internal controls in anticipation of new regulatory frameworks such as the financial sector’s “responsibility map” initiative. However, these efforts may now seem in vain, as internal control issues have once again emerged, likely deepening Kang’s concerns. There is concern that even the turnaround to profitability achieved last year may be overshadowed. Hana Securities recorded a consolidated net profit of KRW 225.1 billion (US$ 162.3 million) in 2024, recovering from a net loss of KRW 292.4 billion (US$ 210.8 million) in 2023. Thanks to the improved performance in 2023, expectations rose at the beginning of this year for obtaining a megainvestment bank license and entering the issuance-based note business. Since the financial authorities announced guidelines for the designation of comprehensive investment firms in April, many believed the timing was right for licensing. Hana Securities’ acquisition of a megainvestment bank license is also a long-cherished goal for its parent company, Hana Financial Group. If the company succeeds in expanding into the issuance-based note business, it could become a major asset for Hana Financial Group, which is focusing on strengthening its non-banking sector. In fact, when Hana Financial Group reappointed Kang as Vice Chairman in 2024, it stated, “As he is responsible for the securities and asset management units, which are pillars of the group, he faces the task of improving the structure by easing business concentration and restoring management performance.” Kang’s New Year’s address, in which he pledged to secure “stable growth momentum,” is also seen as closely related. Kang stated, “Just as a steel axe can be sharpened into a needle—‘mabuwi-chim’ (磨斧爲針)—even seemingly impossible tasks can be achieved through persistent effort,” adding, “With that mindset, I will focus on discovering future growth drivers and strengthening the operational base of existing businesses to secure stable growth momentum.” #KangSeongmuk #HanaSecurities #internalcontrol #financialcrimes #policeinvestigation #HanaFinancialGroup #netprofit #megainvestmentbank #complianceissues #financialindustryKorea
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- From ‘Too Sexy’ Illustrator to Global Game Disruptor: How Kim Hyung-tae and Shift Up Shook the Industry
- Genesis 3, Magna Carta, and Blade & Soul. These games are deeply familiar to Korean gamers, and the common thread between them is that Kim Hyung-tae, CEO of Shift Up, was the illustrator. For “core gamers” who have been playing since the 1990s, the name Kim Hyung-tae is anything but unfamiliar. Kim first made his name as the illustrator of iconic domestic RPGs like the Genesis series and Magna Carta, becoming one of the rare “star illustrators” in Korea’s game industry. After the decline of Korean single-player PC games, he joined NCSoft and served as the lead art director for Blade & Soul. Even during the development of Blade & Soul, Kim Hyung-tae maintained his distinctive and provocative art style, which reportedly led to frequent clashes with NCSoft founder Kim Taek-jin. Ultimately, Kim left NCSoft and founded his own game studio, Shift Up, making his debut in the domestic mobile game market with Destiny Child. That game achieved moderate success and made Shift Up’s presence known. The follow-up, Goddess of Victory: NIKKE, achieved notable success not only in Korea but also in global markets like Japan. Riding this momentum, Kim Hyung-tae went on to lead the development of the AAA console action game Stellar Blade to global success. Shift Up was subsequently listed on the Korea Exchange (KRX) on July 12, 2024. ◆ The Illustrator Known for “Sexy Art” — How Kim Hyung-tae Built Shift Up There has always been a label attached to Kim Hyung-tae: “controversial for sexual imagery.” Since his early illustrator days, his unique style has often been criticized as “too sexy” or “provocative.” NIKKE was also at the center of controversy for its revealing character designs, and Shift Up’s first title, Destiny Child, was similarly criticized for the sexualized depictions of female characters. Kim Hyung-tae appears well aware of such criticisms. At the time of the Destiny Child illustration controversy, he wrote on his social media, “I’m just one of many illustrators who draw anatomically incorrect and sexy stuff that people either like or hate. I’ll keep drawing with joy and dedication, so I hope you’ll continue watching even if there are some disappointments.” Ironically, this “sexuality” controversy later became Shift Up’s most powerful weapon—specifically in the case of Stellar Blade. ◆ When Sexuality Becomes a Weapon: The Twist of Stellar Blade Following the success of NIKKE, Stellar Blade was developed as a AAA console action game under Kim’s direction. During development, the company signed a one-year exclusivity deal with Sony for release on the PlayStation 5, indicating Sony’s strong faith in the game’s potential. From the moment of its release, Stellar Blade drew global attention. Its stunning graphics, impactful combat, Kim’s signature aesthetic in character design, and a contrasting dystopian world left a strong impression on gamers. Stellar Blade received a user rating of 9.2 on global game review site Metacritic—on par with titles like Baldur’s Gate 3, The Legend of Zelda: Breath of the Wild, and God of War. Interestingly, despite its overwhelming user rating, the critic score (Metascore) was 81, categorizing it as a good but not top-tier masterpiece. Observers suggest the gap between critic and user scores stems from Kim Hyung-tae’s unique “style.” Recently, the global game industry has faced criticism for prioritizing rigid political correctness over fun, with major companies like Ubisoft (France), Blizzard, BioWare, and Naughty Dog (U.S.) cited as examples. Against this backdrop, Kim’s “sexy, beautiful, and bold” visuals provided users with a refreshing sense of liberation. For gamers, Stellar Blade became a symbol of resistance in the cultural battle over what is permissible and what is not. Still, the game’s success is not solely due to provocative visuals. Stellar Blade’s fusion of lyrical and sensual OST, tragic narrative, and highly refined combat system created a comprehensive experience. Its anime-friendly art style opens up wide opportunities for collaborations in animation and character-based games. The success of Stellar Blade symbolizes more than just the success of a single game for Shift Up. ◆ Bold Style, but Criticism of Sexual Objectification Persists Nonetheless, Kim Hyung-tae’s style has not escaped accusations of sexual objectification. French game review site IGN France’s journalist Ben Osola criticized Stellar Blade’s protagonist, Eve, saying she “looks like a sexually objectified doll drawn by someone who’s never seen a woman.” Editor-in-chief Erwan Lafleuriel also commented under the review, writing, “To those who confuse ‘sexy’ with ‘oversexualization’—hail the new Puritans.” However, the review faced a backlash from the global gaming community, with many mocking the comment about Kim, who is married, saying he’s “never seen a woman.” Eventually, IGN France issued an official apology regarding the review. Shift Up has shown signs of responding to such criticism. It was revealed that the in-game outfits for Eve were significantly less revealing compared to initial promotional images. ◆ DLC and the Next Title—Kim Hyung-tae’s Shift Up Is Just Getting Started Kim Hyung-tae and Shift Up are currently preparing a follow-up to Stellar Blade. A paid DLC and a Steam (PC platform) release are imminent. The next AAA title, tentatively titled “Project Witches,” has also been announced. NIKKE was recently launched in the Chinese market. Once dismissed for drawing “sexy” art, Kim Hyung-tae is now the CEO of a globally recognized console game company. Though he remains bold and provocative, Kim is simultaneously building the Shift Up brand through sincerity and emotional storytelling. A source in the gaming industry commented, “Kim Hyung-tae has always received diverse opinions. But there is no doubt that the identity of Shift Up is a clear reflection of his style.” #KimHyungtae #ShiftUp #Genesis3 #MagnaCarta #BladeAndSoul #StellarBlade #NIKKE #KoreanGameIndustry #gameillustrator #KoreanRPG
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- Lee Jung-hun’s Focus on Nexon’s ‘Vertical Expansion’: Why Kazan’s Success Matters
- “Over the next three years, we will focus on vertical expansion.” This is what Lee Jung-hun, Co-CEO of Nexon, said during a capital markets briefing held in Tokyo in September 2024. Lee’s concept of vertical expansion contrasts with horizontal expansion, which involves creating new IPs. Vertical expansion means leveraging existing, well-established IPs to expand across platforms, genres, and service regions. At the center of Lee’s vertical expansion strategy is the game “The First Berserker: Kazan” (hereinafter Kazan). Kazan is a AAA-level single-player action game for console and PC released on March 28 of this year. It is based on the IP of the online game Dungeon & Fighter and features the character “Kazan,” a great general from the original universe, as the protagonist. ◆ How ‘Kazan’ Proved the Potential of Lee Jung-hun’s ‘Vertical Expansion’ Strategy Kazan, upon its release, recorded 30,258 concurrent users on the global PC game platform Steam and ranked second on Steam’s list of top-selling products by the end of March. By the third week, it had climbed to 13th in cumulative sales and exceeded 130,000 concurrent viewers on Twitch. On global review site Metacritic, Kazan received a critic score (Metascore) of 83 out of 100, rated “Generally Favorable,” while user scores averaged 8.6 out of 10—similar in tone. Of the 16,298 total reviews on Steam, 14,759 (90.5%) were positive, earning it a “Very Positive” rating. Kazan’s global success holds special significance for Nexon and CEO Lee because it demonstrates that the characters and lore embedded in the Dungeon & Fighter IP resonate strongly with global gamers. In other words, Kazan has proven the vertical expansion potential of the Dungeon & Fighter IP. Dungeon & Fighter has long been influential in Korea, China, and broader Asia, but its reach in Western markets had been limited. Kazan succeeded in expanding the IP’s fandom to North America and Europe by satisfying existing users with world-building while offering new users immersive action and character experiences. This is precisely the core of what Lee Jung-hun refers to as vertical expansion—through new interpretations and character-driven narrative expansion, an IP can extend its influence into markets where it previously had little presence. ◆ “Make the Most of What You Have”—Confidence Built on Experience Lee Jung-hun is known within Nexon as an “IP expert” who has directly managed a variety of genres and IPs. He joined Nexon Korea in 2003 as a new employee and served as Head of the Neople Control Office in 2010, Head of the FIFA Division in 2012, and Head of the Business Division in 2014. At Neople, he worked on the Dungeon & Fighter IP; in the FIFA Division, he managed the FIFA IP; and from 2014, he was involved with Nexon’s diverse MMORPG IPs like HIT, Dark Avenger, AxE, and Overhit. His strategy of vertical expansion stems from this accumulated experience in IP utilization. His deep understanding of Nexon’s business direction and its IPs makes such a strategy feasible. Kazan’s success is a product of that experience. Despite the fact that the console platform, Western user base, and action genre were unfamiliar territory for Nexon, Lee succeeded in expanding the Dungeon & Fighter universe through this game. Industry insiders believe his next targets may be MapleStory or Mabinogi. Mabinogi, launched over 20 years ago in 2004, recently proved its staying power with the success of Mabinogi Mobile in Korea. MapleStory is a mega IP that has been played by over 250 million players worldwide. In 2020, it ranked 40th in global franchise revenue, according to TitleMax, a U.S. IP data provider. ◆ Vertical Expansion Isn’t the Only Answer—Why Dave the Diver’s Success Also Matters However, Kazan’s success doesn’t guarantee that all of Nexon’s IPs will replicate that success in the global market. Mabinogi’s fanbase largely consists of subculture enthusiasts, which limits its expansion potential. MapleStory, while more popular, is often criticized for having a relatively simple narrative compared to other global mega IPs. This is why some argue that Lee should continue investing in horizontal expansion—developing new IPs capable of succeeding in the global market, not just building on existing ones. In fact, Nexon achieved global recognition with “Dave the Diver,” a game developed by Mintrocket Studio. Dave the Diver was completely unrelated to any of Nexon’s existing IPs and succeeded on the strength of its unique concept and originality. It proved that a sense of the “unknown” still resonates strongly with global audiences. An industry insider noted, “Although Kazan achieved considerable success globally, many gamers do not recognize it as part of the Dungeon & Fighter IP. Just like with Dave the Diver, where people didn’t even know it was a Nexon title, creating completely new IPs to appeal to global gamers is also essential.” #LeeJunghun #Nexon #Kazan #verticalexpansion #DungeonAndFighter #NexonIPstrategy #consolegames #KoreanGamingIndustry
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- Hancom Accelerates AI Monetization, Kim Yeon-su Sets Sights on First KRW 200 Billion Software Milestone
- Kim Yeon-su, CEO of Hancom, is accelerating the expansion of the company’s artificial intelligence (AI) business by launching AI agent services following its AI solution offerings. Hancom’s AI business, built on its strong presence in the office software market, is expected to gain traction quickly and further drive performance growth. After significantly boosting software revenue last year, attention is turning to whether Kim can surpass KRW 200 billion (US$ 144.2 million) in software revenue for the first time this year through expanded AI offerings. According to Hancom on May 22, the company is preparing to launch “Hancom AI Agent” within the year to expand its AI-related software portfolio. Hancom AI Agent is based on the Model Context Protocol (MCP), a technology that connects AI models, tools, and data. It provides features such as document drafting, summarization, and decision-making support by integrating with various systems and software, including enterprise resource planning (ERP), electronic approval, and customer relationship management (CRM). The strength of Hancom AI Agent lies in its integration with Hancom’s existing software solutions. Hancom plans to enhance its AI document creation tool, “Hancom Assistant,” and link it to Hancom AI Agent. By embedding AI into its established software ecosystem, Hancom aims to quickly secure market adoption and create differentiated competitiveness. A Hancom representative told Business Post, “The AI business is not about cannibalizing the existing office market, but rather expanding revenue streams by enhancing existing services with AI.” Hancom’s AI strategy is regarded as highly effective, given the company’s stable position in the domestic office software market. Currently, Hancom holds a 30% market share in Korea’s office software market, second only to Microsoft Office, and has a solid foothold. In particular, Hancom software is effectively the standard tool in public institutions, suggesting the company has a more secure demand base than other firms launching AI agents. Hancom’s AI business expansion is expected to further boost software (SW) revenue and positively impact overall performance this year. Kim designated last year as the launch point of Hancom’s full-scale AI business and released a series of AI products including: the AI data software development kit “Hancom Data Loader,” the generative AI-based web office “Hancom Docs AI,” the AI Q&A solution “Hancompedia,” and the AI writing assistant “Hancom Assistant.” Thanks to this expanding AI product lineup, Hancom’s SW revenue rose from KRW 126.5 billion (US$ 91.2 million) in 2023 to KRW 171.2 billion (US$ 123.4 million) in 2024, a 35.3% increase. In the first quarter of this year, software sales reached KRW 47.6 billion (US$ 34.3 million), up 35.07% year-on-year, continuing the growth trend. If this momentum continues, Hancom is likely to surpass KRW 200 billion (US$ 144.2 million) in annual software revenue for the first time this year. The securities industry also projects that Hancom will maintain double-digit growth centered on its AI business. According to financial information provider FnGuide, Hancom is expected to post KRW 342.1 billion (US$ 246.6 million) in consolidated revenue, KRW 54.7 billion (US$ 39.1 million) in operating profit, and KRW 43.1 billion (US$ 31.1 million) in net profit this year. These figures represent year-on-year increases of 12.2%, 35.3%, and 207.8%, respectively. Park Jong-sun, a researcher at Eugene Investment & Securities, said, “The shift toward becoming an AI-centered company is emerging as a new growth engine that surpasses Hancom’s traditional identity,” and added, “Vertical expansion of the AI product lineup will allow Hancom to meet demand from both public institutions and private enterprises.” Lee Seung-hoon, a researcher at IBK Investment & Securities, commented, “The AI-driven business overhaul is proving effective,” and “AI is playing a clear leading role in Hancom’s growth and will accelerate its push beyond the limits of the office market into the global arena.” #Hancom #KimYeonsu #AIExpansion #HancomAIAgent #HancomAssistant #OfficeSoftware #KoreanSoftware #GenerativeAI #PublicSectorIT #SWGrowthStrategy
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- Governance Overhaul Sparked by Samsung Biologics Rekindles Focus on Lee Jae-yong's Power Play
- Samsung Biologics' decision to conduct a spin-off that fully separates its biopharmaceutical contract development and manufacturing organization (CDMO) business from its biosimilar operations is being interpreted by some as a strategic move toward restructuring the Samsung Group’s governance structure. Analysts suggest that Samsung C&T could use its stakes in Samsung Biologics and the newly created Samsung Epise Holdings (tentative name) to help Samsung Electronics Chairman Lee Jae-yong further strengthen his control over the group. However, since Chairman Lee is still awaiting a Supreme Court ruling on the “Cheil Industries–Samsung C&T merger case,” any major restructuring centered on Samsung C&T is unlikely to become visible in the immediate future. According to business sources on May 22, Samsung Biologics announced the establishment of Samsung Epise Holdings through a simple spin-off, reigniting discussion around Samsung Group’s broader governance overhaul. Under the plan, Samsung Biologics will retain its CDMO operations as the surviving entity, while Samsung Epise Holdings, which will hold control over biosimilar subsidiary Samsung Bioepis, will be spun off as a new entity. The spin-off ratio between Samsung Biologics and Samsung Epise Holdings will be 0.6503913 to 0.3496087. Samsung Biologics has long been seen as a key piece in Samsung Group’s governance reform. This is because Samsung C&T, which essentially functions as the group’s holding company, holds a significant stake in Samsung Biologics—a stake that could potentially be used to increase Chairman Lee Jae-yong’s control over Samsung Electronics. Chairman Lee and other members of the Samsung founding family own just 4.9% of Samsung Electronics. In contrast, they hold a 32.6% stake in Samsung C&T. The group’s control structure essentially flows as: Lee and family → Samsung C&T → Samsung Life Insurance → Samsung Electronics → other affiliates. However, Samsung C&T and Samsung Life Insurance own only 5.0% and 8.5% of Samsung Electronics respectively, raising concerns about potential vulnerability in future management control of the company. As a result, some investment banks have long speculated that Samsung C&T may sell its stake in Samsung Biologics to acquire additional shares in Samsung Electronics. Until now, the biosimilar business of Samsung Biologics’ subsidiary Samsung Bioepis has been overshadowed by the CDMO division. With the spin-off and potential listing of Samsung Epise Holdings, its corporate value is expected to be reassessed. Lee Sang-heon, a researcher at iM Investment & Securities, stated, “Once Samsung Bioepis is spun off from Samsung Biologics, the structure will shift from a grandchild company indirectly held by Samsung C&T to a subsidiary, thereby increasing its governance value.” There have also been reported conflicts of interest between Samsung Biologics and its clients due to its ownership of Samsung Bioepis. Kim Soo-hyun, an analyst at DB Financial Investment, commented, “It’s considered taboo for a contract manufacturer to be involved in its own drug development, so the parent-subsidiary relationship between Samsung Biologics and Samsung Bioepis likely hindered Bioepis’ growth.” If Samsung C&T were to sell its stake in the new Samsung Epise Holdings, it could acquire nearly 10% of Samsung Electronics. Choi Kwan-soon, an analyst at SK Securities, said, “If Samsung C&T sells its stake in Samsung Epise Holdings, it could raise KRW 29.6 trillion (US$ 21.3 billion) in cash,” adding, “This would provide the capital to acquire the combined KRW 32.9 trillion (US$ 23.7 billion) worth of Samsung Electronics shares currently held by Samsung Life Insurance (8.5%) and Samsung Fire & Marine Insurance (1.5%).” However, some argue that the spin-off of Samsung Biologics should not be directly linked to Samsung Group’s governance restructuring. Instead, it is seen as a move to strengthen competitiveness within the bio business and enhance decision-making efficiency. Moreover, since Chairman Lee has not yet resolved his legal risks, experts believe it is not an appropriate time to rush through any restructuring centered on Samsung C&T. Chairman Lee is still awaiting a final ruling from the Supreme Court on the Cheil Industries–Samsung C&T merger case. A business official commented, “Due to his ongoing legal risks, Chairman Lee was unable to return as a registered board director in March as originally expected,” adding, “Restructuring at the group level can wait until after the court ruling is delivered.” #SamsungBiologics #SamsungEpiseHoldings #GovernanceReform #LeeJaeyong #SamsungC&T #SpinOff #SamsungElectronics #CDMO #SamsungBioepis #SamsungGroupRestructuring
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- Dunamu’s 'Same Person' Isn’t Song Chi-hyung? Who’s Accountable if Trillions Trade Daily on Upbit Go Wrong
- A “same person” under the Monopoly Regulation and Fair Trade Act refers to a corporation or individual that exercises actual control over a corporate group. Most acts prohibited under the Fair Trade Act, such as unfair internal transactions and misappropriation of company assets, are defined based on this same person designation. Dunamu has once again been designated as a large business group subject to limitations on mutual investment (a mutual investment restricted group) by the Korea Fair Trade Commission (KFTC). However, Song Chi-hyung, Chairman of the Board of Directors and de facto leader of Dunamu, was once again excluded from designation as the same person. As in 2024, the same person for 2025 remains the corporation “Dunamu.” The KFTC explained that it designated Dunamu as the same person in accordance with the revised enforcement decree of the Fair Trade Act. According to the KFTC, Dunamu met all the exceptional conditions: its actual controller does not directly invest in affiliates, and there is no investment, management involvement, loan transactions, or debt guarantees by relatives. However, both within and outside the industry, concerns are mounting over the continued exclusion of Dunamu's de facto leader from the same person designation. Given Dunamu’s influence in the virtual asset industry and the importance of the Upbit platform through which national assets flow, a structure in which the actual controller is not designated as the same person may create a gap in accountability. ◆ De facto manager excluded from legal designation—who is ultimately accountable? The designation of the same person is not a mere title. The KFTC uses this designation to track affiliate status and to determine whether regulations on internal transactions, asset misappropriation, and unfair support apply. In other words, the same person is both the starting point of regulation and the entity responsible under the law. When a corporation is designated instead of a natural person, there is concern that regulatory scrutiny may not reach the actual decision-maker. Companies like KT, POSCO, and KT&G, known as “ownership-dispersed companies,” typically do not have a clearly identifiable natural person to designate as the same person. But Chairman Song Chi-hyung is the undisputed controller of Dunamu. He holds a 25.64% stake, making him the largest shareholder, and wields significant influence as chairman of the board. In 2024, he received performance-based compensation 2.5 times greater than that of CEO Lee Seok-woo, demonstrating his substantial management contribution. Despite this, the KFTC’s decision not to designate Chairman Song as the same person may hinder the ability to track affiliate relations or regulate private interests. For instance, if Chairman Song or his family were to later invest in a company and Dunamu failed to register it as an affiliate, a regulatory blind spot could emerge. This opens the door to indirect internal transactions and unofficial favoritism going undetected. Professor Lee Chang-min of Hanyang University’s Business Administration Department wrote in a Hankyoreh column, “The reason it matters whether the same person is a group head or a corporation is because of the need to regulate private interest misappropriation by the head.” He added, “Article 47 of the Fair Trade Act prohibits the unfair provision of benefits to related parties, and this only applies when the same person is a natural person.” ◆ Upbit's massive economic impact—who takes responsibility if issues arise? The core issue ultimately lies with “Upbit.” Dunamu’s main business is operating Upbit. As of late 2024, Upbit’s daily transaction volume approached KRW 20 trillion (US$ 14.4 billion), and it remains Korea’s largest virtual asset exchange, processing billions to tens of billions of dollars in daily trades. With about 10 million users—one out of every five Koreans—Upbit can no longer be viewed as just an IT platform; it carries the weight of a quasi-financial institution. In such a scenario, if a conflict of interest arises within Upbit or if there are issues with decision-making related to user asset management, the current structure means that only the corporate entity Dunamu would be held accountable. Chairman Song, the actual top decision-maker, would escape institutional responsibility. ◆ Why Dunamu needs a clear accountability structure—the issue is public trust Some argue that because Chairman Song is still only in his 40s, issues like succession or private interest transactions are unlikely to arise soon. However, concerns over the same person designation go beyond just preventing succession abuse or irregular wealth transfers. At stake is the clarity of accountability. The same person is the legal subject of responsibility. As the company grows and its social impact increases, Dunamu’s governance structure must become more clearly defined. A system where the actual controller and the legally designated same person are different is increasingly viewed as problematic—not only for management transparency but also for public trust. A virtual asset industry source stated, “Even Bithumb, whose same person is designated as a natural person (former Bithumb Holdings Chairman Lee Jung-hoon), faces criticism for its overly complex governance,” adding, “It’s time for all cryptocurrency exchanges to improve their governance structures, whichever direction they take.” #Dunamu #SongChihyung #KFTC #SamePerson #CorporateGovernance #Upbit #Accountability #CryptoRegulation #FairTradeAct #PublicTrust
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- Despite Overseas Slowdown, Hopes Rise for Daewoo E&C as Jung Won-ju's Post-Middle East Strategy Shows Promise
- Korean construction companies are facing a challenging trend in the overseas construction market this year. However, expectations remain high that Daewoo E&C will find a breakthrough through overseas market diversification efforts consistently pursued by Chairman Jung Won-ju. According to the International Contractors Association of Korea on May 21, Korean companies recorded US$ 10.54 billion (KRW 14.63 trillion) in overseas construction orders from January to April this year. This marks a 20.2% decrease compared to US$ 13.21 billion (KRW 18.34 trillion) in the same period last year. The number of contracts also dropped to 174 during the first four months of this year, compared to 202 in the same period last year, a 13.9% decline. At this pace, it is expected that the Ministry of Land, Infrastructure and Transport’s overseas construction target for the year will be difficult to achieve. The ministry set this year’s goal at US$ 50 billion (KRW 69.4 trillion), up 34.8% from last year’s performance of US$ 37.1 billion (KRW 51.5 trillion). The ministry’s decision to raise the target despite missing last year’s goal of US$ 40 billion was likely influenced by optimism surrounding the potential finalization of the Czech Dukovany nuclear power plant deal this year. The largest single overseas construction project ever won by a Korean company was the Barakah nuclear power plant project in the United Arab Emirates (UAE), secured in 2009. The contract was worth US$ 19.13 billion (about KRW 20 trillion at the time), more than double the US$ 8.03 billion for the second-largest project, the Bismayah New City development in Iraq. Although the Dukovany project is expected to reach a value of KRW 24–26 trillion (US$ 17.3–18.7 billion), final contract signing has been delayed due to legal challenges raised by the French side. This has increased uncertainty for private companies like Daewoo E&C, which is part of Team Korea led by Korea Hydro & Nuclear Power. Nevertheless, expectations remain strong that Daewoo E&C can build growth momentum through various overseas construction orders beyond the Czech project. Promising candidates for contracts are spread across different regions. Lee Sun-il, a researcher at BNK Investment & Securities, stated, “This year, Daewoo E&C is likely to see a decline in revenue from its largest segment—housing construction,” but added, “To reverse the trend, overseas business must play a critical role, and fortunately, there are many promising projects in strategic international regions.” One of Daewoo E&C’s key strengths in overseas construction is the geographical diversity of its prospective contracts. The sluggish performance of Korean companies in overseas construction this year is largely attributed to conditions in the Middle East, a core strategic region. The proportion of orders from the Middle East dropped from 74.2% between January and April last year to 53.1% during the same period this year. This decline is linked to global economic slowdowns and geopolitical risks, as international oil prices remain low—hovering in the US$ 60 per barrel range. Typically, oil prices need to exceed US$ 80 per barrel for Middle Eastern countries to have sufficient fiscal space for new projects. In contrast, Daewoo E&C’s order pipeline includes not only Iraq but also Turkmenistan in Central Asia, Libya in Africa, and Vietnam in Southeast Asia—demonstrating successful diversification. Daewoo E&C is expected to win contracts worth approximately KRW 1 trillion (US$ 721 million) for a fertilizer plant project in Turkmenistan, KRW 1.8 trillion (US$ 1.3 billion) for the Al-Faw naval base in Iraq, and around KRW 900 billion (US$ 648.8 million) for infrastructure restoration work in Libya. In Vietnam, the Kien Giang new town project is progressing with the establishment of a local corporation and shareholder agreements. This project is expected to begin contributing to Daewoo E&C’s performance starting in 2026. A Daewoo E&C official stated, “All of the currently anticipated contracts are being pursued as negotiated deals, so specific timelines have not yet been confirmed,” adding, “Among them, the Turkmenistan fertilizer plant project is the closest to being finalized.” Daewoo E&C’s presence in multiple overseas regions is the result of sustained efforts by Chairman Jung. Recently, he has been pushing to expand the market into more than 20 countries, including India and Indonesia. Chairman Jung has repeatedly emphasized “The answer lies overseas,” both during site visits and in this year’s New Year’s address, reaffirming his ambition to grow Daewoo E&C into a global developer. #DaewooEC #JungWonju #OverseasConstruction #CzechNuclearPowerPlant #Turkmenistan #Iraq #Libya #Vietnam #TeamKorea #KoreanConstruction #GlobalDeveloper #UAEBarakah #InternationalProjects #ConstructionIndustry
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- Apple and Now Amazon Enter Foldables, Samsung Display's Yi Chung Poised to 'Jump Up' with Foldable OLEDs
- As Amazon joins the foldable IT device market following Samsung Electronics and Apple, expectations are rising for Samsung Display, known for its strength in foldable displays, to secure large-scale orders. Samsung Display has reportedly been selected as the exclusive supplier of foldable OLED panels for Apple’s foldable iPhone, expected to be released in the second half of next year. Amazon is also likely to choose Samsung Display’s foldable OLED for its upcoming devices. Yi Chung, CEO of Samsung Display, is expected to lead the company ahead in the increasingly competitive IT OLED market by expanding its supply of foldable OLED displays. According to Kuo Ming-chi of Taiwan’s TF International Research on May 21, Amazon is reportedly developing a foldable tablet PC, aiming for a launch in the second half of 2026 or in 2027. Ross Young, Vice President of market research firm Counterpoint Research, also stated that Amazon has long been working on foldable devices. Though the project has not been officially launched, internal development appears to be ongoing. Following the news of Amazon’s foldable tablet development, expectations for Samsung Display’s performance next year are growing. While competition in the IT OLED display sector has intensified recently, Samsung Display is highly likely to secure orders from major U.S. tech companies such as Apple and Amazon, thanks to its technology accumulated since it began supplying foldable OLEDs for the Galaxy Z Fold in 2019. Competitor LG Display is focusing more on supplying OLEDs for iPhones than on foldable displays. Chinese manufacturer BOE is mass-producing foldable displays, but mainly for Chinese brands like Huawei. Amid escalating U.S. regulations on Chinese products, major U.S. tech firms are hesitant to adopt displays from BOE. Lee Gyu-ha, an analyst at NH Investment & Securities, forecasted, “As U.S. regulations on Chinese displays expand, Korean display companies will increasingly benefit.” Samsung Display is also expected to be the exclusive supplier of foldable OLED panels for Apple’s foldable smartphone launching in the second half of next year. Kiwoom Securities projected that Samsung Display’s foldable display market share will rise from 60% last year to over 70% next year. Additionally, the price of the foldable iPhone is expected to be between USD 2,000 (KRW 2.9 million) and USD 2,500 (KRW 3.62 million). Kuo forecasted that between 3 million and 5 million units of the foldable iPhone will be sold in the fourth quarter of next year. For comparison, Samsung Electronics reportedly sold a total of 4.9 million units of the Galaxy Z Fold 6 and Flip 6 models combined over five months following their launch in September last year. Kuo also predicted that by 2027, when mass production begins in earnest, total sales including the second-generation foldable iPhone could reach 20 million units. Apple is also said to be considering launching foldable MacBooks and iPads after 2027. Unless competitors achieve rapid technological breakthroughs, Samsung Display is widely expected to supply a large portion of the foldable panels Apple will require. Amazon’s entry into the foldable tablet market, combined with Apple’s plans for foldable MacBooks and iPads, is expected to further boost Samsung Display’s foldable OLED market share beyond 70% in 2027. Samsung Electronics, the parent company of Samsung Display, is also preparing a broad range of foldable smartphones. Samsung Electronics is planning to release the next-generation Galaxy Z Fold 7 and Flip 7 in September, and it is also expected to launch the triple-folding smartphone “Galaxy G Fold” in the second half of this year. The Galaxy G Fold is an in-folding foldable phone that folds into a “G” shape and offers a display of approximately 10 inches when fully unfolded—comparable to a tablet. It is expected to be more durable than Huawei’s triple-foldable smartphone “Mate XT,” released last year. Samsung Display now appears to have found a breakthrough in the increasingly competitive small-to-mid-size OLED market. The company recorded operating profits of KRW 4.46 trillion (USD 3.21 billion) in 2021, KRW 5.95 trillion (USD 4.29 billion) in 2022, and KRW 5.57 trillion (USD 4.02 billion) in 2023, continuing its upward trend. However, last year’s operating profit dropped 33% to KRW 3.7 trillion (USD 2.67 billion), signaling a slowdown in growth. Daishin Securities forecasts that Samsung Display’s operating profit will exceed KRW 3.8 trillion (USD 2.74 billion) in 2025 and KRW 4 trillion (USD 2.88 billion) in 2026. An industry insider said, “Mass production for Apple’s foldable iPhone and Amazon’s foldable tablet PC will begin in earnest in the second half of next year at the earliest,” adding, “The impact on display suppliers’ earnings will start to be reflected from 2026.” #SamsungDisplay #FoldableOLED #Apple #Amazon #GalaxyGFold #YiChung #FoldableiPhone #FoldableTablet #OLEDMarket #AAPL #AMZN #SamsungElectronics #BigTech #DisplayIndustry #BOE #LGDisplay
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- Why Do SPC Accidents Persist? Heo Young-in’s Denial Undermines KRW 100 Billion Safety Plan
- Anger toward SPC Group is boiling over on all fronts. With repeated worker fatalities, criticism is mounting that the company only pays lip service to “safety management.” Attention is also turning to SPC Group Chairman Heo Young-in’s lack of accountability for safety management, which is being cited as a root cause of the group’s continuing industrial accidents. According to Business Post’s reporting on May 20, criticism is growing from both labor and political circles that SPC Group’s safety management committee—established to appear proactive—is just a façade, especially as worker safety accidents continue despite its formation. SPC Group established the Safety Management Committee in November 2022. This was one of the measures taken after a worker was killed in October that year at the SPL bakery plant in Pyeongtaek, Gyeonggi-do, after becoming trapped in a machine. SPC Group appointed four external members to the committee, including Chairman Jung Gab-young, former president of Yonsei University. Only one internal member participated, signaling the group’s intention to secure independent oversight of workplace safety. In its early days, the committee met with CEOs of SPC’s affiliates to discuss the committee’s role, operations, and future plans. The participants agreed that independence, neutrality, and objectivity were the most important values and called for affiliates to actively cooperate in implementing the committee’s recommendations despite difficulties. The committee has since held regular meetings to review the operations of production centers, safety management activities, SPC Group’s safety investment performance, and the status of industrial accidents. The committee also led the announcement of a KRW 100 billion (US$ 72.1 million) investment in industrial safety by 2025. As of last year, SPC Group said it had invested KRW 83.5 billion (US$ 60.2 million) in safety, including KRW 22.8 billion (US$ 16.4 million) in automating high-risk tasks, KRW 22.5 billion (US$ 16.2 million) in expanding safety equipment, KRW 18.9 billion (US$ 13.6 million) in improving work environments, KRW 14.8 billion (US$ 10.7 million) in enhancing equipment safety, and KRW 4.5 billion (US$ 3.2 million) in other areas. However, despite these efforts, safety accidents at SPC Group have not decreased. There have been 572 industrial accidents at SPC affiliates over the past four years. Labor unions argue that the unusually high number of fatal entrapment accidents at SPC plants—rare in the baking industry—is a serious issue. Several incidents have become publicly known. In July 2023, a finger entrapment occurred at Shany’s Seongnam factory, and in August, a woman in her 50s died after being caught in a dough machine at the same site. In January this year, a worker had three fingers severed while cleaning a rice-processing machine at the SPL bakery plant in Pyeongtaek. This has fueled criticism from labor groups that SPC Group’s safety management exists only on paper. On May 20, the Gyeonggi chapter of the Korean Confederation of Trade Unions issued a statement saying, “After the 2022 accident, SPC Group promised to invest KRW 100 billion (US$ 72.1 million) over three years and claimed to be obtaining standard safety certifications at key facilities, but these were just words.” It continued, “Whenever an accident occurs, the company just improvises, pretends to apologize, and waits for public anger to pass.” SPC Group, for its part, continues to praise its own safety efforts. Its website highlights that it has completed 354 of the 382 safety tasks set in 2024, claiming a 95.2% completion rate. In December last year, the group even held a safety management award ceremony to recognize outstanding cases of task execution. Ironically, one of the teams honored was from the SPC Samlip Siwha production center, where a worker died on May 19. Business Post repeatedly tried to contact committee chairman Jung Gab-young for comment on SPC Group’s safety initiatives but was unable to reach him. Criticism is growing that the structure under which Chairman Heo Young-in avoids direct accountability for worker safety is a key reason industrial accidents at SPC Group continue. At a National Assembly hearing on industrial accidents held in December 2023, Heo responded to questions about responsibility for repeated deaths by saying, “I retired from the company five years ago and have since completely delegated responsibilities to the CEO, in line with our principle of responsible management,” adding, “I haven’t even visited a factory in the past five years.” This statement sparked public outrage. Although Chairman Heo was reported for violating the Serious Accidents Punishment Act over these incidents, he was not indicted. Prosecutors reasoned that while he is the group chairman, he could not be considered a management officer solely based on the possibility of having influence over affiliate decisions. The Serious Accidents Punishment Act imposes obligations to establish and implement a safety and health management system on those who represent or have overall authority over a business, or those responsible for safety and health tasks. The issue is that Heo is again unlikely to be held accountable for the latest fatal accident. At the previous hearing, Heo had stated, “After the factory accident, we created the safety management committee, and that committee now handles all safety-related investment reviews and discussions.” Labor unions suspect this committee, initially formed to improve safety, is now being used as a shield for avoiding accountability. The Korean Confederation of Trade Unions said, “If proper punishment had been handed down three years ago—after the Pyeongtaek accident and subsequent deaths and injuries—this tragedy might have been prevented,” adding, “The death bakery must be stopped, and a proper investigation and punishment must be carried out.” On May 19, SPC Samlip CEO Kim Beom-soo issued an apology regarding the worker's death, but Chairman Heo’s personal apology has not yet been confirmed. The Korean Federation of Chemical, Textile, and Food Industry Workers’ Unions has filed notice to hold outdoor protests under the banner “Another Death at SPC” in front of SPC Group’s headquarters in Seocho-gu, Seoul, from May 21 to June 18. Meanwhile, Lee Jae-myung, presidential candidate from the Democratic Party of Korea, urged a thorough and swift investigation into the fatal accident that occurred at SPC’s bakery plant in Siheung, Gyeonggi-do, on May 19. On social media, he wrote, “There was also a worker death in October 2020 at an SPC affiliate’s Pyeongtaek bakery plant. At the time, SPC’s CEO apologized to the bereaved family and the public and promised to prevent recurrence, yet a similar accident has occurred again. I am filled with dismay.” He added, “Workplaces, which should be places for livelihood, are becoming places of death. We can no longer allow a world where people risk their lives just to go to work.” #SPCGroup #HeoYoungin #IndustrialAccidents #SafetyManagement #SeriousAccidentsPunishmentAct #WorkerFatalities #SPLIncident #SPCFactoryAccidents #LaborRights #OccupationalSafety
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- Lotte E&C’s Housing Dependence Grows Amid Rising Costs, Park Hyun-chul Aims for Turnaround
- Lotte Engineering & Construction (Lotte E&C)’s dependence on its housing business has risen to its highest level in the past three years. Although its core business revenue continued to rise, the company also faces mounting pressure due to the ongoing slump in Korea’s real estate market. Vice Chairman and CEO Park Hyun-chul is expected to focus on delivering a rebound in performance, viewing the first quarter as the bottom. According to disclosures filed with the Financial Supervisory Service on May 20, Lotte E&C’s consolidated sales in the building sector—including housing—reached KRW 1.2661 trillion (US$ 913.1 million) in the first quarter, up 13.8% compared to the same period last year. Lotte E&C’s revenue is broadly divided into three categories: building (including high-rise buildings, officetels, and housing), civil engineering, and plant construction. The building sector accounted for 70.6% of total consolidated revenue, the highest level in the past three years. This is the first time since the first quarter of 2022 (75.5%) that the figure has exceeded 70%. Its core business performed well despite the first quarter typically being an off-season for the construction industry. Building sector revenue improved not only compared to the first quarter of last year (KRW 1.1125 trillion or US$ 802.2 million) but also against Q1 2023 (KRW 835.4 billion or US$ 602.3 million) and Q1 2022 (KRW 902.7 billion or US$ 651.0 million). This performance is seen as the result of converting a robust backlog of urban redevelopment projects into revenue. Although Lotte E&C has ranked between 7th and 9th in construction capability evaluations over the past 10 years, it has established itself as a leading player in the urban redevelopment market. Until it strengthened selective bidding in response to the liquidity crisis triggered by the Legoland incident at the end of 2022, it steadily built up its order backlog. It ranked 4th in 2019 with KRW 1.14 trillion (US$ 822.1 million), 3rd in 2020 with KRW 2.6326 trillion (US$ 1.9 billion), and 6th in 2021 with KRW 2.223 trillion (US$ 1.6 billion), then hit a record in 2022 with KRW 4.262 trillion (US$ 3.1 billion). Though activity slowed in 2023 and 2024, the company secured KRW 2.5354 trillion (US$ 1.8 billion) in orders this year so far, placing it second as of May, behind Samsung C&T. However, CEO Park Hyun-chul now bears a heavy profitability burden. With increasing reliance on privately contracted housing projects, cost pressures have grown. Lotte E&C’s cost-to-sales ratio in Q1 was 95.4%, up 1.4 percentage points from 94% in Q1 of the previous year, and 1.9 points higher than its cumulative rate of 93.5% for last year. As a result, operating profit fell nearly 90% to KRW 3.7 billion (US$ 2.7 million) compared to a year earlier. Operating cash flow also recorded a net outflow of KRW 313.6 billion (US$ 22.6 million) in Q1, continuing the trend from last year’s annual outflow. CEO Park’s prior success in improving the company’s financial structure also showed signs of retreat in Q1. Under his leadership, Lotte E&C’s debt ratio declined from 264% at the end of 2022 (post-Legoland crisis) to 196% at the end of last year. However, as of the end of March 2025, the debt ratio had risen to 205.8%, up about 10 percentage points from the end of 2024. The deterioration in cash flow is further weighing on Park, who has been regarded as a “firefighter” CEO. Park is expected to seek a performance rebound leveraging Lotte E&C’s strong order backlog. As of the end of March, the company’s backlog stood at KRW 42.5 trillion (US$ 30.6 billion), placing it 4th among Korea’s top 10 construction firms by construction capability. Its order backlog-to-sales ratio was 535.3% as of the end of last year—the highest among top 10 builders—equivalent to over five years of secured work. Another factor easing Park’s burden is the company’s successful sell-out of a large residential project despite a wait-and-see real estate market ahead of the June presidential election, demonstrating its brand competitiveness. The “Gyeyang Lotte Castle Park City” project in Incheon recently completed contracts for all 3,053 units. While it was the largest supply in Seoul and the metropolitan area last year, it had suffered significant subscription shortfalls in August. This marks a reversal of fortune. Given that market participants expect policy uncertainty to ease and interest rates to trend downward after the election, Lotte E&C’s robust order backlog is seen as a strong base for future performance. From Park’s perspective, the company stands at a crossroads—whether Q1 will be the bottom from which it can rebound. It also faces the need to address the risks of its revenue being overly concentrated in the housing sector. Of the KRW 42.5 trillion (US$ 30.6 billion) backlog, only about KRW 2 trillion (US$ 1.4 billion) comes from overseas construction contracts. Most of this relates to the Indonesian Line Project of Lotte Chemical, the company's largest shareholder, slated for completion this year. Riding the positive momentum in the real estate market, Lotte E&C expects to strengthen its financial standing in the second half of the year. Revenue recognition is anticipated from high-margin core sites and self-developed projects. A company official stated, “In the second half, we plan to launch general sales for projects in prime areas like the Misung Clover reconstruction in Gangnam,” adding, “We expect a turnaround in revenue and cash flow based on these developments.” #LotteEandC #ParkHyunchul #realestatemarket #constructionindustry #housingbusiness #orderbacklog #urbanredevelopment #financialperformance #debtmanagement #Koreanconstruction
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- Celltrion Holdings’ NASDAQ Listing Roadmap: Seo Jung-jin’s Solution to Succession and Tax Challenges?
- Seo Jung-jin, Chairman of Celltrion Group, is actively pushing for the NASDAQ listing of Celltrion Holdings. Legal and business circles view this move as Chairman Seo’s attempt to resolve the succession issue, which remains his biggest concern. As of May 2024, Seo’s son, Seo Jin-seok, Co-CEO of Celltrion, is expanding his role in management by serving on the boards of Celltrion (internal director), Celltrion Holdings (internal director), Celltrion Pharm (internal director), Celltrion Skincure (non-executive director), and Celltrion Entertainment (non-executive director). Although Chairman Seo previously pledged to separate ownership and management, he has already reversed that stance. Given that Seo Jin-seok is expanding his influence across the group's affiliates, it appears that succession planning is already in progress. Of course, Seo Jin-seok emphasized at Celltrion’s regular shareholders’ meeting in March 2025 that there are no plans for succession. At that meeting, he said, “At a time when new drug development is crucial, I believe I was temporarily given a role to speed up new business,” adding, “I don’t think Chairman Seo has gone back on his word about not appointing his children as CEO,” drawing a line regarding the succession issue. However, within the business world, there is a growing belief that the NASDAQ listing of Celltrion Holdings is not unrelated to succession planning. If Celltrion Holdings is listed on NASDAQ, it would not only raise massive capital through new share issuance but also allow Chairman Seo—who owns 98.1% of Celltrion Holdings—to sell Celltrion shares and enhance his liquidity. Some industry observers suggest that the NASDAQ listing may also be motivated by the potential use of dual-class shares, which would allow Chairman Seo to maintain control with a smaller stake, enabling him to secure funds through partial share sales that could be used for succession purposes. Dual-class shares refer to stock structures in which the number of voting rights per share can differ. Typically, one share equals one vote, but dual-class structures allow certain shareholders to have more voting rights. A notable example is Bom Kim, Chairman of the Coupang Board, who received the voting power equivalent to 29 votes per share when Coupang was listed on the New York Stock Exchange. In Kim’s case, dual-class shares convert to common shares if transferred through inheritance, donation, or sale. However, under U.S. law, such conversion is not mandatory. It is legally permissible to include provisions in the articles of incorporation requiring dual-class shares to convert to common stock upon inheritance, donation, or sale—but this is not a legal obligation. A legal expert said, “In principle, the donee is responsible for paying gift taxes. So if Seo Jin-seok receives a gift from his father, Chairman Seo Jung-jin, he would need to pay a large amount in taxes,” adding, “Even considering taxes, the transferred amount could reach into the trillions of won, so there would still be sufficient capital for succession.” The expert also noted, “According to inheritance and gift tax law, if the donee cannot pay the gift tax, the donor can be jointly liable. This means the management rights wouldn’t be jeopardized due to tax issues.” Moreover, if Chairman Seo secures large funds through a partial stock sale post-IPO, he could use the cash personally, independent of the company. This opens the possibility of using the capital for succession planning through mechanisms such as overseas trust structures or private placement life insurance. A trust allows an individual to entrust assets to a trustee and distribute benefits to a designated beneficiary (such as a child), enabling asset transfer and management without waiting for inheritance to occur. In particular, the Dynasty Trust in the U.S. is structured to allow wealth to be passed down to family members for decades or even permanently. Additionally, private placement life insurance (PPLI), designed for high-net-worth individuals, allows investment returns to grow tax-free and provides large, tax-exempt payouts to heirs upon the policyholder’s death. It is known that ultra-wealthy individuals in countries like the U.S., Hong Kong, and Singapore manage significant portions of their assets through PPLI. Furthermore, if Chairman Seo sells shares after the NASDAQ listing and raises capital, there is a possibility he could establish a separate foundation or family company to strengthen control over Celltrion affiliates. This is the same strategy used by the Walton family, owners of Walmart in the U.S. The Walton family maintains stable control of Walmart through a family investment firm called Walton Enterprises, which collectively holds more than half of Walmart’s shares. Chairman Seo has already stated several times that he is considering a NASDAQ listing for Celltrion Holdings. He revealed plans during a press conference with reporters at the J.P. Morgan Healthcare Conference held in San Francisco in January 2024, and also shared his intentions at the Korea Economic Association's Future Leaders Camp that same month. Regarding the delay in the NASDAQ listing timeline, Chairman Seo stated, “Although I announced last year that we would pursue the NASDAQ listing of Celltrion Holdings, the structure at the time would have resulted in a loss, so I postponed the plan.” #SeoJungjin #SeoJinseok #Celltrion #CelltrionHoldings #NASDAQlisting #successionplanning #dualclassshares #DynastyTrust #PPLI #inheritancetax #familygovernance #Waltonmodel #Koreanpharma #globalIPO #Kbiotech
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- KEPCO Poised for Record Profits This Year, Kim Dong-cheol on Alert Over Election Impact on Electricity Rates
- Korea Electric Power Corporation (KEPCO) is expected to record its highest-ever operating profit this year. However, for Kim Dong-cheol, the President of KEPCO, it is likely that he is paying close attention not only to electricity rates, which are a key variable for performance, but also to the outcome of the presidential election that could influence his own position. According to a summary of forecasts from the securities industry on May 19, KEPCO is expected to post an operating profit of around KRW 13 to 14 trillion (US$ 9.4 to 10.1 billion) on a consolidated basis this year. If this forecast comes true, KEPCO will set a new record for its highest-ever annual operating profit. KEPCO's previous record was KRW 12.0016 trillion (US$ 8.7 billion), achieved in 2016. KEPCO's operating profit in the first quarter of this year was KRW 3.7436 trillion (US$ 2.7 billion), raising the possibility of achieving a record annual operating profit. The first-quarter operating profit figure represented a 188.9% increase compared to the same period last year and was the highest on a quarterly basis since the third quarter of 2016. The fact that key indicators used to anticipate KEPCO’s performance are showing a positive trend will also be a welcome sign for President Kim. In particular, with prices of coal and crude oil stabilizing downward, KEPCO's profitability is expected to remain at a high level for the time being. Heo Min-ho, a researcher at Daishin Securities, said, “As of the second week of May, the average prices of Newcastle and Kalimantan thermal coal fell by US$15 (16%) per ton compared to the same month last year, and the price of Brent crude oil was US$64 per barrel, down US$2 (3%) year-on-year,” adding, “Although the exchange rate rebounded due to the U.S.-China tariff agreement, cost reductions stemming from the stabilization of fuel coal prices and oil prices are raising the possibility of improved performance for KEPCO in 2025 and 2026.” However, for President Kim, the better KEPCO performs, the stronger the public sentiment demanding electricity rate cuts—something he may need to be cautious about. Looking back at 2017, the year after KEPCO recorded its highest-ever profit, there were also strong calls for electricity rate cuts, including the abolition of the progressive rate system for households. Kim Jong-gap, then President of KEPCO, commented on the demands for electricity rate cuts through a post on his social media titled “The Worries of a Tofu Factory,” comparing electricity rates and production costs to tofu and soybeans. He said, “When the price of imported soybeans went up, we didn’t raise the price of tofu accordingly, but now tofu has become cheaper than soybeans.” If KEPCO achieves a record performance this year as projected, a situation similar to that of 2018 could be repeated starting late this year or early next year. Already, industries such as the steel sector are demanding reductions in industrial electricity rates. On May 14, the POSCO Group Union Alliance urged the government, saying, “The steel industry is facing a triple crisis of carbon neutrality, high exchange rates, and intensified protectionism, and is being hit hard by a surge in industrial electricity rates,” adding, “There is an urgent need for both a reduction in industrial electricity rates and practical R&D support for the development of carbon-neutral technologies in the steel industry.” However, KEPCO is not expected to fully recover from its accumulated operating loss of KRW 30 trillion (US$ 21.6 billion) until at least 2027, which means it will likely need to maintain the current electricity rate level until then. Since the key variable that will determine the direction of electricity rates is the presidential election scheduled for June 3, President Kim's attention is inevitably focused on the election. Jeong Hye-jeong, a researcher at KB Securities, said, “There is no doubt about KEPCO’s performance improvement in 2025,” adding, “With support from favorable external factors, KEPCO is expected to continue its solid recovery in line with market expectations, and the key to further stock price rebound will be the next government’s electricity rate policy.” Globally, with industrial trends such as the artificial intelligence (AI) revolution, energy security has become an important policy issue in every country, and South Korea is no exception. In this presidential election, from regional campaign tours to the first candidate debate, energy issues are being discussed not just in terms of electricity rate hikes or cuts, but also regarding a fundamental overhaul of the electricity pricing system. On May 16, Democratic Party candidate Lee Jae-myung visited Jeonju in North Jeolla Province for a campaign event in the Honam region, where he said about electricity rates, “The economic situation is so bad that we can’t adjust them immediately, but in the long term, there is no choice but to raise them.” On the same day in Gunsan, North Jeolla Province, during another campaign stop, Lee said, “Transmission costs are enormously high, so the electricity price shouldn’t be the same in power-generating areas and consumption areas,” proposing a regional differential electricity pricing system. On May 18, at the first presidential candidate debate, People Power Party candidate Kim Moon-soo said in relation to energy policy, “We will restore the nuclear power ecosystem and utilize nuclear energy more,” and added, “By using nuclear energy, we will significantly reduce electricity rates and improve their quality.” The outcome of the presidential election is likely to have a major impact not only on the direction of the electricity rate system but also on the leadership of KEPCO, including President Kim. Since KEPCO is the largest public corporation and handles key national infrastructure, the President’s position is not free from political influence. Looking at the history of KEPCO presidents, none have completed their terms when a change of government occurred. Especially given that President Kim is the first politician to head KEPCO, there is a high likelihood that political pressure will influence the company’s direction. Kim entered politics in 1991 as a policy aide to lawmaker Kwon Roh-gap and was elected to the National Assembly in 2004 as the Uri Party’s candidate for Gwangsan District in Gwangju. He served four terms through the 20th general election, running under the United Democratic Party, Democratic United Party, and People’s Party. He ran as a candidate for the Minsaengdang in the 21st general election but lost. In the 2022 presidential election, he joined the campaign for People Power Party candidate Yoon Suk-yeol, shifting to the conservative bloc. In the Yoon Suk-yeol campaign, Kim served as Special Advisor and Director of the Regional Harmony Headquarters of the New Era Preparation Committee and later as Vice Chairman of the National Integration Committee in the Presidential Transition Committee. He was appointed President of KEPCO in September 2023. At the time of his appointment, President Kim faced strong criticism from the Democratic Party of Korea, which accused him of being an “unqualified parachute appointee.” #KEPCO #KimDongcheol #electricityrates #operatingprofit #Koreaelection #energypolicy #publicenterprise #energycrisis #Koreaeconomy #Koreanpolitics
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- SK Telecom Fills Trust Committee with SK-Linked Professors, Sparking Fairness Outcry: "Deceiving the Public Twice"
- SK Telecom is facing controversy over the fairness and independence of its newly formed “Customer Trust Committee,” which was created with external experts to regain subscriber trust following a hacking incident. Concerns have emerged because some of the appointed members have past ties with SK Group through various business collaborations. Even if the appointed members possess a certain level of expertise, questions are being raised about whether they can truly carry out an objective review of trust restoration efforts given their ongoing connections with SK. According to a summary of telecom industry reports on May 19, among the five members of the Customer Trust Committee launched by SK Telecom, Professor Kim Nan-do from Seoul National University’s Department of Consumer Science and Professor Kim Chae-yeon from Korea University’s Department of Psychology have previously worked on projects with SK Group. Professor Kim Nan-do has been involved in multiple projects including: △ 2019 — Strategic research on rental housing for SK D&D △ 2021 — Subscription service planning for SK Telecom △ 2022 — Fandom strategy development for SK Group △ 2024 — Trend content production for SK's talent development platform ‘mySUNI’ The most recent project took place in 2024, just months before the launch of the Customer Trust Committee, highlighting his close and ongoing relationship with SK Group. Professor Kim also lectured for SK Telecom’s in-house training program in 2014 and participated as a speaker at the “Ichon Forum,” founded by SK Group Chairman Chey Tae-won, in 2022. Professor Kim Chae-yeon has also publicly mentioned her collaboration with SK Telecom. In a self-introduction published in the Professor’s Newspaper on August 1, 2024, she wrote, “I’ve conducted collaborative projects with various companies and public institutions, including SK Telecom.” Despite these records, the inclusion of both professors in SK Telecom’s Customer Trust Committee is intensifying concerns over the committee’s independence and potential conflicts of interest. Given that the committee serves not just as an external advisory body but also as a symbolic force for restoring trust damaged by the hacking incident, critics argue it may be difficult for individuals with strong ties to SK to act objectively and independently. Moreover, the committee is expected to provide consumer-focused advice on sensitive issues such as penalty waivers for number portability users. Critics say it would be hard for those with past collaborative ties to scrutinize SK Telecom objectively. Ahn Jin-geol, Director of the People’s Livelihood Economy Research Institute, told Business Post, “A trust committee made up of pro-SK Group figures only deceives and insults the public twice.” He added, “Without penalty waivers, forming a trust committee is meaningless. This won't restore trust; it will only fuel public anger and disappointment.” Previously, on May 16, SK Telecom announced that it had launched the “Customer Trust Committee,” composed of external experts, and held its first meeting. The company stated on May 18 that the committee is an independent body tasked with reviewing the company’s trust-building measures and advising on how to improve their effectiveness. The appointed members are: △ Ahn Wan-ki, former President of the Korea Productivity Center △ Shin Jong-won, former Chairperson of the Consumer Dispute Mediation Committee △ Son Jeong-hye, Attorney at HyeMyung Law Firm △ Kim Nan-do, Professor at Seoul National University’s Department of Consumer Science △ Kim Chae-yeon, Professor at Korea University’s Department of Psychology SK Telecom described Professor Kim Nan-do as a trend expert with extensive experience in consumer protection and policy advising, having also served as secretary for the Consumer Policy Forum. Professor Kim Chae-yeon was introduced as someone capable of verifying, from a cognitive psychology perspective, whether the committee’s recommendations improve user experience and help reconcile diverse user demands. #SKTelecom #CustomerTrustCommittee #DataBreach #SKGroup #IndependenceControversy #ConflictOfInterest #ConsumerProtection #CyberSecurity #PublicTrust #CommitteeTransparency
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- Can Second Daughter Sung Rae-eun, Chosen by Founder Sung Ki-hak, Feel Secure as Youngone's Heir?
- Why did Sung Ki-hak, founder of Youngone Corporation, choose his second daughter Sung Rae-eun, Vice Chair and CEO of Youngone Holdings, as successor instead of his eldest daughter? Founder Sung Ki-hak expanded Youngone Corporation from a textile trading business to a global OEM leader by establishing production bases in China, Vietnam, and other countries. On this solid foundation, he successfully introduced the "The North Face" brand to Korea in 1997, pioneering the domestic outdoor market. As a result, the business activities of Sung’s three daughters have drawn increasing attention alongside the group's growth. ◆ Breaking Tradition, Making a New Choice In the business world, succession typically follows the traditional order of primogeniture. Initially, Youngone Group founder Sung Ki-hak appeared to favor his eldest daughter, Sung Si-eun, Director at Youngone Corporation, as his successor. Born in 1977, Director Sung Si-eun graduated from Stanford University in the U.S. and earned a master’s degree from Ewha Womans University. In March 2011, she became the first among the three sisters to join the board of YMSA, the de facto top holding company of Youngone Group. However, over time, her interest and engagement in management faded. In March 2018, she stepped down from the YMSA board and has since withdrawn from frontline management, currently serving as an unregistered executive in charge of social contributions at Youngone Corporation. Second daughter Sung Rae-eun, Vice Chair and CEO of Youngone Holdings, was born in 1978. She graduated from the prestigious Choate Rosemary Hall and majored in sociology at Stanford University. She joined Youngone Corporation in 2002 to prepare for succession. She began her executive career as Director of Compliance in 2007, became Senior Managing Director in 2014, President of Youngone Holdings in 2016, President of Youngone Corporation in 2020, and was promoted to Vice Chair of Youngone Group in November 2022, solidifying her position as the official successor. The point at which founder Sung Ki-hak designated her as his successor is considered to be 2016, when he handed over the CEO position at Youngone Holdings. Her position was further strengthened in 2023 when she received 50.1% of the shares in YMSA, which functions as the group's de facto holding company. Industry experts believe this succession was a deliberate decision by founder Sung, prioritizing management capability and leadership over tradition. ◆ Sung Rae-eun Proves Solid Management Capabilities Through Youngone Group’s Growth The reason Sung Rae-eun came to lead the succession by receiving a majority stake in YMSA lies in her strong management abilities. Since joining the company in 2002, she has been recognized for her steady performance, especially in the global OEM market, serving as Director and Senior Managing Director in the Global Compliance and CSR departments. In particular, after becoming CEO of Youngone Holdings in 2016, the company's performance steadily improved until 2022, which is seen as evidence of her practical achievements as a business leader. Despite challenges such as global supply chain issues, inflation, and the slump of the premium bicycle brand Scott, she has focused on innovating management by investing in overseas production facilities. She is also active socially. In February 2024, she was appointed the 15th Chairperson of the Korea Fashion Industry Association, being praised for opening a new era of female leadership in her 40s in the fashion sector. These external activities show that she is not only strengthening her management skills but also growing in social influence and responsibility as a group leader. ◆ Youngest Daughter Sung Ka-eun’s Rise Adds Uncertainty to Succession While Sung Rae-eun currently appears to be the confirmed successor, having acquired a majority stake in YMSA, industry insiders see variables that could still impact the succession process. This is because the youngest daughter, Sung Ka-eun, Vice President of Youngone Outdoor, is also proving her leadership by driving performance growth at the company despite the domestic apparel market downturn. Born in 1981, she studied economics at Wellesley College in the U.S. and joined Youngone Outdoor (formerly Goldwin Korea) in 2004, where she has overseen advertising and marketing. Since 2016, she has also managed the group’s "The North Face" brand. Despite the decline in domestic outdoor demand since 2023 due to the economic downturn, Youngone Outdoor has continued to grow. The company’s revenue increased from KRW 544.5 billion (US$ 392.6 million) in 2021 to KRW 764.0 billion (US$ 550.7 million) in 2022 and KRW 961.5 billion (US$ 693.2 million) in 2023. Operating profit also rose from KRW 133.1 billion (US$ 95.9 million) in 2021 to KRW 182.5 billion (US$ 131.6 million) in 2022 and KRW 242.6 billion (US$ 174.9 million) in 2023. In contrast, Youngone Corporation is experiencing financial strain as it supports the loss-making premium bicycle subsidiary Scott. Another variable is that founder Sung Ki-hak remains involved in company management. Although born in 1947 and in his late 70s, he still serves as CEO of both Youngone Outdoor and Youngone Corporation. Attention is now focused on whether the weight of succession, currently leaning toward Vice Chair Sung Rae-eun, could shift due to the outstanding performance of Vice President Sung Ka-eun. #SungKihak #SungRaeeun #YoungoneCorporation #YoungoneHoldings #SungKaeun #SuccessionPlan #FamilyBusiness #TheNorthFace #KoreanFashionIndustry #LeadershipTransition
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- KB Kookmin Card’s Weak Q1 Global Results—Kim Jae-kwan Prioritizes Overseas Profitability
- KB Kookmin Card ended last year’s global operations in the red, impacted by the global economic downturn. The company plans to rebound in performance this year. However, at the individual overseas subsidiary level, signs of a recovery in global performance are emerging. With attention focused on whether a rebound will be achieved this year, Kim Jae-kwan, CEO and President of KB Kookmin Card, is expected to concentrate on improving the profitability of overseas subsidiaries. According to KB Kookmin Card’s disclosure on May 16, the combined net loss of its three overseas subsidiaries in the first quarter of 2025 amounted to KRW 1.267 billion (US$ 914,000). The company explained that the continued impact of the global economic downturn in Q1 led to unavoidable losses, mainly due to provisioning burdens. A KB Kookmin Card official stated, “Due to high U.S. tariffs, inflation, interest rate hikes, and China’s economic slowdown, the recession in Southeast Asian countries persisted,” and added, “As customers’ real incomes declined, the financial environments in our markets deteriorated.” The official also said, “After the end of government-led special financial programs such as debt restructuring and repayment deferment during the COVID-19 pandemic, credit risk expanded, limiting the growth potential of our overseas subsidiaries.” KB Kookmin Card’s overseas operations first turned to losses in Q2 2024, largely due to the global downturn and high interest rates. Since then, the losses have continued, posing a growing concern for CEO Kim Jae-kwan as the global business slump drags on. In the credit card industry, global expansion is seen as a breakthrough to overcome the growth ceiling in the saturated domestic market. In this context, the importance of overseas operations is steadily rising. Kim is steering strategy toward profitability-focused management in a bid to turn around the performance of overseas subsidiaries. A KB Kookmin Card spokesperson stated, “The top priority is to recover profitability and establish a foundation for sustainable and stable growth in our overseas entities. Under the principles of phased growth and sustainable revenue generation, we are selecting and pursuing restructuring and improvement tasks specific to each subsidiary.” More specifically, the company is shifting its business direction from growth to profitability, promoting organizational and process efficiency, and working on advanced risk management and standardized management frameworks for each subsidiary. Looking at the performance trends of individual subsidiaries, there is a possibility that net profit may rebound within the year. KB Kookmin Card currently has subsidiaries in three countries: Cambodia, Indonesia, and Thailand. Of these, the Thai subsidiary, KB J Capital, is receiving the most attention this year. KB J Capital posted a strong performance in Q1 2025, with a net profit of KRW 7.132 billion (US$ 5.1 million), far surpassing its full-year net profit of KRW 2.627 billion (US$ 1.9 million) in 2024 in just one quarter. KB J Capital plans to continue its growth by leveraging its Samsung Mobile installment finance product (Samsung Finance Plus) and is also focusing on improving the profitability of its other key product, revolving loans, as part of its portfolio diversification strategy. Meanwhile, the Cambodian subsidiary, KB Daehan Specialized Bank, and the Indonesian subsidiary, KB Finansia Multi Finance (KB FMF), are focusing on strengthening debt collection capabilities to reduce losses. In Q1 2025, KB Daehan Specialized Bank recorded a net loss of KRW 1.592 billion (US$ 1.2 million), and KB FMF posted a net loss of KRW 6.807 billion (US$ 4.9 million). If CEO Kim succeeds in solidifying the growth base of the overseas subsidiaries this year, it will likely boost KB Financial Group’s global operations as a whole. KB Financial has a long-term goal of raising its global revenue ratio to 40%. #KookminCard #KimJaeKwan #globalbusiness #overseasexpansion #profitabilityfocus #Thailandsubsidiary #KBJCapital #SoutheastAsiaeconomy #creditcardindustry #Koreanfinance
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- “Buldak Takes Off” — Kim Jung-soo Makes History as Samyang Foods Enters KRW 600 Billion Operating Profit Era
- Samyang Foods is on an unstoppable run. The company has ushered in a new era in the instant noodle industry with a quarterly operating profit exceeding KRW 100 billion (US$ 72.1 million)—a milestone no other player in the market has ever achieved. Many believe this is just the beginning of a much larger growth story. The product that sparked this success, “Buldak Bokkeum Myun” (Hot Chicken Flavor Ramen), was the brainchild of Vice Chairman and CEO Kim Jung-soo of Samyang Foods, who developed the idea from a chance moment. It’s now considered a key growth engine that could drive the company’s annual operating profit beyond KRW 500 billion (US$ 360.1 million), even into the KRW 600 billion (US$ 432.1 million) to KRW 700 billion (US$ 504.2 million) range. An analysis of Samyang Foods’ first-quarter results on May 16 shows that the company is treading uncharted territory in both revenue and profitability. In Q1, Samyang Foods posted consolidated sales of KRW 529 billion (US$ 381.1 million) and operating profit of KRW 134 billion (US$ 96.5 million)—both record highs. In terms of quarterly revenue, the company reached the KRW 500 billion (US$ 360.1 million) milestone just three quarters after breaking into the KRW 400 billion (US$ 288.1 million) range in Q2 2023. Operating profit had remained in the KRW 80 billion (US$ 57.6 million) range throughout last year, but it has now leaped past KRW 100 billion (US$ 72.1 million) in a dramatic quantum jump. The securities industry is also turning its attention to Samyang Foods, with some analysts even apologizing for having previously undervalued the company. Target prices are being raised across the board. Hanwha Investment & Securities instantly raised its target price for Samyang Foods by KRW 500,000 to KRW 1.7 million (US$ 1,225). Other brokerages also issued reports on the same day, raising target prices by at least KRW 150,000 (US$ 108.1) to KRW 300,000 (US$ 216.2) or more. What’s particularly notable is that analysts agree that Samyang Foods shows no signs of slowing down. Son Hyun-jung, an analyst at Yuanta Securities, stated, “Samyang Foods continues to deliver exceptional performance in the food and beverage sector, driven by global brand power centered on the Buldak IP and a high-profit structure.” Han Yu-jung of Hanwha Investment & Securities said, “This is another earnings surprise. Samyang Foods continues to show incomparable growth and profitability, so we maintain a strong buy recommendation.” In fact, all of Samyang Foods’ business segments are poised for continued high growth. The Buldak series is steadily gaining traction in major U.S. retail chains such as Costco, Walmart, Kroger, and Target. The sales growth rate of the U.S. subsidiary in Q1 reached nearly 77%. In Europe, too, sales are on the rise, particularly in countries like the Netherlands and Germany. Samyang Foods established its European subsidiary in Q3 2023, and its quarterly sales jumped from KRW 2.7 billion (US$ 1.9 million) to KRW 24.6 billion (US$ 17.7 million) in just two quarters. Given that export volumes to Europe were somewhat delayed in Q1 due to shipping issues, analysts believe that Q2 sales could experience explosive growth. Derivative products like Buldak Sauce also posted a sales growth rate of 83.6%, demonstrating the brand’s powerful presence in global markets. When the second Miryang factory begins full operation in July to meet export demand, performance expectations are likely to be raised even further. The Miryang No. 2 Plant has six production lines capable of manufacturing up to 690 million packs of ramen per year. This represents an almost 40% increase over the current capacity of 1.8 billion packs. Samyang Foods’ quarterly earnings forecasts for this year reflect these rosy prospects. Major brokerages expect operating profits to continue breaking records, reaching KRW 134 billion (US$ 96.5 million) in Q1, followed by KRW 140 billion (US$ 100.9 million) in Q2, KRW 150 billion (US$ 108.1 million) in Q3, and KRW 160 billion (US$ 115.3 million) in Q4. If these forecasts come true, Samyang Foods is likely to surpass KRW 500 billion (US$ 360.1 million) in annual operating profit for the first time in its history this year, and potentially reach KRW 700 billion (US$ 504.2 million) by next year. Hanwha Investment & Securities has already projected an operating profit of KRW 679 billion (US$ 491.2 million) for next year. This would be an unprecedented achievement, one that even long-established competitors like Nongshim and Ottogi have never reached. It signals that Samyang Foods is poised to lead a new era in the ramen industry. Vice Chairman Kim Jung-soo is already preparing to expand the Buldak success story. In April, she resigned as CEO of Samyang Round Square, the group's holding company—just 1 year and 7 months after assuming the role in September 2023. Samyang Foods explained that Kim stepped down to focus solely on her role as CEO of Samyang Foods, with responsibilities centered on expanding business portfolios, diversifying exports, and managing tariff strategies. This move is widely seen as a declaration by the owner-executive to fully capitalize on the booming popularity of the Buldak series. Kim is also gaining attention from international media. The Wall Street Journal published a feature on her in January 2023, describing her journey from housewife in a chaebol family to CEO of a company once on the brink of bankruptcy as something “straight out of a Korean drama.” Forbes named her one of the “50 Over 50: Asia 2024” and praised her as one of the few female leaders in Korea to run a family-owned conglomerate in a traditionally patriarchal culture. #SamyangFoods #KimJungSoo #BuldakBokkeumMyun #ramenindustry #earningssurprise #globalexpansion #Q1results #ForbesAsia #WallStreetJournal #Koreanfoodindustry
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- Factional Conflict at Woori Bank—Yim Jong-ryong Taps Jung Jin-wan to Lead Integration Era
- “Sentiments of division and discord, outdated and rigid work practices, and opaque and unfair personnel policies—these shadow-side elements of our culture must now come to an end.” At first glance, this may sound like a politician’s speech, but it is actually part of the inauguration address delivered by Yim Jong-ryong, Chairman of Woori Financial Group, in March 2023. Factions within the organization have long been seen as a chronic issue for both Woori Financial Group and Woori Bank. Even 26 years after the bank’s formation through the merger of the former Commercial Bank and Hanil Bank, internal conflict between the “Commercial faction” and the “Hanil faction” is known to persist. From the outset of his term, Chairman Yim Jong-ryong declared an all-out effort to eliminate factionalism within the group. At Woori Bank, the group’s key affiliate, it is President Jung Jin-wan who is actively executing Yim’s vision. ◆ Deep-rooted division left behind by “equal merger” Factional conflict at Woori Bank began when Commercial Bank and Hanil Bank, both with similar assets and workforce sizes, underwent an equal merger during the 1998 IMF crisis. While the merger looked well-balanced from the outside, internally, tensions ran high as employees from both banks struggled to hold onto influence. With Commercial Bank boasting a 100-year history and Hanil Bank 67 years, pride in their respective legacies only deepened the divide. The effects of factionalism spilled into personnel decisions, promotions, and overall decision-making processes. In the early 2010s, consecutive appointments of Commercial Bank alumni such as Lee Soon-woo and Lee Kwang-goo as Woori Bank presidents led to backlash from Hanil Bank employees. Later, in October 2017, Woori Bank became embroiled in a hiring scandal following a whistleblowing incident by Hanil Bank affiliates, which was revealed by Justice Party lawmaker Sim Sang-jung. Most of the executives who stepped down over the scandal were from Commercial Bank. At one point, the conflict was so severe that employees from different factions wouldn’t even dine together. In response, Woori Bank attempted a “mechanical balance” strategy—alternating key positions such as bank president and senior deputy president between the two factions. However, this approach was criticized for slowing decision-making and reinforcing the perception that background trumped competence. There is also speculation that the improper lending scandal involving former Chairman Sohn Tae-seung’s relatives stemmed from factionalism. At a National Assembly audit on October 10, 2024, Democratic Party lawmaker Kim Hyun-jung told Chairman Yim, “Woori Financial Group's characteristic factional culture is undermining internal controls.” Yim acknowledged, “It is true that remnants of factional culture remain,” and added, “We must eradicate this shadow culture to restore integrity and will work toward corporate culture reform.” ◆ Jung Jin-wan, the “integration generation” entrusted by Yim Jong-ryong, begins by erasing origins Woori Bank President Jung Jin-wan was the youngest among the six candidates for the role and had only been promoted to Deputy President of the SME Group a year earlier. His appointment is widely believed to reflect the strong will of Yim Jong-ryong, who chaired the CEO nomination committee. Jung is seen as the ideal figure to dismantle factionalism at Woori Bank. Though he is from Hanil Bank and experienced the conflict firsthand, his short tenure before the merger means he was never deeply involved in any faction. He has said, “I’m from Hanil Bank, but I went through the merger after just two and a half years, so I don’t really understand the factional conflict.” Upon taking office, Jung immediately began executing Yim’s anti-factionalism agenda. In his first personnel move in January, he ordered the removal of employees’ bank origins from personnel records. He also directed the deletion of other unrelated personal information such as education, military service, and hometown—an open declaration that merit, not faction, would come first. He is also working to unify the two alumni groups that had long remained divided. For decades after the merger, the alumni associations of the former Commercial and Hanil banks continued to operate separately. These two groups are now being merged under the single name “Woori Bank Alumni Association.” This move goes beyond just a name change—it is aimed at dismantling factional networks and fostering a stronger sense of unity under the Woori Bank banner. ◆ One year left in Yim Jong-ryong’s term—Jung Jin-wan’s success is key to reappointment Chairman Yim Jong-ryong’s term ends in March 2026. The performance of Woori Financial Group—and especially Woori Bank—in 2025 will be a key factor in whether Yim is reappointed. After the scandals involving former Chairman Sohn Tae-seung and former bank president Cho Byung-kyu, Woori Bank’s most pressing task is to restore trust. And dismantling factionalism is one of the most crucial steps toward that goal. Whether Jung Jin-wan can successfully fulfill the mission of overcoming internal division and restoring trust may well determine Yim Jong-ryong’s chances for another term. Some even speculate that this year will be a pivotal period for Jung to lay the groundwork to one day become Chairman of Woori Financial Group. Born in 1968, Jung is still relatively young and just beginning his tenure. However, if Yim is reappointed, Jung may take on an increasingly influential role within the holding company after his term as bank president ends. One financial industry insider said, “It’s too early to talk about President Jung’s future,” but added, “If Yim Jong-ryong is reappointed next year, we cannot rule out the possibility that Jung will continue working closely alongside him at Woori Financial Group.” #YimJongRyong #JungJinWan #WooriBank #WooriFinancialGroup #factionalconflict #corporateculture #leadershipchange #trustrecovery #Koreanfinance #bankingindustry
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- Hanwha Group’s Kim Dong-seon Faces Tough Test—New Businesses and Iraq Project Shrouded in Uncertainty
- Kim Dong-seon, executive vice president of Hanwha Galleria’s Future Vision Division and head of the Overseas Business Division of Hanwha’s Construction Unit, who is also the third son of Kim Seung-yeon, chairman of Hanwha Group, is now in a position where he must prove his management capabilities as he takes charge of a key pillar following the group’s business structure reorganization. As head of future vision, Kim is responsible not only for multiple affiliates involved in new businesses but also for leading Hanwha’s Iraq new city project under the Construction Unit, which had long been on hold. However, both the new business affiliates and the Iraq project face high levels of uncertainty, suggesting that proving his management ability will not be easy. According to sources inside and outside Hanwha Galleria on May 15, it is expected that achieving clear performance improvement this year will also be difficult. According to Hanwha Galleria’s quarterly report released the previous day, it recorded consolidated revenue of KRW 129.3 billion (US\$ 93.3 million), operating profit of KRW 1.8 billion (US\$ 1.3 million), and a net loss of KRW 4.5 billion (US\$ 3.2 million) in Q1. Although revenue slightly increased compared to a year earlier, operating profit dropped 75.7% and the company returned to a net loss. Hanwha Galleria’s department store and food & beverage businesses are considered Kim’s “main” responsibilities among the seven Hanwha Group affiliates in which he holds major positions. He currently oversees future vision for six affiliates including Hanwha Galleria and heads the Overseas Business Division of the Construction Unit. At Hanwha Galleria, his home base, Kim had already received poor marks in operating profit last year, meaning extraordinary efforts are required this year for a noticeable rebound. In 2023, Hanwha Galleria recorded consolidated revenue of KRW 538.3 billion (US\$ 388.1 million) and operating profit of KRW 3.1 billion (US\$ 2.2 million). Compared to 2022, revenue rose 23.9%, but operating profit declined 68.4%. Among other affiliates under Kim’s future vision oversight, Hanwha Hotels & Resorts also appears to be seeing a slowdown in performance improvement. In 2023, it recorded consolidated revenue of KRW 750.9 billion (US\$ 541.4 million) and operating profit of KRW 13.8 billion (US\$ 10.0 million), with revenue rising just 2.6% and operating profit falling 42.0% year over year. Affiliates launched through a restructuring to focus on future growth, such as Hanwha Vision, Hanwha Semitek, and Hanwha Momentum—centered on semiconductor and secondary battery equipment—as well as Hanwha Robotics, launched in October 2023, are also reportedly struggling with improving performance or have yet to achieve meaningful revenue. Over the past two years, Hanwha Group restructured into three pillars: defense, shipbuilding, energy, and chemicals under the eldest son Vice Chairman Kim Dong-kwan; finance under the second son President Kim Dong-won; and machinery and services (retail) under Kim Dong-seon. However, compared to the core businesses of Vice Chairman Kim Dong-kwan, which each generate several trillion won annually, or the well-established financial sector under President Kim Dong-won, many see that Kim Dong-seon still needs to prove his managerial ability through the machinery and service businesses. Kim is also seen exploring various breakthrough strategies, including the KRW 869.5 billion (US\$ 626.5 million) acquisition of Ourhome by Hanwha Hotels & Resorts and spearheading new food and beverage ventures such as the Five Guys burger franchise. His recent decision to stop using social media, which he had previously used as a promotional tool, is also interpreted as a sign that he is focusing on management and aiming to produce results. A Hanwha Group official commented on the completion of the 58.62% stake acquisition in Ourhome by Hanwha Hotels & Resorts, saying, “We plan to lead major changes in both the domestic and global food markets with Ourhome’s strong presence in food service and ingredient distribution. We will also pursue diverse collaboration with various group affiliates.” With few visible achievements so far in his role overseeing future vision for several affiliates, Kim now faces even greater pressure to produce results at Hanwha’s Construction Unit, where he returned after seven years since 2017. In January last year, Kim was promoted to head of the Overseas Business Division, which had been elevated from a department to a division. Kim now leads Hanwha’s Iraq Bismayah new city project, which is seen as a key to performance recovery alongside domestic complex development projects during the current construction sector downturn. The Bismayah project involves building a large-scale new city—including 100,080 housing units and infrastructure—about 10 km southeast of Baghdad, the capital of Iraq. At the end of 2023, Hanwha Construction recovered US\$ 230 million (KRW 320.7 billion) in overdue payments from Iraq and resumed partial construction on 30,000 housing units. Kim’s appointment as the head of the overseas division came amid growing expectations for the project’s resumption. Hanwha Construction signed a revised agreement with the National Investment Commission (NIC) of Iraq at the end of last year and is awaiting cabinet approval, increasing the likelihood of full-scale resumption. With the completion of the partially resumed work by the end of this year, Hanwha is expected to begin receiving an additional US\$ 220 million (KRW 306.7 billion) in outstanding payments, opening the door to continue construction on the remaining 70,000 housing units. However, uncertainties surrounding the Bismayah project remain, due to ever-changing conditions in the Middle East and obstacles to local project implementation that have caused repeated halts in the past. Given that the Bismayah project is Hanwha Construction’s only overseas business and accounts for the largest share of its workload, many view Kim Dong-seon’s responsibilities as particularly heavy. Hanwha signed the original contract for the Bismayah project in May 2012, a full 13 years ago. The project has consistently faced delays over payment issues and was once suspended in 2020 due to the COVID-19 pandemic. In October 2022, Hanwha Construction even decided to withdraw from the project due to unpaid construction costs. Former CEO Vice Chairman Choi Kwang-ho’s rise within the company—credited to his success in managing the Bismayah project—shows how significant the project is within Hanwha. According to industry sources, the Bismayah project still carries risks such as prolonged construction timelines, persistent issues with payment recovery—a chronic problem in Middle East projects—and security costs. According to Hanwha’s IR data, the company’s construction backlog stood at KRW 22.5 trillion (US\$ 16.2 billion) as of the end of last year, with the Bismayah project accounting for around KRW 9.2 trillion (US\$ 6.6 billion), or 40% of that. Hanwha Construction stated after signing the revised contract, “We are doing our utmost to obtain approval from the Iraqi cabinet,” and added, “If Korea’s largest new city export project resumes, it is expected to revitalize the stagnant construction market and contribute to the national economy.” #KimDongseon #HanwhaGroup #HanwhaGalleria #FutureVision #HanwhaConstruction #BismayahProject #IraqNewCity #OurhomeAcquisition #FiveGuysKorea #HanwhaLeadership #GroupRestructuring #KoreanConstruction #GlobalBusiness #MiddleEastProjects #HanwhaHotelsAndResorts
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- Korea Investment & Securities' Overwhelming Q1—Kim Sung-hwan's Strategy Cements Lead
- Kim Sung-hwan, the President and CEO of Korea Investment & Securities, has delivered a “surprise performance” in the first quarter that far exceeded market expectations, achieving a level of profit significantly higher than domestic rival securities firms. Following his appointment last year, he led Korea Investment & Securities to become the No. 1 securities firm in terms of operating profit and net profit in South Korea. This year, he continues to solidify its position as the country’s leading securities company with a “differentiated strategy.” According to consolidated first-quarter results released on May 15 by major domestic securities firms, Korea Investment & Securities recorded an operating profit of KRW 518.8 billion (US\$ 373.9 million) and a net profit attributable to controlling shareholders of KRW 447.6 billion (US\$ 322.5 million), ranking first among Korean securities companies. Compared to one year ago, operating profit increased by 32%, and net profit rose by 22%. What stands out is the wide performance gap between the second and third-ranked firms. Mirae Asset Securities and Samsung Securities, which ranked second and third respectively, posted operating profits in the mid-KRW 300 billion range and net profits in the mid-KRW 200 billion range. The difference in quarterly operating profit compared to Korea Investment & Securities is approximately KRW 170 billion (US\$ 122.6 million), and the gap in net profit is close to KRW 190 billion (US\$ 137.1 million). Korea Investment & Securities was also No. 1 in operating and net profit in Q1 last year, but the gap with the second-ranked firm then was only around KRW 50 billion (US\$ 36.1 million). This is the first time that a domestic securities company has reported KRW 500 billion-level (US\$ 360 million-level) operating profit and KRW 400 billion-level (US\$ 290 million-level) net profit in a single quarter. Korea Investment & Securities has now reached a higher tier of profitability. The securities industry has responded positively to the first-quarter surprise earnings. On the same day, nine securities firms that issued reports on Korea Financial Holdings, the parent company of Korea Investment & Securities, all raised their target stock prices. Thanks to Korea Investment & Securities’ strong Q1 performance, Korea Financial Holdings posted a consolidated operating profit of KRW 529.6 billion (US\$ 381.8 million) and net profit of KRW 458.4 billion (US\$ 330.2 million), up 39% and 34% respectively from the previous year. Jung Tae-joon, an analyst at Mirae Asset Securities, said, “Korea Financial Holdings’ Q1 net profit far exceeded our estimate of KRW 359.1 billion (US\$ 258.9 million) and the market consensus of KRW 343.8 billion (US\$ 248.1 million),” and added, “It demonstrated a different level of earnings power based on overwhelming trading profits compared to competitors.” He raised his target price for Korea Financial Holdings from KRW 110,000 to KRW 120,000. Kang Seung-gun, an analyst at KB Securities, stated, “Korea Financial Holdings delivered an earnings surprise by significantly exceeding market expectations due to strong performance in investment banking (IB) and trading,” and raised his target price from KRW 100,000 to KRW 130,000. It is being evaluated that CEO Kim’s differentiated strategy for becoming the “overwhelming number one” is paying off. Kim, a renowned expert in real estate project financing (PF) in the domestic financial investment industry, previously served as head of project finance, group head of IB, executive vice president overseeing business planning, and head of the retail customer group before becoming CEO in January 2024. As a professional executive who has covered all major business areas of a securities firm—including PF, IB, retail, strategy, and trading—he now leads Korea Investment & Securities as the sole CEO. This is noteworthy considering that many securities firms now operate under a co-CEO system with separate heads for each business area. Since taking office, Kim has focused on structural reform, such as strengthening the asset management (AM) division, to ensure stable performance. As of the end of Q1, the balance of financial products for retail clients at Korea Investment & Securities stood at KRW 72.3 trillion (US\$ 5.21 billion), with an average of KRW 1.5 trillion (US\$ 108.2 million) in new monthly inflows. The AM division is considered relatively stable among the business assets of securities companies. Expanding the AM business could provide opportunities to pursue more aggressive innovation in other sectors such as brokerage, IB, and sales and trading. Kim is also credited for improving Korea Investment & Securities’ global competitiveness by expanding partnerships with leading overseas financial institutions and offering Korean investors new investment opportunities. Since his appointment, he has continued to build cooperative ties with major global financial players like Goldman Sachs, the Carlyle Group, and Anchorage Capital. This month, he met with John Waldron, President and COO of Goldman Sachs, at the company’s New York headquarters and signed a memorandum of understanding for strategic collaboration. On the back of these achievements, Kim led Korea Investment & Securities to No. 1 in both operating and net profit in his first year in office. While several companies posted KRW 1 trillion (US\$ 720 million)-level operating profits in 2023, Korea Investment & Securities was the only one to surpass KRW 1 trillion in net profit as well. Until now, Korea’s securities market has seen major firms such as Korea Investment & Securities, Mirae Asset Securities, Samsung Securities, NH Investment & Securities, and Kiwoom Securities frequently swapping positions, without a clear market leader. However, if Korea Investment & Securities continues its strong performance throughout the remainder of the year, it could solidify its position as the leading securities firm for two consecutive years. This aligns with the goal CEO Kim has always emphasized. His sights are already set beyond domestic competition toward the global market. In his New Year’s address this year, Kim stated, “In 2025, our goal is to become an overwhelming and completely differentiated number one, beyond competition within the securities industry.” In his inauguration speech last year, he declared his vision to make Korea Investment & Securities “the No. 1 securities firm in Asia, surpassing Korea’s leading financial investment companies,” with the goal of becoming the “Goldman Sachs of Asia.” Kim is known for urging employees to view global tech companies—not domestic securities firms—as competitors, emphasizing the importance of innovation and change. The full-year performance outlook for Korea Investment & Securities is considered positive. Changes in the business environment, such as a potential base rate cut, are expected to greatly benefit performance. With the largest asset under management (AUM) among Korean securities firms, Korea Investment & Securities is projected to be the biggest beneficiary of a base rate cut by the Bank of Korea or other central banks. A key task for Kim in the second half of the year will be entering the Integrated Management Account (IMA) business. IMA is a product in which a securities firm invests client deposits in corporate finance to generate returns. Korea Investment & Securities is widely viewed as the strongest candidate to become Korea’s first IMA securities company. Yoon Yoo-dong, an analyst at NH Investment & Securities, stated in a report that “Korea Investment & Securities is the leading candidate for the new IMA business,” adding that “considering its Q1 net interest margin (NIM) of 1.86% on issuance-based notes, even a similar 1% return from IMA would significantly boost interest income next year.” #KimSunghwan #KoreaInvestmentSecurities #Q12025Earnings #FinancialLeadership #ProjectFinance #InvestmentBanking #AssetManagement #GlobalStrategy #GoldmanSachsOfAsia #KoreaFinance #LeadingSecuritiesFirm #KoreaFinancialMarket #CEOLeadership
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- Hana Bank Eyes Ham Young-joo Level Sales Power Again—Lee Ho-sung: “I Carve a Path Through Mountains”
- Can Lee Ho-sung, the president of Hana Bank, restore Hana Bank's position as the leading bank? President Lee is regarded as the right person to restore leadership at Hana Bank, having been recognized as a sales expert within Hana Financial Group, second only to Chairman Ham Young-joo in terms of field experience and sales capabilities. Hana Bank is currently facing a complex crisis, including low growth, high exchange rate volatility, and fierce net profit competition, raising attention on how it will recover. ◆ Hana Bank fell behind in the leading bank competition last year; President Lee Ho-sung’s efforts to reclaim the position Hana Financial Group has traditionally relied heavily on the banking sector, which accounts for the overwhelming majority of its total net profit. In 2022 and 2023, when Hana Bank took the top spot in net profit among domestic banks, the banking division accounted for nearly 90% of the group’s performance. However, in 2024, Hana Bank lost the leading position to Shinhan Bank and fell to second place—a painful development for a bank with such high dependency on its banking business. Industry analysts point to multiple factors behind Hana Bank’s loss to Shinhan Bank, including high funding costs, a declining net interest margin, increased risk exposure from expanding corporate loans, and aggressive market strategies by rival banks. President Lee Ho-sung is tightening internal operations by sharing his wealth of sales know-how with employees to reclaim the lost leading position. Since his appointment, President Lee has focused on strengthening internal capabilities, holding leadership and sales know-how lectures twice a month for all employees, and working to strengthen communication between headquarters and field operations. According to Hana Financial Group’s Q1 2025 earnings report, Hana Bank posted net profit of KRW 992.9 billion (US\$ 715.9 million) in Q1 2025, up 17.8% from Q1 2024 and 72.5% from Q4. Notably, non-interest income rose 41.9% compared to Q1 2024. This is seen as the result of President Lee leveraging synergy across core banking areas such as corporate finance, foreign exchange, and asset management to diversify the bank’s revenue base. ◆ Restoring a ‘Customer-Centered’ Management Culture Based on Field Experience President Lee Ho-sung has presented “customer-centered” management as a key theme and focal point for regaining the leading bank position and redefining Hana Bank’s management values. His inauguration speech outlined three core strategies: △ Expanding the customer base for sustainable growth △ Innovating business models to build a stable revenue base △ Redefining a customer-centered corporate culture. In particular, President Lee declared the recovery of “Hana Bank’s unique customer-centered sales DNA,” making it clear that he aims to embed a “Customer First” culture into the bank’s DNA with all employees acting as One Team. He places high priority on visiting branch locations in person, actively listening to customer feedback, and solving problems alongside field teams as a model leader. Immediately after taking office, he visited the Gwacheon Financial Center branch and met with major corporate clients to hear their business challenges, underscoring his field-driven management style. Additionally, he is making every effort not only to establish a customer-centered mindset among all employees but also to identify new sources of revenue. Notable examples include Hana Bank’s introduction of the AI chatbot “Hana Hi-Chatbot” for corporate clients and the expansion of the senior-targeted integrated brand “Hana The Next,” actively targeting structurally growing markets. These diversified sales strategies are viewed as a move beyond traditional interest-based banking toward stable, diversified revenue streams. In this way, President Lee Ho-sung is leading a comprehensive strategy focused on restoring Hana Bank’s traditional “sales DNA,” grounded in the field and customer engagement, while aiming for sustainable growth and profitability. ◆ Lee Ho-sung’s Sales DNA and the Success Story of ‘TraveLog’ Born in 1964, Lee Ho-sung graduated from Daegu Jungang Commercial High School and began his career in 1981 at Hanil Bank, joining Hana Bank in 1992. He built most of his career in the sales field, serving as Head of the Gangnam/Seocho Sales Division, Head of the Central Sales Division, Head of the Yeongnam Sales Group, and Deputy President overseeing all sales groups. Through these roles, he learned customer-centered management through direct customer engagement and achieved notable performance. His most widely recognized success came during his tenure as CEO of Hana Card, when he introduced the “TraveLog” card. Specialized for overseas travel, the TraveLog card accurately targeted the post-COVID surge in international travel, surpassing 7 million subscribers and becoming a huge hit. This success significantly contributed to boosting Hana Card’s sales capacity and profitability and established his reputation as a leader who spreads positive energy throughout Hana Financial Group. The TraveLog card maximized customer convenience by offering 24/7 mobile currency exchange services and expanding the number of supported currencies from five to 58, demonstrating product innovation. It also increased customer loyalty by reducing cardholder fees, showing a customer-first strategy. Such innovations helped Hana Card steadily improve profitability, with its cumulative net profit in Q3 2023 reaching KRW 188.4 billion (US\$ 1.36 billion), a 44.8% increase compared to Q3 2022. In this way, Lee Ho-sung has proven himself as a true “sales expert,” known for personally engaging the field and practicing customer-first management with strong execution and innovative thinking. Now, financial circles are closely watching to see if President Lee can lead Hana Bank back to its position as Korea’s leading bank through his active leadership—just as his personal motto says: “Even when blocked by mountains and rivers, create roads and bridges to move forward.” #LeeHosung #HanaBank #KoreaFinance #LeadingBank #CustomerFirst #TraveLogCard #SalesLeadership #HanaFinancialGroup #BankProfitability #KoreanBanking
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- Kumho Petrochemical Completes Rubber Plant Expansion, Park Jun-kyung Seeks Rebound Amid Industry Downturn
- Park Jun-kyung, President of Kumho Petrochemical, is seeking a breakthrough to rebound operating profit after four years amid a general downturn in the petrochemical industry, through the synthetic rubber business. President Park is expected to focus more on the functional synthetic rubber (EPDM) segment following the completion of the expansion of the EPDM facility at the subsidiary Kumho Polychem. According to Kumho Petrochemical on May 14, the expansion of the fifth EPDM production line at Kumho Polychem’s second plant in Yeosu, Jeollanam-do has been completed, and high-value synthetic rubber sales are expected to increase going forward. EPDM is a high-performance specialty synthetic rubber that can withstand more extreme environments than general-purpose synthetic rubber. It has excellent heat resistance, weather resistance, and chemical resistance, and is widely used in automotive weatherstrips (rubber products that block water and dust in car gaps), tire tubes, hoses, marine cables, wires, and construction sub-materials. Once the second plant in Yeosu becomes fully operational, Kumho Petrochemical's EPDM production capacity will increase from 240,000 tons to 310,000 tons per year. This would place the company as the third-largest global producer, behind Arlanxeo of the Netherlands and Dow of the United States. Kumho Petrochemical's global market share for EPDM, which had hovered around 10%, is expected to rise to 12%. The EPDM production line marks the first major investment decision made by Park Jun-kyung since he was promoted to Executive Vice President and began actively participating in management in 2021. President Park decided in 2022 to invest KRW 300 billion (US\$ 216.2 million) to expand the EPDM plant at Kumho Polychem. Kumho Polychem was founded in 1985 as a 50-50 joint venture between Kumho Petrochemical and Japanese Synthetic Rubber (now JSR). In 2021, Kumho Petrochemical acquired JSR's 50% stake and made Kumho Polychem a wholly owned subsidiary. Since EPDM is a high-value-added material and Kumho Polychem accounts for a significant portion of Kumho Petrochemical’s revenue, the expansion of the EPDM production line is expected to improve profitability. In Kumho Petrochemical’s 2024 consolidated financial results, Kumho Polychem recorded sales of KRW 667.3 billion (US\$ 480.9 million), accounting for about 10% of the total revenue of KRW 7.155 trillion (US\$ 5.16 billion). A Kumho Petrochemical official stated, “EPDM maintains a solid operating margin in the 10% range,” adding, “We expect this expansion to lead to improved performance over the long term.” According to export-import statistics from the Korea Customs Service, the export price of EPDM in the first quarter of 2025 stood at approximately US\$ 2,388 per ton. This is over US\$ 300 higher than the average export price of SBR (styrene-butadiene rubber), a general-purpose synthetic rubber used in car tires. The market outlook for EPDM is also positive. According to global research firm Coherent Market Insights (CMI), the EPDM market size is estimated to reach US\$ 5.28 billion (KRW 7.4801 trillion) in 2025, with a projected annual growth rate of 6% through 2032. The securities industry also analyzed that in addition to EPDM, the nitrile butadiene (NB) latex segment, which had been sluggish for some time, is showing signs of recovery and may help Kumho Petrochemical navigate the downturn in the petrochemical industry. NB latex is mainly exported to Southeast Asian countries. As their market share in the U.S. recovers, exports are expected to rise significantly. In the first quarter, U.S. imports of Chinese latex gloves dropped by about 80% compared to the same period a year earlier, due to a 50% tariff imposed on Chinese products. Accordingly, Malaysia’s share of the U.S. latex glove market increased from a minimum of 39% last year to 57%, a rise of around 20 percentage points. Kumho Petrochemical counts Malaysia and other Southeast Asian countries as key customers for its NB latex. Yoon Jae-sung, an analyst at Hana Securities, said, “With higher tariffs on Chinese gloves in the U.S., NB latex may see a rebound in performance,” and added, “If NB latex, which has been slightly in the red, also returns to profit, Kumho Petrochemical will achieve noticeable performance improvement.” For President Park Jun-kyung, a positive earnings outlook in 2025 may also work favorably in terms of management succession. In 2021, Kumho Petrochemical achieved its highest-ever earnings of KRW 2.4 trillion (US\$ 1.73 billion) thanks to a boom in NB latex during the COVID-19 pandemic. At that time, Park was promoted to Executive Vice President and Head of Sales, contributing to the record performance. However, due to the industry downturn, Kumho Petrochemical’s operating profit has continued to decline since 2022. Last year, for the first time in the 2020s, its operating profit dropped into the KRW 200 billion (US\$ 144 million) range. As a result, major domestic petrochemical companies have begun selling not only non-core but also core businesses to improve their financial structure. If Kumho Petrochemical sees a rebound in performance in 2025 after four years, it can be seen as a validation of President Park’s management ability, which is necessary for succession. According to Kumho Petrochemical’s business report at the end of last year, Park Jun-kyung holds a 7.99% stake, while Park Chan-koo, Chairman of Kumho Petrochemical Group, holds 7.46%. The combined stake of the chairman and related parties is around 16%. President Park is in a position where he must inherit Chairman Park’s shares, but to secure management rights at Kumho Petrochemical, he needs to prove his management capabilities and gain the support of friendly shareholders, including the National Pension Service. The largest individual shareholder of Kumho Petrochemical is Park Cheol-wan, former executive director and nephew of Chairman Park Chan-koo, who holds a 9.51% stake. Park Cheol-wan has been engaged in a management rights dispute through shareholder meetings since 2021. However, after failing to secure friendly shares, he did not show any intention to continue the dispute at this year’s shareholder meeting, and the so-called “nephew’s rebellion” is now considered effectively over. #ParkJunkyung #KumhoPetrochemical #EPDM #SyntheticRubber #NBLatex #PetrochemicalIndustry #KoreaBusiness #SuccessionPlan #ShareholderDispute #KumhoPolychem
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- SK Group's Credibility Plunges After Hacking Scandal — Will Chey Tae-won Double Down on Security Spending?
- Chey Tae-won, Chairman of SK Group, is expected to significantly expand investments in information security to restore trust that was damaged by the hacking incident at SK Telecom. In particular, as SK Group is involved in fields such as artificial intelligence (AI), semiconductors, and telecommunications—where data and infrastructure security are essential—the perception that security investment is a matter of survival, not just cost, is spreading within the group. As a result, there are growing calls that SK Group needs to double its current security investment levels to match the information protection capabilities of advanced countries like the United States. On May 14, SK Group announced the establishment of a Special Committee on Information Security Innovation, which will include external experts. The committee will be led by Choi Chang-won, Chairman of the SK SUPEX Council, and will review measures to strengthen information security. This move came just a week after Chairman Chey issued a public apology on May 7, stating, “The SK Telecom hacking incident should be viewed not as a security issue but as a matter of national defense,” and pledged to “conduct a group-wide review of our security systems and expand security investments.” However, specific investment plans for information security have not yet been finalized. An SK Group official stated, “The scale of security investment will be determined after the official investigation results are released by the Ministry of Science and ICT and the Korea Internet & Security Agency (KISA),” adding, “Discussions will take place during the monthly regular meetings of the Special Committee on Information Security Innovation.” SK Telecom has been criticized for investing less in information security than its competitors following the hacking incident. In 2023, SK Telecom spent approximately KRW 60 billion (US\$ 43.3 million) on information security (KRW 86.8 billion or US\$ 62.5 million including SK Broadband), which was less than KT’s KRW 121.8 billion (US\$ 87.9 million) and LG Uplus’s KRW 63.2 billion (US\$ 45.6 million). The information security investment amounts of major SK affiliates in 2023 were: SK hynix KRW 62.7 billion (US\$ 45.2 million), SK Inc. KRW 15.8 billion (US\$ 11.4 million), SK Planet KRW 7 billion (US\$ 5 million), SK On KRW 5.2 billion (US\$ 3.7 million), and SK Energy KRW 4.4 billion (US\$ 3.2 million). In total, SK Group invested about KRW 210 billion (US\$ 151.4 million) in information protection. The ratio of information security investment to IT investment stood at 5.3%, falling short of the domestic average of 5.8%. In contrast, U.S. companies are estimated to allocate as much as 26% of their IT budgets to information security. U.S. big tech companies, which are at the forefront of AI competition, have recently been pouring large sums into security technologies and infrastructure. Google paid an astronomical sum of US\$ 32 billion (KRW 45.5 trillion) to acquire cybersecurity startup Wiz in March of this year. Amazon and Microsoft have also been continuously acquiring cybersecurity firms in recent years. Given this, some argue that SK Group must at least double its current level of security investment. Protecting data in the group’s core businesses—AI, semiconductors, and telecommunications—is vital for survival, and must no longer be treated as a cost issue. SK Telecom is currently reviewing a plan to increase its annual information security investment from KRW 60 billion (US\$ 43.3 million) to at least KRW 100 billion (US\$ 72.1 million). Other affiliates are also expected to evaluate vulnerabilities and finalize their security budgets accordingly. The group-wide security investment strategy will be discussed under the leadership of the Special Committee on Information Security Innovation. Kwon Heon-young, a professor at Korea University’s Graduate School of Information Security and external advisory chair of the SK Group Special Committee, told Business Post, “In the past, government regulations played a bigger role in Korea’s information security landscape,” adding, “But this committee’s establishment marks a major step forward, as it reflects a voluntary initiative by the group to prioritize security at the corporate level.” #SKGroup #CheyTaewon #SKTelecom #Cybersecurity #InformationSecurity #DataProtection #HackingIncident #AISecurity #SemiconductorSecurity #SecurityInvestment
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- Jung Sang-hyuk Reclaims Top Spot for Shinhan Bank — Now Must Defend Both Performance and Internal Controls
- “When the wind changes, you have to adjust the sail.” This is what Jin Ok-dong, Chairman of Shinhan Financial Group, said regarding the 2025 regular executive reshuffle within Shinhan Financial Group. Chairman Jin adjusted the sails by replacing the heads of 9 out of the 13 affiliates. Jung Sang-hyuk, the President of Shinhan Bank, is a representative figure who survived this “adjustment.” President Jung has a long-standing relationship with Chairman Jin Ok-dong. The two met in the mid-1990s at the Myeong-dong branch of Shinhan Bank, where they worked as deputy manager and bank staff, respectively, and have spent decades together within Shinhan Bank. In 2019, when Jin became the President of Shinhan Bank, Jung served as his chief secretary. He later rose to Managing Director of the Management Planning Group and then to Vice President, and finally became President of Shinhan Bank in 2023 as Jin Ok-dong took the helm at Shinhan Financial Group. It’s a career that truly fits the phrase “the king’s man.” However, President Jung’s retention in the 2025 reshuffle is certainly not just due to his relationship with Chairman Jin. Chairman Jin judged that Jung is the person best suited to carry out the current tasks assigned to Shinhan Bank. ◆ What he achieved must be defended — Jung Sang-hyuk’s first mission In 2024, President Jung Sang-hyuk led Shinhan Bank to a net income of KRW 3.6954 trillion (US\$ 2.66 billion), reclaiming the “leading bank” title after six years. The net income gap with second-place Hana Bank was KRW 339 billion (US\$ 244.5 million). However, many in the financial industry still say, “This is no time for complacency.” A KRW 300 billion (US\$ 216.2 million) gap can easily be overturned at any moment. Just in 2023, Shinhan Bank ranked third in terms of net income. The bank jumped two spots to take the top position, but it also faces the risk of falling just as quickly. In fact, Shinhan Bank, Hana Bank, and Kookmin Bank fiercely compete for the leading bank title each year. Since 2015, Shinhan Bank and Kookmin Bank have each held the title four times, while Hana Bank has won it twice. The “regained” achievement Jung delivered in 2024 now becomes a “defensive” mission in 2025. ◆ The eternal task for banks: Can Jung Sang-hyuk strengthen internal controls? Performance is not the only task President Jung faces. Strengthening internal controls, the eternal challenge for banks, is also a heavy responsibility for him. At the beginning of 2025, Shinhan Bank experienced an internal embezzlement case in part of its corporate lending division, which brought its ability to respond to financial incidents into question. President Jung’s inaugural message also emphasized “effective internal control.” Shinhan Bank elevated its Anti-Money Laundering Department to a headquarters-level division and promoted its head, Jung Hae-young, to Managing Director, thereby strengthening expertise and independence. Additionally, at the beginning of this year, the bank reorganized the responsibility structure of its headquarters, began upgrading its fraud detection system (FDS), and enhanced its digital audit infrastructure, initiating a full-scale structural reform. ◆ The man Jin Ok-dong entrusted with Shinhan’s future — 2025 is a crucial year on Jung Sang-hyuk’s path to the chairmanship Chairman Jin Ok-dong did not entrust Shinhan Bank—Shinhan Group’s most important subsidiary—to Jung Sang-hyuk again just because he is “the king’s man.” Amid the rise of internet banks, digital transformation of traditional banks, and increasingly fierce competition to be the leading bank, Chairman Jin believed Jung was the most capable person to steer Shinhan Bank forward. The two-year term granted to President Jung could also be personally significant for him. He is considered one of the potential candidates for the future chairman of Shinhan Financial Group. In fact, most previous Shinhan Financial Group chairmen have served as Presidents of Shinhan Bank. Aside from the first chairman Ra Eung-chan, who was directly involved in establishing the holding company, the third chairman Cho Yong-byeong and current fourth chairman Jin Ok-dong both previously served as bank presidents. The term of the next chairman of Shinhan Financial Group is likely to run until March 2029. Born in 1964, Jung Sang-hyuk would be 66 in Korean age and 64 in international age by March 2029. If President Jung solidifies Shinhan’s leading position, strengthens internal controls, minimizes financial incidents, and leads the bank stably during the next two years, he is highly likely to emerge as a strong candidate for the next chairman of Shinhan Financial Group. This two-year term may well be the first year in Jung Sang-hyuk’s journey to becoming not just “the king’s man,” but “the king” himself. A source in the financial sector said, “The standard term for a bank president is two years initially, with a one-year extension upon reappointment. Jung’s two-year renewal shows the deep trust Chairman Jin Ok-dong has in him.” #JungSanghyuk #JinOkdong #ShinhanBank #ShinhanFinancialGroup #LeadingBank #KoreaFinance #InternalControl #BankingLeadership #DigitalTransformation #ChairmanSuccession
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- SK Telecom Hacking Crisis Threatens Earnings: Ryu Young-sang Risks Trillion-Won Losses
- Ryu Young-sang, CEO of SK Telecom, faces a difficult outlook for annual performance due to the aftermath of a hacking incident that will begin to take full effect from the second quarter. With a series of negative factors such as massive subscriber losses, controversy over penalty waivers, the imposition of fines, and the potential for class action lawsuits, expectations are growing that CEO Ryu will face significant pressure in defending this year’s earnings. According to combined forecasts from the securities industry on May 12, SK Telecom increased its operating profit in the first quarter compared to the same period last year, thanks to the growth of its artificial intelligence (AI) business. However, forecasts suggest that earnings will begin to decline from the second quarter due to the impact of the hacking incident. The company’s first-quarter consolidated earnings announced that day were generally in line with market expectations (consensus). According to financial information provider FnGuide, SK Telecom's first-quarter forecast for this year was KRW 4.5042 trillion (USD 3.25 billion) in revenue, KRW 535.2 billion (USD 386 million) in operating profit, and KRW 372.6 billion (USD 268.6 million) in net income. The company reported consolidated earnings of KRW 4.4537 trillion (USD 3.21 billion) in revenue, KRW 567.4 billion (USD 409 million) in operating profit, and KRW 361.6 billion (USD 260.7 million) in net income. Compared to the same quarter last year, operating profit increased by 13.82%, while revenue and net income decreased by 0.47% and 0.1%, respectively. The decrease in consolidated revenue was due to the sale of subsidiary SK Communications, but operating profit increased thanks to revenue growth from data centers and the AIX (AI transformation) business. However, as these first-quarter results do not reflect the impact of the hacking incident, earnings uncertainty is expected to increase going forward. At the beginning of this year, SK Telecom was expected to post annual earnings of KRW 18.127 trillion (USD 13.07 billion) in revenue, KRW 1.982 trillion (USD 1.43 billion) in operating profit, and KRW 1.3792 trillion (USD 994.3 million) in net income. However, this outlook is now in doubt due to the hacking incident. It has been reported that up to 270,000 subscribers left SK Telecom in the month following the incident on April 19. With new subscriber registration also suspended, direct damage to earnings is expected. The cost burden from SIM card replacements is also significant. SK Telecom is replacing SIM cards free of charge, and assuming a cost of KRW 7,700 (USD 5.55) per SIM card, the total cost could reach up to KRW 189 billion (USD 136.3 million). Jung Won-seok, a researcher at Shin Young Securities, recently stated in a report, “Under a pessimistic scenario in which new subscriptions are restricted through June and assuming daily losses of 15,000 in May and 5,000 in June, the estimated reduction in annual earnings is about KRW 150 billion (USD 108.1 million).” Once the Ministry of Science and ICT’s investigation into the hacking incident concludes in June, issues such as penalty fee waivers for switching carriers and the imposition of fines are expected to fully emerge. CEO Ryu is taking a defensive stance, arguing that waiving penalties would be a burden on company management. However, given public opinion and political pressure, the possibility that the company may accept the waiver cannot be ruled out. If penalty waivers are implemented, it is expected that subscriber churn will accelerate further, raising concerns that earnings will deteriorate more rapidly. At the National Assembly’s Science, ICT, Broadcasting and Communications Committee hearing on May 8 regarding the hacking incident, CEO Ryu stated, “If we waive penalties, we could lose at least 10% of our customers. Up to 5 million could leave in a single month, resulting in losses of more than KRW 7 trillion (USD 5.05 billion) when considering three years of revenue.” The fine could also amount to several hundred billion won. In 2023, LG Uplus was fined KRW 6.8 billion (USD 4.9 million) after the personal information of about 300,000 subscribers was leaked. However, the SK Telecom case involves approximately 25 million records, so the fine is expected to be much larger. Ko Hak-soo, Chairman of the Personal Information Protection Commission, said on May 8, “Even based on current findings, this is vastly different from LG Uplus’s case two years ago,” adding, “The scale of the fine for SK Telecom’s hacking case will be so large that it’s not even comparable.” Some suggest that the penalty could approach the legal maximum under the Personal Information Protection Act, which is 3% of total revenue. Based on SK Telecom’s revenue last year, the expected fine could reach KRW 530 billion (USD 382 million). Some subscribers are preparing to file damage claims against SK Telecom, and potential compensation from lawsuits could further weigh on future earnings. As of that day, the Naver café operated by a law firm preparing a class action lawsuit against SK Telecom had over 87,000 members. This represents a more than 45% increase from 60,000 members just four days earlier. Under current law, individuals not participating in the class action cannot receive compensation. However, if SK Telecom loses the lawsuit, similar lawsuits could follow. If we assume that all 25 million subscribers receive compensation of KRW 100,000 (USD 72), the total amount would reach KRW 2.5 trillion (USD 1.8 billion), far exceeding the company’s annual operating profit. Kim Hee-seop, Head of SK Telecom’s PR Center, avoided specific comments on earnings outlook during a daily briefing that day, stating only, “We are prioritizing measures to reassure our customers and plan to establish follow-up measures through the Trust Recovery Committee.” #SKTelecom #RyuYoungsang #HackingIncident #SubscriberLoss #PenaltyWaiver #DataLeak #KoreaTelecom #AIEarnings #SIMReplacementCost #ClassActionLawsuit
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- Coupang Adopts Amazon's 'Flywheel' DNA—Bom Kim's 'Bold Moves' Push Baemin and TVING to Join Forces
- Bom Kim, chairman of the board of Coupang Inc. (Coupang's parent company), is rapidly unveiling new strategies at lightning speed. These are efforts to expand influence in the food delivery and online video streaming service (OTT) markets, and Kim's approach is marked by unprecedented benefits that are unimaginable in other industries. Due to Kim's "boundary-pushing" ideas, only Baemin (Baedal Minjok) and TVING are bearing the brunt. On May 12, industry insiders commented that the “flywheel strategy” Bom Kim has been pursuing is accelerating at an increasing pace. The flywheel strategy, originally proposed by Amazon founder Jeff Bezos, refers to the effect where once business expansion gains momentum, it continues to grow on its own inertia. The concept stems from the principle that while it takes great force to get a large wheel moving initially, it becomes easier and faster to spin with less effort once it starts rotating. Coupang's virtual declaration of making Coupang Play free illustrates well the characteristics of Kim’s flywheel strategy. Recently, Coupang announced that starting in June, even non-members of its paid Wow Membership will be able to access Coupang Play through a new "free general membership" model if they watch advertisements. This “watch ads and watch for free” strategy is the opposite of Netflix and TVING’s “watch ads and get a cheaper rate” model. In fact, Netflix unexpectedly raised its monthly fee for its ad-supported plan from KRW 5,500 to KRW 7,000 (about USD 5.0). To access Coupang Play, one needs to subscribe to the Wow Membership, which costs KRW 7,890 (about USD 5.7) per month, but Coupang has torn down this paywall itself—something competitors never imagined possible. Considering that Coupang Play still does not generate profit, Kim's move is being evaluated as a “challenge to conventional thinking.” Kim's unconventional moves have already been seen several times in Coupang Eats. In April 2023, Coupang Eats offered unlimited discounts of 5–10% on order amounts for Wow Membership users. For example, ordering KRW 20,000 (about USD 14.4) worth of food would get you up to KRW 2,000 (about USD 1.4) off, all subsidized by Coupang. That Baemin and Yogiyo quickly followed suit with 10% unlimited discount promotions shows how aggressive Coupang Eats' offer was. In 2024, Coupang Eats raised the stakes again by introducing "free delivery." Since its main business, Rocket Delivery, began generating substantial profits, this move is seen as a strategy to invest those gains into Coupang Eats to expand its market influence. Coupang Eats, long burdened by the label of being third in the market, surpassed Yogiyo to become the second-largest delivery service around this time. After losing its market share lead, Yogiyo suffered financially and offered its first round of voluntary resignations in August last year. Baemin also lost its grip on its 60% market share held since September 2022. Coupang Eats, having taken down Yogiyo, is now inching into Baemin’s territory. Kim Bom-seok’s bold bets are leaving competing platforms in survival mode. One industry insider said, “We knew Coupang would eventually break through in either delivery or OTT, but didn’t expect it to happen so fast. Since Coupang now generates huge profits from its core business, it has the firepower to invest widely. For those of us focused on one field, the damage is substantial.” Within the delivery industry, there’s a growing complaint of “Why are we the first target?” A source from the delivery app industry said, “We assumed Coupang would lead with Coupang Play in the OTT space before tackling the delivery sector, but its aggressive entry into delivery has heightened the sense of crisis. If we can’t shift the current flow, tough times will continue.” CJ ENM's TVING is facing a similar crisis. TVING, which has been competing with Coupang Play for the No.2 OTT position behind Netflix, held the No.2 spot until February. However, starting in March, Coupang Play pulled ahead by about 430,000 monthly active users. Coupang Play began exclusively releasing popular drama series from HBO, a premium overseas broadcast channel, in March. With English Premier League (EPL) coverage starting in August, its momentum is expected to increase even more. CJ ENM claimed in its Q1 earnings release that ad-tier subscribers now account for nearly 40% of TVING’s users, a positive sign. However, many doubt whether this will be enough to stop the user shift toward Coupang Play. TVING also suffered a subscriber loss after ending its partnership with Naver in Q1. This serves as a case showing how ending collaboration with other platforms can hurt user retention, and regaining footing with in-house content alone may not suffice. TVING and Baemin appear to be exploring new joint service models as a stopgap measure. They are considering offering TVING content at no extra charge to subscribers of Baemin’s paid “Baemin Club” membership to boost monthly active users. #Coupang #BomKim #CoupangPlay #CoupangEats #TVING #Baemin #Yogiyo #OTTstrategy #deliverymarket #ecommerceKorea
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- Amorepacific’s Next Leader: Eldest or Second Daughter — Where Does Suh Kyung-bae’s Trust Lie?
- On May 21, 2021, a “Report on Large-Scale Stock Holdings” of Amorepacific Group (currently Amorepacific Holdings) was posted on the electronic disclosure system (DART). The report stated that Hong Jung-hwan, then Head of Investment Review at Bokwang Industrial Investment (currently CEO of Polestar Partners), would donate 100,000 shares of Amorepacific Group stock to Suh Kyung-bae, Chairman of Amorepacific Group. At the time, Hong was the husband of Suh Kyung-bae’s eldest daughter, Suh Min-jung. The shares that Hong donated to Chairman Suh were the same shares Suh had given to Hong when he became his son-in-law. This donation disclosure served as a message signaling that the much-publicized marriage between Suh Min-jung and Hong had ended in divorce, and it also marked the beginning of uncertainty regarding the succession structure of Amorepacific Group. ◆ Suh Min-jung, once a strong successor candidate, now facing a shift in momentum Suh Min-jung had long been considered a strong successor to Amorepacific Group. She joined Amorepacific in 2017, undergoing management training and taking the steps of a "successor-in-training." After graduating from Cornell University in the United States, she gained practical experience and gradually built her presence within the group. However, two years after the news of her divorce surfaced in 2021, Suh Min-jung submitted a leave of absence from Amorepacific in 2023. In some business circles, there were rumors that Suh had planned to remarry, which reportedly infuriated Chairman Suh Kyung-bae. In the same year, Chairman Suh donated 672,000 common shares (0.97%) and 1,728,000 preferred shares (12.77%) of Amorepacific Group (now Amorepacific Holdings) to his second daughter, Suh Ho-jung. This led to speculation in the business community that Suh Min-jung had fallen out of favor with her father due to her divorce and rumors of remarriage, and that Chairman Suh might be intending to hand over the group to Suh Ho-jung instead. In particular, analysts suggest that the 12.77% of preferred shares held by Suh Ho-jung could be a decisive factor in shaping the future ownership structure. Currently, Suh Min-jung holds 2.93% of Amorepacific Holdings’ common shares and 1.04% of its preferred shares. While her common shareholding is higher than Suh Ho-jung’s (0.97%), many observers believe she can no longer be clearly considered the “first in line” for succession. This is largely due to the significant influence of the 12.77% in preferred shares held by Suh Ho-jung. ◆ Suh Ho-jung quietly increasing her presence — a sign of change in the ownership structure? Second daughter Suh Ho-jung holds 12.77% of Amorepacific Holdings’ preferred shares. These preferred shares are not ordinary preferred shares; they are convertible into common shares ten years after the issuance date. While her common shareholding is currently minimal, the 12.77% in preferred shares is too significant to be overlooked. In fact, in its report on large-scale stock holdings, Amorepacific Holdings explicitly states that these shares are “preferred shares that will be converted into voting shares.” This means that the preferred shares held by Suh Ho-jung could, in the long run, become the basis for her to significantly expand her common shareholding and secure control over the holding company. In the past, Amorepacific’s preferred shares have been viewed as a means to reduce inheritance taxes. Since they currently carry no voting rights, they are less valuable, making them less burdensome in terms of gift tax. However, once they are converted into common shares ten years after issuance, their influence over corporate control greatly increases. The fact that Chairman Suh Kyung-bae gifted such preferred shares to his second daughter Suh Ho-jung is a strong signal that his favor may have shifted toward her. ◆ Succession structure still uncertain, the key variable is ‘Suh Kyung-bae’s intention’ Born in 1963, Chairman Suh Kyung-bae is not yet at an age where retirement is imminent. However, he is in a position where he must begin to establish a long-term succession plan, as corporate succession is not something that happens overnight. Suh Min-jung, once a strong successor candidate, has since faded from prominence, while Suh Ho-jung is still considered a relatively untested “rookie.” Based solely on the current shareholding structure, it appears the scale is tipping toward Suh Ho-jung. However, considering the traditional mindset of Korean conglomerates, the symbolic weight and expectations associated with the “eldest daughter” could still act as a variable in the succession structure. It is also known that Chairman Suh once had great trust in Suh Min-jung. A business insider remarked, “Back in 2020, Chairman Suh carried out a generational shift in the executive team, injecting a wave of younger talent into the group, and there was talk at the time that this was a strategic move to prepare the group for Suh Min-jung’s succession.” Given that neither daughter has yet demonstrated tangible management achievements, and considering the difficult market conditions faced by Amorepacific, it is unlikely that succession will proceed based solely on bloodlines and equity holdings. Amorepacific is grappling with risks such as a downturn in the Chinese market and intensifying competition in Korea’s beauty industry. The successor will need the capability and leadership to overcome these challenges. A business source noted, “The 12.77% in preferred shares held by Suh Ho-jung could be a crucial factor in determining Amorepacific’s future ownership structure,” adding, “However, since both daughters are still very young, their future performance and ability to gain market trust will ultimately shape the final succession plan.” #Amorepacific #SuhKyungbae #SuhMinjung #SuhHojung #KoreanChaebolSuccession #PreferredShares #FamilyOwnership #BeautyIndustryKorea #CorporateGovernance #InheritancePlanning
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- Chung Eui-sun Tackles Tariff Crisis with Hyundai’s Quality Management DNA
- Chung Eui-sun, Chairman of Hyundai Motor Group, is confronting the tariff crisis head-on with quality management. This comes as Hyundai appointed Executive Vice President Philippe Guerin-Boutaud, recognized as an expert in the fields of quality and safety, as its first head of the Global Product Operations Division. This move is seen as a strategic signal to compete with quality rather than price in the U.S. market, where the impact of auto tariffs will begin in earnest starting in June. On the 8th, within the automotive industry, Hyundai’s recent organizational restructuring was interpreted as a strategy to enhance its quality competitiveness and achieve strong results in the U.S. despite the auto tariffs. Quality management has been embedded as part of Hyundai’s “DNA” since Honorary Chairman Chung Mong-koo became chairman of the company in 1999. It is ironic that Honorary Chairman Chung came to emphasize quality management due to a quality controversy in the U.S. market. In 1998, Hyundai experienced a quality issue in the U.S., causing sales to plummet to historic lows. In 1999, Chung implemented a 10-year/100,000-mile free repair warranty in the U.S. Compared to Ford and General Motors (GM), which offered 3-year/36,000-mile warranties, and Toyota, which offered 5-year/60,000-mile warranties, Hyundai's policy was considered groundbreaking. He told employees, “Isn’t it enough to make and sell cars that won’t break down for 10 years?” Quality management, which Honorary Chairman Chung prioritized until stepping away from the frontline, is now regarded as fully established under Chairman Chung Eui-sun’s leadership. Last year, Hyundai Motor Group ranked first among 15 global automobile groups in the Initial Quality Study (IQS) conducted by U.S. market research firm J.D. Power. The IQS conducted by J.D. Power, launched in 1987, is considered the most prestigious automobile quality survey in the world. It evaluates the quality of new vehicles based on customer experiences within the first three months after purchase. Despite already being evaluated as possessing top-tier quality in the global market, Chairman Chung is expected to invest even more effort into raising quality. Hyundai is implementing a price freeze policy in the U.S. by utilizing pre-produced inventory. Hyundai CEO Jose Muñoz has announced that prices will not be raised until June 2. However, since auto tariffs are expected to have a full impact starting in June when inventory is exhausted, it is anticipated that securing price competitiveness will be difficult. If a situation arises where automakers across the U.S. raise prices overall, quality is likely to become even more important. Some analysts believe Hyundai gained confidence that a focus on quality competitiveness could resonate with consumers, as the company showed strong sales in the U.S. in April, when auto tariffs began to be imposed. In April, Hyundai sold 81,503 vehicles in the U.S. This represents a 19% increase compared to the same period last year. It is Hyundai’s highest-ever performance for April and marks the seventh consecutive month of setting a new monthly sales record. Compared to competitors like Ford and Stellantis, which lowered prices to sell vehicles after the tariff imposition, Hyundai maintained its price freeze yet saw a significant increase in sales. This is also seen as evidence that price competitiveness alone is no longer the answer. To focus on quality competitiveness, Chairman Chung appointed Executive Vice President Philippe Guerin-Boutaud as head of the Global Product Operations Division. The Global Product Operations Division is responsible for planning the products Hyundai develops, produces, and sells worldwide. It also oversees the designation of production locations by country and the review of regulations necessary for local sales after vehicle development. Previously, this was part of the Global Business Management Division under the name Global Product Support Office, but in the latest restructuring, it was elevated to the status of a full division. Its name was changed to the Product Operations Division, and the head's rank was raised from Executive Director to Executive Vice President. Philippe Guerin-Boutaud worked at Renault Group for 33 years before being recruited by Hyundai in 2023. From 2010 to 2012, he also worked at Renault Samsung Motors. He is considered an expert in quality and safety. Just before joining Hyundai, he was responsible for quality and customer satisfaction at Renault Group, where customer satisfaction increased by 17% over one year. The number of accidents dropped by 40% in just over a year, marking the lowest level in the brand's history. It is known that Executive Vice President Philippe Guerin-Boutaud played a significant role in Renault Group’s improvement in customer satisfaction and reduction in accidents. Regarding this appointment, CEO Jose Muñoz stated, “The global expertise of Executive Vice President Philippe Guerin-Boutaud will help create greater value across the entire product portfolio.” #Hyundai #ChungEuisun #PhilippeGuerinBoutaud #qualitymanagement #autotariffs #HyundaiMotorGroup #HyundaiUSA #JDPower #HyundaiSales #automotiveindustry
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- How Will Lee Dong-chae Pass Down Ecopro? Spotlight on Family Firm Daisy Partners
- With the succession process of former Ecopro Chairman Lee Dong-chae underway, attention is turning to a family-owned company called Daisy Partners. This company is 100% owned by Lee Dong-chae, the founder of Ecopro Group, and his family. More than just a management consulting firm, it is taking on a core role in the group’s governance structure and is emerging as a strategic base for the succession process. △Background and Basic Profile of Daisy Partners Daisy Partners was established in 2001 as a small enterprise mainly providing management information, tax and accounting services, and outsourcing for HR and payroll operations. It was initially founded under the name “Iroom TNC” but changed its name to “Daisy Partners” in July 2023. Despite being a small-capital company with KRW 700 million (US$ 487,000) in capital, its total assets exceeded KRW 2.17 trillion (US$ 1.51 billion) as of the 2023 fiscal year. Daisy Partners has shown almost no revenue-generating activities in its official business areas. However, even without revenue, it has posted non-operating income in the hundreds of billions of won each year, setting it apart from conventional management consulting firms. Its revenue structure primarily comes from dividends, interest income, and disposal of investment assets within the group affiliates. According to external audit reports, its non-operating income was about KRW 293.3 billion (US$ 204 million) in 2023 and non-operating expenses were KRW 140.6 billion (US$ 97.8 million). In 2024, non-operating income stood at about KRW 108.7 billion (US$ 75.6 million) and non-operating expenses at KRW 76.6 billion (US$ 53.3 million). Nevertheless, Daisy Partners has continued to report operating losses for several years due to its lack of sales revenue. △100% Family-Owned: Daisy Partners’ Shareholding Structure and Status The largest shareholders of Daisy Partners are former Chairman Lee Dong-chae, his wife Kim Ae-hee, and their two children: eldest son Lee Seung-hwan, Executive Vice President of Ecopro, and daughter Lee Yeon-soo, Managing Director at Ecopro. In terms of equity distribution, Lee and his wife each hold 20%, and the two children each own 30%. Notably, both children—Executive Vice President Lee Seung-hwan and Managing Director Lee Yeon-soo—are engaged in actual management roles at the Future Strategy Division and the venture investment firm Ecopro Partners, respectively, while concurrently undergoing management training, indicating the succession process is actively progressing. Lee Seung-hwan was promoted to Executive Vice President in December 2024 and has already taken on a key position within the group, solidifying his status as a second-generation leader. He is gaining practical experience in corporate management while preparing for a natural generational shift. Daisy Partners holds about 4.8% of Ecopro's shares. As of May 2024, it also holds 3.5% of Ecopro BM, 9% of Ecopro Partners, 0.6% of Ecopro Materials, and 18% of Haepalangwoori. While Daisy Partners continues to post operating losses with almost no sales, its capital size is expanding rapidly. Its operating loss for the 2024 fiscal year was around KRW 580 million (US$ 403,000), but net profit reached KRW 24.5 billion (US$ 17 million), which is believed to result from accounting valuation gains and investment asset disposal profits. In early 2024, Daisy Partners executed a large-scale transaction by selling about KRW 268.5 billion (US$ 186.7 million) worth of Ecopro and Ecopro BM shares on the open market. The company explained that the purpose of the sale was to fulfill debt repayment agreements and to secure donations for the establishment of a public interest foundation. △Succession Cases in Korean Conglomerates and the Role of Daisy Partners Succession of management rights in Korean conglomerates (chaebol) generally occurs through three main methods. The first is by legitimately paying inheritance or gift taxes and transferring management rights, with recent examples including Samsung, LG, and Hanjin. The second involves using lower-tier affiliates to increase value through internal transactions, thereby creating a financial base for succession. Notable examples include Hyundai Glovis’ role in the succession of Hyundai Motor Group Chairman Chung Eui-sun, and Samsung SDS being funneled group IT projects when Lee Jae-yong and the founding family held shares. The third method involves the heir securing shares of a core company at the top of the group’s governance structure (holding company or de facto holding company) through another company where the heir is the major shareholder—usually an unlisted company—and then merging the two. Examples include the merger of Cheil Industries and Samsung C&T in Samsung Group, and the merger of SK and SK C&C in SK Group. Other methods include donating affiliate shares to public interest foundations controlled by the owner family (e.g., DL Group), or using financial tools such as convertible bonds (CB), bonds with warrants (BW), or restricted stock units (RSU), as seen in the Samsung Everland convertible bond case. In the case of Daisy Partners within the Ecopro Group, the structure appears more complex and somewhat different from traditional succession methods. Daisy Partners, being a family-owned company with shares evenly held by Lee, his spouse, and children, stands at the center of major decision-making, stock ownership, and equity management within the group. However, since the company does not generate operating profits as a business entity, it seems unlikely to serve as a direct financial source for succession. △Role Within Ecopro Group and Succession Scenario One expected scenario for utilizing Daisy Partners in the succession process of the Ecopro Group is to merge it with the holding company, Ecopro. Ecopro transitioned to a holding company structure in 2021, establishing a governance model centered around former Chairman Lee Dong-chae. The Ecopro Group has adopted a structure that flows from “former Chairman Lee Dong-chae → Ecopro (holding company) → 12 affiliates,” with Daisy Partners holding 4.8% of Ecopro and serving as a key intermediary in this structure. Lee’s activities—such as indirect shareholding, stock purchases, and exercising stock subscription rights through Daisy Partners—are interpreted as part of a succession strategy aimed at reorganizing group control around the family. Since 2010, Daisy Partners has acquired Ecopro’s bonds with warrants (BW), exercised those rights, and secured many new shares, continuously expanding its investment scale. Considering that Lee is not directly transferring shares or gifting them to his children but instead expanding control via the family company Daisy Partners, it is likely that this company will be used as the vehicle for management succession. Furthermore, it is noteworthy that both of Lee’s children, Lee Seung-hwan and Lee Yeon-soo, were included in a recent restricted stock unit (RSU) allocation to employees within the Ecopro Group. Although the number of shares they received—131 for Executive Vice President Lee Seung-hwan and 91 for Managing Director Lee Yeon-soo—is still small, this is interpreted as a move to increase equity ownership among second-generation management and reinforce responsible leadership. #LeeDongchae #Ecopro #DaisyPartners #succession #Koreanchaebol #familybusiness #shareholding #RSU #governancestructure #investmentstrategy
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- Coupang Targets KRW 1 Trillion in Operating Profit as Bom Kim Increases Focus on Taiwan
- Bom Kim, Chairman of the Board at Coupang Inc. (the parent company of Coupang), has been frequently mentioning "Taiwan" in recent statements. Kim previously expanded Coupang’s market presence in South Korea through a so-called “planned deficit” strategy. Now, he is applying that same approach to Taiwan, and early signs of progress are beginning to appear. If this strategy proves successful in Taiwan—similar to a “blue spot” in Go AI terminology—it could accelerate Coupang’s path toward achieving KRW 1 trillion (US$ 695 million) in operating profit. Coupang’s Q1 results, released on May 7, highlight the sharp rise in revenue from its Developing Offerings segment. This division includes Coupang Play (an online video streaming service), Coupang Eats (a food delivery platform), the Taiwan business, and Farfetch, a luxury e-commerce platform. Compared to its main Product Commerce division—which includes Rocket Delivery and Rocket Fresh—Developing Offerings remains small. In 2023, its revenue accounted for just 3.3% of that of Product Commerce. With the acquisition of Farfetch in 2024, it has grown, but still only represents 13.4% of Product Commerce’s revenue. Still, the Q1 results suggest that the growth of this segment can no longer be ignored. In Q1, Coupang reported revenue of US$ 1.038 billion from Developing Offerings. At a fixed exchange rate of KRW 1,452.66 per dollar, this exceeds KRW 1.5 trillion—marking a 78% increase from Q1 2024. Considering that Coupang’s total revenue grew 21% year-over-year in Korean won and Product Commerce rose by 16%, it’s clear that Developing Offerings made a major contribution to the company’s growth. Gross profit figures also showed strength in this segment. Developing Offerings generated US$ 165 million in gross profit, with an 87% increase in Korean won terms—over three times the 28% growth in the Product Commerce division. Though Developing Offerings is not yet profitable, Coupang posted an adjusted EBITDA of minus US$ 168 million for this division in Q1. However, this loss was down roughly 10% from Q1 last year, suggesting that economies of scale are beginning to take hold—growing revenue while narrowing losses. Among all components of the Developing Offerings, Kim is particularly focused on the Taiwan business. He personally joined the Q1 earnings conference call and spoke for approximately 2 minutes and 20 seconds about Developing Offerings—over 1 minute and 20 seconds of which was dedicated to Taiwan. By contrast, he spoke for just 25 seconds on Farfetch and 18 seconds on Coupang Eats, indicating his strong interest in the Taiwan operation. He also personally answered a question about Taiwan from a Morgan Stanley analyst, instead of deferring to CFO Gaurav Anand, speaking for approximately 2 minutes and 7 seconds. “One of the most exciting opportunities in our Developing Offerings is Taiwan,” said Kim. “Like in Korea, where we created jaw-dropping experiences for consumers, we see massive potential to do the same in Taiwan.” According to Kim, Coupang is forming direct supply relationships not only with global brands like Coca-Cola, Pepsi, P&G, and Unicharm, but also with key local brands important to Taiwanese consumers. Coupang noted that its Taiwan product lineup grew sixfold in Q1 compared to Q4 of last year. Coupang has also introduced its paid “Wow Membership” program—key to its explosive growth in Korea—to the Taiwan market. This is expected to be another growth catalyst. The Taiwan Wow Membership program offers free Rocket Delivery and returns within 30 days for a monthly fee of KRW 2,600 (US$ 1.80). “This program provides tremendous value and savings to members, and like in Korea, we expect it to increase spending per member,” said Kim. “We’re excited about our investment in Taiwan, and we believe our already strong growth figures can go much higher.” If Coupang’s Taiwan business, led by Kim, continues to gain momentum, its operating profit is expected to grow sharply as well. Coupang reported Q1 operating profit of KRW 233.7 billion (US$ 162.5 million) based on a fixed exchange rate. While this appears lower than the KRW 435.3 billion (US$ 302.8 million) posted in Q4 2024, the previous quarter’s result included a one-time KRW 244.1 billion (US$ 169.8 million) insurance payout related to a fire at the Deokpyeong logistics center. Excluding that, the Q1 figure represents the company’s highest quarterly operating profit to date. Coupang’s operating profit trajectory has been steadily improving: from KRW 53.1 billion (US$ 36.9 million) in Q1 2024, it slipped into the red in Q2, then recovered to a profit of KRW 148.1 billion (US$ 103.1 million) in Q3, and has continued to grow for three consecutive quarters. Given this trend, some in the e-commerce industry believe that Coupang may achieve KRW 1 trillion (US$ 695 million) in annual operating profit for the first time this year. #Coupang #BomKim #Taiwan #CoupangTaiwan #DevelopingOfferings #WowMembership #Farfetch #EcommerceGrowth #RocketDelivery #OperatingProfit
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- DL Group’s Shadow Holding Structure: Lee Hae-wook Gains Power, Avoids Accountability
- DL Group transitioned to a holding company structure in 2021, but the so-called "shadow holding company" governance structure established in the process continues to weigh heavily on Chairman Lee Hae-wook. Under this structure, DL Group is ultimately controlled by the unlisted company Daelim. While Chairman Lee’s control over the group has increased, questions around managerial accountability have become more prominent. △ Shadow Holding Structure Raises Accountability Concerns As of May 7, DL Group operates under a three-tiered structure: unlisted Daelim at the top, listed DL in the middle, and various subsidiaries at the bottom. Chairman Lee Hae-wook holds a 52.3% stake in unlisted Daelim, effectively giving him control over the entire group. However, this layered structure creates a scenario where the group leader can exert decision-making power without clearly defined accountability. This has led to social controversy, particularly in cases involving serious industrial accidents. In such incidents, it remains ambiguous who should be held responsible due to the complexity of the governance model. According to the Serious Accidents Punishment Act, employers and responsible executives can face criminal charges when workplace safety and health obligations are violated, leading to incidents such as fatalities. However, based on the Ministry of Employment and Labor’s 2023 compilation of legal interpretations, corporate executives at the headquarters are generally not held responsible under the law if a serious accident occurs at a subsidiary, which is a separate legal entity. As a result, the owner-executive who controls the top-tier unlisted company can influence critical business matters such as construction deadlines, yet evade legal accountability. For example, since the Serious Accidents Punishment Act came into effect, DL E&C has been identified as one of the domestic conglomerates with the highest number of serious industrial accidents, with seven incidents leading to the deaths of eight workers. Still, Chairman Lee Hae-wook has not been held legally responsible. Due to these recurring incidents, both political and civil society groups have urged for clearer executive accountability, emphasizing the need for responsible management and calling on Chairman Lee and other key executives to be directly answerable. At a December 2023 parliamentary hearing on industrial accidents, Chairman Lee expressed his commitment to safety, though he did not accept legal liability. Lee stated, “With recurring accidents, DL Group, along with our partners, is reviewing our processes and considering how to enhance safety awareness every time an incident occurs. We will reexamine relevant systems, including the right to stop work, to prevent such incidents from happening again.” A legal expert commented, “Clarifying the corporate leader’s policy direction and accountability in the event of a serious accident is crucial for worker safety. But the ‘shadow holding company’ structure, which many large Korean conglomerates maintain, poses significant obstacles to clearly identifying and monitoring executive responsibility.” △ Unlisted Daelim Shields the Group from Oversight DL Group’s governance is under even greater scrutiny because Daelim, which sits at the core of the structure, is an unlisted company that remains largely unknown to the public. Unlike listed firms, unlisted companies have fewer disclosure obligations, making it harder for stakeholders to access internal information. As a result, oversight and checks by minority shareholders and other market stakeholders become more difficult, undermining transparency and accountability in corporate governance. Critics argue that this structure strengthens control while enabling avoidance of responsibility—a system where the group’s leader draws the overall blueprint, but specific lines of authority and accountability remain vague. This undermines shareholder confidence and trust in the broader market. Given that major Korean conglomerates such as Hyundai Motor Group, Samsung Group, and SK Group are actively pursuing governance reforms and enhanced corporate responsibility, DL Group is also under growing pressure to resolve issues stemming from its layered governance structure. Improving corporate governance could become a critical turning point for DL Group to regain market trust and achieve sustainable growth, especially in the context of addressing its industrial accident issues. All eyes are now on whether Chairman Lee Hae-wook can tackle the dual challenges of simplifying and increasing the transparency of DL Group’s complex governance structure, and taking genuine managerial responsibility to prevent future safety incidents. #DLGroup #LeeHaewook #corporategovernance #industrialaccidents #SeriousAccidentsAct #Daelim #transparency #Koreanchaebol #shadowholding #accountability
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- Choi Sung-an Breaks Samsung Heavy’s Loss Streak, Outsider Advantage Pays Off
- How did Choi Sung-an, Vice Chairman and CEO of Samsung Heavy Industries, rescue the company from nine years of losses? Now, attention is focused on whether Choi can further stabilize Samsung Heavy Industries’ high debt ratio and continue improving its performance. ◆ Choi Sung-an’s Management Strategy to Break the Long Chain of Losses From the moment he took office, Choi Sung-an has pushed strongly for innovation and profitability under the vision of building a “technology-driven centennial enterprise.” At the regular shareholders' meeting held in March 2025 at the Pangyo R\&D Center in Bundang-gu, Seongnam, he stated, “To move toward becoming a technology-driven centennial enterprise, we will accelerate manufacturing innovation to lead the high-value eco-friendly ship business and cutting-edge autonomous navigation technologies.” As an expert in plant engineering, Choi has focused on expanding offshore plant and marine businesses, aiming to enhance competitiveness in high-value-added markets. In particular, Samsung Heavy Industries achieved a remarkable feat in the FLNG (Floating Liquefied Natural Gas) sector, winning five out of nine global orders based on its unrivaled technical expertise. Choi is emphasizing this push for competitiveness to maintain the rebound in performance that the company has recently achieved. From 2015 to 2022, Samsung Heavy Industries recorded consecutive annual losses for eight years, accumulating more than KRW 5 trillion (US\$ 3.5 billion) in operating losses. This was the result of several compounding factors: entering the offshore plant business without preparation, a sharp drop in international oil prices, a global shipbuilding downturn, low-price bidding competition, and the impact of the COVID-19 pandemic. From 2019 to 2021, the company posted net losses of around KRW 1 trillion (US\$ 695 million) annually, which deepened its financial instability. ◆ Improving Financial Structure While Managing Risks Samsung Heavy Industries’ financial structure remains challenging, adding pressure on Choi. As of the end of 2023, the company’s consolidated debt ratio was 357.4%, and this slightly increased to 358.6% by the end of 2024. While the shipbuilding industry inherently follows a “heavy-tail” structure—where an increase in orders leads to more contract liabilities and borrowings—this level of debt is still considered high. Moreover, in the fourth quarter of 2024, the company incurred a KRW 744 billion (US\$ 517 million) loss from derivative valuation following the termination of a contract with Russia’s Zvezda Shipbuilding Complex, resulting in a pre-tax loss of KRW 478.4 billion (US\$ 333 million) and a net loss of KRW 99.3 billion (US\$ 69 million). Such accounting issues have again highlighted the importance of transparent risk management as they pose short-term financial risks. Fortunately, credit rating agencies have assessed that these accounting losses are not serious enough to shake the company’s fundamentals. Kim Jong-hoon, a senior researcher at Korea Investors Service, said, “Considering that Samsung Heavy Industries has posted an operating surplus in 2023 and that the proportion of low-margin orders has steadily decreased, its fundamental profit-generating capacity is on an improving trend. Therefore, the financial burden from the derivative loss is manageable.” Choi has also actively pursued asset optimization and capital expansion, including the KRW 400 billion (US\$ 278 million) sale of the Pangyo R\&D Center. Even after the sale, the company continues to use the facility under a leaseback arrangement, securing funds for future investments. This “sales and leaseback” strategy is viewed as a proactive response to a rapidly changing business environment. Efforts to enhance financial stability are also reflected in the reduction of net borrowings. Samsung Heavy Industries’ consolidated net debt decreased by 13.9%, from KRW 2.88 trillion (US\$ 2 billion) at the end of 2023 to KRW 2.48 trillion (US\$ 1.7 billion) by the end of 2024. ◆ Focusing on Advanced Technologies and the Green Market to Strengthen Future Competitiveness Choi is not just focusing on profitability—he is also actively pursuing technological innovation and expansion into the eco-friendly ship market. Samsung Heavy Industries is accelerating smart manufacturing innovation by combining digital transformation (DT)-based production automation with artificial intelligence transformation to build a next-generation shipyard capable of operating 24 hours a day. The company is especially focused on developing carbon capture, liquefaction, and storage (OCCS) facilities and expanding eco-friendly propulsion systems, enabling it to respond swiftly to the International Maritime Organization’s tightened environmental regulations. These efforts are a key strategy for securing differentiated competitiveness in the rapidly changing global shipbuilding market. Samsung Heavy Industries’ proactive approach to advancing technology in the eco-friendly ship sector is attracting attention. The company is also reinforcing growth momentum by targeting high-profit ship types such as LNG carriers, FLNG units, and LNG bunkering vessels, as well as the offshore plant sector. FLNG projects, in particular, are massive—each worth over KRW 2 trillion (US\$ 1.4 billion). Samsung Heavy Industries has secured a dominant position in this segment, building a strong presence in the global market. Its leadership has been further strengthened by the constraints placed on its Chinese rival, Wison Shipyard, due to U.S. trade sanctions. ◆ The Future of Samsung Heavy Industries Depends on Choi Sung-an’s Leadership Under Choi’s leadership, Samsung Heavy Industries has escaped the pit of deficits and achieved notable financial results in 2024. However, some believe that this is only the beginning of its recovery. Challenges still remain, such as further improving the financial structure, managing risks related to exchange rates and contracts, and maintaining a technological edge over competitors. Nonetheless, Choi is widely regarded as a “quiet yet strong leader,” both within and outside the company, and many expect him to overcome these hurdles with resilience. It is also reported that Samsung Electronics Chairman Lee Jae-yong has deep trust in Choi. Choi was promoted from president to vice chairman in 2022 and became CEO of Samsung Heavy Industries. He is the first vice chairman-level executive to lead the company since Kim Jing-wan stepped down in 2010—a sign of how much Lee values him. At the time of his appointment, there were concerns in the shipbuilding industry because Choi was not from a traditional shipbuilding background. Born in 1960, Choi graduated from Seoul National University with a degree in mechanical engineering. He joined Samsung Engineering’s petrochemical business division in 1989 and later served as head of the refining business unit, procurement head in 2012, and head of Plant Business Division 1 in 2017. However, in a short time, Choi dispelled these concerns and led Samsung Heavy Industries out of its long tunnel of losses. Now, time will tell whether his steadfast strategy focusing on high-value ships, advanced technologies, and green transformation will lead to lasting success. #SamsungHeavyIndustries #ChoiSungan #ShipbuildingTurnaround #FLNG #GreenShipTechnology #SmartShipyard #SamsungGroup #OffshorePlant #CorporateDebt #LeeJaeyongTrust
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- What Changes Does Kim Taek-jin Hope Lawyer Park Byung-moo Will Bring to NCSoft?
- Seoul National University Law School, Harvard Law School, Kim & Chang law firm, and CEO of a private equity fund. This is the career background of Park Byung-moo, CEO of NCSoft. At a glance, it is clear that he has lived a life entirely unrelated to gaming. Park is a corporate restructuring expert. His career has focused on restructuring companies in crisis, improving their financials and operations, and preparing them for sale. With repeated successes in restructuring and sales, he earned the nickname “Midas’ hand” in the private equity industry. Now, Park has become the captain of the game company NCSoft. So, what exactly does Kim Taek-jin, the founder and co-CEO of NCSoft, expect from him? △Not a Sales Specialist, but a Revival Strategist — Kim Taek-jin’s True Intentions Based solely on Park’s background, one might naturally wonder, “Is Kim Taek-jin planning to sell NCSoft?” However, within the game industry, the possibility of Kim selling NCSoft is generally considered low. This is due to his strong attachment to both the company and its Lineage franchise. As one of the first-generation leaders of the Korean game industry, alongside the late Nexon founder Kim Jung-ju, it is hard to imagine Kim selling off NCSoft. A closer look at Park’s actual work in corporate “makeovers” sheds light on what mission Kim may have entrusted him with. Park is not the type of restructuring expert who simply prettifies a company’s financial statements for a sale. Instead, he has engaged in projects closer to “corporate rebuilding,” where he restructures companies suffering deep losses or declining valuations, revives their core assets, and restores their market competitiveness. The clearest example of Park’s capabilities is the case of Hanaro Telecom. After being appointed president of Hanaro Telecom, Park immediately launched an ambitious project called “Hana TV.” Hana TV became a pioneer in what is now the mainstream IPTV market, and was a decisive factor in SK Telecom’s decision to acquire Hanaro Telecom. Eventually, Hanaro Telecom was reborn under SK Telecom as SK Broadband, now a key affiliate responsible for SK Group’s IPTV and wired internet businesses. Park is also recognized for his sharp eye in discovering undervalued yet promising companies and bringing them back to life. After becoming CEO of Vogo Fund (now VIG Partners) in 2010, Park led successful acquisitions and revivals of 17 companies, including Tongyang Life Insurance, BC Card, iRiver, Burger King, and Bodyfriend. △Diagnosing NCSoft’s Crisis — Park Byung-moo Declares Structural Reform In his first message following the 2024 shareholders’ meeting, Park stated, “The most important task is to restore trust as a game company,” and added, “We will regain strength based on the Lineage IP while pursuing strategic M&As to secure new content capabilities.” NCSoft’s chronic risks include over-reliance on the so-called “Lineage-only” revenue structure, a lack of global influence compared to competitors, and uncertainty about the company’s future stemming from these factors. Park believes that unless NCSoft fundamentally changes its corporate structure, its competitiveness will continue to decline. To break this cycle, he is proposing external content acquisition through M&A and a revamp of the company’s internal development capabilities. At the 2025 shareholders’ meeting, Park said, “We are reorganizing our existing IPs while raising the evaluation standards for upcoming titles and rigorously monitoring the development process,” adding, “Many have worked tirelessly on M&A and investment, and this year, I hope we will see results that are clearly visible to everyone.” △The Arrival of a Corporate Healer — Where Is NCSoft Headed? Kim Taek-jin’s decision to appoint Park as co-CEO appears to stem from a desire to transform NCSoft into a more sustainable company. Park’s past achievements largely focus on fixing and reviving malfunctioning companies. Until now, Kim has led NCSoft with an intense focus on Lineage. Some say there was even a sentiment within the company that "Lineage is the perfect game, so all games should be made the same way." Park is expected to take a completely different approach to interpreting and restructuring NCSoft. Much like how Hanaro Telecom maintained its core “wired internet” business while layering on new content like Hana TV, Park is likely to maintain Lineage’s competitiveness while seeking new business opportunities through M&A and innovation. A game industry insider commented, “NCSoft’s biggest problem is not just the decline in Lineage sales, but the failure of all other new titles outside of Lineage,” adding, “Whether through IP acquisitions or internal development, the true test of NCSoft’s successful restructuring will be whether it can launch a completely new hit title.” #ParkByungmoo #NCSoft #KimTaekjin #Lineage #corporaterestructuring #M&Astrategy #VIGPartners #IPTV #gamedevelopment #Koreangameindustry
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- HYBE Bets on KATSEYE to Boost Girl Group Success
- Bang Si-hyuk, chairman of HYBE and a former star music producer, played the most significant role in establishing HYBE as a dominant player in the entertainment industry. Thanks to the phenomenal success of BTS, HYBE has become the most valuable K-content company. However, even Chairman Bang has struggled when it comes to girl groups. HYBE currently manages four girl groups under its various labels, but three of them are experiencing ups and downs. The underperformance of its girl groups poses a challenge for HYBE as it tries to diversify its portfolio, given that its financial performance relies heavily on boy groups like BTS and SEVENTEEN. According to the entertainment industry on the 29th, HYBE appears to be attempting a comeback in the girl group arena through "KATSEYE." KATSEYE is a girl group under HYBE Universal, a joint venture between HYBE and Geffen Records, a subsidiary of Universal Music Group. On the 30th, the group will release a pre-release single titled “Gnarly” from their second EP. HYBE holds a 51% stake in HYBE Universal. KATSEYE is a multinational girl group created by HYBE with the global market in mind. This marks their return to official promotional activities about four months after their Christmas season debut in December last year. While their performance wasn’t bad back then, this new activity is crucial for HYBE given the overall lackluster performance of its girl groups. After fromis_9, formerly under Pledis Entertainment, decided not to renew their contract, HYBE now has four girl groups: LE SSERAFIM (under Source Music), NewJeans (under ADOR), ILLIT (under Belift Lab), and KATSEYE (under HYBE Universal). However, the outlook is not positive for the other three groups besides KATSEYE. NewJeans has suspended activities due to a management dispute between former ADOR CEO Min Hee-jin and HYBE that began in April 2024. NewJeans is not the only group affected. Min claimed that LE SSERAFIM debuted before NewJeans unfairly and that ILLIT imitated NewJeans. Industry insiders say that these allegations have significantly damaged the public image of LE SSERAFIM and ILLIT. Indeed, both groups have seen a noticeable drop in performance. In the K-pop industry, the "initial album sales"—the number of albums sold within the first week of release—are considered a key metric. Both LE SSERAFIM and ILLIT have fallen short in this regard. LE SSERAFIM sold 990,000 copies of their third mini album “EASY” in February 2024. However, their fourth mini album “CRAZY” in August 2024 and the fifth mini album “HOT” in March 2025 sold only 680,000 and 630,000 copies, respectively. All three albums were executive produced by Bang Si-hyuk, chairman of HYBE’s board of directors. In contrast, SM Entertainment’s girl group aespa sold 1.15 million copies of “Armageddon” in May 2024 and 910,000 copies of “Whiplash” in October 2024. Compared to that, LE SSERAFIM's performance seems underwhelming. LE SSERAFIM’s slump is reflected in the business performance of their label, Source Music. According to HYBE, Source Music recorded a net profit of KRW 6.59 billion (US$ 4.6 million) in 2024, a 50% drop compared to 2023. Quarterly figures show a consistent decline—from KRW 4.4 billion (US$ 3.1 million) in Q1, to KRW 1.7 billion (US$ 1.2 million) in Q2, and KRW 1.5 billion (US$ 1.0 million) in Q3—culminating in a net loss of KRW 1 billion (US$ 700,000) in Q4. Given that LE SSERAFIM is the only artist under Source Music, its business performance essentially reflects that of the group. ILLIT is also facing challenges. Their debut album “SUPER REAL ME” released in March 2024 and “I’LL LIKE YOU” released in October 2024 both recorded initial sales of 380,000 copies. The debut track “Magnetic” even reached No. 1 on Melon’s daily chart in March 2024. However, after the ADOR controversy, the single “Cherish (My Love)” released in October only reached 52nd on the Melon daily chart—a key indicator of mainstream popularity. The performance of HYBE’s girl group KATSEYE is drawing attention because of HYBE’s over-reliance on boy groups. From a revenue diversification and risk management perspective, it’s not healthy for a company to depend so heavily on boy group earnings. In 2024, the combined revenue of the four HYBE subsidiaries managing its girl groups totaled KRW 570.5 billion (US$ 396.8 million), about 25% of HYBE’s total revenue. But this includes sales from boy group ENHYPEN under Belift Lab, suggesting that the actual share from girl groups is likely even lower. HYBE’s competitors show a different picture. At JYP Entertainment, girl groups accounted for 6.87 million out of the 13.675 million albums sold in 2024—roughly 50%. While album sales don’t directly equate to business performance due to other revenue streams like concerts and merchandise, this does illustrate a well-balanced portfolio. At YG Entertainment, girl groups like BLACKPINK and BABYMONSTER dominate in album sales, while the boy group TREASURE leads in concert attendance. Of the 2.03 million albums YG sold in 2024, BABYMONSTER and BLACKPINK accounted for 1.59 million and 230,000 copies respectively—90% of the total. For concerts, TREASURE drew 590,000 attendees, accounting for 82% of YG’s total 720,000. Chairman Bang also appears eager for the success of HYBE’s girl groups. On April 22, he posted a photo on social media with members of LE SSERAFIM, ILLIT, and KATSEYE, tagging it with the hashtag #ONETEAM—signaling his strong commitment to the success of HYBE’s girl group lineup. #HYBE #BangSiHyuk #Kpop #KATSEYE #LE_SSERAFIM #ILLIT #NewJeans #GirlGroups #KpopIndustry #EntertainmentBusiness
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- KDB Chairman Kang Seog-hoon’s Final Missions: Ending Ties with Hanwha Ocean and Accelerating HMM Stake Sale
- Kang Seog-hoon, the Chairman of KDB Korea Development Bank, is accelerating the sale of shares in Hanwha Ocean as his term nears its end. After successfully finding a new owner for Daewoo Shipbuilding & Marine Engineering (now Hanwha Ocean) early in his term, Kang appears poised to wrap up his tenure by selling the bank’s remaining shares in Hanwha Ocean. There is also speculation that Kang might prepare to sell KDB’s stake in HMM to strengthen the bank’s financial soundness. According to KDB on April 29, the bank is conducting demand forecasting to sell part of its 19.5% stake in Hanwha Ocean through a block deal (off-hours bulk trading). At the end of 2022, KDB held 55.68% of Daewoo Shipbuilding & Marine Engineering, but in 2023 it transferred majority ownership to Hanwha Group, reducing its stake to the current level. A KDB official said, "In May 2023, the management rights of Daewoo Shipbuilding & Marine Engineering were transferred to Hanwha Group, and restructuring goals such as performance improvement were achieved," adding, "At the time, it was decided to sell the remaining shares at an appropriate time, and with the industry recovering and restructuring goals achieved, we are now proceeding with the sale." Industry insiders expect KDB to gradually reduce its Hanwha Ocean stake based on the results of the demand forecasting. If KDB sells off its remaining Hanwha Ocean shares over the medium to long term, it will bring an end to the bank’s long-standing relationship with Daewoo Shipbuilding & Marine Engineering, which dates back to 2000. Although the relationship between KDB and Daewoo Shipbuilding & Marine Engineering stretches back to the 1970s when Daewoo Group acquired the Okpo Shipyard, KDB has held its current form of shareholding since 2000. After the collapse of Daewoo Group during the Asian financial crisis, KDB became the largest shareholder of Daewoo Shipbuilding through a debt-for-equity swap in 2000. The company’s name was later changed to Daewoo Shipbuilding & Marine Engineering in 2002. Despite multiple privatization attempts, KDB struggled to find a buyer. The most notable failed attempts were in 2008 and 2019. In 2008, KDB selected Hanwha Group as the preferred bidder, but the global financial crisis thwarted the deal in 2009. In 2019, it reached a formal agreement with Hyundai Heavy Industries, but the European Union rejected the acquisition in 2022, causing the deal to collapse again. Kang Seog-hoon is credited as the key figure who successfully sold Daewoo Shipbuilding & Marine Engineering. After being appointed Chairman of KDB in June 2022, Kang accelerated the sale process and selected Hanwha Group as the preferred bidder in September of that year. In effect, Kang led the privatization immediately after taking office. At a press conference marking his first anniversary as Chairman in June 2023, he cited the privatization of Daewoo Shipbuilding & Marine Engineering as his biggest achievement. Throughout his term, Kang supported the relocation of KDB’s headquarters to Busan, a major pledge of former President Yoon Suk-yeol, often clashing with labor unions and the opposition Democratic Party. Despite political controversies, Kang, an economist and former professor, successfully handled major tasks including the sale of Daewoo Shipbuilding, the merger of Korean Air and Asiana Airlines, the sale of SsangYong Motor, and the restructuring of Taeyoung Construction. Kang’s three-year term, which started on June 7, 2022, will end on June 6, 2025. Given that a new government will take office after the presidential election on June 3, his chances of reappointment are considered low. Thus, Kang’s move to sell off the remaining Hanwha Ocean shares is seen as his final effort to conclude the relationship he initiated by finding a new owner for Daewoo Shipbuilding early in his tenure. Kang’s decision to sell Hanwha Ocean shares is also aimed at improving KDB’s financial health. Selling the shares would increase KDB’s Basel III capital adequacy ratio, allowing the bank to expand investments in new areas such as semiconductors and artificial intelligence (AI). As of the end of last year, KDB’s Basel III capital adequacy ratio was 13.9%, the lowest among major domestic banks. This was a drop of over 3 percentage points from 14.36% at the end of the third quarter, barely above the Financial Supervisory Service’s recommended level of 13%. To prevent a further drop, KDB carried out about KRW 2.4 trillion (US$ 1.73 billion) in capital increases last year, including a stock contribution from Korea Land and Housing Corporation (LH), but only achieved a temporary improvement. In 2025, KDB continued to boost its capital with over KRW 200 billion (US$ 144 million) in increases in February and March and is planning additional capital raises. As a policy bank responsible for supporting domestic industries, KDB needs a strong capital base to ensure it can pursue new investments without restrictions. Since taking office, Kang has repeatedly emphasized the importance of the "golden time" for investments in strategic industries. Last year, he introduced the "Korea Rebound Program," pledging KRW 100 trillion (US$ 72 billion) over three years for policy financing in sectors such as semiconductors and AI. Improving KDB’s capital adequacy ratio is essential for boosting new investments, and selling stock assets like Hanwha Ocean shares can significantly help. When calculating the Basel III ratio, risk-weighted assets (RWA) are included in the denominator. Since stock assets carry relatively high risk weights, selling them reduces RWAs. For these reasons, there is speculation that Kang may also prepare to sell KDB’s stake in HMM before his term ends. Speaking with reporters after the "NextRound Silicon Valley" event in the U.S. on April 23, Kang said, "We are seriously considering the sale of HMM shares." According to Kang, under Basel III regulations, if a bank holds more than 15% of its equity capital in a single company’s shares, a risk weight of 1250% is applied to the excess portion. If HMM’s stock price exceeds KRW 18,600 (US$ 13.4), a 1250% risk weight applies. HMM’s stock closed at KRW 18,660 (US$ 13.5) the previous day. Kang added, "If HMM’s stock price exceeds KRW 25,000 (US$ 18.1), maintaining a 13% capital adequacy ratio would be at risk," and stressed, "No matter how close I am to the end of my term, I cannot put KDB in a dangerous situation." #KangSeoghoon #KDB #HanwhaOcean #HMM #BISCapitalRatio #Privatization #DaewooShipbuilding #IndustrialBanking #KoreaReboundProgram #FinancialStability
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- LG H&H Must Pivot to North America; Lee Jung-ae Faces Task of Finding the Next "Whoo"
- Lee Jung-ae, the CEO and President of LG Household & Health Care (H&H), has continued to focus on North America as a key market since taking office, maintaining a steady pace of investment. Building on the foundation laid by former CEO Cha Suk-yong through multiple acquisitions of North American beauty companies, she has recently participated in a capital increase for the North American subsidiary, accelerating efforts to penetrate the local market. However, unlike the remarkable success of "The History of Whoo" in China, LG H&H has yet to achieve notable results in North America. Industry insiders express growing concerns that continued delays in discovering new growth brands tailored to North American consumer preferences could render current investments less effective. As of April 29, an overview of LG H&H’s performance indicates that the recovery of the cosmetics division, which had struggled post-COVID-19, remains sluggish. In the first quarter of this year, LG H&H’s cosmetics division recorded consolidated sales of KRW 1.6979 trillion (US$ 1.22 billion) and an operating profit of KRW 142.4 billion (US$ 102.7 million), representing a 1.8% drop in sales and a 5.7% decline in operating profit compared to the first quarter of last year. Although sales in North America rose by 3.1% year-over-year, they accounted for only 7% of total sales. Heo Je-na, an analyst at DB Financial Investment, noted, “The growth in overseas sales for LG H&H’s cosmetics division remains minimal,” adding, “When measured in local currencies, sales in China and the U.S. declined by about 10% and 6%, respectively.” Following the sharp post-COVID-19 decline in China, once its core market, LG H&H has been actively seeking new growth engines, identifying North America as the next major market after China and continuing strategic investments. To target North America, LG H&H actively pursued mergers and acquisitions to expand its local business presence. Notably, it acquired North American cosmetics company, The Avon Company, for approximately KRW 145 billion (US$ 104.5 million) in 2019, acquired rights to the Physiogel brand in Asia and North America in 2020, purchased shares of haircare brand Boinca in 2021, and acquired shares of U.S. cosmetics brand The Crème Shop in 2022. A total of about KRW 605.1 billion (US$ 436.3 million) was invested across these four North American acquisitions. More recently, the company participated in a KRW 186 billion (US$ 134.1 million) capital increase for its North American subsidiary. Of this, KRW 100 billion (US$ 72.2 million) will be used to support the subsidiary’s operations and improve its financial structure, while KRW 86 billion (US$ 62.0 million) will support the operations of its affiliate, The Avon Company. To strengthen its North American business, Lee Jung-ae has been actively expanding marketing for various beauty and personal care (BPC) brands such as The Face Shop, CNP, and Belif, primarily through Amazon. The recent capital increase and support for The Avon Company are seen as part of this strategy. However, despite aggressive investments, critics point out that tangible results in North America remain elusive. The absence of a local "key product lineup" similar to "The History of Whoo" is cited as a major reason for underperformance. Comparisons with APR, which has successfully entered the North American market, further highlight the gap. APR quickly gained a foothold in North America by getting multiple products from its brands Medicube and Aprilskin into Amazon’s top rankings. Medicube’s Pore Toner Pad even ranked number one in the skincare category on Amazon. APR’s success is largely attributed to "cost-effectiveness." Their products are priced between $10 and $20 while maintaining high quality, about half the price of similar products from French or American brands. This clearly illustrates the difficulty premium brands like "The History of Whoo" face in the highly competitive North American market. Targeting the high demand among local consumers for basic skincare products with features such as skin texture improvement and low-irritant ingredients also proved effective. Indeed, the core strategy behind K-beauty’s success has emphasized "basic care over color cosmetics" and "cost-effective positioning due to low manufacturing costs." However, quickly reducing LG H&H’s heavy dependence on "The History of Whoo" premium brand is not easy. Currently, more than half of LG H&H’s cosmetics revenue comes from "The History of Whoo." In the first quarter of this year, "The History of Whoo" accounted for 51% of major brand sales, followed by The Face Shop at 8% and CNP at 4%. Under former CEO Cha Suk-yong, LG H&H concentrated a significant portion of its corporate resources on the Chinese market. Before COVID-19, trillion-won-level revenues were generated solely in China, and most sales networks and manpower were aligned with the Chinese market. Even the company’s legal team had several patent attorneys specializing in China, reflecting its heavy dependence on China and "The History of Whoo." Industry experts agree that it will take significant time to pivot strategies and infrastructures once heavily geared toward China to succeed in the U.S. market. Given that LG H&H had a strong success model with "The History of Whoo" in China, its production systems and organizational structures are likely still centered around that model. The contrast with APR’s diversified brand portfolio strategy aimed at North America is even more pronounced. While APR pursued market diversification from the beginning, LG H&H, with its longstanding focus on premium brands, now faces the challenge of establishing a fresh foundation in North America. Experts argue that successfully entering the North American market will require investments and long-term brand-building efforts many times greater than before. An LG H&H official stated, “We plan to strengthen brand awareness and growth foundations in the Americas by expanding marketing investments in beauty and personal care brands such as The Face Shop, CNP, Belif, and Dr. Groot,” adding, “We will also enhance marketing activities centered on color and derma brands to expand our product influence in the Japanese market.” #LeeJungAe #LGHouseholdAndHealthCare #NorthAmericaExpansion #TheHistoryofWhoo #CosmeticsBusiness #KBeauty #APR #Medicube #GlobalStrategy #BeautyIndustry
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- LG Bets on Premium LCD TVs Amid TV Business Slump
- LG Electronics is increasingly likely to post an operating loss in its TV business in 2025. This is attributed to weakened consumer sentiment caused by high interest rates and inflation, as well as the potential impact of U.S. countervailing tariffs that are expected to take effect in the second half of the year. Park Hyoung-sei, President of LG Electronics’ Media Entertainment Solution (MS) Company, is focusing on securing profitability by expanding the company’s premium TV lineup from OLED (organic light-emitting diode) to include LCD (liquid crystal display)-based QNED TVs. According to industry sources on the 29th, global TV shipment growth is projected to slow further in 2025 due to declining global consumer demand. Chinese market research firm Sigmaintell forecasted that global TV shipments will reach 217.8 million units this year, representing only a 0.5% increase from the previous year. This is less than half of last year’s 1.3% growth rate. As the global TV market stagnates, LG Electronics is struggling to maintain its market share amid intensifying competition from Chinese companies. In 2024, LG’s market share in North America stood at just 10%, falling behind China’s TCL and Hisense, which each held 14%. Moreover, there are growing concerns that LG’s TV business may fall into the red this year. Securities firms have projected that the MS Company, which recorded KRW 268 billion (US$ 186.3 million) in operating profit last year, will post an operating loss of approximately KRW 210 billion (US$ 146 million) in 2025. Lee Min-hee, an analyst at BNK Investment & Securities, said, “The MS Company is expected to see a 6% year-over-year decline in sales in the second quarter due to deteriorating market conditions,” adding, “Macroeconomic uncertainties, such as the imposition of countervailing duties, remain high, and their impact will gradually become more visible.” Until now, Park has led LG’s strategy of targeting the premium TV market with OLED TVs. According to market research firm Omdia, LG Electronics achieved a 52.4% global market share in OLED TV shipments in 2024, ranking first for the 12th consecutive year. However, due to the high production costs and sales prices of OLED TVs, their mass adoption remains limited. OLED TVs still account for only around 10% of the entire global TV market. As a result, Park is partially shifting strategy to focus more heavily on the company’s premium LCD TV lineup—QNED TV. While maintaining competitiveness at the highest end of the market with OLED, the aim is to fend off Chinese competitors with QNED TVs in the premium LCD segment. Park previously stated, “We will strengthen our leadership in the global premium TV market with a ‘dual-track’ strategy consisting of OLED TVs with overwhelmingly vivid self-emissive picture quality and QNED TVs that incorporate advanced technology.” QNED TVs feature nanotechnology-based high color reproduction and AI-powered picture optimization, improving color accuracy by 20–30% compared to conventional LCDs. At the same time, they are 20–30% cheaper than OLED TVs of the same size. As such, LG aims to aggressively target consumers who seek better picture quality than standard LCD TVs but find OLED TVs too expensive. At the “TV New Product Briefing” held on March 11, Baek Sun-pil, Head of TV Product Planning at LG Electronics, said, “If OLED is like a Genesis, QNED would be a Grandeur,” adding, “You could buy an 86-inch QNED for the price of a 65-inch OLED. There is a trade-off, but we believe it’s better to target both consumer groups that exist across these two categories.” Additionally, LG Electronics is applying technologies previously exclusive to OLED—such as the “wireless AV transmission solution”—to QNED TVs to further differentiate them. This technology enables high-resolution video transmission without signal loss or latency. Alongside the QNED TV push, LG is also expected to accelerate expansion into high-margin platform businesses such as webOS-based advertising and content services. An LG Electronics spokesperson said during the earnings conference call on the 24th, “Overall demand for the TV market is expected to remain stagnant this year,” and added, “By reassessing resource allocation and operating marketing resources more efficiently, we will maintain the MS Company’s profitability.” #LGElectronics #ParkHyoungsei #TVBusiness #QNED #OLED #OperatingLoss #webOS #TCL #Hisense #TVMarket2025
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- How Long Will Kim Young-shub’s KT “AI Communication” Transformation Last? The Real Issue Is Management Strategy
- Kim Young-shub, CEO and President of KT, has been tightening the reins on expanding the AI business after surpassing one and a half years since his inauguration. He has declared a major transformation into an “AI Communication (AICT) Company” and is pushing for a large-scale organizational restructuring and workforce realignment, while also pursuing a strategic partnership with global big tech company Microsoft (MS). However, KT's management environment still exposes structural limitations vulnerable to political influence, raising questions about whether the consistency of its management strategy can be maintained both internally and externally. ◆ Major Transformation into an AI Communication (AICT) Company and Kim Young-shub’s Strategy Starting in 2024, Kim declared a full transition to an “AI Communication (AICT) Company” that merges AI with telecommunications technology, accelerating systematic reorganization, workforce innovation, and the restructuring of fragmented business units. One notable AI innovation initiative is the five-year strategic partnership with Microsoft (MS). The main goal is to focus capabilities on developing Korean-style AI solutions. Kim is reportedly planning to create customized AI solutions tailored to the domestic industry by deeply training AI models not just in language processing but also in Korea’s societal and historical characteristics. To achieve this, KT established the "AX Delivery Specialty Center," a dedicated organization for AI business promotion, creating a collaborative platform for about 300 Microsoft talents and KT’s AI experts. Initially, the plan was to establish a joint venture, but for efficiency, they decided to operate it as a company-in-company (CIC). Kim said, “During early discussions with Microsoft about collaboration, I proposed the idea, thinking it would be great if the best talents from both companies could work together.” Kim is preparing to apply Microsoft’s AI GPT-4o model along with KT’s locally developed LLM “Mideum” to various industries such as public sectors, finance, manufacturing, and distribution. Through the AI partnership, KT has reportedly secured over 10,000 graphic processing units (GPUs) based on NVIDIA’s H100. Based on this series of organizational and infrastructure enhancements, Kim has set a strong target to raise KT’s AI business revenue to 12% of its total revenue by 2028. In parallel, KT is also sorting out non-core businesses and conducting large-scale workforce restructuring to secure future capital, while speeding up the sale of real estate assets, such as hotels and land, worth several trillion KRW (several billion USD). However, Kim’s strong push for AI business is expected to face uncertainty due to the early presidential election phase triggered by the impeachment of former President Yoon Suk-yeol. ◆ Challenges of Management Consistency Amid AI Strategy and External Influence KT has historically suffered from repeated political and external interventions affecting its management autonomy and stability, from its public corporation days through privatization. Even after privatization in 2002, KT has been embroiled in controversies involving parachute appointments, political lobbying, and slush funds. Successive CEOs, including Lee Seok-chae, Hwang Chang-gyu, and Koo Hyun-mo, have faced political pressures and leadership challenges whenever administrations changed. This “external influence” has not only impacted personnel appointments but also negatively affected KT’s long-term strategies and market competitiveness. A notable example was Koo Hyun-mo’s failure to secure a second term, and the downfall of Yoon Kyung-lim, former Head of Group Transformation, under political pressure, despite Koo’s leadership in driving the digital transformation known as “Digico.” Koo had set a goal to expand Digico's share, focused on B2B, big data, and cloud businesses, to 50% of KT's revenue by 2025, but that plan faded with his failure to be reappointed. This structure, where management consistency is shaken from its roots by political winds, could similarly impact Kim Young-shub’s “AICT Vision.” With changes expected in KT’s top management ahead of the early presidential election in June 2025, Kim’s prospects for a second term also remain uncertain. Whether KT under Kim Young-shub’s leadership can embark on a path of sustainable growth or repeat another dark chapter remains to be seen. #KimYoungshub #KT #AICT #MicrosoftPartnership #KoreanAISolution #Mideum #GPUExpansion #OrganizationalRestructuring #PoliticalInfluence #SustainableGrowth
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- Daewoo E&C Overcomes Urban Renewal Crisis, Kim Bo-hyun Focuses on 'Brand Boost' for Second Half Bids
- Kim Bo-hyun, the President and CEO of Daewoo Engineering & Construction (E&C), has managed to secure the redevelopment project for Hannam District 2 and achieved his first project win of the year, allowing him some breathing room in the urban renewal market. However, to succeed in the fierce competition for core project sites in Seoul that will intensify in the second half of this year, it will become even more important for Kim to demonstrate stable capabilities in ongoing urban renewal projects and enhance the brand value. According to Daewoo E&C on April 28, the company was selected as the contractor at the regular general meeting for the Gunpo District 1 redevelopment project held the previous day. The Gunpo District 1 redevelopment project involves the construction of 932 apartment units in 10 buildings, with four basement levels and up to 29 above-ground floors, located at 731 Dang-dong, Gunpo, Gyeonggi Province. The project is valued at approximately KRW 298.1 billion (US$ 214.8 million). This is Daewoo E&C’s first urban renewal project win of 2024. Until the first quarter of this year, Daewoo E&C was among the top 10 construction companies that had yet to achieve an urban renewal order, along with SK ecoplant and Hyundai Engineering. In addition, Kim was able to further ease concerns by retaining Daewoo E&C’s contractor status for the Hannam District 2 redevelopment project. On April 27, the Hannam District 2 redevelopment association held an extraordinary general meeting and conducted a second vote to decide whether to maintain Daewoo E&C’s contractor status. As a result, the decision was made to retain the construction contract. With this decision, Daewoo E&C has managed to keep its construction rights for a KRW 790 billion (US$ 569.1 million) urban renewal project. However, it may be painful for Kim that the proportion of association members opposed to Daewoo E&C’s contractor status increased compared to the first confidence vote. In the latest vote, 852 members participated, with 439 voting in favor of maintaining the contract with Daewoo E&C, 402 voting against, and 11 abstaining. In the first confidence vote held last year, 742 members participated, with 414 voting in favor, 317 against, and 11 abstentions. Comparing the two votes, the number of opposition votes increased from 317 to 402, and the gap between approval and opposition narrowed from 97 votes to 37 votes. This indicates that the number of members not favorable to Daewoo E&C has grown. The immediate causes behind the two confidence votes are said to be the collapse of Daewoo E&C’s "118 Project" proposal and conflicts over the handling of an internal road cutting through the complex. Daewoo E&C had proposed building 21-story apartments with a height of 118 meters, assuming a relaxation of Nam Mountain’s scenic height restrictions, but this plan was thwarted by Seoul City, leading to the first confidence vote. Subsequently, Daewoo E&C proposed eliminating the internal road to integrate the complex, but this plan was also rejected by Seoul City, fueling discontent and distrust among some association members. In addition to these surface-level issues, dissatisfaction with Daewoo E&C’s brand value also reportedly influenced the need for two confidence votes. The association president who had pushed for changing contractors claimed, "If we proceed with changing the contractor, a top-tier construction company will participate," and it appears that members sympathetic to this claim supported the move to replace the contractor. Considering that changing the contractor would realistically impose a financial burden of several trillion won on the association members, which likely heavily influenced the vote outcome, Kim must now be even more focused on enhancing Daewoo E&C’s brand value. Since this is Kim’s first year in office, he is expected to place strong emphasis on achieving results in Seoul’s major urban renewal projects from the second half of the year. Daewoo E&C is pursuing orders for redevelopment and reconstruction projects in key areas such as Cheongpa District 1 in Yongsan, Wonhyo Villa Reconstruction in Seocho, and Gaepo Woosung Complex 7 Reconstruction in Gangnam. Moreover, competition among major domestic builders is expected to intensify in high-profile areas like Apgujeong, Seongsu, and Yeouido, meaning Daewoo E&C cannot afford to fall behind. A Daewoo E&C official stated, "Daewoo E&C is implementing a selective order strategy centered on premium project sites in Seoul and the metropolitan area this year, and is closely monitoring the progress of urban renewal projects in key areas such as Apgujeong and Seongsu." However, for Kim, the most critical task may be to show successful execution at the current project sites to enhance competitiveness against other major construction companies. In particular, since the Hannam area is regarded as one of the most prestigious regions in Seoul, the progress of the Hannam District 2 project could significantly influence future contractor selections by other associations. Daewoo E&C stated, "We will do our best to ensure that even those who opposed maintaining Daewoo E&C’s contractor status in Hannam District 2 will be satisfied," and added, "We will apply specialized designs to create a landmark residential complex." #KimBohyun #DaewooEandC #UrbanRenewal #HannamDistrict2 #GunpoDistrict1 #Redevelopment #ConstructionIndustry #SeoulProjects #SelectiveBidding #BrandEnhancement
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- CJ CheilJedang Withdraws 'Selectay Sale', Kang Sin-ho Seeks New Strategy for 'Selection and Concentration'
- Kang Sin-ho, Vice Chairman and CEO of CJ CheilJedang, has found himself in a difficult position as selling subsidiaries is not proceeding as smoothly as expected. After returning as the head of CJ CheilJedang last year with the title of Vice Chairman, Kang accelerated the business structure reorganization, but the actual achievements have been evaluated as falling short of expectations. According to sources inside and outside CJ CheilJedang on April 28, it is understood that the process of selling multiple subsidiaries is not going smoothly. CJ CheilJedang recently announced through a public disclosure that it was withdrawing its plan to sell CJ Selecta, the world’s leading producer of concentrated soy protein. The company explained that the main reason for the withdrawal was the counterparty’s failure to meet the preconditions for the transaction. CJ CheilJedang decided to scrap the sale of CJ Selecta 1 year and 7 months after officially announcing the sale plan in October 2023. CJ Selecta is a particularly meaningful company for CJ CheilJedang. It was the first major acquisition announced just one month after CJ Group Chairman Lee Jay-hyun returned to management in May 2017. At that time, CJ CheilJedang spent KRW 360 billion (US$ 259.5 million) to acquire a 90% stake in CJ Selecta through its affiliates. Currently, CJ CheilJedang holds 100% of CJ Selecta’s shares directly and indirectly. It is widely viewed that the decision to sell CJ Selecta effectively came from Chairman Lee Jay-hyun himself. It is speculated that he judged the company was not performing as expected and moved quickly to sell it and turn attention to other major deals. CJ CheilJedang explained the sale plan by stating, "The purpose was to advance the bio business portfolio and enhance management efficiency." The poor performance of the company was also cited as a reason for the sale. CJ Selecta recorded sales of KRW 714 billion (US$ 514.9 million) and a net loss of KRW 12.2 billion (US$ 8.8 million) in 2024. Although the net loss was halved compared to 2023, sales also declined, making CJ Selecta a burden for CJ CheilJedang. CJ CheilJedang was reportedly aiming to secure about KRW 700 billion to 800 billion (US$ 504.4 million to US$ 576.5 million) through the sale of its 100% stake. Had the sale succeeded, it was expected that CJ CheilJedang would improve its business structure by focusing on specialty amino acids and solution products, but the failure of the sale leaves the company unable to plan for the future. Until market conditions improve, CJ CheilJedang will be burdened with carrying the loss-making business. CJ CheilJedang’s difficulties in selling subsidiaries are not limited to CJ Selecta. The company is also seeking opportunities to sell CJ Feed&Care, its feed manufacturing and livestock subsidiary, but no significant progress has been made so far. CJ Feed&Care was established in 2019 through a physical division by CJ CheilJedang and achieved record profits in 2020. However, its profitability has continued to deteriorate, turning into a net loss of KRW 5.3 billion (US$ 3.8 million) in 2023, and the loss expanded to KRW 57.3 billion (US$ 41.3 million) last year. Similarly, no significant progress has been made in selling the bio business division. Although news broke late last year that the bio business division might be sold, and there were expectations of rapid developments, CJ CheilJedang explained that, like CJ Feed&Care, nothing had been decided yet. In March, CJ CheilJedang acknowledged that it had received a sale proposal from private equity firm MBK Partners, but it is still considered a long way from finalizing any deal. The sluggishness of subsidiary and business unit sales that have been publicly announced must be a considerable concern for Vice Chairman Kang. Kang enjoys deep trust from the CJ Group owner family. After becoming CEO of CJ Freshway in 2014, he went on to serve as CEO of several major CJ Group affiliates. He was CEO of CJ Logistics before being promoted to Vice Chairman and returning to CJ CheilJedang in February 2024. Currently, excluding the owner family member Lee Mi-kyung, Vice Chairman of CJ Group, Kang is the only professional executive at the Vice Chairman level in the group, demonstrating his strong position. After regaining leadership at CJ CheilJedang, Kang began restructuring the company’s business structure. In May 2024, he merged the Food & Nutrition (FNT) division back into the Bio division. As a result, CJ CheilJedang reorganized its business segments from four (Food, Bio, FNT, Feed&Care) to three (Food, Bio, Feed&Care). This was generally seen as a move to focus on revitalizing the struggling Bio business division, highlighting Kang’s emphasis on portfolio restructuring. Since then, news about the sale of subsidiaries at CJ CheilJedang has continued to surface, fueling speculation that Kang was planning to sell off companies that were unlikely to have an immediate positive impact on CJ CheilJedang and invest in new growth drivers. However, contrary to expectations, the difficulty in selling subsidiaries has put Kang’s plans at risk. It is now believed that Kang may also have to revise his plan to raise funds for future growth investments. A CJ CheilJedang spokesperson stated, "Since the company is not facing an urgent liquidity crisis, there is no need to rush the sale of subsidiaries," and added, "Due to ongoing uncertainties surrounding the sales process and the counterparty’s failure to meet the preconditions, we decided to withdraw from the sale of CJ Selecta." #KangSinhho #CJCheilJedang #CJGroup #CJSelecta #SubsidiarySale #MergersAndAcquisitions #BusinessRestructuring #PortfolioReorganization #BioBusiness #FutureGrowthPlans
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- Chang Duck-hyun Faces Risk as TSMC’s SoW-X Technology Shakes Samsung Electro-Mechanics
- Chang Duck-hyun, the President and CEO of Samsung Electro-Mechanics, is closely watching whether the company’s massive investment in the Flip Chip-Ball Grid Array (FC-BGA) substrate business will be impacted by TSMC’s newly developed substrate-less wafer packaging technology. TSMC’s 'SoW-X (System on Wafer-X)' packaging technology, which will be introduced in 2027, enables the combination of AI chips and high bandwidth memory (HBM) without the need for substrates. This could eliminate the necessity of FC-BGA substrates, which have been essential in conventional semiconductor packaging processes. Similarly, Samsung Electro-Mechanics’ "glass substrate" business, which has been considered a future growth engine and heavily invested in, may not see the explosive demand initially anticipated if TSMC successfully commercializes its substrate-less packaging technology. According to a comprehensive report from the semiconductor industry on April 28, the outlook for Samsung Electro-Mechanics’ substrate business is becoming darker due to TSMC’s new substrate-less semiconductor packaging technology. On April 24, at the 'North America Technology Symposium' held in California, TSMC unveiled its new packaging technology 'SoW-X,' which is said to offer 40 times the performance of its previous CoWoS (Chip On Wafer On Substrate) packaging technology. AI semiconductors utilizing this technology are scheduled to enter mass production in 2027. While CoWoS and SoW-X will likely coexist for some time after 2027, the significant performance enhancements offered by SoW-X are expected to lead the production of high-value AI chips to increasingly adopt SoW-X technology. The core feature of the SoW-X packaging technology is that it does not require a substrate. It enables the combination of AI chips and HBM directly on a wafer, eliminating the need for FC-BGA substrates used in the CoWoS process. As a result, Chang is expected to face increased concerns. Chang has made massive investments into the FC-BGA substrate business for AI applications, but demand for advanced AI chip substrates is expected to decline starting in 2027 with the expansion of SoW-X packaging. Since 2021, Samsung Electro-Mechanics has invested KRW 1.9 trillion (US$ 1.37 billion) into the FC-BGA substrate business and planned to increase the sales share of FC-BGA substrates to more than 50% of its total revenue by 2026. In December last year, the company reportedly added a new FC-BGA production line at its factory in Vietnam. Samsung Electro-Mechanics’ investment in glass substrates, which has been drawing attention as the next "game changer" in the semiconductor substrate industry, may also face a lower-than-expected surge in demand if SoW-X technology is commercialized. Coincidentally, Samsung Electro-Mechanics is aiming for mass production of its glass substrates around 2027, aligning with TSMC’s planned commercialization of SoW-X. Yang Seung-soo, an analyst at Meritz Securities, stated, "Glass substrates have been highlighted as a solution to overcome the size limitations of FC-BGA, but the introduction of SoW-X suggests a new substrate-less direction, likely limiting growth potential." TSMC, the world’s largest foundry company, almost monopolizes AI chip production, leaving no current alternative suppliers for AI chip substrates. In the fourth quarter of last year, TSMC’s global foundry market share reached 67.1%. According to Reuters, SoW-X technology can connect 16 computing chips, offering performance vastly superior to currently available AI chips. Nvidia’s "Blackwell" AI chips integrate two computing chips, and the "Rubin" series to be released next year will connect four chips. Neil Shah, Vice President of Counterpoint Research, said, "SoW-X integrates computing system-on-chip (SoC), HBM, and optical interconnects into a single package, providing wafer-scale computing performance and enhancing speed. It reduces latency compared to traditional multi-chip configurations, improves power efficiency, and strengthens scalability." Even after 2027, when TSMC begins mass production with SoW-X, demand for FC-BGA substrates is expected to continue in general servers, PCs, and automotive components. However, the future chip packaging market is forecasted to bifurcate into high-end chips using substrate-less packaging and lower-end chips continuing to use conventional substrates. As future semiconductor packaging technology evolves toward substrate-less solutions, it is widely expected that Samsung Electro-Mechanics will need to revise its future substrate business strategy. An industry official said, "It is true that TSMC’s unveiling of SoW-X packaging is expected to lead to a shift in direction for substrate companies," adding, "However, due to ongoing IT demand and the growing demand for automotive semiconductors, FC-BGA demand is expected to continue at a certain level." #ChangDuckhyun #SamsungElectroMechanics #TSMC #SoWX #FCBGA #GlassSubstrate #SemiconductorPackaging #FutureTechnology #AIMarket #SubstrateBusiness
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- Kyobo Life’s Shin Chang-jae Moves Closer to Holding Company Transition with SBI Savings Bank Acquisition Plan
- Shin Chang-jae, Chairman and CEO of Kyobo Life Insurance, is seeing an increased likelihood of achieving his long-awaited goal of transitioning the company into a financial holding group. According to the financial industry on April 25, Kyobo Life Insurance is pursuing the acquisition of a 30% stake in SBI Savings Bank currently held by Japan’s SBI Holdings. An extraordinary board meeting of Kyobo Life Insurance is expected as early as next week to discuss the proposed acquisition. If Kyobo Life acquires the 30% stake in SBI Savings Bank, it will become the second-largest shareholder. It is understood that the company plans to gradually increase its stake to 50% over the next one to two years to secure management control of the savings bank. According to current regulations, acquiring more than 10% of a savings bank requires approval from financial authorities through a major shareholder eligibility review. If the acquisition is finalized, Kyobo Life is expected to proceed with the necessary regulatory procedures. SBI Savings Bank is known as one of the more financially sound institutions among savings banks. Due to its low exposure to real estate project financing (PF) loans, it managed to stay profitable despite growing concerns over PF-related insolvencies in the savings bank industry. This push to acquire SBI Savings Bank is being interpreted as a move by Chairman Shin to accelerate Kyobo Life’s transition into a holding company—an ambition he has pursued for years. Kyobo Life currently has affiliates such as Kyobo Securities, Kyobo AXA Investment Managers, and Kyobo Real Estate Trust. However, it lacks subsidiaries in key financial sectors such as savings banks, credit cards, and non-life insurance. To transition into a holding company, it has been deemed necessary for Kyobo Life to strengthen its portfolio across the broader financial spectrum. In addition, recent developments have resolved some of the uncertainties that had made the transition more difficult, such as the long-standing “put option dispute.” Although Chairman Shin officially announced plans to convert Kyobo Life into a holding company in February 2023, little progress had been made due to the prolonged put option dispute with financial investors (FIs). However, in March of this year, the dispute appeared to be easing after major FIs—Affinity Equity Partners and GIC (Government of Singapore Investment Corporation)—sold their 9.05% and 4.50% stakes in Kyobo Life, respectively. The acquisition of an affiliate of Japan’s SBI Holdings, a company with a long-standing friendly relationship with Kyobo Life, is seen as more than just portfolio expansion. Chairman Shin and SBI Holdings’ CEO Yoshitaka Kitao have had personal ties dating back to 2007, when SBI Holdings acquired a roughly 5% stake in Kyobo Life, which it sold off in 2009. The two companies have continued collaborating, including a joint consortium for establishing an internet-only bank in 2019, and signing a memorandum of understanding in July 2024 to strengthen cooperation in digital finance, including digital healthcare and token securities. In March of this year, SBI Holdings purchased the 9.05% stake in Kyobo Life previously held by Affinity Equity Partners. On April 18, SBI Holdings announced that it would acquire an additional stake in Kyobo Life. If approved by financial regulators in both Korea and Japan, SBI Holdings will own approximately 20% of Kyobo Life, becoming its second-largest shareholder. It is also known that Chairman Shin and Chairman Kitao of SBI Holdings have maintained a close personal relationship. A Kyobo Life official stated, “It is true that we have been identifying potential acquisition targets in non-life insurance, capital, and savings banks over the past one to two years as part of our goal to become a financial holding company,” but added, “Nothing has been definitively confirmed yet regarding the acquisition of SBI Savings Bank.” #ShinChangjae #KyoboLifeInsurance #SBISavingsBank #financialholdingcompany #putoptiondispute #SBIHoldings #M&Astrategy #digitalfinance #Koreaninsurance #portfolioexpansion #KitaoYoshitaka #FIsale #financialregulatorsKoreaJapan
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- Lee Seung-gun’s Bold Bet: Offering KRW 1 Million Interview Bonus, Aims to Soar with Toss Advertising and Shopping
- Lee Seung-gun, CEO of Viva Republica, is taking aggressive steps to expand teams in high-margin revenue businesses such as advertising and commerce. This is seen as a strong signal of his commitment to solidifying the company’s profitability, following the company’s first-ever annual net profit last year. With Viva Republica currently preparing for an initial public offering (IPO) on the U.S. stock market, boosting profitability to enhance corporate value has become a critical task. According to Toss on April 25, the company is holding a focused hiring event through May 11 for server developers and machine learning (ML) engineers in the advertising and commerce (shopping) divisions. The company is offering an unprecedented incentive: KRW 1 million (US$ 720) to every candidate who completes the first round of job interviews for those roles. Toss had previously held a large-scale recruitment drive in the second half of 2022 across all its affiliates, hiring up to 300 people and awarding KRW 1 million (US$ 720) in “growth support funds” to 400 randomly selected applicants who passed the resume screening. This time, however, the hiring focus has narrowed specifically to IT developers in the advertising and commerce sectors—highlighting these as key business areas for the company in 2024. On the previous day, Lee attended a meetup held at Toss’s office in Yeoksam-dong focused on advertising and commerce businesses. He spoke about why Toss is entering the advertising and commerce industries, what services, products, and technologies it aims to develop, and presented a vision for Toss’s business direction and strategy over the next five years. The meetup was attended by key leadership including Lee himself, Park Woong-do (Head of Toss Commerce), Kim Hyun-joon (Head of Commerce Tech), Kim Hyung-bin (Head of Toss Advertising), Lee Hang-ryeong (Head of Server Division), and Kim Hong-soo (Head of Data Business). Advertising is one of the most representative revenue models for Toss as a platform business. Platform businesses usually start with free services to attract users and traffic, which often entails early-stage deficits. Once the platform scales, advertising and commission-based revenue models are introduced. Toss began with a simple, fee-free money transfer service and has grown into a platform with 28.4 million users. As a result, its advertising and commission-based services are steadily growing. The consumer services division—which includes advertising, loan brokerage, simple payments, tax services, and securities—accounted for 36.4% of revenue in 2022, 42.5% in 2023, and rose to 58.2% last year. In contrast, revenue from merchant services, such as payment terminal sales, declined from 63.6% in 2022 to 57.5% in 2023, and to 41.8% last year. The advertising business also offers high scalability. Compared to financial services, it faces relatively fewer regulatory hurdles, making overseas expansion more feasible. In fact, Lee reportedly set a goal of making Toss Advertising not just the best in Korea, but one of the top media platforms globally. Given Viva Republica’s current pursuit of a U.S. IPO and global expansion, the successful growth of its advertising business becomes even more critical. Commerce (shopping) is another area Toss is strongly investing in as a future core revenue model. It is a sector where Toss can leverage its existing user base and platform competitiveness to drive rapid growth. The business can also create strong synergy with Toss Pay and the advertising demand from sellers who want product exposure on the platform. In December 2024, Toss revamped its app and placed “Toss Shopping” at the center bottom of the home screen—signaling its intention to elevate shopping into a core service. Toss Shopping started in 2023 as a group-buying service within Toss Pay. In September of the same year, it evolved into an open-market platform allowing individual sellers to list and sell products. Currently, the platform has between 30,000 and 40,000 registered sellers. On April 24, Lee posted on his personal LinkedIn account about hiring developers for advertising and commerce, stating, “Toss will carry out a large-scale recruitment of over 1,000 people this year,” adding, “This may be the last major expansion for Toss.” He emphasized that this could be the last chance to get on board with “Team Toss,” which is poised for 10x growth. Viva Republica posted an operating profit of KRW 90.7 billion (US$ 65.4 million) and net profit of KRW 21.3 billion (US$ 15.4 million) in 2024, marking its first-ever annual profit since its founding in 2013. In a press release announcing the results, Lee said, “This milestone, achieved 10 years after launching the Toss application, demonstrates that Toss’s growth strategy has now matured into a stable business model,” adding, “We will continue to strengthen both profitability and growth by innovating user-centered services and advancing the platform.” #LeeSeungGun #VivaRepublica #Toss #TossAdvertising #TossCommerce #IPO #revenuegrowth #platformbusiness #adtech #ecommerceKorea #developerhiring #Koreanstartup #profitabilitydriven #TossExpansion
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- Bom Kim Isn’t Satisfied with KRW 40 Trillion—Why Taiwan Holds the Key to Coupang’s Global Expansion
- “Cross-border e-commerce (CBEC) is emerging as the next growth engine for domestic e-commerce operators.” This is an excerpt from the report “The Current Status and Challenges of the E-Commerce Market Entering Maturity,” published by Samjong KPMG Economic Research Institute. Bom Kim, Chairman of Coupang’s Board of Directors, has once again rewritten the records in the Korean retail industry. As of 2024, Coupang surpassed KRW 41 trillion (US$ 29.6 billion) in annual revenue, becoming the first company in the domestic retail sector to enter the “KRW 40 trillion era.” It also posted an operating profit of more than KRW 600 billion (US$ 432.6 million), earning praise for securing not only “growth in scale” but also “profitability.” Along with its e-commerce business, Coupang’s diversification efforts such as Coupang Eats (delivery) and Coupang Play (content) are also now on a full track. However, despite this success, Bom Kim’s attention is focused on the “limits.” The question, “Why doesn’t Coupang stop expanding?” reflects his concern over the structural constraints of the Korean domestic market. ◆ Why success in Korea still brings unease: the limits of domestic demand Coupang’s core lies in its e-commerce business, centered on Rocket Delivery. Utilizing its self-built logistics infrastructure, Coupang rapidly took over the Korean e-commerce market with fast delivery and an intuitive user experience. South Korea is one of the countries with the highest online shopping usage rates in the world, with well-established demand and infrastructure for mobile payments. These unique characteristics of the Korean market played a decisive role in Coupang’s rapid growth. The issue is “sustainability.” With a limited market size of around 50 million people and a competition structure close to saturation, these factors act as major obstacles to Coupang’s long-term growth. New businesses such as Coupang Eats and Coupang Play, which were launched to overcome these limitations, mostly serve as complements to retain Rocket Wow members. Since Coupang’s core is e-commerce, long-term expansion relying solely on the domestic market remains difficult. ◆ Global expansion starts with Taiwan, and results are becoming visible To overcome these limitations, Bom Kim first chose Japan. However, the “quick commerce” model launched on a trial basis failed to take root in Japan, where convenience store-based consumption habits are deeply entrenched, and Coupang ultimately decided to withdraw from the Japanese market after two years. The next market Bom Kim selected was Taiwan. Coupang currently operates two logistics centers in Taiwan, and in 2024, it launched its paid membership service “Rocket Wow,” officially introducing the same business model used in Korea. Coupang’s business in Taiwan appears to be going smoothly. The number of Coupang app downloads in Taiwan is steadily increasing, and according to Coupang Inc’s Q4 2024 earnings release, Taiwan Rocket Delivery’s net revenue increased by 23% compared to Q3. Bom Kim cited the successful application of the so-called “Korean playbook” as the reason for the replication of Korea’s success in Taiwan. This playbook includes logistics network-based Rocket Delivery, a paid membership program, and intuitive UI/UX. In the Q4 2024 earnings conference call, Kim stated, “Taiwan is a representative case where the playbook we created in Korea has been successfully applied.” ◆ Why Taiwan? A market structure optimized for the Coupang model Coupang’s Rocket Delivery model requires physical conditions that can maximize logistics efficiency. The key factors are a compact landmass, high population density, and a consumption structure centered on the capital region. From this perspective, Taiwan shares market characteristics similar to Korea. Population is concentrated around the capital, Taipei, and according to English Wikipedia, Taiwan ranks 10th in the world for population density—seven places ahead of Korea, which ranks 17th. Taiwan also has a digitally savvy consumer base accustomed to online shopping and electronic payments, just like Korea. For Coupang, Taiwan is essentially a “second Korea.” ◆ What’s next? Likely focus on compact, fast markets Coupang’s global strategy is likely to focus on “selection and concentration” rather than spreading itself too thin. Because the emphasis is more on logistics than on the platform, concentrating on countries where logistics infrastructure is easy to build minimizes risk and supports business growth. From this standpoint, Southeast Asia’s major urban countries are strong candidates for Coupang’s next logistics business expansion. Countries like Singapore, Malaysia, the Philippines, Vietnam, and Thailand all feature high urban population densities, rapid growth in online shopping and mobile payments, and are not yet fully dominated by global platforms like Amazon. Coupang is unlikely to completely abandon developed markets like Japan. However, learning from its failure there, it is expected to adopt a different strategy than it uses in Taiwan or Southeast Asia. On January 14, 2025, Coupang began pilot operations of Coupang Eats in Minato City, Tokyo. Unlike the capital-intensive logistics business, this signals a return to Japan with a platform-based approach. A source from the logistics industry stated, “Coupang’s business model inherently involves a ‘planned deficit’ phase, due to massive investments in building logistics centers and user acquisition costs through discounts and events. Taiwan is likely to follow this same structure: incurring initial losses to expand, then generating profits based on that expansion.” #Coupang #BomKim #RocketDelivery #Taiwanexpansion #ecommerceKorea #CoupangEats #CoupangPlay #crossborderecommerce #logisticsinfrastructure #SoutheastAsiamarket #Koreanplaybook #planneddeficit #globalstrategy
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- Yang Jong-hee’s Second Term at KB Financial Begins Strong with Earnings Momentum and Innovation Confidence
- Yang Jong-hee, Chairman of KB Financial Group, has made a strong start in the first quarter of his second year in office. Despite concerns over interest rate cuts, high exchange rates, and domestic and international political uncertainty, KB Financial recorded its highest-ever first-quarter net profit by demonstrating the solid fundamentals of both its banking and non-banking portfolios. This performance is expected to provide strong momentum toward achieving the group's goal of securing its position as a leading financial group in both financial performance and value enhancement. According to KB Financial on April 24, the company posted a consolidated net profit (attributable to controlling interests) of KRW 1.6973 trillion (US$ 1.22 billion) in the first quarter of 2025. This represents a 62.9% increase from the same period in 2024, when heavy losses from Hong Kong H-Index equity-linked securities (ELS) were recorded, and it far exceeded the securities market's consensus estimate of around KRW 1.5 trillion. Even when compared to the Q1 2024 net profit of KRW 1.5929 trillion (US$ 1.14 billion), excluding the ELS-related losses, the figure still represents a 6.5% increase, setting a new quarterly record. The growth trend is clearly gaining momentum. Given the stronger-than-expected first-quarter performance, KB Financial's full-year 2025 net profit forecast may be revised upward. Financial data provider FnGuide currently estimates KB Financial’s net profit for this year at around KRW 5.5 trillion (US$ 3.96 billion). In his first full year in office in 2024, Yang led KB Financial to become the first domestic financial holding company to exceed KRW 5 trillion (US$ 3.6 billion) in annual net profit, maintaining its top position among the four major financial groups. This year, the gap with rival Shinhan Financial Group (KRW 5.0197 trillion or US$ 3.61 billion) is expected to widen, further solidifying its title as the leading financial group. Above all, KB Financial has proven its profit-generating power by continuing to grow despite a challenging business environment, including major ELS compensation payouts last year, interest rate cuts, political instability, and high exchange rates this year. Chairman Yang has thus secured the momentum to tackle key challenges such as value enhancement and the normalization of overseas operations. As he entered his second year in office, Yang began to show his leadership style more clearly in organizational structure and executive appointments, and he is now fully implementing corporate value enhancement plans—one of the top priorities for financial holding companies. This is considered a crucial period in which he must prove his true leadership skills and performance. At the regular shareholders' meeting in March, Yang stated, “In 2025, KB Financial will strive to firmly establish its position as a leading financial group not only in terms of financial performance but also in value creation.” He added, “We will respond to the rapidly changing business environment with quicker innovation and transformation than others,” emphasizing, “We will deliver unwavering results in all three areas—executing the value-up plan, managing asset quality, and ensuring the stable management of client assets.” The first step has been a solid one. The company’s performance this quarter is seen as proof of its portfolio competitiveness and capital management capabilities, which support the core value-up pillars of ‘profitability’ and ‘soundness.’ In Q1, the share of profit from non-banking businesses rose to about 42%, helping offset the decline in interest income due to falling market interest rates. KB Kookmin Bank also recovered from last year’s ELS-related downturn by increasing core deposits and reducing funding costs. The group also scored well in capital soundness management. As of Q1, KB Financial’s Common Equity Tier 1 (CET1) ratio stood at 13.67%, up 0.16 percentage points from 13.51% at the end of last year. This CET1 ratio is directly tied to the shareholder return policy that Chairman Yang personally announced in October 2024. KB Financial stated that any capital above the 13% CET1 threshold at the end of 2024 would be used as the first round of shareholder return funds in 2025, and capital exceeding 13% during the year would fund share buybacks and cancellations in the second half. Indeed, just before announcing the earnings results, the board resolved to buy back and cancel KRW 300 billion (US$ 216 million) worth of treasury shares from April 25 to July 24. KB Financial had already repurchased KRW 519.9 billion (US$ 374 million) worth of shares by April 14, executing its February plan to buy back and cancel KRW 520 billion (US$ 374.7 million) in treasury stock. This raises expectations for further shareholder returns in the second half. Even after delivering stable financial results last year, Chairman Yang emphasized a “refresh” management approach. In addition to strengthening competitiveness in core business areas, he also highlighted innovation to secure future growth engines in digital, artificial intelligence (AI), and non-financial businesses. During year-end executive appointments in 2024, Yang reshuffled leadership by naming Lee Hwan-joo, then-CEO of KB Life Insurance, as the new head of KB Kookmin Bank—a surprise move—and also replaced CEOs at KB Kookmin Card and KB Life Insurance as part of the refresh strategy. Na Sang-rok, Executive Director of Finance at KB Financial, commented on the Q1 earnings: “Although interest income declined due to falling market interest rates, net interest income remained at Q4 2024 levels thanks to the inflow of core deposits,” and added, “Even in an unfavorable business environment, our well-balanced portfolio—KB’s core strength—allowed non-banking affiliates to expand their earnings, resulting in solid performance.” #YangJonghee #KBFinancialGroup #Q12025earnings #KookminBank #nonbankgrowth #CET1ratio #valueup #shareholderreturn #AIfinance #Koreanfinanceleader
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- SK hynix Surpasses Samsung in 40 Years, Wins on Earnings and Next-Gen Memory Tech like HBM4 and SOCAMM
- SK hynix is now considered to have surpassed Samsung Electronics not only in terms of profitability but also in technology, 40 years after it began its memory semiconductor business. Leveraging its advanced high-bandwidth memory (HBM) technology, SK hynix last year for the first time surpassed Samsung Electronics in annual operating profit. In the first quarter of this year as well, SK hynix posted KRW 4 trillion (US$ 2.88 billion) more in operating profit than Samsung. Moreover, in next-generation memory technology—including advanced DRAM processes such as 1c and 1d, sixth-generation HBM4, the low-power memory module ‘SOCAMM’ being developed by NVIDIA, and the industry-leading 4D NAND flash—SK hynix is ahead of Samsung. On April 24, SK hynix announced that in the first quarter of this year, it recorded sales of KRW 17.6392 trillion (US$ 12.72 billion), operating profit of KRW 7.4405 trillion (US$ 5.36 billion), and net income of KRW 8.1082 trillion (US$ 5.85 billion). Compared to the same period last year, sales increased by 42% and operating profit by 158%. This marks the second-highest quarterly sales and operating profit in the company’s history. Notably, the operating margin has improved for eight consecutive quarters, reaching 42% in Q1. According to securities firms, Samsung Electronics’ memory semiconductor operating profit for Q1 is estimated at KRW 3.3 trillion (US$ 2.38 billion). The gap in operating profit between SK hynix and Samsung exceeds KRW 4 trillion (US$ 2.88 billion). In Samsung’s semiconductor (DS) division, the foundry and system LSI business units are estimated to have posted a combined loss of around KRW 2.5 trillion (US$ 1.8 billion) in Q1, with total quarterly operating profit at about KRW 800 billion (US$ 576 million). In 2023, SK hynix achieved annual operating profit of KRW 23.5 trillion (US$ 16.95 billion), surpassing Samsung Electronics in annual semiconductor operating profit for the first time in its history. Samsung Electronics recorded operating profit of about KRW 20.54 trillion (US$ 14.82 billion) in its memory division and KRW 15 trillion (US$ 10.82 billion) across the entire semiconductor division. This marks a milestone 40 years after SK hynix, originally Hyundai Electronics, began its semiconductor business with a successful test production of 16Kb SRAM on December 16, 1984, overtaking Samsung in performance. The reversal of fortunes over four decades was driven by SK hynix’s HBM technology. Samsung had discontinued HBM development, judging it to lack market potential, but SK hynix continued to develop it steadily. Since the explosive growth of the AI market in 2023, high-speed, high-capacity memory semiconductors have become essential for AI training and inference. HBM, ideally suited for this purpose, has emerged as a core memory in AI chips (GPUs). SK hynix became a key supplier of HBM to NVIDIA in 2023 and benefited from the AI boom. In contrast, Samsung Electronics repeatedly failed to obtain NVIDIA’s HBM certification and missed out on full-scale benefits. The gap between SK hynix and Samsung Electronics is expected to persist, as SK hynix is accelerating development of next-generation memory semiconductor technologies. In particular, SK hynix is leading in DRAM process technology—the foundation of memory semiconductors. Advanced DRAM processes have progressed from 1x (1st gen), 1y (2nd gen), 1z (3rd gen), 1a (4th gen), 1b (5th gen), to 1c (6th gen), with each generation reducing line width to enhance performance and power efficiency. While Samsung reportedly stabilized its 5th-generation 1b process only this year, SK hynix succeeded in mass-producing DDR5 using the 1c process—the world’s first—in August last year. As of this month, the company’s 6th-generation 1c process yield reportedly reached 80%. SK hynix has also moved early into the 7th-generation 1d process, forming a development team in January this year. Samsung is said to have just formed its own 1d process team this month, with some analysts saying it has yet to stabilize the 1c process. The same trend applies to HBM, which is made by stacking DDR5 produced using advanced DRAM processes. SK hynix is preparing to supply 6th-generation HBM4 with 12-high stacks to NVIDIA. The company plans to complete mass production readiness in the second half of this year and begin production next year. Samsung Electronics has not yet secured NVIDIA certification for its 5th-generation HBM3E with 12-high stacks. So far, it has only been supplying HBM3 and HBM3E with 8-high stacks. In the development of ‘SOCAMM,’ a next-generation low-power memory module for AI servers being led by NVIDIA, SK hynix is also ahead of Samsung. In March, at the “GTC 2025” event in San Jose, California, SK hynix and U.S.-based Micron showcased the actual SOCAMM module. Samsung has yet to reveal a physical product. SOCAMM is expected to be installed in NVIDIA’s upcoming AI chip “Blackwell Ultra (GB300),” set for production in the second half of this year. Known for its low power consumption, SOCAMM is likely to be used in future autonomous vehicles, AI supercomputers, and robots. Gaining an early lead in the SOCAMM market is expected to greatly impact future competitiveness in memory semiconductors. Beyond DRAM, SK hynix also holds a technological edge in NAND flash. In November last year, SK hynix became the first in the world to successfully mass-produce 321-layer 1-terabit (Tb) 4D NAND, surpassing the 300-layer threshold. Samsung has set a target to begin production of 400-layer NAND this year, but its current products are estimated to be in the 280 to 290-layer range. #SKhynix #SamsungElectronics #HBM #DRAM #SOCAMM #NANDflash #AIsemiconductor #memorychip #semiconductortechnology #techleadership
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- Heo Young-in Acquitted of Breach of Trust, But Key Trial Still Ahead—SPC Struggles with ‘Anti-Labor’ Image
- Heo Young-in, Chairman of SPC Group, has been acquitted in one criminal case and still faces another—this is the story of the judicial risks surrounding him. The Supreme Court recently upheld the not guilty verdict in a case where Chairman Heo was accused of evading gift tax by selling shares of an affiliate at a low price. Heo was on trial for allegedly instructing the sale of Milldawon shares—owned by SPC affiliates Paris Croissant and Shany—to SPC Samlip at an unfairly low price. Prosecutors claimed this act was aimed at evading the so-called “gift tax on unfair business practices.” However, both the first and second trials, as well as the Supreme Court, concluded that it was difficult to recognize intent for breach of trust. Many view this not guilty verdict as a turning point that allows SPC Group to move past its legal risks and focus on global expansion. However, others point out that “the real trial isn’t over yet.” That’s because Chairman Heo still faces trial over allegations of attempting to undermine labor unions. Heo is accused of pressuring around 570 union members of the Korean Confederation of Trade Unions (KCTU) affiliated with the Paris Baguette branch to withdraw from the union between February 2021 and July 2022, and of giving low performance review scores to union members in May 2021, resulting in their promotion being denied. ◆ The Persistent ‘Anti-Labor’ Image of SPC SPC Group faced intense public backlash after a fatal accident occurred at its Pyeongtaek SPL bakery plant in 2022. The outrage escalated after it was revealed that the company continued production immediately following the incident, prompting widespread consumer anger and a boycott campaign. On social media, the hashtag “blood-stained bread” spread rapidly. The issue isn’t just that the image was temporarily damaged—it has continued to build over time. Even before and after the fatal accident, SPC Group was repeatedly involved in controversies over worker deaths from overwork, allegations of industrial accident cover-ups, and union suppression. Chairman Heo’s union-busting trial is seen as part of this broader pattern. At a press conference held on October 21, 2022, shortly after the fatal bakery accident, Heo promised to “thoroughly re-inspect the group’s overall safety management system and significantly strengthen safety management to prevent recurrence.” However, less than a year later, in August 2023, another fatal incident occurred when a worker at the Shany bakery plant died after being caught in a dough mixer. According to a report released in May 2024 by the Citizens’ Coalition for Consumer Sovereignty, a total of 502 victims of industrial accidents were recorded at SPC Group affiliates between 2017 and September 2022. ◆ The Lost Corporate Image of SPC Group—The Social ‘Trial’ Is Not Over As a food company, SPC Group’s brand image has a critical influence on consumer decisions. Beyond basic requirements for trust, safety, and hygiene in food, corporate ethics have also become a core part of brand competitiveness. A similar example is Namyang Dairy, which has long suffered from consumer boycotts—not due to hygiene or safety issues, but because of ethical controversies involving the owner family. Some argue that the SPC boycott was a short-lived episode. However, SPC Samlip’s business performance has shown clear stagnation since the boycott began in 2022. In 2024, SPC Samlip recorded consolidated revenue of KRW 3.4279 trillion (US$ 2.47 billion), a decrease of 0.15% compared to 2023. Compared to 2022—when it was hit hardest by the boycott—revenue grew only 3.42% over two years. Its operating profit margin has remained flat at around 2.7% from 2022 through 2024. ◆ Heo Young-in’s Real Challenge: Rebuilding Social Trust, Not Just Legal Acquittals Some argue that the real issue for SPC Group and Chairman Heo Young-in is not legal risk, but the risk of losing public trust. SPC Group is a B2C company in direct contact with consumers, and the public and civil society often value social responsibility and ethical leadership more than legal innocence. In fact, civic groups, consumers, and labor organizations continue to demand structural reforms and a sincere apology from SPC. Even when “KBO Bread,” a new product released by SPC Samlip in late March, gained explosive popularity, posts continued to appear on social media urging boycotts due to its affiliation with SPC Group. An industry insider commented, “We can’t say for certain that SPC Samlip’s stagnant sales are solely due to the boycott,” but added, “It’s hard to deny that SPC Group’s image has severely deteriorated among consumers.” #HeoYoungin #SPCGroup #SPCSamlip #judicialrisk #boycottSPC #unionbusting #industrialaccidents #Koreanfoodindustry #brandreputation #socialresponsibility
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- Storm Clouds Over Shinsegae Fashion — William Kim’s High Salary Draws Scrutiny Amid Weak Performance
- Shinsegae International is expected to post Q1 earnings next month that fall short of already-lowered market expectations. Analysts point to underperformance in its fashion division — which accounts for over half of total revenue — as the main drag on company-wide growth. CEO William Kim, who previously oversaw all of Shinsegae International, was reassigned solely to the fashion division in a year-end executive reshuffle amid weak performance. Given his status as the highest-paid executive in the group, pressure is mounting for him to justify his compensation with tangible results. Observers are watching closely to see whether Kim can find a breakthrough in the struggling fashion business, which is facing both domestic consumption slowdown and adverse exchange rates. According to financial data firm FnGuide on April 23, Shinsegae International’s Q1 2024 consensus operating profit is estimated at ₩9.6 billion (approx. $7.38 million), down 14.4% year-on-year. This continues a downward trend, following a 45% year-on-year decline in full-year operating profit to ₩26.8 billion (approx. $20.62 million) in 2023. The current estimate is also down 35% from the ₩13 billion (approx. $10 million) forecast from three months ago. Brokerages Kiwoom Securities and NH Investment & Securities are even more bearish, estimating Q1 operating profits at ₩5.2 billion (approx. $4 million) and ₩6.1 billion (approx. $4.7 million), respectively — well below market consensus. Both have revised down their target prices by 14.3% (to ₩12,000 ≈ $9.23) and 19.2% (to ₩10,500 ≈ $8.08). NH also downgraded its investment rating from “Buy” to “Neutral.” The gloom surrounding Shinsegae International stems from a double whammy: a domestic fashion market frozen by weak consumption and a strong U.S. dollar, which impacts its high-end import-focused business model. Founded in 1996, the company began by importing foreign luxury fashion brands to the Korean market. Today, it still derives most of its revenue from domestic sales and holds numerous high-priced imported brands. As a result, it’s more vulnerable than peers to local economic downturns and currency volatility. Jung Ji-yoon, an analyst at NH Investment & Securities, noted, “With a portfolio centered on expensive imported brands, sales recovery has been slower than expected. The prolonged strength of the dollar is also increasing procurement costs. Meanwhile, direct entries of global megabrands into Korea are reducing Shinsegae’s earnings visibility.” Shinsegae International currently operates in three major segments: fashion, cosmetics, and lifestyle products. In 2023, fashion accounted for 50.7% of total sales, followed by cosmetics at 31.7% and lifestyle at 17.7%. William Kim was appointed sole CEO in January 2023. However, in October that year, Hong-geuk Kim, CEO of Shinsegae Casa, took over the beauty and lifestyle divisions, leaving Kim solely in charge of fashion. Born in 1972, William Kim holds a degree in accounting from the University of Colorado. He previously served as CFO at Gucci and Senior VP of Retail and Digital at Burberry, making him a seasoned veteran of global luxury brands. The executive shuffle was widely interpreted as a response to lackluster performance under Kim’s leadership. With Shinsegae International struggling amid fashion sector woes, the group sought to strengthen business expertise and expedite decision-making. Despite weak overall earnings, the cosmetics division is expected to have maintained solid growth in Q1. Jo So-jung, an analyst at Kiwoom Securities, said, “Cosmetics revenue likely rose 17% year-on-year. While some imported brands saw distribution downsizing, that was offset by contributions from Amuse and growth in Shinsegae’s own brands.” Amuse, a vegan cosmetics brand targeting younger consumers with strong global recognition, was fully acquired by Shinsegae International in 2023 for ₩71.3 billion (approx. $54.85 million) under Kim’s leadership. William Kim is the highest-paid executive in Shinsegae Group. In 2023, he received ₩4.15 billion (approx. $3.19 million) in total compensation from both Shinsegae International and Shinsegae’s Digital & Global division — surpassing Chairwoman Chung Yoo-kyung’s ₩3.6 billion (approx. $2.77 million) pay from Shinsegae. This underscores the high level of expectations placed on Kim by the group. However, Shinsegae International’s performance has sharply declined under his leadership. After achieving a record ₩115.3 billion (approx. $88.7 million) in operating profit in 2022, the company saw a 57.7% drop to ₩48.7 billion (approx. $37.5 million) in 2023, and the downtrend continues. Some argue that the poor results reflect broader market challenges and the difficulty of overseeing both fashion and beauty simultaneously, making it hard for Kim to fully demonstrate his capabilities. But this year, things are different. Kim is now solely responsible for fashion — his specialty — and failure to produce a turnaround may mean no further opportunities. His term runs until March 2026. Most analysts agree that a swift rebound is unlikely. Jung Ji-yoon said, “While we anticipate a recovery in profits from cost-cutting and base effects starting in late 2025, with company-wide operating margins around 3%, meaningful improvement in profitability will take time.” Amid industry headwinds, William Kim appears focused on laying a foundation for profitability through cost control, aiming to capitalize on a rebound in the domestic apparel market. At the March shareholders’ meeting, Kim stated, “To overcome the current crisis and achieve sustainable growth, we’re prioritizing a group-wide business restructuring. We are reviewing and restructuring all costs from zero base, with the goal of building a long-term, stable financial structure that enables consistent profitability.” Reported by Heo Won-seok
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- Lotte’s Job-based Pay Push Faces Harsh Reality — Shin Dong-bin’s Optimism Meets Tough Road Ahead
- Lotte Group Chairman Shin Dong-bin’s efforts to implement a job-based pay system aimed at improving the group’s “work culture” face numerous challenges. Most notably, the criteria for distinguishing between “critical” and “non-critical” roles are not resonating with employees, prompting criticism that job-based pay does not suit South Korea’s organizational culture. According to accounts from inside and outside the group on April 23, Lotte is pushing to expand job-based pay — where compensation is determined by the responsibilities of a given role — across its affiliates. However, employee dissatisfaction appears to be growing. An employee from one affiliate said, “There were rumors about the job-based system, and it turns out they were true. Among people who joined the company at the same time, many are grumbling about the plan.” Another employee commented, “It’s hard to understand what basis the company is using to classify jobs as important or not. Salaries at Lotte are already lower than at other conglomerates, and this is hurting morale even further.” A job-based pay system determines salaries based on the significance and demands of the work performed, aiming to align pay more closely with actual job responsibilities. A representative from Lotte Holdings explained, “We’re trying to build an HR system that focuses more on individual performance based on job roles, with the aim of improving efficiency and productivity.” Currently, Lotte Department Store and Lotte Wellfood have been directed to review the introduction of job-based pay. Affiliates such as Lotte Biologics, Lotte Innovate, and Daehong Communications have already implemented it, and Lotte plans to expand the system across its affiliates. This is the first such attempt among major South Korean conglomerates. Samsung Electronics attempted to introduce job-based pay in 2016 but abandoned the plan after strong employee backlash. Chairman Shin appears to believe that such a drastic HR reform is necessary despite the expected pushback from employees, likely seeing limitations in the seniority-based pay system amid the group’s broader crisis. He may view job-based compensation as essential to reforming the rigid, seniority-driven corporate culture, by aligning pay with the actual value of work performed. Yet employees remain more wary than hopeful. A key concern is the perceived arbitrariness in defining what constitutes “important” work. An employee at one affiliate said, “After hearing about the job-based system, people have been gathering to speculate about how their roles will be ranked, and complaints are growing. Even if jobs differ in importance, ranking departments could lead to more comparison and dissatisfaction.” For example, in the retail sector, debates could arise about whether MDs (merchandisers) or marketing teams are more critical. Even if the company applies its own standards, it may not gain employee support. In both academic and labor circles, the success or failure of job-based pay systems hinges on how effectively jobs are analyzed and relatively valued. Gaining consensus on which tasks are essential and which are supportive is critical. Another employee noted, “In affiliates that lean technical, such as those with R&D roles, it’s easier to agree that research jobs should be rated highest. But in affiliates with more varied roles, like marketing or admin, grading jobs could trigger more dissatisfaction.” To mitigate this, Lotte is reportedly considering not disclosing each employee’s job grade. In fact, affiliates that have already implemented the system do not reveal individual rankings. Even if consensus is reached on how to grade jobs, another hurdle remains: determining compensation based on those evaluations, especially given the lack of relevant market data. The system should be grounded in difficulty level and market competitiveness, but few South Korean firms outside the public sector have adopted it. Critics also argue that job-based pay may not mesh well with Korea’s team-centered corporate culture, where roles are often flexible and employees are expected to help across functions when needed. Job-based pay systems are designed for clear individual responsibilities, but Korean corporate dynamics often demand group decision-making and cross-functional support, creating a mismatch. There are also questions about the actual effectiveness of such systems. Some financial institutions that have adopted job-based pay systems have faced criticism for being “job-based in name only.” According to a financial industry insider, the salary difference between job roles is only around 50,000 to 100,000 KRW (approx. 38 to 77 USD), which makes it difficult for employees to feel any real impact and instead breeds resentment among colleagues. Lotte is said to be considering a pay gap of about 20% between grade 1 and grade 5 as part of its plan. That said, the system isn’t entirely without merit. In companies where job-based pay has been implemented, roles once avoided due to high workload but low reward have attracted talent after being designated “core roles.” Some firms allow employees in core roles to reach promotion thresholds faster, leading to greater voluntary participation and motivation. Reported by Nam Hee-heon
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- Samsung Electronics’ Han Jin-man Faces Dilemma Over U.S. Foundry Strategy: “Tariffs If Idle, Losses If Operated”
- Samsung Electronics is facing a dilemma over its semiconductor foundry (contract manufacturing) plant under construction in Taylor, Texas. With no major customers secured, experts warn that launching operations as scheduled in 2026 may be akin to "pouring water into a bottomless pot." However, not producing semiconductors in the U.S. could leave the company vulnerable to heavy tariff policies under a potential Trump administration, making it difficult to scale back the investment. According to reports compiled from the semiconductor industry on April 23, Samsung Electronics’ foundry division may post operating losses of more than 5 trillion KRW this year. Amid these concerns, there is growing analysis that the start of operations at the Taylor foundry plant may need to be delayed. Samsung Electronics is investing $37 billion (about 53 trillion KRW) to build two semiconductor manufacturing plants and an R&D facility in Taylor, Texas. The Taylor plant is expected to produce advanced semiconductors using 2–4nm process technology and is slated for completion in 2026. However, it is reported that Samsung has recently delayed orders for major semiconductor equipment and is adjusting its investment pace. This is due to difficulties in securing large clients. Samsung is competing with Taiwan’s TSMC to secure 2nm customers, but so far has not announced any major client wins. In contrast, TSMC has reportedly secured Apple, Intel, and AMD as customers for its 2nm process. If Samsung fails to secure enough orders, the utilization rate of the Taylor plant is expected to remain low even after completion. Even if large orders are received, operating at a loss appears inevitable for the time being. TSMC's plant in Arizona, completed last year and supplied with large orders from major U.S. tech companies, still recorded a net loss of 14.208 billion TWD (about 630 billion KRW) in 2024. China’s state-run Global Times reported that “the Arizona plant imports key parts and raw materials, which increases logistics costs and lengthens supply cycles,” adding, “it’s no secret that the decision to build semiconductor manufacturing facilities in the U.S. was driven not by commercial logic, but by geopolitical pressure under the CHIPS Act.” TSMC founder Morris Chang predicted in 2022 that "manufacturing semiconductors in the U.S. will cost 50% more than in Taiwan." Since Samsung’s Taylor plant has not secured any large orders yet, its situation could be more serious than TSMC’s. The financial burden on the foundry business unit is growing. Samsung Electronics’ foundry and System LSI divisions recorded an operating loss of around 5.18 trillion KRW in 2024. This year alone, losses of over 5 trillion KRW are expected from the foundry division. Moreover, production of the Exynos 2500 mobile application processor (AP) using 3nm process technology remains uncertain, making it even more necessary to minimize losses. Han Jin-man, President of the Foundry Business at Samsung’s Device Solutions (DS) Division, said during a shareholders' meeting on March 19, “We will work to continuously grow sales at each process node and decisively reduce inefficient investments.” However, simply reducing U.S. investments is also not a straightforward option. Most of the facilities at the Taylor plant have already been built, and only some manufacturing equipment remains to be installed. Additionally, there is still a need to produce some semiconductors in the U.S. to avoid tariffs. On April 3 (local time), former U.S. President Donald Trump stated that “tariffs will soon be imposed on semiconductors,” and in February, he mentioned tariffs at a level of 25%. Given U.S. tariff policies and TSMC’s operations in the U.S., Samsung Electronics is essentially forced to continue investing in the U.S., despite unfavorable conditions. An industry insider commented, “TSMC completed its U.S. plant with large orders in hand, while Samsung is nearing completion without any major contracts. While the investment decision has strong political underpinnings, with predictable losses ahead, Samsung needs to revise its plans to minimize the damage.” Reported by Na Byung-hyun
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- Why Cho Hyun-bum Turned to Lee Soo-il — Again, for Hanon Systems
- Lee Soo-il, Vice Chairman of Hankook & Company Group and CEO of Hanon Systems, is considered a trusted confidant of Cho Hyun-bum, Chairman and CEO of Hankook & Company Group. Chairman Cho dispatched Vice Chairman Lee to Hanon Systems with the intention of making the company’s acquisition a crucial turning point in Hankook & Company Group’s transformation into a comprehensive mobility corporation. This is similar to how LG Group Chairman Koo Kwang-mo appointed former LG CEO Kwon Young-soo as Vice Chairman of LG Energy Solution to strengthen its battery business. Vice Chairman Lee is overseeing the integration process after the acquisition to ensure that Hanon Systems is stably embedded within the group, while also taking a comprehensive view of Hankook & Company Group. ◆ Background of the Acquisition by Hankook & Company Hanon Systems is a global No. 2 in automotive thermal management systems and is experiencing a surge in demand due to the growth of eco-friendly vehicles such as electric cars. Through its acquisition of Hanon Systems via Hankook Tire & Technology, Hankook & Company Group has completed its portfolio in tires, vehicle auxiliary batteries, and thermal management systems, further solidifying its status as a global leader. Approximately KRW 1.44 trillion was invested in the process, giving the group a 54.77% stake. In the automotive industry, this is interpreted as a strategy to maximize synergy effects. Moreover, the European Union is expected to tighten its carbon neutrality-related emission regulations. This is likely to revitalize sales of eco-friendly vehicles, including electric cars, which have been facing a temporary stagnation phase (referred to as a “chasm”). Lee Jae-il, a researcher at Eugene Investment & Securities, stated, “The EU recently announced measures to stimulate electric vehicle demand and strengthen its internal supply chain, demonstrating its commitment to overcoming the EV chasm head-on. This creates a favorable environment for Hanon Systems, now under Hankook & Company Group.” BNK Investment & Securities researcher Lee Sang-hyun also commented, “Major European automakers like Mercedes-Benz, BMW, and Volkswagen are expected to launch new electric vehicles using newly developed electrification platforms this year, which will increase output and likely benefit Hanon Systems.” ◆ Lee Soo-il, a Traditional ‘Hankook Tire Man,’ Trusted by Cho Hyun-bum Vice Chairman Lee joined Hankook Tire (the former name of Hankook Tire & Technology) in 1987 through open recruitment and has been a quintessential “Hankook Tire man,” spending 21 of his 37 years at the company as an executive. He has served in key roles including head of the Americas and China regional headquarters, marketing division, and operations division. Notably, after becoming CEO and COO of Hankook Tire in 2018, he pushed for expanded sales and partnerships in the global market. His broad industrial experience and deep understanding of overseas markets have greatly contributed to forming business strategies following the Hanon Systems acquisition. Hankook & Company explained its decision to appoint Lee Soo-il as the new CEO of Hanon Systems by stating, “He is the right person to ensure Hanon Systems’ stable integration into the group amid an uncertain domestic and international environment, and to improve its financial structure while generating synergy. He is deemed well-suited to reinforce internal stability as the group acquires the world’s No. 2 in vehicle thermal management.” Lee intends to create a new ecosystem that integrates tires, batteries, and thermal management systems, with a focus on synergy. In his inauguration speech, he said, “I will do my best to improve the management efficiency of Hanon Systems and enhance its global competitiveness. Let’s grow into the world’s No. 1 HVAC system company with a proactive and challenging mindset.” Lee has been recognized as a reliable figure for continuing to manage the company stably despite the two legal crises faced by Chairman Cho Hyun-bum. When Chairman Cho stepped down from his CEO position in 2019 due to a personal corruption charge, Lee took over as CEO of Hankook Tire & Technology. Even in 2023, when Chairman Cho was detained on suspicion of using tens of billions of won in company funds to renovate his house and purchase luxury vehicles, Lee continued to lead the group. In particular, he was promoted to vice chairman after successfully overcoming the challenges caused by a fire at a Hankook Tire factory and delivering near-record-breaking performance. ◆ Can Lee Soo-il Resolve the Uncertainties at Hanon Systems? Vice Chairman Lee is regarded as the right person to resolve potential uncertainties following the acquisition of Hanon Systems. There are concerns that Hanon Systems’ high debt ratio might financially burden the entire Hankook & Company Group. According to the electronic disclosure system, Hanon Systems’ debt ratio has decreased from 283% in 2022 to 268% in 2023 and 254% in 2024, but remains at a high level. Lee is known not only as a veteran in marketing and sales but also as an expert in cost management, leading to expectations that he will be able to navigate the financial challenges effectively. His past achievements in reducing logistics costs and operating various global business sites support this view. Notably, during his tenure as head of the China regional office, he stabilized demand for premium tires in the Chinese market and increased the number of original equipment (OE) automotive clients from around 40 to 50—key accomplishments to his credit.
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- Hanwha Challenges Europe's Defense Turf - Kim Dong-kwan Vows to Be a "Trusted NATO Partner"
- "The year 2024 marks the meaningful 10th anniversary of the contract signed with Poland in 2014 for the supply of K9 self-propelled howitzer chassis. As strategic partners safeguarding freedom and democracy, Korea and Poland have worked to lead international peace. We will contribute to revitalizing the economy by strengthening Poland's defense capabilities through technology transfer and localization, as well as jointly promoting exports to third countries. We will grow into a trusted partner of NATO." — At the welcome ceremony for the President of Poland held at Hanwha Aerospace's Changwon Plant 3 on October 25, 2024. European local defense companies are building walls to protect their home turf. Can Kim Dong-kwan, Vice Chairman of Hanwha Group, establish a foothold in the European defense market? Vice Chairman Kim expressed his determination to position Korea and Poland as trusted partners of NATO at the welcome ceremony for the Polish President held at Hanwha Aerospace’s Changwon Plant 3 on October 25, 2024. Triggered by the Russia-Ukraine war, Korean defense companies including Hanwha Aerospace have actively expanded into Europe, but recently, local European defense companies have been increasing their checks, drawing attention. Major European countries, considering geopolitical risks, are actively pursuing joint development and joint procurement systems to strengthen defense industry sovereignty, and are moving to institutionally restrict the market entry of Korean weapon systems. In its annual report last year, the European Defence Agency (EDA) identified the expansion of joint procurement of European-made weapons as a key task, and formalized the policy direction to reduce dependence on weapon supplies from non-EU regions to strengthen defense capabilities. By introducing European preference and common standards in the process of defense material procurement, attempts are being made to exclude the introduction of non-European weapon systems. In particular, Germany and France are leading the way with an increasing number of joint development projects within Europe, such as the next-generation tank (MGCS) and fighter jet (FCAS), which is a cause for concern. It is understood that Germany plans to establish a new agency dedicated to arms exports, the “Weapons Export Support Office,” starting in December 2024, and is preparing related systems. The principle of European preference pursued by Germany and France is significantly affecting the defense material purchases of countries within Europe. As a result, Vice Chairman Kim Dong-kwan’s vision of a “Korean Lockheed Martin” may face setbacks. A representative case is Croatia, which had considered adopting Hanwha Aerospace’s main defense product, the K9 self-propelled howitzer, but ultimately decided to adopt France’s Caesar howitzer and Germany’s Rheinmetall Leopard tank. Moreover, the term of Polish President Andrzej Duda, whom Vice Chairman Kim personally welcomed last year, is set to expire in August this year, raising uncertainty for Hanwha Group. President Duda is a member of the anti-German Law and Justice Party (PiS) in Poland, and if the administration changes, the cooperative relationship between Hanwha Group and Poland could be shaken. Given this series of developments, a more realistic strategy is to build defense production facilities locally in Europe or to gain recognition as a European company through joint ventures (JVs). The establishment of a joint venture between Hanwha Aerospace and Poland’s WB is understood in the same context as a countermeasure. However, some EU member states have systems that exclude defense companies with a high proportion of foreign investment from bidding, and there are also concerns that even if production facilities are established in Europe, high labor costs and strong labor regulations could pose challenges. Attention is focused on whether Vice Chairman Kim Dong-kwan of Hanwha Group can successfully overcome these difficulties.
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- KB vs. Shinhan: Yang and Jin Face Off in Round 2 of Profit Battle
- Yang Jong-hee, Chairman of KB Financial Group, and Jin Ok-dong, Chairman of Shinhan Financial Group, are expected to engage in another intense competition for leadership in the financial industry this year, following last year’s rivalry. According to the securities industry, KB Financial is expected to outperform Shinhan in net profit not only in the soon-to-be-released Q1 results but also in full-year earnings. However, considering Jin Ok-dong's strong focus on non-banking businesses in what is effectively the final year of his first term, the situation is not one where Chairman Yang can be entirely complacent. On April 22, industry sources estimated that in Q1 2025, KB Financial and Shinhan Financial each recorded net profits (attributable to controlling shareholders) in the range of 1.5 trillion KRW and 1.4 trillion KRW, respectively. If these estimates are correct, KB Financial will continue its lead over Shinhan for the first quarter, following superior performances in 2023 and 2024. KB and Shinhan will announce their Q1 results on April 24 and 25, respectively. Looking ahead to year-end, KB is still expected to come out on top. The securities sector projects that KB Financial will post a full-year net profit in the mid-5 trillion KRW range, while Shinhan is forecasted to deliver results in the high-4 trillion to low-5 trillion KRW range, favoring Chairman Yang. However, uncertainties remain. In the past, one-off expenses due to financial incidents and gains from asset sales have frequently changed the tide in this competition. Even the head-to-head record between KB and Shinhan over the past decade stands at 6 to 4, indicating no clear long-term dominance. Global economic uncertainty due to the U.S.'s reciprocal tariffs is also expected to significantly influence overseas business performance. Shinhan is aiming for 1 trillion KRW in overseas net profit this year, focusing on markets such as Vietnam, Japan, and Kazakhstan. KB is hoping to turn its Indonesian subsidiary, KB Bank, into the black. This year being the final year of Jin Ok-dong's first term is another factor that means KB cannot rest easy. Jin was appointed as chairman of Shinhan Financial in March 2023, with his term ending in March 2026. Yang and Jin succeeded Yoon Jong-kyu and Cho Yong-byoung, respectively, who both fought to either defend or regain leadership positions toward the end of their tenures. Yoon led KB from November 2014 to November 2023, and Cho led Shinhan from March 2017 to March 2023. From 2017 to 2022, the two former chairmen competed for the top spot six times, each winning three times. Yoon took the lead in 2017, 2020, and 2021, while Cho led in 2018, 2019, and 2022. The term for both KB and Shinhan chairmen is three years. Yoon successfully secured a second and third term in November 2017 and November 2020, respectively, based on his leadership achievements. Cho also earned a second term in March 2020 following strong 2019 results, though he decided to step down at the end of 2022, citing leadership transition, even after reclaiming the top spot that year. This year marks the second full-scale performance showdown between Yang and Jin. Yang took office in November 2023, and Jin in March 2023. In their first full contest last year, Yang maintained the lead with KB becoming the first financial holding company in Korea to surpass 5 trillion KRW in net profit. The competition is a matter of pride for both groups. Being the top financial holding company enhances brand value and recognition as Korea’s representative financial firm. Jin considers strengthening non-banking businesses critical to reclaiming the top spot and is aggressively pushing investments in card, insurance, securities, and capital sectors. Despite Shinhan Bank achieving the highest net profit among the four major banks last year, the overall holding company failed to regain the top spot due to weak non-banking performance. Jin is actively working to address this. Last week, he made a surprise appearance at Shinhan Life’s 2025 sales event in Incheon to encourage insurance planners and rally efforts toward a brighter future. Shareholders have also called for a focus on non-banking units. At the March shareholders' meeting, one shareholder stated, “In the past, non-banking subsidiaries contributed over 40% of profits, playing a key role in securing leadership status. That was not the case last year.” He urged renewed performance from non-bank affiliates. Chairman Jin responded, “Thank you for the feedback. I will reflect deeply and strive to enhance our competitiveness in the non-banking sector.” According to analysts, Shinhan is expected to grow stably this year, supported by both banking and non-banking operations. Kim Ji-young, head of Kyobo Securities’ research center, said in a recent report, “Despite expected interest rate cuts in 2025, Shinhan’s profitability should remain strong due to increased non-interest income, improved cost efficiency, and proactive provisioning.” She named Shinhan her top pick among bank stocks.
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- Kurly’s Rosy Strategy with Naver—Industry Shrugs at Kim Seul-ah’s Grand Vision
- Kim Seul-ah, CEO of Kurly, has turned to an alliance with Naver as a breakthrough for the company's stagnant growth, but the e-commerce industry’s response has been lukewarm. This is because, judging from past examples of retail companies that partnered with Naver for outward growth, meaningful results have been hard to come by. According to conversations within the e-commerce industry on April 22, 2025, there is growing skepticism about whether the strategic collaboration between Kurly and Naver will truly benefit Kurly. A representative case is the alliance between Shinsegae Group and Naver. In March 2021, the two companies strengthened their cooperation through a stock swap, often described as “mixing blood” rather than a simple partnership. At that time, Emart and Shinsegae International transferred KRW 150 billion (US$ 108.2 million) and KRW 100 billion (US$ 72.1 million) worth of shares, respectively, to Naver in exchange for Naver stocks. Subsequently, Shinsegae Group’s affiliates such as SSG.com and Emart Everyday began selling their products on Naver. SSG.com joined Naver Shopping in October 2021, and Emart Everyday followed in September 2023. However, there have been no remarkable results since then. Compared to the number of users entering through each platform’s own app, the traffic coming through Naver was not significant. According to Emart, the transaction volume growth rate for SSG.com after joining Naver was 24% in Q4 2021, which actually decreased from the 26% growth rate in Q3. In 2022, transaction volume grew 23% in Q1 and 13% in Q2, but fell by 5% in Q3 and plunged by 9% in Q4. This suggests that the effect of joining Naver was effectively negligible. Homeplus also joined Naver Shopping in August 2020 in an effort to respond to the e-commerce shift but saw little effect. Homeplus had expected to gain around 1.6 million new online customers annually through the Naver Shopping platform. However, the 23rd fiscal year audit report (March 2020–February 2021), which reflects the initial impact of the partnership, showed a 4.6% drop in revenue. Although the impact of COVID-19 was partly to blame, the fact that revenue continued to fall during the 24th fiscal year indicates that Naver failed to deliver the expected results. One industry insider said, “It’s difficult to say that Naver users are significantly different from the customer base of other retail companies’ own apps,” and added, “While listing on Naver might provide an additional sales channel, it doesn’t necessarily translate into meaningful results.” This is also why securities analysts remain skeptical of the partnership between the two companies. After news of the Kurly–Naver collaboration broke, an analyst from a securities firm simply commented, “Naver is also working with Shinsegae Group, but that hasn’t been very meaningful either.” Of course, for CEO Kim Seul-ah, cooperation with Naver likely feels urgent. Kurly’s monthly active users are reportedly stuck around the 3 million mark. Although the launch of a paid membership helped secure loyal customers, growing the user base further remains difficult. The fact that Naver’s newly launched standalone shopping app, Naver Plus Store, surpassed 5 million downloads in just over a month would have been a very encouraging figure for Kim. It likely signaled strong potential for expanding Kurly’s customer base. However, some believe that the differing goals between Kim and Naver may hinder the success of the partnership, as Naver’s goal in onboarding retailers isn’t to boost each individual company’s growth. Naver has long pursued a strategy of expanding its commerce ecosystem by embracing a variety of platforms. In addition to Kurly, companies such as Shinsegae Group, Homeplus, GS The Fresh, and local markets have joined the platform. This approach is often referred to as an “anti-Coupang alliance.” From Naver’s perspective, Kurly may end up as just one of many retailers—“one of them.” Kim is reportedly very enthusiastic about the partnership. She is even considering transferring 10% of Kurly’s shares to Naver. Although not a formal “blood alliance” involving a stock swap, this move appears to signal intentions for a long-term relationship. Kurly and Naver recently signed a strategic alliance to explore various ways to strengthen their e-commerce businesses based on mutual synergy. Kurly aims to join Naver’s commerce platform, Naver Plus Store, within the year. Naver will offer users information on Kurly’s premium products, including fresh groceries. Kim stated, “The two companies each possess a unique competitive edge that other platforms cannot easily replicate, making us ideal partners. Starting with this strategic alliance, we will deliver excellent products and services to more customers.” #KimSeulah #Kurly #Naver #ecommerce #NaverPlusStore #partnership #WemakeKurly #retailstrategy #KoreanRetail #commerceAlliance
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- Samsung to End DDR4 DRAM Production by 2027—Jun Young-hyun Shifts Focus to High-Value DRAM Amid China’s Rise
- Samsung Electronics has decided to gradually reduce production of DDR4 DRAM general-purpose memory semiconductors and completely halt it by 2027 due to intensified competition from China. As China begins mass-producing DDR4, reducing its profitability, Samsung plans to lower output of general-purpose memory while increasing production of high-value DRAM such as HBM to improve profits. Jun Young-hyun, the Vice Chairman and Head of the Device Solutions (DS) Division at Samsung Electronics, is expected to focus the company’s semiconductor capabilities on AI-related DDR5 (Double Data Rate 5), high-bandwidth memory (HBM), and LPDDR5X (Low Power DDR5X). On April 22, 2025, Taiwan’s DigiTimes, citing industry sources, reported that Samsung has informed customers it will end production of DDR4 modules using the 1y DRAM process by December this year. Specifically, production of 8GB and 16GB DDR4 SODIMM (Small Outline Dual In-line Memory Module) and UDIMM (Unbuffered DIMM) modules using the 1y process will cease on December 10. Orders for these products will be accepted only until June, according to the sources. Advanced DRAM processes have evolved in the order of 1x (first generation), 1y (second generation), 1z (third generation), 1a (fourth generation), 1b (fifth generation), and 1c (sixth generation), with finer linewidths improving performance and power efficiency with each generation. Samsung is also expected to stop production of DDR4 made with the third-generation 1z process by 2026, and to fully end DDR4 production in 2027. Last year, DDR4 DRAM accounted for about 30% of Samsung’s DRAM revenue. The company plans to reduce this to below 10% this year while increasing the share of high-value DRAM products. According to DigiTimes, Samsung’s 1y DRAM accounted for about 20% of its total bit shipments last year, but this will decrease to 12% in the first half of this year and below 10% in the second half. The share of 1z process DRAM, which exceeded 30% last year, is expected to fall to the low 20% range this year. Vice Chairman Jun is expected to concentrate on the advanced 1a (fourth generation), 1b (fifth generation), and 1c (sixth generation) processes and increase investment in high-value DDR5, HBM, and LPDDR5X. Some forecast that the bit shipment ratio of Samsung’s fifth-generation 1b DRAM process will exceed 40% by the end of this year. It is known that Samsung stabilized the 1b process earlier this year. Vice Chairman Jun even visited NVIDIA’s U.S. headquarters to present the fifth-generation HBM3E product, which is stacked using DDR5 made with the 1b process. In February, Samsung unveiled the fastest LPDDR5X Ultra Pro, produced using the 1b process, at the International Solid-State Circuits Conference (ISSCC) in San Francisco. Samsung’s move is seen as a response to China’s rapid progress in general-purpose DRAM. As China begins mass production leveraging its cost competitiveness, Samsung is losing ground in general-purpose DRAM using lower-level processes. According to market research firm Omdia, China’s CXMT (ChangXin Memory Technologies) is expected to produce 2.73 million wafers of DRAM this year, a 68% increase from the previous year—more than three times the originally projected 20%. CXMT’s annual wafer production of 2.73 million is about half of second-largest DRAM maker SK hynix’s output and similar in scale to that of third-place Micron. China’s share in the global DRAM market is rising rapidly. In 2020, Chinese memory makers had virtually no market share. CXMT’s share rose to 5% last year, and Taiwan-based TrendForce forecasts it could grow to 12% this year. Dan Hutcheson, Vice Chair of TechInsights, told the Financial Times of the UK, “CXMT’s market share is still low, but its rapid growth is creating a ‘snowball effect.’ This is the same way Korea displaced Japan in the memory semiconductor sector.” Meanwhile, some believe that Samsung is transitioning to high-value DRAM too slowly compared to its competitors. SK hynix’s 1b process already accounted for over 20% of its production by the end of last year, and is expected to exceed 50% this year. In addition, SK hynix became the first in the world to develop DDR5 using the sixth-generation 1c process in August last year. #SamsungElectronics #JunYounghyun #DRAM #DDR4 #DDR5 #HBM #LPDDR5X #CXMT #ChinaSemiconductor #memorySemiconductor #semiconductorStrategy #NVIDIA #1bprocess #1cprocess #ISSCC #SKHynix #Micron #memoryMarket #semiconductorCompetition #WEMIX #DigiTimes #TrendForce #Omdia
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- Why Neowiz Mafia’s Chang Hyun-guk Is Betting on Blockchain—Is CROSS the New WEMIX?
- “I used to think cryptocurrency was a hoax. Then one acquaintance asked me, ‘How would you explain the process by which gold came to have value?’ That shocked me deeply. Cryptocurrency is following the exact same evolution as all existing currencies.” This is what Chang Hyun-guk, CEO of NEXUS (formerly Action Square), said in an interview with News1 in 2022. Chang has once again declared his return to the blockchain gaming market, this time not with Wemade, but with NEXUS. On January 7, he announced on his X (formerly Twitter) account, “We are launching ‘CROSS,’ a game token protocol where every game can issue tokens and all users can trade them,” adding that “as the first step, we have issued the Ethereum-based cryptocurrency ‘CROSS.’” According to Chang, the first game to be equipped with CROSS will be “Ragnarok: Monster World,” developed by ZeroEndX, and is scheduled to be released in late April. ◆ Lingering ‘legal risk’ over Chang Hyun-guk, and WEMIX still struggling to regain trust The problem is that Chang has not yet restored the market’s trust lost due to WEMIX. The shadow of legal risk stemming from the WEMIX controversy continues to loom over him. While serving as CEO of Wemade, Chang gained attention for proving the potential of blockchain-based games through the blockchain platform WEMIX and the game “MIR4 Global.” The global version of MIR4 became a hit, especially in developing countries, realizing the dream of “earning money while playing games.” However, Wemade’s WEMIX business didn’t go smoothly afterward. In January 2022, controversy arose over a large volume of WEMIX being sold without proper public disclosure. Then in November 2022, the Digital Asset eXchange Alliance (DAXA) decided to delist WEMIX, citing a lack of trustworthiness. Although Chang demonstrated the potential of blockchain games through WEMIX, he also revealed its limitations—specifically, how the ecosystem can collapse instantly if trust in the token, which acts as the glue of the system, breaks down. WEMIX was re-listed on several domestic exchanges such as Coinone and Bithumb in 2023, but in August 2024, Chang Hyun-guk was indicted by prosecutors for violating the Capital Markets Act. Another MMORPG on the WEMIX chain, “Night Crows,” was released in April 2023 and became a hit, raising renewed expectations for WEMIX. However, the coin price failed to show any meaningful rebound. In January 2021, the price of 1 WEMIX exceeded KRW 30,000 (US$ 21.6), but as of April 10, 2025, it stands at just KRW 877 (US$ 0.63) on Coinone. Ultimately, Chang abruptly resigned from his position as CEO of Wemade in March 2024, despite having two years left in his term. Many in the industry speculated that legal risks may have influenced the decision. ◆ Can CROSS, with its “Three Zero Policy,” regain market trust unlike WEMIX? Amid this backdrop, criticism has emerged that Chang’s new project CROSS is fundamentally no different from WEMIX. With WEMIX—damaged in credibility—left behind at Wemade, Chang appears to be restarting under a new name at a new company. In an interview with Bloter in January this year, when asked about the difference between CROSS and WEMIX, Chang even admitted, “It’s the same thing we were trying to do with WEMIX at Wemade.” Ultimately, some say that NEXUS is a new testing ground to reboot the “WEMIX experiment,” but in a more refined manner. However, Chang believes CROSS can regain market trust through its “Three Zero Policy,” unlike WEMIX, which lost credibility. The Three Zero Policy includes: Zero Minting (no additional mining beyond the total issued amount), Zero Reserve (the foundation holds no reserve tokens; all issued coins are traded on the market), and Zero Freerider (tokens are sold at the same price to all participants after issuance). Given that the loss of trust in WEMIX began with Wemade’s dumping of tokens, the Zero Reserve policy may significantly help build CROSS’s credibility in the crypto market. ◆ Can Korea’s top blockchain expert Chang Hyun-guk succeed in his second ‘coin economy’? Chang Hyun-guk is a core figure in the “Neowiz Mafia.” The “Neowiz Mafia” refers to the influential human network built around Neowiz founder Jang Byung-kyu (now Chairman of Krafton’s Board). Early members of Neowiz have come to wield major influence across Korea’s IT industry. While the Neowiz Mafia is widely dispersed across AI, platforms, messengers, and games, Chang Hyun-guk is the only one deeply involved in blockchain. In fact, Chang is widely regarded as the most experienced and representative figure in Korea’s IT industry when it comes to blockchain. Yet, as he began turning his blockchain vision into reality at Wemade—building toward a “blockchain empire”—public trust in blockchain gaming, P2E (Play to Earn) games, and cryptocurrency markets declined significantly. Having proven the scalability of blockchain games through WEMIX, it remains to be seen whether Chang can now overcome those limitations in his second challenge. The entire IT industry is closely watching. An industry insider commented, “Even back at Wemade, CEO Chang always emphasized that for P2E games to succeed, they must first be fun.” They added, “Now that transparency in cryptocurrency has become an added requirement, CROSS will only succeed if it can capture both gaming appeal and market trust.” #ChangHyunguk #NEXUS #CROSS #WEMIX #blockchainGame #P2E #cryptocurrency #cryptoPolicy #ThreeZeroPolicy #KoreaIT
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- Lotte E&C Nears Order Target, Park Hyun-chul Drives Turnaround and Growth
- Park Hyun-chul, Vice Chairman and CEO of Lotte E&C, is on the verge of achieving the company’s annual target for urban redevelopment project orders this year. Following last year’s financial improvement results, he is now filling the order books, accelerating the company’s structural strengthening momentum. According to Lotte E&C on April 21, the company was selected as the contractor at the ‘Busan Gaya District 4 Residential Redevelopment Project Constructor Selection General Assembly’ held the previous day at BEXCO in Haeundae-gu, Busan. The Busan Gaya District 4 Residential Redevelopment Project involves constructing 16 apartment buildings with a total of 1,998 units, ranging from five basement levels to 31 floors above ground, along with welfare facilities, in the area around 648, Gayadong, Busanjin-gu, Busan. The total construction cost is estimated at KRW 703.4 billion (US$ 507.2 million). In addition, Lotte E&C is also virtually confirmed to win the reconstruction project of Garak Hyundai Apartment Phase 1 in Songpa-gu, Seoul. This project involves constructing eight apartment buildings with 842 units from four basement levels to 21 floors above ground in the area of 160, Dongnam-ro, Songpa-gu. The construction cost is expected to be around KRW 401.5 billion (US$ 289.5 million). The bidding process to select the contractor for this project was held twice, with Lotte E&C being the sole participant both times, leading to failed bids. According to the Urban and Residential Environment Improvement Act, if bidding fails twice, the reconstruction or redevelopment association can switch to a private contract method, significantly increasing the likelihood that Lotte E&C will secure the project through such a contract. An industry official stated, “Lotte E&C has been actively promoting its high-end brand ‘Lotte Castle Le-EL’ for this project,” adding, “Considering that both bidding rounds failed and Lotte E&C was the sole participant, a switch to a private contract seems highly probable.” Vice Chairman Park is achieving notable results in urban redevelopment projects this year, including Gaya District 4 and Garak Hyundai Apartment Phase 1. In the first quarter alone, Lotte E&C won four projects: the Sin-Yongsan North Area District 1 Redevelopment Project in Yongsan-gu, Seoul; Sanggye District 5 Redevelopment Project in Nowon-gu, Seoul; Yeonsan District 5 Reconstruction Project in Yeonje-gu, Busan; and Guun District 1 Reconstruction Project in Suwon, Gyeonggi Province. Considering Lotte E&C’s shareholding ratio and other factors, the total combined value of these four projects is KRW 1.8094 trillion (US$ 1.304 billion). Taking into account the projects underway since April—including Gaya District 4 (KRW 703.4 billion or US$ 507.2 million) and Garak Hyundai Apartment Phase 1 (KRW 401.5 billion or US$ 289.5 million)—Lotte E&C is expected to reach a total order volume of around KRW 3 trillion (US$ 2.163 billion). Vice Chairman Park set the company’s annual urban redevelopment order target at a minimum of KRW 2.5 trillion (US$ 1.802 billion) and a maximum of KRW 3 trillion (US$ 2.163 billion), and the upper target is now within reach during the first half of the year. As Vice Chairman Park delivers results in urban redevelopment orders, Lotte E&C’s order backlog continues to strengthen. As of the end of last year, Lotte E&C’s order backlog stood at KRW 42.088 trillion (US$ 30.34 billion). Compared to its 2023 revenue of KRW 7.8632 trillion (US$ 5.67 billion), the order backlog ratio is 535.3%, meaning the company has secured work equivalent to 5.35 years of revenue. Among major domestic construction companies, Lotte E&C ranks first in order backlog ratio. HDC Hyundai Development Company, ranked second, had a backlog ratio of 468.6% based on revenue of KRW 4.2562 trillion (US$ 3.07 billion). In absolute terms, Hyundai E&C leads with KRW 103.8774 trillion (US$ 74.88 billion) in backlog, followed by GS E&C with KRW 58.7468 trillion (US$ 42.38 billion), Daewoo E&C with KRW 44.4401 trillion (US$ 32.04 billion), and Lotte E&C in fourth place. Given that order backlog reflects a construction company’s future workload and is an indicator of future revenue potential, Lotte E&C’s growth outlook appears favorable for the time being. Though Lotte E&C faced liquidity crisis rumors from the end of 2022 to early last year, Vice Chairman Park, who was brought in as a turnaround figure in December 2022, has made progress in restructuring the company through aggressive financial improvements. Under Park’s leadership, Lotte E&C’s debt ratio dropped from 235% at the end of 2022 to 196% by the end of last year. In the construction industry, a debt ratio below 200% is generally considered stable. Park is also pushing for the sale of non-core assets, including the company’s headquarters building in Seocho-gu, Seoul, and the debt ratio is expected to fall further to a more stable level by the end of this year. #ParkHyunChul #LotteEandC #UrbanRedevelopment #ConstructionIndustry #OrderBacklog #FinancialImprovement #DebtReduction #Gaya4District #GarakHyundaiApartment #RealEstateDevelopment #KoreanConstruction
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- Clouds Over CJENM’s Earnings, Yoon Sang-hyun Faces Pressure as Core Business Falters
- Market Expectations for CJENM Are Falling Despite strong performance from its commerce division, CJ OnStyle, analysts believe CJENM's core entertainment division may have weighed heavily on the company’s first-quarter earnings. Yoon Sang-hyun, CEO of CJENM, who was tasked late last year with focusing on the entertainment division, is likely to face increasing pressure. According to market analysis compiled on April 21, CJENM's earnings for the first quarter—scheduled to be released on May 8—are widely expected to fall short of expectations. The current consensus for CJENM’s first-quarter operating profit is KRW 23 billion (US$ 16.6 million). This is more than KRW 10 billion (US$ 7.2 million) lower than the KRW 33.9 billion (US$ 24.5 million) estimate from three months ago. Some securities firms are estimating operating profit in the high KRW 10 billion range. Eugene Investment & Securities and Hyundai Motor Securities both lowered their earnings forecasts and target stock prices, emphasizing the likelihood that CJENM’s Q1 results would miss market expectations. Eugene Investment & Securities adjusted its target price down by 6.3% to KRW 75,000 (US$ 54.1), calling the first-quarter earnings a bottom, while Hyundai Motor Securities forecast a 13% miss relative to market expectations and revised its target price from KRW 85,000 (US$ 61.3) to KRW 80,000 (US$ 57.7). A painful point for CEO Yoon Sang-hyun is that it is the entertainment division—under his direct supervision—that is being singled out as dragging down CJENM’s performance. The entertainment division, which oversees broadcasting, film, and music content, is the core of CJENM. The revenue ratio between the entertainment and commerce divisions is roughly 7 to 3, and the entertainment division employs more staff. Initially, Yoon oversaw both divisions, but in the November 2024 executive reshuffle, Lee Sun-young was appointed to lead the commerce division, allowing Yoon to concentrate solely on entertainment. This personnel move was interpreted as CJ Group’s effort to reduce the burden of managing two fundamentally different business divisions simultaneously. Some saw the move as a response to the entertainment division’s ongoing weak performance, aiming to improve results by enhancing business-specific expertise. However, the first performance report under Yoon’s sole leadership is expected to fall short of the group’s expectations, potentially tarnishing his reputation. The poor performance of the media platform business (e.g., TVING) and film/drama production (e.g., Fifth Season, Studio Dragon) is cited as the main cause of the entertainment division’s underwhelming results. In the case of TVING, the end of its partnership with Naver Membership reportedly led to a significant subscriber drop. As a result, the business was structurally positioned to incur operating losses. TVING’s first-quarter operating loss is estimated at KRW 16.5 billion (US$ 11.9 million), larger than in the fourth quarter of last year. Although TVING is hoping to attract more subscribers during the April baseball season, turning a profit this year still appears difficult. Securities firms forecast an annual operating loss of KRW 15.9 billion (US$ 11.5 million) for TVING in 2024. The film and drama sectors are faring no better. The movie "Harbin," reportedly produced with a budget of around KRW 30 billion (US$ 21.6 million), attracted 4.91 million viewers after its release in late December 2023 through February 2024—far short of the break-even point of 6.5 million. Even considering additional revenue from international sales and secondary rights, which place the break-even at around 5 million viewers, the film is still expected to result in a minor loss. Kim Hoi-jae, a researcher at Daishin Securities, pointed out, “Since the pandemic, CJENM has only seen notable success with films like 'Confidential Assignment 2,' 'Veteran 2,' and 'Harbin.’ CJENM has struggled to produce strong returns in its film business.” The Fifth Season, a U.S. content production company acquired by CJENM in 2022 for around KRW 1 trillion (US$ 719.2 million), is also expected to show deteriorated profits in Q1 due to a decline in drama output. Studio Dragon also saw its operating profit decline following low viewership for its much-anticipated drama “Ask the Stars.” The music business somewhat salvaged the entertainment division’s image in Q1, with estimated operating profits of KRW 3 billion to KRW 5 billion (US$ 2.2 million to US$ 3.6 million). Fortunately, on a year-over-year basis, the entertainment division may have improved compared to Q1 2023, when it posted an operating loss of KRW 16.5 billion (US$ 11.9 million). Losses in Q1 2024 are expected to have narrowed to the single-digit billion range. However, the repeated trend of the entertainment division dampening the performance of the otherwise successful commerce division has led some to question whether CJENM’s growth engine is faltering. #CJENM #YoonSangHyun #EntertainmentDivision #TVING #FifthSeason #StudioDragon #HarbinMovie #CommerceVsEntertainment #OperatingProfit #KoreanMediaIndustry
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- KB Kookmin Bank Overhauls Operations with AI and Digital Channels, Lee Hwan-ju Leads Pension Market Reshuffle
- Lee Hwan-ju, the President of KB Kookmin Bank, is driving reform of the retirement pension business through artificial intelligence (AI) and enhancement of non-face-to-face channels. KB Kookmin Bank has recently been taking proactive steps to reorganize both the retirement pension structure and its services around return-on-investment performance. This aligns with President Lee’s inaugural emphasis on redefining and redesigning the business to secure future competitiveness. According to a KB Kookmin Bank announcement on April 21, the company is accepting “Requests for Information (RFI) for Non-Face-to-Face Channel Innovation in KB Retirement Pension” until April 30. The core content of this announcement includes proposals for building a hyper-personalized pension return management system based on customer data, and developing AI-based customer services such as an “AI pension assistant” using generative AI. Suggestions are also being solicited for redesigning the retirement pension service screens and features of the bank’s mobile app, “KB Star Banking.” The goal is to simplify the sign-up process for new pension customers and improve user experiences in product search and asset management. In short, the bank is conducting market research to overhaul its retirement pension products and services to match the market changes and customer demands of the digital and AI era. Earlier, KB Kookmin Bank also participated in KB Financial Group’s “Open Innovation Program” and began recruiting startups to collaborate on developing content for retirement pension services via non-face-to-face channels. Alongside this research, the bank is already moving into investment and implementation stages for service development. At the beginning of this year, President Lee reorganized the retirement pension division upon taking office. The retirement pension division, previously a standalone unit, was placed under the Asset Management Customer Group, and a “Retirement Pension Return Enhancement Task Force” was established. Led by the head of the pension division, the task force is developing return enhancement strategies across areas such as pension products, customer and return management, systems and retirement planning, and marketing. This suggests that initiatives such as the AI pension assistant, the strengthening of digital channels, and the restructuring of the retirement pension organization and system are all directly or indirectly aimed at improving returns. It also indicates that President Lee is redefining the retirement pension business as a market driven by return competitiveness. In fact, the digital private banker (PB) and hyper-personalized services that KB Kookmin Bank is pursuing for retirement pensions aim to recommend optimal portfolios by analyzing each customer’s contributions, risk preferences, and age to generate higher returns. Enhancing the convenience of pension product management through mobile apps also falls under this same strategy. By making it easier to browse and switch pension products, customers who are currently invested in principal-protected products like deposits may be encouraged to shift toward higher-return, non-principal-protected options, thereby improving the overall return on pension assets. KB Kookmin Bank is a leading player in the retirement pension market among banks in Korea. According to the Korea Federation of Banks, as of the end of the first quarter of 2025, KB Kookmin Bank held KRW 42.7628 trillion (US$ 30.8 billion) in retirement pension assets, ranking second after Shinhan Bank (KRW 46.3925 trillion or US$ 33.4 billion). In defined contribution (DC) and individual retirement pension (IRP) schemes—which are more sensitive to performance than defined benefit (DB) plans—KB Kookmin Bank is ranked first, with KRW 14.2375 trillion (US$ 10.3 billion) and KRW 16.6594 trillion (US$ 12.0 billion) in assets, respectively. Shinhan Bank follows closely with KRW 13.5885 trillion (US$ 9.8 billion) in DC and KRW 16.5434 trillion (US$ 11.9 billion) in IRP. In fact, KB Kookmin Bank posted the highest one-year return on non-principal-protected IRP products among banks. However, competition in Korea’s retirement pension market is intensifying. The gap between KB Kookmin Bank and third-place Hana Bank (KRW 41.2444 trillion or US$ 29.7 billion) is not large, and the one-year return on non-principal-protected DB products—the largest portion of pension assets—ranks the lowest among the top five banks. Competition with securities firms and insurance companies is also fierce. Securities companies in particular are rapidly growing their pension asset bases by offering better convenience and higher returns through products such as exchange-traded funds (ETFs). The government is also fostering industry competition through policies such as introducing in-kind transfers and requiring return disclosures to activate retirement pension investment. Additionally, future market growth is expected to shift from DB and DC schemes to IRP, where individuals play a more active role in asset management. As President Lee stated in his inaugural speech, the retirement pension market is undergoing a fundamental shift in business dynamics. He remarked, “Nowadays, people can switch financial institutions with just a tap of a finger. If our confidence that KB Kookmin Bank is doing well turns into complacency, we will fall behind in the competition.” He added, “Therefore, we must redefine and redesign the purpose and means of each business area—capital management, retail, corporate finance, and digital—and carry out urgent innovation.” KB Financial Group has announced that its management strategy this year will focus on “innovation” and “growth” to reform the structure of its organizations and businesses. A KB Kookmin Bank official stated, “We will differentiate our retirement pension return management services with AI advisors and hyper-personalized solutions,” adding, “We are also preparing to launch a robo-advisor service for retirement pensions within the second quarter.” #LeeHwanJu #KBKookminBank #RetirementPension #AIinBanking #DigitalTransformation #PensionReturns #HyperPersonalization #RoboAdvisor #IRP #KoreanFinance
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- Chung Eui-sun’s Passion for Hyundai’s ‘N’ Pays Off — From Dismissal to Global Praise in 10 Years
- Hyundai Motor’s high-performance brand N has completely reversed its reputation in the 10 years since its launch. When Hyundai first introduced the N brand in 2015, many viewed it with skepticism, accusing the company of merely copying the high-performance lineups of foreign carmakers. However, the brand has now grown into one that is recognized globally. Chung Eui-sun, chairman of Hyundai Motor Group, continues to devote significant attention to the high-performance brand, and much attention is now focused on how successful the high-performance Genesis currently under development will be. According to industry sources on April 18, expectations are growing both domestically and internationally for Hyundai’s N models and the upcoming Genesis high-performance lineup. Hyundai began developing the N brand after hiring Albert Biermann, former head of BMW M, as executive vice president in charge of high-performance vehicle development on April 1, 2015. At the time, global automakers were doubtful about Hyundai’s ambition to develop a high-performance brand. But ten years later, Hyundai’s N brand has gained global recognition. The most highly praised model recently is the IONIQ 5 N. Released in September 2023 as the seventh N model, the IONIQ 5 N is the brand’s first all-wheel-drive and first electric vehicle in the N lineup. The IONIQ 5 N has been rated the best high-performance EV by automotive media outlets such as Auto Zeitung in Germany and Car Magazine in the UK. In comparative evaluations conducted over three days at Germany’s Nürburgring Nordschleife circuit and nearby roads, the two publications praised the IONIQ 5 N, saying, “The driving pleasure—one of the most essential values in high-performance vehicles—is overwhelmingly better than its competitors.” Considering the vehicles tested included the Tesla Model S Plaid, BMW i5 M60, Porsche Taycan Turbo GT with Weissach Package, Lucid Air Dream Performance, Lotus Eletre R, and Pininfarina Battista Nino Farina, the high praise for the IONIQ 5 N was remarkable. Lamborghini is currently developing its first electric vehicle, scheduled for release in 2029, and the IONIQ 5 N has even been spotted at the Lamborghini plant. Lamborghini CEO Stephan Winkelmann admitted he had personally driven the IONIQ 5 N and that it is being used as a reference in their EV development. The N brand’s growth over the past 10 years is also evident in its sales performance. The first N model, the i30 N, was launched in 2017. That year, global annual sales of N brand vehicles were only around 2,000 units. By last year, however, sales had increased to approximately 26,000 units annually—a 13-fold increase in seven years. Cumulative sales have reached about 140,000 units, with over 90% sold overseas. The brand is not only recognized internationally. Hyundai’s N models are also favored by domestic racing drivers. Before entering into sponsorship agreements, many racers choose Hyundai N models due to the high cost of imported high-performance cars. A current racing driver told Business Post in an interview, “Among similarly priced cars, the performance of Hyundai N models is considered the best in the world,” and added, “Many drivers in Korea acknowledge the capabilities of the N models.” Albert Biermann, now a technical advisor at Hyundai Motor Europe Technical Center, played a major role in the development and success of the N brand. When Biermann moved from BMW to Hyundai, there was significant controversy in Germany. His move led to the strengthening of laws related to technology transfer, and new regulations were introduced requiring senior technical personnel to report to the German government if they take positions with companies outside the EU. At Hyundai, Biermann developed high-performance vehicles that rival European brands. When his contract ended in 2020 and he considered returning to Sweden, Chairman Chung Eui-sun persuaded him to stay as an advisor. Chairman Chung continues to emphasize the development of high-performance lineups. For Hyundai to become a top global automotive brand, high-performance vehicles play a crucial role. Hyundai’s high-performance lineup is now expanding to its premium brand Genesis. The next challenge is whether Genesis can replicate the success of the N brand in its high-performance models. Hyundai is currently developing a high-performance model called “Magma” based on the GV60. A current racing driver said, “There’s a lot of interest in the Magma model among drivers,” adding, “As an ultra-high-performance model, the biggest question is what the price point will be.” On April 16 local time in the United States, Hyundai unveiled the real model of the “GMR-001 Hypercar,” which will participate in endurance racing starting in 2026, at a preview event for the 2025 New York Auto Show. Endurance racing is a form of motorsport where vehicles compete over long hours and distances without rest, distinguishing it from other races. The GMR-001 Hypercar is a racing car developed by Genesis to compete in the 2026 World Endurance Championship and the 2027 WeatherTech SportsCar Championship. To prepare for these competitions, Hyundai Motorsport launched the Genesis Magma Racing Team in December 2023. On April 6, the Genesis Magma Racing Team participated in the opening round of the 2025 European Le Mans Series (ELMS) in Barcelona, Spain, and achieved first place in the LMP2 class and second overall. #HyundaiMotor #Nbrand #ChungEuisun #IONIQ5N #AlbertBiermann #GenesisMagma #GMR001 #highperformanceEV #automotiveindustry #NewYorkAutoShow
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- LG Chem, Battery, Display Slump Speeds Up Koo Kwang-mo’s ‘Selection and Concentration’ Strategy
- LG Group’s cash generation capacity has declined and its borrowings have surged over the past three years due to the deteriorating business environment of its key affiliates in petrochemicals, batteries, and displays. In particular, the group posted a consolidated net loss of KRW 300 billion (US$ 216.2 million) in 2024, raising growing calls for group-wide rebalancing (business restructuring). Koo Kwang-mo, chairman of LG Group, has recently been emphasizing the need for a change in business structure, and is expected to accelerate “selection and concentration” strategies to overcome the crisis. According to business sources on April 18, LG Group’s financial structure is rapidly weakening due to continued poor performance by major affiliates that once underpinned the group’s profits, along with mounting burdens from large-scale investments. According to NICE Credit Rating, LG Group’s combined earnings before interest and taxes (EBIT), which amounted to about KRW 13.9 trillion (US$ 10.02 billion) in 2021, fell to approximately KRW 5.6 trillion (US$ 4.03 billion) in 2024. Net profit, which stood at KRW 8.6 trillion (US$ 6.20 billion) in 2021, steadily declined and turned into a net loss of KRW 300 billion (US$ 216.2 million) in 2024. As facility investments in battery plants and OLED panels continued, the group’s net borrowings also increased, from KRW 29.6 trillion (US$ 21.35 billion) in 2021 to over KRW 43 trillion (US$ 30.99 billion) in 2024. Lee Kyu-hee, a senior researcher at NICE Credit Rating, said, “LG Group’s overall profitability has weakened, and the high investment burden in the battery sector continues to push up debt. As a result, the group is expanding fundraising efforts through non-core business and asset sales, and capital increases.” While LG Display is showing signs of a turnaround through its shift to OLED-focused operations, the petrochemical and battery sectors are expected to continue underperforming for the time being. LG Chem is facing difficulties securing profitability due to oversupply caused by China’s expansion of petrochemical facilities. LG Energy Solution is under growing pressure due to the temporary demand stagnation in electric vehicles and tariff concerns stemming from the Trump administration's trade policies in the U.S. According to iM Securities Research Center, “If a 10% tariff is imposed on cathodes, anodes, and separators supplied from Korea, the production cost of Korean battery cell makers operating in the U.S. would rise by about 4%, which could lead to a 5-percentage point drop in operating profit margin.” Chairman Koo is seeking a turnaround through “selection and concentration.” At a top executives’ meeting held on March 27 to mark LG Group’s 78th anniversary, Chairman Koo said, “Looking back at past changes, business environment shifts occurred much faster than we anticipated, while changes in our business structure were not properly executed. The reality is that we cannot excel in every business. That is why we must focus and concentrate.” He called on group executives to enact swift changes for survival. As a result, there is speculation that affiliates may pursue bold business restructurings, similar to LG Electronics’ past exit from the smartphone business. Rumors continue to circulate that LG Chem may sell its Yeosu naphtha cracking center (NCC) Plant 2, and it is reportedly considering withdrawing from the separator business. The company is also seeking buyers for its aesthetics division, which generated about KRW 100 billion (US$ 72.1 million) in sales last year, and is expected to soon put its agrochemical and fertilizer subsidiary Farm Hannong up for sale. LG Household & Health Care is also restructuring, particularly in North America where performance has been weak, and is reportedly weighing the sale of Avon, a North American household goods company acquired in 2019. Avon has failed to turn a profit for four consecutive years from 2021 to 2024. The group is also likely to pursue cash generation through stake sales or initial public offerings (IPOs) of subsidiaries. LG Electronics is preparing for the listing of its Indian subsidiary on the Indian stock market. If the listing succeeds, it is expected to raise about US$ 1.5 billion (KRW 2.2 trillion). LGCNS secured approximately KRW 600 billion (US$ 432.5 million) through an IPO in February this year. LG Chem is also reportedly reviewing a partial stake sale in LG Energy Solution to improve liquidity. As LG Chem holds 81.84% of LG Energy Solution, selling 20–30% of its stake would not significantly impact its control. Shin Hak-cheol, vice chairman of LG Chem, stated at the annual general meeting on March 24, “We continue to consider various options, including the sale of LG Energy Solution shares.” #KooKwangmo #LGGroup #LGChem #LGEnergySolution #businessrestructuring #LGDisplay #OLEDinvestment #selectionandconcentration #IPOstrategy #financialrebalancing
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- Cho Man-ho's Strong First Year Back at Musinsa Hits a Snag, Emergency Management to Boost IPO Valuation
- Cho Man-ho, CEO of Musinsa, is cautiously and thoroughly testing every step on the path toward an initial public offering (IPO). Even minor issues that could pose a burden to the listing process are being carefully addressed and mitigated. According to the investment banking and e-commerce industries on April 18, Musinsa’s recent declaration of an emergency management system has been described as somewhat unusual. Musinsa cited failure to meet its internal targets for transaction volume in the first quarter as the reason for declaring emergency management. However, it was confirmed that the company still maintained its overall growth trend. A Musinsa official stated, “The company had set somewhat aggressive targets for transaction volume, but the results fell short of expectations,” and added, “Compared to the first quarter of last year, transaction volume still increased.” Despite the growth in transaction volume, the declaration of emergency management solely due to unmet internal goals is viewed as a clear sign that CEO Cho is extremely sensitive about the IPO. Analysts believe that if a listing weren’t on the table, missing a target alone would not have led to such drastic measures. The company’s performance has been strong. Last year, Musinsa achieved the highest results since its founding, surpassing KRW 1 trillion (US$ 721.1 million) in revenue and KRW 100 billion (US$ 72.1 million) in operating profit for the first time. An industry insider noted, “As CEO Cho initiated Musinsa’s listing process, he began meticulously managing risks that could negatively affect the company’s valuation.” Musinsa is reportedly in behind-the-scenes discussions to select its IPO underwriter. Whether the company will go public on the U.S. Nasdaq or Korea’s KOSPI has yet to be decided. During the IPO process, indicators such as revenue and operating profit are important, but growth-related metrics are equally critical. In this context, a slowdown in transaction volume—an industry standard for measuring e-commerce growth—could make it more difficult to achieve a favorable valuation, which CEO Cho is closely monitoring. Coupang’s high valuation during its listing on the New York Stock Exchange was largely due to its rapid growth, despite having never turned a profit at the time. Its strong growth made it an attractive proposition. CEO Cho is in a position where he cannot ignore such market dynamics. Musinsa is currently valued at around KRW 3 trillion (US$ 2.16 billion) on the over-the-counter market, but internally the company hopes to receive a valuation of at least KRW 5 trillion (US$ 3.61 billion). Securing this level of valuation depends heavily on demonstrating strong growth, which likely influenced the company’s ambitious internal targets. Ordering executives to come in over the weekend, despite the increase in transaction volume, reflects CEO Cho’s intense concern over the success of the listing. Cho returned as CEO of Musinsa in March last year after a three-year absence and has since focused heavily on risk management. After Cho stepped down from management, Musinsa posted a loss in 2023. Although the company grew in size, it gained a reputation as a business that failed to make a profit during this period. At the time, capital markets began to prioritize companies that could generate actual profits over those that simply had scale. Even companies with strong growth trajectories faced doubts about their sustainability if they continued to post losses. Since returning to the helm, CEO Cho has focused on improving profitability. Thanks to these efforts, Musinsa returned to profitability within a year. Now, however, maintaining growth has emerged as the next major challenge. CEO Cho considers “top-line growth” and “sustained profitability” to be the keys to a successful IPO. To drive transaction volume, the company is expanding into new business areas like beauty and secondhand goods, while continuing to strengthen its private label Musinsa Standard to maintain profitability. A Musinsa official explained, “Given current market conditions, we judged that not only the first quarter but future transaction volumes will also be difficult to maintain, which is why we entered emergency management. There will be no forced layoffs, but we will focus on improving organizational efficiency.” #ChoManho #Musinsa #IPO #KOSPI #Nasdaq #ecommerce #growthstrategy #emergencymanagement #corporatevaluation #MusinsaStandard
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- Cho Hyun-joon Faces Debt Crisis at Hyosung Chemical, Key Test for Group Stability
- Cho Hyun-joon, chairman of Hyosung Group, is deliberating on ways to help Hyosung Chemical make a comeback amid the severe financial difficulties it has been facing in recent years due to the downturn in the petrochemical industry. Hyosung Chemical is one of Hyosung Group’s core affiliates, but its continued losses and rising debt have been identified as major risks to the overall group’s management. Hyosung’s main affiliates, Hyosung TNC and the holding company Hyosung, have stepped in to support it, but there are growing concerns that the crisis could spread to the entire group. ◆ Deepening Financial Crisis at Hyosung Chemical Hyosung Chemical’s financial condition is deteriorating across multiple indicators. According to its provisional results for 2024, the company recorded sales of KRW 2.8382 trillion (US$ 2.05 billion) and an operating loss of KRW 170.5 billion (US$ 123.0 million). Considering that this figure excludes profits and losses from the specialty gas business, the challenges in the chemical business segment are even more severe. Its credit rating has also continued to decline. Hyosung Chemical’s rating fell from “A·Positive” in 2022 to “A-·Negative” in 2023 and was further downgraded to BBB+. In November 2024, Korea Ratings assessed Hyosung Chemical’s credit rating as “BBB+ (Negative)” and stated, “The company is under increasing liquidity pressure due to the shortening of its debt maturity structure. With no clear short-term rebound expected in the chemical sector, it will be difficult to restore profitability.” Such a credit downgrade could increase financing costs and further strain its financial structure. Kim Seo-yeon, a senior analyst at NICE Credit Rating, said, “Given the unfavorable market conditions in the chemical sector, Hyosung Chemical’s profit recovery will likely be limited. Continued operating losses are expected, which will further weaken its already unstable financial structure.” The most critical issue facing Hyosung Chemical is its soaring debt ratio. The company’s debt ratio was 353.8% at the end of 2019, rising to 2,631.8% by the end of 2022, 4,934.6% at the end of 2023, and an astonishing 9,779.3% by the end of Q3 2024. Its short-term borrowings due within a year exceed KRW 2 trillion (US$ 1.44 billion). This has been a major factor in worsening the company’s liquidity crisis. As of the end of 2024, based on consolidated financial statements, Hyosung Chemical fell into a state of capital impairment, and this led to its stock being suspended from trading starting in March this year. ◆ Vietnam Project Becomes a ‘Problem Child’ The primary factor blamed for worsening Hyosung Chemical’s financial woes is the underperformance of its Vietnamese subsidiary, Hyosung Vina Chemical. Through Hyosung Chemical, Chairman Cho invested about KRW 2 trillion (US$ 1.44 billion) starting in 2018 to build a polypropylene (PP) plant in Vietnam as a future growth engine. Cho had repeatedly expressed his intent to make Vietnam Hyosung’s global strategic base. During his second visit to Vietnam in February 2018, following his first in November 2016, he met with then-Prime Minister Nguyen Xuan Phuc and stated, “Vietnam is Hyosung’s forward base for global market expansion,” adding, “We will expand not only in spandex and tire cords but also in the chemical and heavy industries.” However, due to a slowdown in the PP market and uncertainties in local operations, Hyosung Vina Chemical fell into chronic deficits, which undermined the overall financial health of Hyosung Chemical. Additionally, the Chinese government’s aggressive expansion of domestic polypropylene production to enhance self-sufficiency has raised concerns of PP oversupply. Given that PP is Hyosung Vina Chemical’s core product, the increase in China’s PP self-sufficiency could further erode Hyosung Chemical’s profitability. The underperformance of Hyosung Vina Chemical has translated into a heavier debt burden for Hyosung Chemical. As of February 25, 2025, the total amount of debt guarantees held by Hyosung Chemical exceeded KRW 2 trillion (US$ 1.44 billion). ◆ Chairman Cho Hyun-joon’s High-Stakes Moves to Overcome Crisis To overcome the crisis, Chairman Cho Hyun-joon has been implementing bold measures. The most notable of these is the sale of the specialty gas business unit. Chairman Cho sold Hyosung Chemical’s specialty gas business, which produces nitrogen trifluoride (NF3) used in semiconductor and display manufacturing processes, to Hyosung TNC for KRW 920 billion (US$ 663 million). Although the specialty gas division was considered a “cash cow,” it was seen as weighing down Hyosung Chemical’s financial health due to its high capital investment requirements and low profitability. The proceeds from the sale are expected to be used for loan repayments and operational funding, and Chairman Cho hopes this will reduce the company’s debt ratio and ease its financial burdens. Hyosung Chemical CEO Lee Geon-jong declared in January 2025, “We aim to reduce the debt ratio to the 100% range within the first half of this year,” showing strong determination to improve the financial structure. In addition, in February this year, Hyosung Chemical signed an agreement to sell its Onsan tank terminal business unit to the holding company Hyosung for KRW 150 billion (US$ 108.2 million), securing further liquidity. Chairman Cho is also considering selling the optical film and film business units of Hyosung Chemical to bolster liquidity through asset sales. However, some in the business community have criticized Hyosung Chemical’s continued asset sales as akin to “pouring water into a bottomless pit.” While such measures may secure short-term liquidity, there is skepticism about whether they can fundamentally improve operations without a recovery in the petrochemical market. Particularly concerning is the outlook for PP, Hyosung Chemical’s main product, which remains uncertain due to oversupply in China. This raises doubts about whether the crisis can be overcome through asset sales alone. One encouraging development is that on March 12, 2025, Hyosung Chemical submitted a special audit report confirming that it had resolved its capital impairment status. This allowed the company to become subject to a listing review for resumption of stock trading. For Chairman Cho Hyun-joon, resolving the financial crisis facing Hyosung Chemical is crucial to ensuring the long-term sustainability of Hyosung Group, and his leadership abilities are now under close scrutiny. #ChoHyunjoon #HyosungChemical #HyosungGroup #financialcrisis #debtnetwork #PPmarket #Vietnamproject #specialtygas #assetdivestiture #HyosungVinaChemical
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- Korea Investment & Securities' Asset Management Soars, Kim Sung-hwan Shows Confidence in Global Expansion
- Kim Sung-hwan, CEO of Korea Investment & Securities, is rapidly expanding the company’s Asset Management (AM) division. Kim envisions elevating Korea Investment & Securities to stand shoulder to shoulder with the world’s leading investment banks (IBs). The AM division is considered a core business that lays the foundation for making this vision a reality. According to Korea Investment & Securities on April 17, the AM division’s assets are expected to reach KRW 90 trillion (US$ 64.9 billion) by the end of the year and surpass KRW 100 trillion (US$ 72.1 billion) next year. AM refers to a business that manages individual customers’ assets by recommending and selling a variety of financial products, including funds, bonds, derivatives, and alternative investments. Currently, Korea Investment & Securities’ AM division manages approximately KRW 75 trillion (US$ 54.1 billion) in assets. That’s an increase of nearly 10% from KRW 67.7 trillion (US$ 48.8 billion) at the end of last year in less than four months. The company added about KRW 14 trillion (US$ 10.1 billion) in assets over the entire previous year—up 27%—but the growth has accelerated further in 2024. The AM division is believed to have truly begun its growth trajectory after Kim took charge of the Personal Customer Group in 2019. At that time, the AM division’s assets were in the KRW 20 trillion (US$ 14.4 billion) range. By the end of 2023, when Kim was named CEO and left the Personal Customer Group, assets had grown to the KRW 50 trillion (US$ 36.1 billion) range. While leading the Personal Customer Group, Kim restructured key performance indicators (KPIs) to emphasize asset expansion in the AM division. He replaced individual-centered sales with a team-based structure inspired by the IB division. By actively sourcing and selling high-return, stable products from overseas financial firms, the AM division’s competitiveness was significantly enhanced. The planned launch of the Integrated Management Account (IMA) business could also further boost AM division assets. An IMA is a product in which securities firms invest customers’ deposits into corporate finance projects and return the profits. The market expects Korea Investment & Securities to become Korea’s first IMA securities firm. Kim recently told *Business Post*, “AM division assets are currently increasing by KRW 1.5 trillion (US$ 1.08 billion) per month. At this pace, we expect to exceed KRW 100 trillion (US$ 72.1 billion) next year and possibly KRW 200 trillion (US$ 144.2 billion) by 2029.” The importance of the AM division lies in its ability to serve as a strong foundation for Korea Investment & Securities’ leap to becoming a top-tier global securities firm. The AM division earns an average annual fee income of 0.5%. That means if the division manages KRW 100 trillion (US$ 72.1 billion), it generates KRW 500 billion (US$ 360.5 million) a year. If it manages KRW 200 trillion (US$ 1.44 billion), that figure doubles to KRW 1 trillion (US$ 721 million). Given that Korea Investment & Securities’ general administrative expenses are about KRW 1 trillion (US$ 721 million) per year, AM division fee income alone could cover all operational costs if assets grow to KRW 200 trillion (US$ 144.2 billion). In such a case, the profits from other divisions like brokerage, IB, and sales & trading would fully translate into net income, potentially lifting the company’s overall profit level. Moreover, AM assets tend to remain stable once acquired. Even modest asset management can yield compound interest, creating a snowball effect over time. Kim stated, “The stage floor must be solid for the actors to perform freely on top of it. The AM division will be the firm stage on which Korea Investment & Securities can aggressively grow its other businesses. If this continues, Korea Financial Group may one day, like bank holding companies, achieve annual net profits of KRW 4–5 trillion (US$ 2.88–3.6 billion).” Kim’s ultimate goal through these efforts is to strengthen global competitiveness. He noted, “Korea’s stock and bond markets account for just over 1% of the global market, meaning more than 98% of opportunities lie outside of Korea. Korea has already entered a super-aged society, and in this era of low growth, we must enhance the capital market’s global competitiveness so that the capital account can help defend the current account.” Kim plans to increase Korea Investment & Securities’ share of global revenue from the current 15% to 30% by 2030. To strengthen global competitiveness, Kim emphasizes ‘differentiation’ to his employees. He believes securing a unique edge over competitors is essential not only for survival but also for success in a competitive environment. In this year’s New Year’s message, Kim highlighted four key areas of differentiation: △business model differentiation △risk management and internal control differentiation △customer management differentiation △sales support differentiation—stressing the importance of change and innovation. Kim stated in the New Year’s message, “Differentiation refers to the unique characteristics or traits that distinguish us from others,” adding, “In order to secure our own differentiators that cannot be easily imitated by competitors, we must pursue creative change and innovation beyond simply improving existing business models.” #KimSunghwan #KoreaInvestmentSecurities #assetmanagement #AMdivision #financialinnovation #IMA #globalstrategy #capitalmarkets #differentiationstrategy #Koreanfinance
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- Bank of Korea’s Rhee Holds Rates, Shifts Focus to Extra Budget — Will Fiscal Policy Gain Steam?
- “It is now time for redefinition.” Despite concerns over economic growth slipping below 1%, the Bank of Korea has put the brakes on cutting interest rates. Contrary to market expectations, it is increasingly likely that the Monetary Policy Board will continue to hold rates steady in its next meeting. Analysts say the Bank of Korea is unlikely to move hastily, given factors such as the exchange rate, household debt, and the U.S.’s hawkish monetary policy stance. As monetary policy enters a pause phase, the role of fiscal policy in boosting the economy is becoming more critical. On April 17, the Bank of Korea’s Monetary Policy Board held a monetary policy meeting at its main building in Jung-gu, Seoul, and decided to keep the base interest rate at 2.75% per annum. This came even after Governor Rhee Chang-yong stated on April 16 that “the current base rate is in a rate-cutting cycle,” indicating a halt in the rate cuts following the Board’s decision. This suggests that concerns over potential side effects of rate cuts stemming from internal and external variables remain significant. During a press briefing after the meeting, Governor Rhee stated, “It is difficult to predict even three months ahead, so it is prudent to wait and see while adjusting the pace to navigate uncertainties,” adding, “Rather than accelerating recklessly in a dark tunnel, it is necessary to cautiously observe the situation before moving forward.” He emphasized that a rate cut, coupled with rising household debt, could pose a threat to financial stability. From an economic stimulus perspective, the need for a rate cut is clear, but the possible impacts on the real estate market and other long-standing issues in the Korean economy—combined with market volatility caused by the Trump administration’s tariff policy and exchange rate swings—create a minefield of risks. The U.S. Federal Reserve’s hawkish stance is another factor preventing a rate cut. Fed Chair Jerome Powell, attending the Chicago Economic Club in Illinois the previous day, said, “The Trump administration’s tariff policy could cause temporary inflation,” adding, “It’s best to wait for greater clarity before considering any adjustments to our interest rate policy.” This reaffirmed the Fed’s position to delay decisions such as rate cuts and continue monitoring economic conditions. For the Bank of Korea, further cuts could widen the interest rate gap with the U.S., increasing the burden of rate differential management. Given this context, the government's fiscal policy is expected to play an even more crucial role in stimulating the economy. Especially in the context of an early presidential election, if the economic slowdown worsens, pressure will grow over the scale and timing of an additional supplementary budget (extra budget). Governor Rhee noted that since the government had already expressed its intent to play a fiscal role, he would refrain from further commenting on extra budgets. Recently, the government raised its supplementary budget proposal by KRW 2 trillion (US$ 1.44 billion) to a total of KRW 12 trillion (US$ 8.65 billion), pushing for quick passage in the National Assembly. However, political circles and market observers believe that this “essential supplementary budget” will have limited stimulus effect. This has already led to rising expectations and speculation over expansionary fiscal policies from the next administration. Governor Rhee has consistently stressed the importance of fiscal and monetary policy coordination to defend against declining economic growth, particularly at the Monetary Policy Board meetings in January and February. After announcing the decision to hold the base rate in January, he said in a briefing, “Growth is now falling below potential growth, and the GDP gap is widening due to political and other reasons, so I believe an extra budget is necessary alongside monetary policy.” In February, he reiterated, “It is not ideal to address all economic challenges with interest rates alone,” adding, “If Korea is to achieve more than 1.5% growth this year, fiscal policy support is essential.” He explained that cutting rates further without fiscal support could threaten financial stability by affecting exchange rates, inflation, and household debt. Major institutions both in Korea and abroad continue to lower their forecasts for Korea’s economic growth this year. The Bank of Korea itself predicted on this day that the 2025 growth rate would fall short of its February projection of 1.5%. Goldman Sachs lowered its 2024 forecast for Korea from 1.8% to 1.0%, while Citibank and JP Morgan revised theirs to 0.8% and 0.7%, respectively. Domestic financial institutions, including Woori Bank, also believe that Korea’s growth rate may not even reach the 1% range this year. Park Hyung-jung, a researcher at Woori Bank, told Business Post, “Unless significant policy tools like a supplementary budget or a rate cut are secured to stimulate domestic demand, the growth rate is likely to fall to the 0.7–0.8% range,” adding, “The Bank of Korea is expected to maintain a wait-and-see stance, monitoring the effect of the supplementary budget.” Park also predicted that the Bank of Korea would maintain its rate-holding stance in the May meeting. He added that the next rate cut is most likely to occur after the early presidential election. Joo Won, head of economic research at Hyundai Research Institute, said, “When monetary policy tools can’t be used, fiscal policy must step in,” adding, “Considering the high likelihood that the Fed will hold rates again at its May 7 FOMC meeting, it will be difficult for the Bank of Korea to pursue another rate cut.” #BankofKorea #RheeChangyong #interestrates #fiscalpolicy #economicgrowth #monetarypolicy #ratehold #householddebt #KoreanEconomy #supplementarybudget
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- Shinhan Card Files 'iPay' Trademark, Signaling Deeper Payment Partnership with Apple
- Shinhan Financial Group has filed a trademark application for “Shinhan Card iPay,” it has been confirmed. Shinhan Card recently discontinued its Apple-exclusive installment service “Applus.” Industry analysts speculate that the company may be upgrading its partnership with Apple through a new payment service. According to the Korea Intellectual Property Rights Information Service (KIPRIS) of the Korean Intellectual Property Office on April 17, Shinhan Financial Group filed for the trademark “Shinhan Card iPay” at the end of last month. The application covers product classifications 09, 16, and 36. These include items such as credit cards embedded with IC chips, computer software for financial transactions, non-magnetic credit cards capable of making phone calls, and services related to the issuance of credit and debit cards. A Shinhan Card official stated, “We applied for the trademark to secure a candidate name for a payment service,” and added, “It is uncertain whether the name will be used in practice.” The card industry speculates that Shinhan Card may be seeking a payment service partnership with Apple. The name “iPay” evokes Apple’s branding style, such as “iPhone,” “iPad,” and “iCloud.” Given that Shinhan Card explicitly stated the purpose of the iPay trademark filing was to secure a name for a payment service, the industry is paying attention to a possible link with Apple Pay. Rumors have recently circulated in the card industry that Shinhan Card is preparing to introduce Apple Pay. Previously, a screen showing Apple Pay service in Shinhan Card’s main application “Shinhan SOL Pay” was leaked online. The timing of the iPay trademark filing and the end of the “Applus” service has led to speculation that the partnership between Shinhan Card and Apple may have reached a turning point. On April 1, Shinhan Card ended its “Applus Exclusive Program” services “iPhone for Life” and “Mac for Life.” This was shortly after Shinhan Financial Group filed the “Shinhan Card iPay” trademark. The Applus service was first introduced in October 2023 and was terminated after about one year and six months. Applus was a value-guarantee program for iPhone and Mac products, offered to customers of Apple’s authorized partners. It allowed customers to purchase iPhones or Macs using fixed interest rate deferred billing and installment payment services. Shinhan Card left open the possibility of launching a new collaboration service with Apple when announcing the termination of Applus. The company explained that the existing services were discontinued to restructure its service and menu offerings. #ShinhanCard #iPay #ApplePay #ShinhanFinancialGroup #Applus #trademarkapplication #digitalpayments #fintechpartnership #iPhoneforLife #MacforLife
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- DL E&C Nears Hannam District 5 Contract in a Year, Park Sang-shin Focuses on Cost Efficiency in Housing Business
- DL E&C is on the verge of securing the construction rights for the Hannam District 5 redevelopment project, nearly one year after the first round of bidding began. CEO Park Sang-shin of DL E&C has identified urban redevelopment as a key focus of the company’s housing business this year, and it is expected that winning this project, with a total construction cost exceeding KRW 1.7 trillion (US$ 1.23 billion), will significantly boost the company's new orders for the year. Accordingly, Park is also expected to put further effort into improving housing project cost ratios, which he emphasized alongside urban redevelopment. According to the construction industry on April 16, DL E&C is now set to establish an “ACRO” complex in Hannam New Town, overcoming the setback of losing the Hannam District 3 redevelopment bid in the past. DL E&C was the sole participant in the recent bid for the Hannam District 5 redevelopment project, securing its position as the preferred negotiating partner for the private contract. Final selection of the construction company is scheduled for the general meeting on May 31. This result is seen as the outcome of focused efforts following the loss of the Hannam District 3 project in 2020, with DL E&C strategically targeting Hannam District 5 in the same Hannam New Town. The Hannam District 5 redevelopment project (Hannam District 5 Urban Redevelopment Promotion Zone Residential Redevelopment Project) involves the construction of 51 apartment buildings and auxiliary facilities, commercial and office spaces (including one officetel building), ranging from six basement floors to 23 above ground, at 60 Dongbinggo-dong, Yongsan-gu, Seoul. The total planned construction cost is KRW 1.7584 trillion (US$ 1.27 billion). The bidding process for the project began in May 2023 and is now reaching its final stage. DL E&C was the only construction company to participate in both rounds of bidding last year. Although DL E&C’s chances of winning were considered high, variables emerged due to the election of a new union chairman, who requested that the 11 construction companies that attended the two briefing sessions last year be invited to participate in the current bid. These 11 companies include major housing-focused builders ranked within the top 10 in the Ministry of Land, Infrastructure and Transport’s construction capability assessment, such as Samsung C&T and Hyundai E&C. However, considering that Samsung C&T, Hyundai E&C, and Daewoo E&C—the top three builders—already hold construction rights in other parts of Hannam New Town, and that most other companies are focused on major redevelopment projects elsewhere in Seoul, DL E&C's solo participation appears to have been the result of sustained effort. The urban redevelopment sector expects DL E&C to secure the contract, as the selection of a construction company for Hannam District 5 has been delayed and the union is targeting a construction start date in 2027. CEO Park Sang-shin is being recognized for steadily fulfilling his goal of leading the housing business through the Hannam District 5 project and public redevelopment projects exceeding KRW 1.7 trillion (US$ 1.23 billion). At the DL E&C annual shareholders' meeting in March 2024, Park went beyond declaring a goal of overcoming an uncertain business environment and presented concrete plans by business area. Park emphasized that the company would focus on urban redevelopment and public housing projects in the housing sector while improving cost efficiency. In his shareholder address, Park said, “We will promote the housing business with a focus on urban redevelopment and public projects, and expand profits through risk management and cost improvements.” DL E&C’s urban redevelopment performance this year is already on track to surpass its full-year achievements of the past two years in just the first half. In February 2024, DL E&C achieved its first housing order of the year by winning the KRW 399.3 billion (US$ 288.1 million) public redevelopment project in Yeonhui District 2, Seodaemun-gu, Seoul. After submitting a solo bid for the Hannam District 5 project, the company also formed a consortium with Hyundai E&C to exclusively participate in the KRW 800 billion (US$ 577 million) public redevelopment project in Jangwi District 9, Seongbuk-gu, Seoul, scheduled for a general meeting on April 26. Considering that the Jangwi District 9 project could add over KRW 400 billion (US$ 288.5 million) to its order book, DL E&C is poised to record at least KRW 2.56 trillion (US$ 1.85 billion) in new urban redevelopment orders in the first half of the year alone. After setting a new annual record of KRW 4.8943 trillion (US$ 3.53 billion) in urban redevelopment orders in 2022, DL E&C's new order volume declined to KRW 2.3274 trillion (US$ 1.68 billion) in 2023 and KRW 1.1809 trillion (US$ 851.4 million) last year. That two of this year’s projects are public redevelopment efforts aligns with Park’s strategy to prioritize public-sector business within housing. Public redevelopment projects are selected by the Ministry of Land and Seoul Metropolitan Government to revitalize redevelopment areas that have been stagnant for over 10 years. From the perspective of housing supply, these projects help normalize stalled developments and ease regulations, thereby increasing urban supply. For construction companies, they offer stability and high profitability as public entities lead the projects with government support. The Jangwi District 9 public redevelopment project is being developed by Korea Land and Housing Corporation (LH), while the Yeonhui District 2 project is led by Seoul Housing & Communities Corporation (SH). Given DL E&C’s success in urban redevelopment, Park’s next key task in the housing sector is cost improvement. DL E&C has set an aggressive goal for 2024: consolidated operating profit of KRW 520 billion (US$ 374.9 million), with standalone operating profit—excluding subsidiary DL Construction and including overseas subsidiaries—targeted at KRW 420 billion (US$ 302.9 million). Considering that the standalone housing business accounts for 50% of revenue, improving housing cost ratios is a critical factor in achieving the company’s overall profit targets. DL E&C has been gradually improving cost ratios in its housing business. The standalone housing cost ratio had surged to 93.0% in Q1 and Q2 of 2023 but fell to 85.9% in Q4. While the Q4 drop included some one-time gains such as brand-related fees, even excluding these, the cost ratio fell to 89.3%, which is seen as a positive sign. In Q1 of this year, cost ratios are estimated to have risen back to the 92% range due to final settlements at high-cost sites. However, DL E&C expects housing cost ratios to fall to around 85% starting in Q2 as the share of high-cost sites declines. By year-end, projections suggest the housing cost ratio could fall below 85%. According to forecasts from the securities industry, DL E&C's standalone housing cost ratio is expected to be around 88% in Q2, 86% in Q3, and 84% in Q4. Park stated, “We will focus only on projects with sufficient profitability,” and added, “We will further strengthen DL E&C’s competitiveness in key indicators such as quality, safety, and cost.” #DLEnC #ParkSangShin #urbanredevelopment #HannamDistrict5 #publicredevelopment #housingstrategy #constructionindustry #costimprovement #housingorders #ACRObrand #Jangwi9 #Yeonhui2 #Seoulrealestate #Koreanconstruction #housingprofitability
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- Lee Jae-myung’s ‘KRW 100 Trillion AI Investment’ Pledge and ‘Digital Democracy’
- As Lee Jae-myung, former leader of the Democratic Party of Korea, declared his candidacy for the upcoming presidential election scheduled for June 3, he announced his first pledge—the Korean-style ChatGPT “AI for All” strategy—and stated, “We will invest KRW 100 trillion (US$ 72.1 billion) from the national budget in the artificial intelligence (AI) industry to open a basic AI society.” In response, civic groups advocating for information rights have expressed concern. If Lee is elected president, there are worries that the government, under the justification of fulfilling campaign promises, may rush related policies to promote AI popularization and ecosystem development, involving private companies in the process without addressing the negative aspects of AI, and that existing safeguards may even be weakened. Lee is currently leading in various presidential election polls. Coincidentally, U.S. President Donald Trump is also calling for the removal or easing of protections for informational human rights and regulations on platforms, which he considers non-tariff trade barriers. Civic groups point out that Korea is currently at a critical point where it must establish a new form of democracy, and above all, consider the values and structure of digital democracy. In a digital democracy, data subjects must not be subordinated to the data collection and usage by government agencies or corporations. For this, AI governance must be established to proactively protect the rights and interests of data subjects. On May 14, 2023, Lee visited AI startup Furiosa AI and held a policy roundtable with CEO Baek Joon-ho and other industry stakeholders. He said, “AI is a game changer that will reshape the global economy of our time,” and added, “The government will act as a priming pump for private investment and increase AI-related budgets to levels that surpass those of advanced countries.” He stated, “We will ensure that all citizens can freely use AI technology on par with that of advanced nations,” and added, “If everyone uses the Korean-style ChatGPT, an immense amount of data will be accumulated instantly. This will lead to productivity innovation and the creation of new industries through integration with other sectors, thereby enhancing national competitiveness.” Lee’s identification of AI as a future growth engine and a new source of economic power is being praised as both proactive and timely. Companies are cheering, saying, “He nailed it,” and are even urging the release of more detailed plans. An executive from one of the top four conglomerates, speaking anonymously, said, “Lee worked closely with companies during his time as mayor of Seongnam and governor of Gyeonggi Province to resolve challenging issues such as urban redevelopment and the water quality improvement of Siwha Lake, which had troubled his predecessors. This time, he has introduced an AI project as a driver of industrial growth and national competitiveness.” Startups are also welcoming the move with open arms. This is why Lee chose to visit an AI startup to make the announcement. After all, no one—whether big conglomerates or startups—would oppose a proposal that involves funding. Given that the U.S. and Chinese governments have committed approximately KRW 20 trillion (US$ 14.4 billion) and KRW 60 trillion (US$ 43.2 billion), respectively, for building AI ecosystems, Lee’s KRW 100 trillion (US$ 72.1 billion) investment pledge is seen as exceptionally bold. According to former officials from the Ministry of Science and ICT and industry insiders, if the investment is not confined strictly to the “national budget” and includes the qualifier “during the presidential term,” a KRW 100 trillion (US$ 72.1 billion) investment may not be so difficult. When accounting for corporate AI project budgets, state research institute funding for AI-related technology development, and government budgets for upgrading administrative services with AI, a substantial amount of AI-related funding already exists. They also stated that if the government provides a clear signal by acting as a priming pump, creating a market, and removing related regulations, the KRW 100 trillion (US$ 72.1 billion) investment could materialize quickly. Already, major traditional manufacturing conglomerates, telecom companies, portal operators, and startups are tagging “AI” on nearly every new project plan. One telecom company even added the phrase “AI investment funding” to a building lease proposal. An executive at a large corporation remarked, “There’s even a joke inside the company about putting an AI nameplate on the front stone sign of our headquarters.” However, those considering the foundation of a new democracy—more specifically, digital democracy—are expressing concern. They worry that AI popularization may be recklessly pushed forward without procedures in place to address its inevitable side effects. Indeed, while pledging a KRW 100 trillion (US$ 72.1 billion) investment in AI, Lee also expressed his intention to pursue regulatory reforms and legislation to build the AI industry ecosystem. “Reform” in this context means resolving regulatory complaints that companies have viewed as obstacles to investment, but civic groups fear it could result in the dismantling of safeguards for information rights. Information rights civic groups are particularly focused on Lee’s remarks that “if all citizens use the Korean-style ChatGPT, a vast amount of data will be accumulated instantly” and that he will “pursue regulatory reforms and related legislation.” They point out that much of the data collected during citizens’ use of AI contains personal and private information. Many people have already experienced the unauthorized collection and misuse of personal data while using social media and online shopping platforms. As such, there are growing calls for stronger regulations on the collection and use of private data through AI. They argue that when collecting and using personal information, private data, or biometric information such as voices and fingerprints, clear consent procedures must be followed. If misuse is discovered, harsh penalties such as punitive fines and criminal prosecution should be applied to ensure accountability. On the other hand, business entities—including corporations and government agencies—oppose such regulatory reinforcement, saying it could hinder the AI ecosystem and industrial growth. There is also concern that, in the process of fulfilling campaign promises, the government may adopt a pro-business stance, removing regulatory obstacles at the request of corporations while neglecting or even damaging existing safety measures. This is because many regulations essential for protecting citizens’ information rights are seen by businesses as obstacles to execution. In reality, some business entities may not be as interested in the KRW 100 trillion (US$ 72.1 billion) investment itself as they are in the deregulation that could come with policy implementation. There is precedent for this. In the late 1990s, national informatization was pushed as a presidential campaign pledge, and the government promoted the slogan, “We may be late in industrialization, but let’s lead in informatization.” The presidential office even directly managed the informatization status of various ministries. As a result, nearly all government agencies rushed to install computers and networks without proper long- or short-term planning. This led to massive profits for Microsoft and PC manufacturers, who supplied operating systems and office software. After that, Microsoft became a “super supplier,” while the Korean government and companies were relegated to subordinate roles. Every time a new version of Windows was released, agencies had to spend budget to upgrade, and whenever Microsoft announced a timeline for ending Windows security support, senior Korean officials had to visit Microsoft’s headquarters in Seattle to plead for an extension. There are also concerns about the idea of a “Korean-style ChatGPT.” There is a fear that a government-led Korean ChatGPT may end up like the “Korean OS (K-DOS)” or “Korean PC (TICOM),” which disappeared without making it to market. An executive at a major IT company said, “There is no precedent of success for a government-led service or product labeled ‘Korean-style.’ In fact, such initiatives tend to hinder free technological and service competition among businesses and can even impede ecosystem development.” Jang Yeo-kyung, Director of the Institute for Digital Rights, said, “There is no reason to oppose the government building infrastructure for the public good and returning the benefits to society to enhance citizens’ convenience and rights.” However, she added, “Since AI learns from data, and group datasets inevitably contain personal information, it is essential that Lee’s growth-driving AI pledge be detailed in a way that avoids data exploitation and information rights violations. A digital democracy must be carefully designed, and voters must keep a close watch.” #LeeJaeMyung #AIinvestment #KoreanChatGPT #digitaldemocracy #informationrights #AIregulation #2025election #AIecosystem #FuriosaAI #AIgovernance #dataprotection #AIdrivenfuture #techpolicy #publicAIstrategy #Koreanpolitics
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- LX Group’s 'No.1 DNA' and Chip Dream Still Distant, Koo Bon-joon Bets on Samsung Man
- "Let us not fear change as we strive to move beyond the domestic market to the global stage, and let us embed the DNA of being number one throughout the entire LX organization." This is what Koo Bon-joon, Chairman of LX Group, said in 2021 when the group was spun off from LG Group. LX Group, now in its fifth year since launch, is rapidly growing under LX Holdings, with five major subsidiaries: LX International, LX Hausys, LX Semicon, LX MMA, and others. At the time of the group's launch, there were high expectations that Chairman Koo's vision of instilling a "number one DNA" across the group would be realized through LX Semicon, the group's only semiconductor affiliate—reflecting his deep passion for semiconductors. Indeed, LX Semicon seemed to meet these expectations when it became the first domestic fabless company to surpass KRW 2 trillion (US$ 1.44 billion) in annual sales in 2022. However, LX Semicon's growth has recently shown signs of slowing. The company has been hit hard by the downturn in the semiconductor industry, leading to declining profitability. At the same time, intensified competition in the display driver IC (DDI) market—its core business—and the diversification of supply chains by key clients have compounded the challenges. ◆ LX Semicon Leading LX Group's Semiconductor Business—Is DDI the Only Path? LX Semicon is a fabless semiconductor design company specializing in display driver ICs (DDIs), which supply appropriate voltage to each pixel of a display to control color and brightness. As of the end of 2024, DDIs account for approximately 90% of the company’s total sales, indicating a very high dependency. Its major customers include leading panel makers like LG Display and China’s BOE, making LX Semicon’s performance highly dependent on these clients’ panel shipment volumes. The problem is that the DDI market's growth outlook is not optimistic. According to market research firm Omdia, the global DDI market is expected to shrink from US$ 9.5 billion in 2023 to US$ 7.5 billion by 2030. This is due to aggressive low-cost competition from Chinese companies in the OLED and LCD DDI sectors, as well as a general decline in DDI prices. Moreover, LX Semicon’s position has been further weakened as its key client, LG Display, has diversified its OLED DDI supply chain for iPhones by adding Taiwan’s Novatek. Novatek, the world’s second-largest DDI supplier, began supplying DDIs to LG Display in 2024 and has become a direct competitor to LX Semicon. Using price as leverage, Novatek has taken over some of LX Semicon's supply share. It is estimated that LX Semicon’s internal market share at LG Display now stands at around 45%. ◆ Can Lee Yoon-tae Lead a Rebound by Driving New Businesses? To overcome this crisis, LX Semicon is accelerating the development of new businesses, including automotive infotainment display semiconductors, next-generation power semiconductors, and heat-dissipating substrates for electric vehicles. This reflects efforts to realize Chairman Koo’s “number one DNA” through new growth avenues. Koo’s will to take the company in a new direction was evident in the 2023 year-end personnel reshuffle, where he replaced longtime colleague Sohn Bo-ik with Lee Yoon-tae, a former "Samsung man." Lee is a traditional Samsung executive who served in the System LSI division at Samsung Electronics and the LCD division at Samsung Display. As CEO of Samsung Electro-Mechanics, he led the automotive electronics business, successfully restructuring the company. Although Koo had previously filled key positions within LX Group with executives from LG Group, the appointment of an external figure like Lee was an unusual move signaling significant change. LX Semicon is now pushing heat-dissipating substrates—substrates with high thermal conductivity used to dissipate heat from power devices. These are expected to grow rapidly alongside the expansion of the electric vehicle and eco-friendly energy markets. In 2021, LX Semicon entered the automotive thermal substrate market by acquiring shares in Japanese thermal material firm FJ Materials. Although originally a fabless company with no manufacturing base, LX Semicon completed a heat-dissipating substrate production plant in Siheung, Gyeonggi Province, in 2022, expanding into new business areas. The company is also eyeing the automotive power semiconductor sector. LX Semicon plans to develop power semiconductor design technologies and expand into various sectors such as home appliances, smart devices, and renewable energy. In this way, LX Semicon is making various efforts to reduce its reliance on DDIs and diversify its business portfolio. Given Chairman Koo’s statement at the LX Holdings annual shareholders' meeting in March 2025 about accelerating change, LX Semicon’s transformation is likely to draw attention. Koo said, “The year 2025 will be marked by various risks, including domestic political uncertainty and the spread of global protectionism. There is also a high possibility of rapid changes in interest rates and exchange rates. LX will enhance its crisis response system to quickly adapt to changes in the business environment and turn crises into opportunities.” ◆ Koo Bon-joon's Dream for Semiconductors Chairman Koo Bon-joon’s ambition for the semiconductor industry runs deep. He has gained extensive experience in semiconductor-related fields while serving as an executive and CEO at major LG Group affiliates, including LG Electronics, LG Chem, LG Semicon, and LG Display. His passion for semiconductors became particularly prominent in the late 1990s. In December 1998, as President of LG Semicon, Koo strongly criticized a report by the U.S. consulting firm ADL, which supported the government-led merger of Hyundai and LG’s semiconductor divisions under Hyundai’s control. At the time, the presidential office was pushing for large-scale industry mergers to overcome the Asian financial crisis. ADL’s report concluded that Hyundai Electronics was better suited than LG to lead the semiconductor business. Koo stated, “ADL used distorted data and arbitrary interpretations, causing material and psychological damage to LG Semicon. We believe the evaluation lacks fairness and plan to sue in U.S. court.” Ultimately, in May 1999, Hyundai Electronics acquired 59% of LG Semicon for approximately KRW 2.59 trillion (US$ 1.87 billion), and Koo’s dream of making semiconductors a core growth engine for LG Group was shattered. However, Koo has sought to revive that dream through LX Semicon following the spin-off from LG Group in 2021. His deep affection for semiconductors was evident in his decision to maintain an office not only at LX Group headquarters but also within LX Semicon. Whether Koo Bon-joon’s long-held semiconductor dream will be realized through LX Semicon’s rebound remains to be seen. #KooBonJoon #LXGroup #LXSemicon #semiconductor #DDI #heatdissipatingsubstrate #powersemiconductor #fabless #LGElectronics #LGSemicon #businessstrategy #innovation #Koreanindustry #techleadership #Koreansemiconductor #diversification #FJMaterials #Novatek #BOE #LGDisplay
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- LG Electronics Invests KRW 1 Trillion in Global Appliances: New India Plant, U.S. Expansion
- Cho Joo-wan, CEO and President of LG Electronics, is launching an aggressive overseas facility investment plan worth approximately KRW 1 trillion (USD 720 million) to respond to rapidly changing global uncertainties and secure leadership in the future home appliance market. LG Electronics has announced plans to invest KRW 820 billion (USD 591 million) in India to build a new home appliance factory, and it will also expand its warehouse facilities near its existing plant in Tennessee, USA, with a KRW 140 billion (USD 101 million) investment. In particular, LG Group Chairman Koo Kwang-mo is expected to actively pursue business expansion in India—identified as a key future market—by raising KRW 2.2 trillion (USD 1.58 billion) through an initial public offering (IPO) as early as May. According to local Indian economic media Sakshi Post on April 14 (local time), LG Electronics has decided to invest INR 50 billion (approximately KRW 820 billion or USD 591 million) to construct its third home appliance factory in the southeastern Indian state of Andhra Pradesh. The Andhra Pradesh state government has approved the investment. The groundbreaking ceremony is scheduled for May 8, and the plant will occupy approximately 300,000 square meters. The new plant will produce eight major LG home appliances, including refrigerators, air conditioners, washing machines, and TVs. It is expected to focus on manufacturing premium products to meet the growing demand in India’s domestic market. LG Electronics already has home appliance factories in Noida and Pune, established in 1997 and 2006, respectively. However, these two facilities are reportedly insufficient to meet the growing demand in India. Chairman Koo Kwang-mo, in light of rising tensions between the United States and China, has identified India as a future strategic market and is pushing for aggressive investment to gain an early advantage. During his visit to India at the end of February, Koo stated, “The next few years will be critical in determining whether we can outpace competitors through differentiation in the Indian market. This is the golden time to secure a sustainable number one position.” Cho Joo-wan, CEO of LG Electronics, also expressed his ambition for LG to become a “national brand” in India. At a shareholders’ meeting held on March 25, Cho stated, “When a country’s GDP per capita reaches USD 3,000 to 4,000, there is a 10–20% surge in home appliance penetration. India is expected to reach USD 3,000 in per capita GDP by 2026. We will not settle for being No.1 in India’s home appliance market—we aim to become the national brand.” India has the world’s largest population, with approximately 1.45 billion people, and ranks fifth globally in terms of GDP. With 600 million people under the age of 25, it is a young country expected to see a growing base of core consumers over the next 20 years. LG Electronics is also preparing for an IPO in India, aiming to raise USD 1.5 billion (approximately KRW 2.2 trillion). According to Bloomberg, the Securities and Exchange Board of India (SEBI) has approved LG Electronics’ preliminary IPO application, and the listing is expected as early as May. While some of the funds raised through the Indian stock market listing will be used to reduce domestic debt, most are expected to be reinvested in LG’s Indian business expansion. India is considered a stable domestic demand market amid escalating tensions between the U.S. and China. An official from the domestic home appliance industry stated, “The Trump administration imposed tariffs on LG Electronics’ global appliance production bases in countries like Mexico, leading to expectations of a decline in U.S. sales. As a result, gaining an early advantage in the rapidly growing Indian market has become more important for LG.” LG Electronics is also preparing facility investments in the U.S. in response to U.S. tariff policies. According to a regional newspaper in Tennessee, LG Electronics plans to build a 16,000-square-meter warehouse in Clarksville, Tennessee. This is similar in scale to the existing Tennessee factory site. Construction is expected to be completed in the third quarter of 2026, with a total investment of USD 100 million (KRW 140 billion). Final approval from LG Electronics’ headquarters is pending, and the site plan has been submitted to the Tennessee regional planning committee. While the facility is likely to be used to store manufactured home appliances, some speculate that it may be converted into a production plant in response to potential future tariff policies. If the U.S. imposes tariffs on LG’s Mexican-made appliances, the company could expand local production in the U.S. by converting the warehouse into a factory. Currently, under the United States-Mexico-Canada Agreement (USMCA), the U.S. does not impose tariffs on home appliances imported from Canada and Mexico. An industry official noted, “The site for the warehouse was purchased at the same time LG acquired land for its Tennessee factory, and it was originally intended to be used as a storage facility.” #LG #ChoJoowan #KooKwangmo #IndiaInvestment #IPO #LGIndia #TennesseeWarehouse #GlobalExpansion #HomeAppliances #TradePolicyResponse
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- Will KFCC Chairman Kim In Seek Reappointment? Key Lies in Profitability Recovery and Ties with Interior Ministry
- Kim In, Chairman of the Korean Federation of Community Credit Cooperatives (KFCC), is entering the final year of his term. Elected through a by-election in December 2023, Chairman Kim's term runs until March 14, 2026, as he is completing the remainder of former Chairman Park Cha-hoon's tenure. Chairman Kim has been working to achieve both stronger profitability and improved financial soundness. He has taken numerous measures to reach these goals. However, there is limited time left for him to restore public trust in the KFCC and its reputation as a financial institution for ordinary citizens. This is why attention is focused on whether Chairman Kim will seek reappointment. Technically, Chairman Kim is eligible for reappointment. According to the transitional provisions of the Community Credit Cooperatives Act, the four-year single-term rule for the chairman applies only to those whose terms begin after the new regulation takes effect. To secure a second term, Chairman Kim’s relationship with the Ministry of the Interior and Safety will likely play a key role. Unlike ordinary financial institutions, the KFCC operates under the supervision of the ministry. ◆ Kim In pushes for structural reform at KFCC by strengthening cooperation with the Ministry of the Interior and Safety Chairman Kim has been striving to reform the KFCC’s organizational structure and enhance financial soundness under the guidance and collaboration of the Ministry of the Interior and Safety. During his tenure, Chairman Kim reportedly completed most of the Ministry’s management reform tasks, excluding a few mid- to long-term projects that require more time. To prepare for potential losses during the credit risk management process, the KFCC set aside KRW 1.6 trillion (USD 1.15 billion) in loan-loss reserves in 2023—an increase of KRW 400 billion (USD 287 million) from the previous year. As of the end of 2024, the KFCC’s total loan-loss reserves had reached KRW 7 trillion (USD 5.02 billion). These reserves act as buffer capital against loan defaults and losses. Chairman Kim also pushed to change the chairman’s term from a renewable four-year term to a single four-year term, in response to concerns about the excessive authority of the central leadership. To further support structural reform, the KFCC is set to launch an asset management company, “KFCC Asset Management,” in July 2024. In February 2024, the KFCC board approved a capital investment of KRW 30 billion (USD 21.5 million) to establish the company. By March, the company had completed its registration and business license process. The asset management firm is expected to purchase and manage non-performing loans within the KFCC system and take on responsibilities to prevent financial deterioration and improve management. As part of broader restructuring, Chairman Kim has already initiated mergers involving 24 local credit unions to streamline operations. The KFCC established the Credit Union Restructuring Division in 2024 and selected merger candidates based on criteria such as capital adequacy and asset soundness. Although the Ministry of the Interior and Safety has recognized the KFCC’s efforts to improve financial soundness, it is maintaining a critical oversight approach. As of April 1, the Ministry launched a joint government audit with the Korea Deposit Insurance Corporation and the Financial Supervisory Service. This joint audit focuses on issues such as whether proper loan review procedures were followed, whether creditor protection measures were implemented, and whether post-loan inspection manuals for corporate loans were observed. The audit targets 32 credit unions with assets over KRW 300 billion (USD 215 million) that are considered high-risk. Chairman Kim must also maintain strong ties with financial regulators in addition to the Ministry of the Interior and Safety. On February 5, the Ministry and the Financial Services Commission signed an MOU to enhance cooperative oversight of the KFCC’s financial soundness. This agreement outlines the principles and rules needed to build a cooperative supervisory framework, paving the way for direct financial supervision of the KFCC. Some in the political sphere have also argued that the KFCC should be brought under direct supervision by financial regulators. On December 31, 2024, Democratic Party lawmaker Yoo Dong-soo proposed an amendment to the Community Credit Cooperatives Act to allow the Financial Services Commission to issue direct oversight and orders over the KFCC’s credit and insurance businesses and to authorize the Financial Supervisory Service to conduct inspections. Yoo said, “With a host of issues such as financial soundness, bad loans, and corruption involving the central chairman and executives coming to light, there’s a clear need for direct oversight by financial authorities,” adding, “This bill aims to restore soundness and ensure regulatory fairness with other cooperative financial institutions.” He continued, “We hope this legislation helps the KFCC regain public trust and fulfill its founding mission as a cooperative financial institution that supports low-income households and revitalizes local economies.” ◆ KFCC’s Weak Earnings Raise Questions About Profitability Efforts While Chairman Kim has made progress in strengthening financial soundness, the KFCC continues to show disappointing profitability. In 2024, the KFCC recorded the largest net loss in its history—KRW 1.7382 trillion (USD 1.25 billion). The Ministry of the Interior and Safety attributed the massive loss to increased loan-loss reserve contributions and the sale of delinquent loans. The Ministry stated, “We accumulated KRW 1.6 trillion (USD 1.15 billion) in loan-loss reserves to improve our loss absorption capacity, resulting in a sharp increase in reserve-related expenses. This, along with aggressive sales of delinquent loans, caused the net loss in 2024.” Looking forward, Chairman Kim is expected to pursue diversification of the KFCC’s loan portfolio—focusing on household lending—without compromising financial soundness. Chairman Kim said, “In 2025, we will adjust our lending portfolio to focus on household loans and expand sound credit offerings. We will also increase policy loan programs to support the economic independence of small business owners and financially vulnerable groups, ensuring the KFCC maintains its role as a financial service for ordinary citizens.” Despite the 2023 bank run crisis, the KFCC still managed to post a net profit of KRW 86 billion (USD 61.6 million) that year. The loan-loss reserves for 2023 totaled KRW 1.2 trillion (USD 860 million), which is KRW 400 billion (USD 287 million) less than in 2024. The crisis stemmed from poor real estate project financing (PF) loans, which damaged the institution’s financial soundness. In July 2023, Namyangju East Community Credit Cooperative, based in Gyeonggi Province, was merged with Hwa-do Community Credit Cooperative after reporting KRW 60 billion (USD 43 million) in bad loans. This triggered customer panic and large-scale withdrawals from nearby credit unions. A wave of bank runs followed nationwide, with approximately KRW 18 trillion (USD 12.9 billion) withdrawn from KFCC credit unions in just one month. Total deposits fell from KRW 259.4624 trillion (USD 186 billion) in June 2024 to KRW 241.8559 trillion (USD 173.5 billion) in July 2024. However, by March 2024, deposits had recovered to pre-bank-run levels, reaching KRW 260.0811 trillion (USD 186.4 billion). As of the end of January 2025, total deposits stood at KRW 259.8105 trillion (USD 186.2 billion), maintaining a stable level. #KFCC #KimIn #Chairman #ProfitabilityChallenge #NetLoss #LoanLossReserves #HouseholdLoans #PolicyFinance #BankRun #DepositRecovery #FinancialVulnerabilitySupport
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- Krafton Shifts From Game Developer to AI Company, Kim Chang-han Accelerates ‘Post-Battlegrounds’ Expansion
- Kim Chang-han, CEO of Krafton, is taking artificial intelligence (AI) as a future growth engine and has begun a full-scale expansion strategy. He is strengthening collaboration with global tech companies and expanding the scope of AI applications from new game development to the humanoid robot field, aiming to transform Krafton’s identity. According to the gaming industry on April 14, Kim Chang-han, who has been striving to find the next revenue breakthrough after PUBG: Battlegrounds, is seeing AI as a new opportunity and showing a strong will to enhance competitiveness in the technology field. Recently, CEO Kim visited NVIDIA's headquarters in California and met directly with CEO Jensen Huang to discuss AI technology cooperation. It is known that the two companies agreed to expand the scope of cooperation beyond games to include humanoid robot technologies. This is a follow-up discussion after Krafton and NVIDIA previously co-developed CPC, a technology for in-game interactive characters. Earlier this year, CEO Kim also had a direct meeting with Sam Altman, CEO of OpenAI. During Altman’s visit to Korea, Kim stood out in the industry as one of the rare game company CEOs to have such a meeting. AI is an area that CEO Kim is focusing on as a future growth driver. In the regular shareholders' meeting held last month, “securing AI competitiveness” was cited as one of the two key management goals for this year. Krafton has also been increasing its R&D investment recently. In 2024, Krafton's research and development expenses will be KRW 424.8 billion (US$ 306.2 million), a 12.02% increase from the previous year. This is the largest amount in the company’s history, with R&D accounting for 15.7% of total revenue. Compared to KRW 15 billion (US$ 10.8 million) in 2019, R&D spending has increased more than 20 times in five years. As of last year, this amount was even higher than that of NCSoft. Krafton is simultaneously conducting research on proprietary LLMs (large language models) and designing AI-based simulations, along with new game development. A representative example is the CPC technology applied in the new life simulation genre game “inZoi,” which was released last month in early access. This technology allows in-game characters to naturally respond to players’ commands and continue conversations and actions. Last month, CEO Kim emphasized, “AI adoption is one of Krafton's key strategies,” and added, “We will experiment with scalable gameplay using AI technology and create innovative games based on it.” However, there is some skepticism in the market about Krafton’s AI direction. This is due to the lack of a clear revenue model despite high investment in AI, and the absence of a hit game that has successfully applied AI in a significant way. In fact, many users have commented that they “cannot feel a significant difference compared to before activating the mode” regarding the AI system applied in “inZoi.” Some also point out that “the game simply demands higher performance to run.” An industry official said, “The key will be whether AI technology can be integrated with gameplay to truly differentiate the user experience,” and added, “The core task going forward will be to deliver results that users can tangibly experience.” #KimChanghan #Krafton #AIstrategy #NVIDIA #OpenAI #gameindustry #inZoi #CPCtechnology #LLMresearch #Koreangaming
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- 'DRAM No.1' SK hynix, Kwak Noh-jung Expands 2025 CAPEX from 21 to 27 Trillion Won to Widen Lead
- SK hynix, which has risen to the top spot in the DRAM market, is expected to increase its capital expenditures (CAPEX) this year from the initially planned KRW 21 trillion (US$ 15.1 billion) to around KRW 27 trillion (US$ 19.5 billion) to maintain its leadership in high-bandwidth memory (HBM). CEO Kwak Noh-jung of SK hynix began the development of the “Yongin Semiconductor Cluster” in February this year and plans to complete the Cheongju M15X plant in the second half of the year to actively respond to growing HBM demand. According to combined reports from the semiconductor industry on April 14, SK hynix, which became the world’s No.1 DRAM company by market share (based on revenue) in the first quarter of 2025, is expected to further expand its facility investments this year to widen the gap with its competitors. SK hynix had initially planned about KRW 21 trillion (US$ 15.1 billion) in facility investment this year, increasing it by about KRW 5 trillion (US$ 3.6 billion) from last year’s KRW 15.9455 trillion (US$ 11.5 billion). However, with major clients like NVIDIA demanding more HBM than expected, the need for greater investment has grown. Since the fourth quarter of 2024, SK hynix has been exclusively supplying NVIDIA with the 12-layer fifth-generation HBM3E. Kim Rok-ho, an analyst at Hana Securities, stated, “We are revising SK hynix’s annual CAPEX from KRW 21 trillion (US$ 15.1 billion) to KRW 27 trillion (US$ 19.5 billion), with investments focused on 1a and 1b nanometer process transitions and DRAM-centered products such as HBM.” Additionally, demand for HBM from ASIC companies like Broadcom is expected to increase significantly this year. At the annual general shareholders’ meeting in March, CEO Kwak stated, “Although global economic growth forecasts continue to be revised downward and uncertainty remains high, investments by big tech companies to secure leadership in the AI market are expanding,” and added, “With the increase in GPUs and ASICs, explosive growth in HBM demand is expected.” Key facility investments are focused on the Cheongju M15X plant. The M15X plant, which is under construction with an investment of about KRW 20 trillion (US$ 14.4 billion), is set for completion in the second half of the year. Once completed, HBM production capacity is expected to increase from 100,000 wafers per month in 2023 to over 160,000 wafers. In addition, in February this year, SK hynix began construction on the first plant within the “Yongin Semiconductor Cluster,” which involves a total investment of KRW 122 trillion (US$ 88 billion), and also began land-use change procedures for a semiconductor packaging plant in Indiana, U.S., which involves an investment of US$ 3.87 billion (KRW 5.73 trillion). SK hynix is experiencing the most prosperous period since its founding. According to market research firm Counterpoint Research, SK hynix captured a 36% market share in the DRAM market in the first quarter of this year, placing it at the top. Samsung Electronics and Micron followed with 34% and 25%, respectively. This is the first time since 1993 that Samsung Electronics has been pushed from the top spot in the DRAM market. This shift is largely due to SK hynix securing a dominant 70% market share in the high-value HBM segment, widening the gap with Samsung. CEO Kwak is working quickly to expand production volume and solidify SK hynix’s leading position in the HBM market. In contrast, Samsung Electronics is expected to maintain its semiconductor (DS) division investment at about KRW 46 trillion (US$ 33.2 billion) in 2024, similar to last year. As Samsung has yet to supply HBM3E 12-layer chips to NVIDIA, it has delayed the construction of Pyeongtaek Campus Line 4 (P4) and Line 5 (P5) compared to original plans. However, SK hynix’s CAPEX plans may be adjusted in the future depending on the impact of U.S. tariffs on semiconductor demand. U.S. President Donald Trump stated on April 12 local time that he would give a specific answer regarding semiconductor-related tariffs on Monday (April 14). Taiwan’s Economic Daily reported, “Semiconductor manufacturers are reviewing various scenarios, and the most severe scenario would be a tariff exceeding 100%,” adding, “If tariffs are imposed reflecting the difference between global production volume and production within the U.S., the rates could be extremely shocking.” #SKhynix #HBM #DRAM #SemiconductorInvestment #KwakNohjung #M15X #YonginCluster #NVIDIA #CAPEX #USChinaTariffs
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- Shin Chang-jae Racing Against Time for Kyobo Holding Shift Amid Investor Dispute
- Shin Chang-jae, Chairman and CEO of Kyobo Life Insurance, is accelerating his long-cherished goal of transitioning the company into a holding company structure. This comes as the dispute with financial investors (FIs) over the put option is nearing resolution. On April 2, the Seoul Central District Court ruled that the enforcement penalty decision by the International Chamber of Commerce (ICC) was invalid. In December 2024, the ICC had ordered Chairman Shin to appoint an appraisal agency to determine the fair market value (FMV) of the put option shares and to submit the valuation report. It concluded that failure to do so within the designated time would result in a daily penalty of US$ 200,000 (KRW 300 million). With the Seoul court siding with Chairman Shin, negotiations between Kyobo Life and financial investors IMM Private Equity and EQT Partners are expected to gain momentum, as Shin is no longer under pressure to hastily proceed with the put option valuation process. As a result, financial investors, who must fulfill their fiduciary duty to their limited partners, are now in a position where they must negotiate with Kyobo Life to divest their shares at a fair price. Since time favors Kyobo Life, the financial investors are likely to suffer more if the dispute continues. What kind of future is Chairman Shin envisioning through the long-awaited transition of Kyobo Life into a holding company? ◆ Shin Chang-jae’s Vision: Leap Toward Becoming a Comprehensive Financial Group Kyobo Life, founded in 1958, has led Korea’s insurance market for nearly 70 years. To secure a new future for Kyobo Life, Chairman Shin Chang-jae is promoting a transformation into a comprehensive financial group. Due to the worsening outlook of the life insurance sector amid declining birth rates and an aging population, there is a need to diversify the business portfolio through the holding company transition to include non-life insurance and non-insurance businesses. Moreover, under the current structure centered on a life insurance company, there are many legal restrictions on expanding into non-insurance sectors. If Kyobo Life transitions into a typical financial holding company structure, it would be able to pursue long-term group growth strategies and find new growth drivers in other areas. In 2023, Kyobo Life unveiled its roadmap for transitioning into a holding company. Through a spin-off, the company will establish a financial holding company using shares and cash held by Kyobo Life. Shares in the newly formed holding company will be distributed to existing shareholders of Kyobo Life. Kyobo Life will then become a subsidiary of the newly established financial holding company. The holding company plans to issue new shares through a capital increase and receive Kyobo Life shares as in-kind contributions instead of cash payments. Kyobo Life’s transition to a holding company is expected to be completed by December 31, 2026. Under the current Restriction of Special Taxation Act, Korean corporations transitioning into holding companies are eligible for special tax benefits. Taxes related to capital gains from stock exchanges or in-kind contributions during the transition process are deferred until the shares are sold. This tax provision is valid until December 31, 2026. Without further legislative amendments, Kyobo Life must complete its transition into a holding company by that date. Kyobo Life has also set a target to complete the transition by December 2026. At a meeting held on February 27 at the Life Insurance Education Center in Gwanghwamun, Seoul, Kyobo Life CEO Cho Dae-kyu told reporters, “We will complete the transition into a holding company by December 2026,” adding, “We are continuously exploring the acquisition of a non-life insurer to support this transition.” ◆ Is the Goal of the Holding Company Transition Also to Stabilize Management Control? Another reason behind Chairman Shin Chang-jae’s push for the holding company transition is believed to be the stabilization of management control. According to Kyobo Life’s business report, as of December 2024, Chairman Shin held a 33.78% stake in the company. In February 2025, after Affirma Capital sold him a 5.33% stake, his total shareholding increased to approximately 39%. Although he remains the largest shareholder, transitioning to a holding company structure is considered necessary to ensure stable control. Previously, Chairman Shin faced a management control crisis during a dispute with the Affinity Consortium (composed of Affinity Equity Partners, GIC, IMM Private Equity, and EQT Partners). The Affinity Consortium became Kyobo Life’s second-largest shareholder in 2012 by purchasing a 24% stake (at KRW 245,000 per share) from Daewoo International (now POSCO International). At that time, Chairman Shin held a 33.8% stake, and the Affinity Consortium effectively played a supportive role in protecting his control of the company. The consortium agreed to support Shin under the condition that Kyobo Life would go public within three years. If the IPO did not happen, they would exercise a put option. Kyobo Life failed to complete the IPO by 2015, as promised, causing the relationship with the financial investors to break down. In 2018, the Affinity Consortium exercised the put option, demanding that Chairman Shin repurchase their shares at KRW 410,000 per share. Shin refused, and the dispute expanded to international arbitration under the ICC. The conflict with the financial investors, who held 24% as the second-largest shareholder, led to a weakening of Shin’s management control. Differences in opinion among shareholders regarding mergers and acquisitions also caused delays or failures in making timely decisions. Concerns over shareholder disputes also contributed to the failure of Kyobo Life’s IPO. On July 8, 2022, the Korea Exchange’s Listing Disclosure Committee decided not to approve Kyobo Life’s listing on the KOSPI market, citing the intensified management dispute between the largest and second-largest shareholders as the reason for the denial. #ShinChangjae #KyoboLife #HoldingCompany #PutOptionDispute #FinancialInvestors #IPO #ManagementControl #AffinityConsortium #KoreanFinance #CorporateGovernance
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- KCC Glass Struggles in Core Business, Eyes Indonesia for Turnaround
- KCC Glass has been unable to avoid a decline in overall profitability due to the prolonged slump in its core glass business. Chung Mong-ik, CEO of KCC Glass, appears to be focusing on performance recovery by leveraging the company’s new glass plant in Indonesia—a market with strong growth potential and significantly lower production costs. According to KCC Glass on June 13, the company’s glass division has suffered two consecutive years of operating profit decline due to the downturn in the construction market and intensifying competition. The glass division’s operating profit dropped from KRW 123 billion (US$ 85.5 million) in 2022 to KRW 25.1 billion (US$ 17.5 million) in 2024. Last year alone, it plunged 64.1% from the previous year. The fall is largely attributed to shrinking demand from the domestic construction sector and increased competition from low-priced imports, particularly from Malaysia. The average domestic price of flat glass—unprocessed raw glass used in further manufacturing—peaked at KRW 661 per kg in 2022 but fell by 16.7% to KRW 551 per kg last year. Adding to the pressure, industrial electricity rates surged by 76% from Q1 2022 to Q4 2023, reaching KRW 185.5 per kWh. This increase far outpaced the roughly 30% rise seen in residential and commercial sectors. As a result, operating expenses in the glass division, which operates solely within Korea, jumped from KRW 763 billion (US$ 530.3 million) in 2022 to KRW 947.1 billion (US$ 658.7 million) last year. The poor performance of the glass division directly impacted the company’s overall earnings. KCC Glass’s consolidated operating profit declined from KRW 119.2 billion (US$ 82.9 million) in 2022 to KRW 57.2 billion (US$ 39.8 million) in 2024. While the interior and distribution business posted a turnaround from a KRW 6.7 billion (US$ 4.7 million) operating loss in 2022 to a KRW 35.9 billion (US$ 25.0 million) profit in 2024, it was not enough to offset the glass division’s drag. As of last year, the glass division accounted for 51% of the company’s total sales, while interior and distribution contributed 46%. Korea Ratings commented, “KCC Glass’s glass business enjoys strong stability as an oligopolistic capital-intensive sector with a long track record and dominant domestic market share. However, its earnings have continued to weaken due to sluggish housing construction and rising electricity costs.” Chung Mong-ik is now betting on the company’s first overseas glass production base in Indonesia to reverse the tide. KCC Glass officially began operating its Indonesian plant in October 2023, around three years and five months after establishing its local subsidiary in May 2021. The company invested KRW 300 billion (US$ 208.6 million) to complete the facility, which has an annual production capacity of 440,000 tons—roughly one-third of the 1.3 million tons produced annually at its existing Yeoju plant in Korea. Indonesia offers distinct advantages in operational costs, with industrial electricity priced at just KRW 93 per kWh—about 40% cheaper than in Korea. Furthermore, the monthly minimum wage in Central Java, where the Batang plant is located, is around KRW 180,000 (US$ 125), just one-tenth of Korea’s. Given Indonesia’s status as the fourth most populous country with a fast-growing economy, and with Chung planning to invest more than twice the initial amount, the Batang plant’s cost advantage is expected to prove decisive. KCC Glass also expects robust demand for flat glass amid Indonesia’s ongoing construction boom, driven by the relocation of its capital to Nusantara and steady 5% GDP growth. With a planned KRW 700 billion (US$ 487 million) in additional investment, the company aims to expand capacity and establish coated glass production lines. At the October 2023 furnace ignition ceremony, Chung Mong-ik declared, “KCC Glass’s innovative technology has set a new milestone. This plant will make Indonesia a key player in the global glass industry.” KCC Glass currently has no major changes in executive structure or other business divisions, and its financial health remains strong—creating the perfect environment to focus on the Indonesian plant and its local sales strategy. Despite the KRW 300 billion investment, the company ended last year with solid metrics: a consolidated debt ratio of 67% and debt-to-equity ratio of 21%, thanks to previously low borrowing levels. Korea Investors Service noted, “While KCC Glass shifted from a net cash to net debt position by the end of 2022 due to investment pressure, its debt ratio and leverage remain at very stable levels.” A KCC Glass representative stated, “We will increase the share of high value-added products such as coated glass and strengthen glass sales through our new local organization in Indonesia.” #KCCGlass #ChungMongik #IndonesiaPlant #GlassDivision #ProfitabilityChallenge #FlatGlass #ElectricityCosts #MalaysiaImports #ConstructionSlowdown #GlobalExpansion
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- "Only M&A Can Deliver" — Hur Inn-chul’s KRW 10 Trillion Dream for Orion Faces Shortage of Attractive Targets
- Hur Inn-chul, Vice Chairman of Orion, remains committed to mergers and acquisitions (M&A). Hur believes that for Orion, which just surpassed KRW 3 trillion (US$ 2.16 billion) in revenue, M&A is not an option but a necessity to become a comprehensive food company with KRW 10 trillion (US$ 7.21 billion) in sales. However, the problem lies in the lack of suitable targets to make that vision a reality. Despite reviewing major food companies in countries like China and Vietnam, no viable answer has been found in years. According to Orion on April 11, Vice Chairman Hur personally attended the “CEO-led Roundtable” held at Orion’s headquarters in Yongsan, Seoul on April 10, where he reaffirmed his strong intention to pursue M&A. Hur stated, “M&A is essential for Orion’s long-term growth, and we have sufficient financial capacity,” adding, “Orion generates KRW 500 billion (US$ 360.5 million) in annual operating profit and secures about KRW 200 billion (US$ 144.2 million) in cash each year even after considering capital expenditures (CAPEX).” He clearly identified the M&A target. To expand influence in China, Vietnam, and India, food companies are being prioritized. His remarks on M&A have become a regular theme at every CEO roundtable. When Orion revived its CEO meetings in 2022 after a four-year hiatus, he also stated, “We are actively looking at potential acquisitions in the food sector regardless of region, whether it’s Korea, China, or Vietnam.” This is seen as a move to signal to the market that Orion is not passive when it comes to M&A. It aims to highlight that the company is ready to act whenever the right opportunity arises. In fact, in January 2024, Orion signed a deal to acquire biotech firm LegoChem Biosciences (now LigaChem Biosciences) for approximately KRW 550 billion (US$ 396.5 million), proving that these weren’t empty words. However, it’s hard to say the blueprint is being fully realized. When focusing strictly on food-related M&A—the stated top priority—Orion’s performance remains limited. The only major food company Orion acquired in the past 10 years was Jeju Yongam Water in 2016. The reason Orion has struggled to complete food-related M&As is due to the difficulty in finding suitable deals. Hur candidly acknowledged this issue during the roundtable, saying, “The food industry is not very active in M&A.” As he noted, finding food industry targets in Asia is increasingly challenging. According to CNBC, the total value of M&A transactions involving Chinese-speaking regions has declined for five consecutive years since 2020. Market research firm Dealogic reported that M&A transaction volume for Chinese companies dropped from US$ 553 billion in 2020 to US$ 304 billion in 2024—a 45% decrease. It’s likely for this reason that Hur left the door open to acquisitions outside the food industry, stating, “If the business is beneficial to Orion, we will positively consider M&As even in unrelated industries.” However, Orion is unlikely to pursue targets such as Homeplus or additional biotech firms, which have been floated in some circles. Regarding the possibility of acquiring distribution channels like Homeplus, Hur said, “Back in 2015, we assessed Homeplus’s enterprise value at KRW 4 trillion (US$ 2.88 billion), but MBK Partners acquired it for over KRW 7 trillion (US$ 5.05 billion),” adding, “Distribution is a business where failure is inevitable if you don’t reduce operating costs,” suggesting a lack of interest in Homeplus. On the direction of biotech investments, he said, “If we receive a very good proposal, we may consider it, but we will focus on nurturing the biotech business we’ve already secured,” making it clear there are no plans to expand further into biotech. Hur’s interest in M&A stems from his belief that it is the most effective way to save time in Orion’s journey toward transformation. In the past, he presented a vision for Orion to become a comprehensive food company with over KRW 10 trillion (US$ 7.21 billion) in revenue. While the company achieved record performance last year by surpassing KRW 3 trillion (US$ 2.16 billion) in sales for the first time since its founding, there is still a long way to go. This highlights the gap between goals and current reality. Hur is known for his aggressive approach to M&A, earning a reputation as a “master of M&A” during his time at Shinsegae Group. One of the most well-known examples is when he led the acquisition of Wal-Mart Korea by E-Mart in 2008 and completed negotiations within a week. He was also deeply involved in the sale of Shinsegae Dream Express (2008), the purchase of the Paju Premium Outlet site (2008), the spin-off of Shinsegae and E-Mart (2011), and the acquisition of Central City (2012). #HurInnchul #Orion #M&Astrategy #foodindustry #globalexpansion #corporategrowth #ChinaVietnamIndia #LigaChem #biotechinvestment #retailacquisition
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- SK Joins Humanoid Race as Chey Tae-won Aims to Lead in Physical AI
- SK Group is showing signs of seriously strengthening its robotics business. Chairman Chey Tae-won has laid out a vision to expand SK Group’s artificial intelligence (AI) capabilities into robotics, aiming to become a leader in “physical AI.” According to industry sources on April 11, while major domestic conglomerates such as Samsung Group, Hyundai Motor Group, and LG Group have been expanding their investments in robotics in recent years, SK Group is now entering the robotics business, albeit somewhat late. On April 10, SK On joined the government-led “K-Humanoid Alliance” as a component supplier. The K-Humanoid Alliance will develop a shared AI model for robots and advance core technologies for high-performance humanoids. SK On will be responsible for developing high-density, high-safety, and long-life batteries for humanoids. SK On also recently made a strategic equity investment in a robotics company. SK On’s U.S. subsidiary, SK Battery America (SKBA), secured a call option on April 1 to acquire a 23% stake in the KOSDAQ-listed robotics company Unitree Robotics within five years at KRW 28,000 (US$ 20.2) per share. Combined with its existing 13.4% stake, exercising the option would make SK the largest shareholder of Unitree Robotics. Unitree Robotics is strong in industrial robots such as collaborative robots and food tech robots, and is expanding into the humanoid and autonomous mobile robot (AMR) markets. Until recently, SK Group had been viewed as passive in robot investments compared to its rivals. SK’s four major focus areas—advanced materials, green, digital, and bio—were somewhat distant from robotics, and there had been few notable mergers or acquisitions. The only major move was SK Telecom’s KRW 10 billion (US$ 7.2 million) investment in AI logistics robotics firm Cemes in 2022. In contrast, Hyundai Motor invested KRW 958.8 billion (US$ 691.1 million) in 2020 to acquire U.S. robot maker Boston Dynamics. Samsung Electronics invested KRW 86 billion (US$ 62 million) in 2023 in domestic robotics firm Rainbow Robotics and followed up in 2024 with an additional KRW 267.5 billion (US$ 193 million) to make it a subsidiary. In March 2024, LG Electronics invested US$ 60 million (KRW 87.9 billion) in autonomous service robot startup Bear Robotics to acquire a 21% stake, and this year secured management rights by purchasing an additional 30% stake. Chairman Chey Tae-won is believed to have started seeing opportunities in combining AI and robotics—“physical AI”—after confirming the potential of robots at CES 2025, held in Las Vegas in January. Physical AI refers to AI technologies applied to physical forms like robots and autonomous vehicles. Unlike traditional AI that processes two-dimensional data like text, images, and voice, physical AI collects and learns from real-time data in a three-dimensional environment—such as vision, temperature, pressure, and distance—to interact with the real world. The result of AI is realized through physical movements of robots, drones, or autonomous vehicles. Jensen Huang, CEO of NVIDIA, drew major attention at CES 2025 when he stated during his keynote, “The next big thing after generative AI is physical AI,” and added, “The ChatGPT moment for robots is coming.” At that time, Chairman Chey personally met with CEO Jensen Huang to discuss physical AI. Though SK Group is a latecomer in robotics, it has strengths in AI. SK hynix is the global No.1 in AI semiconductors with its high bandwidth memory (HBM), and SK Telecom is building capabilities in AI agent services through its personal AI assistant ‘A.’ and its AI data center business. In 2024, SK Telecom also invested US$ 10 million (KRW 14.6 billion) in U.S. AI search engine startup Perplexity, which is emerging as a rival to Google. This move is seen as part of its expansion into not only AI infrastructure but also AI services. It is also known that there is a high possibility of cooperation with NVIDIA on developing a physical AI platform. In March this year at the AI conference ‘GTC 2025,’ NVIDIA unveiled ‘Isaac,’ an open humanoid robot model, signaling acceleration in its robotics business. Some observers believe that SK Group may lead in humanoid development in the future, as it is the only Korean company capable of covering the full spectrum from AI semiconductor production to AI infrastructure and physical application. In a post uploaded to social networking service LinkedIn in January, Chairman Chey stated, “SK has the technology and partnership capabilities to expand the AI business on a global scale,” adding, “We will continue to create new business opportunities by providing comprehensive support systems across the AI value chain, including customers and partners.” #CheyTaewon #SKGroup #physicalAI #roboticsinvestment #SKOn #AIrobots #humanoidrobots #UnitreeRobotics #NVIDIA #futuretechnology
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- Koo Ja-eun Building LS's Future with Ambidextrous Management, But Market Disconnect Remains a Blemish
- "Through ambidextrous management, we will maximize synergy between our existing core businesses and future new businesses." This was the first statement made by Koo Ja-eun, Chairman of LS Group, upon taking office in 2022. He is now approaching his third anniversary. Within the business community, there is a prevailing view that LS Group has achieved remarkable growth under Chairman Koo’s leadership. Many analysts credit the group’s success to its ambidextrous management strategy. Ambidextrous management refers to a strategy of simultaneously fostering both traditional strong sectors such as electricity, power, and materials, and future high-potential industries such as batteries, electric vehicles, and semiconductors. Since his inauguration, Chairman Koo has emphasized maximizing synergy between core businesses and emerging ventures, establishing ambidextrous management as a key strategy. ◆ Three consecutive years of joining the 'KRW 1 trillion operating profit club' after taking office LS Group has shown significant improvement in profitability since Chairman Koo took office. According to internal management standards, LS Group recorded KRW 1.204 trillion (US$ 868.5 million) in operating profit in 2022, KRW 1.2928 trillion (US$ 932.3 million) in 2023, and surpassed KRW 1 trillion (US$ 721 million) in 2024, achieving KRW 1 trillion in operating profit for three consecutive years. This performance is attributed to balanced growth across major subsidiaries, such as increased subsea cable orders for LS Cable & System, robust power equipment business at LS ELECTRIC, and the growth of LS MnM's materials business. Chairman Koo's ambidextrous strategy has thus translated into tangible financial achievements. LS Group’s successful transformation was also supported by Chairman Koo’s bold investment decisions. On January 2, 2023, at the New Year’s ceremony and vision declaration held at the LS Tower auditorium in Anyang, Chairman Koo announced a plan to invest more than KRW 20 trillion (US$ 14.4 billion) by 2030 to build a foundation for future industries including battery materials, EV components, and semiconductor materials. At the event, Chairman Koo said, “Over the next 30 years, the global common goal can be summarized in one word: net-zero,” adding, “This grand transition presents a major opportunity for LS, whose main businesses include power, energy, and semiconductor materials.” He has consistently pursued this vision, laying a foundation for strengthening future competitiveness. LS MnM is investing KRW 1.8 trillion (US$ 1.3 billion) to build secondary battery material production facilities in Ulsan and Saemangeum, while LS Cable & System is constructing a KRW 1 trillion (US$ 721 million) subsea cable plant in Virginia, USA, accelerating its global expansion. ◆ Efforts to secure future growth engines LS Group is moving beyond its traditional manufacturing base by actively adopting future technologies such as AI, big data, and IoT to innovate its business portfolio. LS ELECTRIC, in particular, is expanding its ultra-high voltage transformer production capacity and strengthening its capabilities by acquiring KOC Electric, preparing for the surge in power demand expected in the AI era. LS Cable & System is also expanding operations in line with the global power grid expansion, building a subsea cable plant in Virginia, USA. In the field of new business, LS Group is showing notable achievements. LS MnM has established a production system for nickel sulfate, a secondary battery material capable of powering 1.25 million electric vehicles. LS e-Mobility Solutions has secured production capacity for EV relays and battery disconnect units at its plant in Mexico. Additionally, LS E-Link is developing an EV charging business focused on B2B clients, and LS Mtron has commercialized Korea’s first autonomous work tractor, continuing innovation through the integration of AI technologies. The securities industry forecasts that Chairman Koo will continue to generate synergy between new and existing businesses and lay the groundwork for future growth. Choi Moon-sun, a researcher at Korea Investment & Securities, stated, “There are over 30 upcoming power grid projects in the U.S., spanning a total transmission distance of 13,824 km and an investment of US$ 53.4 billion. With LS Cable & System and LS ELECTRIC expanding their local investments, LS Group affiliates are expected to reap long-term profits.” ◆ A blemish on Koo Ja-eun’s leadership However, there is a blemish on Chairman Koo Ja-eun’s leadership. In recent years, LS Group has faced various issues such as deteriorating financial soundness, changes in governance structure, and owner-related risks while pursuing aggressive investments and business expansions. Since Chairman Koo’s appointment, LS Group’s governance structure has also changed along with its business scale. Koo’s ownership stake dropped from 0.69% in 2022 to 0.42% in 2024, while the total ownership of the owner family also decreased from 4.59% to 2.96% during the same period. Furthermore, there is criticism that Chairman Koo’s views on governance do not meet market expectations. At InterBattery 2025 held on March 5, 2025, at COEX in Seoul, Chairman Koo sparked controversy by commenting on the upcoming IPOs of several affiliates—including LS Materials, LS E-Link, and LS EV Korea—saying, “If you think multiple listings are a problem, then don’t buy the stock.” His remark was interpreted as a rebuttal to concerns over potential damage to shareholder value, but it was also seen as a sign of poor communication with the market. Kim Jong-young, a researcher at IBK Investment & Securities, stated, “Global standards call for listed companies to avoid multiple listings so that shareholder value can be properly assessed. Compared to Taiwan and China, which lead emerging markets, Korea’s rate of overlapping listings is abnormally high.” #KooJaeun #LSGroup #ambidextrousmanagement #businessgrowth #batteryindustry #EVcomponents #semiconductormaterials #futurestrategy #corporategovernance #netzero
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- SK hynix Breaks into NVIDIA’s GDDR7, Kwak Noh-jung Boosts Graphics DRAM After HBM
- SK hynix has successfully begun supplying GDDR7 graphics DRAM to NVIDIA, solidifying a competitive landscape with Samsung Electronics. President and CEO Kwak Noh-jung of SK hynix is expected to further expand influence in the artificial intelligence (AI) semiconductor market by strengthening competitiveness in graphics DRAM following high bandwidth memory (HBM). According to information compiled from the semiconductor industry on April 10, SK hynix's GDDR7 has been confirmed to be used in NVIDIA’s latest gaming GPU, the RTX 5070. Initially, only Samsung Electronics was part of NVIDIA’s GDDR7 supply chain for the RTX 50 series, but SK hynix has since joined the supply. U.S.-based Micron’s products are reportedly not yet applied to the RTX 50. GDDR is a high-speed memory semiconductor developed to optimize GPU performance. It is a DRAM specialized for high-bandwidth graphic computing, suitable for tasks such as video editing and 3D rendering. Higher bandwidth allows smoother frames and lower latency, improving overall efficiency in graphic processing. GDDR7 offers up to twice the memory bandwidth of GDDR6, enabling faster data processing. Until now, SK hynix was considered to be behind Samsung Electronics in the GDDR sector. According to market research firm Omdia, in 2022, Samsung held a 35.9% share of the GDDR market, while SK hynix had 27.4%, showing an 8.5 percentage point gap. Samsung Electronics was the first in the world to develop GDDR6 in 2022 and also the first to develop GDDR7 in July 2023, allowing it to dominate NVIDIA's initial RTX 50 supply. However, SK hynix also began mass production of GDDR7 in the third quarter of last year and succeeded in supplying NVIDIA, significantly narrowing the gap with Samsung Electronics. In particular, SK hynix expanded the heat-dissipating substrate layers in its GDDR7 package from 4 to 6 and applied high thermal conductivity EMC (a material used to seal and protect semiconductors). This reduced thermal resistance by 74% compared to the previous generation, greatly improving the heat issue caused by ultra-high-speed data processing. U.S. tech media outlet Tom's Hardware analyzed, “SK hynix’s GDDR7 product operates at speeds up to 32Gbps and can reach 40Gbps under certain conditions,” and added, “While Samsung was preferred during the RTX 50’s early release, SK hynix appears to have recently caught NVIDIA’s attention.” GDDR is expanding its use beyond high-end 3D graphics to AI and high-performance computing (HPC). Though it offers lower performance than HBM, GDDR consumes less power and has better cost efficiency, making it increasingly suitable not only for PCs but also for low-end data center servers. In particular, demand for GDDR is rising for AI inference chips and high-performance AI on-device chips. Unlike training AI chips that handle massive data acquisition, inference AI chips focus on delivering responses to questions based on data and thus prioritize thermal control and cost efficiency over performance. HBM, which is bulky, is not suitable for on-device applications. The AI chip ‘Wormhole’ from Canadian semiconductor startup Tenstorrent has also adopted GDDR over HBM to ensure price competitiveness while delivering strong parallel processing performance suitable for AI inference tasks. As low-cost AI models such as those from China’s DeepSeek evolve, demand for GDDR is expected to grow even further. According to market research firm DataIntelo, the GDDR market, valued at US$ 5.8 billion (KRW 8.47 trillion) in 2023, is projected to grow at an average annual rate of 9.1% and reach US$ 12.6 billion (KRW 18.4 trillion) by 2032. President Kwak Noh-jung is expected to focus on making SK hynix No. 1 not only in HBM but also in cost-effective AI chips by enhancing GDDR7 competitiveness. At the ‘Together THE Communication Event’ held at the Cheongju campus on March 10, Kwak said, “The AI trend will continue, and we will not slack off in securing AI capabilities,” adding, “The most important thing to maintain our No. 1 position in the AI trend is technology.” #SKHynix #KwakNohjung #GDDR7 #NVIDIA #RTX5070 #SamsungElectronics #AIChips #GraphicsDRAM #HBM #AIInference #SemiconductorMarket #Micron #TechCompetition #Tomshardware #DataIntelo #GDDRMarketGrowth
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- Huh Tae-soo Pushes Change at GS, Hur Sae-hong, Huh Yoon-hong, Huh Seo-hong’s Moves in ‘Earnings’ and ‘AI’
- Huh Tae-soo, Chairman of GS Group, is urging the group to accelerate the pace of change as it marks its 20th anniversary, drawing attention to the next steps of fourth-generation owner-executives such as Hur Sae-hong, CEO of GS Caltex; Huh Yoon-hong, CEO of GS Engineering & Construction; and Huh Seo-hong, CEO of GS Retail. Evaluations of GS Group’s fourth-generation leaders are expected to hinge on their ability to recover declining performance and stabilize operations, as well as deliver results in artificial intelligence (AI) utilization—a focus strongly emphasized by Chairman Huh. According to the Financial Supervisory Service’s electronic disclosure system on April 10, GS Group’s holding company GS saw both revenue and operating profit decline for two consecutive years after peaking in 2022. In particular, GS’s consolidated operating profit shrank from KRW 5.1202 trillion (US$ 3.69 billion) in 2022 to KRW 3.0602 trillion (US$ 2.21 billion) last year. With a 40% drop in operating profit over two years, the group is seen as struggling to secure profitability. This was largely due to the sharp decline in consolidated operating profit of GS Caltex, the group’s core company, from KRW 3.9795 trillion (US$ 2.87 billion) in 2022 to KRW 548 billion (US$ 395 million) last year. Another pillar, GS Retail, also saw its consolidated operating profit fall from KRW 290 billion (US$ 209 million) to KRW 239.1 billion (US$ 172.4 million) over the same period. GS Engineering & Construction’s operating profit was halved from KRW 554.8 billion (US$ 400 million) to KRW 286 billion (US$ 206.2 million) over the past two years. Chairman Huh’s recent call for bold changes across the group is seen as being closely tied to the disappointing performance of its core affiliates. At the 20th anniversary ceremony held on March 30, Chairman Huh reflected, “We nurtured oil export businesses, established a distribution network, and engaged in projects that enhanced quality of life in the construction sector,” and emphasized, “We will reignite our founding spirit of change and challenge to pursue greater growth.” Since being appointed Chairman of GS Group on December 3, 2019, Huh Tae-soo has consistently advocated for change for over five years. However, in light of the 20th anniversary, the performance trends of key affiliates, and the shifting business landscape, there is a growing perception that the weight of his leadership in 2025 carries more significance than ever before. This year also marks the beginning of a fourth-generation owner-executive regime across all three of GS Group’s main business pillars. Starting with Hur Sae-hong’s appointment as CEO of GS Caltex in 2019, followed by Huh Yoon-hong at GS E&C last year, and now Huh Seo-hong becoming CEO of GS Retail this year. As the three fourth-generation leaders are also seen as potential successors to Chairman Huh Tae-soo, competition among them in managing major affiliates is expected to intensify. With each affiliate facing performance fluctuations, the immediate task for these leaders is to restore earnings and enhance stability. Born in 1969, Hur Sae-hong is in his seventh year leading GS Caltex, the group’s largest affiliate, and is considered to have proven his management capability to some extent. However, just two years after achieving record operating profit in 2022, the figure has dwindled to one-eighth its former size. The high dependency on the refining business, which accounts for 80% of total revenue, remains a pressing concern. Depending on market conditions such as oil prices and refining margins, what is currently the group’s largest cash cow could potentially generate operating losses—a looming uncertainty. After a KRW 2.7 trillion (US$ 1.95 billion) investment in the Mixed Feed Cracker (MFC) petrochemical plant completed in Q3 2021, the success of Hur Sae-hong’s biofuel initiatives, such as sustainable aviation fuel and marine biofuel, is expected to be critical for business recovery and stability. Born in 1979, Huh Yoon-hong is credited with successfully resolving an estimated KRW 400 billion (US$ 288 million) operating loss within a year following the 2023 Gimpo Geomdan accident and cost reassessment. However, with the construction sector hitting bottom, GS E&C’s already modest operating margin has dropped to around 2%, and concerns are also being raised about its financial stability. Having paused new business expansions such as the sale of GS Inima, Huh Yoon-hong’s focus on internal stability will make visible performance improvement even more critical from this year. Born in 1977, Huh Seo-hong moved from the holding company to GS Retail last year, took charge of the management strategy SU, and was promoted to CEO within a year. As he only recently joined GS Retail, much attention is being paid to how he will lead profit-oriented performance improvements and draw a future vision in the distribution sector, which is expected to face structural shifts across the industry. There is a growing view that the future performance of GS Group’s fourth-generation owner-executives will also be judged by how effectively they utilize AI. GS Group has long maintained a conservative management style and is often criticized for lacking visible innovation under Chairman Huh Tae-soo. However, Huh has recently placed AI at the forefront of the group’s transformation agenda. Since his appointment, he has institutionalized the GS Group hackathon and AI/digital councils, emphasizing improvements in work efficiency, customer experience, and business model development through AI. Having led the digital transformation of GS Home Shopping and ascended to the group’s chairmanship based on that achievement, Huh Tae-soo was recently appointed as the inaugural chairman of the Korea Employers Federation’s “AI Innovation Committee.” Hur Sae-hong is promoting a sustainable growth strategy under the banner of “Digital Transformation (DX),” aiming to strategically utilize data and convert it into business value. GS Caltex plans to use AI to enhance the efficiency of its oil refining and chemical processes, which generate massive real-time data, and to reduce greenhouse gas emissions—an industry-wide challenge. Specifically, in July of last year, the Ministry of Trade, Industry and Energy designated GS Caltex as the anchor company for the petrochemical sector in the newly launched “AI Autonomous Manufacturing Alliance.” The company is participating in the ministry’s “AI Autonomous Manufacturing Leading Project” to optimize processes and reduce emissions through 2028. Earlier this month, Huh Yoon-hong set AI as the theme of a GS E&C executive workshop, stating that it is “a matter of survival, not choice,” and is striving to identify AI technologies that can be practically applied in field operations rather than as symbolic slogans. GS E&C aims to actively apply AI to address issues such as declining skilled labor at construction sites, enhance safety with robotics, cut costs to offset profitability declines, and meet digital technology requirements for public sector bids. Under the leadership of Huh Seo-hong, GS Retail has designated AI as essential for survival in 2025, focusing on areas such as customer analysis, product development, logistics optimization, and business model advancement, and plans to concentrate its future investments accordingly. Last month, GS Retail announced plans to move beyond digital transformation and pursue “AI Transformation (AX).” This initiative will use generative AI technology to collect consumer feedback (VOC) from various channels and provide necessary information to convenience store operators. At an AI/digital council meeting in February attended by top GS Group executives, Chairman Huh Tae-soo stated, “We don’t manufacture products like AI semiconductors, but if we manage our data as assets and use AI to transform our business and create new value, we will become true winners beyond just technology.” #GSGROUP #HuhTaesoo #HurSaehong #HuhYoonhong #HuhSeohong #GSCaltex #GSEnc #GSRetail #AITransformation #DigitalInnovation #BusinessLeadership #FourthGenerationManagement #KoreanConglomerate #ESG #Biofuel #SmartManufacturing #CorporateStrategy
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- Korea Investment Rewards Talent Like Pro Baseball, Kim Nam-goo Follows Father’s Lead
- Kim Nam-goo, Chairman and CEO of Korea Investment Holdings, is known for his ambition in a positive sense. If he determines that a company acquisition or merger (M&A) is essential for the future of the group, he proceeds aggressively. He does not hide his desire for talent either. Although he rarely engages in public activities, he always attends university recruitment presentations to deliver lectures. Even now, as the company holds the No. 1 spot in the Korean securities industry, he continues to push forward into global markets. ◆ Leading Growth through Aggressive M&A Chairman Kim Nam-goo recently signaled the start of Korea Investment Holdings’ transformation from a securities-centered financial holding company into a comprehensive financial group by officially pursuing the acquisition of an insurance company. On March 28, after the regular shareholders’ meeting, when asked by reporters about the insurance acquisition, Kim replied, “It’s one of the matters we’re reviewing,” and added, “We’re observing the situation.” He continued, “Since insurance is new to us, there’s a lot to consider,” and said, “It would be great to move quickly, but it will likely take some time.” Korea Investment Holdings currently owns subsidiaries such as Korea Investment & Securities, Korea Investment Savings Bank, Korea Investment Capital, and Korea Investment Real Estate Trust. Since it does not yet own an insurance company, discussions have arisen around the need to diversify the portfolio by acquiring one. Chairman Kim is reportedly focused on life insurance companies rather than non-life insurers, due to the greater efficiency in asset management. Compared to non-life insurance, life insurance has longer maturities and larger sums, making it more synergistic with Korea Investment Holdings’ investment-oriented portfolio. Since 2004, when he split from Dongwon Group, Kim has expanded the group through a series of acquisitions and mergers. One of his most notable M&A successes was the acquisition of Korea Investment & Securities while serving as CEO of Dongwon Financial Holdings. When Kim inherited Dongwon Group’s financial affiliates, Dongwon Securities was only a mid-tier securities firm ranked around 7th or 8th in the industry. To break through the dominance of Samsung Securities, KDB Daewoo Securities, and Woori Investment & Securities, he urgently needed a breakthrough—and that’s when he set his eyes on Korea Investment & Securities. Korea Investment & Securities originated as Korea Investment Trust, the country’s first investment trust company founded in August 1974 with investments from five commercial banks and 27 securities firms. The company suffered during the 1997 Asian financial crisis, and its problems worsened with the Daewoo crisis in 1999. The government injected about KRW 6.555 trillion (US$ 4.73 billion) in public funds to rescue it. In 2004, the government decided to sell Korea Investment & Securities and initiated the bidding process by sending requests for acquisition proposals to domestic and international financial institutions. Kim saw the acquisition of the larger Korea Investment & Securities as a decisive moment for the fate of Dongwon Financial Holdings. He decided to invest KRW 541.2 billion (US$ 390.1 million) to acquire the company. Although Dongwon Securities executives and his father, Kim Jae-chul, Honorary Chairman of Dongwon Group, opposed the decision, they were unable to overturn his determination. Ultimately, Kim’s acquisition of Korea Investment & Securities proved to be a masterstroke. After the deal, he renamed the group Korea Investment Holdings. The company he acquired for KRW 541.2 billion (US$ 390.1 million) now earns more than KRW 1 trillion (US$ 720 million) in net profit annually and has become the No. 1 securities firm in Korea. After the Korea Investment & Securities acquisition, Kim Nam-goo continued to explore major M&A opportunities. Although he ultimately failed, he pursued the acquisitions of Hyundai Securities and Daewoo Securities with a vision of building a mega-investment bank (mega-IB). He also indirectly expanded his banking portfolio through stake acquisitions in Woori Financial Group and KakaoBank. ◆ The Talent-Driven, Performance-Based Culture Rooted in 'Dongwon' at Korea Investment Kim Jae-chul, Honorary Chairman of Dongwon Group, was passionate about cultivating talent, and Kim Nam-goo has inherited that philosophy, establishing a talent-centric, performance-based culture at Korea Investment & Securities. Since 2003, when the company was still Dongwon Securities, Kim has never missed a single university recruitment presentation. Except for 2020 and 2021, which were held online due to COVID-19, he has visited campuses in person to meet students. In September 2024, he visited his alma mater, Korea University, and said, “It’s time for Korea’s financial industry to rise to the global level,” emphasizing, “We need talent to take that leap with us.” He is also known for personally serving as the final interviewer during the recruitment of new employees at Korea Investment & Securities. Kim ensures that employees who achieve exceptional results receive generous financial rewards. According to Korea Investment & Securities’ business report, Lee Jung-ran, Deputy Department Head of the Sales Division, received KRW 2.19488 billion (US$ 1.58 million) in total compensation for 2024—83.7% more than CEO Kim Sung-hwan, who received KRW 1.19471 billion (US$ 861,200). Breaking it down, Lee earned KRW 2.07412 billion (US$ 1.49 million) in performance bonuses, KRW 110.92 million (US$ 79,980) in salary, and KRW 9.83 million (US$ 7,090) in benefits. During the Korea University recruitment event on September 12, 2024, Kim said, “Korea Investment & Securities is like professional baseball—economic rewards are based on ability and achievements,” and added, “The higher you go in our company, the harder it gets, but our reward system is that much stronger.” This principle of valuing talent was passed down from Honorary Chairman Kim Jae-chul. In the late 1980s, Kim Jae-chul introduced the first performance-based compensation system in the Korean securities industry. He also implemented the first stock option program in Korea’s financial sector. His belief in rewarding top performers generously was shaped by his early career as a deep-sea fishing vessel captain. While working in the harsh and primitive fisheries industry, he realized that rewarding workers based on performance was essential. He learned that fishermen worked harder when they earned more for catching more tuna. In a 2019 lecture at Seoul National University of Education, Kim Jae-chul said, “Fishermen earn more when they catch more fish and less when they catch less,” and added, “I applied the same logic to our securities firm, and people started working with fire in their eyes.” He continued, “The reason Korea Investment Holdings is doing well now is because we give the best treatment to the best people in the country.” In 1979, ten years after founding Dongwon Industries, Kim Jae-chul established the Dongwon Education Foundation. The foundation has since provided scholarships to more than 10,000 students, totaling approximately KRW 60 billion (US$ 43.3 million). In 2020, he donated KRW 50 billion (US$ 36.1 million) to KAIST to support artificial intelligence (AI) education and research infrastructure. In 2024, he donated an additional KRW 4.4 billion (US$ 3.17 million), asking KAIST to elevate its AI research level from the global top 5 to No. 1. KAIST plans to use his donation to build an AI Education and Research Center, with one basement level and eight floors above ground, covering a total area of 18,182 square meters. Once completed in February 2028, the center will accommodate 50 professors and 1,000 students for AI-related education and research. Kim Jae-chul said, “In my youth, I looked to the blue oceans of the world for Korea’s future, but in the age of AI, our new future lies in a sea of data,” and added, “I hope Korea can become a leader in the great data era by cultivating global talent who will lead the Fourth Industrial Revolution.” #KimNamgoo #KoreaInvestmentHoldings #PerformanceCulture #TalentManagement #KimJaechul #DongwonGroup #KoreaUniversity #Scholarship #KAISTDonation #AILeadership
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- SK Group Adds SK Siltron to ‘Rebalancing’; Why Is Chey Tae-won Dropping Semiconductor Integration?
- SK Group appears to have effectively abandoned its semiconductor vertical integration strategy as it pushes forward with plans to sell management control of SK Siltron, its wafer-manufacturing subsidiary. While owning a semiconductor materials subsidiary helps secure supply chain stability, it also imposes heavy investment burdens and makes it harder to respond flexibly to changes in market conditions. Chey Tae-won, Chairman of SK Group, is understood to have shifted his focus away from vertical integration toward a strategy of acquiring stakes in promising global semiconductor materials, parts, and equipment (SMPE) companies to strengthen supply chain partnerships and secure next-generation semiconductor technologies. According to business sources on April 9, SK is reportedly reviewing SK Siltron as part of its business portfolio rebalancing efforts, signaling a major shift in its semiconductor strategy. SK Siltron is the only domestic manufacturer of semiconductor wafers and has been considered a key affiliate within the group, to the extent that Chairman Chey personally holds a stake in the company. SK Group laid the foundation for semiconductor vertical integration by acquiring semiconductor gas company SK Materials in 2016 and wafer specialist SK Siltron in 2017, moves that were considered successful. SK Siltron’s revenue grew from KRW 933.1 billion (US$ 672.5 million) in 2017 to KRW 2.1268 trillion (US$ 1.5335 billion) in 2024. Last year, its EBITDA reached KRW 640 billion (US$ 461.4 million). The company is estimated to be worth around KRW 5 trillion (US$ 3.604 billion). SK currently owns a 51% stake in SK Siltron and holds an additional 19.6% via a total return swap (TRS). Chairman Chey also personally holds a 29.4% stake through TRS. SK is reportedly in negotiations with private equity firm Hahn & Company to sell 70.6% of the stake, excluding the shares held by Chairman Chey. SK stated on this day, “Various strategic options, including a stake sale of SK Siltron, are being reviewed, but nothing has been confirmed as of now.” Since last year, SK Group has been restructuring its semiconductor business as part of its “rebalancing” initiative. On April 1, SK Enpulse, a semiconductor materials subsidiary of SKC, sold its CMP pad business—key components used in semiconductor planarization processes—to Hahn & Company for KRW 341 billion (US$ 245.8 million). In 2023, it also sold its wet chemical and cleaning businesses to China. In March of this year, SK hynix exited the CMOS image sensor (CIS) business and reassigned related personnel to high-bandwidth memory (HBM) and other AI-related memory fields. As SK scales back its involvement in wafer manufacturing, basic materials, and image sensors, the vertical integration chain it had built through mergers and acquisitions has weakened. This shift is seen as a move to build a semiconductor supply chain ecosystem by investing in shares of partner companies rather than continuing full vertical integration. While vertical integration offers advantages like supply chain stability and cost competitiveness, it also requires continuous large-scale capital investment and lacks agility in adapting to market fluctuations. In particular, the semiconductor industry is increasingly moving away from the integrated device manufacturer (IDM) model—where all processes are internalized—and toward specialization by companies in individual segments. Even if SK sells its stake in SK Siltron, the fact that Chairman Chey still owns shares is seen as a safeguard, minimizing the risk of disruptions in wafer supply to SK hynix. Chairman Chey is believed to be focusing on securing funds through the sale to invest in promising semiconductor SMPE companies and AI platforms as future growth drivers, instead of continuing with vertical integration. SK’s investment arm, SK Square, has recently reinforced its dedicated team for AI and semiconductor investments and is investing in semiconductor SMPE firms in the U.S. and Japan. The company is expected to announce its portfolio companies soon. SK Group is also increasing investments in next-generation semiconductor businesses such as silicon carbide (SiC)-based power semiconductors and semiconductor glass substrates. A source in the semiconductor industry said, “Chairman Chey Tae-won has driven SK Group’s ‘quantum jump’ through vertical integration of core business units, and semiconductors have been the most successful among them,” and added, “However, given the significant performance fluctuations depending on market cycles and the rising investment burden in each segment, he seems to have decided that a strategy of ‘selection and concentration’ is necessary.” #SKGroup #CheyTaewon #SKSiltron #SemiconductorStrategy #VerticalIntegration #SMPE #SupplyChain #HBM #AIinvestment #SKSquare
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- Shinhan Financial’s Jin Ok-dong Heads to Central Asia, Boosts Business in Kazakhstan and Uzbekistan
- Jin Ok-dong, Chairman of Shinhan Financial Group, is flying to Central Asia to personally oversee operations in Kazakhstan and Uzbekistan. Kazakhstan has recently emerged as a key business site for Shinhan Financial, while Uzbekistan is a market where the group is preparing for further expansion. Following his focus on Southeast Asia, including Vietnam and Indonesia, Chairman Jin is now accelerating efforts to diversify the group’s regional portfolio by marking Central Asia as a strategic overseas business hub. According to financial industry sources on April 9, Chairman Jin departed the previous day to carry out his business trip to Central Asia, which includes visits to Kazakhstan and Uzbekistan. This marks Chairman Jin’s first visit to Central Asia since taking office. Shinhan Financial currently operates a bank and card subsidiary in Kazakhstan and a bank representative office in Uzbekistan. During this trip, Chairman Jin is expected to visit the local subsidiaries and office and meet with key authorities in each country to discuss business expansion. His visit carries significant meaning in the context of Shinhan Financial’s expansion into the Central Asian market. Chairman Jin has publicly expressed his strong intention to grow the group’s presence in Central Asia. At an investor relations (IR) event held in Hong Kong in November last year, he named Kazakhstan, Uzbekistan, and Poland as the three top-priority regions for additional overseas expansion. Kazakhstan has become a core business site for Shinhan Financial in recent years. Last year, Shinhan Bank posted a net profit of KRW 103.1 billion (US$ 74.3 million) in Kazakhstan. This represents a 50% increase from 2023 and more than a tenfold increase compared to 2022. Kazakhstan has emerged as a financial haven amid the war between Ukraine and Russia, driving growth in the financial market and significantly boosting Shinhan Bank’s net profits. In a recent letter to shareholders, Chairman Jin mentioned Kazakhstan directly, saying, “Kazakhstan has shown remarkable growth over the past two years, contributing to the diversification of our regional portfolio in overseas business.” Uzbekistan is considered a country where Shinhan Financial is preparing to expand its presence. Last year, Shinhan Bank appointed a new representative for its Uzbekistan office. Shinhan Bank established this office in 2009. Since 2016, the representative of Shinhan Kazakhstan Bank had concurrently held the post of head of the Uzbekistan office, but after nine years, additional personnel were dispatched. Uzbekistan is pursuing privatization to enhance the competitiveness of its banking industry at the government level, leading many to see it as a land of opportunity for Korean banks. In addition to Shinhan Financial, domestic institutions such as BNK Financial are also preparing to expand into Uzbekistan. Shinhan Financial is considered to have unmatched competitiveness in overseas business among Korean financial holding companies. Last year, Shinhan Financial recorded a net profit of KRW 758.9 billion (US$ 547.1 million) from its global business, a 38% increase from 2023. As a result, the global business portion of total group earnings rose to a record high, from 12.6% in 2023 to 16.8% in 2024. In his shareholder meeting speech in March, Chairman Jin highlighted overseas business as one of last year’s key achievements, stating, “Overseas earnings grew 38.1% year-on-year to achieve a record performance.” Chairman Jin has also drawn up plans to continue expanding overseas operations this year. Internally, the group is reportedly targeting KRW 1 trillion (US$ 720.9 million) in net profit from global business. In his recent shareholder letter, Chairman Jin again underscored his commitment to global market expansion. He stated, “We will continue to strengthen our differentiated capabilities in overseas business this year,” and added, “We will expand our business model to other countries based on our successful experiences in Vietnam and Japan.” #ShinhanFinancialGroup #JinOkdong #Kazakhstan #Uzbekistan #GlobalBanking #Kfinance #OverseasExpansion #EmergingMarkets #CentralAsia #FinancialIndustry
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- Can Krafton's inZOI Take on EA's The Sims and Win?, Kim Chang-han’s Sharp Eye for Gaming Trends
- “When Kim Chang-han first told me about making PUBG, it was during a one-hour tea time we had scheduled during G-Star. I still vividly remember the feeling I got during that hour. Everything he said during that tea time ‘made sense.’” This is a recollection from Jang Byung-gyu, Chairman of the Board at Krafton, about when he first heard the concept for “PUBG: BATTLEGROUNDS” from CEO Kim Chang-han. In 2015, Kim Chang-han wrote a 48-page project proposal for an online PC game and presented it to the management of Bluehole, including Chairman Jang. PUBG, which would go on to make a mark in the history of the global gaming industry, was born this way. Chairman Jang is known to have jokingly told Kim, “If you sell 2 million copies of PUBG, you can retire.” As of now, PUBG’s cumulative sales have reached approximately 70 million copies. Now, Kim Chang-han has set his sights on a new market—the life simulation genre, currently dominated by EA’s “The Sims” series, which has sold a cumulative 200 million copies. ◆ Battle Royale Was Just a Mod—Kim Chang-han Made It a Genre The success of PUBG was possible because CEO Kim had an eye for reading trends in the game industry. When PUBG was released in 2017, the battle royale or survival shooter format was still considered a niche genre in the global gaming scene. To be precise, it wasn’t even recognized as a “genre.” At the time, battle royale modes were seen as sub-modes within FPS (First-Person Shooter) games like ARMA. However, Kim recognized the potential of the battle royale mode. By pulling it out of the FPS subcategory and launching it as a standalone genre, PUBG quickly reshaped the landscape of the global gaming industry. Following PUBG’s success, global game company Epic Games released “Fortnite,” which adopted a similar format, pushing the battle royale genre into the mainstream of the global game market. Krafton rose to become a leading game company in South Korea. ◆ Kim Chang-han's Next Focus: Life Simulation, a Market with a Dominant Player The genre that CEO Kim is now focusing on is life simulation. Life simulation aims to recreate human life within a game. The genre was pioneered in 2000 by Maxis with the release of “The Sims.” EA later acquired Maxis and went on to develop The Sims 2, 3, and 4. The Sims series has sold over 200 million copies over the past 25 years. On March 28, Krafton released the early access version of its life simulation game “inZOI.” CEO Kim declared his vision to turn inZOI into a long-term franchise, clearly stating that the target is “The Sims series.” At Krafton’s shareholders’ meeting on March 26, Kim said, “inZOI is a genre aimed at a user base similar to that of The Sims series,” and “it’s a project that can become a franchise from a long-term perspective.” Rather than simply making a one-time profit by releasing the game at launch, the goal is to continuously supply content through expansion packs and DLCs (Downloadable Content) over several years. In fact, “The Sims 4,” which was released in 2014, is still releasing new DLCs even ten years later. ◆ Can inZOI Be a Real Alternative to The Sims? It’s Possible inZOI is a game in which users create their own avatars, live daily lives in a virtual city, form relationships with other characters, and expand their experiences. Unlike PUBG, which has clear winners and losers and where physical skill matters, inZOI allows users to enjoy the game however they want, making it appealing to a much broader audience. It also has high global expansion potential. Most notably, “The Sims series” has not released a new installment since “The Sims 4” in 2014, leading to growing dissatisfaction among users. Some suggest that if CEO Kim and Krafton can seize this gap, inZOI could potentially replace The Sims. The rising global interest in Korean culture, driven by K-pop and K-dramas, is also a positive factor for inZOI’s success. inZOI currently offers two maps: “Dowon,” which resembles a major South Korean city, and “Bliss Bay,” reminiscent of a coastal U.S. city. Dowon, in particular, has been praised for its realistic depiction of Korean urban life. ◆ Will Kim Chang-han’s Second Insight Hit the Global Trend Again? CEO Kim Chang-han is someone who has already successfully identified a global trend once. inZOI is a project that has been in the works internally for several years, and Kim has been deeply involved from the early stages, aiming to make it Krafton’s new growth engine. Whether Krafton can create another “post-battle royale success story” in the global life simulation market shaped by The Sims is a question now put to the test by Kim Chang-han’s decisions and execution. A source in the gaming industry said, “User response to the early access version of inZOI is very positive,” and added, “Although there are complaints about a lack of content, The Sims series also faced such criticism early on, and this is something that can be improved through future updates.” #KimChanghan #Krafton #PUBG #inZOI #TheSims #LifeSimulation #BattleRoyale #Kgame #Kculture #GamingIndustry
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- LG Chem Sees Hope for Rebound in Q1, Shin Hak-cheol on Edge Amid Tariff War Uncertainty
- Shin Hak-cheol, Vice Chairman and CEO of LG Chem, appears to have laid the foundation for a performance rebound after receiving a solid report card in the first quarter of this year. However, with economic uncertainty increasing worldwide due to the tariff war sparked by U.S. President Donald Trump, it is believed that Vice Chairman Shin cannot afford to let his guard down. According to analysis compiled by the securities industry on April 8, LG Chem is estimated to have recorded consolidated sales of between KRW 11.7 trillion and KRW 11.8 trillion (US$ 8.4 billion to US$ 8.5 billion), and an operating profit of between KRW 140 billion and KRW 170 billion (US$ 100.9 million to US$ 122.6 million) in the first quarter of this year. Considering that the market consensus for LG Chem’s operating profit was around KRW 70 billion (US$ 50.5 million), the company is widely believed to have significantly exceeded expectations. In the fourth quarter of last year, LG Chem posted an operating loss for the first time in five years since the fourth quarter of 2019. Given this, returning to profitability in just one quarter is likely to hold special significance for Vice Chairman Shin. In line with the performance rebound, Vice Chairman Shin is also focusing on financial restructuring, including workforce reallocation in the battery separator business, re-evaluation of existing investment plans, asset sales, and structural adjustments. Hwang Kyu-won, an analyst at Yuanta Securities, said, “LG Chem’s first-quarter results may offer a glimpse of recovery in the petrochemical sector,” adding, “Efforts to reduce financial burdens in the first half of this year could help the stock price recover.” However, while Vice Chairman Shin is actively working to overcome the crisis, President Trump has escalated the tariff war, heightening overall uncertainty in the global economy. Starting from April 5 (local time), a basic tariff of 10% is being imposed on all imported goods entering the United States. From April 9, additional reciprocal tariffs, set by country, will also be imposed. On April 8, President Trump said, “We are not considering delaying reciprocal tariffs,” and added, “Reciprocal tariffs could be permanent or negotiable.” There are varied analyses regarding the impact of the rising tariff barriers in the U.S. on LG Chem. Most analysts believe that LG Chem will not be significantly affected by U.S. tariffs directly, as the company does not export large volumes of generic basic materials from Korea to the U.S. Instead, it exports high-value-added products such as cathode materials used in battery manufacturing. Moreover, since December 2023, LG Chem has been investing KRW 2 trillion (US$ 1.44 billion) in Tennessee to build a cathode material production plant in the United States. The Tennessee plant is scheduled to begin operations next year. This means LG Chem had already taken preemptive measures ahead of the tariff war. Kang Dong-jin, an analyst at Hyundai Motor Securities, said, “Among domestic cathode material manufacturers, LG Chem is the only one preparing to operate a production plant in the U.S.,” and added, “With the announcement of reciprocal tariffs, duties on imported battery materials will increase, which could enhance LG Chem’s bargaining power.” However, concerns have emerged that Korean companies, including LG Chem, could still be affected, especially since the U.S. has imposed a reciprocal tariff of 46%, the highest level, on imports from Vietnam. At the group level, LG operates 12 local subsidiaries in Vietnam—including 7 production facilities—through LG Chem, LG Electronics, LG Display, and LG Innotek. Specifically, LG Chem produces engineering plastics and polarizing films through a local subsidiary in the Hai Phong economic zone and operates a joint venture lithium-ion battery pack plant with Vietnamese automaker VinFast. If overall tariffs on U.S. imports rise significantly, it could shrink U.S. consumption and, in the long term, lead to a global economic slowdown—another negative factor for LG Chem. William Dudley, former President of the Federal Reserve Bank of New York, wrote in a Bloomberg column on April 7 that in light of President Trump’s tariff policy, “Stagflation is the optimistic scenario,” and warned, “The most likely outcome is a full-blown recession accompanied by higher inflation.” Since the petrochemical industry is particularly sensitive to the global economic cycle, a prolonged tariff war could negatively affect the performance of LG Chem and other Korean petrochemical companies. Kang Dong-jin stated, “The biggest uncertainty for Korea’s chemical industry in terms of tariffs is the restructuring of supply chains due to the retreat from free trade,” adding, “This could pose risks for Korean companies like LG Chem, which rely on naphtha cracking centers (NCCs).” #LGChem #ShinHakcheol #USChinaTariffWar #CathodeMaterials #BatteryMaterials #GlobalEconomy #TrumpTariffs #VietnamTariffs #PetrochemicalIndustry #FinancialRestructuring
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- Han Sang-woo Faces Tough Year at Kakao Games; Hopes on Upcoming Titles
- Han Sang-woo, CEO of Kakao Games, appears to be facing another tough year following a turnaround to operating loss at the end of last year. With declining revenue from existing major titles, underperformance of new releases, and restructuring of subsidiaries, it is proving difficult to find momentum for a rebound beyond expectations for new games in the second half of the year. According to the securities industry on April 8, Kakao Games is likely to continue posting operating losses through the first half of this year. Kakao Games recorded an operating profit of KRW 19.1 billion (US$ 13.8 million) on a consolidated basis last year, down approximately 74.6% from the previous year. The company barely avoided a loss in the third quarter but fell into the red in the fourth quarter. In this context, the outlook for this year’s performance is also grim. Market research firm FnGuide estimates that Kakao Games will post KRW 161.3 billion (US$ 116.3 million) in revenue and KRW 4.1 billion (US$ 3.0 million) in operating losses in the first quarter. This reflects a decline in revenue and a widening of losses compared to the previous quarter. ◆ Operating losses likely in the first half, new releases lack impact “Valhalla Survival,” a new title released earlier this year by subsidiary Lion Studios, failed to gain traction in the market, contrary to expectations. The company’s main revenue driver, “Odin: Valhalla Rising,” is now in its third year since launch and has naturally seen a decline in revenue. Other titles such as “ArcheAge War” and “Uma Musume” are in similar situations. Amid these challenges, CEO Han Sang-woo is trying to hold the line by expanding global services for existing games like Odin. Kakao Games plans to launch Odin globally on April 29, following its release in South Korea, Taiwan, and Japan. In last year’s annual conference call, Han stated, “We will enter the global market, focusing on North America and Europe, through the release of major PC and console titles,” and added, “We will target and invest in China and Japan according to each market’s characteristics.” Although the role of the CEO—who has extensive experience in global gaming—is becoming increasingly important, there are doubts that expanding overseas services of existing titles alone can effectively protect earnings. In response, Kakao Games is expected to accelerate its restructuring efforts. After selling its stake in Senna Technology last year, the company has now classified Kakao VX as a discontinued business and is pushing for organizational restructuring by scaling down some subsidiaries. While this is positive from a cost-efficiency perspective, it is unlikely to help short-term performance, as the subsidiaries being trimmed did contribute to overall revenue. Since the company is now refocusing on its core game business, its financial results will likely become more sensitive to the success or failure of new releases. ◆ Low expectations for rebound, new titles hold the key For now, expectations for a performance rebound within the industry and market are low. Kakao Games' stock price has dropped significantly from its peak of around KRW 110,000 in November 2021. On April 8, Kakao Games closed at KRW 13,470 (US$ 9.7). The convertible bonds (CBs) issued in March 2021 have mostly been redeemed early, totaling around KRW 500 billion (US$ 360.5 million). Despite offering a 0% interest rate at issuance, investors have opted for early redemption, interpreting the current low stock price as a sign of little potential for a rebound. Ultimately, the only real solution for a performance recovery appears to lie in the success of blockbuster new titles. The main rebound drivers are expected to be upcoming games such as “Project Q,” “Chrono Odyssey,” and “ArcheAge War: Chronicle,” scheduled for release from the second half of this year through the first half of next year. “Project Q” is a mobile MMORPG based on the Odin IP (intellectual property), while “Chrono Odyssey” is Kakao Games' first console title and is drawing attention. “ArcheAge War: Chronicle” is also an MMORPG based on the original ArcheAge War. Han was appointed CEO of Kakao Games in March 2023. He was expected to lead the company back onto a growth trajectory by strengthening its global competitiveness. However, last year he lacked opportunities to prove his capabilities due to the absence of major new releases. #HanSangwoo #KakaoGames #GameIndustry #MMORPG #ProjectQ #ChronoOdyssey #ArcheAgeWar #GameDevelopment #KoreanGaming #BusinessTurnaround
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- Where Is the “Basic” NCSoft Wants to Return To? We Miss the Kim Taek-jin Who Once Tried to Acquire EA
- “Game design, technology—these are the fundamentals we must return to. We will strive to create fun games through technical innovation and communication with our users, just like the days when every employee moved in one direction with a shared vision.” This is what Park Byung-moo, CEO of NCSoft, said at the company’s annual general meeting held on March 26, 2025. NCSoft was once a powerhouse that dominated the mobile gaming market. No one questioned that NCSoft was the leading figure among the so-called “3N” major Korean game companies. Now, NCSoft is talking about going “back to basics.” So what exactly does “the basics” mean to NCSoft and its founder Kim Taek-jin? Could it be the era when the three mobile Lineage games—Lineage M, Lineage 2M, and Lineage W—topped the domestic app store revenue charts, occupying the first to third positions? Or is it even further back—when Kim Taek-jin was pounding on his keyboard, pondering “what is a game?” ◆ The golden age of the Lineage trilogy: glory or the beginning of decline? The three mobile Lineage games—Lineage M, Lineage 2M, and Lineage W—delivered overwhelming revenue to NCSoft. They generated more money in the relatively small Korean market than globally released “AAA” games that required hundreds of billions of won to develop. Without a doubt, the Lineage trilogy was a “cash cow” for NCSoft. However, this spectacular success also marked the beginning of the company’s decline. Excessive monetization, gambling-like elements, and mechanics that encouraged endless competition and hostility among users became widespread in the Korean game industry, under the name “Lineage-like.” A figure in the game industry said, “Since the flood of Lineage-like games, the Korean gaming industry has lost its vitality,” adding, “Lineage-like has now become a term of ridicule among gamers.” ◆ When Kim Taek-jin’s success became a liability for NCSoft What’s most painful for NCSoft is that, after the success of the Lineage trilogy, the company became complacent with its high profitability and user loyalty and failed to adapt to the fast-changing global gaming market. From that point, NCSoft began focusing more on short-term domestic profits rather than global expansion. R&D also leaned toward maximizing revenue through monetization models instead of focusing on game quality. The success of the Lineage trilogy began to act as a “poison” to both Kim Taek-jin and NCSoft. The core design of pushing users into extreme competition and spending remained intact, even as the game visuals evolved to appeal to younger players—earning NCSoft the humiliating nickname “dog meat tanghulu” (a flashy exterior with poor substance). Interestingly, the original vision Kim Taek-jin had for Lineage was entirely different from what it has become today. ◆ Kim Taek-jin’s original “basics”: the developer spirit of early Lineage In 1998, Kim Taek-jin introduced Lineage, a PC-based massively multiplayer online role-playing game (MMORPG). To Kim, games were not just entertainment—they were a microcosm of society. At a time when the concept of monetization didn’t even exist, he tried to build a joyful world within Lineage. “You can’t create a great game without understanding people. Games should be a source of joy in life, not something that destroys it.” These were Kim’s words in a 2002 interview with Chosun Biz, at the height of PC Lineage’s popularity. At the time, NCSoft played a critical role in the overall growth of Korea’s gaming industry. It helped establish the MMORPG genre in Korea and shifted the public perception of games into one of valuable content industries worth national-level investment. Kim also took the lead in fighting social prejudice that blamed games for many societal problems. When the Korea Media Rating Board gave Lineage an “18+” rating in 2002, Kim expressed his frustration in a media interview, saying, “I felt deeply insulted that Lineage was treated like pornography.” ◆ The businessman Kim Taek-jin and his dream of acquiring EA: where is the global NCSoft? Kim wasn’t only a developer—he was also a businessman with a different vision than what we see today. In 2012, he attempted to acquire EA, a global gaming giant. He partnered with Nexon in an effort to secure global IPs. EA owns numerous global hits, including the FIFA series, Battlefield series, and The Sims series. Kim aimed to build a foundation that would enable NCSoft to compete on the world stage through those titles. Although the acquisition ultimately fell through, the attempt contrasts sharply with NCSoft’s current focus on the domestic market. Kim has consistently emphasized “global expansion.” “Our top priority is to solidify our position as a global game company.” “We will grow into a comprehensive global game enterprise.” These are remarks Kim made at NCSoft’s general shareholder meetings in 2022 and 2020, respectively. In 2024, NCSoft posted KRW 543.7 billion (US$ 392.1 million) in overseas revenue on a consolidated basis. This accounted for 34.4% of its total revenue. In comparison, Netmarble and Krafton earned 79.3% and 92.8% of their revenue overseas during the same period. ◆ Competitors are realizing the dream Kim once had Shortly after the EA acquisition attempt failed, Kim said at G-STAR 2012 in November, “Now, NCSoft must work to gain global recognition.” Today, it seems other Korean game companies—not NCSoft—are the ones making efforts to create globally recognized games. Neowiz tapped into the global console market in 2023 with “Lies of P,” while Shift Up did the same in 2024 with “Stellar Blade.” Both games were praised for their gameplay, creativity, and commercial success. Netmarble has actively pursued the global market by securing international IPs like Disney, Marvel, and DC. ◆ If NCSoft is “going back to basics,” what are the true basics it must return to? “To grow again, NCSoft must return to the entrepreneurial spirit it started with.” This was stated by Kim Taek-jin in a New Year’s message for 2025, delivered together with co-CEO Park Byung-moo. This suggests that even Kim recognizes that the true “basics” of NCSoft lie not in the Lineage trilogy, but in the early days of MMORPG development—when global expansion was more than a slogan; it was a dream. A game industry insider commented, “What NCSoft has lost isn’t just revenue or operating profit, but its vision and trust as a game company,” adding, “To become a truly global game developer, NCSoft must first regain the trust of gamers.” #NCSoft #KimTaekjin #ParkByungmoo #Lineage #LineageM #Lineage2M #LineageW #GlobalGaming #GameIndustry #BackToBasics
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- Samsung Accelerates Image Sensor Push, Park Yong-in Expands Client Base from Google to Chinese Manufacturers
- Samsung Electronics is rapidly catching up to Sony in the image sensor market. Major smartphone manufacturers such as Google, as well as Chinese companies like Vivo, OPPO, and Xiaomi, are reportedly increasing their adoption of Samsung Electronics' image sensors. Park Yong-in, the President and Head of System LSI Business at Samsung Electronics' Device Solutions (DS) Division, is expected to reduce the division’s losses by leveraging advanced image sensor technology that supports up to 200 megapixels and by developing triple-stacked image sensors, aiming to win supply deals with Apple. According to industry sources on April 7, Google is expected to equip its upcoming premium smartphone, the Pixel 10 series, with Samsung’s image sensors. U.S. tech media outlet Android Authority recently reported, citing internal Google sources, that the upcoming Pixel 10, set to launch in the second half of this year, will use Samsung’s “3J1 11-megapixel” telephoto lens image sensor. Last year’s Pixel 9 did not include a telephoto lens, but Google has reportedly decided to include one starting with the Pixel 10. Observers believe Google chose Samsung over Sony for this key component. Moreover, Google’s foldable smartphone, the Pixel 10 Pro Fold, will be equipped with Samsung’s “GN8 50-megapixel” sensor for its main lens. This marks a switch from the previous generation Pixel 9 Pro Fold, which used Sony’s “IMX787 64-megapixel” sensor. In addition, all the other image sensors used in the Pixel 10 Pro Fold and Pixel 9 Pro Fold — including the ultra-wide, telephoto, and front and rear selfie camera lenses — will also be from Samsung. Chinese smartphone makers are also increasing their use of Samsung image sensors. In particular, Samsung’s 200-megapixel telephoto sensors, considered superior to Sony’s in terms of technology, are being adopted on a large scale. Dutch tech media outlet SamMobile reported on April 6 (local time) that OPPO’s upcoming premium smartphone series, the Find X9, set for release in the second half of this year, will feature Samsung’s “ISOCELL HP9 200-megapixel” telephoto image sensor. OPPO previously used Sony’s 50-megapixel telephoto sensor in its Find X8 series. OPPO continues to show strong growth, having shipped 16.9 million units in the Southeast Asian market last year, claiming the top spot with an 18% market share. Vivo, which also held a 17% market share in China last year to rank first, is expected to use Samsung’s 200-megapixel telephoto image sensor in its upcoming “X200 Ultra” smartphone, slated for release in October. Vivo used the same Samsung telephoto sensor in its previous model, the X100 Ultra. Xiaomi, currently ranked third in global smartphone market share behind Samsung and Apple, also recently equipped Samsung’s 200-megapixel telephoto image sensor in its new “Xiaomi 15 Ultra” smartphone. The device was released in February and became available in Korea starting March 25. As Samsung's image sensors begin to appear in a wider range of smartphones, the performance of the System LSI and Foundry divisions — which recorded losses of over KRW 5 trillion (US$ 3.6 billion) last year — is expected to improve. Park Yong-in is also reportedly targeting Apple as a potential customer, aiming to narrow the deficit in the non-memory business. Image sensors are designed by the System LSI division and manufactured by the Foundry division. In 2023, Sony held the top spot in the global image sensor market with a 45% share, while Samsung came in second with 19%. Sony has maintained a lead largely due to its exclusive supply of image sensors for Apple’s iPhones. Samsung is now said to be developing an image sensor for Apple’s next iPhone 18 series, scheduled for release next year. Specifically, the company is working on a triple-stacked image sensor that layers three semiconductor components — photodiode (PD), transfer (TR), and logic. Stacked image sensors significantly shorten the distance that pixel signals travel, resulting in faster data processing speeds. IT outlet WCCFTech reported, “Stacked image sensors will be one of the best upgrades for smartphone cameras,” adding, “Users will be able to instantly capture memorable moments without waiting for their devices to respond.” If Samsung succeeds in supplying image sensors to Apple, it is expected to significantly close the market share gap with Sony. Meanwhile, market research firm Omdia forecasts that the global smartphone image sensor market will grow from KRW 3.57 trillion (US$ 2.57 billion) in 2024 to KRW 43 trillion (US$ 31 billion) by 2029. #Samsung #ImageSensor #ISOCELL #Sony #GooglePixel10 #OppoFindX9 #VivoX200Ultra #Xiaomi15Ultra #ParkYongin #AppleiPhone18
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- Lee Eun-ho Reshapes Lotte Insurance Through Digital Transformation, But Sale Falls Short
- Lee Eun-ho, CEO of Lotte Insurance, is making every effort to enhance corporate value in preparation for the company’s sale. Drawing on his background as a consultant who identifies problems and proposes solutions, he has initiated a structural overhaul of Lotte Insurance. However, despite his efforts, the sale of Lotte Insurance is facing significant challenges. Concerns over declining capital adequacy and worsening profitability have led the market to increasingly lower its valuation of the company. This is why attention is now focused on whether Lee, often labeled a non-expert in insurance, can break through and successfully complete the sale. ◆ Boosting Corporate Value Through a Consultant’s Perspective Lee Eun-ho is using his experience as a financial consultant to restructure Lotte Insurance from within. He holds an MBA from INSEAD in France and built his career at consulting firms such as Oliver Wyman, A.T. Kearney Korea, and PwC Consulting. His connection with the insurance industry began in 2019 when private equity firm JKL Partners acquired Lotte Insurance, and Lee participated in the deal as a consultant. He is said to have developed concrete strategies to enhance Lotte Insurance’s value. Impressed by his performance as a consultant, JKL Partners saw Lee as the right person to address the company’s issues. He was appointed Senior Executive Vice President at Lotte Insurance in 2019 and became CEO three years later in 2022. Lee’s key initiative for structural reform has been digital transformation (DT). In a July 2022 interview with another media outlet, he said, “Insurance is a highly complex product. It’s unreasonable to expect people to visit a website or app offering dozens or hundreds of long-term plans and make informed purchases on their own.” Regarding digital transformation, he said, “Since my time as CFO two years ago, I’ve been designing and preparing what we call the ‘MARS Project.’ It aims to become a successful model for DT in insurance by maximizing the competitiveness of sales channels such as planners, agencies, and telemarketers, while revolutionizing the customer experience.” In July 2023, Lotte Insurance launched a new platform called ALICE, signaling its move toward becoming a fully digital insurer. The platform aims to offer “insurance services the world has never seen.” ALICE was created with the goal of placing insurance closer to everyday life risks. With simple authentication, customers can sign up for a variety of lifestyle-focused insurance products provided by Lotte Insurance. The platform also features an intuitive user interface with easily distinguishable color coding to improve convenience. Lee also applied digital transformation to the insurance planner system. He launched an insurance income platform called WONDER, allowing users to complete the entire sales process—from training and planning to signing and customer management—on a single smartphone, making it easy for anyone to become an insurance planner. WONDER targets Korea’s growing "N-job" workforce, where four out of ten office workers have side jobs to earn extra income. The platform offers onboarding training and practice exams for aspiring planners. Those who pass are granted the title of “Smart Planner.” As of October 2024, more than 3,000 planners had been appointed through WONDER, just ten months after its launch, according to Lotte Insurance. Lee’s strategy to focus on long-term protection-type insurance products is also believed to stem from his consulting background. To prepare for the new IFRS 17 accounting standards, he shifted the company’s portfolio toward high-margin long-term protection policies and reduced its reliance on auto insurance. As a result of this profitability-focused strategy, Lotte Insurance posted a net profit of KRW 301.6 billion (US$ 217.4 million) in 2023, successfully returning to the black with the highest performance in company history. However, in 2024, it was hit hard by worsening market conditions and delivered underwhelming results. ◆ Falling Corporate Value: Did JKL Partners Miss the Right Time to Sell? Despite Lee Eun-ho driving corporate value with record profits in 2023, JKL Partners failed to complete the sale of Lotte Insurance that year. Woori Financial Group showed interest in acquiring Lotte Insurance in June 2023, but the deal collapsed due to differing views on valuation. JKL Partners reportedly set its asking price for Lotte Insurance between KRW 2 trillion and KRW 3 trillion (US$ 1.44 billion to US$ 2.16 billion). Market observers viewed this price as high, even factoring in a control premium. At the time, Lotte Insurance’s market capitalization stood at about KRW 1 trillion (US$ 720.7 million), meaning the asking price was more than double. Woori Financial Group was estimated to have offered a price in the mid-KRW 1 trillion (US$ 720 million–1.1 billion) range. Previously, Woori Financial Group had made it clear it would not overpay to acquire Lotte Insurance. At a press conference in May 2024 regarding the merger of Woori Investment Bank and POST Securities, Lee Jung-soo, Vice President of Strategy at Woori Financial Group, said, “We will evaluate both the financial and non-financial value of Lotte Insurance and determine an appropriate valuation. We do not intend to pursue overly aggressive or overpriced acquisitions.” After Woori Financial Group withdrew, JKL Partners switched to an open-sale strategy with no exclusive negotiation rights, signaling its willingness to sell the company to any interested buyer at any time. However, no new potential buyers have come forward since then. Now, about nine months after Woori Financial Group stepped away, Lotte Insurance faces increasing difficulties. Its risk-based capital (RBC) ratio fell from 213.2% at the end of 2023 to 154.6% by the end of 2024—a drop of more than 50 percentage points. This result reflects the use of an exceptional model allowed under the lapse rate guideline for non-refund and low-refund insurance policies. Had the company used the standard model like other insurers, the RBC ratio would have fallen to 127.4%, well below the Financial Supervisory Service's recommended threshold of 150%. Profitability has also declined. Lotte Insurance reported a net profit of KRW 27.2 billion (US$ 19.6 million) in 2024, a 91% drop compared to 2023. #LotteInsurance #JKLPartners #InsuranceSale #CorporateValuation #LeeEunho #MergersAndAcquisitions #RBCRatio #IFRS17Impact #WooriFinancialGroup #KoreanFinance
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- Tough Road Ahead for Lee Moon-koo as He Strives to Raise Corporate Value of Chinese-Owned Tongyang Life
- Uncertainty in the non-life insurance industry is growing due to external factors such as economic recession and the adoption of the IFRS 17 accounting standard. Despite the uncertain market environment, Lee Moon-koo, CEO and President of Tongyang Life Insurance, has achieved record-breaking performance. After former CEO Zhou Guodan’s abrupt resignation caused turmoil at the company, Lee stepped in to stabilize Tongyang Life and has been working to increase the company’s value. Following the record-high performance, Lee was recently reappointed as CEO. The driving force behind his success has been his management leadership, which focuses on amplifying strengths. ◆ Management That Amplifies Strengths CEO Lee is focused on enhancing the company’s value by reinforcing Tongyang Life's existing strengths. He brought over 30 years of sales expertise to Tongyang Life, applying his deep industry experience to company operations. On April 15, 2024, Tongyang Life restructured its sales division for greater efficiency. The sales organization was split into B2C (business-to-consumer) and B2B (business-to-business) units. Under B2B, the company established the GA Sales Division 1, GA Sales Division 2, and the Bancassurance (BA) Sales Division. Under B2C, the FC Sales Division was created. On June 2024, Lee relaunched brand advertising for the first time in 10 years to improve brand recognition. To boost brand credibility, he recruited actual in-house planners (FCs) from Tongyang Life to appear as advertising models. He focused the company’s enhanced sales power on protection-type insurance, leading to strong financial results. In 2024, Tongyang Life achieved a net profit of KRW 310.2 billion (US$ 223.7 million), up 17.1% from the previous year. Premium income from protection-type insurance reached KRW 2.9119 trillion (US$ 2.099 trillion), a 14.8% increase year-on-year. Unlike savings-type insurance, which combines protection and savings, protection-type insurance focuses solely on compensation for events such as death, injury, hospitalization, and survival. With the adoption of IFRS 17, savings-type insurance is now recognized as a liability, negatively affecting insurers’ financial structures. Since liabilities must now be assessed at fair value rather than cost, savings-type products have become more sensitive to interest rate fluctuations. In contrast, protection-type insurance is less affected by interest rate changes. As the likelihood of payouts is lower than with savings-type insurance, it is also more favorable in terms of Contractual Service Margin (CSM)—the present value of expected future profits from held insurance contracts. ◆ Leadership Through Communication Lee is the first internally promoted CEO at Tongyang Life in six years. Amid controversy surrounding former CEO Zhou Guodan’s alleged backdoor lease of a tennis court, Lee was appointed to bring stability to the organization, becoming one of the rare Korean CEOs in a Chinese-owned insurance firm. Tongyang Life was accused in December 2022 of acquiring the rights to operate the Jangchung Tennis Court in Jung-gu, Seoul, through indirect participation in a bid. The company reportedly agreed to pay KRW 2.7 billion (US$ 1.9 million) to a sports facility operator under the guise of advertising fees. Industry insiders viewed Lee's appointment as a move aimed at organizational stabilization. As an internal appointment, Lee leveraged his understanding of the company to strengthen communication with employees. At his inauguration ceremony on March 3, 2024, Lee stated, “I will communicate directly with employees as CEO and humbly and diligently listen to any suggestions or concerns that are in the interest of the company and organization, no matter how small.” On March 7, 2024, he held a town hall-style meeting with Tongyang Life staff at KW Convention in Daejeon, where he was known to have listened to a wide range of employee opinions. His leadership through communication has extended beyond internal staff to include customers. On March 21, 2025, Tongyang Life held a Consumer-Centered Management Declaration Ceremony at its headquarters in Jongno-gu, Seoul, and launched a Consumer-Centered Management Task Force (TF). Lee also announced specific action plans aimed at realizing customer-centric management. The TF will regularly provide systematic training programs on consumer rights protection to employees. The company also plans to continuously improve related systems and services to strengthen its customer-centered framework. Lee stated, “Starting with today’s declaration, we will further reinforce customer-centric leadership and continue growing together with our customers.” ◆ What Lies Ahead for the Foggy Future of Tongyang Life's Acquisition by Woori Financial Group? While CEO Lee Moon-koo has made strides in solving internal issues through sound strategy and communication, the search for a new owner for Tongyang Life remains clouded in uncertainty. Woori Financial Group, which is pushing to acquire Tongyang Life, received a grade of 3 in its management evaluation in March 2024. Typically, a minimum grade of 2 is required for financial holding companies to pass the review process for subsidiary acquisition. However, some in the industry speculate that the Financial Services Commission may grant conditional approval. There is precedent: in 2004, Woori Financial Group successfully acquired LG Investment & Securities with conditional approval despite a grade downgrade. Still, controversy over preferential treatment may arise if the acquisition proceeds, given that Woori Financial Group Chairman Lim Jong-ryong is a former government official and that the past case involved the same financial group. Tongyang Life has been on the market since 2018, when the Chinese authorities placed its parent company under trust management due to financial instability. Currently, Tongyang Life’s parent, Dajia Insurance, was established by the Chinese government to facilitate the restructuring of Anbang Insurance. Despite efforts to privatize Dajia Insurance in 2020 and 2021, both attempts failed. Following the bankruptcy proceedings of Anbang Insurance, Chinese authorities plan to dissolve Dajia Insurance as well. Anbang Insurance was officially declared bankrupt in August 2024, and Dajia Insurance is expected to undergo liquidation within the year. If Tongyang Life fails to find a new owner before Dajia Insurance is dissolved, it could also face liquidation. This raises concerns about potential harm to policyholders if Tongyang Life is wound down. A similar concern has emerged following the collapse of MG Non-life Insurance after a failed acquisition attempt by Meritz Fire & Marine Insurance. If MG is liquidated, all 1.24 million policyholders may be affected. On January 16, the Korea Deposit Insurance Corporation (KDIC) explained in materials related to MG Non-life Insurance's sale, “If the company is liquidated, about 1.24 million insurance policyholders could be directly impacted. It may be difficult to re-enroll under the same conditions at another insurer, and those with contracts exceeding KRW 50 million (US$ 36,100) may suffer losses beyond the deposit protection limit.” ◆ How Did Tongyang Life End Up in the Hands of a Chinese Insurer? Generally, companies that offer high dividends are well-regarded. However, when Tongyang Life announces high dividend payouts, controversy ensues due to its Chinese ownership, raising concerns about national wealth outflow. Tongyang Life, ranked around eighth among Korean life insurers, came under Chinese ownership following the Tongyang Group crisis. In 2013, Tongyang Group concealed its poor financial state and proceeded with aggressive issuance of commercial paper and corporate bonds. Then-Chairman Hyun Jae-hyun reportedly did so to retain control over the group. When Tongyang Group could not repay investors, it filed for court receivership for its affiliates, leading to losses of around KRW 1.3 trillion (US$ 937.2 million) for more than 40,000 retail investors. Following the scandal, Tongyang Life was separated from the group. From 2011, the largest shareholder had been private equity firm Vogo Fund. Although Vogo Fund co-managed the company with Tongyang Group at first, they eventually split paths after the fallout. Industry insiders expected Tongyang Life to be put up for sale once Vogo Fund assumed full management, and that became a reality. Chinese insurer Anbang Insurance acquired Tongyang Life in 2015, making it a Chinese-owned insurance company. Although the majority ownership later transferred to Dajia Insurance, Dajia itself is backed by China Insurance Security Fund, a government-affiliated entity. #TongyangLife #ChineseOwnership #AnbangInsurance #VogoFund #KoreanInsuranceHistory #DividendControversy #InsuranceAcquisitionHistory #NationalWealthOutflow #InsuranceScandal #CorporateSeparation
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- KT Projected to Lead Telecom Profitability in Q1, Kim Young-shub Reclaims Throne with Efficiency and AI
- Kim Young-shub, CEO and President of KT, is expected to report the strongest performance among the three major mobile carriers in the first quarter of this year, thanks to cost reductions in personnel, the sale of subsidiaries, and profit gains from apartment development projects. This trend of increased profitability through management efficiency is expected to continue throughout the year, with results from the artificial intelligence (AI) business collaboration with Microsoft (MS) also likely to emerge in earnest during the first half. According to earnings consensus data compiled by financial information provider FnGuide on April 4, KT is projected to have outperformed its competitors SK Telecom and LG Uplus in the first quarter. KT is estimated to have posted consolidated revenue of KRW 7.0547 trillion (US$ 5.08 billion), operating profit of KRW 775.2 billion (US$ 559 million), and net profit of KRW 541.4 billion (US$ 390.2 million). SK Telecom is projected to have recorded consolidated revenue of KRW 4.5082 trillion (US$ 3.25 billion), operating profit of KRW 526.0 billion (US$ 379.3 million), and net profit of KRW 366.3 billion (US$ 263.9 million). LG Uplus is estimated to have posted consolidated revenue of KRW 3.6567 trillion (US$ 2.64 billion), operating profit of KRW 243.2 billion (US$ 175.4 million), and net profit of KRW 149.7 billion (US$ 107.9 million). If these forecasts materialize, KT will surpass its competitors in revenue, operating profit, and net profit for the first time in four quarters since the first quarter of last year. This strong performance is attributed to the management efficiency initiatives led by CEO Kim since his appointment. Since October of last year, Kim has implemented personnel restructuring and voluntary retirement programs, cutting annual labor costs by about KRW 300 billion (US$ 216.3 million). Recently, KT also moved to sell underperforming subsidiaries, deciding to sell security-fintech company Initech for KRW 85 billion (US$ 61.3 million) and digital advertising agency PlayD for KRW 73.5 billion (US$ 52.9 million). Profits from the development of KT’s land near Guui Station in Gwangjin-gu, Seoul, as part of an advanced office complex project, are also expected to be reflected in results from the first to second quarter. Kim Hong-sik, a researcher at Hana Securities, said, “Despite stagnant mobile service revenue, cost reductions in labor and operating expenses due to organizational restructuring are expected to result in a record-high consolidated operating profit in the first quarter.” CEO Kim is also pushing for the sale of idle assets such as real estate, which is expected to support continued profit growth for KT. At a press conference during the Mobile World Congress (MWC) held in Barcelona, Spain on March 4, Kim stated, “Real estate and hotels are not KT’s core businesses,” signaling his intention to further liquidate real estate assets. KT’s real estate disposal gains have been increasing annually, with KRW 51.8 billion (US$ 37.3 million) in 2023 and KRW 87.5 billion (US$ 63.1 million) recorded in 2024. Currently, KT is reportedly considering the sale of idle real estate, including five-star hotels such as Novotel Ambassador Seoul Dongdaemun, Andaz Seoul Gangnam, and Sofitel Ambassador Seoul. Furthermore, if KT launches the “Korean-style AI” and “Secure Public Cloud (SPC)”—which it is developing in collaboration with MS—within the first half of the year and begins monetizing them, its profit growth momentum is expected to gain even more traction. KT is developing an AI agent with MS based on GPT-4o, designed to reflect Korean ways of thinking and domestic regulatory systems for use in various industries such as finance. The Secure Public Cloud is a cloud service with significantly enhanced data security, targeting public and financial sector companies that are sensitive to security issues. This trend of improved performance is also expected to positively affect CEO Kim’s chances of being reappointed. Kim was appointed with a relatively short term of 2 years and 7 months following confusion during the CEO selection process after former CEO Ku Hyeon-mo’s tenure. With his term set to expire in March next year, KT’s strong performance, coupled with the success of the AI business that Kim is focusing on, is likely to solidify his position and boost the possibility of his reappointment. Although Kim is known as a finance expert, he is also highly regarded for his understanding of IT technology. Born in 1959, he graduated from Kyungpook National University High School and studied business administration at Korea University. He began his career at Lucky Goldstar Trading Company (formerly LG International, now LX International), worked in the financial restructuring team at LG’s restructuring headquarters, and later served as Executive Vice President of Business Management and Head of Solution Business at LG CNS. He then moved on to serve as Chief Financial Officer of LG Uplus before being appointed CEO of LG CNS. Since August 2023, he has been leading KT. #KimYoungshub #KT #KTEarnings #AIbusiness #Microsoft #SecurePublicCloud #GPT4o #telecomindustry #realestatedisposal #KoreaAI
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- Chung Eui-sun Personally Oversees Hyundai’s Humanoid Robot Project as Trump’s Policies Emerge as Opportunity
- Hyundai Motor Group is accelerating efforts to deploy bipedal humanoid robots in its manufacturing and production facilities, including automobile assembly lines. Hyundai Motor Group Chairman Chung Eui-sun recently visited the U.S. office of the group's robotics subsidiary Boston Dynamics to confirm plans to purchase humanoids and express his commitment to supporting the business. According to Boston Dynamics on April 3 (local time), Chairman Chung visited the company’s headquarters in Waltham, Massachusetts during the last week of March and announced, “At the group level, we plan to purchase tens of thousands of robots over the next several years and introduce them into manufacturing plants.” At a town hall meeting held with more than 800 Boston Dynamics employees, Chairman Chung emphasized, “We will support the robotics business as it is a future growth engine.” Vice Chairman Jang Jae-hoon, who accompanied Chairman Chung, stated, “Boston Dynamics will play a crucial role in achieving Hyundai Motor Group’s goals,” adding, “We will move quickly to take the lead in the robotics industry.” This statement reflects Hyundai Motor Group’s intent to actively create synergy with Boston Dynamics at the group level and position robotics as a key part of its future growth strategy. Chairman Chung's visit to Boston Dynamics and emphasis on commitment to the next-generation robotics business is closely related to the Trump administration’s early moves to detail policies related to the industry. This is because the humanoid sector is rapidly advancing in China, which aims to dominate the field as the ‘second electric vehicle’ market. According to Nikkei Asia, 70% of electric vehicle parts are compatible with humanoids, giving Chinese companies and related firms a significant advantage. As a result, Chinese EV companies such as BYD and XPeng are speeding up their entry into the humanoid market through investment or in-house development. Robotics company UBTECH also began mass production of humanoids in the second quarter of this year, setting a goal of producing 10,000 units by 2027. According to the database platform Qichacha, the number of registered robotics companies in China exceeded 230,000 as of early this year. As China rapidly grows its humanoid industry based on its own supply chain, the Trump administration is highly likely to introduce support measures to counter this. Major U.S. humanoid companies have recently voiced the need for government support to compete with China. According to the Associated Press and other sources, representatives from Boston Dynamics, Tesla, and others attended a U.S. House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party meeting on March 27 to request supportive policies. Tesla CEO Elon Musk has also named humanoids as a key next-generation growth engine. There is a strong possibility that the Trump administration will invest in the humanoid industry’s capabilities to compete in the tech race with China and to benefit domestic companies such as Tesla. CNBC predicted, “Tesla will face fierce competition for dominance in the humanoid market not only from Boston Dynamics but also from Chinese firms.” This could present an opportunity for both Boston Dynamics and Hyundai Motor Group. Since Boston Dynamics is an American company and its parent company Hyundai Motor Group has already earned favor with President Trump by announcing a US$ 21 billion (KRW 30.2 trillion) investment in the U.S., the group may expect to benefit. The investment plan announced by Chairman Chung at the White House on March 24 included US$ 6.3 billion for new technologies such as robotics and artificial intelligence (AI). At the time of the announcement, Hyundai also revealed plans to accelerate the commercialization of Boston Dynamics, which Chairman Chung’s recent visit reconfirmed. If the U.S. government supports humanoid R&D and strengthens the domestic supply chain, it is highly likely to benefit both Hyundai and Boston Dynamics in practical terms. Given that the Trump administration promotes domestic manufacturing as a policy focus, it is unlikely to hold back support for the robotics industry, which boosts productivity. Ultimately, Hyundai Motor Group’s friendly ties with the Trump administration could bring the company one step closer to realizing Chairman Chung’s vision of evolving into a comprehensive mobility enterprise beyond the automobile business. U.S. Secretary of Commerce Howard Lutnick said in an interview with CNBC on April 4, “The key to bringing manufacturing back to America is the use of robotics in factories.” #HyundaiMotorGroup #BostonDynamics #humanoidrobots #ChungEuiSun #roboticsindustry #BYD #Tesla #Trumpadministration #AIinvestment #roboticsmanufacturing
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- Lee Hae-jin’s Return to Naver Boosts Choi Soo-yeon — The Era of ‘Lee Hae-jin Kids’ Begins
- Founder’s Return Often Spells CEO Exit — But Naver’s Lee Hae-jin May Be Backing His Own Successor In most companies operated under a professional management system, the return of a founder or a member of the founding family to the executive frontlines is generally interpreted as a sign that the professional CEO is on their way out. This has been the case with many major corporations globally, including Toyota, Ford, and Levi’s, and even in Korea, with GS Engineering & Construction standing out as a prime example. But the recent return of Naver founder Lee Hae-jin to an internal director position after eight years is being read differently by market observers. Rather than signaling the decline of CEO Choi Soo-yeon’s leadership, it could instead serve to reinforce it. Choi, who has just been reappointed for another term, has long been considered a protégé of Lee Hae-jin. She began working closely with him in 2019, assisting with global expansion efforts. It was Lee who handpicked her in 2021 as the successor to then-CEO Han Seong-sook — a bold move considering their 14-year age gap and Choi’s relatively young age of just 40 at the time. Breaking the Traditional Power Struggle Between Founder and CEO In most scenarios, a founder’s return tends to undermine the sitting CEO’s authority. As the adage goes, “There can’t be two suns in the sky.” Founders often hold symbolic power that professional executives can rarely match, inevitably reducing them to secondary figures. However, the situation at Naver is unique. Lee and Choi do not appear to be at odds but rather aligned partners in strategy and vision. During Lee’s global push, Choi helped formulate key strategies and ultimately earned his trust — enough to be placed at the helm of Naver at a critical time. Lee’s decision to appoint Choi was not only unusual but also indicative of a broader organizational shift. His return now, far from threatening her leadership, could serve to bolster it. Achievements and Limits: Why Lee’s Return Adds Strategic Balance Choi Soo-yeon’s leadership has brought about noteworthy achievements. One of the most prominent is the rapid growth of Naver’s streaming platform “CHZZK,” which quickly filled the vacuum left by Twitch’s exit from the Korean market and rose to the top of the domestic streaming sector. She also successfully defended Naver’s control over the Line Yahoo Japan joint venture amid mounting political pressure from Japanese authorities — preserving both management rights and Line’s dominant market position. However, not all aspects of Choi’s tenure have been flawless. Naver’s proprietary AI model HyperCLOVA X has yet to make a meaningful impact on the global stage. Additionally, Poshmark, the U.S. e-commerce platform acquired under Choi’s leadership in 2022, has not yet delivered clear results. As global tech giants intensify competition in AI, Choi’s Naver has yet to present a clear strategic direction, prompting concerns about the company’s long-term positioning. This is where Lee Hae-jin’s return could fill a critical strategic void. With Lee back in a director role, Choi now has not only operational authority but also the founder’s strategic guidance and credibility to support bolder leadership. “Lee Hae-jin’s Kid” Takes Center Stage in Naver’s Young Leadership Drive Lee Hae-jin has been actively pushing to restructure Naver’s leadership around a younger generation. His selection of Choi in her early 40s reflects a sense of urgency — the belief that even a 20-year-old tech company must regain startup-like agility to survive in today’s fast-changing environment. Choi represents this transformation. Her continued leadership, backed by the founder’s return, could elevate her from being merely a handpicked CEO to the central figure in executing the future vision that Lee envisions. Now that the screenwriter is back behind the scenes, the lead actor remains on stage. The next act, co-written by Lee and Choi, is one the tech industry will be watching closely.
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- Rift Deepens Among Financial Chiefs Over Lee Bok-hyun’s Stance
- On April 2, Financial Supervisory Service (FSS) Governor Lee Bok-hyun appeared on CBS Radio's 'Kim Hyun-jung's News Show' and announced his intention to resign following Acting President and Prime Minister Han Deok-soo's exercise of the right to request reconsideration (veto) of the Commercial Act amendment. This public statement came just a day after the veto was exercised, during which Lee reiterated his opposition to the decision. Lee expressed that he firmly believes President Yoon Suk-yeol would not have exercised the veto if he were in office, emphasizing that until late last year, the Ministry of Justice shared this perspective. He lamented that since the end of last year, important policy issues have become overly politicized, leading to societal confusion. He further stated, "It's regrettable that matters which should have been discussed within the government have surfaced publicly. I also feel apologetic towards the Financial Services Commission Chairman and the Deputy Prime Minister. There's a misunderstanding that we are voicing different opinions externally." However, it was Lee himself who publicly opposed the government's stance by declaring he would stake his position against the veto of the Commercial Act amendment. He even revealed during the broadcast that he had submitted his resignation to the Financial Services Commission Chairman, following through on his earlier commitment. The amendment in question seeks to change the duty of company directors from being loyal to the company's interests to being loyal to both the company and its shareholders, a topic that has garnered diverse opinions. While the FSS Governor is entitled to his viewpoint, as a public official, it's imperative to consider the responsibilities and obligations that come with the position. The FSS was established to oversee and inspect financial institutions, ensuring a sound financial market environment and protecting financial consumers. Therefore, the Governor's role is not to set policy directions but to focus on supervision and inspection. Engaging in actions resembling those of a politician can lead to criticism and potential market instability. Notably, the FSS Governor's public statements can significantly impact the financial market. Recent appearances on various media platforms, including MBC Radio and the YouTube channel 'Sampro TV,' have raised concerns about the appropriateness of such actions. Lee's recent resignation offer is seen not as an act of taking responsibility but rather as an abdication of duty. In turbulent times, the role of regulatory leaders becomes even more crucial. Lee himself mentioned that both the Deputy Prime Minister and the Bank of Korea Governor advised against hasty actions given the current market difficulties. He acknowledged the importance of attending the upcoming 'F4' meeting of economic and financial leaders scheduled for April 3. The weight of the words "staking one's position" should not be taken lightly. With the domestic and international financial markets facing numerous challenges, including mutual tariffs imposed by the U.S., the Homeplus incident, and household debt management amid declining interest rates, the FSS Governor's role is pivotal. It's essential for Lee to focus on his duties, considering the significant impact his position has on the national economy and financial markets. Lee's term is set to end in June 2025. As the end of his term approaches, it's crucial for him to prioritize the responsibilities of his position over personal influence, ensuring that the weight of the FSS Governor's role is upheld. #LeeBokHyun #FinancialSupervisoryService #Resignation #CommercialAct #GovernmentPolicy #FinancialMarkets #PublicOfficeResponsibilities
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- UMC-GF Merger Cornering Samsung Foundry — Yield Pressure Mounts for Han Jin-man
- With TSMC widening the gap at the top, and Chinese players rapidly advancing, Samsung’s foundry unit risks falling further behind in the global semiconductor race. Samsung Electronics’ foundry business (semiconductor contract manufacturing) is facing increased pressure amid reports that Taiwan’s United Microelectronics Corporation (UMC) and U.S.-based GlobalFoundries (GF) are considering a merger. If the deal materializes, it could dethrone Samsung from its current position as the world’s second-largest foundry, further deepening concerns about its competitive edge in the global semiconductor market. According to reports from Nikkei and Bloomberg on April 2, the potential merger between UMC, currently ranked 4th globally, and GF, ranked 5th, would create a foundry giant surpassing Samsung in total market share. Data from Taiwanese market research firm TrendForce shows that as of Q4 2024, UMC held a 4.7% market share and GF 4.6%, for a combined 9.3%—exceeding Samsung’s 8.1%. TSMC maintains a commanding lead with 67.1% market share, followed by China’s SMIC at 5.5%. Although the merger would mostly affect legacy (mature-node) foundry markets—both UMC and GF specialize in nodes above 12nm—it still poses a long-term threat to Samsung. The Korean tech giant has recently increased efforts to expand its presence in legacy segments such as power semiconductors. Starting this year, Samsung will offer GaN (gallium nitride) power semiconductor foundry services on 8-inch wafers for consumer and automotive applications. Meanwhile, Chinese foundries are accelerating rapidly. SMIC, the world’s third-largest foundry, has reportedly begun mass production using 5nm process technology—achieved without cutting-edge EUV (extreme ultraviolet) lithography tools, instead relying on older DUV (deep ultraviolet) equipment. The company is believed to be manufacturing Huawei’s Ascend 910C series AI chips using this process. Considering Samsung began 5nm production in 2020, the technology gap with SMIC appears to have narrowed to just around five years. China is also investing heavily in its own EUV systems and advanced technologies such as Gate-All-Around (GAA) transistors to catch up with industry leaders. U.S. tech media outlet Wccftech reported that China's development path hinges on the success of its domestic EUV lithography systems, expected to begin trial production by Q3 2025. Chinese equipment maker SiCarrier—reportedly linked to Huawei—is said to be working on alternatives to ASML’s EUV tools from the Netherlands. While competitors advance, Samsung continues to struggle in closing the technology and market share gap with TSMC. Though the yield of Samsung’s 4nm and 5nm processes has improved, its 3nm yields remain below expectations, making it difficult to attract large-scale customers. Samsung is also falling behind in the 2nm race. TSMC has already secured key clients such as Apple and Qualcomm and is scheduled to begin 2nm mass production in the second half of 2025, with yields estimated to exceed 60%. In contrast, Samsung is not expected to start stable 2nm production until the first half of 2026. At the annual shareholder meeting on March 19, Samsung’s Head of Foundry Business, President Han Jin-man, acknowledged the challenge, saying, “We may not be able to resolve the issues within Q1 or Q2, but we will do our best. Our biggest goal this year is to quickly improve yield and reach a level of profitability.” If Samsung fails to narrow the gap with TSMC soon, it could find itself overtaken by fast-rising challengers. To make matters worse, Samsung’s foundry business is expected to post another operating loss of KRW 4–5 trillion (approx. $3–3.8 billion USD) this year, following a similar performance in 2024. U.S. IT news outlet PhoneArena noted, “Samsung’s 2nm yield is reportedly around 30%, well below TSMC’s 60–70%. Samsung has failed to secure major clients for its 3nm process and is facing similar struggles at 2nm. To sustain its foundry business, it must attract more customers.”
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- Park Hyun-chul of Lotte E&C Clears Key Hurdle in Financial Stability, Races to Contain Bridge Loan Risks
- Lotte Engineering & Construction (E&C) has improved its financial structure by lowering its debt ratio below the 200% level, which is often considered a danger threshold, despite a slump in the construction industry. Park Hyun-chul, Vice Chairman and CEO of Lotte E&C, is expected to maintain a cautious stance and accelerate financial restructuring efforts, given the high proportion of bridge loans among the company's contingent liabilities that remain in the pre-construction phase. According to Lotte E&C’s business report released on April 2, its consolidated debt ratio at the end of last year stood at 196%, down about 40 percentage points from 235.3% at the end of 2023. This suggests that Lotte E&C is gradually recovering from the liquidity crisis triggered by the Legoland incident in 2022. Compared to the 264% debt ratio at the end of 2022, the figure has fallen by nearly 70 percentage points. As of the end of last year, total borrowings were KRW 2.0454 trillion (US$ 1.47 billion), a decrease of KRW 763.5 billion (US$ 550.5 million) from the end of 2023. The debt-to-asset ratio, which indicates the proportion of debt to total assets, dropped 8 percentage points to 24%. Current portions of long-term liabilities—debts due within one year—stood at KRW 1.3685 trillion (US$ 985.9 million) at the end of last year, less than half of the KRW 2.8933 trillion (US$ 2.08 billion) recorded at the end of 2022. Vice Chairman Park is effectively fulfilling the role he was brought in for as a “firefighter.” He previously served as Head of the Business Restructuring Office at Lotte Holdings and was appointed CEO of Lotte E&C in December 2022, amid the company's liquidity crisis. Upon Park’s appointment, Lotte Group stated, “We expect him to actively resolve market instability and address Lotte E&C’s pending issues based on his excellent risk management and business restructuring capabilities.” Despite a harsh round of leadership reshuffles among Korea’s top 10 construction companies due to an industry downturn last year, Park retained his position, demonstrating recognition of his leadership. However, Park is expected to remain vigilant. While the company’s financial structure is improving with a lower debt ratio and reduced borrowings, challenges remain with its real estate project finance (PF) contingent liabilities. Typically, real estate PF funding consists of three stages: bridge loans, main PF, and group loans. Bridge loans are used for land acquisition and permitting before construction begins, then converted to main PF once the project kicks off. After completion, buyers pay via installment and mortgage loans. Bridge loans, being pre-construction, are considered riskier due to low project visibility. The older the project, the greater the perceived risk, as this often indicates difficulty in securing further investment. With the real estate market deteriorating, construction companies have been focusing on reducing PF-related contingent liabilities. As of the end of last year, some of Korea’s top 10 builders had eliminated bridge loan-related contingent liabilities altogether. However, at the end of last year, about 95% of Lotte E&C’s PF-related contingent liabilities were tied to bridge loans. Of the company’s KRW 4.1608 trillion (US$ 2.99 billion) in PF contingent liabilities, only KRW 228.4 billion (US$ 164.7 million) was associated with main PF projects that had progressed into full-scale development. NICE Investors Service pointed out in a report at the end of last year, “Lotte E&C’s PF-related contingent liabilities remain excessively high compared to its equity capital.” The agency added, “As of the end of November 2023, PF contingent liabilities from unstarted or poorly selling high-risk construction projects totaled KRW 2.4 trillion (US$ 1.73 billion), leaving considerable exposure to realization risk under the current weak housing market.” Park is expected to continue focusing on converting bridge loans into main PF and reducing contingent liabilities to further improve financial stability. Lotte Group as a whole is also working on plans to reduce these liabilities. At the March shareholders’ meeting, Lotte Holdings CEO Lee Dong-woo stated, “Lotte E&C will pursue PF projects within the limits of its equity capital. PF-related contingent liabilities, which once stood at KRW 6.8 trillion (US$ 4.91 billion), have improved to KRW 3.7 trillion (US$ 2.67 billion), and we aim to reduce this to below KRW 2.8 trillion (US$ 2.02 billion) by year-end.” Lotte E&C is also reviewing the sale of its headquarters building in Seocho, Seoul, and is working to improve its financial soundness by optimizing non-core assets. If asset optimization proceeds as planned, the debt ratio is expected to drop to 150% by 2026. A Lotte E&C spokesperson said, “We are currently conducting internal reviews and consulting with external experts on optimizing our asset portfolio,” adding, “We will continue focusing on financial stability and cash flow management initiated in 2022, and will also manage already awarded or invested projects efficiently.” #LotteEandC #ParkHyunchul #financialrestructuring #debtmanagement #PFrisk #bridgeloans #Koreanconstruction #realestatePF #LotteGroup #businessturnaround
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- From 7th in the Business Rankings to Just Kumho E&C and Kumho Express Left – Park Se-chang’s Arduous Road
- Park Se-chang, Vice Chairman of Kumho E&C, is often referred to in the business world as the "tragic crown prince." This is because he had to witness the near-collapse of the Kumho Asiana Group, which had once risen to become the seventh-largest business group in Korea, due to reckless mergers and acquisitions and the direct impact of the global financial crisis. With the sale of its core affiliate, Asiana Airlines, the group’s stature diminished significantly, and Park now carries the heavy responsibility of rebuilding the group around Kumho E&C. After the sale of Asiana Airlines, Kumho Asiana Group is no longer classified as a large conglomerate and has dropped out of the top 100 business rankings, now standing as a mid-sized group. ◆ Third-Generation Leadership in Hardship Park Se-chang’s path to rebuilding the group is far from smooth. The remaining affiliates under the Kumho Asiana umbrella are limited to Kumho E&C, Kumho Express, the Kumho Asiana Cultural Foundation, and the Jukho Academy Foundation. Among them, the flagship affiliate, Kumho E&C, has continued to show declining performance. Kumho E&C’s operating profit dropped from KRW 111.6 billion (US$ 80.5 million) in 2021 to KRW 55.9 billion (US$ 40.3 million) in 2022, and further declined to KRW 21.8 billion (US$ 15.7 million) in 2023. Revenue also showed a downward trend, falling from KRW 2.0485 trillion (US$ 1.476 billion) in 2022 to KRW 2.2176 trillion (US$ 1.599 billion) in 2023, and KRW 1.9141 trillion (US$ 1.38 billion) in 2024, failing to achieve top-line growth. The financial condition is also unstable. With rising debt and shrinking capital, the debt ratio has surged sharply. According to NICE Investors Service, Kumho E&C’s debt ratio rose from 165.9% in 2021 to 211.3% in 2022, 260.2% in 2023, and nearly 588.8% last year. This debt ratio is even higher than that of Shindong-A Construction, which entered court receivership in January 2024 with a debt ratio of 428.8%. In addition, a decrease in cash and cash equivalents has raised concerns about a potential liquidity crisis, negatively impacting the company’s credit rating. In May 2024, Korea Investors Service changed Kumho E&C’s corporate credit rating (ICR) outlook from “Stable” to “Negative.” Park Chan-bo, Senior Researcher at Korea Investors Service, stated, "Kumho E&C's declining profitability is worsening its cash flow, thereby increasing its financial burden," and added, "The limited potential for short-term profitability improvement was also a factor in the negative outlook." Vice Chairman Park is seeking a turning point with approximately KRW 30 billion (US$ 21.6 million) in cash assets expected from a recent legal victory related to the Asiana Airlines down payment dispute, and by promoting Kumho E&C’s residential brand ‘Artera.’ Following a string of successful housing projects under the Artera brand, Kumho E&C announced a plan to launch 4,342 housing units in 2025, an increase of about 17.5% compared to 2024. Kim Se-ryeon, a researcher at LS Securities, commented, "Kumho E&C is expected to strengthen its order capabilities through increased project wins in LH’s Phase 3 New Town developments and the reinforcement of the Artera brand. In addition, the improved financial structure of the parent company, Kumho Express, is also a positive factor." Vice Chairman Park has set a target of KRW 2.7 trillion (US$ 1.95 billion) in orders for 2025 and is determined to continue the company’s growth trajectory by leveraging Artera’s brand recognition. ◆ Focus on Performance Improvement at Kumho E&C While Facing Safety Challenges Although Park Se-chang is striving to improve Kumho E&C’s performance, safety issues remain a major challenge. Two fatal accidents occurred at Kumho E&C construction sites within a month, raising concerns over poor safety management. Previously, Kumho E&C had already come under fire for the Osong disaster, in which the company was accused of damaging a levee for construction convenience, contributing to the tragedy. With repeated fatal accidents, the pressure on the company has grown. The recent accident sites are all subject to the Serious Accidents Punishment Act, which holds business owners and executives accountable for workplace fatalities if they fail to ensure safety and health standards. The law stipulates strict criminal penalties if a serious industrial accident occurs due to failure by business owners or executives to fulfill their safety obligations. Although Park Se-chang is a non-registered executive at Kumho E&C and is therefore not directly subject to prosecution under the law, he is likely to face mounting concerns as the owner-operator of the company. #ParkSechang #KumhoE&C #KumhoGroup #AsianaAirlines #corporaterecovery #Koreanconstruction #Artera #businessleadership #debtcrisis #seriousaccidentslaw
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- BNK’s Path to a Full-Service Financial Group Still Distant – Bin Dae-in’s ‘Too Slow’ Leadership
- Bin Dae-in, Chairman of BNK Financial Group, is pushing to transform the company from a regional bank into a comprehensive financial group. Industry insiders say that to achieve this goal, BNK needs to strengthen its non-banking portfolio and pursue conversion into a nationwide commercial bank. Despite having been in office for over two years, Chairman Bin finds himself facing realistic obstacles surrounding BNK Financial Group, making progress slow. Can he demonstrate the leadership needed to resolve BNK’s mounting challenges and set a new course for growth? ◆ Repeatedly Failed Insurance Acquisitions, Hindered by Former Chairman Since his inauguration in March 2023, Chairman Bin Dae-in has attempted to strengthen BNK’s non-banking portfolio by acquiring life and non-life insurance companies. BNK Financial Group currently has nine subsidiaries, including BNK Busan Bank, BNK Kyongnam Bank, BNK Capital, BNK Securities, BNK Savings Bank, BNK Asset Management, BNK Venture Investment, BNK Credit Information, and BNK Systems. However, it does not have an insurance affiliate. In 2023, Chairman Bin partnered with a private equity firm to pursue the acquisition of ABL Life Insurance but failed to reach the final stages. In 2024, he once again collaborated with a private equity firm to secure BNP Paribas Cardif Life Insurance by positioning BNK as a strategic investor (SI), but the effort was abandoned. Despite Bin’s strong will to acquire an insurance company, the attempts failed mainly due to legal issues stemming from the tenure of former Chairman Sung Se-Hwan. In 2016, Sung was involved in a case where BNK Investment & Securities employees were mobilized to induce 14 Busan Bank clients to purchase BNK Financial Group stocks. The representatives of these client companies invested about KRW 17.3 billion (US$ 12.5 million) to acquire around 4.65 million shares of BNK Financial Group. Due to Sung’s stock price manipulation case, BNK Financial Group was also fined in October 2021 for violating the Capital Markets Act. As a result of the fine, BNK became ineligible as a qualified major shareholder. According to the Financial Services Commission’s regulations, any entity that has received criminal punishment of a fine or more for violating financial laws within the past five years is disqualified as a major shareholder. Consequently, BNK Financial Group is effectively barred from acquiring subsidiaries or entering new businesses directly until October 2026. Insurance affiliates are known to be major contributors to financial groups’ profitability, which is why Chairman Bin continues his push for acquisitions even through partnerships with private equity firms. For example, KB Insurance has become the most profitable non-banking subsidiary under KB Financial Group, playing a vital role in KB maintaining its position as the leading financial group. In 2024, KB Insurance posted a net profit of KRW 839.5 billion (US$ 605 million), a 17.7% increase year-on-year. This accounted for about 17% of KB Financial Group’s total net profit of KRW 5.0782 trillion (US$ 3.66 billion). Shinhan Life Insurance also recorded KRW 528.4 billion (US$ 381 million) in net profit in 2024, its best performance since the 2021 merger of Shinhan Life and Orange Life. ◆ Bin Dae-in Cautious on Commercial Bank Transition Amid Internal Opposition and Shareholding Issues To shed its label as a “regional financial group” and become a comprehensive financial group, BNK Financial Group is also considering converting BNK Busan Bank and BNK Kyongnam Bank into nationwide commercial banks. However, Chairman Bin is taking a cautious stance on this matter. In an interview with another media outlet on November 19, 2024, he said, “Expanding our business territory without firmly establishing ourselves in our home region has its limits,” adding, “Once we become more competitive locally and able to operate effectively outside the Busan-Ulsan-Gyeongnam region, we will consider transitioning into a commercial bank.” Since acquiring Kyongnam Bank in 2014, BNK Financial Group has maintained a policy of allowing independent management. For the commercial bank transition to happen, both emotional and operational integration between Busan Bank and Kyongnam Bank is seen as necessary. To advance emotional integration, Bin recently appointed Shin Tae-Soo, a Kyongnam Bank alumnus, as CEO of BNK Credit Information. The integration of the two banks’ IT systems is also progressing. According to a report by KNN, Busan Bank decided to implement a new next-generation IT system (NGBS) by 2028. This system will also be applied to Kyongnam Bank in 2030. However, this integration has raised concerns among Kyongnam Bank’s labor union, which has long viewed IT system integration as a precursor to a full merger. In a statement issued on January 17, 2023, the Kyongnam Bank labor union warned BNK Financial Group’s chairman candidates, “If you have any intention of disrupting the two-bank system, abandon it immediately,” adding, “Don’t mistakenly believe that saving a few bucks through IT integration is a sustainable growth strategy.” Chairman Bin, however, has drawn a clear line, stating that IT integration does not equate to a merger. At a press briefing held in the Kyongnam region on April 18, 2023, he stated, “Looking at what has happened over the past 10 years, inefficiencies outweigh efficiencies,” and added, “Once IT integration leads to more efficient operations, shareholders won’t be asking, ‘Why haven’t you merged yet?’” BNK Financial Group must also resolve its ownership structure if it wants to convert into a commercial bank. Under the current separation of banking and commerce law, industrial capital cannot hold more than 4% of a commercial bank’s shares. Thus, for BNK to make the transition, both Lotte and Hyupsung Construction must divest their holdings. According to BNK Financial Group’s annual report, Lotte affiliates such as Lotte Shopping and Busan Lotte Hotel collectively own 10.47% of BNK shares. In addition, Hyupsung Construction, a mid-sized construction firm in Busan, and its related parties hold 6.54%. #BinDaeIn #BNKFinancialGroup #insuranceacquisition #nonbankingportfolio #commercialbankconversion #BusanBank #KyongnamBank #financialregulations #LotteGroup #Koreanfinance
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- Daewoo E&C Warms Up for Urban Redevelopment Bids, Kim Bo-hyun Eyes Han River Projects in Second Half
- Kim Bo-hyun, President and CEO of Daewoo Engineering & Construction (E&C), has been taking a cautious approach in the urban redevelopment market this year while emphasizing sound management practices. Kim is expected to target major project sites along the Han River, such as Yongsan, Seongsu, and Yeouido, beginning in the second half of the year as opportunities arise to secure contracts. According to construction industry sources on April 1, Daewoo E&C had yet to secure its first urban redevelopment project contract of the year through the first quarter, along with Hyundai Engineering and SK Ecoplant, among major domestic construction companies. This is notable because Daewoo E&C owns the well-known apartment brand "Prugio" and, unlike Hyundai Engineering and SK Ecoplant, has a relatively higher proportion of its business dedicated to residential construction. Last year, the company secured KRW 2.98 trillion (US$ 2.15 billion) in domestic urban redevelopment contracts, ranking fifth in total annual orders. Its 2023 performance was only about KRW 1 trillion (US$ 721 million) behind Samsung C&T (KRW 3.64 trillion or US$ 2.62 billion) in third place and GS E&C (KRW 3.11 trillion or US$ 2.24 billion) in fourth. This year, the domestic urban redevelopment market has significantly expanded and become more active. By the end of the first quarter, the total amount of urban redevelopment contracts awarded to the top 10 construction companies reached KRW 11.37 trillion (US$ 8.2 billion). Compared to KRW 4 trillion (US$ 2.88 billion) during the same period last year, the market has nearly tripled. Some companies, like Samsung C&T and Lotte E&C, have already achieved annual-level performance in just one quarter. For Daewoo E&C, the absence of urban redevelopment contracts through the first quarter may be somewhat disappointing. However, since Kim has emphasized "sound management" as a key policy this year, it is likely he will continue a selective approach in the urban redevelopment market, prioritizing profitability. In his New Year's address, Kim said, “2025 will be the most challenging year of the next three years,” adding, “Let’s focus on internal stability with safety as our top priority.” During the regular shareholders’ meeting in March, Kim once again emphasized sound management as a core initiative, stating, “We will strengthen financial stability by efficiently managing accounts receivable, increasing contract values, and focusing on core markets and key construction sectors.” Based on this strategy, Daewoo E&C is expected to selectively bid on urban redevelopment projects, focusing on high-quality locations such as Seoul and the metropolitan area while avoiding excessive competition and targeting only profitable work. As Daewoo E&C is working to improve its financial structure, it is increasingly important to avoid projects where rising construction costs could erode profits. In cases where it competes with other builders for urban redevelopment contracts, the company could also incur tens of billions of won in operating costs. Key projects Daewoo E&C is monitoring include the Gangnam Wonhyoseong Villa reconstruction in Banpo Seorae Village, the Cheongpa District 1 redevelopment in Yongsan, the Gunpo District 1 redevelopment in Gunpo City, and the Yeouido Sibeom Apartment reconstruction. A Daewoo E&C official said, “We are highly likely to be selected as the preferred bidder for the Gunpo District 1 redevelopment,” adding, “We are also actively working on bids for projects such as Gangnam Wonhyoseong Villa, Cheongpa District 1, and Yeouido Sibeom Apartment.” However, Kim is expected to aim for opportunities in large-scale urban redevelopment projects worth trillions of won scheduled to emerge in the second half of the year to meet this year’s target of KRW 3 trillion (US$ 2.16 billion) in urban redevelopment orders. Last year, Daewoo E&C also began winning urban redevelopment contracts starting in July, ultimately securing seven projects and showing strong performance in the second half. This year, as major redevelopment tenders in areas like Apgujeong, Seongsu, and Yeouido along the Han River begin in earnest in the second half, fierce competition among leading construction companies is expected. A Daewoo E&C representative stated, “We will pursue selective bidding focused on high-quality sites as the basic direction for urban redevelopment projects,” adding, “We are closely monitoring redevelopment opportunities in key strategic areas such as Apgujeong, Seongsu, and Yeouido.” #DaewooEandC #KimBohyun #urbanredevelopment #Prugio #constructionindustry #HanRiverprojects #soundmanagement #Koreanrealestate #housingmarket #redevelopmentprojects
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- Will Hanwha Financial Speed Up Separation? Hurdles Await Hanwha Life’s Kim Dong-won on Path to Independence
- Kim Dong-won, President and Chief Global Officer (CGO) of Hanwha Life Insurance, is drawing attention over whether he will begin the process of formally separating Hanwha Financial from the Hanwha Group. This speculation arises as discussions about Hanwha Group’s potential transition to a holding company structure have resurfaced. If Hanwha Group transitions to a holding company system, financial subsidiaries overseen by Kim will inevitably have to become independent, in accordance with the principle of separation between industrial and financial capital. However, analysts say that a complete separation of financial affiliates may take time, as Kim still faces tasks such as securing a larger stake in Hanwha Life. According to a summary of opinions from inside and outside the financial industry on April 1, there is speculation that Kim may accelerate the separation of Hanwha Financial, centering on Hanwha Life. On March 31, Hanwha Group Chairman Kim Seung-yeon announced he would gift half (11.32%) of his 22.65% stake in Hanwha to his three sons. Among the 11.32% gifted, Kim Dong-kwan, Vice Chairman of Hanwha, who leads the group’s manufacturing and defense sectors, received 4.86%. Kim Dong-won, President of Hanwha Life and responsible for the group’s financial businesses, and Kim Dong-sun, Executive Vice President of Hanwha Galleria, in charge of distribution and leisure sectors, each received 3.23%. Hanwha serves as the de facto holding company within the Hanwha Group, and this equity transfer is widely interpreted as part of a succession plan. Business circles see this move as a clear sign of the establishment of a “third-generation owner-led” management system, and it has reignited speculation that Hanwha Group may transition to a formal holding company structure. Currently, Hanwha Group does not officially operate under a holding company structure. However, since Chairman Kim’s three sons have been receiving management training in their respective sectors, the possibility of separating affiliates through a holding company conversion has long been considered. Among the three, Kim Dong-won is expected to be the most affected by such a transition. If the group adopts a holding company structure, the principle of separation between industrial and financial capital would require the financial subsidiaries under Kim’s control to be fully separated from the group. If Kim proceeds with the separation of Hanwha Financial, it is expected to be centered around Hanwha Life, the company where he currently works. Hanwha Group’s financial affiliates are already structured under a vertically integrated system with Hanwha Life at the top. According to the 2024 business report, Hanwha Life holds controlling stakes in several financial affiliates, including Hanwha Life Financial Services (88.9%), a corporate general agency (GA); Hanwha General Insurance (63.3%); Hanwha Asset Management (100%); and Hanwha Savings Bank (100%). Additionally, Hanwha General Insurance controls Carrot General Insurance, and Hanwha Asset Management controls Hanwha Investment & Securities, forming a vertically integrated structure. The governance structure of Hanwha Group’s financial affiliates was streamlined in October 2023, when Hanwha Life acquired the full stake in Hanwha Savings Bank from Hanwha Global Asset. This move allowed Hanwha Life to exert influence over all financial subsidiaries within the group. Previously, Hanwha Savings Bank had been a subsidiary of Hanwha Global Asset, which is based on manufacturing and not classified as a financial company. Even though the governance structure has been simplified, Kim still faces several challenges before he can push for a full separation of the group’s financial affiliates. First and foremost, Kim needs to increase his ownership stake in Hanwha Life to strengthen his control. As of the end of 2024, Kim holds 300,000 shares of Hanwha Life, representing a 0.03% stake. Even if one considers his indirect influence through ownership in Hanwha, the largest shareholder of Hanwha Life, his effective stake amounts to only about 0.23%. Industry insiders predict that Kim could secure funding to acquire more shares in Hanwha Life if Hanwha Energy, in which he and his brothers hold stakes, goes public. However, the IPO process will take time. Some observers argue that it is premature to discuss a financial affiliate separation, considering the time required for Kim to secure funds and the conservative nature of the financial sector compared to other industries. A financial industry insider stated, “Among financial businesses, the insurance sector is especially conservative and heavily regulated,” adding, “It will be difficult to push for a swift separation of financial affiliates from the group, and this should be viewed with a long-term perspective.” Born in 1985, Kim has been laying the groundwork for a stable succession by achieving results in the global financial market while working at Hanwha Life for over a decade. However, he has not yet been appointed as an internal director. He joined Hanwha L&C in 2014, began his career as the head of the Digital Team at Hanwha Group’s Strategy and Planning Office, then transferred to Hanwha Life in December 2015. There, he served as Deputy Head of the Corporate Innovation Office, and was later promoted to Senior Managing Director, Executive Director, and Executive Vice President. In February 2023, he was promoted to President and appointed as Chief Global Officer. #HanwhaGroup #HanwhaLife #KimDongwon #financialseparation #holdingcompany #succession #financialsector #HanwhaFinancial #HanwhaEnergy #governancestructure
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- Crying Then Smiling: Samsung Semiconductor Profit to Soar from Q1 to Q4
- Samsung Electronics is estimated to have posted sluggish earnings in the first quarter of 2025 due to the off-season effect in the semiconductor sector, a decreased share of high-bandwidth memory (HBM) revenue, and continued losses in the foundry (semiconductor contract manufacturing) business. However, with prices of general-purpose DRAM and NAND flash beginning to rebound and expectations for the supply of HBM3E 12-layer chips in the second half of the year, along with increased memory capacity in smartphones, semiconductor profits are forecast to surge later this year. Operating profit from semiconductors, which is expected to reach only around KRW 300 billion (US$ 216 million) in the first quarter, is projected to rebound sharply to over KRW 8 trillion (US$ 5.77 billion) in the fourth quarter, becoming the main driver of Samsung Electronics’ overall performance this year. On April 1, financial information provider FnGuide estimated Samsung Electronics’ first-quarter earnings consensus (average projections by securities firms) on a consolidated basis to be KRW 77.12 trillion (US$ 55.6 billion) in revenue and KRW 5.16 trillion (US$ 3.72 billion) in operating profit. Compared to the same period last year, revenue is expected to grow by 7.23%, while operating profit would drop by 21.94%. The consensus for full-year 2025 operating profit stands at KRW 31.46 trillion (US$ 22.7 billion), down 4% from last year. Samsung Electronics is expected to announce its preliminary first-quarter earnings as early as April 7. Recently, several securities firms have projected Samsung Electronics’ first-quarter operating profit to fall short of even KRW 500 billion (US$ 360 million). NH Investment & Securities estimated Samsung Electronics' first-quarter operating profit at KRW 4.74 trillion (US$ 3.42 billion). It also projected the operating profit from the semiconductor (DS) division to be only KRW 307 billion (US$ 221 million). Ryu Young-ho, a researcher at NH Investment & Securities, said, “Samsung Electronics is expected to hit its annual low point in the first quarter due to a reduced share of HBM revenue, which drove DRAM sales growth in Q4 last year, weak NAND flash performance, and foundry losses,” adding, “This weak first quarter has already been anticipated.” Lee Su-rim, a researcher at Daishin Securities, also diagnosed that “continued losses from low utilization rates in the foundry sector and the shift to losses due to inventory adjustments and production cuts in NAND flash are the main factors behind the deterioration of Samsung Electronics’ Q1 performance.” However, investors are paying more attention to the rebound in memory semiconductor prices than to the poor earnings. According to market research firm DRAMeXchange, the fixed transaction price of high-performance DDR5 (DDR5 16Gb 2Gx8) DRAM as of March 31 was US$ 4.25, up 11.84% from February. NAND flash prices have also been rising for three consecutive months since January. Market research firm TrendForce forecast that prices of DRAM, including HBM, will increase by up to 8% in the second quarter compared to the first quarter, while NAND flash prices could rise by up to 5%. Due to a supply shortage where DRAM and NAND flash production cannot meet customer demand, urgent orders from clients are said to be increasing rapidly. As a result, Samsung Electronics is expected to push for price hikes in DRAM and NAND from April. △ DS Division Performance to Improve in Second Half Samsung Electronics' DS division is likely to see greater performance improvements in the latter half of the year. Mass production of fifth-generation HBM, known as HBM3E 12-layer, is expected to begin as early as the third quarter, with supply to NVIDIA to follow. Samsung Electronics has redesigned the DRAM used in HBM3E and aims to pass the HBM3E 12-layer quality test in the second quarter of this year. Vice Chairman Jeon Young-hyun, head of Samsung Electronics’ DS division, said during the regular shareholders' meeting on March 19, “Due to a delayed initial response to the AI semiconductor market, profitability improvements in memory products have also been delayed,” adding, “Starting from the second quarter or, at the latest, the second half of this year, we will shift to HBM3E 12-layer production and ramp up output to meet customer demand.” The expansion of memory capacity in the iPhone 17 is another factor boosting expectations for improved performance at Samsung Electronics. The iPhone 17 series, which Apple is set to unveil in the second half of this year, is expected to increase DRAM capacity from the current 8 gigabytes (GB) to 12GB in order to support the operation of its AI system, “Apple Intelligence.” Kim Dong-won, a researcher at KB Securities, said, “The increase in memory capacity in the iPhone 17 will serve as a catalyst for future mobile DRAM demand,” predicting that “the demand growth rate for DRAM and NAND from 2025 to 2026 (15%) will exceed the supply growth rate (10%).” KB Securities projected that Samsung Electronics' DS division operating profit will surge from KRW 2.8 trillion (US$ 2.02 billion) in the second quarter to KRW 6.3 trillion (US$ 4.54 billion) in the third quarter and KRW 8.1 trillion (US$ 5.84 billion) in the fourth quarter. Even U.S. investment bank Morgan Stanley, which had been negative on the memory semiconductor sector, recently raised its target price for Samsung Electronics from KRW 65,000 to KRW 70,000. Morgan Stanley researcher Shawn Kim said, “The expansion of the AI semiconductor market beyond the U.S. to other regions could work in Samsung Electronics’ favor,” adding, “Its strong financial structure provides excellent defense against economic downturns.” #SamsungElectronics #semiconductor #HBM3E #DRAM #NANDflash #foundrybusiness #smartphones #AIchip #iPhone17 #memorymarket
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- Chung Eui-sun’s ‘Innovation DNA’ Powers Energy Drive as Hyundai E&C’s Lee Han-woo Boosts Profitability
- Lee Han-woo, CEO of Hyundai Engineering & Construction, is bringing Hyundai Motor Group Chairman Chung Eui-sun’s “innovation DNA” into the energy business. As Lee takes the lead in innovating the industry by building a nuclear power-centered energy value chain, attention is focused on whether this will lay the groundwork for achieving Hyundai E&C’s highest-ever target operating profit margin of 8%. According to Hyundai E&C on March 31, Lee has set a plan to generate more than one-fifth of the company’s total revenue from the energy sector within five years on a standalone basis. In numbers, this means over KRW 5.1 trillion (US$ 3.68 billion), or 21% of the company’s projected KRW 25 trillion (US$ 18.03 billion) in total revenue by 2030. Considering that this year’s energy revenue target stands at about 3% of total sales, or approximately KRW 470 billion (US$ 339 million), it is an aggressive goal to increase that by more than tenfold in just five years. During the company’s first-ever “CEO Investor Day,” held on March 28—the first of its kind for a listed construction firm—Lee introduced three key growth strategies under the name “H-Road”: energy transition leadership, expanding global market dominance, and enhancing core products and intrinsic competitiveness. Notably, energy was placed first. Lee stated, “We aim to successfully implement H-Road and grow our annual order volume from KRW 17.5 trillion (US$ 12.62 billion) in 2025 to KRW 25 trillion (US$ 18.03 billion) by 2030,” adding, “In particular, we will increase the share of energy revenue to 21%.” The inclusion of CFO Kim Do-hyung and New Energy Business Division Head Choi Young, alongside CEO Lee as presenters at the event, is interpreted as a sign of Hyundai E&C’s strong commitment to expanding its energy business. Lee’s energy strategy can be summarized as taking the lead in innovation to secure early dominance in the market as a “first mover.” Hyundai E&C anticipates the global energy market will grow from 26,700 TWh in 2021 to as much as 66,000 TWh by 2051—more than double—making now the right time to lead in the energy sector. The company plans to focus on nuclear power and renewable energy, which are gaining attention amid rising energy demand and concerns over energy security and supply stability. Hyundai E&C aims to establish a comprehensive energy value chain encompassing production, storage, transportation, and utilization by expanding its influence from large-scale nuclear plants to small modular reactors (SMRs) and hydrogen production plants, while also introducing new package solutions. Lee especially positions the nuclear business, backed by Hyundai E&C’s strong construction capabilities, as the centerpiece for leading energy innovation. Hyundai E&C has a long history in nuclear power: from Korea’s first nuclear plant, Kori Unit 1 in 1971; to Hanbit Units 3–6, the first Korean-led project; to the first pressurized heavy water reactors, Wolsong Units 1 and 2; and to the first Korean-designed reactors, Saeul Units 1 and 2. With Shin Hanul Units 1–4, the company has now built 20 large reactors as lead contractor. In addition, it has experience constructing 10 reactors simultaneously, participated as lead contractor for the UAE’s Barakah Units 1–4—the first nuclear export project from Korea—and is now pursuing the Kozloduy Units 7 and 8 project in Bulgaria, the first AP1000 deployment in Europe. The company is also working to gain a foothold in SMRs and nuclear decommissioning and remodeling. Starting this year, Hyundai E&C plans to finalize the EPC contract for the Kozloduy Units 7 and 8 and begin construction on the U.S. SMR project, which it became the first Korean builder to design for commercialization. Looking to the future, it is actively conducting joint research with the Korea Atomic Energy Research Institute on fourth-generation SMRs such as molten salt reactors (MSR) and sodium-cooled fast reactors (SFR), as well as nuclear-based hydrogen production and decommissioning. Some view Lee’s energy leadership strategy as a sign that Chung Eui-sun’s vision for the group is extending to its construction affiliates. In the business world, many attribute the Hyundai Motor Group’s success—now in Chairman Chung’s fifth year—to his “first mover” strategy. Hyundai Motor and Kia sold 7.23 million vehicles globally last year, ranking third in market share. While the group had long remained around fifth place globally, except for a brief rise to fourth in 2020, it climbed to third in 2022 and has maintained the spot for three consecutive years. Hyundai’s development of the E-GMP dedicated electric vehicle platform, which allowed the group to take early leadership in the global EV market and enhance its brand image, as well as its technological leadership in hydrogen vehicles, are considered key achievements of Chairman Chung. In his inauguration speech in October 2020, Chung emphasized core values like a “creative group spirit that makes the impossible possible” and a “pioneer” mindset. In his New Year’s message this January, he stated, “We’ve continually transformed ourselves to pursue change and innovation, and we possess the Hyundai Motor Group DNA to overcome any challenge or adversity.” Lee’s push for leadership in energy is seen as a strategy to shift the paradigm of a construction industry facing growth limits and to ensure stable profitability. The residential business, which has long been the core of Korea’s large construction firms, has entered a phase where notable growth is no longer feasible. With ongoing construction cost hikes, even serving as a cash cow is becoming difficult. Hyundai E&C’s highest operating profit margins in the past decade were 6.2% consolidated and 5.3% standalone in 2016. On average, margins have remained below 4%. Considering Lee’s goal of achieving an 8% operating margin by 2030 both on a consolidated and standalone basis, expectations are high for the energy business. Given the company’s solid profits from past nuclear projects, Hyundai E&C is expected to achieve even better profitability by positioning itself as a leader across the entire energy value chain. Over the past 10 years, Hyundai E&C has earned an average annual revenue of KRW 346.3 billion (US$ 249.6 million) and a gross profit of KRW 29.7 billion (US$ 21.4 million) from large-scale nuclear projects, with a gross profit margin of 8.6%. In addition to focusing on energy-driven growth, Hyundai E&C is also emphasizing the establishment of a sophisticated management system as a strategy to secure profitability. The securities industry also holds a positive view of Hyundai E&C’s energy-centered future strategy. Shin Dae-hyun, an analyst at Kiwoom Securities, said, “Hyundai E&C’s 2030 operating profit target may appear high, but considering its strong position in Seoul-based redevelopment and complex projects, along with its shift away from simple construction toward nuclear dominance, the company is likely to surpass its recent low-single-digit margin levels.” Kim Se-ryeon, an analyst at LS Securities, commented, “Given the limits of growth in Korea’s housing market, the gap will widen between companies that find new growth engines and those that don’t,” adding, “Hyundai E&C’s financial goals appear realistic, based on tangible business areas like large-scale nuclear, SMRs, and domestic development projects.” At the CEO Investor Day, Lee said of the nuclear business, “We are expanding our partnerships with global companies across Bulgaria, the U.S., and Europe. We possess the flexibility of nuclear technology that can be applied to various industries,” adding, “Through international cooperation, we aim to go beyond simple EPC and jointly explore new business opportunities while providing optimal solutions.” #HyundaiEandC #LeeHanwoo #ChungEuisun #nuclearenergy #SMR #energytransition #Hroadstrategy #constructionindustry #HyundaiMotorGroup #cleanenergyinitiative
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- HLB’s Jin Yang-gon to Try Again After Second FDA Rejection of Liver Cancer Drug
- “It breaks my heart that our plan to establish a lineup of three cancer treatments by next year and grow into a big pharma company focused on oncology by 2030 is being delayed.” This is what Jin Yang-gon, Chairman of HLB Group, said on March 31 ahead of a shareholder meeting held after the annual general meeting at the Daejeon Convention Center in Yuseong-gu, Daejeon. On this day, Chairman Jin repeatedly apologized to shareholders for the second failed attempt to bring rivoceranib to the U.S. market. Unlike last year’s general meeting, which was filled with anticipation for FDA approval and entry into the U.S. market, this year’s meeting—held after two failed attempts—was marked by a heavy silence. However, Jin maintained his confidence, stating that after receiving a Complete Response Letter (CRL) from the U.S. FDA on March 21, he plans to reapply for approval as quickly as possible. Immediately after the general meeting, during the shareholder Q&A session, most questions focused on the process following the CRL. Normally, when a pharmaceutical company receives a CRL, it sends a “Post Action Letter” to the U.S. FDA to understand the specific deficiencies pointed out. The FDA then responds, and based on the details received, the company typically proceeds to address the deficiencies. Chairman Jin had already announced a broad plan to reapply for drug approval as soon as possible after receiving the CRL on March 21. At the time, he stated that once the specific deficiencies were confirmed, the company planned to resubmit its application to the FDA by May. He also projected that if the identified issues were at the currently estimated level, the review would be classified as Class 1 (document-level deficiencies), allowing approval as early as mid-July. At the meeting, shareholders voiced concerns about whether the manufacturing facility of China’s Hansoh Pharmaceutical—the producer of camrelizumab used in combination with rivoceranib—was once again flagged, as it had been in the first CRL. Chairman Jin responded that while the Post Action Letter had not yet been received and the exact reasons were still unknown, he did not believe the issue was serious. He said, “I’m the one most eagerly waiting for the response to the Post Action Letter,” adding, “Although the details aren’t clear yet, FDA experts who’ve joined our U.S. subsidiary ElevateBio believe the presumed issues don’t require re-inspection, which would cause longer delays.” Shareholders also raised various concerns about Hansoh Pharmaceutical. Issues raised included whether the China-based drug manufacturer could be affected by U.S.-China tensions, and whether Hansoh had genuine interest in bringing camrelizumab—which is currently used in combination therapy with rivoceranib—into the U.S. market, despite being a global pharmaceutical player. Chairman Jin replied, “Hansoh Pharmaceutical is the world’s eighth-largest drugmaker, and camrelizumab is already a blockbuster drug generating KRW 1.5 trillion (US$ 1.08 billion) in annual revenue in markets like China.” He added, “Camrelizumab is the product that built today’s Hansoh Pharmaceutical, so I believe they will be committed to resolving this issue.” He also said that Hansoh is actively engaged in discussing the matter and is willing to share information within the bounds of what can be made public. Jin noted, “When we received the first CRL last year, Hansoh didn’t initially share detailed information, but this year they shared it immediately, showing a shift in attitude,” adding, “While the decision to disclose the Post Action Letter rests with Hansoh, if they share it, HLB will also share it with the market to the greatest extent possible.” Throughout the session, Jin repeatedly apologized and emphasized his determination to succeed this time. He said, “As the top decision-maker, I take full responsibility for the delays and sincerely apologize,” adding, “But it’s not over until it’s over, and I believe the real way to take responsibility is to quickly recover and deliver results.” #HLB #JinYanggon #rivoceranib #FDAapproval #CRL #camrelizumab #HansohPharmaceutical #oncology #bigpharma #biotechKorea
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- Kim Beom-soo Never Saw Kakao as 'Big Tech'—Raising Doubts About Its Survival in the AI Era
- The term ‘Nekao’ refers to the two major pillars of Korea’s IT industry: Naver and Kakao. Kakao has long been referred to as one of Korea’s representative “big tech” companies alongside Naver. But is Kakao truly a “tech” company? How does Kakao’s founder Kim Beom-soo define the company’s identity? Kakao categorizes its business domain as “manufacturing service industry” in its annual report. This is a stark contrast to Naver, which defines itself as “Korea’s representative IT tech company” in its own report. ◆ Distance from technology evident in board composition From its board composition, it’s clear that Kakao emphasizes platform business over technology. Among the three internal board directors, CEO Chung Shin-ah majored in business administration, CFO Shin Jong-hwan also studied business administration, and CA Council Compliance Team Leader Cho Seok-young has a law degree. Most of the outside directors also come from humanities and social science backgrounds, such as business, advertising, political economy, and law. The only board member with a STEM background is outside director Park Sae-rom, an assistant professor in the Department of Industrial Engineering at the Ulsan National Institute of Science and Technology. The same applies to Kakao’s top decision-making body, the CA Council. It focuses on brand communication, ESG, responsible management, and strategy—all areas centered on management and platform operations. There are no technology or AI experts in the CA Council. Both the board of directors and the top decision-making body emphasize management and strategy rather than technology, clearly reflecting Kakao’s corporate identity. ◆ Connecting technology over internalizing it: a platform company’s strategy Kakao is a platform company. From the very beginning, founder Kim Beom-soo’s strategy was not to develop and sell technology, but to connect with people who have technology and distribute it. In fact, Kakao has focused more on external partnerships and ecosystem building than on developing its own technology. Kakao’s services—whether in finance (Kakao Pay), content (Kakao Entertainment), mobility (Kakao T), or commerce (Kakao Makers)—all center around “connection.” In a 2012 interview with a Korean media outlet, Kim Beom-soo said, “We’re thinking about creating a virtuous cycle between content and commerce through the KakaoTalk platform.” The emphasis was on “structure” rather than technology. And that structure is the “platform.” ◆ In an era of intense tech competition, is a platform strategy enough? The challenge is that we now live in an era of intense “technology competition.” OpenAI, Google, Meta, and Microsoft are all directly developing technology and investing billions of dollars to build AI ecosystems in the generative AI battlefield. Domestic competitor Naver is also accelerating its transformation into an AI company by internalizing AI technology through “HyperCLOVA X.” Meanwhile, Kakao continues AI R&D through Kakao Brain and Kakao Enterprise, but the AI agent “Kananah” announced last year has yet to begin even a closed beta test (CBT). Concerns are also rising about unstable tech leadership, especially with the departure of Kim Il-doo, the former head of Kakao Brain and a key figure in AI development, in June 2024. ◆ Platforms over tech, focus on collaboration and connection instead of going solo Of course, there’s no need to develop every piece of technology in-house. In fact, many automakers are competing to advance autonomous driving technology, but more and more world-renowned automakers like Volkswagen, Ford, and General Motors (GM) are choosing not to develop their own autonomous driving platforms. Kakao also appears to be seeking its own “Kakao-style” solution. Using the KakaoTalk platform—the most dominant in Korea—as a foundation, the company is exploring a structure that creates new services by connecting with various tech firms, focusing on “linking” and “coordinating” external technologies rather than developing them in-house. A prime example is the recently announced partnership with OpenAI, a company known for its world-class technological capabilities. Of course, this doesn’t mean Kakao has completely abandoned internal tech development. Kakao is currently trying to find a balance between technology and platform. Not everything has to be built from scratch. An industry insider said, “Kakao is stronger at connecting than at creating,” adding, “The AI service ‘Kananah’ that Kakao is preparing will likely incorporate OpenAI’s latest AI technologies.” #Kakao #KimBeomSoo #AIstrategy #KakaoTalk #OpenAI #platformbusiness #techindustry #KakaoBrain #Kananah #SouthKoreaIT
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- LG Chem’s Shin Hak-cheol Targets U.S. with Koo’s Battery Push, Aligns with Trump
- Shin Hak-cheol, Vice Chairman of LG Chem, is expected to accelerate investments in battery materials in the United States this year. Expanding local production of battery materials in line with U.S. President Donald Trump's policy direction of internalizing the manufacturing value chain is becoming increasingly important in LG Chem’s business strategy. However, there is a movement within the United States to reduce support under the Inflation Reduction Act (IRA) following the launch of the Trump administration. Nevertheless, if the Trump administration maintains its policy stance of supporting batteries and materials, Shin's investments in the U.S. are likely to gain further momentum. On March 28 local time, LG Chem participated in the "Tennessee Manufacturing Forum," a policy forum hosted by the Tennessee Chamber of Commerce. At the forum, Ko Yoon-joo, Executive Vice President and Chief Sustainability Strategy Officer (CSSO) of LG Chem, participated in a policy discussion on the development of advanced industries and strengthening the materials supply chain in the U.S. Since December 2023, LG Chem has been investing KRW 2 trillion (US$ 1.44 billion) to build a cathode materials production plant in Tennessee. Once completed in 2026, the plant will have an annual production capacity of 60,000 tons, making it the largest cathode materials facility in the United States. This investment is seen as part of LG Chem’s broader effort to strengthen communication with the local industrial community. For Vice Chairman Shin, expanding battery material production in the U.S. is a key task for this year. This aligns with LG Group Chairman Koo Kwang-mo's emphasis on batteries as a core business for the group. At LG’s annual general shareholders’ meeting on March 26, Chairman Koo stated in a written message, “Industries like batteries are not only future national core industries but also key businesses for the group that we must grow.” Accordingly, Vice Chairman Shin has set a plan to reduce LG Chem’s total capital expenditures by about KRW 1 trillion (US$ 721 million) this year, considering uncertainties in the petrochemical industry, while concentrating investments on batteries and eco-friendly materials. On March 27, during the first group CEO meeting of the year held at the LG Academy in Icheon, Gyeonggi Province, Chairman Koo also told the CEOs, “It’s unrealistic to do well in all businesses, and that’s why it’s all the more necessary to make choices and focus.” Expanding the battery business also carries symbolic meaning for Chairman Koo, as it continues the legacy of his predecessor. The late Koo Bon-moo, former Chairman of LG, first encountered secondary batteries during a business trip to the U.K. in 1992. He identified them as a new growth engine for LG and launched the business in earnest by establishing a battery research center at LG Chem in 1995. The late Chairman Koo is remembered as a visionary leader who, even back then, envisioned applying batteries as a power source for vehicles. Globally, the main demand sources for large batteries are energy storage systems (ESS) and electric vehicles, and the U.S. is widely expected to show the most rapid growth among major markets. In particular, since the Trump administration took office this year, the U.S. has been emphasizing the internalization of value chains across key industries, focusing on local production. Alongside semiconductors and automobiles, batteries are one of the core industries where the U.S. seeks to internalize the value chain. For Vice Chairman Shin, targeting the U.S. market is essential to achieving success in the group’s battery business strategy. The fact that the U.S. urgently needs to raise its domestic production rate for battery materials presents an opportunity for Shin to expand his business. According to market research by S&P, the U.S. has achieved about a 75% domestic production rate in electric vehicle batteries, thanks to increased local investment by Korea’s three major battery companies, including LG Energy Solution. However, domestic production rates for battery materials such as cathodes and precursors are still significantly low. If LG Chem expands its production capacity for battery materials in the U.S., it can address President Trump’s desire to strengthen domestic manufacturing of battery materials, thereby creating a favorable environment for receiving government support. Moreover, Tennessee, where LG Chem is building its battery plant, is governed by a Republican politician, the same party as President Trump. Still, Vice Chairman Shin may adjust the pace of local investments, considering policy uncertainties under the Trump administration. There are growing expectations that IRA benefits will be reduced after the launch of the Trump government. LG Chem is facing unpredictable policy variables, including uncertainty around the continuation of the Advanced Manufacturing Production Credit (AMPC), which had been granted under the previous Biden administration. According to major foreign media, the prevailing view is that while the Trump administration may reduce support for electric vehicle purchases under the IRA, it is likely to maintain AMPC support for the battery and materials industry to build domestic value chains. This scenario would be a fortunate development for LG Chem. At the recent InterBattery exhibition held at COEX in Gangnam-gu, Seoul, Vice Chairman Shin responded to reporters’ questions about U.S. investments by saying, “We are closely monitoring the situation due to various changes.” #LGChem #ShinHakcheol #BatteryMaterials #TennesseeInvestment #KoreanBatteryIndustry #TrumpAdministration #IRA #BatterySupplyChain #ElectricVehicles #CathodeProduction
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- Hotel Shilla's Two Secret Weapons by Lee Boo-jin Rise Fast, Offering Support Amid Duty-Free Slump
- Lee Boo-jin, President and CEO of Hotel Shilla, is seeing a rebound in the performance of the subsidiaries she identified as new growth engines. While the earnings of these subsidiaries are not enough to offset the deficit from the struggling Shilla Duty Free business due to the downturn in the duty-free market, they are starting to provide Hotel Shilla with a modest cushion to lean on. According to performance data released on March 28, the two wholly owned subsidiaries of Hotel Shilla—SBTM and SHP—have shown a clear trend of improving profitability over the past three to four years. SBTM specializes in business travel solutions, including flight and train bookings, hotel and meal reservations, and visa processing. SHP is a company that manages fitness clubs under consignment. These two companies came into the spotlight after Lee first mentioned them as future growth drivers during a regular shareholders' meeting three years ago. At the time, Lee said, “New growth businesses such as SBTM and SHP will actively implement growth strategies across both online and offline channels through swift and efficient decision-making.” The fact that the two companies highlighted by Lee are now delivering improved results suggests that Hotel Shilla's growth strategy is beginning to take root. Looking at SBTM alone, its revenue has fluctuated. It recorded KRW 44 billion (US$ 31.7 million) in 2021, KRW 36.5 billion (US$ 26.3 million) in 2022, KRW 34.8 billion (US$ 25.1 million) in 2023, and KRW 36.7 billion (US$ 26.5 million) in 2024. However, the trend is different when it comes to net profit. SBTM’s net profit rose from KRW 1.075 billion (US$ 775,200) in 2021 to KRW 1.079 billion (US$ 777,100) in 2022, KRW 1.985 billion (US$ 1.43 million) in 2023, and KRW 3.677 billion (US$ 2.65 million) in 2024. In terms of net profit margin, it rose more than fourfold from 2.4% in 2021 to 10.0% in 2024. SBTM’s operating profit also showed a rising trend: KRW 1.2 billion (US$ 866,000) in 2021, KRW 1.567 billion (US$ 1.13 million) in 2022, KRW 1.7 billion (US$ 1.22 million) in 2023, and a sharp increase to KRW 4.3 billion (US$ 3.1 million) in 2024. This growth appears to be driven by an increase in overseas business trips by Samsung Group affiliates, which make up the majority of SBTM’s client base. The company suffered during the COVID-19 pandemic due to travel restrictions but has been stabilizing in the post-pandemic endemic phase. In 2023, internal transactions with Samsung Group accounted for KRW 26.6 billion (US$ 19.2 million), or 76.4% of SBTM’s total revenue of KRW 34.8 billion (US$ 25.1 million). Of this, Samsung Display accounted for KRW 13.8 billion (US$ 9.95 million), Samsung Electronics KRW 9.3 billion (US$ 6.7 million), Samsung Electro-Mechanics KRW 850 million (US$ 613,100), and Samsung SDI KRW 742 million (US$ 535,000). SBTM was in a tough spot as recently as 2021, partly due to frequent leadership changes. After being established in October 2017, the company was led for three and a half years by former CEO Ko Kyung-rok, who stepped down in May 2021. He was succeeded by Cho Jung-wook, then Executive Vice President of Hotel & Leisure at Hotel Shilla, but he resigned just four months later. Park Min, who had served as head of new business planning at Hotel Shilla, was next appointed as CEO, but he also stepped down after four months. The next CEO chosen by Lee Boo-jin was Lee Kang-il, a former executive of Hotel Shilla. He had quietly stepped down to become an advisor in Q4 2020 after the duty-free business took a hit from COVID-19, but returned a year later to lead the subsidiary. Under CEO Lee Kang-il’s leadership, SBTM appears to be seeing results in its management efficiency efforts. In 2024, SBTM's labor costs increased by about KRW 3 billion (US$ 2.2 million), but cost of sales and other operating expenses decreased by KRW 2 billion (US$ 1.4 million) and KRW 1.5 billion (US$ 1.1 million), respectively, leading to higher profitability. SHP is also improving its profitability. Revenue rose from KRW 39.1 billion (US$ 28.2 million) in 2022 to KRW 58.2 billion (US$ 42 million) in 2023 and KRW 64.4 billion (US$ 46.4 million) in 2024. Net profit increased from KRW 3.6 billion (US$ 2.6 million) in 2022 to KRW 4.4 billion (US$ 3.2 million) in 2023 and KRW 5.1 billion (US$ 3.7 million) in 2024. SHP was spun off as an independent legal entity in January 2022 from Hotel Shilla’s sports facility operations division. Hotel Shilla entered the fitness business in 1993 with the opening of the Samsung Sports Center. Based on its know-how in operating fitness clubs, Hotel Shilla opened VANT in 2004, which at the time was the largest fitness club in Asia. SHP is now known to operate dozens of offline fitness locations. The strong performance of SBTM and SHP is likely to provide some relief for their parent company, Hotel Shilla. Due to the slump in the duty-free market, Hotel Shilla faced major difficulties last year. The duty-free distribution (TR) division recorded an operating loss of KRW 75.7 billion (US$ 54.6 million), effectively erasing the KRW 64.5 billion (US$ 46.5 million) in operating profit generated from the hotel and leisure segment. Nonetheless, the improved profitability of the two subsidiaries, whose performance is included in Hotel Shilla’s consolidated results, is helping offset the overall operating loss to some extent. SBTM is even being considered as a potential asset for sale as part of Hotel Shilla’s financial restructuring efforts. A Hotel Shilla spokesperson commented, “The rumors about SBTM being up for sale are not true. Various options are being reviewed as part of our efforts to improve financial structure.” #LeeBooJin #HotelShilla #SBTM #SHP #newgrowthengines #dutyfreemarket #corporatesubsidiaries #businessperformance #SamsungGroup #Koreanbusinessleaders
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- Chang In-hwa Sharpens POSCO Group’s Restructuring, Steel Competitiveness Gains Now Crucial
- Chang In-hwa, Chairman and CEO of POSCO Holdings, has changed. Immediately after taking office, Chairman Chang displayed a gentle leadership style, embracing several executives who had previously followed former POSCO Holdings Chairman Choi Jeong-woo. However, a year into his term, his leadership has taken a sharper turn with aggressive restructuring and personnel reshuffles. What kind of changes will the POSCO Group undergo over the next two years? ◆ Chang In-hwa’s Relentless Drive for Reform Chairman Chang is transforming the structure of POSCO Group through high-intensity restructuring. The executive appointments carried out in December 2024 reflected Chang’s intentions to push for bold generational change, a zero-tolerance policy on safety incidents, increased internal promotions within business units, and expanded appointment of female executives. The number of executives was significantly reduced from 92 to 62. The number of promotions was cut by more than 30% compared to previous years. Executives born before 1963 stepped down from the frontlines of management, while younger talent born in the 1970s was actively promoted. In this wave of change, Lee Si-woo, former CEO of POSCO who served during former Chairman Choi’s tenure, and Jeon Joong-seon, former CEO of POSCO E&C and a close associate of Choi, also stepped down from management. Chairman Chang is also carrying out structural reforms by divesting low-profit businesses and non-core assets. In 2024 alone, he rebalanced 45 assets, including restructuring underperforming service centers in China and selling a heavy oil power generation company in Papua New Guinea, securing KRW 662.5 billion (US$ 477.8 million) in cash. In 2025, POSCO plans to carry out additional restructuring of 61 businesses, aiming to secure KRW 1.5 trillion (US$ 1.08 billion) in cash. This year, the dissolution of POSCO CNGR Nickel Solutions, a nickel refining joint venture with Chinese company CNGR, was decided. The sale of the Zhangjiagang Pohang Stainless Steel Plant in Jiangsu Province, China—classified as a low-profit asset—is also under review. POSCO International is proceeding with the partial sale of its textile plant operations in Uzbekistan, a business carried over from the Daewoo era. The cash secured through these efforts will be reinvested into core growth businesses and used for shareholder returns. #POSCOHoldings #ChangInHwa #restructuring #executivechange #assetdivestment #POSCOstrategy #businessreform #corporateleadership #Koreansteel #POSCOgroup ◆ Strengthening Steel Core Competitiveness, Chang In-hwa’s Determination Chairman Chang expressed his commitment to strengthening the core competitiveness of POSCO’s steel business upon taking office. At his inauguration ceremony on March 21, 2024, he said, “The steel business is the strong foundation of national industry and the group’s growth,” adding, “We will competitively develop innovative products that customers want, boldly promote equipment efficiency and process optimization, and build a coexistence ecosystem with demand industries.” However, his strategy to strengthen core steel competitiveness did not yield short-term results amid a worsening business climate. Last year, Korea’s steel industry faced an uncertain future due to the construction sector slump and aggressive price competition from Chinese steel imports. On February 20, the Trade Commission of the Ministry of Trade, Industry and Energy issued a preliminary determination that domestic industries were being harmed by dumping of Korean hot-rolled steel plates. The ministry announced that it would release countermeasures in March to block circumvention of dumping via steel imports. Global steel demand is also steadily declining. At a seminar titled “Changes in the Trade Environment of the Steel Industry and Response Strategies,” held at the National Assembly on December 10, 2024, Lee Yoon-hee, a researcher at the POSCO Research Institute, stated, “Due to continued low growth in global steel demand, oversupply issues are resurfacing.” He added, “Although positive growth in demand is expected for the first time in four years, the recovery remains below expectations,” and predicted that “without China’s will to restructure, efforts to correct the imbalance will face limitations.” The deteriorating external environment led to a drop in performance. In 2024, POSCO Holdings recorded revenue of KRW 7.688 trillion (US$ 5.55 billion) and operating profit of KRW 2.174 trillion (US$ 1.57 billion), down 5.8% and 38.4%, respectively, from 2023. Despite this, Chairman Chang has remained focused not on short-term performance but on securing breakthrough opportunities through ultra-competitive manufacturing capabilities. It is expected that the results of Chairman Chang’s determination will begin to emerge as early as this year. China is now entering into steel industry restructuring. At the 2025 National People’s Congress and Chinese People’s Political Consultative Conference (known as the Two Sessions), China mentioned plans to control crude steel production and promote industrial restructuring in the steel sector. The National Development and Reform Commission (NDRC) of China stated, “We will promote steel industry restructuring through production cuts,” adding, “We will introduce production reduction policies and industry regulations to end the current overheated competition.” Reuters and other foreign media analyzed that China's steel production cut could reach up to 50 million tons annually in terms of crude steel. Industry experts also predict that U.S. President Donald Trump’s policy of imposing a flat 25% tariff on imported steel and eliminating the quota system could benefit POSCO Group. Since POSCO has the capacity to mass-produce high value-added products through technological innovation, it is expected to benefit from the elimination of the quota system. One such product is POSCO’s cryogenic high manganese steel, which became the world’s first to enter mass production. High manganese steel is an alloy steel that contains 10–30% manganese in iron, capable of delivering various performance characteristics. It is a new material first developed by POSCO in 2013. Chairman Chang’s persistence is often cited as the key reason POSCO was able to succeed in developing high manganese steel. Drawing on his background as a researcher, Chang focused on high manganese steel development even during his time as POSCO President. For commercialization, he personally met with executives at Hanwha Ocean to persuade them to use high manganese steel in the fuel tanks of LNG-powered very large crude carriers (VLCCs). High manganese steel is known for its high strength, excellent wear and corrosion resistance, and ability to withstand extremely low temperatures. Because of these properties, it is used in tanks that store liquefied natural gas (LNG) and in fuel tanks of LNG-powered vessels. Considering President Trump is pushing forward an LNG project in Alaska, there is growing speculation that POSCO Group may benefit from it. On March 4 (local time), in a speech at the U.S. Capitol in Washington, D.C., President Trump stated, “We are building one of the world’s largest natural gas pipelines in Alaska,” and added, “Japan, Korea, and other countries want to invest billions of dollars and become our partners.” #POSCOHoldings #ChangInHwa #steelindustry #highmanganesesteel #manufacturingcompetitiveness #globalsteelmarket #Chinaovercapacity #Trumpsteelpolicy #LNGmarket #POSCOinnovation
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- Hanwha Backs Thriving Defense Business, While Kim Seung-mo Faces Financial Strain in Construction Division
- Hanwha Corporation, which serves as the holding company of Hanwha Group, is backing the defense business of its subsidiary Hanwha Aerospace by fully participating in the rights offering. However, some view this move as adding financial burden to Kim Seung-mo, the President and CEO of Hanwha Corporation E&C Division. Although Kim, who also serves as Chairman of Hanwha’s board, made the decision to support the growth of the subsidiary through the capital increase, the construction division—which is already under pressure—could face additional cash outflows and rising debt. According to Hanwha on March 27, the exact amount of Hanwha's participation in Hanwha Aerospace’s rights offering will be determined after the issue price is finalized on May 29. Hanwha Aerospace, the defense affiliate of Hanwha Group, is set to conduct a KRW 3.6 trillion (US$ 2.6 billion) rights offering, with new shares to be listed on June 24. In response, Hanwha held a board meeting the previous day and resolved to acquire all 1,620,298 shares allocated based on its 33.95% stake in Hanwha Aerospace at a tentative issue price of KRW 605,000 per share. The total amount is approximately KRW 980.3 billion (US$ 707.1 million). Some in the market had speculated that Hanwha might forgo its rights due to tight funding. However, the full participation appears to reflect the parent company's intent to maintain its stake in a key subsidiary and restore market confidence at the group level. Despite posting record-breaking results last year, Hanwha Aerospace is facing heavy criticism from the market for opting for the largest-ever rights offering in Korean corporate history, instead of using internal funds or loans. Last year, Hanwha Aerospace posted an operating profit of KRW 1.7319 trillion (US$ 1.2489 billion) on a consolidated basis, nearly three times the figure from the previous year. As of the end of last year, it held KRW 2.9677 trillion (US$ 2.139 billion) in cash and cash equivalents. While Hanwha Aerospace emphasizes the need for swift, large-scale overseas investments in response to rapidly changing global dynamics, Hanwha is framing its participation as part of enhancing shareholder value and responsible management. At a shareholders' meeting on March 25, Hanwha Aerospace CEO Sohn Jae-il said, “We considered borrowing for the investment plan, but a sharp rise in the debt ratio and worsening financial structure would be a disadvantage in competitive bids,” adding, “The rights offering was the best choice.” President Kim Seung-mo also stated in a press release the previous day, “I agree on the need for bold investment by Hanwha Aerospace, and I’m participating in the rights offering to enhance shareholder value and fulfill our responsibility as the major shareholder.” In its disclosure on the participation, Hanwha described Hanwha Aerospace as “a subsidiary expected to see continued high growth,” signaling strong confidence in the group's defense business. Analysts inside and outside the market believe Hanwha Aerospace is gaining growth momentum, which may ease some pressure on President Kim. However, there is also notable concern that the rights offering could bring both positive and negative implications for Hanwha. Hanwha plays the role of the holding company at the top of the group’s governance structure. It holds stakes in major subsidiaries such as Hanwha Solutions (36.15%) and Hanwha Life Insurance (43.24%), in addition to Hanwha Aerospace. Hanwha Aerospace is considered Hanwha’s most valuable subsidiary. Its performance directly impacts Hanwha’s consolidated earnings and financial health. Particularly, Hanwha Aerospace's earnings and financial indicators are expected to have a positive impact on Hanwha’s credit rating. Korea Investors Service and NICE Investors Service cite the improved creditworthiness and financial structure of core subsidiaries like Hanwha Aerospace as factors supporting an upgrade to Hanwha’s credit rating (A+). This is especially important as Hanwha Solutions (AA-) recently received a “negative” outlook due to poor performance and declining financial stability, making Hanwha Aerospace even more critical. On March 21, Korea Investors Service noted in a report on the rights offering, “We will monitor changes in the creditworthiness of Hanwha Solutions and Hanwha Aerospace, which support Hanwha’s credit rating,” adding, “Hanwha Aerospace (AA-/Stable) is expected to see a positive impact on its credit rating due to the capital increase from the rights offering.” On the other hand, there is criticism that the parent company is bearing the burden of financing investments in a strong-performing subsidiary. This could place a heavy strain on President Kim, who leads Hanwha’s construction division, especially as the division is under pressure to improve its finances amid recent underperformance. Hanwha plans to fund its KRW 980 billion (US$ 707 million) participation in the rights offering through a combination of cash and financing. Although only an overall plan has been announced and specific figures are yet to be determined, Hanwha’s current financial position shows limited cash reserves, which is considered a burden. As of the end of last year, Hanwha held KRW 186.8 billion (US$ 134.7 million) in cash and cash equivalents on a separate (non-consolidated) basis. For a company like Hanwha, whose core business is construction, this figure ranks third-lowest among the top 20 construction firms by the Ministry of Land, Infrastructure and Transport's construction capability assessment, after Kumho Construction (KRW 182.1 billion or US$ 131.3 million) and Seohee Construction (KRW 184.8 billion or US$ 133.2 million). As the construction industry struggles at the bottom of a downturn, many companies are striving to secure liquidity to ensure stability. However, with limited available cash, Hanwha’s construction division appears to be moving in the opposite direction by participating in Hanwha Aerospace’s rights offering. In reality, most of the capital for the rights offering is expected to come from borrowings, which would likely increase the debt ratio—a key indicator of financial soundness. Hanwha’s separate debt ratio rose to 220.9% at the end of 2022 after merging with Hanwha Construction, then fell to 209% at the end of 2023, and again to 194.3% by the end of last year. However, the rights offering participation this year introduces a new factor for an increase. It appears that Hanwha, not Hanwha Aerospace, will absorb the impact of a rising debt ratio. This financial burden could negatively affect Hanwha’s credit rating. Korea Investors Service and NICE Investors Service cite the increasing standalone financial burden as a factor that could lead to a downgrade in Hanwha’s credit rating. However, Hanwha Group stresses that Hanwha still has access to liquidity and that, at the group level, the benefits of growing a key affiliate and enhancing shareholder value outweigh the risks. It is understood that Hanwha used its cash holdings to repay debt and reduce the debt ratio, rather than hoarding cash, as part of a strategy to lower financial costs. Hanwha Group explained that the company’s available funds in the short term exceed KRW 900 billion (US$ 649 million), well above its current cash and cash equivalents. This figure includes KRW 180 billion (US$ 129.7 million) in cash and cash equivalents and undrawn credit lines. These undrawn lines refer to borrowing facilities that can be drawn or repaid as needed. Korea Investors Service pointed out, “Since the exact amount of participation and funding plan for the rights offering has not yet been finalized, it is difficult to predict Hanwha’s actual funding burden and changes in financial structure, so additional monitoring is needed.” A Hanwha Group official stated, “Hanwha’s borrowings and debt ratio will inevitably increase due to the rights offering participation,” but added, “However, the continued growth of Hanwha Aerospace will play a major role in increasing shareholder value not only for Hanwha Aerospace but also for Hanwha.” #Hanwha #HanwhaAerospace #rightsOffering #defenseindustry #creditrating #financialburden #constructionbusiness #corporatefinance #Koreanconglomerate #subsidiarygrowth
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- SK hynix Sells Out This Year's HBM Supply, Kwak Noh-jung Says Next Year's Will Be Gone by Mid-Year
- Kwak Noh-jung, President and CEO of SK hynix, announced that the entire production volume of high-bandwidth memory (HBM) for this year has already been sold, and the volume for next year is expected to be "sold out" within the first half of this year. He also stated that the advanced 1c DRAM process will be applied to various sectors and that the company will continue to maintain competitiveness in the next-generation 1d process. SK hynix held its 77th Annual General Meeting of Shareholders on March 27 at its headquarters in Icheon, Gyeonggi-do. Regarding this year’s business outlook, Kwak said, “Despite the continued spread of protectionism and geopolitical uncertainties, the demand for memory semiconductors in the artificial intelligence (AI) sector is surging due to increased investment by big tech companies.” Citing data from an external market research firm, Kwak projected that demand for HBM this year would increase 8.8 times compared to 2023. He also forecasted that demand for enterprise solid-state drives (eSSD) would rise 3.5 times. “Due to the nature of HBM products, they require high costs and long development times,” he said. “The volume for 2025 has already been sold out, and the 2026 volume is also expected to be sold out within the first half of this year.” He continued, “We will maintain technological competitiveness in the 1d-nano DRAM process,” adding, “We are preparing to apply the 1c-nano technology to various sectors.” The difficulty level of advanced DRAM processes increases in the order of 1a (4th generation), 1b (5th generation), 1c (6th generation), and 1d (7th generation), with higher generations offering better power efficiency and performance. Since HBM is made by vertically stacking DRAM, DRAM technology directly translates into HBM competitiveness. In the second half of last year, SK hynix became the first in the industry to succeed in producing DDR5 DRAM using 1c-nano technology. Rival Micron recently succeeded in developing the 1c-nano process, while Samsung Electronics is understood to have stabilized its 1b-nano technology. SK hynix is currently developing the more advanced 1d-nano technology. He also stated, “We will begin mass production of the sixth-generation HBM4 and the low-power memory semiconductor module 'SOCAMM (Small Compressed Add-On Memory Module)' this year.” He said, “We have provided samples of the 12-layer HBM4 product to customers and will begin mass production in the second half of the year,” adding, “We are working with major clients to respond to the SOCAMM market, and it is also scheduled for mass production this year.” SOCAMM is a low-power memory semiconductor module newly developed by Nvidia and will be installed in its upcoming AI server, the Blackwell Ultra (GB300), which is set to launch in the second half of this year. Due to its low power consumption, it is expected to be used in future industries such as robotics, autonomous vehicles, and AI PCs, and is being dubbed the next-generation HBM. Meanwhile, the proposals presented at the shareholders’ meeting, including the approval of financial statements, appointment of directors, and approval of director compensation limits, were all passed as originally proposed. Kwak was reappointed as an inside director, and Han Myung-jin, President and CEO of SK Square, was appointed as a non-executive director. The director compensation limit was set at KRW 15 billion (US$ 10.8 million). #SKhynix #HBM #AIsemiconductors #KwakNohjung #1cDRAM #1dDRAM #DDR5 #SOCAMM #HBM4 #Nvidia
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- Chung Ji-sun and Chung Kyo-sun’s Sibling Leadership at Hyundai Department Store Group—No Split?
- GS Group, LS Group, Shinsegae Group, and CJ Group are well-known in the business world for sibling or family management. Hyundai Department Store Group is also moving toward successful “sibling management” like these groups. Chung Kyo-sun, Vice Chairman of Hyundai Department Store Group, was promoted to Chairman of Hyundai Home Shopping in the year-end executive appointments in 2024. This not only strengthens the independent management system within the group but also increases the weight of responsibility in sibling management. Chairman Chung Kyo-sun is the second-largest shareholder of Hyundai GF Holdings, the holding company of Hyundai Department Store Group, holding a 29.14% stake as of the 2024 business report. Although there is about a 9.5 percentage point difference in shares with Chung Ji-sun, Chairman of Hyundai Department Store Group and the largest shareholder, it would be entirely possible for him to split off the affiliates if he wished. Nevertheless, Hyundai Department Store Group has chosen to continue sibling management rather than pursuing separation. Industry observers point out that the reason is the harmonious division of roles and joint management between Chairman Chung Ji-sun and Chairman Chung Kyo-sun. ◆ Hyundai Department Store’s sibling management moves toward “perfect division of roles” Chairman Chung Ji-sun leads the group’s core businesses such as retail, including Hyundai Department Store, and fashion brands like Handsome. In contrast, Chairman Chung Kyo-sun is focused on non-retail businesses, overseeing media operations through Hyundai Home Shopping and the food sector via Hyundai Green Food. The two operate their respective areas independently while maintaining a cooperative relationship across the group through the holding company Hyundai GF Holdings, thereby establishing a solid sibling management system. The strong interconnection between businesses such as Hyundai Department Store and Hyundai Home Shopping is another reason sibling management is more advantageous than splitting affiliates. Hyundai Home Shopping can leverage the brand power of Hyundai Department Store to generate distribution synergy, while Hyundai Department Store can accelerate “digital transformation,” a key retail trend, using Hyundai Home Shopping’s media commerce capabilities. ◆ What does Chung Kyo-sun’s promotion to Chairman of Hyundai Home Shopping mean? Some speculate that Chung Kyo-sun’s promotion to Chairman of Hyundai Home Shopping while retaining the position of group Vice Chairman could be a strategic move in preparation for future affiliate separation. There is speculation that he might eventually seek independence as the “Chairman” of a Hyundai Home Shopping Group. However, the prevailing view in the business world is that Hyundai Department Store Group is not currently considering affiliate separation. Hyundai Department Store Group is working to transform itself from a department store-centered retailer into a comprehensive retail group covering digital, media, and platform businesses. In this context, there is little reason to spin off Hyundai Home Shopping, which could become the central axis of its media business. Of course, depending on the business directions of major affiliates and the extent to which Chairman Chung Kyo-sun strengthens independent management, discussions about affiliate separation could resurface in the long term. An industry insider said, “If Hyundai Department Store Group had intended to pursue separation, the transition to a holding company would have been a much better opportunity,” adding, “Given that they dismissed the possibility of separation at the time and shifted to a single holding company structure, it seems unlikely they will move toward separation now.” Some in the industry also note similarities between Hyundai Department Store Group and GS Group in terms of sibling management based on “division of roles” and “joint management.” ◆ Learning from GS: A successful model of sibling management sustained for 20 years There are many large business groups that operate under sibling or family management. However, only a few, like GS Group and LS Group, have continued joint management without affiliate separation. Among them, GS Group is often cited as a model case of sibling management. Since separating from LG Group in 2004, each family branch within GS has independently operated its own affiliate while maintaining a stable sibling management system. President Huh Se-hong of GS Caltex, President Huh Seo-hong of GS Retail, and President Huh Yoon-hong of GS E&C each manage their respective areas with independence, while under the leadership of GS Group Chairman Huh Tae-soo, all family branches come together under the holding company GS to coordinate the group’s overall direction. The long-term stability of sibling management at GS Group—with no major power struggles—since its split from LG Group is attributed to this well-balanced structure. A source in the retail industry said, “Hyundai Department Store Group is not a business group composed of multiple family branches like GS Group,” but added, “If the group aims to maintain sibling management long-term without separation, clearly defining roles and ensuring an independent decision-making structure between brothers, like GS, will be key.” #HyundaiDepartmentStoreGroup #ChungKyoSun #ChungJiSun #siblingmanagement #HyundaiHomeShopping #GSGroup #businessleadership #corporategovernance #Koreanconglomerates #retailindustry
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- LG Electronics Teams Up with Microsoft on AI and Data Centers – Cho Joo-wan Set to Post Highest Profit in 4 Years
- Cho Joo-wan, CEO of LG Electronics, is accelerating structural transformation by strengthening cooperation with Microsoft (MS) in areas such as artificial intelligence (AI) agents, data center cooling systems, and quantum computing. As LG Electronics’ traditional home appliance business faces challenges due to competition from China, the company is expected to post its highest operating profit in four years by supplying MS with a large volume of data center chillers this year. According to industry reports compiled on March 26, CEO Cho Joo-wan met with Satya Nadella, CEO of MS, who visited Korea to attend the ‘Microsoft AI Tour in Seoul’ event. During the meeting, the two CEOs discussed various business collaborations related to AI. In particular, they are said to have specified cooperation on AI agents linked to home appliances, which the two companies are co-developing, as well as the scale of MS’s procurement of data center chillers. Cho reportedly proposed to Nadella that they pursue AI technology development together in the rapidly growing Indian market, citing the country’s strong research and development (R&D) talent as a key advantage. After the meeting, Cho posted on his social networking service LinkedIn, saying, “In an era where AI is transforming all industries, having a visionary partnership is extremely valuable,” adding, “We shared future strategies focused on co-developing AI agents, data center cooperation, and our journey in the Indian market.” Some observers speculate that the two may also have discussed cooperation in quantum computing. On February 20, Nadella posted on LinkedIn about quantum computing, to which Cho responded in a comment, “We are very excited about the innovation of next-generation computing and look forward to exploring potential collaboration opportunities (with LG Electronics).” In February this year, MS unveiled ‘Mayolina 1’, the world’s first quantum processor. The palm-sized processor can integrate over 1 million qubits—the basic unit of quantum computing—into a single processor. Nadella expressed confidence about the Mayolina 1, saying, “The prevailing belief was that practical quantum computing would take decades, but we believe it could become a reality within just a few years.” Strengthened cooperation with MS is expected to have a positive impact on LG Electronics’ performance. KB Securities forecast that LG Electronics will post KRW 22.4 trillion (US$ 16.1 billion) in revenue and KRW 1.4 trillion (US$ 1.0 billion) in operating profit in the first quarter of this year. This represents a 5% and 3% year-on-year increase, respectively. The annual operating profit is projected to rise 20% year-on-year to KRW 4.1 trillion (US$ 3.0 billion), marking the highest figure in four years since 2021. One of the key drivers of first-quarter performance is the increase in sales of ‘chillers’—data center cooling systems. MS recently completed final quality certification for LG’s chillers and liquid cooling systems and is expected to place large orders within the year. The AI agent being co-developed by LG Electronics and MS, which connects to the ‘smart home’, is also expected to contribute positively to performance. At the ‘AI Tour in Seoul’ event, LG Electronics unveiled its smart home robot ‘Q9’. Jeong Ki-hyun, Executive Vice President of LG Electronics, said, “Q9 plays a key role in the 'multi-AI home hub' strategy, connecting not only home appliances but all customer-centered elements by integrating MS AI technology into ‘Furon’, which learns lifestyle patterns and communicates.” AI agents, which can be used in various spaces such as smart homes, cars, mobile devices, and airports, are expected to reach a global adoption rate of 80% to 100% by 2026. LG Electronics plans to use big data from its 700 million home appliance users to train its AI agents. With the help of MS, the company aims to develop high-efficiency AI algorithms and generate significant revenue from AI services. With Cho’s push to transform LG Electronics into an AI-centered company, attention is focused on whether this strategy can offset recent sluggishness in the home appliance business. The United States is expected to impose a 25% tariff on LG Electronics’ home appliance exports from its Mexican production base starting next month, which could negatively impact its sales in the U.S. LG plans to shift production to its Tennessee plant if the Trump administration enforces tariffs, but the relocation is expected to cost several hundred billion won. Global demand for home appliances is also declining. According to Statistics Korea, global home appliance sales in 2023 stood at KRW 33.98 trillion (US$ 24.5 billion), down KRW 1.83 trillion (US$ 1.3 billion), or 5.1%, from the previous year. Compared to 2021, when sales reached KRW 38.21 trillion (US$ 27.6 billion), the figure is down KRW 4.23 trillion (US$ 3.1 billion), or 11%. Most forecasts suggest that demand will remain sluggish this year as well. However, the decline in logistics costs, such as shipping fees, which negatively affected last year’s operating profit, as well as LG’s efforts to expand into new markets such as India, Brazil, and Indonesia, are expected to positively impact performance. #LGElectronics #ChoJoowan #Microsoft #SatyaNadella #AIagents #datacentercooling #quantumcomputing #Mayolina1 #Q9robot #smartHome #AIbusiness #chiller #AIcooperation #LGAItransformation #semiconductors #IndiaMarket #electronicsindustry
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- 10 Years of Park Jeong-won at Doosan – Next in Line: Park Jin-won or Park Gee-won
- “All employees must have the mindset of ‘solidifying the present while preparing for the future.’” This is what Park Jeong-won, Chairman of Doosan Group, said in his 2025 New Year’s address. This statement aligns with the management philosophy Park has consistently pursued over the past ten years as the head of Doosan Group. His ten years of leadership are widely regarded as a period in which he transformed and revived Doosan Group through bold decisions, much like the saying “turning a crisis into an opportunity.” Park is rewriting the record as the longest-serving chairman since Doosan adopted its sibling-based management system in 1996, and he is now establishing new business pillars for the future, including small modular reactors (SMRs), hydrogen, robotics, and artificial intelligence. ◆ Seeking the Future in Clean Energy, Smart Machines, Semiconductors, and Advanced Materials Recently, Park Jeong-won has been focusing on smart machines, semiconductors, and advanced materials to ride the wave of AI growth. Doosan Tesna’s semiconductor back-end process business, the semiconductor materials and components business of Doosan’s Electronics BG, and the smart machine business, including robotics, are all interlinked with artificial intelligence. Park has paid close attention to these business linkages and has consistently emphasized creating synergy between them. At CES 2024, Park said, “Doosan possesses technologies and products that apply artificial intelligence in collaborative robots and construction machinery, and we have strong competitiveness. We must continue to explore how AI technologies can be connected to our businesses and seek new opportunities.” Park’s strong emphasis on AI and semiconductors is likely rooted in his past experience overcoming challenges in developing gas turbines and eventually achieving success. When Doosan Enerbility began developing large gas turbines around 2013, many doubted it could achieve independent development. Nevertheless, under Park’s unwavering leadership, Doosan continued development and in 2019 succeeded in becoming the world’s fifth company to independently develop a 270MW large-capacity gas turbine for power generation. This technological development effort laid the foundation for Park’s vision of a business portfolio centered on three major pillars: energy, robotics, and advanced materials. However, his business restructuring efforts have not always gone smoothly. In July 2024, Doosan Group tried to restructure its business portfolio around the three core sectors by having Doosan Robotics absorb and merge with Doosan Bobcat, leading to the latter's delisting. However, the plan was scrapped due to controversy over shareholder rights and a request from the Financial Supervisory Service for a revised report. Later in October of the same year, Doosan proposed bringing Doosan Bobcat under Doosan Robotics as a subsidiary without delisting it, but this plan was also withdrawn. The reason was the unexpected imposition of martial law by the Yoon Suk-yeol administration, which caused stock prices to plummet and made it difficult to continue restructuring efforts. ◆ Overcoming a Liquidity Crisis Through Painful Restructuring Park Jeong-won appears to remain committed to restructuring the business portfolio. In his New Year’s address this January, he said, “Let stability be the base, and when opportunities arise, let’s respond swiftly. Even if the current market conditions are tough, opportunities will surely come,” adding, “For collaboration across departments and divisions, active communication and new initiatives must be strongly encouraged.” This strong will was also a driving force in overcoming the severe liquidity crisis Doosan Group faced in 2019. At the time, continued losses from Doosan Construction increased the group's financial risks, and with the onset of the COVID-19 pandemic in March 2020, Doosan Group submitted a self-rescue plan to creditors and requested emergency financial support. Doosan Group then put up for sale key assets such as Doosan Tower, Club Mow CC, Doosan Solus, and the Moto Roll BD, and even promoted the sale of its core affiliate Doosan Infracore. Some speculated that “Doosan will be left as an empty shell.” Still, Park pushed ahead with restructuring without wavering. In a message to employees at the time, he said, “Regardless of the reasons, we take the social impact and responsibility of Doosan Heavy Industries’ crisis very seriously,” and added, “We believe Doosan bears not only financial debt but also social debt, and we will undergo painful reforms.” Thanks to his efforts, Doosan Group graduated early from the creditor-led management program in February 2022—just 23 months later. It is now regarded as a model case of corporate restructuring in Korean business history. ◆ Park Gee-won and Park Jin-won Emerge as Successor Candidates Attention is now shifting to who will succeed Park Jeong-won as the next chairman of Doosan Group. The leading candidates are Park Jin-won, Vice Chairman of Doosan Industrial Vehicle, and Park Gee-won, Chairman and CEO of Doosan Enerbility. Park Jin-won is being considered because he is the eldest son of former Chairman Park Yong-sung, the third son of Doosan’s founding chairman Park Doo-byung, thus fitting the tradition of sibling-based management and primogeniture succession. Born in 1968, Park Jin-won joined Doosan Beverage as a junior employee and worked for three years at TriC, the core strategic planning unit established by Park Yong-man, building his reputation as a strategy expert. As of March 2025, he holds a 3.64% stake in Doosan, the third-largest among shareholders after Park Jeong-won and Park Gee-won. However, he is not currently involved in Doosan’s core businesses, and he received a suspended indictment in 2021 in relation to the anesthetic drug propofol—both considered significant weaknesses. Park Gee-won, Park Jeong-won’s younger brother, is regarded as a strong contender due to his influence in the group stemming from his stable leadership of Doosan Enerbility, a key affiliate. Born in 1965, Park Gee-won is credited with putting next-generation businesses like small modular reactors (SMRs) on a stable path. At present, Park Gee-won appears most likely to succeed as the next group chairman, given his influence inside and outside Doosan Group. However, if this happens, management rights would have been passed down solely within the family line of honorary chairman Park Yong-gon, potentially provoking resistance from the Park Yong-sung branch of the family. ◆ The Nightmare of the “Brother Feud” Doosan Group’s sibling-based management has seen many growing pains before settling into its current form. Conflict over management rights among brothers began with a clash between Honorary Chairman Park Yong-gon and former Chairman Park Yong-oh. In 1996, Park Yong-gon handed over the chairmanship to his younger brother Park Yong-oh, but in 2005, he advised him to retire at the end of the year, citing his 10-year tenure. However, Park Yong-oh resisted and accused his two younger brothers—Park Yong-sung and Park Yong-man, who were next in line for the chairmanship—of corruption, releasing this information through a tip-off. Prosecutors later confirmed the corruption allegations, leading Park Yong-sung and Park Yong-man to step down from management. They later returned to the business world through special pardons. But Park Yong-oh, who tried to break the tradition of sibling-based management, was completely expelled from the Doosan founding family. In 2009, the fourth son, Park Yong-hyun, took over as chairman, followed by the fifth son, Park Yong-man, in 2012, and finally Park Jeong-won in 2016. Since then, Doosan’s sibling-based management has remained relatively stable. Today, Doosan Group has stabilized through restructuring and currently shows no signs of major internal conflict. Park Jeong-won is still relatively young and may continue as chairman for the long term. One potential scenario is that Park Jin-won accepts Park Gee-won’s succession, or that he first takes over as chairman in line with family tradition and later passes the role to Park Gee-won. #DoosanGroup #ParkJeongwon #ParkJiweon #ParkJinwon #DoosanEnerbility #DoosanRobotics #DoosanRestructuring #SMR #AIbusiness #Koreanconglomerates #corporatesuccession #siblingmanagement #crisismanagement #Doosanhistory #cleanenergy #smartmachines #semiconductors #advancedmaterials
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- Is GS E&C Changing Under Owner-CEO Huh Yoon-hong? Plant and Safety Will Be the Litmus Test
- "Based on safety and quality, we will reinforce the fundamentals of the construction business." This was the message delivered by Huh Yoon-hong, CEO and President of GS Engineering & Construction (GS E&C), to employees during the 2025 New Year’s kick-off ceremony. On its own, it may sound like a typical pledge made by a construction company CEO at the start of the year. What makes this message special lies in the 'person' who said it and the 'place' where it was said. Huh is the only owner-CEO among top executives at major construction companies. Moreover, he held the New Year’s ceremony not at an event hall or office, but at the plant construction site of the 'Daesan Coastal Industrial Waterworks Construction Project.' The significance of the message lies in the fact that the owner-CEO personally visited the site, held the ceremony on-site, and emphasized safety and quality. On March 6, Huh also visited a construction site for GS E&C's 'Xi' brand to inspect safety. These moves by Huh indicate that GS E&C’s key themes for 2025 are 'plant' and 'safety.' ◆ Can Quick Decision-Making and Responsible Management by the Owner Deliver Results in Plant and Safety? The emphasis on 'plant' and 'safety' by Huh is all the more meaningful because GS E&C operates under an owner-management system. Most major construction firms in South Korea are run by professional managers. While Hyundai E&C, DL E&C, POSCO E&C, and Daewoo E&C are all led by professional executives, GS E&C is managed directly by Huh Yoon-hong, a fourth-generation member of the GS Group's founding family. From June 2013 to 2023, GS E&C maintained a professional management system under former CEO Lim Byeong-yong. However, after Lim stepped down due to the Incheon Geomdan apartment collapse incident, Huh Yoon-hong took over as CEO and President in the year-end executive reshuffle of 2023, transitioning the company into an owner-management structure. Compared to professional management, the advantages of owner-management include 'quick decision-making' and 'responsible management.' These traits of owner-management are expected to be particularly evident in GS E&C's focus on 'plant' and 'safety' this year. ◆ The Future of GS E&C Lies in the Plant Sector — The Power of Fast Decision-Making GS E&C's focus on the plant business highlights the advantage of quick decision-making under owner-management. The company began expanding its plant division in earnest after winning the KRW 1.7 trillion (US$ 1.23 billion) 'Fadhili Gas Increment Program Package 2' project in Saudi Arabia. GS E&C plans to increase annual revenue in the plant sector to over KRW 1 trillion (US$ 721 million) starting this year and to maintain up to KRW 2 trillion (US$ 1.44 billion) annually from next year. In contrast, GS Enuma, a water treatment subsidiary that GS E&C had previously tried to grow as a new business, is now being sold. Leveraging the strength of owner-led rapid decision-making, the company is focusing on its core business — plants — while decisively cutting off non-essential operations. ◆ The 'Boneless Xi' Controversy and Safety — A Time That Calls for Owner’s Responsibility Safety is another area where the strength of responsible management under owner-leadership can be applied. While most construction company CEOs emphasize safety and internal stability, there’s a noticeable difference in weight when it is the owner, not a professional manager, who speaks about safety. GS E&C suffered a major blow to its brand credibility due to the 'Boneless Xi' controversy that began in 2023. Although time has helped gradually fade the stigma, the brand image has not fully recovered. In this context, the merits of responsible owner-management can play an important role in rebuilding trust in GS E&C. Huh Yoon-hong is not stopping at declarations — he is actively visiting sites to emphasize safety. Since last year, Huh has designated the first Thursday of every month as 'Safety Inspection Day' and has been personally visiting construction sites. At the 'Xi' brand renewal event (Xi Reignite) held in November last year, Huh stated, “The rebranding of Xi is not just about changing the image, but laying the foundation by strengthening the fundamentals,” expressing his intention to improve the residential environment through more innovative technology and services. ◆ Huh Yoon-hong’s Second Year as CEO — Is Owner-Management Showing Results? Huh Yoon-hong’s owner-management is starting to show some results. In 2024, GS E&C recorded KRW 12.7485 trillion (US$ 9.19 billion) in consolidated sales and KRW 325.2 billion (US$ 234.4 million) in operating profit. Although the estimated 2024 operating margin of 2.6% falls short of the 4.5% in 2022, it is still viewed positively considering the construction industry's ongoing downturn, especially as the company successfully reversed the massive operating loss recorded in 2023 and returned to profitability. GS E&C has faced various crises. The brand's trust was shaken by the 'Boneless Xi' controversy, and continued uncertainty in the global construction market forced a strategic pivot. Now, with Huh Yoon-hong strengthening internal operations through direct site involvement as the owner, attention is focused on how he will steer GS E&C in the years ahead. #GSEngineeringConstruction #HuhYoonhong #ownermanagement #plantbusiness #constructionsafety #BonelessXi #Xibrand #constructionindustry #responsibleleadership #constructionCEO
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- Hana Financial Enters Ham Young-joo’s Second Term, Pushes Value Growth Amid Non-Banking Weakness
- Hana Financial Group is officially entering the “second term of Chairman Ham Young-joo.” Chairman and CEO Ham Young-joo will lead Hana Financial Group for another three years. Chairman Ham is expected to continue focusing on Hana Financial Group’s growth during his second term. The group has laid out a growth blueprint centered on group synergy. In addition, plans to elevate Hana Asset Management to a group subsidiary are emerging as part of efforts to strengthen the non-banking sector. According to Hana Financial Group, the agenda to reappoint Chairman Ham as an internal director was approved at the 20th Annual General Meeting held on March 25. It was widely expected that the reappointment agenda would pass smoothly. This was because it received support from the National Pension Service, the largest shareholder, as well as a majority of foreign shareholders who collectively hold about 70% of the voting rights. As anticipated, the agenda passed the general meeting without any surprises. However, the process leading up to Chairman Ham’s reappointment was not entirely smooth. Chairman Ham still faces legal risks. While he won a final victory in an administrative lawsuit related to losses from overseas interest rate-linked derivative-linked funds (DLFs), he received a partial guilty verdict in the second trial of a hiring corruption case. If the Supreme Court upholds the guilty verdict, he will have to step down. As a result, global proxy advisory firm ISS recommended voting against his reappointment. Another burden for Chairman Ham was Hana Financial Group’s amendment of its internal governance regulations ahead of the chairman nomination process. Some viewed this as a move to accommodate his reappointment. Hana Financial revised its internal governance rules to allow directors to serve their full term even if they turn 70 during their tenure. This change enabled Chairman Ham to receive an additional three-year term. Despite these burdens, Hana Financial Group’s choice was Chairman Ham. On January 1, the Chairman Candidate Recommendation Committee (ChC) nominated him as the sole final candidate for the next term. Amid growing domestic and global uncertainties, the committee gave high marks to Chairman Ham’s proven leadership. In materials explaining the general meeting agenda, Hana Financial Group stated, “(Chairman Ham) has demonstrated sufficient experience and capability to handle both domestic and global political instability and increased financial market volatility,” adding, “He is the right person to enhance corporate value and shareholder returns through both stability and continuous change and innovation.” In return for the trust placed in him by Hana Financial Group and its shareholders, Chairman Ham is expected to focus on driving another phase of growth for the group during his new term. Chairman Ham has proposed “group synergy” as the group’s growth engine. Hana Financial Group is often seen as having asymmetry between its banking and non-banking affiliates. While Hana Bank competes for the top spot in net profit among South Korea’s four major banks, the group’s non-banking affiliates are considered relatively weak in competitiveness. The synergy between banking and non-banking affiliates is expected to be the key factor in Hana Financial Group’s overall growth. In his New Year’s address this year, Chairman Ham said, “Close collaboration within and outside the group is essential,” and added, “Our focus should be on enhancing the competitiveness of the non-banking sector and generating sustainable performance by expanding synergy among affiliates across the group.” Hana Financial Group is also reviewing a plan to elevate Hana Asset Management, currently a subsidiary of Hana Securities, to a direct subsidiary of Hana Financial Group. An industry insider said, “Designating it as a direct subsidiary rather than a sub-subsidiary changes the significance of the affiliate,” and added, “This shows Hana Financial’s intention to strengthen its asset management business.” The conversion of the asset management firm into a direct subsidiary is also seen as a way to enhance competitiveness in its non-banking portfolio. Among the four major financial groups in South Korea, Hana Financial is the only one that has an asset management company as a sub-subsidiary. It is also reported that Hana Financial Group is reviewing various plans to grow Hana Asset Management beyond simply converting it into a direct subsidiary. In its annual report on governance and compensation systems, Hana Financial Group stated, “Our 2025 management goal is to enhance corporate value through efficient capital allocation and strengthening of core business profits based on ‘solidity and collaboration,’” and added, “By strengthening the core competitiveness of the non-banking sector, we aim to build a foundation for sustainable growth with plans to increase both total assets and profits compared to 2024.” #HanaFinancialGroup #HamYoungjoo #leadershiprenewal #financialgrowth #groupstrategy #nonbankingbusiness #assetmanagement #HanaAssetManagement #governance #Koreafinance
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- Hyundai Motor Group's Chung Eui-sun Tackles Tariff Risks with U.S. Supply Chain Integration
- Chung Eui-sun, Chairman of Hyundai Motor Group, is taking a bold step in the U.S. auto market by pursuing supply chain vertical integration. This move is interpreted as Chairman Chung’s intention to eliminate uncertainties caused by tariff risks that have persisted since former U.S. President Donald Trump took office, while also directly confronting the world’s largest market—the United States. According to industry sources on March 25, Hyundai Motor Group’s decision to invest an additional US$21 billion (KRW 30.82 trillion) in the U.S. over the next four years is being seen as a clear display of Chairman Chung’s determination and boldness. On March 24 local time, Chairman Chung announced the new US$21 billion investment in auto-related parts, logistics, and steel at a press event held in the Roosevelt Room of the White House, hosted by President Donald Trump. Among South Korean business leaders, Chairman Chung is the first to stand alongside a U.S. president at the White House to announce such a large-scale investment. Hyundai Motor Group entered the U.S. market in 1986 by exporting the Excel sedan produced at its Ulsan plant. In its first year in the U.S., the group sold 168,000 units. Last year, Hyundai Motor Group sold a record 1,708,293 vehicles in the U.S. alone. This achievement reflects the results of nearly 40 years of effort, during which the company invested over US$20 billion (KRW 29.35 trillion) in the U.S. Hyundai Motor Group has set record-high annual sales in the U.S. for two consecutive years and ranked third in global automobile group sales for three consecutive years. However, the situation changed dramatically after President Trump, who took office this January, mentioned the possibility of universal auto tariffs. Since then, both domestic and international experts and securities firms have raised concerns that the Trump administration's auto tariffs could negatively affect Hyundai Motor Group's performance. As a result, attention turned to how Hyundai Motor Group would respond to Trump's tariff pressure. Rather than carry the uncertainty of tariffs, Chairman Chung chose to face the crisis head-on by investing in the U.S. value chain. At the New Year's event held in January at Hyundai Motorstudio Goyang in Gyeonggi Province, Chairman Chung said, “We don’t need to be discouraged by the challenges and uncertainties ahead,” and added, “External pressure can actually benefit us.” △Key investment in parts, logistics, and steel totaling US$6.1 billion Out of the total US$21 billion to be invested in the U.S. over four years, the key investment is US$6.1 billion (KRW 8.95 trillion) in parts, logistics, and steel. Chairman Chung is not only aiming to eliminate tariff risks but is also focusing on strengthening competitiveness through supply chain vertical integration. Hyundai Motor and Kia, along with their affiliated parts, logistics, and steel companies in the U.S., will work together to increase local sourcing rates and promote local procurement of key EV components such as battery packs. Even automotive steel sheets will be locally supplied. Hyundai Motor Group plans to build an electric arc furnace steel mill with a capacity of 2.7 million tons in Louisiana through Hyundai Steel. The planned steel mill will specialize in low-carbon automotive steel. On March 12, President Trump announced a 25% tariff on steel with no exceptions. The duty-free steel export quota previously applied to South Korea was also abolished on the same day. If tariffs are imposed on steel, the prices of steel used in auto parts and car bodies will rise, inevitably increasing vehicle production costs. This could weaken Hyundai Motor Group's price competitiveness in the U.S. market. However, Chairman Chung has decided to locally procure automotive steel sheets and components by building a steel plant in the U.S., which could actually give Hyundai a price advantage over competitors. Hyundai Motor Group will hold a completion ceremony for Hyundai Motor Group Metaplant America (HMGMA) in Georgia on March 26 local time. This comes two and a half years after the groundbreaking ceremony in October 2022. It will be the company’s first major manufacturing base in the U.S. since completing its large-scale Alabama plant in May 2005. The HMGMA manufacturing innovation platform includes an AI-based intelligent control system, eco-friendly low-carbon technologies, and human-friendly facilities. Hyundai Motor Group currently produces about 60% of the vehicles it sells in the U.S. locally. With HMGMA’s annual production of about 300,000 units, the group will establish a local production system of 1 million units in the U.S. when combined with the Alabama plant. The group also plans to increase HMGMA’s annual production capacity to 500,000 units. At the White House, Chairman Chung invited President Trump to visit HMGMA. Chairman Chung stated, “Hyundai Motor Group is proud to become a stronger partner in the future of American industry under your leadership,” and added, “I hope you will visit one of the most advanced manufacturing facilities and see firsthand our commitment to the U.S. and American workers.” #HyundaiMotorGroup #ChungEuisun #USinvestment #automotivetariffs #Trumpadministration #supplychain #EVstrategy #steelplant #HMGMA #automobileindustry
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- NACF Chairman Kang Ho-Dong Tightens Grip on Financial Units: Breaking State Control or Undermining Independence?
- Kang Ho-Dong, the Chairman of the National Agricultural Cooperative Federation (NACF), is strengthening his control over subsidiaries of NH NongHyup Financial Group as he enters his second year in office. At the end of last year, Chairman Kang appointed close associates or individuals from his hometown as CEOs of NH NongHyup Financial Group subsidiaries during the regular executive reshuffle. He personally visited financial affiliates such as NH Investment & Securities to review business plans and discussed ways to increase financial sector profits to better support agriculture and rural communities. Chairman Kang’s moves are seen as an effort to move away from the controversy over state-controlled finance and return to the core values of the agricultural cooperative—serving agriculture and farmers. However, some critics claim that Chairman Kang is undermining the managerial and personnel independence of NH NongHyup Financial Group. ◆ The unique relationship between NACF and NongHyup Financial Group Generally, financial holding companies are referred to as “ownerless companies” because, in principle, South Korea separates industrial and financial capital. According to the Financial Holding Company Act, the same person can hold no more than 10% of a financial institution's shares. Most financial holding companies in South Korea are subject to the separation of industrial and financial capital. This principle prevents large corporations from using financial subsidiaries as personal cash cows or allowing financial companies to exert excessive influence over general businesses. However, NH NongHyup Financial Group remains the only financial holding company in South Korea with an actual owner. Due to the unique nature of cooperative organizations established and operated with investments from nationwide cooperatives as nonprofit entities, it is exempt from the separation of industrial and financial capital. The NACF holds a 100% stake in NH NongHyup Financial Group. Accordingly, the Fair Trade Commission has designated NACF as the only “owner” of a financial holding company in South Korea. Nevertheless, to address the problematic governance structure of NACF, a measure to separate the credit business (financial sector) and economic business (non-financial sector) was implemented. NH NongHyup Financial Group was established in 2012 as part of this separation. The reasoning behind the split was that allowing the credit and economic sectors to focus on their respective areas would ultimately benefit farmers more. In a 2010 interview, then-NACF Chairman Choi Won-Byung stated, “If we enhance specialization through this separation and operate properly to increase profits, we can better support rural areas,” adding, “If specialization fails, competitiveness drops, leading to a depressed and hopeless rural economy.” Following the separation, NongHyup Financial Group restructured its business, launching NH NongHyup Life Insurance and NH NongHyup Property & Casualty Insurance to strengthen expertise in the insurance sector. It also acquired Woori Investment & Securities (now NH Investment & Securities), establishing itself as a financial holding company. However, the separation could not fully overcome the fundamental limitations of NACF’s governance structure. For more than a decade, there have been ongoing controversies regarding the NACF Chairman’s involvement in the personnel decisions of NH NongHyup Financial Group, which operates under the overarching control of NACF. ◆ Kang Ho-Dong, first directly elected in 17 years, accelerates efforts for a farmer-centric NACF Chairman Kang Ho-Dong was elected through a direct vote, the first such election in 17 years since 2007. Before 1988, the NACF Chairman was appointed by the president due to a special law enacted in 1962 under military rule regarding the appointment and dismissal of agricultural cooperative executives. With the democratization movement, the Agricultural Cooperatives Act was revised on December 31, 1988, changing the selection method to a direct election. During this period, every NACF Chairman elected through direct vote was subject to prosecution investigations. The first elected chairman, Han Ho-Sun, was arrested in March 1994 on charges including creating slush funds and received a sentence of two years and six months in prison, suspended for four years. Former Chairman Won Cheol-Hee was also sentenced to two years and six months in prison, suspended for three years, in April 1999 for embezzlement and breach of trust. Former Chairman Chung Dae-Geun served five years in prison for receiving bribes totaling KRW 11 billion (US$ 7.9 million). Due to repeated controversies, the NACF returned to an indirect election system, and the term was limited to a single four-year term. However, criticisms emerged that the indirect system failed to reflect the collective will of all cooperative heads. As a result, the Agricultural Cooperatives Act was amended in 2021, restoring the direct election system. In the 2024 NACF Chairman election, held for the first time in 17 years, eight candidates including incumbent Kang Ho-Dong ran. All 1,111 cooperative heads participated in the vote. Cooperatives with more than 3,000 members were granted two votes, making the total number of votes 1,252. In the first round, Chairman Kang failed to secure a majority with 607 votes. In the second round, he won with 781 votes, accounting for 62.3% of the total. Chairman Kang is considered to have greater legitimacy than his predecessors elected indirectly. He is using this legitimacy to focus all efforts on building an NACF that serves farmers. At a press conference held on March 6 at the Ministry of Agriculture, Food and Rural Affairs in Government Complex Sejong, Chairman Kang expressed his intention to expand the introduction of affordable smart farms and promote rice consumption and distribution innovation to improve farmers’ incomes. He stated, “Farm income has been stagnant at around KRW 10 million (US$ 7,210) for over 30 years. Due to the economic downturn, falling prices of rice and beef, and abnormal weather, farmers are struggling,” adding, “We will build a profitable agriculture system.” On March 12, the Korea NongHyup Export Council was launched to boost agricultural income through agri-food exports. Chairman Kang said, “We established the Korea NongHyup Export Council to strengthen export competitiveness and expand overseas markets,” adding, “We will develop export-focused cooperatives and build efficient support systems to achieve ‘profitable agriculture.’” ◆ Kang Ho-Dong’s increasing involvement in NongHyup Financial Group Chairman Kang is facing criticism for directly intervening in NH NongHyup Financial Group personnel matters while trying to realize the ideal of enhancing farmers’ actual interests. In March 2024, right after Kang’s inauguration, the CEO selection process for NH Investment & Securities triggered a personnel intervention controversy. Chairman Kang recommended Yoo Chan-Hyung, former NACF Vice Chairman and NACF affiliate, as the CEO of NH Investment & Securities. Meanwhile, Lee Seok-Jun, former Chairman of NH NongHyup Financial Group, opposed the recommendation, insisting that someone with securities expertise should be appointed. As Yoo was known to be a close aide of Chairman Kang, the move sparked accusations of parachute appointments. The Financial Supervisory Service (FSS) even announced it would directly investigate the allegations. Amid conflict with the financial authorities, NH NongHyup Financial Group’s Executive Candidate Recommendation Committee ultimately selected Yoon Byung-Woon, a candidate with securities expertise, as the final nominee. Chairman Kang failed to push through his preferred candidate. Despite the setback, Chairman Kang continued efforts to strengthen control over NH NongHyup Financial Group. Park Heung-Sik, head of the Gwangju Bia NongHyup Cooperative and considered one of Kang’s closest aides, was nominated as a non-executive director of NH NongHyup Financial Group. Non-executive directors participate in the group’s executive selection process through the Executive Candidate Recommendation Committee. Beyond non-executive directors, Kang expanded his influence by appointing members of his campaign team to key positions in NACF, its subsidiaries, and the NongHyup University. Chairman Kang’s actions were also criticized during the National Assembly’s audit of the Ministry of Agriculture, Food and Rural Affairs held on October 18, 2024. Democratic Party lawmaker Yoon Joon-Byung stated, “Of the 49 appointments made after Kang took office, none were internal promotions,” and criticized, “Since his inauguration, favoritism and parachute appointments have spread throughout NACF, its subsidiaries, and even NongHyup University, deepening the chairman-centric governance.” In response, Chairman Kang said, “Rather than being strictly from my campaign team, they were people who shared my vision during the election,” adding, “They were individuals who helped me in one way or another.” Chairman Kang’s push to strengthen control over NH NongHyup Financial Group was also evident in CEO and key executive appointments at the end of 2024. In the year-end reshuffle in December 2024, six CEOs of NH NongHyup Financial Group subsidiaries were replaced, most of them either NACF affiliates favored by Kang or individuals from his hometown region of Yeongnam. New NH Bank President Kang Tae-Young, from Jinju, Gyeongsangnam-do, is known to be a close aide. NH NongHyup Life Insurance Vice President Park Byung-Hee and NH NongHyup Property & Casualty Insurance Vice President Song Chun-Soo are also from Yeongnam, like Chairman Kang. The head of NH NongHyup Financial Group’s Strategic Planning Division, who acts as interim chairman during vacancies, is also a close confidant of Kang. Executive Vice President Lee Jae-Ho, head of the Strategic Planning Division, joined NACF in 1993 and served as head of the EU office and chief of strategic planning. He also served as the branch head of NongHyup Bank in Hapcheon County when Chairman Kang was the head of the Yulgok NongHyup Cooperative in Hapcheon. #KangHoDong #NACF #NHFinancialGroup #agriculturefinance #NongHyup #personnelcontroversy #SouthKoreabanking #cooperativestructure #directelection #financialregulation
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- Daewoo E&C Reaps 40 Years of Efforts in Nigeria, Chairman Jung Won-ju Races to Expand Global Presence
- Daewoo E&C has reaped the benefits of its 40-year-long efforts in Nigeria. Daewoo E&C's local subsidiary in Nigeria recorded the highest net profit among all overseas operations last year, supporting the company’s overall performance during a domestic economic downturn. Chairman Jung Won-ju of Daewoo E&C is expected to actively search for another promising overseas market to follow in Nigeria’s footsteps. According to Daewoo E&C’s business report released on March 24, the company’s local subsidiary in Nigeria (DECN, with Daewoo E&C holding a 49% stake) recorded a net profit of KRW 199.19 billion (US$ 143.6 million) last year. This was the highest among all of Daewoo E&C’s overseas subsidiaries in 2023. Another Nigerian subsidiary (DNL, with a 90% stake) also posted a net profit of KRW 83.43 billion (US$ 60.2 million) last year. Since entering the Nigerian market in 1983, Daewoo E&C has carried out a total of 71 projects worth around US$ 10 billion over 42 years, firmly establishing its presence in the local market, and this effort clearly paid off again last year. Given that Daewoo E&C’s performance declined last year due to the domestic economic downturn, the Nigerian market is now seen as a key pillar of the company's business. Daewoo E&C posted consolidated revenue of KRW 10.5036 trillion (US$ 7.6 billion), operating profit of KRW 403.1 billion (US$ 290.7 million), and net profit of KRW 242.8 billion (US$ 175.1 million) last year. These figures represent decreases of 9.8%, 39.2%, and 53.4%, respectively, compared to 2023. The importance of the African market, led by Nigeria, is also increasing. Since the acquisition of Daewoo E&C by Jungheung Group, Chairman Jung Won-ju has called himself a "global salesperson" and personally visited Nigeria in 2023 to build a local network. In April last year, he accompanied Minister of Land, Infrastructure and Transport Park Sang-woo on a visit to Rwanda, and in June of the same year, he held back-to-back meetings with African leaders visiting Korea for the Korea-Africa Summit. As of the end of last year, 60% of Daewoo E&C’s overseas order backlog of KRW 5.5989 trillion (US$ 4.0 billion) came from the African market. This is a significant increase compared to the end of 2023 (51.3%) and the end of 2022 (33.2%), and it has nearly doubled from 32.8% at the end of 2021, before Daewoo E&C was acquired by Jungheung Group. From Chairman Jung’s perspective, there is a strong need to boost the company’s underwhelming overseas order performance from last year. Daewoo E&C’s overseas order intake in 2023 was KRW 611.8 billion (US$ 441.1 million), only 20% of its target of KRW 3.05 trillion (US$ 2.2 billion). This was largely due to delays in planned orders caused by local conditions in overseas markets, pushing schedules into this year. As a result, Daewoo E&C has set a new order target of KRW 14.2 trillion (US$ 10.2 billion) for this year, a 23.4% increase from last year, demonstrating a strong will to secure more contracts. Given that the domestic market remains sluggish, about half of this target is estimated to come from overseas. Chairman Jung is also looking for another key business region beyond Nigeria. Early this year, his attention appears to be focused on Vietnam, which he has visited six times over the past three years. Daewoo E&C is currently developing the Starlake City new town in Hanoi, Vietnam. Its local affiliates such as THT Development, Daewoo E&C Vietnam, and The Heim all recorded net profits last year, contributing significantly to the company’s overall performance. Chairman Jung plans to replicate the success of Starlake City in southern Vietnam as part of his vision to grow Daewoo E&C into a "global developer." At the end of last year, he visited Binh Duong and Dong Nai provinces in southern Vietnam and signed investment agreements with local authorities. Chairman Jung said, “We are pursuing reinvestment projects in Vietnam based on the successful experience of the Starlake City new town,” and added, “Daewoo E&C’s strong competitiveness will greatly contribute to the economic growth of Binh Duong Province, and in Dong Nai Province, our goal is to build a vibrant, livable complex city inspired by the success of Starlake City.” In addition, Daewoo E&C’s projects in Iraq and Turkmenistan are expected to be key indicators of the company’s overseas performance this year. In Iraq, Daewoo E&C has secured a pipeline of projects worth approximately KRW 2.8 trillion (US$ 2.0 billion), including naval and air force bases in Al-Faw. Turkmenistan is where Daewoo E&C took its first step into Central Asia by winning a fertilizer plant construction contract last year. The main contract is expected to be signed in the first half of this year, although the construction cost has not yet been disclosed. A Daewoo E&C official said, “Our subsidiaries in Nigeria and Vietnam have posted strong results, greatly contributing to Daewoo E&C’s performance,” and added, “We will continue to strengthen our presence in overseas markets such as Iraq and Turkmenistan.” #DaewooE&C #NigeriaConstruction #JungWonju #AfricaInfrastructure #VietnamDevelopment #StarlakeCity #OverseasOrders #GlobalDeveloper #IraqProjects #TurkmenistanExpansion
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- Samsung Rides China’s Memory Boom: Soaring HBM for NVIDIA AI Chips, Eyes Automotive Supply
- Samsung Electronics Chairman Lee Jae-yong is expected to benefit from the booming memory semiconductor market in China. This is due to the surging sales of NVIDIA's AI chip “H20” for the Chinese market, which is equipped with Samsung’s fourth-generation High Bandwidth Memory (HBM3). Additionally, as Lee has personally met with executives like Xiaomi CEO Lei Jun to explore supplying automotive memory semiconductors, there is growing speculation that Samsung could expand its supply to Chinese electric vehicle manufacturers. According to the semiconductor industry on March 24, sales of NVIDIA’s AI chip “H20” for China have soared, driving up prices and creating a supply shortage. The H20 is an AI chip developed by NVIDIA to bypass U.S. semiconductor export restrictions to China. A recent report by Guosen Securities in China stated that the price of a server equipped with eight H20 chips is about 1.1 million yuan (KRW 220 million, US$ 158,670), which is at least 100,000 yuan higher than earlier this year. Following the emergence of “DeepSeek,” an AI investment boom has erupted in China, prompting major Chinese tech companies to sharply increase their purchases of NVIDIA’s H20. In particular, Chinese IT giant Tencent has launched large-scale investments in AI and is reportedly buying up H20 chips in bulk, leading to a short-term “shortage” of H20s in China. Other Chinese big tech companies like Alibaba and ByteDance are also making large purchases of H20s to build out their AI infrastructure. The H20 boom is directly contributing to increased HBM sales for Samsung Electronics. Since July of last year, Samsung has been supplying its fourth-generation HBM3 for use in NVIDIA’s H20 chips. Samsung is believed to be responsible for the majority of HBM3 supply for NVIDIA’s H20. Rival SK hynix is focusing on producing fifth-generation HBM3E and is reducing its production share of previous-generation HBM products. This year, HBM3E is expected to account for 89% of SK hynix’s total HBM output. U.S.-based Micron is still behind Samsung and SK hynix in production capacity. In contrast, Samsung is reportedly maintaining its HBM3 production capacity. According to a report by U.S. financial services firm Morgan Stanley, Samsung is supplying HBM3 to custom AI semiconductors (ASICs) developed by major tech companies, including AMD’s MI300, Tesla’s Dojo 1, and Microsoft’s Maia 200. In addition, with Samsung’s recent certification for NVIDIA’s fifth-generation HBM3E, full-scale supply is expected to begin in the second quarter, indicating a significant increase in HBM performance this year. Chairman Lee Jae-yong also appears to be aiming to expand Samsung’s supply of memory semiconductors for vehicles in China. Lee attended the China Development Forum (CDF) held in Beijing from March 23 to 24. During the forum, he visited Xiaomi’s electric vehicle plant with Qualcomm CEO Cristiano Amon and met with Xiaomi CEO Lei Jun. Some industry watchers speculate that Lee is negotiating memory semiconductor supply deals with Xiaomi and other Chinese EV makers. Samsung Electronics is working with Qualcomm to develop automotive semiconductors. Samsung is considered to hold a competitive edge over its rivals in the automotive memory semiconductor sector. Last year, Samsung began supplying low-power DRAM (LPDDR) for Qualcomm’s premium automotive platform “Snapdragon Digital Chassis.” More recently, the company unveiled the LPDDR5X Ultra Pro DRAM, the fastest in the industry. At the “Automotive Electronics Forum 2024” held in the U.S. in September last year, Samsung announced its development plans for seventh-generation HBM4E for vehicles. This version offers approximately five times the memory capacity and bandwidth compared to existing LPDDR products. Samsung’s sales in China have continued to grow. According to Samsung Electronics’ business report last year, its sales in China surpassed KRW 64.92 trillion (US$ 46.8 billion), a 53.8% increase from the previous year. This exceeded its U.S. sales of KRW 61.35 trillion (US$ 44.2 billion), making China Samsung’s largest revenue-generating country. It is estimated that around 60% of Samsung’s sales in China last year came from memory semiconductor sales. #Samsung #LeeJaeyong #HBM3 #NVIDIAH20 #ChinaAI #MemorySemiconductors #Xiaomi #ElectricVehicles #SemiconductorBoom #AutomotiveMemory
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- Chung Ki-sun Nears Final Hurdle in HD Hyundai Succession — More Than a Golden Spoon?
- Chung Ki-sun, CEO and Senior Vice Chairman of HD Hyundai and HD Korea Shipbuilding & Offshore Engineering, is undeniably a “gold spoon.” He is the grandson of Chung Ju-yung, the founder of Hyundai Group and a towering figure in the Korean economy, and the son of former National Assembly member Chung Mong-joon, who is also the largest shareholder of HD Hyundai. Chung is standing at the gateway to launching HD Hyundai Group’s owner-led management system. While Chung Mong-joon was active in politics, HD Hyundai had been managed under a professional management system. Chung entered Hyundai Heavy Industries, the foundation of HD Hyundai Group, and has been undergoing management training. Now, he is believed to be more than halfway through the process of transitioning to owner-led management. Given his status as a “gold spoon,” it is likely that Chung does not want the narrative to be that HD Group simply reverted from professional to owner-led management. “HD Hyundai, as a future builder, will take the lead in a fundamental ocean transformation through ‘Ocean Transformation,’ which will bring historical expansion to the human domain and sustainable growth for future generations.” This was part of his speech at CES 2023, held in Las Vegas, where he presented the theme of “a fundamental transformation of the ocean.” The fact that he made this announcement after becoming CEO of the group’s holding company in 2022 drew attention. To return to owner-led management with “honor,” two things are necessary for Chung: one is tangible achievements that align with his own stated vision, and the other is securing equity ownership in a legitimate manner. ◆ Toward Leading the Future Shipbuilding Industry Chung Ki-sun faces a number of challenges. First among them is achieving results in new business expansion. HD Hyundai is pursuing new projects such as hydrogen energy, artificial intelligence (AI), and robotics, in an effort to improve the company’s fundamentals. Chung is especially focused on integrating AI technology into shipbuilding. In his keynote address at CES 2024, he presented a vision that combines AI with shipbuilding technologies as a solution to the sustainability challenges facing humanity. He stated, “We will launch innovations that change the foundations of civilization through AI technology,” and introduced “X-Wads” and “X-Wise Xite” as the core technologies to realize this vision. “X-Wise” is an AI platform that supports unmanned and autonomous equipment operation and will be the foundational technology for all of HD Hyundai’s industrial solutions. “X-Wise Xite” is an intelligent site management solution that connects construction equipment in real time to build an optimized production infrastructure. The effort to integrate AI into shipbuilding is not new. Chung has long led AI-related projects. Since 2021, HD Hyundai has been working with Palantir on the Future of Shipbuilding (FOS) project. A future shipyard is a next-generation advanced shipbuilding facility that incorporates digital technologies such as data, virtual/augmented reality, robotics, automation, and AI. HD Hyundai expects that successful implementation of this future shipyard project will improve productivity at shipbuilding sites by 30% and shorten the construction period by 30%. Chung is also focusing on developing technologies aligned with the decarbonization trend in the marine and shipbuilding markets. HD Hyundai has been developing eco-friendly alternatives to traditional fossil fuel propulsion systems, such as LNG and ammonia, and has been securing related shipbuilding orders. A notable example is HD Korea Shipbuilding & Offshore Engineering’s KRW 490 billion (US$ 353.3 million) contract with a shipping company in Latin America to build three very large ammonia carriers (VLACs) in 2024, with over 10 VLAC orders secured in the same year. Ammonia is considered an eco-friendly fuel because it contains no carbon and emits no CO₂ when burned. Therefore, ammonia-powered carriers are expected to serve as a bridge toward hydrogen-fueled vessels. In his CES 2024 keynote in Las Vegas, Chung said, “We will build a hydrogen energy ecosystem that spans from sea to land and establish a global decarbonized energy value chain for the future.” Whether the AI integration and decarbonization projects led by Chung can create synergies with existing core businesses and result in tangible profits remains to be seen. ◆ Fierce Pursuit from Chinese Shipbuilders Another pressing challenge for Chung Ki-sun is fending off the rapid advances of Chinese shipbuilders. Chinese shipyards are expanding their market share through aggressive pricing, while HD Hyundai is responding with a high-value-added strategy focused on eco-friendly ship orders. However, as Chinese shipyards continue to improve their technology and receive strong government support, Chung must continue efforts to strengthen technological competitiveness and reduce costs. Chung is shaping HD Hyundai’s future through technology-driven management and organizational culture innovation. He has been focusing on enhancing the group’s R&D capabilities, achieving results in proprietary decarbonization technologies, and developing ammonia scrubbers. In 2024, HD Hyundai posted consolidated revenue of KRW 67.7656 trillion (US$ 48.9 billion) and operating profit of KRW 2.9832 trillion (US$ 2.15 billion), marking increases of 10.5% in revenue and 46.8% in operating profit compared to 2023. Its financial structure has also improved. In February 2025, Korea Investors Service upgraded HD Hyundai’s unsecured bond credit rating from “A (Positive)” to “A+ (Stable).” This followed a one-step upgrade in May 2023—after two years—and another upgrade just 1 year and 7 months later. ◆ Proven Leadership in STX Heavy Industries Acquisition Chung has also demonstrated his leadership capabilities in mergers and acquisitions. In August 2023, HD Korea Shipbuilding & Offshore Engineering acquired a 35% stake in STX Heavy Industries (now HD Hyundai Marine Engine) for KRW 81.3 billion (US$ 58.6 million), gaining the ability to develop not only large ship engines, but also smaller engines. At the time, HD Hyundai Group was competing with Hanwha Group for the acquisition, and the rivalry between Chung Ki-sun and his friend Kim Dong-kwan, Vice Chairman of Hanwha Group, drew attention. It is reported that Chung paid special attention to the M&A, as it allowed HD Hyundai to create a more diversified ship engine value chain and generate synergies with its existing businesses. Securities analysts also predicted that HD Korea Shipbuilding & Offshore Engineering would see accelerated performance improvement after the acquisition of STX Heavy Industries. Kang Kyung-tae, an analyst at Korea Investment & Securities, noted, “STX Heavy Industries has capabilities in ship engines, turbochargers, crankshafts, and even cabin production, which will contribute to improving HD Korea Shipbuilding’s performance.” After the acquisition, Chung visited the site to encourage employees. He greeted employees at the HD Hyundai Marine Engine plant (the new name after the acquisition) by arranging a coffee truck in front of the headquarters and personally handing out snacks. He said, “I have high expectations for HD Hyundai Marine Engine,” and asked employees to “embrace the sense of mission as a key pillar of the group and move forward together with one heart.” ◆ HD Hyundai Marine Solution Demonstrated Chung Ki-sun’s Management Ability Chung showcased his leadership skills during his management training process. In 2016, Hyundai Heavy Industries was facing its worst crisis since its founding. Due to the cyclical nature of the shipbuilding industry and intense global competition, the company posted losses of nearly KRW 5 trillion (US$ 3.6 billion) over just two years. At that time, Chung proposed a bold idea: to spin off the after-sales service (AS) and parts supply divisions and develop them into an independent company. This was an unprecedented move in Korea’s shipbuilding industry and a bold challenge to global players already established in Singapore, the Netherlands, and elsewhere. Internal opposition was strong. Still, Chung did not back down. He argued that a "moat" was needed to protect the group’s competitiveness against Chinese shipbuilders. Like a defensive structure surrounding a fortress, he emphasized the importance of having outer business units to safeguard the core shipbuilding operations. After a year of persuasion, a new company was established: HD Hyundai Marine Solution. Chung took direct responsibility by leading the company himself, and it became a crucial platform for HD Hyundai’s business diversification and recovery. ◆ How Will Chung Ki-sun Secure His Stake in HD Hyundai? Securing a stake in HD Hyundai is the final puzzle piece for Chung Ki-sun to fully transition to owner-led management. Currently, he owns only 6.12% of HD Hyundai. His father, Chairman Chung Mong-joon of the Asan Foundation, holds 26.6%. The most likely scenario for succession is a transfer of Chung Mong-joon’s shares to Chung Ki-sun. This, however, would result in a massive gift tax. Under current inheritance and gift tax law, stocks with controlling rights exceeding KRW 3 billion are subject to a maximum tax rate of 60%. Given that Chung Mong-joon’s HD Hyundai shares are valued at KRW 1.65 trillion (US$ 1.19 billion), Chung Ki-sun could face taxes of over KRW 800 billion (US$ 577 million). Chung’s annual salary from HD Hyundai and Korea Shipbuilding & Offshore Engineering is just over KRW 2.2 billion (US$ 1.6 million). Even factoring in the approximately KRW 20 billion (US$ 14.4 million) in dividends he receives from HD Hyundai and a maximum stock-backed loan of KRW 170 billion (US$ 122.6 million), it appears unlikely he could afford to purchase the shares outright. If dividends are increased regardless of performance, there will be criticism that only the major shareholder is benefiting. If Chung secures shares through other means and shortcuts are used in the process, public sentiment around the transition to owner-led management may turn cold. During the 2019 physical division of Hyundai Heavy Industries into the intermediate holding company Korea Shipbuilding & Offshore Engineering and Hyundai Heavy Industries, labor unions also raised suspicions that Chung Ki-sun would benefit from the move. #ChungKisun #HDHyundai #KoreaShipbuilding #succession #ownerleadership #CES2024 #AIshipbuilding #OceanTransformation #decarbonization #M&A
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- Hanwha’s $2.8B Funding Plan Backfires — Kim Dong-kwan Faces Fallout from Investor Rage
- Following the company's announcement of a paid-in capital increase on the 20th, Hanwha Aerospace's stock price plunged more than 10% on the 21st, sparking fierce backlash from shareholders. This has led to growing attention on whether the company can successfully raise investment funds through the rights offering. According to feedback from general shareholders of Hanwha Aerospace and the securities industry, controversy surrounding the company’s rights issue is intensifying. The company announced it plans to use the 3.6 trillion KRW (approximately 2.77 billion USD) it aims to raise from the capital increase for the following: - 600 billion KRW (approximately 462 million USD) for building a smart factory for modular charge systems (MCS) - 300 billion KRW (approximately 231 million USD) for UAV engine development and mass production facilities - 1 trillion KRW (approximately 769 million USD) for establishing defense production facilities overseas - 250 billion KRW (approximately 192 million USD) for a joint venture to produce Cheonmu (K239 MLRS) in Eastern Europe - 350 billion KRW (approximately 269 million USD) for a local joint venture in Saudi Arabia - 800 billion KRW (approximately 615 million USD) for equity investment in overseas shipyards The company also stated a goal of achieving 70 trillion KRW (approximately 53.8 billion USD) in revenue and 10 trillion KRW (approximately 7.7 billion USD) in operating profit by 2035. Compared to 2024, this represents a 330% increase in revenue and a 210% increase in operating profit. However, analysts point out that Hanwha Aerospace and its affiliates (Hanwha Ocean, Hanwha Systems) could fund these investments through operating cash flows, yet chose to go with a rights offering. Ahn Yoo-dong, a researcher at Kyobo Securities, said, “Hanwha Aerospace’s operating cash flow for 2024 is expected to reach 1.4 trillion KRW (approximately 1.08 billion USD). Given that the investments will be made over 3–4 years, it's disappointing that they opted for a rights issue.” Byun Yong-jin, a researcher at iM Investment & Securities, stated, “The company’s investment plan spans until 2030. Considering the five-year timeframe, if they had combined future cash inflows with a moderate issuance of corporate bonds, they could have reduced the size of the rights issue.” Yang Hyung-mo, a researcher at DS Investment & Securities, said, “Hanwha Aerospace is already allocating substantial cash to pre-planned expenditures, such as 1.3 trillion KRW (approximately 1 billion USD) for acquiring Hanwha Ocean shares on March 13, 64.2 billion KRW (approximately 49 million USD) for a rights offering for subsidiary HAA to acquire Australian shipbuilder Austal, 400 billion KRW (approximately 308 million USD) for planned capex, and 300 billion KRW (approximately 231 million USD) for smart factory investments. So, further investment funds will be needed.” However, he also warned, “Suggesting long-term growth through M&A funded by a rights offering could provoke investor concerns.” As of the end of 2024, Hanwha Aerospace holds 1.431 trillion KRW (approximately 1.1 billion USD) in cash and cash equivalents and other current financial assets (on a standalone basis). Its retained earnings (on a consolidated basis) exceeded 2.6 trillion KRW (approximately 2 billion USD) at the end of last year, a 162.8% increase from the previous year. In a briefing held after the announcement on the 20th, the company stated, “Management judged that if we miss this investment opportunity, we’ll fall behind global defense firms like Germany’s Rheinmetall. We may not even be able to maintain our current position given the nature of the market.” They added, “Although a gradual growth strategy is an option, current industry conditions are harsh, and we had no choice but to make this decision. We ask for shareholders’ understanding.” The market reacted coldly to the rights offering announcement. The company’s stock dropped 10% to 650,000 KRW (approximately 500 USD) in after-hours trading on the 20th. On the 21st, it fell to 608,000 KRW (approximately 467 USD) during trading hours, then recovered slightly to around 630,000 KRW (approximately 485 USD) by noon. If the stock price drops further, the final issue price to be confirmed on May 29 may fall below the tentative offering price of 605,000 KRW (approximately 465 USD) per share. In that case, the company will raise less than the targeted 3.6 trillion KRW (approximately 2.77 billion USD) from the offering. The decision to go with a rights offering appears to be linked to the company’s financial stability and debt ratio. The company’s standalone debt ratio rose from 227.4% in 2022, to 350.4% in 2023, and 393.1% in 2024. Its net borrowings (total borrowings minus cash equivalents) also increased: 1.528 trillion KRW (approximately 1.18 billion USD) in 2021, 994.2 billion KRW (approximately 764 million USD) in 2022, 2.157 trillion KRW (approximately 1.66 billion USD) in 2023, and 2.933 trillion KRW (approximately 2.26 billion USD) in 2024. Attention is also on how much the major shareholder Hanwha Corp., which holds a 33.95% stake, will participate in the capital increase. To participate proportionally under the name of “responsible management,” Hanwha would need to contribute 1.222 trillion KRW (approximately 940 million USD). However, Hanwha’s standalone cash holdings in 2024 are only 350.6 billion KRW (approximately 270 million USD). A Hanwha representative told Business Post, “The decision on whether to participate in the rights offering will be made by the Hanwha board of directors. Nothing has been finalized yet. Specifics will be determined following internal procedures such as the board meeting.” In Naver's Hanwha Aerospace investor forum, one user commented, “Even though the company could raise funds at its own expense, it’s avoiding any losses and pushing the burden onto retail investors, which dilutes stock value. Does this make sense?” Another user wrote, “This just shows how rotten the company’s ethics are.” Meanwhile, in the rights offering filing, Hanwha Aerospace said, “To minimize dilution of existing shareholders’ stakes while stably securing the target funds, we set a 15% discount rate.” They added, “On the other hand, capital increases aimed at corporate growth, such as R&D and facility expansion, tend to attract investor interest and thus perform well even with lower discount rates.”
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- Samsung Surges: ‘Do-or-Die’ Vow Ignites Foreign Frenzy, Memory Boom Ahead?
- As a series of favorable developments converge for Samsung Electronics, investor sentiment toward the company’s stock is showing signs of revival for the first time in a while. Even foreign investors, who had kept their distance, are now actively purchasing Samsung shares in response to these developments. According to the Korea Exchange on the 20th, Samsung Electronics' stock closed at 60,200 KRW, up 2.91% for the day. This marks the first time in about five months—since October 15 last year—that the company’s closing price has recovered to the 60,000 KRW range. The stock has now entered a rebound phase, with gains on March 17 (5.30%) and March 19 (1.56%) and staying flat on March 18. The recovery in foreign investor sentiment is especially notable. Foreign investors have been net buyers of Samsung Electronics for four consecutive trading days as of this date, purchasing nearly 1.5 trillion KRW worth of shares. Since the beginning of the year up to March 14, foreign investors had net sold approximately 2.6 trillion KRW of Samsung shares. Remarkably, more than half of that amount has been bought back in just four days. Ever since the AI industry emerged as a key focus, Samsung Electronics has faced criticism for falling behind rivals like SK Hynix in terms of technological prowess, leading to its stock being overlooked. Persistent concerns over a lack of innovation had weighed down the stock, but Samsung now appears to be renewing its commitment with determination. Last week, Samsung strengthened its board with technical experts at the annual shareholders' meeting. This move shifts the focus back to technology, addressing previous criticism that the company had been dominated by financial or crisis management experts. In addition, Samsung Electronics Chairman Lee Jae-yong emphasized a "do-or-die" mindset, sharing a sense of urgency. There is also growing optimism around a potential recovery in the traditional (legacy) memory semiconductor market. Legacy semiconductors had suffered from oversupply and falling prices, but with production facilities increasingly being allocated to AI-related semiconductors, supply of legacy chips has been declining. Particularly in China, demand for mid-to-low-end smartphones—key recipients of government subsidies under the new "replace the old with the new" (以旧换新, yiguhuanxin) policy—has been rising. However, local Chinese companies have been unable to meet the demand for legacy chips used in these phones. Amid this backdrop, global brokerage Morgan Stanley upgraded its investment rating for Samsung Electronics to “Overweight” on March 18. This is significant, as Morgan Stanley had previously issued harsh assessments of Korea’s semiconductor industry, contributing to a market downturn. Morgan Stanley also projected that Samsung would not only benefit from a rebound in legacy semiconductors, but also begin to gain competitiveness in AI-related chips, specifically high bandwidth memory (HBM), a key component. They predicted that Samsung will begin mass production of fifth-generation HBM3E and sixth-generation HBM4 chips in the second half of this year, catching up to SK Hynix. Despite global stock markets being weighed down by declining U.S. tech stocks and disappointment surrounding Nvidia’s GTC (GPU Technology Conference), Samsung is showing solid stock performance thanks to these positive catalysts. Analysts in the domestic securities industry are also starting to view Samsung as having entered a rebound trajectory. Lee Soo-rim, an analyst at DS Investment & Securities, wrote in a report that “Samsung Electronics is our top pick in the semiconductor sector through April.” He added, “There’s growing anticipation for price hikes across the memory segment. In particular, the recovery in profits driven by increased sales of mid-to-low-end smartphones in China is expected to be even stronger for Samsung.” Cha Yong-do, an analyst at LS Securities, also commented that “The memory industry is currently in a phase where expectations for a legacy semiconductor rebound are taking shape.” He went on to say, “With limited downside risk at the current price, if optimism around the leverage effect from a legacy rebound builds further, the stock could potentially rebound to as high as 80,000 KRW.”
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- Daewoo E&C Focuses on Cash Reserves and Board Stability in CEO Kim Bo-hyun’s First Year
- Daewoo Engineering & Construction(E&C) is focusing on improving its financial structure in its first year under full-fledged owner management. Kim Bo-hyun, CEO of Daewoo E&C, is expected to focus on accumulating cash while minimizing changes to the board of directors to stabilize the owner-management system by mitigating the impact of the real estate downturn and economic recession. According to Daewoo E&C’s 2024 business report released on March 20, the company’s current ratio stood at 211% at the end of last year, up about 50 percentage points from 159.4% at the end of 2023. Compared to September 2023 (185.5%), the ratio increased by about 30 percentage points. It has nearly doubled since the end of 2020 (121%), before Jungheung Group acquired Daewoo E&C. The current ratio, which is calculated by dividing current assets by current liabilities, is considered one of the most crucial financial indicators for assessing a company’s creditworthiness. Daewoo E&C’s efforts to enhance its financial structure are seen as a response to the downturn in the construction industry. The company's debt ratio stood at 192% at the end of last year, slightly higher than the 176.8% at the end of 2023 but about four percentage points lower than the 196% recorded in September 2023. Its cash and cash equivalents amounted to KRW 1.1617 trillion (US$ 837.5 million) at the end of last year, consistently increasing since June of the same year and surpassing KRW 1 trillion (US$ 721.2 million) again. The company's contingent liabilities related to real estate project financing (PF), which is considered a key risk factor in the construction industry crisis, also showed a declining trend. As of the end of last year, Daewoo E&C had provided credit enhancements amounting to KRW 1.685 trillion (US$ 1.215 billion) for PF-related projects. This figure decreased from KRW 1.7304 trillion (US$ 1.247 billion) at the end of 2023, continuing the downward trend from 2022, when it exceeded KRW 2 trillion (US$ 1.442 billion). The guarantee amount for bridge loans, which are considered riskier as they are borrowed in the early stages of a project before main PF funding, also decreased by approximately 33% from the previous year to KRW 460.1 billion (US$ 331.8 million) at the end of last year. Daewoo E&C has been maintaining a conservative management approach, and this trend is also reflected in its board composition. Since Jungheung Group’s acquisition of Daewoo E&C in 2022, two internal executives—former CEO Baek Jeong-wan and CEO Kim Bo-hyun (formerly an executive vice president)—have been serving as inside directors on the board since 2023. Kim Bo-hyun is the son-in-law of Jungheung Group’s founder, Chung Chang-sun, and led the acquisition team for Daewoo E&C. Chung’s son, Chung Won-joo, serves as chairman of Daewoo E&C and vice chairman of Jungheung Group, participating in Daewoo E&C’s management as a non-registered executive. In December last year, Daewoo E&C officially transitioned to an owner-management system by appointing Kim Bo-hyun as CEO, while Baek Jeong-wan stepped down from his CEO position. However, at the shareholders' meeting on March 28, Daewoo E&C will only address the agenda of appointing Kim Bo-hyun as an inside director. With Baek’s departure, the company is leaving the vacant inside director position unfilled. Since all outside directors are being reappointed, the move is seen as an effort to ensure board stability. A key factor behind this decision is Daewoo E&C’s declining performance due to the industry downturn. Last year, Daewoo E&C recorded consolidated revenue of KRW 10.5036 trillion (US$ 7.573 billion) and an operating profit of KRW 403.1 billion (US$ 290.7 million). Revenue fell by 9.8%, while operating profit dropped by 39.2% compared to 2023. Cash flow from operating activities also worsened, recording negative KRW 1.2835 trillion (US$ 925.6 million) in 2023, down from negative KRW 832.8 billion (US$ 600.4 million) the previous year. Kim Bo-hyun appears to be reinforcing a conservative management strategy to stabilize the company. This trend is evident in Daewoo E&C’s housing construction sector, which accounts for a significant portion of its revenue. In 2023, 65.1% of Daewoo E&C’s total revenue came from the housing construction sector. In 2022, Daewoo E&C surpassed KRW 5 trillion (US$ 3.611 billion) in orders for urban redevelopment projects for the first time in its history, ranking third in the industry. However, with the market downturn caused by the economic recession and high interest rates, the company shifted to a selective bidding strategy, which resulted in urban redevelopment orders totaling KRW 1.6858 trillion (US$ 1.216 billion) in 2023, lowering its ranking to fifth place. Last year, orders recovered to KRW 2.9823 trillion (US$ 2.151 billion), but the company maintained its fifth-place industry ranking. As of this year, Daewoo E&C has not yet secured any urban redevelopment contracts. In his New Year's address to employees, Kim Bo-hyun stated, “This year is expected to be the most challenging of the next three years, and we must focus on solid management with safety as our top priority.” He emphasized, “We need to consolidate our company-wide capabilities to eliminate risk factors and ensure financial stability through thorough project execution management.” #DaewooE&C #construction #realestate #financialstability #JungheungGroup #CEO #urbanredevelopment #SouthKorea #PFloans #businessstrategy
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- Hansae Nurtures Global Fashion Talent, Vice Chairman Kim Ik-whan’s Grand Vision in Action
- “Next Design Lab is not just an educational space. It will be an innovation platform where creative ideas become reality and academia connects with industry. Here, students will learn the latest trends, gain practical experience, and collaborate with companies to become leaders in the global fashion industry.” At the opening event of "Next Design Lab" held at Hongik University in Seoul, Kim Ik-whan, Vice Chairman and CEO of Hansae Co., Ltd., expressed his strong commitment to nurturing future talent in the fashion industry during his welcome speech. On March 20, a press conference was held at the Art & Design Valley of Hongik University in Seoul to commemorate the establishment of Next Design Lab. Next Design School is a research and educational institution jointly created by Hansae Co., Ltd. and Hongik University to cultivate talent. The event was attended by Kim Dong-nyung, Chairman of Hansae Yes24 Holdings, Kim Ik-whan, Vice Chairman of Hansae Co., Ltd., Park Sang-joo, President of Hongik University, Professor Lim Chae-jin of Hongik University, and Na Hoon-young, CEO of Project Design Group. Next Design Lab is a space dedicated to training students at Hongik University in everything from lifestyle design to AI-powered design, preparing them for global careers. The program is conducted with collaboration between industry experts and Hongik University faculty. Next Design Lab is not just a classroom. Spanning two floors—one underground and one above ground—it has been designed as a space where academia and industry converge. The first floor serves as an "idea exchange hub" where students can freely gather for discussions and small workshops. Meanwhile, the basement floor is utilized as a practical education space that can accommodate up to 60 students. Here, a 15-week intensive course covers everything from A to Z in the fashion industry. Hansae executives, including Vice Chairman Kim Ik-whan, take on the role of instructors, offering firsthand insights into the entire fashion business process, from product development to operations and management. Outstanding students are awarded scholarships and opportunities for overseas training. Additionally, they receive a special benefit: a fast-track pass for the document screening stage when applying to Hansae’s open recruitment. The goal is to establish Next Design Lab as a "fashion talent academy" where students can learn, gain experience, and seize career opportunities. A representative from Hansae Co., Ltd. stated, “We will actively provide internship opportunities to help Hongik University students smoothly transition into the workforce,” adding, “The staff room on the first floor will also be used as a space where students and Hansae employees can naturally interact.” Hansae Co., Ltd. is one of South Korea’s leading Original Design Manufacturer (ODM) companies in the apparel sector. Initially growing through the Original Equipment Manufacturer (OEM) model, the company later expanded its capabilities in design and product development, fully establishing itself as an ODM enterprise. Now, Vice Chairman Kim Ik-whan is preparing for the next step. His goal is clear: to transition from "K-ODM" to "G-ODM" (Global ODM) and lead the global market. However, survival in the highly competitive fashion ODM industry requires more than just production capabilities and in-house design skills. The key differentiator in the global market is unique and competitive design capabilities. This is why Kim Ik-whan is fully committed to cultivating designers. Rather than simply providing support, he is directly engaging in hands-on education. After leading the establishment of Next Design Lab, he even took on the role of an adjunct professor himself. He is demonstrating a hands-on approach to nurturing the next generation of global designers. The establishment of Next Design Lab marks the first step. Many see this as the beginning of Vice Chairman Kim’s master plan for shaping the future of the fashion industry. On April 4, Kim Ik-whan led the first lecture at Next Design Lab, repeatedly emphasizing the importance of practical, hands-on education. He stated, “Even graduates from prestigious universities often struggle in the field due to an education system focused solely on theory, requiring them to relearn everything on the job,” adding, “To bridge this gap, we have designed a curriculum centered on practical, job-ready education.” Hansae Co., Ltd. currently operates design offices in New York and Barcelona. These offices help the company stay ahead of rapidly changing fashion trends in key markets and proactively propose new designs to clients. However, these offices are still relatively small in scale. There is a strong possibility that, in the future, Hansae will consistently recruit talented designers and assign them directly to its overseas offices—both local hires and designers trained in-house. Designers are not only needed at overseas design offices. At the heart of Hansae, the Research & Development (R&D) headquarters, specialized design teams play a crucial role in leading the company's fashion innovation. The Product Development Design Team is responsible for directly designing products for global brands such as Gap and American Eagle. The Technical Design Team oversees the entire process from conceptual design to final product, ensuring seamless execution. Meanwhile, the Virtual Design Team utilizes 3D virtual sampling technology to replicate real fabric textures, streamlining the design process. These various R&D teams demonstrate that design professionals play a central role throughout the company. Securing the next generation of designers is no longer an option—it is a necessity. This is why Next Design Lab is viewed not just as an educational program but as a key investment in Hansae’s future competitiveness. In fact, Chairman Kim Dong-nyung is said to be envisioning the creation of "Hansae’s own brand." While Hansae has traditionally focused on ODM production—manufacturing apparel for clients using in-house designs—the company may no longer be content with being just a manufacturing partner. The need to secure promising young designers is more urgent than ever. Vice Chairman Kim Ik-whan stated, “Our employees—who specialize in design, sales, fitting, and sustainability—are providing hands-on training that can be directly applied in the global market,” adding, “Through Next Design Lab, we will help South Korea’s top students grow into the world’s top fashion talents.” #Hansae #NextDesignLab #fashion #design #ODM #KimIkWhan #HongikUniversity #globalbusiness #fashionindustry #education
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- Lee Jay-hyun’s Confidence in CJ’s "Global Cultural Empire" – K-Beauty Joins K-Food and K-Content
- "Now it's all about culture. That's our future. We're going to be the Hollywood of Asia." This is what CJ Group Chairman Lee Jay-hyun said to his sister, Vice Chairwoman Lee Mi-kyung, in 1995. And in November 2024, during the CJ Group CEO Management Meeting, Chairman Lee once again emphasized "culture." But this time, his words were slightly different. "K-food, K-content, and K-pop—global cultural trends are expanding into a broader interest in Korea." A "dream" that was envisioned 30 years ago had now become a "reality." CJ Group is on the verge of completing its vision of becoming a "global cultural empire." And there is a third puzzle piece that CJ Group is aiming to fit into this vision—K-beauty. Chairman Lee Jay-hyun has set 2025 as the starting point for making K-beauty a new growth engine for CJ Group, with a full-scale strategy to enter the U.S. market. ◆ The World’s Largest Beauty Market: Can K-Beauty Break Through? The United States is the largest beauty market in the world. It accounts for more than 20% of global cosmetics and beauty product consumption, with a market size reaching US$ 100 billion (KRW 140 trillion) as of 2024. American consumers have a strong interest in trendy brands, particularly in clean beauty and eco-friendly products. Leveraging these trends, K-beauty brands have already established a foothold in the U.S. market. However, breaking into the U.S. beauty industry is no easy task. Major retailers such as Sephora and Ulta dominate distribution channels, making it difficult for new or lesser-known brands with weak distribution networks to enter the market. ◆ CJ’s Weapons to Conquer the U.S. Market: Success in Content and Food Despite these challenges, CJ Group believes K-beauty can achieve success in the U.S. market. CJ Group sees CJ ENM’s content capabilities as a major advantage in penetrating the U.S. beauty sector. The beauty industry is inseparable from content. After all, beauty is an industry that "sells aesthetics." To sell beauty, brands must consistently expose consumers to it—and the most effective tool for this is content. According to a report by the Korea Cosmetic Industry Institute analyzing the competitiveness of K-beauty in the U.S. and Mexican markets, "K-beauty has now firmly established itself as part of the mainstream culture in the U.S. The key factors behind K-beauty’s success include the global spread of Korea’s high-quality content, strong support from the millennial generation, diverse and segmented skincare product lines, and competitive pricing." CJ Group also plans to leverage its expertise in utilizing social media and digital platforms, an advantage gained through its successful expansion of content and food businesses in the U.S. In fact, the key driver behind the tremendous success of CJ CheilJedang’s "Bibigo" dumplings in the U.S. market was short-form video content on platforms like TikTok. The Korea Cosmetic Association’s report, "Key Success Factors of K-Beauty in the U.S.," stated, "Social media platforms like Facebook and popular beauty blogs are highly effective promotional tools for millennials, who make up the core consumer base for cosmetics." ◆ CJ Olive Young: Leading Lee Jay-hyun’s "K-Beauty Invasion" CJ Group’s push into the U.S. K-beauty market will be led by CJ Olive Young. As Korea’s No.1 health and beauty (H&B) store, CJ Olive Young serves as a key platform for K-beauty trends. Starting in 2025, CJ Group plans to expand Olive Young’s distribution network in the U.S. market. To achieve this, CJ Olive Young has established a U.S. subsidiary in Los Angeles, California, and is localizing its product sourcing, marketing, and logistics systems to quickly adapt to the market. It is also preparing to open offline stores. According to CJ Olive Young, the company is currently reviewing potential locations to open its first U.S. store in a multi-brand boutique format. Additionally, CJ Olive Young is working in collaboration with other CJ subsidiaries, including CJ Logistics and CJ ENM. ◆ K-Food, K-Content, and Now K-Beauty: CJ’s Cultural Empire Takes Shape CJ Group has already achieved global success in K-food and K-content. CJ CheilJedang’s Bibigo brand generates annual sales exceeding US$ 1 billion (KRW 1.4 trillion) in the U.S., making it one of the most successful K-food brands in the country. CJ ENM has proven the global competitiveness of Korean content through the success of "Parasite" and "Snowpiercer." It is also expanding its reach through OTT platforms like TVING. Looking at CJ Group’s trajectory and Chairman Lee Jay-hyun’s vision, CJ Olive Young’s U.S. subsidiary launch and offline store expansion signal more than just a distribution network expansion. They mark the beginning of CJ Group’s ambition to become a global beauty platform. Thirty years ago, Chairman Lee dreamed of making CJ the "Hollywood of Asia." Now, the final piece of that puzzle is falling into place. #CJGroup #LeeJayhyun #CJOliveYoung #KBeauty #KFood #KContent #beautyindustry #globalexpansion #Koreanbrands #businessstrategy
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- "0% Equity Successor" Lee Kyu-ho Builds War Chest, Urgently Needs Kolon's Turnaround
- Lee Kyu-ho, Vice Chairman of Kolon, is accelerating efforts to secure financial resources for the group's leadership succession. However, as Kolon Group's performance declined last year after he took a more prominent role in management, proving his leadership capabilities through tangible results has become even more crucial. According to Kolon Group’s business report, Lee Kyu-ho received a total compensation of KRW 676.87 million (US$ 488,000) last year. This marks the first time Lee's salary at Kolon has exceeded the public disclosure threshold of KRW 500 million (US$ 360,600). This increase in pay follows his promotion from CEO of Kolon Mobility to Vice Chairman and CEO of Kolon’s Strategic Division in the year-end executive reshuffle of 2023. Even across the entire Kolon Group, Lee's executive compensation was first disclosed last year when he received KRW 503 million (US$ 363,000) from Kolon Mobility Group. Until now, Lee Kyu-ho's compensation had been relatively low compared to other heirs of South Korea’s major conglomerates. What stands out is that Lee's salary has now surpassed the KRW 500 million mark despite being a "0% equity successor." As of now, Lee does not hold any shares in Kolon or its major affiliates. The only companies known to be under his ownership are two management consulting firms established in Singapore. This is in stark contrast to his father, Lee Woong-yeul, Honorary Chairman of Kolon, who began acquiring Kolon shares while still in high school. Now over 40 years old, born in 1984, Lee Kyu-ho has yet to own a single share of Kolon, making his succession process noticeably slow. Given that the South Korean business landscape is seeing an increasing number of young leaders, such as LG Group Chairman Koo Kwang-mo and Hanwha Vice Chairman Kim Dong-kwan, who are actively managing their respective groups while holding significant stakes, Kolon’s delayed succession process appears even more distinct. Lee Kyu-ho's succession efforts have visibly gained momentum since his promotion to vice chairman last year. With his new role, he now serves as an internal director at four companies: Kolon, Kolon Industries, Kolon Global, and Kolon Mobility Group. According to Kolon’s 2024 business report, Lee did not receive over KRW 500 million in salary from Kolon Industries or Kolon Global last year. However, he earned KRW 501 million (US$ 361,000) from Kolon Mobility Group, bringing his publicly disclosed total compensation for the year to over KRW 1 billion (US$ 721,200). Kolon's relaxed approach to leadership succession is largely due to Honorary Chairman Lee Woong-yeul’s substantial stake in the company. Since he owns 49.74% of Kolon’s shares, the group’s leadership transfer can proceed smoothly without major restructuring. Even if Lee Kyu-ho inherits or is gifted shares and later sells some to cover inheritance and gift taxes, Kolon’s management control is unlikely to be affected. While Lee had not previously received large dividends or salaries, considering that his father was born in 1956, there is still ample time for Kolon to gradually increase Lee’s compensation in preparation for the transition. When stepping down from management in 2018, Honorary Chairman Lee Woong-yeul publicly stated, “Management capabilities must be proven. If my successor fails to demonstrate leadership skills, I will not pass down a single share.” This puts Lee Kyu-ho in a position where he must deliver tangible management results to justify his succession. So far, however, he has struggled to prove his management capabilities. Despite his promotion to vice chairman and taking a more active role in group management, Kolon’s core affiliates underperformed last year, leading to an operating loss of KRW 89.5 billion (US$ 64.6 million). This marked a sharp downturn from the KRW 99.3 billion (US$ 71.6 million) operating profit recorded in 2023. Given the ongoing downturn in Kolon Industries’ petrochemical sector and Kolon Global’s construction business, a swift recovery in 2024 appears unlikely. Rather than focusing on Kolon’s traditional core businesses, Lee is prioritizing new growth engines such as biotechnology and advanced materials to drive the group's financial recovery. As part of a corporate restructuring effort, he established Kolon Space Works last year to focus on high-tech composite materials. In 2024, he further strengthened Kolon’s biotechnology business by recruiting Jeon Seung-ho, former CEO of Daewoong Pharmaceutical, as the new CEO of Kolon TissueGene. Lee’s commitment to expanding new business areas was also evident in Kolon Group’s 2024 New Year’s business message. Since 2022, Kolon has replaced traditional New Year's speeches with company-wide management keywords and messages, presented not by top executives but by the previous year’s One & Only Award winners. In this year’s announcement, Kim Hyung-ji, a senior executive in Kolon Industries' manufacturing division, introduced the 2024 management theme: "YNOT (Yes! New Opportunities Together)." He stated, "We must embrace a ‘Why not?’ mindset with confidence and strong execution to drive change and innovation." #LeeKyuho #KolonGroup #succession #businessleadership #finance #biotechnology #advancedmaterials #corporategovernance #SouthKorea #management
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- Oh Se-hoon's Misstep? Seoul Reinstates Land Permits in Gangnam's Three Districts
- "I sincerely apologize for causing concern," said Seoul Mayor Oh Se-hoon, bowing his head during a housing market stabilization briefing held at the Seoul Government Complex in Jongno District on the 19th. Just a month after lifting land transaction permit requirements in Seoul's key districts—Gangnam, Seocho, and Songpa—the city government has reversed its decision in response to growing volatility in the real estate market. Seoul Mayor Oh Se-hoon admitted the misjudgment, saying, “We humbly accept the concerns raised about increased market volatility, particularly in Gangnam, following the deregulation on February 12.” After holding a joint meeting with the Ministry of Land, Infrastructure and Transport, Ministry of Economy and Finance, Financial Services Commission, Bank of Korea, and the Financial Supervisory Service, the city announced a new housing market stabilization plan. The key measure is to re-designate all apartments in not only the three Gangnam districts but also in Yongsan District as land transaction permit zones. Mayor Oh now faces criticism for failing to anticipate the impact of the policy reversal, which affects high-profile neighborhoods like Jamsil, Samseong-dong, Cheongdam-dong, and Daechi-dong. The re-designation comes only a month after deregulation, raising questions about the administration’s foresight. In a written briefing, Democratic Party spokesperson Hwang Jung-ah criticized the move: “Mayor Oh triggered a surge in Seoul housing prices by lifting land permit rules, forcing the central government to step in. Is Seoul's real estate market a playground?” Lee So-young, a lawmaker on the National Assembly's Land and Transport Committee, added on Facebook, “Flipping Seoul’s housing policy like a street vendor flipping pancakes—this is nothing short of comedy.” Initially, Mayor Oh maintained a cautious stance, suggesting it was necessary to observe market trends after lifting regulations. However, as signs of overheating intensified—especially in Gangnam—he reversed course and expanded the regulated zones after discussions with central government officials. “The areas where we lifted the permit requirement had been restricted for five years. As a result, demand overflowed into nearby areas, causing a so-called 'balloon effect' and a sharp rise in prices in places like Banpo,” Mayor Oh explained. “We responded to calls to ease restrictions based on those factors.” He continued, “Since then, we’ve seen a spike in property transaction reports in Gangnam, along with a rise in suspected speculative investments, such as gap investing. Rather than just returning to the previous state, we are turning this into an opportunity to expand regulation.” Nevertheless, high-ranking government officials present at the announcement indicated that the city had not fully considered broader economic variables such as increased money supply and potential interest rate cuts when it initially lifted the land transaction restrictions. Real estate market observers have called Mayor Oh’s move hasty. The mayor himself admitted that the initial decision was made after consulting only the Ministry of Land, saying, “Before lifting the permit zone in February, I discussed it solely with the Land Ministry.” Still, he emphasized that effective policies require coordination with financial institutions: “I believe that only by employing financial tools such as loan regulations alongside land policy can we truly suppress volatility. That’s why I was in constant contact with the Ministry of Land, Financial Services Commission, and others to come up with a swift response.” Land Minister Park Sang-woo also commented on the re-expansion of the permit zones, noting that speculative "gap investments"—where properties are purchased with tenants still occupying them—have risen sharply. “Given the current macroeconomic outlook, we cannot rule out the possibility of interest rate cuts, which may further drive up transactions,” he said. “While non-Seoul regions are suffering from unsold inventory, popular areas in Seoul are seeing prices remain high or even increase. The imbalance is worsening,” Park added. “We took preemptive action and will expand it if necessary. The government cannot stand by while only select areas experience soaring prices.” Despite the reversal, Mayor Oh reiterated his belief in free-market principles. “I believe the housing market should operate under free-market rules. Anti-market measures like land transaction permits should only be used as a last resort in unavoidable situations,” he stated. However, given the central government’s firm stance on stabilizing the real estate market, it appears unlikely that Seoul will ease housing regulations again in the near future.
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- Hana Financial’s “Long-Serving DNA” – Ham Young-joo Eyes Reappointment with Humble Leadership
- A business leader in the financial sector who demonstrates the importance of humility better than anyone else is Ham Young-joo, Chairman of Hana Financial Group. Chairman Ham is known for his humility, even referring to himself as a "lucky country bumpkin" who somehow became a bank president during drinking sessions with reporters when he was serving as the president of Hana Bank. Even when he took charge of the massive bank formed by the merger of Korea Exchange Bank and Hana Bank, Chairman Ham prioritized maintaining a humble attitude. He is now on the verge of completing a historic "high school graduate success story" by securing a second term as the chairman of one of the four major financial holding companies. Hana Financial Group is known for having a "long-serving chairman DNA." Will this DNA work in Chairman Ham's favor? ◆ The Servant Leadership of a "Country Bumpkin" It happened on September 1, 2015, at the headquarters of KEB Hana Bank in Euljiro, Jung-gu, Seoul, during a ceremony celebrating the launch of the merged bank and the inauguration of the new bank president. Just before the inaugural address of the newly appointed president of the merged bank, Kim Geun-yong, chairman of the Korea Exchange Bank labor union, and Kim Chang-geun, chairman of the Hana Bank labor union, came on stage with bouquets of flowers to congratulate him. At that moment, Ham Young-joo, who was the bank president at the time, spread his arms wide and hugged them tightly. The two union leaders appeared momentarily surprised by the sudden embrace but soon responded by hugging him back warmly. The embrace was not brief, symbolizing the resolution of the conflicts that had arisen during the merger of Hana Bank and Korea Exchange Bank. Chairman Ham's strong display of physical connection underscored his commitment to the merger, which he successfully completed. Now, he is set to secure another term as the chairman of Hana Financial Group. Before the merger, the financial sector was skeptical about the chemical integration of Korea Exchange Bank and Hana Bank. While the two banks had merged in structure, many unresolved issues between them caused lingering tensions. The biggest issue was Hana Financial Group's failure to uphold its promise to the Korea Exchange Bank labor union. Initially, Hana Financial Group had agreed in a 2012 labor-management agreement to guarantee independent management for five years, but they pushed for an early merger just two years later. The Korea Exchange Bank labor union strongly opposed this move by Hana Financial Group. When the early merger plan passed the Korea Exchange Bank board of directors in July 2014, the union immediately issued a statement criticizing the decision, saying, "The board’s approval of the merger proposal without correcting management’s breach of agreement and abandonment of bank management constitutes a failure to fulfill the board's role of monitoring management." In January 2015, the union even filed an injunction with the Seoul Central District Court to suspend the merger process. Amid the escalating conflict between Hana Financial Group and the Korea Exchange Bank labor union over the early merger, Ham was appointed as bank president, beating out strong candidates such as Kim Byeong-ho, then-president of Hana Bank, and Kim Han-jo, then-president of Korea Exchange Bank. Ham was highly regarded for his humble and inclusive leadership. Chairman Ham earned deep trust within Hana Bank, not only from customers but also from employees, through his servant leadership style, which involved bowing even to his subordinates. His self-effacing attitude, referring to himself as a "country bumpkin," reinforced this humility. Immediately after his appointment as bank president, Ham’s first order of business was to meet with the Korea Exchange Bank labor union and begin addressing their concerns. Even after the merger, he worked to ease their worries by appointing Kim Ji-seong, former chairman of the Korea Exchange Bank labor union, as his chief secretary. Regarding this decision, Ham said at a press conference following the KEB Hana Bank launch ceremony, "I am also from Seoul Bank, which was the absorbed bank. After thinking about how to achieve a swift chemical integration, I decided to partner with Kim Ji-seong, who was a former Korea Exchange Bank union leader and a key figure in labor negotiations." Intellectuals have emphasized the close relationship between humility and confidence, even though the two words may seem contradictory. Jules Renard, the French author known for the novel 'Poil de Carotte', highlighted the importance of humility, saying, "Be humble. It is the type of confidence that is least offensive to others." Likewise, Matthias Nölke, a renowned German journalist, wrote in his book 'About a Wise Attitude That Doesn't Exhaust Me' that humility is the most effective and considerate way to show confidence. ◆ Proven Performance Under Humble Leadership: Record-Breaking Results for Hana Financial Group During his time as head of the Daejeon regional headquarters of Hana Bank, Ham often used the train when visiting other branches. It wasn't because he lacked access to a company car—it was because there was no room for him. He would send hundreds of breads from the famous bakery Sung Sim Dang in Daejeon to his junior employees by car, leaving him to take the train. Chairman Ham’s humble leadership has delivered outstanding results through his strong rapport with others. As the first president of KEB Hana Bank (formed by the merger of Korea Exchange Bank and Hana Bank), Ham successfully completed the integration process far earlier than expected, despite the significant differences between the two banks. After taking office as bank president, Ham promoted personnel exchanges between employees of the two banks. As a result, by June 2016, the IT systems of Korea Exchange Bank and Hana Bank were integrated. In January 2017, a unified labor union was established, and by January 2019, employees from both banks were subject to the same personnel, salary, and benefits system. The unified personnel, salary, and benefits system of KEB Hana Bank adopted the superior aspects of the existing systems from both banks. Salaries were adjusted to prevent any reduction in compensation for employees. Under Ham's humble leadership, KEB Hana Bank’s integration led to remarkable financial results. When Ham took over as the merged bank president in 2015, the combined net profit of Hana Bank and the former Korea Exchange Bank was KRW 969.9 billion (US$ 699 million), making it the only one of the four major banks to fall short of KRW 1 trillion. However, this figure increased to KRW 1.37 trillion (US$ 988 million) in 2016 and further to KRW 2.10 trillion (US$ 1.51 billion) in 2017, more than doubling in two years. Since becoming chairman of Hana Financial Group, Ham has continued delivering strong results. In his first year as chairman in 2022, Hana Financial Group posted a record net profit of KRW 3.57 trillion (US$ 2.57 billion). In 2024, this record was broken again. Hana Financial Group posted a net profit of KRW 3.73 trillion (US$ 2.69 billion) in 2024, a 9.3% increase from 2023 and the highest in the company’s history. Hana Bank’s position as the leading bank in net profit for two consecutive years (2022 and 2023) is also credited to Chairman Ham’s leadership. Thanks to this strong performance, Ham has essentially secured his reappointment. On January 27, 2025, Hana Financial Group's Board Nomination Committee unanimously recommended Ham Young-joo as the sole final candidate for the next chairman. If confirmed at the general shareholders' meeting and board meeting in March 2025, Ham will be officially appointed as chairman of Hana Financial Group with a three-year term. ◆ Ham Young-joo’s Achilles Heel: Recruitment Scandal and Legal Risks The recruitment scandal allegations remain an Achilles heel for Chairman Ham Young-joo. On November 23, 2023, the first division of the Criminal Appeals Department of the Seoul Western District Court sentenced Chairman Ham to six months in prison, suspended for two years, and imposed a fine of KRW 3 million (US$ 2,163) on charges of obstruction of business and violating the Gender Equality Employment Act. Chairman Ham is accused of instructing the personnel department to give preferential treatment to a candidate recommended by a senior official from Kookmin Bank during the 2015 KEB Hana Bank recruitment process when he was serving as bank president. He was also indicted on charges of directing the personnel department to set a 4-to-1 male-to-female hiring ratio during the 2015–2016 recruitment season to hire more men. Chairman Ham has appealed the case, and the Supreme Court's ruling on the obstruction of business charge related to employee recruitment is pending. The latest procedural update indicates that the case was under "comprehensive review of legal issues and arguments" as of December 16, 2024. It is currently unclear when the Supreme Court will issue its ruling. However, since the case was filed in 2023, there is a possibility that a verdict could be reached during Ham’s term as chairman. If the Supreme Court upholds the second-instance verdict, Ham would be required to immediately step down from his position as chairman. According to the Act on the Governance of Financial Companies, anyone sentenced to imprisonment or higher cannot serve as an executive of a financial company. ◆ The “Long-Serving Chairman DNA” of Hana Financial Group Hana Financial Group’s CEOs have a reputation for long tenures. Former Chairman Kim Seung-yu served as the top executive of Hana Financial Group for 16 years, including his time as the president of Hana Bank. Kim Jung-tae, another former chairman of Hana Financial Group, also served for 10 years as chairman. When Kim attempted to extend his tenure for a third term, there were rumors that the age limit of 70 might be removed due to legal risks involving his successor. However, once Ham Young-joo’s legal risks were temporarily resolved, Kim stepped down upon reaching the age of 70. The financial industry has debated the age limit for chairpersons, as the 70-year age limit for directors of financial holding companies can be adjusted if the board of directors of the financial holding company amends its articles of incorporation. However, few expect Chairman Ham to amend the articles of incorporation of Hana Financial Group. Ham remains exposed to legal risks. If the Supreme Court upholds the second-instance verdict, Ham would have to resign regardless of any amendment to the articles of incorporation. Although the rule requiring chairpersons to step down at 70 was amended amid political turmoil during the impeachment crisis, eliminating the age limit altogether would be politically sensitive. Financial authorities and politicians have not shown support for long-term rule by financial holding company chairpersons. Under the Moon Jae-in administration, the Financial Services Commission and the Financial Supervisory Service made efforts to curb the long-term rule of chairpersons at the four major financial holding companies. They imposed direct sanctions, citing allegations of involvement in the 2016 political scandal, recruitment-related legal risks, and mismanagement of private equity fund sales. In January 2022, Park Yong-jin, a former member of the Democratic Party of Korea, introduced a bill to amend the Act on the Governance of Financial Companies, which would limit the term of a financial holding company chairperson to a maximum of six years. However, the bill failed to pass the National Policy Committee and was discarded when the 21st National Assembly session ended on May 29, 2024. #HamYoungjoo #HanaFinancialGroup #recruitmentscandal #legalrisk #KookminBank #financialsector #bankingindustry #leadership #servantleadership #corporategovernance
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- All 10 Shinhan Bank Overseas Units Profitable, Jung Sang-hyuk Expands Localization with Equity Investments
- All 10 of Shinhan Bank’s overseas subsidiaries turned a profit last year. This strong performance is attributed to the bank’s localization strategy, which has been driving steady growth. Shinhan Bank President Jung Sang-hyuk is further solidifying the bank’s status as a "global powerhouse" by generating profits from overseas equity investments for the first time last year. He has also set a goal of maintaining a competitive edge in global business this year. According to Shinhan Bank’s audit report released on the 18th, its 10 overseas subsidiaries recorded a combined net profit of KRW 572.06 billion (US$ 412.5 million) in 2024, marking a 21.1% increase from 2023. America Shinhan Bank (U.S. subsidiary), which had posted losses in 2023, turned a profit, while Shinhan Kazakhstan Bank (Kazakhstan subsidiary) saw its net profit surge by approximately 50% year-over-year, significantly boosting overall performance. SBJ Bank (Japan subsidiary) and Shinhan Vietnam Bank (Vietnam subsidiary), which have the largest assets among Shinhan Bank’s overseas operations, also contributed to the strong results, increasing their net profits by 17.0% and 13.4%, respectively. What stands out in Shinhan Bank’s 2024 overseas subsidiary performance is not just the growth but also the absence of any losses. Every single overseas subsidiary ended the year in the black. In contrast, KB Kookmin Bank, which also released its audit report, reported a combined net loss of approximately KRW 200 billion (US$ 144.3 million) from its overseas subsidiaries last year. Woori Bank had three out of its 11 overseas subsidiaries in deficit. Shinhan Bank is widely regarded as having strong competitiveness in global business among Korea’s four major banks (KB, Shinhan, Hana, and Woori), a fact clearly reflected in last year’s performance. Not only banks but also other Korean financial companies are expanding their operations overseas. This is an effort to overcome limitations in the domestic market, where growth is slowing due to low birth rates and an aging population. However, success in global expansion is not guaranteed for financial firms. Stringent regulations in local financial markets and cultural differences can create challenges. Despite these difficulties, Shinhan Bank’s strong overseas performance is largely attributed to its "localization strategy." Shinhan Bank has been actively localizing its operations in key markets like Vietnam and Japan, where Shinhan Financial Group has been focusing its resources. The bank hires local employees, serves local customers, and manages assets locally. At Shinhan Financial Group’s 2024 earnings conference call, CFO Chun Sang-young commented on the global results, stating, "The combination of favorable exchange rates and long-standing localization efforts in Vietnam and Japan, along with ongoing improvements in internal management, has led to sustainable performance." Jung Sang-hyuk’s newly introduced global equity investment strategy has also played a key role in strengthening Shinhan Bank’s global competitiveness. Last year, Shinhan Bank recognized an equity-method gain of KRW 4.02 billion (US$ 2.9 million) from Credilla, an Indian student loan company. Credilla is Shinhan Bank’s first overseas equity investment case. In April 2024, Shinhan Bank acquired approximately a 10% stake in Credilla. This move is seen as further solidifying Shinhan Bank’s competitive advantage in the global market through diversification. Upon signing the agreement with Credilla, Jung Sang-hyuk stated, "India’s market has never been more important due to global supply chain restructuring, geopolitical stability, and the growth potential of its 1.4 billion population," adding, "We will strengthen our competitiveness through collaboration with various local companies and further establish ourselves as a ‘global top-tier bank.’" Jung plans to continue focusing on solidifying Shinhan Bank’s competitive edge in global business this year. For 2025, Shinhan Bank has identified "challenging the future to gain a competitive advantage" as one of its three key strategic directions. Strengthening leadership in the global market is a core part of this initiative. #ShinhanBank #JungSanghyuk #globalbanking #localizationstrategy #ShinhanVietnam #ShinhanJapan #Credilla #financialgrowth #bankingexpansion #globalbusiness
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- KB Kookmin Bank’s Lee Hwan-ju Redefines Banking, Builds ‘KB Fan Club’ with Samsung & Starbucks
- “The landscape of business is changing, and we now live in a world where ‘expanding our way of thinking’ is essential.” This statement was made by Lee Hwan-ju, President of KB Kookmin Bank, during his inaugural speech in January. Lee emphasized that in an era where customers can switch financial service providers with a single tap, KB Kookmin Bank must look outward and explore new services and business models to stay competitive. He also stressed the importance of building strong customer relationships—similar to a “KB Fan Club”—to ensure customer retention and engagement. KB Kookmin Bank’s recent moves align perfectly with this vision. The bank is drawing market attention by partnering with leading non-financial companies such as Samsung Group and Starbucks, engaging in extensive online and offline collaborations in products and services. Since his appointment, Lee has been aggressively pushing a management strategy focused on expansion, innovation, and execution. According to KB Kookmin Bank, two new deposit products will launch in April: the “Starbucks Account,” developed in collaboration with Starbucks Korea, and the “Monimo KB Daily Interest Account,” created with Samsung Financial Networks. The KB Kookmin Bank Starbucks Account will offer an annual interest rate of approximately 2%, higher than standard demand deposit accounts. Customers using this account can make direct payments through the Starbucks app, and each payment will automatically earn them Starbucks membership rewards, known as “Stars.” Currently, the Starbucks app only supports payments via Starbucks cards and credit card transactions; it does not yet offer direct bank account payments. This partnership marks the first collaboration between Starbucks Korea and a domestic bank. Starbucks Korea is the country’s top coffee chain, generating KRW 3.1 trillion (US$ 2.24 billion) in revenue in 2024. The brand is known for its highly loyal customer base. According to WiseApp, a market research firm, as of December 2024, the Starbucks app had 7.73 million users, a 13% increase from 2023. The gap between Starbucks and the second-ranking food and beverage brand app, Burger King (2.67 million users), was substantial, making Starbucks the undisputed leader in the segment. Additionally, prepaid Starbucks card balances are estimated to be in the mid-KRW 300 billion (US$ 216 million) range. Through the Starbucks Account, KB Kookmin Bank aims to integrate its services into customers’ daily lives, secure more low-cost deposits, and attract Starbucks’ loyal customer base. In the latter half of 2024, the bank will further expand its partnership by converting underutilized bank branches into Starbucks stores. The first collaboration is expected as early as August, with a Starbucks store opening inside the KB Kookmin Bank branch near Ssangmun Station in Dobong-gu, Seoul. Given that Starbucks Korea has an aggressive expansion plan to open over 100 new stores this year, analysts speculate that the number of “Starbucks KB Bank” locations could increase further. Starbucks is also expanding its special store formats, which could further extend the scope of finance-retail business collaborations. Meanwhile, KB Kookmin Bank’s partnership with Samsung Financial Networks on the “Monimo KB Daily Interest Account” is already generating buzz even before its launch. The Monimo KB Account offers an interest rate of up to 4% on deposits up to KRW 2 million (US$ 1,443). Before its April launch, nearly 400,000 customers signed up for early reservations in just ten days—double the initial target of 200,000. Samsung Financial Networks is known for its strong brand loyalty and credibility among Korean consumers. Brand image plays a crucial role in banking, and through partnerships with Starbucks and Samsung, KB Kookmin Bank is not only securing deposits and customers but also strengthening its brand as the “top” bank. This aligns with Lee’s vision of building a “KB Fan Club.” Beyond these initiatives, KB Kookmin Bank is also expanding into new markets. In 2024, it partnered with Bithumb, a cryptocurrency exchange, breaking traditional financial boundaries to attract new customers and explore new opportunities. Since becoming president, Lee has repeatedly emphasized the need to “redefine business.” During his inaugural speech, he stated, “We must redefine and redesign the purpose and methods of each business sector, including retail banking, corporate finance, wealth management, capital markets, and digital banking. We need to view things from the customer’s perspective and drive urgent innovation through bold ‘refresh’ strategies.” Lee was the first president of KB Kookmin Bank to come from a non-banking subsidiary within the KB Group. His leadership in driving change has been highly regarded. His extensive experience spans frontline banking operations, business planning, group financial management, and even serving as the CEO of an insurance subsidiary. A KB Kookmin Bank representative stated, “KB Kookmin Bank is continuously expanding partnerships to provide financial products and services through non-financial platforms, embracing ‘embedded finance.’ By sequentially launching products and services tailored to the needs of customers from major partners like Samsung Financial Networks and Starbucks, we will continue to strengthen our customer base.” #KBKookminBank #LeeHwanju #StarbucksAccount #SamsungFinancialNetworks #Monimo #bankinginnovation #embeddedfinance #fintech #retailpartnership #financialgrowth
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- Is LG Chem Becoming the Epicenter of a Financial Crisis? Focus on Koo Kwang-mo’s Decision, Likes Smartphone Exit
- LG Chem is showing signs of trouble. There are even concerns that a financial crisis originating from LG Chem could spread across the entire LG Group. The market is closely watching what decisive action LG Group Chairman Koo Kwang-mo will take to prevent the risks from escalating. Some analysts in the securities industry suggest that LG Chem may have to sell part of its stake in LG Energy Solution to defend LG Group's value. Kim Soo-hyun, a researcher at DS Investment & Securities, stated, "LG Chem may consider selling part of its stake in LG Energy Solution to enhance and protect LG Group's value." Recently, concerns over financial instability at LG Chem and LG Energy Solution have intensified due to the impact of the "battery chasm," adding weight to such predictions. ◆ Petrochemicals and batteries fueling a financial crisis LG Chem's performance has deteriorated significantly. For Chairman Koo Kwang-mo, the dilemma is that LG Chem, one of LG Group's core companies, is running low on cash while still needing to continue investments in projects initiated during past boom periods. In 2024, LG Chem recorded consolidated revenue of KRW 48.92 trillion (US$ 35.3 billion) and an operating profit of KRW 916.8 billion (US$ 661 million). Compared to 2023, revenue declined by 11.46%, while operating profit plunged by 63.75%. Notably, in the fourth quarter of 2024, the company posted an operating loss of KRW 252 billion (US$ 182 million), turning to a deficit. The petrochemical division has been identified as the primary reason for LG Chem's declining profitability. An oversupply from China and weakening global demand have combined to the point where running the factories is said to be more of a financial burden than a benefit. Even the advanced materials division, which had served as a buffer, is now struggling due to falling battery material prices and currency fluctuations. As a result, LG Chem's financial stability is increasingly under threat. The company has been trapped in a vicious cycle of rising debt as it continues large-scale investments while simultaneously increasing borrowings. LG Chem's standalone net debt surged from KRW 5.76 trillion (US$ 4.16 billion) at the end of 2022 to KRW 8.60 trillion (US$ 6.2 billion) by the fourth quarter of 2024. Its debt-to-equity ratio also jumped from 56% at the end of 2022 to 68.9% by the fourth quarter of 2024. To reduce financial burdens, LG Chem Vice Chairman and CEO Shin Hak-cheol has been implementing a "selection and focus" strategy, including selling the OLED polarizer business and halting expansion plans for a synthetic drug factory in Iksan, Jeollabuk-do. The company is also in the process of selling its aesthetic filler business under the Life Sciences division, following the same strategic approach. ◆ Credit rating agencies sound the alarm Credit rating agencies are issuing warnings about LG Chem. The company’s increasing interest burden on borrowed funds could make management even more challenging. NICE Investors Service downgraded LG Chem’s credit rating outlook from "stable" to "negative," while Moody’s lowered its rating from "A3" to "Baa1" and maintained a "negative" outlook. Global credit rating agency S&P went a step further, cutting LG Chem's credit rating from "BBB+" to "BBB." S&P has projected that LG Chem’s adjusted debt will increase from KRW 16 trillion (US$ 11.5 billion) in 2023 to a maximum of KRW 27 trillion (US$ 19.5 billion) by 2026. A particularly concerning factor is the financial uncertainty of LG Chem’s subsidiary, LG Energy Solution. According to S&P, LG Energy Solution’s capital expenditures are expected to decrease from KRW 12 trillion (US$ 8.7 billion) in 2023 to KRW 9 trillion (US$ 6.5 billion) in 2024 and KRW 7 trillion (US$ 5 billion) in 2025. However, its adjusted debt is estimated to have risen from KRW 13 trillion (US$ 9.4 billion) in 2023 to KRW 18 trillion (US$ 13 billion) in 2024. This suggests that the time is approaching for LG Group Chairman Koo Kwang-mo to make a decisive move to overcome the financial crisis at LG Chem and its subsidiary LG Energy Solution. ◆ Koo Kwang-mo’s decision-making under scrutiny LG Chem’s crisis is expected to be yet another test of Chairman Koo Kwang-mo’s leadership. Since taking office, Koo has led LG Group’s transformation through a "selection and focus" strategy. Now, the focus is on what decision he will make regarding LG Chem. Koo’s decisiveness has been demonstrated multiple times before. One of the most notable examples was his decision to shut down LG Electronics' mobile phone business. LG’s mobile division had accumulated over KRW 5 trillion (US$ 3.6 billion) in losses since 2015, and in 2021, Koo made the bold decision to exit the business. Beyond the mobile business, Koo has consistently eliminated low-profit ventures or those misaligned with LG Group’s strategic direction while aggressively investing in future industries such as artificial intelligence (AI), automotive components, and battery materials. The corporate credit evaluation industry views selling a portion of LG Chem’s stake in LG Energy Solution as a key long-term option for overcoming the crisis. LG Chem currently owns an 81.84% stake in LG Energy Solution, meaning it could sell about 30% of its shares while still maintaining majority control. If Koo cannot find another clear solution to the current crisis, he may need to sell part of LG Energy Solution’s stake to secure liquidity, improve LG Chem’s financial structure, and invest in future growth areas. Global credit rating agency S&P recently stated in a report, "LG Chem is expected to review various asset sale options, including a potential sale of its LG Energy Solution stake." However, since LG Energy Solution is not only a core subsidiary of LG Chem but is also facing a challenging business environment, some believe that the decision to sell its stake should be approached cautiously. Vice Chairman Shin Hak-cheol has also drawn a firm line on the matter, stating that "there are currently no plans" to sell LG Energy Solution shares. Ultimately, LG Chem’s approach to overcoming this crisis through "selection and focus" will depend on Chairman Koo Kwang-mo’s decisive leadership. #KooKwangmo #LGGroup #LGChem #LGEnergySolution #financialcrisis #businessstrategy #debtmanagement #creditrating #SouthKorea #investment
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- Toss Bank CEO Rhee Eun-mi Focuses on ‘Profit Stabilization,’ Speeds Up Mortgage Lending
- Rhee Eun-mi, CEO of Toss Bank, is expected to accelerate the diversification of the bank’s loan portfolio, leveraging its first-ever annual net profit as a foundation for growth. Last year, Rhee focused on expanding loan offerings through "joint loans," a product that utilized funding from regional banks. This year, she is preparing to launch mortgage loan products, aiming to balance profitability and financial stability. According to Hana Financial Group’s audit report on March 17, Toss Bank recorded a net profit of KRW 43.2 billion (US$ 31.2 million) in 2024. Hana Financial Group, which holds a 9.5% stake in Toss Bank, includes the bank’s financial results in its report. This marks the first time Toss Bank has reported a net profit since its establishment. As the youngest of South Korea’s three internet-only banks, Toss Bank launched in October 2021 but posted net losses of KRW 80.6 billion (US$ 58.1 million) in its first year and KRW 264.4 billion (US$ 190.7 million) in 2022. However, since achieving quarterly profitability in the third quarter of 2023, Toss Bank has sustained profits for six consecutive quarters, solidifying its financial foundation. With this early success, CEO Rhee has not only proven her capabilities as a financial expert but also gained momentum to strengthen Toss Bank’s core loan portfolio, an area where it had been relatively weaker. Expanding loans requires sufficient financial resources, and as profits accumulate, Toss Bank’s capital base grows, enabling greater lending capacity. Additionally, improved financial performance enhances the bank’s credit rating, which can reduce funding costs. As Toss Bank’s profit growth gains momentum, the bank has recently started developing a mortgage loan product. While the bank currently offers rental deposit loans, it remains the only one among South Korea’s three internet banks that has yet to launch a mortgage loan product. Given that mortgage lending is a key revenue driver for household loans in the banking sector, Toss Bank has faced natural limitations in its loan growth potential. Competitors such as KakaoBank and K-Bank have already expanded their mortgage lending significantly, benefiting from the government’s loan refinancing system. According to the Financial Supervisory Service’s financial statistics system, the combined mortgage loan balance of KakaoBank and K-Bank grew 3.3 times from KRW 10.3 trillion (US$ 7.4 billion) at the end of 2021 to KRW 34.5 trillion (US$ 24.9 billion) by the end of September 2024. At both KakaoBank and K-Bank, mortgage loans have already surpassed unsecured credit loans in total balance. From a financial management perspective, launching a mortgage loan product is CEO Rhee’s next major objective. Mortgage loans are backed by high-quality collateral, such as apartments and other real estate, and involve larger loan amounts, making them an essential portfolio component for ensuring both profitability and financial soundness. As South Korea’s financial regulators tighten oversight of internet banks’ capital adequacy and financial stability, competitors such as KakaoBank and K-Bank have also been expanding secured lending options, including loans for self-employed business owners. For Toss Bank, profit growth and financial stability are particularly crucial as its parent company, Viva Republica, prepares for an initial public offering (IPO) in the United States. Since taking the helm of Toss Bank’s second leadership phase last year, CEO Rhee has pursued a diversified lending strategy by introducing joint loan products in collaboration with regional banks. Joint loans involve two banks separately assessing a borrower’s creditworthiness using their own credit evaluation systems and then agreeing on loan conditions such as interest rates and limits before jointly issuing the loan in a 50-50 ratio. One notable success in this area is *Together Loan*, a joint product launched by Toss Bank and Gwangju Bank. From its launch on August 27, 2024, to the end of December 2024, *Together Loan* accumulated a total lending volume of KRW 520.3 billion (US$ 375.2 million). Alongside the foreign exchange service launched in January 2024, *Together Loan* has played a key role in driving customer growth at Toss Bank. As of the end of 2024, Toss Bank’s total customer base stood at approximately 12 million, an increase of about 3.12 million from the 8.88 million recorded at the end of 2023, before CEO Rhee took office. The success of *Together Loan* has prompted competitors such as K-Bank and KakaoBank to develop similar joint loan products in collaboration with regional banks, further demonstrating Toss Bank’s leadership in innovation. Although detailed financial results for 2024 have yet to be released, Toss Bank’s total loan balance reached KRW 14.7 trillion (US$ 10.6 billion) as of the third quarter of 2024, reflecting a 31% increase compared to the same period in 2023. This growth rate far outpaces those of KakaoBank (11.6%) and K-Bank (17.6%) for the same period. If *Together Loan* and the upcoming mortgage loan product are successfully implemented, Toss Bank’s scale and profitability are expected to grow even more rapidly. From the moment she took office as CEO of Toss Bank in 2024, Rhee Eun-mi has made profitability and financial stability her top management priorities. During a town hall meeting with employees in March 2024, she stated, "We will make 2024 the first year of Toss Bank’s annual profitability while simultaneously strengthening our financial stability and risk management capabilities. At the same time, we will continue to uphold Toss Bank’s DNA of innovation, delivering new and unique banking experiences to our customers." A Toss Bank representative confirmed, "We are preparing to introduce mortgage loans," but added, "However, the product is still in its early stages, and the launch timeline has not yet been determined." #TossBank #RheeEunMi #internetbanking #fintech #mortgageloans #TogetherLoan #KakaoBank #KBank #financialinnovation #bankingindustry #IPO
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- Samsung Electronics’ Lee Jae-yong Delivers a Tough Message—All Eyes on Semiconductor Revival Plan
- Samsung Electronics' executives are expected to use the upcoming March general shareholders' meeting to reaffirm their commitment to reclaiming semiconductor technology leadership while also addressing concerns of shareholders who have been disheartened by declining stock prices. With Chairman Lee Jae-yong recently emphasizing a "do-or-die determination," expectations are high that this shareholders' meeting will serve as a platform for the company to share concrete strategies for overcoming the current crisis. According to Samsung Electronics on March 17, the 56th annual general shareholders' meeting will be held on March 19 at the Suwon Convention Center in Yeongtong-gu, Suwon, Gyeonggi Province. This year's meeting is expected to see an unprecedented level of participation from retail investors. As of December 31, 2024, the number of individual shareholders holding Samsung Electronics common stock stood at 5,160,210, an increase of 488,171 (10.4%) from a year earlier and 912,599 (21.5%) from six months earlier. The average value of shares held by each individual shareholder is approximately KRW 42 million (US$ 30,285). While foreign and institutional investors have been pulling out, individual investors have steadily increased their stake in Samsung Electronics. However, given the recent poor stock performance, there is growing concern that this shareholders' meeting could become a forum for shareholder grievances against the management. Samsung Electronics' stock price has fallen more than 20% over the past year. The average purchase price for the 292,302 Samsung Electronics investors registered on Naver Pay's "My Assets" service is KRW 66,858 (US$ 48.22) per share, resulting in an average loss of approximately 13%. In February, Samsung Electronics announced plans to enhance shareholder value by canceling KRW 3 trillion (US$ 2.16 billion) worth of treasury shares and repurchasing an additional KRW 3 trillion (US$ 2.16 billion) worth by May. However, many shareholders argue that instead of focusing on buybacks, the company must urgently devise strategies to overcome the current crisis. Chairman Lee Jae-yong is making an all-out effort to restore Samsung's competitiveness. During the ongoing "Value Education for Restoring Samsung's Identity" program, which is being delivered sequentially to more than 2,000 executives below the vice president level across all affiliates, he reportedly stated, "Samsung is facing a life-or-death survival crisis. We must confront this crisis with a do-or-die determination." His remarks reflect a strong sense of urgency that, without swift breakthroughs, Samsung could follow the path of decline and stagnation seen in companies like Intel and Nokia. One of the most critical challenges is reclaiming semiconductor competitiveness. Samsung's foundry (contract semiconductor manufacturing) business has been unable to close the gap with Taiwan’s TSMC as expected and has been recording multi-trillion-won deficits each quarter since last year. To reverse this trend, the company appointed Han Jin-man as the new head of the Foundry Business Unit in its 2025 executive reshuffle. Chairman Lee has also dismissed speculation about spinning off the foundry business. Last year, he stated, "We are not interested in a spinoff. We are committed to growing the business," reaffirming his determination to maintain Samsung's foundry operations. At this shareholders' meeting, investors are expected to demand answers on various topics, including foundry investment plans, the expected timeline for a turnaround, the yield rate of the advanced 2nm process, and whether Samsung still aims to become the world's No.1 system semiconductor company by 2030. Another hot topic will be how Samsung plans to regain its lost position in the memory semiconductor market. Last year, Samsung lost its No.1 ranking in high-bandwidth memory (HBM) to SK Hynix, fueling concerns that the company has fallen significantly behind in technological competitiveness. Unlike its rivals, Samsung has also been delayed in supplying its fifth-generation HBM, the HBM3E, to Nvidia. In February, Vice Chairman Jun Young-hyun, head of Samsung’s Device Solutions (DS) Division, personally visited Nvidia’s headquarters in the United States to deliver a redesigned HBM-ready 1b DRAM sample to CEO Jensen Huang, signaling the company's active efforts to regain ground. As a result, this shareholders' meeting is expected to feature numerous investor inquiries and management explanations regarding the HBM business and other advanced memory semiconductor initiatives. There is also a growing demand from shareholders for a clear and detailed update on HBM development progress. Additionally, discussions on mergers and acquisitions (M&A) related to new business areas such as artificial intelligence (AI), robotics, meditech (medical technology), and HVAC (heating, ventilation, and air conditioning) are likely to take place. Recently, Samsung Electronics upgraded its "New Business Task Force (TF)" to a full-fledged "New Business Team" for the first time in three years to accelerate future business discovery efforts. Meanwhile, the appointment of semiconductor experts as inside and outside directors, including Vice Chairman Jun Young-hyun, Chief Technology Officer (CTO) Song Jae-hyuk of the DS Division, and Professor Lee Hyuk-jae of Seoul National University's Department of Electrical and Computer Engineering, is expected to be approved smoothly during the meeting. A business industry official commented, "Samsung Electronics’ shareholders' meetings typically draw hundreds of participants each year, but this year, an even larger number of investors are expected to attend and pose direct questions." He added, "Management will focus on presenting a concrete roadmap for strengthening semiconductor and new business competitiveness to regain shareholders' trust." #Samsung #SamsungElectronics #LeeJaeYong #semiconductor #foundry #TSMC #HBM #AI #Nvidia #shareholdersmeeting #stockmarket
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- Chung Eui-sun Reinstates Vice Chairman Role After 1,100 Days—Why Did He Choose Chang Jae-hoon?
- 1111 days. From December 17, 2021, when Hyundai Motor Group effectively dismantled its vice chairman structure in its year-end executive reshuffle, to January 1, 2025, when Chang Jae-hoon was appointed as Hyundai Motor's vice chairman—the position remained vacant for exactly 1111 days. It may be difficult to imagine given his current status, but Chang Jae-hoon has a rather unusual background in the restaurant business. In 1990, he opened an Italian restaurant called *La Cucina* in Yongsan, which became so successful that it was even featured in the Michelin Guide. Even after joining Hyundai Motor Group, his initial career path had little to do with automobiles. His first position within the group was as Executive Vice President and Head of the Global Business Division at Hyundai Glovis. Yet, after 1111 days, he has become the new vice chairman of Hyundai Motor. This appointment speaks volumes about the level of trust Hyundai Motor Group Chairman Chung Eui-sun places in him. Since taking office, Chairman Chung has been restructuring the group by eliminating the vice chairman structure and strengthening direct control under his leadership. This is a stark contrast to former Honorary Chairman Chung Mong-koo, who operated a system with more than ten vice chairmen. However, with this latest executive reshuffle, Chairman Chung has revived the position of vice chairman, marking a major shift in the group's organizational and leadership structure. In a rapidly changing global landscape filled with growing internal and external uncertainties, Chang Jae-hoon has been chosen as Chung Eui-sun's "trusted man" to navigate these challenges. ◆ Why Did Chung Eui-sun Reinstate the Vice Chairman Position? Restoring the vice chairman position carries more significance than just an organizational restructuring. There are two key reasons why Chairman Chung promoted Chang Jae-hoon. The first reason is that it was the right time to reward performance. It has now been eight years since Chung Eui-sun took the helm of Hyundai Motor Group. The company is no longer led by "Chung Mong-koo’s people" but by "Chung Eui-sun’s people." Chairman Chung needed to provide appropriate positions for those who have delivered results under his leadership. For professional executives outside the founding family, the vice chairman role is the highest position they can attain. This promotion sends a strong message that anyone who achieves results can rise to the rank of vice chairman. The second reason is to strengthen Chung’s direct control. Chairman Chung has built his leadership structure by dismantling the vice chairman system. At first glance, reinstating the position may seem contradictory to that strategy. However, the nature of this new vice chairman role is different from the past. Instead of filling the position with multiple executives, he has designated a single "number two" who deeply understands his vision and can effectively implement it within the group. In other words, this reshuffle actually consolidates Chairman Chung's influence within Hyundai Motor Group. ◆ The First Vice Chairman Under Chung Eui-sun’s Leadership—Why Chang Jae-hoon? Among the many "Chung Eui-sun’s people" at Hyundai Motor Group, why was Chang Jae-hoon chosen? The first reason is that Chang Jae-hoon understands Chairman Chung’s vision better than anyone else. Chang began gaining prominence within the group in late 2018 when he was promoted to Executive Vice President and appointed as Head of the Corporate Management Support Division. At the time, Chairman Chung was pushing for organizational culture reform and global expansion to ensure the group’s sustainable growth. Chang quickly grasped Chairman Chung’s intent and actively worked to reform Hyundai’s traditionally conservative and rigid corporate culture, earning him high praise. The second reason is that Chang Jae-hoon is best suited to realize Chairman Chung’s vision for Hyundai’s future. With the potential return of former U.S. President Donald Trump and the resurgence of protectionist policies, Hyundai Motor Group faces a pressing need to find new strategies. As the U.S. restructures its electric vehicle subsidy policies to favor domestic automakers and raises tariffs on foreign-made cars, Hyundai and Kia’s price competitiveness could take a hit. On top of that, China's aggressive push with low-cost electric vehicles makes it increasingly difficult to compete on price alone in the global market. ◆ Hyundai’s Breakthrough in a Changing Global Auto Market: Brand Value To survive, Hyundai Motor Group must now differentiate itself through brand value rather than price. And the key figure leading this strategy is Chang Jae-hoon. Chang has been instrumental in transforming Hyundai Motor Group into a premium brand. One of the most notable examples of his success is the Genesis brand. In 2024, Genesis firmly established itself as a premium brand, selling over 60,000 units in the U.S. market. It also ranked first in J.D. Power’s Initial Quality Study, proving its excellence in both quality and brand value. Genesis’ success demonstrates that Hyundai’s goal is no longer just to make "affordable cars." To sustain long-term growth, Hyundai must secure strong brand loyalty, just like Germany’s "Big Three"—BMW, Mercedes-Benz, and Audi. Consumers must see Hyundai not just as a cost-effective choice but as a brand they genuinely desire to own. ◆ Chang Jae-hoon and Chung Eui-sun—A Shared Vision for Brand-Centered Management Chairman Chung Eui-sun has been pursuing a strategy to transform Hyundai Motor Group from a traditional automaker into a "mobility brand." His proactive adoption of electric vehicles, autonomous driving, and robotics has all been aimed at enhancing the brand’s value. Chang Jae-hoon shares this philosophy. He has already demonstrated through Genesis that Hyundai Motor Group can elevate its brand value in the global market. Now, Hyundai Motor Group’s goal is clear. It is no longer about being a cheaper alternative to well-known car brands—it is about becoming a brand that consumers truly aspire to own. One can only wonder if the famous Korean ad slogan, "When a friend asked how I was doing, I answered with a Grandeur," will one day resonate not just in Korea but around the world. #Hyundai #HyundaiMotor #ChangJaeHoon #ChungEuiSun #Genesis #luxurycars #automotiveindustry #electricvehicles #brandvalue #globalmarket
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- "If It’s Not Delicious, I’d Rather Starve" – Kurly CEO Kim Seul-ah Opens Her Fridge, Wins Fans with Subtle Promotion
- Kim Seul-ah, CEO of Kurly, has fully opened her refrigerator. She personally appeared in content that explores what products she always keeps in her fridge and how to enjoy them more deliciously from a gourmet’s perspective. Kurly is aiming to turn a profit this year, and by featuring CEO Kim, who is beloved by loyal customers, the company is expected to accelerate its efforts to improve profitability. According to Kurly on March 14, the company recently released a show called "Sophie’s Kick," named after Kim's English name, Sophie, on its official YouTube channel. "Sophie’s Kick" is designed around Kim sharing her personal tips for enjoying food more deliciously. It also reveals behind-the-scenes stories of the food industry that the public may not usually be aware of. The highlight of "Sophie’s Kick" is the segment where Kim reveals what products are in her refrigerator. Introducing ragu sauce, which is difficult to make at home, Kim said, "One item that is always in my home freezer is lasagna from the brand Tombola," emphasizing, "It’s incredibly delicious." Kim added, "I’ve learned to cook and am quite good at Italian cuisine, but I just buy this. I only do a little touch-up." Kim then naturally transitioned to the next product recommendation. While talking about cheese that pairs well with lasagna, she said, "The reason I make money is for this cheese—Reggiano cheese. It’s delicious on its own, great when grated, and tasty no matter how you eat it." She also shared a tip for enjoying frozen Korean food and recommended dumplings. The product Kim mentioned was "Gulrim Mandu," explaining, "If you take out the dumpling filling and mix it with plain rice, it turns into something like beef and vegetable porridge. Since it’s gulrim mandu, there’s no wrapper to remove." Kim also subtly promoted Kurly, mentioning that the Lounge section of the Kurly app compiles the products and cooking tips introduced in the show. It is unusual for Kurly to produce and release a video featuring CEO Kim. The last time Kim appeared on Kurly’s YouTube channel was in January 2022, in a video titled "Kurly Asks, CEO Kim Seul-ah Answers." Kurly explained that the decision to produce a video featuring Kim was made after much internal consideration. A Kurly representative stated, "CEO Kim Seul-ah, who was once a discerning consumer constantly searching for delicious food and great products, founded Kurly with the sole determination to introduce high-quality products. 'Sophie’s Kick' showcases her 10 years of experience in selecting only the products she truly wants to buy." "Sophie’s Kick" is produced by an external production company under the leadership of Kurly’s Growth Division. New content is released every Thursday at 7 p.m. In fact, "Sophie’s Kick" was introduced to the world very cautiously. Despite being a show featuring the company's founder, Kurly did not actively promote its launch. The only prior announcement was a simple mention on Kurly’s social media platforms stating that the first episode would air on March 12 at 7 p.m. Possibly due to this quiet promotion, the video has not yet reached a large audience. As of March 14, about two days after its release, the view count stands at around 4,000, with only about 10 comments. However, engagement appears to be gradually increasing. Viewers who watched "Sophie’s Kick" left comments such as, "This is such great content! Looking forward to more," "Hearing about frozen foods from the Kurly CEO herself makes it even more engaging," and "This weekend’s special meal: Tombola lasagna!" There seem to be several reasons why Kurly decided to launch a regular content series featuring CEO Kim. Many see this as a strategic move to leverage Kim's reputation as a "taste expert" to strengthen the loyalty of core customers and, in turn, boost business performance. Kurly is known as an e-commerce platform particularly popular among female customers. Kim, as the founder of Kurly, introduced the concept of specialized early-morning grocery delivery to Korea, growing the company into a unicorn valued at over KRW 1 trillion (US$ 721 million), making her a rare example of a female CEO achieving such success. However, customers do not admire Kim solely because she is a female CEO. She was known as a "foodie" even during her time working at a consulting firm. Her colleagues would describe her by saying, "Kim Seul-ah really loves food." Kim once remarked, "I don’t know much about designer handbags, but if you ask me which butcher shop is the best, I can tell you." Her passion for gastronomy is evident from the very first scene of "Sophie’s Kick," where she boldly declares, "If the food isn’t delicious, I’d rather starve." It is well known in the e-commerce industry that many customers have become loyal Kurly users due to the founder’s philosophy on food. Kurly has also maintained a long-standing practice of holding weekly product selection meetings, personally attended by the CEO, to determine which items will be sold. Kurly likely launched this content featuring Kim’s expertise in taste to enhance customer affinity and, ultimately, boost sales. This is why the customer response to "Sophie’s Kick" will be closely watched. Last year, Kurly achieved both revenue growth and a reduction in operating losses. In 2024, the company recorded consolidated revenue of KRW 2.1956 trillion (US$ 1.58 billion) and an operating loss of KRW 18.3 billion (US$ 13.2 million). Compared to 2023, revenue increased by 6%, while operating losses were reduced by KRW 125.3 billion (US$ 90.4 million). On an adjusted EBITDA basis, Kurly posted a profit of KRW 13.7 billion (US$ 9.9 million), marking the first positive EBITDA in the company's history. The company’s total transaction volume in 2023 was KRW 3.1128 trillion (US$ 2.24 billion), a 12% increase from the previous year—more than twice the growth rate of Korea’s overall online shopping industry. #Kurly #KimSeulah #SophiesKick #foodie #ecommerce #frozenfood #gourmet #earlymorningdelivery #investment #businessstrategy
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- Kim Kwang-il Draws Line on MBK's Role in Homeplus Rehabilitation
- Kim Kwang-il, Vice Chairman of MBK Partners, has emphasized his strong determination to revive Homeplus. However, he also acknowledged that since Homeplus has entered court receivership (corporate rehabilitation), MBK Partners can no longer take the lead in restructuring the company, and therefore cannot be directly held responsible for its revival. At a press conference held on the 14th at the Homeplus headquarters in Gangseo-gu, Seoul, Kim stated, “The most important thing is to prevent Homeplus from going bankrupt. A bankrupt retailer, due to the many stakeholders involved, is bound to collapse rapidly. The only way to avoid bankruptcy and resume normal operations is rehabilitation.” He added, “As the shareholder company, MBK Partners has relinquished its rights and is cooperating as much as possible.” Kim, who is both the Vice Chairman of MBK Partners and co-CEO of Homeplus alongside CEO Cho Ju-yeon since last year, also conveyed that it is practically difficult for MBK Partners to lead the company’s recovery. He explained, “Since the filing for rehabilitation, there’s nothing we can proactively do in terms of efficiency improvements or restructuring. The rehabilitation process is one in which creditors, debtors, and the court collaborate to envision the company’s future. In that process, we believe that trade creditors, employees, and financial creditors can all be repaid.” He further stated, “Beyond that, MBK Partners has no separate plans.” When asked whether MBK Partners had handed over Homeplus's fate to the court to avoid responsibility, Kim responded by highlighting that as the major shareholder, MBK would suffer the most. He pointed out, “In the rehabilitation process, shareholders' rights are the least protected. Essentially, we have entrusted our shareholder rights to the court. It is not true that MBK Partners stands to gain the most from rehabilitation.” Kim stressed, “MBK Partners is a shareholder that has invested around KRW 3.1 trillion (US\$ 2.2 billion) in Homeplus. Rehabilitation is a process in which shareholders suffer the greatest losses, so it’s not a matter of gain or loss for us.” When asked whether MBK Partners or Homeplus filed for rehabilitation, he clarified that the decision was made by the company’s executives. Kim said, “The decision (to apply for corporate rehabilitation) was made collectively by our executives, and finalized by the board of directors. It was a matter that required joint consideration and decision-making by the executives, not something that could be dictated by a single person.” Responding to criticism over being listed as a registered executive in 20 companies invested in by MBK Partners, Kim expressed disagreement. He explained, “Given MBK Partners’ investment structure, there are always investment holding companies involved. In the case of Homeplus, there are two such entities. Including Homeplus itself, that makes three, so the claim of 20 companies seems exaggerated.” Regarding his position as a registered executive in other companies, he explained that most are either unlisted or roles in which he serves on a non-executive basis, and rejected the notion that this affects his ability to focus on Homeplus management. When asked about calls for MBK Partners Chairman Kim Byung-joo to contribute his personal funds, Kim responded, “That’s not something I can comment on at this Homeplus press conference,” avoiding a direct answer. #MBKPartners #Homeplus #corporaterehabilitation #restructuring #retailindustry #bankruptcyprotection #investment #shareholderrights #KimKwangil #SouthKoreaBusiness
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- Why Is HS Hyosung Selling Its Tire Steel Cord Business? Cho Hyun-sang Bets on Carbon Fiber and Anode Materials
- Cho Hyun-sang, Vice Chairman of HS Hyosung, is moving forward with the sale of the tire steel cord division, a key business of the group's core subsidiary, HS Hyosung Advanced Materials. The decision to sell this highly profitable business, which accounts for 40% of HS Hyosung Advanced Materials' operating profit and holds the No. 1 global market share, is seen as Vice Chairman Cho's strong commitment to expanding the group's scale through a new business portfolio. Vice Chairman Cho plans to sell the tire steel cord business for approximately KRW 1.5 trillion (US$ 1.08 billion) and raise additional funds to significantly increase investment in future industries with high growth potential, such as carbon fiber, anode materials for secondary batteries, and artificial intelligence (AI). An HS Hyosung Advanced Materials representative stated on March 14, "We plan to invest about KRW 1 trillion (US$ 721 million) in the Jeonju plant and other facilities for the carbon fiber business by 2028." HS Hyosung Advanced Materials is the only carbon fiber producer in Korea, manufacturing products at its Jeonju plant. Its biggest competitor is Japan's Toray. Toray holds a 40% share of the global carbon fiber market, ranking first, while HS Hyosung Advanced Materials' share is around 3%. According to market research firm Markets and Markets, the global carbon fiber market is projected to grow from US$ 6.5 billion (KRW 9.4 trillion) in 2022 to US$ 11.9 billion (KRW 17.3 trillion) in 2027 and US$ 21.7 billion (KRW 31.5 trillion) in 2032. Carbon fiber is a fiber containing more than 92% carbon in its yarn, making it four times lighter than steel but ten times stronger and seven times more elastic, earning it the reputation of a "dream material." Although its high production cost currently limits its applications compared to steel, its use is expected to expand across various industries, including automobiles, shipbuilding, aerospace, civil engineering, construction, defense, and energy. To expand its carbon fiber business, HS Hyosung Advanced Materials is also constructing a carbon fiber plant in Vietnam. Three carbon fiber production bases in Vietnam will begin operations sequentially starting this year. An HS Hyosung representative stated, "We plan to increase the annual production capacity of the Jeonju plant, our main carbon fiber facility, from the current 9,000 tons to 24,000 tons by 2028 with a KRW 1 trillion (US$ 721 million) investment," adding, "Since late 2022, the Jeonju plant has been producing 'T1000,' an ultra-high-strength carbon fiber used in aircraft fuselages." This decision to divest the tire steel cord business is interpreted as a bold move to secure investment for the promising future carbon fiber sector. The tire steel cord business is a core division that accounted for about 50% of HS Hyosung Advanced Materials' operating profit last year. The company holds a dominant 50% share of the global tire steel cord market. HS Hyosung Advanced Materials has been working on the sale of its tire steel cord business since November last year and appointed Samjong KPMG as its lead advisor on March 12. The company reportedly expects the sale price to be around KRW 1.5 trillion (US$ 1.08 billion). Of the sale proceeds, KRW 1 trillion (US$ 721 million) will be invested in expanding the carbon fiber business, while the remaining funds will be used for other new business ventures and reducing the company's debt ratio. Lee Dong-wook, a researcher at IBK Investment & Securities, stated, "HS Hyosung Advanced Materials is reviewing strategies for improving its financial structure and pursuing new business initiatives through the sale of its tire steel cord business." An HS Hyosung representative added, "The group is exploring various business models and opportunities in areas such as next-generation lightweight composite materials for future mobility, AI and data management, new materials for secondary batteries, and eco-friendly materials." The second new business HS Hyosung Group is focusing on is secondary battery materials. In October last year, HS Hyosung Advanced Materials invested KRW 44.8 billion (US$ 32.3 million) in Umicore, the world's second-largest battery cathode material company based in Belgium. The company plans to actively grow its business in silicon anode materials developed by Umicore. While graphite is currently the primary anode material for batteries, China dominates the graphite supply chain, making silicon an alternative material of interest. The group is also pursuing the development of enterprise AI systems. Currently, Hyosung Information Systems (HIS) is developing AI systems for business-to-business (B2B) applications. Born in 1971, Vice Chairman Cho graduated from Brown University with a degree in economics. As the largest shareholder and Vice Chairman of HS Hyosung, he leads HS Hyosung Group, which was established on July 1, 2024. HS Hyosung Group's subsidiaries include HS Hyosung Advanced Materials, Hyosung Information Systems, Hyosung Holdings USA, Hyosung Toyota, Gwangju Ilbo, and Vina Logistics Corporation. #HSHyosung #ChoHyunsang #carbonfiber #tiresteelcord #secondarybattery #AI #investment #businessstrategy #HyosungInformationSystems #futuremobility
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- Shinhan Financial Group’s Model Succession Structure: Who Is Being Prepared to Succeed Jin Ok-dong?
- Jin Ok-dong, Chairman of Shinhan Financial Group, is in the final year of his term. His term ends in March 2026, at which time he will be 65 years old. Despite Shinhan Financial Group's strict age limit for the chairman, he will still be eligible for reappointment. The chairman of Shinhan Financial Group can serve until the age of 70, similar to other financial groups like Hana Financial Group and KB Financial Group. However, unlike other financial groups, Shinhan Financial Group has an additional rule that prohibits the appointment of a chairman if the candidate is over 67 years old at the time of appointment. Barring any unexpected developments, Chairman Jin is expected to seek reappointment. The Zainichi Koreans, who hold significant influence within Shinhan Financial Group, are also firmly supporting Chairman Jin. Chairman Jin appears to be focusing on Shinhan Financial Group's long-term future without being pressured by short-term performance demands due to the stress of reappointment. This was particularly evident during the reshuffling of affiliate CEOs at the end of last year. ◆ The appeal of Park Chang-hoon, the newly appointed CEO of Shinhan Card Moon Dong-kwon, the former CEO of Shinhan Card, demonstrated stable management skills while leading the company. However, he could not avoid Chairman Jin's drive for reform. Until the third quarter of 2024, Moon had achieved a net profit of KRW 552.7 billion (US$ 398.4 million), a 17.8% increase from the same period last year. While the gap with Samsung Card (KRW 531.5 billion, US$ 383.1 million) was not large, Moon was still seen as a strong candidate for reappointment as he maintained the top position in the industry. However, defying expectations, Park Chang-hoon, who was then the head of a division at Shinhan Card, was appointed as the new CEO of Shinhan Card. The interpretation is that Chairman Jin judged Park to be better suited to transform Shinhan Card into a platform company amid increasing challenges in maintaining the top position. Park has led Shinhan Card’s big data and payment divisions. Recently, he has been responsible for three major new data- and digital-based businesses, positioning Shinhan Card to grow as a platform company. The reason for Moon Dong-kwon's replacement became clear when Shinhan Card lost its top industry position to Samsung Card in the 2024 annual performance results. Shinhan Card recorded a net profit of KRW 572.1 billion (US$ 412.4 million) in 2024, down 7.8% from the previous year. In the fourth quarter of 2024 alone, Shinhan Card posted a net profit of KRW 19.4 billion (US$ 14.0 million). This decline was attributed to increased one-time costs from early retirements and corporate taxes. In contrast, Samsung Card achieved a net profit of KRW 664.6 billion (US$ 479.1 million). It posted a net profit of KRW 133.1 billion (US$ 96.0 million) in the fourth quarter of 2024, widening the gap with Shinhan Card by over KRW 100 billion (US$ 72.1 million) and reclaiming the top spot in the industry. However, some observers believe that Park's appointment has weakened the pool of candidates for the next chairman. The CEO of Shinhan Card, along with the CEO of Shinhan Bank, is typically considered a strong contender for Shinhan Financial Group’s chairman shortlist. With less than a year left before the next chairman recommendation, it is seen as difficult to include a newly appointed CEO in the list of chairman candidates. Chairman Jin replaced nine affiliate CEOs, selecting five from division head positions. In addition to Park Chang-hoon, the other appointees from division head positions include Chae Soo-woong, CEO of Shinhan Savings Bank; Min Bok-ki, CEO of Shinhan DS; Kim Jung-nam, CEO of Shinhan Fund Partners; and Im Hyun-woo, CEO of Shinhan REITs Management. This rise of division head-level executives is interpreted as Chairman Jin's intention to actively appoint the next generation of leaders and achieve generational change. ◆ Shinhan Bank CEO Jeong Sang-hyuk solidifies his position While the rise of division head-level executives has somewhat weakened the weight of Shinhan Financial Group’s chairman candidates, Jeong Sang-hyuk, CEO of Shinhan Bank, has been solidifying his position. After the internal conflict over succession known as the "Shinhan incident," Shinhan Financial Group’s hierarchy involving Shinhan Bank, Shinhan Card, and Shinhan Life has effectively been established. Although an unexpected figure like Chairman Jin Ok-dong could emerge as the CEO of Shinhan Bank, it is now considered a given that the CEO of Shinhan Bank will eventually become the next chairman. Chairman Jin’s appointment as chairman in 2022 surprised the industry. However, this was because the previous chairman, who was strongly expected to serve a third term, suddenly resigned during the interview process. Jin’s appointment itself was not seen as a shock to the industry. Jeong Sang-hyuk, the current CEO of Shinhan Bank, is also being mentioned as a candidate for the next chairman. Jeong was the only CEO among the heads of the five major banks to retain his position despite the wave of generational change that swept through the financial industry at the end of last year. In addition to being reappointed, Jeong received an unprecedented two-year term guarantee, breaking the usual industry practice of granting only a one-year extension for bank CEOs. This exceptional treatment is interpreted as a sign of Chairman Jin’s strong trust in Jeong. Jeong has led balanced growth in both Shinhan Bank’s interest and non-interest income, achieving a record net profit of KRW 3.6954 trillion (US$ 2.664 billion). Moreover, he introduced the financial industry's first internal control responsibility structure, successfully balancing internal control and management stability. Jeong’s management and internal control capabilities have also yielded visible results, as Shinhan Bank reclaimed its position as the leading bank. This marks the first time in six years since Shinhan Bank posted a net profit of KRW 2.279 trillion (US$ 1.643 billion) in 2018, surpassing KB Kookmin Bank’s KRW 2.2592 trillion (US$ 1.629 billion) by a narrow margin. This has led to speculation that the succession structure within Shinhan Financial Group has been solidified. Even if Chairman Jin fails to secure reappointment after completing his term in one year, Shinhan Financial Group could avoid a leadership vacuum if Jeong’s term as a non-executive director at Shinhan Financial Group remains in effect. Jeong Sang-hyuk was born in 1964. He will be 61 years old as of March 2026, when the next chairman’s term begins. If Chairman Jin succeeds in securing reappointment, Jeong would be eligible to run for the chairman position in March 2029, when Chairman Jin reaches the age limit. If Jeong becomes the chairman of Shinhan Financial Group in March 2029, when he will be 64 years old, he would be eligible for up to two consecutive terms. #ShinhanFinancialGroup #JinOkdong #ShinhanCard #ParkChanghoon #JeongSanghyuk #ShinhanBank #SamsungCard #financialindustry #leadership #CEOappointments
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- HLB's Expansion: Strategic Growth or Fundraising? Jin Yang-gon’s Multiple Directorships Spark Controversy
- Jin Yang-gon, Chairman of HLB Group, is continuing his aggressive mergers and acquisitions (M&A) strategy this year to establish a comprehensive biotechnology ecosystem for the group. HLB Group’s drug development system, "HBS," which Chairman Jin has emphasized, is designed to integrate the core capabilities of each affiliate—research and development, production, regulatory compliance, approvals, and marketing—to create synergy. However, as he continues to acquire companies and joins their boards of directors, concerns are growing about whether his extensive concurrent positions in ten companies could undermine his duty of diligence. According to the Electronic Disclosure System on March 13, Chairman Jin is set to be newly appointed as an inside director of AnyGen, a peptide-based biotechnology company. With this, the number of affiliates where he serves as an inside director has now reached ten. Currently, among HLB Group’s 11 listed companies, Jin holds an inside director position in all except HLB Therapeutics. His directorships now include HLB, HLB Life Science, HLB Pharmaceutical, HLB Global, HLB Science, HLB Biostep, HLB PanaGen, HLB Innovation, HLB Genex, and now AnyGen. HLB Group has been strengthening its control over newly acquired companies by appointing Chairman Jin and other key HLB officials to their boards of directors. HLB Genex (formerly Genofocus) was acquired by HLB Group in October 2024, and by December of the same year, four new inside directors, including Jin, were appointed. A similar pattern is emerging with AnyGen. Of course, as the overall leader of the group, it is crucial for Jin to set the strategic direction for newly acquired companies as part of their initial board composition. However, questions remain about whether he can effectively participate in the decision-making process of ten different boards. The issue of excessive concurrent executive roles among major corporate leaders has long been controversial. Lotte Group Chairman Shin Dong-bin faced scrutiny for holding multiple inside director positions, including at Lotte Holdings, Lotte Chemical, and Lotte Wellfood. Similarly, Hanwha Group Vice Chairman Kim Dong-kwan’s concurrent leadership in four companies raised concerns about his ability to dedicate sufficient time to each board. Jin has so far maintained a board meeting attendance rate of over 90% at eight of his affiliated companies. His attendance records show 100% for HLB (as of Q3 2024), 100% for HLB PanaGen (as of H1 2024), 100% for HLB Biostep (as of H1 2024), 95% for HLB Global (as of Q3 2024), 95% for HLB Innovation (as of the full year 2024), 93% for HLB Life Science (as of Q3 2024), 90% for HLB Pharmaceutical (as of Q3 2024), and 67% for HLB Science (as of the full year 2023). However, with the addition of HLB Genex and AnyGen this year—and the possibility of further acquisitions—concerns about the effectiveness of his participation in board activities are expected to grow. Moreover, Jin’s entry as an inside director at newly acquired affiliates is also closely tied to financing. HLB Group has been using multiple subsidiaries to raise funds for acquisitions. In the case of the AnyGen acquisition, seven HLB Group affiliates (HLB, HLB Genex, HLB Life Science, HLB Biostep, HLB PanaGen, HLB Investment, and Koas) were mobilized. Notably, HLB Genex was brought in for the AnyGen acquisition less than six months after it was acquired by HLB Group. During the HLB Genex acquisition, seven affiliates were also used to raise funds. This has led to speculation that Jin’s acquisitions may be primarily aimed at financing further acquisitions. HLB has repeatedly conducted shareholder-allotted capital increases to secure acquisition funds. While the company claims this structure helps distribute risks within the group, the repeated capital raises have ultimately benefited Jin’s financial interests. While Jin argues that the acquisitions are necessary for HLB’s growth, concerns persist that HLB Group could end up accumulating financially weak companies, especially as its key cancer drug, Rivoceranib, has yet to deliver meaningful results. Most of the companies acquired by HLB continue to operate at a loss. According to 2024 consolidated financial results for the group’s listed affiliates, HLB Life Science reported an operating loss of KRW 24.4 billion (US$ 17.6 million), HLB Global posted an operating loss of KRW 3.6 billion (US$ 2.6 million), HLB Biostep recorded an operating loss of KRW 12.9 billion (US$ 9.3 million), HLB PanaGen had an operating loss of KRW 1.3 billion (US$ 0.9 million), and HLB Innovation reported an operating loss of KRW 11.8 billion (US$ 8.5 million). As of Q3 2024, HLB Genex reported an operating loss of KRW 400 million (US$ 288,400), while AnyGen recorded an operating loss of KRW 4.1 billion (US$ 3 million). HLB itself has been in the red for 11 consecutive years, with its last operating profit recorded in 2014 at KRW 360 million (US$ 259,500). For 2024, HLB posted a consolidated operating loss of KRW 118.8 billion (US$ 85.7 million), narrowing its deficit by about KRW 6.2 billion (US$ 4.5 million) compared to 2023. With continued losses, HLB’s stock price has also declined. On March 14, 2024, HLB’s share price stood at KRW 97,000, but as of the March 12, 2025 closing price, it had fallen to KRW 78,500, a 19% drop. Its market capitalization also shrank from KRW 12.69 trillion (US$ 9.15 billion) to KRW 10.31 trillion (US$ 7.43 billion), erasing KRW 2.37 trillion (US$ 1.71 billion) in value. For HLB Group’s drug development system to function as designed, the group’s core drug candidates must successfully complete clinical trials and reach commercialization. However, the targeted anticancer drug Rivoceranib, which marks the beginning of HLB Group’s drug development efforts, has yet to show tangible results. Jin has insisted on independently developing Rivoceranib rather than licensing it out, aiming to ensure that all profits remain within HLB Group. However, as commercialization continues to be delayed, the financial burden on the group is mounting. Within the next 20 days, the U.S. Food and Drug Administration (FDA) is expected to notify HLB of its decision on Rivoceranib’s new drug application. HLB stated on its official blog, “We will immediately announce the FDA’s decision on YouTube once we receive it,” urging investors “not to be swayed by malicious rumors.” #HLB #JinYanggon #biotech #pharmaceuticals #M&A #Rivoceranib #FDAapproval #investment #stockmarket #corporategovernance
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- Kyeryong Construction Ramps Up Orders: Lee Seung-chan Aims to Reignite Public Sector Dominance
- Kyeryong Construction Industrial has been rapidly securing orders this year at a faster pace than last year. Even before the first quarter ends, the company is particularly excelling in public construction, a sector where it ranked first last year. Chairman Lee Seung-chan of Kyeryong Construction Industrial is expected to leverage the company’s strengths in public construction to ignite a rebound in performance. According to the Financial Supervisory Service's disclosure on March 13, Kyeryong Construction Industrial's total project orders, based on official filings, have reached KRW 435.6 billion (US$ 314.1 million) so far this year. All of the company’s contracts secured this year have been public construction projects commissioned by the government, local governments, and public enterprises. On March 11, Kyeryong Construction Industrial signed a contract with Korea Land & Housing Corporation (LH) for an apartment construction project in Sejong City. In February, it secured contracts with the Public Procurement Service, the Defense Acquisition Program Administration, and LH for apartment projects in Janghang, Goyang, Gyeonggi Province. In January, it signed a contract with Seoul Housing & Communities Corporation (SH) for a public housing project in Songpa. Considering that Kyeryong Construction Industrial's first contract last year was signed in April for Coupang’s fulfillment center (FC) in Busan, the company's order acquisition speed this year has been exceptionally fast. The company appears to be leveraging its strong track record in public construction, having previously undertaken major projects such as the Prime Minister’s Office at the Government Complex Sejong, the Bank of Korea's integrated annex, and facilities for the 2018 PyeongChang Winter Olympics. Among construction firms, Kyeryong Construction Industrial was the top recipient of public construction contracts last year, securing KRW 1.59 trillion (US$ 1.15 billion) and narrowly surpassing DL E&C (KRW 1.57 trillion or US$ 1.13 billion). At that time, Kyeryong Construction Industrial was regarded as having reclaimed its throne in public construction, having previously held the No. 1 position in new public construction orders for four consecutive years from 2016 to 2019. Public construction projects typically have lower profitability compared to private sector contracts. However, since payments from public clients are more secure, such projects are considered a reliable way for construction companies, especially mid-sized firms, to stabilize their financial structure amid an industry downturn. Moreover, expectations are rising as Minister of Land, Infrastructure, and Transport Park Sang-woo has expressed agreement on adjusting public construction costs to reflect rising material prices. Chairman Lee Seung-chan is expected to continue improving the company's financial structure by rapidly expanding its order backlog this year. According to financial statements submitted for the upcoming shareholders' meeting, Kyeryong Construction Industrial recorded consolidated revenue of KRW 3.17 trillion (US$ 2.29 billion) last year, a 6.4% increase from 2023, marking the company’s first time surpassing the KRW 3 trillion milestone. However, operating profit declined by 17.7% due to rising costs, continuing a downward trend. Meanwhile, net profit increased by 4.9% due to a reduction in other non-operating expenses. As of the end of last year, the debt ratio stood at 220%, improving from 231% at the end of September. Excluding subsidiaries, the company’s standalone debt ratio also improved from 166% in September to 145% by year-end. Since these financial statements have not yet undergone external audits, they may be subject to change. However, as of now, Kyeryong Construction Industrial’s business outlook appears relatively positive. Chairman Lee is striving to sustain the company’s growth momentum by setting this year’s order target at a level similar to last year’s record-breaking results. At the company’s 55th-anniversary event in January, he announced a group-wide order target of KRW 6.4 trillion (US$ 4.61 billion), comparable to last year’s all-time high of KRW 6.52 trillion (US$ 4.70 billion). Despite revenue growth, the ongoing pressure from rising costs has led to declining operating profits, prompting a stronger focus on profitability management. Chairman Lee emphasized, “Kyeryong Construction Industrial has proactively diversified its portfolio and taken preemptive measures to address risks, successfully achieving record-high orders last year despite an uncertain business environment. However, the sharp increase in costs and the resulting low profitability remain harsh realities we must confront.” Kyeryong Construction Industrial has maintained the same board structure as last year, prioritizing stability. Chairman Lee Seung-chan has been re-nominated as an inside director. The eldest son of company founder Lee In-goo, Chairman Lee currently oversees overall management as an inside director rather than as a CEO. CEO Yoon Gil-ho has also been re-nominated as an inside director. Since CEO Oh Tae-sik, Chairman Lee’s brother-in-law, remains in office, the company is expected to continue operating under a dual CEO system, with Chairman Lee overseeing management. Additionally, Kyeryong Construction Industrial has re-nominated Han Seung-goo, a former CEO, as an inside director. Han stepped down as CEO in March 2023 to focus on his role as chairman of the Construction Association of Korea but has continued to serve as an inside director, providing management advice. The company believes it is leveraging its extensive public construction track record to maintain its competitive edge. Since public construction projects are commissioned by government agencies and public enterprises, firms with a well-established history and experience in the sector tend to have an advantage over competitors. A Kyeryong Construction Industrial official stated, “Kyeryong Construction Industrial has traditionally demonstrated strong capabilities in public construction, accumulating experience and expertise in both public and private projects, including logistics centers and hospitals. With our extensive track record, we maintain a competitive edge over other construction firms.” #KyeryongConstruction #publicConstruction #LeeSeungchan #constructionIndustry #governmentContracts #KoreaInfrastructure #buildingProjects #financialStability #orderBacklog #profitabilityManagement
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- Samsung Electronics Faces Foundry Spin-Off Dilemma: Will Lee Jae-yong Act in Time?
- Samsung Electronics is facing intense debate over whether to spin off its foundry business. As the company encounters a crisis in the semiconductor sector, various solutions are being discussed, and the idea of spinning off the foundry unit remains a key topic. Regardless of the decision on the foundry business, the ultimate choice rests entirely with Samsung Electronics Chairman Lee Jae-yong. However, since the semiconductor industry has become a national issue, with discussions on a special semiconductor law taking place in the National Assembly, Chairman Lee must present both the rationale and vision behind his decision, whatever it may be. Former Chairman Lee Kun-hee emphasized organizational flexibility and efficiency throughout his lifetime while warning against the bureaucratization of large corporations. He stated, “Even as a large company, we must operate like a small business,” stressing that “smaller organizations can respond more swiftly to environmental changes and have greater agility.” Lee Kun-hee’s philosophy became the foundation for Samsung Electronics to swiftly adapt to a rapidly changing business environment and continuously pursue innovation, allowing it to grow into a world-class company. The foundry business involves contract manufacturing of semiconductors based on designs provided by fabless semiconductor companies, requiring both cutting-edge technology and massive investment. While Samsung Electronics remains the undisputed global leader in memory semiconductors, it continues to struggle against Taiwan’s TSMC in the foundry sector. When and how will Chairman Lee Jae-yong make a decision regarding the foundry spin-off? The real concern is not just the decision itself but the risk of missing the right timing. ◆ The Longstanding Dilemma of the Foundry Spin-Off Because Samsung Electronics is a massive organization, often referred to as a "giant," some argue that spinning off the foundry business is necessary to enhance agility and establish an independent decision-making structure. The foundry business, in particular, relies on quickly responding to customer demands and providing customized solutions, which are considered key competitive factors. Critics argue that such agility is difficult to achieve within a large corporate structure, where complex decision-making processes can hinder competitiveness. Additionally, as an integrated device manufacturer (IDM), Samsung Electronics operates in memory semiconductors, system semiconductors, and the foundry business simultaneously, leading to continuous concerns about potential conflicts of interest with prospective customers. From the perspective of fabless semiconductor companies, entrusting their core technologies and designs to Samsung Electronics—a competitor and potential rival—raises concerns. This stands in stark contrast to TSMC, which has dominated the foundry market by adhering to its philosophy of “not competing with customers.” Park Sang-in, a professor at Seoul National University’s Graduate School of Public Administration and chairman of the Economic Justice Action Network’s (Gyeongsilryeon) Chaebol Reform Committee, expressed criticism during a press conference held in front of Samsung Electronics’ Seocho headquarters in October 2024. The event, titled “Samsung Electronics’ RE100 Response Plan and Call for the Sale of Its System Semiconductor Design Division,” saw Park argue, “Samsung Electronics is struggling because of its misguided obsession with maintaining the system semiconductor design business,” adding, “As a result, the foundry division has failed to secure orders for the latest products from big tech companies.” Hwang Min-seong, an analyst at Samsung Securities, also addressed the issue in his report titled “Geopolitical Paradigm Shift and Industry,” stating, “For Samsung Electronics’ foundry business, close interaction with customers is crucial. Just as Samsung is expanding its manufacturing presence in the U.S., localization is necessary, and spinning off the foundry business and listing it in the U.S. is worth considering.” ◆ Lee Jae-yong’s Dilemma: Why He Hesitates on the Spin-Off Why has Chairman Lee Jae-yong not made a decisive move to spin off the foundry business? On the surface, practical concerns such as market conditions and investment requirements are frequently cited. The first concern is uncertainty over securing customers after a spin-off. Even if Samsung Electronics were to separate its foundry business, experts believe it would not be easy to immediately attract TSMC’s clients. TSMC has built long-term trust with its customers and strengthened its semiconductor alliances through aggressive diplomatic efforts, backed by the U.S. government. The second major concern is the enormous financial burden of investment. The foundry business demands astronomical expenditures for advanced equipment, such as extreme ultraviolet (EUV) lithography machines. Samsung Electronics has historically leveraged profits from its memory semiconductor division to invest in its foundry business, thereby enhancing its competitiveness. A spin-off could sever this internal support, significantly weakening the foundry unit’s financial stability. Lastly, concerns over a potential decline in Samsung Electronics’ shareholder value cannot be ignored. In 2020, LG Chem spun off its battery business to establish LG Energy Solution, which subsequently led to a drop in LG Chem’s stock price. Considering these factors, Chairman Lee Jae-yong appears unconvinced about the necessity of a foundry spin-off. According to Reuters, during a visit to the Philippines in October 2024, Chairman Lee responded to a question about the potential separation of the foundry unit by saying, “Samsung Electronics is hungry for growth in the foundry business” and that he was “not interested in spinning it off.” ◆ Samsung’s “Decisive DNA” Former Chairman Lee Kun-hee demonstrated a relentless drive for innovation and decision-making, famously declaring in the "Frankfurt Declaration," “Change everything except your wife and children.” He shifted Samsung’s focus from quantity to quality, advocating for a complete transformation in the company’s organization, culture, and systems. One of the most iconic examples of his decisiveness was the infamous "Anycall Bonfire," where 150,000 defective mobile phones were burned to emphasize Samsung’s commitment to quality. Many now call for Chairman Lee Jae-yong to exhibit a similar level of decisiveness. There is no denying that Chairman Lee has achieved significant accomplishments despite a challenging business environment. However, with Samsung Electronics facing a crisis and semiconductor industry support becoming a political issue, bolder innovation and decisive action appear increasingly necessary. In 2019, Chairman Lee announced the “System Semiconductor Vision 2030,” setting a goal to become the world’s top player in system semiconductors by 2030. However, critics argue that concrete execution strategies and bold investment decisions have been lacking. At the time, Samsung pledged to invest KRW 133 trillion (US$ 95.9 billion) over ten years in R&D and production facilities while training 15,000 professionals, but the results have fallen short of market expectations. The semiconductor landscape is evolving rapidly, rendering past strategies obsolete. The market is now looking for bold leadership from Chairman Lee Jae-yong. His first step could be making a decisive call on the foundry spin-off and effectively persuading stakeholders. #Samsung #foundry #semiconductor #TSMC #LeeJaeyong #spinOff #IDM #investment #chipIndustry #innovation
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- Naver Launches AI-Powered, Same-Day Delivery Shopping App—E-commerce Battle Heats Up Against Coupang
- Naver is set to engage in a fierce competition with Coupang. On March 12, Naver launched its artificial intelligence (AI)-powered shopping app, "Naver Plus Store," approximately four and a half months after its pilot operation began in October last year. The most notable feature of "Naver Plus Store" is that it separates the commerce function, which was previously operated as a shopping tab within Naver's main app, into an independent application. It also introduces "artificial intelligence" and "same-day delivery" as its new key strategies. This move demonstrates Naver's determination to reverse its position with the new app, as it has been perceived as lagging behind Coupang in terms of growth. Naver emphasizes that the app is designed to provide a highly personalized shopping experience. "Naver Plus Store" analyzes personal purchase history, shopping habits, recent interests, and seller-related data to recommend products and offer related promotions tailored to individual users. Another notable aspect is the decision to separate shopping functions from the main Naver app. At a time when the trend is shifting towards integrating all functions into a single "super app," Naver's strategy of creating a standalone shopping app is considered an unconventional move. Naver and Coupang currently dominate the e-commerce industry in South Korea. While market share figures vary by research firm, both platforms are estimated to hold similar shares of around 20–25%. However, in terms of growth rate, Naver lags behind Coupang. Coupang recorded revenue of $30.268 billion in 2024, reflecting a 24% year-on-year increase. When measured at a constant exchange rate, the revenue growth rate rises to 29%. This is nearly twice the 14.8% growth rate Naver achieved last year. Naver also struggles to compete with Coupang in terms of securing "loyal customers," who are considered the core users of a platform. In 2024, Naver generated KRW 195.2 billion (US$ 140.7 million) in membership revenue, averaging KRW 16.3 billion (US$ 11.8 million) per month. Given that Naver charges a monthly membership fee of KRW 4,900 (US$ 3.5) per user, the company's estimated number of paying members stands at around 3.3 million. Coupang’s membership base is at least four times larger. While Coupang did not disclose its exact membership count for the end of 2024, it had already secured 14 million members by the end of 2023. This explains why some analysts view Naver’s strategy of launching a separate shopping app to compete with Coupang as a risky move. Many in the e-commerce industry believe that Naver's existing loyal customer base alone is insufficient to divert traffic away from Coupang. In fact, when Naver opened pre-registration for "Naver Plus Store" a week before its official launch, only around 400,000 users signed up. Nevertheless, Naver still has opportunities to leverage. In terms of total transaction volume, which has traditionally been a key benchmark for evaluating e-commerce platforms, Naver is estimated to be ahead of Coupang. In 2024, Naver’s commerce division recorded a total transaction volume of KRW 50.3 trillion (US$ 36.3 billion), while Coupang’s transaction volume was estimated to be around KRW 45–46 trillion (US$ 32.4–33.2 billion), approximately 10% lower than Naver’s. Naver appears to have been influenced by the belief that integrating its IT-driven capabilities with its shopping services could differentiate it from Coupang. To that end, Naver has equipped "Naver Plus Store" with features that Coupang does not offer. One of the most prominent is the "AI Shopping Guide," which aims to enhance user convenience. This feature allows users to receive product recommendations based on their preferences. For example, when searching for a "refrigerator," Naver categorizes products with descriptions such as "ideal for kimchi storage," "large freezer capacity," "suitable for restaurants," "recommended for newlyweds," and "includes ice-making function," making it easier for customers to find what they need. This feature was developed using Naver’s proprietary AI model, "HyperCLOVA X," which is not available on Coupang. Initially implemented for electronics, Naver plans to expand its application to other product categories. Naver is also determined to match Coupang’s strength in logistics, which has been regarded as an "economic moat" (a competitive advantage that is difficult for rivals to replicate). With the launch of "Naver Plus Store," Naver renamed its delivery service from "Naver Arrival Guarantee" to "Naver Delivery (N Delivery)." It now offers various shipping options, including same-day delivery, next-day delivery, Sunday delivery, and scheduled delivery. A key feature is that Naver’s membership customers receive free shipping on purchases over KRW 10,000 (US$ 7.2). Additionally, Naver is introducing free returns and exchanges for its membership customers, mirroring Coupang’s service. This move appears to be aimed at improving the perception that Naver’s delivery service is less convenient than Coupang’s. Naver has already seen some positive results during the pilot operation of "Naver Plus Store." In the fourth quarter of 2024, Naver’s commerce division recorded a growth rate five times higher than the average market growth rate in the e-commerce industry. Some analysts attribute this strong performance to the test run of "Naver Plus Store." #Naver #Coupang #ecommerce #AIshopping #NaverPlusStore #onlinedelivery #HyperCLOVAX #retailtech #Koreaecommerce #digitaltransformation
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- Woori Financial Group’s Board Reshuffle—Pressure Mounts on Yim Jong-ryong with One Year Left
- Woori Financial Group's board of directors is undergoing a major reshuffle. Chairman Yim Jong-ryong has about a year left in his term, and establishing relationships with the newly formed board has emerged as a new challenge. Woori Financial Group operates under an oligopolistic shareholder system, where the board is composed of outside directors recommended by these shareholders. This sets it apart from other financial holding companies. In other financial holding companies, where there are no controlling owners, the chairman has a strong influence over the selection of outside directors. Since these appointed directors then choose the next chairman, financial regulators scrutinize the process, suspecting it might be a form of "self-reappointment." On the other hand, Woori Financial Group’s outside directors strongly represent the interests of its oligopolistic shareholders. As four out of seven outside directors are being replaced at this year’s general shareholders’ meeting, Chairman Yim must reassess the board's stance. ◆ Woori Financial Group’s Board Reshuffle Strengthens Oligopolistic Shareholders' Control On February 28, Woori Financial Group held an Executive Candidate Recommendation Committee meeting and announced new outside director candidates. Among the five outgoing outside directors, four—Yoon Soo-young, Shin Yo-han, Ji Sung-bae, and Jung Chan-hyung—were replaced, except for Yoon In-sub, who was recommended by Fubon Group. Eugene PE nominated Kim Choon-soo, former CEO of Eugene Logistics, as a new outside director candidate. Kim previously served as the first head of the Ethics Management Office at Eugene Corporation, demonstrating expertise in internal control and ethical management. Kiwoom Securities recommended Kim Young-hoon, former CEO of Daou Technology, as an outside director. Kim is an expert in IT and digital fields and was selected to enhance Woori Financial Group’s digital innovation and data-driven management. Korea Investment & Securities nominated Lee Kang-haeng, former vice chairman of Korea Investment Holdings. Having worked in the financial industry for over 30 years, Lee is recognized for his leadership in ethical responsibility and internal control. Additionally, Lee Young-sub, a professor at Seoul National University’s Graduate School of International Studies, was selected as an outside director candidate by the Executive Candidate Recommendation Committee. Lee previously served as the head of the Seoul National University Financial Economics Research Institute and president of the Korean Finance Association, making him a financial and economic expert. Even though Woori Financial Group's board now consists of Chairman Yim as an internal director, three outside directors recommended by Woori Financial, and four outside directors recommended by oligopolistic shareholders, their influence does not appear to have weakened. This is because, while Woori Financial Group ended the long-standing practice of outside directors simultaneously serving as outside directors for Woori Bank, the oligopolistic shareholders’ nominees were still appointed as Woori Bank's outside directors. For example, Yoon Soo-young (recommended by Kiwoom Securities), who previously chaired Woori Bank’s board, stepped down as an outside director of Woori Financial Group but remained an outside director at Woori Bank. The same applies to Shin Yo-han, recommended by Eugene PE. Although the number of oligopolistic shareholders decreased from five to four, the number of outside directors recommended by them increased from five to six. ◆ Oligopolistic Shareholders’ Criteria for Chairman Reappointment The oligopolistic shareholders of Woori Financial Group determine the fate of its chairman. Their decision-making criteria can be seen in the reappointment success and failure of former chairman Sohn Tae-seung. In 2020, despite the risk of severe penalties from the derivative-linked fund (DLF) scandal, oligopolistic shareholders supported Sohn’s reappointment. Even as financial regulators sanctioned him and the National Pension Service, the largest shareholder, officially opposed his reappointment, Sohn secured another term thanks to their backing. However, the situation changed in 2023. As Sohn continued to clash with financial regulators after receiving a reprimand for the Lime Asset Management scandal, Woori Financial Group’s outside directors held a meeting at Woori Bank’s headquarters in Jung-gu, Seoul, on January 4, 2023, to discuss response strategies for the penalties but failed to reach a conclusion. Sohn was initially determined to seek reappointment, but upon learning of opposition within the board, he decided to withdraw. On January 18, 2023, ahead of the first meeting of Woori Financial Group’s Executive Candidate Recommendation Committee, Sohn announced to the board that he would not seek reappointment. ◆ Woori Financial Group’s Governance Experiment: The Oligopolistic Shareholder System Woori Financial Group took its first step toward privatization in 2016, marking the end of 15 years under government control since its establishment in 2001 through the consolidation of financially troubled institutions. The government had attempted to privatize Woori Financial Group four times since 2010, but each attempt failed. Due to its sheer size, the first three privatization attempts failed to attract competitive bids. In the fourth attempt, efforts to downsize led to some subsidiaries finding new owners, but Woori Bank remained under government control. In the 2016 sale of Woori Bank, the government introduced a governance structure where oligopolistic shareholders were given the right to recommend outside directors, ensuring their participation in management. This approach attracted market interest as it allowed for management influence with relatively small investments. Ultimately, Woori Financial Group’s privatization was completed with the participation of seven oligopolistic shareholders: Tongyang Life, Mirae Asset Global Investments, Eugene Asset Management, Kiwoom Securities, Korea Investment & Securities, Hanwha Life, and IMM Private Equity (PE). Among them, Korea Investment & Securities, Kiwoom Securities, Hanwha Life, Tongyang Life, and IMM PE secured the right to recommend outside directors. At the time, this system was seen as a way to eliminate the inefficiencies of government intervention that had hindered Woori Bank’s growth and to establish a shareholder-centered management model. Nine years later, however, Woori Financial Group now faces the harsh reality of having the lowest performance among Korea’s four major financial holding companies, as well as frequent financial scandals. As of 2025, only four oligopolistic shareholders remain. Tongyang Life and Hanwha Life have exited, while IMM PE recently sold off its entire stake, stepping away from Woori Financial Group’s management. The remaining oligopolistic shareholders are Kiwoom Securities, Korea Investment & Securities, Fubon Group, and Eugene PE. ◆ Oligopolistic Shareholder System Fails to Meet Expectations The oligopolistic shareholder system was initially expected to strengthen corporate oversight since many outside directors were actual shareholders, thereby ensuring their role as monitors and checks on management. It was also seen as a way to prevent unqualified outside directors from merely rubber-stamping decisions, a common problem in financial holding companies. Additionally, the system was anticipated to drive stock price growth and performance improvement. However, Woori Financial Group has not outperformed other financial holding companies under this system. Across multiple objective performance metrics, Woori Financial Group has fallen short compared to its competitors. As of 2024, Woori Financial Group reported a net profit of KRW 3.086 trillion (US$ 2.23 billion), ranking fourth among financial holding companies. Since its privatization in 2016, it has never placed higher than third. In comparison, the net profits of other financial holding companies were: - KB Financial Group: KRW 5.0782 trillion (US$ 3.66 billion) - Shinhan Financial Group: KRW 4.5175 trillion (US$ 3.26 billion) - Hana Financial Group: KRW 3.7388 trillion (US$ 2.7 billion) Critics argue that Woori Financial Group’s board has failed to properly oversee and hold management accountable. On September 4, 2024, Financial Supervisory Service Governor Lee Bok-hyun criticized Woori Bank’s response to insider lending scandals, saying, "The culture of collusion was widespread. Whether through legal or non-legal measures, recent management must bear responsibility." #WooriFinancialGroup #BoardReshuffle #OligopolisticShareholders #FinancialGovernance #Banking #Investment #Privatization #YimJongryong #FinancialRegulation #KoreaBanking
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- NH NongHyup Bank’s Kang Tae-young Enters 4th Internet Bank Race, Targeting Regional Growth and Digital Innovation
- NH NongHyup Bank has officially entered the race for the fourth internet-only bank license by joining the Korea SOHO Bank consortium. This is a significant move for NH NongHyUp Bank President Kang Tae-young. Through the internet banking business, President Kang aims not only to expand opportunities for regional economic cooperation but also to enhance the bank’s digital capabilities, which could serve as a foundation for becoming a digital-leading bank. On the 11th, according to Korea Credit Data (KCD), NH NongHyup Bank announced its participation in the Korea SOHO Bank consortium to establish the fourth internet bank. Recently, NH NongHyup Bank submitted a letter of intent to invest in the Korea SOHO Bank consortium, finalizing its participation. It is reported that NH NongHyup Bank spent considerable time and effort deliberating on whether to join the consortium, even seeking external consulting services. A key factor behind NH NongHyup Bank’s decision is its unique position as a financial affiliate of the broader NongHyup network, which is dedicated to agricultural and rural development. According to the internet-only bank licensing guidelines released by financial regulators in December of last year, inclusivity is a crucial criterion in the fourth internet bank licensing process. Inclusivity involves not only providing financial support for low-income borrowers but also extending financial services to local businesses. From NH NongHyup Bank’s perspective, participating in the establishment of an internet bank presents an opportunity to expand financial support to rural and regional areas. For President Kang Tae-young, who declared digital-leading bank as his primary goal upon taking office, the chance to gain experience in digital banking is also an attractive aspect of this venture. NH NongHyup Bank has been working to enhance its digital capabilities, centering around its flagship app, All One Bank. However, industry experts believe NH NongHyup Bank lags behind other commercial banks in digital competitiveness. Unlike traditional banks, internet-only banks operate without physical branches, meaning all banking services must be accessible via apps or online platforms. As a result, internet banks require high levels of service stability and user convenience. According to IGAWorks Mobile Index data, as of January, Toss and KakaoBank ranked first and second in terms of bank app user numbers. By participating in the consortium, NH NongHyup Bank can gain indirect but valuable insights into internet banking operations, helping to strengthen its digital competitiveness. In the long term, NH NongHyup Bank also sees potential for financial gains. Existing internet banks such as K Bank and KakaoBank reported record-high profits last year, demonstrating strong financial performance. By holding a stake as a consortium member, NH NongHyup Bank could benefit from potential future profits. Additionally, the bank has an increasing need to develop new revenue sources. Its contract as the partner bank for cryptocurrency exchange Bithumb has expired, making a negative impact on profitability inevitable. NH NongHyup Bank expects that synergy will emerge from combining Korea Credit Data’s small business data with NH NongHyup Bank’s nationwide network. A bank representative stated, “NH NongHyup Bank aims to expand its financial services this year, including corporate banking and support for small businesses across Korea. We will actively collaborate to provide more innovative financial services through the new internet bank.” Financial regulators will accept applications for the fourth internet-only bank license on March 25 and 26. #NHNongHyupBank #KoreaSOHOBank #internetbank #digitalbanking #KangTaeyoung #fintech #finance #banking #investment #businessstrategy
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- Another Fatal Accident 10 Days After Hyundai Engineering CEO Joo Woo-jeong’s Apology
- "We will fully cooperate with all investigations and take necessary actions while implementing thorough measures to prevent such accidents from recurring in the future." This was the statement made just ten days ago, on February 28, by Joo Woo-jeong, CEO of Hyundai Engineering, regarding the collapse of a bridge construction site on the Seoul-Sejong Expressway. However, on March 10, another fatal accident occurred at the construction site of the Hillstate apartment complex in Pyeongtaek's Hwayang District. With consecutive fatal accidents at Hyundai Engineering’s construction sites, criticism is mounting that Joo’s commitment to "safety management" is proving to be an empty promise. According to the National Assembly’s Land, Infrastructure, and Transport Committee on the 11th, Joo will attend the committee’s plenary meeting scheduled for the morning of March 13. During this meeting, discussions will focus on the investigation into the passenger plane crash at Muan Airport on December 29, 2023, as well as the enactment of a special law related to the incident. Additionally, inquiries will be made regarding the Seoul-Sejong Expressway construction site accident. A representative from the office of Moon Jin-seok, a lawmaker from the Democratic Party and a member of the Land Committee, stated, "The representatives of Hyundai Engineering and its subcontractor, Jangheon Industry, will attend the meeting regarding the Seoul-Sejong Expressway accident. There will be questions about the exact cause of the accident and the support measures for the victims." Joo is expected to face heavy criticism from both ruling and opposition lawmakers, not only for the expressway accident but also for the apartment construction site accident that occurred just a day earlier. According to the construction industry, the Ministry of Employment and Labor immediately issued a work suspension order at the Hillstate Pyeongtaek Hwayang apartment construction site and launched an investigation into the cause of the accident. The ministry is also reportedly reviewing whether the accident violated the Serious Accidents Punishment Act. At around 10:30 AM on the previous day, two workers from a subcontractor fell while working at the apartment construction site in Pyeongtaek’s Hwayang urban development area, which is being built by Hyundai Engineering. According to police investigations, the workers fell when a tower crane lifted a formwork panel that had not been fully dismantled. One worker fell from a height of 3 meters and was injured, while another fell 6 meters and died. Earlier, on February 25, a fatal accident occurred at the Cheongyongcheon Bridge construction site on the Seoul-Sejong Expressway, where Hyundai Engineering was the lead construction company. That accident resulted in 10 casualties, including four deaths. Following that incident, Joo publicly apologized at a press conference on February 28, pledging to thoroughly investigate the cause and provide full support to the victims and their families. Joo has only been in his position as Hyundai Engineering’s CEO for about two months. Even aside from his background as a finance expert rather than a construction specialist, it is a challenging time for him to personally oversee safety across all project sites nationwide. Additionally, the exact causes of these recent accidents have yet to be determined, making it unclear who bears direct responsibility, including Hyundai Engineering. However, despite these factors, as the leader of a major construction firm where repeated fatal accidents have occurred, Joo will find it difficult to avoid fundamental responsibility. The Serious Accidents Punishment Act, which took effect on January 27, 2022, places significant accountability on prime contractors and executives, emphasizing the ultimate goal of preventing serious accidents. Following the expressway accident, Joo stated that Hyundai Engineering would not evade responsibility. The company also conducted nationwide safety inspections. However, just ten days later, another accident occurred. Joo has emphasized, "Safety and quality are not negotiable—they are our highest and most fundamental values. They are the very reasons for our existence." Kim Jung-bae, head of Hyundai Engineering’s Safety and Quality Division, added, "The day after the February 25 accident, we halted work at all our sites and conducted internal safety inspections." Hyundai Engineering reported an operating loss of KRW 1.2401 trillion (US$ 894.4 million) in Q4 2023 due to substantial losses from overseas projects. Initially, industry attention was focused on how much Hyundai Engineering, with its annual revenue of KRW 14 trillion (US$ 10.1 billion), could recover its profitability this year. Even after the expressway accident, financial analysts estimated that the incident could negatively impact Hyundai Engineering’s earnings by at least KRW 100 billion (US$ 72.1 million) and up to KRW 200 billion (US$ 144.3 million). However, with consecutive fatal accidents, the company’s core issue is shifting from financial recovery to safety management. Joo now faces the urgent challenge of reviewing and strengthening Hyundai Engineering’s safety management system. Hyundai Engineering stated that since establishing its safety and health management system in 2022, it has implemented safety measures that exceed the 13 mandatory safety compliance items required by law. In 2023, the company reinforced industrial safety committee operations, improved contractor safety management, and established a new external communication policy for safety and health in addition to internal safety regulations. Following the latest apartment construction site accident, a Hyundai Engineering representative stated, "First, we express our deepest condolences to the deceased worker and their family, as well as to those who were injured. The cause of the accident is currently under investigation, and we will do our utmost to handle the situation and implement countermeasures." #JooWoojeong #HyundaiEngineering #construction #safety #workplaceaccident #SeriousAccidentsPunishmentAct #SeoulSejongExpressway #Pyeongtaek #business #corporategovernance
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- Chung Yong-jin Shifts Course as Emart Turns Profitable, Backed by Lim Young-rok and Han Chae-yang
- Pierrot Shopping, Jeju Soju Pureun Bam, Boots, L’Escape Hotel, Smoothie King Korea. And Gmarket. These are the new businesses that Chung Yong-jin, Chairman of Shinsegae Group, once ambitiously pursued. Chairman Chung has experimented with breaking the boundaries of the retail industry by launching various new ventures. However, the results did not meet expectations. Pierrot Shopping shut down after just two years, Boots lasted only three years, and Jeju Soju failed to establish a foothold in the market. Smoothie King Korea also decided to exit the business. Even Gmarket and L’Escape Hotel, which are still in operation, are facing challenges. In particular, Gmarket has been recording massive losses every year. Despite these setbacks, Chung Yong-jin has shown little concern about the struggles of his new business ventures. Quoting Victoria Holt, he has stated, “If it was good, it was wonderful. If it was bad, it was an experience,” emphasizing his commitment to innovation and seeking new opportunities instead of settling for the status quo. However, industry evaluations have been harsh. As Chung’s business failures have piled up, skepticism has grown around any new ventures he pursues. ◆ Chung Yong-jin’s Transformation: Turning Emart Profitable Since the end of 2023, the atmosphere surrounding Shinsegae Group and Chairman Chung Yong-jin has changed. Chung has stopped his frequent social media activity and no longer speaks about new business ventures. Instead, he has focused on strengthening the fundamentals of existing businesses. This shift has yielded results. Emart posted an operating profit of KRW 47.1 billion (US$ 34.0 million) in 2024, reversing the KRW 46.9 billion (US$ 33.8 million) operating loss from 2023. Excluding the retirement benefit provisions that were reflected due to an expanded application of base salary at the end of last year, Emart’s actual operating profit reached KRW 260.3 billion (US$ 187.7 million)—the highest in three years. Of course, this achievement was not made by Chung Yong-jin alone. Behind his transformation were two key figures: Lim Young-rok, President of Shinsegae Group’s Corporate Strategy Office, and Han Chae-yang, CEO of Emart. For a long time, Chung held an unrivaled position within the group. While he continuously pursued new ventures, many of which failed to deliver solid results, internal and external criticisms of his decision-making mounted. However, the situation has changed recently. The growing influence of Lim Young-rok and Han Chae-yang, both personally appointed by Shinsegae Group’s General Chairwoman Lee Myung-hee, has been a major factor. ◆ The Two Key Figures Behind Chung Yong-jin’s Transformation: Lim Young-rok and Han Chae-yang President Lim Young-rok leads Shinsegae Group’s Corporate Strategy Office, often referred to as the group's Future Strategy Office. He was appointed directly by General Chairwoman Lee Myung-hee. Lim is recognized as the group's top expert in real estate and development. When he was first appointed, a retail industry insider remarked, “With Lim taking charge, the group's focus will shift from online expansion back to strengthening offline operations.” Emart is now pursuing a new offline strategy by developing premium multi-purpose shopping malls. The goal is to reinforce the competitiveness of large-scale supermarkets while increasing stay-type shopping spaces to attract visitors and maximize spending. A prime example of this strategy is Starfield, and Lim also serves as CEO of Shinsegae Property, which operates Starfield. Han Chae-yang is another key player in Shinsegae Group’s transformation. He was personally appointed by General Chairwoman Lee Myung-hee to replace Kang Hee-seok, the former Emart CEO who was known as “Chung Yong-jin’s man.” On November 9, 2023, during Emart’s 30th-anniversary ceremony, Han declared, “We will focus all of our physical and human resources on strengthening Emart’s core competitiveness.” He also announced plans to resume opening new stores, signaling a strong commitment to expanding the company’s offline business. Emart’s recent moves and the roles of these two executives provide insight into the direction of Chung Yong-jin’s transformation. While he previously focused on expanding online operations and launching new businesses, he is now shifting toward strengthening offline operations and improving the profitability of existing businesses. That does not mean Chung is abandoning online business altogether. Recently, he has collaborated with Alibaba to embark on an “e-commerce rebuilding” initiative. Instead of continuing aggressive investments, he has opted to leverage the distribution network and infrastructure of a global e-commerce leader. Emart’s return to profitability is not just a sign of improved cost structures—it also reflects Chung Yong-jin’s shift in strategy. To avoid repeating past failures, he has pivoted toward a more realistic and sustainable growth strategy. It remains to be seen how long this transformation will last and whether it will ultimately make Emart a more dominant force in the retail industry. #ChungYongjin #Shinsegae #Emart #retail #businessstrategy #Starfield #corporategovernance #investment #ecommerce #leadership
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- Park Gee-won Confident in KRW 10 Trillion Orders — From Nuclear to Gas Turbines
- Park Gee-won, Chairman and CEO of Doosan Enerbility, has demonstrated strong confidence in the company’s growth by purchasing company shares. Boosted by expectations for the nuclear power sector and positive momentum in the gas power market, the company appears well-positioned to achieve its ambitious order target for this year, which is 50% higher than last year's results. On March 10, according to the electronic disclosure system, Park and 47 other executives, including Vice Chairman and CEO Jung Yeon-in and President and CEO Park Sang-hyun, disclosed through the "Report on the Status of Ownership of Specified Securities by Executives and Major Shareholders" that they had purchased company shares. Doosan Enerbility’s key executives used the entire KRW 4 billion (USD 2.88 million) in long-term incentives they received this year to purchase company shares. The calculation of this year's long-term incentives reflected the stock price increase from 2022 to 2024. On March 5, Park purchased 32,160 shares of Doosan Enerbility’s common stock at KRW 26,581 (USD 19.16) per share. As a result, his holdings in Doosan Enerbility increased from 285,125 shares to 317,285 shares. A Doosan Enerbility representative stated, "The purchase of company shares by the management and executives reflects not only their responsibility for future growth but also their confidence." Park and Doosan Enerbility's management are reportedly confident about securing new orders. The securities industry believes that Doosan Enerbility is well-positioned to meet its aggressive order target of KRW 10.7 trillion (USD 7.71 billion) for this year. Doosan Enerbility secured KRW 7.1 trillion (USD 5.12 billion) in new orders last year, exceeding the initial target by 13%. Nevertheless, Park set this year's order target 50% higher than last year's performance. Park’s aggressive order target is believed to reflect expectations surrounding the "Team Korea" consortium's bid for the Czech Dukovany nuclear power plant contract. Heo Min-ho, a researcher at Daishin Securities, commented on Doosan Enerbility’s order target, saying, "The order target reflects the possibility of Westinghouse securing part of the main equipment order for the Czech nuclear power plant and the conservative estimation of construction contract values. The guidance seems somewhat conservative." Heo also stated, "Doosan Enerbility’s order performance this year is expected to reach KRW 11.1 trillion (USD 8.01 billion), with nuclear power orders estimated at around KRW 5.7 trillion to KRW 5.8 trillion (USD 4.11 billion to USD 4.18 billion)." Team Korea, led by Korea Hydro & Nuclear Power and including private companies such as Doosan Enerbility, was selected as the preferred bidder for the Czech nuclear power plant contract, which is expected to be finalized in March. The resolution of the intellectual property dispute and the strengthening of cooperation with Westinghouse during the Czech nuclear power plant bidding process are also considered positive factors for Doosan Enerbility. If Westinghouse secures nuclear power plant contracts in Europe and other regions, Doosan Enerbility is expected to continue receiving orders for main equipment supply and other nuclear-related contracts. Park is expected to expand order channels not only in the nuclear sector but also in the gas turbine sector this year. With the rise of artificial intelligence (AI) driving an increase in data centers, global energy demand is surging. However, the expansion of renewable energy alone is seen as insufficient to meet the growing power demand. As a result, demand for gas turbines is rapidly increasing, and global leaders in the gas power industry, such as GE Vernova and Siemens Energy, are reportedly struggling to handle the surge in orders. This situation creates opportunities for Doosan Enerbility to expand its gas turbine order portfolio. Doosan Enerbility is also shifting its business model from simply supplying gas turbines to handling EPC (Engineering, Procurement, and Construction) for gas power plants. In February, Doosan Enerbility secured a KRW 640 billion (USD 461.4 million) gas power plant EPC project in Qatar through a consortium with China Power China, further strengthening its performance. Another Doosan Enerbility representative said, "There is a strong positive outlook for performance improvement not only in the nuclear sector but also in the gas power sector. We expect to achieve significant results in gas power orders this year." #ParkGeeWon #DoosanEnerbility #NuclearPower #GasTurbine #BusinessStrategy #TeamKorea #Westinghouse #CzechNuclearPlant #EnergySector #GlobalExpansion
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- Lotte Overhauls Outside Directors — Shin Dong-bin Replaces Officials with Industry Experts
- Lotte Group is changing. The company is breaking away from its tradition of appointing former professors or senior officials from power institutions (such as legal professionals and tax authorities) as outside directors and is now actively recruiting seasoned experts from various industries. Many in the business world believe that this shift reflects the will of Shin Dong-bin, Chairman of Lotte Group. It is seen as a strategic move to strengthen the expertise of the boards of directors at Lotte’s affiliates to help the group navigate the current crisis. On March 10, a review of shareholder meeting convening notices disclosed by major Lotte Group affiliates revealed a significant departure from past practices — specifically regarding the appointment of outside directors. Like most major conglomerates in Korea, Lotte Group has traditionally preferred appointing academics and senior officials as outside directors. Professors are valued for their ability to understand industry trends, and former government officials are seen as beneficial for external support during challenging times. However, the situation is very different this year. Lotte Shopping has selected three new outside directors, all with extensive experience in the retail industry. Hiroyuki Kanai, a Japanese national, is the CEO of Tokiwa, Japan’s leading OEM (Original Equipment Manufacturer) for color cosmetics. He also served as the head of the Japanese branch of Henkel, a German consumer goods company. Cho Hyun-geun, former CEO of Pulmuone Samdasoo, previously held positions such as Head of Asia for Philip Morris International, Head of Marketing & New Product Development for Diageo Japan, and CEO of Diageo Asia-Pacific Japan. He brings experience in the tobacco, alcohol, and food industries, which are closely linked to the retail sector. Jung Chang-kook, former CFO of Ecobit, is a financial expert. He served as a financial manager at P&G’s Asia headquarters and held CFO positions at Acushnet Korea (a golf company), ADT Caps, and Ecobit. Considering that the outgoing Lotte Shopping outside directors were primarily academics and consumer trend experts, the selection of industry insiders with hands-on experience in the retail sector is particularly noteworthy. Lotte Chilsung Beverage, whose profitability has been shaky, is also strengthening the expertise of its new outside directors. At the upcoming general shareholders' meeting, Lotte Chilsung Beverage plans to appoint two new outside directors, one of whom is Park Chan-joo, currently CEO of DKSH Performance Materials Korea. Park previously served as the head of the food business division and head of the Vietnam branch at CJ CheilJedang, a competitor. This marks a significant departure from last year when Lotte Chilsung Beverage appointed two professors as new outside directors. Recruiting a former executive from a rival company like CJ Group signals a willingness to embrace talent from other major firms to drive change. Lotte Chemical, which has been at the center of Lotte Group's liquidity crisis, is also reshaping its board of directors. Lotte Chemical plans to appoint Cho Hye-sung, former head of the Analysis Center at LG Energy Solution, and Seo Hwi-won, former head of the AM BU at Samyang Corporation, as new outside directors. Cho was the first woman in the petrochemical industry to be promoted to an executive position and built her career as an R&D specialist even before LG Energy Solution was spun off from LG Chem. Seo, meanwhile, is a chemical industry expert who previously served as the director of marketing strategy for specialty products at SABIC Korea and head of the additives business at BASF Korea. Given that Lotte Chemical has recorded operating losses in its basic materials division for three consecutive years, these appointments are seen as efforts to identify new growth drivers by strengthening expertise at the board level. Lotte Wellfood is also diversifying its board to enhance its business strategy in India. Lotte Wellfood is bringing in Kim Do-sik, a former external relations officer at Hyundai Motor India and current advisor at Hyundai Motor, as a new outside director. Lotte Wellfood has already identified India as its fastest-growing overseas market and appears to have chosen Kim to help refine its strategy there. Son Eun-kyung, former CMO at Samsung C&T and former head of the food marketing division at CJ CheilJedang, has also been nominated as a new outside director at Lotte Wellfood. Traditionally, Lotte Group’s outside directors at Lotte Shopping, Lotte Chilsung Beverage, Lotte Chemical, and Lotte Wellfood have included former prosecutors, lawyers, and judges, as well as senior officials from agencies such as the National Tax Service, the Board of Audit and Inspection, and the Fair Trade Commission, or professors. This year, however, there has been a notable shift toward appointing industry insiders with deep sector knowledge and global business acumen. Many believe this reflects Chairman Shin Dong-bin's call for a bold overhaul of Lotte Group’s affiliates. Shin has taken proactive measures to resolve the liquidity crisis that emerged at the end of last year, including using Lotte World Tower — the symbol of the group — as collateral for loans from financial institutions. However, many observers argue that the group has yet to achieve meaningful results in strengthening its core business competitiveness. Shin’s shift from his past growth-through-acquisition strategy to focusing on internal stability reflects the current state of the group. Shin has been divesting low-growth businesses, such as Lotte Rental and Korea Seven’s ATM division, and has shown a willingness to pull out of new ventures if they are unlikely to yield immediate results. The decision to liquidate Lotte Healthcare at the end of last year is a prime example. #ShinDongBin #LotteGroup #LotteShopping #LotteChilsung #LotteChemical #LotteWellfood #CorporateStrategy #BoardRestructuring #BusinessLeadership #CorporateGovernance
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- Chey Tae-won’s Choice of Choi Chang-won — How Far Has the Restructuring Come?
- Chey Tae-won, Chairman of SK Group, warned of a "sudden death" crisis for the group and made an unexpected decision by appointing his cousin, Choi Chang-won, Vice Chairman of SK Discovery, as the chairman of the SK SUPEX Council. Choi Chang-won was tasked with overseeing the overall rebalancing of SK Group. A year has passed since Choi Chang-won took charge as the chairman of the SK SUPEX Council. Choi has been working rapidly toward restructuring SK Group's affiliates. Is Choi Chang-won delivering results? Was Chey Tae-won’s choice the right one? ◆ Choi Chang-won’s rebalancing performance after one year – Will he be named a restructuring magician? Choi Chang-won has led SK Group’s rebalancing over the past year, focusing on four key tasks: reorganizing the group’s structure, improving its financial structure, restructuring its business portfolio, and enhancing management efficiency. First, Choi has focused on adjusting the number of SK Group affiliates to a "manageable range." At the end of 2023, SK Group had 219 affiliates, and Choi has been steadily pursuing a plan to reduce that number by more than 10%. As of the third quarter of 2024, SK’s subsidiaries decreased from 716 to 660, a reduction of 56 companies — a remarkable achievement. This change was achieved through the sale of non-core assets and the consolidation of businesses, successfully combining organizational slimming with increased efficiency. Choi also worked to strengthen financial soundness by reducing the debt-to-equity ratio. SK Group’s debt-to-equity ratio dropped from 145% at the end of 2023 to 128% in the third quarter of 2024, and net debt was reduced by more than KRW 8 trillion (USD 5.77 billion). Through asset sales and cost-cutting efforts, SK Group’s financial structure appears to have achieved a soft landing. Choi actively reshaped SK Group's business portfolio to enhance core competitiveness and secure future growth engines. He merged SK Innovation and SK E&S to create a large-scale energy company with assets worth KRW 100 trillion (USD 72.1 billion) and boldly streamlined non-core businesses such as SK Rent-a-Car. This restructuring is considered a strategic move to concentrate on the group's core competencies and increase future growth potential. ◆ Was Chey Tae-won’s choice of Choi Chang-won a stroke of genius? Many observers believe that Chey Tae-won’s decision to entrust Choi Chang-won with the critical task of rebalancing SK Group reflects Chey’s confidence in Choi Chang-won’s business insight. Choi Chang-won joined SK Group in 1994 and gained over 20 years of experience in various fields, including chemicals, bio, and energy. He was recognized for his business restructuring skills when he successfully transitioned SK Chemicals' business structure toward eco-friendly materials and bio sectors during his tenure as CEO. Since 2017, Choi has strengthened his position within SK Group by successfully leading restructuring and business reorganization at SK Discovery and its affiliates. Another reason Chey Tae-won trusts Choi Chang-won is his calm demeanor and strict self-discipline. Choi Chang-won rarely drinks alcohol, wakes up at 4 a.m. every day for meditation and a walk, and reports to work before 7 a.m. His diligence and leadership by example have created a sense of urgency within the organization. One example is that the arrival time of executives at work has advanced since Choi took charge. ◆ Choi Chang-won still faces a long road to overcoming SK’s crisis Choi Chang-won faces many challenges in overcoming SK Group's crisis. Under the holding company structure, SK Group has a complex web of interrelated affiliates. This structure increases interdependence between affiliates, which could slow down decision-making and undermine management efficiency. Choi is reportedly seeking to simplify the governance structure and reorganize business areas to enhance management efficiency. As business uncertainties increase, SK Group is redefining the role of its board of directors. The new "Board 2.0" system allows management to focus on decision-making, while the board strengthens its role in pre-setting strategic directions and post-monitoring. Choi Chang-won is expected to strengthen the independence and expertise of the board, ensuring a system of checks and balances on management and establishing a culture of accountable management. Furthermore, external challenges such as the chasm in the electric vehicle market and the inauguration of a second Trump administration are creating new challenges for SK Group. The slowdown in the electric vehicle market is directly affecting SK On and other battery businesses, while policy changes under a potential second Trump administration could increase uncertainty for SK Group’s core businesses, including semiconductors and batteries. Choi Chang-won is focused on closely analyzing changes in the external environment and developing proactive and flexible strategies to respond effectively to uncertainty. Choi Chang-won’s leadership is still under evaluation. #CheyTaeWon #ChoiChangWon #SKGroup #Rebalancing #CorporateRestructuring #BusinessStrategy #SKInnovation #SKEandS #BusinessLeadership #CorporateGovernance
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- Samsung XR ‘Infinite’ Targets Vision Pro, Roh Tae-moon Bets on Hardware & Open Ecosystem
- Roh Tae-moon, the President and Head of Samsung Electronics' Mobile eXperience (MX) Division, is exploring ways to surpass Apple’s Vision Pro with the extended reality (XR) device "Project Infinite." Roh aims to differentiate Infinite by enhancing its hardware performance beyond that of the Vision Pro and securing a wide range of XR-exclusive content through an open ecosystem. According to industry sources on March 7, Samsung Electronics, in collaboration with Google and Qualcomm, is expected to launch the XR device "Project Infinite" as early as the third quarter of this year. Samsung’s component suppliers plan to begin mass production of XR device parts in April, with an estimated annual shipment target of around 100,000 units. Following its showcase at "Galaxy Unpacked 2025" in January, Samsung Electronics also presented Project Infinite at "MWC 2025" in Barcelona, Spain, on March 3 (local time), drawing significant attention. On March 3, Roh Tae-moon stated, “Infinite’s key differentiators include weight and comfort, but the biggest advantage is its natural voice-based interaction. Previously, users needed controllers, touch, or gestures, but now, Infinite integrates all these methods while enabling much more precise and intuitive experiences through voice interaction.” This means that Google’s artificial intelligence (AI) assistant, Gemini, is integrated into Infinite, allowing for advanced voice control. Jason Howell, an American YouTuber who has tested both Apple’s Vision Pro and Samsung’s Project Infinite prototype, commented, “While the Vision Pro heavily relies on eye tracking, Infinite places more emphasis on voice control. It goes beyond simple voice commands, offering a multimodal understanding of the external world and conversational context through Gemini.” This suggests that Infinite may have an edge over the Vision Pro in terms of AI utilization. Infinite’s open ecosystem is also expected to be a significant advantage. Existing XR devices, including the Vision Pro, operate on different operating systems, making it difficult for third-party developers to create dedicated applications. Due to this, the Vision Pro has faced criticism for its limited number of available apps. However, Google's Android XR was designed to address these ecosystem barriers by offering a platform where various manufacturers can use the same operating system (OS). This open approach is expected to accelerate the growth of the still-developing XR ecosystem. As a latecomer to the XR market, Samsung is also putting extra effort into hardware development. Infinite is expected to feature a high-resolution OLEDoS (OLED on Silicon) display with a pixel density of approximately 3,800 PPI, manufactured by Sony. This surpasses the 3,391 PPI of Apple’s Vision Pro. A higher pixel density reduces the "screen door effect," where individual pixels become visible, thereby enhancing content immersion. Additionally, Infinite is reported to be lighter than Apple’s Vision Pro, which weighs 600 grams, making it more comfortable for extended wear with less strain on the neck and shoulders. However, XR devices are still expected to take time before achieving mainstream adoption. High prices and bulky designs have made these devices less accessible to the general public. Apple’s Vision Pro, launched in January 2023, was priced at $3,500 (approximately KRW 4.7 million), and Infinite is likely to be in a similar price range. U.S. tech media outlet PhoneArena analyzed, “Samsung seems determined to develop an XR headset that surpasses the Vision Pro. However, just like AI, most consumers are not yet captivated by the concept of XR, and the high price tag will push them further away.” #Samsung #RohTaemoon #ProjectInfinite #XR #VisionPro #AI #Gemini #Google #Qualcomm #OLEDOS #MWC2025
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- Kim Sang-hyun’s P&G Ties Stand Out in Lotte Shopping’s Board Shift to Industry Experts
- A significant number of newly appointed outside directors at Lotte Shopping are former executives from Procter & Gamble (P&G), a company where Kim Sang-hyun, the Vice Chairman and CEO of Lotte Shopping, spent 30 years. Lotte Shopping's outside board, which was previously dominated by academics and high-ranking government officials, is now shifting toward professionals with expertise in global retail. According to Lotte Shopping's shareholder meeting notice on March 7, the agenda for the annual general meeting on March 24 includes the appointment of two former P&G executives, Hiroyuki Kanai and Jung Chang-kook, as new outside directors. Hiroyuki Kanai, the CEO of Japanese cosmetics company Tokiwa, worked at P&G for over six years from 2005 to 2011. He was based in Seoul from 2007 until his departure from P&G, serving as a sales director. Jung Chang-kook, former Chief Financial Officer (CFO) of Ecobit, also worked at P&G for 13 years. From 1992 to 2004, he held roles including Asia Finance Manager at P&G. It is unusual for Lotte Shopping to appoint two P&G alumni as outside directors. Over the past 20 years, the company had never previously appointed a former P&G executive to its board. The retail industry is closely watching these appointments, particularly in relation to Kim Sang-hyun, who also has a P&G background and now leads Lotte Group’s Retail HQ and Lotte Shopping. Kim is a well-known P&G veteran in the retail industry. After working at J.P. Morgan for nine months in 1985, he joined P&G in 1986 and remained with the company for 30 years before becoming CEO of Homeplus in 2006. Kim’s P&G career spanned multiple countries, including the U.S., Korea, and Japan. He started as a brand manager in Cincinnati, Ohio, for nearly three years before moving to Seoul, where he worked as a marketing director for over eight years. In 1997, he was transferred to P&G Japan, where he spent about two years as marketing director for baby and adult diapers. He later served for nearly four years as Head of North American and Global Strategic Planning for P&G’s deodorant business. Kim became President of P&G Korea in 2003 and later served as Vice Chairman of P&G Singapore from 2008 to 2009. He also held roles as President of P&G ASEAN and Vice President of P&G U.S., solidifying his reputation as a highly regarded executive within the company. Given Kim’s deep ties to P&G, the selection of multiple former P&G executives as Lotte Shopping’s outside directors is unlikely to be a mere coincidence. However, a representative from Lotte Group’s Retail HQ stated, “The newly appointed outside directors have no direct connection to Vice Chairman Kim. The appointments align with Lotte Shopping’s efforts to accelerate its global strategy and strengthen its overseas business starting this year.” P&G is one of the most influential companies in the global consumer goods industry and is often regarded as a “training ground” for top retail executives. Lotte Group’s Retail HQ explained that the decision to appoint two former P&G executives was based on their expertise in the field. The newly appointed outside directors have different backgrounds compared to Lotte Shopping’s previous board members, who were primarily from academia and government. Their global experience and industry expertise stand out. Hiroyuki Kanai is currently the CEO of Tokiwa, the leading OEM (Original Equipment Manufacturer) in Japan’s color cosmetics market. He previously served as the head of Henkel Japan, a subsidiary of the German consumer goods company. Jung Chang-kook, after leaving P&G, held CFO positions at golf company Acushnet Korea, ADT Caps, and Ecobit. Another newly appointed outside director, Cho Hyun-geun, the former CEO of Pulmuone Samdasoo, also brings extensive retail industry experience. He previously held leadership positions at Philip Morris International Asia, Diageo Japan’s marketing and new product development division, and Diageo Asia-Pacific Japan as CEO. Cho’s career in tobacco, alcoholic beverages, and food retail sets him apart from Lotte Shopping’s previous outside directors. Lotte Shopping’s outside directors are selected through the Outside Director Nomination Committee, an internal board committee. The committee is chaired by Han Jae-yeon, Chairman of BnH Tax Accounting Corporation, with other members including Jeon Mi-young, a research fellow at Seoul National University’s Consumer Trend Analysis Center, and Cho Sang-cheol, an attorney at Samyang Law Firm. #LotteShopping #KimSanghyun #P&G #RetailIndustry #GlobalStrategy #CorporateGovernance #HiroyukiKanai #JungChangkook #BusinessLeadership #LotteGroup
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- Kumho E&C Reshapes Board, But Third-Generation Leadership Still on Hold as Park Se-chang Awaits Turnaround
- Kumho E&C is attempting to reshape its board of directors by appointing an architect born in the 1980s as an outside director. Unlike before, the company has also appointed an executive with a background in civil engineering rather than finance to the board. Meanwhile, Vice Chairman Park Se-chang, a third-generation member of the owner family, has postponed taking a direct leadership role in the boardroom. This suggests he is waiting until the company’s financial performance rebounds before stepping forward. According to a disclosure filed with the Financial Supervisory Service on March 6, Kumho E&C will hold its annual general meeting on March 25 to discuss the appointment of Steven Song, CEO of architecture firm SCA Korea, as an outside director. Steven Song, a Korean-American architect born in 1981, leads SCA Korea, a branch of the Los Angeles-based architecture firm SCAAA. SCA Korea has worked on projects such as the RYSE Hotel in Hongdae and the BLDG BLCKS shared office space in Gangnam. Additionally, Steven Song previously participated in designing IFC Mall in Yeouido while working at a different firm. Kumho E&C’s decision to appoint an architect as an outside director is unusual in the construction industry. Since construction firms are heavily influenced by government regulations, they typically appoint former government officials to strengthen lobbying efforts or legal professionals to prepare for potential legal risks. It is also common to recruit academics specializing in construction technology. Furthermore, appointing young outside directors is rare in the industry. Among the top 10 construction companies by construction capability ranking last year, only DL E&C had outside directors born in the 1980s. DL E&C’s two outside directors are professors with doctoral degrees in law and construction/environmental engineering. By reshaping its board structure, Kumho E&C has deviated from industry norms, a trend also seen in its internal director appointments. At the general meeting, Kumho E&C will discuss appointing Lee Kwan-sang, head of the Management Division, as an internal director. The company will maintain a two-member internal director system, consisting of the head of the Management Division and the president, alongside the outside directors. However, Lee Kwan-sang’s background differs significantly from his predecessors. Before becoming head of the Management Division in late 2023, he built his career in civil engineering, serving as head of the Civil Plant Division and general manager of civil engineering projects. This contrasts with his predecessors, such as former Executive Vice President Seo Won-sang and President Cho Won-seok, who had financial backgrounds. Kumho E&C has clearly changed its approach to board composition. Nevertheless, the owner family has once again refrained from joining the board this year. Within the family, Park Se-chang, the eldest son of former Kumho Asiana Group Chairman Park Sam-koo, has been involved in Kumho E&C’s management. After working at Asiana Airlines and Kumho Tire, Park joined Kumho E&C in 2021 and was promoted to vice chairman in November 2023. Although Park sits at the top of Kumho E&C’s organizational chart, he has yet to take a seat on the board, where key management decisions are made. With CEO Cho Won-seok leading the company, Park is reportedly focusing on overseeing the Management Division, handling financial risk management, and improving the company’s structure. With the owner family staying behind the scenes, Kumho E&C appears to be focusing on boardroom changes while prioritizing financial recovery and business performance this year. For Park Se-chang, stepping into an internal director or CEO role after a financial turnaround would allow him to take full leadership while capitalizing on the momentum. Kumho E&C’s current situation is significantly better than last year. As of September 2023, the company’s debt-to-equity ratio had soared to 640% due to a "big bath" accounting strategy that reflected large-scale losses—an increase of 380 percentage points compared to the same period in 2023. However, since then, the launch of the new residential brand "ARTERA" has been well received in the market, and a focus on financial management has reduced the debt-to-equity ratio to around 600% in just one quarter as of the end of 2023. With multiple ARTERA developments scheduled for launch in various regions this year, their market success will be critical for Kumho E&C’s financial improvement. Market analysts have a positive outlook for Kumho E&C’s performance this year. Kim Se-ryeon, an analyst at LS Securities, stated, “For Kumho E&C, 2025 will be a year of laying the groundwork for a promising future, even if growth remains modest. We expect profitability to improve as high-margin projects contribute more, with significant margin expansion beginning in 2026 and beyond.” #KumhoEC #construction #StevenSong #ParkSechang #boardofdirectors #ARTERA #realestate #M&A #financialrecovery #businessstrategy
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- Hanwha Ocean Targets KRW 10 Trillion Polish Submarine Deal, Kim Dong-kwan’s Turnaround?
- Kim Dong-kwan, vice chairman of Hanwha Group, is aiming for a dramatic turnaround in the competition to secure Poland’s Orka submarine project, valued at KRW 10 trillion (US$7.2 billion). With this being Hanwha Ocean’s first attempt at securing an overseas defense contract following last month’s agreement to form an "HD Hyundai Heavy Industries-Hanwha Ocean Defense One Team," industry attention is focused on whether Hanwha Ocean can secure the final bid. According to defense industry sources and Polish media reports on April 6, Hanwha Ocean is the only South Korean company to have submitted a bid for the Orka project. Polish media outlet TVP World recently reported that Poland’s Armaments Agency plans to shortlist three companies from the bidders and select a preferred negotiation partner in the first half of 2025, with the final contractor to be chosen in September 2025. The Orka project involves acquiring up to four 3,000-ton conventional submarines. The estimated project cost is EUR 2.3 billion (KRW 3.6 trillion, US$2.6 billion), and if Hanwha Ocean also secures the maintenance, repair, and overhaul (MRO) contract, total revenue could reach KRW 10 trillion (US$7.2 billion). However, the Polish Armaments Agency previously stated that Germany’s ThyssenKrupp Marine Systems, Sweden’s Saab, and Italy’s Fincantieri submitted the most competitive bids in terms of pricing. Price competitiveness alone will not determine the final bid, as technology is also a critical evaluation factor. Therefore, industry experts believe it is too early to predict the final outcome. The Casimir Pulaski Foundation, a Polish think tank, highlighted the capabilities of South Korea’s KSS-III submarine in a special report on the Orka project published on March 20. Rafal Lipka, a researcher at the Casimir Pulaski Foundation, stated, "South Korea’s KSS-III, a proven submarine design, is equipped with an advanced air-independent propulsion (AIP) system, providing a reliable and modern platform." He also noted, "Compared to other bidders that have incorporated UGM-109 Tomahawk missiles, which require separate government-to-government agreements with the United States, Hanwha Ocean's design is relatively less complex in terms of integrating long-range cruise missiles." Hanwha Ocean has been actively pursuing the Polish submarine contract based on the technology of its KSS-III submarine, known as Jangbogo-III. The Jangbogo-III is equipped with a torpedo launch system for medium torpedoes and anti-ship/cruise missiles, a vertical launch system (VLS) for submarine-launched ballistic missiles (SLBMs), a lithium-ion energy storage system (ESS) for submarines, and a hydrogen fuel cell-based air-independent propulsion (AIP) system. Researcher Lipka emphasized that the top priority for decision-makers in the Orka project should be "the ability of the manufacturer to deliver new submarines on time." The defense industry is paying close attention to whether Vice Chairman Kim Dong-kwan can replicate Hanwha Aerospace’s success in Australia’s "Redback Miracle." Hanwha Aerospace defeated leading global defense companies from the United States, the United Kingdom, and Germany to secure a KRW 3.1649 trillion (US$2.3 billion) contract to supply 129 Redback armored vehicles to Australia in December 2023. Industry experts attributed the success to superior performance, customized designs for the Australian military, and a strategy focused on local production. The securities industry sees global defense contracts as a new driver of Hanwha Ocean’s financial recovery. Wi Kyung-jae, an analyst at Hana Securities, stated, "Hanwha Ocean is pushing hard to accelerate the growth of its special ship division. Investors should closely monitor its expansion into defense MRO, submarine, and naval vessel construction businesses. The company is currently in discussions with multiple countries regarding submarine contracts, which increases the likelihood of revenue growth in this sector." Last month, Hanwha Ocean and HD Hyundai Heavy Industries signed a memorandum of understanding (MOU) to form a "Global Defense Procurement One Team." Under the agreement, HD Hyundai Heavy Industries will handle surface warships, while Hanwha Ocean will lead the submarine business. The two companies will also support each other in respective project bids. This partnership comes after both companies failed to secure a contract for Australia’s frigate project in November 2023. Industry insiders believe their previous failure was due to competing bids and negative campaigning against each other. #HanwhaGroup #HanwhaOcean #KimDongKwan #OrkaProject #Poland #submarine #defenseindustry #KSSIII #militarycontracts #investment
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- Handsome Struggles with Costly In-House Brands, Kim Min-duk Strengthens Profitability with "Two-Track" Strategy
- As the fashion industry struggles with sluggish domestic demand, Handsome's once-prized in-house premium brands are now being viewed as a liability. Analysts point to relatively high production costs and retail commission fees as key factors exacerbating its financial downturn. In response, CEO Kim Min-duk is focusing on a "two-track strategy," recognizing that "simply making our own products has its limits." His plan involves strengthening the competitiveness of in-house brands while expanding the distribution of foreign brands to protect profitability. While refining its own brands, Handsome aims to bring in well-selling brands to stabilize earnings. A closer look at Handsome's financial structure on April 6 reveals that a significant portion of its revenue comes from in-house brands. Handsome is recognized as a leading company in the domestic fashion market for its premium brands. Its proprietary brands—Time, Mine, System, and SJSJ—have long secured a loyal customer base in department stores, establishing themselves as key players in the Korean fashion industry. This business model is clearly reflected in the numbers. In-house brands have consistently accounted for over 70% of Handsome’s total revenue, recording 72.87% in 2021, 76.42% in 2022, and 75.16% in 2023. As of the third quarter of 2024, they still represent 71.4% of total sales. However, this structure is now seen as a drag on profitability. Sales from in-house brands are declining, while production costs continue to rise. Handsome’s high dependence on in-house brands results in a cost-intensive model due to direct manufacturing expenses. The cost of sales includes raw materials, production costs, and distribution expenses. Given its heavy reliance on in-house brands, Handsome faces higher raw material and manufacturing costs compared to competitors. In fact, both Handsome’s cost of sales and cost ratio have been rising each year. The cost of sales increased from KRW 597.2 billion (US$430.7 million) in 2022 to KRW 621 billion (US$448.1 million) in 2023, and KRW 434.8 billion (US$313.5 million) in the first three quarters of 2024. During the same period, the cost ratio rose from 38.7% to 40.6% and then to 41.4%. A Handsome representative explained, "Rising raw material prices due to high exchange rates and increasing labor costs have added to the financial burden. Additionally, prolonged economic downturns have led to greater demand for discounted products, further increasing our cost ratio." Handsome’s department store and outlet-centered distribution model is also weighing on profitability. As of the second half of 2024, department store commission rates peak at 32%, while outlet fees reach 20%. Premium brands are particularly dependent on department stores, as affluent customers prefer to try on products before purchasing. As a result, Handsome finds it difficult to abandon physical stores despite the high fees. One positive sign is the company's steady growth in online sales. Online channels have lower marketing and commission costs compared to offline stores, making them more cost-efficient. Handsome’s online sales ratio increased from 20.3% in 2023 to 21.4% in 2024. However, industry experts note clear limitations to Handsome’s online expansion. The company rarely offers discounts beyond large-scale events like "family sales." Since there is no price difference between online and offline purchases, customers have little incentive to buy online, where they cannot try on the products. Kim Min-duk is looking to escape this slump through a "two-track strategy," simultaneously enhancing in-house brand competitiveness while bringing in foreign brands to support earnings. This reflects a practical realization that the company cannot afford to wait indefinitely for in-house brands to regain momentum. Handsome has been struggling since 2023. That year, the company posted consolidated revenue of KRW 1.5289 trillion (US$1.1 billion) and an operating profit of KRW 100.5 billion (US$72.5 million), representing a 0.9% drop in revenue and a 40.3% decline in operating profit compared to 2022. The situation did not improve significantly last year. Handsome's 2024 consolidated financials show revenue of KRW 1.4853 trillion (US$1.07 billion) and operating profit of KRW 63.5 billion (US$45.8 million), marking further declines of 2.8% and 36.8%, respectively. In response, Handsome has accelerated its portfolio expansion by securing distribution rights for foreign brands such as Ridan, Fear of God, and Moose Knuckles. The company has now raised the proportion of foreign brands in its portfolio to around 50%. Major fashion conglomerates are using their in-house select shops as "test beds," introducing various foreign brands and signing formal contracts with those that prove competitive. Handsome is following this model by leveraging its own select shops, including Moi, Tom Greyhound, and Forum, to expand its foreign brand portfolio. Park Jong-ryeol, an analyst at Heungkuk Securities, stated, "Handsome continues to struggle due to weak consumer demand, but it is making progress in finding growth drivers. Efforts to enhance global competitiveness for in-house brands, expand foreign fashion portfolios, and venture into beauty and lifestyle businesses are positive signs for future earnings improvement." Kim Min-duk was successfully reappointed through the company’s regular shareholders’ meetings in 2021 and 2023. His current term ends in March 2024, and while he was not included in the 2025 executive reshuffle announced in October 2023, he is expected to receive another term. Given the company’s underperformance over the past two years, he is likely facing significant pressure to deliver results this year. A Handsome representative commented, "Although no specific plans have been confirmed yet, we consistently introduce new foreign brands every year. This year, we will continue our two-track strategy of strengthening in-house brands while expanding our foreign fashion portfolio to improve financial performance." #Handsome #KimMinDuk #fashionindustry #luxurybrands #onlinesales #businessstrategy #retail #Koreanfashion #investment #profitability
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- HDC Hyundai Development Nears Seoul One Sellout, Chung Kyung-ku Targets Top Profitability
- HDC Hyundai Development Company is on the verge of selling out Seoul One I-Park, a residential development in Wolgye-dong, Nowon-gu, Seoul, despite initial concerns over high selling prices. Chung Kyung-ku, who is set to become the CEO of HDC Hyundai Development Company, is drawing attention for his ability to achieve a double-digit operating profit margin and elevate the company’s profitability to the highest level in the construction industry by leveraging in-house projects, including Seoul One I-Park. According to Korea Real Estate Agency’s Cheongyak Home on April 6, HDC Hyundai Development Company will announce the results of its allocation for voluntary subscription applications for Seoul One I-Park on April 7. The contract signing will take place on April 10. On April 4, the company received 502 applications for the 99 units available in the voluntary supply, significantly exceeding the allocation. Excluding the voluntary supply units, 1,757 out of 1,856 general sales units have already been sold, bringing the contract rate to 94.7%. Given the high competition rate for the voluntary supply units, the project is now close to selling out. Considering the initial concerns over contract rates, the result is seen as exceeding expectations. Seoul One I-Park initially faced concerns due to its record-high selling price for the northeastern region, its location in an outer area rather than a prime district in Seoul, and a large proportion of mid-to-large unit sizes. The sale price of Seoul One I-Park ranges from KRW 1.262 billion to KRW 1.414 billion (US$910,100 to US$1.02 million) for an 84㎡ unit. This is significantly higher than the maximum price of KRW 1.211 billion (US$873,400) for an 84㎡ unit at Prugio Radius Park in Jangwi-dong, Seongbuk-gu, which was sold four months earlier, making it the highest selling price in Seoul’s northeastern region. Of the 1,856 units at Seoul One I-Park, 48% (892 units) are mid-to-large-sized, exceeding 100㎡. Despite these unfavorable conditions, HDC Hyundai Development Company had already reached its internal target contract rate of 95% for Seoul One I-Park by the end of March. For CEO Chung Kyung-ku, who is in his first year of tenure, the contract rate for Seoul One I-Park is a key factor influencing the company’s financial performance for the year. HDC Hyundai Development Company recognizes sales revenue for units sold before the first interim payment, which was due on March 31. Units sold after this date will be recognized as revenue upon completion in 2028. Since the company has achieved its initial contract rate target, the likelihood of meeting its financial goals for the year has increased. Seoul One I-Park, a core project for HDC Hyundai Development Company, is considered a key factor behind CEO Chung’s confidence in achieving strong financial results this year. The company has set a consolidated revenue target of KRW 4.3059 trillion (US$3.1 billion) for 2024, a 2.2% increase from last year’s estimated revenue of KRW 4.2114 trillion (US$3.04 billion). Among publicly listed construction companies that have announced their financial plans, HDC Hyundai Development Company is the only one forecasting revenue growth compared to last year’s estimated results, according to the Financial Supervisory Service’s electronic disclosure system. As most construction firms have adopted a conservative approach due to deteriorating market conditions, many have reduced new project starts, leading to concerns about declining revenues. However, HDC Hyundai Development Company stands out by bucking this trend, largely due to Seoul One I-Park. Jang Yoon-seok, an analyst at Yuanta Securities, stated, “One of the main trends in the construction industry this year is revenue contraction. Among the construction companies we analyze, all except HDC Hyundai Development Company have projected lower revenue for 2024 compared to last year.” There is speculation that CEO Chung will use in-house projects, including Seoul One I-Park, as a foundation to not only drive revenue growth but also restore the company’s profitability to the peak levels seen between 2018 and 2020, when HDC Hyundai Development Company maintained an operating profit margin of over 10%. Beyond Seoul One I-Park, the company expects revenue contributions from various in-house projects, including Suwon I-Park City Blocks 11 and 12, which are nearing occupancy, as well as ongoing projects such as Cheongju Gagyeong I-Park Phase 6 and Seosan Central I-Park. HDC Hyundai Development Company has already seen positive financial impacts from Seoul One I-Park, which broke ground in November 2023, with both revenue and profitability improving in the fourth quarter of the same year. This trend provides insights into the potential financial benefits of expanding in-house projects. Lee Tae-hwan, an analyst at Daishin Securities, commented, “In the fourth quarter of last year, revenue from in-house projects, primarily Suwon I-Park City Block 10 and Seoul One I-Park, increased by 113% from the previous quarter, reaching KRW 186.3 billion (US$134.4 million). The cost ratio was also strong at 71%, demonstrating solid profitability.” HDC Hyundai Development Company appears to have moved past the financial impact of major accidents in 2021 and 2022. However, last year’s estimated operating profit margin was 4.3%, still below its peak levels. The company’s consolidated operating profit margins were 11.4% in 2018, 13.0% in 2019, and 16.0% in 2020. In 2020, the profitability of in-house projects significantly contributed to overall performance, with projects such as Daejeon I-Park City and Suwon Yeongtong I-Park Castle Block 3 achieving a gross profit margin of 21.3% in the first quarter and around 33% in the following quarters. At that time, even general housing construction projects had a gross profit margin of around 20%. However, due to rising construction costs, the gross profit margin of outsourced housing projects has now fallen to single digits, making in-house projects even more crucial. The securities industry predicts that during CEO Chung’s tenure, HDC Hyundai Development Company will achieve an industry-leading operating profit margin of nearly 10%. According to financial data provider FNGuide, HDC Hyundai Development Company’s projected financials for 2024 include a consolidated revenue of KRW 4.3761 trillion (US$3.15 billion) and an operating profit of KRW 330.7 billion (US$238.4 million). For 2025, revenue is expected to reach KRW 4.7866 trillion (US$3.45 billion), with an operating profit of KRW 450.5 billion (US$324.8 million). The operating profit margin is projected to reach 7.6% in 2024 while site preparation for Seoul One I-Park is underway. As construction progresses, it is expected to rise to 9.4% in 2025, making it the highest among major publicly listed construction companies. CEO Chung will officially be appointed at the 7th Annual General Meeting of HDC Hyundai Development Company and board meeting on March 26. His two-year term will last until March 2027. Recommending Chung as an internal director, the board of HDC Hyundai Development Company stated, “With his experience as CEO of HDC, head of the management division at HDC Hyundai Development Company, and expertise in finance, accounting, new business, and M&A, he is expected to enhance the company’s construction and development capabilities and lead its future growth.” #HDC #HyundaiDevelopmentCompany #SeoulOneIPark #realestate #construction #profitability #businessgrowth #housingmarket #investment #ChungKyungKu
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- LS ELECTRIC's Koo Ja-kyun: "Reviewing M&A for Distribution Transformer Companies, ESS Support Needed"
- Koo Ja-kyun, chairman of LS ELECTRIC, met with reporters at "InterBattery 2025" held at COEX in Gangnam, Seoul, on March 5 and stated regarding this year’s merger and acquisition (M&A) plans, "We are reviewing it from a strategic perspective." Chairman Koo said, "Following the ultra-high voltage transformer business, we are placing great interest in the distribution transformer sector." He added, "Our top priority is strengthening the business of KOC Electric, which we acquired last year, and we are continuously reviewing M&A opportunities with the goal of expanding production." In May 2023, LS ELECTRIC acquired a 51% stake in KOC Electric, a South Korean medium-sized transformer manufacturer, for KRW 59.2 billion (US$ 42.7 million). Chairman Koo stated, "After acquiring KOC, we also acquired Indonesia’s Simpos Transformer Company, achieving nearly threefold growth within a year," and added, "We plan to review additional M&As depending on how we expand our existing transformer production facilities." LS ELECTRIC has invested KRW 100.8 billion (US$ 72.7 million) to expand the capacity of its ultra-high voltage transformer production facilities in Busan. He said, "In the U.S. data center market, our competitiveness in delivery time, quality, and pricing is gaining recognition, and demand is increasing," adding, "We expect a major contract to come through within this year." In 2022, LS ELECTRIC acquired MCM Engineering II, a U.S. power distribution panel manufacturer, and began local production. Regarding the U.S. government’s tariff policies, he stated, "Since we had already acquired MCM and Bestrop plants, we are unaffected by tariffs," and added, "If tariffs are imposed, we will respond by splitting the additional costs equally as stipulated in the contracts." He further emphasized, "The U.S. requires product safety certifications such as UL, making local production essential," adding, "Our strategy remains unchanged: manufacturing in the U.S. and selling to U.S. customers." Regarding concerns over delays in the construction of South Korean battery manufacturers' facilities in the U.S., he commented, "Since the U.S. has strict certification procedures, South Korea is the only country capable of providing products that meet U.S. distribution standards," adding, "Some Chinese companies exist, but their performance is insufficient, which presents an opportunity for us." Regarding LS ELECTRIC's energy storage system (ESS) business, he stated, "China has fostered the ESS industry through large-scale national subsidies," and added, "Continuous support from our government is necessary." He concluded, "For the ESS industry to thrive, government policies must remain consistent for 10 to 20 years, regardless of changes in administration." #LSELECTRIC #KooJakyun #mergersandacquisitions #transformers #energystorage #USmarket #batterymanufacturing #cleanenergy #powerdistribution #businessstrategy
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- Hyundai E&C Expands Nuclear and Hydrogen Business, Lee Han-woo Shares Energy Transition Strategy
- Hyundai Engineering & Construction (E&C) is accelerating the expansion of its energy business, including the resumption of large-scale overseas nuclear power plant projects, the launch of small modular reactor (SMR) construction, and the full-scale development of its hydrogen business. CEO Lee Han-woo of Hyundai E&C is expected to focus on securing future growth engines by leveraging the company’s competitive edge in the nuclear power sector and the hydrogen sector, which Hyundai Motor Group is strongly supporting. According to Hyundai E&C on March 5, CEO Lee is expected to unveil a mid-to-long-term strategy for energy transition at the company's first-ever "CEO Investor Day," scheduled for March 28. Inside and outside the construction industry, attention is focused on the energy business blueprint that CEO Lee will present at Hyundai E&C’s first-ever Investor Day. Hyundai Motor Group's decision to appoint CEO Lee, the company’s first chief executive born in the 1970s, has raised expectations for "energy-focused strategic investments." Among Hyundai E&C’s energy projects, the nuclear power business is considered the most likely to yield the earliest results. Based on its competitive edge of having built 22 of the 34 Korean-designed large nuclear power plants domestically and internationally, Hyundai E&C is outlining a comprehensive business plan covering all areas of nuclear energy, including large nuclear power plants, SMRs, nuclear decommissioning, and spent fuel management. This year, CEO Lee is expected to oversee meaningful achievements in Hyundai E&C’s nuclear power business. By the end of the year, Hyundai E&C aims to secure the main contract for the Engineering, Procurement, and Construction (EPC) phase of Bulgaria’s Kozloduy Nuclear Power Plant Project, Phase 2. The Kozloduy Nuclear Power Plant expansion involves constructing two additional large reactors at the existing Kozloduy site, located 200 km north of Sofia, Bulgaria’s capital. In November 2023, Hyundai E&C signed a Phase 1 Engineering Services Contract (ESC) with Bulgaria’s Kozloduy Nuclear Power Plant (KNPP NB), marking its first overseas nuclear power project in 15 years since the UAE’s Barakah Nuclear Power Plant in 2009. Industry experts estimate the Kozloduy Nuclear Power Plant contract to be worth approximately KRW 8 trillion (US$ 5.77 billion). This single project could cover Hyundai E&C’s entire overseas order target for the year, which is KRW 7.5 trillion (US$ 5.41 billion). Hyundai E&C is also preparing to break ground this year on its first SMR project, a sector known for its safety, operational flexibility, and economic advantages compared to traditional large nuclear reactors. The company plans to complete the design for the “Palisades SMR-300 FOAK (First-of-A-Kind)” project in partnership with Holtec in the U.S. by the second quarter and begin construction by the end of the year. The Palisades SMR-300 FOAK project involves building two 300MW SMRs at the Palisades Nuclear Plant in Covert, Michigan, approximately 120 km northeast of Chicago. On February 25, 2024 (local time), CEO Lee participated in the “Mission 2030” event in Michigan to discuss the project’s progress and reaffirm Hyundai E&C’s commitment to achieving commercial operation by 2030, marking his first official overseas engagement as CEO. At the event, CEO Lee stated, “Hyundai E&C established a local subsidiary in the U.S. in 2022 and has been investing in U.S. power projects and SMR-300 technology. We will create a systematic supply chain and collaborative framework with local communities to pioneer a new era for the global SMR industry.” At Investor Day, CEO Lee is also expected to present a mid-to-long-term roadmap for the company’s hydrogen business and engage with the market. Hyundai E&C has demonstrated its commitment to hydrogen expansion by adding "hydrogen energy business" as a new corporate objective in its upcoming regular shareholders' meeting on March 20. The hydrogen business is not only a key future growth engine in Hyundai E&C’s energy transition strategy but also a core sector that Hyundai Motor Group is positioning as a leading initiative. At CES 2024, the world’s largest electronics and IT exhibition, Hyundai Motor Group announced that it would expand its existing fuel cell brand, “HTWO,” into a comprehensive hydrogen value chain business. The group aims to integrate its subsidiaries’ capabilities to establish leadership in hydrogen production, storage, transportation, and utilization. CEO Lee is expected to align Hyundai E&C with Hyundai Motor Group’s HTWO initiative by focusing on securing capabilities in hydrogen production. Hyundai E&C has already built expertise in hydrogen plant construction through projects such as the total engineering of the water electrolysis-based hydrogen production facility in Buan, Jeollabuk-do; the FEED (Front-End Engineering Design) of the clean hydrogen project in Boryeong; and the conceptual design of a 12.5MW green hydrogen demonstration plant in Jeju. Notably, the Buan hydrogen production facility, which broke ground in May 2023, is Korea’s first commercial-scale clean hydrogen plant and the largest electrolysis-based hydrogen production facility in the country. Electrolysis-based hydrogen production plants use electricity to split water into hydrogen, which can be stored and supplied. The Buan plant is expected to produce over one ton of hydrogen per day with a 2.5MW electrolyzer starting in 2026, supplying hydrogen research facilities and refueling stations in Buan County. Hyundai E&C will operate the facility for five years after completion. Hyundai E&C is also accelerating resource-circulating hydrogen production using biogas from organic waste, offshore wind-powered green hydrogen production, and pink hydrogen production, leveraging its accumulated expertise in nuclear energy. Hyundai Motor Group has announced an unprecedented domestic investment of KRW 25.3 trillion (US$ 18.25 billion) this year, allocating KRW 8 trillion (US$ 5.77 billion) to non-automotive sectors such as parts, steel, and construction for new business development. The group has stated that Hyundai E&C, as part of its construction division, will actively pursue energy transition-related projects such as SMRs, electrolysis-based hydrogen production, renewable energy, and EV infrastructure. Following a “big bath” accounting strategy that resulted in an operating loss of over KRW 200 billion (US$ 144.3 million) on a separate basis and KRW 1.4 trillion (US$ 1.01 billion) on a consolidated basis last year, Hyundai E&C is focusing on a fundamental business restructuring in 2024. Given the long-term nature of energy transition projects, the direction of Hyundai E&C’s nuclear and hydrogen businesses under CEO Lee’s leadership will be crucial. Hyundai E&C has set a record-high operating profit target of KRW 1.1828 trillion (US$ 853.1 million) for 2024, signaling its commitment to business transformation. This target reflects CEO Lee’s confidence in achieving both a financial turnaround and energy business expansion. A Hyundai E&C representative stated, “We will expand our clean energy business, including large nuclear power plants and SMRs, while prioritizing profitability improvements to secure sustainable future growth engines.” #HyundaiE&C #nuclearenergy #SMR #hydrogenbusiness #energytransition #LeeHanwoo #HyundaiMotorGroup #cleanenergy #investment #businessstrategy
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- SK Telecom Eyes Third Attempt at Internet-Only Banking, Ryu Young-sang Seeks AI-Driven Financial Innovation
- Ryu Young-sang, CEO of SK Telecom, is reportedly weighing the possibility of re-entering the internet-only banking sector after seven years. Ryu has been focusing on artificial intelligence (AI) as a future growth driver and is working to monetize it. Observers speculate that SK Telecom may reattempt launching an internet-only bank, as integrating AI technology with financial services could serve as a platform to expand AI-driven revenue. According to sources in the telecommunications industry on March 4, SK Telecom is considering joining the "Ubank" consortium, which is preparing to establish Korea’s fourth internet-only bank. Currently, six consortiums are competing for the fourth internet-only bank license: Korea SOHO Bank, Ubank, Duzon Bank, Soso Bank, AMZ Bank, and Podo Bank. The Ubank consortium, which SK Telecom is considering joining, includes Hyundai Marine & Fire Insurance, Lendit, Trav Wallet, Samzzamzzam, Hyundai Department Store, and Naver Cloud. It has also been reported that IBK Industrial Bank of Korea is considering joining the Ubank consortium alongside SK Telecom. The Financial Services Commission (FSC) is set to accept preliminary license applications for the fourth internet-only bank on March 25-26, and SK Telecom is expected to finalize its participation in the consortium soon. A Ubank consortium representative told Business Post, “New participants are still joining the consortium,” adding, “We are in discussions with several IT and financial companies, but nothing has been finalized yet.” If Ryu decides to join the Ubank consortium, the consortium is expected to gain a significant advantage in the competition for the fourth internet-only bank license. This is because the FSC gives high evaluation scores to applicants that can drive innovation by integrating financial services with information and communication technology (ICT). In past attempts to enter the internet-only banking sector, SK Telecom had proposed offering innovative financial products and services using AI, blockchain, and other advanced technologies. Currently, SK Telecom is considered the leader among Korea’s three major telecom companies in AI and quantum cryptography technology, leading to expectations that it could receive a high score in the innovation category compared to competing consortiums. Entering the internet-only banking sector could also help SK Telecom expand its AI user base and strengthen its revenue model. The company could integrate its AI capabilities into financial services, such as offering personalized financial recommendations through generative AI. In February 2023, SK Telecom collaborated with Hyundai Marine & Fire Insurance to apply its AI assistant, "A.," to insurance services, aiming to develop new financial products. In August 2023, the company partnered with Shinhan Bank to launch a service that visualizes financial consultations using SK Telecom’s AI-based real-time translation technology. Additionally, SK Telecom’s quantum cryptography technology could enhance the security of financial services, which are highly vulnerable to hacking and phishing threats. SK Telecom had previously attempted to enter the internet-only banking sector in 2015 through a consortium with Interpark but was unsuccessful. In 2019, it made another attempt with Kiwoom Securities but failed again. An SK Telecom representative told Business Post, “No decision has been made yet regarding consortium participation.” #RyuYoungsang #SKTelecom #internetbank #AI #fintech #Ubank #quantumcryptography #financialservices #innovation #SouthKorea
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- SK Ecoplant Accelerates Restructuring, Jang Dong-hyun Aims for Semiconductors and IPO
- Jang Dong-hyun, vice chairman and CEO of SK Ecoplant, appears to be accelerating efforts to focus on semiconductor-related businesses through the successive sale of subsidiaries. For SK Ecoplant, restructuring its business portfolio could also improve financial stability, bringing it closer to its key objective—successfully going public through an initial public offering (IPO). According to investment banking (IB) industry sources on March 4, SK Ecoplant is reportedly considering selling its subsidiary, SK Oceanplant. SK Oceanplant was formerly known as Samkang M&T before SK Ecoplant acquired it in late 2021. The company, listed on the Korea Exchange, manufactures substructures for offshore wind turbines and specialized vessels. As of the closing price on February 28 (KRW 15,400 per share), its market capitalization stood at approximately KRW 912 billion (US$ 657.7 million). Market speculation regarding SK Ecoplant’s potential sale of SK Oceanplant has persisted since last year. Regarding the matter, an SK Ecoplant official stated, “Nothing has been decided.” However, with the construction industry facing a crisis—especially with the increasing bankruptcies of small and mid-sized construction firms—expectations for SK Ecoplant’s subsidiary sales have gained momentum this year. As of the end of September 2023, SK Ecoplant's debt-to-equity ratio stood at 251%, a level considered concerning. In general, a debt-to-equity ratio exceeding 200% is viewed as risky for construction companies. The outlook for SK Oceanplant’s market value has recently turned positive, which may have influenced SK Ecoplant’s decision on the timing of the sale. In 2023, SK Oceanplant posted consolidated revenue of KRW 661.9 billion (US$ 477.5 million) and an operating profit of KRW 41.4 billion (US$ 29.9 million), marking year-over-year declines of 28.5% in revenue and 45.1% in operating profit. However, the company is expected to secure contracts worth KRW 300 billion (US$ 216.5 million) in Europe this year. Additionally, the recent passage of the Special Act on Offshore Wind Power in the National Assembly positions SK Oceanplant as a major beneficiary of the legislation. Han Byung-hwa, a researcher at Eugene Investment & Securities, commented, “For the first time since 2008, this law could create a supplier-dominant market for Korea’s offshore structure manufacturers,” adding, “SK Oceanplant is one of the key players at the center of this development.” For Vice Chairman Jang, selling SK Oceanplant could also help realign SK Ecoplant’s focus toward semiconductor solutions, a key initiative at the SK Group level. Since declaring itself an eco-friendly company in 2020, SK Ecoplant has expanded into environmental businesses by acquiring waste management firms. However, as these ventures failed to meet performance expectations and added financial burdens, the company has recently begun divesting related subsidiaries. In February 2024, SK Ecoplant announced plans to sell two of its environmental subsidiaries, Renewus and Renewon, with the total transaction expected to be worth KRW 2 trillion (US$ 1.44 billion). For Jang, using funds from the sale of non-core subsidiaries to improve SK Ecoplant’s financial indicators is a key priority. Beyond securing liquidity amid a downturn in the construction industry, the move is also aimed at preparing for SK Ecoplant’s IPO, which remains its biggest challenge. Under investor agreements, SK Ecoplant must complete its IPO by July 2026. In practice, this means the company needs to strengthen its financial standing by the end of this year. Regarding SK Ecoplant’s management direction for 2024, Jang stated, “We will establish a sound financial structure and secure a stable business model that is resilient to external uncertainties by ensuring financial stability, minimizing volatility, and strengthening risk management, thereby laying the foundation for sustainable growth.” #JangDonghyun #SKEcoplant #SKOceanplant #businessrestructuring #semiconductor #IPO #windpower #renewableenergy #financialstability #SouthKorea
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- KEPCO Eyes Record Profits, Kim Dong-cheol Caught in Dividend vs. Debt Dilemma
- Korea Electric Power Corporation (KEPCO) is expected to set a new record for operating profit this year, driven by stabilizing energy prices and lower system marginal prices (SMP). However, Kim Dong-cheol, the president of KEPCO, faces the challenge of improving the company’s deteriorating financial health, as its debt has exceeded KRW 200 trillion (US$ 144.3 billion). He is likely to be caught in a dilemma between increasing dividend payouts due to rising profits and reducing the company’s massive debt. According to the securities industry on March 4, KEPCO's consolidated operating profit for this year is projected to reach KRW 15 trillion (US$ 10.8 billion), nearly 80% higher than last year’s preliminary estimate. After returning to profitability in 2023 with an operating profit of over KRW 8 trillion (US$ 5.8 billion) for the first time in four years, KEPCO is now expected to surpass its previous record of KRW 12.016 trillion (US$ 8.7 billion) set in 2016. The outlook for KEPCO’s improved performance is supported by the expectation that SMP, the price at which KEPCO purchases electricity from power generators, will remain low. In the fourth quarter of last year, SMP was KRW 117 per kWh in October, KRW 112 in November, and KRW 116 in December. This is a significant drop compared to 2022 when global energy prices surged and SMP approached KRW 300. As of early 2024, SMP has remained at KRW 115, continuing the trend of stabilization. Yoo Jae-sun, a researcher at Hana Securities, forecasted KEPCO’s consolidated operating profit for 2024 at KRW 14.9887 trillion (US$ 10.8 billion), stating, “With the exchange rate and oil prices in a stagnant phase, the decline in SMP is a positive factor for KEPCO.” Most major securities firms projected KEPCO’s 2024 operating profit to be around KRW 15 trillion (US$ 10.8 billion), with many expecting it to exceed the 2016 record of KRW 12.016 trillion (US$ 8.7 billion). Of course, electricity sales volume is expected to decline slightly due to economic slowdown, and the Korean won/U.S. dollar exchange rate, which remains well above KRW 1,400, continues to be a cost-increasing factor. However, the overall downward trend in energy prices is supporting optimistic earnings projections for KEPCO. According to Daishin Securities, every KRW 10 increase in the exchange rate adds KRW 290 billion (US$ 209 million) to KEPCO’s costs, while a US$ 1 drop in oil prices per barrel increases operating profit by KRW 313 billion (US$ 226 million), and a US$ 1 decrease in coal prices per ton raises operating profit by KRW 82 billion (US$ 59 million). Recently, the exchange rate surged by KRW 50 since late November 2023, while Brent crude oil prices fell by US$ 1 per barrel, and the price of thermal coal (Australian Newcastle) dropped by US$ 12 per ton. A simple calculation shows that the exchange rate increase raised KEPCO’s costs by KRW 1.45 trillion (US$ 1.05 billion), but the declines in oil and coal prices boosted operating profit by KRW 313 billion (US$ 226 million) and KRW 984 billion (US$ 710 million), respectively. Huh Min-ho, a researcher at Daishin Securities, stated, “The negative impact of the exchange rate increase is expected to be largely offset by falling oil and coal prices,” forecasting KEPCO’s consolidated operating profit for 2024 at KRW 15.108 trillion (US$ 10.9 billion). This strong performance outlook provides a major boost for Kim Dong-cheol as he implements the self-rescue measures announced in November 2023, which focus on workforce efficiency, salary freezes, and asset sales, as well as the "2025 Mid-to-Long-Term Strategy (New Vision)" roadmap unveiled on February 10. However, despite KEPCO’s strong earnings last year, its accumulated operating losses since 2021 have reached KRW 34.7 trillion (US$ 25.0 billion), and its debt has surpassed KRW 200 trillion (US$ 144.3 billion), making debt reduction an urgent challenge. As a result, dividend policy has become a pressing issue for Kim, adding to the burden. As of the end of the third quarter of last year, KEPCO's total consolidated debt stood at KRW 204.1249 trillion (US$ 147.2 billion), up from KRW 145.797 trillion (US$ 105.1 billion) at the end of 2021, KRW 192.8047 trillion (US$ 139.0 billion) at the end of 2022, and KRW 202.4502 trillion (US$ 146.0 billion) at the end of 2023. The company’s debt-to-equity ratio was recorded at 514% at the end of Q3 2023. Meanwhile, KEPCO’s interest expenses have more than doubled over the years. The company spent KRW 1.9145 trillion (US$ 1.38 billion) on interest payments in 2021, KRW 2.8185 trillion (US$ 2.03 billion) in 2022, and KRW 4.4517 trillion (US$ 3.21 billion) in 2023. Last year’s interest expenses are estimated to be at a similar level. During the New Vision announcement in October 2023, Kim set a target debt-to-equity ratio of 196% by 2035. Given that this requires reducing the ratio by more than 300 percentage points from current levels, it is considered a highly ambitious goal. In October 2023, during a parliamentary audit, Kim stated, “We will faithfully implement the stringent self-rescue measures promised to the public and accelerate a comprehensive management overhaul to overcome our financial crisis as quickly as possible.” However, KEPCO has also faced criticism for reinstating dividends in 2024 after posting its first operating profit in four years. Although the 2024 dividend is smaller in both total amount and payout ratio compared to the last distribution in 2020, the company’s decision to resume dividends immediately after turning profitable, despite its urgent need for debt reduction, has drawn criticism. On February 28, KEPCO’s board of directors approved a cash dividend of KRW 214 (US$ 0.15) per common share, with a total payout of KRW 137.4 billion (US$ 99.1 million). The dividend payout ratio based on separate net income was 16.4%. KEPCO’s previous dividend, distributed in 2020, was KRW 1,216 (US$ 0.88) per share, with a total payout of KRW 780.6 billion (US$ 562.9 million) and a payout ratio of 40%, aligning with the government’s policy for state-owned enterprises. Given the strong earnings outlook for 2024, there is speculation that KEPCO may further increase dividends next year. Although the company reportedly decided on the dividend resumption and amount through discussions with the government, more than half of KEPCO’s dividend payments effectively flow back to the government. KEPCO’s largest shareholder is the Korea Development Bank, which owns 32.9% (211,235,264 shares), while the South Korean government holds 18.2% (116,841,794 shares), giving them a combined 51.1% stake. While KEPCO justifies its dividend resumption as a move to enhance shareholder value, some critics argue that the government is using state-owned enterprise dividends to offset a tax revenue shortfall. According to the Ministry of Economy and Finance’s "2024 Annual National Tax Revenue Report," last year’s total tax revenue was KRW 336.5 trillion (US$ 242.6 billion), falling KRW 30.8 trillion (US$ 22.2 billion) short of the initial budget estimate. The securities industry sees KEPCO’s dividend reinstatement as a positive factor for its stock price, but there are concerns that it could also impact future electricity rate hikes. Lee Min-jae, a researcher at NH Investment & Securities, stated, “It is positive that KEPCO is distributing dividends from its separate net income,” but added, “However, to compensate for the reduced cash flow due to dividends, KEPCO may need to increase electricity rates more significantly in the long term.” In its earnings report, KEPCO stated, “We are thoroughly and swiftly implementing various measures to improve our financial health and strengthen self-rescue efforts through close labor-management cooperation,” adding, “We will continue working with the government on gradual electricity price normalization and cost reductions in power purchases.” #KEPCO #KimDongcheol #electricity #energyprices #SMP #profitability #debt #dividends #SouthKorea #powersector #financialrecovery
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- Samsung Securities Pushes Issuance Notes and Eyes IMA—Park Jong-moon's Mission to Scale Up
- Park Jong-moon, CEO and President of Samsung Securities, is focusing on "scaling up." Park, who took office in March last year, has a three-year official term. During the first half of his tenure, Samsung Securities surpassed KRW 1 trillion (US$ 721.2 million) in operating profit and achieved balanced growth across various business segments. Now, as he enters the latter half of his tenure, Park appears determined to pursue qualitative growth by scaling up. On February 28, sources inside and outside Samsung Securities indicate that Park is making a full-fledged effort to launch the much-delayed issuance note business. Issuance notes are short-term financial products that securities firms with more than KRW 4 trillion (US$ 2.89 billion) in equity capital can issue up to twice their capital after obtaining a mega investment bank (IB) license. These notes allow firms to raise large amounts of capital at low interest rates. A Samsung Securities official confirmed in a call with Business Post the previous day, "It is true that we have formed an internal committee to obtain approval for issuance notes," but added, "We are still in the internal review stage." Currently, the five securities firms that have obtained a mega IB license are KB Securities, Mirae Asset Securities, NH Investment & Securities, Samsung Securities, and Korea Investment & Securities. Among them, only Samsung Securities has not received approval for issuance notes. Samsung Securities made efforts to obtain approval in 2017 but was rejected by the Financial Services Commission. The rejection was due to the imprisonment of Lee Jae-yong, then Vice Chairman and now Chairman of Samsung Electronics, over the influence-peddling scandal involving the Park Geun-hye administration. Even after President Yoon Suk-yeol pardoned him in 2022, Lee continued to face legal proceedings over allegations of illegal succession of management control. As a result, Samsung Securities' approval for issuance notes was also delayed. However, with Lee being acquitted in his second trial on February 3, his scope of movement has expanded, which is expected to provide momentum for Samsung Securities to reapply for approval. Samsung Securities is also pursuing entry into the integrated investment account (IMA) business. An IMA is a product in which a securities firm invests clients' deposits into corporate finance and distributes returns. Unlike issuance notes, it has no funding limit, allowing securities firms to manage larger amounts of capital. However, it is only available to firms with more than KRW 8 trillion (US$ 5.77 billion) in equity capital, posing a high entry barrier. Although IMAs were introduced in 2016, no securities firm has obtained approval in the past nine years, leading to criticism that the system is practically ineffective. To address this issue, the Financial Services Commission announced in its "Key Business Promotion Plan" last month that it would permit IMAs for mega IBs with over KRW 8 trillion (US$ 5.77 billion) in equity capital within the first quarter of this year. In addition to regulatory changes, the growing divide in the securities industry is also pushing Samsung Securities to act swiftly. At the "Capital Market Outlook Seminar" last month, Lee Seok-hoon, head of the Financial Industry Division at the Korea Capital Market Institute, stated, "The securities industry is experiencing a decline in branch offices and employees due to the expansion of large-scale branches and digital channels," adding, "The gap in capital and profitability between large and mid-sized firms will widen further." A firm that obtains IMA approval can significantly increase its fund management scale, creating a substantial gap from other securities firms. For securities firms, acquiring this qualification quickly has become a matter of survival. Industry experts predict that either Mirae Asset Securities or Korea Investment & Securities will become the first firm to obtain IMA approval. Mirae Asset Securities and Korea Investment & Securities have equity capital of approximately KRW 9.9 trillion (US$ 7.14 billion) and KRW 9.3 trillion (US$ 6.71 billion), respectively, meeting the KRW 8 trillion (US$ 5.77 billion) requirement. Samsung Securities' equity capital currently stands at about KRW 6.9 trillion (US$ 4.97 billion), still short by approximately KRW 1 trillion (US$ 721.2 million). The longer Samsung Securities fails to capitalize on the advantages of being a mega IB through issuance notes, the greater the gap will become between it and the top two securities firms, making it imperative to scale up quickly. During its earnings announcement last year, Samsung Securities declared that achieving KRW 8 trillion (US$ 5.77 billion) in equity capital by 2027 is its top priority. The company also stated that it would not excessively increase shareholder return ratios until it reaches this goal. Seol Yong-jin, a researcher at SK Securities, commented, "As long as there are no delays in entering new businesses such as issuance notes, Samsung Securities should be able to reach KRW 8 trillion (US$ 5.77 billion) in equity capital by 2027." #SamsungSecurities #investmentbanking #financialservices #issuancenotes #equitycapital #megainvestmentbank #Koreastockmarket #financialregulations #capitalmarkets #businessgrowth
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- LG Electronics Faces Chinese Competition and Tariff Risks, Cho Joo-wan Intensifies Cost-Cutting Measures
- LG Electronics is expected to struggle with profit improvement this year, following last year’s difficulties, due to mounting competition from Chinese appliance manufacturers and the additional burden of U.S. tariffs. Cho Joo-wan, CEO of LG Electronics, is focusing on defending profitability by increasing production efficiency and reducing fixed costs, including labor expenses, in response to the deteriorating global business environment. According to industry sources on February 28, multiple factors are threatening LG Electronics' competitiveness in its core businesses of home appliances and televisions, forcing CEO Cho to seek countermeasures. LG Electronics, once a dominant player in the TV market, has now been overtaken by Chinese competitors. According to market research firm Counterpoint Research, LG Electronics held a 10% share of the global TV market in the fourth quarter of 2024, ranking fourth. Meanwhile, Chinese brands TCL and Hisense secured second and third place with 14% and 12% market shares, respectively. Even in the premium TV segment, including OLED and Mini LED models, LG Electronics has been surpassed by Chinese rivals. The company’s premium TV shipments declined from a 26% market share in the fourth quarter of 2023 to 19% in the fourth quarter of 2024. In contrast, TCL increased its market share to 20% during the same period, surpassing LG Electronics. The tariff policies of the U.S. Trump administration also pose a significant burden on LG Electronics. LG Electronics currently produces TVs in Reynosa, home appliances in Monterrey, and automotive components in Ramos, Mexico, for export to the United States. However, starting March 4, a 25% tariff that was temporarily deferred for one month will take effect on Mexican imports. CEO Cho is preparing various countermeasures, including shifting refrigerator production from Mexico to LG’s factory in Tennessee, USA. However, analysts believe that relocating production to the U.S. is not a realistic option. An industry insider commented, "Considering the costs, time, and labor expenses required to set up production facilities in the U.S., it would be difficult for LG to relocate its Mexican plants. Moving production to the U.S. would only be considered in a worst-case scenario." The deteriorating global business environment is making it increasingly difficult for LG Electronics to maintain profitability. Yang Seung-soo, a researcher at Meritz Securities, projected that LG Electronics will generate KRW 89.77 trillion (US$ 64.7 billion) in revenue and KRW 3.12 trillion (US$ 2.25 billion) in operating profit in 2025. While revenue is expected to increase by 2.3% compared to 2024, operating profit is forecasted to decline by 8.8%. Although LG Electronics has been achieving record-breaking annual revenue, its operating profit has been declining since peaking at KRW 4.05 trillion (US$ 2.92 billion) in 2021. Operating profit fell to KRW 3.55 trillion (US$ 2.56 billion) in 2022, KRW 3.55 trillion (US$ 2.56 billion) in 2023, and KRW 3.42 trillion (US$ 2.47 billion) in 2024. To counteract this decline, CEO Cho is expected to focus on enhancing productivity and cutting costs. During an employee communication event, "CEO Fun Talk," at the end of last year, Cho stated, "We must use innovative tools and technologies such as digital transformation (DX) and artificial intelligence (AI) to improve work processes and reduce costs. We need to secure structural competitiveness in products, costs, and operations while reducing product development time by approximately 30%." LG Electronics is already taking steps to streamline production. At the end of 2024, the company began closing its Mexicali TV plant in Mexico and consolidating production at its Reynosa facility. By relocating equipment from the Mexicali plant in western Mexico to the western Reynosa facility, LG Electronics aims to reduce logistics costs for U.S. exports and improve production efficiency. LG Electronics is also focusing on stabilizing labor costs, which have been steadily increasing in recent years. The company’s total payroll expenses rose from KRW 2.81 trillion (US$ 2.03 billion) in 2020 to KRW 3.34 trillion (US$ 2.41 billion) in 2021, KRW 3.70 trillion (US$ 2.67 billion) in 2022, and KRW 4.02 trillion (US$ 2.90 billion) in 2023. This represents an average annual increase of 12.7%. As of 2023, LG Electronics' labor costs accounted for 12.8% of its separate financial statement revenue, the second-highest among South Korea’s top 30 manufacturing companies, following SK Hynix. In the first half of 2024, LG Electronics' payroll expenses amounted to KRW 2.17 trillion (US$ 1.56 billion), marking a 13% increase compared to the same period in 2023. Given this trend, industry analysts predict that LG Electronics may implement workforce adjustments this year. The company has already conducted voluntary retirement programs in March 2022 and March 2023 as part of its labor optimization efforts. During last year’s employee communication event, CEO Cho reportedly emphasized the need to maintain wage competitiveness while managing headcount growth to curb rising labor costs. #LGElectronics #LaborCosts #WorkforceOptimization #VoluntaryRetirement #PayrollManagement #ManufacturingSector #CorporateStrategy #ChoJooWan #HRStrategy #TechIndustry
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- Shin Dong-bin Insists on "Fair Prices" Despite Urgency, Skepticism Grows Over Lotte Group’s Asset Sales
- Lotte Group's sale of non-core assets appears to be progressing slower than expected. Differences between Lotte Group's asking prices and buyers' expectations have stalled the sale of some assets, effectively halting negotiations. This seems to be in line with Chairman Shin Dong-bin’s stance of selling assets at their "proper value," but some industry observers speculate that it could be disrupting the group's business restructuring plans. According to the investment banking industry on February 28, skepticism is growing over Lotte Group's commitment to selling its non-core assets. Amid the liquidity crisis that intensified late last year, Lotte Group outlined a plan to sell underutilized or low-value real estate, as well as non-core subsidiaries and business units, to secure as much cash as possible. The sale of Korea Seven’s ATM business, Lotte Wellfood’s Jeungpyeong plant, and Lotte Chemical’s Pakistan subsidiary were all pursued under this strategy. In December 2023, Lotte Rental’s management rights were sold to a private equity fund for approximately KRW 1.6 trillion (US$ 1.15 billion). While these moves suggest that Lotte Group is pushing ahead with asset sales, some argue that stalled negotiations on certain deals raise questions about the company’s sincerity. Lotte Group has officially denied plans to sell certain business units, but sources indicate that behind the scenes, it has engaged with potential buyers. Lotte Chemical’s construction materials division and Lotte Wellfood’s bakery division are among the assets believed to have been considered for sale. Investment banking insiders say that Lotte Group’s asking prices were significantly higher than what buyers were willing to pay, making it difficult to advance negotiations. For example, Lotte Chemical reportedly engaged in talks with some buyers to sell its construction materials division but halted negotiations after determining that the offered prices were too low. A similar situation is believed to have occurred with Lotte Wellfood’s bakery business. The company ultimately sold only its Jeungpyeong plant to Silla Myungga, instead of selling the entire bakery division, which originally included factories in Suwon, Busan, and Jeungpyeong, with an expected sale price of over KRW 100 billion (US$ 72.1 million). Some in the investment banking sector suspect that Lotte Group's pricing expectations are too high compared to market demand, leading to doubts about its commitment to the asset sale process. A Lotte Group representative stated, "Buyers in the market are always looking for the lowest possible prices, while Lotte Group maintains its position that assets should only be sold at their fair value. It is difficult to say that the investment banking industry’s perspective is entirely accurate, as Lotte Group is proceeding with asset sales at its own pace." Lotte Group has positioned non-core asset sales as a key strategy for strengthening business competitiveness. During a corporate briefing for securities analysts on February 27, the group emphasized two main objectives: "securing liquidity through asset sales" and "investing in future growth opportunities." Lotte Corporation highlighted "Divestment" as a core restructuring focus, specifically mentioning plans to dispose of non-core businesses and underperforming or inefficient physical assets. The company outlined specific targets for sale, including non-core subsidiaries and business units in both domestic and international markets, investment properties, non-operational land, idle real estate, and small retail stores in regional areas. Significant progress has already been made. Sales of Lotte Rental, Lotte Chemical’s overseas subsidiaries, and Korea Seven’s ATM business have been completed, while divestments of Lotte Shopping’s underutilized department store and supermarket properties, as well as real estate assets held by Hotel Lotte and Lotte Wellfood, are ongoing. However, some market observers argue that the assets Lotte Group has put up for sale lack strong growth potential, making it difficult to attract high valuations. Since the group’s original strategy was to offload low-growth businesses, the number of potential buyers is limited, and even if buyers emerge, securing high prices will be challenging. Lotte Group’s asset sales are being led by the Business Innovation Office, a division under President Noh Joon-hyung, which oversees the group’s business restructuring and innovation initiatives. While selling off non-core assets, Lotte Group is also accelerating its long-term business transformation. In the food sector, the company aims to expand its global brand presence and develop new health and wellness product lines. The retail division plans to enhance its competitiveness in the grocery segment and strengthen its dominance in key commercial districts. Lotte Chemical, which has been at the center of the group’s liquidity concerns, is focusing on optimizing its basic materials business and expanding into high-value-added industries. Meanwhile, the hotel division is increasing its adoption of a franchise-style management model. #LotteGroup #BusinessRestructuring #CorporateStrategy #NonCoreAssets #LiquidityManagement #LotteFood #LotteRetail #LotteChemical #InvestmentBanking #CorporateInnovation
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- 10 Years of Anticipation: HLB’s Jin Yang-gon Stakes Fate on FDA Liver Cancer Drug Approval
- Jin Yang-gon, Chairman of HLB Group, is strengthening its direct sales system in the U.S. ahead of the FDA’s decision on the combination therapy of Rivoceranib and Camrelizumab, developed by China’s Jiangsu Hengrui Pharmaceuticals. If the U.S. Food and Drug Administration (FDA) grants approval, HLB aims to quickly commercialize the treatment to reduce its accumulated losses. According to Business Post's coverage on the 27th, HLB's U.S. subsidiary, Elevar Therapeutics, is currently hiring sales representatives to directly market Rivoceranib and Camrelizumab. Since HLB had already obtained pharmaceutical sales licenses in various U.S. states in preparation for direct sales starting in 2024, the company is positioned to begin sales promptly. An HLB representative told Business Post, "If the FDA grants approval, we expect to begin sales in the U.S. starting in the third quarter." HLB has submitted a New Drug Application (NDA) to the FDA for Rivoceranib and Camrelizumab as a first-line treatment for liver cancer and is awaiting the decision. Under the Prescription Drug User Fee Act (PDUFA), the FDA is required to decide on the approval by March 20. Last May, the FDA issued a Complete Response Letter (CRL) instead of granting approval for the liver cancer treatment. However, HLB has addressed the FDA’s concerns, and the company remains confident about this submission. HLB announced in a January press release that Jiangsu Hengrui Pharmaceuticals had submitted additional documents to the FDA regarding the manufacturing quality control of Camrelizumab. This confirms that all previously cited issues have been resolved. Additionally, on the same day, HLB revealed that the European Society for Medical Oncology (ESMO) had included the combination therapy of Rivoceranib and Camrelizumab as a first-line treatment in its “Hepatocellular Carcinoma Diagnosis and Treatment Guidelines.” ESMO is one of the world’s most prestigious oncology organizations. The fact that Rivoceranib and Camrelizumab—despite not yet being FDA-approved—were recommended as a first-line treatment is highly significant. With these encouraging developments, HLB is preparing to launch U.S. sales as soon as FDA approval is granted to secure strong performance. For Chairman Jin, commercializing the drug quickly is essential, given the decade-long investment in its development. HLB recorded an operating loss of KRW 118.8 billion (US$ 85.6 million) on a consolidated basis in 2024. While this represents a KRW 6.2 billion (US$ 4.5 million) improvement from 2023, the company is still facing a loss exceeding KRW 100 billion (US$ 72.1 million). Since reporting an operating profit of KRW 3.6 billion (US$ 2.6 million) in 2014, HLB has recorded losses for ten consecutive years. Before 2020, its deficits were in the hundreds of billions of won, but as it advanced global clinical trials, annual losses have surged to around KRW 100 billion (US$ 72.1 million), causing a significant financial burden. An HLB representative stated, "The recognition of our treatment by ESMO is an encouraging development, increasing our confidence in FDA approval. We are also preparing to apply for regulatory approval in Europe this year and anticipate a positive outcome." #HLB #JinYanggon #Rivoceranib #Camrelizumab #FDAapproval #oncology #livercancer #biopharmaceuticals #clinicaltrials #ESMO
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- FSS Chief Lee Bok-hyun Offers a 'Carrot' to Nervous Insurance CEOs, Eases RBC Regulations
- "The goal is to ease the burden by implementing some regulatory relaxations in line with the K-Insurance Capital Standard (K-ICS) framework so that insurers can improve the quality of their accumulated capital in terms of capital adequacy." "We will strictly enforce a zero-tolerance policy on excessive competition while ensuring that competition benefits consumers." Both statements were made by Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), on the 27th during a meeting with insurance company CEOs at the Life Insurance Education and Culture Center in Jung-gu, Seoul. Given that the FSS had intensified inspections and crackdowns following a series of press releases since January, including reports on Ponzi scheme allegations involving corporate insurance agents (GA) and aggressive "last-chance marketing" of executive term insurance, a tense atmosphere had been anticipated. However, contrary to expectations, the meeting proceeded without significant tension, with commemorative photos and opening remarks being exchanged. The "firm but not cold" tone of the event was reflected in Lee’s remarks. While hinting at partial regulatory easing for insurers, he maintained a strict stance on unethical business practices. Observers were particularly surprised by Lee’s mention of easing regulations on capital adequacy ratios, given that financial authorities had previously taken a tightening approach in this area. This move appears to consider insurers' financial stability, which has been impacted by the introduction of the new accounting standard (IFRS 17) and the prolonged low-interest-rate environment. Despite record-breaking performances following the implementation of IFRS 17 in 2023, insurers have faced deteriorating capital adequacy. Even as financial authorities emphasize value enhancement (value-up), many insurers have struggled with cash reserves, making year-end dividend payments increasingly difficult. During an off-the-record briefing, Lee stated, "To comply with K-ICS ratios, many insurers have been issuing subordinated bonds and other supplementary capital instruments. However, these instruments come with interest burdens and profitability management challenges." He added, "Since supplementary capital is of lower quality than primary capital, we are considering regulatory easing from a long-term perspective to encourage the sourcing of higher-quality capital." To meet K-ICS requirements, insurers have significantly increased the issuance of subordinated bonds and other capital securities. In just the first two months of 2024, the industry issued approximately KRW 2 trillion (US$ 1.44 billion) in bonds. Available insurer capital is categorized into high-loss-absorbing primary capital and lower-quality supplementary capital, with subordinated bonds falling into the latter category. Aside from regulatory relaxations, Lee reiterated his commitment to strict enforcement against unethical sales practices that could harm consumers. In his opening remarks, Lee stated, "Concerns are being raised that a 'short-term results at all costs' mindset is spreading across the insurance industry, particularly in areas like last-chance marketing. If reckless sales competition disrupts market order, we will allocate supervisory and inspection resources accordingly and hold those responsible accountable." If sales competition intensifies without generating real value, meaningful competition—such as offering better products to consumers—may be neglected. Lee emphasized, "Our goal is not to conduct inspections for the sake of imposing penalties but to foster a healthier insurance industry. We hope insurers will align with this vision and collaborate with us." However, with the FSS currently conducting rigorous inspections of Hanwha Life and its distribution channels concerning executive term insurance, the entire insurance industry remains on edge. The sector is also bracing for tighter internal controls, with a new accountability framework set to be introduced in July and the financial industry's first-ever "best practices for executive compensation structures" scheduled for implementation in 2026. Attendees at the meeting included: From industry associations: - Kim Chul-joo, Chairman of the Korea Life Insurance Association - Lee Byung-rhae, Chairman of the General Insurance Association of Korea From life insurers: - Kim Jae-sik, Vice Chairman & CEO of Mirae Asset Life Insurance - Park Byung-hee, CEO of NH NongHyup Life Insurance - Yeo Seung-joo, Vice Chairman & CEO of Hanwha Life Insurance - Lee Moon-gu, CEO of Tongyang Life Insurance - Lee Young-jong, CEO of Shinhan Life Insurance - Cho Dae-kyu, CEO of Kyobo Life Insurance - Jo Ji-eun, CEO of Lina Life Insurance - Hong Won-hak, CEO of Samsung Life Insurance From general insurers: - Koo Bon-wook, CEO of KB Insurance - Kim Joong-hyun, CEO of Meritz Fire & Marine Insurance - Na Chae-beom, CEO of Hanwha General Insurance - Song Chun-soo, CEO of NH NongHyup Property & Casualty Insurance - Won Jong-kyu, CEO of Korean Reinsurance Company - Lee Moon-hwa, CEO of Samsung Fire & Marine Insurance - Jung Jong-pyo, CEO of DB Insurance - Cho Yong-il, Vice Chairman & CEO of Hyundai Marine & Fire Insurance #FinancialSupervision #LeeBokhyun #FSS #InsuranceRegulation #CapitalAdequacy #KICS #IFRS17 #InsuranceIndustry #RiskManagement #MarketCompetition
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- Bom Kim’s Coupang-Farfetch Bet Pays Off, Breaking Loss Streak and Turning Profitable
- Bom Kim, the Chairman of the Board and CEO of Coupang, Inc., may have made a winning move. With global luxury platform Farfetch achieving positive EBITDA within just a year, Kim’s bold acquisition of Farfetch is now being seen as a potential game-changer. However, some argue that this turnaround is primarily due to cost-cutting measures rather than a genuine recovery in demand. Critics point out that Farfetch still has a long way to go before generating actual operating profits and becoming a stable revenue source for Coupang. According to the retail industry on the 27th, Farfetch, which was acquired by Coupang, has been rapidly improving its financial structure and approaching its breakeven point. After struggling with deficits, Farfetch successfully turned EBITDA-positive within a year following aggressive restructuring. Founded in 2007 in the UK, Farfetch is a global platform that sells luxury goods from over 1,400 brands in 190 countries. However, its financial situation before the acquisition was dire. In 2022, it recorded an operating loss of KRW 1.168 trillion (US$ 842 million), followed by a KRW 560 billion (US$ 404 million) loss in the first half of 2023. Ultimately, it was delisted later that year and acquired by Coupang. At the time, Kim’s decision to acquire Farfetch was met with more skepticism than optimism. Despite concerns, Kim remained firm in his decision. Following the acquisition, Coupang implemented drastic restructuring measures, cutting inefficient operations and significantly reducing its workforce. Early last year, Farfetch reduced its total headcount by over 25% and even shut down its "Farfetch Platform Solutions" division, which provided tech and logistics solutions for luxury brands. Still, the losses did not decrease easily. In 2023, Farfetch recorded EBITDA losses of KRW 41.1 billion (US$ 29.6 million) in Q1, KRW 42.4 billion (US$ 30.6 million) in Q2, and KRW 2.7 billion (US$ 1.9 million) in Q3, raising doubts about Kim’s acquisition decision. However, a surprising turnaround occurred in Q4, with Farfetch posting an EBITDA profit of KRW 41.8 billion (US$ 30.1 million). Unlike major Korean luxury platforms such as Mustit, Trenbe, and Ballan, which are struggling with capital erosion, Farfetch has improved profitability through aggressive cost-cutting. During the 2025 earnings conference call, Kim stated, "A year ago, Farfetch was losing more than US$ 100 million per quarter, but now it has improved to breakeven levels. By streamlining operations, the company is in a stronger position to lead innovation in the global luxury commerce market." Some analysts now see Coupang’s US$ 500 million investment as a smart and cost-effective bet. Farfetch, which went public on the New York Stock Exchange in 2018, once reached a market capitalization of US$ 23 billion but saw its value plummet due to weakening luxury demand and declining profitability. Its acquisition by Coupang for US$ 500 million marked a dramatic turnaround. Nam Seong-hyun, an analyst at IBK Securities, said, "Farfetch’s successful EBITDA turnaround demonstrates the competitiveness of Coupang’s new business ventures as a long-term growth driver. With post-merger integration (PMI) now complete, its financial recovery is expected to accelerate." Farfetch’s ability to reduce its losses within a year was largely due to aggressive cost-cutting. Annual losses of KRW 1 trillion (US$ 719 million) indicated significant inefficiencies, and Kim focused on eliminating surplus workforce and unprofitable business segments to cut costs over the past year. The question now is whether Farfetch can go beyond cost-cutting. There are limits to improving profitability through expense reductions alone. Reports suggest that Farfetch’s revenue also declined due to the aggressive restructuring process. To ensure sustainable growth, the company must find a way to revive demand. Luxury platforms inherently struggle with low profitability. Typically, luxury platforms earn around 10% in commission fees, but when factoring in discounts and promotional coupons, the net margin often falls to single digits. Expanding direct purchases is also difficult due to inventory risks. Previously, the booming luxury market allowed platforms to compensate for low margins with high sales volumes. However, as the global economic slowdown persists, consumer spending has weakened, making luxury platforms' profitability issues even more pronounced. A retail industry insider commented, "The prolonged global economic downturn and continuous price increases by luxury brands have significantly reduced demand for high-end goods. While each luxury platform is trying to find a breakthrough, the industry's downturn is expected to continue for the foreseeable future." Industry experts also believe that leveraging Coupang’s logistics system for Farfetch will be challenging. Currently, most luxury platforms operate as open marketplaces rather than direct sellers, as the inventory risk associated with direct purchasing is high. Moreover, luxury goods require specialized storage conditions—leather products, for example, are highly sensitive to temperature and humidity, necessitating dedicated warehouse facilities. Returns are another major challenge. Products imported from overseas boutiques typically cannot be returned. However, when domestic customers request returns, the platform must absorb the cost. A single returned item can result in losses worth tens of millions of Korean won. Given this, the open-market model makes it difficult for Farfetch to fully integrate with Coupang’s extensive logistics network. During the conference call, Kim stated, "Farfetch attracts 49 million monthly visitors from over 190 countries. With this foundation, we have high expectations for its potential to bring innovative changes to the global luxury commerce sector." #Coupang #BomKim #Farfetch #luxurycommerce #ecommerce #businessstrategy #logistics #investment #profitability #globalmarket
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- Seo Jung-jin’s KRW 5 Trillion Sales Target for Celltrion Hinges on U.S. Performance of Zymfentra
- Seo Jung-jin, Chairman of Celltrion, will need strong performance in the U.S. market to achieve this year’s KRW 5 trillion (US$ 3.6 billion) sales target. In particular, the underwhelming performance of "Zymfentra" (the U.S. name for Remsima SC), a treatment for autoimmune diseases, has led securities firms to take a more conservative approach to Celltrion’s 2024 outlook than Seo’s ambitious projections. According to the securities industry on the 26th, major domestic securities firms estimate Celltrion’s annual revenue for this year to be between KRW 4.3 trillion (US$ 3.1 billion) and KRW 4.5 trillion (US$ 3.2 billion). KB Securities presented the lowest estimate at KRW 4.289 trillion (US$ 3.1 billion), while most others projected around KRW 4.5 trillion (US$ 3.2 billion). FnGuide, which compiles securities firms’ average forecasts, projected Celltrion’s consolidated revenue for this year at KRW 4.5147 trillion (US$ 3.3 billion). Among securities firms, only SangSangIn Securities provided a near-KRW 5 trillion (US$ 3.6 billion) estimate at KRW 4.991 trillion (US$ 3.6 billion). Compared to Seo’s confident KRW 5 trillion (US$ 3.6 billion) target, securities firms' forecasts are noticeably conservative. In November 2023, at an investor meeting in Hong Kong, Seo stated, "The KRW 5 trillion (US$ 3.6 billion) sales target for next year has a more than 90% chance of being achieved. If we reach our goal, we will aim for KRW 7-8 trillion (US$ 5.0-5.8 billion) in 2026 and KRW 10 trillion (US$ 7.2 billion) in 2027." Celltrion has already achieved success in the European market, surpassing KRW 1 trillion (US$ 721.1 million) in revenue last year. The company secured the top market share in major European countries across most of its product lineup. However, the situation in the U.S. market is different. The disappointing early performance of Zymfentra is a key reason why analysts are taking a cautious view of Celltrion’s 2024 revenue outlook. Lee Ji-soo, an analyst at Daol Investment & Securities, commented, "Zymfentra offers high convenience and long-lasting efficacy, giving it strong competitiveness in the U.S. market. However, factors such as insurers, wholesalers, physicians, and patients all need to be considered, and expanding the sales network will take time." Lee Dal-mi, an analyst at BNK Investment & Securities, also stated, "Expectations for Zymfentra should be tempered." According to Celltrion, Zymfentra generated KRW 36 billion (US$ 25.9 million) in U.S. sales in 2024. This represents only 14.4% of the company’s initial target of KRW 250 billion (US$ 180.3 million) when it launched the product in March 2023. Zymfentra is a biobetter version of the autoimmune disease treatment Remicade. A biobetter is an improved biologic drug that enhances administration convenience or performance. Celltrion considers Zymfentra a key driver for future profitability, particularly since it was approved as a new drug by the U.S. Food and Drug Administration (FDA). The infliximab market in the U.S. alone exceeded KRW 62 trillion (US$ 44.7 billion) as of 2022. Additionally, the U.S. market for inflammatory bowel disease (IBD) treatments, Zymfentra’s target segment, is estimated at around KRW 12 trillion (US$ 8.6 billion). If the drug gains traction in the U.S., achieving Celltrion’s 2024 revenue goal may not be impossible. A Celltrion representative told Business Post, "It is difficult to disclose a specific sales target for Zymfentra this year. However, since last year, we have strengthened hospital-level marketing, and Zymfentra ads are now running nationwide in the U.S. on TV and online platforms. Patient interest and preference are increasing, and we expect prescription rates to accelerate further." #SeoJungjin #Celltrion #Zymfentra #biopharmaceuticals #biosimilars #biobetter #USmarket #pharmaceuticals #Koreanbusiness #salesforecast
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- Major Accident at Hyundai Engineering, CEO Joo Woo-jeong Faces Early Leadership Test
- Joo Woo-jeong, President and CEO of Hyundai Engineering, is expected to face an early leadership test in crisis management following a major fatal accident. While the exact responsibility for the accident will be determined after investigations by relevant authorities, Joo is likely to face significant pressure given the government’s push to strengthen safety management and oversight. The potential risk of administrative sanctions, such as business suspension, further adds to the burden on him. According to the Ministry of Land, Infrastructure and Transport (MOLIT) and Korea Expressway Corporation on the 26th, the collapse of the Cheonyongcheon Bridge at the Section 9 construction site of the Seoul-Sejong Expressway (Route 29) on the previous day appears to have been caused by construction process issues. Based on current findings, the accident occurred when a girder fell during the process of removing the installation equipment after completion, causing 10 workers on the deck to fall. Four workers—two Korean and two foreign nationals—were confirmed dead, while five Koreans and one foreign worker sustained injuries. MOLIT immediately set up an accident response headquarters, and MOLIT, the National Police Agency, the National Fire Agency, and the Ministry of Employment and Labor (MOEL) have launched a joint investigation to determine the exact cause. The accident site was being handled by a consortium between Hyundai Engineering and Hoban Industrial, with Hyundai Engineering holding a 62.5% stake and Hoban Industrial holding 37.5%. The subcontractor, Jangheon Industries, was responsible for bridge fabrication. In response to some reports criticizing inadequate site inspections, MOLIT issued a statement urging restraint in making premature conclusions about the cause of the accident. However, as Hyundai Engineering is the lead contractor and acknowledges its responsibility, CEO Joo Woo-jeong now faces the challenge of demonstrating his risk management capabilities early in his tenure amid a major industrial accident. Joo reportedly visited the accident site immediately after the incident to oversee recovery efforts and follow-up measures. MOEL plans to investigate whether there were violations of the Occupational Safety and Health Act and the Serious Accidents Punishment Act once the exact cause is identified. Given that the number of casualties exceeds the threshold for setting up a separate recovery task force, authorities have indicated they will conduct a strict investigation into possible legal violations. MOEL immediately dispatched the head of the Occupational Safety and Health Policy Division to the site and ordered a suspension of work for the affected operation and similar tasks. Additionally, MOEL is actively participating in the accident response headquarters led by MOLIT and has established both a Central Industrial Accident Response Headquarters (CIRH) and a Regional Industrial Accident Response Headquarters (RIRH) for independent investigations. MOEL sets up CIRH and RIRH when a workplace accident results in three or more fatalities or five or more casualties. The fact that the government is currently intensifying workplace safety policies also adds pressure on CEO Joo. On the previous day, MOEL announced its "2025 Workplace Inspection Plan" aimed at protecting vulnerable workers and ensuring safe workplaces. MOEL has stated that it will concentrate its inspection efforts on companies violating safety laws. The plan includes targeted oversight of high-risk industries such as construction and shipbuilding, which have frequent industrial accidents due to their subcontracting structures. MOEL also plans to conduct integrated and coordinated inspections focusing on the 10 largest construction firms with frequent serious accidents, major companies involved in nationwide and socially significant incidents, and high-risk sectors. "Special inspections" will be conducted to scrutinize sites where accidents have occurred. MOLIT, too, has been strengthening safety measures and supervision, particularly since the Muan Airport disaster late last year. MOLIT is preparing to announce new safety measures to prevent falls, the most common cause of fatalities in the construction industry. On January 11, Minister of Land, Infrastructure and Transport Park Sang-woo stated at a press conference, "The number of deaths at construction sites last year was 207, a 15% decrease from the previous year, but still too high. We will announce new safety measures by the end of this month to prevent falls, which account for half of all construction fatalities." On January 5, MOLIT also pre-announced legislation to amend the Construction Technology Promotion Act, adding a provision to disclose the names of construction companies involved in fatal accidents. Until 2023, MOLIT had suspended the quarterly publication of lists of construction companies with fatal accidents, but it is now pursuing a legal amendment to strengthen the accountability of contractors in ensuring site safety. Since taking over as Hyundai Engineering’s CEO this year, Joo has faced the challenge of proving improved financial performance following a "big bath" strategy of clearing out accumulated losses. Now, a major fatal accident has added to his challenges. In Q4 2023, Hyundai Engineering recorded losses exceeding KRW 1 trillion (US$ 721.1 million) due to cost overruns on projects such as Balikpapan in Indonesia and Jafurah in Saudi Arabia. While the move to address financial risks was seen as positive, concerns remain over how effectively the company can restore profitability moving forward. Korea Investors Service (KIS) stated in its "2024 Preliminary Performance Review of Major Construction Firms" that Hyundai Engineering needs to reassess its overall business competitiveness, noting, "The fact that the company recognized losses exceeding KRW 1 trillion (US$ 721.1 million) in certain projects indicates inadequate cost control. Considering the real estate market downturn, deteriorating domestic industrial conditions, and inherent risks in overseas projects, it will take time for the company to restore financial stability to a level that matches its credit rating." However, KIS also acknowledged that since the losses were concentrated in a few projects, short-term profitability could improve through negotiations with clients. It also noted that Hyundai Engineering’s liquidity risks remain low due to Hyundai Motor Group’s strong external creditworthiness. In the securities industry, analysts predict that the recent accident could impact Hyundai Engineering’s profitability and pose a risk of administrative sanctions. Lee Eun-sang, a researcher at NH Investment & Securities, commented, "If the issue was caused by a construction flaw rather than a design flaw, a complete reconstruction is unlikely, and only the collapsed section may need to be rebuilt, limiting the financial burden on Hyundai Engineering. However, based on past cases of similar collapses at other companies, an administrative suspension of operations could be imposed, though legal challenges may allow the company to continue operations." Bae Se-ho, a researcher at iM Securities, added, "In the worst case, full reconstruction could cost KRW 200 billion (US$ 144.2 million), but given the segmented nature of the construction process, we estimate the cost impact to be around KRW 30-35 billion (US$ 21.6-25.2 million). However, since the accident involved fatalities, the risk of administrative suspension remains a concern." Hyundai Engineering issued an official statement under CEO Joo Woo-jeong’s name, expressing condolences and pledging full commitment to handling the aftermath and preventing recurrence. "Hyundai Engineering is mobilizing all available resources to support the victims and ensure a thorough accident response. We are actively cooperating with authorities to swiftly manage the site and determine the exact cause. We will fully comply with all investigations and necessary measures and establish strict preventive measures to ensure such accidents do not happen again," the company stated. #JooWoojeong #HyundaiEngineering #constructionaccident #SeoulSejongExpressway #workplacesafety #MOEL #MOLIT #industrialaccident #Koreanbusiness #riskmanagement
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- Rate Cut Cycle Begins: Bank of Korea’s Rhee Chang-yong Announces 2.75% Benchmark Rate, Hints at Further Cuts
- "From an economic perspective, we believe there is a need for additional adjustments to the benchmark interest rate." Rhee Chang-yong, the Governor of the Bank of Korea, reinforced the central bank's stance toward monetary policy easing in response to the weakening domestic economy. With South Korea’s economic growth projected to slow to the mid-1.5% range this year, economic stimulus has emerged as a top priority. As Governor Rhee mentioned the possibility of two to three rate cuts this year, the benchmark rate could drop to the low 2% range. Following the Bank of Korea's decision to cut the benchmark rate on the 25th, market attention has shifted to the number and extent of additional rate cuts this year. The key question is whether there will be two more rate cuts or as many as three. The securities industry largely expects the Monetary Policy Board to implement two additional cuts this year, bringing the final benchmark rate to around 2.25%. Baek Yoon-min, a researcher at Kyobo Securities, stated after the Board’s 0.25 percentage point rate cut decision, "Considering inflation and growth forecasts, the Bank of Korea's monetary policy stance will continue to support further rate cuts." He added, "February’s Monetary Policy Board meeting was more ‘dovish’ than market expectations," predicting additional 0.25 percentage point cuts in the second and third quarters. In monetary policy, a dovish stance refers to a preference for economic stimulus and easing, while a hawkish stance prioritizes financial stability, such as controlling inflation, over economic growth. Ahn Ye-ha, a researcher at Kiwoom Securities, also commented, "The Board's statement that additional cuts will depend on economic conditions could be interpreted as hawkish," but added, "By keeping both hawkish and dovish factors in play while confirming the rate cut cycle, the Board ultimately leaned more dovish." However, some analysts viewed the Board's stance as hawkish. Four of the six Board members supported holding rates steady for the next three months, and Governor Rhee emphasized during a press conference that monetary policy is not a "cure-all," suggesting a cautious approach to further cuts. Heo Jung-in, a researcher at Daol Investment & Securities, remarked, "This meeting was more hawkish, especially when considering the possibility of a supplementary budget," adding, "While the Board significantly lowered its economic growth forecast, it may stop rate cuts at 2.5%." Despite this view, Heo maintained his projection that the benchmark rate would reach 2.25% by year-end. There is broad agreement that Governor Rhee and the Board are tilting monetary policy firmly toward economic stimulus. The Board unanimously voted for the 0.25 percentage point rate cut. Governor Rhee repeatedly highlighted economic downturn concerns during the press conference. In his opening remarks, he stated, "Despite persistent caution in the foreign exchange market, inflation is stabilizing, and household debt growth is slowing, while the economy is expected to weaken significantly. Therefore, an additional rate cut was deemed appropriate to mitigate downside risks to growth." He also pointed to increasing export uncertainty due to the tariff policies of the U.S. Trump administration. Reflecting this, the Bank of Korea lowered its economic growth forecast for 2024 to around 1.5%, even below its January mid-year review. The central bank’s outlook that economic growth may remain below 2% not only this year but also in 2025 further supports the case for continued rate cuts. Governor Rhee stated, "The projected 1.8% growth rate for 2026 is reasonable. That is our actual capacity, and we must accept it." He added, "If we continue relying on traditional industries without fostering new growth drivers and refuse to bring in foreign workers, the only way to push growth beyond 1.8% is through fiscal stimulus and lower interest rates." His remarks underscored that without structural reforms, such as fostering new industries and implementing effective fiscal policies, economic recovery will be limited, leaving interest rate cuts as the primary short-term solution. Regarding the Bank of Korea’s economic outlook, Rhee identified fiscal policy as the biggest uncertainty, noting that the forecast did not factor in a supplementary budget because it has yet to be announced. He has repeatedly emphasized that a supplementary budget of KRW 15-20 trillion (US$ 10.8-14.4 billion) is necessary to boost growth by approximately 0.2 percentage points. Ultimately, Governor Rhee is expected to continue a delicate balancing act between rate cuts aimed at preventing an economic downturn and concerns about financial stability, including exchange rates and inflation. Following this rate cut, the interest rate gap between South Korea and the U.S. widened from 1.50 percentage points to 1.75 percentage points. If the Bank of Korea continues cutting rates while the U.S. Federal Reserve slows its pace of rate cuts due to inflation concerns stemming from tariff hikes, the gap could widen further. This would put upward pressure on the KRW/USD exchange rate. A weaker Korean won, driven by rising exchange rates, could lead to higher import prices, further fueling domestic inflation. Governor Rhee stated, "With increasing external uncertainties, including U.S. tariff policies and Federal Reserve monetary policy, we cannot rule out the possibility of greater exchange rate volatility," adding, "Given the potential impact on inflation and financial stability, we will continue to monitor the situation closely before determining the timing and pace of further rate cuts." At its monetary policy meeting, the Bank of Korea decided to lower the benchmark interest rate from 3.00% to 2.75%, marking the first time since August 2022 (2.5%) that the rate has fallen into the 2% range. The Monetary Policy Board, which sets the direction of monetary policy, holds eight meetings annually in January, February, April, May, July, August, October, and November. #BankofKorea #RheeChangyong #interestrates #monetarypolicy #economicgrowth #finance #inflation #currency #USFed #KoreanEconomy #ratecut
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- KGM’s Domestic Sales Drop Below 50,000 for First Time in 12 Years—Can the Torres Hybrid Turn Things Around?
- KG Mobility (KGM) has recorded profits for two consecutive years, but severe domestic sales declines are casting uncertainty over its financial outlook for this year. The company's latest models have struggled to gain traction in the market. Kwak Jae-sun, Chairman of KGM, has belatedly introduced the Torres Hybrid as a countermeasure, but industry experts remain skeptical about its success. According to industry sources on the 25th, some believe Kwak's strong focus on electric vehicle (EV) sales has led to a failure to respond to market demand for hybrid cars. KGM’s standalone operating profit was KRW 5 billion (US$ 3.6 million) in 2023 and KRW 12.3 billion (US$ 8.9 million) in 2024. Since acquiring KGM in August 2022, Kwak has successfully led the company to profitability for two consecutive years. However, given the poor performance of its latest models, maintaining profitability this year appears uncertain. One of the factors credited for last year’s profit was the expected success of the Actyon, but its actual sales fell short of expectations. The Actyon, an SUV launched in August 2023, sold only 5,027 units by December. In comparison, the Renault Grand Koleos, released around the same time, sold 22,034 units—more than four times as many. Monthly Actyon sales reached 1,686 units in September and 1,482 in October but plummeted to 693 units in November. By January 2024, sales had further declined to 478 units. This performance pales in comparison to the Torres, which, at its peak, sold nearly 5,000 units per month and ranked second in domestic sales. With no significant boost from new models, KGM’s domestic sales in 2023 totaled 47,046 units—a 25.7% decline from the previous year. This marks the first time in 12 years that KGM’s annual domestic sales have fallen below 50,000 units since SsangYong Motor sold 47,700 units in 2012. Since taking over KGM, Kwak has prioritized EV production over hybrids. However, the electric SUV Torres EVX, launched in November 2023 with high expectations, has faced sluggish sales due to the so-called "EV chasm," a temporary stagnation in EV demand. Domestic sales of the Torres EVX in 2024 reached 6,112 units, with only 12 units sold in January this year. Despite these challenges, KGM has chosen the all-electric pickup truck Musso EV as its next model after the Actyon. Pre-orders for the Musso EV began on the 25th, but its price, set at over KRW 50 million (US$ 36,000), has sparked consumer backlash. In response to mounting difficulties, Kwak has decided to shift away from his all-in EV strategy and introduce a hybrid vehicle. The hybrid version of the Torres, originally released in 2022 and well received, is now set to launch in March. Although KGM is finally joining the hybrid market, the new model retains the existing Torres design while simply incorporating a hybrid system. Industry experts question whether this approach will attract consumers. Additionally, the Torres has faced consumer distrust due to display-related issues, which may further impact the new model’s success. KGM removed all physical buttons from the Torres except for the hazard lights, but slow touchscreen response and frequent errors have led to widespread customer dissatisfaction. A KGM representative told Business Post, “Since the vehicle has not yet been officially unveiled, we cannot confirm whether display-related issues have been addressed. While this is not a full model change, there may be some minor design refinements.” #KGMobility #KwakJaesun #TorresHybrid #EVsales #hybridcars #automotive #business #Korea #KGmobilityTorres #electricvehicles
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- Hyundai Steel CEO Seo Gang-hyun Urges Union to End Strike, Leadership Faces Crisis Test
- Seo Gang-hyun, CEO and President of Hyundai Steel, urged the labor union to call off its strike. In his first year as CEO, Seo has been unable to reach an agreement in the wage and collective bargaining negotiations, deepening labor-management tensions. His leadership in managing a corporate crisis is now being tested. Having built his career primarily in finance within Hyundai Motor Group, all eyes are on whether he can minimize losses caused by the strike and partial workplace shutdown while finding common ground with the union. According to the steel industry on the 25th, Seo issued a statement to company employees, saying, "Now is not the time to escalate conflicts, but a critical moment when labor and management must unite to overcome these difficulties. Let’s conclude the wage and collective bargaining negotiations through dialogue and compromise." Labor and management have yet to reach an agreement on the 2024 wage and collective bargaining negotiations, with differences over performance-based bonuses. The union secured the right to strike in October 2023 and has since held three strikes on January 22, February 2, and February 11, 2024. In response, Hyundai Steel announced a "workplace closure" on February 24 for the continuous pickling and cold rolling mill at its Dangjin Steelworks. This marks the first workplace closure since the Dangjin Steelworks was established in 2010. Seo stated that the company would respond to the strike based on legal principles and company policies. "This strike weakens the foundation for the company's survival and will leave irreversible damage for everyone," he said. "To minimize the impact, the company has no choice but to respond in accordance with the law and company policies." He also emphasized that the company’s proposed bonus exceeds its financial capacity. Hyundai Steel’s offer includes a performance-based bonus of 450% of base salary plus KRW 10 million (US$ 7,200). "During the collective bargaining session on February 19, the company proposed a performance-based bonus that exceeds our financial capacity," he explained. "The reason we made this difficult decision despite worsening financial conditions was to put an end to unproductive disputes and encourage labor and management to unite in overcoming these challenges." "Due to the proposed bonus, the company had no choice but to revise its 2024 separate financial statements, adjusting its net profit forecast from KRW 47.3 billion (US$ 34.1 million) to a net loss of KRW 65 billion (US$ 46.9 million)," he added. "This deficit disclosure is a serious warning signal regarding the company’s financial stability." The union, on the other hand, is demanding a performance-based bonus of 500% of base salary plus KRW 18 million (US$ 13,000). Hyundai Steel estimates that the workplace closure will result in production losses of approximately 270,000 tons, leading to an estimated financial loss of KRW 25.4 billion (US$ 18.3 million). Seo was born in 1968 and graduated from Seoul National University with a degree in International Economics. He joined Hyundai Motor in 1993 and has since held key financial positions, including Head of Business Management and Accounting at Hyundai Motor, CFO at Hyundai Steel, and Head of Planning and Finance at Hyundai Motor. In November 2023, he was promoted to president and appointed as CEO of Hyundai Steel. Although Hyundai Steel is his first CEO role, his performance in his first year has been weak. In 2024, Hyundai Steel recorded consolidated revenue of KRW 23.23 trillion (US$ 16.7 billion), an operating profit of KRW 1.59 trillion (US$ 1.1 billion), and a net profit of KRW 8.8 billion (US$ 6.3 million). Compared to 2023, revenue fell by 10.4%, operating profit declined by 80.0%, and net profit plunged by 98.0%. #HyundaiSteel #SeoGanghyun #HyundaiMotorGroup #laborstrike #wages #collectivebargaining #business #steelindustry #finance #leadership
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- Samsung C&T's Urban Redevelopment Wins Near Last Year's Total—Oh Se-chul Aims for 'Raemian' Dominance
- Oh Se-chul, the President and CEO of the E&C Group at Samsung C&T, is expected to achieve urban redevelopment contract wins this year that nearly match the total from last year within just three months. Since the beginning of the year, Samsung C&T has raised the flag of its "Raemian" brand in key areas of Seoul, including Hannam District 4, showcasing its brand competitiveness. As a result, attention is focused on whether Oh will establish this year as the beginning of Samsung C&T's dominance in the urban redevelopment market. As of February 24, Samsung C&T's construction division has secured KRW 2.239 trillion (US$ 1.61 billion) in urban redevelopment projects this year. This includes its selection on February 22 as the contractor for the reconstruction of Daelim Garak Apartments in Songpa District. The Songpa Daelim Garak Apartment reconstruction project involves redeveloping a 35,241㎡ site at 217 Bangi-dong into a complex with up to 35 floors, nine buildings, and 867 residential units, with an estimated construction cost of KRW 454.4 billion (US$ 327.6 million). Adding this to the KRW 1.5695 trillion (US$ 1.13 billion) Hannam District 4 redevelopment contract secured earlier this year, Samsung C&T has already locked in KRW 2.239 trillion (US$ 1.61 billion) in projects. Additionally, a private contract for the reconstruction of Hanyang Apartment Complex 3, adjacent to Songpa Daelim Garak (with an estimated construction cost of KRW 260 billion or US$ 187.4 million), is planned. Samsung C&T has also entered negotiations for a private contract for the reconstruction of Shinbanpo District 4 (KRW 1.03 trillion or US$ 743 million). Furthermore, there is a high likelihood that Samsung C&T will secure a private contract for Banghwa District 6, a project initially signed in 2020 for KRW 141 billion (US$ 101.7 million) but later stalled due to disputes over construction costs. If all these contracts are secured, the total will reach KRW 3.5 trillion (US$ 2.52 billion). Samsung C&T is on track to accumulate an urban redevelopment contract backlog close to last year’s total before the first quarter even ends. In 2023, the company won approximately KRW 3.6398 trillion (US$ 2.63 billion) in contracts. This performance highlights Samsung C&T's efforts to solidify the competitiveness of its "Raemian" brand. During the high-profile bidding war for the Hannam District 4 project earlier this year, which saw intense competition between the top two construction firms by capacity ranking, Samsung C&T's Raemian brand outperformed Hyundai Engineering & Construction's premium brand "The H." If Samsung C&T secures the Shinbanpo District 4 reconstruction project, it could further extend the so-called "Raemian Belt" in the highly sought-after Banpo area within the three Gangnam districts. Shinbanpo District 4 is located between Banpo Station and Express Bus Terminal Station. If the Raemian brand is established here, it will extend the existing Raemian Belt, which starts at Raemian Trinity One near Gubanpo Station and continues through Raemian One Bailey, Raemian Prestige, and Raemian One Pentas around Shinbanpo Station. Samsung C&T is also displaying confidence by significantly raising its target for urban redevelopment contracts this year. The company has set a 2024 target of KRW 5 trillion (US$ 3.61 billion) for urban redevelopment project wins, a 47% increase from last year's KRW 3.4 trillion (US$ 2.45 billion) and more than three times the KRW 1.3 trillion (US$ 937.4 million) achieved in 2023. If Samsung C&T achieves this goal, it will surpass POSCO E&C, which ranked second last year with KRW 4.7191 trillion (US$ 3.4 billion) in contracts. Industry experts believe that depending on upcoming contract wins, Samsung C&T could even overtake Hyundai Engineering & Construction, which has held the No. 1 spot in urban redevelopment for six consecutive years. Hyundai E&C secured KRW 6.0612 trillion (US$ 4.37 billion) in contracts last year. For Oh Se-chul, maintaining his position as CEO despite the major leadership shake-ups in the construction industry at the end of last year is seen as a validation of his leadership. Over the past few years, the construction industry has faced difficulties due to a sluggish real estate market and soaring construction costs. Among the top 10 construction firms, only Samsung C&T and Lotte E&C have retained their top executives. Oh also broke Samsung Group's traditional "age-60 rule," which typically requires executives over 60 to step down, securing his tenure and strengthening his position. Oh is expected to continue focusing on large-scale redevelopment projects in key areas of Seoul to maintain Samsung C&T's urban redevelopment contract momentum. Samsung C&T is particularly interested in major redevelopment projects in Seoul, including Jamsil Woosung 1, 2, and 3 complexes, as well as Gaepo Jugong 6 and 7 complexes, each valued in the trillions of won. GS E&C has expressed interest in the Jamsil Woosung project, while Hyundai E&C is eyeing Gaepo Jugong, setting the stage for another competitive bidding war among major builders, similar to the Hannam District 4 project earlier this year. Some industry observers suggest that Samsung C&T may employ a selective bidding strategy and focus on just one of these two projects. However, both sites hold significant symbolic value. Gaepo Jugong is located directly across Yangjae Stream from the massive "Usunmi" redevelopment in Daechi-dong (comprising Woosung 1 and 2, Seongkyung, and Hanbo Mido), while Jamsil Woosung 1, 2, and 3 are situated right in front of the Jamsil International Exchange Complex. As a result, Samsung C&T is expected to carefully evaluate the possibility of bidding for both projects. A Samsung C&T representative stated, "Following the Songpa Daelim Garak contract, we are awaiting several private contracts," adding, "We are considering participating in the bidding for Gaepo Jugong and Jamsil Woosung and will continue striving to achieve strong results, particularly in key areas of Seoul." #SamsungC&T #construction #urbanredevelopment #Raemian #realestate #Seoul #Hannam4 #Shinbanpo4 #Jamsil #HyundaiEC
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- Samsung Faces Prolonged HBM Oversupply Crisis as U.S. Big Tech Slows AI Investments
- As Microsoft (MS) leads a move among U.S. big tech companies to moderate the pace of artificial intelligence (AI) investments, expectations are emerging that demand for high-bandwidth memory (HBM) will not increase as much as initially anticipated this year. Consequently, concerns are being raised about the possibility of an oversupply of HBM, which could lead to price declines in 2024. Samsung Electronics, which has been experiencing a semiconductor business crisis, is preparing for the mass supply of its fifth-generation HBM3E products to NVIDIA. However, if an oversupply issue arises, the company may find it difficult to improve profitability in HBM, following struggles in the DRAM and NAND flash sectors. With China rapidly closing the gap in DRAM and NAND flash, and the potential decline in HBM profitability, some analysts predict that Samsung Electronics' semiconductor business crisis could be prolonged. As of February 24, reports from the semiconductor industry suggest that concerns over excessive AI investment in the United States are resurfacing, potentially affecting domestic memory semiconductor companies. On February 21, U.S. investment bank TD Cowen reported that Microsoft had recently canceled at least two data center lease agreements in the United States. According to TD Cowen, Microsoft did not convert preliminary agreements with data center operators into official leases, and the scale of the canceled data centers amounted to several hundred megawatts (MW) in power supply capacity. TD Cowen analyzed that "the current situation is likely an effort by Microsoft to adjust for an oversupply of AI infrastructure." Indeed, Microsoft CEO Satya Nadella recently appeared on podcaster Dwarkesh Patel's show and stated, "To claim that AI is a technological shift on the scale of the Industrial Revolution, it must contribute to raising global economic growth to around 10% through productivity improvements. While supply and demand do not have to match perfectly, continued investment requires confidence that past investments can be converted into actual demand." This statement suggests that if AI fails to improve productivity or demand falls short of expectations, Microsoft may slow its investments. Given that Microsoft has been the most aggressive among big tech companies in AI infrastructure investment, its move to moderate the pace could lead Google, Amazon, Meta, and other major U.S. tech firms to scale back their AI investments this year compared to their original plans. Additionally, the rise of China's DeepSeek is forcing U.S. big tech companies to consider more efficient AI investment strategies. This slowdown in AI investment by U.S. big tech firms is expected to negatively impact Samsung Electronics' semiconductor business. Samsung Electronics is set to begin full-scale production of HBM3E this year, but reduced AI investment by big tech firms could exacerbate an oversupply of HBM and drive down prices. Samsung Electronics is expected to have a monthly production capacity of approximately 150,000 wafers for HBM this year. This level of production capacity is similar to that of SK Hynix, which is already supplying HBM3E to NVIDIA. Jun Young-hyun, Vice Chairman and Head of the Device Solutions (DS) Division at Samsung Electronics, has reportedly met with NVIDIA CEO Jensen Huang to discuss the latest HBM3E supply. Moreover, Micron in the United States is expanding its HBM production capacity from 20,000 to 60,000 wafers per month, suggesting that overall HBM supply will increase significantly compared to last year. French bank BNP Paribas has forecasted that "while HBM supply is expected to reach 400,000 wafers per month by 2025, demand will only amount to 168,000 wafers per month," adding that "fierce production competition among major memory manufacturers will significantly increase supply beyond demand." If HBM oversupply drives down selling prices, even if Samsung Electronics supplies HBM3E to NVIDIA, it may not see the same level of performance improvement that SK Hynix experienced last year. Taiwanese market research firm TrendForce has projected that "HBM prices in Q1 2024 will decline by 0–5% compared to the previous quarter," attributing the price drop to increased competition and more companies entering the HBM market. Samsung Electronics' general-purpose DRAM business outlook is also not favorable. With China's ChangXin Memory Technologies (CXMT) successfully mass-producing DDR5, the general-purpose DRAM market is likely to enter an oversupply phase this year. CXMT's DRAM production capacity is expected to reach approximately 15.4% of the global wafer market share by Q4 2025, putting it on par with Micron. China's rapid progress poses a direct threat to Samsung Electronics, which currently holds the highest market share in general-purpose DRAM at around 41%. Lee Seung-woo, a researcher at Eugene Investment & Securities, stated, "With weakened competitiveness, the memory semiconductor market faces both industry downturn headwinds and the unexpected challenge posed by CXMT, making shipment declines and price drops inevitable," adding, "Samsung Electronics has already suffered significant losses, and now the only task left is to properly rebuild what remains." #Samsung #semiconductor #HBM #AIinvestment #Microsoft #NVIDIA #SKHynix #Micron #CXMT #memorychips
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- GS E&C Names MOLIT Official as Outside Director for 4th Time, Preparing for Business Suspension Risks
- GS Engineering & Construction (GS E&C) is set to appoint a high-ranking former official from the Ministry of Land, Infrastructure, and Transport (MOLIT) as an outside director for the fourth consecutive time. Huh Yoon-hong, the President and CEO of GS E&C, strengthened the company’s financial stability by turning a profit last year. Now entering his second year under the owner-CEO system, he appears to be preparing for potential business suspension risks. According to GS E&C’s shareholder meeting notice and resolution announcement on February 24, the company will appoint two new directors at the 56th regular general meeting of shareholders scheduled for March 25. The two new directors joining the board this year are both outside directors: Sohn Byung-seok, an advisor at the Housing Industry Research Institute, and Jung Seok-woo, a professor at Korea University Business School. At the 55th regular general meeting of shareholders on March 29 last year, GS E&C also approved the appointment of two new directors. However, compared to last year, the changes in board composition appear to be more limited this year. GS E&C underwent significant changes in both internal and external board members last year. First, the company appointed Huh Yoon-hong, a fourth-generation member of the GS Group's founding family, as an internal director. This change followed the resignation of former Vice Chairman and CEO Lim Byeong-yong in the wake of the Incheon Geomdan accident, marking the return of an owner-led management system after a decade. Huh joined GS E&C in 2005 and has worked exclusively for the company for nearly 20 years. He was promoted to executive director in 2013 and, after 11 years, was appointed as an internal director and CEO. His leadership in new business ventures, particularly in growing GS Inima, was highly regarded. GS E&C’s board noted that Huh possesses extensive experience and a deep understanding of overall management operations due to his long tenure and diverse responsibilities within the company. Meanwhile, the focus of outside director appointments shifted from technical experts to legal professionals. Last year, GS E&C appointed Hwang Cheol-kyu, a managing attorney at Haekwang Law Firm, as a new outside director. Hwang, a former chief prosecutor of the Daegu High Prosecutors’ Office, studied law at Seoul National University and currently serves as vice president of the World Jurist Association (WJA). He replaced former outside director Lee Hee-guk, who held bachelor's, master’s, and doctoral degrees in electronic engineering and had previously served as CTO of LG Electronics and CEO of LG Siltron. Lee was recognized for contributing to GS E&C’s risk management in technological aspects. Industry analysts viewed Hwang's appointment as a strategic move to strengthen legal risk management, particularly in response to the April 2023 Incheon Geomdan accident. By contrast, the newly appointed outside directors this year retain the expertise of their predecessors. Sohn Byung-seok and Jung Seok-woo, set to be appointed at this year’s shareholder meeting, are expected to continue the roles previously held by former outside directors Kang Ho-in, a former MOLIT official, and Lee Ho-young, an accounting expert. However, Sohn’s background as a former president of Korea Railroad Corporation (KORAIL) from March 2019 to June 2021, coupled with his previous MOLIT experience, has drawn particular attention. Born in 1962, Sohn passed the national technical examination in 1986 and began his public service career at the Ministry of Construction, the predecessor of MOLIT, in 1987. During his tenure at MOLIT, he held key positions such as Director of the Integrated Urban Planning Team for Balanced National Development, Director of the Water Resources Policy Division, Director of the Railway Bureau, Standing Commissioner of the Central Land Expropriation Committee, and Director of Planning and Coordination. He also served as First Vice Minister of MOLIT from 2017 to 2018. Since 2016, GS E&C has consistently appointed former ministers and vice ministers of MOLIT as outside directors. Sohn marks the fourth consecutive appointment of a former MOLIT official. The company previously appointed former MOLIT Minister Kwon Do-yeop in 2016, former First Vice Minister Kim Kyung-sik in 2019, and former MOLIT Minister Kang Ho-in in 2022. Kang’s term ends in March this year. Given the construction industry's deep ties to MOLIT policies, these appointments are seen as efforts to enhance policy understanding. Additionally, outside directors are expected to provide independent oversight to ensure corporate transparency, reinforcing GS E&C’s commitment to compliance management. This move comes as GS E&C continues to face administrative and legal risks, particularly concerning three business suspension orders related to the Incheon Geomdan accident. These orders are currently in the process of being challenged in court following a stay of execution. Among these, the longest suspension period—eight months—was issued by MOLIT. Industry insiders view the continued appointment of a former MOLIT official as an effort to maintain strong governmental relations. Given that CEO Huh Yoon-hong successfully led GS E&C’s return to profitability last year, this measure appears to be aimed at managing potential administrative and legal risks as he enters his second year under the owner-led management system. GS E&C’s board explained its decision to recommend Sohn as an outside director, stating, "As a construction industry expert who has served as First Vice Minister of MOLIT, he possesses extensive knowledge and experience, enabling him to provide valuable insights on various company matters and contribute to its growth and development." Following Huh’s appointment as CEO last year, GS E&C fully transitioned to an owner-led management structure. The company also recovered from an operating loss of over KRW 300 billion (US$ 216.3 million) in 2023, returning to profitability within a year, signaling a stabilization in overall management. However, the company continues to maintain a conservative approach, as reflected in its minimal board restructuring this year. By keeping changes to a minimum, GS E&C appears to be focusing on mitigating ongoing administrative risks. GS E&C’s board consists of two internal directors, four outside directors, and one non-executive director. As of last year, the two internal directors are CEO Huh Yoon-hong and his father, Huh Chang-soo, who serves as Co-CEO and Chairman of GS E&C. The non-executive director position is held by Huh Jin-soo, Huh Chang-soo’s younger brother and former CEO of GS Caltex. #GSE&C #construction #MOLIT #urbanredevelopment #legalrisk #HuhYoonhong #IncheonGeomdan #compliancemanagement #corporategovernance #shareholdermeeting
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- Shilla Stay’s Childbirth Promotion Praised, Lee Boo-jin’s ‘Unexpected Fortune’ Initiative Stands Out
- Shilla Stay, the business hotel brand of Hotel Shilla, is receiving positive feedback for a promotion targeting customers who have recently given birth. The idea of offering free accommodation to new parents is considered a rare and unique initiative in the hotel industry. According to industry sources on the 21st, customer response to Shilla Stay’s “Blessing Promotion,” which was conducted last year, has been favorable. The "Blessing Promotion" was an event held throughout the year by Shilla Stay to encourage childbirth. Customers who gave birth in 2024 were eligible to apply as long as they stayed at Shilla Stay for at least one night and signed up for the Shilla Rewards membership program. What drew significant attention to this promotion was its extraordinary benefits. Each selected participant receives five free night vouchers per year for life, effectively making them a "lifetime member." Additionally, customers who host their baby’s first birthday party at Shilla Stay receive a 20% discount on food and beverage expenses. To celebrate childbirth, the hotel also provides a welcome kit, which includes a bib, a sleeping vest, stretch mark cream, and baby shampoo. Through this promotion, Shilla Stay received more than 1,500 applications last year. Among them, 50 winners were selected and individually notified at the end of January. Some of the winners shared their experiences on blogs, leaving a stream of positive reviews. One customer wrote in a post titled “Someone Celebrating My Child’s Birth,” saying, “When I was pregnant, I often went out, and strangers would offer me a seat or give me words of encouragement. But after giving birth, I hardly went outside and felt isolated. Knowing that someone other than my family welcomes and celebrates my baby’s birth makes me incredibly happy and grateful.” Another winner posted a picture of the welcome kit from Shilla Stay, commenting, “The quilted sleeping vest and teddy bear are high-quality gifts. Thank you, President Lee Boo-jin, for organizing such an amazing event.” Positive feedback for the promotion continued throughout the application period last year. One customer wrote, “I’ve stayed at five-star hotels many times, but I’ve never seen such a refreshing promotion. It’s great to see a company planning an initiative like this in response to the low birth rate.” The financial cost of this promotion for Shilla Stay is not insignificant. If the one-night stay voucher, including breakfast for two, is valued at KRW 200,000 (US$ 144), then each winner receives more than KRW 1 million (US$ 720) worth of benefits per year for life. With 50 winners, the hotel is committed to spending KRW 50 million (US$ 36,000) annually as a fixed expense. However, it appears that Shilla Stay gains more from this promotion than it spends. By actively contributing to a social issue, the company has significantly boosted its brand image. Shilla Stay has received praise for its initiatives before. Since 2015, the hotel has been running the “Unexpected Fortune” promotion, offering free accommodations to guests who are unable to fly due to unexpected weather conditions in Jeju. This promotion takes advantage of the frequent flight cancellations caused by sudden weather changes or natural disasters in Jeju, allowing the hotel to offer vacant rooms to guests whose departures have been delayed, along with complimentary breakfast. This initiative was reportedly proposed by Hotel Shilla CEO Lee Boo-jin to Park Sang-oh, CEO of Shilla HM, which operates Shilla Stay. Since 2015, Shilla Stay Jeju has provided more than 200 rooms under this promotion. Recognizing its contribution to improving Jeju’s tourism image, the Jeju Tourism Organization presented Shilla Stay Jeju with a plaque of appreciation. #ShillaStay #HotelShilla #BlessingPromotion #LeeBooJin #hospitalityindustry #brandimage #corporatesocialresponsibility #Koreanhotels #customerloyalty #familyfriendly
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- Samsung Life’s Net Profit Tops KRW 2 Trillion, But Insurance Slows—Hong Won-hak’s Challenge
- Hong Won-hak, President and CEO of Samsung Life Insurance, faces the challenge of improving profitability in the company’s core insurance business this year. Although Samsung Life posted a high net profit of over KRW 2 trillion (US$ 1.44 billion) last year, its core insurance profit declined due to regulatory changes and other factors. While increased investment gains offset the drop in insurance profits, the company has faced criticism for falling short in its primary business of insurance. Since his appointment, Hong has consistently emphasized "insurance beyond insurance," suggesting that he will focus not only on asset management profits but also on strengthening the competitiveness of the core insurance business. According to securities firm reports on the 21st, Samsung Life recorded an insurance profit deficit in the fourth quarter of last year, falling short of market expectations. Kang Seung-geon, a researcher at KB Securities, stated, "Samsung Life’s insurance profit turned negative in the fourth quarter of 2024 due to changes in actuarial assumptions. As a result, its consolidated net profit for the quarter was KRW 64.7 billion (US$ 46.7 million), 70.6% below the market consensus." Citing weaker-than-expected insurance profit, Kang lowered Samsung Life’s target stock price by 4.0% to KRW 120,000 (US$ 86.5). Ahn Young-joon, a researcher at Kiwoom Securities, noted, "About KRW 780 billion (US$ 562 million) of the expenses reflected in fourth-quarter insurance profit were one-time costs. While these losses were caused by regulatory changes and other non-recurring factors, the sharp increase in earnings volatility is concerning." Samsung Life’s annual insurance profit stood at KRW 542 billion (US$ 391 million), reflecting a 62.6% decline from 2023, largely due to the fourth-quarter deficit. Meanwhile, investment profit surged by 104.5% year-on-year to KRW 2.272 trillion (US$ 1.64 billion). After deducting corporate taxes, Samsung Life's net profit for the year exceeded KRW 2 trillion (US$ 1.44 billion). However, the majority of its earnings came from investment gains rather than its core insurance business. During the earnings conference call on the 20th, several questions were raised about insurance profit and profitability. A Samsung Life representative stated, "We understand the market’s concerns as insurance profit declined more than expected due to multiple one-time factors. We aim to achieve over KRW 1 trillion (US$ 720 million) in insurance profit by 2025 by expanding sales of high-profitability health insurance products and strengthening policyholder management." The decline in insurance profit was attributed to various regulatory changes, including improvements in life expectancy estimates for participating annuities, adjustments in the accounting treatment of policy cancellations, modifications in claims incidence assumptions, and differences between expected and actual claims and business expenses. An industry insider commented, "Samsung Life, as the largest insurer in South Korea in terms of policy count and total contract value, is more significantly affected by regulatory changes than other insurers." However, given that Hong has emphasized health insurance sales and product competitiveness since becoming CEO in March 2023, the drop in insurance profit is particularly disappointing. Health insurance is highly profitable under the new IFRS 17 accounting standard, prompting many insurers to prioritize its sales growth. Hong reaffirmed his commitment to expanding Samsung Life’s market share in health insurance by reiterating his initial goal of making the company the industry leader in health insurance across both life and non-life sectors in his 2024 New Year’s address. Samsung Life has also actively pursued product competitiveness, filing the highest number of applications among life insurers for exclusive usage rights in 2023. Exclusive usage rights, granted by the Life and Non-Life Insurance Associations’ New Product Review Committee, provide a temporary monopoly on selling innovative insurance products, serving as a type of patent in the insurance industry. As a result, Samsung Life increased the share of health insurance products in its new contract contractual service margin (CSM), a key indicator of future profitability, to 58% in 2023—up 21 percentage points from the previous year. However, since this only represents a foundation for future profitability rather than immediate earnings, the overall insurance profit remained underwhelming. Recognizing this challenge, Hong stated in his New Year’s address, "Last year, we focused on building momentum for a long jump. This year, we must leverage that momentum to achieve actual long-distance success." Given this context, Hong and Samsung Life are expected to strengthen their core insurance business in 2024 by expanding operations and driving sales growth, particularly in high-margin health insurance. During its earnings announcement, Samsung Life emphasized, "Since last year, we have been increasing sales of high-profitability health products to boost our new contract CSM. By enhancing the competitiveness of our exclusive sales channels and expanding health insurance sales, we aim to achieve over KRW 1 trillion (US$ 720 million) in insurance profit by 2025." #SamsungLife #HongWonHak #insuranceindustry #financialperformance #healthinsurance #IFRS17 #businessstrategy #investmentgains #corporateearnings #Koreanfinance
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- Lotte Global Logistics Faces April IPO Deadline—Kang Byoung-ku Stuck Between Low Valuation and Put Option
- With April approaching as the target deadline for Lotte Global Logistics’ initial public offering (IPO), questions are being raised about whether CEO and Executive Vice President Kang Byoung-ku should proceed as planned, given the company’s low valuation. However, Kang is in a position where he cannot simply cancel the IPO. The second-largest shareholder, private equity firm H Private Equity (H PE), has a put option expiring in April. If the IPO is not carried out, Lotte Global Logistics will have to purchase H PE’s shares at a high price. Proceeding with the IPO risks poor market reception, while canceling it would require more than KRW 300 billion (US$ 216 million) in cash for the put option—putting Kang in a dilemma. According to sources within Lotte Global Logistics on the 20th, the company plans to complete the IPO before H PE’s put option expires in April. However, doubts remain about its success. Kang, who took office as CEO on February 2, 2023, has made laying the foundation for growth through the IPO one of his main objectives. However, after just over a year in office, financial analysts estimate Lotte Global Logistics' corporate value at around KRW 700 billion (US$ 504 million). The financial sector generally considers a valuation of at least KRW 1.6 trillion (US$ 1.15 billion) necessary for a successful IPO. This is closely related to H PE’s put option, which is set to expire in April 2024. The average acquisition cost per share for H PE is KRW 37,337 (US$ 26.92), while the put option strike price is KRW 47,296 (US$ 34.11). The strike price is calculated by applying an annual compound interest rate of 3% to the average acquisition cost. Multiplying the put option strike price of KRW 47,296 by approximately 34 million shares results in a valuation of about KRW 1.6 trillion (US$ 1.15 billion). Financial experts believe that the IPO valuation must exceed this figure for the offering to be considered successful. H PE acquired 7,472,161 shares of Lotte Global Logistics in 2017 for KRW 296 billion (US$ 213 million), securing a 21.87% stake in the company. If the IPO share price is set below KRW 47,300 (US$ 34.12), Lotte Holdings, the largest shareholder, must compensate H PE for the difference between the put option strike price and the public offering price. If Lotte Global Logistics fails to go public by April 2024, when the put option expires, Lotte Holdings and Hotel Lotte will have to purchase H PE’s stake at the predetermined strike price for approximately KRW 353.4 billion (US$ 255 million). However, market analysts believe it will be difficult for Lotte Holdings, which is already experiencing financial strain, to secure KRW 350 billion (US$ 252 million) in cash. As a result, Kang is under pressure to more than double Lotte Global Logistics’ corporate value within the next two months to prevent further cash outflows from Lotte Holdings to H PE. Although achieving such a valuation increase within two months is nearly impossible, Kang is working on enhancing future value by expanding the Global Business Solutions (GBS) segment. Kang has extensive experience in global logistics, having worked at UPS for over 16 years, where he became the first Asian to serve as a Vice President at UPS headquarters. He also led the global division at CJ Logistics from August 2021. Since joining Lotte Global Logistics, Kang has focused on international expansion, including the establishment of a subsidiary in Mexico in the first half of 2023. The company plans to expand cross-border logistics operations through a logistics center near the U.S.-Mexico border and oversee North American distribution of advanced materials from Lotte Chemical. Additionally, the company has been working on strengthening its overseas logistics business by forming strategic partnerships with the French shipping company CMA CGM in April 2024 and the U.S. logistics giant UPS in February 2025. In the first three quarters of 2023, Lotte Global Logistics recorded consolidated revenue of KRW 2.6817 trillion (US$ 1.93 billion), an operating profit of KRW 72.2 billion (US$ 52 million), and a net profit of KRW 34.9 billion (US$ 25 million). Compared to the previous year, revenue declined by 8%, but operating profit and net profit increased by 45% and 144%, respectively. A company representative stated in a call with Business Post, "We are diversifying our business portfolio by stabilizing existing operations while continuously developing new overseas logistics networks and businesses. We are moving forward with the IPO as planned." #LotteGlobalLogistics #KangByoungKu #IPO #logisticsindustry #investment #corporatevaluation #HPrivateEquity #businessstrategy #globalexpansion #LotteGroup
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- Samsung C&T Expands Into Energy, Oh Se-chul Reduces Reliance on Samsung Electronics
- Oh Se-chul, the President and CEO of the E&C Group at Samsung C&T, is accelerating efforts to diversify the company’s order portfolio. In addition to steady progress in urban redevelopment projects, Samsung C&T is actively expanding into the hydrogen energy sector. This strategic move is expected to help sustain order growth despite a decline in construction projects from Samsung Electronics. According to Samsung C&T on the 20th, the company will hold its annual general shareholders' meeting on March 14, where one of the agenda items will be amending its articles of incorporation to add new business objectives. Samsung C&T plans to remove "veterinary business," which was not in operation, and add the following business objectives: △ Research and development support, contract services, and related services for pharmaceuticals △ Online retail intermediation △ Hydrogen power generation and related businesses The addition of "hydrogen power generation and related businesses" is significant for Samsung C&T’s construction division, as it signals an expansion into new business areas. At the beginning of the year, Samsung C&T’s E&C Group underwent a restructuring to prepare for business expansion. The company elevated its former New Growth Business Division to a higher status, reorganizing into five divisions: U&I Business (Architecture & Civil Engineering), Housing Development, High-Tech, and Energy Solutions. The Energy Solutions division was expanded to include a Hydrogen Power Generation division alongside existing power, renewable energy, and nuclear power businesses. Oh's push into the energy sector is seen as a response to declining construction orders from Samsung Electronics. In recent years, Samsung C&T has relied heavily on projects from its affiliate Samsung Electronics to drive earnings. In 2022, Samsung Electronics accounted for KRW 10.9 trillion (US$ 7.9 billion) out of Samsung C&T’s total orders of KRW 16.8 trillion (US$ 12.1 billion). In 2023, Samsung Electronics-related orders increased to KRW 12.2 trillion (US$ 8.8 billion) out of a total of KRW 19.1 trillion (US$ 13.8 billion). However, as Samsung Electronics' major construction projects near completion, order volumes have begun to decline. In 2024, high-tech sector orders fell to KRW 8.2 trillion (US$ 5.9 billion) out of a total of KRW 17.9 trillion (US$ 12.9 billion), reducing their overall share to less than half. For Oh, securing continued business growth for Samsung C&T’s E&C division now requires compensating for declining Samsung Electronics orders by diversifying the company’s portfolio. Another key diversification move is Samsung C&T’s renewed focus on the housing business, an area in which the company had once been rumored to withdraw due to its passive stance. Samsung C&T has set its construction order target for 2024 at KRW 18.6 trillion (US$ 13.4 billion), up from KRW 17.9 trillion (US$ 12.9 billion) in 2023. While the order target from Samsung Electronics has been lowered to KRW 6.7 trillion (US$ 4.8 billion) from the previous year’s KRW 8.2 trillion (US$ 5.9 billion), goals for urban redevelopment and new business projects have been raised. Oh has already achieved significant progress in urban redevelopment, strengthening Samsung C&T’s portfolio diversification efforts. In January, Samsung C&T secured the Hannam District 4 redevelopment project after competing with Hyundai E&C. More recently, the company was selected as the preferred bidder for the Shinbanpo 4th Reconstruction Project, effectively securing the contract. With these consecutive large-scale urban redevelopment orders, Samsung C&T secured more than half of its KRW 5 trillion (US$ 3.6 billion) annual target for urban redevelopment orders before the first quarter even ended. In the Energy Solutions division, Samsung C&T plans to focus on securing orders for hydrogen power generation, solar power, and small modular reactors (SMRs) this year. The company is advancing solar power and battery energy storage system (BESS) projects in Australia and the Middle East, while working on SMR front-end engineering design (FEED) projects in Romania. In hydrogen power generation, Samsung C&T is participating in a pre-FEED project in Salalah, Oman, and is involved in a national research project for nuclear-powered hydrogen production in South Korea. With global electricity demand on the rise, energy infrastructure projects—including hydrogen power—are expected to see continued growth, bolstering positive outlooks for Samsung C&T’s expansion in this area. Domestically, Hyundai E&C is also amending its articles of incorporation at its upcoming general shareholders' meeting to include hydrogen energy as a new business objective, following Samsung C&T’s lead. Han Byung-hwa, a researcher at Eugene Investment & Securities, commented on Samsung C&T’s shift in strategy, stating, "The company is moving away from a business model heavily dependent on Samsung Electronics. Despite the continued decline in high-tech orders, various other business segments are experiencing growth." #OhSechul #SamsungC&T #SamsungE&C #SamsungElectronics #construction #hydrogenenergy #urbanredevelopment #renewableenergy #SMR #businessdiversification
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- FSS Labels IBK’s Loan Fraud as ‘Serious,’ Kim Sung-tae Faces Turbulent Final Year
- Kim Sung-tae, the CEO of the Industrial Bank of Korea (IBK), is facing criticism over "weak internal controls" following a major improper loan scandal that erupted early this year. This is the first financial fraud case of this scale at IBK in over a decade, involving hundreds of billions of won. The scandal undermines Kim’s longstanding emphasis on "flawless internal controls." Financial regulators have also strongly criticized IBK’s lax credit management, taking a firm stance on the issue. Kim is now in the final year of his three-year term as CEO, making the need for organizational reform even more urgent and critical. According to the financial sector on the 20th, the Financial Supervisory Service (FSS) is expected to conclude its on-site investigation into IBK’s KRW 24.0 billion (US$ 17.3 million) improper loan case this week. The FSS has been conducting an intensive investigation, sending personnel not only to IBK’s Gangdong branch—where the loans were issued—but also to the bank’s headquarters. The FSS has extended the investigation period multiple times, scrutinizing IBK’s internal records for over a month. Industry insiders believe the total amount of improper loans at IBK could be significantly higher than the disclosed figure. Previously, during a comprehensive inspection of Woori Bank, the FSS uncovered an additional KRW 38.0 billion (US$ 27.4 million) in improper loans involving employees, in addition to the KRW 35.0 billion (US$ 25.2 million) scandal linked to former Woori Financial Group Chairman Sohn Tae-seung’s relatives. This latest financial fraud case involved a former IBK employee, now engaged in real estate development, who colluded with several employees from multiple branches in Seoul’s Gangdong District. The scheme inflated real estate collateral values, leading to excessive loan approvals. IBK’s internal audit first uncovered the fraud. The fraudulent scheme lasted over two and a half years, from June 2022 to November 2024, with the publicly disclosed amount reaching KRW 23.95 billion (US$ 17.3 million). During the FSS investigation, it was also found that improper loans had been extended to relatives of IBK employees involved in the case. There were also reports that some current employees received entertainment, including golf outings, from those linked to the scheme. Since taking office as IBK’s CEO in 2023, Kim has emphasized "a strong bank, upright finance" as his management philosophy, advocating for rigorous internal controls. At a press conference marking his first 100 days in office, he outlined plans to establish a three-pronged internal control system—focusing on people, processes, and technology—to eliminate financial fraud and continuously enhance oversight. Just days before the bank publicly disclosed this financial scandal, Kim reiterated in his New Year's address: "With financial fraud incidents increasing across the banking sector, IBK must remain vigilant and actively work to prevent such cases. The trust we have built with our customers through years of effort can easily collapse due to a single financial fraud case." However, as it becomes clear that large-scale, systemic financial fraud has persisted throughout Kim’s tenure, he is now facing scrutiny over his effectiveness in managing internal controls as IBK’s top executive. This is IBK’s largest financial fraud case in over a decade. The last case of this magnitude occurred in 2014 when IBK became entangled in a KRW 150.8 billion (US$ 108.7 million) loan fraud scandal involving home appliance company Monuel. At the time, Monuel conspired with overseas importers to falsify export documents and sell fake accounts receivable to six banks, including IBK. Since the Monuel case, IBK had not experienced any financial fraud incidents exceeding KRW 10.0 billion (US$ 7.2 million) over the past decade—until now. Excluding the latest case, all financial fraud cases publicly disclosed under Kim’s leadership in 2023 (five cases) and 2024 (seven cases) involved amounts below KRW 1.0 billion (US$ 721,200). Financial regulators are taking a tough stance on IBK’s improper loan scandal. Authorities have been emphasizing the responsibility of bank executives to reform corporate culture and implement effective internal control systems, particularly amid a series of banking sector fraud cases that have surfaced since last year. This has heightened pressure on IBK. FSS Governor Lee Bok-hyun has repeatedly expressed serious concerns over IBK’s loan fraud case in public statements. During a National Assembly committee meeting on the 18th, Lee stated, "While the investigation is still ongoing and I cannot disclose specific details or figures, we see this case as more than just the misconduct of a few employees. It reflects fundamental and structural issues." Speaking to reporters after a meeting with bank CEOs the previous day, Lee added, "IBK’s issues stem from excessive leniency and an expansionist mindset. We view this case with great seriousness and intend to hold those responsible fully accountable." Industry insiders believe that if the FSS concludes its on-site investigation at IBK on the 21st without further extensions, the results could be announced sooner than expected. Unlike the FSS’s comprehensive inspections of Woori Bank and KB Kookmin Bank, the IBK investigation was not a full-scale audit. Additionally, Governor Lee’s term ends in June, suggesting the agency may expedite the announcement. An IBK representative stated, "Based on the findings of the FSS audit, we will take all necessary measures to prevent financial fraud from recurring. This includes improving our credit approval processes and continuously providing fraud prevention education for employees." #KimSungtae #IBK #IndustrialBankofKorea #financialfraud #internalcontrols #bankingregulations #creditmanagement #loanfraud #FSS #businessethics
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- Kim Dong-seon Bets on Semiconductor Equipment, Hanwha Semitech Targets Next-Gen HBM Packaging
- Kim Dong-seon, Vice President of Hanwha Galleria, has been struggling with weak performance in the retail sector. In an effort to turn things around, he has taken on the role of Head of Future Vision at semiconductor equipment company Hanwha Semitech without compensation, betting on the semiconductor equipment business for a breakthrough. Kim is expected to accelerate investments in Hanwha Semitech to prove his management capabilities in the rapidly growing semiconductor equipment sector, which is expanding alongside the AI semiconductor market. In particular, he is likely to focus on next-generation "hybrid bonding" packaging equipment, which has been under joint development with SK Hynix since 2021. According to industry sources on the 20th, as Hanwha Group’s management succession process has accelerated since last year, Kim Dong-seon—the third son of Hanwha Chairman Kim Seung-youn—has been shifting his focus to the semiconductor equipment business to offset losses in the retail sector. Hanwha Group’s ownership structure includes a 22.65% stake held by Chairman Kim Seung-youn and a 22.16% stake held by Hanwha Energy, which is fully owned by Kim's three sons. Eldest son Kim Dong-kwan, Vice Chairman of Hanwha Group, oversees the defense, renewable energy, and shipbuilding businesses. Second son Kim Dong-won, President of Hanwha Life, leads the financial sector, while third son Kim Dong-seon manages Hanwha Galleria and the retail division. Since his appointment as Vice President of Hanwha Galleria in November 2023, Kim Dong-seon has struggled to deliver strong results. In 2023, Hanwha Galleria recorded an operating profit of KRW 3.1 billion (US$ 2.2 million) and a net loss of KRW 18.8 billion (US$ 13.6 million). Operating profit fell by 68.1% year-on-year. On February 10, he took on the role of Head of Future Vision at Hanwha Semitech without compensation. Along with this appointment, the company changed its name from Hanwha Precision Machinery to Hanwha Semitech. On February 19, at "Semicon Korea 2025" held at COEX in Samseong-dong, Seoul, Kim stated, "We may be a latecomer in the backend processing sector, including high-bandwidth memory (HBM) TC bonders, but the key to market competitiveness lies in innovation. We will spare no expense in investing in new technologies." The semiconductor equipment business is growing alongside the AI semiconductor market, with demand for equipment essential for HBM—a crucial component for AI semiconductors—rising rapidly. Hanwha Semitech is gaining attention in the next-generation semiconductor packaging equipment market, competing with Hanmi Semiconductor, which has risen to prominence by supplying TC bonder packaging equipment for HBM production to SK Hynix. The company has been developing equipment for "hybrid bonding" technology with SK Hynix since 2021. Hybrid bonding is a technique that directly connects chips without bumps, combining the advantages of direct bonding and copper bonding. This technology significantly improves power efficiency and performance, making it essential for next-generation HBM4. During his keynote speech at "Semicon Korea 2025," Bill En, Vice President of AMD, stated, "If power supply does not increase, we will need to allocate as much electricity as the entire city of Seoul just to power data centers. Hybrid bonding packaging technology, which enhances power efficiency by increasing chip density, is essential." Given Hanwha Semitech’s collaboration with SK Hynix—an industry leader in HBM—for the development of hybrid bonding equipment for HBM4E, the company is expected to increase its equipment supply in 2025 and 2026. SK Hynix currently supplies fifth-generation HBM3E to NVIDIA and has reportedly secured deals to supply sixth-generation HBM4. However, as the HBM manufacturing equipment market grows, competition is intensifying. Hanmi Semiconductor, which has long supplied HBM equipment to SK Hynix, plans to introduce a new hybrid bonding packaging machine next year. Singapore-based semiconductor equipment manufacturer ASMPT has also been supplying packaging equipment to SK Hynix since last year. Additionally, Austria's EV Group and the Netherlands' Besi are developing related equipment, aiming to supply both SK Hynix and Samsung Electronics. Another challenge for Hanwha Semitech is its ongoing legal battle with Hanmi Semiconductor. In December 2023, Hanmi Semiconductor filed a lawsuit against Hanwha Precision Machinery (now Hanwha Semitech) with the Seoul Central District Court, alleging patent infringement related to HBM TC bonder modules. Founded in 1989, Hanwha Semitech was the first company in South Korea to develop a chip mounter. It manufactures semiconductor equipment, machine tools, and industrial equipment. In 2023, the company’s revenue fell by 25% year-on-year to KRW 390.4 billion (US$ 281.4 million), while it recorded an operating loss of KRW 44.3 billion (US$ 31.9 million). #KimDongseon #HanwhaSemitech #HanwhaGalleria #HanwhaGroup #semiconductor #AIsemiconductor #HBM #hybridbonding #SKHynix #semiconductorequipment
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- Hancom Kicks Off AI Solution Monetization, Kim Yeon-su Bets on Korean AI in Japan and Europe
- Kim Yeon-su, CEO of Hancom, has initiated the monetization of the company’s proprietary artificial intelligence (AI) solutions. In addition to targeting the domestic market, Hancom is also laying the groundwork for expansion into Japan and Europe to tap into the global AI market. If the commercialization of AI solutions progresses both domestically and internationally, Hancom is expected to accelerate its transformation from a document-based software company into a tech company centered on AI business. According to Hancom on the 19th, the company is expanding its pool of Proof of Concept (PoC) participants, optimizing its proprietary AI solutions to fit the needs of various institutions and enterprises. Currently, Hancom is conducting PoC projects with over 20 public institutions and private companies, including Gyeonggi Provincial Government, Korea Electric Power Corporation, and BGF Retail. The company plans to increase the number of participating organizations. The PoC strategy is seen as a way to overcome the challenge of being a latecomer in the AI solutions market. Hancom has yet to complete one full year since the official launch of its AI solutions. The AI-powered document data extraction software development kit, "Hancom Data Loader," was launched in April last year, while "Hancom Docs AI," which integrates generative AI into the Hancom Docs web office service, was released in September 2024. Additionally, Hancom introduced the AI-based Q&A solution "Hancompedia" and the intelligent AI-assisted document creation tool "Hancom Assistant" in December last year. Under these circumstances, Kim believes that providing organizations and enterprises with direct experience of AI solutions and tailoring the products to their needs will accelerate client acquisition. A company representative told Business Post, "If institutions and companies find the solutions effective after using them, they may transition from pilot projects to full-scale implementation. We expect this approach to drive AI-related revenue." Hancom is also working on monetization through partnerships with major corporations. On February 12, Hancom, in collaboration with Samsung SDS, secured a contract for the National Assembly's big data platform project, supplying its Hancompedia solution. This marks the first major achievement since Hancompedia’s launch in December last year. Hancom aims to solidify its reputation by demonstrating the performance of its AI solutions through public sector projects and leveraging this credibility to secure additional contracts. Kim is also laying the foundation for AI solution sales in Japan and Europe. In October last year, Hancom established a Japanese subsidiary to serve as a regional base for market expansion. The company is currently hiring staff for the subsidiary. At the same time, Hancom showcased its AI solutions at Japan's largest IT exhibition, "Japan IT Week Autumn." Kim plans to focus on public institutions in Japan, mirroring the company’s domestic strategy, to expand AI solution sales channels. For the European market, Hancom is pursuing expansion by leveraging local AI companies. In March last year, Hancom acquired a stake in the Spanish AI biometrics firm Facephi, becoming its second-largest shareholder. The company is also collaborating with the French generative AI developer Mistral AI. Kim plans to leverage these companies' local networks and technological expertise to enhance Hancom’s AI solutions and expand its customer base. Hancom expects that the European Union’s (EU) increasing regulations on U.S. big tech companies could create favorable opportunities for its AI solutions in the European market. The company is also planning to develop AI solutions in an "add-on" format, allowing integration with other companies’ products to cater to local business demands and expand its customer base. Lee Seung-hoon, a researcher at IBK Investment & Securities, commented, "Hancom's AI technology advancements and overseas expansion efforts present a strong growth momentum." #KimYeonsu #Hancom #AI #artificialintelligence #Hancompedia #HancomDocsAI #SamsungSDS #Facephi #MistralAI #Japan #Europe
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- Hyundai E&C Eases Credit Rating Concerns—Lee Han-woo Excels in Orders but Faces PF Challenges
- Lee Han-woo, CEO of Hyundai Engineering & Construction (E&C), appears to be overcoming concerns about a potential credit rating downgrade after clearing out large-scale financial risks. Lee has been demonstrating Hyundai E&C’s strong order-winning capabilities, which have been a key factor in its credit rating assessments, by securing a series of major contracts early in the year. However, some analysts point out that strengthening project financing (PF) capabilities for non-commenced projects remains a challenge. According to Hyundai E&C on the 19th, the company will conduct a demand forecast on the 20th for a KRW 150 billion (US$ 108.2 million) corporate bond issuance. Hyundai E&C plans to issue KRW 60 billion (US$ 43.3 million) in two-year bonds, KRW 70 billion (US$ 50.5 million) in three-year bonds, and KRW 20 billion (US$ 14.4 million) in five-year bonds, with the possibility of increasing the total issuance to KRW 300 billion (US$ 216.5 million) based on demand forecast results. The bonds are scheduled to be issued on the 27th. The company intends to use the proceeds from this bond issuance entirely to repay KRW 330 billion (US$ 238.4 million) in debt maturing in February. Lee has effectively dispelled concerns about a possible credit rating downgrade in the credit evaluation conducted ahead of the bond issuance. On the 17th, Korea Ratings and Korea Investors Service maintained Hyundai E&C’s unsecured bond credit rating and outlook at "AA-/Stable." Following Hyundai E&C’s recent "big bath" decision—where large losses were recognized in the latest earnings report—concerns had emerged that its credit rating could decline, impacting borrowing costs and financial stability. On January 22, the day Hyundai E&C announced its earnings, Korea Ratings released a report stating that it would incorporate the company’s financial performance, debt levels, and business competitiveness into future credit rating assessments. Additionally, the uncertain performance of its subsidiary, Hyundai Engineering, was identified as a negative factor affecting Hyundai E&C’s creditworthiness. Korea Investors Service, which assesses Hyundai Engineering’s credit rating, maintained its corporate credit rating at "AA-" on the same day but downgraded its outlook from "Stable" to "Negative." Both rating agencies cited Hyundai E&C’s strong order-winning capabilities as the primary reason for maintaining its credit rating amid the bond issuance. Lee has reinforced this by securing multiple large-scale contracts in quick succession. Hyundai E&C recently won two major mixed-use development construction contracts worth over KRW 1 trillion (US$ 721.2 million) each, securing a total project backlog of more than KRW 2.8 trillion (US$ 2.02 billion) at once. On the 13th, the company signed a contract worth KRW 1.1878 trillion (US$ 856.4 million) for the "Millennium Hilton Hotel Site Redevelopment and Demolition Project" near Seoul Station. On the 18th, it secured a KRW 1.6267 trillion (US$ 1.17 billion) contract for the "Gayang-dong CJ Site Office Complex Construction Project." Although Hyundai E&C has historically participated as an investor in various mixed-use development projects, these latest contracts reaffirm that it continues to secure large-scale projects without issue. The company is also involved in multiple semi-independent projects, including the Bokjeong Station Area Development Project, Korea’s largest mixed-use complex with a total floor area of 510,000 pyeong (approximately 1.69 million square meters). Given that the entire project is estimated to cost KRW 12 trillion (US$ 8.65 billion), Hyundai E&C is expected to secure additional large-scale contracts. Internationally, Hyundai E&C has also started the year by leveraging its recognized expertise to secure new overseas contracts. This follows concerns that the company might face greater uncertainty in project execution and new orders after clearing out financial risks related to overseas business operations. Recently, Hyundai E&C won two 380kV transmission line construction projects from the Saudi Electricity Company (SEC), valued at a total of KRW 512.5 billion (US$ 370 million). These projects involve building transmission lines in the Medina and Jeddah regions of Saudi Arabia. The projects were awarded through a competitive bidding process limited to a select group of invited companies. Despite undergoing a major financial risk clean-up during the bidding process, Hyundai E&C successfully secured the project, reinforcing its position in Saudi Arabia’s power grid sector. This follows its record-high KRW 1 trillion (US$ 721.2 million) contract in 2023 for the "Riyadh-Qudmi 500kV HVDC Transmission Line Project," further demonstrating its technical excellence and business capabilities. However, Lee still faces the challenge of strengthening project financing (PF) risk management. Hyundai E&C has provided financial guarantees, capital supplements, and other credit support for multiple development projects. The accumulated PF guarantees require close monitoring. According to the credit rating industry, Hyundai E&C’s PF guarantees for construction projects stood at KRW 5.6 trillion (US$ 4.04 billion) as of the end of last year. Of this, around 80% involved non-commenced projects, which could impact the company’s financial stability depending on whether they transition to full PF funding. Positively, about 97% of these non-commenced projects are located in Seoul, and the successful transition of the Gayang-dong CJ Site Development Project to full PF funding has reduced Hyundai E&C’s bridge loan guarantees from KRW 4.2 trillion (US$ 3.03 billion) a year ago to KRW 1.7 trillion (US$ 1.22 billion). However, around 70% of these non-commenced projects involve non-residential properties such as knowledge industry centers and office-tels, which remain vulnerable due to the ongoing downturn in the real estate market. Korea Ratings has highlighted the need to monitor Hyundai E&C’s PF-related risks, stating, "A significant portion of the non-commenced projects consists of non-residential properties, which could pose potential risks in terms of sales. If adverse external conditions persist or financial costs accumulate, delays in project execution or poor sales performance could increase contingent liabilities from PF guarantees and the risk of uncollected construction payments." Lee is expected to focus on risk reduction through Hyundai E&C’s newly established PF risk management team. In the fourth quarter of last year, Hyundai E&C formed the "PF Risk Management Committee" to develop a comprehensive oversight system. Through this new committee, the company aims to establish and revise its internal PF operation policies, set management standards, and oversee credit support, equity investments, total exposure limits, and risk levels by project type and region. Hyundai E&C has also decided to report its PF management framework, operational policies, annual operational limits, and quarterly management status to the board regularly. A Hyundai E&C official stated, "To optimize financial resource allocation and enhance risk management, we are redefining our PF operational standards and decision-making processes while strengthening communication on PF management. Through these efforts, we aim to increase corporate value and investor confidence." #HyundaiEngineering&Construction #LeeHanwoo #creditrating #corporatebonds #projectfinancing #construction #infrastructure #SaudiArabia #realestate #businessstrategy
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- Samsung Galaxy S25's Success Spells Doom for Exynos? Roh Tae-moon Weighs Cost Efficiency vs. Performance
- Samsung Electronics is reportedly pushing to reintroduce its in-house mobile processor (AP), Exynos, in the foldable smartphones set for release this summer and the Galaxy S26 series launching next year. Exynos was excluded from the Galaxy S25 series, which was released in January 2024, with all models equipped solely with Qualcomm’s Snapdragon processors. As the Snapdragon-powered Galaxy S25 series received positive reviews and strong sales, there is growing speculation that Exynos, which has been criticized for its lower performance, may be excluded from Samsung’s future smartphones. Roh Tae-moon, president and head of Samsung Electronics' Mobile eXperience (MX) Division, faces a dilemma: reducing smartphone production costs by using Samsung’s in-house AP versus the risk of lower sales due to Exynos' weaker performance. According to industry sources on February 18, Samsung is expected to equip the Galaxy Z Flip 7 and Galaxy Z Flip FE, scheduled for release in July 2024, with the Exynos 2500. Additionally, Samsung is reportedly considering using the Exynos 2600, produced with its own 2nm foundry process, in the Galaxy S26 series next year. However, concerns are rising that if the Exynos AP is used in future models, it could negatively impact sales, as the Galaxy S25 series, powered entirely by Qualcomm’s Snapdragon 8 Elite, is expected to set record-breaking sales. KB Securities has projected that Galaxy S25 series shipments will reach 37 million units in 2024, the highest since the Galaxy S7 in 2016, which sold 49 million units. This would represent a 6% increase from Galaxy S24 series sales and surpass the global smartphone market’s growth rate of 3%. Analysts suggest that while software improvements, such as better AI capabilities and OS enhancements, contributed to the Galaxy S25 series' success, the exclusive use of Qualcomm’s AP played a crucial role. In fact, when comparing the Galaxy S25 base model to the Galaxy S24, their hardware specifications are almost identical, with the same battery capacity, resolution, display, and camera sensors. The only differences are a 6g weight reduction and a slightly rounder design. The only major distinction is that the Galaxy S24 series used both the Exynos 2400 and Snapdragon 8 Gen 3, depending on the region. Furthermore, Samsung’s Galaxy AI and OS updates were made available to previous Galaxy S24 and S23 models, allowing users to access new features without upgrading to the Galaxy S25. This suggests that the full adoption of Qualcomm APs was a major factor in the Galaxy S25’s strong sales. As a result, the more successful the Galaxy S25 series becomes, the weaker the market position of Exynos APs may become. Samsung’s Exynos series has been perceived as inferior in performance compared to Qualcomm’s Snapdragon and Apple’s A-series APs. In late 2023, benchmark scores from Geekbench 6 showed the Exynos 2500 with a single-core score of 2,358 and a multi-core score of 8,211. In comparison, the Snapdragon 8 Elite scored 3,196 (single-core) and 11,115 (multi-core), meaning Exynos 2500 performed 36% lower in single-core and 19% lower in multi-core. It also fell 32% and 4% behind Apple’s A18 Pro in the respective categories. Despite this, Roh Tae-moon is considering Exynos due to its significant cost-saving potential. The AP accounts for more than 20% of smartphone production costs. According to a Samsung insider (tipster), the Exynos 2400 used in the Galaxy S24 costs only $30 (KRW 41,610) per unit, while the Snapdragon 8 Elite costs $190 (KRW 263,530)—over six times more. Moreover, Qualcomm has been increasing AP prices by 20-30% annually. Since Samsung’s MX division has been unable to utilize its cheaper in-house APs, its operating profit margin has declined from 10.75% in 2023 to 9.04% in 2024. To reduce costs, Roh initially planned to use the Exynos 2500 in the Galaxy S25 series, but due to poor yield rates in Samsung’s 3nm foundry process, the plan was ultimately scrapped. #Samsung #GalaxyS26 #GalaxyS25 #Exynos #Snapdragon #RohTaeMoon #MobileExperience #Smartphones #Foundry #Qualcomm #SamsungElectronics
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- Semiconductor Crisis, Legal and Legislative Risks Weigh on Samsung's Lee Jae-yong
- Lee Jae-yong, chairman of Samsung Electronics, has yet to fully escape his "legal risks" and now faces increasing pressure from "legislative risks" as well. With the 22nd National Assembly reintroducing the Insurance Business Act amendment—commonly known as the "Samsung Life Insurance Bill"—there are renewed concerns that Lee’s control over Samsung Group could weaken. Amid an increasingly challenging global business environment, including declining semiconductor competitiveness and policy shifts in the U.S., governance issues are now surfacing as another major challenge for Lee. According to industry sources on February 18, Representative Cha Kyu-geun of the National Innovation Party proposed the Samsung Life Insurance Bill on February 17, raising the possibility of significant changes to Samsung Group’s governance structure. The proposed amendment would require insurance companies to limit their holdings of affiliate stocks to 3% of total assets based on "market value" rather than "acquisition cost." The intent is to prevent excessive investment in affiliates that could undermine the financial health of insurance companies. Samsung Life Insurance currently holds an 8.51% stake in Samsung Electronics. While its acquisition cost is only KRW 540.1 billion (US$ 389.5 million), the stake’s market value, based on the February 18 closing price, is approximately KRW 29 trillion (US$ 20.9 billion). Samsung Life Insurance’s total assets stood at KRW 319.8 trillion (US$ 230.6 billion) as of 2024. If the amendment passes, Samsung Life Insurance would be required to sell about KRW 19 trillion (US$ 13.7 billion) worth of Samsung Electronics shares, exceeding the 3% total asset limit. Currently, Samsung C&T, where Lee Jae-yong is the largest shareholder, holds a 19.34% stake in Samsung Life Insurance and a 5.01% stake in Samsung Electronics. Additionally, Samsung Life Insurance (8.51%) and Samsung Fire & Marine Insurance (1.49%) collectively own 10% of Samsung Electronics. This forms a governance structure of "Lee Jae-yong → Samsung C&T → Samsung Life Insurance → Samsung Electronics → Other Affiliates." The combined Samsung Electronics stake held by the controlling Lee family, Samsung Life Insurance, Samsung Fire & Marine Insurance, and Samsung C&T currently stands at 20.07%. However, if the amendment takes effect, their collective ownership is expected to fall below 15%. Ahn Young-joon, an analyst at Kiwoom Securities, stated, "The Samsung Life Insurance Bill was first introduced in the 19th National Assembly in 2014 and has been reintroduced in the 20th, 21st, and now 22nd National Assembly. Samsung continues to face pressure to reform its governance structure." Some industry observers suggest potential responses to maintain the Lee family’s control, such as Samsung C&T purchasing Samsung Electronics shares from Samsung Life Insurance or Samsung Electronics repurchasing its own shares from Samsung Life Insurance. However, analysts argue that neither scenario would significantly enhance the Lee family's control. Samsung Group’s governance structure has long been an unresolved issue. Now, with Samsung Electronics facing a severe semiconductor crisis, governance concerns could add to Lee’s challenges in shaping his management strategy. Samsung Electronics is experiencing the worst crisis in its semiconductor business since its founding. In the memory sector, the company has lost its leadership in high-bandwidth memory (HBM) to competitors. Additionally, its foundry and System LSI divisions posted a combined operating loss of KRW 5.18 trillion (US$ 3.73 billion) in 2024, dragging down overall profitability. Meanwhile, Chinese competitors such as ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC) are rapidly catching up, raising concerns that Samsung Electronics could lose more market share. Adding to these challenges, the potential return of U.S. tariffs under the Trump administration and changes to semiconductor subsidy conditions introduce further unpredictability, making Lee’s leadership and strategic decision-making more critical than ever. However, Lee still awaits the Supreme Court's final ruling on the "Cheil Industries-Samsung C&T Merger Case," and the company’s governance structure remains vulnerable, making it difficult for him to take full control in addressing these issues. Due to his ongoing legal risks, Lee’s expected return as a registered director in March has also been postponed. An industry insider commented, "Samsung Electronics faces numerous hurdles in restoring its past competitiveness. With growing external uncertainties and Lee still awaiting a Supreme Court ruling, his ability to act freely remains limited." #LeeJaeYong #Samsung #SamsungElectronics #corporategovernance #semiconductor #SamsungLifeInsurance #HBM #foundry #USChinaTrade #businessstrategy #Koreanbusiness
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- Coupang Evolves from "E-Commerce Giant" to "Retail Giant," Bom Kim Surpasses KRW 40 Trillion in Revenue
- Coupang appears to be on the verge of transitioning from an "e-commerce giant" to a "retail giant." The securities industry predicts that Coupang surpassed KRW 40 trillion (US$ 28.9 billion) in revenue last year. At a time when consumer sentiment remains weak due to high inflation, no other retailer has posted results comparable to Coupang. According to forecasts from both U.S. and South Korean financial analysts as of February 18, Coupang's 2024 revenue likely exceeded KRW 40 trillion (US$ 28.9 billion). The company is set to announce its fourth-quarter results on February 25 at 5:30 p.m. U.S. Eastern Time. The market’s primary focus is on the scale of Coupang's full-year performance, including its Q4 results. Coupang's revenue for the first three quarters of 2024 totaled $22.3 billion, equivalent to more than KRW 30 trillion (US$ 21.6 billion). With each quarter generating over KRW 10 trillion (US$ 7.2 billion) in revenue, if this trend continued through Q4, surpassing KRW 40 trillion (US$ 28.9 billion) in annual revenue would not be an issue. Despite concerns that political uncertainties—such as President Yoon Suk Yeol’s declaration of martial law and the resulting impeachment crisis—might dampen consumer sentiment, many expect Coupang’s performance to remain resilient due to its online platform model. Indeed, forecasts compiled by Yahoo Finance and U.S. financial analysts suggest that Coupang's 2024 revenue reached $30.32 billion, representing a 24.3% year-over-year increase and exceeding KRW 40 trillion (US$ 28.9 billion). Coupang’s achievement of KRW 40 trillion (US$ 28.9 billion) in revenue is significant on its own, but it stands out even more when compared to the struggles of other South Korean retailers last year. For example, Lotte Group, a major player in the domestic retail sector, saw revenue declines at its key subsidiaries: Lotte Department Store and Lotte Mart/Super reported year-over-year drops of 1.6% and 3.8%, respectively. Meanwhile, Lotte ON, the group's e-commerce platform created to compete in online retail, saw its revenue decline by 11.3%. Shinsegae Group faced similar challenges. Its discount store chain, E-Mart, saw total revenue drop 3.5% compared to 2023. Although Shinsegae Department Store posted a 2.8% revenue increase, the absolute revenue gained was only about half of E-Mart’s losses. Hyundai Department Store's revenue growth also remained sluggish, with a 1.3% increase in 2024. The performance of e-commerce platforms also deteriorated. 11st recorded revenue of KRW 428 billion (US$ 308.6 million) for the first three quarters of 2024, down 28.9% from the same period in 2023. Similarly, Shinsegae Group’s e-commerce platforms, SSG.com and Gmarket, saw their revenue decline by 6.1% and 19.7%, respectively. Excluding Coupang and Naver—widely considered the two dominant platforms in the e-commerce industry—very few retail channels managed to sustain growth. Naver's commerce division maintained steady growth throughout all four quarters, achieving an annual revenue growth rate of 14.8%. Even compared to Naver, Coupang’s commerce division is expected to report a growth rate about 10 percentage points higher. South Korea’s largest e-commerce company, Coupang, is set to redefine its status in the industry once its 2024 earnings are released, solidifying its position as a "retail giant" rather than just an "e-commerce giant." Bom Kim, the Chairman of the Board and CEO of Coupang Inc. (Coupang’s parent company), has consistently emphasized during earnings calls that Coupang still has a long way to go, citing the fact that its share of the total retail market remains in the single digits. The retail market Kim refers to encompasses not just e-commerce but also department stores, discount stores, supermarkets, and duty-free shops—essentially the total value of all retail sales. In reality, Coupang's market share in 2024 was estimated to be between 7% and 9%. However, if Coupang's revenue surge continues while other retail channels struggle, the landscape could shift. Some analysts suggest that Coupang's market share could soon break past the 10% threshold, which would render Kim’s "single-digit market share" argument obsolete. There are also concerns that Coupang’s rapid revenue growth could place additional pressure on Kim. Many analysts believe that his decision to reference market share across all retail channels, rather than focusing solely on the e-commerce sector, was a strategic move aimed at reducing regulatory scrutiny from competition authorities. Coupang has faced numerous disputes with leading industry players, including LG Household & Health Care and CJ CheilJedang, often encountering accusations of abusing its "dominant market position." However, Coupang has consistently countered these claims by arguing that its total market share remains in the single digits, preventing it from being classified as a dominant market player. #Coupang #BomKim #ecommerce #retail #SouthKorea #businessgrowth #marketshare #competition #Naver #Koreanretail
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- SK Telecom CEO Ryu Young-sang Expands AI Agent Business Through Global Alliance
- SK Telecom CEO Ryu Young-sang is enhancing collaboration with the Global Telco AI Alliance (GTAA), a coalition of telecom companies from various countries. His strategy involves forming alliances with telecom operators in countries such as Germany and Japan to localize AI services. This approach is seen as a way to overcome SK Telecom’s disadvantage as a latecomer in the global AI agent market. However, SK Telecom’s AI agent "A.ESTER," which is set to launch commercially in North America later this year, will have to compete with major U.S. tech companies like Google and OpenAI. Industry attention is focused on whether SK Telecom can establish a foothold in the AI agent market through GTAA. According to industry sources on February 17, the third Global Telco AI Roundtable will take place from March 3 to 6 during Mobile World Congress (MWC) 2025 in Barcelona, Spain. GTAA, led by SK Telecom, was established in November 2023 to drive AI innovation in the telecom sector. Its members include Deutsche Telekom, e&, Singtel, and SoftBank. This year’s roundtable, sponsored by SK Telecom, will be held under the theme "Redefining Boundaries: Unlocking Potential Through AI-Based Services and Infrastructure." Discussions will focus on innovative AI-driven business models, with particular attention on A.ESTER, which is preparing for its North American launch. SK Telecom prepares to launch A.ESTER in North America At CES 2025 in Las Vegas this past January, SK Telecom announced that it would introduce a beta version of A.ESTER in the U.S. in March, followed by a full commercial rollout later in the year. The company also plans to expand the service to other countries starting next year. At the time, SK Telecom described A.ESTER as more than just a simple Q&A or search tool, stating that it will actively assist users by performing tasks such as making reservations and executing service requests. GTAA collaboration is key to SK Telecom’s global AI strategy Experts emphasize that GTAA partnerships are essential for SK Telecom’s global AI expansion. While the company has already secured 8 million domestic users for its AI agent service "A.", it remains a late entrant in the global market. To strengthen A.ESTER’s localization and competitiveness, SK Telecom must collaborate with Deutsche Telekom (Germany), e& (Middle East), Singtel (Singapore), and SoftBank (Japan), among others. Lee Jae-shin, Head of AI Growth Strategy at SK Telecom, reaffirmed this strategy during the Q4 earnings conference call on February 12, stating, "We are advancing the A.ESTER project in parallel with partnerships through GTAA, which holds significant potential for AI agent applications." A.ESTER faces tough competition from Google and OpenAI Despite SK Telecom’s efforts, industry analysts point out that A.ESTER lacks clear differentiation from AI agents developed by global tech leaders like Google and OpenAI, as well as Chinese AI firms. On January 23, OpenAI introduced “Operator,” an AI agent that can autonomously handle tasks such as booking accommodations, making reservations, ordering deliveries, and shopping—features similar to A.ESTER. Meanwhile, Google is developing "Jarvis," an AI agent designed to assist users with product purchases, reservations, and data collection. Given that Google and OpenAI are already well-established among U.S. consumers, SK Telecom’s limited brand presence in North America could make it difficult to compete. The U.S. telecom industry media Light Reading commented, "Major players like Google have already invested billions of dollars in the AI market, making A.ESTER’s future uncertain. It remains unclear how much space will be left for smaller AI providers." #SKTelecom #AI #AESTER #GTAA #Google #OpenAI #TelecomAI #MWC2025 #ArtificialIntelligence #BigTech
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- Chey Tae-won Continues SK’s Non-Core Asset Rebalancing, Focuses on AI and Semiconductor-Driven Growth
- Chey Tae-won, Chairman of SK Group, is continuing the "rebalancing" process through the sale of non-core assets and restructuring of subsidiaries, following similar efforts last year. Through this strategy, Chey aims to stabilize the group’s financial structure and accelerate the shift from quantitative growth to qualitative growth, focusing on artificial intelligence (AI) and semiconductors. According to industry reports on February 17, SK Group, which successfully streamlined its operations through large-scale restructuring in 2024, is further enhancing its corporate structure by selling non-core assets such as those in the petrochemical sector. SK Ecoplant is reportedly in talks with private equity firms (PEFs) to sell a 75% stake in its environmental management subsidiary Renewus and a 100% stake in Renewone for approximately KRW 2 trillion (US$ 1.44 billion). Renewus, South Korea’s largest water treatment company, was acquired by SK Ecoplant in November 2020 for KRW 1.5 trillion (US$ 1.08 billion). Renewone was formed after SK Ecoplant spent KRW 825.6 billion (US$ 595.2 million) to acquire eight waste incineration and landfill subsidiaries. Initially expected to play a key role in SK Ecoplant’s eco-friendly business expansion, Renewus and Renewone have now been put up for sale due to SK Ecoplant’s deteriorating financial structure. SK Ecoplant’s net debt currently exceeds KRW 5 trillion (US$ 3.6 billion), and it had to pay approximately KRW 295.3 billion (US$ 213 million) in interest during the first three quarters of 2024 alone. Additionally, SK Innovation has been pushing to sell its separator subsidiary, SKIET, since last year. More recently, speculation has arisen that it may also sell SK Geocentric, a petrochemical company in which it holds a 100% stake. SK Geocentric reported an operating profit of KRW 87.9 billion (US$ 63.4 million) in 2022 and KRW 193.7 billion (US$ 139.7 million) in 2023. However, due to the downturn in the petrochemical industry, it posted a cumulative operating loss of KRW 9.3 billion (US$ 6.7 million) for the first three quarters of 2024, marking a shift to negative earnings. The company’s valuation is estimated to be around KRW 2 trillion (US$ 1.44 billion). SK Innovation denied these sale rumors in a regulatory filing on February 14, stating, "Reports of SK Geocentric’s sale are not true." SK Square, SK Group’s intermediate holding company, is also seeking financial investors (FIs) to sell online shopping platform 11st, which failed to find a buyer last year. The company’s estimated valuation ranges from KRW 500 billion to KRW 600 billion (US$ 360 million to US$ 432 million). Last year, Chey significantly restructured SK Group’s business through the sale and consolidation of subsidiaries. In December 2023, SK sold an 85% stake in SK Specialty to domestic private equity firm Hahn & Company for approximately KRW 2.7 trillion (US$ 1.95 billion). The group also sold a 5.05% stake in Vietnamese retail giant Masan Group for KRW 294.8 billion (US$ 212.6 million) and a 7.1% stake in its subsidiary OneCommerce for KRW 270 billion (US$ 194.7 million). In August 2023, SK Networks sold SK Rent-a-Car to Affinity Equity Partners for KRW 820 billion (US$ 591.3 million). SKC also sold the fine ceramics and CMP pad businesses of its semiconductor materials subsidiary, SK Enpulse, to Hahn & Company. As a result, SK Group’s debt ratio decreased from 145% at the end of 2023 to 128% by the third quarter of 2024. The number of subsidiaries was also significantly reduced. A total of 49 subsidiaries were sold, 14 were liquidated, and 13 were merged. This marks a departure from the group’s previous expansion-focused growth model, shifting toward qualitative growth. Chey is planning to fundamentally reshape SK Group’s portfolio by reinvesting the funds secured from non-core asset sales into AI and semiconductors. SK Group aims to raise KRW 80 trillion (US$ 57.7 billion) by 2026 through subsidiary streamlining and invest heavily in AI and semiconductor-related fields. Key investment areas include high-bandwidth memory (HBM) chips, AI data centers, and AI-powered personal assistants. SK Hynix plans to invest KRW 82 trillion (US$ 59.1 billion) in AI and semiconductor businesses by 2028. Meanwhile, SK Telecom and SK Broadband are set to invest KRW 3.4 trillion (US$ 2.45 billion) over five years in AI data centers. In January 2024, Chey stated via the social media platform LinkedIn, "SK possesses the technology and partnership capabilities necessary to expand its AI business on a global scale. By integrating SK’s energy solutions, we will continue to create new business opportunities within the AI value chain, including AI data centers and other key areas." At the end of 2023, SK Group established a "Semiconductor Committee" within SK Supex Council to coordinate semiconductor strategies across the group. Additionally, SK Telecom launched a dedicated AI research and development (R&D) center to consolidate the group’s AI capabilities. SK Square, the group’s intermediate holding company, is also transitioning into a semiconductor-focused investment firm. An industry official stated, "SK Group will continue its portfolio restructuring through rebalancing this year. The ultimate goal of SK Group’s rebalancing strategy is to build a robust AI and semiconductor ecosystem. Starting this year, we can expect to see more details about specific investment plans." #SKGroup #CheyTaewon #AIBusiness #semiconductors #SKHynix #SKTelecom #SKInnovation #businessrestructuring #investment #technologyinnovation
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- Trump’s TSMC Pressure Hits Samsung Foundry, Lee Jae-yong Seeks European Auto Chip Clients
- U.S. President Donald Trump is pressuring Taiwan’s TSMC while backing Intel to strengthen the U.S. foundry (semiconductor contract manufacturing) industry. There are also speculations that TSMC may acquire a 20% stake in Intel Foundry Services (IFS). As a result, concerns over a crisis in Samsung Electronics' foundry business are growing, as Intel’s advanced process technology could rapidly improve with TSMC’s support. Additionally, major U.S. semiconductor design companies, including Qualcomm and Broadcom, are expected to invest in Intel Foundry’s equity, further strengthening cooperation within the domestic semiconductor industry. This poses another challenge for Samsung Electronics. Facing growing concerns over the semiconductor business, Samsung Electronics Chairman Lee Jae-yong recently visited Germany to explore automotive semiconductor supply deals with German automakers such as Mercedes-Benz, BMW, and Audi. On February 17, Taiwan’s Economic Daily reported that TSMC might invest directly in Intel’s foundry division or acquire a 20% stake if the division is spun off. Bloomberg recently reported that U.S. semiconductor design firms Broadcom and Qualcomm are considering equity investments in Intel Foundry to strengthen their cooperation. TSMC, Broadcom, and Qualcomm’s investments in Intel are reportedly driven by pressure from President Trump. Since his candidacy, Trump has been targeting Taiwan’s foundry giant, TSMC, while expressing a strong commitment to strengthening the U.S. semiconductor industry. Intel is the only U.S. foundry company capable of competing with TSMC and Samsung Electronics. TSMC appears to be using the potential acquisition of Intel Foundry’s stake as a negotiation tactic in response to semiconductor tariff pressures from the Trump administration. Broadcom and Qualcomm are also expected to secure stakes in Intel through investments and entrust semiconductor production to Intel Foundry in hopes of gaining support from the Trump administration. Samsung Electronics’ foundry division, which has been focusing on strengthening its advanced process technology and securing new customers, is now facing serious challenges. Intel’s technological catch-up is expected to accelerate with TSMC’s backing, and the likelihood of securing major U.S. big tech firms like Broadcom and Qualcomm as customers has increased. If Intel Foundry rapidly enhances its sub-3nm process technology, other major U.S. tech companies—such as Google, Microsoft, and Amazon—may also shift their semiconductor manufacturing from TSMC to Intel Foundry under pressure from the Trump administration. On the same day, Taiwan TF International analyst Ming-Chi Kuo stated, "If Samsung Electronics fails to improve yield rates and quality in advanced node (nanometer process) manufacturing, it will become even more difficult to secure orders due to the close collaboration between TSMC and the U.S. government." Samsung Electronics Chairman Lee Jae-yong has personally stepped up to secure foundry customers. On February 12, he reportedly departed for Munich, Germany, the city where Samsung Foundry Forum is held annually. Amid growing concerns about losing foundry customers in the U.S., Lee appears to be focusing on securing large clients in Europe, particularly among automakers. Previously, on October 19, 2023 (local time), Samsung Electronics announced at the Samsung Foundry Forum in Munich that it planned to mass-produce autonomous vehicle semiconductors using its advanced 2nm process. There is also speculation that Lee may collaborate with British semiconductor design company ARM to manufacture automotive semiconductors. In this scenario, ARM would handle the design of autonomous vehicle semiconductors, while Samsung Foundry would be responsible for manufacturing. Notably, ARM is led by SoftBank Chairman Masayoshi Son, who has a close personal relationship with Lee. Industry insiders view this as a strong indication of potential collaboration between the two companies. The two business leaders met at Samsung Electronics' headquarters in Seocho, Seoul, on February 4, the day after Lee’s appellate court ruling, to discuss business cooperation. Mercedes-Benz and NVIDIA have already entrusted ARM with designing semiconductors for autonomous vehicles and robotics. Additionally, Samsung Foundry announced last year that it was optimizing its next-generation Gate-All-Around (GAA) process for ARM’s system-on-chip (SoC) designs. #SamsungElectronics #TSMC #IntelFoundry #semiconductors #foundrybusiness #LeeJaeyong #TrumpAdministration #Qualcomm #Broadcom #automotivesemiconductors
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- Trump Opens KRW 1,500 Trillion Naval Defense Market, Hanwha’s Kim Dong-kwan Accelerates U.S. Shipyard Expansion
- Kim Dong-kwan, Vice Chairman of Hanwha Group, is expected to take aggressive steps to establish a strategic shipyard base in the United States to capitalize on the KRW 1,500 trillion (US$ 1.08 trillion) U.S. naval defense market anticipated under a second Trump administration. As the U.S.-China rivalry extends to maritime dominance, the Trump administration is pushing to open up the naval defense market, allowing warships and submarines to be built overseas to enhance U.S. naval power. Experts predict that over the next 30 years, a new U.S. naval special vessel market worth more than KRW 1,550 trillion (US$ 1.12 trillion) will emerge. According to the shipbuilding industry on the 14th, Republican senators recently introduced the Naval Readiness Assurance Act in the U.S. Congress. The purpose of this bill is to amend existing laws to allow U.S. military ships to be built in foreign shipyards. Under the bill, eligible shipyards must be independent of Chinese influence in terms of ownership and operations and must be located in NATO member countries or Indo-Pacific nations that have mutual defense treaties with the United States. If the bill passes, it would open the world’s largest naval special vessel market, creating new business opportunities for South Korean shipbuilders engaged in defense projects, such as HD Hyundai Heavy Industries and Hanwha Ocean. According to the U.S. Congressional Budget Office, the U.S. Navy plans to procure a total of 364 vessels over the next 30 years, including 293 combat ships and 71 support vessels. The total budget for these purchases is projected to be KRW 1,554 trillion (US$ 1.12 trillion), with an annual budget of KRW 51.7 trillion (US$ 37.3 billion). Former President Donald Trump emphasized cooperation with South Korea’s shipbuilding industry even before taking office. In response, Kim Dong-kwan attended Trump’s inaugural ceremony and ball in Washington, D.C., on January 20, where he met with key U.S. defense and security officials to showcase Hanwha Group’s capabilities in shipbuilding and defense technology. Since its launch in May 2023, Hanwha Ocean has been actively expanding its global naval defense business. To capture the anticipated surge in U.S. naval special vessel demand under a Trump administration, the company is expected to accelerate the development of its Philadelphia Shipyard, which it acquired for US$ 100 million in December 2024, as a key production base. Philadelphia Shipyard operates a 330-meter-long, 45-meter-wide dock, capable of constructing commercial vessels such as container ships, Aframax tankers, and product carriers, as well as National Security Multi-Mission Vessels (NSMVs) for the U.S. Maritime Administration. It has also been involved in the maintenance, repair, and overhaul (MRO) of U.S. Navy ships. According to Hanwha Ocean, Dock No. 5 at Philadelphia Shipyard is equipped with a 660-ton Goliath crane, enabling the construction of landing ships, Zumwalt-class destroyers, and Arleigh Burke-class destroyers. A Hanwha Ocean representative told Business Post, “We are currently formulating a mid-to-long-term business plan, including expansion strategies under the Jones Act and the U.S. naval shipbuilding sector.” The company is expected to invest in expanding shipyard facilities, securing specialized personnel, and integrating South Korea’s advanced shipbuilding technologies into the Philadelphia Shipyard. However, challenges remain in transferring the efficiency and production expertise of South Korea’s shipbuilding industry to the U.S., where the shipbuilding infrastructure is relatively weak. Another pressing issue is improving the financial stability of Philadelphia Shipyard. As of Q3 2024, Philadelphia Shipyard recorded cumulative revenue of US$ 317.1 million and an operating loss of US$ 62.2 million. The company has been operating at a loss for seven consecutive years since 2018, mainly due to increased cost burdens caused by supply chain disruptions during the COVID-19 pandemic. The shipyard recently completed two major loss-making projects—the National Security Multi-Mission Vessel (NSMV) and the Subsea Rock Installation Vessel (SRIV)—and has now begun constructing container ships. Hanwha Ocean expects this shift to significantly reduce deficits this year. In 2024, Hanwha Ocean secured two U.S. Navy maintenance, repair, and overhaul (MRO) contracts, marking its official entry into the U.S. naval defense market. Previously, in November 2023, the company conducted a rights offering that raised KRW 1.497 trillion (US$ 1.08 billion), allocating KRW 420 billion (US$ 302.7 million) for acquiring stakes in global defense production bases and MRO companies and KRW 62.1 billion (US$ 44.8 million) for next-generation naval vessel R&D. #Hanwha #KimDongKwan #Trump #navaldefense #shipbuilding #HanwhaOcean #PhiladelphiaShipyard #USNavy #militarycontracts #SouthKorea
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- Samsung C&T’s Oh Se-chul Advances Toward KRW 5 Trillion Urban Redevelopment Goal
- Oh Se-chul, CEO & President of Samsung C&T’s Engineering & Construction (E&C) Division, is making rapid progress toward achieving the company’s goal of securing KRW 5 trillion (US$ 3.6 billion) in urban redevelopment projects this year. Following the successful bid for the Hannam District 4 redevelopment project, Samsung C&T is now seen as a strong contender for another large-scale project, the Shinbanpo District 4 reconstruction. According to sources in the construction industry on the 14th, the Shinbanpo District 4 Reconstruction Association is currently conducting a second bidding process to select a contractor. The Shinbanpo District 4 reconstruction project involves rebuilding the existing 1,402 residential units, originally completed in 1979, into a new high-rise complex with a maximum height of 49 floors and a total of 1,828 units. The project site is located directly in front of Express Bus Terminal Station, providing access to subway lines 3, 7, and 9. It is also close to major commercial and lifestyle amenities, including Shinsegae Department Store, NewCore Outlet, Banpo Hangang Park, and Seoripul Park. The association has set the construction cost at KRW 9.5 million (US$ 6,851) per 3.3㎡, bringing the total project cost to KRW 1.031 trillion (US$ 743.5 million). For comparison, Samsung C&T’s successful bid for the Hannam District 4 project in January had a construction cost of KRW 9.4 million (US$ 6,779) per 3.3㎡. Other major urban redevelopment projects this year have construction costs ranging from the high KRW 8 million (US$ 5,770) range to the low KRW 9 million (US$ 6,486) range per 3.3㎡. Given these figures, the construction cost for the Shinbanpo District 4 project is considered favorable. However, during the first bidding round, which took place from December last year to February 5 this year, only Samsung C&T submitted a bid, leading to an automatic nullification due to a lack of competition. The second bidding process is open until April 3, but industry experts predict that it is highly likely to be voided again if Samsung C&T remains the sole bidder. This is because Samsung C&T’s aggressive approach to securing the project makes it difficult for other construction companies to enter a competitive bid. Samsung C&T has already established its "Raemian" brand in the Banpo area with projects such as Raemian One Bailey (Shinbanpo District 3 and Gyeongnam) and Raemian One Pentas (Shinbanpo District 15). The company is making a strong push to expand its Raemian presence with Shinbanpo District 4. A construction industry insider commented, “With several large-scale urban redevelopment projects expected to emerge this year, many construction firms are hesitant to enter an expensive and competitive bidding process for the Shinbanpo District 4 project.” According to the Act on Urban and Residential Environment Improvement, if two consecutive bidding rounds fail to attract competing bids, the project can proceed with a private contract. Samsung C&T has set a goal of securing KRW 5 trillion (US$ 3.6 billion) in urban redevelopment projects this year. For Oh Se-chul, another successful bid for a large-scale redevelopment project, following Hannam District 4, is now highly likely. In January, Oh led Samsung C&T to victory over Hyundai E&C in a competitive bid for the KRW 1.5 trillion (US$ 1.08 billion) Hannam District 4 project. Including the Banghwa District 6 project, which is also expected to be awarded through a private contract, Samsung C&T’s total urban redevelopment orders for this year have already approached KRW 2 trillion (US$ 1.44 billion). If the company secures the Shinbanpo District 4 project as well, its total orders are projected to surpass KRW 3 trillion (US$ 2.16 billion) by the first half of the year. Earlier this year, Oh set an ambitious target of KRW 5 trillion (US$ 3.6 billion) for urban redevelopment orders, surpassing last year’s total of KRW 3.64 trillion (US$ 2.63 billion). Despite the aggressive goal, Samsung C&T appears to be on track to exceed expectations. Looking ahead, the company is expected to continue its aggressive bidding strategy for other large-scale projects, including the Jamsil Useong 1, 2, and 3 complexes and the Gaepo Jugong 6 and 7 complexes, both valued at over KRW 1 trillion (US$ 720.5 million). However, the Jamsil Useong 1, 2, and 3 project, worth KRW 1.6 trillion (US$ 1.15 billion), is expected to see competition from GS E&C, while the KRW 1.5 trillion (US$ 1.08 billion) Gaepo Jugong 6 and 7 project is likely to be contested by Hyundai E&C. #SamsungC&T #urbanredevelopment #construction #realestate #Shinbanpo #Raemian #OhSechul #Hannam4 #SouthKorea #infrastructure
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- Hanwha E&C Division CEO & President Kim Seung-mo Focuses on Complex Development and Data Centers for Profit Turnaround
- Kim Seung-mo, CEO & President of Hanwha E&C Division, is taking steps to turn the company profitable by strategically focusing on domestic complex development projects and data centers. Kim is aiming to commence construction on the Suseo Station Transfer Center Development Project following the Seoul Station North Zone Development Project while also expanding the company’s presence in the data center sector, including the Changwon IDC Cluster. According to Hanwha E&C Division on the 14th, signs of recovery are emerging after more than a year of financial struggles following the company’s merger into Hanwha, the group's holding company. Hanwha’s investor relations (IR) report shows that Hanwha E&C Division posted an operating loss of KRW 30.9 billion (US$ 22.3 million) last year, returning to a deficit, while revenue fell 24% year-on-year. The decline was attributed to lower profitability due to rising construction costs, the completion of major projects such as Inspire Resort in Yeongjong-do, Incheon, and Foretna Suwon Jangan, as well as the divestment of the plant and offshore wind businesses. However, in the fourth quarter, the company saw improvements in both revenue and profitability. Hanwha E&C Division recorded Q4 revenue of KRW 1.01 trillion (US$ 728.4 million) and an operating profit of KRW 21.9 billion (US$ 15.8 million). Revenue, which had dropped to KRW 808.7 billion (US$ 583.2 million) in the previous quarter, rebounded to the KRW 1 trillion range for the first time in a year. The operating profit also turned positive compared to the operating losses of KRW 42.3 billion (US$ 30.5 million) in Q4 2022 and KRW 3.4 billion (US$ 2.5 million) in the previous quarter. Additionally, Q4’s operating profit was the highest since Hanwha E&C Division was integrated into Hanwha in Q2 2023, with an operating margin of 2.2%, the second highest after 2.3% in Q2 2023. The improvement in Q4 performance was influenced by an increase in settlement payments from the Bismayah New City construction project in Iraq, which led to a lower cost ratio. The securities industry predicts that if the halted Bismayah project resumes this year, it will significantly contribute to Hanwha E&C Division’s future revenue growth. In December last year, Hanwha E&C Division signed an additional contract worth KRW 391.9 billion (US$ 282.6 million) with the project’s client, Iraq's National Investment Commission (NIC), and is awaiting approval from Iraq’s Council of Ministers. Park Geon-young, a researcher at KB Securities, stated, “If construction resumes in Q1 this year, revenue will start generating from the second half. By 2026, this project is expected to contribute approximately KRW 700 billion (US$ 504.7 million) in revenue, and by 2027, around KRW 1 trillion (US$ 721.2 million).” Since Hanwha E&C Division’s overseas business is led by Vice President Kim Dong-seon, who joined the company early last year, CEO Kim Seung-mo is expected to focus on reviving domestic business performance. Kim is pursuing a strategy to drive growth by leveraging Hanwha's accumulated expertise in complex development and data centers. During Hanwha Group’s corporate restructuring last year, Hanwha E&C Division transferred its plant and offshore wind businesses to Hanwha Ocean. This move has positioned the company to concentrate on its core construction businesses, such as residential and infrastructure projects. Given the challenging market conditions, Hanwha E&C Division is expected to prioritize risk management and focus on strengthening its competitiveness in its core areas. Kim’s first step toward reinforcing Hanwha’s leadership in complex development is the Seoul Station North Zone Development Project, which will begin contributing to financial performance this year. In December last year, Hanwha E&C Division successfully launched the KRW 3.1 trillion (US$ 2.24 billion) Seoul Station North Zone Complex Development Project. This project involves transforming unused railway land in Jung-gu, Seoul, into a landmark complex featuring exhibition and convention facilities, office spaces, hotels, officetels, and commercial areas across five buildings, with a maximum height of 39 floors. At the groundbreaking ceremony, Kim stated, “Based on Hanwha E&C Division’s extensive experience and expertise in various development projects, we will create a landmark that represents Korea.” This year, the company also plans to begin construction on the KRW 1.6 trillion (US$ 1.15 billion) Suseo Station Transfer Center Complex Development Project. Located in Suseo, Gangnam District, Seoul, this project will integrate a transportation hub connecting the Suseo High-Speed Railway (SRT), the Great Train eXpress (GTX)-A line, and subway lines while incorporating a department store, office spaces, officetels, and a hotel. After receiving Seoul Metropolitan Government’s architectural review approval last year, Hanwha E&C Division is now working on obtaining implementation plan approvals before starting construction. For Kim, 2024 is a crucial year in transferring expertise gained from past projects, such as the Suwon MICE Complex Development in 2020 and the Inspire Integrated Resort in Incheon in 2023, to prime locations in Seoul. Unlike conventional construction projects, the Seoul Station North Zone and Suseo Station development projects involve Hanwha E&C Division not only as the builder but also as a project developer, which is expected to enhance both revenue growth and profitability. The Seoul Station North Zone project is being developed by Seoul Station North Zone Development, a joint venture established with investments from Hanwha (29%) and Hanwha Group affiliates, including Hanwha Impact and Hanwha Connect. Similarly, Hanwha holds the largest stake (46.16%) in Suseo Station Transfer Center Complex Development, alongside Shinsegae (14.19%), KT Estate (14.19%), and IGIS Asset Management (7.10%). Beyond these projects, Hanwha E&C Division is targeting additional large-scale projects, including the KRW 2.2 trillion (US$ 1.59 billion) Jamsil Sports & MICE Complex and the KRW 1.3 trillion (US$ 937.5 million) Daejeon Station Area Complex Development Project. Kim has also identified data centers as a core growth driver, especially as demand surges with the rise of artificial intelligence (AI) and cloud computing. Hanwha E&C Division has an extensive track record in the data center sector, having completed 11 facilities, including KT Gangnam IDC, Shinhan Financial Group Integrated Data Center, Ansan Kakao Data Center, and Dongtan Samsung SDS Data Center. Currently, the company is engaged in major data center projects, including the Samsong IGIS Data Center in Goyang and the Changwon IDC Cluster, while actively seeking additional projects. Moreover, Hanwha E&C Division is transitioning from merely constructing data centers to actively developing them. The Changwon IDC Cluster is a prime example, as the company has been involved from the planning stage in collaboration with Changwon City. In 2023, Hanwha E&C Division secured new orders worth KRW 2.6 trillion (US$ 1.87 billion), with over half—KRW 1.54 trillion (US$ 1.11 billion)—coming from complex development and data center projects, including the Seoul Station North Zone Complex Development (KRW 570 billion / US$ 411.1 million), Daejeon Station Complex Development (KRW 500 billion / US$ 360.4 million), and Changwon IDC Cluster (KRW 470 billion / US$ 338.8 million). For 2024, the company plans to add KRW 870 billion (US$ 627.1 million) from the Suseo Station Transfer Center Complex Development and KRW 400 billion (US$ 288.3 million) from the Jamsil Sports & MICE Complex to its portfolio. A Hanwha E&C Division representative stated, “Amid the challenges facing the construction industry, we will strengthen our competitive edge by focusing on sustainable and high-growth sectors such as complex development and data centers.” #Hanwha #construction #realestate #datacenter #complexdevelopment #urbanplanning #AI #cloudcomputing #businessstrategy #infrastructure
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- KEPCO Targets AI as Growth Engine, Kim Dong-cheol Ramps Up Power Supply for Data Centers
- Korea Electric Power Corporation (KEPCO) has set the expansion of electricity supply to meet the AI revolution as a key strategy in its mid-to-long-term growth vision. Kim Dong-cheol, the president of KEPCO, is expected to focus all efforts on preparing power supply for data centers, which are anticipated to see overwhelming increases in electricity consumption. On February 13, KEPCO established the "Power Grid Location Office" under its Power Grid Headquarters to ensure stable electricity supply for advanced strategic industries. The Power Grid Location Office will play a role in enhancing communication with stakeholders at sites experiencing conflicts over power grid location selection, recognizing that site selection is a crucial factor in power grid projects. In a press release, President Kim Dong-cheol stated, “We will mobilize all corporate resources to ensure the timely expansion of the national backbone power grid, which is essential for energy transition and the growth of advanced strategic industries that support the national economy.” South Korea’s four major strategic industries—biotechnology, semiconductors, secondary batteries, and displays—are increasingly adopting AI. Consequently, data centers are shifting from conventional computational operations to AI-driven data centers. The securities industry has analyzed that, with South Korean companies’ cloud usage rate at just 30%, there is significant growth potential. As AI continues to advance, various types of AI data centers, ranging from hyperscale facilities to smaller edge data centers in urban areas, will be necessary. AI data centers process vast amounts of data in real time with high computational power, driving innovation across industries. However, due to their advanced capabilities, AI data centers require significantly more power for installation and operation compared to traditional data centers. In a report, Yoo Jae-kook, a researcher at the National Assembly Research Service, stated, “AI data centers consume six times more electricity than conventional data centers, so expanding large-scale power infrastructure is essential for their construction and operation. The installation of AI data centers will undoubtedly put additional pressure on power generation and grid operations.” As AI data centers are expected to consume exponentially more power, KEPCO must take proactive measures to ensure electricity supply. The Ministry of Trade, Industry, and Energy also accounted for the expected rise in power demand from AI-driven data centers in its 11th Basic Plan for Long-Term Electricity Supply and Demand released last year. KEPCO recently unveiled a new 10-year vision emphasizing its commitment to addressing uncertainties in the power grid caused by surging electricity demand from AI and data centers. During the new vision announcement, President Kim stated, “We have embarked on a journey to achieve our new vision, and all employees will work together to maximize public benefits and drive innovative growth in the energy ecosystem.” Globally, companies are already making large-scale investments to expand infrastructure, including data centers, in preparation for AI growth. Google has announced a 52% increase in capital expenditures for AI infrastructure and facilities this year compared to last year. Microsoft plans to invest USD 80 billion (KRW 115 trillion) this year, a 60% increase from the previous year, while Meta has earmarked USD 65 billion (KRW 94 trillion) for AI-related data center infrastructure. Saudi Arabia’s futuristic city, NEOM, has reportedly secured USD 5 billion (KRW 7.2 trillion) in investments to establish data centers by 2028. Ko Young-min, a researcher at Daol Investment & Securities, commented, “Following the emergence of China’s DeepSeek, concerns have arisen about hardware reduction through investment efficiency in the development of large language models (LLMs). However, big tech companies reaffirmed their commitment to infrastructure expansion as they continue to pursue AI’s ultimate goals.” Meanwhile, the construction of data centers in South Korea is progressing more slowly than expected, largely due to the impact of the power grid impact assessment policy, which was introduced to distribute power demand across regions. With most data centers concentrated in the Seoul metropolitan area, concerns have grown that continued clustering will require extensive grid reinforcement to maintain power supply stability. The power grid impact assessment, implemented last year, is perceived as a strong regulatory measure for data center construction, leading to the postponement of numerous data center investments. Lee Kyung-ja, a team leader at Samsung Securities, stated, “We initially expected large-scale data center supply to begin next year, but only half of the planned projects are progressing. Completion schedules are being pushed back, leading to continued tight supply.” Lee also noted that there is an expected permitting gap this year and a temporary supply hiatus in 2029. Other countries have introduced policies to decentralize data centers, and actual dispersion of data center locations is becoming more visible. Considering these factors, President Kim must not only expand electricity supply for AI data centers but also focus on power grid restructuring to facilitate their decentralization. Choi Young-rok, a researcher at NICE Investors Service, stated, “While power demand growth may slow in the short term due to South Korea’s economic downturn, it is expected to increase gradually in the long term, driven by the growth of power-intensive industries such as AI and data centers.” A KEPCO representative stated, “We hope that the Special Act on Power Grid Expansion will be enacted quickly so that KEPCO can accelerate efforts to support AI, semiconductors, and other advanced strategic industries that require large-scale power supply.” #KEPCO #KimDongcheol #AI #powergrid #datacenters #Microsoft #Google #DeepSeek #infrastructure #electricitydemand
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- KT Caught in Crossfire as Trump Boosts AI Dominance: Kim Young-shub’s Microsoft Partnership at Risk
- President Donald Trump is expected to strengthen the battle for dominance in artificial intelligence (AI) by prioritizing "America First" policies following the emergence of China’s generative AI model, DeepSeek. If President Trump enforces stricter control over AI technology, it could significantly impact the large-scale AI projects that Kim Young-shub, CEO of KT, is pursuing in collaboration with Microsoft (MS). According to sources in the telecommunications industry on February 13, CEO Kim is expected to meet with Microsoft CEO Satya Nadella at the "MS AI Tour in Seoul" event on March 26 at the aT Center in Yangjae-dong, Seocho-gu, Seoul. They are expected to discuss the details of their AI collaboration. The event is part of Microsoft's global tour to introduce its latest AI technologies and market trends. The industry anticipates that, since KT has been working with Microsoft on a KRW 2.4 trillion (USD 1.7 billion) AI project since last year, this meeting will review the progress of their collaboration and explore further expansion. KT is developing AI service models optimized for Korean culture and industries by utilizing OpenAI’s conversational AI model and Microsoft's generative AI language model (LLM). Additionally, KT is developing public cloud services using Microsoft's Azure Cloud and conducting joint research projects on AI innovations with Microsoft Research Center. During a conference call for KT’s fourth-quarter earnings announcement, a company representative stated, “We have proposed to Microsoft the idea of selecting 30 companies for a pilot AI service,” hinting at further collaboration. However, concerns are rising that KT and Microsoft’s AI alliance could face challenges due to President Trump’s potential policies focusing on AI technology security as part of his "America First" agenda. The Biden administration had already designated AI technology as a national strategic asset. On January 13, 2024, just before the Trump administration’s transition, the U.S. Department of Commerce’s Bureau of Industry and Security announced a revised export control measure for advanced AI chips and AI models, adding AI models trained using these chips to the list of restricted technologies. Previously, in October 2023, the U.S. government had issued a national security memorandum outlining its strategy to maintain a leading position in AI by classifying it as a strategic asset. This approach is expected to intensify under the Trump administration, especially with the recent emergence of China’s DeepSeek AI model. Last month, after the release of the low-cost, high-performance DeepSeek AI model, President Trump met with NVIDIA CEO Jensen Huang to discuss AI chip export control measures, expressing heightened caution. The U.S. government’s commitment to enforcing AI protectionist policies was also evident at the third AI Action Summit held in Paris, France, from February 10–11. During the closing speech on February 11, U.S. Vice President J.D. Vance stated, “We will prevent the theft and misuse of American AI and chip technology.” Some industry experts predict that President Trump will impose stricter regulations on the transfer of AI technologies overseas to maintain U.S. dominance in AI. In a report published in January titled “Current Trends and Implications of U.S. AI Safety and Reliability Policies,” the Software Policy & Research Institute, under the Ministry of Science and ICT, projected that the Trump administration would strengthen export controls and national security-related technology management to uphold U.S. global leadership. Kim Myung-joo, a professor at Seoul Women’s University’s Department of Information Security and the inaugural director of the AI Safety Research Institute under the Electronics and Telecommunications Research Institute, recently stated in an interview, “The Trump administration is likely to introduce strong regulatory policies to classify AI as a strategic asset for national security and domestic industry growth, restricting AI technology exports.” A KT representative told Business Post, “At this stage, it is impossible to predict what AI-related policies the U.S. will implement,” adding, “We will respond accordingly once new policies are introduced.” #Trump #USPresident #AI #KT #Microsoft #KimYoungshub #DeepSeek #exportcontrol #technologysecurity #artificialintelligence
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- KB’s Yang Jong-hee Shines in Digital Expertise, Dominates Platform Business Among Top Four Financial Groups
- Yang Jong-hee, Chairman and CEO of KB Financial Group, maintained overwhelming performance in the digital sector among the four major financial groups last year. As digital competition among the four major financial groups is expected to intensify further this year, Chairman Yang is preparing to strengthen digital competitiveness with a focus on artificial intelligence (AI). On February 13, based on the 2024 earnings reports of the four major financial groups—KB Financial, Shinhan Financial, Hana Financial, and Woori Financial—KB Financial recorded the most outstanding performance in both absolute figures and growth rate in the platform (app) business, the core of digital operations. KB Financial’s monthly active users (MAU) for its platform reached 31.03 million in 2024, up 13.6% from 2023. Not only did KB Financial surpass Shinhan Financial, a company considered a strong competitor in the digital sector, by more than 10% in user numbers—Shinhan recorded 27.24 million MAUs—but it also significantly outpaced Shinhan’s growth rate of 5.8%. Hana Financial and Woori Financial disclosed only cumulative subscriber numbers for their key platforms, Hana OneQ and Woori WON Banking, instead of MAU figures. Their annual subscriber growth rates were 7.8% and 4.3%, respectively. KB Financial saw significant growth in monthly active users across both financial and non-financial apps last year. Monthly active users for financial apps—including KB Kookmin Bank’s KB Star Banking, KB Securities’ M-able, and KB Kookmin Card’s KB Pay—reached 25.93 million, up 9.3%. Breaking down the individual apps, KB Star Banking increased by 8.0%, KB Pay by 9.7%, and KB Securities by 8.1%, showing substantial growth in MAU across major affiliate platforms. The number of users for non-financial apps grew even faster. Monthly active users of non-financial platforms such as real estate (KB Real Estate), automobiles (KB ChaChaCha), healthcare (Ocare), and telecommunications (Liiv M) surged by 42.1% to 5.1 million. KB Financial also continued to grow its national authentication certificate business, a new initiative. As of the end of last year, the number of KB National Authentication Certificate users reached 15.52 million, marking a 9.9% increase in one year. Although the number of users for Shinhan Financial’s Shinhan SIGN authentication certificate grew by more than 20% last year, its total issuance stood at 9.93 million, still short of the 10 million mark. This suggests that KB Financial maintained solid growth. Chairman Yang Jong-hee’s focus on digital innovation has delivered results. Among the four major financial group leaders, Chairman Yang is considered the most committed to digital transformation. Unlike other financial group chairmen who come from banking or government backgrounds, Yang led the group’s digital and IT divisions before becoming chairman. During that time, Yang expanded cooperation with multiple fintech companies. Under his leadership, KB Financial launched the "KB Global Fintech Lab" in Singapore and expanded KB Kookmin Bank’s "KB Tech Forum" into an event that included participation from employees across all affiliates. As the financial industry rapidly shifts toward non-face-to-face operations, digital capabilities—including platform strength—have become a core competitive factor for financial groups. Since not only the four major financial groups but also all financial companies are investing heavily in digital transformation, competition in the digital sector is expected to intensify further. Among the four major groups, Shinhan Financial has already seen a rapid increase in users after launching its "Shinhan SOL" super app, which integrates affiliate functions, at the end of 2023. Woori Financial also launched a new version of its Woori WON Banking app late last year, integrating core services from Woori Bank, Woori Card, Woori Capital, and Woori Savings Bank. Chairman Yang plans to maintain KB Financial’s leading position in the digital sector through organizational restructuring and the recruitment of external experts. At the end of last year, KB Financial established the "Digital Innovation Department," a control tower overseeing all aspects of digital platforms, AI, and data. The Digital Innovation Department formulates the group’s digital strategy and facilitates seamless collaboration among affiliates. To strengthen its AI capabilities and integrate generative AI into business operations, KB Financial also divided its Financial AI Center into two units. Kim Byung-jip, a former senior researcher at LG AI Research, was appointed as head of the first center, while Lee Kyung-jong, formerly of NCSoft, was appointed as head of the second center. These external hires bring hands-on experience and technical expertise to the group. Chairman Yang also emphasized platform competitiveness in his New Year’s address. “In December, we streamlined the organization by integrating the digital transformation (DT) and AI divisions,” Yang said. “Now that we have improved efficiency to respond quickly to changes, we must lead the industry as a standard of ‘innovation.’” He also urged greater collaboration with platform companies. “Big tech and platform companies are no longer just competitors but partners in creating new opportunities together,” Yang said. “Instead of competing solely with our own products and services, we can achieve greater impact and success by integrating with other companies’ platforms and services.” #KBFinancial #YangJonghee #digitaltransformation #AI #fintech #financialtechnology #platformbusiness #banking #authentication #innovation
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- SK Ecoplant Speeds Up Financial Restructuring, Jang Dong-hyun Streamlines for IPO Preparation
- SK Ecoplant is accelerating improvements in its financial structure by strategically selecting and focusing on specific business areas. Vice Chairman and CEO Jang Dong-hyun appears to be preparing for an initial public offering (IPO) by restructuring the company around the semiconductor value chain while pursuing the sale of its environmental subsidiaries, which were acquired for approximately KRW 2 trillion (USD 1.4 billion). According to the financial investment industry on February 12, SK Ecoplant is reportedly working on the sale of its subsidiaries, Renewus and Renewon. Renewus is South Korea’s largest water treatment company, which SK Ecoplant acquired for KRW 1.05 trillion (USD 757.5 million) in November 2020. Renewon was formed through the merger of eight waste incineration and landfill subsidiaries that SK Ecoplant acquired between 2021 and 2022 for KRW 825.6 billion (USD 595.1 million). Regarding this, SK Ecoplant stated that private equity firms and other investors have made proposals but that no final decision has been made. However, given the financial burden SK Ecoplant has taken on while expanding into the environmental business, analysts believe there is a high likelihood that the sale will proceed. SK Engineering & Construction rebranded as SK Ecoplant in 2021, announcing plans to invest KRW 3 trillion (USD 2.2 billion) by 2023 in developing eco-friendly new businesses and acquiring technology innovation firms. SK Ecoplant has since expanded its scale, with total assets nearly doubling from KRW 7.76 trillion (USD 5.6 billion) at the end of 2021 to KRW 15.53 trillion (USD 11.2 billion) as of September 2023. However, its debt has increased while cash flow has worsened. Net debt, calculated as total debt minus cash equivalents, surged from KRW 1.13 trillion (USD 815.3 million) in 2020 to KRW 5.15 trillion (USD 3.7 billion) as of September 2023. The ratio of net debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) also rose significantly from 3.6 times in 2020 to over 9 times after 2021, reaching 10.9 times by September 2023. In a recent report, Korea Investors Service stated, “The downturn in the real estate market is reducing the cash-generating ability of SK Ecoplant’s core construction business. To maintain its current financial stability, the company must implement additional capital expansion and asset sales to reduce actual debt.” Vice Chairman Jang Dong-hyun now faces the challenge of improving the financial structure and restructuring the business portfolio to facilitate SK Ecoplant’s IPO. SK Ecoplant is moving toward an IPO in line with SK Group’s growth strategy. Given that the company promised investors in 2022 to complete its IPO by July 2026, it needs to present a clear roadmap within this year. Amid these circumstances, Jang was appointed as a co-CEO in a corporate restructuring at the end of 2023. At the time, SK Ecoplant stated that the move was aimed at securing both business growth and financial stability to ensure a successful IPO. For a successful IPO, the company must demonstrate not only a favorable market environment but also strong growth potential. From SK Ecoplant’s perspective, it needs to present a business blueprint that emphasizes future prospects rather than just stability. Jang appears to be focusing on building a business portfolio centered on the semiconductor value chain, along with battery recycling. He is working on establishing a long-term growth foundation for SK Ecoplant by aligning its business portfolio with SK Group’s key affiliates, SK On and SK Hynix. Recently, SK Ecoplant’s battery recycling subsidiary, SK TES, established a long-term battery recycling partnership with BMW, raising expectations for future growth. In 2023, semiconductor module company Essencore and industrial gas company SK Air Plus were incorporated as SK Ecoplant subsidiaries. The market holds a particularly positive outlook on SK Ecoplant’s semiconductor-related businesses. In a report on February 6, NICE Investors Service stated, “Additional semiconductor-related businesses are expected to enhance profitability,” noting that “Essencore maintains annual revenue of over KRW 800 billion (USD 578 million) despite industry fluctuations, while SK Air Plus is experiencing external growth with a solid trend of increasing profits.” Beyond new businesses, overall expectations for SK Ecoplant remain high. During a demand forecast for corporate bond issuance on February 10, SK Ecoplant attracted KRW 9.88 trillion (USD 7.1 billion) in bids for a planned issuance of KRW 1.5 trillion (USD 1.1 billion), demonstrating strong investor interest. Some have attributed this success to the “early-year effect,” where the bond market generally sees positive sentiment at the start of the year. However, considering the current downturn in the construction sector, weakened investor sentiment toward construction bonds, and uncertainties in housing policies amid the ongoing impeachment proceedings, SK Ecoplant’s strong performance was seen as particularly encouraging. In his New Year’s address, Jang stated, “By securing financial stability, minimizing volatility, and strengthening risk management, we will establish a sound financial structure that remains resilient to external uncertainties, securing a stable business foundation and paving the way for sustainable growth.” #SKEcoplant #JangDonghyun #IPO #semiconductor #batteryrecycling #businessrestructuring #SKGroup #financialstability #constructionindustry #investment
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- SSG.com and Gmarket’s Losses Triple Emart’s Profit, Chung Yong-jin’s Digital Struggles
- KRW 451.9 billion (US$ 325.8 million). This is the operating loss incurred by SSG.com and Gmarket over the past three years. It is more than three times the consolidated operating profit that Emart generated during the same period. This figure is a clear indication that the vision declared by Chung Yong-jin, Chairman of Shinsegae Group, three years ago—creating an "online company that also excels in offline operations"—is now faltering. Looking at the financial performance of SSG.com and Gmarket, which are Emart subsidiaries and Shinsegae Group’s e-commerce platforms, their operating losses have been narrowing over the past three years, but their future remains uncertain. In 2023, SSG.com and Gmarket recorded operating losses of KRW 72.7 billion (US$ 52.4 million) and KRW 67.4 billion (US$ 48.6 million), respectively. While SSG.com reduced its deficit by about one-third, Gmarket’s losses more than doubled. The combined operating loss of the two companies in 2023 expanded by KRW 5.1 billion (US$ 3.7 million) compared to the previous year. Considering that SSG.com and Gmarket reflected one-time costs of KRW 8.3 billion (US$ 6 million) and KRW 20 billion (US$ 14.4 million), respectively, due to a Supreme Court ruling on ordinary wages, their deficits have slightly improved. However, the fact that they continue to operate at a loss remains a significant concern. There are some hopeful signs. The combined operating loss of SSG.com and Gmarket decreased from KRW 176.7 billion (US$ 127.5 million) in 2022 to KRW 135 billion (US$ 97.3 million) in 2023 and KRW 111.8 billion (US$ 80.6 million) in 2024 (excluding one-time costs). However, the decline in revenue makes it difficult to be optimistic about the improvement in operating profits. SSG.com posted revenue of KRW 1.7447 trillion (US$ 1.26 billion) in 2022. In 2024, it recorded KRW 1.5755 trillion (US$ 1.14 billion), down 9.7% from two years ago. Gmarket's revenue in 2024 was KRW 961.2 billion (US$ 693.2 million), marking a significant 27.1% decline compared to two years earlier. Both companies explained that their focus on profitability over revenue growth has led to a contraction in overall sales. Rather than aggressively spending to boost revenue, they have prioritized improving profitability, which naturally results in a smaller business scale. However, the slow pace of profit improvement remains a challenge. Since being spun off from Emart in 2018, SSG.com has failed to escape annual operating losses for seven consecutive years. Gmarket, after being acquired by Shinsegae Group, turned to losses and, except for the fourth quarter of 2023, has never posted a quarterly profit. This is why skepticism persists about the future of these companies. Some industry observers even suggest that Shinsegae Group's heavy focus on internal restructuring means it has effectively conceded defeat in the e-commerce market, which is now dominated by Coupang and Naver. The struggles of SSG.com and Gmarket also reflect poorly on Chung Yong-jin’s digital transformation strategy, which appears to have failed. In his 2022 New Year's address, Chung emphasized the need to make Shinsegae Group an "online company that also excels in offline operations." At the time, Chung reflected on 2021, stating, "It was a year of fundamental structural changes for the Emart division," and highlighted the acquisitions of W Concept and eBay Korea (now Gmarket) as steps that significantly upgraded the group’s digital DNA. He also declared, "The ultimate goal of Shinsegae Group is to create an environment where customers spend more time within our ecosystem, regardless of online or offline channels. When we organically integrate all our internal and external resources, Shinsegae Group will no longer be just an 'offline company that does well online' but rather an 'online company that also excels in offline operations.'" Chung staked everything on shifting the company’s focus to online operations with the acquisition of Gmarket in 2021. Given Shinsegae Group's substantial investment at the time, there were expectations that the company would demonstrate its potential in the online space. However, three years later, many in the business community argue that Shinsegae Group has little to show for its efforts. There is even speculation that Chung is quietly retreating from the online business after agreeing to form a joint venture with Alibaba International, which operates the Chinese e-commerce platform AliExpress, by contributing Gmarket as capital. Shinsegae Group insists that this is actually a strategy to strengthen its online business. However, given that AliExpress is perceived as having only a limited impact on the Korean e-commerce market, many doubt whether this partnership can bring about a major shift. While Chung has yet to find a clear solution for the online business, SSG.com and Gmarket continue to struggle. SSG.com originally planned to go public by 2023, but the IPO was postponed due to high interest rates that froze the stock market. It remains unclear when the company will resume its listing plans. For Gmarket, goodwill amortization has become a financial burden. Emart acquired Gmarket for approximately KRW 3.4404 trillion (US$ 2.48 billion), and due to ongoing operating losses and purchase price allocation (PPA) amortization expenses, the company is estimated to be losing about KRW 150 billion (US$ 108.2 million) in operating profit each year. #Shinsegae #ChungYongjin #SSGcom #Gmarket #ecommerce #Coupang #Naver #digitaltransformation #businessstrategy #SouthKorea
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- Trump Pressures to End Russia-Ukraine War, Chung Ki-sun Hopes for Boost in HD Hyundai’s Construction
- Chung Ki-sun, Senior Vice Chairman of HD Hyundai Group, is drawing attention as he may benefit from post-war reconstruction demand in the construction equipment sector, which has been struggling due to poor market conditions. As discussions on ending the Russia-Ukraine war gain momentum following the inauguration of U.S. President Donald Trump, HD Hyundai appears to be preparing to seize reconstruction opportunities in the construction equipment industry. According to Reuters and other foreign media on the 12th, Keith Kellogg, a special envoy in charge of the Russia-Ukraine war under the Trump administration, is scheduled to visit Kyiv, Ukraine, on the 20th. This has raised the possibility of accelerating peace negotiations. President Trump has consistently promised to "end the Russia-Ukraine war within 24 hours" since his election campaign. While an immediate end to the war has not materialized as promised, Trump reiterated his commitment in his inauguration speech, stating, "My proud legacy will be as a peacemaker and unifier," and "Our strength will end all wars and bring a new spirit of unity to an increasingly unpredictable world." In November last year, Trump appointed Kellogg as a special envoy for ending the war and has since been closely overseeing related efforts. On the 8th (local time), Trump revealed in an exclusive interview with the New York Post that he had spoken with Russian President Vladimir Putin. Although details of the conversation were not disclosed, the subsequent scheduling of Kellogg’s visit to Kyiv has led to speculation that peace negotiations are gaining momentum. The Trump administration is reportedly considering offering incentives to Russia, but it has also continuously exerted economic pressure to push for an end to the war. Trump, who has shown a willingness to engage in a global "tariff war," has included Russia in his scope of economic pressure. Additionally, his emphasis on "lowering oil prices" for the U.S. economy is widely seen as a strategy to undermine Russia’s primary source of revenue. With Trump maintaining his stance on ending the Russia-Ukraine war and actual peace negotiations progressing, the domestic construction equipment industry is viewing this as a rare opportunity. In this context, it remains to be seen whether Senior Vice Chairman Chung Ki-sun can leverage reconstruction demand to revive HD Hyundai’s construction equipment sector, which includes HD Hyundai Construction Equipment, HD Hyundai Infracore, and their intermediate holding company, HD Hyundai XiteSolution. After being promoted to president in a year-end executive reshuffle in 2021, Chung restructured HD Hyundai Group in 2022, establishing three core business pillars: shipbuilding under HD Korea Shipbuilding & Offshore Engineering, energy centered around HD Hyundai Oilbank, and construction equipment led by HD Hyundai XiteSolution. Additionally, at CES 2024, Chung introduced the "Xite Transformation" initiative, which aims to apply HD Hyundai Group’s advanced technologies to land-based construction sites. His focus on developing the construction equipment sector at CES 2024 stands in contrast to the 2022 and 2023 CES events, where he primarily emphasized the future of the shipbuilding industry. While HD Hyundai’s energy sector remains highly dependent on oil prices and refining margins, the construction equipment sector has played a crucial role in stabilizing the group’s financial performance—particularly before the shipbuilding industry entered its current boom. HD Hyundai XiteSolution recorded a consolidated operating profit of KRW 464.4 billion (US$ 334.9 million) in 2022 and KRW 724.2 billion (US$ 522.3 million) in 2023. During the same period, HD Korea Shipbuilding & Offshore Engineering reported an operating loss of KRW 355.6 billion (US$ 256.4 million) in 2022 but returned to a profit of KRW 282.3 billion (US$ 203.5 million) in 2023. Considering that HD Hyundai XiteSolution’s annual revenue is in the KRW 8 trillion range (US$ 5.8 billion) and HD Korea Shipbuilding & Offshore Engineering’s revenue exceeds KRW 20 trillion (US$ 14.4 billion), it is clear that HD Hyundai Group has maintained strong profitability in the construction equipment sector. However, with the shipbuilding industry now experiencing a boom—HD Korea Shipbuilding & Offshore Engineering posted an estimated operating profit of over KRW 1.4 trillion (US$ 1.01 billion) last year—HD Hyundai XiteSolution’s operating profit has reportedly fallen back to the KRW 400 billion (US$ 288.4 million) range. HD Hyundai XiteSolution has been impacted by the prolonged global economic tightening, which has significantly weakened the construction equipment market. Preliminary results for last year show that HD Hyundai Construction Equipment recorded a consolidated operating profit of KRW 190.4 billion (US$ 137.3 million), while HD Hyundai Infracore posted KRW 184.2 billion (US$ 132.8 million), marking year-on-year declines of 26.0% and 56.0%, respectively. Both companies have struggled to overcome weak demand in major markets such as North America and Europe. At a time when Chung has solidified the owner-management system within HD Hyundai Group by being promoted to his current position late last year, the group’s three construction equipment firms have yet to show signs of recovery. HD Hyundai XiteSolution took preparatory steps last year by establishing a representative office in Kyiv, Ukraine, aiming to tap into post-war reconstruction demand. According to Ukrainian media, HD Hyundai XiteSolution is considering setting up a manufacturing facility in Ukraine to assemble large-scale construction machinery. Additionally, the company plans to establish a customs and logistics hub and a construction equipment training center in western Ukraine, with the Kyiv office serving as a central point for these efforts. An HD Hyundai XiteSolution representative stated, "The Ukraine office serves as a communication channel with local governments and businesses for post-war reconstruction support," adding, "Recently, discussions have taken place regarding the construction of a construction equipment training center, but other projects are still under review and have not been finalized." Although the global construction equipment industry is expected to recover gradually from the second half of this year, it remains uncertain how much HD Hyundai can benefit from Ukraine’s reconstruction efforts. However, considering that HD Hyundai Construction Equipment held approximately a 15% market share in Ukraine before the war, the scale of the reconstruction projects could significantly contribute to the company’s financial recovery. Additionally, HD Hyundai Construction Equipment could resume sales in Russia, where it previously had a market share exceeding 10%, once the war ends. Jang Yoon-seok, a researcher at Yuanta Securities, noted, "HD Hyundai Construction Equipment previously held around a 15% market share in Ukraine, so reconstruction demand will have a positive impact on its performance. However, the potential revenue may not be very large." He added, "It is worth paying attention to Europe’s increased infrastructure investment budgets, which had been reduced due to the prolonged war, as well as the potential resumption of sales in Russia." Yoo Jae-seon, a researcher at Hana Securities, commented on HD Hyundai Infracore, stating, "If an event occurs that stimulates inventory restocking demand, it could quickly change the market dynamics," adding, "Examples include North America’s disaster recovery efforts, the end of the Russia-Ukraine war leading to the resumption of sales in Russia, and Ukraine’s reconstruction. It is crucial to continuously monitor the timing and scale of these developments." During a past earnings conference call, HD Hyundai Construction Equipment expressed optimism that the Trump administration’s policies could help the company secure substantial demand in Ukraine’s post-war reconstruction efforts. #HDHyundai #ChungKisun #HDHyundaiXiteSolution #constructionequipment #UkraineReconstruction #RussiaUkraineWar #Trump #HDHyundaiConstructionEquipment #HDHyundaiInfracore #businessstrategy
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- Shaking Off Slump, Kakao Games CEO Han Sang-woo Focuses on Global Expansion in Second Year
- Han Sang-woo, CEO of Kakao Games, has faced underwhelming results in his first year in office. Although Han was expected to revitalize Kakao Games, which had been struggling with stagnant growth, the company recorded poor performance due to a lack of new hit titles and declining revenue from existing flagship games. This year, Han aims to complete structural reforms and focus on full-scale global expansion. On the 11th, Kakao Games announced that it recorded KRW 738.8 billion (US$ 532.7 million) in revenue and KRW 6.5 billion (US$ 4.7 million) in operating profit on a consolidated basis in 2023. Compared to 2022, operating profit shrank by 92%, and revenue fell by approximately 14%. In the fourth quarter alone, the company reported KRW 160.1 billion (US$ 115.5 million) in revenue and an operating loss of KRW 6.3 billion (US$ 4.5 million), falling short of market expectations, which had forecasted KRW 176.4 billion (US$ 127.2 million) in revenue and an operating loss of KRW 1.5 billion (US$ 1.1 million). The disappointing performance was attributed to a combination of factors, including a lack of blockbuster releases, the revenue stabilization of the once-popular game 'Odin: Valhalla Rising,' and the deferred accounting of earnings from 'Path of Exile 2.' By business segment, annual revenue from mobile games reached KRW 531.6 billion (US$ 383.3 million), down approximately 20% year-over-year, while PC game revenue rose by 70% to KRW 86.7 billion (US$ 62.5 million). During the company’s fourth-quarter earnings conference call, Chief Financial Officer Cho Hyuk-min stated, “Despite the stagnation in revenue growth, we have continued efforts to regain momentum. We are focusing on strengthening financial liquidity, streamlining non-core businesses, and diversifying our portfolio across key global game genres as part of a fundamental structural overhaul.” Han was appointed CEO of Kakao Games in 2024 with the task of enhancing global competitiveness to drive performance recovery. The gaming industry now sees success in international markets as a key measure of a company's performance. With the domestic gaming market reaching its growth limits, companies with global hit titles have been posting strong results, highlighting the importance of global expansion. Under Han’s leadership, Kakao Games has been restructuring to focus on its core business. However, this shift has yet to yield visible results in his first year. Despite his efforts to expand the company’s presence overseas by launching multiple titles, the results have been disappointing. Kakao Games’ heavy focus on mobile MMORPGs has also been a limiting factor in global expansion. This year, under Han’s direction, the company is shifting its focus to large-scale PC and console game development aimed at global markets. Kakao Games plans to release 10 new titles in 2024, most of which are designed for PC and console platforms, marking a significant step in its transformation. During the earnings call, Han emphasized that the company’s primary targets are North America and Europe. He also announced plans to aggressively enter the familiar Chinese market this year. “I have experience working at Tencent and understand the value and importance of the Chinese market better than anyone,” Han said. “Until now, we were unable to make a strong push due to regulatory challenges, political factors, and an incompatible game lineup. However, with recent regulatory relaxations, we see new opportunities.” Despite these efforts, Kakao Games’ turnaround is likely to be delayed until the second half of 2024, as its major upcoming releases are scheduled for later in the year. The action RPG 'Goddess Order,' initially set for release in the first quarter, has been postponed to the third quarter. Meanwhile, the large-scale MMORPG project 'Project Q' has been pushed back to the fourth quarter, as has 'Chrono Odyssey,' another MMORPG. As a result, significant growth momentum is expected to materialize in the latter half of the year. A Kakao Games representative stated, “This year, we are focused on strengthening the company’s competitiveness through expansion across platforms, genres, and regions. By building a diverse portfolio tailored to the global market, we aim to discover new growth drivers and establish a foundation for sustainable management.” Han Sang-woo, born in 1971, was appointed CEO of Kakao Games in 2024 after serving as head of the company’s Overseas Business Division and senior vice president of global operations. A seasoned expert in international markets, he previously held roles as CEO of Neowiz Games China, CEO of Tencent Korea, and head of Kakao Games’ overseas business unit. Drawing from his extensive experience in the Chinese gaming market, he is working to enhance Kakao Games’ global competitiveness. #KakaoGames #HanSangwoo #gamingindustry #globalexpansion #PCgames #consolegames #MMORPG #mobilegames #China #SouthKorea
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- Jeju Air’s Profit Plummets After Crash—Can CEO Kim E-bae Turn It Around?
- Kim E-bae, CEO of Jeju Air, is implementing a complete overhaul of the company’s leadership and aircraft fleet this year to recover consumer trust and improve poor financial performance following last year’s aviation incidents. Jeju Air achieved record-high revenue of nearly KRW 2 trillion (US$ 1.44 billion) in 2023, driven by a surge in international passenger demand. However, the company’s profitability significantly declined due to the aftermath of the Muan Airport accident, high exchange rates, and rising costs. Restoring consumer confidence in safety has been identified as the most urgent priority for profitability recovery. According to industry sources on the 11th, Jeju Air plans to propose the appointment of Jung Jae-pil, head of the Commercial Division, and Kim Hyung-won, legal affairs executive at AK Holdings, as new internal directors during the annual general meeting scheduled for March. Additionally, former Export-Import Bank of Korea Vice President Min Heung-sik and Homeplus Vice President Yoon Tae-jun are expected to be nominated as outside directors and audit committee members. A Jeju Air representative told Business Post, “We have selected aviation experts to strengthen trust and solidify our management.” Jeju Air’s board currently consists of CEO Kim E-bae, Executive Vice President Lee Jung-seok from the Management Planning Division, one non-executive director, Lee Jang-hwan, and three outside directors: Kim Heung-kwon, Cho Young-jo, and Cho Nam-kwan, totaling six members. Among them, Lee Jang-hwan, Kim Heung-kwon, and Cho Young-jo’s terms will expire in March. Alongside leadership changes, the company is pushing to replace its existing aircraft with newer models to improve safety. Jeju Air’s fleet modernization plan involves introducing 50 next-generation Boeing B737-8 aircraft (including 10 optional orders) through financial leasing by 2030. These new aircraft will replace the current fleet of B737-800 planes acquired through operating leases. The B737-8 model is expected to reduce fuel consumption by 15% compared to the B737-800 and lower maintenance costs through extended maintenance cycles, smart diagnostics, and component compatibility. Additionally, the aircraft’s extended range will allow Jeju Air to expand routes to destinations like Uzbekistan and Indonesia. However, despite plans to introduce four B737-8 aircraft in 2023, Jeju Air was unable to proceed with the acquisition due to regulatory delays. The global aviation industry’s supply chain was severely disrupted from 2020 to 2022 due to the COVID-19 pandemic. As demand rebounded, aircraft manufacturers struggled to keep up with the surge in orders, leading to production delays. In particular, Boeing faced a seven-week-long labor union strike in 2023, exacerbating delivery setbacks. As a result, deliveries of the B737 series, including the B737-8, dropped by 33% in 2024, totaling just 265 aircraft. Lee Jae-hyuk, an analyst at LS Securities, commented, “It is unfortunate that Jeju Air was unable to receive a single B737-8 due to Boeing’s production delays. The company now plans to introduce seven of these aircraft in 2025.” Jeju Air had initially aimed to complete its fleet modernization by 2026, but the timeline was pushed back to 2030 due to the COVID-19 crisis. Of the planned 40 aircraft, only three have been delivered so far. Despite achieving record-high revenue in 2023 thanks to a post-pandemic recovery in international travel, Jeju Air’s profitability dropped to one of the lowest levels among low-cost carriers (LCCs) due to the Muan Airport accident and other factors. In 2024, the company recorded KRW 1.9358 trillion (US$ 1.396 billion) in revenue and KRW 79.9 billion (US$ 57.6 million) in operating profit. While revenue grew by 12.3% from KRW 1.6993 trillion (US$ 1.225 billion) in 2023, operating profit declined by 52.9% from KRW 161.8 billion (US$ 116.7 million). The company also returned to a quarterly deficit, reporting an operating loss of KRW 45 billion (US$ 32.4 million) and a net loss of KRW 72.8 billion (US$ 52.5 million) in the fourth quarter. Kim Young-ho, an analyst at Samsung Securities, stated, “Jeju Air’s operating expenses in the fourth quarter of 2024 reached KRW 490.6 billion (US$ 353.7 million), up 7.7% from the same period in 2023. Given that jet fuel prices actually fell by 18.2% to US$ 88 per barrel, the sharp increase in costs suggests the inclusion of one-time or safety-related expenses.” Compared to other listed LCCs such as Jin Air and Air Busan, Jeju Air’s profitability decline was more pronounced. In 2023, Jin Air reported KRW 166.7 billion (US$ 120.2 million) in operating profit with an operating margin of 11.4%, while Air Busan recorded KRW 146.3 billion (US$ 105.5 million) in operating profit with a 14.5% margin. In contrast, Jeju Air’s operating margin fell to 4.1% in 2023, a 5.4 percentage-point decline from 9.5% in 2022. Jeju Air is expected to face additional financial burdens in 2024 due to safety-related expenses and flight suspensions following last year’s accidents. The company has announced plans to reduce 1,878 flights—838 domestic and 1,040 international—until March 29, when the winter travel season ends. Compared to the first quarter of 2024, domestic flights will decrease by 4.07%, while international flights will drop by 7.88%. #JejuAir #KimEbae #aviation #B7378 #fleetmodernization #LCC #SouthKorea #airlines #safety #businessstrategy
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- SK Group Chairman Chey Tae-won Targets AI Leap Amid Trump-Era Upheaval
- Chey Tae-won, Chairman of SK Group, is actively seeking ways to navigate the group's future amid a completely transformed global order in the "Trump 2.0 era." SK Group owns businesses in semiconductors and batteries that are highly influenced by U.S. government policies, making it inevitable for the company to closely monitor shifts in the Trump administration's economic stance. Chairman Chey is focusing on strengthening cooperation with U.S. companies, particularly in AI semiconductors, as a survival strategy for SK Group. According to business sources on the 11th, the Trump administration's tariffs are beginning to take effect, raising concerns that SK’s key affiliates may be directly impacted. On January 10 (local time), U.S. President Donald Trump officially announced a 25% tariff on imported steel and aluminum products. He also revealed that additional tariffs on semiconductors, automobiles, and pharmaceuticals are under review. The United States is a major export market for SK Hynix's semiconductors. In particular, the recent surge in demand for AI semiconductors, such as High Bandwidth Memory (HBM), has significantly boosted SK Hynix's sales. In the third quarter of 2023, SK Hynix generated KRW 9.7357 trillion (US$ 7.02 billion) in revenue from the U.S., which tripled to KRW 27.3058 trillion (US$ 19.7 billion) in the third quarter of 2024. During this period, the share of U.S. revenue in SK Hynix's total sales increased from 45.4% to 58.8%. If tariffs on semiconductors are imposed, SK Hynix is expected to face a significant blow. According to a report by the Korea Institute for Industrial Economics and Trade titled "Analysis of the Effects of Trump's Universal Tariffs," a 10% tariff on countries like South Korea and China could lead to a decline in semiconductor exports ranging from 4.7% to 8.3%, depending on the scenario. SK On is also highly sensitive to potential policy changes under the Trump administration. If the U.S. imposes additional tariffs on Chinese exports, SK On, which operates battery factories in the U.S., will face rising raw material procurement costs. Additionally, if the electric vehicle (EV) tax credits under the Inflation Reduction Act (IRA) are discontinued, the profitability of SK On’s battery business in the U.S. could be severely impacted. In response, Chairman Chey is actively working to expand communication channels by strengthening his network with key figures in U.S. politics and business circles. On January 19, he will visit Washington, D.C., as Chairman of the Korea Chamber of Commerce and Industry, accompanied by the CEOs of South Korea's 20 largest companies. He plans to meet with U.S. senators, members of Congress, and high-ranking government officials to promote the contributions of SK and other Korean businesses to the U.S. economy. SK Group is aggressively expanding its presence in the U.S., spending US$ 5.59 million (KRW 8.03 billion) on lobbying in 2024 alone. SK's lobbying expenditure last year was the second-highest among Korean companies, following Samsung Group, which spent US$ 6.98 million. Chairman Chey is looking for SK Group’s future growth opportunities in AI. Although U.S. companies hold the most competitive edge in AI technology, they cannot dominate every sector of the industry on their own. Chey believes that by providing irreplaceable AI-related products and services, SK can secure a key position in the U.S. supply chain. SK Hynix is currently collaborating with U.S. companies like Nvidia on HBM, while SKC is working on semiconductor glass substrates. Additionally, SK Enmove's immersion cooling technology is emerging as a crucial innovation for AI data center thermal management. SK Telecom is also preparing to launch its AI agent "A. (A-dot)" in the U.S. this March, making its relationship with U.S. companies and the Trump administration more critical than ever. SK Group companies are expected to find significant business opportunities in "Stargate," an AI project led by the Trump administration. On January 4, Chairman Chey met with OpenAI CEO Sam Altman, who is participating in the Stargate project, to discuss AI collaboration. Stargate is a US$ 540 billion (KRW 720 trillion) project involving a joint venture between Japan’s SoftBank, U.S.-based OpenAI, and Oracle to develop AI infrastructure in the United States. SK Hynix is expected to supply HBM for the Stargate project, while SK Telecom has expertise in data center construction, which is essential for AI infrastructure development. SK Enmove’s immersion cooling technology is also a key solution for large-scale AI infrastructure. Chairman Chey has made it clear that SK Group will focus on its core strengths. On January 19, during an appearance on KBS's current affairs talk show "Sunday Diagnosis," he stated, "The global order has changed as if an entirely new game is being played, and the rules must be reset." He added, "AI is an incredibly vast field, so rather than trying to master everything, we need to focus and specialize in the areas where we excel." #CheyTaeWon #SKGroup #Trump #semiconductors #AI #SKHynix #HBM #batteryindustry #Stargate #USKoreaRelations
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- LG Display’s iPhone SE4 and Restructuring Boost: Jeong Chul-dong to Cut Deficit in First Half
- LG Display is expected to reduce its deficit compared to last year as it begins supplying OLED panels for Apple's mid-range smartphone, the iPhone SE4, starting in the first half of this year. Jeong Chul-dong, CEO of LG Display, implemented structural reforms in both business operations and workforce last year while shifting the company’s focus to OLED technology. The resulting cost-saving effects are expected to become evident in the first half of this year. According to Bloomberg on May 10, Apple is set to unveil its budget smartphone, the iPhone SE4, as early as this week, with sales beginning by the end of February. The iPhone SE4 is the first budget iPhone in three years, following the release of the iPhone SE3 in March 2022. Consumers have high expectations as it is rumored to incorporate several premium features previously exclusive to high-end models. Unlike its predecessor, the iPhone SE3, which featured a fingerprint scanner on the home button, the iPhone SE4 will include Face ID. Additionally, for the first time in the SE series, it will be equipped with a 6.1-inch OLED display instead of an LCD, significantly improving display quality. Most of its features, excluding the camera, are expected to be similar to the standard iPhone 14 model released in 2022. The launch price is anticipated to be around $499, approximately 15% higher than the iPhone SE3’s $429 price tag. The U.S. IT media outlet 'Digital Trends' stated, “The iPhone SE4 will be more popular than you think,” adding, “Consumers who own older iPhones but do not need a high-end model are likely to upgrade to the iPhone SE4.” A successful launch of the iPhone SE4 would positively impact LG Display’s financial performance. LG Display, along with China’s BOE, has been selected as an OLED panel supplier for the iPhone SE4. LG Display is estimated to supply about 25–35% of the total orders, with the iPhone SE4 expected to sell over 20 million units this year. Jeong Won-seok, a researcher at iM Securities, stated, “LG Display will inevitably experience a seasonal decline in OLED panel shipments in Q1 due to inventory adjustments by its North American smartphone client (Apple). However, securing orders for Apple’s upcoming budget smartphone (iPhone SE4) will help minimize the decline in factory utilization compared to last year.” Due to the iPhone SE4 launch, LG Display’s Q1 mobile division revenue is projected to increase by over 30% compared to Q1 2024, reaching KRW 2.4 trillion (US$ 1.73 billion). As a result, the company’s operating loss for the first half of this year is expected to decrease by approximately 50% compared to last year’s first-half loss of KRW 563.1 billion (US$ 406 million). The impact of last year’s restructuring efforts is also expected to be reflected in this year’s performance. Last year, CEO Jeong transitioned the company’s core business from LCD to OLED while implementing workforce restructuring. This is projected to save approximately KRW 1 trillion (US$ 721 million) in labor costs this year. Additionally, as the depreciation expenses for large panel manufacturing facilities come to an end, LG Display is expected to reduce costs by about KRW 10 trillion (US$ 7.21 billion), increasing the likelihood of turning a profit in the second half of the year. Selling, general, and administrative expenses are also forecasted to decline by approximately 10% compared to last year. Kim Jong-bae, a researcher at Hyundai Motor Securities, commented, “With workforce optimization and the completion of depreciation costs, LG Display’s profitability will improve, making it highly likely to achieve an annual profit turnaround this year. Investors should focus on both the resolution of uncertainties and improvements in profitability.” CEO Jeong also expressed strong determination to turn a profit this year. At the "4th Generation Large OLED New Technology Briefing" on January 16, he stated, “We must act with the mindset that this is our only opportunity. All employees will unite to achieve meaningful results this year.” He added, “While it’s difficult to specify by quarter, I expect this year to mark a turnaround.” #LGDisplay #JeongChuldong #Apple #iPhoneSE4 #OLED #Smartphones #TechIndustry #DisplayTechnology #MobileMarket #AppleSupplyChain
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- KCC's Paints Strengthened by Silicone, Chung Mong-jin Aims for Record Profits for Second Year
- Chung Mong-jin, chairman and CEO of KCC, is aiming for a second consecutive year of record operating profit by leveraging a diversified business portfolio. Despite struggles in the construction materials sector due to a sluggish construction market, KCC’s strong performance in the paint and silicone divisions is expected to drive further growth this year. On February 10, sources within KCC indicated that the company’s construction materials division is likely to face difficulties this year. KCC holds a leading position in Korea’s construction materials industry, producing PVC windows, interior materials, and insulation, but its key downstream sector, construction, is experiencing a downturn due to a decline in housing permits and construction starts. According to the Ministry of Land, Infrastructure, and Transport, while housing construction indicators showed signs of recovery last year, they still fell short of past boom levels. In 2023, the total number of housing permits issued was 428,000, nearly unchanged from 429,000 in 2023 but significantly lower than 545,000 in 2021 and 522,000 in 2022, reflecting a decline of about 100,000 units. Housing starts in 2023 totaled 305,000 units, up 26 percent from 242,000 in 2023. However, this figure remains well below the 584,000 units recorded in 2021 and 383,000 units in 2022. The downturn in the construction sector already affected KCC’s construction materials division last year. KCC reported provisional sales of KRW 1.0797 trillion (USD 778.5 million) and an operating profit of KRW 168.7 billion (USD 121.7 million) for its construction materials division in 2023. These figures represent a 3 percent drop in sales and a 13 percent decline in operating profit from 2023. The division recorded its lowest sales (KRW 259.7 billion, USD 187.2 million) and operating profit (KRW 29.9 billion, USD 21.6 million) in the fourth quarter. However, Chung overcame the construction materials slowdown through strong performance in the paint and silicone businesses, achieving the highest operating profit in KCC’s history. KCC posted a consolidated provisional operating profit of KRW 477.1 billion (USD 344.2 million) in 2023, surpassing the previous record of KRW 467.7 billion (USD 337.1 million) in 2022. The company’s consolidated provisional sales reached KRW 6.6588 trillion (USD 4.8 billion), approaching the all-time high of KRW 6.7748 trillion (USD 4.9 billion) set in 2022. The record-breaking operating profit was largely driven by the paint division. KCC’s paint division posted provisional sales of KRW 1.9415 trillion (USD 1.4 billion) and an operating profit of KRW 219.4 billion (USD 158.2 million) in 2023, marking increases of 17 percent and 25 percent year-over-year. Both sales and operating profit were the highest in the company’s history. In 2023, the paint division accounted for the largest share—47 percent—of KCC’s total operating profit. Previously, the silicone or construction materials divisions had contributed the largest share. By product, marine coatings performed exceptionally well, while on a regional basis, subsidiaries in China, India, Indonesia, and Vietnam delivered strong results. A particularly welcome development for Chung was the turnaround in the silicone business, which had struggled since KCC’s KRW 3 trillion (USD 2.2 billion) acquisition of Momentive. KCC’s silicone division reported provisional sales of KRW 2.9836 trillion (USD 2.15 billion) and an operating profit of KRW 73.2 billion (USD 52.8 million) in 2023. While sales remained similar to KRW 2.9524 trillion (USD 2.13 billion) in 2023, the operating profit showed a dramatic turnaround from a KRW 83.3 billion (USD 60.1 million) operating loss in 2023. The improvement in KCC’s silicone division was driven by an overall market recovery, along with a strategic shift toward reducing commodity product sales and increasing high-value silicone products for automotive and electronic applications. This year, Chung aims to sustain the construction materials business while capitalizing on the strength of the paint and silicone divisions to achieve another record-high operating profit. In the paint division, rising sales of marine coatings amid a booming shipbuilding market are expected to be a key growth driver. According to UK-based shipping market research firm Clarkson Research, the global order backlog at shipyards stood at 156.79 million CGT (compensated gross tons) as of the end of January. This marks a 52 percent increase from 103.13 million CGT in January 2022. KCC is well positioned to benefit from the shipbuilding boom, as it supplies marine coatings to major shipbuilders such as HD Hyundai Heavy Industries and HD Hyundai Samho. Additionally, KCC has been expanding its eco-friendly product offerings in response to tightening global carbon emission regulations. In 2023, it became the first Korean company to launch a new antifouling coating that incorporates bipolar technology to prevent marine organisms from attaching to ship surfaces. In the silicone division, high-value product expansion, falling raw material costs, and reduced competition are expected to boost earnings. The price of metallic silicon, a key raw material for KCC’s silicone products, dropped 22 percent from KRW 3,840 (USD 2.77) per kilogram in the first quarter of 2023 to KRW 3,000 (USD 2.17) by the end of the third quarter. In the global silicone market, which is dominated by a few major players, KCC’s competitor Elkem, one of the top five companies in the sector, announced in late January that it had initiated a strategic review of its silicone business. Elkem’s move is seen as a response to oversupply in China. If Elkem scales back its production capacity, it could be a positive factor for KCC’s silicone business. Lee Dong-wook, an analyst at IBK Investment & Securities, stated, “Elkem is conducting a strategic review of its silicone division to address declining performance and improve its financial structure, and it appears that a sale is being considered. If Elkem’s restructuring materializes, KCC’s silicone business could benefit from reduced competition.” The securities industry forecasts that KCC’s consolidated operating profit will reach approximately KRW 510 billion (USD 368 million) in 2024, an 8 percent increase from last year’s provisional figure, setting a new record. Yoon Jae-sung, an analyst at Hana Securities, stated, “Despite potential weakness in KCC’s construction materials division, strong performance in the paint division and continued improvement in the silicone division are expected to lead to a new record operating profit this year.” A KCC representative commented, “Despite a challenging environment last year, we achieved solid results thanks to a well-diversified portfolio. Given the expected difficulties this year, we will focus on cash flow-driven operations,” signaling a cautious approach. #KCC #ChungMongJin #constructionmaterials #paintindustry #siliconebusiness #shipbuilding #Koreanindustry #Momentive #operatingprofit #SouthKoreaBusiness
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- Hyundai Motor Group’s Chung Eui-sun: “No Trump Risk,” Tariff Bomb a ‘Chance’
- Chung Eui-sun, Chairman of Hyundai Motor Group, Aims for ‘Silver Lining’ in U.S. Market Despite Trump’s Tariff Imposition and EV Subsidy Cuts This year marks the 20th anniversary since Chairman Chung Eui-sun built an automobile plant in Alabama, and he is displaying strong confidence, asserting that the risks posed by Trump could instead serve as a growth opportunity. According to industry sources on the 10th, policies under the Trump administration related to the automotive industry may actually work in favor of Hyundai Motor Group. Among the measures Trump is considering to protect the U.S. automobile industry, the one that could have the greatest impact on Hyundai Motor Group’s exports is his tariff policy. Upon taking office on January 20 (local time), Trump announced a universal tariff of 25% on Canada and Mexico, postponing its implementation by a month to the 20th of this month. Additionally, on the 9th, he mentioned a broad range of reciprocal tariffs on various products. Major U.S. media outlets, including The New York Times (NYT) and CNBC, have analyzed that imposing universal tariffs on Canada and Mexico would significantly impact the global automobile industry. However, domestic securities analysts suggest that the tariff bomb from the Trump administration will hit Hyundai Motor Group’s competitors in the U.S. market, such as General Motors (GM) and Toyota, harder than Hyundai itself. Hyundai Motor Group operates a Kia manufacturing plant in Mexico. The only model exported from this plant to the U.S. is the K4, with about 120,000 units planned for shipment to the U.S. this year. This accounts for approximately 15% of Hyundai Motor Group’s total U.S. sales. GM, the largest automaker in the U.S., produced about 840,000 vehicles in Mexico last year. Approximately 40% of the vehicles GM sells in North America are manufactured in its Canadian and Mexican plants. Similarly, Toyota, Stellantis, and Honda produce about 40% of their North American sales volume in plants located in Mexico and Canada. Particularly, many Toyota and Honda models that compete directly with Hyundai vehicles in the U.S. market are produced in Mexico and Canada. For instance, 81% of Honda Civics and 50% of CR-Vs are manufactured in Mexico before being exported to the U.S. Likewise, 53% of Toyota RAV4s and all Tacoma models are produced in Canada and supplied to the U.S. This puts Hyundai Motor Group in a relatively advantageous position under the Trump administration’s tariff policy. A Kia representative stated during the company’s fourth-quarter earnings conference call last year, “If export restrictions (tariff hikes) are imposed on Mexico, we may shift more shipments to Canada or change the export destinations of vehicles produced in Mexico.” He added, “Even if the tariff policy is implemented, we believe the impact will not be significant enough to harm profitability.” Hyundai Motor Company is focusing on increasing local production in the U.S. to circumvent tariffs. The company currently operates plants in Alabama and Georgia (Hyundai Motor Group Metaplant America). Hyundai’s Alabama plant has a production capacity of 400,000 vehicles, while the Georgia plant can produce between 300,000 and 350,000 vehicles. These facilities can supply approximately 70–80% of Hyundai’s total U.S. sales. Originally built for electric vehicle (EV) production, the Georgia plant has now been adapted to produce hybrid electric vehicles (HEVs) and internal combustion engine (ICE) vehicles flexibly in response to market shifts caused by the Trump administration’s reduction in EV subsidies. A Hyundai representative stated during last year’s fourth-quarter earnings conference call, “The universal tariff policy will affect not only us but also companies from Japan and other countries.” He added, “Since we have manufacturing plants in the U.S. and a production share of around 60%, the impact will be limited.” The potential repeal of EV subsidies, one of the key policies under the Trump administration’s revision of the Inflation Reduction Act (IRA), could also benefit Hyundai and Kia in the U.S. market. Due to delays in their U.S. EV production, Hyundai and Kia did not receive subsidy benefits until last year. Despite this, Hyundai Motor Group ranked second in the U.S. EV market for two consecutive years, surpassing GM. At the beginning of this year, Hyundai’s IONIQ 5 and IONIQ 9, Kia’s EV6 and EV9, and Genesis GV70 became eligible for IRA subsidies for the first time. Even if these subsidies are eliminated, Hyundai Motor Group has already demonstrated its capability to increase sales in the U.S. market without them. In January this year, Hyundai recorded year-over-year sales increases of 160% for the Santa Fe Hybrid (HEV), 89% for the Tucson HEV, 54% for the IONIQ 5, and 15% for the IONIQ 6 in the U.S. Hybrid vehicle sales grew by 74%, and EV sales rose by 15%. January’s sales volume set a new all-time monthly record. Kia also achieved record monthly sales, with a 29% increase in Forte and K4 sales, 27% in EV6, 22% in Carnival, 16% in Telluride, and 14% in Sportage. Last year, Hyundai Motor Group ranked third in global automobile sales for the third consecutive year. Compared to 2023, the sales gap with the top-ranked Toyota Group has narrowed. The difference between Hyundai Motor Group and Toyota Group’s sales in 2023 was 3.929 million units, which shrank to 3.589 million units last year. The U.S. remains Hyundai Motor Group’s largest market. There is speculation that Trump’s tariffs and EV subsidy cuts may provide an opportunity to further narrow the gap with Toyota Group. During this year’s New Year’s address, Chairman Chung stated, “We should not feel discouraged by the challenges and uncertainties ahead of us.” He added, “Without crises, we become complacent in optimism, and that can be more dangerous than any external risk. External challenges can actually serve as a stimulus for us.” He further emphasized, “We must also be cautious of falling into pessimism when facing upcoming challenges.” He continued, “If we shrink in the face of crisis, we will only think about protecting what we already have.” #Hyundai #ChungEuiSun #TrumpTariff #EVSubsidy #HyundaiUS #Kia #AutomobileIndustry #USMarket #TradePolicy #ElectricVehicles
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- Kumho E&C Takes First Loss in 12 Years to Clear Debt, Park Se-chang Bets on Atera for Rebound
- Park Se-chang, Vice Chairman of Kumho E&C, appears to have reduced the burden on this year’s performance rebound by addressing financial risks last year. With the company’s residential brand “Atera” receiving positive responses in the housing market, Kumho E&C is expected to focus all efforts on restoring profitability through this brand. According to securities industry forecasts on the 7th, Kumho E&C is expected to return to profitability this year, showing a solid performance turnaround. In 2024, Kumho E&C recorded a consolidated revenue of KRW 1.9142 trillion and an operating loss of KRW 181.8 billion, marking a 13.7% decline in revenue compared to 2023 and a transition into deficit. This was the first annual operating loss for Kumho E&C in 12 years, since 2012. Vice Chairman Park, who was promoted in February last year, faced a challenging first year with a disappointing performance. However, some analysts view the annual loss as a result of large-scale cost adjustments and clearing potential financial risks, including penalties for failing to meet completion guarantees, and consider it a strategic move for long-term stability. Kumho E&C specifically reflected KRW 118.9 billion in cost adjustments due to construction cost increases in Q3 last year, KRW 24.5 billion in penalties for failing to meet guaranteed completion deadlines, and KRW 52.6 billion in loan losses. However, since Q4 of last year, the company has returned to quarterly operating profit of KRW 5.5 billion, showing signs of recovery. This has also led to a positive trend in financial indicators. As of Q3 2023, Kumho E&C’s debt ratio stood at 640%, the second highest among major construction firms after Taeyoung E&C (747%). However, with Asiana Airlines’ stock price rebounding—which affects Kumho E&C’s asset valuation—alongside improving business performance, the company’s debt ratio declined slightly to 602% by the end of 2024. A Kumho E&C official stated, “The temporary increase in the debt ratio was due to the decline in Asiana Airlines’ stock price, which impacted asset valuation. However, with improved Q4 performance, the ratio has decreased. Additionally, continuous loan repayments and the completion of some projects have reduced real estate project financing (PF) debt, leading to expectations of further debt ratio improvements.” This year, Vice Chairman Park is expected to focus on Atera’s housing projects to drive Kumho E&C’s financial turnaround. Atera is a residential brand launched by Kumho E&C in May 2023. The first project, Cheongju Technopolis Atera, recorded a competition ratio of 47.4:1, followed by Goyang Janghang Atera (30.7:1) and Incheon Geomdan Atera Xi (16.97:1), all achieving the highest competition ratios in their respective regions and selling out completely. Given that, as of December 2023, there were 21,480 unsold homes after completion, the highest since July 2014, Atera’s success stands out in a challenging housing market. Kumho E&C plans to launch Atera projects in Busan Eco Delta City and Cheongju Technopolis this year, with annual operating profit expected to reach KRW 20–30 billion from these projects. Jung Hyun, an analyst at IBK Investment & Securities, stated, “Kumho E&C’s 2025 housing supply plan is estimated at around 5,000 units, and since these will be marketed under the Atera brand, we expect a gradual improvement in profitability.” If Kumho E&C’s performance stabilizes, Vice Chairman Park Se-chang’s leadership within the company is likely to gain further momentum. Park, the eldest son of former Kumho Asiana Group Chairman Park Sam-koo, joined Asiana Airlines in 2002 and later worked in Kumho Asiana Group and Kumho Tire, gaining management experience. In 2018, he became CEO of Asiana IDT, formally stepping into leadership roles. However, following Kumho Asiana Group’s liquidity crisis, the group was effectively dismantled, leaving only Kumho E&C and Kumho Express. In 2021, Park transitioned to Kumho E&C as President. As he had limited prior experience in construction and witnessed the collapse of Kumho Asiana Group firsthand, Park has been known for his cautious management style. Nevertheless, for Kumho Group’s revival, his immediate challenge is restoring Kumho E&C’s financial performance. As such, he is expected to prioritize profitability recovery through Atera’s housing projects this year. #KumhoEC #ParkSechang #Atera #ConstructionIndustry #RealEstate #HousingMarket #FinancialTurnaround #DebtReduction #KumhoGroup #AsianaAirlines
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- Kiwoom Securities Eyes ‘1 Trillion Club’ as Eom Ju-sung Defends No.1 Spot
- Kiwoom Securities recorded strong performance last year, but the celebration may not last long. This is because Kiwoom Securities’ dominance as the No.1 player in the retail (individual investor) market is being challenged by competitors, and CEO Eom Ju-sung is working tirelessly to defend the company’s position. According to the Financial Supervisory Service on the 7th, Kiwoom Securities posted a consolidated operating profit of KRW 1.0982 trillion last year, marking its return to the “1 Trillion Club” after three years. Since Mirae Asset Securities first surpassed KRW 1 trillion in operating profit in 2020, the "1 Trillion Club" has become a benchmark for top-tier securities firms. As a result, Kiwoom Securities’ operating profit surged 94.50% year-on-year in 2024, while net profit also increased 89.43% to KRW 834.8 billion. Kiwoom Securities has long maintained a 30% market share in domestic stock brokerage, securing its No.1 position. However, last year, the average daily trading volume of domestic stocks steadily declined, from KRW 24.9 trillion in Q1 to KRW 24.3 trillion in Q2, KRW 22.5 trillion in Q3, and finally KRW 19.7 trillion in Q4. As a result, Kiwoom Securities saw a decrease in domestic stock brokerage commissions, but this gap was filled by overseas stock trading. By September 2023, Kiwoom Securities ranked No.1 in overseas stock brokerage with a 20.4% market share. At the end of 2023, the average daily trading volume of overseas stocks was around KRW 2 trillion, but this figure more than doubled to over KRW 4 trillion in Q4 last year. This shift is attributed to individual investors moving away from the disappointing domestic stock market in favor of U.S. stocks, which have shown stronger performance. Since brokerage fees for overseas stock transactions are often several times higher than those for domestic stocks, this trend has ironically turned into an opportunity for securities firms. As a result, Kiwoom Securities outperformed larger competitors, such as NH Investment & Securities (KRW 901 billion) and KB Securities (KRW 780.7 billion) in operating profit. However, the increasing demand for overseas stocks has also intensified competition, threatening Kiwoom Securities’ market position—a challenge that has become a major concern for CEO Eom. For example, Meritz Securities recently introduced a zero-commission policy for overseas stock trading, sending shockwaves through the industry. As Meritz Securities' overseas stock brokerage balance surged, other competitors also started considering fee reductions or waivers, fueling concerns of an impending price war that could erode profitability for major players like Kiwoom Securities. Moreover, Toss Securities, which played a key role in popularizing fractional overseas stock investing, has now overtaken Kiwoom Securities in some aspects. According to Daishin Securities, Kiwoom Securities lost its No.1 position in overseas stock brokerage to Toss Securities in November 2023. Daishin Securities analyst Park Hye-jin lowered Kiwoom Securities' target stock price from KRW 180,000 to KRW 160,000, warning that "since major securities firms are aggressively entering the overseas stock market, Kiwoom Securities’ stock price will depend on whether it can defend its market share." In response, CEO Eom Ju-sung has been busy restructuring Kiwoom Securities’ retail business since the beginning of the year. To regain overseas brokerage market share, Kiwoom Securities launched a "100% Guaranteed U.S. Big Tech Stock Lottery Event" on April 4. This event offers fractional shares of seven major U.S. stocks (Apple, Amazon, Alphabet, Meta, Tesla, Microsoft, Nvidia) to new U.S. stock traders or customers who haven’t traded U.S. stocks for at least three months before the event start date. Additionally, Kiwoom Securities announced plans to expand its “Stock Savings” service to U.S. stocks by the end of this month. This service, similar to a stock installment plan, allows investors to purchase stocks on a fixed date each month, mimicking a savings account approach. It has been a key offering of fintech-based securities firms like Toss Securities. Meanwhile, Kiwoom Securities has completed preparations for the launch of an Alternative Trading System (ATS) on May 4 by setting up its own Smart Order Routing (SOR) system. The SOR system enables securities firms to automatically route customer orders to either the traditional stock exchange or the ATS, ensuring the most favorable transaction conditions. Currently, Kiwoom Securities is the only securities firm in Korea that has implemented this system. Given the significant impact that the ATS launch is expected to have on the retail market, Kiwoom Securities' swift preparation reflects CEO Eom’s urgency in staying ahead of competitors. Eom Ju-sung was born in 1968 and graduated from Siheung High School (now Geumcheon High School) before earning a degree in Applied Statistics from Yonsei University. He later obtained a Master’s degree in Investment Management from the KDI School of Public Policy and Management. He began his career at Daewoo Securities in 1993 and joined Kiwoom Securities in 2007, where he held key roles in Proprietary Investment (PI), Investment Management, and Strategic Planning. In January 2024, he was appointed CEO of Kiwoom Securities. #KiwoomSecurities #EomJusung #RetailMarket #StockBrokerage #OverseasInvestment #FinancialMarkets #SecuritiesIndustry #AlternativeTradingSystem #InvestmentBanking #MarketCompetition
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- Yuhan CEO Cho Wook-je Faces U.S. Delays, Eyes European Market for 'Leclaza'
- Yuhan Corporation CEO Cho Wook-je is expected to mitigate the delay in U.S. royalties for the non-small cell lung cancer treatment 'Leclaza' (ingredient: Lazertinib) by expanding into the European market. Cho is anticipating an increase in market penetration for Leclaza through a combination therapy with the subcutaneous injection formulation of Rybrevant (ingredient: Amivantamab), following its existing combination with the intravenous injection formulation. While approval for the subcutaneous version of Rybrevant has been delayed in the U.S., there is a strong possibility that sales will expand first in Europe. According to the pharmaceutical and biotech industry on the 7th, Leclaza is expected to soon be used in combination with the subcutaneous (SC) formulation of Rybrevant in Europe. On the 4th, Johnson & Johnson subsidiary Janssen announced that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) had recommended expanding the marketing authorization for the combination therapy of Rybrevant SC and ‘Lacruze’ (the overseas brand name for Leclaza). This recommendation is widely interpreted as being in the final approval stage. Given that in December last year, Leclaza received CHMP’s recommendation for combination therapy with Rybrevant and then secured European Commission (EC) approval within a month, it is expected that this new approval will also be granted swiftly. If the combination therapy with the subcutaneous injection formulation is approved following the approval of the intravenous version in late 2024, Leclaza’s market penetration in Europe is expected to accelerate significantly. Rybrevant SC significantly reduces administration time compared to the existing intravenous (IV) formulation. While the IV version requires approximately five hours for infusion, the subcutaneous injection can be administered in just about five minutes. Additionally, infusion-related reactions (IRR) were found to be five times lower than with the IV formulation. Switching to a subcutaneous combination therapy improves efficacy, side effects, and convenience compared to the IV method. If Rybrevant SC receives approval, it is expected to positively impact Leclaza’s market share expansion. This year, Yuhan Corporation is projected to receive a milestone payment of US$ 30 million (KRW 44 billion) for Leclaza’s European launch, along with approximately 10% in sales royalties. If the subcutaneous formulation gains market traction quickly, royalty revenues could increase further. However, the delay in Rybrevant SC’s approval in the U.S., the largest market, is a disappointment. While the intravenous combination therapy was approved in the U.S. before Europe, the delay in the subcutaneous formulation’s approval has slowed the pace of market expansion. Leclaza received U.S. Food and Drug Administration (FDA) approval for combination therapy with Rybrevant IV in August 2024 and began sales in the third quarter of the same year. While obtaining approval for the subcutaneous formulation would further accelerate market penetration, the delay in approval has postponed potential opportunities. Unlike in Europe, Johnson & Johnson received a Complete Response Letter (CRL) from the FDA in December 2024 regarding Rybrevant SC in the U.S. Following a CRL, additional documents must be submitted, and the FDA’s reassessment is expected to take about six months from the submission date. A Yuhan Corporation representative stated, “According to Johnson & Johnson, the CRL was related to findings during a standard pre-approval inspection of the manufacturing facility,” adding, “Janssen is handling the documentation and approval process, so we cannot provide further details.” The securities industry believes that Rybrevant SC will eventually receive approval, considering it to be only a matter of timing. While the delay is unfortunate, the issue is related to facility inspections rather than additional clinical trials, which is unlikely to affect the approval outcome. The results of the global Phase 3 trial (MARIPOSA) for combination therapy in non-small cell lung cancer, jointly conducted by Yuhan Corporation and Janssen, are expected to serve as supporting evidence. The trial showed that while the median overall survival (mOS) for AstraZeneca’s Tagrisso was 38.6 months, the Leclaza combination therapy extended survival by more than a year. Given that the average life expectancy for lung cancer patients is around three years, these results are highly significant. Kwon Hae-soon, an analyst at Eugene Investment & Securities, stated, “The results of the MARIPOSA trial are expected to be officially presented at the 2025 American Society of Clinical Oncology (ASCO) conference in late May,” adding, “Based on the strong therapeutic efficacy, the FDA’s formal approval of the Leclaza and Rybrevant SC combination therapy is anticipated, along with the commencement of full-scale marketing efforts.” Kiwoom Securities analyst Heo Hye-min commented, “If overall survival (OS) data is revealed and Rybrevant SC receives approval, prescriptions for Leclaza combination therapy are expected to increase rapidly.” She also noted that AstraZeneca’s Tagrisso established itself as the standard treatment for non-small cell lung cancer after demonstrating an OS extension of approximately 6.8 months compared to first-generation EGFR TKIs, suggesting that Leclaza could follow a similar trajectory. #YuhanCorporation #Leclaza #ChoWookje #Rybrevant #LungCancer #FDAApproval #EMAApproval #Biopharmaceuticals #ClinicalTrials #PharmaceuticalMarket
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- Hanwha Solutions Reports First Annual Loss—Kim Dong-kwan Bets on Solar and Cable Materials for a Turnaround
- Hanwha Solutions reported its first annual operating loss last year since its establishment in 2020 through the merger of Hanwha Chemical and Hanwha Q CELLS & Advanced Materials. Vice Chairman Kim Dong-kwan is looking to reverse the company’s fortunes this year by leveraging the growing momentum of its solar business in the U.S. and expanding into ultra-high-voltage cable materials. On the 6th, Hanwha Solutions announced that it recorded KRW 12.394 trillion (US$ 8.94 billion) in revenue and an operating loss of KRW 300.2 billion (US$ 216.5 million) on a consolidated basis last year. Compared to revenue figures from 2022 at KRW 12.9322 trillion (US$ 9.32 billion) and 2023 at KRW 13.0785 trillion (US$ 9.43 billion), the decline was not significant. However, the company had previously posted operating profits of KRW 922.5 billion (US$ 665.1 million) in 2022 and KRW 579.2 billion (US$ 417.6 million) in 2023, making last year’s shift to an operating loss a significant setback. This marks the first time since its launch in 2020 that Hanwha Solutions has recorded an annual operating loss, primarily due to challenges in its core businesses: solar energy and chemicals. Last year, Hanwha Solutions generated revenue of KRW 5.7658 trillion (US$ 4.16 billion) from its renewable energy (solar) segment and KRW 4.8172 trillion (US$ 3.47 billion) from its chemical segment. However, both segments posted operating losses of KRW 257.5 billion (US$ 185.8 million) and KRW 121.3 billion (US$ 87.5 million), respectively. This is a sharp contrast to 2022, when Hanwha Solutions posted an all-time high profit, with its chemical segment alone generating KRW 590 billion (US$ 425.4 million) in operating profit and its renewable energy segment adding KRW 368.6 billion (US$ 265.8 million). In 2023, amid an industry-wide downturn, the chemical segment's operating profit shrank to KRW 60.7 billion (US$ 43.8 million), but the renewable energy business set a record with KRW 539.8 billion (US$ 389.2 million) in operating profit, accounting for the bulk of the company's total earnings. For Vice Chairman Kim, expectations are high that business conditions will improve in the U.S., the key market for Hanwha’s solar business. This could ease the pressure on him to drive a rapid financial recovery. Hanwha Solutions has been actively expanding into the U.S. market, including building its own manufacturing facilities, but has struggled against low-cost Chinese solar imports. However, with newly inaugurated U.S. President Donald Trump adopting a favorable stance toward solar energy while intensifying trade restrictions against China, Hanwha Solutions anticipates stronger competitiveness and higher market prices. Kim attended Trump’s inauguration in January and was also present at exclusive VIP events, further fueling market expectations for Hanwha Group’s expansion in the U.S. Baek Young-chan, a researcher at SangSangin Securities, commented on the outlook for the U.S. solar module market, stating, “Current inventory levels in the U.S. solar module market are estimated at 20–30 GW. Given that import volumes are likely to decline due to tariffs, supply will become extremely tight in the second half of the year. As a result, solar module prices in the U.S. are expected to rise in the latter half of 2024.” Meanwhile, in the chemical segment, where overall industry conditions are expected to remain sluggish, Kim appears to be focusing on specialized high-value products where Hanwha Solutions has a competitive edge. The company recently completed an expansion of its caustic soda production facilities, increasing its annual production capacity from 850,000 tons to 1.11 million tons. Caustic soda is widely used across various industries, from advanced sectors like semiconductors and battery cathodes to textiles and soap manufacturing. While the prices of many general-purpose materials have fallen sharply, caustic soda prices remained strong, reaching a 21-month high of USD 475 per ton in November 2023. A Hanwha Solutions representative commented on the market outlook for caustic soda, stating, “Demand is expected to improve gradually in the second half of the year, particularly from the electric vehicle-related industries.” Kim has also introduced a new strategy in the chemical sector by expanding into the "ultra-high-voltage cable materials" market. In December 2023, Hanwha Solutions spun off its polyolefin (PO) business from the chemical segment and established the new W&C (Wire & Cable) business division. In January 2024, it further elevated W&C to a full-fledged business segment. The W&C segment's flagship product is cross-linked polyethylene (XLPE) for 400 kV (kilovolt) ultra-high-voltage and submarine cables, which Hanwha Solutions successfully localized for the first time in South Korea. This move is seen as a strategic response to increasing global demand for electricity transmission infrastructure, driven by the expansion of artificial intelligence and the electrification of industries. Hanwha Solutions also appointed Carlo Scarlata, former Chief Commercial Officer (CCO) of Prysmian, as the head of the W&C business segment. Prysmian, an Italian company, is the world’s largest cable manufacturer. #HanwhaSolutions #KimDongKwan #solarenergy #USmarket #TrumpPolicies #causticsoda #chemicalindustry #ultrahighvoltagecables #energytransition #Koreanbusiness
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- KB Financial's Yang Jong-hee Achieves KRW 5 Trillion Profit—Can He Fix Internal Controls?
- Yang Jong-hee, chairman of KB Financial Group, set multiple new records in his first year in office. KB Financial became the first financial holding company in South Korea to achieve an annual net profit of KRW 5 trillion (US$ 3.61 billion). Additionally, fueled by its value-up strategy, KB Financial became the first domestic bank stock to surpass KRW 100,000 (US$ 72) per share. According to securities industry analysis on the 6th, KB Financial demonstrated the strengths of its diversified portfolio and earnings potential through strong performances from its non-banking subsidiaries last year. While the company faced criticism over capital ratios and the scale of its share buybacks, its financial strength and capital superiority remained unchanged. Na Min-wook, a researcher at DB Financial Investment, stated in a report, “The lower-than-expected scale of KB Financial’s share buyback is more of a strategic adjustment than a lack of capacity.” Eun Kyung-wan, a researcher at Shinhan Investment Corp., commented, “KB Financial is likely to see some dilution in its stock premium due to a decline in its capital ratio. However, it still possesses the strongest earnings power and capital strength in the financial sector, and since there has been no forced asset reduction, an expansion of share buybacks in the latter half of the year is expected.” On the previous day, KB Financial announced that its consolidated net profit attributable to controlling shareholders for 2024 was KRW 5.0782 trillion (US$ 3.66 billion). This marks the first time that any domestic financial holding company has reached the KRW 5 trillion (US$ 3.61 billion) threshold in annual net profit. The profit gap between KB Financial and its competitor Shinhan Financial widened significantly. Shinhan Financial reported a net profit of KRW 4.5175 trillion (US$ 3.26 billion), nearly tripling the gap compared to 2023, when KB Financial led by KRW 195.4 billion (US$ 141 million). KB Financial increased the contribution of its non-banking subsidiaries—securities, credit cards, and insurance—to approximately 40% of total earnings, with all of these units recording double-digit growth. Meanwhile, Shinhan Financial suffered from weak non-banking performances. Chairman Yang Jong-hee proved his non-banking sector expansion strategy was successful by achieving a record-breaking KRW 5 trillion (US$ 3.61 billion) in net profit in his first year in office. KB Financial’s strong business fundamentals, including the stability of its banking and non-banking portfolios, also supported its value-up strategy. On October 24, 2024, the day after Chairman Yang announced his value-up plan during the third-quarter earnings conference call, KB Financial’s stock price surged by 8.26%, reaching KRW 101,000 (US$ 72.8). On December 3, it again rose above the KRW 100,000 (US$ 72) mark. This milestone was a first, not only among the four major financial groups but also in the history of South Korean banking stocks. Securities analysts believe KB Financial’s ability to differentiate itself from competitors last year was largely due to market confidence in its shareholder return policy and overall value-up execution. It has earned a reputation as the “model student” of the value-up strategy. However, while strong earnings and a rising stock price were the bright side of KB Financial’s year, the company also had a dark side—it recorded the highest number of financial accidents among major financial institutions. According to the 2024 regular inspection report on financial holding companies and banks released by the Financial Supervisory Service (FSS), KB Kookmin Bank, KB Financial’s largest subsidiary, issued KRW 89.2 billion (US$ 64.3 million) in improper loans across 291 cases last year. Although the total amount was lower than Woori Bank’s KRW 233.4 billion (US$ 168.3 million), KB Kookmin Bank had far more incidents than Woori Bank (101 cases) and NH NongHyup Bank (90 cases). In the FSS inspection, KB Financial was criticized for having a weak audit system at individual branches and for failing to promptly incorporate financial crime alerts into its risk detection systems. Additionally, in some cases of fraudulent loan schemes involving developers and brokers, branch employees were found to have accepted bribes and entertainment benefits. There were also cases where improperly trained employees recommended and sold complex financial derivatives, as well as instances of poor management of customers’ personal credit information. These findings revealed significant weaknesses in KB Financial’s internal control system. Moreover, concerns were raised about KB Financial’s indirect financial support for KB Bank Indonesia (formerly Bank Bukopin) through the absorption of bad assets, as well as procedural deficiencies in liquidity support decisions for overseas subsidiaries. These issues suggest that management may bear direct responsibility. During KB Financial Group’s 16th-anniversary ceremony in September 2023, Chairman Yang Jong-hee stated, “We must preserve unchanging values while boldly transforming what needs to be changed. We must all embrace the ‘refresh’ management philosophy.” On October 30, 2024, KB Financial submitted a newly structured accountability framework for internal controls to the FSS and later released a press statement emphasizing its commitment to "refreshing" the group’s entire internal control system. The robust non-banking portfolio that supported KB Financial’s record-breaking performance was not built overnight. Now, the focus shifts to what legacy Chairman Yang will leave at KB Financial beyond the KRW 5 trillion (US$ 3.61 billion) net profit milestone. #YangJongHee #KBFinancial #netprofit #valueup #financialperformance #bankingstocks #shareholderreturns #financialcrimes #internalcontrols #SouthKoreanbanking
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- Lee Jae-yong Breaks Free, Eyes Jensen Huang Meeting – Global Robotics, Autonomous Vehicle Push
- Lee Jae-yong, the Chairman of Samsung Electronics, is expected to take bold steps in global management by meeting with the heads of major U.S. big tech companies to explore future growth businesses such as artificial intelligence (AI) semiconductors, robotics, and automotive electronics. On February 3, a day after being acquitted in his appellate trial, Lee met with SoftBank Chairman Son Masayoshi and OpenAI CEO Sam Altman at Samsung’s headquarters in Seocho, Seoul, to discuss AI business cooperation. There are also expectations that in March, Lee will personally meet with NVIDIA CEO Jensen Huang in the United States to discuss collaboration in AI semiconductors and other new business areas. Since both Samsung Electronics and NVIDIA consider AI, robotics, and automotive electronics as key future growth sectors, attention is focused on whether Lee and Huang will meet and what business cooperation might follow. According to reports from the business sector on February 5, as Lee has effectively freed himself from the legal risks that lingered for more than eight years, he is expected to take full charge of Samsung Electronics' management and alleviate concerns about the company's future. Although Lee officially assumed the chairmanship of Samsung Electronics on October 28, 2022, he was held back by legal risks and was unable to take the lead in making large-scale investment decisions for future new businesses. On February 3, the day after his acquittal, Lee met with SoftBank Chairman Son Masayoshi and OpenAI CEO Sam Altman to discuss cooperation in AI semiconductors and data centers. Son reportedly proposed Samsung Electronics' participation in the "Stargate" project, which involves investing $500 billion (KRW 718 trillion or US$ 517.7 billion) to build a data center in the United States. There are also predictions that Lee will meet NVIDIA CEO Jensen Huang around the time of NVIDIA's developer conference, "GTC 2025," which will be held in San Francisco in March. Samsung Electronics is in urgent need of expanding its supply of high-bandwidth memory (HBM) for NVIDIA's AI semiconductors, where it currently lags behind competitors. Additionally, to revive its foundry (semiconductor contract manufacturing) business, which continues to suffer losses, securing NVIDIA as a customer is crucial. Recently, NVIDIA announced that it would enter not only the AI semiconductor market but also robotics and autonomous vehicle businesses. Samsung Electronics also has strong ambitions to develop these sectors as its next-generation businesses. If the two companies agree on strategic cooperation, significant synergy is expected. Previously, Han Jong-hee, Vice Chairman and Head of Samsung Electronics' DX Division, announced in September last year that the company would focus on developing four new businesses: robotics, automotive electronics, medical devices, and eco-friendly HVAC systems. Additionally, at the end of last year, Samsung Electronics increased its stake in the domestic robotics company Rainbow Robotics to 35%, effectively making it a subsidiary, signaling its full-fledged entry into the robotics business. With AI semiconductor performance expected to determine market success in both the robotics and autonomous vehicle sectors, the collaboration between Samsung Electronics, with its strong hardware manufacturing capabilities, and NVIDIA, with its software design expertise, is seen as a powerful combination. Robots and autonomous vehicles require power-efficient memory semiconductors due to their limited power supply. Samsung Electronics has a strong advantage in low-power LPDDR DRAM. Additionally, the company is reportedly developing "VCS DRAM," which stacks LPDDR DRAM like high-bandwidth memory (HBM), with plans to complete development by the first quarter of this year. NVIDIA's "Jetson" and "Thor" chipsets, designed for the robotics market, use low-power LPDDR DRAM. If the two companies form a strategic alliance, Samsung Electronics, which has acquired Rainbow Robotics as a subsidiary, could source NVIDIA’s robotic chipsets to manufacture humanoid robots and other robotic systems. Lee Jong-hwan, a professor at Sangmyung University’s Department of System Semiconductor Engineering, stated, "Lee Jae-yong's most crucial role is to meet with big tech leaders, promote cooperation, and maintain relationships," adding, "Just as he discussed the Stargate project, securing new business opportunities from U.S. big tech companies will be the fastest way for Samsung Electronics to overcome its crisis." #Samsung #AI #semiconductor #LeeJaeyong #NVIDIA #robotics #autonomousvehicles #HBM #foundry #bigtech
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- GS E&C Boosts Stability with Profit Rebound, Huh Yoon-hong Faces Profitability Test in Year Two
- Huh Yoon-hong, the President and CEO of GS Engineering & Construction (GS E&C), quickly recovered from the financial shock of 2023 by turning a profit last year. However, as GS E&C's profitability has yet to return to previous levels due to the deteriorating construction market, Huh is expected to face a true test of profitability recovery this year. On February 5, GS E&C announced that its consolidated revenue for last year was KRW 12.86 trillion (US$ 9.28 billion), with an operating profit of KRW 286.2 billion (US$ 206.4 million) and a net profit of KRW 264.9 billion (US$ 191.0 million). Compared to 2023, revenue increased by 2.0%, and the company returned to profitability with operating and net profits. GS E&C achieved its highest-ever revenue of KRW 13.44 trillion (US$ 9.69 billion) in 2023 and initially set an even higher annual target of KRW 13.5 trillion (US$ 9.73 billion) for last year. Although Huh did not reach the revenue target, he achieved a significant milestone in his first year as CEO by successfully restoring profitability. The key issue surrounding GS E&C last year was restoring trust by overcoming the tarnished reputation associated with the so-called "Boneless Xi" scandal while ensuring stable operating profit. Moreover, the company achieved record-breaking new orders, filling its backlog with nearly KRW 60 trillion (US$ 43.3 billion), securing work equivalent to more than four years' worth of revenue. With concerns about slowing external growth alleviated, Huh now has the conditions to focus on improving profitability. GS E&C recorded KRW 19.91 trillion (US$ 14.36 billion) in new orders last year. In 2023, the company secured only KRW 10.18 trillion (US$ 7.34 billion), falling 29.8% short of its initial target of KRW 14.5 trillion (US$ 10.46 billion). However, new orders nearly doubled within a year, surpassing the previous record of KRW 16.07 trillion (US$ 11.60 billion) set in 2022. Most business divisions of GS E&C expanded their new order volumes last year. By division, new orders for 2023 were as follows: Architecture & Housing at KRW 9.71 trillion (US$ 7.00 billion), New Business at KRW 5.55 trillion (US$ 4.00 billion), Plant at KRW 3.01 trillion (US$ 2.17 billion), Infrastructure at KRW 1.12 trillion (US$ 810 million), and Green (Environmental) at KRW 512.5 billion (US$ 369.6 million). The core Architecture & Housing division increased orders by 52.0% from the previous year, while the New Business segment saw a 183.2% increase, and the Plant division secured more than six times the previous year's orders. The Green division’s new orders surged by 246.2% compared to 2023, while the Infrastructure sector saw a slight 5.2% decrease. The sharp increase in the Plant division’s new orders was driven by securing large-scale domestic and international projects, including Saudi Arabia’s Fadhili Gas Expansion Program Package 2 (KRW 1.60 trillion or US$ 1.15 billion) and the Northeast Asia LNG Hub Terminal Phase 1 Project (KRW 587.9 billion or US$ 424.0 million). A notable trend last year was the sharp increase in GS E&C’s overseas orders. The company secured KRW 11.37 trillion (US$ 8.20 billion) in domestic orders and KRW 8.54 trillion (US$ 6.16 billion) in overseas orders. While domestic orders increased by 47.3% year-over-year, overseas orders surged by 246.2%. As of the end of last year, GS E&C’s order backlog stood at KRW 59.95 trillion (US$ 43.2 billion), up 10.6% from KRW 54.20 trillion (US$ 39.1 billion) at the end of 2023. Huh successfully reversed the KRW 387.9 billion (US$ 279.7 million) operating loss from 2023, which resulted from the aftermath of the collapse of the underground parking lot at an apartment complex in Incheon’s Geomdan district and a subsequent rigorous cost review. Huh has consistently emphasized "internal stability" in business operations, and it is now recognized that he has partially realized this goal. GS E&C’s gross profit margin (GPM) for each quarter last year was recorded as 9.0% in Q1, 8.3% in both Q2 and Q3, and 9.1% in Q4, with an annual gross profit margin of 8.7%. However, operating profit declined sharply in the fourth quarter. Quarterly operating profits were KRW 70.5 billion (US$ 50.8 million) in Q1, KRW 93.4 billion (US$ 67.4 million) in Q2, and KRW 81.8 billion (US$ 59.0 million) in Q3, before dropping to KRW 40.4 billion (US$ 29.1 million) in Q4. This decline is attributed to the temporary costs reflected in overseas infrastructure projects, as anticipated by the securities industry. The cost ratio of the Infrastructure division worsened from 89.5% in Q3 to 104.4% in Q4. Huh’s real test in terms of profitability is expected to come this year, his second year in office. GS E&C proactively addressed the industry-wide issue of "clearing out financial burdens" mostly in Q4 of 2023, enabling a swift return to normal operations. However, rising construction costs have kept profitability at a relatively low level. The company’s operating profit margin last year was 2.2%, significantly lower than during the industry’s boom period. GS E&C’s highest-ever operating profit margin was recorded in 2018 at 8.1% when it first and only entered the "KRW 1 Trillion (US$ 721.0 million) Operating Profit Club." It remained a top performer in the construction industry with operating profit margins of 7.3% in 2019, 7.4% in 2020, and 7.1% in 2021. Even in 2022, it recorded 4.5%. Given the current steep increase in construction costs, returning to past peak profitability levels immediately is challenging. However, considering GS E&C’s rare owner-driven management structure among major construction firms, Huh is likely aiming even higher. This year is expected to be crucial for GS E&C in not only increasing operating profit but also solidifying a long-term trend of profitability improvement. Specifically, the company plans to improve the cost ratio in the housing business while expanding revenue in the Plant division. Last year, GS E&C recorded a cost ratio of 90.7% in the Architecture & Housing business, which is still not at a satisfactory level. The company aims to achieve cost ratios of at least 85% for subcontracted projects and around 87% for redevelopment projects. GS E&C intends to complete projects launched in 2021–2022, which have high costs, by the first half of 2026 to lower the cost ratio while focusing on site management. The securities industry anticipates that GS E&C, which secured 22,098 housing units in 2023 and 16,445 units last year despite the real estate downturn, will be able to quickly improve profitability once cost ratios are reduced. In the Plant division, as construction progresses on projects such as the Saudi Fadhili Project, the cost ratio improved from 91.3% in Q3 to 88.5% in Q4 last year. GS E&C plans to expand annual revenue from the Plant division to around KRW 2 trillion (US$ 1.44 billion) as it improves profitability. The company set a Plant division revenue target of approximately KRW 1.3 trillion (US$ 937.5 million) for this year, more than tripling last year’s KRW 425.7 billion (US$ 307.0 million). GS E&C also set a new order target of KRW 14.3 trillion (US$ 10.32 billion) for this year, signaling its intent to maintain a pipeline of work exceeding annual revenue. Although the company’s target for this year is lower than last year’s record-breaking performance, it is the second-highest annual target set in the past decade, following 2023’s KRW 14.5 trillion (US$ 10.46 billion). GS E&C stated, "We will strengthen the fundamentals of the construction industry by focusing on safety and quality while enhancing our business foundation through selective and concentrated investment." #GSE&C #construction #HuhYoonhong #profitability #housingmarket #plantbusiness #neworders #realestate #engineering #SouthKorea
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- 'Reclusive Leader' Lee Hae-jin Returns as Naver Board Chairman After 7 Years, Leading AI Competitiveness
- Lee Hae-jin, the founder of Naver and its Global Investment Officer (GIO), is expected to return as Chairman of Naver’s Board of Directors after seven years. With his return, Naver’s artificial intelligence (AI) business is anticipated to gain further momentum. According to the information technology (IT) industry on the 5th, Naver plans to hold a board meeting this week to approve the agenda for Lee Hae-jin’s reinstatement as an internal director and present it as a proposal at the general shareholders' meeting. The industry expects the shareholders' meeting to take place around the 7th. If the proposal is confirmed, Lee will reclaim the position of Board Chairman, which he stepped down from in 2017, after approximately seven years. Since resigning as Chairman in 2017, Lee has focused on Naver’s overseas business, global investments, and new ventures. Since June 2019, he has rarely appeared at public events, earning the reputation of a “reclusive leader.” However, his return to the forefront is seen as a strategic move to maintain leadership amid intensifying global AI competition. Given that Lee has consistently emphasized the importance of “Sovereign AI,” his return is expected to signal an aggressive push to secure dominance in the AI sector. Competition has become even fiercer with the emergence of low-cost, high-performance AI models, such as "DeepSeek" from Chinese startups, in addition to the AI advancements led by U.S. tech giants like OpenAI. As a result, Naver faces increasing pressure to make strategic changes to strengthen its AI competitiveness. Domestic competitor Kakao is also accelerating its AI expansion. Just a day prior, Kakao officially announced a partnership with OpenAI, aiming to enhance its service competitiveness through AI technology. Lee has consistently shown a strong interest in AI-related issues. In May last year, at the "AI Seoul Summit," he stated, “In the AI era, there must be responsible and diverse AI models that respect the culture and values of each region.” The following month, he and Naver CEO Choi Soo-yeon met with NVIDIA CEO Jensen Huang to discuss AI model development and potential collaborations. As a result, expectations in the market regarding Lee’s return are high. On this day, Naver’s stock price surged to KRW 232,000 (US$ 167) during trading, marking a new 52-week high. #LeeHaeJin #Naver #AI #artificialintelligence #businessstrategy #technology #OpenAI #competition #stockmarket #Korea
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- LG Chem Faces Growing Petrochemical Downturn, Shin Hak-cheol Accelerates High-Value Material Strategy
- LG Chem is facing a dire situation where it not only has to endure a prolonged downturn in the petrochemical sector but also reconsider its business structure. For Vice Chairman and CEO Shin Hak-cheol, accelerating the transition of the company’s business portfolio toward high-value-added materials has become even more urgent. According to securities industry analyses on April 4, LG Chem is expected to show a gradual recovery in performance this year. In 2023, LG Chem recorded KRW 48.9161 trillion (US$ 35.3 billion) in revenue and KRW 916.8 billion (US$ 660.9 million) in operating profit. Compared to 2022, when revenue stood at KRW 55.25 trillion (US$ 39.8 billion), this marks an 11.46% decrease, while operating profit plunged 63.65% from KRW 2.529 trillion (US$ 1.82 billion). The securities industry projects that LG Chem’s 2024 revenue will be around KRW 50 trillion (US$ 36.1 billion), with an operating profit of up to KRW 1.8 trillion (US$ 1.3 billion). Considering that LG Chem achieved a record-high operating profit of over KRW 5 trillion (US$ 3.6 billion) in 2022, a significant rebound in 2024 seems unlikely. Jeon Yoo-jin, a researcher at iM Securities, commented on LG Chem’s performance outlook, stating, "It is difficult to find a clear upward momentum for LG Chem at the moment. A long-term approach is necessary." LG Chem’s sluggish performance is attributed to both the weakening battery-related businesses, such as LG Energy Solution and the cathode material sector, and a sharp decline in profitability in its core petrochemical division. In 2023, the petrochemical business posted revenue of KRW 19.089 trillion (US$ 13.8 billion), a 7.2% increase year-over-year. However, the segment suffered an operating loss of KRW 136 billion (US$ 98 million), continuing a trend of deficits similar to 2022. Most petrochemical companies, including LG Chem, are struggling with declining profitability due to increased production of basic chemicals such as ethylene in China, combined with a global economic downturn. The ethylene spread, a key profitability indicator for petrochemical firms, has remained below the breakeven point of USD 300 per ton since 2022. As of the third quarter of 2024, it has fallen to the USD 180 per ton range. Some analysts suggest that if former U.S. President Donald Trump intensifies tariff pressure on China, South Korean petrochemical companies could benefit from increased exports. However, growing production of basic chemicals in the Middle East through crude oil-to-chemicals (COTC) facilities suggests that the decline in South Korean petrochemical companies is not merely a short-term issue but could represent a structural crisis. COTC facilities allow direct ethylene production from crude oil, significantly lowering production costs compared to the traditional method of refining crude oil into naphtha before producing ethylene. According to the Korea Export-Import Bank, the ethylene production cost at Kuwait’s Al Zour COTC facility is approximately 30% lower than that of China’s already low-cost ethylene production. Given these global changes, CEO Shin must act swiftly to navigate LG Chem out of its current downturn. As the chairman of the Korea Petrochemical Industry Association, Shin has consistently emphasized the importance of shifting away from basic chemicals and expanding the portfolio of high-value-added materials. At the Asia Petrochemical Industry Conference (APIC) in May last year, he stated, "For a long time, the petrochemical industry has grown in line with industrial cycles, focusing on commodity products. However, rapid external changes have made it difficult to sustain this approach. A transition to low-carbon, high-value-added products is absolutely necessary." Under his leadership, LG Chem has taken steps to reduce its reliance on commodity petrochemicals. In March last year, the company suspended operations at its styrene monomer (SM) plant in Yeosu and demolished its SM plant in Daesan. It is also considering selling its no. 2 naphtha cracking center (NCC) in Yeosu. To increase the proportion of high-value-added materials, LG Chem is converting two out of six PVC production lines at the Yeosu plant to produce ultra-high-molecular-weight PVC for EV charging cables. The company is also expanding its portfolio with polyolefin elastomers (POE) for solar panels, styrene-butadiene rubber (SSBR) for EV tires, and C3-IPA, a semiconductor cleaning solution, to secure new growth drivers. During a conference call on April 3 regarding fourth-quarter earnings, LG Chem stated, "We will continue restructuring our commodity business and expand our high-value pipeline to improve profitability." In his New Year’s address, CEO Shin declared, "We will continue making 2025 another ‘year of execution’ following 2024 by proactively and aggressively advancing portfolio optimization. Our focus will be on strengthening our execution capabilities while materializing differentiated competitiveness." #LGChem #ShinHakCheol #PetrochemicalIndustry #BusinessTransformation #EthyleneMarket #HighValueMaterials #ChemicalIndustry #PortfolioOptimization #KoreanBusiness #GlobalTrade
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- Nongshim Reconsiders ‘U.S. Third Plant’ as Shin Dong-won Weighs Response to ‘Trump Tariffs’
- Shin Dong-won, chairman of Nongshim, is facing growing concerns over the "Trump tariff risk." Last year, Chairman Shin was considering building a third factory in the United States to meet the increasing demand for ramen in the local market. However, he shifted his strategy to constructing an export-only factory in Busan. This change came as former U.S. President Donald Trump announced plans to impose tariff barriers on countries worldwide, making the need for expanding manufacturing facilities in the U.S. more pressing. According to the food industry on April 4, there are speculations that Nongshim may reconsider building a new plant in the U.S. to mitigate the risks of tariffs imposed by the U.S. government. To address the tariff-related risks, which are a top priority of Trump's second-term policies, having additional factories in the U.S. could be a more effective solution. The Trump administration has already signaled a global tariff war. On April 1, Trump signed an executive order imposing tariffs of 25% on Canada and Mexico and 10% on China, which took effect on April 4. Although he abruptly delayed the tariffs on Canada and Mexico for a month just before implementation, many analysts believe that the risk remains, given Trump's negotiating style. Considering Trump’s strong "deal-maker" approach, experts point out that he could use tariffs as a leverage tool whenever he believes the U.S. is not benefiting enough. South Korea is not exempt from this risk. Since Trump's campaign days, when he pledged to apply a universal minimum tariff of 10% on all countries, South Korea’s major export companies have been closely monitoring the potential impact of his administration. The repercussions are already being felt. On April 3, the stock prices of major domestic food companies declined across the board as concerns grew that the U.S. government could impose successive tariff barriers on various countries, potentially impacting South Korean food exporters. For Chairman Shin, the tariff risk is an unavoidable burden. Nongshim currently operates two factories in the U.S., but the production capacity of these plants alone is insufficient to meet local consumer demand. A Nongshim official stated, "If we build another plant in the U.S., we expect that local sales will increase in line with the expanded production capacity. The first and second plants are already running at full capacity, and a new factory would allow us to better meet demand." Chairman Shin had hinted at this need during Nongshim’s annual general shareholders’ meeting in March 2023, saying, "We are considering constructing a third plant in the U.S., with the East Coast being a strong candidate." However, his final decision was to expand in South Korea rather than in the U.S. In June of last year, Nongshim put its U.S. third-plant plan on hold and instead opted to build an export-dedicated factory at the Noksan plant in Busan to meet the rising overseas demand. Nongshim explained that, after evaluating the business feasibility of an additional U.S. factory, the costs of acquiring land, purchasing equipment, and labor were too high, making it an unfavorable time for investment. Nongshim is currently investing KRW 191.8 billion (US$ 138.3 million) in the construction of the Busan export-only factory. Groundbreaking is expected to begin soon, with the goal of completing the investment by the end of April 2026 and starting operations in the second half of next year. This marks the first time in 17 years that Nongshim has built a ramen factory in South Korea. Once completed, the company’s annual production of export ramen will double from the current 500 million units to 1 billion units. However, with Trump's second administration now a reality, some argue that it is time for Nongshim to reassess its strategy. If the tariff risk materializes, building a new factory in the U.S. could be a long-term advantage for the company. A year ago, Trump's re-election was uncertain, but now that his second term is underway, a reassessment of the situation is necessary. Nongshim’s overseas sales ratio was around 34% in 2020, but it increased to 37% in 2021, 39% in 2022, and remained at 39% in 2023. An estimated 40% of the company's total operating profit also comes from overseas markets. Sales in the U.S. are growing rapidly. Last year, the Financial Times, citing market research firm Euromonitor International, reported that Nongshim’s largest overseas market is the United States, where the company holds a 25.4% market share. Nongshim ranks second in the U.S. market, following Japan’s Toyo Suisan, which dominates with about 50% market share. In July 2023, Chairman Shin sent an email to employees expressing his ambition to expand in the U.S. market, stating, "By 2023, we aim to triple our annual revenue in the U.S. and become the number one ramen brand." Chairman Shin’s decision to continue the leadership of CEO Lee Byung-hak, a production expert, is also seen as reflecting concerns about securing production bases. CEO Lee is widely recognized as an expert in production management within and outside of Nongshim. Since joining the company in 1985 as part of the quality development team, he has held key positions such as production manager at the Anyang and Gumi plants, production technology team leader at Anyang, and factory manager at both Gumi and Anyang. Before becoming CEO, he served as the head of production. Given that CEO Lee has overseen Nongshim’s largest production facilities—the Gumi and Anyang plants—and eventually took charge of production for all Nongshim factories, his expertise is unquestionable. CEO Lee played a key role in implementing a smart factory system at the Gumi plant, making Nongshim the first ramen company in South Korea to do so. He was responsible for enabling the factory to produce 600 packs of ramen per minute. Considering that Nongshim must carefully deliberate its production base strategy, it is likely that Chairman Shin will continue to rely on CEO Lee’s expertise for the time being. In fact, Lee retained his position in last year’s executive reshuffle, suggesting that he may have his term extended at the upcoming general shareholders' meeting in March. A Nongshim official stated, "The plan to build a new factory in the U.S. is currently on hold," adding, "It is difficult to confirm whether the management is reassessing the construction of a U.S. plant in response to the tariff risk." #ShinDongWon #Nongshim #TrumpTariffs #USFactory #RamenMarket #FoodIndustry #GlobalExpansion #ExportStrategy #ProductionManagement #KoreanBusiness
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- Chung Shin-a Unveils Kakao’s AI Blueprint, Partners with OpenAI for Joint Products
- “This is a great moment to share the news of Kakao’s strategic partnership with OpenAI. This collaboration signifies that Kakao has secured the most advanced technological environment in South Korea.” Chung Shin-a, CEO of Kakao, made this statement at a joint press conference on April 4 at The Plaza Hotel in Jung-gu, Seoul, announcing the strategic partnership with OpenAI. This marks the first time a South Korean company has entered into a strategic alliance with OpenAI. The partnership was formed as a result of mutual strategic interests—Kakao's goal of optimizing AI models for its services aligned with OpenAI’s aim of expanding its global ecosystem. After continuous discussions since September of last year, the two companies decided to move forward with the collaboration. CEO Chung stated, “Kakao has already established a strong business ecosystem in South Korea, but in the AI era, what we need is a technological ecosystem. While other companies focus on enhancing model performance, we have been considering how to secure the best AI models tailored for our services and how to use them to provide optimal AI-driven services.” Since Chung took the helm at Kakao in March last year, the company has shifted its strategy from focusing on in-house large language model (LLM) development to leveraging its strengths to provide AI services. In October of last year, Kakao introduced its "AI Orchestration" strategy, which actively incorporates external AI models. This collaboration with OpenAI is expected to reinforce that direction. Chung further explained, “OpenAI is the best partner for Kakao, as it enables us to integrate AI technology optimized for our services and development speed, leveraging Kakao’s long-standing service expertise.” Sam Altman, CEO of OpenAI and the creator of ChatGPT, made a surprise appearance at the event. Wearing yellow socks—the signature color of Kakao—Altman said, “I have always liked Kakao,” adding, “We share the same AI vision.” Through this partnership, Kakao will integrate OpenAI’s technology into its key services, including KakaoTalk and Kanana. The two companies also plan to co-develop new products. However, specific details regarding joint products were not disclosed at the event. It was revealed that the two companies are still in the brainstorming phase, exploring ideas in response to high-demand user needs. This partnership does not involve equity acquisition or the establishment of a joint venture. Instead, both companies plan to expand their collaboration gradually over the long term. Chung emphasized, “There are many types of collaboration, but we are focusing on co-developing products. We are investing not only financial capital but also personnel, with teams from both OpenAI and Kakao working together.” Kakao has previously been perceived as lacking a clear competitive edge in AI compared to domestic rivals, with an unclear direction in its AI business strategy. Through this collaboration, Kakao aims to launch various AI services and enhance its competitiveness in the field. The first AI service to be released under this initiative will be "Kanana," which CEO Chung introduced at a developer conference in October last year. After undergoing a closed beta test (CBT), it is set for official launch later this year. Kakao also plans to introduce additional AI-powered services in collaboration with OpenAI. Chung stated, “We are targeting the Kanana launch for this year, but we want to ensure it meets a high standard, so there are still many areas to refine. This year, we plan to develop multiple AI services that seamlessly integrate into users’ daily lives and accelerate development speed, positioning this as a period of transformation.” The partnership has also drawn attention as it comes amid increasing competition in the AI industry. With Chinese startups, such as DeepSeek, intensifying their challenge against established players like OpenAI, this alliance is seen as a strategic move by OpenAI to expand its ecosystem through collaboration with a major South Korean company. Altman remarked, “OpenAI’s goal is to deliver the benefits of AI to everyone. To achieve this, we need not only advanced model research but also excellent products,” expressing optimism about co-developing various products with Kakao. #Kakao #OpenAI #AIPartnership #AIOrchestration #ArtificialIntelligence #SamAltman #KakaoTalk #TechInnovation #KoreaAI #AIIntegration
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- Woori Financial Group Braces for FSS Inspection, Yim Jong-ryong’s Expansion at Risk
- With the Financial Supervisory Service (FSS) set to release its inspection results for financial holding companies and banks, tension is rising at Woori Financial Group. The FSS has already signaled a “strict approach.” As Woori Financial Group chairman Yim Jong-ryong has placed a major bet on acquiring an insurance company to complete the group's non-banking portfolio, the FSS report is expected to be a key indicator of whether the acquisition will receive regulatory approval. According to the financial industry on January 3, the FSS will announce the *2024 Inspection Results for Major Financial Holding Companies and Banks* on January 4. This announcement will cover not only Woori Financial Group but also KB Financial Group and NH Financial Group. As the announcement approaches, attention is increasingly focused on Woori Financial Group, which is at a critical juncture in its bid to transform into a comprehensive financial group encompassing banking, securities, and insurance. In August 2023, Woori Financial Group signed acquisition agreements for Tongyang Life and ABL Life and submitted an acquisition approval application to the Financial Services Commission (FSC) in January 2024. The acquisition of Tongyang Life and ABL Life is seen as Yim’s key strategy to strengthen Woori Financial’s non-banking sector. Woori Financial is the only one among South Korea’s four major financial holding companies without an insurance subsidiary. Having secured a securities portfolio with the acquisition of Korea Post Securities in May 2024, Woori now aims to complete its non-banking structure by adding an insurance business. However, industry observers caution that the acquisition could be jeopardized depending on the FSS inspection results. According to the Financial Holding Company Supervision Regulations, financial holding companies must maintain a minimum *Management Status Evaluation* grade of 2 or higher to acquire a new financial subsidiary. Although the FSS is not expected to release the overall evaluation grade in this report, if Woori Financial later receives a grade of 3, it could face difficulties in proceeding with the acquisition of Tongyang Life and ABL Life. The concern is that Woori Financial’s inspection results are unlikely to be lenient. The FSS’s regular inspection of Woori Financial and Woori Bank was initially scheduled for December 2023. However, as the domestic political landscape shifted into impeachment proceedings, the announcement was postponed twice—first to January 2025 and then to February. FSS Governor Lee Bok-hyun stated in December 2023, regarding the delay, "The intention is to present the findings in a firm and strict manner to the public and the market, in line with principles," adding, "If the goal had been to downplay the issue, we would have released the report this month in a softer manner." Meanwhile, the core issue in Woori Financial’s inspection—the alleged improper loans involving former chairman Sohn Tae-seung’s relatives—has grown in scale, reaching KRW 50 billion (USD 36.1 million). On January 24, Woori Financial revised its disclosure, adjusting the embezzlement amount related to improper loans to KRW 51.7 billion (USD 37.3 million). The original figure was reported as KRW 35 billion (USD 25.2 million), but additional illegal loans exceeding KRW 10 billion (USD 7.2 million) were uncovered during the prosecution’s investigation. Even if Woori Financial receives a grade of 3 in the Management Status Evaluation, it could still seek FSC approval as a final option. The FSC has the discretion to approve subsidiary acquisitions in exceptional cases if the acquiring financial institution demonstrates the ability to improve its rating to grade 2 or higher through capital increases and asset restructuring. However, depending on the FSS inspection’s overall tone, not only the insurance acquisition but also Yim’s broader non-banking expansion strategy could face hurdles. The results of the FSS review could also impact the approval process for Woori Investment & Securities' investment brokerage license. Without an investment brokerage license, Woori Investment & Securities would be unable to engage in corporate finance (IB) activities such as initial public offerings (IPOs) and derivatives trading, limiting its ability to contribute to the group’s overall earnings. In his New Year's address, Yim stated, "We cannot remain at the edge of a cliff, standing still," adding, "Rebuilding Woori Financial’s reputation on a solid foundation of trust is a task we must accomplish." He further emphasized, "We will secure a strong foundation for growth and elevate our status as a comprehensive financial group." #WooriFinancialGroup #YimJongRyong #FinancialSupervision #BankingIndustry #InsuranceAcquisition #FinancialRegulation #FSSInspection #CorporateFinance #InvestmentStrategy #KoreanFinance
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- Lee Jae-yong Freed from Legal Risks, Eyes Return as Registered Director and Major Investments
- Lee Jae-yong, chairman of Samsung Electronics, has been acquitted in the appellate trial for the ‘Cheil Industries-Samsung C&T Merger Case,’ effectively freeing him from legal risks. With his legal uncertainties cleared, Lee is expected to actively tackle the "Samsung Electronics crisis" by considering his return as a registered director and pursuing large-scale investments and mergers and acquisitions (M&A). On January 3, the Seoul High Court's Criminal Division 13 (Presiding Judges Baek Kang-jin, Kim Sun-hee, and Lee In-soo) delivered a not-guilty verdict in Lee’s second trial related to the alleged unlawful merger and accounting fraud tied to his management succession. Lee had been accused of orchestrating illicit transactions and accounting fraud during the 2015 merger of Cheil Industries and Samsung C&T to secure management control at minimal cost and strengthen his grip over the group. However, the appellate court ruled, "It is difficult to accept the prosecution’s claim that the timing of the Cheil Industries-Samsung C&T merger was arbitrarily chosen, or that stock price manipulation and illegal transactions occurred during the stock purchase request period," adding, "It is also hard to conclude that the Samsung C&T-Cheil Industries merger report was falsified." Regarding the allegations of accounting fraud, the court stated, "It is difficult to see the accounting treatment of Samsung Biologics and Samsung Bioepis as fraudulent." The court also maintained the first trial’s ruling that the evidence obtained by prosecutors through seizures lacked admissibility. "The fact that the defense did not explicitly object does not make the procedure lawful. The prosecution must prove there was active consent, but such proof was not provided," the court ruled. All 13 co-defendants, including Choi Ji-sung, former head of Samsung Group’s Future Strategy Office, Kim Jong-jung, former strategy team leader, and Jang Choong-ki, former deputy chief of the office, were also acquitted as in the first trial. Although prosecutors still have the option to appeal to the Supreme Court, appellate court rulings are typically final unless there is a significant legal misinterpretation. Therefore, Lee has effectively put behind the legal risks that have persisted since the July 2015 Samsung C&T-Cheil Industries merger. Lee’s acquittal is expected to accelerate his return as a registered director at Samsung Electronics. Since completing his term as an inside director in October 2019, Lee has remained an unregistered executive. However, amid Samsung Electronics’ ongoing crisis, there is growing internal and external pressure for his return to a registered director role to reinforce responsible management. Among the heads of South Korea’s four largest conglomerates—Samsung, SK, Hyundai Motor, and LG—Lee is the only one serving as an unregistered executive. There is speculation that a proposal to reinstate Lee as a registered director may be presented at the Samsung Electronics shareholders’ meeting as early as March 2024. Analysts also predict that Lee will accelerate large-scale investments that had been delayed. Although he was officially appointed chairman of Samsung Electronics on October 28, 2022, Lee had been relatively inactive in future-oriented investment activities due to legal risks. Since acquiring the automotive component company Harman in 2016, Samsung Electronics has not executed any major M&A deals, which has made securing new business opportunities more challenging. Additionally, Samsung Electronics has struggled to maintain its dominance in the memory semiconductor sector, fueling concerns about the company's future. Given these factors, Lee is expected to consider acquisitions in artificial intelligence (AI), robotics, medtech (medical technology), HVAC systems, and semiconductor-related fields to strengthen Samsung Electronics’ competitive edge. #Samsung #LeeJaeYong #SamsungElectronics #MergerCase #LegalVictory #InvestmentStrategy #CorporateLeadership #Semiconductor #AI #MergersAndAcquisitions
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- Chung Ji-sun Speeds Up Holding Company Transition, Strengthens Shareholder Trust
- Hyundai Department Store Group is in the final stages of transitioning to a holding company structure while accelerating efforts to secure funds for dividend expansion. As part of its corporate value enhancement plan announced last year, Hyundai Department Store Group has set a goal to increase the annual dividend of its holding company, Hyundai GF Holdings, to KRW 50 billion (USD 36.1 million) by 2027 and raise its shareholder return ratio to over 80%. Additionally, the group has introduced a separate semi-annual dividend of over KRW 10 billion (USD 7.2 million), further strengthening its shareholder return policy. While some have questioned the feasibility of this plan, expectations for securing dividend resources have grown due to improving performance among key subsidiaries and continued equity purchases. As a result, confidence in dividend expansion is increasing, leading to a recovery in shareholder trust. According to the retail industry on January 3, Hyundai Department Store Group’s transition to a holding company structure is in its final stages. To meet the regulatory requirements for holding companies, Hyundai GF Holdings has announced plans to acquire stakes in Daewon Kangup and Hyundai Futurenet from its affiliates. Hyundai GF Holdings will purchase a 10.1% stake in Daewon Kangup from Hyundai Home Shopping and Hyundai Department Store at KRW 4,620 (USD 3.33) per share, totaling KRW 28.8 billion (USD 20.8 million). This transaction will increase Hyundai GF Holdings’ stake in Daewon Kangup from 22.7% to 32.8%. Under the Fair Trade Act, holding companies must own at least 30% of listed subsidiaries within two years of establishment. Since Hyundai GF Holdings has now been a holding company for one year, its recent equity purchases are seen as an effort to finalize its transition. Additionally, Hyundai Home Shopping has decided to acquire a 28.5% stake in Hyundai Futurenet from Hyundai GF Holdings and Hyundai Department Store. The transaction is valued at KRW 4,290 (USD 3.09) per share, amounting to KRW 135 billion (USD 97.3 million). Hyundai Futurenet is a subsidiary of Hyundai GF Holdings, but it does not meet the Fair Trade Act’s requirement that subsidiaries be wholly owned. This equity restructuring aims to resolve the regulatory issue. As of 2023, Hyundai GF Holdings' total dividend payout was approximately KRW 31.2 billion (USD 22.5 million), with KRW 6.2 billion (USD 4.5 million) allocated to minority shareholders, excluding the owner family. Considering Hyundai GF Holdings' plan to introduce a semi-annual dividend of over KRW 10 billion (USD 7.2 million) and expand its annual dividend to KRW 50 billion (USD 36.1 million) by 2027, the total dividend is projected to rise to KRW 11.9 billion (USD 8.6 million), reflecting an increase of over 90% compared to 2023. One of the key factors boosting investor confidence in the dividend policy is the improving performance of Hyundai GF Holdings' subsidiaries. In the third quarter of 2023, Hyundai GF Holdings recorded consolidated revenue of KRW 2.0114 trillion (USD 1.45 billion) and an operating profit of KRW 66.6 billion (USD 48 million), marking a year-on-year increase of 295.1% in revenue and 1,215.3% in operating profit. Hyundai Green Food significantly outperformed market expectations due to an increase in group catering contracts and strong performance in the restaurant business, while Hyundai Livart also achieved higher-than-expected results. Industry experts anticipate that Hyundai Futurenet's full integration into Hyundai Home Shopping will further enhance financial performance. Hyundai Futurenet’s media, advertising, and IT infrastructure businesses are expected to create synergies with home shopping, and structural changes will strengthen collaboration between the two companies. Moreover, vertical integration between home shopping and digital advertising/media businesses is expected to improve operational efficiency while enhancing data-driven marketing and content production capabilities. Nam Seong-hyun, an analyst at IBK Investment & Securities, stated, "The financial performance of key subsidiaries is improving, and Hyundai Green Food, a core business unit, is continuing its growth. Given these trends, Hyundai GF Holdings is likely to maintain its improving earnings trajectory." He added, "As Hyundai GF Holdings expands its control over subsidiaries, its dividend resources will increase, further strengthening investor confidence in the company’s long-term dividend policy." Currently, Hyundai GF Holdings owns Hyundai Home Shopping, Hyundai Green Food, Hyundai Livart, Hyundai Everdigm, Hyundai Department Store, Hyundai EZwell, and Daewon Kangup. Hansum is under Hyundai Home Shopping and is thus classified as a sub-subsidiary of Hyundai GF Holdings. #HyundaiDepartmentStore #HyundaiGFHoldings #CorporateRestructuring #HoldingCompany #DividendExpansion #RetailIndustry #InvestmentStrategy #ShareholderReturns #HyundaiGreenFood #HomeShoppingBusiness
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- Korea Investment Management’s ‘Bae Jae-kyu Magic’ Works, ETF Market’s Big 3 Structure Set for a Shake-up
- Bae Jae-kyu, CEO & President of Korea Investment Management, is on the verge of breaking into the top three in Korea’s exchange-traded fund (ETF) market. In just three years since taking office, Bae has increased Korea Investment Management’s ETF net assets by more than KRW 10 trillion (US$ 7.2 billion), engaging in a fierce battle for market share with KB Asset Management. If Korea Investment Management continues its growth trajectory in the ETF market this year and solidifies its position in third place, it will mark the first change in the "Big 3" rankings in ten years, a structure that has remained unchanged since 2015. According to the Korea Financial Investment Association’s statistics on the 31st, as of the 24th, Korea Investment Management's total ETF net assets stood at KRW 14.09 trillion (US$ 10.2 billion), closely trailing KB Asset Management’s KRW 14.35 trillion (US$ 10.3 billion). In terms of market share, KB Asset Management holds 7.80%, while Korea Investment Management follows closely at 7.66%, with only a few hundred billion won differentiating their rankings. From January 21 to 23, Korea Investment Management briefly surpassed KB Asset Management in ETF net assets, reclaiming the industry’s third spot. This close competition has continued since Korea Investment Management first overtook KB Asset Management on December 27, 2023. At the end of 2021, before Bae took office, Korea Investment Management's ETF net assets were KRW 3.42 trillion (US$ 2.5 billion), with a market share of 4.63%. At the time, the gap with KB Asset Management (KRW 5.84 trillion or US$ 4.2 billion, 7.90% market share) was 2.27 percentage points. However, after Bae became CEO, the company's ETF net assets surpassed KRW 5 trillion (US$ 3.6 billion) in July 2023, exceeded KRW 10 trillion (US$ 7.2 billion) in June 2024, and have now reached KRW 14 trillion (US$ 10.1 billion). This is a remarkable achievement considering that Samsung Asset Management and Mirae Asset Global Investments dominate about 75% of the Korean ETF market, making it difficult for competitors to expand their market share. Since 2015, the top three in Korea’s ETF market have been Samsung Asset Management, Mirae Asset Global Investments, and KB Asset Management. If Korea Investment Management surpasses KB Asset Management this year, it will disrupt a decade-long ranking system in the industry. For the past three years, Korea Investment Management has already ranked third in personal net purchases in the ETF market, trailing only Mirae Asset’s "TIGER ETF" (KRW 12.9 trillion or US$ 9.3 billion) and Samsung Asset Management’s "KODEX ETF" (KRW 7.3 trillion or US$ 5.3 billion). Since Bae became CEO in 2022, Korea Investment Management’s ETF net assets have increased by nearly KRW 10 trillion (US$ 7.2 billion), with personal investors accounting for 40% (KRW 4.1 trillion or US$ 3 billion) of this growth. In 2023 alone, individual investors contributed KRW 2.76 trillion (US$ 2 billion) in inflows to Korea Investment Management’s ETFs. Analysts attribute this success to the rebranding of its ETF line to "ACE" in July 2022, which helped the company gain strong traction in the market. ETFs are highly favored by retail investors, and their presence in individual retirement pension (IRP) and other retirement accounts has been expanding significantly. This makes individual investor net purchases an important metric for evaluating ETF market competitiveness. Korea Investment Management also gained attention by offering the most funds among the top 10 ETFs with the highest annual returns in 2024. The firm’s "ACE U.S. Big Tech TOP7 Plus Leverage (Synthetic)" ETF recorded a 197.1% return last year, ranking first overall. Additionally, the "ACE U.S. Stock Bestseller" (84.0%) and "ACE U.S. Big Tech TOP7 Plus" (82.1%) ranked 8th and 9th, respectively, with three of the company's ETFs making it into the top 10 for annual returns. Bae has emphasized “investments that make money for customers” as the key strategy for Korea Investment Management’s ETFs. As the firm continues to achieve strong performance, industry experts acknowledge its growing influence. Every time the firm surpasses a significant milestone—KRW 5 trillion (US$ 3.6 billion), KRW 10 trillion (US$ 7.2 billion), and beyond—Bae has reiterated, “Our goal at Korea Investment Management is to provide products that help customers earn money and deliver outstanding results.” Korea Investment Management previously ranked third in the ETF market in 2013, overtaking Kiwoom Asset Management. However, two years later, KB Asset Management reclaimed the third spot, pushing Korea Investment Management to fourth place. In 2018, the firm dropped to fifth place, overtaken by Hanwha Asset Management, before rebounding to fourth place in 2019, where it has remained for the past decade. Nam Yong-soo, Head of ETF Management at Korea Investment Management, stated, “We select stocks and sectors with high long-term growth potential and develop unique indices internally. This strategy has resulted in over 40% of ACE ETF assets coming from newly launched products. In 2024, we will focus on the rising trend of ETFs in the pension market, offering innovative long-term investment solutions to sustain our growth.” #KoreaInvestmentManagement #BaeJaekyu #ETF #Big3 #Investment #StockMarket #Finance #PersonalInvestment #RetirementFunds #Korea
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- Baemin and Coupang Eats Engage in Fierce Lunar New Year Discount Battle, Intense Competition for Kim Beom-seok
- Kim Beom-seok, CEO of Woowa Brothers, and Bom Kim, Chairman of Coupang Inc. (Coupang’s parent company), have engaged in fierce competition over the delivery app market during the Lunar New Year holiday. Both platforms anticipated a surge in food delivery demand during the holiday and issued a significant number of discount coupons for customers. While both companies stated that these promotions were not particularly special, the timing of these campaigns—amid intensifying competition between Baemin (Baedal Minjok) and Coupang Eats—drew significant consumer attention. According to industry sources and consumer community feedback on the 31st, both Baemin and Coupang Eats launched large-scale discount promotions to attract users during the extended nine-day holiday period. Baemin has been running the “Lunar New Year Lucky Pouch Coupon Event” from January 27 to February 2, where users can receive random coupons with benefits of up to KRW 18,000 (US$ 13). Community posts showed that users received multiple coupons, including five KRW 2,000 (US$ 1.44) discount coupons and one KRW 4,000 (US$ 2.88) discount coupon, labeled as “Lunar New Year Continuous Discount Coupons.” Additionally, Baemin Club members—subscribers to Woowa Brothers’ paid membership service—received exclusive discount coupons. These “Lunar New Year Baemin Club Exclusive Coupons” allowed users to receive a KRW 5,000 (US$ 3.60) discount on orders over KRW 5,000 (US$ 3.60), essentially making small orders free. Coupang Eats also launched its own promotional campaign, targeting customers subscribed to Coupang’s paid membership, WOW Membership. Selected members received a “Secret Coupon” granting a KRW 4,000 (US$ 2.88) discount, applicable to any menu. This move gained attention in consumer forums, with users noting that Coupang Eats typically does not issue membership-wide discount coupons, making this an unusual and strategic initiative. Both Baemin and Coupang Eats insisted that their recent coupon distributions were not part of any special promotional strategy but rather aligned with the seasonal increase in delivery demand during holidays. However, market observers believe that the increasing competition between the two platforms played a role in these promotions. Baemin has long dominated the food delivery market, but Coupang Eats’ rapid growth over the past year has created challenges for the market leader. According to big data platform Mobile Index, as of November 2023, Baemin had 22.43 million monthly active users (MAUs), while Coupang Eats had 9.63 million MAUs, reducing the gap by 43% compared to January 2024. A review of monthly credit card payment trends further highlights Coupang Eats’ sharp growth. The total amount of card payments made through Coupang Eats in November 2023 reached KRW 587.8 billion (US$ 423.8 million), marking a 118% increase compared to January. In contrast, Baemin’s card payment volume decreased from KRW 1.04 trillion (US$ 750 million) in January to KRW 958.8 billion (US$ 691 million) in November. Mobile Index reported that Coupang Eats’ market share in the delivery and pickup industry increased by 16.9 percentage points over the past year, steadily closing the gap with Baemin, which had long monopolized the market. According to app and retail analytics service WiseApp·Retail·Goods, Baemin’s market share fell to 59.2% in June 2023, breaking the 60% threshold for the first time in two years. Coupang Eats has been closing the gap with Baemin rapidly due to aggressive promotions since last year. Industry experts believe that Woowa Brothers’ recent management changes also reflect its effort to regain lost ground. In January, Woowa Brothers held an extraordinary general meeting and board meeting, appointing Kim Beom-seok, who previously led the top food delivery app in Turkey, as its new CEO. Kim Beom-seok wasted no time making his ambitions clear. Less than a week after taking office, he stated in an all-hands meeting, “By 2025, I will put Baemin back on a growth trajectory. To achieve this, we must fundamentally change our approach, prioritizing customer value maximization and enhancing customer experience.” Meanwhile, Bom Kim, Chairman of Coupang Inc., has been tightening his grip on the market through aggressive investments in Coupang Eats, which has overtaken Yogiyo to become the second-largest delivery app in Korea. He has also expressed strong confidence in Coupang Eats’ potential to investors. During Coupang’s Q3 2024 earnings conference call in November last year, Bom Kim remarked, “The enthusiastic response from Coupang Eats customers who have experienced our exceptional service and value is highly encouraging.” Bom Kim’s ambitions for Coupang Eats extend beyond Korea. Two weeks ago, Coupang Eats began a pilot operation in Minato, Tokyo. The move marks Coupang’s second attempt to break into the Japanese market, following its previous entry with a 10-minute quick commerce service, which was withdrawn after two years. The industry is closely watching how this new approach will unfold. #Baemin #CoupangEats #KimBeomseok #BomKim #FoodDelivery #Korea #Ecommerce #TechCompetition #DigitalBusiness #Startup
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- Hyundai E&C rebounds: CEO Lee Han-woo’s road from loss to profit
- Hyundai Engineering & Construction (Hyundai E&C) is seeking a path to recovery after recording its largest-ever loss last year. CEO Lee Han-woo is expected to focus on a swift performance rebound and the stable execution of quasi-independent projects to achieve the company's ambitious goal of reaching a record-high operating profit this year. According to an analysis compiled by the securities industry on the 31st, following the implementation of a “big bath” accounting strategy in 2024 to address potential losses, expectations are growing that Hyundai E&C will record its highest operating profit since 2016. According to financial information provider FnGuide, Hyundai E&C’s consolidated operating profit for this year is projected to average KRW 962 billion (USD 693.9 million), which is more than KRW 200 billion (USD 144.3 million) higher than the KRW 700 billion (USD 504.9 million) range forecast before the company's earnings announcement on the 22nd. In the fourth quarter of last year, Hyundai E&C reflected losses of approximately KRW 1.3 trillion (USD 937.5 million) at its subsidiary Hyundai Engineering due to cost adjustments at overseas sites, while also absorbing about KRW 400 billion (USD 288.6 million) in losses on its own. As a result, Hyundai E&C recorded a consolidated operating loss of KRW 1.22 trillion (USD 879.9 million) last year. However, it is being evaluated positively that the company has completely removed factors that could continue to erode profitability. Jang Yoon-seok, a researcher at Yuanta Securities, stated, “The market’s focus is on Hyundai E&C’s 2025 performance rather than the massive loss recorded in 2024,” adding, “The recent cost reassessment suggests that the fourth quarter of last year was the lowest point, and the company now has a clear direction for improving profits.” However, the current operating profit forecast for Hyundai E&C still raises questions about whether it can achieve the aggressive management target of KRW 1.18 trillion (USD 851.6 million) in consolidated operating profit set by CEO Lee. For the first time in five years since 2020, Hyundai E&C has publicly announced its operating profit target, which places considerable expectations and pressure on CEO Lee, the first executive from a vice president-level background to lead the company. This year’s operating profit target is higher than the previous peak of KRW 1.16 trillion (USD 837.9 million) in 2016. Considering that last year’s operating loss was more than three times the KRW 382.6 billion (USD 275.9 million) loss recorded in 2001 during the company’s workout period, this year’s target is seen as highly ambitious. Breaking down Hyundai E&C’s consolidated operating profit target for this year, excluding other business segments, the standalone figure for Hyundai E&C is KRW 443.9 billion (USD 320.1 million), while Hyundai Engineering is expected to contribute KRW 633.1 billion (USD 456.5 million). Since Hyundai Engineering absorbed a significant portion of last year’s cost adjustments, it is expected to see a relatively stronger rebound compared to Hyundai E&C. The last time Hyundai E&C’s standalone operating profit was lower than Hyundai Engineering’s consolidated figure was in 2021, emphasizing the urgent need for Hyundai E&C to improve its performance. Analysts in the securities industry believe that whether Hyundai E&C can achieve its full-year consolidated operating profit target will depend on whether it can demonstrate improved profitability early in the year. Given this situation, Hyundai E&C’s first-quarter results under CEO Lee’s leadership are expected to face significant scrutiny. Lee Tae-hwan, a researcher at Daishin Securities, noted, “Considering Hyundai E&C’s profit target, the likelihood of generating profits this year rather than incurring one-time costs is high.” However, he added, “Since market expectations have risen, it is crucial that the company immediately enters a profit-improving trajectory starting from the first quarter.” CEO Lee is likely anticipating structural improvements in cost rates at domestic construction sites, in addition to the elimination of losses from overseas projects. Hyundai E&C expects to secure profitability as the proportion of domestic construction projects that began in 2021–2022, during a period of soaring raw material prices, starts to decline significantly this year. The proportion of Hyundai E&C’s domestic residential construction sites, which reflected high costs in the past, is expected to decrease from over 70% last year to around 50% this year. This marks the company’s transition into a “normalization” phase, where low-profit projects are being completed sequentially. Furthermore, CEO Lee is also looking at profitability improvements through the initiation of quasi-independent projects, where Hyundai E&C participates as both an investor and construction contractor. Hyundai E&C’s quasi-independent projects, in partnership with Inchang Development, are set to begin sequentially, starting with the KRW 5 trillion (USD 3.6 billion) development of the CJ factory site in Gayang-dong. Beyond the Gayang-dong CJ factory site, where Hyundai E&C recently completed its project financing (PF) conversion and is set to begin construction in March, the company is also involved in the development of the Hilton Hotel site near Seoul Station, the E-Mart Gayang branch site, the Le Méridien Hotel site in Yeoksam, and the Crown Hotel site in Itaewon. These projects are considered highly profitable, as they generate both construction profits and development profits from sales and disposals, resulting in a higher return than traditional contract-based projects. According to industry estimates, Hyundai E&C’s gross profit margin (GPM) from quasi-independent projects is expected to be twice that of regular contract projects. However, one potential risk is that Hyundai E&C’s credit rating could be affected by the “big bath” strategy, which could, in turn, impact its quasi-independent projects. A downgrade in credit rating could lead to higher project financing costs, reducing profitability. Jo Jung-hyun, a researcher at IBK Investment & Securities, commented, “Hyundai E&C’s large-scale ‘big bath’ has raised expectations for a strong earnings rebound by eliminating concerns about future contingent costs.” However, he warned, “If the company’s credit rating is downgraded, increased PF financing costs could harm the profitability of its quasi-independent projects.” Following Hyundai E&C’s earnings announcement, Korea Ratings issued a report stating that it would incorporate factors such as “the specific reasons for site losses and the potential for future business performance improvement, changes in fundamental business competitiveness including overseas project management capabilities, and financial resilience, including PF contingent liabilities” into Hyundai E&C’s credit rating (AA-/Stable). Meanwhile, Korea Investors Service maintained Hyundai Engineering’s corporate credit rating at “AA-” but downgraded its rating outlook from “Stable” to “Negative” due to the company’s large losses, the time required for recovery in business and financial stability, and uncertainties in cost management. However, some analysts believe that Hyundai E&C’s abundant cash holdings and stable financial indicators, combined with the strong capabilities of its parent group, reduce the likelihood of a credit rating downgrade. As of the end of last year, Hyundai E&C’s consolidated cash and cash equivalents, including short-term financial instruments, stood at KRW 5.39 trillion (USD 3.89 billion), with a net cash balance of KRW 2.15 trillion (USD 1.55 billion). The company’s liquidity ratio (144.7%) and debt ratio (178.8%) are also considered strong within the construction industry. Additionally, Hyundai E&C’s current credit rating does not factor in potential support from the Hyundai Motor Group. If group support were to be reflected, it could have a positive impact on the company’s credit rating. Korea Ratings stated, “Since a significant portion of losses was incurred by Hyundai Engineering, Hyundai E&C’s overseas business losses are relatively smaller on a standalone basis,” adding, “If business performance gradually recovers and construction payments from completed housing projects are collected smoothly, the company should be able to maintain financial resilience.” However, the agency also cautioned, “If Hyundai Engineering’s earnings uncertainty continues, it could inevitably have a negative impact on Hyundai E&C’s creditworthiness. We will further review the impact of this loss on Hyundai E&C’s standalone credit rating as well as the potential for intra-group support in times of crisis.” #HyundaiE&C #LeeHanWoo #OperatingProfit #ConstructionIndustry #BigBath #FinancialRecovery #ProjectFinancing #HyundaiEngineering #StockMarket #BusinessStrategy
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- Ham Young-joo Set for Reappointment as Hana Financial Group Chairman, Secures Final Candidacy for a New 3-Year Term
- Ham Young-joo, CEO & Chairman of Hana Financial Group, has been recommended as the final candidate for the next chairman. His recommendation as the final candidate effectively confirms his appointment as the next chairman, ensuring his reappointment. Ham Young-joo, CEO & Chairman of Hana Financial Group, has been selected as the final candidate for the next chairman of the group. Hana Financial Group announced on the 27th that it had conducted in-depth interviews with the shortlisted candidates and confirmed Ham Young-joo as the final candidate for the next chairman. Ham is expected to be officially appointed as the next CEO & Chairman after the regular general shareholders' meeting and board meeting scheduled for March. The in-depth interviews focused on four key areas: "entrepreneurship," "vision and mid-to-long-term management strategy," "expertise, experience, and global mindset," and "network and other competencies." Each candidate presented their proposals based on 14 detailed evaluation criteria. The Chairman Candidate Recommendation Committee (CCRC) of Hana Financial Group explained the background of Ham’s recommendation, stating, "With increasing internal and external uncertainties, it is more important than ever to have a leader with proven leadership, extensive experience, and deep management expertise to stably guide the group." Ham Young-joo has served as the president of the merged Hana Bank and as vice chairman of Hana Financial Group before taking on the role of group chairman in 2022 for a three-year term. The CCRC highlighted Ham’s leadership in driving the group’s growth through risk management and ESG (Environmental, Social, and Governance)-based management during his tenure as chairman. The committee further noted, "As the group’s CEO, Ham Young-joo enhanced organizational efficiency through effective management, internalized risk management and internal controls, and contributed to Hana Financial Group achieving its highest-ever business performance and record-high stock prices. This has led to both quantitative and qualitative growth of the group." Additionally, they emphasized his contributions to social responsibility, stating, "Ham Young-joo has demonstrated his managerial capabilities by fostering sustainable corporate value through initiatives such as completing the construction of 100 childcare centers as part of a shared growth strategy. Amidst the rapidly changing financial landscape, he is deemed the right person to navigate uncertainties and strengthen the group’s competitiveness for the future." Ham’s next term as chairman will be three years. Previously, in December 2024, Hana Financial Group had selected five final candidates for the chairmanship—three internal candidates and two external candidates. The internal candidates included Ham Young-joo, Lee Seung-yeol, Vice Chairman of Hana Financial Group, and Kang Sung-mook, Vice Chairman of Hana Financial Group and President of Hana Securities. The identities of the two external candidates were not disclosed. #HanaFinancialGroup #HamYoungjoo #CEO #Chairman #Banking #Finance #Leadership #ESG #RiskManagement #CorporateStrategy
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- KOGAS Turns Profit, Choi Likely to Avoid Dismissal Risk
- Korea Gas Corporation turned a profit last year, raising the likelihood that it will escape a D-grade in this year’s management evaluation. Choi Yeon-hye, President of Korea Gas Corporation, is expected to avoid the possibility of dismissal following two consecutive D-grades and to continue improving performance this year with the opportunity for LNG price stabilization and business expansion due to U.S. President Donald Trump’s resumption of LNG exports. According to opinions from the securities industry on the 24th, KOGAS is one of the major companies expected to have posted solid operating profit in the fourth quarter of last year. KOGAS recorded revenue of KRW 28.4098 trillion (US\$ 19.8 billion), operating profit of KRW 1.828 trillion (US\$ 1.3 billion), and net profit of KRW 815.4 billion (US\$ 567 million) for the cumulative period from the first to third quarter last year. Although specific earnings estimates have not yet been released, with the positive fourth-quarter trend and the cumulative results through the third quarter, net profit appears to be assured. At the end of 2023, KOGAS posted revenue of KRW 44.556 trillion (US\$ 31.0 billion), operating profit of KRW 1.553 trillion (US\$ 1.1 billion), and net loss of KRW 747.4 billion (US\$ 520 million). Overcoming this poor performance, the company returned to profitability last year. As of the end of September last year, the corporation also improved its consolidated debt ratio and net borrowing dependency ratio to 402.7% and 65.4%, respectively, compared to 482.7% and 69.7% at the end of 2023. President Choi is now more likely to avoid dismissal thanks to the company’s return to profitability last year. Choi was appointed president of Korea Gas Corporation in December 2022. The company received a D-grade in last year’s public enterprise management evaluation, which was based on the 2023 performance when Choi began her term. This was one step lower than the C-grade in 2023. The government may recommend the dismissal of the head of a public institution to the Public Institution Management Committee if the organization receives a D-grade for two consecutive years or an E-grade. KOGAS’s net losses and deteriorated financial condition were key factors in the D-grade, along with its integrity evaluation score. However, the return to profit last year is expected to reduce the burden in this year’s evaluation, and the company is considered likely to receive a better rating than D-grade if there are no unexpected variables. After receiving the D-grade last year, President Choi launched a task force to improve business performance. In a press release, President Choi stated, “KOGAS has made every effort to be a strong pillar for the people's economy by ensuring a stable supply of natural gas during the global crisis,” and added, “Going forward, we will carefully review our overall business operations from the public’s perspective and do our best to create better results by mobilizing all our capabilities.” Following last year’s return to profit, President Choi is also expected to gain an opportunity to further improve the company’s performance this year thanks to U.S. President Donald Trump’s energy policy. With the resumption of LNG exports by President Trump and the subsequent fall in LNG prices, KOGAS is likely to face an opportunity to expand its LNG business. The securities industry is paying attention to the LNG sector as the market expected to change and grow most rapidly under Trump’s energy transition policy. Lee Sang-heon, a researcher at IM Securities, said, “During Trump 2.0, we expect large-scale oil and natural gas development and production, along with expanded LNG exports,” and added, “As electricity demand increases, this will lay the foundation for global expansion of gas-based power generation.” Jeon Yu-jin, another researcher at IM Securities, also stated, “President Trump has ordered the immediate resumption of the approval process for new LNG export terminals in countries where the Biden administration had halted them,” and predicted, “U.S. LNG exports this year are expected to increase significantly compared to last year, due to Trump’s deregulation on natural gas exploration and production.” The expansion of U.S. LNG exports is expected to stabilize LNG prices, which will have a positive effect on reducing accounts receivable—the biggest financial burden for KOGAS. Kim Mi-hee, a researcher at Korea Ratings, said, “As LNG prices have been declining since 2023, KOGAS is expected to gradually recover its settlement losses through price adjustments.” In December last year, KOGAS promoted the introduction of long-term contracts for U.S. LNG, strengthening cooperation with the United States. President Choi is expected to continue expanding opportunities in the LNG business through stronger cooperation with the U.S. In her New Year’s address this year, President Choi listed securing overwhelming competitiveness in the natural gas market as the top priority among four core tasks for 2025. At the opening ceremony held at the Daegu headquarters, President Choi said, “We will wisely seek solutions through open communication with employees so that we can achieve remarkable results this year,” and added, “KOGAS will respond flexibly to the rapidly changing internal and external environment and take a leap forward.” #KOGAS #ChoiYeonHye #publicenterprise #managementevaluation #LNG #Trump #naturalgas #energystrategy #KoreaGas #profitturnaround
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- Samsung SDS Faces Dark Outlook as Affiliates Cut IT Investments: Lee June-hee Faces Tough Challenges
- Lee June-hee, CEO of Samsung SDS, envisions continued growth centered on artificial intelligence (AI) and cloud technologies. However, the impact of reduced IT investments due to this year’s economic downturn makes it unlikely for the company to achieve significant results. Samsung SDS heavily relies on group affiliates, including Samsung Electronics, for a substantial portion of its revenue. With Samsung Electronics and other affiliates facing challenging business conditions, there is speculation that this could lead to deteriorating profitability. On January 24, securities analysts noted that unfavorable internal and external conditions could affect Samsung SDS this year, potentially negatively impacting its performance. Samsung SDS has been expanding into new businesses, such as cloud and AI technologies, to improve its structure as a system integration (SI) company. Lee, who became CEO of Samsung SDS in November 2024, has pledged to align the company’s direction with this strategy. During an earnings conference call on January 23, Samsung SDS Vice President Lee Jung-hun stated, “We will enhance competitiveness and explore new business opportunities through new technologies such as cloud and generative AI services.” However, increasing economic uncertainty and the potential for reduced IT investments are darkening the outlook for Samsung SDS’s performance this year. Jung Won-seok, a researcher at Shin Young Securities, commented, “Due to expanding economic uncertainty, some domestic and overseas projects have been reduced or postponed. The effects of reduced IT investments may continue this year.” Indeed, the slight decrease in operating profit in the fourth quarter of last year was largely due to reduced IT investments by corporations amid economic downturns. In the fourth quarter of last year, Samsung SDS recorded KRW 3.6423 trillion (approximately USD 2.63 billion) in revenue and KRW 211.5 billion (approximately USD 152.6 million) in operating profit. Compared to the same period in 2023, revenue increased by 8%, but operating profit declined by 1%. Revenue met the market forecast of KRW 3.62 trillion (approximately USD 2.61 billion), but operating profit fell short of the market estimate of KRW 235 billion (approximately USD 169.5 million). A company representative explained to Business Post, “The fourth quarter is usually a period of increased revenue for IT service companies, but due to poor economic conditions, contracts were delayed, resulting in a decline in operating profit compared to previous years.” Another concern is Samsung SDS’s high dependence on internal transactions with affiliates, often cited as the company’s greatest weakness. According to the Fair Trade Commission in 2023, 65.82% of Samsung SDS’s revenue came from internal transactions, heavily relying on affiliates like Samsung Electronics. The issue is that Samsung Electronics’ semiconductor business is expected to continue its sluggish performance this year, negatively affecting the group’s overall results. Moreover, Samsung Electronics had been set to receive subsidies under the U.S. CHIPS Act during the Biden administration, but the arrival of the Trump administration, which opposes the CHIPS Act, raises the possibility of policy changes. If Samsung Electronics and other group affiliates reduce IT investments due to changes in external investment environments and economic downturns, it could directly lead to a decline in Samsung SDS’s revenue. Kim So-hye, a researcher at Hanwha Investment & Securities, remarked, “Starting with a slowdown in cloud revenue growth, it is necessary to monitor internal and external conditions and the recovery of major affiliates for the time being.” Lee is one of Samsung Group’s prominent IT and telecommunications technology experts. Born in 1969, he graduated from Seoul National University with a degree in electronic engineering and earned a master’s and Ph.D. in electrical and electronic engineering from the Massachusetts Institute of Technology (MIT). In 2006, he joined the DMC Research Center at Samsung Electronics. After serving as head of the Wireless Business Division’s Technology Strategy Team and as the Development Team Leader and Strategy Marketing Team Leader for the Network Business Division, he became CEO of Samsung SDS in November 2024. #SamsungSDS #LeeJuneHee #AI #cloud #ITinvestment #economicdownturn #SamsungGroup #semiconductors #CHIPSAct #business
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- NCSoft's Legal Battles Amid "Lineage-Like" Boom: Kim Taek-jin's Struggle to Protect the Lineage IP
- Kim Taek-jin, CEO of NCSoft, is engaged in a difficult legal battle to protect the company’s flagship IP (intellectual property), "Lineage," but no clear resolution is in sight. NCSoft, led by CEO Kim Taek-jin, recently lost a lawsuit against Kakao Games, and the copyright dispute with Webzen is also dragging on, making it challenging to safeguard the Lineage IP. On January 24, the gaming industry reported that the Seoul Central District Court dismissed NCSoft's lawsuit against Kakao Games and its subsidiary XLGAMES over alleged copyright infringement and unfair competition. This ruling comes two years after NCSoft filed a civil lawsuit in April 2023, claiming that "ArcheAge War" infringed on the copyright of its game "Lineage 2M." The court stated, "The plaintiff’s claims against the defendants are dismissed," and ruled that NCSoft must bear the litigation costs. This effectively marks a complete defeat for NCSoft. Following the first-instance court ruling, NCSoft announced its intention to appeal, signaling a prolonged legal battle. XLGAMES, a subsidiary of Kakao Games, developed "ArcheAge War." Song Jae-kyung, Chief Creative Officer (CCO) of XLGAMES, previously collaborated with Kim Taek-jin at NCSoft to develop Lineage. The fact that a game created by Song, often referred to as the "father of Lineage," became embroiled in a copyright dispute has drawn significant attention from the industry. "ArcheAge War" has been criticized for its similarities to Lineage-like games, with some gaming YouTubers and users pointing out noticeable resemblances between "ArcheAge War" and "Lineage 2M." Some have even mockingly suggested that "ArcheAge War" could serve as a benchmark for testing the limits of similarity allowed under copyright law. Prior to this lawsuit, NCSoft had filed numerous lawsuits against competitors. In 2021, NCSoft claimed that Webzen’s "R2M" plagiarized "Lineage M" and filed a lawsuit for copyright infringement and damages. While NCSoft won the first-instance ruling, the appeals decision is scheduled for March 27. Although NCSoft is expected to maintain its advantage in the second trial following its first-instance victory, there is widespread interest in how the recent loss to Kakao Games and XLGAMES will impact other ongoing disputes. NCSoft also filed a lawsuit against Kakao Games and Red Lab Games over "R.O.M." for similar reasons last year, and the first hearing was held at the Seoul Central District Court on the same day. Lineage is a core IP that accounts for the majority of NCSoft's revenue. Building on the success of the original game, the franchise expanded to mobile versions such as "Lineage M" and "Lineage W," establishing a dominant presence in the MMORPG genre. Kim Taek-jin has personally expressed deep affection for the Lineage series, emphasizing it as the company’s top priority. However, since the success of Lineage, a surge of similar MMORPGs, often called "Lineage-like" games, has intensified market competition. This has led to increased fatigue among players, and some have switched to rival games, negatively impacting NCSoft's performance. Despite NCSoft's ongoing copyright lawsuits to protect the Lineage IP, the spread of similar games is proving difficult to curb through legal action alone. There are very few cases where copyright for games has been recognized. Even in NCSoft's earlier victory in its first-instance lawsuit against Webzen, copyright infringement was not acknowledged; instead, claims under the Unfair Competition Prevention Act were upheld. Even if NCSoft ultimately wins its main lawsuits, the process could take years, and forcing competitors to cease their game services remains unlikely. As a result, any tangible benefits for NCSoft may be limited to damages awarded. The waning popularity of the MMORPG genre itself also poses a challenge for NCSoft. If the company fails to offer differentiated content while the influence of its mainstay genre diminishes, the value of its IP is likely to decline over time. An industry insider stated, "Given the intense controversy over the similarities between ArcheAge War and Lineage 2M, along with precedents from Webzen's lawsuits, it seemed likely that claims under the Unfair Competition Prevention Act would be upheld. This outcome was unexpected." #NCSoft #KimTaekJin #Lineage #LineageIP #copyright #gamingindustry #MMORPG #ArcheAgeWar #KakaoGames #Webzen
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- Will Lee Jae-yong Return as a Registered Director After the Cheil Industries-Samsung C&T Appeals Ruling?
- Lee Jae-yong, Chairman of Samsung Electronics, is ten days away from the appellate court ruling on the 'Cheil Industries-Samsung C&T unfair merger' case. The appellate court is expected to consider the purpose and legitimacy of the Cheil Industries-Samsung C&T merger, the fairness of the merger ratio, Lee Jae-yong's level of involvement, and the admissibility of evidence obtained by prosecutors before delivering its verdict. If Lee is acquitted in the appeals trial and overcomes his legal risks, there are speculations that he could return as a registered director at the regular shareholders’ meeting in March and fully engage in management. As of January 24, reports from the business community suggest that Lee is being cautious about external activities ahead of the February 3 appellate court ruling on the unfair merger involving Cheil Industries and Samsung C&T. Unlike in previous years, Lee is not expected to travel overseas during the Lunar New Year holiday this year. Since 2014, Lee has visited countries with overseas operations during major holidays to inspect local businesses and encourage employees. During the 2024 Lunar New Year holiday, he visited Malaysia to review the construction site of Samsung SDI’s battery plant. However, it appears he has cleared his official schedule this year, likely due to the impending court ruling. Lee faces allegations that, during the 2015 merger between Cheil Industries and Samsung C&T, he directed various illicit transactions and accounting fraud to inherit managerial control at minimal cost. The first-instance court acquitted Lee of all 19 charges. However, prosecutors appealed the decision and, during the appellate trial’s conclusion on November 2, 2024, requested a five-year prison sentence and a fine of KRW 500 million (approximately USD 360,500). The main point of contention in the appeal is the purpose and legitimacy of the merger. Prosecutors claim that the merger was conducted for the improper purpose of facilitating Lee’s succession of managerial control and strengthening his grip on the group. However, Lee’s side argues that the merger was intended to benefit Samsung’s future and was not driven by personal interests. The appropriateness of the merger ratio could also influence the court’s decision. Prosecutors argue that Lee unfairly benefited by valuing the shares of Cheil Industries, in which he held a 23.2% stake, higher than those of Samsung C&T at the time of the merger. Conversely, the first-instance court determined that the merger ratio was decided through legitimate means, making it another focal point of the appeal. Whether the appellate court acknowledges the admissibility of 22.7 million pieces (23.7 terabytes) of digital evidence, concealed servers, hard drives, and backup servers obtained by prosecutors is also a matter of interest. The first-instance court ruled that the evidence was unlawfully obtained and deemed it inadmissible. However, if the appellate court arrives at a different conclusion, the trial’s outcome could shift dramatically. If Lee is acquitted in the appellate court, he is expected to weigh his return as a registered director at the March shareholders’ meeting. Since October 2019, when his term as an internal director ended, Lee has led Samsung Electronics for over five years as an unregistered executive. As an unregistered executive, he does not receive compensation. It is believed that lingering legal risks have prompted Lee to postpone his return as a registered director. Among the heads of the four major conglomerates in South Korea, Lee is the only one serving as an unregistered executive. However, calls for Lee’s return as a registered director have been growing inside and outside Samsung Group. Amid ongoing concerns about Samsung Electronics’ challenges, some argue that Lee should take on a more responsible role by becoming a registered director to strengthen accountability in managing future business investments and to demonstrate a stronger commitment to overcoming crises. In the fourth quarter of 2024, Samsung Electronics’ operating profit lagged behind SK Hynix for the first time, and its operating profit for this year is also projected to be at a similar level to SK Hynix. Lee’s return as a registered director is also considered a prerequisite for improving Samsung Group’s governance structure. It is interpreted that the group’s leader must participate in the company’s highest decision-making body, the board of directors, to accelerate restructuring efforts, such as rebuilding the group’s control tower, and to clearly define accountability for these decisions. The Samsung Compliance Committee has also emphasized that Lee’s return as a registered director would be desirable while promoting governance reforms as a key task. In October 2023, Lee Chan-hee, Chairman of the Samsung Compliance Committee, stated in the introduction to the annual report that “to overcome internal and external crises and transition from a leading global company to a respected first-class enterprise, Samsung Electronics must achieve innovative governance improvements, such as the CEO’s return as a registered executive, to practice responsible management.” #Samsung #LeeJaeYong #SamsungC&T #CheilIndustries #merger #governance #SamsungElectronics #trial #legalrisk #business
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- LGCNS IPO Success Boosts M&A Funds, Hyun Shin-gyoon Speeds Up AI Expansion
- Hyun Shin-gyoon, CEO of LGCNS, is expected to secure funding for acquisitions aimed at enhancing competitiveness in artificial intelligence (AI) and cloud services following strong demand during the pre-IPO public subscription phase. With funds raised through the IPO, CEO Hyun plans to accelerate LGCNS’s expansion into overseas IT service markets, particularly in the United States. As of January 23, sources within and outside LGCNS reported that the public subscription for LGCNS shares held on January 21–22 attracted KRW 21 trillion (approximately USD 15.1 billion), raising expectations of a successful debut on February 5. A total of 683,171,110 subscriptions were submitted for the 5,557,414 shares allocated to retail investors, with subscription deposits totaling KRW 21.14 trillion (approximately USD 15.2 billion). Despite unfavorable domestic market conditions, the strong demand has heightened optimism that the stock’s closing price on its listing day will exceed the IPO price of KRW 61,900 (approximately USD 44.2). Through the IPO, CEO Hyun plans to secure approximately KRW 600 billion (approximately USD 428.3 million), which will be used to acquire overseas AI and cloud companies and to secure future growth engines. On January 22, the company announced the success of the public subscription, stating, “The funds raised through this IPO will be invested in R&D for AI, cloud, and digital transformation (DX) technologies, as well as in strengthening global competitiveness to foster future growth drivers.” Notably, KRW 330 billion (approximately USD 235.8 million) of the funds will be allocated for mergers and acquisitions (M&A). The acquisitions are expected to focus on strengthening LGCNS’s technological edge in areas such as DX and AI, with the aim of expanding overseas IT service orders. Earlier, CEO Hyun announced plans to actively pursue M&A opportunities in areas like AI, cloud, and smart engineering starting this year. During a press briefing on January 9, he stated, “We are particularly considering the acquisition of AI companies, and there will be a surprising announcement soon.” After the IPO, CEO Hyun is expected to intensify efforts to enter global markets. Cho Hyun-ji, a researcher at DB Financial Investment, noted, “It’s important to consider that growth in the domestic IT service market is inevitably slowing. Expanding IT service orders from non-affiliated companies, including international clients, will be a key factor for LGCNS’s long-term growth.” With the Trump administration announcing over USD 700 billion in AI joint investments shortly after its inauguration, a global AI investment boom is expected to continue this year. CEO Hyun is likely to accelerate LGCNS’s overseas expansion in response. During the first half of this year, CEO Hyun plans to launch LGCNS’s AI solution "Optapex" to penetrate the U.S. market. Optapex optimizes advertising on Amazon, the world’s largest e-commerce platform. According to the company, it allows sellers on Amazon to conduct effective ad campaigns while reducing costs. The solution was first unveiled at an advertising conference in Austin, Texas, in October last year. Additionally, LGCNS has been applying DX technology to U.S. buildings such as hotels, resorts, multi-family residences, and offices through its proprietary building integration platform, "Cityhub Building." In December 2023, LGCNS signed MOUs with U.S.-based real estate asset manager Somera Road and alternative investment manager Marston America to further develop the U.S. market. During a press briefing on January 9, CEO Hyun stated, “This IPO marks a new turning point for LGCNS to step onto the global stage. We will strengthen our DX technology capabilities and fully launch our global business.” #HyunShinGyoon #LGCNS #IPO #DXTechnologies #AISolutions #Optapex #GlobalExpansion #CloudServices #DigitalTransformation #MergersAndAcquisitions
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- For Trump, Solar Energy is a 'Wonderful Industry': Hanwha Solutions' Kim Dong-kwan Expands U.S. Operations
- Kim Dong-kwan, Vice Chairman of Hanwha Group, is likely to hold high expectations for the inauguration of the second Trump administration. Considering President Donald Trump’s policy directions, a favorable business environment could emerge for Hanwha Solutions’ solar energy operations in the United States. According to energy industry sources on January 23, the solar energy sector is identified as one of the unexpected beneficiaries under the Trump administration. The core of Trump’s energy policy is to make the U.S. "the country with the lowest energy costs in the world." Future U.S. energy policies are expected to focus on economic efficiency rather than carbon emissions or environmental sustainability. This implies that any energy source—whether fossil fuels or renewable energy—that is cost-effective will align with Trump’s priorities. The White House website lists energy as a major issue under Trump’s administration, stating, “We will review and repeal all regulations that impose excessive burdens on energy production and use, freeing American energy. President Trump’s energy policies will enhance consumer choice in cars, showerheads, toilets, washing machines, lightbulbs, and dishwashers.” Currently, solar power is considered the most economically viable renewable energy source compared to traditional fossil fuels, aligning with Trump’s policy priorities. During a presidential debate, Trump described solar energy as a “wonderful industry” and emphasized that its expansion would not stop. The U.S. Department of Energy (DOE) is expected to increase federal public solar power facility installations from 7 GW in 2023 to 20 GW in 2024, further confirming the U.S. government’s commitment to expanding solar power. While Trump has signaled the removal of subsidies for industries such as electric vehicles and wind power, he appears to favor retaining support measures for solar energy, such as the Investment Tax Credit (ITC). Trump’s policy approach relies more on "sticks" than "carrots." The continuation of solar energy support policies under his administration could effectively function as a relative advantage compared to industries facing subsidy cuts. For instance, regarding the attraction of foreign industrial facilities to the U.S., former President Joe Biden used subsidies as a policy tool, whereas Trump argued, “Instead of providing subsidies, just raise tariffs.” Trump’s negative stance on wind power—once calling it “garbage” and pledging to halt new wind farms during his second term—could benefit solar energy as a preferred alternative among renewables. As global energy demand surges due to artificial intelligence (AI) expansion and the global decarbonization trend through initiatives like RE100, unmet demand for wind power is likely to shift to solar energy. A battery industry source noted, “With the expected surge in new solar power installations in the U.S. under the Trump administration, demand for energy storage systems (ESS) that accompany solar power is also anticipated to grow significantly, prompting preparations in the sector.” These energy policies under Trump’s administration are likely to benefit Hanwha Solutions. Vice Chairman Kim has been expanding Hanwha Solutions’ solar panel and module production capacity through a large-scale manufacturing complex in Georgia, securing a module production capacity of 8.4 GW, which accounts for over a third of new installation targets. Furthermore, Trump’s trade policy emphasizing tariffs to counter China is expected to advantage Hanwha Solutions, which has struggled against low-cost Chinese solar products in the U.S. market. Imposing tariffs on Chinese imports would strengthen Hanwha Solutions’ position in competition with Chinese products. According to corporate lobbying expenditure data submitted to the U.S. Senate on January 22, Hanwha Group’s lobbying expenses surged from USD 900,000 in 2022 to USD 1.58 million in 2023, and USD 3.91 million last year. Hanwha Group’s 2023 lobbying expenses were the third highest among Korean conglomerates, following Samsung and SK, and exceeded Hyundai Motor Group’s lobbying expenses for the first time in history. Hanwha’s primary lobbying efforts focused on imposing tariffs on solar products imported from Southeast Asia, which serve as a tariff loophole for Chinese-made products. For Vice Chairman Kim, the inauguration of Trump’s second term presents a golden opportunity for business expansion in the U.S. Kim has demonstrated proactive engagement with the Trump administration, attending exclusive events such as the Candlelight Dinner and Starlight Ball at Trump’s inauguration. These events were reserved for the President’s closest confidants. A Hanwha Group representative commented on Kim’s actions, stating, “Hanwha Group is sparing no effort in expanding its U.S. operations in the shipbuilding, defense, and energy sectors, while actively pursuing new business opportunities.” #KimDongKwan #HanwhaGroup #SolarEnergy #TrumpAdministration #TradePolicy #HanwhaSolutions #RenewableEnergy #USMarket #EnergyStorage #Lobbying
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- John Rim of Samsung Biologics Targets KRW 5 Trillion in Sales, Pushes Ahead with Sixth Plant Construction
- John Rim, the CEO and President of Samsung Biologics, is accelerating efforts to expand production capacity this year to maintain its competitive edge in the contract development and manufacturing organization (CDMO) industry. As domestic and international competitors in the CDMO sector push to expand their production capacities, John Rim is expected to continue building new facilities to maintain Samsung Biologics' lead. According to the biotech industry on January 22, the world’s top 10 CDMO companies are reportedly competing rapidly to increase production capacity. Lonza, the industry leader by revenue, is not only pursuing mergers and acquisitions but also expanding capacity by 120,000 liters at its Visp facility in Switzerland. Once completed, its production capacity will reach 780,000 liters this year, which is comparable to Samsung Biologics. Samsung Biologics currently operates four plants with a combined production capacity of 604,000 liters, making it the global leader in production capacity. With the completion of its fifth plant in April this year, Samsung Biologics' capacity will expand to 784,000 liters, equaling Lonza's expanded capacity. John Rim is also pushing ahead with plans to begin construction on a sixth plant this year to further widen the production gap. Samsung Biologics has laid out a mid-to-long-term plan to expand capacity through its second Bio Campus, which includes plants 5 through 8. This year, the company will internally review plans for the sixth plant and discuss related investment proposals at a board meeting before making a final decision. The sixth plant, like the fifth, is expected to have a capacity of 180,000 liters and be completed by 2027. Once operational, Samsung Biologics’ production capacity will increase to 964,000 liters, again surpassing Lonza. John Rim aims to leverage this unmatched production scale to maintain Samsung Biologics’ competitive advantage in the global CDMO market. While expanding capacity without securing orders could harm profitability, John Rim has established a virtuous cycle by rapidly increasing orders through the "4E" strategy. The 4E strategy encompasses: - Customer Excellence - Operation Excellence - Quality Excellence - People Excellence Additionally, the company plans to expand regional bases this year and broaden its client base from the global top 20 companies to include those ranked within the top 40. With increased orders driving production capacity expansion, Samsung Biologics is achieving rapid growth in performance. Samsung Biologics achieved an annual order volume of KRW 5 trillion (US$ 3.6 billion) in 2024, the highest in its history. Ahead of the fifth plant's completion, the company also signed contracts worth KRW 2 trillion (US$ 1.44 billion), a record-high level. Supported by this momentum, Samsung Biologics achieved annual sales of over KRW 4.5 trillion (US$ 3.24 billion) on a consolidated basis in 2024, the first Korean pharmaceutical and biotech company to surpass KRW 4 trillion (US$ 2.88 billion) in annual sales. In 2023, Samsung Biologics also became the first Korean pharmaceutical and biotech company to achieve an annual operating profit of KRW 1 trillion (US$ 720 million). This year, with the operation of new facilities at the fifth plant, the company is expected to surpass KRW 5 trillion (US$ 3.6 billion) in annual sales. According to financial information provider FnGuide, Samsung Biologics is projected to achieve consolidated sales of KRW 5.1784 trillion (US$ 3.73 billion) and an operating profit of KRW 1.542 trillion (US$ 1.11 billion) in 2025. This represents a 15% increase in sales and a 19% increase in operating profit compared to 2024. A Samsung Biologics representative stated, “Starting with the completion of the fifth plant this year, we will establish the second Bio Campus to maintain our position as the world’s largest production capacity holder. We will continue to enhance customer satisfaction by leveraging our production capacity and quality competitiveness.” #SamsungBiologics #JohnRim #CDMO #biomanufacturing #globalexpansion #productioncapacity #BioCampus #biotechindustry #4Estrategy #operatingprofit
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- Samyang Foods Targets 'High-Profit Countries' with Buldak, Secures Top Industry Operating Profit Margin
- Samyang Foods is achieving an exceptional operating profit margin in the food industry by targeting high-profit countries through aggressive overseas expansion. The food industry typically has low operating profit margins, with most companies remaining in the single digits. In contrast, Samyang Foods surpassed a 10% operating profit margin in 2023 and is expected to achieve 20% within just one year. This success is attributed to the strategic focus on high-profit countries and maximizing cost-to-revenue efficiency, led by its globally recognized Buldak Bokkeum Myeon (Buldak) brand. According to the financial industry on January 22, Samyang Foods’ operating profit margin is estimated to have exceeded 20% last year. Based on data from FnGuide, Samyang Foods is estimated to have achieved consolidated sales of KRW 1.6875 trillion (US$ 1.216 billion) and operating profit of KRW 339.8 billion (US$ 245.0 million) in 2024. Compared to 2023, sales increased by 41.5%, and operating profit grew by 130.4%. An operating profit margin of 20% is exceptionally rare in the food industry. Leading competitors, such as Nongshim, recorded an estimated operating profit margin of 5.4% last year, while CJ CheilJedang and Pulmuone achieved 5.3% and 2.7%, respectively. SPC, known for Paris Baguette, had a margin of only 3.1%. This trend is also reflected in stock market movements. As of January 16, Samyang Foods had the highest market capitalization among 13 leading food companies in South Korea, selected by Hana Securities researcher Shim Eun-joo. Its market cap of KRW 5.74 trillion (US$ 4.14 billion) exceeded that of CJ CheilJedang by more than 1.5 times. The key driver of this profitability is the high-margin structure in overseas markets. According to Samyang Foods, overseas sales have higher revenue efficiency relative to selling and administrative expenses (SG&A) compared to domestic markets. In the first three quarters of 2024, Samyang Foods recorded KRW 1.2492 trillion (US$ 899.7 million) in sales and KRW 290.2 billion (US$ 208.4 million) in SG&A expenses on a consolidated basis. Compared to the same period in 2023, sales rose by 44.2%, while SG&A increased by 64.0%. Although the SG&A increase appears significant, considering that 37% of these costs are attributed to export-related expenses and transportation, the cost-to-revenue performance remains efficient. A Samyang Foods representative stated, “The rise in export-related expenses and transportation costs indicates active export activities. Despite these cost increases, the profitability from expanded exports is much higher, which is a positive outcome for the company.” The representative added, “Promotional expenses, including marketing, are managed more efficiently overseas than domestically.” This increase in overseas sales has directly contributed to improved profitability. In high-profit markets such as the United States and Europe, the average selling price (ASP) is high, resulting in significant growth in operating profit from increased sales. The effect is further amplified by favorable exchange rates. Meanwhile, SG&A expenses remain relatively low compared to the rise in operating profit margins. The Buldak brand has established itself as a global content beyond a simple product, allowing for substantial sales growth with minimal marketing expenditure. The strong brand power enables the company to achieve high sales with lower advertising and promotional costs than in South Korea. Samyang Foods’ rapid expansion of partnerships with major U.S. retailers, such as Walmart and Costco, further solidifies its position as the top operating profit margin leader in the industry. Expanding presence in global retail chains leads to natural product exposure and sales without additional marketing. Since entering the U.S. market in 2022, Samyang Foods has begun placing its products in mainstream channels such as Walmart and Costco starting in 2023, completing Walmart’s nationwide rollout last year. As of October 2024, major products like Buldak were moved from the Asian product section to the main product section in some Walmart stores in California. This shift signifies that Samyang Foods has not only entered the mainstream market but also expanded its customer base beyond specific demographics to a broader audience. Operating local subsidiaries in major overseas markets and directly managing distribution networks have also significantly enhanced profitability. These subsidiaries minimize or eliminate intermediaries, reducing costs and simplifying supply chains. Currently, Samyang Foods has subsidiaries in the United States, China, Japan, and Indonesia. Eun-ji Kang, a researcher at Korea Investment & Securities, noted, “Samyang Foods’ overseas business shows strong visibility for performance growth within the food and beverage industry, driven by a production-oriented strategy and increased export proportions to high-margin countries like the United States and Europe. Its operating profit margin and steep growth are expected to remain unrivaled compared to global ramen companies.” Analysts predict that the operation of Samyang Foods’ Miryang 2 Plant in the second half of this year will further boost the company’s operating profit margin. Samyang Foods currently operates three production plants in Wonju, Iksan, and Miryang. The Miryang plant focuses on producing export items, and the completion of the second plant will increase annual domestic noodle production capacity from 1.8 billion to 2.4 billion units. Eun-ae Ryu, a researcher at KB Securities, stated, “From 2025, the company plans to shift its strategic focus to the United States and Europe, leading to both higher ASP and sales volume growth. Although operating profit margin improvements may be limited in the first half of the year due to initial costs for Miryang 2 Plant, significant increases are expected starting in the third quarter as operational benefits materialize.” A Samyang Foods representative added, “We are expanding overseas subsidiaries in the United States, Europe, Japan, and China. With the completion of the Miryang 2 Plant this year and plans to establish a production plant in China by 2027, we aim to strengthen our overseas-focused business strategy.” #SamyangFoods #BuldakNoodles #globalexpansion #operatingprofit #foodindustry #exportgrowth #USmarket #MiryangPlant #highprofitcountries #brandpower
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- Doubts Grow Over Kim Dong-seon’s Diversification, Hanwha Galleria Struggles
- Kim Dong-seon, Vice President for Future Vision at Hanwha Galleria and Hanwha Hotels & Resorts and the third son of Kim Seung-youn, Chairman of Hanwha Group, is facing growing skepticism regarding his recent moves. Kim is actively diversifying businesses to create future growth engines for Hanwha Group’s retail affiliates, including an attempt to acquire Ourhome for KRW 1.5 trillion (US$ 1.1 billion). However, critics argue that Kim is neglecting core operations. Notably, Hanwha Galleria’s department store business, its main revenue source, has seen declining competitiveness since Kim began participating in its management. As of 2023, Hanwha Galleria operated five department stores nationwide, generating KRW 2.8 trillion (US$ 2.02 billion) in sales, a 3.8% decrease compared to 2022. All store sales declined, including its flagship store in Apgujeong, Seoul, which recorded KRW 1.17 trillion (US$ 844 million), down 1.5%. Other locations, such as Timeworld in Daejeon (-7.5%), Gwanggyo in Gyeonggi (-12.9%), Center City in Cheonan (-2.9%), and Jinju in Gyeongnam (-3.2%), also saw declines. This marks the second consecutive year of declining sales, raising concerns about the department store’s competitiveness, especially compared to rivals like Lotte, Shinsegae, and Hyundai, which managed to sustain growth in their flagship stores despite industry challenges. An industry insider noted, “Kim Dong-seon appears to have focused solely on future projects while neglecting core operations. His involvement is noticeable in M&A activities but absent in addressing the challenges facing the department store business.” Kim has played a central role in introducing Five Guys, a U.S. hamburger franchise, as part of Hanwha Galleria’s new F&B ventures. He personally visited Hong Kong stores to gain insights into their operations ahead of the domestic launch. However, there is little evidence of him engaging in strategies to strengthen the competitiveness of Galleria’s department stores. Such moves have sparked concerns that his focus on expansion into new businesses may ultimately harm the retail affiliates. A Hanwha Galleria representative countered, “Kim is not neglecting the department store business. He is implementing a two-track strategy, enhancing store competitiveness through premium content while seeking future growth opportunities.” Kim is actively pursuing the acquisition of Ourhome through key Hanwha Group affiliates, including Hanwha Hotels & Resorts. Reports indicate that since August 2023, Kim has visited 23 of Ourhome’s business sites nationwide to assess its value. Ourhome is a comprehensive food service company specializing in catering. Kim is reportedly keen on the acquisition to secure a stable revenue source by supplying products to Hanwha Group’s major affiliates. Synergies between Kim’s new ventures and Ourhome’s businesses are also anticipated. Ourhome’s food distribution operations could potentially supply ingredients to Five Guys, reducing costs. Some employees within Hanwha Group’s retail affiliates believe the acquisition could significantly boost sales, ultimately validating Kim’s decisions. Notably, Five Guys has been recognized for achieving one of the highest sales growth rates globally among the franchise’s international locations. However, financial concerns loom. The KRW 1.5 trillion (US$ 1.1 billion) acquisition cost is substantial compared to the 2023 sales of Hanwha Hotels & Resorts (KRW 732.3 billion or US$ 526 million) and Hanwha Galleria (KRW 434.5 billion or US$ 312 million). Hanwha Galleria’s stock price, as of January 20, was KRW 1,157, a 26% drop from the KRW 1,600 price proposed during Kim’s public tender offer to acquire shares. #KimDongSeon #HanwhaGroup #HanwhaGalleria #OurhomeAcquisition #departmentstores #FiveGuys #Koreanbusiness #retailindustry #futuregrowth #M&A
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- Samsung E&A Proves Profitability Amid Unexpected Challenges, Namkoong Hong to Sustain Growth Trend
- [Business Post] Samsung E&A Demonstrates Strong Competitiveness in Petrochemical Plant Construction with Record Performance Last Year The impressive performance in 2024 has highlighted the strengths of Namkoong Hong, CEO of Samsung E&A, who is regarded as a "petrochemical expert." In his second year as CEO, Namkoong has proven his expertise, and it is anticipated that he will continue to grow Samsung E&A’s profits this year, leveraging the success of the petrochemical division. On January 21, insights from the securities and construction industries suggested that Samsung E&A demonstrated high profitability in its petrochemical plant construction business (petrochemical division) through its 2024 performance. Samsung E&A’s consolidated sales for 2024 were estimated at KRW 9.97 trillion (US$ 7.19 billion), with an operating profit of KRW 971.6 billion (US$ 701 million). These figures represent a decrease of 6.2% in sales and 2.2% in operating profit compared to the previous year, yet operating profit significantly exceeded the initial targets. Jang Moon-jun, an analyst at KB Securities, noted in a report, "While sales were in line with market expectations, operating profit far exceeded projections." This performance is particularly notable as Samsung E&A overcame unusual challenges during the year. Just before the Q4 earnings announcement, Samsung E&A disclosed a bond call (performance bond claim) for the Thai "Thai Oil Clean Fuel Project," which resulted in an expense of KRW 146.4 billion (US$ 105.6 million) being recorded as a non-operating loss in the Q4 results. A bond call occurs when a financial institution guarantees payment to the project owner due to a contractor’s contractual breach. Such incidents, stemming from project delays or cost increases, are rare but can lead to significant losses for the contractor. A Samsung E&A representative explained, "As several projects span multiple years, interim profits have been recognized. Despite the one-time cost from the Thai project bond call, the profitability of petrochemical projects helped achieve solid results." Namkoong is expected to focus on enhancing profitability through the petrochemical division, continuing the positive earnings trend this year. Samsung E&A’s performance is primarily divided into petrochemical and non-petrochemical divisions. However, as of September 2023, 78% of the backlog in the non-petrochemical division comprised orders from affiliates such as Samsung Electronics and Samsung Biologics. Given the geopolitical uncertainties and intensified competition faced by Samsung Group, expanding non-affiliate orders and revenue in the petrochemical division has become increasingly critical for Samsung E&A. Namkoong also appointed a financial expert as the new CFO to strengthen profitability this year. Until 2023, CFO Kim Dae-won, who came from a non-financial background, held the position. In 2024, Yoon Hyung-sik, a finance and planning expert who served as Manager and Team Leader in the Strategic Planning Team, took over as CFO. Namkoong is expected to maximize Samsung E&A’s strengths in the overseas plant market to minimize the impact of the domestic construction downturn. According to the International Contractors Association, Samsung E&A secured contracts worth US$ 12.40 billion (KRW 17.69 trillion) overseas in 2023, double the amount of second-place Hyundai Engineering, which secured US$ 6.04 billion. However, the inherent profit volatility of Samsung E&A’s business model, influenced by regional conditions, remains a challenge. Uncertainty surrounding petrochemical plant contracts is particularly significant. Notably, the highly anticipated Saudi Arabia Alujain Project and Indonesia TPPI Project have not advanced beyond the early FEED (Front-End Engineering Design) phase to the EPC (Engineering, Procurement, Construction) phase. Additionally, in November 2023, Samsung E&A’s KRW 1.9 trillion (US$ 1.37 billion) project in Algeria, awarded in 2020, was canceled. Kim Sun-mi, an analyst at Shinhan Investment, commented, "There is considerable variance in performance forecasts for Samsung E&A across securities firms due to differing views on the sustainability of petrochemical division profitability." Despite these challenges, Samsung E&A remains optimistic, stating, "Uncertainties such as Donald Trump’s presidency and the strong dollar will likely have limited impact, and we expect to continue our profitability growth this year." Namkoong, an engineer with over 30 years of experience at Samsung E&A, is recognized as a "petrochemical plant expert." He previously served as Senior Executive Director and Executive Director for Samsung Engineering’s (now Samsung E&A) SEUAE office in the Middle East, where he played a significant role in improving profitability during a period of low-margin overseas contracts. Before becoming CEO in January 2023, he was Executive Vice President and Head of the Plant Business Division from 2020. #SamsungE&A #NamkoongHong #petrochemicalplants #constructionindustry #financialresults #bondcall #globalprojects #Koreanbusiness #profitability #engineeringexpert
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- Will SK Hynix Surpass Samsung in Operating Profit? Kwak Noh-jung Widens HBM Lead
- SK Hynix is drawing attention as it may surpass KRW 33 trillion (US$ 23.8 billion) in operating profit in 2025, potentially claiming the title of Korea's most profitable company. SK Hynix is projected to achieve a record quarterly operating profit of over KRW 8 trillion (US$ 5.8 billion) in Q4 2024, surpassing Samsung Electronics among Korean companies. Kwak Noh-jung, CEO of SK Hynix, plans to focus on increasing market share and extending technological leadership by starting mass production of the world’s first fifth-generation HBM, the "HBM3E 16-layer," in the first half of this year. According to FnGuide on January 21, SK Hynix’s Q4 2024 market consensus (average forecast by securities firms) is estimated at consolidated sales of KRW 19.71 trillion (US$ 14.2 billion) and operating profit of KRW 8.01 trillion (US$ 5.8 billion). This figure significantly surpasses the KRW 6.5 trillion (US$ 4.7 billion) in operating profit that Samsung Electronics reported in early January 2024 and is more than KRW 5 trillion (US$ 3.6 billion) higher than the KRW 3 trillion (US$ 2.2 billion) estimated for the semiconductor division of Samsung Electronics DS. In annual terms, SK Hynix is estimated to have achieved KRW 23.4 trillion (US$ 16.9 billion) in operating profit for 2024, compared to Samsung Electronics’ estimated KRW 34.8 trillion (US$ 25.2 billion). SK Hynix is set to announce its Q4 2024 earnings on January 23. Jung Min-kyu, an analyst at Sangsanin Securities, commented, “Despite continued declines in general-purpose memory semiconductor prices, increased HBM shipments and a reduced share of DDR4 in 2024 likely raised the average selling price (ASP) of DRAMs by 3% quarter-on-quarter. The HBM share of DRAM sales may have reached 42% in Q4.” Speculations suggest that SK Hynix’s annual operating profit could surpass Samsung Electronics’ total operating profit across all business units this year. Delays in Nvidia's approval for Samsung Electronics’ HBM3E products may extend SK Hynix’s dominance in HBM this year. Nvidia is expected to start sourcing Samsung’s HBM3E 12-layer products only by Q3 2024. Meanwhile, SK Hynix’s HBM sales are projected to account for nearly 50% of its total DRAM sales this year. Consequently, SK Hynix’s 2025 operating profit is forecasted to increase by approximately 43% to KRW 33.6 trillion (US$ 24.3 billion), approaching Samsung Electronics’ projected operating profit consensus of KRW 35.37 trillion (US$ 25.6 billion). However, if DRAM and NAND flash markets worsen and losses from Samsung Electronics’ Foundry and System LSI divisions widen, Samsung’s profit may fall short of projections, allowing SK Hynix to surpass it. Some suggest that delays in Nvidia’s production of its new AI chip, "Blackwell," may negatively impact SK Hynix’s earnings this year. However, most analysts believe the impact will be minimal due to strong demand for existing HBM3E 12-layer products. Han Dong-hee, an analyst at SK Securities, predicted, “SK Hynix may face a temporary decline in profits in Q1 due to delays in Nvidia’s new AI semiconductor production. However, given the annual contract structure for HBM, strong shipments will resume in the latter half of the year.” The start of mass production of the HBM3E 16-layer product is expected to further widen SK Hynix’s market lead over competitors. At the "SK AI Summit 2024" held in November 2023 in COEX, Seoul, Kwak Noh-jung said, “We will provide HBM3E 16-layer samples to customers early next year,” adding that the product incorporates advanced "Mass Reflow Molded Underfill (MR-MUF)" technology validated in the HBM3E 12-layer. MR-MUF involves filling spaces between stacked chips with liquid protective material, enhancing production speed and reducing defects. Compared to its predecessor, the HBM3E 16-layer improves AI training performance by up to 18% and inference performance by up to 32%. Micron is expected to begin mass production of HBM3E 16-layer products later this year, while Samsung Electronics focuses on supplying HBM3E 12-layer products to Nvidia, with 16-layer mass production expected to take longer. Industry observers believe that companies leading in HBM3E 16-layer production may secure competitive advantages in the next generation, HBM4, as the 16-layer product will be its primary application. For HBM4, Kwak is reportedly considering applying MR-MUF technology to the 16-layer product and adopting hybrid bonding packaging for 20-layer and higher products. Hybrid bonding eliminates the use of "bumps" to connect chips, significantly reducing chip thickness. It enables the stacking of HBM products beyond 20 layers. SK Hynix’s HBM profits for 2024 are expected to more than double compared to last year. Lee Min-hee, an analyst at BNK Investment & Securities, noted, “Taiwan’s TSMC’s HBM demand this year is nearly double SK Hynix’s production capacity. Considering competitors not included in Nvidia’s supply chain, SK Hynix will maintain high profitability in the HBM segment. HBM profits are estimated at KRW 7 trillion (US$ 5.1 billion) in 2024 and projected to reach KRW 15 trillion (US$ 10.8 billion) this year.” #SKHynix #HBM #AIsemiconductors #semiconductorindustry #KwakNohJung #Nvidia #DRAM #profitforecast #techleadership #SamsungElectronics
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- Chung Mong-koo Sowed the Seeds, Chung Eui-sun Reaps: Hyundai Targets India with Three-Wheel EVs
- Chung Mong-koo, Honorary Chairman of Hyundai Motor Group, sowed the seeds in the Indian market more than 20 years ago. Now, his son, Chung Eui-sun, Chairman of Hyundai Motor Group, is preparing to reap the benefits. Hyundai Motor plans to accelerate its expansion in India, a market identified by Chung Eui-sun as a core future growth area, by launching ultra-compact three- and four-wheel electric vehicles locally. According to reports from the automotive industry on January 20, 2025, Hyundai Motor will introduce ultra-compact three- and four-wheel electric vehicles in India within the year as the adoption of three-wheel electric vehicles has rapidly increased in the market. Hyundai Motor recently announced this plan during a vision presentation held in Delhi, India. India emerged as the world’s largest market for three-wheel electric vehicles in 2023. While China held the top spot until 2022, India overtook it in 2023. According to the International Energy Agency’s (IEA) Global Electric Vehicle Outlook, China’s three-wheel electric vehicle sales in 2023 declined by 8.7% from the previous year to approximately 300,000 units. During the same period, sales in India surged by 65.7% to around 600,000 units, making it the largest market. Approximately 20% of all three-wheelers sold globally in 2023 were electric, with 60% of these sold in India. Hyundai Motor India was established in May 1996 during the tenure of former Chairman Chung Se-young. However, it was Honorary Chairman Chung Mong-koo who laid the foundation and cultivated the challenging Indian market. The first car from Hyundai Motor India was launched in September 1998, and Chung Mong-koo became the Chairman of Hyundai Motor Group in March 1999. In 1998, Hyundai Motor India’s sales stood at approximately 8,400 units with no exports. By 1999, sales had risen to about 18,000 units, with 20 units exported. From 2000, the company experienced significant growth, with sales reaching approximately 83,000 units and exports nearing 4,000 units. India is a crucial strategic market for Chairman Chung Eui-sun. Not only is it the third-largest automobile market globally, but it is also a key future market identified by Chung for intensive focus. The rapidly growing Indian automobile market is currently a battleground for automakers worldwide. Hyundai’s strategy to introduce ultra-compact three- and four-wheel electric vehicles tailored for India will be pivotal in determining how much it can increase its market share. If these ultra-compact electric vehicles are well-received in the market, they could boost Hyundai’s electric vehicle share and overall market share in India. Currently, the leading player in the Indian automotive market is Maruti Suzuki, a Japan-India joint venture, with a market share of 41.6% as of 2023. Hyundai follows in second place with a 14.3% share. Since Maruti Suzuki has not yet ventured into electric vehicles, Hyundai’s strategy of introducing ultra-compact EVs in India could significantly enhance its sales. According to the Korea Trade Association’s New Delhi office, India’s electric vehicle sales reached 1.94 million units last year, a 26.5% increase compared to 2023. Hyundai plans to produce EVs tailored to the Indian market this year and aims to complete facilities capable of producing more than 1 million vehicles annually. Meanwhile, the Indian government has been attracting investment from major global automakers since last year. It offers policies such as reducing import tariffs on electric vehicles to 15% for companies investing at least USD 500 million in India and starting EV production within three years. #HyundaiMotor #India #ChungEuiSun #ElectricVehicles #ThreeWheelEVs #FourWheelEVs #IndianMarket #MarutiSuzuki #AutomotiveIndustry #HyundaiIndia
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- Samsung C&T Eyes Jamsil Useong After Hannam, Can Oh Se-chul Sustain Momentum?
- Oh Se-chul, the President and CEO of Samsung C&T Corporation’s Construction Division, gained momentum in expanding the company’s urban redevelopment strategy this year by securing a victory against Hyundai Engineering & Construction in the bidding war for the Hannam District 4 project. The next major battleground for Oh is expected to be the Jamsil Reconstruction Project. If he wins this project as well, it will further solidify his position as a key player in the urban redevelopment market. According to construction industry sources on January 20, 2025, the Jamsil Useong 1, 2, and 3 Complex Reconstruction Project has been identified as the next major focal point in the domestic urban redevelopment market following Hannam District 4. The Hannam District 4 project, with construction costs of approximately KRW 1.6 trillion (around USD 1.15 billion), was the first project exceeding KRW 1 trillion (USD 718 million) to select a contractor this year. The competition between Samsung C&T and Hyundai Engineering & Construction, the top two companies in the industry, attracted significant attention as it marked their first face-off in 17 years. Samsung C&T ultimately emerged victorious, giving Oh his first large-scale project worth over KRW 1 trillion for 2025. The next domestic urban redevelopment project with construction costs exceeding KRW 1 trillion is the Jamsil Useong 1, 2, and 3 Complex Reconstruction Project. This project involves reconstructing 29 buildings with 1,842 households, originally completed in 1981, into 2,680 households, with total construction costs estimated at KRW 1.7 trillion (approximately USD 1.22 billion). Samsung C&T is expected to participate in the bidding for the Jamsil project, alongside GS Engineering & Construction, which is also highly likely to join. The initial bidding for the Jamsil project began in September 2024, but GS Engineering & Construction was the sole participant, causing the bidding to fail. A competitive re-bid is now underway. Since late 2024, Samsung C&T has been signaling its intention to participate by placing Raemian advertisements near the project site. The bidding for the Jamsil project closes on March 4, 2025, with the contractor expected to be selected in April. For Oh, the Jamsil project is as critical as Hannam District 4. With its location in the core Gangnam area and its large scale, it is essential for continuing the momentum of Samsung C&T's urban redevelopment expansion. If Samsung C&T secures both the Hannam District 4 and Jamsil projects, the combined value of these projects will reach KRW 3.3 trillion (approximately USD 2.37 billion), nearly matching Samsung C&T’s 2024 urban redevelopment achievements of KRW 3.6398 trillion (USD 2.61 billion). The rivalry with GS Engineering & Construction further intensifies the significance of the Jamsil project. GS Engineering & Construction announced its renewed focus on urban redevelopment with the relaunch of its Xi brand in November 2024, making the Jamsil project its first attempt at securing a major project in the Gangnam area. Last year, Hyundai Engineering & Construction and POSCO E&C ranked first and second in domestic urban redevelopment orders, with Samsung C&T and GS Engineering & Construction following in third and fourth place, respectively. GS Engineering & Construction achieved orders worth KRW 3.1098 trillion (approximately USD 2.23 billion), about KRW 500 billion (USD 358 million) less than Samsung C&T. Continuing to achieve success in the urban redevelopment market holds special significance for Oh personally. Oh, recognized for his expertise in overseas and plant projects, was appointed as the head of Samsung C&T’s Construction Division. Around the time of his appointment in 2021, there were even rumors of Samsung C&T withdrawing from the domestic housing market. Under Oh’s leadership, most of the company’s achievements initially came from overseas and plant orders. However, with the domestic construction market facing a downturn, major construction companies have been shifting focus to the urban redevelopment market, resulting in more frequent head-to-head competition. Oh’s victory in Hannam District 4 marked his first success in a competitive bid since taking office. The fact that his opponent was Hyundai Engineering & Construction, which had held the top position in urban redevelopment for six consecutive years, added to the significance. If Oh manages to win the Jamsil project, another multi-trillion-won site in the core Gangnam area, against GS Engineering & Construction, it will further strengthen Samsung C&T’s position as a dominant force in the urban redevelopment market. A Samsung C&T representative stated, “Our urban redevelopment target for this year will exceed last year’s. Given the prime location of the Jamsil Useong 1, 2, and 3 project, we are actively reviewing our participation.” #OhSeChul #SamsungC&T #UrbanRedevelopment #Hannam4 #JamsilReconstruction #Raemian #HyundaiE&C #GSConstruction #ConstructionIndustry #Gangnam
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- Samsung’s “Galaxy S25 Unpacked” Just Two Days Away: Roh Tae-moon Highlights “Soft Power” with Galaxy AI
- Roh Tae-moon, the President and Head of Samsung Electronics' Mobile eXperience (MX) Division, is expected to highlight advanced AI features and software power instead of focusing on hardware performance upgrades at the “Galaxy S25 Unpacked” event in San Jose, USA, on January 22 (local time). The new Galaxy AI will integrate with Google’s “Gemini,” enabling it to share information from YouTube videos viewed, provide automatic text summaries, and analyze night photography scenes to capture the best images without user intervention. Additionally, Bixby, which previously had limited utility due to its inability to understand complex commands, is anticipated to be unveiled as an AI agent capable of engaging in natural conversations following a major update. Samsung’s new mobile operating system, “One UI 7,” will be introduced as a comprehensive platform incorporating various AI features. According to the smartphone industry on January 20, Samsung Electronics is planning an Unpacked event centered on software rather than hardware. The Galaxy S25 series will be unveiled at the Galaxy Unpacked event on January 23 at 3 p.m. (KST) in San Jose, USA. There are also expectations that the physical version of the XR device “Project Moohan,” developed with Google and Qualcomm, will be showcased. However, several foreign media outlets predict that the focus of the event will be on software such as Galaxy AI, Bixby, and One UI 7. In particular, the enhanced Galaxy AI is expected to demonstrate performance improvements that surpass hardware upgrades. The Galaxy S25 Ultra reportedly features a 200MP main camera, a 12MP ultra-wide-angle camera, a 50MP periscope camera with 5x optical zoom, and a 10MP telephoto camera with 3x optical zoom, similar to the Galaxy S24 Ultra. The Galaxy S25 Ultra is said to use “All Lenses on Prism (ALoP)” technology to improve portability and minimize protruding cameras, though its performance is expected to remain similar to its predecessor. The enhanced Galaxy AI, however, is expected to provide a completely new camera experience. According to a recent leaked video of the Galaxy S25 by the U.S. IT media Android Headlines, the improved Galaxy AI includes a “Nightography” feature that enables natural video and photo capture at night. Previously reliant on camera hardware for night photography, the new Galaxy AI achieves this through software alone. Additionally, Galaxy AI is expected to feature an “Audio Eraser” function, which allows users to isolate desired voices and remove unwanted background noise from recorded videos. For example, it can make a user’s voice clear in noisy environments. The integration of Galaxy AI with Google’s generative AI, Gemini, is also being strengthened. According to Brazilian IT media outlet Techblog, Gemini extensions will be available for Samsung apps like Notes, Calendar, and Reminders. These extensions will allow users to save viewed YouTube videos as text in Samsung Notes, search for locations shown in videos, and automatically manage schedules based on user information registered on the smartphone. A leaked Galaxy S25 video demonstrated an example where a user says, “Find a pet-friendly Italian restaurant nearby and text Tony about it.” Gemini then identifies a suitable restaurant, drafts a message, and displays options to “Edit” or “Send.” The Galaxy AI is also expected to be integrated into the “Now Bar” function, which manages smartphone notifications. Now Bar provides weather updates, commute information, recipes, remaining coupon time, driving safety tips, and sleep data. Additionally, the official version of Samsung’s mobile OS, One UI 7, which was released as a beta version late last year, will be unveiled at the Galaxy Unpacked event. One UI 7, reportedly spearheaded by Roh, has received positive reviews from many international IT media outlets. The U.S. IT media outlet SamMobile described One UI 7 as “one of the most ambitious releases in recent years, possibly the best ever.” Samsung Electronics introduced One UI 7 and Galaxy AI as “the first AI-integrated platform.” Samsung’s AI assistant, Bixby, is also set to receive a significant update. Some predict that Bixby will be a key feature of this Galaxy Unpacked event. It is expected to achieve a natural conversation level by utilizing the company’s generative AI “GAUSS2,” released late last year. Bixby, launched in 2017 to compete with Apple’s “Siri,” has been criticized for its low usage rates. However, the updated Bixby, unlike the on-device AI of the Galaxy S24, will leverage Samsung Electronics’ large language model (LLM) “GAUSS2” via cloud services to provide significantly enhanced AI capabilities. Performance upgrades to enable smooth use of AI software features are also planned. All Galaxy S25 models will be equipped with Qualcomm’s Snapdragon 8 Elite mobile application processor (AP) and at least 12GB to 16GB of RAM. Roh is expected to use the launch of the Galaxy S25 series to solidify Samsung’s position as the world’s number one smartphone brand. According to market research firm Counterpoint Research, Samsung Electronics maintained its lead with a 19% market share in shipments in 2024, surpassing Apple (18%). Apple is facing a significant decline in sales in China, which accounts for 20% of its total revenue. According to market research firm Canalys, Apple’s iPhone shipments in China last year decreased by 17% compared to the previous year. Samsung Electronics aims to increase its shipment target even further. The company is estimated to have shipped 227.2 million smartphones last year, with this year’s target set at 230 million units, 10 million more than Apple’s forecasted shipment of 220 million units. Meanwhile, Samsung Electronics is also expected to reveal the physical version of the XR device “Project Moohan,” developed in collaboration with Google and Qualcomm. Google introduced the “Android XR” platform and the first device, Project Moohan, at the “XR Unlocked” event on December 13 last year. #Samsung #GalaxyS25 #AI #UnpackedEvent #Bixby #OneUI7 #ProjectMoohan #Snapdragon8Elite #Smartphones #GeminiAI
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- ARM Fee Hike and In-House AP Put Samsung Exynos at Risk, Focus on Lee Jae-yong and Son Masayoshi
- ARM, led by Son Masayoshi, Chairman of SoftBank, is reportedly planning to quadruple semiconductor license fees and develop its own mobile application processors (AP). This has raised concerns that Samsung Electronics’ AP business, ‘Exynos,’ which heavily relies on ARM technology, may face an even deeper crisis. As a result, attention is focused on the strategic decisions of Samsung Electronics Chairman Lee Jae-yong, who shares a close relationship with Son. Lee is expected to negotiate with ARM to improve relations, possibly by increasing investment or enhancing foundry (contract manufacturing) collaboration. According to information gathered from the semiconductor industry on January 17, Son Masayoshi, ARM’s largest shareholder, is expected to seek new avenues following ARM’s loss in an AP license lawsuit against Qualcomm. In 2022, ARM filed a lawsuit claiming that Qualcomm, through its acquisition of the semiconductor company Nuvia, used ARM’s technology in its AP designs, violating intellectual property rights. However, at the end of last year, a jury in the U.S. District Court in Delaware ruled that Qualcomm had not infringed ARM’s licenses, effectively marking a loss for ARM. While Son is expected to appeal the ruling, most experts believe the chances of overturning the decision are slim. Although the loss could weaken ARM’s market influence, Son is anticipated to pursue aggressive measures to improve ARM’s profitability. Reuters reported that Son is strongly determined to increase ARM’s license fees, considering the company’s profitability too low despite having major global semiconductor companies as clients. Documents and testimony from the lawsuit indicate that ARM has already considered raising license fees by up to fourfold and developing its own APs. These plans are reportedly part of ARM’s ‘Picasso Project,’ aimed at increasing intellectual property (IP) revenue from smartphone processors to $1 billion (KRW 1.4 trillion) over the next decade. If ARM implements this project, Samsung Electronics’ Exynos AP business could be severely impacted due to a lack of alternatives to ARM’s technology. ARM currently holds a monopoly in the AP design market, with a market share of around 90%. Moreover, Exynos, which has been used in Samsung smartphones to enhance cost competitiveness, may face cost increases due to higher ARM license fees, indirectly affecting the performance of the Mobile Experience (MX) division. Some even speculate that the Exynos development itself might be canceled. Due to yield issues with Exynos 2500, it will not be included in the Galaxy S25 series, which will exclusively use Qualcomm’s AP, the ‘Snapdragon 8 Elite.’ Chairman Lee Jae-yong’s role in addressing ARM-related challenges is expected to be pivotal. Leveraging his close relationship with Son, Lee is likely to engage in strategic negotiations to secure favorable license terms and maximize Samsung Electronics’ interests. Lee and Son have regularly met at the annual ‘Sun Valley Conference,’ a global private CEO gathering held every July, and are said to share a strong personal rapport, even occasionally meeting for golf. Lee might negotiate to have ARM’s AP manufacturing handled by Samsung’s foundry. Samsung’s foundry business has faced challenges in securing customers for sub-3nm ultra-fine processes, and a partnership with Son could result in mutual benefits. There is also speculation that Samsung Electronics might increase its strategic investment in ARM to strengthen collaboration and create synergies in emerging semiconductor markets such as artificial intelligence (AI), the Internet of Things (IoT), and autonomous driving. ARM’s low-power architecture and scalability are becoming increasingly critical in these fields. ARM’s Cortex-A CPU cores, widely used in autonomous vehicles, integrate real-time processing of images, sensor data, and machine learning algorithms, making them essential for electric vehicle (EV) and system semiconductor development. Samsung Electronics, which is actively developing automotive semiconductors, could benefit significantly from collaborating with ARM. ARM’s Ethos neural processing units (NPUs) for AI semiconductors can efficiently handle deep learning models needed for autonomous vehicles and home IoT devices. Additionally, the Cortex-M series, designed for EVs and IoT devices, enhances power efficiency, making it ideal for AI appliances requiring long battery life. As of late November 2022, Samsung Electronics had KRW 43.13 trillion (USD 31.1 billion) in cash and cash equivalents and KRW 60.61 trillion (USD 43.7 billion) in short-term financial instruments, providing a total investment capacity of KRW 103 trillion (USD 74.8 billion). Son visited South Korea in October 2022 to propose a long-term collaboration between Samsung Electronics and ARM, even suggesting the potential sale of ARM to Samsung Electronics. However, it was reported that Lee ultimately declined the offer. An industry insider commented, “It remains to be seen whether Chairman Lee will directly negotiate with Son. For now, we’ll have to observe how ARM approaches Samsung Electronics.” #ARM #SamsungElectronics #LeeJaeyong #SoftBank #SonMasayoshi #semiconductor #Exynos #Snapdragon #foundrybusiness #AIchips
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- GS E&C Kicks Off Urban Redevelopment Wins Early, Huh Yoon-hong’s 'New Xi' Faces Test at Jamsil Woosung
- GS Engineering & Construction (GS E&C) is on the verge of securing two urban redevelopment projects it bid for solo in January, potentially signaling an earlier start to its winning streak compared to last year. Huh Yoon-hong, the President and CEO of GS E&C, is gearing up for a key battle in the redevelopment of the upscale Jamsil Woosung Apartment complex. The competition with Samsung C&T’s Raemian brand is expected to test the competitiveness of the ‘New Xi’ brand, introduced last year. According to sources in the urban redevelopment industry on January 17, GS E&C is close to being selected as the contractor for the public redevelopment of Seoul Jungnang-gu Junghwa District 5 and the redevelopment of Suyeong District 1 in Busan. GS E&C has been chosen as the preferred negotiation partner for both projects, which it bid for solo. Both projects are set to hold contractor selection general meetings on January 18. The public redevelopment of Junghwa District 5 involves constructing 1,610 residential units in 14 buildings, ranging from two underground floors to 35 above-ground floors, along with community facilities on a site of 71,465㎡ in Jungnang-gu, Seoul. The total estimated project cost is KRW 649.8 billion (USD 468.4 million). The Suyeong District 1 redevelopment project will create 1,520 residential units in 12 buildings, ranging from three underground floors to 42 above-ground floors, along with community facilities on a site of 84,501㎡ in Suyeong-gu, Busan. The estimated total project cost is KRW 770 billion (USD 555.4 million). Compared to 2024, when GS E&C secured its first project in April, the company appears to be picking up pace in urban redevelopment project bids this year. In 2024, GS E&C kicked off its urban redevelopment efforts in April with the KRW 390 billion (USD 281.3 million) redevelopment project for Minrak District 2 in Busan. In contrast, in 2023, GS E&C started strongly by securing over KRW 1 trillion (USD 721.0 million) in urban redevelopment projects by April, before halting new bids following the Gimpo Geomdan accident. The company ended the year with annual orders worth KRW 1.5878 trillion (USD 1.14 billion), ranking sixth in the construction industry. GS E&C had ranked second in the urban redevelopment sector for two consecutive years, with KRW 5.1437 trillion (USD 3.71 billion) in 2021 and KRW 7.1476 trillion (USD 5.15 billion) in 2022, before its ranking dropped significantly. However, the company rebounded in 2024, surpassing KRW 3.1 trillion (USD 2.24 billion) in orders, ranking fourth in the industry, and regaining momentum. In November 2024, Huh spearheaded the rebranding of the ‘Xi’ brand after 22 years, focusing on restoring customer trust. During the Xi rebranding event, ‘Xi Reignite,’ in November 2024, Huh stated, “The rebranding of Xi is not just a cosmetic change but a foundation for strengthening our core. We will do our utmost to create residential environments where customers can be happier through innovative technologies and services.” In urban redevelopment, brand value significantly influences project selection, raising interest in whether Huh’s ‘New Xi’ brand will yield results against major construction competitors this year. Last year, Huh also detailed strategies to strengthen internal management, restructuring the organization by reducing the number of business divisions from six to three, with a focus on the construction and housing business division. The redevelopment of the Jamsil Woosung Apartment complex is seen as a major test for the revamped Xi brand. GS E&C has put considerable effort into securing this project. The redevelopment involves constructing 2,616 residential units and community facilities in 12 buildings, ranging from three underground floors to 35 above-ground floors, on a site of 120,354.2㎡ in Jamsil-dong, Songpa-gu, Seoul. The total project cost is estimated at KRW 1.6 trillion (USD 1.15 billion). The site is located near Jamsil Sports Complex Station, which connects subway lines 2 and 9, and boasts high value due to its proximity to prestigious schools such as Jeongsin Middle and High Schools and Whimoon High School. The Jamsil Woosung Apartment Redevelopment Association plans to close bidding on March 4 and select a contractor at the general meeting in April. GS E&C’s last major project battle was in September 2024, when it secured the Garak Plaza redevelopment project after a year-long competition with Hyundai Engineering. This year, GS E&C faces competition from Samsung C&T, the industry’s leading construction company, and last year’s third-ranked urban redevelopment contractor. Samsung C&T has expressed its intent to bid, positioning Jamsil Woosung as its first Raemian-branded project in the Jamsil area. A GS E&C representative stated, “The Jamsil Woosung 1, 2, and 3 complexes have long been a focus for our company. Although our solo participation last year led to a failed bid, we are doing everything we can to secure this project.” #GSConstruction #urbanredevelopment #HuhYoonhong #XiBrand #JamsilWoosung #constructionindustry #SouthKorea #BusanRedevelopment #SongpaRedevelopment #realestateprojects
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- Shinhan Financial’s Jin Ok-dong and His 'Philosophical Instinct': A Heavier Financial 'Why' Inspired by Cicero
- “Let us strive toward purpose ('why'), not just goals ('what').” Jin Ok-dong, Chairman of Shinhan Financial Group, presented 'purpose' as a central theme during the '2025 Shinhan Management Forum' town hall meeting held last week, providing direction for the 2025 management strategy to group CEOs and executives. Chairman Jin stated, “Goals represent what to do, while purpose explains why it must be done. If all members resonate with the purpose, we can move closer to becoming the top-tier Shinhan.” This was the first time in three years that Chairman Jin publicly emphasized 'why.' In January 2022, when he was the CEO of Shinhan Bank, Jin introduced Simon Sinek's book 'Start with Why' to executives during a workshop, urging change. At the time, Jin explained, “Focusing only on 'what' helps convey features but fails to inspire. Starting with 'why' touches emotions, leading naturally to 'how' and 'what,' which translates into action.” The 'why' Jin refers to in finance is the 'driving force for creating a better society.' This focus on 'purpose' was evident in both the book he selected for executives to read in preparation for the '2025 Shinhan Management Forum' and his New Year’s address. During the forum, Chairman Jin and the executives read and discussed Cicero's 'De Officiis (On Duties).' Shinhan Financial Group's press release captured the atmosphere of the forum: “In 'De Officiis,' Cicero emphasizes that members of society should fulfill their duties, pursue excellence, and prioritize the community's interests over personal gain. Participants, who had been studying this book for two months in preparation for the forum, engaged in lively discussions about the virtues of great leaders and shared their personal resolutions.” Chairman Jin also set 'Humanitas' (human duty) and 'Communitas' (community) from Cicero’s 'De Officiis' as the group’s management slogans for the year, advocating for excellence based on human duty to benefit the community. Another book chosen by Chairman Jin for the forum was 'To Be Honest' by global management consultant Ron Carucci. The author, who conducted 210 organizational assessments, 3,200 interviews, and 15 years of longitudinal research, concluded that sustainable corporate growth requires an honest organization built on 'purpose,' 'truth,' and 'justice.' This aligns with Chairman Jin’s longstanding philosophy emphasizing 'justice.' Known for his love of books, Chairman Jin has even translated a book himself. During his tenure as CEO of Shinhan Bank, he translated a book under a pseudonym titled 'The Conditions for a Just Market.' This year, his decision to emphasize 'why' for the first time in three years, while drawing on ancient philosophy to stress human dignity, aligns with his prioritization of 'justice' and 'honesty,' potentially reflecting the group’s focus on strengthening internal controls. In October 2022, Shinhan Investment Corporation suffered a financial incident involving losses of KRW 130 billion (USD 93.74 million) from futures trading unrelated to its ETF liquidity provider operations. At the time, calls for stronger internal controls were intensifying across the financial sector, with one of the heads of South Korea’s four major financial holding companies even summoned as a witness for a parliamentary audit. Following the incident, Chairman Jin admitted during a press briefing in Hong Kong that although the loss amount was relatively small, he was deeply shocked by the event. In his New Year’s address this year, Chairman Jin once again prioritized internal controls. “Although we focused heavily on internal controls last year, we fell short of meeting the expectations of customers and society. We will establish effective internal controls,” he said. Observers note that the gravity of Chairman Jin’s emphasis on 'justice' and 'why' has increased compared to three years ago. Previously, he only needed to lead Shinhan Bank. Now, he is responsible for Shinhan Financial Group as a whole. Chairman Jin has expressed his readiness to lead once again. During the town hall meeting, he told executives, “The true influence of a leader stems from respect. To be respected, the process must be just, and you must live a life worth listening to.” Three years ago, following the New Year’s workshop, Chairman Jin introduced another book by Simon Sinek, 'Leaders Eat Last,' at a management strategy meeting, urging leaders to take the lead in driving change. #ShinhanFinancialGroup #JinOkdong #purpose #leadership #organizationalethics #justice #internalcontrol #financialindustry #managementstrategy #corporateresponsibility
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- Lee Young-gu Faces Rising Pressure as Lotte’s Food Division Bets on Global Expansion Amid Domestic Slowdown
- Lee Young-gu, the Vice Chairman and Chief Executive Officer (CEO) of Lotte Group Food Division HQ, is expected to face increased pressure this year. The food affiliates’ performance this year is projected to fall short of market expectations due to sluggish domestic demand. It is anticipated that Vice Chairman Lee will need to achieve groundbreaking results in global business to retain his position. As of January 15, the outlook for key food affiliates of Lotte Group, such as Lotte Wellfood and Lotte Chilsung Beverage, is somewhat negative, according to the securities industry. Jo Sang-hoon, a researcher at Shinhan Investment Corp., stated, “Due to sluggish growth in both domestic and international markets and prolonged cost burdens, Lotte Wellfood’s stock price has entered a correction phase since the second half of last year,” and lowered the company’s earnings forecast. Jung Han-sol, a researcher at Daishin Securities, also reduced the target stock price for Lotte Chilsung Beverage, citing “a continued slowdown in domestic consumption and a decline in beverage sales growth due to intensified competition in the zero-calorie market,” and added, “The timing of domestic market recovery is delayed, leading to downward adjustments in performance estimates.” Lotte Wellfood’s operating profit for this year is projected at KRW 214 billion (USD 154.3 million), which is 7.4% lower than the previous estimate of KRW 231 billion (USD 166.5 million). Lotte Chilsung Beverage’s operating profit forecast for this year is KRW 233 billion (USD 168 million), down 11.9% from earlier projections. This signals a red warning for profitability. Both companies are estimated to have delivered results below market expectations in the fourth quarter of last year. Lotte Wellfood is projected to have recorded KRW 977.2 billion (USD 704.5 million) in revenue and KRW 18.4 billion (USD 13.3 million) in operating profit on a consolidated basis in the fourth quarter of last year. This represents a 0.2% decline in revenue and a 37% decrease in operating profit compared to the fourth quarter of 2023. Operating profit fell 27.8% short of consensus (market estimates). Lotte Chilsung Beverage is also expected to report revenue of KRW 947.2 billion (USD 682.9 million) and an operating profit of KRW 24.6 billion (USD 17.7 million) for the same period, falling below market expectations. The negative outlook has created challenges for Vice Chairman Lee, who managed to retain his position amid Lotte Group’s personnel reshuffle last year, thanks to the strong performance of food affiliates. Vice Chairman Lee currently serves as the head of Lotte Group Food Division HQ and CEO of Lotte Wellfood. His term was initially set to end in March, but he was reappointed at the end of last year, extending his tenure. The food affiliates under Lee’s leadership performed well overall. This strong performance contributed to the retention of most CEOs of Lotte Group’s food affiliates during the year-end reshuffle in both 2023 and 2024. In recognition of his contributions, Lee was promoted to Vice Chairman at the end of 2023. It was the first time in five years that the Food Division HQ, including its predecessor, the Food BU, produced a Vice Chairman. However, forecasts suggest that this year may be different. With sluggish domestic demand, achieving strong results may be challenging. An industry insider stated, “This year’s performance of Lotte Group’s food affiliates will likely determine Vice Chairman Lee’s fate,” adding, “It will be difficult for him to retain his position without clear performance improvements overseas, given the current growth stagnation domestically.” The insider also noted, “There must be tangible progress in overseas businesses, such as in India and Kazakhstan. For example, the new ice cream plant in Pune, India, is set to commence operations in the first quarter of this year, and an automated Pepero production line is being established in the unused space of the Haryana plant.” While neither Lotte Wellfood nor Lotte Chilsung Beverage is expected to see negative growth, the challenging environment for securing profitability cannot be ignored. Operating profit expectations have been lowered due to high exchange rates and a consumer recession, issues faced by all domestic food and beverage companies with a focus on the domestic market. Ultimately, the answer lies in expanding overseas operations. Jo Sang-hoon noted, “For Lotte Wellfood, the focus must ultimately be on overseas growth. While its valuation is attractive, the level of medium- to long-term valuation will depend on overseas expansion.” The shift in focus toward global operations by both companies is viewed as a positive development. Lotte Wellfood is pursuing a strategy to strengthen its market dominance, centering on its Indian subsidiary, which has the highest growth rate among its overseas businesses and has become the company’s largest revenue source. Lotte Chilsung Beverage has set a goal to increase its overseas sales to KRW 1 trillion (USD 720.9 million) within four years. Shin Dong-bin, Chairman of Lotte Group, has already instructed the food affiliates to enhance their overseas business capabilities. In September last year, Chairman Shin held the “One Lotte Food Company Strategy Meeting” in Warsaw, Poland, where he stated, “Korean and Japanese Lotte must cooperate closely to become a company capable of sustainable growth in the global market,” and emphasized, “Strongly execute the development of diverse mega-brands that can achieve overseas sales exceeding KRW 1 trillion.” The meeting was attended by Vice Chairman Lee, Lotte Wellfood CEO Lee Chang-yeop, Lotte Holdings CEO Tamatsuka Kenichi, and other executives from both Korean and Japanese Lotte food affiliates. #LotteGroup #LeeYounggu #foodindustry #globalexpansion #LotteWellfood #LotteChilsungBeverage #overseasbusiness #Koreanfoodindustry #ShinDongbin #managementchallenges
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- Seo Jung-jin to Take Celltrion Holdings to NASDAQ, Boosts Celltrion Pharm's Value to Create 'Unified Celltrion'
- Seo Jung-jin, Chairman of Celltrion Group, may resume the merger of three Celltrion companies to facilitate Celltrion Holdings' listing on NASDAQ. Creating a "Unified Celltrion" by merging Celltrion, Celltrion Healthcare, and Celltrion Pharm has long been Seo's goal. After encountering setbacks last year due to issues such as valuation disputes, Seo is expected to focus on increasing the value of Celltrion Pharm. As of January 16, it is anticipated that Seo may push forward with plans to merge Celltrion and Celltrion Pharm while concretizing the NASDAQ listing plan for Celltrion Holdings. On January 15, at the JP Morgan Healthcare Conference held in San Francisco, the world's largest pharmaceutical and biotech event, Seo announced plans to list Celltrion Holdings on NASDAQ by 2027. Celltrion Holdings, in which Seo holds a 98.1% stake, serves as the holding company for Celltrion Group and owns 21.96% of Celltrion shares, 100% of Celltrion Entertainment shares, among other assets. Seo's decision to pursue a U.S. stock market listing instead of a domestic one appears to be driven by the potential to raise more capital in a market that values future growth highly. Furthermore, NASDAQ's acceptance of dual-class share structures allows controlling shareholders or management to maintain control with a smaller equity stake. Seo also stated that Celltrion Holdings would actively pursue mergers and acquisitions in the fourth quarter of this year, leveraging its funds. He also mentioned investment in K-food and health functional food businesses, hinting at potential acquisitions in these areas. To strengthen the foundation for Celltrion Holdings' NASDAQ listing, enhancing the corporate value of Celltrion itself is seen as equally important as expanding Celltrion Holdings' assets. The new drug development strategy presented by Seo's eldest son, Seo Jin-seok, CEO of Celltrion, on the same day is closely tied to this effort. Seo Jin-seok unveiled a plan to file 13 clinical trial applications for antibody-drug conjugates (ADCs) and multi-specific antibody candidates by 2028, outlining a detailed timeline for new drug development. This reflects Celltrion's intention to leverage its established technology in antibody biopharmaceuticals and expand into antibody-based new drugs such as ADCs and multi-specific antibodies. To boost the corporate value of Celltrion, the company may revisit the merger between Celltrion and Celltrion Pharm, which failed last year. While creating a "Unified Celltrion" is not a prerequisite for listing Celltrion Holdings on NASDAQ, it is considered a faster and more efficient way to achieve results compared to success in new drug development. A Celltrion official stated, "At present, there is nothing further to disclose regarding the potential merger with Celltrion Pharm." To achieve Seo's ultimate goal of creating a "Unified Celltrion," only the merger with Celltrion Pharm remains. In December 2023, Seo completed the merger of Celltrion and Celltrion Healthcare. In August of the same year, he attempted to merge with Celltrion Pharm, but the effort was shelved due to opposition during the opinion-gathering stage. Although Celltrion Pharm shareholders were in favor, Celltrion shareholders overwhelmingly opposed the move. The primary reason cited was the imbalance in the valuation of Celltrion Pharm relative to Celltrion. At that time, Celltrion announced plans to strengthen Celltrion Pharm's growth drivers to enhance its corporate value. Celltrion Pharm is a company that holds the domestic sales rights for biopharmaceuticals developed by Celltrion, including synthetic drugs such as the liver function enhancer Godex (Celltrion Healthcare holds sales rights for other regions). Since 2021, Celltrion Pharm's performance has stagnated. Its sales grew from KRW 233.5 billion in 2020 (US$ 168.4 million) to KRW 398.7 billion in 2021 (US$ 287.4 million), but the growth slowed, with sales remaining flat at KRW 386 billion in 2022 (US$ 278.3 million) and KRW 388.8 billion in 2023 (US$ 280.4 million). Operating profits also declined steadily from KRW 47.8 billion in 2021 (US$ 34.5 million) to KRW 38.2 billion in 2022 (US$ 27.6 million) and KRW 36.1 billion in 2023 (US$ 26.0 million). The rise in labor costs due to expanded production facilities and increased clinical trial expenses for pipeline development contributed to the decline. To address this, Celltrion Pharm is planning to commence full-scale production of pre-filled syringes for biopharmaceuticals in 2024 and complete the in-house production of key acquired products, including the diabetes treatment Nesina and the hypertension treatment Edarbi, to improve its performance. The company is also collaborating with domestic pharmaceutical firms to expand sales. Celltrion Pharm has signed joint sales agreements for Godex with Chong Kun Dang, for the macular degeneration treatment Eylea biosimilar with Kukje Pharma, and for the osteoporosis treatment Prolia biosimilar with Daewoong Pharmaceutical. #Celltrion #SeoJungjin #NASDAQ #biopharmaceuticals #merger #CelltrionPharm #antibodydrugs #biosimilars #pharmaceuticals #Kfood
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- Hanwha Life's Third-Generation Leader Kim Dong-won Bets Big on Indonesia After 10 Years of Training
- Kim Dong-won, the Chief Global Officer (CGO) and President of Hanwha Life Insurance, stands out among third-generation leaders in the insurance industry. Compared to other third-generation leaders currently active, Kim was the first to establish a connection with his company. His ties with Hanwha Life span 11 years, and he has been focusing on overseeing overseas operations, which insurance companies see as a future growth engine. Should Hanwha Life achieve notable results in the global market, it is anticipated that Kim's stature within Hanwha Group's financial affiliates could see an immediate shift. As of January 16, industry insiders speculate that Kim, having completed over a decade of "management training," may soon take on a role as an internal director, signaling a move toward greater management responsibility. Kim joined Hanwha Group in 2014. After graduating from college and running a small performance planning company, Kim joined Hanwha L&C in the same year and, in a dispatched capacity, led the Digital Team within Hanwha Group’s Management Planning Office. In December 2015, Kim transitioned to Hanwha Life, where he served as Deputy Head of the Company Innovation Office. Over the subsequent decade, he rapidly climbed the ranks from Executive Director to Senior Executive Vice President, Vice President, and finally President, expanding his responsibilities from digital operations to global ventures. Notably, after becoming the Chief Global Officer in 2023, Kim pursued three significant acquisitions of stakes in foreign financial companies in a bold move. In 2023, Hanwha General Insurance, along with Hanwha Life, acquired a 62.6% stake in Lippo General Insurance, an Indonesian general insurance company. In May 2024, Kim signed a stock purchase agreement to acquire a 40% stake in Bank Nobu of Indonesia. In November of the same year, he also acquired a 75% stake in U.S.-based Velocity Securities. These large-scale stake acquisitions over the past two years have drawn significant attention to Kim from inside and outside the company. He is seen as steadily building justification for inheriting management control of Hanwha Group's financial affiliates. Just a few years ago, Kim faced criticism for not showing clear achievements as a third-generation leader. However, his recent activities in overseas markets have overturned such evaluations and helped him solidify his position within the group. Hanwha Life also appears to support Kim’s efforts in Indonesia at the corporate level. In November of last year, the company reportedly established an "Indonesia Corporation Task Force." The industry is paying close attention to the March shareholders' meeting this year. Given that Kim has completed over 10 years of management training and demonstrated his capabilities through overseas ventures, there is speculation that he may be appointed as an internal director. If Kim becomes an internal director, he would participate in Hanwha Life's key decision-making processes through the board of directors, allowing him to influence overall management. This could be seen as a preparatory step for management succession, cultivating an image of "responsible management." Since Hanwha Life’s acquisition of Hanwha Savings Bank was finalized last year, the governance structure of Hanwha’s financial affiliates has become relatively streamlined. Through Kim's appointment as an internal director, he could potentially exert influence across all financial affiliates. However, the stable operation of Hanwha Life under Vice Chairman and CEO Yeo Seung-joo is cited as a factor that could delay Kim’s appointment as an internal director. A financial industry insider told Business Post, "Kim Dong-won’s older brother, Kim Dong-kwan, Vice Chairman of Hanwha Group, was appointed an internal director relatively quickly because he represents the group, but Kim Dong-won’s situation is different." The insider added, "Hanwha Life is operating well under Vice Chairman Yeo Seung-joo’s leadership, and Yeo’s performance is recognized. This could delay Kim’s entry as an internal director." Kim Dong-won is the second son of Kim Seung-youn, Chairman of Hanwha Group. He was born in 1985 in Seoul and graduated from Yale University with a degree in East Asian Studies. After joining Hanwha L&C, he led the Digital Team in Hanwha Group's Management Planning Office. Later, he transitioned to Hanwha Life, where he served as Executive Director of the Company Innovation Office and Digital Innovation Office, playing a key role in identifying Hanwha Life’s future growth drivers. #HanwhaLife #KimDongwon #HanwhaGroup #insuranceindustry #globalexpansion #financialaffiliates #thirdgenerationleaders #businesssuccession #internationalmarkets #managementinnovation
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- HD Hyundai Infracore Eyes China Stimulus, Trump SOC Push, Cho Young-cheul Targets KRW 10 Trillion Revenue
- HD Hyundai Infracore, the main construction equipment subsidiary of HD Hyundai Group, is expected to see favorable business conditions this year. China’s active domestic stimulus policies and President Donald Trump’s anticipated expansion of social overhead capital (SOC) investments are likely to create new opportunities. Cho Young-cheul, the CEO and President of HD Hyundai Infracore, is expected to push forward aggressively to achieve the combined revenue target of KRW 10 trillion (approximately USD 7.21 billion), set during the establishment of the intermediate holding company for construction equipment, HD Hyundai XiteSolution. According to securities industry analysis on January 15, HD Hyundai Infracore sold 729 excavators in the Chinese market in the fourth quarter of last year, an 87.4% increase compared to the same period the previous year. For the full year, the company sold 2,448 units in China, a 22.2% increase from 2023’s 2,003 units, with sales momentum strengthening in the second half of the year. The increase in sales and market share last year is attributed to HD Hyundai Infracore’s revenue growth from small excavators, supported by rural development projects led by local governments in China. As of 2023, the Chinese market accounted for 6% of HD Hyundai Infracore’s construction equipment revenue. This is relatively small compared to its core markets in emerging countries, the United States, and Europe, which each hold more than a 30% share. However, China was the only major market where HD Hyundai Infracore saw revenue growth in the third quarter of last year, and further demand improvements are expected. Bae Sung-jo, an analyst at Hanwha Investment & Securities, stated, “China is likely to maintain relatively strong demand compared to other regions for the foreseeable future.” HD Hyundai Infracore plans to focus on orders for mid- and large-sized machinery, which have higher unit prices, in the Chinese construction equipment market to increase revenue. This year, China’s economic stimulus policies and efforts to stabilize the real estate market are expected to provide further opportunities to increase HD Hyundai Infracore’s sales in the region. China recently outlined nine key priorities for 2025, with domestic expansion as the top focus. Baek Kwan-yeol, an analyst at LS Securities, stated, “China’s economic policies prioritize domestic expansion over technological independence. Additional domestic stimulus measures are inevitable if the central government aims to maintain growth rates similar to last year.” Baek also noted, “The long-standing downturn in China’s real estate market appears to be stabilizing.” In the United States, HD Hyundai Infracore is also expected to benefit from favorable business conditions this year. President Trump emphasized expanding SOC investments throughout his campaign, and many expect related policies to be implemented in earnest following his inauguration. In his acceptance speech as presidential candidate last November, Trump stated, “We will halt environmental projects and redirect those funds to roads, dams, and other SOC initiatives.” A report from Korea Ratings titled *“Industry Impacts of Trump’s Election”* projected that the construction equipment sector would see increased demand due to U.S. companies’ local investment expansions and large-scale infrastructure projects, including building 10 new cities, or “Freedom Cities.” Samjong KPMG Economic Research Institute also stated, “Trump has consistently pledged to expedite the end of the Russia-Ukraine war, which is expected to pave the way for reconstruction projects in the region.” Cho Young-cheul, the CEO and President of HD Hyundai Infracore, oversees HD Hyundai XiteSolution, the intermediate holding company for construction equipment, as well as its subsidiaries HD Hyundai Infracore and HD Hyundai Construction Equipment. In 2021, when HD Hyundai XiteSolution was established, Cho set a goal to achieve combined revenue of KRW 10 trillion (approximately USD 7.21 billion) by 2025 and join the global “Big 5” in the construction equipment sector. Since then, revenue has steadily grown, with the three construction equipment companies achieving a combined revenue of KRW 9.4972 trillion (approximately USD 6.84 billion) in 2023. However, the combined revenue of HD Hyundai Infracore, HD Hyundai Construction Equipment, and HD Hyundai XiteSolution last year is estimated to have fallen short of KRW 9 trillion (approximately USD 6.48 billion) due to weak sales in Europe. This marked the first decline in performance after years of growth. As a result, HD Hyundai Infracore has taken a cautious approach, slightly delaying its timeline for achieving the KRW 10 trillion (approximately USD 7.21 billion) revenue target. However, with improving business conditions, Cho is expected to drive a strong recovery this year. An HD Hyundai XiteSolution representative stated, “While policy uncertainties remain, we are responding cautiously with business strategies. Nevertheless, we are optimistic about new opportunities related to China’s economic stimulus measures and North America’s infrastructure expansion policies.” #HDHyundaiInfracore #HDHyundaiXiteSolution #ChoYoungCheul #ConstructionEquipment #ChinaMarket #SOCInvestment #DonaldTrump #EconomicStimulus #RuralDevelopment #GlobalBig5
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- Kim Sung-hwan Leads Korea Investment & Securities Toward IMA Leadership and Financial Innovation
- Kim Sung-hwan, the CEO and President of Korea Investment & Securities, is expected to establish a new growth foundation by entering the country’s first Investment Management Account (IMA) business. Financial authorities are currently working to improve the Comprehensive Financial Investment Business Entities (CFIBE) system to expand the supply of venture capital. In this context, it is believed that Kim aims to acquire an IMA business license to move closer to the company’s goal of becoming number one in Asia. The securities industry has analyzed that “Korea Investment & Securities is preparing to secure IMA business approval this year.” On January 15, based on input from financial authorities and the securities industry, the Financial Services Commission (FSC) is expected to announce a detailed reform plan for the CFIBE system and the IMA framework in March. The core of the CFIBE reform plan is to expand the supply of venture capital and create an environment where securities companies can actively engage in business activities. The fact that Daishin Securities was approved as a CFIBE at the end of December 2023 supports this direction. On January 8, Financial Services Commission Chairman Kim Byung-hwan stated, “We will strengthen the role of CFIBEs in corporate finance and venture capital supply by improving corporate credit limits, commercial paper issuance, and the IMA system.” With the financial authorities actively involved, there is growing interest in whether the country’s first IMA business operator will emerge. IMAs are accounts that guarantee principal like bank deposits while investing in corporate bonds, business loans, and other assets. Unlike cash management accounts (CMAs), they are not covered by the Korea Deposit Insurance Corporation, but securities companies are obligated to ensure principal repayment. The IMA business is open to securities companies with equity capital of KRW 8 trillion (approximately USD 5.77 billion) or more. Although the FSC officially introduced IMAs in August 2016, no concrete implementation measures followed, and neither Korea Investment & Securities nor Mirae Asset Securities applied, despite meeting the conditions. Among the two securities companies, Korea Investment & Securities is considered more likely to actively pursue the IMA business, as Mirae Asset Securities appears to be taking a more cautious approach. Given Kim’s ambitious goal of matching the net profit of the four major financial holding companies by 2030, Korea Investment & Securities is expected to actively pursue the IMA business. While KB Securities’ 2024 net profit is projected at around KRW 5 trillion (approximately USD 3.61 billion), significantly higher than Korea Investment & Securities’ KRW 1 trillion (approximately USD 722 million), becoming an IMA operator could significantly improve profitability. On September 10, 2023, during a recruitment seminar, Kim stated, “Korea Investment & Securities has the conditions to surpass the net profits of bank financial holding companies and expand into larger markets. We are a company capable of taking on any challenge.” This statement suggests Kim’s willingness to take on the IMA business. Furthermore, his ambition to outpace Japan’s Nomura Securities, Asia’s leading firm, and aim for global leadership indicates his strong interest in securing the title of the first IMA operator. Kang Seung-geon, an analyst at KB Securities, noted, “Korea Investment & Securities is preparing to secure IMA business approval this year, with equity capital expected to exceed KRW 9 trillion (approximately USD 6.49 billion) by the end of 2024. This could expand corporate finance and trading profits through enhanced fundraising capabilities.” Korea Investment & Securities also stated, “With the financial authorities pushing for CFIBE system reform, we have plans to review the profitability of the IMA business.” The scope of business for securities companies depends on their equity capital and licensing level. Securities companies with equity capital exceeding KRW 3 trillion (approximately USD 2.16 billion) as CFIBEs see significantly improved business conditions. Notably, CFIBEs with more than KRW 3 trillion in equity capital can engage in corporate credit financing, and those with more than KRW 4 trillion (approximately USD 2.88 billion) can handle foreign exchange transactions for corporate clients and commercial paper issuance. Unlike commercial paper issuance, which has a limit of up to 200% of equity capital, IMAs have no issuance limit, making them advantageous for large-scale fundraising. The parent company, Korea Investment Holdings, provided KRW 300 billion (approximately USD 216 million) in paid-in capital to Korea Investment & Securities on December 27, 2023, as a stepping stone for profit growth. Korea Investment Holdings Chairman Kim Nam-goo’s push to create Asia’s leading financial company is also seen as supporting Kim Sung-hwan’s efforts. Korea Investment & Securities has shown rapid performance growth, surpassing KRW 1 trillion (approximately USD 722 million) in operating profit by the third quarter of last year. The company is estimated to have achieved the highest net profit in the securities industry in 2024. However, Kim also faces the burden of strengthening internal controls. Since weak internal controls have previously hindered CFIBE approvals, careful management is essential. On January 14, the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors’ Office raided Korea Investment & Securities’ headquarters in Yeouido, Seoul, in connection with allegations against a former team leader. The former employee is accused of violating the Act on the Aggravated Punishment of Specific Economic Crimes and the Interest Limitation Act by facilitating private loans beyond limits and taking high-interest payments while serving as the head of project financing (PF). While this incident is considered a personal deviation by the former employee, making financial regulatory sanctions against Korea Investment & Securities unlikely, the tightening of internal controls by financial authorities suggests Kim will focus on reinforcing compliance systems. In his New Year’s address this year, Kim emphasized, “Establish a 360-degree risk management process that can prepare for any situation,” urging employees to strengthen the company’s resilience. Kim Sung-hwan was born on November 21, 1969, in Seoul. He graduated from Dangok High School and earned a degree in economics from Korea University. He began his career at Kyobo Life Insurance before joining Dongwon Securities, which later merged with Korea Investment & Securities, where he has worked for nearly 20 years. As an investment banking (IB) expert, Kim expanded the scope of securities firms’ businesses by introducing asset-backed securities (ABS) and asset-backed commercial paper (ABCP) based on real estate project financing (PF). He became the youngest executive director as head of the Real Estate Finance Center and was subsequently promoted to managing director. In 2016, he became the inaugural head of the IB Group, the youngest IB leader among major securities firms, and was promoted to vice president within a year. After being nominated as CEO and President of Korea Investment & Securities in November 2023, Kim officially began his duties in January 2024 and successfully secured a second term in 2025. #KimSungHwan #KoreaInvestmentSecurities #IMA #CFIBE #InvestmentBanking #FinancialReform #AsiaFinanceLeader #InternalControls #ProfitGrowth #RiskManagement
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- Industrial Bank of Korea's Kim Sung-tae Faces "Final-Year Trials," Burdened by General Strikes and Illegal Loan Scandals.
- Kim Sung-tae, CEO of the Industrial Bank of Korea (pictured), is facing significant challenges in his final year, including a general strike, illegal loans, and a potential loss in a lawsuit over ordinary wages. The labor union, which held a general strike in December last year, has announced plans for additional strikes. Additionally, suspicions of illegal loans amounting to KRW 23.9 billion (USD 17.2 million) have surfaced, damaging Kim’s leadership. Kim Sung-tae, CEO of the Industrial Bank of Korea, is grappling with a series of difficulties in his final year, including a general strike, illegal loans, and potential losses in a lawsuit over ordinary wages. Furthermore, the growing likelihood of losing the lawsuit filed by current and former employees over ordinary wages is raising concerns about its impact on the bank’s financial performance. Kim was regarded as the right person to lead the Industrial Bank of Korea thanks to his leadership as an “internal appointee,” rich experience, and expertise. Attention is now focused on whether he can effectively resolve these challenges in the final year of his term. According to the Industrial Bank of Korea labor union on the 14th, the newly formed union leadership, which took office on the 10th, is preparing for additional general strikes in February and March if the management fails to address the issue of lower wages compared to commercial banks. The union held its first general strike on December 27, 2023, demanding wage increases, the introduction of a profit-sharing system for special bonuses, cash payments for accumulated compensatory leave (overtime pay), and an increase in employee stock ownership. The union is not only planning additional strikes but is also considering legal actions and public awareness campaigns in collaboration with political parties to gradually escalate its protests. A union representative told Business Post, “We are still in a position to strike, and the new leadership will proceed with the second general strike if the situation does not change.” As an internal appointee, Kim has been engaging in dialogue with the union, leveraging his understanding of employee concerns to resolve these issues. However, as the Industrial Bank of Korea is a public institution under the Ministry of Economy and Finance’s total payroll control system, Kim’s ability to resolve these issues has inherent limitations. A representative of the Industrial Bank of Korea explained, “As a public institution, we must negotiate with both the Ministry of Economy and Finance and the Financial Services Commission. We are always striving to sincerely engage in negotiations with the union.” The recent revelation of illegal loans amounting to KRW 23.9 billion (USD 17.2 million) is another significant issue for Kim. These loans were processed by inflating real estate collateral values at a branch in Gangdong District, Seoul, from June 17, 2022, to November 22, 2024. This incident occurred during Kim’s time as executive director and continued into his term as CEO, making it a particularly painful issue for him. Although this case was identified through the Industrial Bank of Korea’s internal control systems, Kim is expected to strengthen these systems and reassess internal controls once the Financial Supervisory Service concludes its investigation. The legal battle over ordinary wages, which has been ongoing for 10 years, is another major challenge for Kim. The lawsuit began in 2014 when current and former employees filed a claim arguing that regular bonuses should be included in ordinary wages, requiring a recalculation of salaries. Recently, the Supreme Court overturned the second trial ruling in favor of the Industrial Bank of Korea and ruled in favor of the employees, increasing the likelihood of the bank losing the case in the retrial. If the Industrial Bank of Korea loses, the bank is expected to pay KRW 77.6 billion (USD 56.0 million) in claims, along with at least 5% annual legal delay interest. Some predict that the total payment to employees could exceed KRW 100 billion (USD 72.1 million). Kim has formed a task force (TF) to prepare for the financial impact of the lawsuit. To minimize the impact on the bank’s performance, the bank has set aside provisions and is preparing to revise compensation-related regulations. A representative of the Industrial Bank of Korea explained, “It is difficult to estimate the payment amount before the court’s final ruling, but the task force is coordinating detailed measures related to the payment of the claim.” Kim has worked exclusively at the Industrial Bank of Korea for over 30 years, making him a true “IBK man.” He has been recognized as a strategic expert, having worked in planning and marketing strategy departments, where he was responsible for the bank’s long-term strategies, management goals, and evaluations. Born in 1962 in Seocheon, Chungcheongnam-do, Kim graduated from Daejeon Commercial High School and earned a degree in business administration from Chungnam National University. He also completed an MBA program at the Helsinki School of Economics in Finland. Kim joined the Industrial Bank of Korea and held various roles, including Head of Future Innovation at the Strategic Planning Department, Chief of Staff, Director of Future Planning, Comprehensive Planning Department Manager, Marketing Strategy Department Manager, and Regional Director for Busan-Ulsan and Gyeongdong branches. He later served as Consumer Protection Group Leader (Vice President), Management Strategy Group Leader (Vice President), and CEO of IBK Capital, a subsidiary of the Industrial Bank of Korea. He returned to the bank as Executive Director (Senior Vice President) and became CEO in 2023. #KimSungTae #IndustrialBankofKorea #IBK #LaborUnion #IllegalLoan #OrdinaryWage #BankLeadership #KoreanBanking #FinancialChallenges #IBKCEO
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- Park Ik-jin Aims for Profitability at Lotte ON by Focusing on Fashion and Beauty
- Park Ik-jin, CEO of Lotte ON, is fully committed to improving profitability through aggressive restructuring efforts. He has determined that reducing losses by scaling down operations, rather than increasing sales at the cost of higher operating losses through discount coupons, is essential for the platform's survival. Park has identified fashion and beauty as key categories where Lotte ON can secure competitiveness and aims to increase sales in these areas to achieve profitability next year. As of January 14, Lotte ON is heavily focused on fashion and beauty. The fashion category accounts for approximately 50% of Lotte ON's total sales, and in Q4 2024, it maintained double-digit growth rates, reflecting strong potential. The beauty category is also a priority, with Lotte ON reporting double-digit annual growth rates for the past three consecutive years. Compared to other product categories, fashion and beauty are known for delivering higher profitability, a trend common across e-commerce platforms. Lotte ON benefits from the expertise in merchandise planning (MD) that its affiliate, Lotte Department Store, has cultivated in these categories, creating significant synergy opportunities. To strengthen its competitiveness, Lotte ON established specialized platforms like "ON and the Fashion" and "ON and the Luxury" years ago. In July 2024, the company created dedicated fashion and beauty divisions, with teams such as the Fashion Strategy Team and the Beauty Marketing Team under their respective umbrellas. The platform is also enhancing its MD workforce for these divisions. A Lotte ON representative noted, "Our luxury overseas direct purchasing division under the fashion category is experiencing substantial growth. The 'Luxury Showroom,' which features approximately 150,000 luxury items, drove double-digit growth in the luxury category within two months of its launch." Park’s leadership is seen as instrumental in driving these strategic initiatives. Appointed CEO of Lotte ON in November 2023 and taking office in January 2024, Park faced skepticism due to his lack of direct experience in e-commerce. However, his background in marketing and strategy has been a strength. An engineering graduate from Seoul National University with a Ph.D. in Physics from MIT, Park began his career at McKinsey and gained experience at Citi Korea, Hyundai Card, ING Life, Lotte Card, and Affinity Equity Partners, where he oversaw investments in e-commerce platforms like Yogiyo and SSG.com. One of Park’s notable strategies at Lotte ON has been enhancing collaboration with affiliates. For instance, the "Monthly Lotte" promotion, which featured significant discounts on affiliate products from Lotte Hotel, Lotte Wellfood, and Lotte World, helped drive app traffic significantly. Park also reintroduced a next-day delivery service called "Naeil Onda" in April 2024, reviving Lotte ON’s capabilities in expedited shipping. Despite these efforts, Park has yet to significantly enhance Lotte ON's market influence. In the first three quarters of 2024, Lotte ON recorded sales of KRW 84.5 billion (USD 61.0 million) and operating losses of KRW 61.5 billion (USD 44.4 million). While operating losses decreased by 4.7% compared to the same period in 2023, sales also declined by 13.0%. Although the reduction in operating losses is a positive sign, the simultaneous decrease in revenue is viewed as a challenge to the platform's growth potential. The focus on profitability has made it difficult to avoid sales contraction, a trend seen across other e-commerce platforms struggling with deficits. Analyst Park Jong-ryeol from Heungkuk Securities noted, "Efforts to reduce operating losses in the e-commerce division (Lotte ON) should be accompanied by adjustments to its financial structure, including reducing net debt and net interest expenses." Park’s focus on strengthening the fashion and beauty categories aligns with this broader goal. Park also implemented two rounds of voluntary retirement programs in 2024 to reinforce profitability. Additionally, Lotte ON relocated its headquarters from Lotte World Tower in Jamsil to Samsung-dong in Gangnam-gu and adjusted its product mix by reducing the share of low-margin items. Internally, Lotte ON believes that its profitability improvement efforts are on track, with the possibility of turning a profit as early as next year. A Lotte ON representative stated, "We are in the midst of intensive restructuring to improve profitability. By adjusting the product mix to reduce low-margin items, we are rapidly increasing operating profits. We aim to deliver strong results by focusing on fashion and beauty, where Lotte ON has significant strengths." #ParkIkJin #LotteON #Ecommerce #FashionAndBeauty #Profitability #KoreanEcommerce #OnlineShopping #LotteGroup #NextDayDelivery #BusinessStrategy
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- GS Engineering & Construction's Huh Yoon-hong Secures Stable Owner-Management, Navigates Construction Industry Downturn.
- Huh Yoon-hong, the fourth-generation owner and CEO of GS Engineering & Construction, is expected to focus on "management stability" this year to pave the way for the company's resurgence. Before becoming CEO, Huh led GS E&C’s new business initiatives. As he enters his second year as CEO, he is anticipated to stabilize the owner-management system and enhance the company’s core business capabilities to navigate the ongoing construction industry recession. According to sources inside and outside GS E&C, Huh is likely to continue emphasizing "on-site" management this year, tightening the reins on restoring trust in the brand. In his first year as CEO, Huh began the year with a ceremony at the "Maple Xi" (Shinbanpo District 4 Reconstruction) site in Seoul on January 2, 2023. This year, he visited the "Daesan Industrial Water Supply Construction" plant site in Seosan, Chungcheongnam-do, on January 2 to kick off the year. This shift from housing reconstruction to plants underscores his intent to bolster the plant business, continuing the "on-site management" philosophy passed down from his father, Huh Chang-soo, Chairman of GS E&C. For the second consecutive year, Huh has highlighted "safety," "quality," and "basics" as the core directions for GS E&C’s business strategy. Considering the state of GS E&C and the construction industry as a whole, Huh’s focus on internal stability and management fundamentals appears to be a natural step. Huh took over as CEO in April 2023 following the collapse of a parking garage in an apartment complex in Incheon, a move aimed at reinforcing accountability within management. The construction industry has been grappling with a prolonged economic downturn, leading many companies to adopt conservative management strategies. In 2023, seven of the top 10 construction companies appointed new CEOs, most of whom prioritized internal stabilization. However, as the sole owner-CEO among the top 10 construction companies, Huh’s approach to management stability carries particular weight. Owner-CEOs tend to adopt a longer-term perspective when formulating business plans, enabling them to develop systematic strategies that enhance corporate value over the long haul. In 2023, GS E&C achieved better financial performance and order intake compared to the previous year under Huh’s leadership. Despite this, Huh appears to have determined that "stability" is critical for ensuring sustainable growth amid uncertain market conditions in his second year as CEO. According to financial data provider FnGuide, GS E&C is estimated to have recorded consolidated revenue of KRW 12.7485 trillion (USD 9.19 billion) and an operating profit of KRW 325.2 billion (USD 234.5 million) in 2024. While revenue decreased by 5.1% year-over-year, the company managed to turn a profit, recovering from the KRW 387.9 billion (USD 279.7 million) operating loss in 2023 due to compensation costs for the Incheon accident and extensive cost reviews. Although the estimated operating profit margin of 2.6% for 2024 remains below the 4.5% margin in 2022, the ability to overcome the significant losses from the previous year is seen as a positive achievement, considering the challenging market conditions. In terms of new orders, which serve as a foundation for future performance, GS E&C outperformed its peers in the construction industry. By the end of the third quarter of 2023, the company had achieved cumulative new orders worth KRW 12.961 trillion (USD 9.35 billion), nearing its annual target of KRW 13.3 trillion (USD 9.6 billion). Adding orders from October to November, estimated at KRW 5.7 trillion (USD 4.11 billion), GS E&C significantly exceeded its goal. Among the top 10 construction companies, GS E&C was the only one to surpass its annual order target by such a wide margin. Despite these achievements, Huh focused on stabilizing the business by renewing the "Xi" brand and reorganizing the company. Rather than making drastic changes to the brand’s high-end image or logo, he shifted its focus from being supplier-oriented to customer-centric, strengthening its image of trustworthiness. In November 2023, Huh stated at the Xi brand renewal event, "Xi Rebranding is not just a superficial change in image but a foundation for strengthening the fundamentals. We will strive to create residential environments where customers can live more happily through innovative technologies and services." In the recent organizational restructuring, GS E&C reduced its business divisions from six to three. The core divisions—Architecture and Housing, Infrastructure, and Plant—became the main focus, while the New Business, Green Business, and Australia Business divisions were integrated into the remaining three or reduced to unit-level organizations. In 2023, GS E&C secured a KRW 1.7 trillion (USD 1.23 billion) contract for the "Fadhili Gas Expansion Program Package 2" in Saudi Arabia, further boosting its plant business. The company plans to increase its annual revenue from the plant division to over KRW 1 trillion (USD 720 million) starting this year and maintain up to KRW 2 trillion (USD 1.44 billion) annually in the coming years. Meanwhile, GS E&C is proceeding with the sale of its water treatment subsidiary, GS Inima. Huh, who spearheaded GS E&C's water treatment capabilities, is signaling his intent to stabilize the company’s financial structure with this move. According to Spanish media reports, GS E&C is working to sell more than 50% of GS Inima’s shares, with an estimated transaction value exceeding KRW 1 trillion (USD 720 million). This would involve transferring full control of the subsidiary. In his New Year’s address, Huh stated, "We will focus on strengthening the fundamentals of construction, grounded in safety and quality, and laying the foundation for mid- to long-term growth through strategic choices and concentration." Industry observers suggest that if Huh successfully achieves stable growth for GS E&C amid the industry downturn, he could strengthen his position as a candidate for the next chairman of GS Group. With fourth-generation leadership taking center stage in GS Group’s core businesses of energy, retail, and construction, attention is growing on the next chairman candidates. Huh Yoon-hong’s name has been included in the conversation since his appointment as CEO of GS E&C. Currently, Huh Se-hong, CEO of GS Caltex and born in 1969, is considered the leading candidate in the succession race, having led a key affiliate since 2019. However, Huh Yoon-hong, born in 1979, is also gaining attention as a strong contender. Both appeared at the GS Group Hackathon in July 2023, drawing significant interest from the business community. #HuhYoonHong #GSEngineeringAndConstruction #GSGroup #ConstructionIndustry #OwnerManagement #XiBrand #GSInima #PlantBusiness #KoreanConstruction #Leadership
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- Like Father: Lotte Group’s Shin Yoo-yeol Ushers in Third-Generation Era with Global Ventures and New Businesses
- Shin Yoo-yeol, head of Lotte Corporation’s Future Growth Division, appears to face a challenging path to being recognized as the group’s successor. Lotte Group has entered emergency management due to a liquidity crisis stemming from poor performance at Lotte Chemical. This creates a structure in which Shin Yoo-yeol may find it difficult to fully demonstrate his capabilities as he has only recently begun accelerating his succession training. Rather than focusing on reforming core businesses, Shin is expected to prove his management skills through global ventures and new businesses under his supervision, using those achievements to build a case for his succession. On January 13, 2025, industry insiders widely agreed that Shin’s promotion speed within Lotte Group is remarkably fast compared to other conglomerates. Shin first appeared in Lotte Group in the first half of 2020, joining Japan’s Lotte as a department head, which is considered the origin of the Korea-Japan Lotte Group. By May 2022, he had been promoted to an executive role and was in charge of new businesses at Lotte Chemical’s Tokyo office. Shin’s presence in Korea’s Lotte Group became more prominent from September 2022, when he accompanied Chairman Shin Dong-bin on a business trip to Southeast Asia, bringing him into the spotlight of Korean media. He then took on front-line management roles, including being appointed as CEO of Lotte Financial, and rapidly climbed the ranks within Lotte Group, rising to senior managing director by the end of 2023 and executive vice president by the end of 2024. His rise from department head to executive vice president in just over four years is exceptionally fast. While other conglomerates like Hanwha Group and HD Hyundai Group have introduced successors in their 30s and 40s, it is difficult to find someone who has advanced as quickly as Shin Yoo-yeol. Given Chairman Shin Dong-bin’s age, there is speculation that Shin Yoo-yeol’s succession training is being accelerated to prepare him for leadership within Lotte Group. Shin’s lack of experience may have also contributed to his rapid promotions. Compared to other conglomerate heirs who typically gain at least five years of domestic business experience before taking on significant management roles, Shin’s practical experience within Lotte Group is considered limited. It is seen as a strategic move by Shin Dong-bin to push Shin Yoo-yeol through an intensive succession training program, helping him gain a comprehensive understanding of the group’s operations and develop the vision to lead Lotte Group. However, Shin Yoo-yeol’s path is far from easy. The greatest challenge is that Lotte Group is currently in a precarious state, making it difficult for Shin’s capabilities to shine. Lotte Group’s financial structure has weakened due to three consecutive years of operating losses at Lotte Chemical. Rumors of a liquidity crisis at the end of last year, which put the group in a difficult position, were rooted in Lotte Chemical’s poor performance. The fact that Chairman Shin provided the symbolic Lotte World Tower as collateral to banks highlights the challenges facing Lotte Group. Shin Yoo-yeol is also unlikely to emulate Chairman Shin Dong-bin’s aggressive approach to mergers and acquisitions (M&A). With the group currently focusing on selling non-core assets rather than investing, the resources for significant acquisitions are lacking. As a result, Shin Yoo-yeol’s opportunities to prove himself will primarily lie within the Future Growth Division at Lotte Corporation and the Global Strategy Division at Lotte Biologics. The Future Growth Division was established in December 2023, coinciding with Shin Yoo-yeol’s promotion to senior managing director. According to Lotte Corporation, this division oversees the group’s new business initiatives and identifies additional growth engines. The Global Strategy Division at Lotte Biologics shares a similar mission, focusing on strategies to help Lotte Biologics become a top 10 global contract development and manufacturing organization (CDMO) by 2030. Chairman Shin Dong-bin has also reshuffled the leadership within the Future Growth Division to support Shin Yoo-yeol’s development. In the regular executive reshuffle at the end of November 2024, Lim Jong-wook was appointed head of the New Growth Team under the Future Growth Division. Lim had previously filled Shin Dong-bin’s role as a director of FRL Korea, which operates Uniqlo in Korea, after the chairman stepped down. Kim Su-nyeon, who has expertise in planning and strategy within Lotte Group, continues to serve as head of the Global Team for the second consecutive year. These two individuals are expected to play key roles in Shin Yoo-yeol’s future growth as a group leader. Observers have noted similarities between Shin Yoo-yeol’s training process and the early days of Shin Dong-bin’s rise in Lotte Group. When Shin Dong-bin began taking the reins of Korea’s Lotte Group, he was praised for having a "growth-oriented DNA." Unlike Shin Kyuk-ho, the group’s founder, who adhered to the principle of "Lotte should only do what it already does," Shin Dong-bin was known for his belief in expanding the business whenever opportunities arose. In the late 1990s, comparisons between Shin Kyuk-ho’s conservative approach and Shin Dong-bin’s proactive style led to descriptions of the two as having "polar opposite management styles." Similarly, Shin Yoo-yeol is expected to bring international management insights to Lotte Group, as he shares his father’s experience at Nomura Securities in Japan. As Lotte Group moves beyond its traditional focus on chemicals and retail to explore new ventures in biotechnology and the metaverse, Shin Yoo-yeol’s role is anticipated to become increasingly important. #ShinYooYeol #LotteGroup #FutureGrowthDivision #LotteBiologics #ManagementSuccession #ShinDongBin #LotteChemical #LeadershipDevelopment #NewBusiness #KoreanConglomerates
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- SK's Chey Tae-won Dominates HBM: Poised to Lead Glass Substrates Amid Samsung, LG Pursuit
- Chey Tae-won, chairman of SK Group, mentioned during CES 2025, "I just sold it," referring to semiconductor glass substrates. This statement has set the stage for fierce competition among SK, Samsung, and LG groups. With SKC's glass substrate-focused subsidiary, Absolics, planning to commercialize glass substrates in the first half of this year, Samsung Electro-Mechanics and LG Innotek have also identified the glass substrate business as a future growth driver and are making moves to catch up. However, due to the fragility of glass and the high difficulty of processing it, numerous technological challenges must be overcome before full commercialization can be achieved. As of January 13, the semiconductor substrate industry anticipates that the "dream substrate," semiconductor glass substrates, could begin commercial production as early as the first half of this year. SKC subsidiary Absolics has outlined plans to commercialize glass substrates in the first half of this year and begin mass production at its Covington, Georgia plant in the second half. At CES 2025, held recently in Las Vegas, Absolics showcased its glass substrate at SK Group’s booth. On January 8 (local time), Chairman Chey Tae-won garnered attention by holding a model of the glass substrate and stating, "I just sold it." Given that Chairman Chey met with Nvidia CEO Jensen Huang before visiting the SK Group booth, some interpret this as an indication that Nvidia has been secured as a customer for glass substrates. Having already forged a strong alliance with Nvidia through high-bandwidth memory (HBM), SK Group appears to have positioned itself to dominate the glass substrate market as well. Park Jin-soo, a researcher at Shin Young Securities, noted, "Absolics is currently operating a small-scale mass production system for glass substrates to provide sample production for customers. By the second half of 2025, it will transition to large-scale production, and by 2026, its revenue from glass substrates is expected to reach KRW 315.1 billion (approximately USD 227.3 million)." Glass substrates offer several advantages: they can maintain their shape at temperatures exceeding 700 degrees, are more rigid than traditional plastic materials, and are resistant to bending, enabling the production of larger substrates. As the recent AI boom drives an increase in the number of semiconductors on a single substrate, customer demand for larger substrate sizes continues to grow. Additionally, glass substrates are flatter than plastic, allowing for more precise circuit engraving. Given these advantages, Samsung Electro-Mechanics and LG Innotek, which have traditionally focused on printed circuit boards (PCBs), have also identified glass substrates as a new growth sector. However, their commercialization timelines lag behind SKC. Samsung Electro-Mechanics has recently established a pilot production line for glass substrates at its Sejong plant, with plans to begin customer sample promotions in 2025 and commence mass production after 2027. Even under the best-case scenario, Samsung’s mass production will trail SKC’s by one to two years. LG Innotek plans to begin pilot production of glass substrates by the end of this year, with full-scale mass production possible by 2026 at the earliest. In an interview on January 8 (local time) in Las Vegas, LG Innotek CEO Moon Hyuk-soo emphasized, "Glass substrates are an essential direction we must pursue. LG Innotek is preparing to ensure we are not too late." The semiconductor glass substrate market is expected to experience rapid growth. According to market research firm The Insight Partners, the global glass substrate market size is projected to grow from USD 23 million (approximately KRW 3.11 billion) in 2025 to USD 4.2 billion (approximately KRW 568.26 billion) by 2034. However, glass substrates are prone to cracking, scratches, and other defects during processing. To ensure stable yields (the proportion of usable finished products), manufacturers must develop technologies to enhance glass strength and reduce the force applied during processing. Additionally, glass has weak adhesion properties, making it difficult to stack semiconductors on it. Collaboration with glass manufacturers like Corning is essential to address this challenge. Samsung Electro-Mechanics CEO Jang Deok-hyun stated during a press briefing in Las Vegas on January 8 (local time), "Currently, only about four to five companies worldwide can produce glass substrate samples. The challenge lies in developing technology to ensure glass substrates can withstand the weight of server-grade semiconductor chips without breaking. The technical difficulty is significant." #CheyTaeWon #SKGroup #Semiconductor #GlassSubstrates #CES2025 #Absolics #SamsungElectroMechanics #LGInnotek #Nvidia #TechnologyInnovation #AI
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- Lotte E&C Starts Strong in Urban Redevelopment, Park Hyun-chul Eyes Overseas Breakthrough
- Lotte Engineering & Construction (E&C) announced a strong start to its urban redevelopment business in 2025 by winning its first project of the year, the redevelopment of the northern area of Sinyongsan Station, considered a prime location. Lotte E&C’s CEO and Vice Chairman Park Hyun-chul is focusing on securing both financial stability and a robust order book, but filling the gap left by reduced overseas orders is expected to be a challenge. On January 13, 2025, Lotte E&C was selected as the contractor for the urban redevelopment project in Sinyongsan Station's northern area, considered a high-profit project. This marks an improvement compared to 2024, when the company won its first project in May. On May 26, 2024, Lotte E&C secured a KRW 431.5 billion (USD 311 million) redevelopment project in the northern area of Anyang Sports Complex, signaling a late start in the urban redevelopment sector. In 2023, Lotte E&C achieved modest results in urban redevelopment, securing only two projects worth KRW 517.3 billion (USD 373 million). This was attributed to CEO Park’s prioritization of financial improvement since his appointment at the end of 2022. By the end of 2022, Lotte E&C’s current liabilities stood at KRW 5.774 trillion (USD 4.16 billion), but they decreased to KRW 4.749 trillion (USD 3.43 billion) in the first quarter of 2024. Although liabilities increased to KRW 5.156 trillion (USD 3.72 billion) in the third quarter of 2024 due to rising accounts payable and other current liabilities, they remained below previous levels. In terms of total liabilities, the figure fell from KRW 6.953 trillion (USD 5.01 billion) at the end of 2022 to KRW 5.889 trillion (USD 4.25 billion) in the third quarter of 2024. As a result, the debt-to-equity ratio decreased from 264% in 2022 to 217% in the third quarter of 2024. With financial stability secured in 2024, Park shifted his focus to selective project bidding and profitability, advancing urban redevelopment efforts. Despite the late start, Lotte E&C achieved KRW 1.957 trillion (USD 1.41 billion) in orders in 2024, ranking sixth in the construction industry. Considering that Lotte E&C’s construction capability evaluation ranking was eighth in 2024, this performance exceeded expectations. Key urban redevelopment projects secured by Lotte E&C in 2024 included the Anyang Sports Complex northern area redevelopment, Shinbanpo 12th apartment reconstruction, Cheonho Woosung apartment reconstruction, Jeonnong District 8 redevelopment, and Yongsan Sanho apartment redevelopment. In parallel, Lotte E&C also streamlined its portfolio by withdrawing from less profitable projects. In September 2024, Lotte E&C relinquished the construction rights for the KRW 280 billion (USD 202 million) Daedeok District officetel development project in Daejeon. Although the company incurred an initial investment loss of KRW 30 billion (USD 21.6 million), it deemed this a better decision than proceeding with the project. In October 2024, Lotte E&C also withdrew from the large-scale Daehan Textile site development project worth KRW 6 trillion (USD 4.33 billion) by repaying KRW 104.6 billion (USD 75.4 million) in loans it had guaranteed, signaling its exit from the project. Park’s selective project strategy focused on profitable ventures is expected to continue in 2025. Lotte E&C, in consortium with GS E&C, is vying for the redevelopment project of Sangye District 5. The area is expected to hold a general meeting by mid-March 2025 to vote on the consortium’s selection as the contractor. Lotte E&C is also pursuing the Yeouido Daegyo Apartment reconstruction project. The reconstruction association plans to select a contractor in the first half of 2025 and aims to secure project implementation approval by October. Another notable target for Lotte E&C is the redevelopment of the Seongsu Strategic Redevelopment Zone. On November 25, 2024, Seoul City’s 12th Urban Planning Committee revised and approved plans for the housing redevelopment of the Seongsu Strategic Redevelopment Zone (Districts 1 to 4), setting the building height at 250 meters and the floor area ratio at 300% (500% in semi-residential areas). The redevelopment is expected to provide 9,428 housing units, including 1,792 rental units. While Lotte E&C has shown progress in financial stability and urban redevelopment, its overseas orders remain a challenge. In 2022, Lotte E&C secured overseas construction orders worth USD 1.751 billion (KRW 2.574 trillion), ranking fifth in the industry. However, by 2023, the annual overseas order volume dropped over 90% to USD 117.68 million (KRW 173 billion), pushing the company out of the top 20. In 2024, Lotte E&C recorded a negative backlog of USD 45.06 million (KRW 62.5 billion) in overseas construction, mainly due to contract adjustments for projects in Indonesia, Vietnam, and China. Lotte E&C’s reliance on its affiliate, Lotte Chemical, for overseas orders has also been a limiting factor. For instance, the “LINE Project,” an Indonesian petrochemical complex that helped Lotte E&C rank fifth in 2022, was commissioned by Lotte Chemical. With Lotte Chemical reportedly planning to reduce its net debt to KRW 5 trillion (USD 3.6 billion) in 2025 by considering overseas subsidiary sales, Lotte E&C’s reliance on affiliate-driven overseas orders may face further limitations. When asked about expanding overseas orders, a Lotte E&C official stated, “While we are focused on solid management, we continue to explore and evaluate profitable overseas construction projects.” #LotteConstruction #UrbanRedevelopment #ParkHyunChul #SinyongsanStation #FinancialStability #ConstructionIndustry #OverseasProjects #SelectiveBidding #SeongsuRedevelopment #AnyangRedevelopment
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- Next-Generation Cancer Treatment Market Opens: Samsung Biologics’ John Rim Accelerates Technology Acquisition
- John Rim, the CEO and President of Samsung Biologics, is actively strengthening the company's technological capabilities to target the rapidly growing market for next-generation cancer treatment, antibody-drug conjugates (ADCs). Samsung Biologics is enhancing its capabilities by partnering with leading companies in ADC technology development to secure future contract development and manufacturing organization (CDMO) projects in this field. According to the pharmaceutical and biotechnology industry on January 10, Samsung Biologics is expected to expand its ADC-related business through its ADC-exclusive production facility completed late last year in Songdo, Incheon. Before completing its 500-liter ADC-exclusive production facility in late 2023, Samsung Biologics had no ADC manufacturing infrastructure. However, with this new facility, the company can now provide ADC drug development and conjugation services. ADCs are therapeutic agents that connect an antibody targeting cancer cells to a cytotoxic drug (payload) via a linker. They selectively attack cancer cells, offering high efficacy with minimal side effects, making them a promising next-generation cancer treatment. In early 2023, John Rim announced plans to construct a new ADC production facility to proactively respond to market expansion, aiming to secure a competitive edge in next-generation cancer treatments. The completion of the facility represents the first outcome of this strategy. To maximize the role of the production facility, John Rim is focusing on enhancing ADC-related technological capabilities. Samsung Biologics announced on January 9 that it would launch three projects at its ADC production facility, completed in December 2024, in collaboration with Ligand Bio. The two companies signed a contract development (CDO) and material transfer agreement (MTA) last year to advance ADC therapeutic development. Ligand Bio, which has successfully exported ADC technology for six consecutive years since 2019, uses its proprietary linker platform technology, "ConjuAll." The timing and location of drug release in ADCs significantly impact efficacy and toxicity. By securing Ligand Bio, a leader in linker technology, as a partner, Samsung Biologics has strengthened its competitiveness in ADC drug contract manufacturing. This collaboration is also seen as a move to gain an early foothold in the rapidly growing global ADC market. The success of "Enhertu," an ADC therapy developed by Daiichi Sankyo and AstraZeneca, has spurred global pharmaceutical companies to enter the ADC development race. According to Evaluate Pharma, the global ADC market grew tenfold from $1 billion in 2015 to $10 billion in 2023 and is projected to reach $28 billion by 2028. At the forefront of this growth is Enhertu, which became a blockbuster drug (annual sales exceeding KRW 1 trillion or USD 721.3 million) in just four years. Approved by the FDA in 2019, Enhertu achieved annual sales of $2.57 billion (KRW 3.4 trillion) by 2023. Its market expanded further in April 2024 when it was approved for all HER2-positive solid tumors. Global pharmaceutical companies like Pfizer, AstraZeneca, and Johnson & Johnson (J&J) are rapidly expanding their ADC candidate pipelines. Haesoon Kwon, an analyst at Eugene Investment & Securities, noted, “MSD (Merck & Co.) has expanded its ADC pipeline with over eight candidates within two years.” Major acquisitions of ADC candidates have continued into the new year. Swiss pharmaceutical company Roche acquired the DLL3-targeting candidate "IBI3009" from China’s Innovent Biologics for $1.08 billion and signed a $780 million contract with Swiss biotech Araris Biotech to develop ADC candidates. Numerous clinical trial results for ADC therapies are expected to be presented at the upcoming JP Morgan Healthcare Conference, the world’s largest biotech conference, starting January 13. The production of ADC therapies is similar to manufacturing antibody drugs but involves challenging processes of combining cytotoxic drugs with linkers to target specific cells accurately, requiring stringent quality control and yield management. Despite the oversupply in monoclonal antibody drug production, Samsung Biologics surpassed KRW 5 trillion (USD 3.6 billion) in annual cumulative orders for the first time last year, leveraging its strong CDMO capabilities. John Rim’s confidence in the ADC field appears to stem from these established strengths. Three new ADC drugs are anticipated to be launched this year. Haesoon Kwon noted, “The approvals of DATODXd (targeting TROP-2), Patritumab Deruxtecan (targeting HER3), and Teliso-V (targeting cMET) are expected to be finalized by 2025, drawing renewed attention to ADC mechanism pipelines.” #JohnRim #SamsungBiologics #ADCtherapy #cancertreatment #biotechnology #pharmaceuticals #LigandBio #globalmarket #Enhertu #Koreanbiotech
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- KB Financial Builds Next-Gen Financial Team to Support Yang Jong-hee's Value-Up Strategy
- Yang Jong-hee, Chairman of KB Financial Group, has completed the establishment of a financial leadership team to support the full-fledged implementation of the group’s value-up strategy. Yang appointed Na Sang-rok, born in the 1970s, as the group’s Chief Financial Officer (CFO), a position traditionally held by executive vice presidents or managing directors. He also selected Choi Young-chul, a younger talent, as head of financial planning to work closely with Na, emphasizing generational change. According to KB Financial on January 10, the group finalized its major organizational restructuring for 2025, concluding with department-level appointments within the holding company and the bank. Under Na Sang-rok, KB Financial Group’s financial division consists of Choi Young-chul as head of financial planning and Moon Bok-ki as head of accounting. KB Financial is known within the financial sector for placing significant emphasis on its financial division, drawing considerable attention to its CFO and financial staff appointments during the year-end and New Year personnel changes. This year, in particular, is Yang Jong-hee’s second year as chairman, a period where his management style is becoming evident. With heightened interest rate and foreign exchange volatility and the group’s active execution of its value-up strategy, capital management has emerged as the most critical management challenge for the financial holding company. As a result, the financial division, already a core part of the group, is poised to play an even more significant role. Na Sang-rok, promoted to CFO as an executive director, is garnering attention for breaking tradition. Historically, KB Financial’s CFO role has been held by executive vice presidents or managing directors who have served in key positions at the holding company and Kookmin Bank. The only exception was in 2017, when Lee Jae-geun, then head of financial planning, served as acting CFO for one year after being promoted to executive director. Born in 1972, Na is younger than his predecessors. His immediate predecessor, Kim Jae-kwan, CEO of KB Kookmin Card, was born in 1968. Previous CFOs, including Kim Ki-hwan (former CEO of KB Insurance, born in 1963), Lee Hwan-joo (President of KB Kookmin Bank, born in 1964), and Seo Young-ho (former global head of KB Financial, born in 1966), were all born in the 1960s. Na graduated from Sogang University with a degree in economics and gained extensive experience within KB Financial’s financial planning department, serving as a branch manager and leading the department from 2020 onward. He is regarded as a financial expert with deep insight into the group’s internal operations. Choi Young-chul, born in 1978, has been appointed to fill Na’s previous role as head of financial planning. He first entered department-level management in 2024 as head of the synergy promotion department under KB Financial’s strategy division. While not yet an executive, Choi will assist the CFO in overseeing the group’s financial management operations. KB Financial’s financial planning head also serves as a non-executive director on the boards of group affiliates. Na Sang-rok, during his tenure in financial planning, served as a non-executive director for KB Capital and KB Investment, managing group-wide business issues and financial indicators. Since announcing a corporate value enhancement plan under the government’s value-up disclosure program last year, Yang has repeatedly emphasized the importance of implementing value-up measures. At this year’s opening ceremony, Yang stated, “KB Financial will unwaveringly strengthen shareholder returns, manage capital ratios, and enhance return on risk-weighted assets (RoRWA) by 2025. We must solidify KB’s foundation through efficiency and innovation to deliver higher value to shareholders, markets, customers, and society.” In a handwritten letter sent to major overseas investors on January 6, Yang reiterated his commitment to value-up implementation and outlined a growth strategy centered on capital management. In November 2024, during a shareholder meeting, Yang announced plans to faithfully execute shareholder return policies aligned with the value-up framework. A KB Financial Group representative stated, “The core of KB Financial’s value-up strategy is utilizing capital exceeding a CET1 ratio of 13% for shareholder returns, reinforcing capital efficiency. This year, we will continue allocating capital efficiently across all business operations and pursuing a growth strategy focused on RoRWA management, maintaining top-tier shareholder return policies in the industry.” #YangJonghee #KBFinancialGroup #financialmanagement #shareholderreturns #capitalmanagement #generationalshift #valueupstrategy #RoRWA #financialleadership #Koreanfinance
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- Sampyo Group Advances as Real Estate Developer, Chung Do-won Focuses on Seongsu-dong This Year
- Chung Do-won, Chairman of Sampyo Group, is seeking opportunities in real estate development to navigate the ongoing downturn in the construction materials industry. The group’s push into real estate development is expected to gain momentum this year with the redevelopment of its ready-mixed concrete plant site in Seongsu-dong. According to Sampyo Group on January 10, construction on the Seongsu-dong site in Seongdong-gu, Seoul, is set to begin within 2025. The site, located at 683 Seongsu-dong 1-ga, operated as a ready-mixed concrete plant producing concrete in central Seoul from 1977 until its closure in 2022. The total area is 28,106 square meters. Dubbed “Heart of Seoul Forest” (tentative name), the project plans to develop three buildings up to 56 stories high, featuring multifunctional uses such as office, commercial, cultural, residential, and lodging facilities. The lower floors of the three buildings will be connected by a sunken plaza open to the public. A pedestrian bridge will link Seoul Forest and Eungbong Station on the Gyeongui-Jungang Line, as well as a pedestrian bridge connecting Apgujeong-dong across the Han River, integrated with the redevelopment plans for Apgujeong District 3. Sampyo Group views the Seongsu-dong project as a flagship initiative that will elevate the group’s stature. According to the Korea Intellectual Property Office’s trademark search service, Sampyo Industrial applied for trademarks “Seongsu1” and “Seongsuwon” in November 2024. Currently, Sampyo Industrial is engaged in preliminary negotiations with the Seoul Metropolitan Government over public contributions and floor area ratios. Construction could begin later this year once these negotiations are finalized. The preliminary negotiation system applies to large-scale development sites exceeding 5,000 square meters, allowing private developers and the city to agree on specific plans, including urban planning changes. Introduced in 2009, the system enables the city to secure public benefits, such as infrastructure improvements, in exchange for permitting private developers to upgrade zoning or other project conditions. Chung is also pursuing a real estate development project in Sangam-dong. Sampyo Group is participating as the developer of the private rental apartment project “Hillstate DMC,” its first real estate development endeavor. The project is being overseen by SPS Estate, led by Vice Chairman Chung Dae-hyun. The soon-to-be-relocated ready-mixed concrete plant in Pungnap-dong is also expected to become a key area for Sampyo’s future real estate development. After the plant’s relocation by late 2025, the group is expected to begin planning the site’s redevelopment. Chung’s focus on real estate development stems from the prolonged slump in the construction industry. Typically, the construction materials market lags behind the construction sector by six months to two-and-a-half years. According to the Ministry of Land, Infrastructure, and Transport, construction start areas dropped from 135.29 million square meters in 2021 to 110.83 million square meters in 2022, and further to 75.67 million square meters in 2023. From January to November 2024, the total was 71.13 million square meters, on par with 2023. The number of housing starts also declined, from 185,841 units in 2021 to 153,205 units in 2022, and 115,783 units in 2023. For the first 11 months of 2024, the figure was 98,994 units. Increased industrial electricity rates are further challenging construction material companies. In October 2024, the government and Korea Electric Power Corporation raised industrial electricity rates by an average of 9.7%. Sampyo’s real estate development projects are expected to create synergy with the group’s existing construction material business while also benefiting its new ventures. One of these ventures is the robotic parking business operated by SP & Mobility, a subsidiary of Sampyo Group, with Vice Chairman Chung Dae-hyun holding a 60% stake as the largest shareholder. The robotic parking system, which maximizes parking space with minimal facilities, is gaining attention for large-scale real estate developments. SP & Mobility is targeting the domestic market with its “MP System” premium robotic parking brand, which operates alongside its pallet-based parking solution, “Sistema Pallet.” #ChungDowon #SampyoGroup #realestatedevelopment #SeongsuDong #constructionmaterials #realestate #roboticparking #constructionindustry #SPMobility #urbanredevelopment
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- Samyang Foods Nears 'KRW 2 Trillion Club,' Kim Jung-soo Sets Sights on Japan’s Ramen Giants
- Kim Jung-soo, Vice Chairman and CEO of Samyang Foods, faces competition from Japanese companies in the ramen industry, the birthplace of instant noodles. Samyang Foods is expected to surpass KRW 2 trillion (USD 1.44 billion) in annual revenue, just two years after joining the "KRW 1 Trillion Club." This is significantly faster compared to its rival Nongshim, which took 12 years to grow from KRW 1 trillion to KRW 2 trillion in annual revenue. Samyang Foods’ revenue growth rate and operating profit margin have outperformed even Japan’s top two ramen companies, Nissin Foods Holdings and Toyo Suisan. Analysts expect Kim to narrow the performance gap with these competitors at an even faster pace. On January 9, an analysis of revenue trends among South Korean and Japanese ramen companies suggested that Samyang Foods could achieve performance comparable to Japanese ramen giants. In terms of revenue, Samyang Foods still lags far behind Japan’s industry leaders. For 2024, Nissin Foods Holdings is projected to generate JPY 732.9 billion (KRW 7.23 trillion or USD 5.2 billion), and Toyo Suisan JPY 505.8 billion (KRW 4.67 trillion or USD 3.3 billion). In comparison, Samyang Foods’ projected revenue for the year is KRW 2.08 trillion (USD 1.49 billion). While revenue differences appear substantial, Samyang Foods’ growth rate tells a different story. Its 2023 revenue is estimated to have grown by 43.3%, compared to 1.1% for Nongshim, 6.6% for Nissin Foods, and 5.9% for Toyo Suisan. Projections for 2024 remain similar, with Samyang Foods’ revenue expected to grow 20.7% compared to 3.6% for Nissin Foods and 3.8% for Toyo Suisan. Samyang Foods surpassed KRW 1 trillion (USD 722 million) in annual revenue for the first time in 2023. If it exceeds KRW 2 trillion (USD 1.44 billion) in 2024, it will have doubled its revenue in just two years. In contrast, Nongshim took 12 years to achieve this milestone, reaching KRW 1 trillion in 1998 and KRW 2 trillion in 2010. Samyang Foods is not only achieving rapid revenue growth but also maintaining strong profitability. Its operating profit margin for both 2023 and 2024 is expected to hover around 20%. In comparison, Nissin Foods is projected to achieve a margin of 10%, Toyo Suisan 15%, and Nongshim 5%. For the first time in 2023, Samyang Foods is believed to have surpassed Nongshim in operating profit, recording KRW 347.5 billion (USD 251.1 million) compared to Nongshim’s KRW 217.2 billion (USD 157 million). Samyang Foods’ operating profit increased by 135.6%, while Nongshim’s grew by just 2.4%. This high growth trajectory is pushing domestic ramen companies, including Nongshim and Ottogi, to expand their overseas operations, a move attributed to Samyang Foods’ performance. Japanese ramen companies are also reacting. Nissin Foods has shown signs of countering Samyang Foods by launching a product in April 2023 resembling Samyang’s “Carbo Buldak Stir-Fried Noodles.” The packaging features Korean text and pink coloring similar to Samyang’s product. Nissin Foods, known for pioneering instant noodles with “Chicken Ramen” and cup noodles with “Cup Noodles,” releasing such a product highlights Samyang Foods' growing influence in the global market. Samyang Foods and Nongshim’s strong performance overseas has contributed to this dynamic. In 2023, their combined overseas sales were about half of Nissin Foods and Toyo Suisan’s. However, by 2024, they are expected to reach nearly 70%. Kim Jung-soo’s strategies suggest that Samyang Foods will continue to increase pressure on Japanese ramen companies. The decision to establish its first overseas production facility in China reflects Kim’s determination to compete directly with global ramen giants. Building a factory in China, despite the challenges of the local "guanxi culture" emphasizing long-standing relationships, underscores the market’s significance as the world’s largest ramen market, valued at approximately USD 18 billion. This is three times larger than Japan’s ramen market. China also accounts for about 25% of Samyang Foods’ cumulative revenue through Q3 2023, yet its market share there remains below 2%, indicating significant growth potential. Samyang Foods aims to start operations at its Chinese factory in 2027. By producing for the Chinese domestic market locally, its Milyang Plant 1 and soon-to-be-completed Plant 2 can focus on supplying the higher-margin U.S. and European markets. The decision to establish the Chinese factory is viewed as a strategy to create a virtuous growth cycle and accelerate Samyang Foods’ overseas momentum. Securities analysts are optimistic about the factory’s potential contribution to Samyang Foods’ financial performance. In his 2024 New Year’s address, Kim emphasized the importance of strengthening global networks and production capabilities. He stated, “We must focus on doing what we currently excel at even better, ensuring no competitor can catch up. By increasing production, entering overseas markets, and localizing production, we will embed stronger global networks and production capabilities into our operations.” #SamyangFoods #KimJungSoo #globalexpansion #ramenmarket #Chinafactory #Nongshim #NissinFoods #ToyoSuisan #growthstrategy #operatingprofit
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- LGCNS Embarks on KRW 6 Trillion IPO, Hyun Shin-gyoon Leads Push into Global AI and Cloud Markets
- Hyun Shin-gyoon, recently promoted to President of LGCNS in 2024, has taken on the critical task of completing the company’s initial public offering (IPO). All eyes are on whether he can successfully lead the process. President Hyun plans to use this IPO as a springboard to enhance capabilities in new technologies such as artificial intelligence (AI) and cloud services, aiming to enter the global market in earnest. On January 9, Hyun held an IPO press conference at the Conrad Hotel in Yeouido, Seoul, where he unveiled LGCNS's mid- to long-term business strategies following its listing. "This IPO will mark a new turning point for LGCNS as it takes a leap onto the global stage," said Hyun. "We will strengthen our capabilities in AI and cloud technologies, as well as digital transformation (DX), and aggressively expand our global business." LGCNS, the IT services affiliate of LG Group, was established in 1987 as the group’s dedicated IT services company. Over the years, it has expanded into sectors such as finance, public services, and transportation. Since 2021, the company has focused on high-growth next-generation digital transformation technologies like AI and cloud services. As of 2023, these sectors accounted for 51.6% of LGCNS's total revenue, establishing them as core business areas. With this IPO, LGCNS aims to transition from being a domestic group-affiliated systems integration (SI) company to a growing player in the international IT services market. Hong Jin-heon, Senior Executive Director, stated, "LGCNS is the dominant leader in IT services in South Korea, and we are confident it will succeed globally. We plan to expand into overseas markets based on our proven capabilities in smart factories, financial IT, and cloud solutions." According to its securities filing, LGCNS plans to use approximately 60% of the anticipated KRW 515 billion (USD 372 million) raised from the IPO’s lower price range, or KRW 330 billion (USD 238 million), for mergers and acquisitions (M&A) of overseas IT companies. Hyun remarked, "Although I can’t share specifics, M&A in areas like smart engineering, AI, and cloud technologies is progressing to some extent, and you may hear surprising news soon." Expanding into overseas markets has long been an ambition for South Korea's major SI affiliates. This stems from the domestic IT services market nearing maturity and growth limitations, along with the need to reduce dependency on internal group transactions and enhance independent corporate competitiveness. LGCNS has already made strides internationally, forming a joint DX venture with Indonesia’s Sinar Mas Group in 2022 and establishing partnerships with global companies like SAP. Hyun stated, "Our overseas revenue has surpassed KRW 1 trillion (USD 723 million), and sales to global companies outside the LG Group account for slightly over 20% of annual revenue. Our next challenge is to aggressively penetrate overseas markets using funds raised through the IPO." Despite adverse conditions such as the recent surge in the won-dollar exchange rate and domestic political instability, LGCNS decided to proceed with the IPO, demonstrating its commitment to the listing process. In contrast, internet-only bank K-Bank withdrew its IPO plans on January 8, citing weak stock market conditions due to domestic and international uncertainties, which made it difficult to achieve a proper valuation. President Hyun addressed concerns, stating, "While overseas investors expressed significant concerns, fortunately, worries about South Korea’s economy and capital markets don’t appear to be severe. We aim to make this IPO a positive signal for the Korean economy." LGCNS plans to conduct public subscription offerings for individual investors on January 21–22 and list on the KOSPI market in early February. The lead underwriters are KB Securities, Bank of America (BoA), and Morgan Stanley, with joint underwriters including Mirae Asset Securities, Daishin Securities, Shinhan Investment, and JP Morgan. Born in 1965, President Hyun is an IT specialist who built his career at global consulting firms. Since joining LGCNS, he has been credited with strengthening the company’s expertise and enhancing its competitiveness in DX-driven technologies. #LGCNS #HyunShinGyoon #IPO #AITechnology #CloudSolutions #DXTechnology #LGGroup #GlobalExpansion #MergersandAcquisitions #ITServices
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- LG Electronics' Cho Joo-wan: "Competitors' Entry into Subscription Business Could Expand the Market"
- Cho Joo-wan, President and CEO of LG Electronics, expressed that the entry of competitors into the subscription business could potentially expand the market. On January 8 (local time) in Las Vegas, Cho held a press conference to introduce LG Electronics' 2025 business strategy. Regarding Samsung Electronics' recent entry into the home appliance subscription business, he said, “I see this positively, as it could actually expand the market,” adding, “One of the reasons for this positive outlook is LG Electronics' strengths.” He explained, “Subscription is not about installment payments; care is the core. We currently have 4,000 to 5,000 care managers, and I believe their capabilities, networks, and experience are our strengths.” Ryu Jae-cheol, Head of LG Electronics’ Home Appliance & Air Solution (H&A) Division, elaborated, “It’s not just about changing the payment method of products previously sold outright to a subscription model. It’s about combining subscription-ready products with services to increase customer value.” Cho expressed his ambitions to refine execution strategies amidst the rapidly changing global market and competitive environment, ensuring structural competitiveness and accelerating qualitative growth in the business. He stated, “Differentiation is necessary, whether through advancing business models like platforms such as webOS or creating new business methods like subscriptions. I believe we should focus on maintaining product competitiveness, achieving cost catch-up, and differentiating our business models.” He also presented a blueprint for making LG Electronics a household name in India through the initial public offering (IPO) of the Indian subsidiary. Cho remarked, “We need to go beyond our current business methods and become a brand loved in India. Although India has lower disposable income and per capita income, it is a region rich in exceptional talent.” He added, “India is a region where we dream of conducting fully localized operations and expanding our business.” He clarified that LG Electronics’ home appliance strategy differs from Samsung Electronics’. Ryu Jae-cheol explained, “Instead of focusing on connectivity, LG Electronics enhances the performance of home appliances themselves, evolving them into AI-based appliances, with the foundation being ‘Upgrade Appliances.’ It’s already been three years since we started Upgrade Appliances, and over 80% of our products have become Upgrade Appliances. The U.S. market is also fully transitioning to this model in its second year.” He added, “This does not mean connectivity is unimportant. For example, after acquiring At Home, we have significantly shortened the time required to integrate IoT devices, achieving comparable results in about six months instead of several years.” #LGElectronics #ChoJooWan #subscriptionbusiness #IndiaIPO #businessstrategy #AIappliances #UpgradeAppliances #globalmarket #RyuJaeCheol #homeappliances
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- Samsung Electronics Misses Forecasts Amid Growing Concerns Over Memory and IT Demand Decline
- Samsung Electronics posted an operating profit of KRW 32.7 trillion (approximately USD 23.6 billion) last year, falling short of the market’s conservative forecasts. Many predict that the company will find it difficult to escape its slump in the first half of this year. This is due to anticipated continued declines in memory semiconductor prices, such as DRAM and NAND flash, through the first half of the year. Additionally, weak demand for IT products like smartphones and PCs, coupled with shrinking margins in the display business due to intensified competition, are expected to weigh heavily on performance. On January 8, Samsung Electronics announced fourth-quarter consolidated sales of KRW 75 trillion (approximately USD 54.1 billion) and operating profit of KRW 6.5 trillion (approximately USD 4.7 billion). Operating profit dropped 29.19% compared to the third quarter of 2024, missing the market expectation of KRW 7.9705 trillion (approximately USD 5.7 billion) by over KRW 1.4 trillion (approximately USD 1 billion). For the full year, Samsung Electronics recorded sales of KRW 300.08 trillion (approximately USD 216.4 billion) and operating profit of KRW 32.73 trillion (approximately USD 23.6 billion). While sales were the second-highest in history after 2022’s KRW 302.2314 trillion (approximately USD 218 billion), operating profit fell short of the market estimate of KRW 35 trillion (approximately USD 25.2 billion). Samsung Electronics’ performance last year varied significantly between the first and second halves, largely driven by the semiconductor sector. In the first quarter of 2024, semiconductor market conditions improved, leading to a recovery compared to 2023. In the second quarter, increased semiconductor demand resulted in an "earnings surprise," with operating profit of KRW 10.4 trillion (approximately USD 7.5 billion), far exceeding the market consensus of KRW 8.3 trillion (approximately USD 6 billion). However, in the third quarter, declining demand for general-purpose memory and growing losses in non-memory businesses like foundry and system LSI reduced operating profit to KRW 3.86 trillion (approximately USD 2.8 billion), falling KRW 4 trillion (approximately USD 2.9 billion) short of market expectations. Despite increased sales of the Galaxy S24 series bringing overall operating profit to KRW 9.18 trillion (approximately USD 6.6 billion), this was still KRW 1.6 trillion (approximately USD 1.2 billion) below the market consensus of KRW 10.7717 trillion (approximately USD 7.8 billion). In the fourth quarter, an oversupply in memory led to sharp declines in DRAM and NAND prices, reducing profits in the memory division. Weak IT demand also negatively impacted operating profit in smartphones and OLED displays, resulting in earnings that significantly missed market expectations. Particularly in the semiconductor sector, the foundry division struggled to secure major clients due to yield issues in its 3-nanometer process, amplifying losses. The system LSI division also failed to launch its Exynos 2500 application processor (AP), remaining in deficit throughout the year, dragging down overall operating profit. According to analysts, the combined losses of the foundry and system LSI divisions last year are estimated at KRW 4.7 trillion (approximately USD 3.4 billion). Samsung Electronics’ struggles are expected to continue into the first half of this year. Currently, Samsung Electronics heavily relies on general-purpose DRAM sales while facing delays in supplying NVIDIA’s high-bandwidth memory (HBM). The ongoing decline in memory prices is attributed to factors like China’s mass production of general-purpose DRAM, memory stockpiling due to trade risks associated with the Trump administration, and declining IT product demand. Taiwanese market research firm TrendForce projects that DRAM prices will decline an additional 8–13% in the first quarter of this year, stating, "Early memory stockpiling by set manufacturers, such as laptop makers, in response to potential tariff hikes by the Trump administration has exacerbated price declines." Additionally, advanced DDR5 memory used in AI servers is expected to see a price drop of 3–8% as China’s CXMT begins mass production. Goldman Sachs predicts DRAM prices will continue to fall through the first half of the year, with gradual recovery starting in the second half. Meanwhile, NAND prices, heavily tied to demand for IT products like PCs and smartphones, are expected to face downward adjustments until the third quarter. The foundry and system LSI divisions are also unlikely to secure major new clients in the first half, making it difficult to escape their deficit trends. Demand for IT devices like smartphones, PCs, and tablets, which incorporate Samsung Electronics’ semiconductors, is also expected to decline. Samsung Electronics reportedly reduced its smartphone production target for this year to 229 million units from the 237 million units announced in October 2024. This adjustment reflects growing global economic uncertainty and deepening market stagnation. Global smartphone market growth is also expected to stagnate. Market research firm IDC predicts that smartphone market growth will be limited in 2025 due to increasing smartphone penetration rates, extended replacement cycles, and the rapidly growing market for refurbished smartphones. While the PC market is expected to see growth due to large-scale replacements following the end of Microsoft Windows 10 support, rising component prices and tariff risks under President Donald Trump leave the outlook uncertain. The smartphone business, which supported Samsung Electronics’ earnings last year, is also projected to face declining operating profit due to Qualcomm AP price hikes and rising production costs caused by the sharp increase in the won-dollar exchange rate. In fact, while the Mobile eXperience (MX) division’s revenue increased by KRW 520 billion (approximately USD 374.9 million) year-over-year in the third quarter, rising costs led to a KRW 480 billion (approximately USD 346.1 million) decline in operating profit. In the first half of last year, Samsung Electronics spent KRW 6.0275 trillion (approximately USD 4.4 billion) on AP purchases, up KRW 281.8 billion (approximately USD 203.2 million) from KRW 5.7457 trillion (approximately USD 4.14 billion) in the first half of 2023. Consequently, the MX division’s operating profit margin dropped from 11% in the third quarter of 2023 to 9.2% in the third quarter of 2024. #SamsungElectronics #Semiconductors #DRAM #HBM #Smartphones #MemoryPrices #SystemLSI #Foundry #NAND #MarketOutlook
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- Samsung E&A’s Namkoong Hong Achieves Cash Accumulation, Dividend Resumption Remains Uncertain
- Namkoong Hong, CEO and President of Samsung E&A, appears to have driven the company’s strong performance last year while also achieving results in accumulating retained earnings. As Samsung E&A demonstrates financial stability based on solid performance, there is growing anticipation in the industry for the resumption of dividends after 12 years. However, given the management’s focus on investments for new business expansion amidst an industry downturn, it remains uncertain whether Samsung E&A will decide to resume dividend payments. On January 8, construction industry insiders speculated that Samsung E&A achieved remarkable results last year, despite the harsh winter facing both large and mid-sized construction companies. As of the third quarter of 2024, Samsung E&A reported cumulative annual revenue of KRW 7.388 trillion (approximately USD 5.33 billion) and an operating profit of KRW 675.9 billion (approximately USD 488 million). Compared to the third quarter of 2023, both revenue and operating profit decreased by 5.3% and 6.6%, respectively. However, new orders are expected to exceed KRW 14 trillion (approximately USD 10.1 billion), setting a record, thanks to favorable conditions in overseas construction projects. According to the Overseas Construction Integrated Information Service (OCIS), Samsung E&A secured USD 10.98 billion (approximately KRW 16 trillion) in orders from January to November 2024, ranking first. This marks the first time in 12 years since 2012 (USD 10.5 billion) that Samsung E&A has surpassed USD 10 billion in overseas orders. Samsung E&A’s high operating profit margin also differentiates it from other construction companies in terms of performance. As of the third quarter of 2024, Samsung E&A's cumulative operating profit margin stood at 9.1%, significantly higher than the average operating profit margin of 2.76% among the top 10 construction companies. Driven by high profitability, Samsung E&A’s retained earnings rose to KRW 2.0372 trillion (approximately USD 1.47 billion) on a standalone basis as of the third quarter of 2024. This represents a 58% increase from KRW 1.2932 trillion (approximately USD 936 million) at the end of December 2023. With ample cash for dividends, the securities industry has called for Samsung E&A to expand its shareholder return policies to enhance corporate value. In a report published on January 7, Jang Moon-jun, a researcher at KB Securities, cited reasons for the undervaluation of Samsung E&A’s value, including uncertainties in the project market due to falling oil prices, concerns about reduced investments from affiliates, and insufficient decisions regarding the resumption of shareholder returns. Jang noted, "Investors are waiting for the company’s position or response strategies regarding these three uncertainties," adding, "The company’s response to these concerns could serve as a strong catalyst for a rebound." However, many believe it will be challenging for Samsung E&A to shift away from its no-dividend pre-investment policy. In its corporate governance report disclosed last year, Samsung E&A stated that "improving financial structure and investing in new businesses take precedence over dividends." Despite meeting legal requirements for dividend payments at the end of 2020, Samsung E&A explained that it refrained from paying dividends to achieve a sound financial structure through internal reserves and to invest in future growth. Regarding future shareholder return policies, the company added, "We will decide on dividend payments comprehensively, considering investments for future growth and achieving a sound financial structure through internal reserves. We will continue to review and guide rational plans to strengthen shareholder rights." Namkoong’s focus on investing in future growth areas, such as eco-friendly energy businesses, also tempers expectations for dividend resumption. Namkoong announced plans to allocate KRW 200 billion (approximately USD 144 million) out of a total KRW 370 billion (approximately USD 267 million) investment budget for 2024 to the energy transition sector. He also set a goal of increasing the share of orders in the energy transition sector to 16% by 2025, establishing it as a core business alongside chemical and non-chemical projects. Namkoong’s efforts have already translated into contract achievements. At the end of December 2024, Samsung E&A received a Letter of Award (LOA) for the Phoenix Bio Refinery Project in Malaysia. The main contract is expected to be finalized by January 2025. This project involves constructing facilities to produce bio-naphtha, a key raw material for various chemical fibers and plastics, as well as sustainable aviation fuel (SAF), which replaces petroleum. Additionally, Samsung E&A has a pipeline of six energy transition projects for 2025, including Saudi Arabia's SAN-6 Blue Ammonia Project, with a total estimated value of USD 6.7 billion (approximately KRW 10 trillion). Namkoong also demonstrated a focus on financial stability by appointing Vice President Yoon Hyung-sik, a finance expert, as the head of the Management Support Office and concurrently the Chief Financial Officer. Previously, the Management Support Office was led by Vice President Kim Dae-won, a non-financial expert who had worked for 30 years at Samsung E&A, handling on-site operations in plants, environment, and energy sectors. In contrast, Yoon has a background in finance and planning, having served as a manager and team leader in the Management Planning Team. Over the past two years, he worked on the Samsung C&T EPC Competitiveness Enhancement Task Force, which oversees strategy, personnel, and business coordination for Samsung Heavy Industries, Samsung E&A, and the construction division of Samsung C&T. Namkoong’s personnel decision for the Management Support Office reflects an intention to further strengthen financial stability during his final year in office. When asked about the possibility of resuming dividends in 2025, a Samsung E&A official told Business Post in a phone call, "We are likely to maintain our existing policy on dividends, but given our strong performance, we are positively listening to shareholders’ opinions." #SamsungE&A #NamkoongHong #FinancialStability #DividendPolicy #EnergyTransition #EcoFriendlyInvestment #ConstructionIndustry #RetainedEarnings #SaudiArabiaProject #CorporateGovernance
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- Shinhan Bank's Jung Sang-hyuk Emphasizes 'Qualitative Growth' Amid Hana and KB's Fierce Pursuit
- Jung Sang-hyuk, President of Shinhan Bank, faces fierce competition from rivals in the new year. Shinhan Bank is expected to maintain its position as the top bank in net profit among domestic banks due to its strong loan growth last year. However, this year, the bank has shifted its strategy to focus on efficient capital utilization, emphasizing capital ratio management over external growth in line with its value-up plan. On the other hand, Hana Bank has set a goal to reclaim its “leading bank” status by appointing a sales expert as its new president. Meanwhile, KB Kookmin Bank, a traditional powerhouse, is the only one of the four major banks not heavily restricted by financial authorities’ loan regulations, setting the stage for intense competition in the banking sector this year. On January 7, banking industry insiders suggested that changes in strategies such as value-up plans could reshape the rankings in net profits among banks this year. Shinhan Bank, which ranked first in net profit among commercial banks last year, hinted at strategic adjustments. As of the third quarter of last year, Shinhan Bank was the only commercial bank to achieve a net profit of over KRW 3 trillion (approximately USD 2.17 billion). With a KRW 300 billion (USD 217 million) lead over second-place Hana Bank, it seemed likely to secure the top spot in net profit for 2024. At a management strategy meeting on January 3, Jung Sang-hyuk emphasized, “To achieve the goal of corporate value-up, qualitative growth through efficient resource utilization is as important as asset growth, which has been our strength so far.” Jung's message contrasts sharply with his focus last year, when he emphasized "customer engagement" in his New Year’s address and prioritized strengthening sales capabilities in an organizational reshuffle. As a result, Shinhan Bank expanded its loans significantly starting early last year, outpacing its competitors among the four major banks (KB, Shinhan, Hana, Woori). By the end of September 2023, Shinhan Bank’s Korean won loan balance had grown by 10.2% compared to the end of 2022, the only double-digit growth rate among the four banks. Jung appears to believe that it is time to pause and consolidate, citing the focus on efficient capital use emphasized by major financial holding companies under the “value-up” theme last year. While increasing loans boosts profit bases, it also raises risk-weighted assets (RWA), which are part of the denominator in calculating the common equity tier 1 (CET1) ratio, potentially straining financial soundness. Additionally, the burden of provisioning for non-performing loans means that loan growth does not necessarily lead to increased corporate value. In his New Year’s address, Jung stated, “The demand for enhancing corporate value is growing stronger amid the ‘corporate value-up’ movement to modernize capital markets. Financial institutions are increasingly expected to fulfill their social responsibilities, including ESG management, inclusive finance, and internal controls. To sustain meaningful growth, a shift in our growth approach is urgently needed.” However, industry observers suggest that Jung's strategic adjustment may invite fierce challenges from competitors. While Shinhan Bank is pausing to consolidate, rivals are making bold moves to claim the top spot in net profit. Hana Bank is a prime example. Hana Bank has placed Lee Ho-sung, a sales expert and former CEO of Hana Card, at its helm, succeeding financial expert Lee Seung-yeol. This marks a strategic shift toward aggressive performance growth. Hana Bank has been gaining prominence in recent years. Since the establishment of the four-major-bank structure in Korea, the “leading bank” competition has primarily been between KB and Shinhan. However, Hana Bank broke this dominance by ranking first in net profit in 2022 and 2023. In his inaugural address on January 2, Lee Ho-sung stated, “Let us restore Hana’s unique customer-focused sales culture DNA” and “join me on the journey to becoming the leading bank.” Lee is known for emphasizing sales even during challenging times, such as when high interest rates affected the industry during his tenure at Hana Card. His leadership is credited with external growth through initiatives like the success of “Travelog.” From Shinhan Bank’s perspective, KB Kookmin Bank remains a strong contender in the competition. Although KB Kookmin Bank ranked third in net profit behind Shinhan and Hana Banks as of September 2023, its relatively higher inclusion of costs related to equity-linked securities (ELS) is seen as evidence of its resilience. Notably, KB Kookmin Bank was the only one among the four major banks that did not exceed the loan targets submitted to financial authorities last year. As a result, it avoids penalties this year, giving it more room to pursue aggressive sales strategies. The market expects intense competition in the first quarter of the year, as early loan growth significantly impacts annual net profit. A representative from a commercial bank stated, “Early-year sales play a critical role in annual performance, so fierce competition is anticipated at the start of the year. However, this year brings additional factors to consider, such as household loan regulations and value-up initiatives.” #ShinhanBank #JungSanghyuk #HanaBank #LeeHosung #KookminBank #bankingcompetition #valueupstrategy #loanmanagement #financialperformance #bankingindustry
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- Suh Kyung-bae Makes CES Debut, AmorePacific Enters the 'Home Beauty Device Battle'
- Suh Kyung-bae, the Chairman and CEO of AmorePacific Group, is officially entering the home beauty device market. AmorePacific will unveil a new product from its home beauty device brand at CES 2025, the world’s largest consumer electronics and IT exhibition. Suh's attendance at CES, where AmorePacific will showcase its new home beauty device brand, carries significant meaning as this is his first visit to the event. Industry insiders suggest that Suh is set to actively target the home beauty device market this year to enhance AmorePacific's global performance. On January 7, the retail industry projected that AmorePacific would focus more on market diversification and product diversification strategies this year. AmorePacific will present the "Skin Light Therapy 3S," a new product from its MakeON brand, equipped with generative AI technology developed in collaboration with Samsung Electronics, at CES 2025 in Las Vegas, USA. This product offers personalized skincare functions through a dedicated application and will officially launch in March. CES is a global technology exhibition where advanced technologies and innovative companies showcase the latest trends. AmorePacific’s decision to unveil a new beauty device at this iconic event signifies its strong commitment to establishing a presence in the home beauty device market. Suh’s participation is also viewed as a clear demonstration of AmorePacific's intent to make a substantial bet on the beauty device market. Although the company has won CES Innovation Awards for six consecutive years, this marks the first time Suh has personally attended the exhibition. Suh is reportedly planning to visit the "Wannabeauty AI" exhibition booth, which won an Innovation Award, as well as the Samsung Electronics collaboration booth. He is expected to observe local businesses’ reactions directly to help refine the direction of AmorePacific's beauty device business. AmorePacific has been operating a beauty device brand for over a decade, yet public recognition remains low. The brand in question is MakeON. MakeON was launched by AmorePacific in 2014 to target the home beauty market. However, contrary to expectations, it remains a relatively unfamiliar name to consumers. AmorePacific’s primary focus on cosmetics has hindered its performance in the beauty device market. Compared to the market dominance of companies like APR, AmorePacific’s presence in the beauty device sector has been relatively limited. Industry insiders believe that AmorePacific's decision to strengthen its position in the beauty device market stems from this context. AmorePacific is expanding into the home beauty device market as part of its strategy to diversify its market reach and improve profitability. By broadening its product portfolio to include home beauty devices alongside cosmetics, the company aims to find new growth drivers. Beauty devices are generally higher-priced than cosmetics, making them more efficient for driving growth and profitability, according to industry sources. Additionally, the global home beauty device market is still in its early stages, leaving substantial growth potential. According to Samil PwC Management Research Institute, the home beauty device market is expected to grow at an average annual rate of 26.1%, reaching USD 89.8 billion (approximately KRW 129 trillion) by 2030. This indicates the rapid onset of the home beauty era. This move aligns with Suh’s consistent emphasis on a "global rebalancing strategy." At the 79th anniversary of AmorePacific Group in September last year, Suh emphasized the importance of market diversification, stating, "We must focus on expanding our market through global rebalancing." Analysts suggest that reducing dependency on the Chinese market and identifying new growth drivers in Western markets is essential. In this context, Suh appears to be focusing on the beauty device business as a breakthrough for expanding into overseas markets. A prominent example is APR. APR's explosive growth in the US market has been largely attributed to its beauty device business. By simultaneously targeting the beauty device and cosmetics markets, APR has created strong synergies, expanding its customer base by cross-selling devices and cosmetics. This strategy has allowed APR to achieve significant annual growth in sales. Particularly, APR's US sales recorded triple-digit growth rates for five consecutive quarters starting from the third quarter of 2023, demonstrating remarkable global market performance. While APR has established itself as the leader in Korea's beauty device market, many believe that international competition has yet to fully take off. Analysts suggest that there is still an opportunity to gain a first-mover advantage before the global home beauty market becomes more competitive. There is also a view that AmorePacific has sufficient competitiveness in beauty device development, leveraging its long-standing research and technological expertise as a leading Korean beauty company. AmorePacific has focused on market diversification to overcome sluggish performance. Efforts have particularly been made to reduce dependency on China and expand its presence in Western markets. As a result, the company achieved triple-digit growth in operating profit in the third quarter last year, aided by the performance of its subsidiary COSRX, and significantly enhanced brand recognition in Western markets. However, industry experts suggest that the path to full recovery remains challenging, primarily due to delays in the economic recovery of its key market, China. Despite achieving significant profitability improvements in the third quarter of last year, AmorePacific's current performance remains below the level it achieved in 2021, when it was firmly established as Korea's leading beauty company. According to FnGuide, a listed company analysis agency, AmorePacific's consolidated revenue for 2024 is estimated at KRW 3.8352 trillion (USD 2.766 billion), and operating profit is projected at KRW 223.3 billion (USD 161.1 million). This represents declines of 21.1% in revenue and 35.0% in operating profit compared to 2021. An AmorePacific representative stated, "Since the launch of the MakeON brand, we have continued to release and sell new products. With the unveiling of our new product at CES, we will continue to develop innovative products in the future." #AmorePacific #SuhKyungbae #homebeautydevices #CES2025 #MakeON #SkinLightTherapy3S #SamsungElectronics #globalexpansion #beautyinnovation #profitability
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- Han Jong-hee Unveils Samsung's 'Home AI' Vision: "Delivering Personalized Customer Experiences"
- Han Jong-hee, the Vice Chairman and CEO, as well as the head of Samsung Electronics' DX Division, unveiled the vision for "Home AI" that prioritizes understanding users and delivering joy. On January 6 (local time), Samsung Electronics held the "Samsung Press Conference" at the Mandalay Bay Hotel in Las Vegas, ahead of the opening of CES 2025, the world’s largest electronics exhibition. The event was attended by over 1,300 participants. Han introduced the vision for "Home AI" under the theme "AI for All: Expanding Experiences and Innovation," highlighting ultra-personalized solutions tailored to individual users. He stated, "Samsung's 'Home AI' offers ultra-personalized experiences based on a deep understanding of users, delivering convenience and joy to their daily lives. We aim to extend Samsung’s unique 'Home AI' innovation beyond homes to industries and society, continuing our leadership in innovation for the next 100 years." Home AI recognizes and understands various situations and patterns, including daily routines, work, and leisure activities of family members. It also utilizes spatial AI to analyze objects and spaces within a home, providing users with highly advanced solutions. By applying the space-AI-based "SmartThings Ambient Sensing," connected devices can detect and analyze not only users' device usage patterns but also movements and surrounding sounds. This allows for summaries of household information, notifications for situations requiring action, and suggestions for device control tailored to the situation. Samsung introduced a range of new "Home AI" products. The "Galaxy Book5 Pro" and "Book360," featuring both "Galaxy AI" and Microsoft's "Copilot+ PC" functionality, were unveiled, offering an enhanced AI experience. "Samsung Health," designed to help families manage their health more effectively, was also introduced. Health metrics collected through personal wearable devices such as the Galaxy Ring and Galaxy Watch are analyzed using AI technology. This provides personalized insights on sleep and diet management, helping users take better care of their health. Samsung also expanded and strengthened its security solution "Samsung Knox" to ensure comprehensive protection of personal data in the era of hyperconnectivity and hyper-personalization. Using blockchain technology, the "Samsung Knox Matrix" protects homes, personal data, and interconnected devices from security threats. It has been expanded to cover not only mobile and TV devices but also all home appliances equipped with Wi-Fi. "Samsung Knox Vault," which stores sensitive user information such as passwords and biometric data in a separate security chip for enhanced protection, is now being applied beyond mobile and TV devices to include new Family Hub appliances. #SamsungElectronics #HanJongHee #HomeAI #CES2025 #SmartThings #GalaxyBook5Pro #SamsungHealth #SamsungKnox #AItechnology #innovation
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- Yim Jong-ryong Strengthens Grip on Woori Financial, 'One-Top Leadership' Faces New Challenges
- Yim Jong-ryong, the Chairman of Woori Financial Group, faces another test of his "one-top" leadership in the new year. To resolve the long-standing factional conflicts perceived as a chronic issue, Woori Financial Group integrated the alumni associations of Hanil Bank and Commercial Bank. The heads of key affiliates were also filled with figures less associated with factions, potentially strengthening Chairman Yim’s organizational control. However, as many of the appointees share connections with Yim, he now bears the responsibility to deliver substantial reforms with his increased influence. On January 6, financial industry opinions suggested that Yim's grip on Woori Financial Group has significantly strengthened following the year-end personnel changes. On January 3, Woori Financial Group announced the integration of the alumni associations of Hanil Bank and Commercial Bank as part of its effort to resolve factional conflicts. This marks a historic step, 26 years after the two banks merged to form Hanbit Bank in 1999. The group anticipates that the integration will lead to greater internal cohesion. Woori Bank, rooted in the 1999 merger of Hanil Bank and Commercial Bank, has been assessed as having persistent factional conflicts between employees from the two banks. Even Chairman Yim pointed out this issue during a parliamentary audit in October 2022, describing it as a "shadow culture." With the resolution of these conflicts, Yim’s influence over the group is expected to increase further. Despite the merger occurring more than two decades ago, the leadership still includes figures from the pre-merger era, meaning Yim could not ignore the effects of their backgrounds. However, most of the group’s current workforce consists of employees who joined after the merger. Factional affiliations appear to have diminished among the executives of Woori Financial Group’s three key subsidiaries. Jin Sung-won, the new CEO of Woori Card, was appointed from outside the group, having built his career at Samsung Card, Hyundai Card, and Lotte Card. This marks the first break from the tradition of appointing former Woori Bank executives to the position. Ki Dong-ho, a former vice president at Woori Bank, was named CEO of Woori Financial Capital. Ki, who began his career at Peace Bank rather than Hanil or Commercial Bank, is considered free from factional influences within Woori Financial Group. At Woori Bank, Jeong Jin-wan, a Hanil Bank alumnus, was appointed CEO, continuing the alternation between Hanil and Commercial Bank alumni. However, Jeong, who joined Hanil Bank in 1995 and experienced the merger only two and a half years later, is relatively removed from factional conflicts. Jeong himself commented, “Although I am from Hanil Bank, the merger happened just two and a half years after I joined, so I’m not familiar with factional conflicts.” Yim’s emphasis on breaking down factions and appointing individuals with whom he has connections is also noteworthy. During his time as an economic counselor at the Korean Embassy in the UK from 2004 to 2006, Yim built relationships with Jeong Jin-wan, the new CEO of Woori Bank, and Nam Gi-cheon, CEO of Woori Investment & Securities, who was brought into Woori Financial Group after Yim’s appointment. Yim, an economics graduate of Yonsei University, also shares ties with executives such as CFO Lee Sung-wook, Woori Financial Group’s longest-serving executive, and Kim Gun-ho, the new CEO of Woori F&I, who was promoted this year. Sung Dae-gyu, the leader of the acquisition task force for Tongyang and ABL Life Insurance, is a former civil servant and a junior colleague of Yim’s from the civil service exam. Some market observers speculate that the Hanil-Commercial factional dynamic might simply be replaced by a new faction aligned with Chairman Yim. While Yim’s organizational control has increased under the pretext of resolving factional conflicts, it needs to translate into tangible reforms. Woori Financial Group operates under Yim’s "one-top" leadership structure. Unlike other major financial groups, where vice chairmen or key subsidiary heads participate on the board, Yim is currently the only executive director on the Woori Financial Holdings board. Yim has pledged to drive change with perseverance in the new year. In his New Year’s address, he stated, “We cannot stand still on the edge of the cliff. I fully understand that corporate culture cannot change overnight, but I will not give up and will push forward with consistency and a long-term perspective.” #YimJongryong #WooriFinancialGroup #factionalconflict #leadership #HanilBank #CommercialBank #organizationalreform #one-topmanagement #financialindustry #Koreanbusiness
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- Cho Wook-je's Push for Global Top 50 Pharma: Leclaza's U.S. Market Success Holds the Key
- Cho Wook-je, the President and CEO of Yuhan Corporation, is nearing the deadline for his ambitious goal set in 2021 of making the company one of the world’s top 50 pharmaceutical firms by revenue. To achieve this, Yuhan would need to more than double its 2024 revenue, with the success of Leclaza, a treatment for non-small cell lung cancer (NSCLC) now being actively sold in the U.S., playing a pivotal role in meeting this target. According to pharmaceutical industry sources on January 6, Yuhan may take longer than anticipated to establish Leclaza’s position in the U.S. market. Johnson & Johnson (J&J), which licenses the technology for Leclaza, faced a setback in its efforts to commercialize a subcutaneous (SC) version of Rybrevant, a bispecific anti-cancer antibody used in combination therapy with Leclaza. In December 2025, J&J received a Complete Response Letter (CRL) from the U.S. Food and Drug Administration (FDA) for the SC version of Rybrevant, delaying its planned commercialization. This impacted the rollout of the combination therapy of Rybrevant SC and Leclaza, which was intended to target the U.S. NSCLC treatment market. Previously, in August 2024, the FDA had approved Rybrevant and Leclaza as a first-line treatment for NSCLC patients with EGFR exon 19 deletions or exon 21 L858R substitution mutations. While Leclaza is already being sold in combination with the intravenous (IV) version of Rybrevant, the delay in SC approval may prolong Leclaza’s full establishment in the U.S. market due to the greater convenience of SC formulations. However, since the FDA has not requested additional clinical trials, industry experts estimate that addressing the FDA’s concerns and resubmitting documentation could take approximately six months. For CEO Cho, obtaining swift FDA approval for Rybrevant SC is crucial for Leclaza’s success in the U.S. market. Leclaza is central to Yuhan’s goal of becoming a top 50 global pharmaceutical company by 2026, a target Cho announced upon his appointment in 2021. In his New Year’s address on January 2, 2025, Cho emphasized, “This year, as we approach our 100th anniversary, we will achieve the goals set for each business unit with a strong sense of responsibility and differentiated strategies to enter the global top 50 pharmaceutical companies.” Pharmaceutical companies in the global top 50 generate approximately KRW 4 trillion (approximately USD 2.88 billion) in annual revenue. To achieve this, Yuhan would need to nearly double its revenue in the next two years. According to FNGuide, Yuhan is estimated to have achieved KRW 2.073 trillion (approximately USD 1.49 billion) in revenue and KRW 98.8 billion (approximately USD 71.3 million) in operating profit in 2025. This represents an 11.51% increase in revenue and a 74.07% increase in operating profit compared to 2024. Yuhan’s 2025 business report shows that 63.7% of its revenue in the first three quarters came from its domestic pharmaceutical division. To achieve significant revenue growth, Yuhan is focusing on royalties from Leclaza’s international sales and out-licensing deals for other drug candidates. In December 2018, Yuhan licensed Leclaza to J&J subsidiary Janssen under a deal worth up to USD 1.255 billion (approximately KRW 1.8454 trillion). Although the agreement value was later adjusted to USD 950 million (approximately KRW 1.3969 trillion) due to the termination of certain research projects, Yuhan remains eligible to receive up to USD 740 million (approximately KRW 1.088 trillion) in milestones tied to further development and sales. With additional royalties from Leclaza’s sales, Yuhan could still achieve its goal of becoming a top 50 pharmaceutical company. J&J has projected annual revenue of at least USD 5 billion (approximately KRW 7.3535 trillion) from the combination therapy of Rybrevant SC and Leclaza. Assuming a typical royalty rate of 10–15%, Yuhan could earn USD 500–750 million (approximately KRW 720 billion–1 trillion). If Leclaza quickly secures FDA approval for the combination therapy with Rybrevant SC, Yuhan could potentially reach KRW 4 trillion (approximately USD 2.88 billion) in annual revenue by 2026, achieving its goal of entering the global top 50 pharmaceutical companies. An industry insider commented, “The FDA’s CRL appears to concern manufacturing facilities rather than major issues. Many global pharmaceutical companies have received similar requests during the approval process for SC formulations. It seems unlikely that the approval will fail once these concerns are addressed.” #ChoWookje #YuhanCorporation #Leclaza #Rybrevant #pharmaceuticalindustry #FDAapproval #JohnsonAndJohnson #top50pharma #globalbusiness #pharmaceuticalgrowth
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- Hannam District 4: A Crucial Test for Samsung C&T’s Housing Expansion, Oh Se-chul Intensifies Bid Efforts
- Oh Se-chul, the President and CEO of Samsung C&T Corporation’s Construction Division, has been busy as the competition between Samsung C&T and Hyundai Engineering & Construction (Hyundai E&C) for the redevelopment project of Hannam District 4 intensifies. As Oh focuses on expanding Samsung C&T’s housing business, particularly around the Yongsan area, the outcome of the Hannam District 4 redevelopment project could become a significant turning point for Samsung C&T. According to construction industry insiders on January 6, the competition for Hannam District 4 has reached a fever pitch, with CEOs from both Samsung C&T and Hyundai E&C actively engaging in final pushes on the ground. Hyundai E&C CEO Lee Han-woo was the first to visit the site, attending a joint briefing session for the project’s union members on January 4, the day after his official inauguration. He highlighted Hyundai E&C’s strengths, including its six-year streak as the top contractor in Korea’s urban redevelopment sector and its premium apartment brand, The H. Lee stated, “We prioritize customer trust and reputation over profitability. If entrusted with this project, we will deliver the best landmark development.” Samsung C&T was represented at the briefing by Vice President Kim Sang-kook, head of the company’s Housing Development Business Unit. However, reports suggest that CEO Oh Se-chul is also considering attending future sessions. A Samsung C&T representative stated, “No specific visit schedule has been confirmed yet, but there are two more joint briefings on January 11 and 18, so it is possible that CEO Oh will participate.” In November 2024, after the face-off between Samsung C&T and Hyundai E&C for Hannam District 4 was confirmed, Oh personally visited the site. He encouraged his team, saying, “Let’s make Hannam District 4 a landmark and give our best to win this project.” Hannam District 4 involves redeveloping the Bogwang-dong area in Yongsan-gu, Seoul, into 51 buildings with 2,331 apartment units. Known for its prime location and high volume of general sale units, Hannam District 4 is considered the most economically viable among the Hannam New Town redevelopment areas. Amidst heightened uncertainty in the international construction market due to factors such as political turmoil, the U.S. Trump administration’s policies, and persistent high exchange rates, the project’s profitability and branding value have increased significantly. Kim In-man, head of Kim In-man Real Estate Economics Research Institute, stated on YTN Radio on December 23, 2024, “High-end apartments have an inherent advertising effect without requiring TV commercials. For affluent areas like Gangnam or Yongsan, construction companies are fighting tooth and nail. Hannam District 4 is the crown jewel of Korea’s construction industry.” The competition has garnered attention as it marks the first head-to-head battle in 17 years between Samsung C&T, ranked first in construction capability evaluation for 11 consecutive years, and Hyundai E&C, ranked first in urban redevelopment for six years. Adding intrigue, both CEOs, Oh Se-chul and Lee Han-woo, are alumni of Seoul National University’s Department of Architectural Engineering. However, some worry that the fierce competition, driven by extraordinary offers from both companies, could reduce the project’s profitability and lead to a “winner’s curse.” Hyundai E&C proposed a construction cost of KRW 1.4855 trillion (approximately USD 1.07 billion), KRW 84 billion less than Samsung C&T’s bid of KRW 1.5695 trillion (approximately USD 1.14 billion). This is even below the union’s estimated construction cost of KRW 1.5723 trillion (approximately USD 1.14 billion). Samsung C&T has offered to absorb up to KRW 314 billion (approximately USD 228 million) in potential cost increases due to inflation, calculated based on recent construction cost indices. For Oh Se-chul, the outcome of the Hannam District 4 competition goes beyond profitability or pride; it is seen as a gauge of Samsung C&T’s future direction under his leadership. Oh has been strengthening the company’s housing business to counter the construction market downturn, including relaunching the Raemian brand after 14 years. Samsung C&T is also pushing to establish a “Raemian Town” centered around Yongsan Park, with existing developments such as Raemian Chelitus to the south and Yongsan The Central to the west. In October 2024, it was selected as the contractor for the Namyeong District 2 redevelopment project north of Yongsan Park, where it plans to build Raemian Superrus. The proposed Raemian Glow Hills Hannam for Hannam District 4 would not only mark the debut of Raemian in Hannam-dong but also complete Samsung C&T’s vision for the area. Oh’s focus on Hannam District 4 is also due to its potential impact on securing future redevelopment projects, including Apgujeong District 3. The selection processes for key redevelopment areas in Seoul, such as Seongsu District 4 and Yeouido, are scheduled for the first half of 2025. Apgujeong District 3, in particular, is expected to be a marquee project, with plans for a 70-story, 5,175-unit apartment complex and an estimated budget of KRW 7 trillion (approximately USD 5.1 billion). The site has drawn interest from other major players, including HDC Hyundai Development Company, alongside Samsung C&T and Hyundai E&C. #OhSechul #SamsungC&T #HyundaiE&C #Hannam4District #redevelopment #constructioncompetition #Raemian #urbanrenewal #landmarkprojects #Koreanbusiness
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- TSMC's 2nm Price Hike: Apple, NVIDIA to Defect? Jun Young-hyun’s Samsung Foundry Eyes Opportunity
- Taiwan's TSMC has significantly raised the price of wafers for its advanced 2nm foundry process, set to begin operations in the second half of this year, by approximately 50% compared to its 3nm process. This has led to speculation that major customers such as Apple, NVIDIA, and Qualcomm may consider alternative options. Apple, reportedly the first customer for TSMC's 2nm process, has postponed using this technology for its mobile processors (AP) by a year. NVIDIA and Qualcomm are also reportedly exploring the possibility of outsourcing some AI semiconductors and AP production to Samsung Electronics’ foundry. This development raises the likelihood of Vice Chairman Jun Young-hyun, Head of Samsung Electronics’ Device Solutions (DS) Division, attracting major customers to the 2nm foundry process, potentially giving Samsung an opportunity to narrow the gap with TSMC. According to semiconductor industry insiders on January 3, TSMC, which holds a dominant 60% share in the global semiconductor foundry market, has caused major customers to consider Samsung Electronics’ 2nm foundry as an alternative due to significant price increases for its 2nm process. Citing Taiwanese media, U.S.-based IT publication WCCF Tech reported that Apple planned to use TSMC’s 2nm process for its "A19" application processor (AP) in the iPhone 17 series, set for release in Q3 2024. However, Apple recently postponed this plan by a year. The A19 chip is now expected to be produced using TSMC’s 3nm process, while the 2nm process will likely be applied to APs for the iPhone 18 series in 2025. Apple had reserved a significant portion of 2nm AP production with TSMC. However, the cancellation of this production could deal a substantial blow to TSMC. In addition to Apple, other major customers are also showing signs of withdrawing from TSMC’s 2nm foundry. According to Taiwan's Commercial Times, Qualcomm and NVIDIA are reportedly discussing outsourcing some 2nm production to Samsung Electronics’ foundry. Qualcomm is considering using Samsung’s foundry for the next-generation version of its "Snapdragon Elite" AP, while NVIDIA is evaluating outsourcing parts of its next AI semiconductor, "Rubin," to Samsung. The primary reason for the shift is TSMC’s price increase. TSMC has reportedly set the price of silicon wafers for its 2nm process at USD 30,000 (approximately KRW 44 million), 50% higher than the USD 20,000 per wafer for its 3nm process. Wafers for TSMC’s 4nm and 5nm processes were priced at USD 15,000 per wafer. A single 12-inch silicon wafer can produce 300–400 chips. TSMC’s sharp price hike for the 2nm process is attributed to significant R&D expenses, labor costs, and production facility investments. Additionally, yield issues (the proportion of functional chips produced) are believed to have influenced the price increase. TSMC’s 2nm process, set to commence full operations at its Baoshan facility in Hsinchu in the second half of this year, reportedly has a yield of around 60%, below the company’s internal standards. If four out of every ten wafers need to be discarded due to defects, raising wafer prices becomes necessary to maintain profitability. TSMC’s price hike and potential customer attrition present an opportunity for Samsung Electronics’ foundry to rebound. Having lost most major customers for its 3nm process to TSMC, Samsung’s foundry business has faced deficits but is now focusing on its 2nm process. Samsung’s global foundry market share dropped below 10% to 9.3% as of Q3 2023. Initial reports suggest Samsung’s 2nm process yield is better than that of its 3nm process. The company is currently conducting production tests with some key customers and plans to start pilot production in the first half of 2024. Samsung’s 2nm foundry has already secured customers such as Japan’s PFN for AI semiconductor designs and U.S.-based Ambarella for autonomous vehicle chips. If it can attract additional major customers like Apple, NVIDIA, and Qualcomm, Samsung’s foundry business could be poised for a revival. However, Samsung will need to quickly improve its yield and offer prices lower than TSMC’s to secure these customers. The company plans to begin operating its 2nm foundry process in the second half of 2024. #TSMC #SamsungElectronics #2nmFoundry #Apple #NVIDIA #Qualcomm #SemiconductorIndustry #WaferPricing #SemiconductorManufacturing #JunYoungHyun
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- SPC Group Laying Groundwork for Spin-Off, Heo Jin-soo’s Bold Expansion into U.S. Market
- Heo Jin-soo, CEO of Paris Croissant, is aggressively expanding globally by increasing overseas stores to 600, focusing on the North American market. As Heo Young-in, Chairman of SPC Group, steps back from active management amid various controversies, speculation is growing about a transition to a third-generation leadership structure within the company. There is also speculation that CEO Heo Jin-soo's expansion is not merely about increasing store numbers but may be part of a strategy to prepare for a potential spin-off of the bakery division. Based on SPC Group’s recent activities as of January 3, the global expansion of its bakery division, led by Paris Baguette, remains the group’s top priority for this year. SPC Group recently announced plans to establish its largest overseas baking plant in Texas, USA. The plant will involve an investment of USD 160 million (approximately KRW 236.3 billion) and will span 150,000 square meters (approximately 45,000 pyeong), making it the largest production facility SPC operates abroad. This reflects CEO Heo Jin-soo’s strong commitment to expanding Paris Baguette’s market share in North America. According to SPC Group, the new Texas bakery plant will serve as a supply hub for bakery products in the United States and Canada and future markets in Central and South America. This project is more than a production facility; it symbolizes CEO Heo Jin-soo’s global vision. Since 2023, Heo Jin-soo has been accelerating store expansion, primarily in North America. Paris Baguette began its overseas operations in 2004 and now operates over 600 stores in 11 countries, including the United States, France, the United Kingdom, and Canada. In North America alone, there are about 200 stores—a milestone achieved in less than two years since opening its 100th North American store in New Jersey in January 2023. SPC Group aims to use the Texas plant as a foundation to expand Paris Baguette stores in North America to 1,000 by 2030. The group is also expanding its footprint in Southeast Asia and other regions. Recently, SPC Group reorganized its global business structure to strengthen its overseas operations, establishing the AMEA (Asia-Pacific, Middle East, Africa) headquarters within Paris Baguette’s global division. In October 2023, SPC Group signed agreements to enter three Southeast Asian markets: Thailand, Brunei, and Laos. Additionally, it is nearing the completion of a global halal-certified plant in Johor Bahru, Malaysia. Some analysts suggest that CEO Heo Jin-soo’s rapid expansion of Paris Baguette’s global presence is part of a broader strategy to divide the group’s businesses between him and his younger brother, Heo Hee-soo, Vice President of SPC Group. Amid Chairman Heo Young-in’s recent withdrawal from the management forefront due to controversies, industry insiders speculate that SPC Group is preparing for a third-generation leadership transition. In this context, Heo Jin-soo’s focus on SPC Group’s core bakery business could be a prelude to a division of businesses between the siblings. Industry experts predict that the spin-off could see CEO Heo Jin-soo leading the bakery businesses, including Paris Croissant and SPC Samlip, while Vice President Heo Hee-soo takes charge of the foodservice businesses, such as BR Korea, and IT subsidiary Sectenine. The basis for this speculation lies in the group’s shareholding structure. CEO Heo Jin-soo holds relatively stronger control over the bakery division. As of December 31, 2023, Heo Jin-soo was the second-largest shareholder of Paris Croissant, SPC Group’s de facto holding company, with a 20.33% stake, while Heo Hee-soo was the third-largest shareholder with 12.82%. A similar trend appears in SPC Samlip, the group’s only listed company. As of September 30, 2024, Paris Croissant held a 40.66% stake in SPC Samlip, while Heo Jin-soo and Heo Hee-soo owned 16.31% and 11.94%, respectively. The relocation of some SPC Group affiliates also adds weight to the spin-off theory. In 2023, BR Korea’s Baskin-Robbins division and Sectenine moved from the group’s main office in Yangjae-dong, Seoul, to the new SPC 2023 building in Dogok-dong, Seoul. Vice President Heo Hee-soo, who heads BR Korea and Sectenine, has essentially separated his business divisions physically from the group’s headquarters. SPC Group is known for not adhering strictly to the principle of primogeniture. This suggests the possibility of CEO Heo Jin-soo and Vice President Heo Hee-soo establishing independent management systems through a spin-off. This approach aligns with the precedent set by the group’s late founder, Honorary Chairman Heo Chang-sung, who divided Samlip Foods and Shany between his sons Heo Young-sun and Heo Young-in. Currently, Chairman Heo Young-in owns over 60% of Paris Croissant. The sibling management structure will become clearer depending on how this stake is transferred. However, no official announcement has been made regarding the succession plan or the spin-off direction. #HeoJinSoo #ParisBaguette #SPCGroup #GlobalExpansion #BakeryBusiness #HeoHeeSoo #TexasBakeryPlant #BusinessSpinOff #NorthAmericaMarket #ThirdGenerationLeadership
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- DL E&C’s Strong Reserves and Order Book Fuel Park Sang-shin’s Profit Confidence
- Park Sang-shin, CEO of DL E&C, has expressed confidence in improving key management indicators while maintaining a conservative management policy. Observers believe that DL E&C’s strong cash reserves and robust order book will provide a solid foundation for achieving its first upward trajectory in operating profit since the company’s launch. According to DL E&C officials on January 3, the company failed to meet most of its management targets last year. For 2023, DL E&C set consolidated management targets of KRW 10.3 trillion (approximately USD 7.43 billion) in new orders, KRW 8.6 trillion (approximately USD 6.21 billion) in revenue, KRW 290 billion (approximately USD 209.2 million) in operating profit, and 17,162 housing units to begin construction. DL E&C reportedly fell short of its new order target by approximately KRW 1 trillion (USD 721.8 million). From January to September 2023, DL E&C secured KRW 5.9716 trillion (approximately USD 4.31 billion) in new orders, achieving only 58% of its target. Including the estimated Q4 orders of KRW 3.2 trillion (approximately USD 2.31 billion), the total would reach KRW 9.1 trillion (approximately USD 6.58 billion). DL E&C is also estimated to have missed its revenue and operating profit targets. According to financial information provider FnGuide, DL E&C’s 2023 consolidated performance is projected at KRW 8.0784 trillion (approximately USD 5.84 billion) in revenue and KRW 273.7 billion (approximately USD 197.4 million) in operating profit. The company also fell short of its housing construction target, completing only 11,900 units. DL E&C accounted for 8,000 units (target: 10,060 units), and its subsidiary DL Construction contributed 3,900 units (target: 7,102 units), both below their goals. The final management targets for 2023 had already been lowered during the Q2 earnings announcement in early August, coinciding with Park’s official appointment as CEO on August 14, after a four-year absence from the company. This adjustment was seen as a measure to alleviate his management burden. Despite the lowered targets, the company failed to meet them. Considering DL E&C’s current situation, last year’s disappointing performance may weigh heavily on Park. Since its reorganization as a separate entity from Daelim Industrial in 2021, DL E&C’s operating profit has been in decline. At the start of 2023, the company ambitiously aimed for KRW 520 billion (approximately USD 374.7 million) in operating profit but ended up lowering its target, ultimately failing to meet even the revised figure. It is rare in the construction industry to publicly disclose targets for new orders, revenue, and operating profit. DL E&C’s consolidated operating profit dropped from KRW 957.3 billion (approximately USD 689.9 million) in 2021 to KRW 497 billion (approximately USD 358.5 million) in 2022, and KRW 330.7 billion (approximately USD 238.5 million) in 2023. However, Park’s New Year message reflects cautious optimism for a rebound in various management indicators this year. In his speech, Park stated, "With confidence in overcoming the current crisis, we have set higher targets for new orders, revenue, operating profit, and cash flow compared to 2024’s performance." DL E&C has not yet finalized precise management targets. Based on past announcement timelines, the company is expected to release specific goals for new orders, revenue, and operating profit along with its preliminary 2024 results in late January or early February. Despite the lack of concrete figures, Park’s decision to set ambitious targets and publicly mention confidence appears to be a calculated response to the internal and external challenges facing the company. Park has prioritized "cash flow" and "risk management" as the core of DL E&C’s management for this year. DL E&C is considered a financially sound construction company with strong cash flow and liquidity. For the first three quarters of 2023, the company recorded an operating cash flow of KRW 216.5 billion (approximately USD 155.9 million), the only construction firm among the top ten (excluding Samsung C&T) to report positive operating cash flow, improving over the previous year. As of Q3 2023, DL E&C’s cash and cash equivalents stood at KRW 1.993 trillion (approximately USD 1.44 billion). The company’s debt ratio of 104.2% and dependency on borrowed capital at 13.2% rank among the best in the construction industry. On December 20, 2023, Jeon Ji-hoon, a researcher at Korea Ratings, stated, "As of the end of September 2023, DL E&C had secured cash assets exceeding its borrowings (KRW 1.3 trillion, or approximately USD 937.2 million). The company is well-positioned to respond to external environmental changes." The company’s focus on high-margin plant projects has strengthened its order book, contributing positively to risk management. DL E&C’s plant order backlog increased from KRW 2.6169 trillion (approximately USD 1.89 billion) at the end of 2021 to KRW 4.5211 trillion (approximately USD 3.26 billion) by Q3 2023. During the same period, the plant division’s cost ratio was 83.2%, significantly lower than the housing division’s 92.8% and the civil engineering division’s 90.2%. Baek Kwang-je, a researcher at Kyobo Securities, stated, "With its industry-leading financial structure, DL E&C is well-positioned for a swift turnaround when market conditions improve. Its increasing proportion of high-margin plant projects is expected to drive future operating profit improvements." #DLE&C #ParkSangShin #ConstructionIndustry #FinancialPerformance #CashFlow #RiskManagement #PlantProjects #OperatingProfit #RevenueTargets #ConstructionSector
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- Hana Financial, a Regular in M&A Deals, Shifts Strategy: Ham Young-joo Focuses on 'Self-Reliance' for Growth
- Ham Young-joo, the CEO and Chairman of Hana Financial Group, appears to be moderating the pace of mergers and acquisitions (M&A), which had been a key part of his strategy to strengthen non-banking operations. Hana Financial Group has consistently appeared as a strong candidate in the M&A market whenever non-banking assets were put up for sale, citing the need to bolster its non-banking sector. However, with challenging internal and external management conditions expected this year, the company seems to be shifting its growth strategy toward self-sufficiency. In his New Year’s address on January 2, Chairman Ham stated, “Mergers and acquisitions should not merely be a means to expand scale but must be a strategic choice to maximize profit through efficient capital allocation. Mergers and acquisitions without a foundation for self-reliance are not only unnecessary but can also impose significant burdens and risks on the organization.” His cautious stance on M&A also reveals a concern that pursuing such strategies could harm Hana Financial Group under current circumstances. Considering Chairman Ham’s previous emphasis on M&A as a way to strengthen the non-banking sector, this marks a significant shift in the group’s growth strategy. In his New Year’s address last year, Ham said, “Collaboration is no longer an option but a necessity,” and emphasized achieving collaboration through various means, including partnerships, investments, and mergers and acquisitions, even with competitors. In his 2023 New Year’s address, he specifically pointed to insurance, card services, and asset management as areas for M&A to expand the scope of operations into new fields. Chairman Ham’s interest in M&A has not been limited to his New Year’s addresses. During the “2024 Korea Employers Federation CEO Jeju Summer Forum” held in July last year, he said, “We are trying to seize opportunities in the market because the non-banking sector is weak,” and added, “We are also interested in the M&A market to enhance corporate value.” Although the group ultimately decided against acquisitions, Hana Financial Group moved to the implementation stage of its M&A strategy by participating in the bidding for KDB Life Insurance in 2023. Chairman Ham’s persistent interest in M&A stems from the perception that Hana Financial Group’s non-banking sector is relatively weak. As a result, Hana Financial Group has often been considered a leading candidate whenever non-banking financial companies come up for sale in the M&A market. Nonetheless, economic uncertainties seem to have prompted Chairman Ham to adjust his long-standing M&A strategy. The financial market is currently experiencing difficulties that some describe as “on par with a financial crisis.” For example, the KRW/USD exchange rate closed at KRW 1,472.5 per USD 1 on December 30, 2024, the highest level since the 1997 Asian Financial Crisis. Given its high sensitivity to exchange rate fluctuations, Hana Financial Group may find large-scale changes, such as M&A, increasingly burdensome in this environment. The lack of suitable assets in the M&A market also seems to have played a role. For instance, Dongyang Life Insurance and ABL Life Insurance, considered prime targets, are currently in acquisition talks with Woori Financial Group. MG Non-Life Insurance, a property managed with support from the Korea Deposit Insurance Corporation, has named Meritz Fire & Marine Insurance as the preferred bidder. Meanwhile, assets such as Lotte Insurance and Lotte Card are frequently mentioned but face price negotiation hurdles. Under these circumstances, Chairman Ham has emphasized self-reliance and synergy as the core of Hana Financial Group’s growth strategy. In his New Year’s address, Ham stated, “Rather than fixating on immediate results, it is crucial to establish structures and systems that can create sustainable value, even if progress is slow.” He added, “We must expand our insufficient customer base, ensure rigorous risk management, enforce strict internal controls, and optimize cost efficiency to build a solid foundation. At the same time, we need to strengthen synergies across our group affiliates to enhance the competitiveness of the non-banking sector and generate sustainable outcomes.” This signals a focus on building robust internal stability over the medium to long term rather than achieving short-term growth. However, given that this strategy requires a long-term approach, some speculate that its sustainability might depend on whether Chairman Ham is reappointed. Chairman Ham’s term ends in March this year. He is on the shortlist of final candidates and is seeking reelection. Other candidates include Lee Seung-yeol, Vice Chairman of Hana Financial Group; Kang Sung-mook, Vice Chairman of Hana Financial Group and President of Hana Securities; and two unnamed external candidates. Hana Financial Group will select the final chairman candidate through presentations, in-depth interviews, and voting for each candidate. In his New Year’s address, Chairman Ham highlighted the achievements of Hana Financial Group’s 20th anniversary and urged employees to embrace a sense of urgency for sustainable growth. Ham concluded, “What matters is how we prepare, act, and move forward with the right mindset. We must take the current crisis seriously and advance with a sense of urgency greater than anyone else’s.” #HamYoungJoo #HanaFinancialGroup #nonbankingsector #MergersAndAcquisitions #Koreanfinance #economicuncertainty #financialmarkets #self-reliance #sustainablegrowth #corporatestrategy
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- Bank of Korea’s Rhee Chang-yong Prioritizes Exchange Rate Over Inflation and Interest Rates
- ‘Inflation 4 times, Exchange Rate 7 times.’ This is the number of times Rhee Chang-yong, the Governor of the Bank of Korea, mentioned inflation and the exchange rate, respectively, in his 2025 New Year’s address on January 2. The Governor of the Bank of Korea is responsible for price stability through monetary policy. However, this year’s address indicates that the exchange rate is being viewed as a more critical variable than inflation. This reflects the urgency of defending the exchange rate given the current domestic economic situation. The Bank of Korea predicts that the economic growth rate this year will remain at 1.9%, below the potential growth rate of 2%, due to declining exports and sluggish domestic demand. Adding to this burden is the KRW/USD exchange rate, which has exceeded KRW 1,400 and is approaching KRW 1,500, creating significant pressure on the domestic economy. Concerns about prolonged domestic political instability triggered by martial law and expectations of a stronger U.S. dollar under the second Trump administration are fueling market speculation that the KRW/USD exchange rate surpassing KRW 1,500 is only a matter of time. Moon Da-woon, a researcher at Korea Investment & Securities, stated in a report on the same day, “There are currently no clear factors to lower the exchange rate. In January, external factors are likely to intensify upward pressure on the U.S. dollar, while internal factors such as political instability and economic sluggishness will exacerbate upward pressure on the exchange rate.” In response, Governor Rhee focused his New Year’s address on calming the growing anxiety surrounding the exchange rate. Given that Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance Choi Sang-mok has taken on the role of acting president and expanded his role as an economic control tower, Rhee emphasized that the current market concerns might be exaggerated and dedicated much of his address to financial stability. Rhee stated, “It is an overstatement to equate our current situation with crises such as the foreign exchange crisis, the global financial crisis, or the COVID-19 crisis. The Bank of Korea will act as a breakwater, maintaining stability amidst the turbulence, advising government policies, and safeguarding external credibility.” He also emphasized that while exchange rate volatility has increased, the government and the Bank of Korea are actively implementing market stabilization measures and will continue to operate monetary policy flexibly and swiftly. Future announcements regarding foreign exchange reserves are expected to significantly influence market sentiment. Foreign exchange reserves peaked at USD 419.97 billion in September last year but have since declined to USD 415.69 billion in October and USD 415.39 billion in November. Amid the exchange rate threatening the KRW 1,500 level, there are speculations that foreign exchange reserves might have significantly decreased in December due to aggressive market intervention by the authorities to defend the exchange rate. If the foreign exchange reserves, set to be announced on January 6, fall below the psychological threshold of USD 400 billion, market instability could rapidly escalate. If the exchange rate continues its rally above KRW 1,500 and foreign exchange reserves are confirmed to have declined significantly, this could also impact the interest rate decision at the year’s first Monetary Policy Committee meeting on January 16. Although further cuts to the benchmark interest rate are anticipated to stimulate domestic demand, widespread concerns about exchange rate instability might make additional rate cuts more challenging. In his New Year’s address, Rhee stressed, “Given the unprecedented political and economic uncertainties, monetary policy needs to be operated flexibly and nimbly in response to changing conditions.” He added, “Future monetary policy will be determined flexibly based on data, closely examining the development of internal and external risk factors and changes in economic trends to adjust the pace of interest rate cuts accordingly.” #RheeChangYong #BankofKorea #KoreanEconomy #ExchangeRate #KRWUSD #Inflation #MonetaryPolicy #ForeignExchangeReserves #InterestRates #EconomicUncertainty
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- Yoon Suk-yeol, First Sitting President Facing Arrest, Seven Scenes That Led to the Collapse of His Administration
- The Yoon Suk-yeol administration, which upheld “fairness and common sense,” is facing impeachment in the wake of the December 3 martial law declaration, with many speculating that it is unlikely to survive into 2025. Especially significant is the issuance of an arrest warrant for President Yoon Suk-yeol by the Joint Investigation Headquarters on December 31, marking the first time in constitutional history that a sitting president could be arrested. Here are seven key issues that led to the collapse of Yoon’s administration just 31 months after its launch. ◆ Misperception of the Opposition as “Anti-National Forces” Leads to the Misstep of the December 3 Martial Law Declaration “Anti-intellectualism, where the majority suppresses opposing opinions, threatens democracy and undermines trust in it.” President Yoon’s inauguration speech sparked controversy as he appeared to label the Democratic Party of Korea (DPK), which held a majority in the National Assembly, as “anti-intellectual.” When the DPK strongly protested, Yoon denied that anti-intellectualism targeted the party. However, Yoon consistently mentioned “anti-nationalism” throughout his term, including during a speech at the 2023 Korea Freedom Federation Foundation Day and the August 15 Liberation Day address, further attacking the DPK. Critics argued that the inauguration day rhetoric about “anti-intellectualism” expanded and solidified into a misguided belief in “anti-nationalism.” After the ruling party’s crushing defeat in the April 2024 general election confirmed a legislature dominated by the opposition, Yoon’s hostility toward the opposition intensified. His rhetoric culminated in the statement, “We must eradicate pro-North Korea and anti-national forces to protect the Republic of Korea,” ultimately leading to the declaration of martial law on December 3, based on baseless election fraud conspiracy theories. This misjudgment led to charges of rebellion and subsequent impeachment, marking a decisive failure for the administration. ◆ Presidential Interference in Candidate Selection and the “Myung Tae-kyun Gate” Scandal Allegations of presidential interference in the ruling People Power Party (PPP)’s candidate selection process, dubbed the “Myung Tae-kyun Gate,” drew comparisons to the tablet scandal that triggered former President Park Geun-hye’s impeachment. The Presidential Office initially denied inappropriate ties to political broker Mr. Myung, claiming they had severed relations after the 2022 presidential election. However, on October 31, the DPK released an audio recording in which Yoon allegedly said, “Kim Young-sun has worked hard since the primary, so let’s help her out,” dismantling the narrative that Myung was merely a low-level political broker. The scandal expanded to implicate other figures, including Seoul Mayor Oh Se-hoon and former PPP floor leader Chu Kyung-ho. Prosecutors even secured the so-called “golden phone” containing messages linking Myung to Yoon and his wife, Kim Keon-hee, further tightening the net around the president. ◆ Kim Keon-hee as Yoon Suk-yeol’s Greatest Weakness Kim Keon-hee, the president’s wife, was at the center of multiple controversies, including luxury bag gifts, the Seoul-Yangpyeong Expressway, ties to Myung Tae-kyun, and the Deutsche Motors stock manipulation case. Despite numerous pieces of circumstantial evidence, including coordinated trading accounts, prosecutors cleared Kim of charges in the stock manipulation case. Meanwhile, Yoon repeatedly vetoed special investigation bills targeting his wife, drawing criticism for “shielding Kim Keon-hee.” The controversies undermined public trust, with Kim repeatedly appearing as a top reason for negative evaluations of Yoon’s job performance in Korea Gallup polls. ◆ “Pro-Yoon” Leadership Instability and General Election Defeat Yoon’s inability to tolerate dissent destabilized the PPP leadership, which underwent 10 changes during his tenure. Internal divisions, including conflicts with Justice Minister Han Dong-hoon, further weakened the party. Yoon’s one-sided control over the ruling party began with ousting former chairman Lee Jun-seok, who eventually left to form a reformist conservative party critical of Yoon. ◆ Medical Crisis Sparked by Sudden Medical School Quota Increase Yoon’s abrupt decision to increase medical school admissions by 2,000 per year caused chaos in the healthcare system, resulting in public discontent. Critics noted the lack of communication with medical professionals and opposition parties. ◆ Pro-Japan Diplomacy and the “Biden or Blunder” Incident Yoon’s policies on Japan, including third-party compensation for forced labor victims and support for releasing Fukushima wastewater, faced strong public backlash. The failure to secure the 2030 Busan Expo further highlighted diplomatic shortcomings. ◆ Economic Mismanagement Symbolized by the “Green Onion” Controversy Yoon’s comment that “green onions priced at KRW 875 (approximately USD 0.63) seem reasonable” during a market visit became a symbol of his disconnect from economic realities. Policies like reduced R&D budgets, later reversed, drew criticism for undermining South Korea’s future industrial competitiveness. #YoonSukYeol #Impeachment #December3MartialLaw #KimKeonHee #MyungTaeKyunGate #MedicalCrisis #ProJapanDiplomacy #EconomicMismanagement #GreenOnionControversy #SouthKorea
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- Samsung C&T Construction Nears KRW 1 Trillion Profit, Oh Se-chul Hits Order Target
- Oh Se-chul, the President and CEO of Samsung C&T Corporation’s Construction Division, is on track to surpass KRW 1 trillion (approximately USD 720 million) in operating profit for the second consecutive year. In addition to achieving strong performance, Oh is expected to meet the annual order target, overcoming the relatively weak results in the first three quarters with strong momentum in the fourth quarter. According to reports from Samsung C&T’s Construction Division and the securities industry on December 31, the division is projected to achieve KRW 1 trillion in operating profit again this year, driven by the highest operating profit margin among large construction firms. Samsung C&T’s operating profit margin stood at 5.4% in 2022 and 5.7% for the first three quarters of 2024. This is the only large construction firm with an operating margin exceeding 5%, marking the highest in the industry. Amid a downturn in the construction sector, it is rare to find a construction company like Samsung C&T that has managed to improve its operating margin compared to the previous year. Among large construction firms, only GS E&C, which turned from a deficit to a surplus, saw a significant improvement in operating margin. Samsung C&T’s Construction Division recorded KRW 856.1 billion (approximately USD 617 million) in operating profit by the third quarter of 2024. Since 2022, the division has consistently secured quarterly operating profits exceeding KRW 200 billion (approximately USD 144 million), except for the fourth quarter of 2022, which reflected risk costs related to a fire incident at an overseas site. If no significant one-time costs occurred in the fourth quarter of 2024, the division is highly likely to exceed KRW 1 trillion in annual operating profit. The securities industry estimates that Samsung C&T’s Construction Division will achieve approximately KRW 1.07 trillion (approximately USD 773 million) in operating profit this year. For Oh Se-chul, achieving over KRW 1 trillion in operating profit for two consecutive years is within reach. Last year, Samsung C&T’s Construction Division surpassed KRW 1 trillion in annual operating profit for the first time in its history, recording KRW 1.0343 trillion (approximately USD 746 million). Samsung C&T’s Construction Division has performed high-margin projects for affiliates like Samsung Electronics, including high-tech construction. However, Oh’s management performance is highly regarded for cost control, considering broader industry conditions, operating profit figures, and margins. In terms of scale, Oh is expected to exceed the revenue target of KRW 17.9 trillion (approximately USD 12.9 billion) set at the beginning of the year. The securities industry forecasts that the division’s revenue will be around KRW 19 trillion (approximately USD 13.7 billion) this year. Oh’s stable performance is seen as a key factor behind his reappointment last year and retention this year, despite Samsung Group’s “age 60 rule” for executives. In securing future business opportunities, the division is expected to meet its annual order target after strong performance in the fourth quarter, overturning a lackluster first three quarters. By the end of the third quarter, Samsung C&T’s Construction Division had secured KRW 10.0384 trillion (approximately USD 7.2 billion) in new orders, or 56.1% of its annual target of KRW 17.9 trillion. However, the fourth quarter saw a rapid increase in orders across various sectors. In November, the division secured a KRW 400 billion (approximately USD 288 million) contract for the Ansan Global Cloud Center project and a KRW 3.9709 trillion (approximately USD 2.84 billion) desalination and power plant project in Qatar. Recently, it won a KRW 700 billion (approximately USD 504 million) contract for a residential and commercial complex project in Mok-dong, Seoul. Including these three contracts, cost increases for ongoing projects, and remaining undisclosed agreements, fourth-quarter orders are expected to approach the remaining KRW 7.8 trillion needed to achieve the annual target. The division’s ability to secure meaningful new orders is crucial as its backlog has been criticized for being insufficient. Including the landscaping sector, Samsung C&T’s backlog decreased from KRW 27.724 trillion (approximately USD 20 billion) at the end of 2022 to KRW 23.857 trillion (approximately USD 17.2 billion) by the end of the third quarter of 2024. Recent projects, such as the KRW 4 trillion Qatar desalination and power plant project, have laid a foundation for further contracts. Qatar continues to expand its facilities to meet growing power demand, and Samsung C&T’s Construction Division has strengthened its market presence with successful projects like the KRW 850.4 billion Qatar solar power plant and the KRW 2.8688 trillion LNG export facility. The Ansan Global Cloud Center project is seen as an opportunity for Samsung C&T to expand in the data center sector, which it has identified as a new growth area. The division completed the Hanam Data Center, developed by IGIS Asset Management, and is working on advanced cooling systems to strengthen its capabilities in this field. #SamsungC&T #OhSeChul #ConstructionDivision #OperatingProfit #QatarProject #DataCenter #GlobalExpansion #OrderBacklog #CostManagement #KoreanConstruction
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- POSCO Boosts Stake to 100% in Indian Steel Plant, Chang In-hwa Targets 'Post-China' India Market
- POSCO accelerates its penetration into the Indian steel market by acquiring all shares of the cold-rolled steel production subsidiary from LX International. Chairman Chang In-hwa of POSCO Holdings is strengthening the company's local business in India to seize growth opportunities in the emerging market, where steel demand is expected to surge due to the Indian government's "Make in India" policy. This is seen as a strategy to offset profitability declines caused by oversupply from China. As of October 31, insights from within the POSCO Group and the securities industry indicate that POSCO, currently experiencing challenges in its steel business, is likely to strengthen its local operations in India as part of its strategy to achieve a turnaround. According to India’s Machine Maker, POSCO India PC Corporation filed an antitrust review with the Competition Commission of India (CCI) on October 27 (local time) to acquire LX International's 35% stake in POSCO IPPC Corporation, thereby increasing its stake to 100%. POSCO India PC already holds a 65% stake in IPPC. Upon successful acquisition, POSCO India PC will own 100% of IPPC. Once the acquisition is completed, POSCO plans to integrate its previously separated local production subsidiaries to enhance efficiency and expand its steel processing and distribution network in India. India’s economic media outlet The Hindu Business Line analyzed that the deal represents internal group restructuring and is unlikely to impact market concentration or competition dynamics. While some overlapping markets in steel processing and distribution were identified, the transaction is not expected to negatively affect competition within India's steel industry. Since taking office, Chairman Chang has intensified efforts to penetrate India’s steel market, identified as a "post-China" opportunity for improving profitability. On November 4, POSCO Holdings announced that it would sell its stakes in three Indian steel subsidiaries—POSCO Maharashtra Corporation, POSCO India PC Corporation, and POSCO IPPC Corporation—to POSCO, the group’s steel business arm. The total sale price was KRW 640.6 billion (USD 462 million), with individual sales of KRW 504.2 billion (USD 363.7 million), KRW 99.6 billion (USD 71.8 million), and KRW 36.8 billion (USD 26.5 million). A POSCO Holdings spokesperson stated, "The stake sale aims to enhance management efficiency in the steel business." Additionally, POSCO signed a memorandum of understanding (MOU) with India’s largest steel company, JSW Group, in October 2024, to collaborate on steel businesses. The two companies plan to establish a joint integrated steel mill in India with an annual capacity of 5 million tons. POSCO Group's recent moves are interpreted as a response to the deteriorating steel market environment, influenced by high exchange rates, Chinese oversupply, and economic recession. Strengthening its local presence in India is expected to provide a competitive advantage, especially as the Indian government imposes anti-dumping duties on cheap Chinese steel imports. India is the world’s largest emerging market, with an average annual economic growth rate of 6.7% projected until 2030. According to steel market research firm World Steel Dynamics (WSD), India’s steel demand is expected to grow by an average of 7% annually, reaching 190 million tons by 2030. POSCO IPPC Corporation, founded by POSCO in 2005, operates three plants in India. The first and second plants, with annual capacities of 238,000 tons and 222,000 tons, were completed in 2006 and 2009, respectively, in Pune, Maharashtra. A third plant with an annual capacity of 29,000 tons was completed in Andhra Pradesh in 2011. Currently, POSCO operates a cold-rolled and coated steel plant with an annual capacity of 1.8 million tons in Maharashtra and five steel processing plants in Delhi, Ahmedabad, and other locations. An industry insider commented, "While global economic downturns have limited steel demand growth, India’s strong industrial policies are expected to position the country as the world’s next manufacturing hub, replacing China. POSCO Group is likely to further invest in Indian production facilities to enhance its competitiveness in the local market." #POSCO #IndiaSteelMarket #SteelIndustry #MakeInIndia #ChangInhwa #POSCOIPPC #ColdRolledSteel #EmergingMarkets #JSWGroup #IndianEconomy
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- Jeju Air Muan Tragedy Sparks Criticism of Profit-Driven Management, Corporate Value Faces Uncertainty
- Jeju Air is expected to face inevitable medium- to long-term damage to its corporate value following the catastrophic accident at Muan Airport. Concerns are growing among consumers about flying on Boeing B737-800 aircraft, the same model involved in the accident, as it constitutes the majority of Jeju Air’s fleet. Moreover, the company’s long-standing profit-centered management approach has highlighted lapses in safety management. According to industry sources on the 30th, consumer anxiety regarding the B737-800 aircraft has been rising since the tragedy at Muan Airport on the morning of the 29th. The accident aircraft, the Boeing B737-800, has reportedly experienced landing issues for three consecutive days. The Jeju Air crash, which resulted in the deaths of all 179 passengers except two, was primarily attributed to the failure of all three landing gears. Landing gear is a critical safety device that absorbs impact and stabilizes the aircraft during takeoff and landing. In this incident, the aircraft attempted a belly landing at Muan International Airport but failed to reduce speed at the end of the runway, colliding with a structure and being entirely engulfed in flames. On the following day, a Jeju Air flight using the same aircraft model encountered landing gear issues and made an emergency return to Gimpo Airport instead of landing in Jeju. Of the 161 passengers on board, 21 chose to cancel their flights. The aircraft departed Gimpo but circled over Pyeongtaek due to landing gear malfunctions and returned to Gimpo at around 7:25 a.m. without landing in Jeju. The day before the accident, on the 28th (local time), a KLM flight from Oslo Gardermoen Airport to Amsterdam Schiphol Airport made an emergency landing at Oslo Torp Sandefjord Airport due to hydraulic system failure. In response, the Ministry of Land, Infrastructure, and Transport has decided to conduct a comprehensive investigation and special inspection of Jeju Air's Boeing 737-800 fleet. It will collaborate with the U.S. National Transportation Safety Board (NTSB) and Boeing to investigate the cause of the accident. A thorough safety inspection of Jeju Air and its fleet is expected, with rigorous investigations underway. The Boeing 737 series is the longest-running aircraft model by Boeing, with over 10,000 units sold worldwide, making it the most-sold jet airliner globally. The B737-800 model has sold over 5,000 units, with 101 in operation domestically. Jeju Air owns the largest number at 39, followed by T'way Air with 27, Jin Air with 19, Eastar Jet with 10, Air Incheon with 4, and Korean Air with 2. The high sales volume of this model naturally leads to more frequent accidents. While accidents typically involve multiple factors, the recent series of incidents has increased suspicion of structural defects. Jeju Air is particularly affected, as 39 of its 42 aircraft are of this model. In November, the airline purchased one of its leased B737-800 aircraft for KRW 39.49344 billion (approximately USD 28.5 million), which is expected to impact its overall operations. On travel forums, reports indicate a growing number of consumers canceling Jeju Air flights. Despite efforts to manage the aftermath of the tragedy, the series of incidents involving Jeju Air's aircraft has made it difficult for the airline to regain consumer trust. Some argue that the blame cannot rest solely on the aircraft. Critics suggest Jeju Air’s profit-driven management approach may have compromised safety, potentially contributing to the Muan Airport disaster. In the third quarter, Jeju Air’s aircraft averaged 418 operational hours per month, significantly higher than Korean Air (355 hours) and Asiana Airlines (335 hours). Even compared to low-cost carriers such as T'way Air (386 hours), Jin Air (371 hours), and Air Busan (340 hours), Jeju Air’s numbers were higher. This has led to speculation that the airline prioritized maximizing revenue by extending operational hours, potentially accelerating aircraft wear and tear. Jeju Air received a C++ rating, the lowest, in the Ministry of Land, Infrastructure, and Transport’s 2021 Comprehensive Safety Assessment, raising concerns about its relative neglect of safety compared to other low-cost carriers. An aviation industry official stated, "Aircraft inspections require expertise, and investigations can take anywhere from one to three years to complete. The airline’s operations are unlikely to be suspended during this period." Jeju Air is currently assessing the damages and discussing insurance payouts. According to the airline, the accident aircraft was insured with five companies, including Samsung Fire & Marine Insurance and the UK’s AXA Reinsurance, with total coverage of USD 1.036 billion (approximately KRW 1.5257 trillion). #JejuAir #MuanAirportAccident #B737800 #aviationnews #airlinesafety #corporateimpact #aircraftinvestigation #Boeing737 #aviationtrust #insurancepayouts
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- Jung Won-ju Calls for PF Normalization Measures: "Effective Liquidity Support, Abolition of Loan Limits"
- Jung Won-ju, Chairman of the Korea Housing Builders Association, emphasized the urgent need for government support to normalize project financing (PF). In his 2025 New Year’s address, Jung stated, “As a member of the housing construction industry, I do not feel entirely joyful about entering 2025. This is because the housing market outlook is far from a hopeful blueprint,” he said on the 30th. Jung identified factors negatively affecting the housing market, including domestic economic concerns related to the political turmoil surrounding the presidential impeachment, prolonged global economic uncertainty due to the Russia-Ukraine and Middle East wars, rising raw material prices, and household debt issues. He appealed for institutional support to stabilize the industry, given the significant role of the housing sector in the domestic economy. Jung said, “The housing industry has a profound impact not only on the livelihoods of working-class households and the overall national economy but also on related industries and employment. Its influence surpasses that of other sectors. Government policy support is urgently needed to normalize the industry so it can play a pivotal role in economic growth.” He stressed the urgency of normalizing real estate PF, which has become a ticking time bomb in the housing industry, calling for regulatory easing and other measures. Jung stated, “Effective liquidity support measures for housing developers, such as emergency support for real estate PF normalization, are necessary. Additionally, measures to revitalize the non-apartment market, promote private construction rental housing supply, implement follow-up actions for mandatory integrated reviews under the Housing Act, and alleviate burdens of land contributions are needed.” For PF normalization, Jung prioritized differentiated application of risk weights for equity capital ratios and suspension of reserve regulations for mutual finance institutions. Low equity capital ratios are identified as a major issue in domestic PF projects. In Korea, the equity capital ratio for PF loans is around 5%, except for savings banks, which require a 20% equity ratio. This is significantly lower compared to over 30% in countries like the U.S. and Japan. In other countries, developers attract equity investors, such as financial institutions or pension funds, to secure 30-40% equity for land purchases before obtaining PF loans during the construction phase. This allows for a more stable structure that includes both rental and sales income. In contrast, in Korea, developers often pursue short-term gains, using around 5% equity to purchase land with high-interest loans (bridge loans) at the outset, leading to structural instability. In response, the government announced on November 14 a “Real Estate PF System Improvement Plan,” which includes a medium- to long-term strategy to raise the equity capital ratio to 20%. The plan incorporates policies such as differentiated risk weights for equity capital ratios. Specifically, the government aims to encourage land and building contributions from landowners instead of high-interest loans for land purchases. Policies will differentiate risk weights and reserves based on the equity capital ratio in PF projects. Jung also emphasized the importance of measures such as increasing floor area ratios for urban housing supply, improving misuse of discretionary power by local governments, and updating basic construction cost estimates. On the demand side, he stressed the need for “pinpoint policies.” Jung stated, “It is urgent to immediately abolish the total loan limit system, which leads to loan suspensions, implement preferential loan rates for housing support groups and homes below the national housing size, and provide tax benefits for unsold housing buyers. Special measures are also urgently needed to support smooth financing for housing companies in regional areas, where unsold housing is a severe issue.” The association also announced plans to enhance communication with the government for housing industry revitalization and to focus on overseas projects and ESG (environmental, social, governance) management. Jung added, “In 2025, our association will concentrate its efforts on implementing proactive housing policies to enable member companies to focus on housing projects comfortably. We will closely communicate with government authorities to devise activation measures and energetically pursue our core tasks.” He continued, “To respond actively to the rapidly changing domestic and international housing market, we will support members’ participation in overseas housing projects by operating an ‘Overseas Housing Business Exploration Team.’ We will also prioritize ESG management through social contribution activities. I hope the year 2025, the Year of the Blue Dragon, brings new opportunities for the housing construction industry.” The Korea Housing Builders Association was established in 1985 to improve national housing standards and advance the housing industry. It currently has about 10,000 member companies. Jung was elected as the 13th chairman of the Korea Housing Builders Association in December 2022 for a three-year term. Since June last year, he has also served as Chairman of Daewoo E&C. #JungWonju #KoreaHousingBuildersAssociation #projectfinancing #housingmarket #governmentpolicy #realestatePF #economicgrowth #ESGmanagement #housingindustry #DaewooEandC
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- "Alibaba Deal" Chung Yong-jin and "1 Trillion Duty-Free Goal" Chung Yoo-kyung, Key to Shinsegae's Split
- Chung Yong-jin, Chairman of Shinsegae Group, and Chung Yoo-kyung, Chairwoman of Shinsegae, appear to be exploring independent survival strategies following the group’s planned business split. Chairman Chung Yong-jin is partnering with Alibaba International, the operator of China's e-commerce platform AliExpress, to enhance competitiveness in the domestic e-commerce market. Chairwoman Chung Yoo-kyung has set a goal to increase annual revenue from duty-free stores by more than KRW 1 trillion (approximately USD 720 million) within six years. Given that Shinsegae Group has already formalized its business split, the decisions of the two siblings are significant. Analysts suggest that E-Mart and Shinsegae, which will operate independently in the future, are actively seeking new growth opportunities. On the 30th, industry sources suggested that the recent decisions by Chairman Chung Yong-jin and Chairwoman Chung Yoo-kyung reflect the need to establish independent revenue sources ahead of the group's split. On the 27th, Shinsegae unveiled its “Value-Up” corporate value enhancement plan. Notably, Shinsegae Duty-Free, which recorded revenue of KRW 1.869 trillion (approximately USD 1.35 billion) last year, aims to increase revenue to KRW 2.4 trillion (approximately USD 1.73 billion) by 2027 and KRW 3 trillion (approximately USD 2.17 billion) by 2030. Shinsegae has set an annual average growth rate (CAGR) target of 6.8% until 2030. However, given the current challenges in the duty-free industry, this target appears ambitious. In reality, Shinsegae Duty-Free’s revenue fell to KRW 3.3668 trillion (approximately USD 2.43 billion) in 2022, a 44.5% drop from the previous year. As of the third quarter of this year, cumulative revenue increased by only 1.3% compared to the same period last year, far from achieving Chairwoman Chung’s 6.8% growth target. The aggressive revenue target set for Shinsegae Duty-Free reflects Chairwoman Chung’s urgency. With little time left before the group’s split, there is a recognized need to sufficiently expand Shinsegae’s business size to ensure its survival. Given that Shinsegae Group formalized the split by granting Chairwoman Chung her title during this year’s executive appointments, the pressure to produce results quickly is likely significant. Shinsegae Group currently derives two-thirds of its revenue from the E-Mart division. Once the split occurs, Shinsegae’s position in the business rankings could drop significantly. Chairwoman Chung’s target is considered challenging. Some industry observers note that Shinsegae’s plans lack groundbreaking measures to boost duty-free revenue. The group plans to attract customers through new duty-free store openings and renovations, such as the grand opening of its Incheon Airport store next year and the re-opening of its Myeongdong store in 2026. Critics argue that consumer behavior has shifted away from heavy use of duty-free stores while traveling, contributing to declining revenue in the industry. Many question whether Chairwoman Chung’s targets are overly optimistic. Various interpretations also surround Chairman Chung Yong-jin’s decision to collaborate with Alibaba International. Chairman Chung’s move is seen as an attempt to disrupt the e-commerce market by partnering with Alibaba International. After efforts to dominate the market through SSG.com and Gmarket largely failed, this collaboration seems aimed at creating a turnaround. However, skepticism remains about whether Gmarket and AliExpress can generate meaningful synergy. According to the distribution industry, AliExpress holds about a 1% market share in Korea’s e-commerce market, while Gmarket has about 8%. Combining their shares would increase Gmarket’s market share by only 1%. Shinsegae Group expects Gmarket sellers to expand their reach globally through AliExpress. However, Coupang already allows its sellers to sell products in Taiwan, and AliExpress launched its global sales program in September this year. Korea Investment & Securities noted, “While securing a strategic partner for Gmarket is a positive step, it is difficult to predict synergy from a joint venture at this stage. The announced strategy alone is unlikely to have a significant impact on the online market.” With the E-Mart division’s growth slowing, largely due to its reliance on hypermarket operations, Chairman Chung seems determined to find a breakthrough in the e-commerce market. However, doubts persist over the appropriateness of his strategy. Chairman Chung must deliver results, albeit for slightly different reasons than Chairwoman Chung. Many of his past investments, including the acquisition of Gmarket, have had disappointing outcomes. E-Mart purchased Gmarket in 2021 for KRW 3.4404 trillion (approximately USD 2.5 billion), making it Shinsegae Group’s largest-ever acquisition. Given the scale of the investment, Gmarket is seen as a critical affiliate for Chairman Chung to revitalize. To date, Gmarket has posted only one quarterly profit, in the fourth quarter of last year, while the rest have been operating losses. Chairman Chung’s decision to collaborate with Alibaba International is attracting significant attention. It is considered a crucial step for demonstrating his managerial acumen as the head of the group. #ShinsegaeGroup #ChungYongjin #ChungYookyung #ecommerce #AliExpress #Gmarket #dutyfree #corporatesplit #businessstrategy #Koreanbusiness
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- Jeju Air's Kim E-bae: "Top Priority on Accident Recovery and Family Support, Cause Still Unclear"
- Kim E-bae, CEO of Jeju Air, apologized for the passenger aircraft accident at Muan Airport and promised to do his utmost to handle the aftermath. At a briefing held at Mayfield Hotel in Gangseo-gu, Seoul, on the 29th, Kim said, “I extend my deepest condolences and apologies to the passengers who lost their lives and their bereaved families. As the CEO, I take full responsibility for this accident.” He added, “Jeju Air will do everything possible to promptly manage the situation and support the families of the passengers.” Regarding the cause of the accident, he stated, “At this point, it is difficult to determine the cause, and we need to wait for the official investigation results from the government authorities. We will work with the government to uncover the cause of the accident.” When asked by reporters about the cause, Kim reiterated, “There will be an official investigation by the government, and I have no further comment to add.” After the incident, Kim convened an emergency meeting at Jeju Air’s office at the Aviation Support Center in Gangseo-gu, Seoul, to discuss response measures. At around 9:03 a.m. on the same day, Jeju Air flight 7C2216, operating the Bangkok-Muan route, collided with the outer wall of the runway while landing at Muan International Airport. The collision caused the aircraft to catch fire. The aircraft was almost entirely destroyed by the fire, leaving only the tail section recognizable. The aircraft reportedly had a total of 181 people on board, including 175 passengers—173 South Koreans and 2 Thais—and 6 crew members. A total of 179 people lost their lives in the accident, and the exact cause is currently under investigation. #JejuAir #KimEbae #MuanAirport #aircraftaccident #aviationnews #passengersafety #emergencyresponse #airlines #accidentinvestigation #condolences
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- Yang Jong-hee Restructures KB Financial Leadership, Lee Jae-keun and Lee Chang-kwon Take the Lead
- Yang Jong-hee, Chairman of KB Financial Group, emphasized reform by replacing five of the six vice presidents whose terms had ended in the holding company’s executive appointments. However, Lee Jae-keun, President of KB Kookmin Bank, and Lee Chang-kwon, President of KB Kookmin Card, were brought back to the holding company to serve as the control tower and maintain stability. Yang granted them newly created "C-level" titles as division heads, strengthening their leadership in a dual system. According to KB Financial on December 27, Lee Jae-keun and Lee Chang-kwon will begin their terms as head of the Global Division and head of the Digital and IT Division, respectively, on January 1, 2025. After eliminating the vice chairman position last year, KB Financial had reorganized its vice president roles to oversee six core areas: strategy, finance, risk management, global business, digital and IT, and consumer protection/compliance. With the return of Lee Jae-keun and Lee Chang-kwon to the holding company as division heads, the organizational structure has been adjusted. Both leaders, having held various key roles within the group and leading core affiliates, are recognized for their management skills. By entrusting them with group-wide priorities such as global business and digital transformation, this reshuffle is seen as a strategic move with future leadership in mind. Their career paths are drawing comparisons to those of former Vice Chairmen Huh In and Lee Dong-chul, who competed with Yang for the KB Financial chairman position. Huh served as President of KB Kookmin Bank for four years before becoming vice chairman, and Lee previously led KB Kookmin Card. Yang also earned recognition for his management skills as CEO of KB Insurance before becoming the first vice chairman in 2021, establishing himself early as a candidate for leadership. Lee Jae-keun led KB Kookmin Bank for three years, overseeing the group’s overseas business, including Indonesia’s KB Bank (formerly Bukopin Bank). His understanding of global operations makes him well-suited to lead the Global Division and drive the normalization of KB Bank’s overseas ventures. Lee Chang-kwon will oversee the Digital and IT Division, which was previously led by an external hire. With KB Financial focusing on strengthening its digital finance capabilities, his deep understanding of the group makes him a strong candidate to serve as a control tower. The group is currently working on building a "Group-Wide Generative AI Platform" involving all affiliates, slated for launch next year. Under the "dual leadership" of Lee Jae-keun and Lee Chang-kwon, Yang has also introduced changes by appointing executives from non-banking affiliates to strategic roles in the holding company. Park Young-jun, the new Executive Vice President for Strategy, previously served as Head of the Strategic Management Division at KB Asset Management. Eom Hong-sun, appointed as Executive Vice President for Risk Management, was formerly Head of Risk Management at KB Securities, another non-banking affiliate. By breaking the tradition of predominantly appointing executives from KB Kookmin Bank to key roles, KB Financial is maintaining its emphasis on collaboration and synergy between banking and non-banking units. In addition, Na Sang-rok, Head of Financial Planning at the holding company, will take over the finance role previously held by Kim Jae-kwan, a candidate for KB Kookmin Card CEO. Im Dae-hwan, the Compliance Officer whose term runs through December 2025, was the only vice president retained in this reshuffle. In a press release regarding its organizational restructuring and executive appointments, KB Financial stated, “With the domestic economy slowing and challenges such as high exchange rates, we face a difficult management environment. The appointments of Lee Jae-keun and Lee Chang-kwon aim to leverage the management expertise proven during their affiliate leadership to maintain continuity in key group businesses.” #YangJongHee #KBFinancialGroup #LeeJaeKeun #LeeChangKwon #ExecutiveAppointments #DigitalTransformation #GlobalBusiness #FinancialLeadership #Banking #SouthKorea
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- Hwang Byung-woo of DGB Financial Makes Bold Moves, Challenges "Big 4" in Finance
- Hwang Byung-woo, the Chairman and CEO of DGB Financial Group, has implemented a bold reshuffling of executive appointments, breaking away from traditional practices by recruiting external personnel for key positions in the holding company and its banking subsidiaries for the first time. This personnel reshuffle is significant as it marks the first large-scale group-level appointments since Hwang took office as chairman of DGB Financial Group in March. With iM Bank launching as a commercial bank, Hwang appears to be focusing on elevating the group to a major financial group by actively recruiting external professionals, including those from the four major financial groups, leveraging their expertise. According to industry sources on December 27, the recent executive appointments at DGB Financial Group and its affiliates have been evaluated as emphasizing "external recruitment." The Group Executive Appointment Committee and the Board of Directors of DGB Financial Group recommended Park Kyung-won, current Vice President of Shinhan Life, as CEO candidate for iM Life, and Kim Sung-wook, current Executive Director of Woori Financial Capital, as CEO candidate for iM Capital. Both nominees, born in 1972, are contemporaries currently serving in key roles within the four major financial groups, which is considered a groundbreaking move. Park Kyung-won, the nominee for iM Life CEO, is recognized as a "finance expert" with experience as Vice President of the Financial Group at Shinhan Life. He is believed to have been tasked with addressing the significant deterioration in iM Life's financial soundness this year. The solvency ratio (K-ICS) of iM Life, a key financial stability indicator for insurance companies, stood at 192.6% at the end of June after transitional measures, marking a decline of approximately 54 percentage points compared to the end of the previous year. Kim Sung-wook, the nominee for iM Capital CEO, comes from Woori Financial Capital and is regarded in the industry as a "loan expert." He is expected to address the challenges faced by iM Capital, whose cumulative net profit for the third quarter declined by 48% year-on-year due to provisions for real estate project financing (PF). DGB Financial has not only placed external experts in affiliate companies but also in the holding company and iM Bank executives. Notably, external talents were recruited for the first time in the digital marketing division of the holding company and the digital and information and communication technology (ICT) sectors of the bank. Hwang Won-cheol, the new Managing Director overseeing Digital Marketing at DGB Financial Group, is known as a digital finance expert who led digital financial initiatives at Woori Financial Group. Sung Hyun-tak, Managing Director of the ICT Group at iM Bank, previously served as the head of the Real Estate Business Division at KB Kookmin Bank and led business platform development at Naver, establishing his reputation as a digital expert. Both Hwang Won-cheol and Sung Hyun-tak are expected to enhance the execution of the group's digital strategy due to their expertise in digital finance. DGB Financial has identified its core value as a "New Hybrid Banking Group," aiming to combine the strengths of internet banks, regional banks, and commercial banks, making digital capabilities crucial to achieving this vision. Hwang’s personnel policy of actively discovering outstanding external talent has continued. Since becoming chairman of DGB Financial, Hwang has made bold moves in talent acquisition, such as recruiting Park Byung-soo, a former Financial Supervisory Service official, as the group's Chief Risk Officer (CRO) in his first executive appointments. In July, when iM Bank opened its first overseas branch in Wonju, the group also recruited external experts familiar with the local environment, appointing Jung Byung-hoon, former Head of Gangwon Sales Division at NH NongHyup Bank, as the inaugural branch manager and regional head for Gangwon Province. In November, the group appointed external professionals, rather than internal personnel, as heads of the holding company’s management and HR departments. This move to place external personnel in charge of divisions overseeing the group’s internal affairs was considered unprecedented in the financial sector. Regarding the latest personnel announcement, Hwang stated, "At this critical time for establishing DGB Financial as a successful commercial financial group and ensuring its sustainable growth, we have embraced change and innovation by appointing individuals capable of leading generational transitions. We actively recruited external experts as executives of the holding company and CEOs of subsidiaries." #HwangByungWoo #DGBFinancialGroup #iMBank #externalrecruitment #financialgroup #digitalfinance #personnelreshuffle #financialinnovation #SouthKorea #banking
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- Choi Sang-mok’s Challenge: Will He Work with the Opposition for Economic Stability?
- The Democratic Party of Korea has moved to impeach Acting President and Prime Minister Han Duck-soo, paving the way for Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok to take over as acting president. Choi, who has been focused on his role as the economic control tower, now faces additional responsibilities, including addressing political and security issues, which significantly increase his burden. For Choi to effectively fulfill his role as the economic leader and overcome economic uncertainties, cooperation with the Democratic Party, which holds a significant majority in the National Assembly, is essential. This raises questions about whether Choi will adopt a different approach from Han Duck-soo by working with the opposition on key political issues, such as appointing constitutional court justices, to reduce conflict. On December 27, Democratic Party leader Lee Jae-myung announced during an emergency statement in the National Assembly concerning a state of insurrection, “The Democratic Party will impeach Prime Minister Han Duck-soo today, following the people's mandate.” The impeachment motion for Acting President Han Duck-soo is set to be voted on during the National Assembly’s plenary session at 3 PM. If at least 151 votes are cast in favor, Han’s duties will be suspended. According to Article 71 of the Constitution, the order of succession for acting presidents is determined by law. Thus, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok will succeed Han as acting president. Given that the Democratic Party’s reason for impeaching Han is his decision to withhold the appointment of a constitutional court justice, attention is focused on how Choi will handle political controversies as acting president while responding to the Democratic Party's stance. If Choi, like Han, delays the appointment of constitutional court justices, the Democratic Party is likely to quickly initiate impeachment proceedings against him as well. During an interview on CBS Radio's "Kim Hyun-jung’s News Show" on December 27, Democratic Party floor leader Park Sung-joon emphasized, “The people’s mandate is to severely punish and root out the leaders and forces of rebellion,” signaling the possibility of impeaching Choi if he mirrors Han’s approach. However, some within the Democratic Party expect Choi to avoid political confrontation and not attempt to delay investigations into President Yoon Suk-yeol’s impeachment trial or charges of insurrection. On December 25, Democratic Party lawmaker Park Beom-gye stated on SBS Radio's "Kim Tae-hyun’s Politics Show," “Choi was the first to strongly oppose martial law during a cabinet meeting and walked out. He also showed a willingness to implement the budget cuts that were passed. In these aspects, he seems better than Han.” Furthermore, Choi’s need to cooperate with the Democratic Party is significant for overcoming economic uncertainties. Choi has been preparing measures such as early execution of the 2025 budget and economic policy directions to combat the economic crisis. For these plans to be implemented effectively, collaboration with the Democratic Party is crucial. During an emergency briefing at the Sejong Government Complex on the same day, Choi, along with other cabinet members, emphasized the importance of economic stability, stating, “Our economy and people’s livelihoods are walking on thin ice amidst a national emergency. Expanding political uncertainty with an ‘acting authority for the acting authority’ is something the economy cannot afford.” Woo Seok-jin, a professor of economics at Myongji University, analyzed on MBC Radio’s “Kim Jong-bae’s Focus” that cooperation with the National Assembly, as the representative of the people, is critical for the government’s economic policy plans to be effective. Choi, a career economic bureaucrat, has traditionally avoided political conflicts. This characteristic is seen as a key factor differentiating him from Han Duck-soo and suggesting he may take a different approach, especially regarding the appointment of constitutional court justices. Choi had previously submitted a document to investigative authorities regarding measures taken during the December 3 martial law by President Yoon Suk-yeol, which reportedly contained plans to secure fiscal resources for martial law-related contingencies. During a National Assembly inquiry on December 17, Choi stated, “The deputy secretary reminded me of the document’s existence, but I decided to disregard it and shelved it.” In past crises, such as the 2017 Park Geun-hye administration’s corruption scandal, Choi showed a willingness to cooperate with investigations and trials rather than taking a strong political stance. As economic and financial secretary at the Blue House in 2014, Choi cooperated with special investigations and appeared as a witness during the National Assembly hearings on the scandal involving the Mir Foundation. Political commentator Kim Sang-il stated on MBN Newswide on December 26, “Choi is a traditional bureaucrat who faced hardships during the Choi Soon-sil scandal for refusing to comply with certain orders, including missing opportunities for promotion. He understands the importance of prioritizing critical matters in the current situation.” During an emergency macroeconomic and financial briefing earlier in the day, Choi stated, “The impeachment motion against Acting President Han has significantly increased uncertainty. Quickly resolving internal and external concerns about possible governance interruptions is crucial for stabilizing financial markets.” These remarks reinforce the belief that Choi is unlikely to engage in direct confrontation with the opposition. #ChoiSangMok #HanDuckSoo #DemocraticParty #impeachment #SouthKorea #economicleadership #financialstability #politicaluncertainty #YoonSukYeol #economicpolicy
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- HD Hyundai Infracore Backs Large Engines as Cho Young-cheul Rides the Wave of Defense Demand
- Cho Young-cheul, CEO of HD Hyundai Infracore, is focusing on strengthening the defense and power-generation large engine businesses to diversify the company’s performance and secure future growth drivers. The large engine business is expected to drive HD Hyundai Infracore’s performance growth, supported by the expansion of South Korea’s defense exports and eco-friendly trends such as emission regulations. On December 26, HD Hyundai Infracore signed an "Investment Agreement for Engine and Battery Pack Manufacturing Facilities" and announced a four-year investment of KRW 116.8 billion (approximately USD 84.3 million) to establish these facilities on a 19,000-pyeong (approximately 62,700-square-meter) site at its Gunsan plant. This investment, the largest since HD Hyundai Infracore became part of HD Hyundai, will add engine and battery pack production facilities to the Gunsan plant, which currently focuses solely on construction equipment. The Gunsan plant will be capable of producing 120 military engines for tanks, up to 1,250 extra-large engines with a capacity of up to 3 MW for power generation, and 880 MWh of battery packs for 3,000 electric buses annually. This bold investment decision by HD Hyundai Infracore is expected to stimulate the local economy. Shin Young-dae, a member of the National Assembly from the Democratic Party representing Gunsan-si, Kimje-si, and Buan-gun, publicly welcomed the decision. On December 26, he said, "We anticipate new growth industries for Korea driven by HD Hyundai Infracore's capabilities and Gunsan's industrial infrastructure. We will work to establish Gunsan as a leading city for manufacturing in Korea." Cho’s emphasis on expanding large engine production capacity appears to be a strategic move to meet the growing demand for engines used in tanks amid the expansion of South Korea’s defense exports. According to HD Hyundai Infracore’s third-quarter performance report, the company signed two export contracts for tank engines. These include a KRW 183 billion (approximately USD 132.0 million) contract to supply engines for K2 tanks produced by Hyundai Rotem for export to Poland, and a KRW 110.2 billion (approximately USD 79.4 million) contract to supply next-generation tank engines to BMC of Türkiye. HD Hyundai Infracore plans to use its Gunsan plant to fulfill existing tank engine orders for Poland and Türkiye while also preparing for additional defense engine orders. For small- and medium-sized engines and battery packs, the company will invest KRW 24.4 billion (approximately USD 17.6 million) to expand dedicated facilities at its Incheon plant. A representative of HD Hyundai Infracore stated, “We have diversified our product portfolio with small- and medium-sized engines produced at our Incheon plant and large engines manufactured in Gunsan.” HD Hyundai Infracore expects to begin mass production of K2 tank engines, extra-large power generation engines, and commercial and industrial battery packs as early as the second half of 2026. The company anticipates annual revenue growth of more than KRW 400 billion (approximately USD 289 million) by 2035. Co-CEO Oh Seung-hyun of HD Hyundai Infracore commented on the Gunsan investment decision, stating, "This decision aims to diversify the profit structure of the engine division and secure future growth engines. We expect cumulative revenue of more than KRW 4.5 trillion (approximately USD 3.25 billion) over the next decade." Cho also appears to be targeting new demand for power-generation large engines driven by emission regulations in advanced markets like the United States and Europe. HD Hyundai Infracore is reportedly focusing its research on technology that addresses emission and fuel efficiency regulations in the power-generation large engine sector. Specific tasks include developing engines that meet European emission standards, predicting the performance and lifespan of engine wear parts for expanded applications, and creating eco-friendly diesel/gas engines for industrial and commercial vehicles to expand product lineups and enter new markets. Cho plans to further strengthen the company’s product lineup and expand its customer base in the U.S. and European markets. In April, HD Hyundai Infracore participated in "Intermat 2024" in Paris, France, where it showcased its "HYUNDAI" engine booth featuring next-generation eco-friendly power products such as electric battery packs and hydrogen engines. The company announced plans to begin demonstration operations of hydrogen engines for power generation in the second half of 2024 and to expand its lineup to include engines of 22 liters or larger. At Intermat, Cho stated, "This event showcases next-generation engine technologies aimed at building a better world. We will continue to focus on developing innovative power solutions for a sustainable future." Cho’s emphasis on the engine business stems from the construction equipment division, which was once the company’s core business, facing declining profitability. Meanwhile, the engine division’s performance and profitability have been rapidly improving. The engine division’s operating profit rose from KRW 48 billion (approximately USD 34.6 million) in 2021 to KRW 126 billion (approximately USD 90.9 million) in 2022, and KRW 152 billion (approximately USD 109.6 million) in 2023. Operating profit for this year is expected to reach KRW 181 billion (approximately USD 130.5 million). In Q1 2024, the engine division recorded sales of KRW 309.3 billion (approximately USD 222.9 million) and an operating profit of KRW 47 billion (approximately USD 33.9 million), surpassing the operating profit of the construction equipment division, which posted sales of KRW 848.1 billion (approximately USD 611.7 million) and an operating profit of KRW 45.8 billion (approximately USD 33.0 million) during the same period. The securities industry has also highlighted the engine division as a key driver of HD Hyundai Infracore’s growth and profitability improvements. Jang Yoon-seok, an analyst at Yuanta Securities, commented, “The engine division, which is being applied across various sectors such as power generation, defense, and marine, recorded a compound annual growth rate of 13% in sales and 15% in operating profit from 2016 to 2023. Defense engines for more than 1,000 K2 tanks to be supplied to Poland by Hyundai Rotem are expected to significantly contribute to the division’s consolidated performance, with each engine priced at around KRW 1 billion (approximately USD 721,000).” #HDHyundaiInfracore #ChoYoungCheul #Engines #DefenseIndustry #PowerGeneration #ConstructionEquipment #Investment #GunsanPlant #EcoFriendly #GlobalMarkets
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- Coupang's Strategy Secures Loyal Customers, Poised to Retain 'E-commerce No. 1' Next Year
- Coupang is expected to solidify its dominance in the e-commerce market and begin a phase of unrivaled leadership next year. There were concerns that the growth of Coupang might be hindered by the increasing presence of Chinese e-commerce platforms in Korea. However, Coupang demonstrated unwavering performance in membership numbers and usage rates this year. First-generation e-commerce platforms such as 11st and Gmarket, as well as aggressive competition from Chinese firms, have so far failed to check Coupang's momentum. On December 26, experts in the retail industry projected that Coupang's market share in the e-commerce sector would expand even further in 2025. Coupang posted sales of $7.866 billion (approximately KRW 10.69 trillion) and an operating profit of $109 million (approximately KRW 148.1 billion) in the third quarter of this year, representing year-over-year growth of 27% in sales and 29% in operating profit. Annual revenue for this year is expected to surpass KRW 40 trillion (approximately $28.87 billion) for the first time in the company's history, with operating profit anticipated to remain in the black for the second consecutive year. Given these results, some argue that it is natural to conclude that there are no competitors to Coupang in Korea’s e-commerce industry. In April, Coupang decided to increase the subscription fee for its paid membership service, "Wow Membership," by more than 50%, sparking predictions that there would be a surge in "Talpangjok" (customers leaving Coupang). This was especially expected to accelerate starting in August when the price hike applied to existing members. Contrary to expectations, however, Coupang’s user base actually grew. In the third quarter of this year, Coupang’s Product Commerce segment, which includes Rocket Delivery, Rocket Fresh, Marketplace, and Rocket Growth, reported an active customer base of 22.5 million, up 11% from the same period last year. The average spending per customer per quarter also increased by 7.5%, from KRW 400,000 (approximately $289) in Q3 last year to KRW 430,000 (approximately $310) this year. Industry insiders attribute this result to Coupang’s strong lock-in effect, as customers have become accustomed to its fast delivery and convenient return/exchange systems. The proportion of loyal customers has significantly increased, further strengthening Coupang’s competitive edge. Coupang’s logistics system is also considered the largest and most advanced in Korea. CJ Logistics, once the undisputed leader in the parcel delivery industry, has reportedly lost the top spot to Coupang’s logistics subsidiary, Coupang Logistics Services. According to Meritz Securities, as of Q2 this year, Coupang held a market share of 36.3%, significantly ahead of CJ Logistics at 28.3%. Since introducing Rocket Delivery in 2014, Coupang has invested approximately KRW 6.2 trillion (approximately $4.48 billion) in building its logistics infrastructure, creating a system capable of delivering 365 days a year. Currently, Coupang operates more than 100 logistics centers nationwide, some of which are equipped with cutting-edge artificial intelligence (AI) technology to maximize delivery efficiency. The company also plans to expand Rocket Delivery to 230 cities and counties across Korea by 2027. While Coupang surges ahead, competitors have not been idle. However, they appear to have failed to close the gap with Coupang. 11st and Gmarket have entered cost-cutting modes amid continued profitability challenges. 11st has implemented voluntary retirement programs and relocated its headquarters to reduce costs, transitioning to sole leadership under CEO An Jeong-eun. Gmarket has also appointed a new CEO this year and introduced its first-ever voluntary retirement program, among other efforts to address its difficulties. Chinese e-commerce platforms dubbed “Al-Tem-Shee” (AliExpress, Temu, Shein), which were expected to make waves in the Korean market earlier this year, have also failed to significantly narrow the gap with Coupang. According to Mobile Index, a retail analysis service, Coupang recorded a dominant monthly active user (MAU) count of 32.2 million in November 2024, followed by AliExpress with 9.68 million, 11st with 8.89 million, Temu with 7.73 million, and Gmarket with 5.62 million. AliExpress’s MAU remains only about one-third of Coupang’s. In terms of card payment market share, Coupang is also unrivaled. According to Mobile Index, Coupang accounted for 53.8% of card payment transactions among major online shopping platforms in November. Gmarket followed with 7.9%, 11st with 7.4%, and SSG.com with 5.1%. AliExpress and Temu accounted for just 3.4% and 0.7%, respectively. Analysts note that the frequency of purchases on Chinese e-commerce platforms like AliExpress remains relatively low compared to Coupang. Most purchases are one-time transactions for low-cost items, resulting in a much lower average transaction value compared to Coupang. Coupang’s position is also expected to strengthen in attracting sellers to its platform. Following the struggles of platforms like TMON and Wemakeprice, many sellers now view Coupang as one of the best alternatives. On seller community platforms, it is common to see comments such as "I’ve already listed my products on Coupang" or "I’m considering joining Coupang." An industry insider commented, "This year, the e-commerce sector faced extreme uncertainty due to incidents like the TMON crisis and political issues. Starting next year, each company is expected to prepare thoroughly and adopt various strategies to strengthen competitiveness." #Coupang #Ecommerce #RocketDelivery #Logistics #MarketDominance #ChinaEcommerce #CoupangWowMembership #RetailCompetition #KoreaEcommerce #CoupangGrowth
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- Kakao Games’ 'POE 2' and 'Odin' Drive Year-End Success, Will Han Sang-woo Kickstart a Turnaround Next Year?
- Han Sang-woo, the CEO of Kakao Games, is smiling for the first time in a while as the company’s new PC online action role-playing game (RPG), 'Path of Exile 2' (hereafter 'POE 2'), has achieved early success. Additionally, existing games such as 'Odin: Valhalla Rising' (hereafter 'Odin') and 'Uma Musume Pretty Derby' (hereafter 'Uma Musume') are showing a year-end rebound, raising expectations for improved performance next year. According to the gaming industry on December 24, Kakao Games’ domestic release of 'Path of Exile 2' saw a strong start. After launching in early access on December 7, the game recorded approximately 580,000 concurrent users on its first day and topped daily sales rankings. As of the same day, the game maintained around 370,000 concurrent users on the Steam platform over the past 24 hours, ranking among the top five globally. Even Elon Musk, CEO of Tesla and known gaming enthusiast, shared on his social media that he played 'POE 2' on a flight, garnering attention. The game has also received positive reviews from domestic users. According to 'GameTricks', a PC gaming analytics service, 'POE 2' ranked 11th in domestic PC bang (internet café) market share as of December 24, attempting to break into the top 10. 'POE 2' is a hack-and-slash PC online game developed by Grinding Gear Games in New Zealand. It has been praised for its challenging gameplay and emphasis on high difficulty and rewarding elements. Kakao Games successfully secured exclusive domestic distribution rights for 'POE 2', building on its stable operation of the previous title, 'Path of Exile' (hereafter 'POE'), since June 2019. Analysts attribute the success of the sequel to localized strategies and PC bang benefits tailored to the Korean market. Meanwhile, existing flagship titles like 'Odin' are also showing signs of a rebound, further fueling optimism. 'Odin' climbed to 2nd place on Google Play Store’s sales rankings on December 23, up from 7th on December 11, thanks to the introduction of a new class, 'Destroyer', and large-scale events. As of 4 PM on December 24, the game had secured the top spot in real-time sales. 'Uma Musume' also re-entered the top 10 in sales rankings due to its 2.5th-anniversary update, climbing from outside the top 100. On December 23, it ranked 20th in Google Play Store’s sales rankings. The consistent addition of new content and a major update on December 18 have been met with positive user responses. Kakao Games, which has faced lackluster performance this year due to the failure of new titles like the strategy game 'Stormgate', is now viewed as having a higher chance of improving its results next year, following the success of these games. Han became CEO in March of this year. He prioritized structural reform and stabilizing Kakao Games' profit model, focusing on internal strengthening through the consolidation of non-gaming businesses and strict cost control. Specifically, Kakao Games downsized or divested non-gaming divisions such as Kakao VX and its golf NFT business. It also reorganized personnel to focus on core areas like game development and publishing. During the Q3 earnings conference call, Han highlighted key strategic priorities, including global expansion, extending to PC and console platforms, and diversifying genres. He stated, "We are actively exploring games that align with these strategic keywords, including equity investments." However, while the performance of new titles is a positive signal, some caution that a significant improvement in results may be difficult due to the company's revenue structure. For instance, while the previous title, 'POE', also performed well, its contribution to Kakao Games' overall revenue was limited since only PC bang connections and some platform-based sales were recognized. As a result, analysts believe that a meaningful rebound in results will depend on the performance of major new releases, such as 'ArcheAge Chronicles' and 'Chrono Odyssey', both slated for release after next year. An industry insider commented, "The self-developed 'Chrono Odyssey', expected to make a substantial contribution to earnings, is scheduled for release in late 2025, while the highly anticipated 'ArcheAge Chronicles' has been delayed to 2026." #KakaoGames #HanSangwoo #PathOfExile2 #POE2 #Odin #UmaMusume #gamingindustry #newgame #ArcheAgeChronicles #ChronoOdyssey
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- Falling Behind Overseas, Ottogi’s Ham Young-joon Bets on U.S. Production Plant for a Turnaround
- Ottogi is struggling to gain traction overseas. Despite having two production plants in Vietnam, Ottogi has lagged behind competitors Samyang Foods and Nongshim in the ramen industry, failing to achieve significant results in Southeast Asia. Although the company is working to establish a local production plant in the United States after 20 years of operating in the market, it seems it will take considerable time to achieve meaningful outcomes. According to Business Post’s findings on December 24, Ottogi is reviewing adjustments to its business plan for next year. An Ottogi representative told Business Post, “We anticipated the KRW/USD exchange rate to be in the high 1,300s when drafting our business plan for next year, but with the rate exceeding 1,450 now, the plan faces difficulties. We are making some adjustments and plan to minimize various costs as a general response next year.” The challenges posed by the high exchange rate are an issue for all food companies. However, for Ottogi, which is in a position to expand its overseas operations, the impact is particularly painful. Ottogi’s overseas business performance is not at a level that can be boasted about in the ramen industry. As of the third quarter of this year, Samyang Foods reported cumulative overseas sales of KRW 962 billion (approximately USD 694 million). Nongshim followed with KRW 435.7 billion (approximately USD 314 million). During the same period, Ottogi’s overseas sales amounted to KRW 259.1 billion (approximately USD 187 million)—about one-fourth of Samyang Foods’ figure and half of Nongshim’s. Ottogi’s push to establish a production plant in the United States appears to be motivated by these figures. As the importance of overseas business performance grows, the need to explore new markets has become more pressing. However, the unexpected high exchange rate is likely to act as a stumbling block to Ottogi’s business strategies. Some observers believe it may already be too late for Ottogi to outperform its competitors and achieve significant results overseas. This is due to the notable growth of Samyang Foods and Nongshim not only in Southeast Asia but also in the North American market. Ham Young-joon, the Chairman and CEO of Ottogi, continues to focus on targeting overseas markets. In November last year, Chairman Ham recruited Kim Kyung-ho, former Vice President of LG Electronics and father-in-law of Ham’s eldest daughter, as Vice President and Head of Ottogi’s Global Business Division. Analysts saw this as a step to expand overseas business in response to criticism of Ottogi’s lack of success in this area. In May this year, Ham’s eldest daughter, Ham Yeon-ji, officially joined Ottogi America, the company’s U.S. subsidiary. Her husband, Kim Jae-woo, is also employed at the U.S. subsidiary. Given Ottogi’s recent moves, there is speculation that Chairman Ham may shift his focus more heavily toward the U.S. market. With Samyang Foods already showing prominent growth in Southeast Asia, Ottogi might concentrate its resources on the United States. Ham Yeon-ji’s employment at the U.S. subsidiary further supports this perspective. At the same time, the United States is widely regarded as the ultimate target market for food companies’ international expansion, making it likely that Chairman Ham sees the U.S. as Ottogi’s final goal. Ottogi already has significant experience in the United States. The company established its U.S. subsidiary in 2005, giving it nearly 20 years of experience in the market. According to Ottogi, the U.S. subsidiary handles grocery sales, raw material procurement, and exports in the North American region. It also generates revenue through real estate investments in the western United States. If Ottogi establishes a local production plant, it is expected that the company could leverage its accumulated experience to drive sales growth. However, there are significant challenges ahead. Samyang Foods only established its U.S. sales subsidiary in 2021. While Ottogi has a time advantage in building a local network, it has struggled due to the lack of a flagship product to rival Samyang Foods’ Buldak Bokkeummyeon (Hot Chicken Flavor Ramen). Samyang Foods is increasing its presence in major U.S. retail channels, achieving over 90% placement in Walmart and nearly 60% in Costco. Nongshim, meanwhile, established its U.S. subsidiary in 1994, more than 10 years ahead of Ottogi, and has significantly more expertise in local business operations. An Ottogi representative commented, “We recently received halal certification for exports to Indonesia in early December and currently have two production plants in Vietnam, so for now, we plan to focus on overseas operations in Southeast Asia. In the U.S., we have secured a factory site and are monitoring the situation.” #Ottogi #HamYoungjoon #USmarket #SoutheastAsia #ramenindustry #SamyangFoods #Nongshim #foodbusiness #globalexpansion #highKRWUSD
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- Micron's HBM4 Mass Production Set for 2026, Samsung Smiles as Jun Young-hyun Leads with Advanced Processes
- Jun Young-hyun, the Vice Chairman and Head of the Device Solutions (DS) Division at Samsung Electronics, is aiming for a turnaround with the company’s sixth-generation high-bandwidth memory (HBM4) next year. Meanwhile, Micron’s HBM4 roadmap announcement appears to boost Samsung’s confidence in reclaiming its lead in the HBM market. Micron has announced plans to begin mass production of HBM4 in 2026, whereas Samsung Electronics plans to start production earlier, in the second half of next year. Additionally, Samsung’s HBM4 will feature a “1c DRAM” process, which is a generation ahead of Micron’s “1b DRAM” process, coupled with advanced hybrid bonding packaging technology, which is expected to significantly enhance product competitiveness. While SK Hynix is projected to begin mass production of HBM4 as early as the first half of next year, maintaining its market dominance by being the first supplier to NVIDIA, Vice Chairman Jun is expected to leverage Samsung’s superior technology to compete in the HBM4 sector. According to semiconductor industry sources on December 24, Micron unveiled its future HBM roadmap on December 23 (local time). Micron stated that it plans to begin mass production of products related to HBM4 in 2026, aligning with the launches of NVIDIA’s next-generation AI semiconductor “Rubin” and AMD’s “MI400.” It also mentioned that it would use the fifth-generation “1b DRAM” process technology, known for stable yield rates, for manufacturing HBM4 DRAM. Samsung Electronics’ earlier HBM4 release compared to Micron is expected to provide an advantage in securing customers and capturing the market. Taiwan’s Economic Daily reported on December 4 that Rubin’s launch was moved up by six months to mid-2025, suggesting that Samsung’s earlier HBM4 production schedule could position it favorably to secure orders from NVIDIA. Samsung’s use of the 1c DRAM process in HBM4 is also expected to be a competitive advantage. Since HBM is created by stacking DRAM layers, the specific process used for DRAM production is crucial. The divergent fortunes of SK Hynix and Samsung Electronics with HBM3E are attributed to differences in process technology. SK Hynix used the 1b DRAM process, while Samsung relied on the older 1a process, resulting in a noticeable difference in power efficiency. Reports suggest that Samsung plans to skip the 1b process and use the more advanced 1c process for HBM4. In contrast, Micron will use the 1b process, which it previously employed for HBM3E, to ensure stable production. The 1c process offers approximately 11% faster speeds and about 10% improved power efficiency compared to the 1b process. Taiwanese market research firm TrendForce commented, “The use of the 1b process raises questions about the market competitiveness of Micron’s HBM4.” Similarly, SK Hynix is expected to use the 1b process for HBM4, with plans to apply the 1c process to the next-generation HBM4E. Hybrid bonding technology is also expected to be adopted starting with HBM4E. Given that SK Hynix is already scheduled to supply HBM4 to NVIDIA in the second half of 2025, analysts believe it would be risky for the company to adopt a new DRAM process. Hybrid bonding is a technique that directly connects DRAM layers without “bumps,” allowing for higher stacking. It also improves heat dissipation and performance but involves high technical difficulty. In contrast, Samsung Electronics plans to apply hybrid bonding technology to its HBM4, which will enter mass production in the second half of next year. HBM4 is expected to be released sequentially in 12-layer and 16-layer products. Samsung is considering applying hybrid bonding technology starting with the 16-layer version. Lee Joon-chung, Vice President of Samsung Electronics, stated in September, “Samsung is developing a 16-layer HBM product and has created the world’s first prototype using hybrid bonding.” On December 23, Kuo Ming-chi, a researcher at Taiwan’s TF International, remarked, “According to industry sources, SK Hynix is likely to adopt hybrid bonding technology for its HBM4E 16-layer products in 2026.” According to Goldman Sachs, the global HBM market is projected to grow at a compound annual growth rate (CAGR) of 100% from 2023 to 2026, reaching $30 billion (approximately KRW 41 trillion) by 2026. #SamsungElectronics #JunYounghyun #HBM4 #DRAM #SKHynix #Micron #hybridbonding #semiconductors #NVIDIA #globalHBMmarket
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- KB Financial Group Highlights 'Change,' Yang Jong-hee's Vice President Lineup in Focus
- As KB Financial Group prepares for its executive appointments, attention is focused on changes within the vice president ranks. Following the inauguration of Chairman Yang Jong-hee last year, KB Financial Group eliminated the vice chairman position in its first executive appointments under his leadership. Since then, the group's vice presidents have overseen key business divisions and internal operations. As such, the group’s vice presidents are considered pivotal figures for gauging the direction of the group’s management strategy for 2025. According to KB Financial Group on December 23, the group plans to announce its 2025 executive appointments and organizational restructuring as early as this week. As of the end of September, KB Financial Group had 23 non-registered executives, six of whom were vice presidents. Among these, five vice presidents—excluding Vice President Lim Dae-hwan, who oversees consumer protection (compliance officer)—will have their terms end on December 31. The position of Vice President Kim Jae-gwan, who served as the group’s CFO, is already vacant as he was recommended by the CEO Nomination Committee to become the new CEO of KB Kookmin Card. KB Financial has already initiated leadership changes at major subsidiaries, including KB Kookmin Bank, KB Kookmin Card, and KB Life Insurance, at the end of this year. These changes were aimed at driving innovation through the bold selection of young talent, which may signal a similar approach in the group’s executive appointments. Externally, the management environment remains challenging for financial holding companies, with issues such as the impeachment situation in 2025, rising exchange rates, and interest rate cuts. Internally, the group faces weighty tasks, including improving internal control weaknesses through the introduction of a responsibility map and strengthening shareholder returns through value-up policies. As such, KB Financial and the financial industry as a whole appear to be prioritizing restructuring and establishing a crisis response system over stability in their year-end appointments. With Chairman Yang Jong-hee entering his second year, there is a high likelihood of changes among the group’s executives, who are considered his core aides. The current vice president lineup already includes individuals recruited externally or through unexpected promotions. Vice President Cho Young-seo, who oversees digital and IT, previously served as Chief Digital Strategy Officer at Shinhan Financial Group and joined KB Financial Group in 2021 as the head of its Management Research Institute. He then served as Chief of Digital Platforms at the group and head of the Digital Transformation Strategy Division at Kookmin Bank in 2022 before being promoted to vice president at the end of 2023. Vice President Seo Young-ho, head of the Global Business Division, is a research expert who previously worked at KB Securities’ Research Center. He was appointed as Executive Vice President and CFO of KB Financial Group in 2022 and promoted to vice president in 2023, later transitioning to lead the global business division. Currently, the KB Financial Group vice presidents with expiring terms include Cho Young-seo, Seo Young-ho, Vice President Lee Seung-jong (CSO), and Vice President Choi Cheol-soo (CRO). Vice President Lee Seung-jong has held various key positions at Kookmin Bank, including Head of the Strategy Division, Head of the Consumer Protection Division, and Head of the Management Support Group. He was promoted to vice president at the end of 2023 alongside Cho Young-seo and has served a one-year term. Vice President Choi Cheol-soo was promoted to vice president at the end of 2022 and has completed a two-year term this year. The CFO position previously held by Kim Jae-gwan, the CEO-designate of KB Kookmin Card, is traditionally the most closely watched position among the group’s vice presidents. KB Financial Group places great emphasis on financial executives who have served as group CFOs, with many holding key roles, including group chairman and heads of core subsidiaries such as KB Kookmin Bank. For example, Chairman Yang Jong-hee, KB Kookmin Bank’s CEO-designate Lee Hwan-joo, and KB Kookmin Card’s CEO-designate Kim Jae-gwan all served as group CFOs. Even KB Life Insurance’s CEO-designate Jeong Moon-cheol previously held the position of Head of Financial Planning at Kookmin Bank. However, given the significant uncertainty in the political and economic environment, there is also speculation that the group may opt for stability and balance in its executive appointments. This year, Shinhan Financial Group and Woori Financial Group, which completed their executive appointments earlier, also made substantial changes to their bank presidents and executives at key subsidiaries, while largely retaining their existing leadership teams at the holding company level. Notably, KB Financial Group’s Vice Presidents Lee Seung-jong, Choi Cheol-soo, and Seo Young-ho were all born in 1966, making them in their late 50s. Vice President Cho Young-seo, born in 1971, is younger. KB Financial Group maintains 4 to 6 vice presidents overseeing its core business divisions. The number of vice presidents decreased in 2021 with the reinstatement of the vice chairman position but rose from three to six after the position was eliminated in the year-end appointments of 2022. A KB Financial Group representative stated, “This year’s executive appointments are expected to be announced around the end of December, as in previous years.” #KBFinancialGroup #ExecutiveAppointments #VicePresidents #YangJonghee #FinancialLeadership #OrganizationalRestructuring #CFO #BankingSector #ManagementStrategy #CorporateInnovation
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- Shinhan Bank's Jung Sang-hyuk Stands Alone in Reappointment, Strengthens Leadership in Business Expertise
- Jung Sang-hyuk, President of Shinhan Bank, has drawn industry attention as the only executive among major banks to retain his position amid this year’s wave of reshuffles in the banking sector. Initially, it was expected that changes in bank presidents would be minimal, but leadership changes occurred at four out of the five major banks (KB, Shinhan, Hana, Woori, NH). Each financial group appears to have focused on enhancing business capabilities through leadership renewal in response to the approaching era of lower interest rates. As Jung faces the task of defending Shinhan Bank’s position as the leader in net profit among banks this year, he is expected to focus on further enhancing the sophistication of the bank’s operational structure. According to banking industry sources on December 23, President Jung Sang-hyuk is said to have prepared for 2025 by restructuring the organization, particularly around support operations. On December 20, Shinhan Bank announced an organizational restructuring that included reorganizing the Customer Solutions Group, creating a platform business-oriented division, establishing a Customer Convenience Tribe, and forming an Institutional Solutions Group. A key highlight is the substantial changes made to the “business support sector” rather than the “channel sector,” which directly handles consumer-facing operations. The Customer Solutions Group, considered a core part of the business support sector, was strengthened in the latest restructuring by integrating the functions of the existing Digital Solutions Group. Shinhan Bank also introduced the Customer Convenience Tribe, a task force-like group that will periodically convene to drive convenience-oriented innovations from the customer’s perspective. The Institutional Solutions Group was also newly established to enhance operations targeting institutional clients. President Jung appears to have prioritized refining operational capabilities rather than implementing major changes to sales channels, given Shinhan Bank’s strong performance as the leader in net profit among banks this year. Regarding the restructuring, Shinhan Bank commented, “Under the direction of transitioning into a ‘customer-focused organization’ set earlier this year to enhance customer solution capabilities, we have further expanded ‘connection and growth’ while strengthening digital business and field operations.” Jung faces the challenge of responding to the renewed competition from other banks. Among the presidents of the five major banks, Jung is the only one who has retained his position. Major banks are expected to see a decline in interest income, the banking sector’s primary source of revenue, due to the lowering of interest rates. This has prompted key financial groups to focus on renewal and reform. The dominant view regarding the profiles of new bank president candidates for 2025 is that “business operations” will be a central theme. Hana Bank replaced its president, who had led the bank to first place in net profit in 2023, after just two years. The incoming Hana Bank President, Lee Ho-sung, is recognized as a “business expert” who led the success of the Travelog platform. Woori Bank appointed Vice President Jeong Jin-wan of the SME Group, an expert in small and medium-sized enterprise (SME) operations, as its new president. This move signals the bank’s intent to strengthen business capabilities despite organizational challenges caused by various financial incidents. KB Kookmin Bank appointed Lee Hwan-joo, CEO of KB Life Insurance and a former group CFO, as its next president. This is seen as a move to focus on comprehensive growth and value enhancement for the group. However, Lee Hwan-joo is also credited with substantial experience in business operations, having served in multiple roles at KB Kookmin Bank, including branch manager, head of sales planning, and senior executive for retail customers. NH NongHyup Bank selected Kang Tae-young, Vice President of NH NongHyup Financial Capital, as its new president. Kang is known for his strength in digital innovation. While serving as Vice President of the DT Division at NH NongHyup Bank, he also oversaw NH NongHyup Financial’s digital finance sector, enhancing the competitiveness of the group’s super app, “NH All-One Bank.” From President Jung’s perspective, while he has managed to retain his position, he faces formidable challenges. The corporate finance market, in which Shinhan Bank performed well this year, is expected to become the main battleground for banks next year. In terms of corporate loan growth, Woori Bank saw the largest increase, rising 11.9% as of the third quarter compared to the end of the previous year. It was followed by Shinhan Bank (11.5%), Hana Bank (6%), KB Kookmin Bank (6%), and NH NongHyup Bank (5.3%). On December 19, Financial Services Commission Chairman Kim Byung-hwan stated, “While the corporate capital market remains stable, there are concerns that corporate funding conditions may deteriorate due to domestic and international factors. I urge you to consider innovative funding support measures to shift focus from ‘households and real estate’ to ‘corporations and growth capital’ when establishing plans for next year.” #ShinhanBank #JungSanghyuk #BankingReshuffle #FinancialLeadership #CorporateLoans #DigitalInnovation #CustomerSolutions #BankingSector #ProfitLeadership #OrganizationalReform
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- POSCO's Chang In-hwa Signals Shake-up, Fate of 'Choi Jeong-woo Line' Figures in Spotlight
- POSCO Group is set to announce its 2025 regular executive reshuffle this week amidst a series of challenges. This marks the first year-end reshuffle under the leadership of POSCO Group Chairman Chang In-hwa, who took office in March. Attention is focused on the scale of personnel renewal and whether the "Choi Jeong-woo era" executives will be reorganized. Industry observers predict that POSCO Group, currently facing deteriorating performance in its two main businesses of steel and secondary battery materials, coupled with significant domestic and international economic uncertainties, will undertake a major reshuffle. Particular interest is directed at the personnel outcome for POSCO CEO Lee Si-woo, regarded as a key figure from the former chairman's era. According to information gathered on December 23 from inside and outside the POSCO Group, the company is preparing a personnel plan aligned with the rapidly changing management environment and internal demands for renewal. The industry expects the group to announce its 2025 regular executive reshuffle as early as the afternoon of December 23 or no later than December 27. The group has been grappling with challenges such as poor performance in its steel and secondary battery materials divisions, frequent fires, accidents involving field workers, and union-related risks. The business community is keenly watching how Chairman Chang will reflect reform in this reshuffle. Earlier in February, the group carried out executive appointments for key subsidiaries, but these were made before Chang officially took office, resulting in many executives associated with former Chairman Choi Jeong-woo being appointed. As such, speculation has arisen over whether Chang will carry out a “Choi Jeong-woo purge” in this reshuffle. The most notable focus is on the tenure of Lee Si-woo, CEO of POSCO. The term for the CEO position is one year, and Lee took office in March this year. Lee, regarded as a close associate of former Chairman Choi, was appointed as CEO of POSCO even after Chang's leadership began. In November 2020, while Lee was the head of Gwangyang Steelworks, an explosion occurred at the facility, resulting in the deaths of three workers. The incident led to significant controversy, and former Chairman Choi appeared as a witness at a National Assembly hearing on industrial accidents, where he faced heavy criticism. Despite the controversy, Choi promoted Lee from head of Gwangyang Steelworks to head of the Production and Technology Division. Although the two roles are both at the vice president level, within POSCO, the Production and Technology Division head is considered a higher-ranking position. Lee was promoted to president in March of last year and appointed as CEO of POSCO, jointly leading the company with former Vice Chairman Kim Hak-dong. In February, Lee was appointed as the sole CEO of POSCO, leading to internal speculation that this was the final personnel move by former Chairman Choi. As such, all eyes are on whether Chang will replace Lee in this reshuffle. Furthermore, under Lee’s tenure as sole CEO, POSCO has faced declining performance, frequent safety incidents, and looming strike threats, escalating the crisis surrounding the company. In the third quarter of 2024, the company recorded sales of KRW 9.48 trillion (US$ 6.84 billion) and operating profit of KRW 440 billion (US$ 317 million), representing decreases of 2.15% and 39.7%, respectively, compared to the same period last year. Cumulative operating profit for the first three quarters of 2024 was KRW 1.153 trillion (US$ 832 million), a 36.6% decline from the same period the previous year. Issues with on-site safety management have also persisted. On November 10, a massive fire broke out following an explosion at the third FINEX plant for molten iron production at the Pohang Steelworks. This was the fourth fire at Pohang Steelworks this year, following incidents in January and February. Since Lee's appointment, there have been five worker injuries resulting from explosions and fires at POSCO facilities. Labor-management conflicts have also been ongoing throughout the year. Although a tentative agreement was recently reached in this year’s wage negotiations, the situation nearly escalated to the brink of the company’s first-ever strike. While some in the industry speculate that Lee, as a steel expert, could retain his position despite weak performance in the company’s core steel business, others believe a "financial expert" might replace him, given that the deteriorating profitability stems from external factors such as oversupply from China. Chairman Chang has previously taken steps to erase traces of Choi Jeong-woo’s tenure. Earlier this year, he abolished the "stock grant" system introduced by Choi, which provided company shares to employees as an incentive under the pretext of reinforcing responsible management. Chang also scaled back businesses initiated by Choi, notably selling off P&O Chemical, a battery material company. P&O Chemical was established in 2020 as a joint venture between POSCO Future M (holding a 51% stake) and OCI (holding 49%). POSCO Future M decided to transfer its entire stake in P&O Chemical to OCI. An industry insider commented, "Given the increasingly difficult management situation surrounding POSCO Group, there is widespread speculation that a large-scale reshuffle will take place to reform the organization. With next year’s domestic and international business environment expected to remain highly uncertain, Chairman Chang is likely to attempt organizational renewal to stabilize the atmosphere." #POSCO #steelindustry #executivereshuffle #ChangInhwa #ChoiJeongwoo #businessreform #industrialaccidents #financialperformance #corporateleadership #secondarybatterymaterials
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- Hanwha Kim Dong-seon’s Ourhome Bid Faces Hurdle with Koo Ji-eun’s Refusal Rights
- Kim Dong-seon, Vice President of Future Vision Strategy at Hanwha Hotels & Resorts, faces numerous challenges to finalize the acquisition of Ourhome. Ourhome has been a site of intense management disputes among its owner family. If former CEO and Vice Chairman Koo Ji-eun, who has stepped back from active management, exercises her right of first refusal, it could significantly burden Vice President Kim. According to the distribution industry on the 20th, Hanwha Hotels & Resorts has begun due diligence on Ourhome, marking the start of efforts to acquire its management rights. A representative of Hanwha Hotels & Resorts told Business Post, “We are reviewing various options for business diversification,” adding, “However, there is nothing specific to disclose about the Ourhome acquisition.” Currently, the acquisition of Ourhome is reportedly being led by Vice President Kim Dong-seon. As Kim has been focusing on expanding Hanwha Group's business into the food and beverage sector since joining the group's distribution affiliate, Ourhome is seen as a suitable acquisition to accelerate this strategy. Ourhome is considered the second-largest company in the catering industry, with annual sales approaching KRW 2 trillion (approximately USD 1.44 billion) as of last year. Its significant scale and established history suggest it could create considerable synergies with Hanwha Group's diverse food and beverage businesses. Some analysts believe the acquisition of Ourhome is being considered to generate synergies with the food business that Hanwha Hotels & Resorts is pursuing. Vice President Kim is reportedly working on a plan to acquire the shares held by the eldest son and daughter among the four siblings of the Ourhome owner family. The shares of Ourhome are divided among the late honorary chairman Koo Ja-hak's children: Vice Chairman Koo Bon-sung, Chairwoman Koo Mi-hyun, former Callisco CEO Koo Myung-jin, and Vice Chairwoman Koo Ji-eun. Their holdings are as follows: Koo Bon-sung owns 38.56%, Koo Mi-hyun owns 19.28%, Koo Ji-eun owns 20.67%, and Koo Myung-jin holds 19.60%. Vice President Kim appears to be attempting to secure management rights for Ourhome by acquiring the shares held by Vice Chairman Koo Bon-sung and Chairwoman Koo Mi-hyun. Together, their shares amount to 57.84%, enough to secure management control. The issue, however, is that acquiring only these two people’s shares might not be feasible. During the acquisition negotiations, the right of first refusal agreement among the four siblings could pose a significant obstacle. Reportedly, this agreement grants the remaining siblings the right to purchase shares under the same terms if any sibling intends to sell their shares to a third party. If Vice Chairman Koo Bon-sung and Chairwoman Koo Mi-hyun attempt to transfer their shares to Vice President Kim, Vice Chairwoman Koo Ji-eun and former CEO Koo Myung-jin could exercise their right of first refusal. Notably, Vice Chairwoman Koo Ji-eun is known to have a strong determination to manage Ourhome, making it highly likely she will exercise her right of first refusal. Among the four children of honorary chairman Koo Ja-hak, Vice Chairwoman Koo Ji-eun is the only one who received substantial management training at Ourhome. The late honorary chairman is said to have favored his youngest daughter, Koo Ji-eun, the most. The fact that he personally brought her into Ourhome's management is a testament to his affection for her. For example, Koo Ji-eun once attempted to protect her management rights at Ourhome by using KRW 533.1 billion (approximately USD 384.5 million) of distributable profit to acquire 61% of treasury shares. Considering her past actions, it cannot be ruled out that Vice Chairwoman Koo Ji-eun might exercise her right of first refusal during negotiations with Hanwha Group, aiming to reclaim management control of Ourhome. A legal expert noted, “Unless there are substantial or procedural issues, exercising the right of first refusal should not face any difficulties,” adding, “If two individuals exercise their right to acquire shares under the same conditions as Vice President Kim, it would not harm the company.” If Vice Chairwoman Koo Ji-eun does exercise her right of first refusal, it could complicate Vice President Kim’s efforts to overcome the intricate relationships among the four siblings and secure management rights of Ourhome. Nevertheless, many believe that Vice Chairwoman Koo Ji-eun alone may not have the capacity to disrupt the negotiations between Hanwha Hotels & Resorts and Ourhome. Hanwha Group is reportedly considering an investment of approximately KRW 860 billion (about USD 620.3 million) for the Ourhome acquisition. It seems unlikely that Vice Chairwoman Koo Ji-eun could secure this amount of funding in a short period. If she cannot raise the funds through her own assets, she might consider attracting investors. However, industry insiders believe it would be nearly impossible to secure close to KRW 900 billion (about USD 649 million) in investments given Ourhome’s performance. Last year, Ourhome recorded consolidated sales of KRW 1.9835 trillion (about USD 1.43 billion) and an operating profit of KRW 94.3 billion (about USD 68 million). Some view Hanwha Hotels & Resorts’ potential acquisition of Ourhome as beneficial for Ourhome’s future. An industry insider remarked, “From Ourhome’s perspective, Hanwha’s acquisition is not a bad scenario,” adding, “Hanwha’s extensive overseas operations and numerous factories could provide definite advantages in securing group catering contracts.” An Ourhome representative told Business Post, “As far as I know, nothing has been decided yet regarding the acquisition.” #Hanwha #Ourhome #KimDongseon #acquisition #foodindustry #managementrights #cateringbusiness #KooJieun #HanwhaHotels #businessstrategy
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- SK hynix's Kwak Noh-jung Eyes Expansion Beyond HBM, Exploring Semiconductor Packaging in the U.S.
- Kwak Noh-jung, President and CEO of SK hynix, will begin construction of a semiconductor packaging plant in Indiana, USA, next month, sparking speculation that the company is looking to enter the advanced post-processing semiconductor market beyond High Bandwidth Memory (HBM). Some suggest that SK hynix, already strong in HBM packaging, is inevitably entering the semiconductor post-processing packaging business, which is projected to exceed KRW 100 trillion (US$ 72.1 billion) within five years. On the 20th, SK hynix announced that it will invest KRW 5.9 trillion (US$ 4.26 billion) to build a new advanced packaging plant in Indiana, USA, starting in January next year. The announcement came a day after the U.S. Department of Commerce confirmed a semiconductor facility investment subsidy of $458 million (approximately KRW 700 billion or US$ 504 million). The company stated that the investment aims to “strengthen HBM competitiveness and explore opportunities to enter new markets.” The Indiana packaging plant is expected to handle the large-scale HBM packaging demand. Regarding “exploring opportunities to enter new markets,” some speculate that Kwak is preparing to enter the advanced post-processing semiconductor packaging market. SK hynix is already known for its strength in HBM packaging. HBM is a memory semiconductor created by stacking multiple DRAM layers, and HBM packaging refers to the technology of integrating the stacked DRAM into a single unit. SK hynix developed the industry’s first "Advanced MR-MUF" packaging technology to produce higher-performing HBM. This packaging expertise enabled the company to secure NVIDIA’s HBM certification ahead of competitors. However, beyond HBM packaging, Kwak has been investing for a long time in advanced packaging technologies used in AI chips and other applications. In 2021, the company highlighted “Fan-Out Wafer Level Package (FO-WLP)” as a future growth engine that would contribute to revenue outside of HBM packaging. FO-WLP is a packaging method that directly attaches solder balls (input/output terminals) to a chip without an intermediary substrate. This reduces wiring length, decreases package thickness, and enhances performance. An SK hynix representative stated, “FO-WLP is used for device packaging. Foundry companies are actively developing post-processing technologies to expand the market, and SK hynix is also strengthening infrastructure investments in FO-WLP technology for long-term growth.” The packaging business required to complete AI chips produced by companies such as NVIDIA is primarily handled by a few foundries, such as TSMC and Samsung Electronics, and by semiconductor post-processing specialists known as OSAT (Outsourced Semiconductor Assembly and Test) firms. For instance, NVIDIA supplies HBM from SK hynix for AI chip production, while TSMC completes the AI chips by packaging the HBM and GPUs into a single unit. The semiconductor packaging and post-processing market is projected to grow rapidly alongside the explosive growth of the AI market. According to market research firm Global Information, the OSAT market is expected to grow from $43.36 billion (approximately KRW 62.86 trillion or US$ 45.4 billion) this year to $71.21 billion (approximately KRW 103.26 trillion or US$ 74.8 billion) by 2029. However, SK hynix is not expected to compete directly with TSMC in the post-processing packaging sector. TSMC has established itself as a close partner of SK hynix alongside NVIDIA, and the companies are likely to maintain their cooperative relationship. Additionally, TSMC possesses world-class technology in both foundry and post-processing packaging and is reportedly developing next-generation Fan-Out Panel Level Package (FO-PLP) technology. Analysts suggest that Kwak is eyeing the post-processing packaging market currently dominated by OSAT companies. According to market research firm TechSearch, the combined revenue of the top 20 global OSAT companies reached $35.37 billion (approximately KRW 48.76 trillion or US$ 36.6 billion) last year, with Taiwanese companies accounting for 46.2% of the market share. Korea’s share stood at only 4.3%. An SK hynix representative stated, “It is true that we are preparing technologies such as FO-WLP, but nothing specific has been decided regarding commercialization at this time.” #KwakNohJung #SKHynix #HBM #AdvancedPackaging #FOWLP #IndianaPlant #SemiconductorPostProcessing #OSATMarket #AITechnology #TSMC
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- Galaxy S25 Faces Record-High Costs: Roh Tae-moon Hit by Soaring Exchange Rates and Chip Price Hikes
- Roh Tae-moon, President and Head of Samsung Electronics' Mobile eXperience (MX) Division, is expected to face challenges securing profitability for the Galaxy S25 series due to a "record-high" increase in production costs. Roh is considering shifting part of the cost burden to consumers by increasing the launch price of the Galaxy S25. However, given the recent price hikes for certain previous models, concerns are rising about greater consumer resistance. The memory semiconductor market is also projected to continue its downward price trend in 2025. If the MX Division, which has served as a stabilizing factor during semiconductor downturns, also struggles, analysts suggest that Samsung Electronics may face a “perfect storm.” According to industry sources on the 20th, Samsung Electronics is expected to hold its "Samsung Galaxy Unpacked" event as early as January 22, 2025, to unveil the Galaxy S25 series. Production costs, however, are anticipated to rise more than ever. The sharp rise in the won-to-dollar exchange rate, which has approached KRW 1,450 per USD, has increased the costs of importing key components. In Q3 2024, the cost of raw materials purchased by Samsung Electronics’ Device eXperience (DX) Division amounted to KRW 52.5743 trillion (US$ 37.8 billion), representing a 5.7% increase compared to the same period in 2023. This rise is attributed to the higher exchange rate. An industry official stated, “The recent rapid rise in the won-to-dollar exchange rate has significantly increased the cost of smartphone components, which are paid for in dollars. Unlike semiconductors, the proportion of components in smartphone production costs is very high, making the exchange rate increase particularly detrimental.” The production cost of the Galaxy S series is estimated to account for nearly 40% of its launch price. Another burden is the growing reliance on Qualcomm. Unlike its predecessor, the Galaxy S25 series is expected to source its mobile processor (AP), the "Snapdragon 8 Elite," entirely from Qualcomm. Previously, Samsung’s in-house AP, Exynos, played a significant role in reducing production costs and negotiating AP prices with Qualcomm. However, due to delays in Exynos development this year, it could not be adopted. The Exynos 2400, used in the Galaxy S24, was reportedly over $60 cheaper than the Snapdragon 8 Gen 3. Moreover, the Snapdragon 8 Elite, slated for the Galaxy S25, is expected to cost 20–30% more than its predecessor, the Snapdragon 8 Gen 3. Roh Tae-moon has long been regarded as a “master of cost reduction.” Despite steady increases in smartphone component prices, he maintained an operating profit margin close to double digits through supply chain diversification and resource efficiency. In fact, the MX Division posted operating profit margins of 11.5% in 2020, 12.5% in 2021, 9.4% in 2022, and 11.6% in 2023. However, due to rising component prices and intensifying global competition, it is widely predicted that maintaining a 10% operating profit margin in 2024 and 2025 will be challenging. As a result, Roh is reportedly considering a price increase for the Galaxy S25. Yet, as prices for the Ultra model and the 512GB Standard/Plus models were already slightly increased with the Galaxy S24, there is significant concern about the risks of consecutive price hikes. Samsung has set a sales target of 14.8 million units for the Galaxy S25 series, raising the goal by approximately 3 million units compared to its predecessor. However, raising prices could lead to a decline in sales volume, posing another challenge. If the MX Division’s profitability worsens, it could significantly impact Samsung Electronics’ overall performance. The semiconductor-focused DS Division is also facing difficulties in achieving expected profitability due to falling memory prices. Major domestic securities firms have begun to revise Samsung Electronics’ 2025 operating profit projections downward. Kim Kwang-jin, a researcher at Hanwha Investment & Securities, stated, “2025 will be a challenging year for both the DS Division, which has the highest profit contribution, and the MX Division. The MX Division must address potential profitability pressures stemming from weak front-end demand and rising component costs.” #RohTaeMoon #SamsungElectronics #GalaxyS25 #smartphonecosts #MXDivision #Qualcomm #Snapdragon8Elite #Exynos #operatingprofit #semiconductorindustry
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- NCSoft's First Foray into China’s Mobile MMORPG Market: Can Kim Taek-jin Restore Lost Pride?
- Kim Taek-jin, co-CEO of NCSoft, is making his first attempt to enter the Chinese mobile game market with two mobile MMORPG titles. With the domestic market for mobile MMORPGs, including the company’s flagship Lineage series, reaching saturation, Kim appears determined to seize new growth opportunities in China, the world’s second-largest gaming market. While most of NCSoft’s revenue has traditionally come from South Korea and Taiwan, the company seems to have concluded that expanding into overseas markets, including China, is essential to resolve its growth stagnation. According to reports from the gaming industry on the 19th, NCSoft is expected to expand its partnership with Tencent Games, the gaming division of Chinese IT giant Tencent, to compete in the Chinese market. On the 18th, NCSoft signed an agreement with Tencent Games and Xiaoming Taiji for the Chinese release of its mobile MMORPG Lineage2M. The game received a foreign game license (service permit) from the Chinese government on October 28 this year. Its Chinese service name is Tiantang 2: Mengyue (天堂2: 盟約). In August, the company conducted a second closed beta test (CBT) for its mobile MMORPG Blade & Soul 2, which is also being serviced locally by Tencent Games. Tencent Games introduced the title as one of its key upcoming releases during its Spark 2024 event in May. Its Chinese service name is Jianling 2 (剑灵 2). While NCSoft has previously serviced PC MMORPGs such as Lineage and Lineage 2 in the Chinese market, this marks the company’s first full-scale entry into the mobile MMORPG market. In September, during a visit to South Korea by Tencent Games executives, NCSoft reportedly provided detailed presentations on its upcoming new games, which are scheduled for release next year and beyond. This raises the possibility of a Chinese release for titles like AION 2, a large-scale MMORPG planned for release in 2025; Project TAC, a real-time strategy (RTS) game; Project LLL, a looter-shooter game; and Project Skyline, an MMORPG based on Sony’s action-adventure IP Horizon. The decision to pursue this strategy in China seems to reflect the strong will of Kim Taek-jin, NCSoft’s Chief Creative Officer (CCO), who oversees the company’s game development and service operations. During a media event on March 20, related to the appointment of co-CEO Park Byung-moo, Kim stated, “Recently, the company has been developing games aimed at overseas markets while establishing global partnerships. In addition to the Chinese release of Blade & Soul 2 and our joint development efforts with Sony, we are reviewing opportunities to expand our business with various global players.” In the third quarter of 2024, NCSoft’s revenue from Asia, including South Korea and Taiwan, accounted for approximately 83.3% of its total revenue. Additionally, mobile MMORPG revenue made up 63.0% of the total. This figure excludes revenue from other mobile games and PC online games serviced by NCSoft, indicating that the company’s performance is heavily concentrated in mobile MMORPGs within specific regions. The domestic mobile MMORPG market has become oversaturated, with competition growing increasingly intense and profitability declining. According to data analytics platform Mobile Index, Lord Nine, a mobile MMORPG launched by Smilegate on July 12, pushed Lineage2M and Lineage W out of the top 10 revenue rankings in August and September, respectively. Next year, new titles such as Nexon’s Fantasy Tiger Online, Netmarble’s RF Online Next and The Red: Heir of Blood, and Kakao Games’ Project Q and Chrono Odyssey are expected to launch. Given this competitive landscape and declining usage rates in South Korea, Kim appears to be focusing on China’s mobile game market, which has shown continuous growth for two consecutive years. According to the 2024 Game User Survey published on November 16 by the Ministry of Culture, Sports, and Tourism and the Korea Creative Content Agency, the game usage rate among 10,000 respondents over the past year was 59.9%, a 3 percentage point decrease from 2023. Meanwhile, according to the China Game Industry Development Report 2024, published on November 13 by the Chinese Academy of Social Sciences’ Social Sciences Academic Press, China’s gaming market is expected to generate KRW 64.2673 trillion (USD 46.3 billion) in revenue and have 674 million users this year. This represents a 7.53% increase in revenue and a 0.94% increase in the number of users compared to 2023. Mobile game revenue is estimated to reach KRW 46.9778 trillion (USD 33.9 billion), accounting for 73% of the total market, a 5% increase from last year. An industry official commented, “NCSoft has achieved explosive growth through mobile MMORPGs in the domestic market, giving the company a strong advantage in this genre. Given its success in markets like Taiwan and other Chinese-speaking regions, there is a high likelihood that it will also succeed in mainland China.” #NCSOFT #KimTaekjin #TencentGames #Lineage2M #BladeAndSoul2 #ChineseMarket #MobileMMORPG #globalexpansion #gameindustry #AION2 #ProjectLLL #ProjectSkyline
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- Jeong Chul-dong’s Transparent OLED Bet: High Hopes Amid Price Concerns and Chinese Competition
- LG Display is accelerating its full transition to the OLED business, with CEO Jeong Chul-dong placing a major bet on the world’s first commercialization of transparent OLED displays. LG Display aims to secure dominance in the transparent OLED market, projected to grow to KRW 12 trillion (USD 8.7 billion) by 2030, as it begins selling TVs featuring its transparent OLED panels. However, concerns remain over the high price of transparent OLED technology and rapid advancements by Chinese competitors. On the 19th, LG Electronics announced the launch of the world’s first transparent OLED TV. Pre-orders began on the 18th in North America, with plans to gradually roll out the product in Europe and South Korea. CEO Jeong Chul-dong is advancing LG Display’s OLED-focused strategy, highlighted by the sale of the company’s last large-scale LCD plant to China’s CSOT. This move is seen as an effort to leverage LG’s technological edge to dominate the market. According to global consulting firm Boston Consulting Group (BCG), the global transparent OLED market is expected to grow from KRW 3 trillion (USD 2.2 billion) in 2025 to KRW 12 trillion (USD 8.7 billion) in 2030, a fourfold increase. The South Korean government is also increasing support for transparent OLED displays. In May, the Ministry of Trade, Industry, and Energy designated transparent, extended reality (XR), and automotive displays as three national advanced display products and announced KRW 74 billion (USD 53.4 million) in funding. Additional support measures include pilot projects, tax credits, and regulatory easing. LG Display is recognized as the leader in transparent OLED technology. The company showcased its latest transparent OLED display innovations earlier this year at CES 2024, the world’s largest IT and electronics exhibition, and at the Korea Display Industry Exhibition 2024, held in August at COEX in Seoul, attracting significant market attention. Competitor Samsung Display possesses transparent microLED display technology. At CES 2024 in January, Samsung Display introduced its transparent microLED panels, reportedly priced at over KRW 100 million (USD 72,500). In comparison, LG Electronics' transparent "Signature OLED T" TV, which uses LG Display’s transparent OLED panel, is priced at approximately USD 60,000 (KRW 87 million). LG Display is primarily targeting the business-to-business (B2B) market for transparent OLEDs. According to the company, transparent OLED products can be applied to subway windows, building glass windows, store automatic doors, museums, and real-time automatic translation devices. In April, LG Display supplied a 55-inch transparent OLED panel for a pilot project on the windows of the GTX-A metropolitan express train in South Korea. Although CEO Jeong has successfully commercialized transparent OLED displays and is pushing for market dominance, concerns remain. The technology remains expensive, and China is rapidly closing the gap. An industry insider stated, “The price of transparent OLED displays and TVs is still too high, making it unclear how much demand there will be. However, as time goes on and the market expands, prices are likely to decrease.” Chinese display manufacturers BOE and Skyworth also unveiled transparent OLED technology in January. While their products were criticized for lower transparency and quality compared to LG Display’s, their possession of the technology was confirmed. Although a technology gap still exists, China, which overtook Korea in the LCD market, is also rapidly catching up in OLED technology. In Q1 2024, China surpassed Korea in global OLED market shipment share, holding 50.5% compared to Korea’s 48.2%. However, in Q2, Korea reclaimed the top spot with a slight lead, recording 49.9% compared to China’s 49%. China possesses both transparent microLED and transparent OLED technologies. Leveraging its LCD expertise, China has already introduced various transparent microLED products for advertising and exhibition purposes. According to a report published in September by the U.S. non-profit think tank Information Technology and Innovation Foundation (ITIF), China’s display capital expenditure (CAPEX) share is expected to reach 85% by 2027. #LGDisplay #JeongChuldong #transparentOLED #OLEDmarket #LGElectronics #Chinesecompetition #technologicalleadership #CES2024 #microLED #displayindustry #globalmarket
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- Amid Lotte Group's Liquidity Concerns, Lotte E&C's Financial Recovery Highlights 'Firefighter' Park Hyun-chul
- Lotte E&C’s improving financial stability is expected to play a significant role in alleviating market concerns about liquidity within the Lotte Group. Park Hyun-chul, Vice Chairman and CEO of Lotte E&C, who was brought in to resolve the company’s prolonged liquidity crisis, is receiving credit for his efforts to improve the financial structure. On November 19, Lotte Chemical, Lotte E&C’s parent company, will hold a bondholder meeting at Lotte World Tower in Songpa-gu, Seoul. The bondholder meeting was triggered by an event of default (EOD) that occurred on certain public bonds issued by Lotte Chemical. If an event of default is declared, creditors gain the right to demand immediate repayment, and the debtor loses the right to use the loan until maturity. Lotte Chemical aims to negotiate amendments to bond covenants during the meeting to prevent bondholders from declaring an event of default. However, the securities and investment banking sectors anticipate that bondholders will not declare an event of default, as Lotte Group has been working to dispel liquidity concerns at the group level. Lotte Group also entered into a payment guarantee agreement worth KRW 2.5 trillion (USD 1.8 billion) with four major commercial banks (KB Kookmin, Shinhan, Hana, and Woori). This payment guarantee virtually eliminates the risk of non-payment for Lotte Chemical bonds. For this payment guarantee agreement, Lotte Group reportedly provided Lotte World Tower—its symbolic asset with a current value of KRW 6 trillion (USD 4.3 billion)—as collateral. Lotte Group plans to use the Lotte Chemical bondholder meeting as an opportunity to completely eliminate financial covenants related to events of default and put liquidity concerns to rest. The group is also taking legal action, such as reporting to investigative authorities, to counter market rumors such as “Lotte Group could disband” and block any further spread of financial instability concerns. While debates continue in the market about the financial stability of Lotte Chemical and the group as a whole, Lotte E&C appears to have distanced itself from the controversy. Lotte E&C has faced liquidity challenges related to project financing (PF) since 2022, stemming from the “Gangwon Jungdo Development Corporation rehabilitation case,” commonly referred to as the Legoland incident. Park, known as a financial expert within Lotte Group, was appointed to resolve Lotte E&C’s crisis in December 2022. Thanks to Park’s efforts, Lotte E&C has achieved visible improvements in its key financial indicators this year. According to Lotte E&C’s Q3 2024 business report, its PF guarantee volume stood at KRW 4.3113 trillion (USD 3.1 billion) as of the end of September, a 20.2% decrease from KRW 5.4 trillion (USD 3.9 billion) at the end of 2023. Its borrowing levels have also decreased. Lotte E&C’s borrowings and bonds amounted to KRW 2.379 trillion (USD 1.7 billion) in Q3 2024, representing a 15.3% (KRW 430.6 billion or USD 310.5 million) reduction compared to KRW 2.809 trillion (USD 2 billion) at the end of 2023. The debt-to-equity ratio also dropped from 235% at the end of 2023 to 217% in Q3 2024. The success of Lotte E&C’s financial restructuring efforts has also had a positive impact on Park’s tenure. Despite severe headwinds in the construction industry this year, which resulted in leadership changes at 7 of the top 10 construction companies, Park successfully secured his reappointment. Park is expected to intensify efforts to further improve the financial structure in 2025. During a corporate briefing for institutional investors following the November 29 executive reshuffle announcement, Lotte Group unveiled its plan to reduce Lotte E&C’s debt by KRW 1 trillion (USD 721 million), lowering its debt-to-equity ratio to 187.7% by the end of this year. The group aims to increase cash assets to KRW 1.3 trillion (USD 940 million) and reduce borrowings to KRW 1.9 trillion (USD 1.4 billion). It also plans to reduce contingent liabilities from KRW 3.66 trillion (USD 2.6 billion) in 2024 to KRW 2.47 trillion (USD 1.8 billion) in 2025. Through guarantees from the Housing and Urban Guarantee Corporation (HUG), the final target is to manage contingent liabilities to below KRW 2 trillion (USD 1.4 billion). #LotteE&C #ParkHyunchul #LotteGroup #financialstability #liquidityimprovement #PFguarantees #debtmanagement #constructionindustry #LotteChemical #businessrestructuring
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- GS E&C’s Heo Yoon-hong Delivers Solid Results, Focuses on Stability with Restructuring
- Heo Yoon-hong, President and CEO of GS Engineering & Construction (GS E&C), has demonstrated solid performance in his first year in office while maintaining a cautious management approach. Heo's focus on strengthening internal stability in the recent organizational restructuring suggests that he will continue prioritizing stability and building customer trust next year. According to industry sources on the 18th, Heo has achieved this year’s order target early, significantly improving GS E&C’s outlook for future performance. GS E&C secured KRW 12.961 trillion in new orders as of the third quarter. In the fourth quarter, GS E&C announced major contracts, including the Northeast Asia LNG Hub Terminal Phase 1 (KRW 587.9 billion), the Sewoon 5-1, 3 Redevelopment Project (KRW 424 billion), the Ichon Hangaram Remodeling Project (KRW 594.8 billion), and the Melbourne Circular Railway Project in Australia (KRW 520.5 billion). Excluding smaller projects that fall below the disclosure threshold, fourth-quarter orders alone totaled KRW 2.1 trillion. This brings GS E&C’s total new orders this year to over KRW 15 trillion, far surpassing its annual target of KRW 13.3 trillion. This marks a significant rebound after missing last year’s KRW 14.5 trillion target, achieving only KRW 10.188 trillion, which was nearly 30% short of expectations. Many attribute GS E&C’s underperformance in 2023 to the collapse of an underground parking lot at an apartment complex in Incheon’s Geomdan district in April. Overcoming this setback within a year, GS E&C has successfully recovered its order performance. A key highlight of this year’s results is the balanced order intake across domestic and international markets. GS E&C secured KRW 6.366 trillion domestically and KRW 6.595 trillion overseas as of the third quarter. Overseas orders significantly exceeded those of previous years, with KRW 2.333 trillion in 2022 and KRW 2.465 trillion in 2023. While GS E&C’s overseas revenue accounted for 20% in 2022 and 19% in 2023, it stood at 18% in the first three quarters of 2024. With increased overseas orders, the regional revenue mix is expected to diversify further. GS E&C’s financial performance this year is also expected to show visible improvement. While the company is unlikely to meet its annual revenue target of KRW 13.5 trillion, with estimates at KRW 12.766 trillion according to financial data provider FnGuide, operating profit is projected to rebound into the black. GS E&C’s operating profit is forecast at KRW 340.2 billion, a sharp recovery from last year’s operating loss of KRW 387.9 billion. In 2023, the company incurred significant costs, including KRW 552.4 billion in reconstruction expenses following the Geomdan accident and quality control and safety enhancement costs in the fourth quarter. Despite the successful turnaround in orders and performance, Heo’s organizational restructuring, effective January 1, 2024, reflects his emphasis on internal stability rather than aggressive expansion. GS E&C will reduce its business divisions from six to three, retaining the Building & Housing Division, Infrastructure Division, and Plant Division, which form the core of its construction operations. The New Business Division, Green Business Division, and Australia Business Division will be integrated into the remaining divisions or reorganized into smaller units. The changes to the New Business Division highlight Heo’s current management principle of focusing on core stability. GS E&C had elevated its New Business Division from a task force in 2020, marking it as the first among major construction firms to establish a dedicated division for new business exploration. Notably, Heo had directly overseen this division since 2018 when he served as Executive Vice President. In pursuit of organizational efficiency, Heo has also streamlined the company’s structure. GS E&C has simplified its management hierarchy from a three-tier system of headquarters, groups, and departments to a two-tier structure of divisions and units. Executive ranks have also been reduced to three levels—President, Vice President, and Executive Director—by merging Senior Vice President and Vice President roles. Regarding the changes, GS Group stated, “As GS E&C focuses on overcoming challenges like the construction market downturn, the restructuring will allow for quicker responses to business environment changes through integration and simplification. Faster communication across all levels will enable GS E&C to focus more on its core operations.”
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- Samsung Stocks Diverge: Restructuring Opportunity for Lee Jae-yong?
- Samsung Group’s governance restructuring may be triggered as the stock prices of Samsung Electronics and Samsung Biologics show diverging trends. There is growing analysis that if Samsung C&T swaps its shares in Samsung Biologics for Samsung Electronics shares currently held by Samsung Life Insurance and Samsung Fire & Marine Insurance, Chairman Lee Jae-yong could significantly increase his control over Samsung Electronics. This could also initiate efforts to transform Samsung C&T into a holding company. According to industry sources on the 18th, Samsung Group is expected to actively leverage the recent decline in Samsung Electronics’ stock price and the sharp rise in Samsung Biologics’ stock price to address its governance structure. Samsung Electronics’ stock price has fallen by more than 30% this year. On November 15, Samsung Electronics announced plans to repurchase KRW 10 trillion worth of treasury shares over the next year, with KRW 3 trillion to be acquired and canceled within three months. Despite this, the stock price has remained stagnant. In contrast, Samsung Biologics’ stock price has surged by more than 23% this year and has climbed close to 150% over the past five years. Meanwhile, Samsung Electronics’ stock price has dropped approximately 2% during the same period. While this trend is concerning for Samsung Electronics shareholders, it presents an opportunity for Chairman Lee, who needs to strengthen his control over the company. Currently, Lee Jae-yong and his family directly hold less than 5% of Samsung Electronics’ shares. Lee owns 1.63%, Hong Ra-hee, former director of Samsung Museum of Art (Leeum), holds 1.64%, Lee Boo-jin, president of Hotel Shilla, owns 0.80%, and Lee Seo-hyun, president of Samsung C&T, holds 0.79%—a combined total of 4.86%. In comparison, Lee’s stake in Samsung C&T stands at 19.06%. Samsung C&T is the largest shareholder of Samsung Life Insurance, which holds 8.51% of Samsung Electronics shares. Samsung C&T also directly owns 5.01% of Samsung Electronics. Essentially, Lee controls the group through Samsung C&T. However, the connection between Samsung C&T and Samsung Electronics remains weak, raising concerns that Samsung Electronics may be vulnerable to hostile takeovers. Foreign investors own approximately 51% of Samsung Electronics, and their future actions cannot be ruled out. In the past, BlackRock in 2018 and Elliott Management in 2016 called for improvements in Samsung Electronics’ governance structure. If Samsung C&T leverages its stake in Samsung Biologics, these vulnerabilities can be partially addressed. Samsung C&T holds 43.06% of Samsung Biologics, currently valued at approximately KRW 30 trillion. If Samsung C&T swaps these shares for Samsung Life Insurance’s 8.51% stake (worth KRW 27 trillion) and Samsung Fire & Marine Insurance’s 1.49% stake (worth KRW 4.8 trillion) in Samsung Electronics, Samsung C&T’s direct ownership in Samsung Electronics could jump to 15%. An industry official commented, “The decline in Samsung Electronics’ stock price benefits the owner family’s efforts to strengthen their control over the company. Investment banks predict that Samsung C&T may acquire a portion of Samsung Life Insurance’s stake or swap Samsung Biologics shares for Samsung Electronics shares.” The official also noted, “The decision to retain Vice Chairman Chung Hyun-ho, head of the Business Support Task Force (TF), appears to align with next year’s governance restructuring plans.” However, converting Samsung C&T into a holding company will require significant capital and may take longer than expected. Under the Fair Trade Act, holding companies are required to own at least 30% of their subsidiaries. Even with the proposed share swaps, Samsung C&T would need an additional KRW 40 trillion to meet the requirement. The law provides a two-year grace period for completing the conversion. If the requirements are not met within two years, the Fair Trade Commission can grant an additional two-year extension upon approval. Some analysts suggest that Samsung Group may focus on further boosting Samsung Biologics’ corporate value before advancing its governance restructuring plans. Kim Soo-hyun, a researcher at DS Investment & Securities, stated, “Inheritance tax burdens for the Samsung owner family could weaken their control over Samsung Electronics. Strengthening Samsung C&T’s and the owner family’s control over Samsung Electronics, along with fostering Samsung Biologics, has become a critical group-wide task.” #SamsungGroup #SamsungElectronics #SamsungBiologics #LeeJaeyong #GovernanceRestructuring #SamsungC&T #ShareSwap #SamsungLife #CorporateGovernance #FairTradeAct
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- Hanwha Ocean Delays Ship Deliveries; Stabilization Key for Kim Hee-chul
- Stabilizing the shipyard's production process is expected to be Hanwha Ocean CEO Kim Hee-chul's top priority for next year. Hanwha Ocean has recently struggled to meet delivery deadlines for container ships under construction, repeatedly extending the timelines. These contracts were signed during the Daewoo Shipbuilding & Marine Engineering (DSME) era. The company explained that delays occurred due to the aftermath of subcontractor union strikes, design changes requested by shipowners, and material supply delays. Since Hanwha Group acquired DSME last year, the company has faced criticism for failing to stabilize production at its shipyards. Consequently, while competitors like HD Hyundai Heavy Industries and Samsung Heavy Industries are achieving record performance amid the "shipbuilding boom," Hanwha Ocean's stagnating results have been attributed to these production issues. According to reports on the 17th, delivery schedules for some vessels ordered in 2021 are being delayed as their delivery deadlines approach. The company recently announced multiple delivery extensions for ships under construction. In October, it extended the delivery deadlines for four ultra-large LNG carriers and four container ships by five months and three months, respectively. On December 12, the company extended the final delivery schedule for six ultra-large LNG-fueled container ships by six months. The company stated that whether liquidated damages for delays will be incurred will be determined through negotiations with shipowners at the time of delivery. The scale of the delayed contracts is as follows: - **4 LNG carriers:** US$845.8 million (KRW 990 billion) - **4 container ships:** US$536.2 million (KRW 640 billion) - **6 LNG-fueled container ships:** US$993.8 million (KRW 1.12 trillion) A company representative told *Business Post*, “The October delays were caused by material supply delays and a temporary halt to lashing bridge installation due to safety inspections. The delays announced on December 12 stemmed from disruptions caused by subcontractor strikes two years ago during the DSME era, material delays, and shipowner-requested design changes.” During its Q3 earnings conference, the company explained, “The initial pre-erection processes (before block installation in the dock) are progressing as planned, but subsequent processes in the dock are slower than expected. However, we anticipate stabilization in the latter half of the year.” Shipbuilding processes are generally divided into pre-erection and post-erection stages, based on block installation. Pre-erection involves fundamental work, such as piping and electrical installations on ship blocks. Post-erection involves assembling these blocks in the dock, completing interior work, and launching the vessel. As of late November, Hanwha Ocean recorded orders worth US$8.15 billion (KRW 11.3 trillion), more than double last year’s US$3.52 billion (KRW 4.88 trillion). However, cumulative operating profit through Q3 remained at KRW 68.9 billion, with a net loss of KRW 51.2 billion. Without production stabilization, significant profit margin improvements next year appear uncertain. Other shipbuilders, such as HD Korea Shipbuilding & Offshore Engineering (HD Hyundai Heavy Industries, HD Hyundai Samho, and HD Hyundai Mipo) and Samsung Heavy Industries, have already stabilized their production processes and are benefiting from the shipbuilding boom. HD Korea Shipbuilding reported a cumulative Q3 operating profit of KRW 935 billion and net profit of KRW 727.5 billion. Samsung Heavy Industries achieved an operating profit of KRW 328.5 billion and net profit of KRW 153.2 billion. Addressing concerns that production delays may hinder next year’s results, a company representative asserted, “All processes are now in the normalization stage.” Oh Ji-hoon, an analyst at IBK Investment & Securities, predicted, “From 2025 onward, significant improvements are expected due to reduced costs from production disruptions, stabilization through foreign workforce integration, a decreasing proportion of loss-making container ship orders, and increased construction of high-value LNG carriers.” Born in 1964, Kim Hee-chul graduated from Seoul National University with a degree in Chemical Engineering. He joined Hanwha Chemical (now Hanwha Solutions) in 1988 and subsequently held key positions at Hanwha Total, Hanwha General Chemical, Hanwha Q Cells, Hanwha Energy, and Hanwha Impact before officially becoming Hanwha Ocean CEO in October. This year, Hanwha Ocean acquired wind power and plant businesses from Hanwha Group and acquired the Singapore-based offshore facility company Dynamac Holdings, signaling its entry into the marine and energy sectors. #HanwhaOcean #KimHeeChul #ShipbuildingDelays #LNGCarriers #ContainerShips #ProductionStabilization #KoreanShipbuilding #DaewooShipbuilding #HDHyundai #SamsungHeavyIndustries
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- Kim Sun-hee Faces First Crisis: "Rinse Water Incident"
- On the 17th, the retail industry cautiously predicted that Maeil Dairies would face inevitable damage to both its corporate image and performance due to the recent *"contaminated rinse water"* incident. According to Maeil Dairies, on September 19, during the production of the *“Maeil Original Milk 200ml Sterilized Mid-Pack”* at the Gwangju plant, a valve malfunction caused rinse water to mix into the product for one second. Although the number of affected products was reported to be about 50, Maeil Dairies decided to recall all 15,000 units produced on September 19. The retail industry believes that given the key demographics for dairy products, consumers will closely monitor the situation for some time. Milk products are primarily consumed by children, which makes customers especially sensitive to quality issues. Indeed, criticism of Maeil Dairies has already spread across online parenting communities. Comments include: *“This is a product where you insert a straw, so who would check inside before drinking?”*, *“I’m furious thinking my child could have drunk this”*, and *“I’m never buying Maeil Milk again.”* Approximately 60% of Maeil Dairies' total revenue comes from dairy products. If this incident leads to mistrust in Maeil products, a decline in sales will be unavoidable. However, some support Maeil Dairies on social media, acknowledging disappointment but praising the company for its relatively swift response. These voices of support offer a positive outlook for the company amid the crisis. Maeil Dairies' biggest concern is that the controversy may persist. Prolonged negative discussions could jeopardize fourth-quarter sales. Maeil Dairies has reported consistent annual revenue growth from 2017 through last year. Its cumulative revenue for the first three quarters of this year reached KRW 1.3506 trillion (US$ 974 million), a 0.7% increase compared to the same period last year. Given that revenue growth is already marginal, this quality scandal has cast doubt on Maeil Dairies’ ability to achieve its seventh consecutive year of growth. In response to consumer concerns, Maeil Dairies posted two public apologies: one on the 13th, signed by all employees, and another on the 16th, signed by Vice Chairman Kim Sun-hee. Despite these efforts, the controversy has not subsided. Convenience stores CU and Emart24, along with Lotte Mart, suspended sales of the sterilized mid-pack product on the 14th. GS25, Seven-Eleven, and Emart did not originally carry the product. This decision was not made at Maeil Dairies’ request. CU, Emart24, and Lotte Mart preemptively halted sales after being informed of the incident, citing consumer concerns. The timeline for resuming sales has not yet been decided. Although Seven-Eleven does not sell the specific product, it decided to discard inventory of the similarly packaged *“Maeil Original Milk 200ml”* product as a precaution. This incident presents a significant test of crisis management for Vice Chairman Kim Sun-hee, who has not faced such controversies in her 10-year leadership of Maeil Dairies. Kim Sun-hee is the cousin of Kim Jeong-wan, Chairman of Maeil Holdings and eldest son of founder Kim Bok-yong. She served as CEO of Maeil Dairies from 2014 before being promoted to Vice Chairman last year. Before joining Maeil Dairies in 2009, Kim worked in the financial industry, holding positions at BNP Paribas Seoul, Crédit Agricole Seoul as an analyst, and Citibank Korea as head of trust risk management. Many industry insiders believe her non-retail background has worked to her advantage. Since taking office, Kim launched the adult nutrition brand *"Selex"* and the plant-based product *"Almond Breeze,"* both of which became market leaders. Maeil Dairies previously faced a similar quality controversy in 2011. In March 2011, *Staphylococcus aureus*, a food poisoning bacteria, was detected in formula milk, leading to a recall. Additionally, some formula milk exported to China was deemed unsuitable and destroyed. In the aftermath, Maeil Dairies’ market share in the formula sector dropped by over 10 percentage points, with *Ildong Foodis* overtaking it for second place. #MaeilDairies #MilkRecall #RinseWaterIncident #KimSunHee #CrisisManagement #DairyIndustry #ConsumerTrust #ProductSafety #MaeilMilk #QualityScandal
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- Korean Air's Megacarrier Goal: Cho Won-tae Speeds Up Integration
- On the 17th, reports from the aviation industry indicated that Korean Air is accelerating preparations to reorganize after integrating Asiana Airlines as a subsidiary. Asiana Airlines will remain a subsidiary of Korean Air for two years, after which it will be fully merged once preparations are complete. Chairman Cho is tasked with achieving a seamless integration between the two airlines within this two-year window. In any merger and acquisition (M&A), integrating two distinct workforces into a single organization is a critical yet challenging task. If the respective organizations fail to blend and continue operating separately, the expected synergy of the integration will inevitably be reduced. Korean Air is dispatching employees to Asiana Airlines and initiating preliminary groundwork for the integration. With an extraordinary general shareholders' meeting scheduled for January 16 next year to appoint a new board of directors, Korean Air is expected to finalize the leadership structure and additional staffing for Asiana Airlines by the end of this year. Within the aviation industry, rumors are circulating that Korean Air has selected Song Bo-young, head of the passenger business division at Korean Air, as the new CEO of Asiana Airlines. However, large and small conflicts are anticipated during the process of uniting these two organizations, which have followed different operational paths. Asiana Airlines employees are reportedly most concerned about their positions and roles in the newly integrated company. Korean Air has repeatedly emphasized that there will be no artificial workforce restructuring, in an effort to alleviate these concerns. Nonetheless, retaining duplicate positions between the two companies would lead to inefficiencies, reducing the benefits of integration. Consequently, some overlapping personnel will need to be reassigned to other tasks, which could lead to dissatisfaction and disputes. Other sensitive issues include integrating different ranking systems, such as job grades for pilots and flight attendants, as well as aligning pay structures. Even minor matters may be perceived by Asiana employees as “high-handed behavior” from Korean Air or, conversely, as discrimination against Korean Air employees. This is why Chairman Cho is placing special emphasis on fostering a harmonious union between the two companies. In his first public message to employees after acquiring Asiana Airlines, Chairman Cho stated, “Korean Air and Asiana Airlines have truly become one family under the roof of the Hanjin Group. I have no doubt that we will become a reliable family and partners.” Winning consumer trust is also a priority. Consumers are concerned that the integration of the two major full-service carriers (FSCs) will reduce competition in the airline market, leading to higher fares and lower service quality. Recently, Korean Air faced consumer backlash and withdrew a plan to charge additional fees for preferred seats on domestic flights. Many consumers viewed this move as Korean Air attempting to maximize profits immediately after finalizing the acquisition of Asiana Airlines. The integration of Korean Air and Asiana Airlines' mileage programs is another highly sensitive issue for consumers. Since the value of the two companies' mileage programs does not perfectly align, any decision regarding the conversion ratio could prompt dissatisfaction among customers of one airline. Korean Air plans to submit a mileage integration plan to the Korea Fair Trade Commission within six months. △ Integration of Low-Cost Carriers (LCCs) Following the merger of the two major airlines, Chairman Cho also needs to integrate their respective low-cost carriers (LCCs). Under Korean Air, Jin Air, and under Asiana Airlines, Air Busan and Air Seoul have all come under the same umbrella. Reports indicate that Jeong Byeong-seop, head of Korean Air's passenger sales division, has been named as the new CEO of Air Busan, while Kim Jung-ho, senior manager at Korean Air, has been appointed as CEO of Air Seoul. The integration of these three airlines will create a dominant low-cost carrier that leads in terms of fleet size, revenue, and profitability. However, this process will require extensive efforts to unify organizational structures and corporate identities. Moreover, significant resistance to the integration exists in the Busan region, where Air Busan is based. Some local businesses and civic groups are concerned that the integration will result in the disappearance of Busan’s regional airline. On the 11th, the Civic Consensus for Future Society and the Gadeokdo Hub Airport Citizens’ Promotion Committee held a press conference at the Busan City Council briefing room. They stated, “To allow Air Busan to grow alongside the new Gadeokdo Airport in Gyeongnam, it must be separated from Korean Air and independently operated. If Air Busan remains integrated, or if the headquarters of the unified low-cost carrier is placed outside Busan, the region will be limited to short-haul routes under Incheon Airport's dominant system.” While many consider the demands for the separation and sale of Air Busan unrealistic, Korean Air cannot completely ignore regional sentiments. Korean Air believes that integrating Jin Air, Air Busan, and Air Seoul is essential to expanding fleet size and achieving cost competitiveness for the survival and sustainable growth of its low-cost carriers. A Korean Air official stated, “Specific plans and schedules for the integrated low-cost carrier will be determined through consultations among the three airlines.” #KoreanAir #AsianaAirlines #AviationMerger #ChairmanCho #LowCostCarriers #AirBusan #AirSeoul #JinAir #MileageIntegration #AirlineIndustry
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- Choi Won-seok Secures Approval Under KT Leadership, Boosts Business Diversification
- BC Card CEO Choi Won-seok is set for a fourth term as the company's CEO after being recommended as the sole candidate by BC Card’s Executive Candidate Recommendation Committee, according to the card industry on the 17th. With his current term ending this month, this effectively confirms his reappointment. Choi Won-seok first became BC Card’s CEO in March 2021. He successfully extended his tenure in March and December of 2023, with terms of nine months and one year, respectively. His final reappointment will be decided at the regular shareholders' meeting expected in March 2025. However, as the sole candidate, it is widely anticipated that he will begin his fourth term in January 2025 unless an unexpected event arises. Despite BC Card's strong performance this year, the possibility of Choi’s reappointment was not always seen as guaranteed within the card industry. This skepticism stemmed from KT CEO Kim Young-seop’s reform initiatives since taking office in November 2023, which were expected to extend to KT’s subsidiaries, including personnel reshuffling of CEOs. KT has been implementing large-scale workforce reductions through transfers and voluntary retirements since November this year. In addition, organizational efficiency measures, including the merger of certain business divisions, have been underway. KT had previously replaced CEOs of subsidiaries such as KT Studio Genie and KT M Mobile. Moreover, major credit card company CEOs expected to be reappointed at the end of this year were mostly replaced. Shinhan Card, Samsung Card, KB Kookmin Card, and Hana Card all appointed new CEOs in the past month. However, Choi managed to avoid KT’s sweeping reform trends and further solidified Kim’s trust by securing his reappointment. The successful diversification strategy leading BC Card’s sustainable growth is regarded as a key reason behind Choi’s continued tenure. The primary focus of this year’s CEO appointments in the card industry has been “new growth drivers.” This reflects the urgency of discovering new revenue streams as the profitability of the core credit card business declines. Since his appointment in 2021, Choi has prioritized finding new growth engines. BC Card was particularly vulnerable to lower merchant fees because purchasing operations accounted for nearly 90% of its total revenue. To address this, Choi launched initiatives such as developing “proprietary cards,” diversifying client companies, and expanding overseas payment networks. These strategies have produced significant results. The share of purchasing revenue in BC Card’s total income decreased from 87.4% at the end of 2020 to 80.0% in the third quarter of this year. During the same period, the share of proprietary card fees increased from 0.1% to 0.9%. Interest income from card loans and installments also accounted for 2.7% of total revenue in the third quarter of 2023. BC Card’s “BC Baro K-Pass Card” has driven rapid membership growth, boosting the company’s standing in the credit card industry. Previously, BC Card was often excluded when discussing major credit card companies, but it is now considered a competitor alongside the top eight credit card firms. BC Card also overcame the challenge of losing its largest client, Woori Card, which switched payment networks in July 2022. Despite this, the company has maintained its growth momentum. In the third quarter of 2024, BC Card reported cumulative net profits of KRW 129.3 billion (US$ 93.3 million), an 85.8% increase from the previous year. Choi is expected to continue stabilizing BC Card’s revenue base. The company also anticipates generating additional income from its credit information business. This opportunity arises from the recent implementation of a revised Enforcement Decree of the Specialized Credit Finance Business Act, which includes corporate credit inquiry as an ancillary business for specialized credit finance companies. With its existing license for corporate information inquiry, BC Card can immediately enter this market. Choi Won-seok has extensive experience in the finance industry, having worked at Korea Long Term Credit Bank, Samsung Securities, and FnGuide as its Chief Financial Officer (CFO). He also served as CEO of FnRatings before being appointed CEO of BC Card. BC Card’s Executive Candidate Recommendation Committee stated, “Choi Won-seok possesses the financial expertise, leadership, and innovative mindset necessary to drive BC Card’s vision for development, sustainability, and sound management, making him fully qualified for the role.” #BCard #CEOChoiWonSeok #KTGroup #CreditCardIndustry #NewGrowthEngines #FinancialReform #CardCompanyLeadership #CorporateCreditInquiry #RevenueDiversification #BCBaroKPassCard
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- Broadcom Rises as NVIDIA Rival, Samsung's Jun Young-hyun Sees HBM Opportunity
- Samsung Electronics is poised to capitalize on Broadcom's rise as a key competitor to NVIDIA in the AI semiconductor market, potentially becoming a major supplier of high-bandwidth memory (HBM) for Broadcom’s AI chips. SK Hynix primarily supplies its HBM products to NVIDIA, leaving Samsung with more capacity to cater to Broadcom’s growing needs. Vice Chairman Jun Young-hyun of Samsung’s semiconductor (DS) division is prioritizing HBM competitiveness, with expectations that Samsung will find a breakthrough through customized AI semiconductors driven by U.S. tech giants like Broadcom. Broadcom's recent emergence in AI semiconductors has led to contrasting stock trends. On June 13 (U.S. time), Broadcom’s stock surged 24.43%, followed by another 10.42% rise on June 16, ranking it 9th in global market capitalization. In contrast, NVIDIA’s stock declined 2.25% and 2.29% on the same days. Broadcom CEO Hock Tan stated during the June 12 earnings call that the company is developing AI chips with three major cloud providers and foresees significant AI opportunities over the next three years. While traditionally focused on telecommunications chips and data center solutions, Broadcom is now excelling in Application-Specific Integrated Circuits (ASICs)—customized chips offering lower cost and higher energy efficiency compared to GPUs. Broadcom has designed AI accelerators like Google’s TPU and Meta’s MTIA, and reports suggest it is working with Apple on AI chips. Broadcom’s new ASIC for Google is expected to incorporate the latest HBM3E memory. Samsung and SK Hynix have provided HBM3E samples for testing, with Samsung being the most likely supplier due to SK Hynix’s production commitments to NVIDIA until 2025. Starting in 2025, higher-end HBM3E memory is expected to be widely adopted for AI chips, opening new opportunities for Samsung. JP Morgan estimates Broadcom holds a 35% share of the global high-performance ASIC market, followed by Marvell with 12%. Samsung is preparing for HBM4 mass production by the second half of 2025, with a dedicated *D1c (10nm-class 6th generation)* production line in place. Industry experts believe U.S. tech companies' demands for customized HBM solutions will reshape the market, and the ability to deliver tailored products swiftly and accurately will determine success. Samsung Vice Chairman Jun Young-hyun’s decision to establish an HBM development team in July reflects the urgency to regain competitiveness. Samsung aims to simultaneously strengthen its technological edge and rebuild market confidence through HBM4. Kiwoom Securities analyst Park Yu-ak stated, *“Rising demand for ASIC chips from AWS, Google, and Meta will benefit Samsung's HBM business. Samsung must secure its market position through HBM4 development and advanced D1c process technology.”* #SamsungElectronics #Broadcom #HBM #AIChips #NVIDIA #ASIC #HBM4 #SKHynix #SemiconductorMarket #TechInnovation #JunYounghyun
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- Han Dong-hoon Resigns Amid 'Impeachment Responsibility' Pressure, Faces Resistance from PPP Mainstream on Path to Presidential Bid
- Han Dong-hoon, the former leader of the People Power Party (PPP), is facing significant backlash from the party's core conservative base, which could pose challenges for his future political career. On December 16, Han held a press conference at the National Assembly and announced his resignation, saying, "I apologize to all citizens who suffered under the state of emergency." He added, "I tried my best to find a better path for this country rather than impeachment, but ultimately, I failed. It is entirely my shortcoming." Just two days earlier, on December 14, Han had shown no intention of stepping down. However, the collapse of the party leadership, with resignations from key pro-Yoon figures Kim Min-jeon, In Yo-han, and Kim Jae-won, as well as pro-Han members like Jang Dong-hyuk and Jin Jong-oh, left him no choice. According to the PPP's internal rules, if four elected Supreme Council members resign, the Supreme Council is dissolved, and the party transitions to an Emergency Response Committee. Han's support for President Yoon Suk-yeol's impeachment intensified criticism from the dominant pro-Yoon faction and senior political figures considered as presidential contenders, adding pressure for his resignation. Hong Joon-pyo, the mayor of Daegu, criticized Han on his Facebook page, saying, "The first thing we must do after the impeachment is clean up the party. Han Dong-hoon and his lemmings must go. They are traitors disrupting party unity under the guise of conviction and are Democratic spies." Na Kyung-won, a PPP lawmaker, echoed similar sentiments, saying, "I fully agree with Mayor Hong's argument. After the general election, Han Dong-hoon, as the party leader, always pointed his gun at the president. I have tried to refrain from internal criticism, but I can no longer hold back." On July 23, Han Dong-hoon became party leader with overwhelming support, securing 62.8% of the vote by appealing to moderate conservatives and advocating for public interests and livelihoods. In his acceptance speech, Han stated, "Our party members and the public have chosen change for the PPP. We will respond to public expectations, become more competent, expand toward moderates, and align ourselves with the people." Under his leadership, Han led opposition to the financial investment income tax and established bipartisan consultation bodies to address parliamentary conflicts, a major challenge for the Yoon administration. At his 100-day press conference on October 30, Han reiterated his commitment, saying, "I have worked hard to respond to public sentiment, become more competent, and expand our base. I focused on resolving healthcare issues and persistently opposed the financial investment income tax." Despite President Yoon's approval ratings hovering around 20%, Han's moderate and livelihood-focused approach helped keep PPP's support on par with the Democratic Party. In a Gallup Korea poll released on November 29, Yoon's approval rating stood at 19%, while PPP's support was at 32%, just one percentage point behind the Democratic Party (33%). However, Han's strained relationship with President Yoon and the pro-Yoon faction ultimately weakened his position. The passage of the impeachment bill against Yoon became a turning point, leading to Han's resignation after 146 days as party leader. While Han has stepped down due to internal pressures, many believe his return to frontline politics is only a matter of time. Following his resignation announcement, members of Han's fan club, "With Hoonie," gathered at the National Assembly, chanting his name and offering support. As Han left, he told supporters, "Don't try to protect me. I will protect you. I will not give up," signaling his intent to remain politically active. Political observers speculate that if Yoon's impeachment is upheld, a presidential election could be held in April or May next year. Potential conservative candidates include Seoul Mayor Oh Se-hoon and Daegu Mayor Hong Joon-pyo, but both face allegations of involvement in the "Myung Tae-kyun Gate," which could complicate their candidacies. In contrast, Han Dong-hoon remains untainted by the scandal, positioning him as a strong contender for a comeback. Han also emphasized his efforts to address the scandal, saying on November 28, "Similar attempts failed during the April general election. Problematic nominations, such as those involving Kim Young-sun, were decisively rejected." Han's role in ending the state of emergency and supporting the impeachment motion could further enhance his reputation. Kim Geun-sik, former PPP Vision Strategy Office director, stated on CBS Radio, "While the PPP has made a historically wrong choice by opposing impeachment, they will eventually turn to someone like Han Dong-hoon when they need a credible candidate for the next presidential election." Democratic Party lawmaker Park Ji-won also praised Han's actions on Facebook, saying, "Han Dong-hoon's decision to support the state of emergency's repeal and President Yoon's impeachment will be highly regarded." #HanDonghoon #PPPresignation #YoonSukyeol #impeachment #stateofemergency #Koreanpolitics #conservativefaction #politicalcomeback #MyungTaeKyunGate #nextpresidentialelection
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- Impeachment Approval and Value-Up Index Inclusion: Can KB Financial Win Back Foreign Investors?
- KB Financial Group is expected to see a positive impact on market demand, such as the return of foreign investors, as it successfully secured an additional inclusion in the Value-Up Index. The government has demonstrated a strong commitment to promoting the Value-Up Program, and political risks have eased following the passage of the presidential impeachment motion, improving previously heightened policy uncertainties. On the 16th, the Korea Exchange announced the special inclusion of five companies, including KB Financial, Hana Financial Group, SK Telecom, KT, and Hyundai Mobis, in the Korea Value-Up Index. The index inclusion will take effect on the 20th. KB Financial was not included in the index in September when the Value-Up Index was initially announced, as it did not disclose its corporate value enhancement plan at the time. However, during its Q3 earnings release, KB Financial presented shareholder return policies linked to its capital ratio, which was recognized as a successful differentiation in enhancing shareholder value. As expected, it was selected as a special inclusion stock. In addition to the index inclusion, the government is bolstering its Value-Up initiative with the creation of additional Value-Up funds. Following the KRW 200 billion (US$144.3 million) first Value-Up fund, the second fund of KRW 300 billion (US$216.3 million) will be formed and executed this week. The index inclusion allows KB Financial to reaffirm its strengths in value enhancement and attract real capital inflows. KB Financial is also expected to further increase shareholder returns by 2025 due to the Value-Up program. Despite reduced interest income from interest rate cuts and household loan restrictions, provisioning burdens related to real estate project financing (PF) are anticipated to ease significantly compared to this year. This could be a factor in improving investor sentiment, especially if political uncertainties stabilize. KB Financial’s stock price has been highly influenced by policy expectations as it has actively aligned itself with the government’s Value-Up program since the beginning of this year. While it was significantly impacted by uncertainties around the policy, the stock could see a notable recovery as the situation stabilizes. The easing of political uncertainties is also expected to lead to a return of foreign investors, further improving investment sentiment for KB Financial. KB Financial’s stock price plummeted 16% over ten days following the state of emergency declaration. During this period, foreign investors sold a net KRW 433 billion (US$312.2 million) worth of KB Financial shares, driving the stock price lower. The foreign investor holding ratio dropped from 78% to 76% in a short period, marking the lowest level since early September. Compared to Shinhan Financial (-KRW 178.6 billion), Hana Financial (-KRW 78.3 billion), and Woori Financial (+KRW 10.2 billion net purchases by foreign investors), KB Financial experienced a significantly larger foreign sell-off. Choi Jung-wook, a researcher at Hana Securities, stated in a report, “If the impeachment resolution alleviates uncertainties and stabilizes the KRW/USD exchange rate, banking stocks could see a short-term rebound. We need to keep monitoring changes in foreign trading patterns.” In response to the situation, KB Financial has actively communicated with major overseas investors, emphasizing its steadfast commitment to the Value-Up plan. KB Financial stated in a letter, “Despite heightened market uncertainties caused by recent events, we remain committed to maximizing shareholder value through unwavering execution of previously announced Value-Up initiatives, including maintaining our Common Equity Tier 1 (CET1) ratio and robust risk management.” KB Financial also demonstrated a strengthened capital management stance by appointing Lee Hwan-joo, CEO of KB Life Insurance and a financial expert with experience as CFO at KB Financial Group, as the next bank president in its year-end personnel decisions. The government and financial authorities continue to emphasize the steady implementation of the Value-Up policy. The government has completed investments of KRW 100 billion (US$72.2 million) out of the KRW 200 billion (US$144.3 million) first corporate Value-Up fund and plans to proceed with private sector Value-Up investments within the year. At an emergency macroeconomic and financial meeting (F4 meeting), Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, reiterated the government’s determination to accelerate the Value-Up policy. The Korea Value-Up Index declined for four consecutive trading days following the state of emergency declaration but rebounded over the next four sessions. On the 16th, it closed at 970.49, down 0.37% from the previous trading day. A KB Financial representative said, “KB Financial is conducting group conference calls and in-person meetings with existing and potential investors to ensure direct communication. We are proactively responding to prevent investor outflow and market confusion through real-time information sharing.” #KBFinancialGroup #ValueUpIndex #foreigninvestment #KoreaExchange #ValueUpProgram #shareholderreturn #economicpolicy #investmentstrategy #politicalstability #financialmarkets
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- KDB Headquarters Relocation to Busan Loses Momentum Amid Impeachment Phase; Kang Seok-hoon's Position Also Uncertain
- On the 16th, sources close to the Korea Development Bank (KDB) indicated that with the Yoon Suk-yeol administration losing its political momentum following the National Assembly's impeachment bill against the president, the plan to relocate KDB's headquarters to Busan is now considered unlikely to move forward during this government. The relocation of KDB's headquarters to Busan was one of President Yoon Suk-yeol’s key promises during his candidacy and was designated as a major national policy task by his administration. Each time President Yoon visited Busan, he reiterated his commitment to relocating KDB to the city. The ruling People Power Party (PPP) also supported the initiative, selecting the necessary amendment to the Korea Development Bank Act as a legislative priority for balanced regional development. However, as the government and ruling party now face the impeachment phase, it is widely believed that the plan to relocate KDB's headquarters has been inevitably disrupted. If the Constitutional Court upholds President Yoon's impeachment, the relocation of KDB's headquarters—one of his campaign pledges—is likely to be abandoned. A KDB labor union official said in a phone call with *Business Post*, “President Yoon Suk-yeol has been the key driver of the KDB headquarters relocation, so this situation will naturally weaken that push. Realistically, the relocation of KDB’s headquarters to Busan now seems very difficult.” If the relocation plan is scrapped, it could also negatively impact KDB Chairman Kang Seok-hoon's position. Kang’s term is set to end in June next year. Given Kang's efforts to amend the Korea Development Bank Act for the headquarters relocation, his reappointment could have been possible under the existing circumstances. However, with the political momentum for the relocation disappearing amid the impeachment turmoil, the likelihood of his reappointment is now extremely low. Chairman Kang has prioritized relocating KDB’s headquarters despite resistance from internal employees and opposition lawmakers from the Democratic Party of Korea (DPK). He has faced criticism during parliamentary audits, particularly from DPK members on the National Assembly’s Political Affairs Committee. KDB, as South Korea’s leading state-owned bank, has historically seen its chairperson replaced whenever the administration changed. Kang himself, a former lawmaker, served as a policy advisor to President Yoon during his candidacy and was appointed KDB Chairman after the Yoon administration began. Despite the potential collapse of the headquarters relocation plan, Kang’s ongoing efforts to transfer KDB's organization and personnel to Busan are expected to proceed without disruption. As part of the relocation strategy, Kang began moving parts of KDB’s organization and workforce to Busan even before amending the Korea Development Bank Act. In 2022, the Small and Medium Business Division was renamed the Regional Growth Division and relocated to Busan. The Southeast Region Investment Finance Center was also newly established in Busan. This year, the Southeast Region Investment Finance Center was further upgraded to oversee both the Southwest Region Investment Finance Center and the broader Southern Region Investment Finance Headquarters in Busan. Chairman Kang has emphasized that relocating KDB’s organization and personnel is part of creating a new growth pillar to enhance regional economic development and economic vitality. Even if the headquarters relocation is ultimately scrapped, there is a strong possibility that related efforts will be reinforced. At a seminar titled *"Industrial Development Strategies for Fostering New Growth in the Southeast Region"* held in Busan on November 27, Chairman Kang stated, “In the face of an uncertain domestic and global economic environment, fostering new growth in the Southeast Region and overcoming the Seoul-centric system is of utmost importance for South Korea's economic resurgence. We will do our best to boost regional economic vitality.” #KoreaDevelopmentBank #KDBrelocation #Busan #YoonSukYeol #impeachmentimpact #KDBChairman #regionaldevelopment #economicgrowth #Seoulcentralization #SouthernRegion
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- Pearl Abyss bets its fate on 'Red Desert', how will CEO Heo Jin-young sustain performance until its release in Q4 next year?
- In response, Heo Jin-young, CEO of Pearl Abyss, is under pressure to ensure the success of *Crimson Desert* to reverse the company’s declining performance. However, concerns have emerged that the delayed release of *Crimson Desert* and its high hardware requirements may negatively impact the game’s success. According to industry reports on the 16th, Pearl Abyss' revenue from *Black Desert* has been on a downward trend, contributing to worsening company performance. The company recorded revenue of KRW 79.5 billion (US$ 57.3 million) and an operating loss of KRW 9.2 billion (US$ 6.6 million) in the third quarter of 2024. Compared to the third quarter of last year, revenue fell by 6.4%, and the operating profit turned into a loss. With no new releases planned until *Crimson Desert*’s expected launch in the fourth quarter of next year, this downward trend is likely to continue in the near term. Initially, the industry expected *Crimson Desert* to launch by the second or third quarter of next year at the latest. However, with the release delayed, analysts predict further financial deterioration for the company. Kim Jin-goo, a researcher at Kiwoom Securities, stated, “The release of *Crimson Desert* has not even reached our conservative estimate of the third quarter of 2025. With major competitors like Rockstar Games’ open-world action-adventure game *GTA6* expected in fall next year, the game may launch in December.” Additionally, on the PC distribution platform Steam, the recommended hardware specifications for *Crimson Desert* include a graphics card of NVIDIA’s RTX 4070 Super or AMD’s RX 7800 XT or higher. By comparison, recent AAA games have lower hardware requirements. For instance, Bethesda Softworks' action-adventure game *Indiana Jones and the Great Circle*, launched on the 9th, requires an RTX 3080 Ti 12GB or RX 7700 XT 12GB graphics card. Similarly, *S.T.A.L.K.E.R. 2*, released on November 20, recommends an RTX 3070 Ti or RX 6800 XT, while the August 20 mega-hit action RPG *Black Myth: Wukong* requires only an RTX 2060 or RX 5700 XT. While there is a chance that hardware requirements could be reduced if the graphics are downgraded in the next nine months before launch, as it stands, *Crimson Desert* demands near top-level graphics card specifications. At G-Star 2024, Korea's premier gaming event held from November 13 to 16 at BEXCO in Busan, Pearl Abyss showcased *Crimson Desert* exclusively using console controllers. This suggests a heavy focus on targeting console gamers over PC users. However, high-performance PCs often offer better frame rates and graphics compared to consoles like Sony’s PlayStation 5 (PS5) and Microsoft’s Xbox Series X|S. For instance, Remedy Entertainment’s multi-platform survival horror game *Alan Wake 2* struggled to maintain 60 frames per second on consoles. Optimizing games for consoles requires dedicated efforts, as demonstrated by *Black Myth: Wukong*, which failed to optimize for Xbox, resulting in delays for that version’s release. To date, Pearl Abyss has not showcased *Crimson Desert* on PS5 or Xbox Series X|S. Given the game’s high hardware requirements, ensuring optimization for consoles will be a significant challenge. During the Q3 2024 earnings call, CEO Heo stated, “After *Crimson Desert* is launched, we will focus our development capacity on quickly producing our next title.” As a result, the release of *DokeV* and *Plan 8*, new titles initially announced in 2019, is now expected to be delayed until after 2026. Consequently, Pearl Abyss appears to be placing its future on the success of *Crimson Desert*. An industry insider remarked, “Although there are growing concerns about further delays with *Crimson Desert* now scheduled for the fourth quarter of 2025, the game is likely to meet its planned release date. However, the company’s future business will heavily depend on how successful *Crimson Desert* is.” #PearlAbyss #CrimsonDesert #HeoJinyoung #BlackDesert #gameindustry #highhardwarerequirements #gamerelease #consoleoptimization #financialperformance #GTA6
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- HD Hyundai’s Chung Ki-sun Eyes 'Shipbuilding' for Succession, KRW 2 Trillion Dividends Planned
- Chung Ki-sun, Senior Vice Chairman of HD Hyundai, is emerging as the next leader of the company, with the shipbuilding business becoming a key source of funding for his management succession. This development comes as HD Korea Shipbuilding & Offshore Engineering, an intermediate holding company in the shipbuilding sector, recently announced its first-ever corporate value enhancement plan since its launch in 2019. The plan includes a shareholder return rate of 30%. Consequently, dividends from HD Hyundai's shipbuilding subsidiaries, which are seeing significant performance improvements during the industry boom, are expected to increase substantially. Dividends from HD Hyundai's subsidiaries are anticipated to serve as a key financial source for Chung Ki-sun’s inheritance of shares from Chung Mong-joon, Chairman of the Asan Foundation. Previously, HD Hyundai Oilbank, the group's refining company, played the main role in providing dividends to HD Hyundai. However, due to the recent downturn in the petrochemical market, dividend payments from HD Hyundai Oilbank have declined, and HD Korea Shipbuilding & Offshore Engineering is expected to take over as the new cash cow for dividends. According to information gathered on December 16 from HD Korea Shipbuilding & Offshore Engineering and the securities industry, the scale of shareholder returns is expected to increase significantly, driven by the current boom in the shipbuilding industry. Kang Kyung-tae, a researcher at Korea Investment & Securities, estimates HD Korea Shipbuilding & Offshore Engineering's future cash dividends as follows: - KRW 281 billion (US$ 202.6 million) in 2024 (KRW 3,200 per share) - KRW 461 billion (US$ 332.5 million) in 2025 (KRW 6,500 per share) - KRW 577 billion (US$ 416.2 million) in 2026 (KRW 8,200 per share) - KRW 640 billion (US$ 461.5 million) in 2027 (KRW 9,100 per share) The total dividend payout over four years, starting in 2024, is projected to be KRW 1.959 trillion (US$ 1.41 billion). The shareholder return plan announced by HD Korea Shipbuilding & Offshore Engineering on December 13 aims to increase dividends and share buybacks to over 30% of its standalone net profit. To achieve this, the company set targets to raise sales to KRW 34 trillion (US$ 24.5 billion) and return on equity (ROE) to above 12% by 2027. The company also unveiled competitiveness enhancement strategies for each business segment, including merchant ships, specialty vessels, engines, marine and energy solutions, and new ventures like fuel cells. Since its inception in 2019, HD Korea Shipbuilding & Offshore Engineering has not conducted any cash dividend payments due to weak financial performance. Until now, most of HD Hyundai's dividend income came from HD Hyundai Oilbank. However, as HD Hyundai Oilbank's financial performance has recently deteriorated, its dividend contributions to the holding company are expected to drop sharply. As of the third quarter, HD Hyundai Oilbank recorded a debt ratio of 230.7% and a net debt-to-equity ratio of 126.0%. Credit rating agencies attribute the company’s financial burden to large-scale capital expenditures on heavy oil-based petrochemical facilities (HPC) and polymer process investments, coupled with an annual average dividend payment of approximately KRW 350 billion (US$ 252.5 million) over the past five years. Dividends paid by HD Hyundai Oilbank to HD Hyundai amounted to KRW 236 billion (US$ 170.2 million) through the third quarter of this year, a 45.9% decrease compared to KRW 413.7 billion (US$ 298.3 million) during the same period last year. HD Hyundai Oilbank's dividend payments to HD Hyundai rose steadily from KRW 150.8 billion (US$ 108.7 million) in 2021 to KRW 283.8 billion (US$ 204.7 million) in 2022 and KRW 413.7 billion (US$ 298.3 million) in 2023 but are expected to decline this year. Analysts believe HD Hyundai’s issuance of exchangeable bonds worth KRW 265 billion (US$ 191.1 million) in October, using HD Hyundai Electric shares as collateral, was due to reduced dividends from HD Hyundai Oilbank, leading to a short-term liquidity squeeze. If HD Korea Shipbuilding & Offshore Engineering strengthens its shareholder returns, HD Hyundai is expected to receive more dividend income, which Chung Ki-sun can use to secure inheritance tax funds for his equity succession. Experts in the business community commonly agree that Chung Ki-sun will rely primarily on dividends from HD Hyundai to fund the payment of gift and inheritance taxes for his equity succession in the company. Chung Ki-sun, who serves as a non-registered executive at HD Hyundai and its subsidiaries, derives his primary income from the salary and cash dividends provided by HD Hyundai. His salary for 2023 amounts to KRW 626 million (US$ 451,5 thousand), but cash dividends are believed to make up the majority of his income. Chung Mong-joon, Chairman of the Asan Social Welfare Foundation, holds 21,011,330 shares (26.6%) of HD Hyundai. The value of this stake is approximately KRW 1.65 trillion (US$ 1.19 billion), and if Chung Ki-sun inherits the entire stake, the expected tax liability will exceed KRW 800 billion (US$ 577.1 million). Chung Ki-sun was promoted to Senior Vice Chairman during the 2025 executive reshuffle, establishing a practically direct control structure for the group. Upon completing the equity succession of HD Hyundai, he is expected to solidify an owner-driven management system for the HD Hyundai Group. #HDHyundai #ChungKisun #ShipbuildingIndustry #MLCC #CorporateSuccession #Dividends #KoreaShipbuilding #InheritanceTax #Oilbank #ShareholderReturns
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- Kwangdong Pharmaceutical Still Seen as 'Beverage Company,' Choi Sung-won's First Year Shows Little Progress
- Choi Sung-won, Chairman and CEO of Kwangdong Pharmaceutical, has been leading the company under a second-generation owner management system for a year, but the company still struggles to shed its “food and beverage company” image. Over the past year, Chairman Choi has actively pursued mergers and acquisitions, identifying health functional foods and healthcare as new growth engines to strengthen the company's identity as a pharmaceutical company. However, no significant achievements have yet emerged from these sectors. According to an industry analysis compiled on the 16th, Kwangdong Pharmaceutical still has a high proportion of revenue coming from its food and beverage business. A pharmaceutical sector researcher at a securities firm stated to Business Post, “We do not conduct corporate analysis on Kwangdong Pharmaceutical because the proportion of food and beverage revenue is too high. As a result, it is not considered a pharmaceutical or biotech company.” In fact, corporate analysis reports on Kwangdong Pharmaceutical are rarely published. The most recent report was issued by SangSangIn Securities in June 2023. Securities firms typically assess the value of pharmaceutical companies based on new drug development performance or specialty drugs. Analysts note that Kwangdong Pharmaceutical's reliance on food and beverage revenue, combined with its low investment in research and development, makes it difficult to evaluate the company as a pharmaceutical firm. By Q3 2023, Kwangdong Pharmaceutical reported separate revenue of KRW 750.1 billion (USD 540.8 million), with the food and beverage (F&B) business accounting for 56.8% of the total. Although this represents a slight decrease compared to last year, when the F&B division accounted for 60% of revenue, the fact that more than half of total revenue still comes from food and beverages reinforces the argument that the company does not function as a pharmaceutical firm. Observers point out that Chairman Choi, the second-generation owner of Kwangdong Pharmaceutical, has yet to deliver successful diversification, which has failed to dispel external perceptions. Choi was promoted to chairman at the end of last year, formally establishing an owner management system. Since then, he has demonstrated efforts to enhance the competitiveness of the company’s core business to eliminate its unwanted “food and beverage company” label. At the end of last year, Kwangdong Pharmaceutical began distributing Gardasil, an HPV vaccine, in partnership with MSD Korea. In July this year, it expanded its rare disease drug portfolio by signing a domestic licensing agreement with Italian pharmaceutical company Chiesi for four treatments. However, Kwangdong Pharmaceutical’s financial performance has not met market expectations. By Q3 2023, Kwangdong Pharmaceutical’s cumulative revenue reached KRW 1.2499 trillion (USD 901.2 million), exceeding KRW 1 trillion (USD 720.8 million) early, a benchmark that qualifies it as a major domestic pharmaceutical company. This represents a 10.6% increase compared to the same period last year. However, operating profit during the same period amounted to only KRW 22.1 billion (USD 15.9 million), with an operating margin of just 1.7%. In comparison, Daewoong Pharmaceutical, which has lower revenue, achieved an operating margin exceeding 10%, with cumulative operating profit surpassing KRW 100 billion (USD 72.1 million) by Q3. This highlights Kwangdong Pharmaceutical's weaknesses. The company’s food and beverage products, which form the core of its revenue, inherently deliver lower profitability than pharmaceutical products, limiting operating profit levels. Even Chong Kun Dang, whose operating profit declined this year, achieved a consolidated operating margin of 7.91% by Q3 2023. Chairman Choi’s efforts to expand into health functional foods and healthcare appear to consider these dynamics. These initiatives not only aim to strengthen the company’s pharmaceutical identity but also serve as a strategy to secure profitability. At the end of last year, Choi kickstarted business expansion after an eight-year hiatus by acquiring a 58.7% stake in health functional food company BL Healthcare for KRW 30 billion (USD 21.6 million). In April this year, Kwangdong Pharmaceutical dissolved its existing health functional food subsidiary KD Health Bio and rebranded BL Healthcare as Kwangdong Health Bio, streamlining operations. In October, Kwangdong Pharmaceutical further expanded into healthcare by acquiring a 29.4% stake in in-vitro diagnostics company Precision Bio for KRW 16.9 billion (USD 12.2 million). However, no significant results have yet been achieved in the health functional foods and healthcare sectors. By Q3 2023, Kwangdong Health Bio reported cumulative revenue of KRW 49.4 billion (USD 35.6 million) and a net loss of KRW 1.8 billion (USD 1.3 million). The investment in Precision Bio, made in October, has not yet been reflected in its financial results. #ChoiSungWon #KwangdongPharmaceutical #FoodAndBeverage #BusinessDiversification #HealthcareExpansion #HealthFunctionalFoods #Gardasil #RareDiseaseDrugs #PrecisionBio #PharmaceuticalIdentity
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- Samsung Electro-Mechanics Faces Gloomy Outlook, Chang Duck-hyun's MLCC Pressured
- Samsung Electro-Mechanics is expected to deliver below-expected results for the fourth quarter of 2024 due to weak IT demand, including in the Chinese smartphone market. Chang Duck-hyun, President and CEO of Samsung Electro-Mechanics, is seeking a breakthrough in the automotive multilayer ceramic capacitor (MLCC) business. However, fierce competition from Japanese and Chinese companies suggests that achieving this goal will not be easy. According to industry sources on December 16, Samsung Electro-Mechanics' fourth-quarter 2024 performance is projected to fall short of market consensus (average estimates from securities firms). Kim Rok-ho, a researcher at Hana Securities, recently lowered the company's fourth-quarter sales and operating profit estimates by 14% and 39%, respectively. Samsung Electro-Mechanics' fourth-quarter operating profit is expected to drop to KRW 150.8 billion (US$ 108.7 million), a 33% decrease compared to the third quarter and 9.1% below the market consensus of KRW 164.6 billion (US$ 118.7 million). The poor performance is attributed to a decline in demand for IT products such as smartphones and PCs. In particular, weak sales in the Chinese smartphone market appear to be a major factor. Of Samsung Electro-Mechanics' cumulative sales for the third quarter of 2024, the Chinese market accounted for KRW 3.032 trillion (US$ 2.186 billion), representing 38.8% of the total sales of approximately KRW 7.8 trillion (US$ 5.624 billion). Samsung Electro-Mechanics supplies MLCCs and camera modules to Chinese smartphone manufacturers such as Xiaomi, Oppo, and Vivo. Notably, as Huawei faced difficulties due to U.S. restrictions, Xiaomi and Oppo increased their sales, positively impacting Samsung Electro-Mechanics' performance. However, Huawei's smartphones are regaining market share. Most of Huawei's MLCCs are supplied by Murata, a Japanese company, rather than Samsung Electro-Mechanics. Additionally, the overall decline in smartphone demand in China poses a problem. In an effort to boost domestic consumption, China included smartphones in its subsidy program for new product purchases under the “Green Exchange and Upgrade” policy. However, smartphone sales remain sluggish. During China's largest online shopping festival, Singles' Day, held from October 18 to November 10, smartphone sales in China fell 9% compared to the previous year. Chang Duck-hyun, the CEO, faces growing challenges. As of the third quarter of this year, MLCC sales accounted for 43.33% of Samsung Electro-Mechanics' total revenue. Sales of camera modules, primarily supplied to Chinese smartphone manufacturers, also made up 37.63% of the total revenue. Although the proportion of sales from automotive MLCCs is increasing, it still only accounts for 20% of the total MLCC sales. The 2025 outlook is also uncertain. MLCCs are dominated by Japanese companies such as Murata, which leads the market with advanced technology. Meanwhile, Chinese companies are rapidly increasing their MLCC production, intensifying competition. According to Kiwoom Securities, Murata held approximately 40% of the global MLCC market share this year, securing its top position. Samsung Electro-Mechanics ranked second with around 25% market share, surpassing Japan’s TDK but struggling to narrow the gap with Murata. Chinese MLCC companies are also catching up quickly. An industry insider from the electronic components sector noted, “We used to believe that Chinese MLCC companies were at least 10 years behind in technology, but they have advanced significantly. While they have yet to make a mark in the automotive sector, they are rapidly growing in the IT MLCC market, leveraging strong domestic demand.” As a result, expectations for improved performance in China due to next year’s “Green Exchange and Upgrade” policy have dimmed for Samsung Electro-Mechanics. Chinese smartphone manufacturers may increasingly adopt products from domestic MLCC companies. Securities firms such as Hana Securities have begun lowering their earnings forecasts for Samsung Electro-Mechanics for 2025. In response to these challenges, CEO Chang is focusing on strengthening the high-value-added automotive MLCC and AI server substrate businesses, beyond IT MLCCs. However, this effort also entails competition with Murata. Murata holds about 45% of the automotive MLCC market, making it the leading company in the sector. A Samsung Electro-Mechanics representative commented, “It is true that we have lagged behind Japanese competitors in terms of technology, but we are catching up with Murata in the AI MLCC market, where the amount of MLCCs required is increasing significantly.” #SamsungElectroMechanics #MLCC #ChinaSmartphones #ITDemand #ChangDuckhyun #Huawei #Murata #AutomotiveMLCC #AIComponents #Electronics
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- SK Hynix’s KRW 3.9 Trillion Kioxia IPO: Will Chey Tae-won Recover Funds for HBM Investment?
- SK Hynix’s investment in Kioxia, a Japanese NAND flash company, amounting to KRW 3.91 trillion (USD 2.82 billion), has sparked speculation that SK Hynix may consider recovering part of its investment as Kioxia prepares to list on the stock exchange. The company needs funds to expand its production facilities for high-value products like High Bandwidth Memory (HBM). However, some analysts suggest that maintaining a cooperative relationship with Kioxia, rather than selling its shares, could be more advantageous for SK Hynix’s NAND flash and broader memory semiconductor business. According to reports from the semiconductor industry on the 16th, Kioxia, a Japanese NAND flash manufacturer, is set to go public on the Tokyo Stock Exchange on the 18th. There is speculation that SK Hynix may sell part of its Kioxia stake. Kioxia (formerly Toshiba Memory) is expected to have a market capitalization of approximately JPY 780 billion (KRW 7.36 trillion or USD 5.31 billion) based on its IPO price. While this falls far short of the initial target of JPY 1.5 trillion (KRW 14 trillion or USD 10.1 billion), existing investors now have an opportunity to exit and recover their investments. In 2018, SK Hynix invested KRW 3.91 trillion (USD 2.82 billion) in Kioxia through a consortium led by Bain Capital. SK Hynix owns a 19% stake out of the 56% held by the Bain Capital consortium and also possesses convertible bonds (CBs) that could grant it an additional 15% stake. This could increase SK Hynix’s total stake in Kioxia to up to 34%. The original investment in Kioxia was intended as a financial investment. Bain Capital has prioritized recovering its investment through Kioxia’s initial public offering (IPO), and SK Hynix has shared this direction. In an earnings call in April 2021, SK Hynix stated, “After Kioxia’s IPO, we plan to sell the financial investment (LP) shares on the market while retaining the remaining 15% (CB) stake for long-term strategic cooperation with Kioxia.” Given the recent management focus within the SK Group on selling non-core assets, the likelihood of SK Hynix selling part of its stake in Kioxia appears high. Furthermore, SK Hynix’s need for capital to expand production facilities for high-value products like HBM strengthens the case for a stake sale. Currently, SK Hynix’s general DRAM operating profit margin stands at approximately 20%, whereas the HBM operating profit margin is estimated to exceed 50%. Kioxia, on the other hand, only turned a profit in Q1 2024 after six consecutive quarters of losses. Analysts suggest that since the NAND market could deteriorate again next year, SK Hynix should take this opportunity to secure funds by selling its stake. On the other hand, some argue that maintaining a cooperative relationship with Kioxia would be a more advantageous long-term strategy. Rather than risking Kioxia falling into the hands of competitors, it would be more effective to strengthen strategic cooperation and increase market share in the NAND flash market. As of Q2 2024, SK Hynix and Kioxia held NAND market shares of 22.1% and 13.8%, respectively, for a combined 35.9%. This is just 1 percentage point shy of Samsung Electronics’ market share of 36.9%. Chey Tae-won, Chairman of SK Group, stated in an interview with Japan’s Nikkei on May 23, 2023, “As an investor, I hope for Kioxia’s growth,” adding, “We will further strengthen cooperation and investment with Japanese companies in the semiconductor sector.” However, SK Hynix would incur a loss if it were to sell its Kioxia shares at this time. Of the KRW 3.91 trillion (USD 2.82 billion) invested, KRW 2.7 trillion (USD 1.95 billion) was allocated for equity acquisition. Based on the current IPO price, this equity is now valued at only KRW 1.4 trillion (USD 1.01 billion). This reflects Kioxia’s enterprise value being halved from its peak of nearly KRW 10 trillion (USD 7.2 billion) at the time of investment. Selling the entire stake would result in a loss of KRW 1.3 trillion (USD 937 million). Moreover, SK Hynix’s recent success with HBM has improved its cash flow, reducing the urgency for investment recovery. As of Q3 2024, SK Hynix’s cash and cash equivalents stood at KRW 10.86 trillion (USD 7.83 billion), a 12% increase compared to Q2. Kim Dong-won, a researcher at KB Securities, stated, “Following Kioxia’s listing, SK Hynix has the opportunity to recover part of its initial investment through a partial stake sale while maintaining the potential for strategic cooperation with Kioxia in the future. SK Hynix stands to benefit the most from Kioxia’s IPO.” #SKHynix #KioxiaIPO #NANDFlash #HBMInvestment #CheyTaeWon #SemiconductorMarket #StrategicCooperation #BainCapital #MemoryChips #TokyoStockExchange
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- LG Innotek's CES Bid: Moon Hyuk-soo Stakes Future on Autonomous Driving Components
- Moon Hyuk-soo, CEO of LG Innotek, is focusing on expanding the autonomous driving vehicle component business to reduce the company’s dependence on Apple revenue. Currently, automotive camera modules, radar, and LiDAR do not contribute significant revenue for LG Innotek, but the company anticipates explosive growth as autonomous vehicles become more widespread. Moon has designated the automotive component business as a future growth engine and is expected to pave a new path for LG Innotek by concentrating on organizational restructuring and technological investments. According to industry reports on the 15th, LG Innotek will establish a dedicated booth with a future mobility theme at CES 2025, the world’s largest IT and electronics exhibition, set to take place in January in Las Vegas, USA. The company plans to showcase 41 related components. Unlike CES 2024, held this January, where LG Innotek divided its booth into three sections—Artificial Intelligence (AI), Mobility, and Future Pathway—the upcoming exhibition will focus on introducing electronic components such as sensing, communication, lighting, and control technologies for vehicles. Moon’s decision to highlight automotive components instead of IT camera modules, the company’s flagship product, is seen as an attempt to break away from excessive reliance on Apple, which has been a long-standing issue. LG Innotek generates most of its revenue by supplying camera modules for Apple’s iPhones. According to the company’s Q3 2023 report, revenue attributed to a single company, presumed to be Apple, reached KRW 11.4472 trillion (USD 8.26 billion), accounting for 80.5% of total cumulative revenue (KRW 14.2220 trillion or USD 10.25 billion). As a result, LG Innotek’s performance heavily depends on iPhone sales. In Q3 of this year, LG Innotek reported an operating profit of KRW 183.4 billion (USD 132.2 million), significantly below market expectations, as sales of the iPhone 16 series underperformed. Market consensus from securities firms had predicted Q3 operating profit of KRW 261.8 billion (USD 188.8 million), but the company fell short by around 30%. The iPhone 16 series has shown lackluster performance compared to the iPhone 15 series, largely due to the absence of AI features like "Apple Intelligence." Kuo Ming-chi, a researcher at Taiwan's TF International, predicted that Q4 shipments of the iPhone 16 series would reach 88–89 million units, down from 90–91 million units during the same period last year. While there are projections that the launch of an integrated version of ChatGPT and Apple’s voice assistant Siri may boost iPhone 16 sales, analysts note that LG Innotek cannot indefinitely rely on a single company for its performance. Moon, who was appointed as LG Innotek’s CEO in March, has focused on business diversification since the early days of his tenure. During the shareholder meeting where he was appointed, he stated, “I understand that I was tasked with expanding our market share in the automotive, semiconductor, and robotics markets by leveraging the success we’ve achieved in the mobile sector.” However, tangible results have yet to emerge after a year. In Q3, optical components such as camera modules still accounted for 82.6% of LG Innotek’s revenue. The automotive component business remained at around KRW 1.5 trillion (USD 1.08 billion) in sales, similar to last year, representing approximately 10% of total revenue. The current sluggish demand in the electric vehicle market, caused by a temporary plateau in demand known as a chasm, has also contributed to underwhelming growth in component demand. Nevertheless, Moon continues to demonstrate a strong commitment to growing the automotive components business. As vehicle electrification progresses rapidly and autonomous driving gains momentum, the share of automotive electronics in vehicles is expected to expand from the current high-30% range to 70%. LG Innotek is reportedly filing numerous patents for automotive components. The company is focusing on developing technologies for future vehicle parts, such as in-cabin camera modules that monitor the vehicle interior, LiDAR (which uses infrared light to measure distances), and sensing components for Advanced Driver Assistance Systems (ADAS). In June, Moon established a dedicated LiDAR team directly under the CEO’s office. High-performance LiDAR, a sensing component that measures the time it takes for infrared light to bounce back from objects, is considered essential for autonomous driving vehicles. LG Innotek’s “Nexlide-M” automotive lighting components are reportedly installed in 120 global vehicle models, including those of Hyundai and Kia. Park Mu-ryong, head of LG Innotek’s Vehicle LS Development Team, stated, “We are continuously receiving requests for usage reviews from global OEMs, with over 50 models under mass production review.” The company has set a goal to expand its automotive business revenue from KRW 1.5 trillion (USD 1.08 billion) this year to KRW 5 trillion (USD 3.61 billion) by 2029. At CES 2024 this January, Moon stated, “We aim to become the top company in sensing solutions by integrating sensing and control technologies, including vehicle cameras.” #MoonHyukSoo #LGInnotek #AppleDependency #AutomotiveComponents #AutonomousDriving #LiDAR #CES2025 #BusinessDiversification #FutureMobility #ElectronicsMarket
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- Kbank’s Third IPO Attempt Faces Political Risks: Choi Woo-hyoung Weighs Timing Carefully
- Choi Woo-hyoung, CEO of Kbank, is facing increasing complexities regarding the timing of the company’s initial public offering (IPO) early next year. With the domestic public offering market in a slump and heightened political risks stemming from the impeachment proceedings triggered by the president’s emergency martial law situation, uncertainties surrounding the success of the IPO have grown. Kbank may need to significantly revise its IPO strategy, as the validity of its preliminary approval for listing expires in February 2025. According to the financial investment industry on August 13, large-scale IPOs of trillion-won companies, including Kbank, LG CNS, DN Solutions, and SGI Seoul Guarantee Insurance, are expected to converge in the first quarter of 2025. This will likely intensify competition in the domestic IPO market early next year. Adding to this, political uncertainty caused by impeachment proceedings may further solidify an unfavorable market environment. For CEO Choi, who had been preparing to relaunch the IPO attempt in just a couple of months, the situation has become increasingly challenging. Choi demonstrated his commitment to quickly revising and relaunching the IPO strategy after withdrawing the initial plan earlier this year. At the 9th Financial Day event at the end of October, shortly after deciding to pull the IPO, Choi told reporters, “This IPO attempt allowed us to gauge market demand to some extent,” and added, “We plan to adjust the IPO structure to be more market-friendly and aim to proceed with the IPO in January.” However, if the current frozen investment sentiment and political uncertainty continue into next year, Kbank may be forced to revise its IPO plans. Looking at past examples, even if the second impeachment motion against President Yoon Suk-yeol is passed in a vote on the 14th, the Constitutional Court’s review is expected to take approximately three months. Kbank passed the preliminary review for listing in August 2023, and the approval is valid until the end of February 2025 without needing to repeat the process. The likelihood of the political risks being entirely resolved within this timeframe appears slim. Even if political and economic instability stabilizes after the impeachment proceedings, it may still take time for investor sentiment to recover. There are also concerns that shaken confidence in the domestic stock market could have lingering effects on capital inflows. Park Jong-seon, an analyst at Yuanta Securities, commented, “The domestic IPO market has recently seen a significant decline in the average competition rate for public subscriptions, with post-listing opening prices falling below the IPO price, indicating severe market contraction. Given the heightened volatility in stock prices, the ‘sorting out of the strong and weak’ among listed stocks has intensified.” Given that Kbank has already withdrawn its IPO plans twice before, CEO Choi is likely to be extremely cautious in determining the timing of the listing. However, with intensifying competition in the internet banking industry, it is also difficult to postpone the IPO indefinitely. Securing business competitiveness and maintaining market position requires funding that cannot be delayed. Kbank, the first internet-only bank in Korea, still lags significantly behind market leader KakaoBank in customer numbers and net profit. Meanwhile, latecomer Toss Bank is rapidly expanding its business. With the government pushing to approve a fourth internet-only bank, Kbank must also prepare for increased competition in the market. Kbank is currently targeting the corporate loan market, including small business owners, self-employed individuals, and SMEs. To expand its business and respond to competitive pressures, securing funds for loans is a priority. Additionally, significant investments will be needed for product diversification, credit model enhancement, and marketing operations. If Kbank successfully lists, it will not only secure funds from the IPO but also gain access to the equity capital raised previously from financial investors. In 2021, Kbank received KRW 1.25 trillion (US$ 900 million) in investment from private equity firms. However, KRW 725 billion (US$ 520 million) of this investment is tied to a condition requiring Kbank to go public by July 2026. This amount is not recognized as BIS (Bank for International Settlements) regulatory capital and cannot be used as funds for lending or other purposes. At a press briefing in October, CEO Choi stated that proceeds from the IPO would primarily be used as funding for “CEO-backed loans” and to invest in platform business technologies. A Kbank representative said, “We plan to proceed with the IPO as scheduled early next year. We are reviewing various scenarios to ensure this happens.” #Kbank #IPO #ChoiWooHyoung #PoliticalUncertainty #ImpeachmentRisk #FinancialMarket #InternetBanking #CorporateLoans #KakaoBank #TossBank #BISCapital #PrivateEquity #MarketCompetition #SouthKoreaIPO #BankingIndustry
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- SK’s Chey Tae-won’s 30-Year Commitment Pays Off: Bio Business Emerges as the 'Second Semiconductor'
- Chey Tae-won, Chairman of SK Group, is beginning to see the tangible results of his 30-year steadfast investment in the bio industry. Chairman Chey actively supported the bio business as a future growth driver for the group, even when its profitability was unclear. As a result, SK has now developed its capabilities in everything from new drug development to biopharmaceutical production. Chey aims to replicate the semiconductor success of SK Hynix in the bio business, with a vision to make bio a future cash cow on par with semiconductors. According to the bio industry on August 13, SK Pharmteco, a contract development and manufacturing organization (CDMO) wholly owned by SK Group’s holding company SK Inc., recently signed a large-scale supply contract with a global pharmaceutical company. It is presumed that SK Pharmteco secured a significant contract with Eli Lilly to supply obesity treatments. The five-year contract is estimated to be worth at least KRW 1 trillion (US$ 720 million) and potentially up to KRW 2 trillion (US$ 1.44 billion). An SK representative commented, “We cannot confirm SK Pharmteco’s contract,” and added, “It is not subject to mandatory disclosure obligations.” In the Korean stock market, conglomerates with total assets exceeding KRW 2 trillion (US$ 1.44 billion) are required to disclose contracts if the value exceeds 2.5% of the previous year’s revenue. SK’s consolidated revenue for 2023 was KRW 131.2379 trillion (US$ 94.66 billion), meaning the 2.5% threshold is approximately KRW 3.28 trillion (US$ 2.36 billion). In August 2023, SK Pharmteco announced an investment of KRW 314.7 billion (US$ 227 million) to expand its advanced small-molecule and peptide production facility in Sejong City. Peptides are raw materials formed by linking two or more amino acids and are a key component in Eli Lilly’s obesity treatment, Zepbound. Lee Ji-soo, an analyst at Daol Investment & Securities, stated, “SK Pharmteco’s small-molecule and peptide plant will be completed in 2026 and begin operations in 2027. The expansion will address the increased production demand from large-scale contracts with major pharmaceutical companies.” The global obesity treatment market is growing rapidly. Goldman Sachs, a U.S. investment bank, predicted that the global obesity treatment market would reach $130 billion (KRW 186 trillion) by 2030. Pharmaceutical giants Eli Lilly and Novo Nordisk are struggling to meet rising demand, which likely led them to choose SK Pharmteco as one of their contract manufacturers. SK Group’s investment in pharmaceuticals and bio began over 30 years ago. In 1993, SK entered the pharmaceutical and bio industry by forming a drug development team at SK Energy’s Daejeon Research Center. In 2011, SK spun off its drug development business unit to establish the subsidiary SK Biopharm, significantly strengthening its bio investments. In January 2020, SK Pharmteco officially launched as a wholly owned subsidiary of SK. SK’s bio business faced long periods without profitability. Nevertheless, Chairman Chey did not cease investments in the sector. As a result of this consistent investment, in November 2019, SK Biopharm’s epilepsy treatment Cenobamate (marketed in the U.S. as Xcopri), which was independently developed from candidate discovery to clinical trials and regulatory approval, received approval from the U.S. Food and Drug Administration (FDA). To date, over 100,000 patients in the U.S. and Europe have been prescribed Cenobamate. Chairman Chey has designated bio, battery, and semiconductor (B.B.C.) as the three core growth pillars of SK Group. His eldest daughter, Vice President Chey Yoon-jung, has also been working at SK Biopharm since 2017. In July 2023, during a business trip to the U.S., Chairman Chey visited SK Life Science, SK Biopharm’s U.S. subsidiary, to directly oversee the bio business. Chey has set a goal of building a global pharmaceutical and bio company with independent capabilities across new drug development, production, and marketing by 2030. Under this strategy, SK Biopharm will focus on new drug development, SK Pharmteco will handle production, and SK Life Science will oversee product sales. SK Group also plans to leverage its strengths in artificial intelligence (AI) for new drug development. Analysts believe that SK Group’s expertise in semiconductors can be applied to the bio business. The CDMO business shares similarities with the semiconductor business in that it requires cost reduction through mass production and consistent quality maintenance. Success in both fields also depends on quickly responding to customer demands and building trust. Kim Soo-hyun, an analyst at DS Investment & Securities, stated, “Since April and May of this year, major global pharmaceutical companies have been actively seeking non-Chinese CDMO firms, including SK Pharmteco. The estimated value of SK’s stake in SK Pharmteco is approximately KRW 5 trillion (US$ 3.6 billion).” #CheyTaeWon #SKGroup #SKPharmteco #biotechnology #obesitytreatment #EliLilly #CDMO #Cenobamate #SKBiopharm #bioinvestment #BBCCoreGrowth #Zepbound #globalpharmamarket #artificialintelligence #futurecashcow
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- DL E&C’s ACRO Returns to Seoul: Park Sang-shin Targets Urban Redevelopment
- Park Sang-shin, CEO of DL E&C, is striving to elevate the value of the company’s high-end brand “ACRO” by supplying it in Seoul for the first time in seven years. The strategy to boost ACRO’s brand value in Seoul is seen as preparation for next year’s fierce competition to secure urban redevelopment projects in the city’s key regions. According to DL E&C insiders on August 13, several ACRO-branded projects are lined up for launch in Seoul. Next year, DL E&C plans to launch sales for “ACRO de Seocho,” which will be built through the redevelopment of Seocho Shindonga Apartments in Seocho-dong 1334, in March. This will be followed in April by “ACRO RiverSky,” a redevelopment of Zone 8 in Noryangjin, located at 44-1 Daebang-dong, Dongjak-gu. These developments include around 1,000 units each, showcasing large-scale, high-end residential complexes in affluent Seocho and the large-scale redevelopment area of Noryangjin New Town. ACRO de Seocho will consist of 1,157 units, while ACRO RiverSky will offer 987 units. The outlook for the success of ACRO de Seocho and ACRO RiverSky appears positive. This optimism is fueled by the recent success of “ACRO Ritz County,” considered a litmus test for ACRO’s market performance in Seoul. Despite increasing market uncertainties, ACRO Ritz County received significant attention and was deemed a success. ACRO Ritz County, located at 1018-1 Bangbae-dong, Seocho-gu, is being rebuilt from Bangbae Samik Apartments and will feature eight buildings with 707 units, spanning from five underground floors to 26 above-ground floors. Of these, 140 units were made available for public sale. In the special supply round conducted in December, ACRO Ritz County recorded a high average competition rate of 251.4-to-1, and 482.8-to-1 in the first round (regional) public subscription. For the popular 84㎡ units, the first-round competition rate reached 825.6-to-1. The success of ACRO Ritz County holds significant meaning for DL E&C’s housing business. ACRO Ritz County marks the first ACRO-branded project completed in Seoul since the “ACRO Seoul Forest” launched in 2017. Initially introduced as a high-end brand in 2013 with “ACRO River Park” in Seocho-gu, the ACRO brand strategy focused on prime locations along the Han River. This approach, combined with individual project schedules, resulted in a prolonged absence of ACRO-branded launches in Seoul. Furthermore, ACRO Ritz County overcame challenges in its early stages, when concerns over a possible contract termination arose. In May 2020, DL E&C (formerly Daelim Industrial) secured the construction contract for the Bangbae Samik redevelopment project. However, internal conflicts among union members that same year triggered concerns over the termination of DL E&C as the construction partner. Around the same time, DL E&C lost the construction contract for Bangbae Zone 6 due to disputes over design and construction costs. Nonetheless, the company retained the Bangbae Samik project, marking its return to Seocho-gu with ACRO River Park and ACRO Riverview. CEO Park appears to have focused on enhancing ACRO’s brand value and recognition through the successful launch of ACRO Ritz County. DL E&C established a new ACRO residential exhibition hall, unveiled during the ACRO Ritz County launch, to highlight the brand’s re-entry into Seoul after seven years. CEO Park has been directly involved in enhancing the ACRO brand value, including leading its rebranding efforts. During his tenure as head of the Housing Business Division, Park spearheaded the first ACRO brand renewal in November 2019, following two years of research, development, and market analysis. The successful launch of ACRO Ritz County was largely driven by the price cap system, which is expected to yield market gains of nearly KRW 800 million (US$ 576,000) per unit. However, the value of the ACRO brand itself is also seen as a significant factor contributing to its success. Through CEO Park’s strategy to strengthen ACRO’s competitiveness, DL E&C is expected to intensify its efforts to secure housing projects, particularly in the urban redevelopment sector. Currently, DL E&C is the leading contender for the redevelopment of Zone 5 in Hannam New Town, the last remaining project in Seoul’s Yongsan-gu. DL E&C was the sole bidder in both rounds of bidding for the construction contract this year. Moving forward, DL E&C is likely to target major urban redevelopment projects in Seoul, including the redevelopment of the Seongsu Strategic Redevelopment Zone, the Yeouido reconstruction project, and the Apgujeong reconstruction project. Given the prime locations, DL E&C is expected to propose ACRO as the brand for these projects. CEO Park’s term runs until August 2027, during which he is likely to lead DL E&C’s housing business and urban redevelopment efforts in the increasingly competitive Seoul market. For CEO Park, the upcoming bids with ACRO offer a chance to redeem past setbacks. In 2020, while serving as head of the Housing Business Division, DL E&C failed to secure construction contracts for the Sinbanpo Zone 15 reconstruction project and the Hannam Zone 3 redevelopment project. DL E&C proposed ACRO for both high-profile projects on the Han River, but ultimately lost to Samsung C&T and Hyundai Engineering & Construction, respectively. The Sinbanpo Zone 15 project selected its construction partner in April 2020, and the Hannam Zone 3 redevelopment project followed in June 2020. CEO Park stepped down as head of the Housing Business Division in July of that year. DL E&C stated, “The new ACRO residential exhibition hall will be introduced again for the redevelopment of Seocho Shindonga Apartments and Noryangjin Zone 8 next year following ACRO Ritz County. We will continue to promote ACRO’s distinctive spatial philosophy and brand identity.” #DLENC #ACRO #UrbanRedevelopment #LuxuryHousing #Seocho #Noryangjin #ParkSangShin #ACRORitzCounty #SeoulRealEstate #ConstructionProjects
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- Yoon Fuels Impeachment Sentiment, Han Dong-hoon Distances Himself; Opposition Questions "Mental State"
- President Yoon Suk-yeol's abrupt national address amidst the impeachment crisis has once again shaken the political arena. After President Yoon expressed his stance that the December 3 martial law had no problems, the Democratic Party of Korea and other opposition forces strongly criticized him, questioning the president's "mental state." Not only the opposition but also Han Dong-hoon, the leader of the People Power Party (PPP), appeared to distance himself from Yoon, even suggesting the president’s expulsion. President Yoon delivered his emergency national address on the 12th at the Presidential Office in Yongsan, Seoul, regarding the December 3 martial law. He stated, "The martial law measure, carried out under the president’s legal authority, is a high-level political decision. Viewing the emergency action taken to save the nation as an act of rebellion that seeks to destroy it seriously jeopardizes our Constitution and legal framework." President Yoon’s address lasted over 25 minutes, focusing heavily on the claim that the martial law was necessary due to the “tyranny” of the dominant opposition party and asserting that it did not constitute rebellion. His remarks are widely seen as an attempt to justify the legitimacy of the martial law declaration. The Democratic Party and opposition leaders fiercely criticized President Yoon, questioning his "mental state." Kim Min-seok, a senior member of the Democratic Party, held an emergency press conference and said, "Yoon Suk-yeol’s mental state has been reconfirmed. Admitting to planning an unconstitutional and failed martial law as an emergency action is an expression of extreme delusion, an admission of illegal martial law, and effectively a declaration of war against the public." Hwang Un-ha, floor leader of the Cho Kuk Innovation Party, criticized the address, saying, "Yoon Suk-yeol’s thought process is at the level of delusion and paranoia. It is deeply disheartening that the president of South Korea has such a delusional and paranoid mindset." Yong Hye-in, leader of the Basic Income Party, added, "Rebel leader Yoon Suk-yeol has issued his final command to a small group of far-right supporters and YouTubers, telling them to follow him no matter what happens." Even Han Dong-hoon, the leader of the People Power Party, expressed disapproval, calling President Yoon’s remarks inappropriate. At a PPP parliamentary meeting on the 12th, Han Dong-hoon stated, "The president’s address did not reflect on the situation but instead justified it, effectively admitting to rebellion. The public will absolutely not tolerate this, and from the perspective of democracy, the president’s address is unacceptable." Some pro-Yoon (pro-Yoon Suk-yeol) lawmakers loudly protested, shouting for Han’s resignation. Despite this, Han ordered the convening of an emergency ethics committee to discuss Yoon’s expulsion from the party. Han’s decision to criticize the president and mention expulsion reflects concerns that Yoon’s national address may further damage public opinion. With recent polls showing 75–80% support for impeachment, the lack of remorse in Yoon’s address has only intensified calls for his resignation. Political commentator Jang Sung-cheol remarked on MBC Radio, "When the martial law was declared, people wondered if the president had ‘gone mad,’ but after today’s address, I still couldn’t find any logical reasoning to change that perception." Some analysts believe Yoon’s national address was an acknowledgment that the impeachment motion cannot be stopped. Before the address, Han Dong-hoon publicly stated that impeachment was necessary, making it increasingly likely that the impeachment motion, scheduled for a parliamentary vote on the 14th, will pass. Yoon’s claim during the address that December 3 martial law falls under a "governmental act" exempt from judicial review also supports this analysis. A governmental act refers to a concept recognized by the Supreme Court and Constitutional Court, defined as a highly political act by a state institution that is unsuitable for judicial review. However, the Supreme Court and Constitutional Court have maintained that even governmental acts can be subject to judicial review if they infringe on fundamental rights or blatantly violate the authority of other constitutional institutions. The Supreme Court ruled in 1997 during the trial of former President Chun Doo-hwan on rebellion charges that, "If the declaration or extension of martial law was carried out to achieve the purpose of disrupting constitutional order, the courts can determine whether it constitutes a criminal act."
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- Yoon Suk-yeol Defends Martial Law Legitimacy, "Exercised Legal Authority to Protect Nation"
- President Yoon Suk-yeol claimed in a national address that the December 3 martial law does not constitute rebellion and criticized the Democratic Party of Korea. In an emergency national address on the 12th, President Yoon said, “In a destructive national emergency that paralyzed state affairs, the martial law measure implemented under the president’s legal authority to protect the country and normalize governance is a high-level political decision that can only be controlled by the National Assembly’s demand for its termination.” He continued, “I immediately accepted the National Assembly’s demand for termination,” adding, “Considering an emergency measure to save the nation as an act of rebellion that seeks to destroy it puts our Constitution and legal system at serious risk.” President Yoon emphasized the legitimacy of the martial law measure and made it clear that he does not intend to step down as president. He said, “Over the past two and a half years, I have fought solely for the people, defending and rebuilding liberal democracy by standing against injustice, corruption, and violent acts disguised as democracy. I will fight together with the people until the very end.” President Yoon claimed that martial law is a constitutional authority granted to the president and explained that its purpose was to inform the public of the tyranny of the dominant opposition party. This statement suggests that he believes the martial law declaration does not involve any illegality. He stated, “I judged the current catastrophic paralysis of state affairs as a collapse of national administrative and judicial functions and exercised the president’s authority within the framework of the Constitution. The purpose was to inform the public of the dominant opposition party’s anti-national misconduct and to warn against it.” President Yoon further argued that the force paralyzing state affairs and causing constitutional disorder is the dominant opposition party. He said, “Over the past two and a half years, the dominant opposition party has refused to acknowledge the president elected by the people and has ceaselessly agitated for resignation and impeachment. They have paralyzed the state through repeated impeachment actions.” President Yoon added, “The National Assembly, controlled by the dominant opposition party, has become a monster that destroys the constitutional order of liberal democracy instead of serving as its foundation.” He criticized the dominant opposition party for blocking the revision of the espionage law, which he claimed threatens national security. President Yoon explained, “For example, in June last year, three Chinese individuals were caught operating drones to film a U.S. aircraft carrier docked in Busan. However, under current laws, there is no way to punish such foreign espionage acts as espionage crimes.” He said, “To prevent such situations, we tried to revise the espionage provisions of the Criminal Act, but the dominant opposition party firmly opposed it. Isn’t this essentially telling us not to catch spies who threaten national security?” President Yoon also criticized the opposition party for reducing the budgets for the special activity expenses of the prosecution and police, describing them as forces causing social disruption. He said, “The dominant opposition party completely cut next year’s special activity and operational expenses for the prosecution and police to zero. These are critical funds used for investigating financial fraud, crimes against the socially vulnerable, drug crimes, and counter-espionage operations.” President Yoon added, “Blocking investigations into crimes like drug trafficking and organized crime essentially turns South Korea into a haven for spies, a drug den, and a country run by gangs.” He also criticized the opposition party for reducing the government’s budget for key projects such as the "Great Whale Project," industrial ecosystem creation, and the Innovation Growth Fund. Regarding the deployment of martial law troops to the National Election Commission during the December 3 martial law, President Yoon explained that there were specific circumstances justifying the decision. He stated, “In the second half of last year, North Korean hacking attacks targeted the National Election Commission, constitutional bodies, and government institutions. The National Intelligence Service discovered this and attempted to inspect for information leaks and system safety, but the National Election Commission strongly rejected the request, citing its independence as a constitutional body.” President Yoon added, “Ahead of the April general election, we also requested improvements in problematic areas, but we could not confirm whether they were adequately addressed. Therefore, I instructed the Minister of National Defense to inspect the National Election Commission’s computer systems this time.” #PresidentYoon #MartialLaw #NationalAddress #DemocraticParty #ConstitutionalAuthority #NationalSecurity #EspionageLaw #StateParalysis #LiberalDemocracy #OppositionParty
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- POSCO's Lee Si-woo, 40 Years in Steel Industry, Faces Task of Restoring Profitability Amid Business Downturn
- As the domestic steel industry faces worsening conditions such as weakening demand and an influx of low-cost Chinese steel, attention is focused on whether POSCO CEO Lee Si-woo can fulfill the critical task of restoring profitability amid business struggles. Lee, a veteran with extensive experience in steel production and field operations, was appointed as the sole CEO in March this year, tasked with improving profitability. Industry experts, acknowledging his field-oriented expertise, refer to him as a “hands-on expert.” Amid the escalating steel industry crisis, all eyes are on CEO Lee Si-woo and whether he can restore profitability amid worsening business conditions. Since his appointment, several challenges have emerged, including declining profitability, safety issues at production sites, and conflicts with labor unions. As a production and operations expert, Lee is under pressure to resolve these issues and deliver tangible results during the downturn. According to the steel industry on the 12th, POSCO is facing a severe business crisis due to stagnant demand and the influx of low-cost Chinese steel. Lee, who became the sole CEO in March, has inherited the tasks of restoring profitability and enhancing competitiveness in the steel business, including decarbonization initiatives. However, market conditions remain unfavorable. Despite efforts such as production cuts, facility upgrades, and inventory adjustments through night operations, it has not been enough to offset domestic demand stagnation and oversupply pressures. As a result, Lee has begun a structural reorganization, focusing on exiting low-profit businesses. Citing worsening profitability, POSCO started selling its Zhangjiagang Pohang Stainless Steel Plant in China on November 7. The plant, POSCO’s first overseas stainless steel integrated facility, posted an operating loss of KRW 180 billion (USD 130 million) last year, more than double its KRW 80 billion (USD 58 million) loss in 2022. Additionally, in November, POSCO shut down its Wire Rod Plant 1 at the Pohang Steelworks after 45 years and 9 months of operation. Since it began operations on February 28, 1979, the plant produced a cumulative 28 million tons of wire rod products, undergoing two major maintenance upgrades during its lifespan. To further improve profitability, POSCO broke ground on November 5 on a rare gas plant in Gwangyang for semiconductor and display manufacturing, partnering with the Chinese company Zhongtai. Lee is also pushing forward with hydrogen reduction steelmaking, a critical shift towards low-carbon steel production in response to increasing global calls for carbon neutrality. POSCO opened a Hydrogen Reduction Steel Development Center at Pohang Steelworks in January and plans to gradually replace its traditional blast furnaces with hydrogen reduction steelmaking by 2050. However, challenges remain. The most urgent is restoring profitability. Chinese steel manufacturers, facing declining domestic demand due to the real estate downturn since 2022, have flooded overseas markets with low-cost products. POSCO has not been spared from this competition. POSCO's 2021 operating profit was KRW 6.65 trillion (USD 4.79 billion), with an operating margin of 17%, but this plummeted by 65.5% to KRW 2.08 trillion (USD 1.5 billion) in 2023. Last year’s operating profit fell further to KRW 2.08 trillion (USD 1.5 billion). For the first three quarters of this year, cumulative operating profit stands at KRW 1.15 trillion (USD 830 million), and it is expected to decline further by year-end. Safety issues at production sites are also urgent. On November 10, an explosion and large fire occurred at Pohang Steelworks’ FINEX Plant 3, requiring five hours to extinguish. One worker inside the facility suffered burns to his hands and face. While POSCO claimed there would be no disruption to operations by running other furnaces flexibly, it faced criticism for failing to address the psychological and material damages suffered by nearby residents. Pohang Steelworks has experienced four fires this year alone, resulting in injuries to five workers since Lee's tenure began. Labor disputes remain another significant challenge. POSCO faces tensions with both its regular and subcontracted workers' unions. The regular workers' union is threatening to strike for the first time in the company's 56-year history. On December 2, the union held a strike rally in front of the Pohang Steelworks headquarters, signaling their intent to strike if negotiations remain stalled. Meanwhile, the subcontracted workers’ union is also pushing back, demanding an end to illegal dispatch practices. The union argues that POSCO continues to rely on subcontracted labor despite court rulings mandating fair treatment and regularization of these workers. Lee Si-woo, born in 1960, graduated from Hanyang University with a degree in Metallurgy and joined Pohang Iron and Steel (POSCO) in 1985. Over his 40-year career at POSCO, he has built extensive expertise in steel production and operations. Lee gained international experience as head of POSCO’s India operations before being appointed co-CEO alongside former Vice Chairman Kim Hak-dong last year. Following Kim's resignation, Lee became the sole CEO in March. Lee, known as a "POSCO man" and a hands-on veteran, now faces the daunting task of navigating the company through its most challenging period yet, balancing profitability restoration, on-site safety improvements, and labor conflict resolutions. #POSCO #LeeSiwoo #steelindustry #profitability #Chineseimports #hydrogensteelmaking #labordisputes #safetyissues #businessrestructuring #carbonneutrality
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- Intensified 2025 Redevelopment Market: Lee Han-woo Aims to Keep Hyundai E&C on Top
- As competition in the domestic urban redevelopment market is expected to intensify, the burden on Lee Han-woo, Executive Vice President and CEO of Hyundai Engineering & Construction (E&C), is also growing. Recognized for his expertise in housing, Lee was chosen as the new CEO and is expected to make achieving Hyundai E&C's seventh consecutive year as the top urban redevelopment contractor in 2025 a key management goal. According to trends in the construction industry on the 11th, one of the most notable changes this year has been the replacement of CEOs at major construction companies in response to the prolonged economic downturn. Following the regular general shareholder meetings in March, six out of the top 10 construction companies ranked by the Ministry of Land, Infrastructure, and Transport’s construction capability evaluation either appointed or changed CEOs. Hyundai E&C, Daewoo E&C, Hyundai Engineering, and HDC Hyundai Development Company replaced their CEOs during year-end personnel reshuffles, while DL E&C and SK Ecoplant appointed new CEOs in July. It is considered rare for more than half of the leading construction companies to change their CEOs in a single year. Just a year ago, when concerns over project financing (PF) contingent liabilities were severe, only three companies—POSCO E&C, Lotte E&C, and GS E&C—underwent leadership changes in their 2023 personnel reshuffle, with GS E&C transitioning to owner-led management. A closer look at the new CEOs shows a noticeable rise of executives with financial expertise. However, Lee Han-woo of Hyundai E&C is the only one evaluated as continuing the housing specialization tradition, similar to former President Yoon Young-joon. Since late 2022, Lee has led Hyundai E&C’s housing business division, earning recognition as a housing expert. After joining Hyundai E&C in 1994, he has held key roles such as head of the Building Planning Office, head of the Building and Housing Support Office, and head of Strategic Planning, showcasing a balance of field experience and expertise in strategy and planning. The Hyundai Motor Group stated, “Lee is expected to lead the paradigm shift in the construction industry.” Given his accumulated experience, Lee’s primary task is expected to be maintaining competitiveness in the housing business. The urban redevelopment sector, where Hyundai E&C is seen as having a competitive edge, is a key focus area for Lee. Hyundai E&C is on track to achieve the top spot in annual urban redevelopment project contracts for the sixth consecutive year. For Lee, extending this record to seven years in his first year as CEO would hold significant meaning for both him and the company. As of this year, Hyundai E&C has secured KRW 6.0612 trillion (USD 4.37 billion) in new orders. Considering the gap with POSCO E&C, which is in second place with KRW 4.7191 trillion (USD 3.4 billion), and the remaining project selections, Hyundai E&C has virtually secured its top position. However, the increasing intensity of competition for urban redevelopment orders in the construction industry is a burden. This suggests that Lee’s task of maintaining the top position in new urban redevelopment orders will not be easy. Recently, urban redevelopment projects have gained prominence in the housing business as they are relatively free from concerns over PF contingent liabilities and unsold housing units. With an increasing number of old residential complexes over 30 years old in South Korea, urban redevelopment is regarded as a stable business with high potential to enhance housing brand value in key areas. Although it was initially predicted that the prolonged housing market recession would make construction companies more cautious in bidding for urban redevelopment projects, the market has expanded further this year, as shown by contract performance. According to the construction industry, as of this date, the total value of urban redevelopment orders (based on contractor selection) secured by the top 10 construction companies this year is estimated at KRW 25.05 trillion (USD 18.06 billion), already surpassing the annual total of KRW 20.04 trillion (USD 14.46 billion) from last year. By company, while two firms (Lotte E&C and HDC Hyundai Development) failed to reach KRW 1 trillion (USD 722 million) in orders last year, all construction companies have secured orders exceeding KRW 1 trillion this year. Additionally, Samsung C&T, ranked first in construction capability, is expected to turn more aggressive in its bidding strategies, leveraging its “Raemian” brand power. Observers predict an even more competitive race for urban redevelopment projects next year. The upcoming result of the bidding for the Hannam District 4 Redevelopment Project (Hannam 4 Urban Renewal Promotion District Housing Redevelopment Project), about a month away, is seen as both an opportunity and a burden for Lee. The Hannam District 4 redevelopment project involves constructing 2,331 residential units and ancillary welfare facilities in the Bogwang-dong area of Yongsan-gu, Seoul. The contractor selection general meeting is scheduled for January 18, 2025, with the estimated construction cost set at KRW 1.5724 trillion (USD 1.13 billion). It is considered the final battleground of the Hannam New Town redevelopment area. Given that Hyundai E&C and Samsung C&T are competing for the first time in 17 years for this project, it has garnered the most attention in the urban redevelopment industry over the past two to three years. After the bidding deadline, Hyundai E&C and Samsung C&T have each emphasized collaborations with globally renowned architects, launching a competition focused on high-end designs. Recently, both companies have proposed bold financial terms to win the favor of union members. Hyundai E&C proposed a construction cost of KRW 1.4885 trillion (USD 1.07 billion), which is KRW 86.8 billion (USD 62.6 million) lower than the union’s suggested amount, emphasizing that this would reduce the burden on each union member by approximately KRW 72 million (USD 52,000). It also highlighted a commitment to guaranteed completion. Samsung C&T proposed terms allowing union members to pay their contributions not at the time of move-in but four years later, aiming to provide more financial flexibility. It also guaranteed a minimum relocation cost of KRW 1.2 billion (USD 867,000). If Lee secures the Hannam District 4 redevelopment project, Hyundai E&C’s housing business is expected to gain significant momentum early in his tenure. The former CEO, Yoon Young-joon, appointed in 2020, also demonstrated sincerity to union members during the bidding for the Hannam District 3 redevelopment project, which Hyundai E&C won in June of the same year. Conversely, failure to secure the Hannam District 4 project, regarded as a precursor to the Apgujeong redevelopment project, could mark a disappointing start to Lee’s tenure. During Lee’s term, major urban redevelopment projects are expected to continue, solidifying Hyundai E&C’s position in Seoul’s housing market. Following the near-completion of redevelopment in areas such as Heukseok New Town, Noryangjin New Town, and Hannam New Town, major projects, including the KRW 6 trillion (USD 4.34 billion) Apgujeong redevelopment complexes, the highly sought-after Seongsu Strategic Redevelopment District, and the Yeouido redevelopment project, are preparing to select contractors sequentially. The reconstruction of Mok-dong New Town Apartments (complexes 1 to 14), which house over 26,600 units, is also expected to enter the contractor selection stage as early as next year. #LeeHanwoo #HyundaiEC #UrbanRedevelopment #HousingBusiness #Hannam4Project #ConstructionIndustry #HyundaiMotorGroup #SeoulRedevelopment #ResidentialConstruction #ApgujeongReconstruction
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- Shin Hak-cheol Survives Industry Shake-Up, Accelerates LG Chem's Business Restructuring
- Shin Hak-cheol, the Vice Chairman and CEO of LG Chem, is expected to accelerate the company’s business restructuring. Shin plans to enhance the portfolio of the petrochemical business while focusing on developing three new growth engines: battery materials, biotechnology, and sustainability. To fund these initiatives, LG Chem secured approximately KRW 1.1 trillion (USD 793.4 million) last year by selling its polarizer and materials businesses. Attention is now on whether Shin, who has been leading LG Chem since 2018, can successfully implement his portfolio revival strategy and establish a foundation to overcome the structural crisis in South Korea’s petrochemical industry. According to reports from the petrochemical industry on the 11th, South Korean chemical companies that rely heavily on basic feedstock businesses—such as producing ethylene, propylene, butadiene, and BTX—are facing an escalating management crisis. This is due to China’s expansion of its petrochemical facilities under its self-sufficiency policy, flooding the market with low-cost petrochemical products. Additionally, Middle Eastern refineries are investing in crude oil-to-chemicals (COTC) facilities to address declining oil demand, leading to a prolonged oversupply situation in the region. Companies such as Lotte Group, Hanwha Group, and SK Group have responded to the massive losses in their chemical affiliates by replacing many of their chemical division executives during this year’s personnel reshuffle. While a reshuffle was also anticipated at LG Chem, LG Group Chairman Koo Kwang-mo reappointed Shin Hak-cheol last month. This move suggests that Koo has tasked Shin, who is leading the company’s portfolio restructuring, with accelerating structural improvements. Accordingly, Shin is expected to focus even more on fostering LG Chem’s “three new growth engines”: battery materials, new drugs, and sustainability. The three new growth engines have been Shin’s key initiatives since 2021, with more than 60% of the company’s total investments directed toward these areas. In the battery materials sector, LG Chem aims to expand its annual cathode material production capacity from 140,000 tons in 2024 to 200,000 tons by 2026. It also plans to increase revenue from battery manufacturers other than LG Energy Solution to 40%. Some speculate that the company may delay its cathode material investment plans due to prolonged stagnation in electric vehicle (EV) sales and concerns over potential cuts to EV subsidies if Donald Trump regains the U.S. presidency. However, during his visit to the United States on March 9 (local time), Shin indicated that the cathode material plant construction in Tennessee, which began at the end of 2023, will remain largely unaffected by changes in U.S. political leadership. In the pharmaceutical sector, LG Chem announced its goal to expand the number of new drug candidates in oncology, immunology, metabolism, and diabetes from 12 in 2023 to 20 by 2030. The U.S. pharmaceutical company AVEO, acquired for approximately KRW 800 billion (USD 577.5 million) in early 2023, is central to strengthening LG Chem’s oncology-focused drug pipeline. The sustainability business is closely linked to upgrading the underperforming petrochemical sector. LG Chem aims to reduce its reliance on basic feedstock businesses while actively expanding its portfolio in recycled products, eco-friendly bio-materials, and renewable energy materials. The existing petrochemical segment will also shift toward high-value-added products. LG Chem plans to complete acrylonitrile-butadiene-styrene (ABS) plants in the United States and India this year and is considering further expansion investments. Additionally, the company recently announced plans to grow its automotive adhesive business to a scale worth several hundred billion KRW by 2030. Some industry observers predict that LG Chem will intensify its search for mergers and acquisitions (M&A) targets to accelerate the development of its new growth engines. This speculation follows the anticipated promotion of Lee Ji-woong, who oversees M&A, during LG Chem’s year-end personnel reshuffle. Alongside fostering the three new growth engines, Shin must also finalize the decision on whether to sell LG Chem’s naphtha cracking center (NCC) Plant 2 in Yeosu. Since late 2023, there have been persistent rumors of its sale, with reports indicating ongoing negotiations with Kuwait Petroleum Corporation. Born in 1957, Shin Hak-cheol graduated from Seoul National University with a degree in mechanical engineering and rose to the position of Executive Vice President at 3M. He was the first external recruit under LG Group Chairman Koo Kwang-mo’s leadership after Koo took over in 2018, breaking LG’s tradition of appointing internally promoted executives. Shin is regarded as a prime example of a meritocratic appointment. His retention as LG Chem’s CEO in this year’s personnel reshuffle has reaffirmed Koo’s strong trust in him, according to industry insiders. After being appointed as a co-chair of the Summer Davos Forum in June, Shin stated, “LG Chem will accelerate its transition toward the three new growth engine businesses—battery materials, eco-friendly materials, and others—by collaborating with global leaders across various sectors, from advanced chemical materials to AI, energy, and healthcare.” #ShinHakcheol #LGChem #BusinessRestructuring #BatteryMaterials #NewGrowthEngines #Sustainability #PetrochemicalIndustry #CathodeMaterials #AVEO #GlobalExpansion
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- Lee Hwan-ju, Driver of KB Financial’s Non-Banking, Aims to Regain ‘Leading Bank’ at KB Kookmin Bank
- Lee Hwan-ju, the nominee for KB Kookmin Bank’s next CEO, is emerging as a key figure in leading the Yang Jong-hee-led KB Financial Group. In financial holding companies, banks play a core role, contributing significantly to performance while holding symbolic importance in terms of brand recognition and image. Starting next year, Lee will spearhead Yang Jong-hee, KB Financial Group Chairman's broader vision of expanding non-interest income and enhancing corporate value through capital management. Key tasks for Lee include regaining KB Kookmin Bank’s “leading bank” status and normalizing global operations. According to projections from the securities and financial industries on December 10, 2025 is expected to see a slowdown in profit growth across the banking sector due to an interest rate cut trend and strict household loan regulations. Park Hye-jin, a researcher at Daishin Securities, noted in her 2025 banking industry outlook report, “Pressure on banks’ margins will continue into 2025. Financial authorities are likely to tighten household loan regulations further, and prioritizing the management of risk-weighted assets (RWA) will inevitably result in slower growth.” Kim Do-ha, a researcher at Hanwha Investment & Securities, added, “While banks’ earnings volatility is low, the Bank of Korea is likely to make its second rate cut earlier than expected, which means that banks’ net interest margins (NIM) must be adjusted downward.” Additionally, the recent emergency martial law incident has heightened domestic financial policy and political uncertainty, raising concerns about external credit reliability. Banks could see reduced activity not only in household loans but also in corporate lending and other traditional deposit and loan services. Lee faces a heavier challenge of increasing non-interest income in response to stagnation in the bank’s core lending sector. Synergy with non-banking affiliates will be critical for expanding non-interest income, and Lee is seen as the right candidate for this task. The KB Financial Group CEO Nomination Committee (Daechuiwi) selected Lee as the next CEO of KB Kookmin Bank, emphasizing that maximizing synergy between banking and non-banking businesses is a key task. The committee stated, “Lee demonstrated exceptional ability during his tenure as CEO of KB Life Insurance, successfully overseeing the integration of Prudential Life Insurance and KB Life Insurance and expanding into new markets like elder care.” Lee has held key positions at KB Kookmin Bank for over 30 years, including Head of the Foreign Exchange Business Division, Head of the Personal Customer Group, and Vice President of the Corporate Planning Group. He also served as the first CEO of KB Life Insurance, successfully managing the integration of systems, improving performance, and achieving chemical unification of the company. While serving as Chief Financial Officer (CFO) of KB Financial Group, Lee also took on roles such as a non-executive director at KB Kookmin Card and KB Securities, contributing to the growth of non-banking affiliates and earning recognition for his efforts. He was the first CFO to join the KB Securities board. Recently, KB Kookmin Bank and other major commercial banks have been focusing on wealth management as a new growth driver. As competition intensifies in the KRW 400 trillion (approximately USD 288 billion) retirement pension market, banks are placing greater emphasis on developing asset management products such as Exchange-Traded Funds (ETFs) and strengthening collaboration in customer asset management services, targeting not only high-net-worth individuals but also the broader market. The group-wide synergy in digital competitiveness, including artificial intelligence (AI), is also essential. This is because the adoption of digital technology has become a necessity for maintaining competitiveness in domestic deposit and loan businesses and for entering global markets. Strengthening the competitiveness of the non-banking portfolio is also a key management strategy emphasized by Chairman Yang Jong-hee. In his New Year’s address, Yang set management goals to enhance trust among customers and markets across four areas: wealth management, investment operations, insurance, and global business, while also pushing for non-banking affiliates to become industry leaders. Lee is also expected to focus on regaining KB Kookmin Bank’s leading bank position through financial management, including expanding non-interest income and improving cost efficiency. KB Financial currently maintains its top position among the four major financial holding companies in terms of net profit. However, KB Kookmin Bank has recently fallen behind in the “leading bank” competition. Until 2021, KB Kookmin Bank and Shinhan Bank were neck-and-neck in net profit rankings. KB Kookmin Bank claimed the leading bank title in 2019 and 2021, while Shinhan Bank took the top spot in 2018 and 2020. However, Hana Bank rose to the top in 2022 and 2023 by strengthening its corporate finance capabilities, and Shinhan Bank currently leads the market in 2024. In the first three quarters of this year, KB Kookmin Bank ranked third in cumulative net profit, following Shinhan Bank and Hana Bank, partly due to losses from Hong Kong H-Index-linked Equity-Linked Securities (ELS) in the first quarter. Lee earned recognition for his management ability by stabilizing the integration process and achieving performance improvements following KB Life Insurance’s acquisition of Prudential Life Insurance. KB Life Insurance’s net profit increased by 88.7% in 2023. Although net profit for the first three quarters of this year fell by 0.9% compared to 2023, the new solvency ratio (K-ICS), a key measure of insurers’ capital soundness, improved to 286.4% in the third quarter, up 9.4 percentage points year-over-year, demonstrating Lee’s financial management capabilities. With his appointment as the CEO of KB Kookmin Bank under Yang Jong-hee’s leadership, Lee has solidified his presence within the group. By holding key roles in the bank, financial group, and non-banking affiliates, Lee has completed the “elite course” within KB Financial Group. If Lee successfully restores KB Kookmin Bank’s performance and global operations to reclaim its leading bank status, his position within the group will become even stronger. Lee, born in 1964, graduated from Sunrin Commercial High School and studied business administration at Sungkyunkwan University. He earned a master’s degree in business administration from the University of Helsinki in Finland. He joined KB Kookmin Bank in 1991 and served as Head of the Foreign Exchange Business Division, Executive Director of the Personal Customer Group, and Vice President of the Corporate Planning Group. He became CFO of KB Financial Group and was appointed CEO of KB Life Insurance in January 2022. From 2023, he has served as CEO of KB Life Insurance. During his tenure as CFO, he worked closely with Chairman Yang Jong-hee, who was then Vice Chairman of the group. #LeeHwanJu #KookminBank #KBFinancialGroup #YangJongHee #LeadingBank #NonInterestIncome #FinancialManagement #KBLifeInsurance #DigitalTransformation #GlobalBanking
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- Nexon Partners with Tencent to Target China, Lee Jung-hun Seeks to Overcome Domestic Slump
- Lee Jung-hun, CEO of Nexon, is intensifying efforts to target the Chinese market to offset the sluggish domestic gaming industry. He has consistently emphasized 'hyper-localization' as the key focus of Nexon’s overseas business, underscoring the importance of customized localization strategies for each region. Currently, China has emerged as the most important overseas market for Nexon. Accordingly, Nexon plans to collaborate with Tencent, the Chinese IT giant that has long managed the local service for Nexon’s flagship intellectual property (IP), the side-scrolling action role-playing game (RPG) 'Dungeon & Fighter'. The two companies will release new games based on the 'Dungeon & Fighter' IP in China. According to industry reports on December 10, Nexon appears to be accelerating its strategy to penetrate the Chinese market using the highly successful 'Dungeon & Fighter' IP. On December 9, Nexon announced that Tencent would manage the Chinese release of 'First Berserker Kazan', an action RPG based on the 'Dungeon & Fighter' IP. Nexon’s strategy focuses on utilizing Tencent’s extensive operational experience with 'Dungeon & Fighter' in China to enhance localization. Tencent began offering 'Dungeon & Fighter' in China under the title 'Dungeon and Warriors' (地下城与勇士) in November 2007. On May 21, 2024, Tencent also began managing the Chinese service for 'Dungeon & Fighter Mobile'. The game’s immense popularity pushed Nexon’s Chinese revenue share 6 percentage points higher than its domestic revenue share in Q2 2024. This trend continued into Q3 2024, where Nexon achieved its highest-ever quarterly revenue, with the Chinese revenue share surpassing the domestic share by 7 percentage points. The increase in Chinese revenue was due to growth in both PC and mobile game sales in China during Q3 2024, while domestic PC and mobile game revenues declined. This divergence resulted from contrasting revenue trends for 'Dungeon & Fighter' and 'MapleStory'. Until Q4 2023, 'MapleStory' had maintained its position as the top domestic PC game for Nexon. However, following a probability manipulation controversy involving the in-game currency 'Cube' in January 2024, 'MapleStory' experienced a rapid decline in user numbers. According to 'Meage', a site that tracks 'MapleStory' user statistics, the number of users dropped from 518,000 on January 4, 2024, to 302,000 as of December 5, 2024, marking a 41.55% decrease. This decline in users led 'MapleStory'’s domestic revenue to fall, with the game being overtaken by the sports game 'FC Online' as Nexon’s top domestic title starting in Q1 2024. As 'MapleStory', which has traditionally generated approximately KRW 400 billion (USD 288 million) annually, saw its revenue contribution decline, Nexon’s domestic revenues also decreased. At Nexon’s Q3 2024 earnings announcement on November 12, Lee acknowledged the struggles, stating, 'MapleStory has faced significant challenges this year domestically. We will overhaul its business model and implement improvements starting next year.' Despite declines in its primary domestic market, Nexon’s reliance on new 'Dungeon & Fighter'-based releases has become even more critical as the Chinese market has significantly driven overall revenue growth. Reflecting this focus, Nexon has developed the largest number of new games based on the 'Dungeon & Fighter' IP among its upcoming titles. In addition to 'First Berserker Kazan', which Tencent will publish, Nexon’s subsidiaries Neople and Nexon Games are also developing 'Project Overkill', a 3D action RPG, and 'Dungeon & Fighter Arad', an open-world action RPG, respectively. Including the two currently serviced games and the three new titles under development, Nexon will ultimately offer a total of five games based on the 'Dungeon & Fighter' IP. Lee previously outlined a future strategy of 'vertical growth' for Nexon, which expands blockbuster IPs into different genres. Among its upcoming titles, games based on the 'Dungeon & Fighter' IP remain the most numerous. Ultimately, Lee’s vision appears to leverage the success of 'Dungeon & Fighter' in China to further solidify Nexon’s market position there. In addition, Nexon announced in August that Tencent would also manage the Chinese release of 'The Finals' and 'Arc Raiders', two shooting games developed by Embark Studios, a Nexon-owned overseas developer. An industry insider stated, 'With growing competition in the global gaming industry, Korean game companies are increasingly looking overseas for new opportunities. Given Nexon’s strong Dungeon & Fighter IP and its significant influence in China, it appears Nexon is intensifying its efforts to penetrate the Chinese market with new releases.' #LeeJungHun #Nexon #DungeonAndFighter #Tencent #ChinaGamingMarket #LocalizationStrategy #ChineseRevenue #MapleStory #GameDevelopment #MobileGaming
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- Kim Young-rak Drives LG's Appliance Subscription, Accelerates KRW 100 Trillion Market Expansion
- Kim Young-rak, head of LG Electronics’ Korea Sales Division, was promoted to president in the 2025 regular executive reshuffle, accelerating the company’s efforts to dominate the domestic home appliance subscription market, which is valued at KRW 100 trillion (approximately USD 72.1 billion). Kim has been leading the transformation of LG Electronics’ home appliance business model to focus on subscriptions in Korea. Starting next year, fierce competition with Samsung Electronics is expected. According to reports compiled from the home appliance industry on December 10, LG Electronics’ subscription sales are expected to surpass KRW 1.8 trillion (approximately USD 1.3 billion) in 2024, with a goal of exceeding KRW 2 trillion (approximately USD 1.44 billion) in 2025. The share of subscription sales in LG Electronics’ total domestic home appliance sales increased from 15% in 2023 to 20% in 2024. It has been reported that more than three out of ten consumers purchasing premium appliances use subscription plans. Over the past five years, the average annual growth rate of the home appliance subscription business has reached 30%. An industry insider said, “Despite the economic downturn, which has made consumers more hesitant to spend, LG Electronics has overcome this situation through subscription services. The paradigm of appliance purchasing is gradually shifting.” Kim Young-rak is regarded as the key architect behind the successful establishment of LG Electronics’ home appliance subscription business model. After being appointed head of the Korea Sales Division at the end of 2022, Kim decided to expand appliance subscriptions beyond small appliances to include large appliances. This decision was driven by the need to find a new breakthrough amid shrinking domestic demand and intensifying competition in the home appliance market. Kim diversified sales channels by leveraging LG Best Shop, LGE.com, department stores, Electromart, and Homeplus, successfully attracting consumers. LG Electronics’ rapid expansion of subscription service sales channels is attributed to Kim’s extensive network in the distribution industry. He also introduced flexible subscription plans ranging from three to seven years, giving consumers more options. As a result, LG Electronics quickly dominated the domestic home appliance subscription market, and Kim was promoted to president in recognition of his contributions. Currently, LG Electronics offers subscription services for 23 products, including refrigerators, washing machines, vacuum cleaners, TVs, and massage chairs. The home appliance subscription market is expected to grow further. The KT Economic Research Institute predicted that Korea’s home appliance subscription market will grow from KRW 40 trillion (approximately USD 28.8 billion) in 2020 to KRW 100 trillion (approximately USD 72.1 billion) in 2025. The analysis highlights that as more consumers prefer “using” appliances over “owning” them, the subscription market will expand rapidly. Home appliance subscriptions also offer advantages from a corporate profitability perspective. Companies can provide additional services such as product maintenance and replacement of consumables, leading to an estimated operating profit margin of 10%, roughly twice the average operating profit margin of 5% for traditional appliance sales. Furthermore, subscription plans reduce the upfront payment burden for consumers, making it easier to sell premium products. Jung Min-kyu, a researcher at SangSangIn Securities, said, “Home appliance subscription services can create synergy with the premiumization trend, which aims to overcome stagnant or declining growth in the front-end market. The subscription model alleviates the purchasing burden associated with higher average selling prices by removing the need for upfront lump-sum payments.” Samsung Electronics also entered the home appliance subscription market on December 1 with the launch of the “AI Subscription Club.” The service includes TVs, refrigerators, washing machines, and vacuum cleaners, with more than 90% of the products featuring artificial intelligence (AI). This move directly challenges LG Electronics’ dominance in the large appliance subscription market. Samsung also plans to introduce remote diagnostic and repair services that do not require engineer visits. Therefore, Kim Young-rak’s strategy to maintain LG Electronics’ leadership in the home appliance subscription market will become even more critical in 2025. Kim Dong-won, a researcher at KB Securities, said, “Kim Young-rak has been recognized for expanding the home appliance subscription business model in the Korean market and achieving results in direct-to-consumer (D2C) sales based on online shops. Through business structure changes driven by the expansion of new businesses like appliance subscriptions, LG Electronics’ earnings volatility is expected to decrease compared to the past.” #KimYoungRak #LGElectronics #HomeApplianceSubscription #KRWtoUSD #LGvsSamsung #growingmarket #premiumappliances #consumertrends #AItechnology #subscriptioneconomy
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- Samsung’s Han Jin-man in Spotlight as Foundry Savior, Leading Crisis Escape with 2-Nano Technology
- Samsung Electronics' foundry (semiconductor contract manufacturing) business is facing an escalating crisis as the market share gap with TSMC widens. Attention is now focused on whether the newly appointed Han Jin-man, Head of the Foundry Business Division, can play the role of a savior and lead the turnaround. Han is seen as capable of addressing Samsung Foundry’s shortcomings by leveraging his expertise in semiconductor technology and strong overseas customer network. Samsung Electronics also appointed Nam Seok-woo as Chief Technology Officer (CTO) for the Foundry Division. With two presidents who specialize in technology at the forefront, expectations are high for a reversal in the 2-nanometer process technology. According to reports gathered from the semiconductor industry on the 9th, the crisis in Samsung Electronics' foundry business is deepening. According to Taiwanese market research firm TrendForce, Samsung Electronics’ foundry revenue market share for Q3 this year was 9.3%, with TSMC holding 64.9%, resulting in a gap of 55.6 percentage points. For the first time since the establishment of its Foundry Division, Samsung’s market share fell below 10%. Han Jin-man is being evaluated as the right person to overcome Samsung Foundry’s crisis. Analysts believe he has the ability to address the two major issues Samsung Foundry faces: "customer-centricity" and "technological strength." Han has significant expertise in semiconductor technology, having served in positions such as team leader for DRAM and flash memory design, SSD development, and Strategic Marketing. He also has extensive experience in customer relations, having worked as Vice President of Device Solutions Americas (DSA), overseeing Samsung’s semiconductor business in North America. Regarding Han’s appointment, Samsung Electronics explained, “We expect Han’s extensive global customer experience to strengthen process technology innovation and enhance customer networks.” Customer relations have been pointed out as a weakness of Samsung Foundry. Unlike the memory semiconductor business, where Samsung manufactures and sells products directly to customers, the foundry business, which involves contract manufacturing for client products, requires a different understanding of customer needs. Joanne Chiao, a foundry researcher at TrendForce, said, “The memory semiconductor industry that Samsung focuses on is fundamentally different from the foundry business. Samsung must accumulate experience and align itself with customer demands to attract more clients.” Han recently held a “Samsung Foundry Design Solution Partner Connect” event in the United States, where he met with customers and design house companies that provide design and process support. This event reportedly focused on fostering business cooperation. Han is also expected to focus on addressing Samsung Foundry’s technological lag behind TSMC. Samsung Electronics recently created the CTO position within the Foundry Division through its year-end executive reshuffle and appointed Nam Seok-woo to the role. Nam is a semiconductor process technology expert who has served as Head of the Manufacturing Technology Center for Memory/Foundry and Head of Manufacturing & Technology for the Device Solutions (DS) Division. In a message to employees, Han stated, “We must acknowledge that our technological capabilities lag behind our competitors. While we cannot catch up to major foundry companies in the short term, we must enhance our technological competitiveness so we can confidently provide our foundry services.” Han is particularly focused on developing 2-nanometer processes. Samsung lost competitiveness in the 3-nanometer process after losing most major customers to TSMC. Samsung Foundry has struggled with low yields (the proportion of functional products) for its 3-nanometer process for a long time. Several foreign media outlets, including MoneyDJ and Android Police, cited tipsters claiming that Samsung Foundry’s 3-nanometer yield stands at 50-60%, while TSMC’s 3-nanometer yield is reported to be around 90%. Han expressed a strong commitment to solving yield-related technical issues. He said, “We need to drastically improve process yields and thoroughly identify every knob that can enhance power, performance, and area (PPA).” However, rapid technological catch-up remains essential. Samsung Electronics’ 2-nanometer yield, which is expected to enter mass production next year, is reportedly at 10-20%. TSMC recently announced that its 2-nanometer yield exceeded 60% and confirmed plans to begin mass production in 2025. An industry official commented, “It remains to be seen whether Samsung Foundry will achieve significant growth next year. Overcoming the technological gap is not an easy task, but with company-wide efforts, there is hope that market share can recover.” #SamsungElectronics #Foundry #HanJinman #TSMC #SemiconductorManufacturing #MarketShare #2Nanometer #TechnologicalCompetitiveness #YieldImprovement #NamSeokwoo
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- Samsung C&T’s Oh Se-chul Sharpens HVDC Strategy, Proving Reappointment with Global Expertise
- Oh Se-chul, the President and CEO of Samsung C&T Corporation’s Construction Division, is focusing on the overseas high-voltage direct current (HVDC) business. This move appears to reflect his intention to leverage his experience as an overseas business expert to secure future growth engines for Samsung C&T and justify his reappointment during this year’s executive reshuffle. According to Samsung C&T on December 9, Oh has decided to strengthen cooperation with Hitachi Energy to bolster Samsung C&T’s position in the HVDC business sector. On this day, Samsung C&T and Hitachi Energy signed a memorandum of understanding (MOU) to expand global HVDC business cooperation and participation opportunities at the Hitachi Energy Korea headquarters in Trade Tower, Samseong-dong, Gangnam-gu, Seoul. During the agreement signing, the two companies discussed ways to combine their core competencies in HVDC projects. The meeting also included discussions about Hitachi Energy’s cooperation in supplying and installing key equipment for Samsung C&T’s ongoing project in the United Arab Emirates (UAE), valued at KRW 3.5 trillion (US$ 2.52 billion). Currently, Samsung C&T’s Construction Division is directly engaged in HVDC-related projects only through its UAE subsea HVDC project. The project involves building a subsea transmission network connecting two onshore areas near Abu Dhabi, the UAE’s capital, with two offshore islands housing oil production facilities. Samsung C&T is responsible for the supply and installation of converter substations, substations, and subsea high-voltage direct current (HVDC) cables. The contract value, reflecting Samsung C&T’s share, was USD 2.295 billion (KRW 2.73 trillion) as of 2021 out of the total contract value of USD 3.019 billion. According to Samsung C&T’s Q3 2024 report, the project’s base contract amount is KRW 3.1026 trillion (US$ 2.24 billion). The contract period runs from December 2021 to December 2025, and as of the end of September 2024, the project progress stands at 56.8%. Based on the experience gained from the UAE subsea HVDC project, Oh is expected to broaden Samsung C&T’s presence in the global HVDC market. The importance of HVDC power grid construction is increasing globally as the energy industry undergoes a transition. In the global power infrastructure market, the share of direct current (DC) power sources such as solar power is rising due to the decarbonization trend, reinforcing the shift from alternating current (AC) to DC. Furthermore, HVDC transmission is gaining attention for its advantages over AC, including reduced power loss and higher transmission efficiency. Given the prolonged domestic construction slump and mounting global economic recession risks, the HVDC market, which is expected to grow significantly, presents a promising future business opportunity for Samsung C&T under Oh’s leadership. According to Fortune Business Insights, the global HVDC transmission systems market was valued at USD 10.26 billion (KRW 14.21 trillion) in 2023 and is projected to grow from USD 10.93 billion (KRW 15.15 trillion) in 2024 to USD 22.01 billion (KRW 30.5 trillion) by 2032, with a compound annual growth rate (CAGR) of 9.14% during this period. Recently, Samsung C&T has taken various steps to strengthen its HVDC-related capabilities. At the beginning of this year, Samsung C&T posted a job opening on the employment site JobKorea for experienced professionals in the HVDC plant sector, signaling its efforts to recruit high-level talent. The posting, which required a minimum of 15 years of experience, mentioned Australia as a work location in addition to the UAE, where ongoing projects are underway. While Samsung C&T is pursuing green hydrogen projects in Australia, it is not yet known to be preparing for any HVDC projects there. A Samsung C&T official told Business Post, “There are no specific internal movements, such as forming a team to pursue HVDC projects in Australia at this time. However, as we strengthen partnerships with overseas companies to enter the global market, project reviews with future overseas expansion in mind will proceed.” Hitachi Energy, which is strengthening its partnership with Samsung C&T, is currently conducting HVDC projects in Australia. One such project is the “Marinus Project,” which connects mainland Australia with Tasmania. The Marinus Project involves constructing a subsea HVDC facility using a 345km-long undersea cable to enable bidirectional transmission of 750 MW of power. Given its bidirectional nature, the total transmitted power amounts to 1,500 MW. The Marinus Project is considered a critical initiative that will play a fundamental role in the energy ecosystem of Tasmania and Victoria. HVDC projects are gaining importance in Australia. In October 2024, the Singapore government granted conditional approval for an undersea cable project connecting Australia and Singapore. This project aims to deliver renewable energy via the world’s longest undersea power cable, spanning 4,300 km, and supply 1.75 GW of renewable energy from Australia to Singapore. The total project value is estimated at USD 20 billion (KRW 28 trillion). Once completed, approximately 9% of Singapore’s electricity demand will be met by renewable energy produced in Australia’s solar power plants. #OhSechul #SamsungCT #HVDC #HitachiEnergy #GlobalExpansion #UAEProject #MarinusProject #RenewableEnergy #EnergyInfrastructure #UnderseaCable
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- Lotte Group Enters Shin Yoo-yeol Era, Lee Dong-woo and Roh Jun-hyung Seek Crisis Solutions
- The roles of Lee Dong-woo, Vice Chairman and CEO of Lotte Corporation, and Roh Jun-hyung, Head of the Management Innovation Office, are becoming more critical than ever. With Shin Yoo-yeol, the son of Chairman Shin Dong-bin and Lotte Group’s successor, rapidly rising through the ranks, preparations are being expedited for him to step into a leadership role. Naturally, the weight of responsibility borne by these key figures leading Lotte Corporation has also grown significantly. According to business circles on December 9, as Chairman Shin Dong-bin accelerates Shin Yoo-yeol’s management training, concerns within Lotte Corporation’s leadership are expected to deepen. Shin Yoo-yeol has risen to the position of Executive Vice President within less than four years of his appearance at Lotte Group in Korea. He was promoted to Senior Manager just eight months after becoming Deputy Manager, then became Managing Director within a year, and climbed to Executive Vice President just one year later. Rapid promotions within owner families are not uncommon in Korean business circles. However, it is also true that few individuals in groups ranked within the top 10, like Lotte Group, have risen as quickly as Shin Yoo-yeol. Even in fast-track cases, it typically takes more than seven years to rise from executive to vice president. Observers suggest that Shin Dong-bin, now approaching 70, has decided to accelerate the succession process. Born in 1986, Shin Yoo-yeol is now approaching 40. Given the increasing presence of leaders in their 30s and 40s in Korean businesses, it does not seem unusual for Shin Yoo-yeol to step into the forefront of Lotte Group’s leadership. The beginning of the so-called “third generation era” of Lotte Group is approaching, and Lotte Corporation’s role as a supporting organization is gaining unprecedented attention. In particular, Lee Dong-woo’s role as Vice Chairman of Lotte Corporation is expected to be significant. He recently proved himself to be a trusted “key figure” for Chairman Shin Dong-bin through the latest executive reshuffle at Lotte Group. Lotte Group’s liquidity crisis is largely attributed to Lotte Chemical’s poor performance. However, as the control tower of the group, Lotte Corporation cannot avoid its share of responsibility. This was the backdrop to speculation about Lee’s potential step back from his position. Lee, who took the helm at Lotte Corporation in August 2020 and was later promoted to Vice Chairman, has been leading the company for over four years. Given that Lotte Group’s liquidity crisis coincided with Lee’s leadership, there was speculation that he might be held accountable for the situation. Lee’s guaranteed term under Lotte Corporation’s bylaws was until March 2025. However, Lee retained Chairman Shin’s confidence through the recent reshuffle. Many interpret this as evidence of Shin’s continued trust, even after Lee offered to resign following controversies during his tenure as CEO of Lotte Hi-Mart. Some observers believe that Chairman Shin has effectively entrusted Lee with the mission of overcoming Lotte Group’s crisis. Regarding Lee’s reappointment, Lotte Group stated, “Vice Chairman Lee Dong-woo will oversee crisis management for Lotte Group and monitor the group’s direction and pace of transformation.” The weight of responsibility for Roh Jun-hyung, Head of the Management Innovation Office, is also expected to grow. The Management Innovation Office is akin to the former Policy Headquarters, which once served as Lotte Group’s control tower. While its role has been somewhat diluted by distributing functions among multiple departments, its importance remains high as it leads new businesses and mergers and acquisitions. A clear example of its significance is the promotion of former ESG Management Innovation Office Head Lee Hoon-ki, who pursued new businesses such as biotechnology and healthcare before taking on the role of Head of Chemical Headquarters and CEO of Lotte Chemical. Roh was recently promoted to President, shedding his previous title of Executive Vice President. This promotion suggests that he has been tasked with establishing a clearer direction for Lotte Group. The key challenge facing Lee Dong-woo and Roh Jun-hyung is Lotte Group’s liquidity crisis. How effectively they resolve the crisis—or falter—will directly impact the start of the third-generation era led by Shin Yoo-yeol. The crisis facing Lotte Group is no longer considered mere speculation, as demonstrated by Lotte World Tower, which was once the dream of Lotte Group founder Shin Kyuk-ho, being used as collateral with banks. The future opening of Shin Yoo-yeol’s leadership era will depend on how well Lee, Roh, and other key figures at Lotte Corporation overcome the group’s crisis and identify and nurture future growth engines through new businesses. #LotteGroup #LeeDongwoo #RohJunhyung #ShinYooYeol #Succession #LiquidityCrisis #CrisisManagement #LotteCorporation #NewLeadership #BusinessInnovation
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- Han Dong-hoon Supports Yoon’s Suspension, Faces Martial Law Backlash While Eyeing Political Future
- Han Dong-hoon, leader of the People Power Party, shifted his stance on President Yoon Suk-yeol's impeachment, now supporting the need for the president’s suspension from duties, citing moves to arrest key political figures as justification. Han’s change of position is seen as an attempt to distance himself from the increasingly controversial Yoon administration amidst allegations of unconstitutionality, illegality, and even treason related to the president’s martial law declaration. This move is also interpreted as an effort to recover his party’s standing and potentially position himself for a presidential run in the election following the next one, as his chances for the immediate race have diminished. As of December 6, political observers believe Han's de facto endorsement of impeachment increases the likelihood that the impeachment vote, initiated by opposition parties, will succeed. During an emergency Supreme Council meeting in Yeouido, Han stated, “Although I previously committed to preventing impeachment, considering newly revealed facts, I believe it is necessary to swiftly suspend President Yoon Suk-yeol’s duties to protect the people.” This statement marked a reversal from his earlier position against impeachment, expressed as recently as the previous day. Given the slim likelihood of President Yoon voluntarily resigning, impeachment is considered the only viable path to suspension. Mounting public outrage following the martial law declaration has fueled calls for holding those involved accountable for treason. Legal experts have also emphasized the need for accountability, which Han may have factored into his decision to advocate for suspension, potentially to avoid being seen as a political accomplice. On December 4, six opposition parties, including the Democratic Party, filed a motion to impeach President Yoon, accusing him of causing domestic turmoil and attempting to paralyze parliamentary functions by ordering the arrest of lawmakers during martial law. The impeachment vote is scheduled for December 7. With two-thirds support (200 votes) of the 300-member National Assembly required for impeachment, the opposition bloc’s 192 seats mean eight additional votes from People Power Party members are necessary. Many see Han’s stance as critical to determining the outcome. Han may also have considered the implications of a prolonged impeachment crisis, including the risk of the government losing credibility both domestically and with key allies like the United States. This concern echoes statements from Democratic Party leader Lee Jae-myung, who told Bloomberg on December 4, “Even if President Yoon survives the first impeachment vote, we will continue pursuing impeachment. The only question is whether it will happen in two days, a week, a month, or three months.” According to a December 6 Gallup Korea poll, President Yoon’s approval rating has plummeted to a historic low of 16%. Responses collected immediately after the martial law declaration indicated a further drop to 13%. Support for the People Power Party also fell to 27%, trailing the Democratic Party’s 37%. For Han, who requires broad national support beyond his party’s traditional stronghold in Daegu and Gyeongbuk, these figures are likely a significant concern. Legal circles are also examining the application of treason charges against President Yoon and those involved in the impeachment process, adding to Han’s political burdens. On December 6, the Supreme Prosecutors’ Office announced a special investigation team, including military prosecutors, to probe the martial law incident. Similarly, the National Police Agency’s National Investigation Headquarters formed a task force of over 120 officers dedicated to the case. Han In-seop, a law professor at Seoul National University, stated on social media, “The declaration of martial law and its associated decrees, along with the intrusion into parliament, constitute treason. The president and those involved must face punishment, disciplinary action, and impeachment.” If impeachment leads to an early presidential election, the opposition Democratic Party is likely to take power. Han’s distancing from President Yoon could be a calculated move to avoid blame for alleged complicity in martial law, allowing him to plan for future political opportunities. This strategy may also be informed by Democratic Party leader Lee Jae-myung’s conviction in his first election law trial, which could weaken his prospects. Past experiences, such as the impeachment of former President Park Geun-hye, offer precedent. Although the ruling Liberty Korea Party struggled after her impeachment, five years later, Yoon Suk-yeol, then a key figure in prosecuting her government, led the conservative bloc to reclaim power in 2022. If Han successfully navigates the current turmoil, he could emerge as a key figure in the conservative movement’s future. However, fierce opposition from pro-Yoon factions within his party is inevitable. On December 6, senior lawmakers of the People Power Party met under floor leader Chu Kyung-ho to discuss the party’s stance. Rep. Kwon Young-se told reporters, “The party’s position is to oppose impeachment, and that should be maintained for now. Han’s change in stance is reckless.” Similarly, Rep. Yoon Sang-hyun posted on social media, “I cannot join efforts to impeach President Yoon. We cannot passively surrender this administration to the Democratic Party under Lee Jae-myung.” The Gallup Korea poll referenced in this article was conducted independently from December 3 to 5, surveying 1,001 adults nationwide. The margin of error is ±3.1 percentage points at a 95% confidence level. For more details, visit Gallup Korea or the National Election Survey Deliberation Commission website. #HanDonghoon #YoonSukyeol #martiallaw #impeachment #dutysuspension #PeoplePowerParty #SouthKoreaPolitics #NationalAssembly #politicalleadership #constitutionalcrisis
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- Chon Jung-son of POSCO E&C Nears End of Term, Speculation Grows Over Possible Reappointment
- The construction industry, suffering from a recession caused by high interest rates and rising costs, is experiencing a wave of personnel reshuffling. Among the top 10 major construction firms, six have announced CEO replacements, leaving POSCO E&C as the only company yet to reveal its leadership decisions. Amid these challenges, attention is focused on whether Chon Jung-son, CEO of POSCO E&C, will extend his term, with speculation leaning toward his reappointment. According to POSCO E&C on December 6, POSCO Group Chairman Chang In-hwa is expected to announce the group’s executive appointments by the end of 2024. Earlier in February 2024, before Chairman Chang’s inauguration, POSCO Group had postponed executive appointments. At that time, many executives from the previous administration retained their positions, reflecting Chairman Chang’s focus on stability and harmony during his early tenure. This reshuffle is anticipated to be the first significant executive appointment fully reflecting Chairman Chang’s leadership style. POSCO Group’s declining performance is also fueling expectations of bold changes. Its two core subsidiaries—POSCO (steel) and POSCO Future M (battery materials)—recorded sharp drops in Q3 2024 operating profits, declining by 39.8% and 96.3% year-on-year, respectively. Repeated safety incidents, such as multiple fires at the Pohang No. 3 Finex plant, have raised concerns about the group’s safety management system, further increasing the likelihood of personnel changes. On November 26, Chairman Chang sent an email to senior executives and managers, expressing concerns about accidents and emphasizing accountability. He stated, “With the year-end approaching, I worry that lax discipline and decreased focus may have led to recent incidents. Executives and managers must work with heightened vigilance and responsibility to prevent recurrence.” Chon Jung-son, facing scrutiny due to these challenges, is also under pressure. For the first three quarters of 2024, POSCO E&C reported cumulative revenue of KRW 7.2181 trillion (approximately USD 5.2 billion) and operating profit of KRW 124.6 billion (USD 89.9 million), reflecting year-on-year declines of 2.36% and 25.67%, respectively. Despite these challenges, Chon is regarded as a trusted leader with extensive experience across the group. Speculation suggests that his term, which is set to expire in March 2025, may be extended. POSCO Group has also been working to strengthen synergies among its subsidiaries to navigate these turbulent times. Offshore wind power is a key area of focus, with POSCO E&C aiming to secure construction contracts for floating offshore wind power plants. Simultaneously, POSCO plans to supply steel for these structures, boosting group revenue. Chon’s deep understanding of POSCO Group’s strategic operations is expected to play a crucial role in the group’s efforts to enhance synergy among its subsidiaries. Chon has extensive experience within the group, having served as CEO of POSCO Steelion (formerly POSCO Coated & Color Steel) and CEO of POSCO, the group’s core steel production subsidiary. He also led POSCO Holdings as CEO, overseeing the group’s transition to a holding company structure. In the broader construction industry, financial experts are increasingly being appointed as CEOs, reinforcing the importance of Chon’s expertise. SK Eco Plant, for example, recently appointed Kim Hyung-geun, a financial specialist, as CEO alongside Vice Chairman Jang Dong-hyun. Similarly, Hyundai Engineering selected Joo Woo-jung, a former CFO of Kia Motors, as its new CEO. Most POSCO E&C CEOs have successfully extended their initial terms. Notably, Jeong Dong-hwa, the longest-serving CEO, led POSCO E&C from March 2009 to March 2014. His successors, including Hwang Tae-hyun, Han Chan-geon, and Lee Young-hoon, all completed two-year terms after reappointment. Han Sung-hee, the first CEO under the rebranded POSCO E&C, served four consecutive terms from March 2020 to March 2024. However, the group’s current struggles—including its first strike in 56 years, declining performance, and frequent safety incidents—could prompt Chairman Chang to pursue bold personnel changes across its subsidiaries. In June 2024, Chairman Chang reinstated a five-day workweek for executives, ending the biweekly four-day workweek, and in December, he extended this change to team leaders, strengthening workplace discipline. #ChangInhwa #ChonJungson #POSCO #POSCOE&C #constructionindustry #leadershipchanges #corporateperformance #offshorewindpower #safetymanagement #corporaterestructuring
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- Lee Jae-myung: "Han Dong-hoon's Statement on 'Presidential Duty Suspension' Should Not End as Wordplay"
- Lee Jae-myung, leader of the Democratic Party of Korea, emphasized that the impeachment motion against President Yoon Suk-yeol must be passed, targeting People Power Party leader Han Dong-hoon, who suggested the necessity of suspending the president's duties. In a special statement on the "Yoon Suk-yeol Insurrection Incident" delivered at the National Assembly on the 6th, Lee said, "I was disappointed to hear that the People Power Party decided against impeachment as a party stance, but it’s fortunate, though belated, that Leader Han Dong-hoon expressed agreement with suspending the president’s duties." He added, "While it sounds like support for impeachment, I wonder if he might later claim it wasn’t his intention," and expressed hope that it wouldn't end as mere wordplay. When asked if the Democratic Party would move up the scheduled impeachment vote set for the 7th, Lee responded, "Do you think Han truly agreed to impeachment?" He added, "Based on past experiences, Han might later argue that calling for a suspension of duties didn’t necessarily mean advocating for impeachment." This comment is interpreted as Lee emphasizing that Han’s statement would only be credible if it leads to the actual passage of an impeachment motion. During the statement, Lee also sharply criticized President Yoon’s declaration of martial law, labeling it an act of "treason." He stated, "(The declaration) severely damaged politics, livelihood, the economy, diplomacy, security, democracy, and national dignity," adding, "It’s difficult to revive the economy, but it can collapse in an instant. The sudden declaration of martial law by the president amid soaring inflation has led to a plummeting currency value, pushing the national economy into chaos." Lee pointed out significant damage to South Korea's diplomatic relations, particularly with the United States. "Not being informed in advance about the martial law, the U.S. is deeply embarrassed," he said. "The U.S. Deputy Secretary of State called it a ‘grave misjudgment,’ and National Security Advisor Sullivan expressed deep concern, stating that the martial law was not discussed beforehand." He also criticized the impact on international relationships, saying, "It disrupted joint drills with the U.S. aimed at countering North Korea’s nuclear threats. Visits by leaders from Sweden, Japan, and Kazakhstan were canceled, significantly undermining national credibility and diplomacy." Lee stressed that, considering the severity of the situation, it is imperative to remove President Yoon from his duties without delay. "Yoon Suk-yeol attempted to seize control of all three branches of government—executive, legislative, and judiciary—by using the military to suppress national sovereignty. This is an act of treason against the people, not an enemy," Lee declared. He criticized Yoon for "trying to exploit democratic constitutional order for personal gain." He further argued, "A president who threatens the lives of sovereign citizens with unconstitutional and illegal actions cannot be trusted to govern for even a moment longer. The president must be suspended from his duties immediately, leaving the decision on his tenure to the people." In addition to impeachment, Lee called for a full investigation into the treason charges related to the martial law incident. "Treason is an exception to the president’s immunity from prosecution," he stated. "The investigation must be expedited to uncover the truth. Since presidential immunity doesn’t apply, legal procedures including investigation, arrest, detention, and indictment should proceed within the necessary scope." #LeeJaemyung #YoonSukyeol #impeachment #martiallaw #treason #SouthKoreaPolitics #DemocraticParty #PeoplePowerParty #nationalsovereignty #diplomaticrelations
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- Han Dong-hoon: "Yoon Suk-yeol's Duty Suspension Necessary; Martial Law Plan to Arrest Politicians Confirmed"
- Han Dong-hoon, leader of the People Power Party, stated the necessity of suspending President Yoon Suk-yeol's duties. At an emergency Supreme Council meeting held at the National Assembly in Yeouido on the 6th, Han said, "While I previously pledged to work against the passage of impeachment, considering newly uncovered facts, I believe President Yoon Suk-yeol's swift suspension of duty is necessary to protect the people." The shift from opposing impeachment to supporting suspension is reportedly due to confirmation that President Yoon ordered the arrest and detention of key political figures. Han stated, "Yesterday, it was confirmed through credible sources that on the day the martial law was declared, President Yoon instructed Director Ye In-hyung of the Counterespionage Command to arrest key political figures, labeling them as anti-state forces." #HanDonghoon #YoonSukyeol #impeachment #dutysuspension #martiallaw #SouthKoreaPolitics #PeoplePowerParty #arrestorders #emergencymeeting #politicalleadership
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- Chey Tae-won of SK Group, Accelerates Business Transformation by Promoting Young Tech Talent
- Chey Tae-won, Chairman of SK Group, is expected to significantly strengthen the group’s artificial intelligence (AI) business through its 2025 executive and managerial appointments. Throughout 2024, SK Group accelerated its business restructuring and “rebalancing” efforts, and with year-end appointments, it is anticipated to actively promote young technological talents, signaling a shift toward AI-driven business transformation. Major affiliates, including SK Hynix, SK Inc., SK Telecom, and SK Square, have all placed AI experts in key positions, heralding the group’s upcoming shift in its AI business focus. On December 5, SK Group announced its 2025 executive appointments. The business community observed that the scope of changes in the leadership team was smaller than expected. This reduction in scale is attributed to SK Group’s earlier replacements of CEOs at SK Ecoplant and SK Square between May and June, as well as the leadership changes at SK Energy, SK Geocentric, and SK Enmove ahead of the November 1 launch of the merged SK Innovation-SK E&S corporation. In this round of appointments, only two individuals were promoted to president, and no vice chairman promotions were made. The group will continue with its two vice chairman leadership structure, with Yoo Jung-joon of SK On and Jang Dong-hyun of SK Ecoplant remaining in their roles. However, significant changes were made at the executive level. Notably, a large number of young technology experts were promoted to executive positions, highlighting Chairman Chey’s commitment to prioritizing AI as a core business. At the “SK AI Summit” held on November 4, Chairman Chey stated, “To accelerate the future of AI, SK will combine its AI capabilities with global partnerships to contribute to global AI innovation and ecosystem development.” SK Group announced a list of 75 new executives, two-thirds of whom specialize in technology and production. The average age of the newly appointed executives is 49.4 years. Among them, SK Hynix promoted 33 new executives, with approximately 70% being technical experts focused on next-generation semiconductor development. The youngest appointee, Choi Jun-yong, head of SK Hynix’s HBM business planning, was born in 1982 (age 42). Ahn Hyun, who was promoted to president of SK Hynix and now serves as Chief Development Officer (CDO), will oversee the development of future products such as next-generation AI memory. To consolidate AI capabilities across the group, SK Telecom will establish an AI research and development (R&D) center. The AI R&D center will support affiliate businesses in AI-based technology areas, including AI modeling, vision AI, digital twins, and AI factories. An SK Group official stated, “Each affiliate has either established or expanded its AI and digital transformation (DT) teams. This will strengthen AI synergies between the group and its affiliates.” SK Telecom has organized four of its seven business units around AI: the A. Business Unit, GPAA (Global Personal AI Agent) Business Unit, AIX Business Unit, and AI Data Center (DC) Business Unit. These units aim to generate substantial revenue from AI. Park Joon, a renowned AI expert within the group, was appointed as head of SK C&C’s DX Division and will concurrently serve as head of SK Telecom’s AI Intelligence Business Unit and AIX Tech Division. SK Inc. also established a new “AI Innovation Office” reporting directly to its CEO, to enhance efforts in discovering AI-centered growth engines. Intermediate holding company SK Square is focusing its investment portfolio on AI and semiconductors, recruiting investment experts to bolster these areas. The company also appointed Lee Jae-hwan, born in 1974, as CEO of its subsidiary T Map Mobility to accelerate its transition into an AI-driven mobility data company. Lee, a graduate of Yonsei University in Computer Science with a master’s degree in Management Engineering from KAIST, has prior experience at IBM and is recognized for his extensive expertise in mobility and AI. A business insider noted, “With this reshuffle, SK Group has placed AI and technology executives at the forefront and reorganized its structure with a strong focus on AI. While the changes in the president-level appointments were modest, significant transformations occurred at the executive level.” #CheyTaeWon #SKGroup #AILeadership #ExecutiveAppointments #AITransformation #SKHynix #SKTelecom #SKSquare #AIBusiness #NextGenSemiconductors
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- Shinhan Financial’s Jin Ok-dong Implements Bold Personnel Shake-Up, Targets Value-Up Through Profitability
- Jin Ok-dong, Chairman of Shinhan Financial Group, has wielded the axe of organizational reform and accelerated the group's value-up plan. Unlike last year, when all subsidiary heads were reappointed, Shinhan Financial Group replaced 70% of its executives this year. Breaking with convention, Shinhan Bank's president, who led the bank to the top of the industry in net profits, had their term extended by two years, while the president of Shinhan Card, which maintained its top position, was replaced after only two years. Chairman Jin explained the personnel changes by stating, "When the wind changes, you must adjust the sails." As the market shifts with falling benchmark interest rates, the value-up plan has become a priority, focusing on strengthening profitability. On December 5, Shinhan Financial Group announced CEO changes for several subsidiaries, including Shinhan Card, Shinhan Investment Corp, Shinhan Capital, Jeju Bank, Shinhan Savings Bank, Shinhan DS, Shinhan Fund Partners, Shinhan REITs Management, and Shinhan Venture Investment. Of the 13 subsidiary CEOs whose terms were set to expire, nine were replaced, signaling a significant overhaul. Notable in this reshuffle was the replacement of Moon Dong-kwon, president of Shinhan Card, despite high expectations for his reappointment alongside Shin Sang-hyuk, president of Shinhan Bank, and Lee Young-jong, CEO of Shinhan Life. Moon, the first internally promoted head of Shinhan Card who was not from Shinhan Financial Group or Shinhan Bank, delivered strong results, maintaining Shinhan Card's position as the industry's top player. Nevertheless, he did not complete the usual 3-year term (2+1 years). The critical role of Shinhan Card, a core subsidiary, in Jin's value-up plan appears to have played a part in this decision. Despite maintaining its No. 1 position, Shinhan Card was unable to widen its lead over second-tier competitors, which likely became a stumbling block. Regarding this, Shinhan Financial Group stated, "For Shinhan Financial Group to realize its value-up plan, proposed in July to enhance profitability and corporate value, expanding Shinhan Card's performance is essential. Although the company maintains its industry-leading position, the gap with second-tier competitors is narrowing." Jin is emphasizing profitability in 2024 as part of the value-up plan to enhance corporate value. He clarified that the essence of the value-up plan is not merely about increasing shareholder returns. At a press conference in Hong Kong in November, Jin stated, "Raising the shareholder return ratio is not the essence of the value-up program. The most important aspect of value-up is how to efficiently utilize capital to enhance return on equity (ROE)." In line with this, Shinhan Financial Group introduced the concept of return on tangible common equity (ROTCE) for the first time among domestic financial institutions. ROTCE, which measures the actual profitability of capital, will be used as an evaluation and compensation metric for executives. Amid these changes, Shin Sang-hyuk, president of Shinhan Bank, had his term extended for two more years, breaking with convention, as he aligned with the group's current direction. Under Shin’s leadership, Shinhan Bank recorded the highest net profit in the banking sector as of the end of September this year. If this trend continues, Shinhan Bank will reclaim the top position in net profit among banks for the first time in six years, since 2018. Chairman Jin demonstrated a willingness to retain high-performing executives while accelerating profitability through this reshuffle. One example is the appointment of Lee Hee-soo, president of Shinhan Savings Bank, as the next head of Jeju Bank, which has been struggling with declining net profits. Under Lee’s leadership, Shinhan Savings Bank continued to post net profits, even as the overall savings bank sector suffered losses. Jin also appointed several young executives from Shinhan Bank to subsidiary leadership roles, signaling a strong intention to refresh the organization through generational change. This reshuffle comes at a pivotal time as the group faces the possibility of reduced interest income, a core revenue source, due to falling interest rates. It is expected to be a critical juncture for Shinhan Financial Group’s future. As Jin’s term ends in March 2026, these personnel changes must lead to enhanced profitability and an overall improvement in Shinhan Financial Group’s performance. At the subsidiary CEO candidate recommendation committee held on the same day, Jin stated, “When the wind changes, you must adjust the sails,” emphasizing, “To respond flexibly to an uncertain future business environment, it is urgent to implement fundamental internal innovation, strong organizational reform, and generational change to improve the group’s structure.” #JinOkdong #ShinhanFinancialGroup #LeadershipChange #ValueUpPlan #Profitability #ROE #ROTCE #ShinhanBank #ShinhanCard #GenerationalChange
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- Opposition Pursues Impeachment and Treason Charges Against Yoon Suk-yeol, Ruling Party Faces Internal Turmoil
- The aftermath of President Yoon Suk-yeol's declaration of martial law has caused a fierce political storm. The opposition, including the Democratic Party of Korea, has initiated impeachment proceedings against President Yoon Suk-yeol and filed charges of insurrection against President Yoon, Minister of National Defense Kim Yong-hyun, and Minister of the Interior and Safety Lee Sang-min, signaling the start of a campaign to "end the Yoon Suk-yeol administration." The ruling People Power Party (PPP) has proposed “a full cabinet resignation” and “the president leaving the party” as countermeasures against the opposition’s claim that the martial law declaration was illegal and grounds for impeachment. However, within the ruling party, some voices argue that addressing the situation without resorting to impeachment is insufficient, further deepening the internal confusion within the party. On the afternoon of the 4th, six opposition parties, including the Democratic Party of Korea, the Reformist Innovation Party, the Progressive Party, the Basic Income Party, and the Social Democratic Party, submitted a motion for President Yoon Suk-yeol’s impeachment to the National Assembly Secretariat. All 191 opposition lawmakers participated, excluding members of the People Power Party. The Democratic Party has planned to reconvene the plenary session at midnight on the 4th, report the impeachment motion to the plenary session in the early hours of the 5th, and vote on it on the 6th or 7th. According to Article 130, Clause 2 of the National Assembly Act, the National Assembly must vote on an impeachment motion via anonymous ballot within 24 to 72 hours after it has been reported to the plenary session. In addition to the impeachment motion, charges of insurrection were filed against President Yoon and the ministers involved in the martial law declaration. Huh Eun-ah, leader of the Reformist Innovation Party, filed insurrection charges against President Yoon at the Seoul Central District Prosecutor's Office at 2 p.m. on the same day. The Reformist Innovation Party also filed charges of insurrection and rebellion against President Yoon and Defense Minister Kim Yong-hyun with the National Investigation Headquarters. The martial law declaration has also significantly impacted high-ranking officials assisting the president. Chief Presidential Secretary Jung Jin-seok and senior secretarial staff, along with Prime Minister Han Duck-soo and all Cabinet members, offered to resign in response to the situation. In a public address, Prime Minister Han stated, “As the Prime Minister overseeing the Cabinet, I take full responsibility for all the processes that have led to this situation. Although the people may feel uneasy, I ask that the Cabinet and all public officials fulfill their duties to ensure the nation's safety and the people’s daily lives remain stable.” The martial law declaration has also sparked various controversies. Questions have been raised about whether the procedural requirements for declaring martial law were followed correctly. The president must convene a Cabinet meeting before declaring martial law, but doubts have emerged about whether the meeting was properly held. While officials such as Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, Minister of the Interior and Safety Lee Sang-min, Minister of Agriculture, Food, and Rural Affairs Song Mi-ryeong, and Minister of Health and Welfare Cho Kyu-hong were reportedly present at the meeting, the attendance of others, including Deputy Prime Minister and Minister of Education Lee Ju-ho, Minister of Science and ICT Yoo Sang-ik, Minister of Trade, Industry and Energy Ahn Deok-geun, Minister of Environment Kim Wan-seop, Minister of Employment and Labor Kim Moon-soo, Minister of Land, Infrastructure and Transport Park Sang-woo, and Minister of Oceans and Fisheries Kang Do-hyung, could not be confirmed. Another controversy arose during the National Assembly’s vote on the resolution to lift martial law, as People Power Party floor leader Chu Kyung-ho was accused of causing confusion among his party’s lawmakers. Only 18 members of the People Power Party participated in the vote on the resolution the previous day. Kim Sang-wook, a PPP lawmaker who participated in the vote, criticized Chu during a radio interview on MBC, saying, “While party leader Han Dong-hoon kept texting us to come to the plenary session, floor leader Chu instructed us to gather at party headquarters, creating confusion.” In response, Chu stated, “I made the decision to abstain based on my judgment.” To address the aftermath of the martial law incident, the PPP proposed dismissing Defense Minister Kim Yong-hyun and a full Cabinet resignation as solutions. PPP leader Han Dong-hoon, after a general meeting of lawmakers, told reporters, “There were three proposals: first, a full Cabinet resignation; second, dismissing the defense minister; and third, the president leaving the party. Many lawmakers engaged in extensive debate, and there was general agreement on the first two proposals.” However, the opposition, including the Democratic Party, rejected the ruling party’s proposed solutions. Cho Seung-rae, the Democratic Party’s chief spokesperson, told reporters at the National Assembly, “What meaning does a full Cabinet resignation have when we are pursuing the impeachment of the president?” Lee Jae-myung, leader of the Democratic Party, speaking at a rally of five opposition parties against President Yoon, stated, “Can you believe the reality where armed soldiers, funded by taxpayers’ money, are being mobilized to aim guns and knives at the people? We can no longer tolerate or forgive this.” Amid growing negative public opinion toward the martial law declaration, some voices within the ruling party have suggested that impeachment may be inevitable. On SBS Radio, People Power Party lawmaker Cho Kyung-tae responded to questions about impeachment by saying, “All possibilities must be considered.” On the same day, PPP lawmaker Kim Sang-wook told MBC Radio that “impeachment discussions are inevitable” and added, “It’s impossible for the president to carry out his duties normally.” Previously, the resolution to lift martial law was passed during the National Assembly’s plenary session on the 4th, with 190 votes in favor from all 190 lawmakers present, including 18 People Power Party members regarded as aligned with Han Dong-hoon. For the impeachment motion to pass the National Assembly, at least two-thirds (200 votes) of the total lawmakers must vote in favor. Considering the current composition of the National Assembly, if the 18 PPP lawmakers who voted for the resolution to lift martial law defect, the impeachment motion could pass the plenary session. #YoonSukYeol #martialLaw #impeachmentMotion #NationalAssembly #politicalCrisis #SouthKorea #oppositionParties #PeoplePowerParty #constitutionalOrder #publicProtests
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- Samsung Life and Fire Focus on 'Future Innovation Engines' to Lead New Growth Sectors
- Samsung Financial Networks’ "insurance siblings," Samsung Life Insurance and Samsung Fire & Marine Insurance, conducted executive appointments focused on talent that will drive future growth. This round of appointments emphasized performance-based promotions, regardless of seniority or gender, while maintaining organizational stability. On December 4, Samsung Life Insurance and Samsung Fire & Marine Insurance announced their 2025 regular executive appointments and are now preparing for organizational restructuring and positional assignments. In this regular executive reshuffle, Samsung Life Insurance promoted two executive vice presidents and six managing directors, for a total of eight promotions. Samsung Fire & Marine Insurance promoted four executive vice presidents and seven managing directors, for a total of eleven promotions. Although the specific personnel directions of each insurer vary, both companies broadly emphasized strengthening "new business growth engines." Samsung Life Insurance stated that it identified individuals who can maximize the value of insurance and implement future business models in areas such as artificial intelligence (AI), senior services, and healthcare, selecting them irrespective of age or seniority. Among the new executive vice presidents at Samsung Life, both born in 1971, are key figures in the company’s core businesses, evaluated as well-suited to lead future initiatives. Park Hae-gwan, the new executive vice president of Samsung Life Insurance, joined the company in 1994 and has held roles such as Head of Strategy Support Team 1 (Managing Director), Head of Financial Consultant (FC) Support Team (Managing Director), and Head of General Agency (GA) Business Division (Managing Director). Amid intensified competition in the insurance market, where sales efforts have become increasingly important, Park is expected to bolster the company’s core business areas, particularly in FC and GA operations. Lee Jong-hoon, the new executive vice president of Samsung Life Insurance, joined Samsung Fire & Marine Insurance in 1998, serving as Head of General Insurance Support Team (Managing Director) and Head of Management Support Team (Managing Director). In 2023, he became the Head of Samsung Life’s Financial Competitiveness Enhancement Task Force (TF), a role at the managing director level. The Financial Competitiveness Enhancement TF is a key department driving new business initiatives to create future growth opportunities and synergies. As such, Lee is expected to focus on securing future growth engines. Samsung Fire & Marine Insurance similarly emphasized the appointment of talented individuals who can lead future growth areas such as global business, healthcare, and mobility, prioritizing not only expertise and work capabilities but also potential for innovation. Notably, the company drew attention by promoting a female executive with a high school diploma, an uncommon move in the industry. This promotion underscored a focus on performance and capabilities, regardless of academic background or gender. One such promotion was for Kim Soo-yeon, a managing director and high school graduate. She has built expertise in GA sales, including serving as Head of the Honam GA Sales Promotion Team. Observers see this as aligning with Samsung Electronics’ recent initiatives to nurture new businesses and promote young talent. Samsung Electronics has been praised for its innovative personnel policies, including the appointment of managing directors in their 30s and the selection of female and foreign executives. The newly promoted executive vice presidents at Samsung Fire include: - Ko Ki-ho, former Head of the Digital Division - Park Min-jae, former Head of Samsung Life’s Strategic Investment Division - Bang Dae-won, former Head of Human Resources - Lee Sang-dong, former Head of Auto Compensation Planning These individuals are regarded as having extensive experience in their respective fields and the ability to drive new business initiatives. The executive appointments at both insurers reflect a management policy of enhancing competitiveness in the core insurance business while actively exploring future revenue sources. Currently, the domestic insurance market is impacted by intense competition and regulatory measures by financial authorities aimed at curbing excessive competition. Samsung Life and Samsung Fire, like other insurers, are actively seeking new revenue streams in areas such as senior services, trust businesses, and digital initiatives. The insurance industry noted that most of the new executives were promoted from within, reflecting a stable approach similar to the leadership appointments at Samsung Financial Networks’ other affiliates. Among Samsung Financial Networks’ major subsidiaries, Samsung Life, Samsung Fire, and Samsung Securities retained their CEOs, while Samsung Card and Samsung Asset Management saw leadership changes, contributing to an overall perception of stability. Hong Won-hak, CEO of Samsung Life, and Lee Mun-hwa, CEO of Samsung Fire, retained their positions. Both leaders have continued to achieve strong results, maintaining first place in net income in their respective life and non-life insurance sectors. #SamsungLife #SamsungFire #executiveAppointments #insuranceIndustry #futureGrowth #newBusiness #AI #healthcare #mobility #corporateLeadership
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- Private Equity Eyes Lotte Rental Sale, Affinity vs. MBK Partners Likely Showdown
- Private equity funds are eyeing Lotte Rental as expectations rise that the company may soon be put up for sale. Earlier this year, private equity firms fiercely competed in the sale of SK Rent-a-Car, and a similar level of interest is anticipated in the potential sale of Lotte Rental. This interest is driven by opportunities to expand shared services and increase the company’s valuation in a low-interest-rate environment. According to the investment banking (IB) industry on November 4, Lotte Group has reportedly selected UBS as the lead manager for the sale of Lotte Rental and is in contact with potential buyers. The 60.6% stake in Lotte Rental, comprising shares held by Hotel Lotte (37.8%) and Busan Lotte Hotel (22.8%), is valued at approximately KRW 700 billion (approximately USD 504.8 million) based on the previous day’s market capitalization of KRW 1.1576 trillion (approximately USD 835 million). Lotte Group is said to have set Lotte Rental’s overall enterprise value at KRW 2.5 trillion (approximately USD 1.8 billion). Considering this, the value of the stake up for sale, including a management control premium, is estimated to be around KRW 1.5 trillion (approximately USD 1.08 billion). Speculation suggests that Lotte Group’s valuation reflects its need to secure liquidity, but private equity funds appear eager to acquire the company. Affinity Equity Partners and MBK Partners are anticipated to lead the race, with IMM Private Equity and Carlyle also being named as potential bidders. These firms have previously attempted to acquire or operated businesses in the car rental sector, attracted by the potential for growth and value creation through ancillary businesses tied to the car rental market. Private equity firms are likely drawn to Lotte Rental’s position as the market leader and the opportunity to significantly enhance its valuation during a low-interest-rate period. In the car rental business, product differentiation is difficult, making price competitiveness crucial. Larger companies benefit from lower funding costs and economies of scale, allowing them to gain an edge over competitors. Rental car companies negotiate bulk discounts with automakers, with larger firms typically receiving more substantial discounts. Notably, rental car companies tend to perform well during periods of interest rate reductions. The car rental business model involves acquiring vehicles through substantial borrowing, covering interest expenses with rental fees, and later generating profits by selling the used vehicles. Lee Byung-geun, a researcher at LS Securities, remarked, “Lotte Rental relies entirely on borrowing to purchase vehicles, making interest expenses a significant factor in its performance. The company is expected to benefit from lower interest rates and enter a phase of margin expansion starting in 2026.” This structure means reduced funding costs lead to increased profitability. According to the Ministry of Land, Infrastructure, and Transport, the growth rate of rental car fleets remained robust, with figures of 9.62% in 2020, 7.13% in 2021, 7.70% in 2022, and 1.08% in 2023, indicating stable industry growth. Lotte Rental has also set a mid-to-long-term goal to diversify its used car business and increase revenue from KRW 2.7 trillion (approximately USD 1.95 billion) in 2024 to KRW 4 trillion (approximately USD 2.88 billion) by 2028. Affinity Equity Partners, which acquired SK Rent-a-Car for KRW 820 billion (approximately USD 591.3 million) in June 2024, is considered the most likely bidder. During the SK Rent-a-Car sale, Affinity outbid IMM Private Equity and Glenwood Private Equity to secure the deal. Affinity had previously participated in the 2015 bid for KT Rental (now Lotte Rental), which was ultimately acquired by Lotte Group for KRW 1.02 trillion (approximately USD 735.8 million), exceeding market valuations at the time. Affinity’s acquisition of SK Rent-a-Car reflects its positive outlook on the rental car business, driven by declining car ownership trends in Korea and growth potential in related areas such as after-sales services, vehicle data collection, and fleet management. If Affinity acquires Lotte Rental, the market leader with a 21% market share, combined with SK Rent-a-Car’s 16%, it would secure a dominant position in the industry. Lotte Rental’s position as the second-largest shareholder of the car-sharing platform SoCar also aligns with Affinity’s expansion strategy. MBK Partners, which has had mixed success in the car rental business, is seen as Affinity’s primary competitor in the bidding war. MBK once partnered with KT to acquire a 50% stake in Kumho Rent-a-Car for KRW 300 billion (approximately USD 216.3 million) during Kumho Asiana Group’s asset sales in 2010. However, it sold KT Rental to KT for KRW 220 billion (approximately USD 158.6 million) in 2012, missing out on greater profits when KT later sold the company to Lotte Group. Although MBK generated modest returns, its decision not to hold onto KT Rental has been viewed as a missed opportunity. In 2015, MBK attempted to re-acquire KT Rental but was outbid by Lotte Group. Market speculation suggests that Lotte Group’s high valuation of Lotte Rental, nearly twice the current market value, may complicate the sale. In previous cases, such as the failed sale of semiconductor specialty gas businesses (Hyosung Chemical and Air Products Korea), price disagreements between private equity funds and Lotte Group led to deal cancellations. An IB industry insider commented, “Private equity funds are highly interested in Lotte Rental due to the growth potential of the car rental business and the favorable environment created by falling interest rates. However, price negotiations will be critical, as past deals have fallen through over valuation disagreements.” #LotteRental #carRental #privateEquity #businessSale #marketLeader #interestRateImpact #globalExpansion #sharedMobility #usedCarMarket #automotiveServices
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- Yoon Suk-yeol Lifts Martial Law, but Access to National Assembly Still Restricted as Citizens Chant 'Impeach'
- President Yoon Suk-yeol declared the lifting of martial law, but police are still controlling access to the National Assembly. At 7:31 a.m. on the 4th, in front of the main gate of the National Assembly, police continued to control access as citizens gathered to protest President Yoon Suk-yeol's martial law declaration the day before, chanting slogans such as “Impeach Yoon Suk-yeol” and “Arrest Yoon Suk-yeol.” A police official at the scene said, “It is unclear how long access to the National Assembly will be restricted,” adding, “We are following instructions based on the situation.” President Yoon declared martial law at 11 p.m. during a public address at 10:23 p.m. on the 3rd. The National Assembly convened a plenary session to propose and pass a resolution to lift martial law, which was approved at approximately 12:14 a.m. on the 4th. More than three and a half hours after the National Assembly resolved to lift martial law, at 4:40 a.m. on the 4th, President Yoon stated, “At 11 p.m. last night, I declared martial law with a resolute determination to save the nation against anti-state forces seeking to paralyze the essential functions of the state and overthrow the constitutional order of liberal democracy.” He added, “However, as the National Assembly has just demanded the lifting of martial law, I have withdrawn the military forces involved in martial law operations.” President Yoon explained that while he immediately convened a Cabinet meeting, the martial law was lifted as soon as a quorum was met, given the early morning timing. Despite lifting martial law, President Yoon sharply criticized the National Assembly. He said, “I urge the National Assembly to immediately cease its reckless actions that paralyze the state’s functions, such as repeated impeachment attempts, legislative manipulations, and budgetary obstruction.” #YoonSukYeol #martialLaw #NationalAssembly #protests #martialLawLifted #SouthKorea #constitutionalOrder #democracy #politicalCrisis #governmentActions
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- Hanwha E&C’s Major MICE Projects Near Groundbreaking, Spotlight on Kim Seung-mo’s Management
- Kim Seung-mo, the President and CEO of Hanwha Corporation E&C Division, is making progress toward the groundbreaking of the "Jamsil Sports and MICE Complex Private Investment Project," a key initiative pursued at the group level. The Jamsil MICE project, along with the already launched "Seoul Station North-Side Redevelopment Project," is an important endeavor for both the Seoul Metropolitan Government and Hanwha Group. This presents an opportunity for Kim to fully demonstrate his project management capabilities. According to insiders at the Seoul Metropolitan Government and Hanwha Corporation E&C Division on December 3, preliminary negotiations for the Jamsil Sports and MICE Complex Private Investment Project are expected to conclude within this year as initially planned by the city. MICE stands for Meetings, Incentive Travel, Conventions, and Exhibitions, combining various aspects of business tourism. The Jamsil Sports and MICE Complex Private Investment Project is a large-scale development covering 357,576 square meters, including the area around Jamsil Sports Complex in Songpa-gu, Seoul. The project will include exhibition and convention facilities, a dome-shaped baseball stadium, a sports complex, and auxiliary facilities such as offices, accommodations, and commercial spaces. The project is being spearheaded by Hanwha, with Hanwha Group, HDC Group, and Hana Financial Group as investors under the tentative name “Seoul Smart MICE Park,” which has been designated as the preferred bidder in negotiations with the city. Seoul Metropolitan Government plans to finalize preliminary negotiations with Hanwha Corporation E&C Division by the end of this year, followed by consultations with the Ministry of Economy and Finance next year, and proceed to finalize the project agreement and approval of implementation plans. The target groundbreaking year is 2026. As the city accelerates its efforts to establish itself as a leading MICE destination, Hanwha Corporation E&C Division and CEO Kim’s role in the project have become increasingly significant. Since taking the helm as CEO of Hanwha Corporation E&C Division in September 2022, Kim has consistently played a pivotal role in advancing Seoul’s MICE infrastructure expansion plans. His tenure as CEO, originally set to expire on March 29, 2024, has been officially extended. Kim’s reappointment comes despite Hanwha Corporation E&C Division facing consecutive operating losses over the past two years, attributed to rising costs and challenges in the construction industry. The decision reflects Hanwha Group’s recognition of Kim’s project management capabilities, particularly in overseeing large-scale MICE and mixed-use development projects. Kim had already proven his management skills through his active role in the ongoing Seoul Station North-Side Redevelopment Project, which commenced prior to the Jamsil MICE project. After being appointed CEO in September 2022, following the final approval of the development plan in 2021, Kim successfully secured key authorizations and financing for the project. These milestones included obtaining building permits from the Jongno District Office in December 2023, arranging a KRW 740 billion (US$ 533.5 million) bridge loan in October 2023 for land acquisition, and transitioning to project financing worth KRW 2.105 trillion (US$ 1.52 billion) by October 2024. In recommending Kim’s reappointment as an internal director last year, Hanwha stated, “Kim has been actively fulfilling his role as the head of the E&C Division, leveraging his expertise in project strategy development and management. His responsibility and ability to achieve ambitious management goals make him a valuable asset.” The Jamsil Sports and MICE project represents another critical opportunity for Kim to demonstrate the management skills that underpin his reappointment, following his success with the Seoul Station North-Side Redevelopment Project. Seoul Metropolitan Government aims to expand its MICE infrastructure, building on its record as a 10-time consecutive winner of “Best MICE City” by readers of the Global Traveler, and its induction into the Hall of Fame. The city plans to establish three major MICE hubs: the southwestern hub centered around the Magok Convention Center (opened in November 2023), the southeastern hub spanning the Jamsil Sports Complex area to COEX in Samseong-dong (to be completed by 2031), and the central hub comprising the Seoul Station North-Side area and the Namsan-Gwanghwamun district. If Hanwha Corporation E&C Division, under Kim’s leadership, successfully completes both the Seoul Station North-Side Redevelopment Project and the Jamsil Sports and MICE Complex Private Investment Project, it will play a pivotal role in two of Seoul’s three designated MICE hubs. Given Kim’s early involvement in the Jamsil MICE project, his role is expected to be even more significant than in the Seoul Station North-Side Redevelopment Project. As Hanwha Group continues to enhance its capabilities in MICE development projects, Kim’s role is critical not only for the group but also for the success of Seoul’s MICE infrastructure expansion. A representative of Hanwha Corporation E&C Division stated, “Hanwha has exceptional capabilities across all fields of mixed-use development, including construction, service and leisure, and asset management investment. With long-term project plans, we aim to ensure sustainable asset value growth through successful operations post-completion.” #Hanwha #MICEprojects #JamsilComplex #SeoulDevelopment #KimSeungmo #HanwhaE&C #MICEinfrastructure #SeoulSmartMICEPark #Koreanconstruction #urbanredevelopment
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- Woori Financial's 'Generational Shift': Chung Jin-wan Nomination Sparks Domino Effect in Leadership
- A generational shift is expected to sweep through Woori Financial Group. Amid the turmoil caused by improper loans linked to the previous chairman, the youngest candidate among the pool, Vice President Chung Jin-wan, has been named the next president of Woori Bank, signaling a commitment to reform. No vice president at Woori Bank can feel secure about their position, as their appointments could lead to a domino effect impacting executives at subsidiary companies. According to Woori Bank on December 3, the terms of 12 out of its 23 vice presidents will expire between March and April next year. Three terms already ended on November 30, five more will conclude on December 17, and the remaining four will expire in March and April. Nearly half of the vice presidents' terms will end by early next year. In this situation, the key theme for Woori Bank's year-end personnel changes is expected to be "generational transition." Woori Financial Group has highlighted this shift by nominating Chung Jin-wan, Vice President of the SME Group, as the next president, emphasizing renewal through generational change. Born in 1968, Chung is not only younger than current bank presidents at peer institutions but also the youngest among Woori's candidates for the presidency. Among the 23 vice presidents at Woori Bank, only four are younger than Chung. The Woori Financial Group Board stated on November 29 that it recommended Chung as the next president because “as a key member of the current management team, he can ensure continuity while leading organizational renewal as a young, ‘generational-change-oriented’ bank president.” This generational shift at Woori Bank is also expected to lead to a significant shakeup of subsidiary leadership within the group. This is because vice presidents from Woori Bank or holding company executives typically take the lead roles at Woori Financial Group's subsidiaries. Among Woori Financial Group’s subsidiaries, six CEOs—of Woori Card, Woori Financial Capital, Woori Asset Trust, Woori Financial F&I, Woori Credit Information, and Woori Fund Services—face term expirations soon. All six current CEOs joined Woori Bank earlier than Chung. This round of personnel changes is particularly noteworthy as it marks the first since Yim Jong-ryong, chairman of Woori Financial Group, relinquished the power to appoint executives at subsidiaries. In October, Yim announced during a National Assembly audit that he would abolish the prior-consent system requiring the chairman’s approval for appointing subsidiary executives. This decision followed revelations that the excessive power of the chairman was a contributing factor to the improper loans linked to the previous administration. As a result, the upcoming personnel decisions for Woori Bank are expected to reflect the new president’s preferences more strongly than before. Given that the term of current president Cho Byung-kyu is nearing its end, Chung Jin-wan’s opinions are likely to carry significant weight. Another point of interest in the market is whether appointments will balance representation between executives from the two major predecessor banks, Hanil Bank and Commercial Bank, which formed Woori Bank. However, Chung has emphasized his focus on operational capability over background, in line with Chairman Yim’s policy of “strategy for holding companies and operations for subsidiaries.” He stated to reporters upon his first day of work, “I am someone who has worked in operations. Being from Hanil or Commercial does not make someone better at business. I will prioritize those who perform well.” An important variable in Woori Financial Group’s appointments is the outcome of the regular inspections by the Financial Supervisory Service (FSS), expected to be announced later in December. There is growing speculation that pressure from financial authorities, led by FSS Governor Lee Bok-hyun, could impact Yim’s position as chairman. Even though the prior-consent system has been abolished, the possibility of vice-presidential appointments influencing subsidiary leadership means that discussions between Chung and Yim are likely to occur. Yim’s position itself could also become a factor in the process. A Woori Financial Group official commented, “The appointment of Woori Bank’s president began earlier than for other subsidiaries in accordance with the best governance practices recommended by the FSS at the end of last year. However, the schedules for vice-presidential or subsidiary appointments have not yet been finalized.” #WooriFinancialGroup #bankingindustry #personnelchange #leadershiptransition #ChungJinwan #YimJongryong #subsidiaryleadership #Koreanbanking #financialreform #generationalshift
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- Shadow Looms Over Incheon Airport Expansion as Lee Hak-jae’s Workforce Plans Face Growing Opposition
- Incheon International Airport is concluding its seven-year-long Phase 4 expansion project. However, Lee Hak-jae, CEO of Incheon International Airport Corporation, is facing significant challenges in determining the direction for workforce operations to manage the expanded airport. While Lee is pursuing efficiency through digital innovation, labor unions are strongly opposing his plans. According to Incheon International Airport Corporation on December 3, Incheon International Airport has completed its Phase 4 expansion project and officially began operations in the expanded area on this day. The Phase 4 construction project involved a KRW 4.8 trillion (US$ 3.46 billion) investment to expand Terminal 2 and add a fourth runway. The project began in 2017 and is scheduled for completion by the end of this year. With the expansion, the airport’s annual passenger capacity will increase by 29 million, from 77 million to 106 million, a 38% increase. In terms of international passenger capacity, Incheon Airport will rank as the third-largest in the world, following Hong Kong (120 million) and Dubai (115 million). Despite the airport’s physical expansion, operational workforce levels have remained the same, raising concerns. Notably, the three subsidiaries of Incheon International Airport Corporation responsible for maintenance, passenger guidance, and security—Incheon Airport Operation Services, Incheon International Airport Security, and Incheon Airport Facilities Management—have reportedly not received any additional staff allocations. Existing staff are now required to handle the workload for the newly expanded area, which began operations on December 3. Moon Seol-hee, head of policy planning at the Incheon Airport labor union, said, “If current staff are tasked with handling operations expanded to Phase 4, it could lead to workplace accidents.” The issue of workforce shortages at Incheon International Airport Corporation has been raised repeatedly, including during this year’s National Assembly audit. Ahead of the airport expansion, CEO Lee announced plans not only to forego workforce increases but also to reduce staff at subsidiaries, prompting harsh criticism in the National Assembly. On October 22, at the National Assembly’s Land, Infrastructure, and Transport Committee audit, Rep. Ahn Tae-joon of the Democratic Party of Korea criticized Lee, saying, “It is a serious problem that after expanding the facilities for Incheon International Airport Phase 4, there are no plans to create the necessary jobs for facility operations. Instead, you are pursuing plans to cut jobs at subsidiaries. It is incomprehensible why Incheon International Airport Corporation, which is not a chronically unprofitable organization, is so focused on cutting staff at subsidiaries.” After the audit, Lee adjusted plans for subsidiary staffing, reducing the initial target of 1,135 positions to 236. Despite criticism from the National Assembly, the scale of workforce increases was significantly reduced. The labor union of the airport’s subsidiaries criticized this move as “an unreasonable decision that puts workers’ and citizens’ safety at risk.” They further stated, “This is a measure that increases labor intensity under the guise of efficiency while neglecting the risks of industrial accidents.” CEO Lee appears to be focusing on enhancing efficiency through the introduction of digital and artificial intelligence (AI) technologies to address the airport’s workforce issues. Through media interviews and various business vision announcements, Lee has proposed initiatives such as an AI-based smart reservation platform and digital twin technology for integrated airport management, aiming for a “no-waiting airport.” Lee views workforce expansion as an issue requiring careful adjustments due to excessive costs. He stated during the National Assembly audit, “Since implementing the regularization policy for subsidiary staff, the service cost per passenger has doubled. I believe that through automation and unmanned operations, we can gradually normalize staffing levels.” He added, “Incheon International Airport Corporation is a national enterprise, and I am committed to operating it efficiently on behalf of the public.” The corporation is reportedly considering separating its three subsidiaries and outsourcing some tasks to private contractors. According to a research report on “Enhancing Competitiveness of Subsidiaries” disclosed by Rep. Yoon Jong-oh of the Progressive Party on November 21, Incheon International Airport Corporation is exploring plans to split its three subsidiaries into six and transfer tasks such as boarding bridge operations to airlines to improve efficiency. The labor union of the airport’s subsidiaries strongly opposes these outsourcing plans and is reportedly considering strikes by the end of the year. In a statement on December 3, the union said, “Despite the expansion equivalent to the size of 312 soccer fields, no additional staff have been allocated. Without additional staffing for Phase 4, the safety of citizens using the airport cannot be guaranteed. The corporation has missed the golden time to protect the safety of workers and citizens.” The statement added, “We ask Incheon International Airport Corporation: Is the labor union, which has been calling for increased staffing for Phase 4 to ensure the safety of workers and citizens, the risk? Or is the corporation, which has done nothing to prepare and is only considering outsourcing, the risk?” #IncheonAirport #Phase4Expansion #LeeHakjae #KoreanAviation #airportlaborunion #airportautomation #digitalinnovation #AItechnology #laborrights #publicsafety
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- Will Cho Won-tae Entrust Asiana to Choi Jeong-ho? Spotlight on Hanjin Group’s Personnel Moves
- Cho Won-tae, Chairman of Hanjin Group, is expected to reorganize the group’s structure and personnel as Korean Air’s acquisition of Asiana Airlines nears completion. Speculation is rising that a major reshuffle, the largest in three years, could take place. After operating Asiana Airlines as a subsidiary for two years, Korean Air plans to fully integrate it. Among the candidates for Asiana’s new leadership, Choi Jeong-ho, Executive Vice President of Korean Air, who has overseen the acquisition and integration process, is being prominently mentioned. According to sources in the aviation industry on December 2, with Korean Air’s acquisition of Asiana Airlines nearly finalized, Chairman Cho is expected to accelerate the appointment of a new CEO to oversee integration and establish an integration task force. Once the acquisition agreement is finalized, Asiana Airlines will be incorporated as a subsidiary of Korean Air. It will operate as a subsidiary for approximately two years to prepare for integration before the merger is finalized. During this two-year preparation period, Korean Air will need to improve Asiana’s financial structure and address the challenge of smoothly uniting the two airlines, which have followed different operational paths. Choi Jeong-ho, Executive Vice President of Korean Air, is seen as a strong candidate to lead Asiana Airlines. The aviation industry expects that a vice president-level executive from Korean Air, experienced in passenger sales and route strategy, will likely be appointed as the new CEO of Asiana Airlines. Choi fits this profile well. Choi has been in charge of the “Asiana acquisition and integration” at Korean Air since 2022, preparing for the merger. He has also proven his capabilities in passenger sales and route strategy at Korean Air and Jin Air. In addition to overseeing the acquisition and integration of Asiana, Choi concurrently serves as the head of recovery initiatives, focusing on reviving operations affected by the COVID-19 pandemic. His dual responsibilities indicate Chairman Cho’s trust in him. Born in 1964, Choi graduated from Yonsei University with a degree in Applied Statistics. He joined Korean Air in 1988, building expertise in passenger route sales. He has held roles such as Passenger Team Leader at the Japan Regional Headquarters, Team Leader of the Passenger Route Sales Japan Team, and Assistant Vice President of the Passenger Route Sales Division. In 2016, Choi was appointed CEO of Jin Air, a low-cost carrier under Korean Air, and led the airline until he returned to Korean Air in 2022. During his tenure at Jin Air, Choi demonstrated crisis management skills, addressing operational restrictions imposed by the Ministry of Land, Infrastructure, and Transport. He quickly implemented management improvements, leading to the lifting of sanctions. Choi’s experience managing a low-cost carrier is expected to be an advantage in integrating Air Busan and Air Seoul—low-cost carriers under Asiana Airlines—into Jin Air. Korean Air is preparing to launch the largest low-cost carrier in Korea by integrating Jin Air, Air Busan, and Air Seoul. However, there remains a possibility that another executive vice president from Korean Air could be appointed as Asiana Airlines’ CEO. If Chairman Cho prioritizes improving Asiana’s financial structure, there is also a chance that Ha Eun-yong, Korean Air’s Executive Vice President and Chief Financial Officer, could take on the role. Some industry observers suggest that to boost cohesion and minimize disruption, Korean Air might only replace Asiana’s top management while keeping the rest of the workforce unchanged. This approach would avoid creating the impression of a “conquering force” among Asiana’s employees. In past mergers, employees of the acquired companies often experienced a decline in morale. Even in cases where companies were integrated within the same group, many employees reported feelings of discouragement. Winning the hearts of Asiana employees will be a critical task for Korean Air. With the Asiana Airlines acquisition—Hanjin Group’s most significant undertaking—nearing completion, Chairman Cho is expected to implement a larger-scale personnel reshuffle than before. The last major reshuffle under Chairman Cho occurred during the regular executive appointments in January 2022, when several executives, including Cho Hyun-min, were promoted from vice president to president. The possibility of a vice-chairman appointment has also drawn attention. Currently, the highest rank in the Hanjin Group, apart from Chairman Cho, is president. Among family members, Cho Hyun-min, the Chairman’s sister, holds the rank of president at Hanjin. Professional executives holding president titles include Ryu Gyeong-pyo, CEO of Hanjin KAL; Woo Ki-hong, CEO of Korean Air; Lee Seung-beom, CEO of Korea Airports Corporation; and Noh Sam-seok, CEO of Hanjin. As Hanjin Group prepares to acquire Asiana Airlines and establish itself as a global top 10 mega airline group, there is speculation that the group might adjust internal ranks to align with its elevated external status. Korean Air created the position of vice chairman in 2018 to strengthen its professional management system. However, since the departure of former Vice Chairman Seok Tae-soo, the group has not had a professional vice chairman. Significant personnel movements across subsidiaries are also expected this time. In the 2022 regular executive reshuffle, Ryu Gyeong-pyo moved from the logistics company Hanjin to the holding company Hanjin KAL. Noh Sam-seok, who had been working in air cargo operations at Korean Air, might also transition to Korean Air or Hanjin KAL. A Hanjin Group official stated, “There has been no discussion regarding personnel changes yet. Any further discussions are expected to take place only after the acquisition of Asiana Airlines’ new shares is completed.” #ChoWonTae #KoreanAir #AsianaAirlines #HanjinGroup #CorporateRestructuring #AirlineIntegration
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- GS E&C Aims to Reclaim 3rd Place in Urban Redevelopment; Huh Yoon-hong's 'New Xi' in the Spotlight
- Huh Yoon-hong, CEO of GS Engineering & Construction (GS E&C), is eyeing a return to the industry’s third position in urban redevelopment while surpassing KRW 3 trillion (USD 2.16 billion) in new orders in his first year. Huh has personally overseen the 22-year rebranding of the “Xi” brand, focusing intently on rebuilding trust. The performance in urban redevelopment, where brand value significantly influences decisions, is expected to serve as a key indicator of the success of Huh’s efforts to restore trust in the housing business. According to the Bongcheon 14th Redevelopment Cooperative on December 2, GS E&C, which expressed its intention to secure construction rights, is under review for being designated as the preferred negotiation partner, transitioning to a private contract, and other follow-up procedures. The Bongcheon 14th redevelopment project involves constructing 15 buildings, ranging from 4 underground floors to 27 above-ground floors, comprising 1,571 housing units and accompanying facilities in Bongcheon-dong, Gwanak-gu, Seoul. The total construction cost is estimated at KRW 627.5 billion (USD 452.4 million). GS E&C participated alone in both the first and second bids for selecting a contractor, with the second bid closing on November 19, and is expected to sign a private contract with the Bongcheon 14th Redevelopment Cooperative. For Huh, the Bongcheon 14th redevelopment project is significant as it marks the first major bid following the announcement of the Xi rebranding initiative. Even considering GS E&C's consistent interest in this site, this project stands out as the first opportunity to showcase the rebranded Xi, a leading housing brand, after 22 years. In his first year as CEO, Huh is targeting well over KRW 3 trillion (USD 2.16 billion) in new urban redevelopment orders. The Bongcheon 14th redevelopment project is expected to be a critical factor in achieving this goal, as it is one of the largest redevelopment projects likely to conclude within the year, with GS E&C poised to secure the contract. GS E&C is also aiming to win construction rights for the Suyoung 1st redevelopment project in Suyoung-gu, Busan, and the Junghwa 5th redevelopment project in Jungnang-gu, Seoul. In both cases, GS E&C was the sole bidder in the second round and is on the verge of securing these contracts. The total construction costs are estimated at over KRW 500 billion (USD 360.6 million) for each project, considering the number of units: 1,520 for Suyoung 1st and 1,610 for Junghwa 5th. However, the Suyoung 1st and Junghwa 5th redevelopment cooperatives are reportedly preparing to hold general meetings to select contractors in January next year. On November 30, GS E&C surpassed KRW 3 trillion (USD 2.16 billion) in new urban redevelopment orders this year by securing the Shingil 2nd redevelopment project in Yeongdeungpo-gu, Seoul. GS E&C, in a consortium with Samsung C&T, won 50% of the total project, securing work worth KRW 553.6 billion (USD 399.3 million) out of the KRW 1.1072 trillion (USD 799.6 million) project. This achievement, along with projects such as the KRW 386.8 billion (USD 279.0 million) redevelopment of Minrak 2nd in Busan in April, the KRW 326.3 billion (USD 235.3 million) redevelopment of Geoyeo Saemaeul in Seoul in August, the KRW 460.6 billion (USD 332.1 million) reconstruction of Samhwan Garak Apartments in September, and the KRW 1.0142 trillion (USD 732.3 million) redevelopment of Macheon 3rd and the KRW 368.2 billion (USD 265.4 million) redevelopment of Gajaeul 7th in November, has brought the total to KRW 3.1097 trillion (USD 2.24 billion) in new orders this year. Securing the Bongcheon 14th redevelopment project could raise this figure to approximately KRW 3.7372 trillion (USD 2.69 billion). Combining this year's achievements so far, Huh appears to have doubled the new urban redevelopment orders from last year, which had dropped to the KRW 1 trillion (USD 720.9 million) range, and seems well-positioned to reclaim the industry’s third spot. In the 2024 urban redevelopment market, Hyundai Engineering & Construction surpassed KRW 6 trillion (USD 4.32 billion), and POSCO E&C recorded KRW 4.7191 trillion (USD 3.4 billion), solidifying their positions as the top two players. Following them, GS E&C and Samsung C&T are fiercely competing for third place, with GS E&C appearing to be slightly ahead based on late-year performance. Samsung C&T’s last urban redevelopment project for the year is expected to be the redevelopment of the eastern part of the Anyang Sports Complex in Anyang, Gyeonggi Province, with an estimated total construction cost of KRW 700 billion (USD 504.9 million). Having secured KRW 2.8067 trillion (USD 2.02 billion) in urban redevelopment work as of the day, Samsung C&T is projected to reach an annual total of approximately KRW 3.5 trillion (USD 2.52 billion) after the general meeting for this project on December 22. GS E&C’s performance in urban redevelopment this year is seen as the first concrete result of Huh’s focus on restoring the housing business’s competitiveness. In 2021 and 2022, GS E&C ranked second in the urban redevelopment market, recording KRW 5.1437 trillion (USD 3.71 billion) and KRW 7.1476 trillion (USD 5.15 billion), respectively, for two consecutive years. However, last year’s total fell to KRW 1.5878 trillion (USD 1.14 billion), ranking sixth in the construction industry. Although the year started strong with over KRW 1 trillion (USD 720.9 million) in orders within January and February, the aftermath of the April collapse of the underground parking lot at an apartment in Incheon is believed to have impacted its performance. The prevailing view is that the bigger challenge for Huh is not overcoming the nearly KRW 400 billion (USD 288.4 million) operating loss last year but rather restoring trust in the Xi brand. Surpassing KRW 3 trillion (USD 2.16 billion) in two years and re-entering the industry’s top three, combined with the Xi rebranding, is seen as a promising factor for rebounding housing business competitiveness. Through the Xi rebranding, Huh has set a goal to establish a sustainable business foundation for over 100 years. At the “Xi Re-ignite” event held on November 18 at Xi Gallery in Gangnam-gu, Seoul, Huh stated in his welcome address, “The Xi rebranding is a new beginning and a challenge for us, and it represents a significant cornerstone for innovation, focusing on reinforcing our foundation rather than merely changing our image.” #HuhYoonHong #GSEnC #UrbanRedevelopment #XiRebranding #ConstructionIndustry #HousingBrand #NewOrders
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- Yang Jong-hee May Bring Bold Changes to KB Financial’s Non-Banking Units; Tensions Rise in All Divisions
- Tension is rising as KB Financial Group approaches the appointment of CEOs for its non-banking subsidiaries. Following a surprising appointment for KB Kookmin Bank’s next president, Yang Jong-hee, Chairman of KB Financial Group, has clearly demonstrated his intent to drive change. This has led to speculation that similar personnel shifts may extend to key subsidiaries in insurance, securities, and credit cards. According to sources within and outside KB Financial Group, the Executive Recommendation Committee for Subsidiary CEOs is set to recommend candidates for non-banking subsidiary CEOs within this month. Traditionally, KB Financial Group announces the next president of KB Kookmin Bank in late November, followed by appointments for non-banking subsidiaries’ CEOs by mid-December. This year, the terms of CEOs for major non-banking subsidiaries, including KB Securities, KB Kookmin Card, and KB Life Insurance, are set to expire. As Yang Jong-hee enters his second year as chairman, the possibility of new leadership through CEO changes in non-banking subsidiaries is gaining attention, continuing the momentum from changes in banking leadership. KB Financial Group’s emphasis on synergy between banking and non-banking sectors became evident when it appointed the KB Life Insurance CEO as the next KB Kookmin Bank president. With Lee Hwan-joo transitioning to lead KB Kookmin Bank, a new leadership structure at KB Life Insurance has already been confirmed. At KB Securities, Co-CEOs Kim Sung-hyun and Lee Hong-goo are nearing the end of their terms by the close of 2024. While Kim Sung-hyun has been at the helm since 2019, Lee Hong-goo is in his first year after being appointed following Yang’s inauguration as chairman. This makes significant changes at KB Securities less likely. KB Kookmin Card’s CEO Lee Chang-kwon, who began his term in January 2022, has completed his “2+1” tenure, a pattern similar to outgoing KB Kookmin Bank President Lee Jae-geun. Chairman Yang has previously been recognized for breaking conventions in subsidiary appointments since his tenure began. Historically, KB Financial Group has often placed executives from its bank or holding company at the helm of key subsidiaries. However, Yang prioritized internal candidates in his first year, appointing leaders from within KB’s ranks to head KB Insurance, KB Securities, and KB Asset Management. In March, KB Investment followed this trend when CEO Kim Jong-pil stepped down, and Song Young-seok, Chief Risk Officer, was appointed as the new CEO. Notably, Song is neither from the holding company nor the bank but was promoted internally, reflecting KB Financial Group’s strategy of emphasizing expertise and operational independence for non-banking subsidiaries. In its recommendation for KB Kookmin Bank’s next CEO, KB Financial Group highlighted “efficient management” and “innovative growth,” signaling bold changes in personnel decisions. If this philosophy carries over to non-banking subsidiaries, it increases the likelihood of promoting internal experts rather than relying on traditional hires from the bank or holding company. Yang Jong-hee himself is the first internally promoted chairman of KB Financial Group since its establishment in 2008. He has consistently emphasized the importance of strengthening non-banking businesses. In his 2024 New Year’s address, Yang stated, “We will actively push for the leading advancement of our non-banking subsidiaries as well as our bank. We aim to elevate trust among customers and the market across four core areas: insurance, investment management, wealth management, and global business.” As of the third quarter of 2024, KB Financial Group’s non-banking subsidiaries—securities, cards, life insurance, and non-life insurance—contributed 41.7% of the group’s total net income. This marks a steady rise from 36.3% in 2021, 30.1% in 2022, 37.7% last year, and now surpassing 40% in 2024. The Executive Recommendation Committee for Subsidiary CEOs comprises five members: three outside directors, one executive director, and one non-executive director. Chairman Yang serves as the committee chair, with members including Outside Directors Oh Gyu-taek, Choi Jae-hong, and Lee Myung-hwal, as well as Non-Executive Director Lee Jae-geun. #KBFinancialGroup #YangJongHee #NonBankingCEOs #KBKookminBank #KBCard #KBSecurities #KBLifeInsurance #CorporateLeadership #FinancialServices #CEOAppointments
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- Korean Air Nears Mega-Carrier Status: Cho Won-tae Focuses on Financial Stability
- Cho Won-tae, Chairman of Hanjin Group, is nearing the final destination of his long-cherished goal to acquire Asiana Airlines. Chairman Cho has endured over four years, even risking the group's management rights. Now, with the launch of a global mega-carrier imminent, Hanjin Group is also entering a new turning point. According to the aviation industry on November 29, Korean Air is highly likely to complete the acquisition of Asiana Airlines within the year, having received merger approval from the European Union (EU) competition authority, the European Commission (EC). Although the U.S. Department of Justice (DOJ) has not yet completed its review, most competition-restricting factors have been addressed in the review processes with various countries. This has led to widespread optimism that the DOJ review will also conclude smoothly. The DOJ does not independently approve mergers like other competition authorities. Instead, if no lawsuits are filed, the merger is considered approved. Korean Air has proactively presented measures to mitigate competition concerns to the DOJ. These include supporting Air Premia, a domestic airline operating U.S. routes, on five U.S. routes and selling Asiana Airlines' cargo business, as reported to the DOJ. According to legal experts familiar with the DOJ, lawsuits related to antitrust issues are generally filed within three months of a merger filing. Since it has been well over three months since Korean Air submitted its documents, many believe it is unlikely the DOJ will raise objections. Korean Air is preparing to conclude the merger transaction by the end of the year, immediately reporting the EU’s final merger approval to the DOJ. This marks the culmination of a process that began over four years ago when Chairman Cho first initiated the acquisition of Asiana Airlines in 2020. The past four years have been fraught with challenges, particularly persuading competition authorities in various countries to approve the merger. Given the competitive relationships between Korean Air and other airlines, competition authorities sought concessions, such as the transfer of route slots to domestic airlines, to secure practical gains. Korean Air had to bear some losses in the process. For example, the UK competition authority approved the merger on the condition that Korean Air transfer all seven weekly slots at London Heathrow Airport, previously held by Asiana Airlines, to Virgin Atlantic. The EU Commission, which recently approved the merger, stipulated support measures for new entrants on four South Korea-Europe passenger routes and the sale of Asiana Airlines’ cargo division as conditions for approval. In response, Korean Air selected T’way Air as the new entrant on four European routes (Paris, Frankfurt, Barcelona, and Rome). Korean Air is supporting T’way with aircraft, operational crews, and maintenance to ensure the new routes are launched and sustained. The sale of Asiana Airlines’ cargo division to Air Incheon is also underway. For Chairman Cho, the acquisition of Asiana Airlines holds particular significance. During negotiations with the Korea Development Bank (KDB) regarding the acquisition, Chairman Cho pledged all of his shares in Hanjin KAL as collateral. He expressed his determination to step down from management if the airline integration or business performance fell short. In a June 2022 interview with Bloomberg TV in Istanbul, Turkey, Chairman Cho stated, “I am 100% committed to acquiring Asiana Airlines, and no matter what must be sacrificed, I will make it happen,” demonstrating his firm resolve for the merger. This acquisition also marks a transformative period for Hanjin Group. With the integration of Asiana Airlines, Korean Air will emerge as a global mega-carrier, ranked among the world’s top 10 airlines. Based on 2019 international revenue passenger kilometers (RPK), Korean Air ranked 18th and Asiana Airlines 32nd globally. Combined, they would rank approximately 11th. The International Air Transport Association (IATA), which compiled these rankings, has not published updated figures since 2020 due to the COVID-19 pandemic. Under the leadership of Chairman Cho, the third-generation head of Hanjin Group, the company is now positioned to stand shoulder-to-shoulder with leading global airlines. Hanjin Group, a representative Korean transport conglomerate, has upheld its 79-year legacy under the banner of “serving the nation through transport.” Hanjin Sangsa, the precursor to the group, was founded in 1945 by Hanjin Group's founder Cho Joong-hoon, starting with a trucking business. Cho expanded into maritime shipping and later aviation, building the group's foundations. The Korean Air Corporation, a state-owned airline acquired by Cho in 1969, grew into the present-day Korean Air. Although Cho had previously attempted to enter the aviation industry by founding a private airline in the 1960s, it did not last long. Korean Air expanded by acquiring aircraft, establishing a sizable fleet, and increasing international routes. The airline thrived alongside South Korea’s rapid economic growth and the rising demand for international travel. Cho Joong-hoon passed on the transportation business, including aviation, to the second-generation leader, the late Chairman Cho Yang-ho. Chairman Cho Yang-ho, who joined Korean Air in 1974, is credited with laying the groundwork for the airline's operations over nearly 50 years. He took over as CEO of Korean Air in 1992 and succeeded his father as Chairman in 1999. Despite the emergence of Asiana Airlines in 1988 as a formidable domestic competitor, Cho Yang-ho maintained market leadership through efficient management. His international network and contributions to private diplomacy, such as securing the PyeongChang Winter Olympics, are also recognized. Chairman Cho Won-tae has now built upon the foundation laid by his grandfather and father, steering the company toward becoming a global mega-carrier. With Korean Air’s acquisition of Asiana Airlines imminent, optimism is growing in the securities industry regarding the integrated airline's future. Economies of scale through expanded operations and new routes are expected to significantly boost operating performance. Many predict the integrated airline will achieve operating profits exceeding KRW 2 trillion (US$ 1.44 billion) as early as next year. Jung Yeon-seung, a researcher at NH Investment & Securities, projected, “With Asiana Airlines incorporated into Korean Air’s consolidated earnings, revenue is expected to reach KRW 22-23 trillion (US$ 15.88-16.59 billion), and operating profits to exceed KRW 2 trillion (US$ 1.44 billion) by 2025.” However, improving Asiana Airlines’ financial structure during the integration process remains a critical challenge. As of the end of September, Asiana Airlines’ total liabilities stood at KRW 12.4796 trillion (US$ 9 billion), with total assets at KRW 13.1554 trillion (US$ 9.49 billion), resulting in a debt-to-equity ratio of 1,847%. Asiana Airlines recorded a cumulative net loss of KRW 66.1 billion (US$ 47.67 million) for the first three quarters of 2024. While it achieved positive operating profits, its substantial interest expenses have eroded its cash holdings. Korean Air plans to issue a capital increase of KRW 1.5 trillion (US$ 1.08 billion) for Asiana Airlines after the acquisition to repay high-interest debt and reduce interest costs. The integration process over the next two years will involve preliminary steps such as consolidating overlapping routes and streamlining maintenance operations to improve efficiency. Establishing the identity of the integrated airline and promoting it externally will also be key tasks to complete within this period. Mileage integration poses another challenge. Determining how to assess the value of each airline's mileage and setting the integration allocation ratio is a complex issue. Customers holding Asiana Airlines mileage are expected to demand parity with Korean Air mileage, but this could lead to dissatisfaction among Korean Air’s mileage holders. A Korean Air representative stated, “The integration ratio for mileage has not yet been determined. We will carefully review the matter during the two years Asiana Airlines operates as a subsidiary and devise a reasonable integration plan.” #KoreanAir #AsianaAirlines #ChoWontae #MegaCarrier #AirlineIntegration #AviationIndustry #GlobalCarrier #FinancialRestructuring #MileageIntegration #HanjinGroup
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- Kyobo Life's Put Option Dispute May Be Resolved This Year, Accelerating Shin Chang-jae's Holding Company
- Shin Chang-jae, Chairman and CEO of Kyobo Life Insurance, is preparing to accelerate the process of transitioning to a holding company structure. This is due to the likelihood that the "put option dispute" with Affinity Consortium, a key shareholder and financial investor (FI), will be resolved as early as the end of this year. Despite the ongoing dispute with Affinity Consortium, Chairman Shin has steadily prepared for the transition to a holding company. Once the conflict is resolved, this long-standing goal of his could gain significant momentum. According to insurance industry insiders on November 29, the International Chamber of Commerce (ICC) is expected to deliver its second arbitration ruling on the put option dispute between Kyobo Life and Affinity Consortium by the end of the year. Affinity Consortium comprises three private equity firms—Affinity Equity Partners, IMM, and Baring—along with the Singapore Investment Corporation. As of June 2024, the consortium holds approximately 24% of Kyobo Life Insurance's shares. Market analysts believe that the second arbitration decision is also likely to favor Chairman Shin, as it is rare for a single-instance international arbitration ruling to differ significantly from the first decision. The ICC’s decision is expected to have a significant impact on Kyobo Life’s efforts to transition to a holding company structure. Kyobo Life officially announced its holding company transition plan during a board meeting on February 9, 2023. However, the prolonged conflict between major shareholder Chairman Shin and Affinity Consortium has delayed progress. The transition to a holding company requires several legal procedures, including a resolution for a corporate split at the board of directors and a special resolution at a shareholders’ meeting. These processes are difficult to expedite amid conflicts with major shareholders. The dispute between Chairman Shin and Affinity Consortium dates back to 2018. Affinity Consortium acquired a 24% stake in Kyobo Life in 2012 at KRW 245,000 per share, with a contractual clause to conduct an initial public offering (IPO) by September 2015. When the IPO did not materialize, Affinity Consortium exercised a put option in 2018 at KRW 410,000 per share, leading to a dispute over the appropriateness of the exercise price. The dispute escalated to international arbitration. In its first arbitration ruling in September 2021, the ICC determined that Chairman Shin was not obligated to purchase the shares at the stated price or pay interest. In February 2022, Affinity Consortium requested a second arbitration. During the dispute, Chairman Shin continued to push forward with the holding company transition while focusing on strengthening Kyobo Life’s core insurance business and internal stability alongside Co-CEO Jo Dae-gyu. Currently, Chairman Shin oversees long-term strategy, planning, and asset management, while Co-CEO Jo, appointed in March, leads Kyobo Life’s overall insurance business. The co-CEO system of Shin Chang-jae and Jo Dae-gyu, established this year, has stabilized operations and improved performance. Kyobo Life reported a consolidated net profit of KRW 876 billion (USD 631.6 million) for the first three quarters of this year, a 17.8% increase compared to the same period last year. This improvement in performance is particularly significant as it strengthens the company’s financial foundation, which could aid in funding affiliates after transitioning to a holding company. Currently, Kyobo Life effectively functions as the holding company for the Kyobo Life Group. Some observers view the issuance of subordinated bonds and hybrid capital securities in the second half of the year as efforts to enhance capital management and secure liquidity in preparation for the transition to a holding company. In August, Kyobo Life issued KRW 700 billion (USD 504.9 million) in subordinated bonds and KRW 600 billion (USD 432.9 million) in hybrid capital securities on the 12th. A Kyobo Life representative stated, “The ICC arbitration process is being handled between the major shareholders, so it is difficult to confirm a precise schedule. However, since arbitration follows the principle of single-instance rulings, it is unlikely that the second arbitration decision will deviate significantly from the first.” #KyoboLife #ShinChangjae #HoldingCompany #PutOptionDispute #AffinityConsortium #InsuranceIndustry #CorporateRestructuring #FinancialStability #ICCRuling #CapitalManagement
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- HBM Success Story: SK Hynix's Kwak Noh-jung Poised for Vice Chairman Role to Solidify 'Big 3' Status in SK Group
- Kwak Noh-jung, CEO of SK Hynix, is speculated to be promoted to Vice Chairman in SK Group’s regular executive reshuffle in early December, driven by the success of the "High Bandwidth Memory (HBM) success story." As SK Group Chairman Chey Tae-won has announced plans to focus on investments in artificial intelligence (AI) and the semiconductor industry, it is highly likely that Kwak will be promoted to Vice Chairman to bolster the company’s efforts in these areas. According to sources within SK Group on November 29, there is speculation that Kwak could become the new Vice Chairman among professional managers in the executive reshuffle, expected to be announced as early as December 5 this year. Given that several vice chairmen retired from management roles in last year’s reshuffle, it is expected that there will be promotions to fill these vacancies this year. In 2022, SK Group saw a significant generational shift with the retirement of three Vice Chairmen. These included Cho Dae-sik, Chairman of SK SUPEX Council (Vice Chairman), Kim Jun, Vice Chairman and CEO of SK Innovation, and Park Jung-ho, Vice Chairman and CEO of SK Hynix. This marked a major generational transition as key members of the "old guard" stepped down. Currently, only two professional managers hold Vice Chairman roles within SK Group subsidiaries: Yoo Jung-joon, Vice Chairman and CEO of SK On, and Jang Dong-hyun, Vice Chairman and CEO of SK Ecoplant. This has led to speculation that new members could be added to the Vice Chairman team in the upcoming reshuffle. Kwak Noh-jung is considered the leading candidate for Vice Chairman. This is attributed to his proven management capabilities through the success of HBM. Reversing Samsung Electronics’ lead in semiconductor technology competition is an unprecedented achievement in SK Hynix’s history. As of the third quarter of 2024, SK Hynix’s cumulative consolidated operating profit stood at KRW 15.3845 trillion, surpassing Samsung Electronics’ Semiconductor (DS) division’s operating profit of KRW 12.22 trillion by over KRW 3 trillion. Furthermore, the gap in HBM competitiveness between the two companies is expected to persist at least until 2025. The success of HBM is credited to Chairman Chey’s full support and Kwak’s management philosophy of "yield equals competitiveness." In a 2021 interview with the SK Hynix newsroom, Kwak stated, “Our company’s production technology can be summed up as yield. Raising our yield to the best-in-class level is the goal we are striving to achieve with all our capabilities.” Kwak, who joined Hyundai Electronics (the predecessor of SK Hynix) in 1994, has been with the company for 30 years, earning the nickname "SK Hynix Man." He is a semiconductor process expert, having served as Head of Process Technology at the Future Technology Research Institute, D&T Technology Group Leader in Manufacturing and Technology, and Diffusion Technology Group Leader in Manufacturing and Technology. When he was appointed Senior Vice President of Manufacturing and Technology in 2019, he was recognized for significantly improving DRAM and NAND Flash yields. This led to his promotion to CEO within three years. He is now in his third year as CEO. SK Hynix’s HBM competitiveness is considered to stem from its yield. The yield of the fifth-generation HBM, HBM3E, is estimated to be close to 80%, far surpassing that of competitors. Chairman Chey views AI as a future growth engine for SK Group. Consequently, more emphasis is being placed on SK Hynix, which handles the final stage of the AI value chain among the group’s subsidiaries. At the SK AI Summit held on November 4 at COEX in Seoul, Chairman Chey stated, “SK is a rare company globally that covers everything from semiconductors to data centers and service development,” predicting that “a massive expansion of the AI market is likely to occur around 2027.” However, some speculate that, in line with the trend of reducing the size of Vice Chairman teams across the business world, SK Group may also minimize the scale of its promotions. Samsung Electronics maintained its three Vice Chairmen this year, Hyundai Motor Group has only one professional manager as Vice Chairman, and LG Group, despite expectations of Vice Chairman promotions, maintained a two-Vice-Chairman system this year. An industry insider commented, “If SK’s personnel decisions focus on ‘merit-based rewards and accountability,’ Kwak is a strong candidate for Vice Chairman. However, given that major companies are minimizing senior executive promotions and SK Group is also reducing the number of executives as part of its ‘rebalancing’ efforts, there is a possibility, as with last year, that there will be no Vice Chairman promotions.” #SKHynix #KwakNohjung #ViceChairman #SKGroup #HBM #Semiconductor #AITechnology #CheyTaewon #CorporateReshuffle #Management
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- Shin Dong-bin Pledges Shin Gyeok-ho’s Dream as Collateral, Unveils Unprecedented Overhaul at Lotte Group
- Shin Dong-bin, Chairman of Lotte Group, has made a bold move. Faced with a liquidity crisis triggered by Lotte Chemical’s poor performance, Shin has even put Lotte World Tower, the symbol of founder Shin Gyeok-ho’s dream, up as collateral. This suggests that Shin sees no other option but a sweeping personnel overhaul. The replacement of CEOs at 10 out of 13 chemical affiliates demonstrates Shin’s strong determination for reform. However, he chose not to make changes at the vice chairman level, which is responsible for stabilizing the organization and setting the overall direction. It appears that he believes shaking the leadership would not help resolve the group’s crisis. The regular executive reshuffle announced by Lotte Group on the 28th has been described as an "unprecedented reform." In this reshuffle, Lotte Group reduced its total number of executives by 13% compared to the end of 2023. This reduction is even larger than the cut made during the COVID-19 crisis, widely considered one of the most challenging periods for the group. A total of 21 CEOs, accounting for 36% of all top executives, were replaced. This is the largest CEO reshuffle in Lotte Group’s history. The scale of this reshuffle surpasses even those implemented during the group’s management vacuum caused by internal power struggles among owner family members and legal risks involving Shin Dong-bin. It highlights the gravity of the current crisis faced by Lotte Group. Lotte Group is currently grappling with liquidity issues. Amid reports that Lotte Chemical might fail to meet financial covenants on its corporate bonds due to poor performance, rumors circulated suggesting the possibility of a "Lotte Group moratorium (default)" declaration. On the 27th, Lotte Group put Lotte World Tower up as collateral for a bank guarantee to reinforce Lotte Chemical’s corporate bond credit. This reflects the sense of urgency within the group. Lotte World Tower, often referred to as "founder Shin Gyeok-ho’s dream" and "lifelong project," is a symbol of the Lotte Group. The Lotte World Tower and Lotte World Mall (Second Lotte World) project began in 1987 when founder Shin Gyeok-ho purchased the land with the vision of building a skyscraper in Jamsil. After years of delays, construction began in 2010, was completed at the end of 2016, and the building opened in April 2017. The estimated construction cost was KRW 4.3 trillion (USD 3.1 billion), and its current value is believed to exceed KRW 6 trillion (USD 4.3 billion). The market interprets Shin Dong-bin’s decision to use this symbolic asset as collateral as a sign that Lotte Group is on the brink of collapse. A notable example of Shin’s reformist approach in this reshuffle is the resignation of Lee Hun-ki, head of the Chemical Business HQ and CEO of Lotte Chemical, who was considered a key strategist for the group. Lee, known as a trusted confidant of Shin, had been actively involved across various businesses, including bio, healthcare, and rental services. In August 2020, he was appointed head of ESG Management Innovation at Lotte Holdings, where he spearheaded efforts in mergers and acquisitions and new business development. He played a pivotal role in launching Lotte BioLogics and Lotte Healthcare, two of the group’s future growth businesses. Lee was brought in to Lotte Chemical, which was in a massive deficit, largely due to Shin’s trust in his abilities. Tasked with restructuring, he was seen as the right person to drive transformation. However, Lee failed to achieve visible results in turning around Lotte Chemical’s profit margins. To make matters worse, Lotte Healthcare, where he was the inaugural CEO, is now undergoing a phased withdrawal. Lee reportedly offered his resignation to Shin for these reasons, and Shin chose to emphasize the spirit of reform by appointing a new leader rather than rejecting Lee’s offer. The decision to replace Lee Won-jik, CEO of Lotte BioLogics, which is leading the group’s new business initiatives, also underscores the focus on change in this reshuffle. Lee, who had contributed to Samsung Group’s bio business, joined Lotte Group in August 2021. As head of New Growth Team 2 under ESG Management Innovation, he helped launch Lotte BioLogics and served as its first CEO. Despite his efforts to expand Lotte BioLogics' contract development and manufacturing (CDMO) business, he is stepping down after just over two years in the role. This move is seen as a recognition that Lotte BioLogics, as it currently stands, may struggle to compete in the bio industry where Samsung, SK, and Celltrion are racing ahead. Another feature of this reshuffle was the replacement of the heads of key divisions at Hotel Lotte, which sits at the top of Lotte Group’s governance structure in Korea. However, Shin retained all the vice chairmen, striking a balance between reform and stability in the leadership. The saying "In times of war, generals are not replaced" seems to apply to the vice chairmen. Lee Dong-woo, CEO of Lotte Holdings and a vice chairman, has been criticized for bearing significant responsibility for Lotte Group’s crisis as the head of the group’s control tower. While he cannot be held solely accountable, the weight of his overarching role cannot be overlooked. Nevertheless, Lee retained his position in this reshuffle, reaffirming Shin’s trust in him. Other vice chairmen, including Lee Young-goo (Head of Food Business HQ and CEO of Lotte Wellfood), Kim Sang-hyun (Head of Retail Business HQ and CEO of Lotte Shopping), and Park Hyun-chul (CEO of Lotte Construction), also retained their positions. These decisions are seen as recognizing the relatively stable performance of the food affiliates and the gradual improvement in results by the retail affiliates. #ShinDongBin #LotteGroup #LotteWorldTower #executivereshuffle #leadershipcrisis #LotteChemical #LeeHunKi #LotteBioLogics #corporategovernance #businessreform
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- CJ ENM’s Path to 'Mega OTT' Faces Growing Financial Burden – Will Yoon Sang-hyun Turn to Asset Securitization?
- Yoon Sang-hyun, CEO of CJ ENM, is one step closer to merging TVING and Wavve, paving the way for a homegrown online video service (OTT) platform capable of competing with Netflix. However, as substantial funds will be required to meet antitrust regulations for equity acquisition and ensure the financial stability of the merged entity, Yoon is expected to consider monetizing CJ ENM's non-core assets as part of his integration strategy. According to insiders in the content industry on the 28th, CJ ENM, the largest shareholder of TVING, and SK Square, the largest shareholder of Wavve, have made strategic investments in Wavve, signaling a strong commitment to completing the merger. The investments, totaling KRW 10 billion (USD 7.2 million) from CJ ENM and KRW 15 billion (USD 10.8 million) from SK Square, will be used to acquire newly issued convertible bonds (CBs) by Wavve. The funds will allow Wavve to repay the convertible bonds held by its existing financial investors (FIs). In the prolonged merger negotiations, hampered by conflicting interests between the strategic investors (SIs) of TVING and Wavve, this move reflects a clear intent to see the merger through. Yoon Sang-hyun stated in a press release announcing the strategic investment in Wavve, “Through this investment agreement with SK Square, we aim to enhance customer convenience, expand content supply, and enable various business collaborations, which will help increase user satisfaction and strengthen the competitiveness of local online video services.” CJ ENM and SK Square envision launching a globally competitive K-OTT platform through the integration of TVING and Wavve. Their goal is to provide differentiated content to users and contribute to the development of Korea’s OTT industry ecosystem. The two companies plan to complete the merger, centering on CJ ENM, after undergoing antitrust reviews and proceed with integration. As of the end of September, TVING recorded more than 7.8 million monthly active users (MAUs), while Wavve had 4.27 million MAUs. Combined, the integrated OTT platform is expected to reach around 12 million MAUs, potentially surpassing or equaling Netflix, which had 11.67 million MAUs in September. Even accounting for overlapping users, the platform is unlikely to fall significantly behind Netflix. Currently, TVING is improving its profitability, aided by factors such as sports broadcasting and the introduction of ad-supported subscription tiers. Although it has yet to turn a profit, analysts increasingly predict that the company will achieve quarterly profitability next year if these trends continue. If the integration with Wavve generates additional synergy, performance improvement is expected to accelerate further. The appeal of the integrated platform to users will likely grow as they can access more content on a single platform at the same price. Cost reductions through integrated operations are also anticipated. With the merger nearing completion, Yoon Sang-hyun is expected to prepare for the post-merger era, devising strategies to enhance the competitiveness of the OTT business. Securing the necessary funds for the integration process will also be a critical task. According to antitrust regulations, CJ ENM must hold at least 40% of the equity in the unlisted merged entity to meet holding company requirements. Currently, CJ ENM owns 48.9% of TVING. Based on an estimated enterprise value ratio of 1.6:1 for TVING and Wavve, as cited by some in the financial investment industry, CJ ENM’s 48.9% stake in TVING would convert to approximately 30.1% in the merged entity. If CJ ENM converts the convertible bonds acquired through this investment in Wavve into common shares, those shares could also count toward its stake in the merged entity. Assuming that the strategic investments by CJ ENM and SK Square result in newly issued common shares equivalent to the CBs due on the 28th, the two companies are estimated to secure a combined 16.5% stake in Wavve. Of this, CJ ENM’s portion would be around 6.6%. Applying the 1.6:1 enterprise value ratio, a 6.6% stake in Wavve translates to approximately 2.5% of the merged entity. Under this scenario, CJ ENM’s total stake in the merged entity would reach 32.6%, still requiring over 7% additional equity to meet regulatory requirements. Depending on the valuation of the merged entity, securing this additional equity could require several hundred billion won, according to most investment industry estimates. Given Wavve’s weak financial structure, additional funding may also be needed to stabilize its finances. As of the end of last year, Wavve had a negative equity value of KRW 26.8 billion (USD 19.3 million), indicating a state of complete capital erosion. Moreover, operating funds may need to be allocated across various areas during the integration process. The unresolved burden of CJ LiveCity also remains a factor. CJ ENM recorded KRW 322.2 billion (USD 232.4 million) in asset disposal losses related to CJ LiveCity in its third-quarter earnings, resulting in a quarterly net loss of KRW 531.4 billion (USD 383.2 million). In addition to these losses, the potential for additional penalties due to project delays cannot be ruled out. While CJ ENM’s cash and cash equivalents stood at KRW 782.7 billion (USD 564.4 million) as of the end of September, this is not considered sufficient to comfortably manage the upcoming integration process. This situation has led to speculation that Yoon Sang-hyun may consider liquidating or leveraging non-core assets to raise funds. Among CJ ENM’s non-core assets, its shares in Netmarble, which hold significant value, have often been mentioned as a potential source of liquidity. In July, CJ ENM sold a portion of its Netmarble shares, raising KRW 250.1 billion (USD 180.4 million). This reduced its stake in Netmarble from 22.9% to 17.6%, leaving additional room for future cash generation. Options include directly selling more Netmarble shares or issuing exchangeable bonds (EBs) secured by those shares. Shin Eun-jung, a researcher at DB Financial Investment, stated, “Although the Netmarble shares sold by CJ ENM in July (around a 5% stake) were smaller than expected, the market’s anticipation for further asset liquidation remains high. With the need for additional cash, the execution of asset liquidation in the short or medium term appears essential.” In response, a CJ ENM representative said, “The current available assets are sufficient to address the situation.” #CJENM #YoonSangHyun #TVING #Wavve #OTTplatform #Netflixcompetitor #merger #financialstrategy #Netmarble #corporatereform
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- LG Electronics Confirms Third India Factory – Cho Joo-wan Targets KRW 30 Trillion Market
- LG Electronics has finalized plans to build its third factory in India, with a total investment of KRW 825 billion (approximately US$ 595 million). LG Electronics will begin construction of the factory in Andhra Pradesh, located in southeastern India, early next year and plans to start producing home appliances, including air conditioners, as early as late 2026. The company’s focus on the Indian home appliance market is interpreted as a strategy to increase sales in rapidly growing emerging markets, amid stagnant growth in the massive Chinese market and policy uncertainties in North America. Cho Joo-wan, CEO of LG Electronics, is aggressively pursuing facility investments and strengthening marketing efforts to seize market leadership, as the Indian home appliance market is expected to grow from KRW 15 trillion in 2019 to KRW 30 trillion by 2025, emerging as the next major demand market to replace China. Some observers speculate that LG Electronics’ increased investment in India is also with an eye toward a potential local initial public offering (IPO) of its Indian subsidiary. On November 27 (local time), Indian media outlet *Deccan Chronicle* reported that the Andhra Pradesh state government approved LG Electronics’ plan on November 26 to build a new home appliance factory with an investment of 50 billion rupees (approximately KRW 825 billion). The factory is scheduled to break ground in January 2025 and will produce air conditioners, refrigerators, and washing machines. According to the Andhra Pradesh state government, LG Electronics will start producing air conditioners at the factory in December 2026, followed by refrigerators in 2028. Classified as a "major investment," the factory will receive various incentives from the Andhra Pradesh state government. Under the state’s industrial development policy, LG Electronics will benefit from electricity subsidies, construction cost reimbursements, water tariff support, administrative fee exemptions, and technical grants. This factory will be the company’s third in India, following the Noida factory built in 1997 and the Pune factory constructed in 2006. CEO Cho is pursuing the new factory in India for the first time in 20 years due to the rapid growth of the Indian home appliance market. According to the Asian Development Bank (ADB), India’s economy grew 8.7% in 2021, 7% in 2022, and 7.2% in 2023, following a 6.6% contraction in 2020. Excluding small city-states, India is the fastest-growing economy in the world. As a result, the proportion of the middle class in India is also increasing. According to the Indian economic research institute PRICE, the middle-class proportion in India is expected to rise from 31% in 2023 to over 38% by 2031. With the growing middle class, India’s home appliance market is also expanding. According to the Korea Trade-Investment Promotion Agency (KOTRA), the Indian home appliance market is projected to grow from US$ 11 billion (approximately KRW 15.34 trillion) in 2019 to US$ 21 billion (approximately KRW 29.3 trillion) by 2025. German market research firm Statista stated, “Demand for premium home appliances is increasing due to the rise of the Indian middle class.” Consequently, LG Electronics’ sales in India are also rising. The revenue of LG Electronics India increased from KRW 2.1 trillion in 2020 to about KRW 3.5 trillion in 2023, with projections for sales to exceed KRW 4 trillion this year. For the first three quarters of this year, LG Electronics India recorded revenue of KRW 3.08 trillion, with net profit reaching KRW 290.5 billion, a 40.9% increase from the same period last year. This marks the second-highest net profit among the company’s overseas home appliance subsidiaries, following the U.S. subsidiary. According to market research firms Omdia and GfK, LG Electronics ranked first in the Indian market last year in premium OLED TVs and air conditioners, with market shares of 64.2% and 31%, respectively. In the first half of this year, LG also maintained its top position in refrigerators and washing machines, each with a 30% market share. The construction of this home appliance factory is expected to accelerate LG Electronics’ IPO in India. CEO Cho stated in an interview with Bloomberg in August, “We are considering the IPO of LG Electronics India.” It is reported that LG Electronics has selected four companies—Bank of America (BofA), Citigroup, JP Morgan, and Morgan Stanley—as lead managers for the Indian subsidiary’s IPO. LG Electronics India’s target valuation is estimated at US$ 13 billion (approximately KRW 17.3 trillion). In September, CEO Cho commented on the IPO, stating, “While no official decision has been made, it is one of several options under consideration. In India, LG has long been regarded as a national company, so we are exploring various options with the vision of becoming a ‘national brand.’” #LGElectronics #IndiaMarket #IndianEconomy #HomeAppliances #FactoryConstruction #ChoJoowan #IPO #AndhraPradesh #EmergingMarkets #MiddleClass
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- Na Chea-bum of Hanwha Insurance: Success in Women’s Market Research Boosts Profitability and Image
- Na Chea-bum, CEO of Hanwha General Insurance, has been driving the success of "women-focused insurance," which has boosted new contracts and resonated strongly with female customers. Since Na's appointment, Hanwha General Insurance has been focusing on communicating authentically with the market and offering products tailored to actual customer needs, with the goal of supporting women throughout their lives. This strategy is said to have achieved a dual benefit: expanding performance while enhancing the company’s image as a leader in addressing women’s issues, including tackling the low birthrate. According to Hanwha General Insurance on the 27th, the company will host a talk concert titled "Women Who Became a Genre" at the Dreamplus Event Hall in Gangnam, Seoul, from December 6 to 7. The event, organized by Hanwha General Insurance’s FemTech Research Center and the self-development content subscription service "Polin," features female leaders who have established their paths in society sharing experiences with other women in the audience. The announcement that Min Hee-jin, former CEO of Ador, would be a key speaker caused a buzz, leading to offline tickets selling out shortly after her participation was revealed. While it may seem unusual for a general insurance company to host an event exclusively for women, observers credit Hanwha General Insurance for making it possible. Since his appointment, Na has viewed women’s insurance as a future market and has actively launched specialized products and customer engagement events. In line with this focus, Na established South Korea’s first FemTech Research Center in the financial industry in June 2023. The center organizes offline events to engage directly with customers, analyze the market, and identify demand for specific coverage options. In October, the FemTech Research Center held a field forum on addressing the low birthrate on October 13 and a healing program for women who have experienced cancer and their caregivers on October 22. The center also publishes irregular trend reports analyzing women in their 20s and 30s, a key target demographic. Na has utilized the center to research high-demand coverage areas and secure exclusive usage rights, creating a virtuous cycle that enhances the competitiveness of Hanwha’s insurance products. According to the General Insurance Association of Korea, Hanwha General Insurance accounted for four of the 15 exclusive usage rights applications in 2023, covering nine areas of protection, out of the total 21 across the industry. Na began targeting the women’s insurance market by recognizing women’s longer life expectancy, higher insurance needs related to pregnancy and childbirth, and growing social participation. Products developed through sincere research and communication with female customers have been well-received in the market. Hanwha General Insurance achieved record performance in the third quarter, reporting cumulative standalone net income of KRW 345.7 billion, a 36.3% year-on-year increase. This growth is attributed to the popularity of "Signature 3.0 Women’s Insurance" and other profitable products. Signature Women’s Insurance accounted for 26.3% of all new contracts, including comprehensive and simplified plans. Kim Do-ha, a researcher at Hanwha Investment & Securities, stated, “Hanwha General Insurance has steadily increased the proportion of women’s health insurance sales, which are more profitable than the overall average, improving its contract service margin (CSM), a key profitability indicator.” Hanwha’s new contract CSM for the third quarter increased by 7% compared to the second quarter and 2% year-on-year. Women’s insurance is also advantageous for managing loss ratios, as younger policyholders have lower morbidity rates. The age distribution of Signature Women’s Insurance policyholders differs significantly from general insurance customers, with 11.2% under 20, 14.6% in their 30s, 26.4% in their 40s, and 47.7% aged 50 and older. In contrast, 61.3% of general insurance policyholders are 50 and older. As a result, the cumulative loss ratio for women’s insurance in the third quarter was 66.6%, 9.2 percentage points lower than that of general insurance. In addition to developing specialized insurance products for women, such as infertility and subfertility coverage, Hanwha General Insurance is also working to address the low birthrate, which has improved its public image. In November, the company became the first in the industry to launch a product covering hospitalization costs for pregnancy and childbirth. A special childbirth support rider offers KRW 1 million for the first birth, KRW 3 million for the second, and KRW 5 million for the third, earning recognition as a product aimed at addressing the low birthrate. Last month, on "Pregnant Women’s Day," Hanwha General Insurance held a field forum with the Presidential Committee on Aging Society and Population Policy to discuss measures to tackle the low birthrate. Na Chea-bum is also regarded as a pioneer of women-focused insurance in South Korea. Before Hanwha General Insurance’s active entry into the market, women-focused insurance was underdeveloped. After Hanwha demonstrated the market’s potential, major insurers such as Samsung Fire & Marine, Hyundai Marine & Fire, and Heungkuk Fire & Marine followed suit with their own women-focused products. Na’s strong leadership is considered the driving force behind the success of women-focused insurance. Having served as Head of the Management Innovation Division and Chief Financial Officer (CFO) at Hanwha General Insurance, Na became CEO in March 2023. He is known for his innovative and decisive management style. Hanwha General Insurance plans to continue strengthening its branding as a women-focused insurance company and enhancing product competitiveness. During the third-quarter earnings conference call, the company stated, “We have focused on securing exclusive usage rights and exploring new coverage areas for high-value products such as women’s insurance. At the same time, we have strengthened efficiency indicators such as loss ratio management. We will continue to focus on expanding the contract service margin (CSM) in the fourth quarter.” #NaCheaBum #HanwhaGeneralInsurance #WomensInsurance #FemTech #SignatureWomensInsurance #LowBirthrateSolutions #InsuranceInnovation #SouthKorea #FinancialIndustry #CSM
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- Samsung Restructures Semiconductors Under Jun Young-hyun, Boosts Memory and Foundry
- Samsung Electronics has conducted a major reshuffle in the Semiconductor (DS) Division, replacing the heads of its Memory Semiconductor and Foundry Business Units to address the "Samsung Semiconductor Crisis." Jun Young-hyun, Vice Chairman and CEO of the DS Division, has taken direct control of the Memory Business Unit, signaling his commitment to restoring Samsung’s "super-gap" in memory technology. On November 27, Samsung announced its executive appointments for 2025, reflecting a clear merit-based personnel policy in the DS Division. The company replaced the heads of the Memory and Foundry Business Units, where competitive weaknesses were most evident. The Memory Business Unit recently lost its top position in high-bandwidth memory (HBM) to rival SK Hynix, a blow to Samsung’s pride. Meanwhile, the Foundry Business Unit has failed to close the gap with Taiwan's TSMC, reporting losses in the trillions of won every quarter since late last year. Samsung is expected to focus its efforts on strengthening memory competitiveness. The direct control structure in the Memory Business Unit under Vice Chairman Jun Young-hyun is seen as a move to reinforce this priority. This new structure allows Jun to directly oversee the development and production of DRAM, HBM, and NAND flash, enabling faster decision-making. Samsung has faced criticism for its complex decision-making process, which hindered swift responses to environmental changes. A company spokesperson explained, “To overcome uncertain internal and external business environments and achieve a new leap forward, we have transitioned the Memory Business Unit to a direct-control structure under the CEO.” Jun, a "memory expert," led the Memory Business Unit from 2014 to 2017 before moving to Samsung SDI. During his tenure, Samsung consistently outpaced competitors in commercializing new memory products, solidifying its "super-gap" strategy. Regaining lost market share in HBM is an urgent priority. To achieve this, Samsung is reassigning researchers from the Foundry and System LSI Divisions to the Memory Business Unit. The company is also focusing on passing NVIDIA’s quality certification for its fifth-generation HBM3E, scaling its mass production, and accelerating the development of sixth-generation HBM4. The latest executive appointments also reflect Chairman Lee Jae-yong’s commitment to strengthening the Foundry Business Unit. Han Jin-man, newly promoted to President and Head of the Foundry Business Unit, is an engineer with extensive experience, having worked in DRAM and NAND flash design teams and served as Head of the SSD Development Team. Han also led the Strategic Marketing Office and, since late 2022, served as DS Division’s Head of North American Operations (DSA), steering Samsung’s semiconductor business in the U.S. His technical expertise and business acumen have been widely recognized. Han’s extensive network in the U.S. is expected to be a significant asset for securing major foundry orders. Samsung’s foundry business depends on securing large contracts from major U.S. tech companies like Apple and NVIDIA to turn profitable. Without such contracts, the operation of the new foundry plant in Taylor, Texas, scheduled to begin in 2026, could face further delays. The Foundry Business Unit also introduced a new Chief Technology Officer (CTO) position, filled by Nam Seok-woo, President of DS Division’s Global Manufacturing & Infrastructure Management. This move reflects the need to address ongoing yield issues that have plagued the business. Earlier, Samsung faced mounting losses in its foundry business due to unresolved yield problems with its 3nm process technology. This led to calls for the Foundry Business Unit to be spun off and sold. However, in October, Chairman Lee dismissed such speculation, stating he had "no interest in spinning off the business," reaffirming Samsung’s commitment to the foundry business. Park Yong-in, Head of the System LSI Business Unit, has retained his position. The DS Division is expected to focus on achieving long-term goals moving forward. To support this, the company has established a new role, Head of Business Strategy, reporting directly to the DS Division. This position will focus on developing next-generation technologies and strategically allocating investments for sustainable growth without being tied to short-term performance. Kim Yong-kwan, previously Vice President of the Business Support Task Force, has been promoted to President and will assume this role. A Samsung spokesperson stated, “To strengthen semiconductor technology competitiveness and refresh the organization’s atmosphere, we have introduced a President-level CTO position in the Foundry Business Unit and a President-level Business Strategy position reporting directly to the DS Division. We have assigned the task of exploring new business opportunities to seasoned veteran executives whose management capabilities have been proven.” #SamsungElectronics #SemiconductorCrisis #MemoryBusiness #FoundryBusiness #JunYoungHyun #HanJinMan #HBMTechnology #SemiconductorLeadership #LeeJaeYong #DSDivision
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- Samsung Electronics Strengthens Trio Amid Crisis: Lee Jae-yong’s Judicial Risks?
- Lee Jae-yong, Chairman of Samsung Electronics, has retained the three vice chairmen—Han Jong-hee, Jun Young-hyun, and Chung Hyun-ho—despite concerns over the so-called "Samsung crisis." This decision appears to reflect Lee’s judgment that shaking up the organization too much amidst global uncertainties would not be wise, even amid some calls for a major generational shift. Additionally, with Lee's "judicial risks" not yet fully resolved, this move seems to demonstrate his intention to strengthen the professional management system. The executive appointments for 2025, announced by Samsung Electronics on the 27th, have been described as far less extensive than anticipated. Only two new executives—Jinman Han, head of the Foundry Business Division in the Semiconductor (DS) Division, and Yongkwan Kim, head of DS Division's Business Strategy Office—were promoted to president, the same as last year. Meanwhile, the trio of vice chairmen remains unchanged. Initially, there were speculations within the business community that there might be changes to the roles of Han Jong-hee, Vice Chairman and Head of the Device eXperience (DX) Division, and Chung Hyun-ho, Vice Chairman and Head of the Business Support Task Force, whose CEO terms are set to end in March 2025. Particularly, Vice Chairman Chung has recently faced criticism from inside and outside the group for the "Samsung crisis," but his reappointment reaffirms Lee's strong trust in him. On the contrary, the roles of Samsung Electronics’ vice chairmen have been expanded. Vice Chairman Jun Young-hyun of the DS Division will also serve as head of the Memory Business Division, taking full responsibility for strengthening high-bandwidth memory (HBM) competitiveness, while also assuming the role of Samsung Electronics' CEO. Han Jong-hee, Vice Chairman of the DX Division, will additionally serve as Chairman of the Quality Innovation Committee. This personnel reshuffle has been interpreted as further emphasizing the professional management system under Lee's leadership. Previously, in May 2020, Lee publicly apologized over allegations of irregularities related to the merger of Samsung C&T and Cheil Industries, declaring, "I have no intention of passing on management control of the company to my children." He outlined a vision to transition Samsung Group to a professional management system. Lee also testified at a National Assembly hearing in December 2016, saying, "If there is someone better than me, I will hand over management rights at any time." This reshuffle is seen as reaffirming his commitment to fulfilling the promise of transitioning to a professional management system. Lee’s "judicial risks" also seem to have influenced these personnel decisions. In February this year, Lee was acquitted in the first trial regarding the "unfair merger between Cheil Industries and Samsung C&T," but the appeal trial is still pending. During the closing arguments of the appeal trial on the 25th, prosecutors requested a five-year prison sentence and a fine of KRW 500 million. In his final statement during the appeal trial, Lee said, "I am well aware of the growing concerns about Samsung's future," and pleaded, "Please allow me the opportunity to fully focus on my mission." Given that the appellate court's decision is scheduled for February, Lee’s limited ability to engage freely in management may have led him to entrust the current professional management team with navigating the global uncertainties in 2024. Some speculate that Lee is choosing to focus on stabilizing management by empowering the vice chairmen until he completely resolves his judicial risks and returns as a registered director. Both Vice Chairmen Chung Hyun-ho and Han Jong-hee received praise for managing the company stably during Lee's absence due to his imprisonment. During the same period, Vice Chairman Jun Young-hyun, who was dispatched to Samsung SDI as a "relief pitcher," led the company to a performance rebound. However, critics inside and outside the company argue that the reshuffle shows no signs of Lee's willingness to renew personnel, despite the semiconductor crisis. While the reshuffle replaced the heads of the Memory Semiconductor and Foundry Business Divisions, some in the business community doubt whether such limited changes are enough to steer Samsung Electronics out of its current crisis. A Samsung Electronics official commented, "The scope of personnel changes was smaller than expected, which surprised many. How the current management overcomes the crisis will significantly affect the evaluation of this reshuffle." #SamsungElectronics #LeeJaeYong #HanJongHee #JunYoungHyun #ChungHyunHo #personnelreshuffle #professionalmanagement #judicialrisks #semiconductorcrisis #Samsungleadership
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- Daewoo E&C’s Jung Won-ju Targets Indian Market, Accelerates Urban Development Project Bids
- Jung Won-ju, Chairman of Daewoo Engineering & Construction (Daewoo E&C), is focusing on India as a strategic base for securing new growth opportunities. With large-scale infrastructure projects expected to continue in India, seen as a breakthrough for South Korean construction companies, Chairman Jung is expected to intensify his efforts to enhance Daewoo E&C’s competitiveness in securing contracts. According to Daewoo E&C on the 27th, Chairman Jung has personally visited India to inspect construction sites and evaluate local strategies, underscoring his commitment to expanding the company’s presence in the Indian market. From November 18 to 22 (local time), Jung visited India as part of a market research delegation from the Korean Housing Builders Association. On November 19, he visited the Greater Noida Authority in Uttar Pradesh with the delegation. Noida, an industrial city near India’s capital New Delhi, forms part of the National Capital Region (NCR) along with Delhi and Gurgaon (now Gurugram). Shri Ravi Kumar N.G., CEO of the Greater Noida Authority, reportedly proposed the construction of a Korea Town and residential projects to Chairman Jung. On November 21, Jung visited the Public Works Department in Haryana and met with Nayab Singh Saini, Chief Minister of Haryana. Haryana is a plains region located west of New Delhi. Gurugram, located approximately 30 kilometers south of New Delhi, is known as the heart of India’s information and communication technology (ICT) sector and is often called "India’s Silicon Valley." Formerly known as Gurgaon, the city was renamed Gurugram in 2016 to shed its colonial legacy. During the meeting, Chief Minister Saini requested the participation of South Korean construction companies in Gurugram’s urban development projects. Jung expressed his strong interest in introducing projects similar to Vietnam’s Starlake City, which aims to create a "Gangnam of Hanoi," to Haryana. One of the key urban development projects in Gurugram is the "Global City Gurugram" project. Led by the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), this project aims to develop public, residential, commercial, administrative, and cultural facilities on a 4 million-square-meter site. Located in a corridor linking New Delhi and Mumbai, the project is estimated to have an investment value of $15 billion. Even after completing the official schedule of the market research delegation, Chairman Jung stayed in India to personally visit the Bihar bridge project site, demonstrating his active involvement in managing local construction projects. Currently, Daewoo E&C is working on a bridge project in Bihar, India. The project involves constructing a bridge over the Ganges River connecting Patna in Bihar to Bidupur in Vaishali, along with associated approach roads. Chairman Jung’s focus and efforts in India have been well-received locally. On November 20, he received the "Mahatma Gandhi International Award" from the NRI Welfare Society, India’s largest private organization. Jung is the first South Korean to receive this award. At the award ceremony, Gurinder Singh, Chairman of the NRI Welfare Society, stated, "South Korea and India are collaborating across various economic sectors, including technology and infrastructure. Chairman Jung, who leads Daewoo E&C, is expected to play a significant role in fostering bilateral cooperation and driving development between the two nations." Jung’s interest in India appears to stem from the belief that the country offers opportunities to overcome the domestic construction market downturn. Not only Daewoo E&C but also other South Korean construction companies like Samsung E&C and Hyundai Engineering are increasingly eyeing India. Samsung E&C established an office in Mumbai this year and in September released a three-part interview series about its Indian operations on its YouTube channel. Recently, Samsung E&C expanded its presence by opening a new office in Mumbai in addition to its existing office in Noida in eastern India. Since entering India in 1997 as Samsung Engineering, the company established a local entity in Delhi in 2006 and relocated to Noida in 2009. Hyundai Engineering also opened a Global Engineering Center (GEC) in Chennai, India, in July 2024. The company plans to leverage India’s talented workforce to enhance its design capabilities. India’s growing appeal to South Korean construction companies stems from its population growth and rapid economic development, which are expected to drive construction demand. India recently surpassed China to become the world’s most populous country. According to the "2023 World Population Report" by the United Nations Population Fund (UNFPA), India’s population is estimated at 1.4286 billion, exceeding China’s 1.4257 billion. The construction market is growing rapidly alongside population growth. Research firm Oxford Economics reported that India’s construction market was worth $790 billion (approximately KRW 1,090 trillion) in 2023, trailing only China ($2.73 trillion) and the United States ($1.98 trillion). According to a report on India’s construction industry published by the Korea International Trade Association on August 12, India’s construction sector achieved a 9.6% growth rate in 2023 and is projected to grow by 11.2% in 2024, reaching $1.4 trillion by 2028. The construction industry accounts for approximately 9% of India’s GDP and employs 71 million people, second only to agriculture. India’s government is actively courting foreign companies with favorable foreign direct investment (FDI) policies, further attracting attention from South Korean builders. The Indian government has automated FDI-related regulatory procedures and mandated completion within 10 weeks to streamline and expedite processes. Construction projects, including residential and commercial buildings, roads and bridges, hotels and resorts, hospitals, educational institutions, recreational facilities, and urban and regional infrastructure development, are all included in India’s FDI-friendly policies. The International Contractors Association of Korea commented on India’s construction market outlook, stating, "India’s construction market is expected to reach $887 billion in 2024, making it the world’s third-largest after China and the United States. The Indian government’s infrastructure-driven growth policies, such as the Gati Shakti National Master Plan, will further accelerate development." #JungWonJu #DaewooE&C #IndiaConstruction #GlobalCityGurugram #BiharBridge #KoreaIndiaCooperation #InfrastructureDevelopment #FDIPolicy #ConstructionIndustry #SouthKorea
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- "World's No. 1" Hyundai Revives Hydrogen Push: Chung Eui-sun Expands Collaborations
- Hyundai Accelerates Hydrogen Vehicle Business as Global Leader in Fuel Cell Market. Hyundai Motor Company, the global leader in hydrogen fuel cell vehicle (FCEV) market share, is ramping up efforts to expand its hydrogen vehicle business amid challenges in the sector. The global hydrogen vehicle market has struggled to grow due to limited passenger car options and insufficient infrastructure, such as charging stations. In response, Hyundai Motor Group Chairman Chung Eui-sun is actively collaborating with global automakers and local governments to expand the hydrogen ecosystem. His efforts aim to establish hydrogen energy as a mainstream solution. According to battery market research firm SNE Research, global hydrogen vehicle sales totaled 9,946 units from January to September 2023, down 17.4% year-on-year. Hyundai retained its leadership with 3,095 units sold, capturing 31.1% of the market, followed by Japan’s Toyota with 1,634 units (16.4%). Despite its leadership, the hydrogen vehicle market remains niche. In 2022, global hydrogen vehicle sales reached 20,704 units at their peak but fell 20.7% in 2023, with a further 17.4% decline in the first nine months of 2024. To address these challenges, Hyundai is forming strategic partnerships. Chairman Chung has initiated discussions with Toyota, the world’s largest automaker, to collaborate in hydrogen technology. On October 24, during the 2024 World Rally Championship in Toyota City, Japan, Chung met with Toyota Chairman Akio Toyoda. This marked their third meeting in 2023, following discussions earlier this year on hydrogen vehicles and autonomous mobility. The two companies are expected to announce specific collaboration plans to expand the hydrogen ecosystem soon. This aligns with a broader push by South Korea and Japan, which launched the "Clean Hydrogen and Ammonia Supply Chain Development Working Group" in June to promote cooperation. In September, Hyundai signed a comprehensive memorandum of understanding (MOU) with General Motors (GM) in the United States to co-develop technologies for electric and hydrogen vehicles. GM is currently developing hydrogen fuel cell systems, branded as "Hydrotec," for use in pickup trucks. Analysts predict significant synergies between Hyundai and GM in the hydrogen commercial vehicle sector. Hyundai has also been strengthening ties with local governments. In November alone, Hyundai signed agreements with three cities to establish hydrogen industry ecosystems: Guangzhou, China, Ulsan, South Korea, and Jeonbuk Province, South Korea. These partnerships focus on developing hydrogen production, supply, and utilization projects, including South Korea’s first hydrogen tractor pilot project and hydrogen charging station infrastructure. In 2021, Chung unveiled Hyundai’s vision for hydrogen, declaring 2040 as the year of hydrogen energy commercialization. The company plans to apply hydrogen fuel cell systems to all commercial vehicle lineups by 2028. The third-generation hydrogen fuel cell system, which is expected to be 30% smaller and over 50% cheaper than the second generation, is under development and anticipated to be price-competitive with electric vehicles by 2030. However, the timeline for mass production of the third-generation system has been delayed to post-2026 due to technical challenges and insufficient market demand. Despite the delay, Hyundai recently unveiled the concept car "NEXO Inception," the successor to its first-generation NEXO hydrogen vehicle, slated for release in early 2024. The new model, featuring a 2.5-generation fuel cell system, offers improved range and performance, including a 650 km range per charge and a motor output of 150 kW. In June, Chung reorganized Hyundai Mobis' hydrogen fuel cell resources, transferring research, production, and quality control capabilities to Hyundai Motor. This strategic move aims to accelerate hydrogen vehicle development. A Hyundai spokesperson stated, "We plan to accelerate the adoption of hydrogen mobility by expanding sales of next-generation NEXO models, hydrogen buses, and hydrogen trucks." Hyundai's commitment to hydrogen vehicles reflects its long-term vision to lead the global energy transition. #Hyundai #ChungEuiSun #HydrogenVehicles #FCEV #Toyota #GM #HydrogenEcosystem #HydrogenFuelCells #HydrogenMobility #NEXO
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- IBK's Deliberation on MG Non-Life Acquisition: Kim Sung-tae Weighs Non-Banking Expansion Against Cost
- Kim Sung-tae, CEO of IBK Industrial Bank of Korea, is deeply contemplating participation in the sale of MG Non-Life Insurance. Kim is now reviewing the potential acquisition of MG Non-Life Insurance, following unexpected pressure from political circles, despite IBK’s initial lack of consideration for this move. The acquisition aligns with IBK's need to strengthen its non-banking portfolio by adding a non-life insurance business. However, concerns about the significant cost and time required to normalize MG Non-Life Insurance's operations make the decision challenging. According to sources within the insurance industry on the 26th, the Korea Deposit Insurance Corporation (KDIC), which is leading the sale of MG Non-Life Insurance, has delayed the announcement of the preferred negotiation candidate. Speculation suggests this is due to KDIC awaiting IBK’s decision on whether to participate in the sale. IBK initially had no plans to acquire MG Non-Life Insurance. However, during a parliamentary audit in October, Representative Shin Jang-sik from the Progressive Party repeatedly urged IBK to play a role in resolving MG Non-Life Insurance’s sale issue as a state-run bank. Following this, IBK began internal reviews on the acquisition. Kim Sung-tae recognizes the absence of a non-life insurance arm in IBK’s portfolio and acknowledges the need for such an addition. Notably, non-life insurance subsidiaries of major financial groups are proving to be significant profit drivers, potentially making MG Non-Life Insurance an asset to enhance IBK’s performance. For example, among KB Financial Group’s non-banking subsidiaries, KB Insurance posted the highest cumulative net profit of KRW 740 billion (USD 537.5 million) in Q3 2024. Similarly, Samsung Fire & Marine Insurance achieved a cumulative net profit of KRW 1.8344 trillion (USD 1.33 billion) by Q3 2024, nearing IBK’s total consolidated net profit of KRW 2.1977 trillion (USD 1.59 billion) for the same period. The acquisition of MG Non-Life Insurance could also align with IBK’s longstanding vision of transitioning into a financial holding company. Currently, IBK operates businesses in life insurance (retirement insurance), credit cards, securities, capital, and asset management through its internal structure and subsidiaries. Transitioning to a holding company would enable IBK to leverage inter-subsidiary information and enhance competitiveness, a dream pursued by former CEOs Yoon Yong-ro, Kim Do-jin, and Yoon Jong-won. Although Kim has not publicly announced plans for such a transition, his emphasis on transforming IBK into a “world-class financial group” suggests alignment with this long-term strategy. Acquiring MG Non-Life Insurance could be seen as a critical piece of the puzzle for achieving this transformation. Despite these strategic benefits, Kim faces significant challenges in deciding to acquire MG Non-Life Insurance. The insurer is not considered an attractive asset, as it would require substantial financial input to normalize operations rather than delivering immediate profit. MG Non-Life Insurance's solvency ratio (K-ICS), a key financial soundness indicator, was just 36.53% in the first half of 2024. To meet the financial authorities' required level of 150%, a capital injection of several hundred billion Korean won would be unavoidable. An IBK spokesperson commented to *Business Post*: “After meetings with lawmakers, we are reviewing whether to participate in the MG Non-Life Insurance sale. However, there is no further update at this time.” #IBK #KimSungTae #MGNonLifeInsurance #Acquisition #NonBankingPortfolio #FinancialHoldingCompany #InsuranceIndustry #KoreaDepositInsuranceCorporation #SolvencyRatio #FinancialGroupExpansion
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- KakaoBank's value-up focus: 'Aggressive growth,' Yun Ho-young diverges from traditional banks.
- Yun Ho-young, CEO of KakaoBank, has emphasized growth and investment in the company's value enhancement disclosure, setting a different course from traditional banks that focus on shareholder returns. As South Korea's leading internet bank, KakaoBank has maintained steady profit growth since its inception. However, the market continues to question its growth potential. For KakaoBank, demonstrating growth may be the most effective strategy for enhancing value. To this end, CEO Yun has set an ambitious goal of transforming the company into a comprehensive financial platform with assets totaling KRW 100 trillion (approximately USD 72.6 billion), emphasizing "aggressive growth" as the foundation for increasing corporate value. On November 26, KakaoBank announced a mid-to-long-term management goal to achieve 30 million customers and KRW 100 trillion (USD 72.6 billion) in assets by 2027, as part of its corporate value enhancement plan. At a meeting with securities analysts held at KakaoBank's office in Yeouido, Seoul, CEO Yun unveiled the "growth-centered value-up strategy." He stressed investments in customer base expansion, earnings growth, new business ventures, and overseas market expansion, including mergers and acquisitions (M&A). Specific plans included broadening the business scope into areas such as artificial intelligence (AI), fintech, investment advisory, capital, and electronic payment services (PG), alongside international acquisitions requiring substantial funding. This approach sets KakaoBank apart from conventional financial institutions that focus on enhancing shareholder value through share buybacks, cancellations, and dividend increases. As a 7-year-old internet bank committed to financial innovation, KakaoBank is still considered to be in its growth phase, differing fundamentally from legacy financial institutions with decades-long operational histories. While KakaoBank leads in net profit and customer numbers among the three major domestic internet banks, market evaluations of its corporate value remain conservative. Following its initial public offering in 2021, KakaoBank faced valuation debates, with its stock price struggling to gain momentum. After an early surge from KRW 50,000 (USD 36.3) to KRW 90,000 (USD 65.4), its stock price currently hovers in the low KRW 20,000 (USD 14.5) range. Analysts' assessments echo similar sentiments. Despite record-breaking earnings in Q3 2023 with a cumulative net profit of KRW 355.6 billion (USD 258.3 million), marking a 27.3% year-over-year increase, concerns over growth persist. Jung Joon-seop, a researcher at NH Investment & Securities, noted in a report, "While KakaoBank continues to deliver solid profits and maintain financial stability, securing differentiated growth drivers based on its platform and app capabilities is essential for a rebound in corporate value." Similarly, Kang Seung-geon, a researcher at KB Securities, stated, "KakaoBank maintains the industry's highest proportion of low-cost deposits (57.9%) and shows favorable profitability indicators driven by net interest income growth. However, growth potential remains underwhelming, as evidenced by modest loan growth in Q3." As such, proving growth potential is seen as a critical task for CEO Yun to elevate KakaoBank's corporate value. Through the announced value-enhancement strategy, Yun seems to be addressing these market assessments head-on with aggressive growth targets. As of Q3 2024, KakaoBank's assets stood at KRW 60.2 trillion (USD 43.7 billion), with a return on equity (ROE) of 7.55%. The company aims to expand assets by KRW 40 trillion (USD 29.0 billion) within three years and double its ROE to 15% by 2030, ambitious targets compared to South Korea's top four financial groups, which generally set ROE goals of over 10%. Additionally, KakaoBank has set high goals for shareholder returns, planning to raise its shareholder return ratio to 50% between 2024 and 2026. The company announced it would allocate up to 50% of net profits to shareholder returns if its BIS (Bank for International Settlements) ratio exceeds the average of major commercial banks in the prior year. As of Q3 2024, KakaoBank's BIS ratio stood at 28.51%, far surpassing KB Kookmin Bank (18.18%), Shinhan Bank (18.25%), Hana Bank (17.64%), and Woori Bank (16.39%). KakaoBank began returning profits to shareholders in 2022, with a shareholder return ratio of 20% for both 2022 and 2023. During the announcement of the value enhancement plan, CEO Yun stated, "KakaoBank will optimize its revenue model through dominant platform traffic and partnerships while building core competencies via global market entry and M&A. We will also pursue innovations in customer experience, enhanced financial stability, and operational optimization through AI transformation." Born in 1971, Yun graduated from Shinseong High School in Anyang and Hanyang University with a degree in Business Administration. His career began at Daehan Fire Insurance and later included roles such as Head of Management Planning at Ergo Daum Direct and Vice President of Kakao's Mobile Bank Task Force Team (TFT). He has led KakaoBank as CEO since its launch in April 2017. Under his leadership, KakaoBank's revenue grew from KRW 375.5 billion (USD 272.7 million) in 2018 to KRW 2.494 trillion (USD 1.81 billion) in 2023. Operating profit turned positive in 2019 at KRW 13.2 billion (USD 9.6 million) and reached KRW 478.4 billion (USD 347.5 million) in 2023, surpassing the first-generation internet bank, K-Bank, in profitability by its third year. #KakaoBank #YunHoYoung #GrowthStrategy #FinancialPlatform #AssetExpansion #CustomerGrowth #AI #Fintech #MergersAndAcquisitions #ShareholderReturns
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- Kim Young-shub Reduces KT Labor Costs by KRW 600 Billion, Secures Funds for AI Business Transition by Next Year
- Kim Young-shub, CEO of KT Corporation, is expected to save KRW 600 billion (approximately USD 436 million) in labor costs at the headquarters next year through workforce reductions, including transfers to subsidiaries and voluntary retirements. Alongside savings from marketing cost reductions and other operational efficiencies, these funds are anticipated to fuel KT’s large-scale investment in AI business transformation. KT has already reassigned or approved voluntary retirements for around 4,500 employees out of its 19,000 headquarters staff. The company plans further reductions through organizational restructuring this week, as it shifts its focus from telecommunications to AI service operations. Labor costs have long been a burden for KT, which employs more staff than its competitors. As of mid-2024, KT had 19,284 employees, accounting for 54% of the combined 35,652 employees of Korea’s three major telecom companies (SK Telecom, KT, and LG Uplus). In comparison, SK Telecom employed 5,741 and LG Uplus employed 10,627. KT recently reported 1,483 employees transferring to its KT Netcore subsidiary and 240 to KT P&M, while 2,800 employees applied for voluntary retirement. If all these changes are implemented, KT’s workforce would fall below 15,000, a 23% reduction. This restructuring is projected to yield KRW 600 billion (USD 436 million) in headquarters labor cost savings in 2025, with additional reductions across the organization contributing KRW 350 billion (USD 255 million). KT plans to leverage these savings for AI business investments. The company’s physical division of its network business is expected to increase headquarters operating profit and secure stable annual dividends of up to KRW 650 billion (USD 472 million). KT is also reducing its capital expenditures and marketing costs, further strengthening its financial position. In 2022, KT’s annual marketing expenses totaled KRW 2.54 trillion (USD 1.85 billion), but the company has curtailed spending, particularly in the second half of 2023. By Q3, cumulative marketing costs reached KRW 1.97 trillion (USD 1.44 billion), with year-end projections suggesting a slight decrease compared to the previous year. Analysts attribute these reductions to the increasing use of AI in marketing optimization. KT has announced a KRW 2.4 trillion (USD 1.75 billion) AI business investment over the next five years in collaboration with Microsoft. The partnership aims to accelerate the launch of an AI agent tailored for the Korean market. KT AI Tech Lab executive Yoon Kyung-ah stated during an interview at the 2024 MS Ignite event in the U.S. that the AI agent service is slated for release in 2024. Industry analysts predict KT will experience the most significant growth among Korea’s major telecom companies by 2025. Hana Securities researcher Kim Hong-sik forecasts a sharp increase in both consolidated and headquarters operating profits for KT, driven by cost reductions and AI-driven revenue growth. In contrast, SK Telecom, despite robust performance in 2023, is expected to see stagnant growth in 2024, barring significant cost-cutting measures. LG Uplus is projected to face declining operating profit starting in Q4 2023 due to marketing cost stabilization and depreciation. KT’s focus on new AI-driven businesses, including AI contact centers (AICC), Internet of Things (IoT), and cloud services, positions the company as a leader in integrating AI technologies into its operations. An industry insider remarked, "KT is maintaining a strong profit structure, and its new AI business ventures are likely to drive sustained growth." #KT #KimYoungShub #AITransformation #LaborCostSavings #WorkforceRestructuring #TelecomIndustry #MicrosoftCollaboration #AIInvestment #AIContactCenters #IoT #CloudComputing
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- Lee Jae-myung Acquitted, Gaining Respite to Pressure Ruling Party
- Lee Jae-myung, leader of the Democratic Party of Korea, was acquitted on November 25 in the first trial for perjury instigation, which had been regarded as the second major hurdle in his legal challenges this month. This ruling gives Lee a chance to stabilize the Democratic Party, which had been seen as unsettled following his guilty verdict on November 15 for violating the Public Official Election Act, and to strengthen his stance against the ruling bloc. The 33rd Criminal Agreement Division of the Seoul Central District Court, presided over by Judge Kim Dong-hyun, acquitted Lee Jae-myung of charges related to perjury instigation. The case revolved around allegations that in December 2018, Lee called Kim Jin-sung, a former aide to the late Seongnam Mayor Kim Byung-ryang, and asked him to testify falsely. Lee, during his time as a lawyer, was convicted of impersonating a prosecutor during an investigation involving a KBS reporter and the “Bundang Park View Preferential Sale Case.” In 2004, the Supreme Court fined him KRW 1.5 million (approximately USD 1,082). However, after running for Gyeonggi Governor, Lee reportedly claimed he had been falsely accused in the prosecutor impersonation case. Prosecutors alleged that he requested Kim Jin-sung to provide false testimony in connection with the ensuing trial under the Public Official Election Act. The court ruled that Lee’s request did not exceed "normal bounds" and found no evidence to prove intent to incite perjury. The court stated, "At the time of the call, it was unclear whether Kim Jin-sung would testify or what exactly he would say," adding, "There is insufficient evidence to suggest that Lee was aware that the testimonies would be false." It concluded, “The evidence provided by the prosecution does not sufficiently demonstrate intent on Lee’s part to induce perjury.” This ruling is expected to temporarily solidify Lee’s position as a leader within the party and as a strong contender for the next presidential election. Had he received a prison sentence in the perjury trial, coupled with his prior conviction, his political future and eligibility for candidacy in the next presidential race could have been in serious jeopardy. Upon hearing the verdict, Democratic Party members such as Park Ji-won, Seo Young-kyo, Park Ju-min, Jin Sung-joon, Kim Yong-min, and Kim Hyun welcomed the outcome, emphasizing unity and their resolve to confront the ruling party. Park Ji-won, a five-term senior lawmaker, expressed joy on Facebook, stating, "This is excellent news. Overcoming these trials will make Lee Jae-myung a leader of the people and the Democratic Party a governing force." He called for unity under Lee’s leadership to fight and hold the Yoon Seok-yeol administration accountable. Political analysts noted the significance of this verdict in reinforcing Lee’s claim that the prosecution’s actions were politically motivated. Kim Byung-joo, a Democratic Party senior member, commented on social media that the verdict demonstrated that “the political prosecution under the Yoon Seok-yeol government cannot fabricate crimes against opponents.” Meanwhile, the People Power Party (PPP) expressed unease over the verdict. PPP leader Han Dong-hoon remarked on Facebook, “It’s hard to accept the logic that only the perjurer is guilty while the instigator is acquitted.” PPP floor leader Chu Kyung-ho also stated, “We respect the judiciary’s decision, but it’s disappointing.” Many observers had anticipated a guilty verdict for Lee in the perjury case, making his acquittal surprising. This development could bolster the perception among Democratic Party supporters that prior rulings against Lee were unjust, thereby strengthening internal solidarity. Gong Jin-sung, a professor of political science at Chosun University, remarked on KBS Radio, “The acquittal could intensify doubts about the fairness of previous rulings, particularly the Public Official Election Act verdict, galvanizing Democratic Party supporters to maintain unity.” Democratic Party lawmaker Park Soo-hyun also stressed on CBS Radio that Lee remains the only viable presidential candidate for the party, saying, "The public and party members have already reached a consensus." The Democratic Party plans to press forward with its legislative and investigative agenda in the National Assembly. It intends to re-vote on the Kim Kun-hee Special Prosecutor Act if President Yoon vetoes it during the November 26 Cabinet meeting. Additionally, it aims to amend parliamentary rules to facilitate independent investigations into cases such as the “Customs Office Drug Probe Suppression” and “Sambu Construction Stock Manipulation” allegations. The party also plans to proceed with impeachment votes against prosecutors involved in controversial cases, including Lee Chang-soo, the chief prosecutor at the Seoul Central District Prosecutor’s Office, who decided not to indict First Lady Kim Kun-hee over stock manipulation allegations. Suh Yong-joo, director of Mac Politics and Society Research Institute, commented on MBC News that had Lee been convicted, the Democratic Party might have been significantly weakened. However, the acquittal counterbalances the prior guilty verdict and reduces the likelihood of the PPP maintaining momentum for its initiatives. Despite the favorable outcome, Lee shifted focus to public welfare rather than escalating political confrontations. Following the verdict, he stated, “The hardships I face are insignificant compared to the suffering of our citizens. I will continue to dedicate myself to improving their lives.” #LeeJaeMyung #DemocraticParty #PerjuryCase #KoreanPolitics #PublicElectionAct #CourtVerdict #KoreaNews #YoonSeokYeol #SpecialProsecutorAct #KoreanJudiciary
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- Prosecution Seeks 5-Year Sentence for Lee Jae-yong in Samsung C&T-Cheil Industries Merger Appeal
- Prosecutors have sought a five-year prison sentence for Lee Jae-yong, Chairman of Samsung Electronics, over allegations of orchestrating an unfair merger between Samsung C&T and Cheil Industries to secure his succession in group management. During the appeals trial held at the Seoul High Court in Seocho District, Seoul, on the 25th, prosecutors requested a five-year prison sentence and a fine of KRW 500 million (approximately USD 360,700) for Chairman Lee. The prosecution argued, "What the defendant has damaged are the constitutional values that underpin the justice of our economy and the foundation of the capital market." They claimed that during the merger process, when shareholder opposition rendered the deal uncertain, Lee and his associates misled shareholders by presenting the merger as being in the national interest. They further emphasized, "The ruling on this case will serve as a benchmark for corporate restructuring and accounting practices in conglomerates. If absolution is granted, controlling shareholders will feel no hesitation in using illegal and expedient methods to pursue mergers that align with their interests." Lee was indicted in September 2020 for allegedly engaging in illegal activities during the 2015 merger between Samsung C&T and Cheil Industries. He faced accusations of unfairly intervening in the merger process, including artificially inflating the stock price of Cheil Industries and deflating that of Samsung C&T to strengthen his control over the Samsung Group. In the first trial in February of this year, the court ruled that the merger was not solely intended for Lee's succession or strengthening his control, deeming it not wholly unfair and acquitting him. However, prosecutors appealed the decision, challenging the initial ruling. #Samsung #LeeJaeyong #SamsungC&T #CheilIndustries #courtcase #merger #SouthKorea #businessethics #appealtrial #conglomerates
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- Fourth-Generation Leadership at GS Retail Begins: Huh Yeon-soo Steps Down, Huh Seo-hong Likely New CEO
- Huh Seo-hong, Vice President and Head of Strategy SU at GS Retail, is expected to take over as CEO, becoming the fourth-generation owner representative of the GS family. According to industry sources on the 25th, GS Group plans to announce its regular executive appointments on the 27th. It is reported that Huh Yeon-soo, Vice Chairman and current CEO of GS Retail, will step down, with Vice President Huh Seo-hong being considered as his successor. Huh Yeon-soo joined GS Retail (then LG Distribution) in 2003 as part of the New Store Planning team. He became CEO in late 2015 and was promoted to Vice Chairman in 2019. Huh Seo-hong, the eldest son of Huh Kwang-soo, Chairman of Samyang International, and a cousin of Huh Tae-soo, Chairman of GS Group, entered GS Energy in 2012 as Manager of the LNG Business Team. He has since held key roles, including Executive Director of the Power and District Energy Division, Managing Director of the Management Support Division at GS Energy, and Senior Managing Director of GS Future Business Team. In last year’s executive appointments, he was named Vice President and Head of Strategy SU at GS Retail. As Strategy SU Head, Huh Seo-hong has been responsible for management support and new business initiatives. This year, he also became a non-executive director of Yogiyo, the delivery app operator under Widetable Imaginations, and of food-commerce company Cookat. A GS Retail representative stated, "Details will be confirmed once the regular executive appointments are officially announced on the 27th." #HuhSeohong #GSRetail #leadershipchange #GSGroup #HuhYeonsoo #executiveappointment #strategy #newbusiness #retailindustry #corporateleadership
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- Song Young-rok’s Dollar Insurance Strategy Succeeds: Strong Dollar Brightens Prospects for Rebound
- Song Young-rok, CEO of MetLife Insurance Korea, is anticipated to benefit from the strong dollar following Donald Trump’s victory in the U.S. presidential election. As the KRW/USD exchange rate rises to around 1,400, consumers are increasingly showing interest in dollar-based financial products such as dollar-denominated bonds, deposits, and insurance policies. MetLife Insurance, leveraging the dollar product management expertise of its New York headquarters, has been focusing on dollar insurance as a key product. CEO Song is strengthening the company’s lineup of dollar insurance products to prepare for the strong dollar era. According to the financial industry on the 25th, dollar insurance sales through bancassurance channels at the four major domestic banks (KB Kookmin, Shinhan, Hana, Woori) reached KRW 761.7 billion (approximately USD 549 million) in the first three quarters of this year, surpassing the 2023 total of KRW 567.9 billion (approximately USD 409 million). This trend is attributed to increased consumer interest in "forex tech" opportunities to gain foreign exchange profits amid the strong dollar. The KRW/USD exchange rate, which hovered around the low 1,300s earlier this year, has remained at approximately 1,400 since Donald Trump was elected as the next U.S. president on November 6. Dollar insurance refers to policies in which premiums, benefits, and surrender values are all transacted in U.S. dollars. Policyholders may realize foreign exchange gains if the exchange rate rises by the time benefits are paid. An increase in dollar insurance sales is expected to boost MetLife Insurance Korea’s performance. Known as a "traditional strong player" in the dollar insurance market, MetLife Insurance Korea is well-positioned to leverage its market dominance and expertise to secure profits. Currently, the domestic insurers offering dollar insurance are limited to MetLife Insurance, AIA Life, and KB Life. Most insurers previously offering dollar insurance withdrew from the market following declining demand and stricter regulations introduced in July 2022. Thanks to its U.S.-based parent company, MetLife Insurance has maintained its strong presence in the dollar insurance market. In fact, dollar insurance accounted for over 30% of MetLife Insurance Korea’s first-year premiums until 2021. However, declining demand due to falling exchange rates caused a gradual decrease in both the sales proportion and revenue from dollar insurance. MetLife Insurance Korea’s net income, calculated under the new IFRS17 accounting standard, dropped by 27.8%, from KRW 517 billion (approximately USD 373 million) in 2022 to KRW 373.5 billion (approximately USD 270 million) in 2023. The company reported a net loss of KRW 32.8 billion (approximately USD 23.7 million) in the first quarter of this year. While it returned to profitability with KRW 5.6 billion (approximately USD 4 million) in net income for the second quarter, this represents a 96.2% decline compared to the same period in 2023. As a financial expert and accountant by training, CEO Song is seeking to leverage the company’s strengths and product offerings to improve profitability. Song joined MetLife Insurance Korea in 2007 as Director of Financial Controller. He later served as Executive Director of Finance, CFO, and was appointed CEO in September 2018. At the company’s 35th-anniversary celebration in June, Song stated, “Within five years, I aim to ensure that all key indicators place MetLife among the top five life insurers in Korea, and that the public recognizes us as one of the nation’s top five life insurance companies.” To achieve this, he has laid out a strategy to expand the insurance portfolio, focusing on flagship products like dollar insurance and variable insurance to close the gap with leading insurers. MetLife Insurance Korea launched five new dollar insurance products this year, including dollar annuities and the “Everyone’s Dollar Whole Life Insurance,” in August. In a press release announcing the new products, Song remarked, “The launch of these differentiated new products marks the beginning of our journey to establish MetLife as one of the top five life insurance companies in Korea.” One challenge remaining for Song is addressing the high risk of misselling often associated with dollar insurance. Dollar insurance, which may appear similar to investment products offering foreign exchange gains, can lead to consumer misunderstandings as an immediate “forex tech” tool. Clear explanations are required during the sales process to distinguish dollar insurance as a long-term product, highlighting the risks of potential foreign exchange losses. MetLife Insurance Korea has focused on reducing misselling risks by operating a specialized in-house sales channel staffed by skilled agents. A MetLife Insurance Korea representative stated, “By offering a variety of dollar insurance products, we are expanding options for consumers. With our flagship dollar and variable insurance products, which are complex by nature, we continue to emphasize the importance of detailed explanations through a professional, exclusive sales channel.” #MetLifeInsurance #SongYoungRok #dollarinsurance #forextech #strongdollar #KoreanLifeInsurance #variableinsurance #bancassurance #newproducts #insuranceportfolio
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- Will the next Woori Bank president drive reform and shift Lim Jong-ryong's "business-centric" focus?
- The next president of Woori Bank is expected to be revealed this week. The financial sector is watching closely to see if the traditional alternation of presidents from Hanil Bank and Commercial Bank, which form Woori Bank’s roots, will continue. There is also interest in whether the strategic direction of "holding company focuses on strategy, subsidiaries on business," introduced by Woori Financial Group Chairman Lim Jong-ryong after his inauguration last year, will persist. On the 25th, according to sources within the banking industry, with the likelihood of the reappointment of President Cho Byeong-kyu effectively ruled out, the dominant view is that "innovation" will be the key theme for selecting the new Woori Bank president. Woori Financial Group has come under close scrutiny from regulatory authorities due to multiple financial scandals, including improper loans linked to former Chairman Sohn Tae-seung. President Cho Byeong-kyu was recently named a suspect in a prosecution investigation, while an arrest warrant has been requested for former Chairman Sohn Tae-seung, with a review scheduled for the 26th. Kim Byung-hwan, Chairman of the Financial Services Commission, expressed serious concern over the Woori Financial scandal during KBS's "Sunday Diagnosis" program, stating that they are monitoring the investigation and will take stern action if necessary. The Financial Supervisory Service (FSS) has also extended Woori Financial and Woori Bank’s regular inspections by another week, increasing the pressure. This inspection was already brought forward by about a year, and this marks the second time the inspection period has been extended, underscoring its significance. The financial community has been keenly observing whether the alternation of presidents between Hanil Bank and Commercial Bank alumni will continue. Woori Bank traces its roots to Hanil Bank and Commercial Bank, which merged to form Hanbit Bank in 1999 after the Asian financial crisis. Despite the merger being over 25 years ago, factional conflicts persist, as acknowledged by Chairman Lim during a National Assembly audit in October. Presidents have alternated between alumni of the two banks ever since. This pattern of alternation has continued even after privatization in 2016, with Lee Kwang-goo (Commercial), Sohn Tae-seung (Hanil), Kwon Kwang-seok (Commercial), Lee Won-deok (Hanil), and Cho Byeong-kyu (Commercial) serving sequentially. Since his inauguration last year, Chairman Lim Jong-ryong has attempted to break away from this tradition. He introduced an "audition" system to increase objectivity in the selection of presidents, previously determined solely through internal discussions within the subsidiary CEO nomination committee. While President Cho, an alumnus of Commercial Bank, emerged from a 64-day audition process, this move was seen as signaling a shift from factional conflicts to performance-based evaluations under Chairman Lim’s leadership. However, there have been criticisms that Chairman Lim’s alma mater, Yonsei University, has gained undue prominence during this process. Key Yonsei University alumni within Woori Financial Group and Woori Bank include Vice President Lee Sung-wook (Finance, Woori Financial’s longest-serving executive), Vice President Jang Kwang-ik (Brand, Economics), Senior Managing Director Lee Hae-kwang (Management Support, Economics), Woori Bank’s Kim Geon-ho (Capital Markets, Business Administration), and Ryu Hyeong-jin (Global, French). Given ongoing market skepticism about Woori Bank's reforms, Chairman Lim may need to devise new strategies that move beyond the "Hanil vs. Commercial" and "Yonsei University" frames. There is also speculation about potential changes to Chairman Lim’s strategy emphasizing subsidiary-driven operations. Unlike the early days of his tenure, the current environment of declining base interest rates makes it challenging to pursue an expansion-focused banking strategy. As Woori Financial pushes to launch a securities company and acquire a life insurance company this year, robust internal management has become more critical than ever to align with government value-up plans. While President Cho was selected for his strong business capabilities, his successor may need to prioritize internal controls and risk management capabilities to address financial scandals and market changes. Potential candidates for the next president of Woori Bank include Vice President Park Jang-geun (Risk Management Division, concurrently Vice President of Bank Risk Management Group), Vice President Yoo Do-hyun (Management Planning Group), Vice President Jeong Jin-wan (SME Group), Kang Shin-kuk (CEO of Woori PE Asset Management), Lee Seok-tae (CEO of Woori Financial Savings Bank), and Park Wan-sik (CEO of Woori Card). If Vice President Park Jang-geun or Yoo Do-hyun is chosen, it could signal a shift towards focusing on "management." Park has extensive experience in risk management, while Yoo has held key roles in strategic planning and served as London branch manager but lacks domestic branch experience. On the other hand, if Jeong Jin-wan, Kang Shin-kuk, Lee Seok-tae, or Park Wan-sik is selected, it could indicate an intent to maintain a focus on subsidiary business operations. Unlike last year, Woori Bank has kept its candidate pool strictly confidential, raising the possibility of an unexpected external appointment aimed at driving change and strengthening management. If such a move materializes, it would suggest a prioritization of transformation and management over operations. Regardless of Chairman Lim’s decision, the new president is likely to serve a one-year term aligned with his tenure, which ends in March 2026. President Cho’s term concludes at the end of December. With Woori Bank expected to announce the new candidate this week, a formal announcement may come after the 28th. This timing reflects the need to heed regulatory signals, as Financial Supervisory Service (FSS) Governor Lee Bok-hyun is scheduled to meet the chairs of financial holding companies on the 28th. A Woori Financial representative stated, “Woori Bank has traditionally selected a final candidate one month before the end of the incumbent president’s term for a smooth transition,” adding, “The candidate pool remains confidential as it is subject to internal board discussions.”
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- CJ Group Lee Jae-hyun Holds Management Meeting After Executive Appointments: "Chance for Global Leap"
- Lee Jae-hyun, Chairman of CJ Group, convened CEOs of major affiliates, urging them to respond to changes in domestic and international environments and strengthen competitiveness. On the 25th, CJ Group announced that the "Group CEO Management Meeting" was held on November 20 at the CJ Human Resources Institute in Jung-gu, Seoul, attended by Chairman Lee Jae-hyun and CEOs from major affiliates. The meeting was held just two days after the regular executive appointments on the 18th. Key attendees included Kim Hong-gi, CEO of CJ Management, Huh Min-hoi, CEO of CJ Support, Kang Shin-ho, CEO of CJ CheilJedang, Shin Young-soo, CEO of CJ Logistics, Lee Sun-jung, CEO of CJ Olive Young, and Yoon Sang-hyun, CEO of CJ ENM. The management meeting took place amidst the group's ongoing business restructuring. It is believed that Chairman Lee expedited the meeting to enhance responses not only at the group level but also within each affiliate. CJ CheilJedang, the group’s flagship affiliate, is pursuing the sale of its bio-business division, with its corporate valuation estimated at around 6 trillion KRW in the investment banking sector. The potential sale of subsidiaries such as Selecta, specializing in food ingredients, and CJ Feed & Care, focusing on livestock and feed, is also being discussed. The industry anticipates that CJ Group will use the proceeds from these sales to pursue mergers and acquisitions (M&A) aimed at global business expansion. During the meeting, presentations and discussions were held on topics such as △Global economic outlook and U.S. policy directions under the new administration, △Projections for Korea's economy in 2025, and △Key industry trends. Chairman Lee highlighted "competitiveness growth" as the central theme. He emphasized, "With global growth opportunities open, we must deeply consider not only short-term performance but also future growth potential. Innovations in domestic businesses, including digital transformation and new product development, should not be neglected." He called for proactive responses to global and domestic trends, such as climate change, hyper-aging societies, and polarization, emphasizing the need to seize opportunities from the globally expanding "K-Trends." Chairman Lee added, "Global cultural trends such as K-food, K-content, and K-pop are increasing interest in Korea. Approach this as the last opportunity for the group to rise as a global enterprise." He also reiterated the importance of talent acquisition in achieving this vision. CJ Group recruited hundreds of new employees this year through open recruitment rounds in the first and second halves. During the recent executive reshuffle, the group maintained its strategy of selecting young talent, appointing 12 executives born in the 1980s and promoting its first CEO born in the 1990s. A CJ official remarked, "Amid increasing global uncertainties, this meeting served to forecast changes in domestic and international business environments, assess the group’s business capabilities, and evaluate growth drivers. The group reaffirmed its determination to lead K-Trends and rise as a leading global company, leveraging the cultural business strengths it has built." #CJGroup #LeeJaehyun #ManagementMeeting #CompetitivenessGrowth #BusinessRestructuring #BioBusinessSale #GlobalExpansion #MergersAndAcquisitions #KTrends #DigitalTransformation #TalentAcquisition #CulturalStrength #KFood #KContent #KPop #DomesticInnovation #ClimateChange #HyperAgingSociety #Polarization #FutureGrowth
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- CJ Group’s Lee Jay-hyun Restarts 'Investment DNA,' Accelerates ‘Season 2’ for Global Leadership
- Lee Jay-hyun, Chairman of CJ Group, is making bold consecutive investments to secure a leading position for the group’s affiliates in their global businesses. Although Chairman Lee is known for his quiet management style compared to other major corporate leaders, he has shown exceptional decisiveness when it comes to investments. The overseas business foundation currently established by CJ Group can largely be attributed to these bold investments. There is speculation that Chairman Lee will once again demonstrate his decisive nature to elevate CJ Group to the next level as a global leader based on its existing international business foundation. According to insiders and affiliates of CJ Group on the 22nd, the group’s major subsidiaries have recently accelerated efforts to expand their businesses targeting overseas markets. The food affiliate, CJ CheilJedang, is working to strengthen its market presence in Europe and the United States by expanding production facilities. In Hungary, a factory site has been finalized in Dunavarsány, near Budapest, and construction planning is underway. Built on a site the size of 16 soccer fields (115,000㎡), the factory will begin producing 'Bibigo Mandu' in the second half of 2026 for supply to the European market. Plans are also in place to add a production line for Bibigo Chicken in the future. In the U.S., its frozen food subsidiary, Schwan’s, has begun constructing a "North American Asian Food Plant" in Sioux Falls, South Dakota, targeting completion in 2027. The plant, built on a site equivalent to 80 soccer fields (575,000㎡), will include production lines for steamed dumplings and egg rolls, as well as wastewater treatment facilities and a logistics center. It is expected to become the largest manufacturing facility for Asian food in North America. The investments for the new factories in Hungary and the U.S. are estimated at 'KRW 100 billion' (US$ 72.1 million) and 'KRW 700 billion' (US$ 504.7 million), respectively. The logistics affiliate, CJ Logistics, is also speeding up efforts to expand its global logistics capabilities. In the U.S., a key business market, the company recently began full-scale operations at a 25,000㎡ cold chain logistics center in Gainesville, Georgia, and is constructing another 27,000㎡ cold chain logistics center in New Century, Kansas. Beyond the U.S., the company is also expanding its operations into India, Southeast Asia, and the Middle East. CJ Olive Young, the group’s domestic leader in cosmetics retail, is intensifying efforts to expand its reach to overseas consumers. The 'Olive Young N Seongsu,' which opened on the 22nd, reflects CJ Olive Young’s ambition to transition from a domestic powerhouse to a global cosmetics distribution platform. Designed as an experiential space rather than a mere retail store, it aims to become an attractive destination for foreign visitors to Korea. The store features multilingual signage, foreign-language-capable staff, and electronic labels displaying product names in English. With five floors and a total area of approximately 4,628㎡ (1,400 pyeong), the Olive Young N Seongsu store is nine times larger than the average specialty Olive Young Town stores. It employs 240 staff members. Despite the significant resources and effort invested in the store’s creation, the focus on customer experience over immediate sales suggests an intent to expand the customer journey as part of its strategy to become a global platform. CJ Olive Young is employing an online-offline integration strategy, aiming to connect in-store experiences for foreigners with repeat purchases through its online mall. These global expansion efforts by CJ Group affiliates are seen as reflective of Chairman Lee Jay-hyun’s management philosophy. Chairman Lee previously presented CJ Group’s long-term vision, "World Best 2030." This vision aims to achieve global leadership in at least three business sectors by 2030 and ultimately become the world’s best in all areas of business. Given Chairman Lee’s track record, there is speculation that he may pursue aggressive investments beyond expectations to achieve this goal of making CJ Group a global leader. Chairman Lee’s bold bets have played a pivotal role in CJ Group’s growth to its current scale as it entered new business sectors. The history of Chairman Lee’s investments can be divided into two phases in CJ Group’s growth. The first phase, from its separation from Samsung Group to around 2010, focused on establishing the current business structure. The second phase, following his return to management in 2017, has concentrated on advancing CJ Group into a global company. During the first phase, Chairman Lee diversified the business structure, which had been centered on food, into cultural and logistics sectors. In 1997, he established CJ Entertainment (the predecessor of CJ ENM’s Film Business Division), initiating a film distribution business. He expanded into movie theaters, home shopping, and entertainment by either founding new companies or pursuing mergers and acquisitions. A bold move during this period was the 2011 acquisition of Korea Express (now CJ Logistics) to strengthen logistics capabilities. At the time, both POSCO Group and Lotte Group were vying to acquire Korea Express. Chairman Lee presented a purchase offer exceeding 'KRW 200,000 per share' (US$ 144.3 per share), KRW 100,000 higher than that of the competing POSCO-Samsung SDS consortium. The total investment amounted to 'KRW 1.8 trillion' (US$ 1.3 billion). This decisive move established CJ Logistics as the leading player in Korea’s logistics market and a significant force globally, marking a major turning point in CJ Group’s history. Since his return to management in 2017, Chairman Lee’s investments have focused on expanding global businesses. A prime example is the acquisition of Schwan’s, completed in 2019 by CJ CheilJedang. The acquisition cost approximately 'USD 1.84 billion' (KRW 2.544 trillion), making it the largest M&A deal in CJ Group’s history. Schwan’s, which was then the second-largest player in the U.S. frozen pizza market after Nestlé, had an extensive logistics network and distribution infrastructure across the U.S., providing a solid foundation for CJ CheilJedang to expand its food business in North America. Schwan’s has since risen to the top of the U.S. frozen pizza market, and Bibigo product sales have grown significantly through Schwan’s production facilities and distribution network. Additionally, CJ Group has established a foundation for global expansion by acquiring food, logistics, and content companies worldwide and building overseas bases. Now that the foundation for global expansion is in place, Chairman Lee is accelerating large-scale investments to achieve his vision of making CJ Group a global leader. As CJ Group prepares to secure cash through business rebalancing, the scale of its investments is expected to reach record levels. CJ Group is pursuing the sale of CJ CheilJedang’s bio business unit, with its enterprise value estimated at around 'KRW 6 trillion' (US$ 4.3 billion). This would provide CJ Group with investment capacity exceeding that of the Schwan’s acquisition. Moreover, there is speculation about the potential sale of CJ CheilJedang’s food ingredient subsidiary Selecta and its livestock and feed subsidiary CJ Feed & Care. CJ CheilJedang has confirmed the plan to sell Selecta, while it remains reserved on CJ Feed & Care, stating that it is “reviewing various options.” Depending on the sale of these subsidiaries, CJ Group’s investment capacity could increase further. The securities industry predicts that Chairman Lee is likely to focus investments on strengthening competitiveness in the rapidly growing European food market. Cho Sang-hoon, a researcher at Shinhan Investment Corp., stated, “If CJ Group sells its bio business unit, the proceeds are likely to be used for mergers and acquisitions to enhance its competitiveness in the European market. The European market has emerged as a key focus during CJ Group’s global expansion efforts post-COVID-19.” He added, “While CJ CheilJedang’s M&A strategy in 2020 focused on business diversification, it has since shifted toward strengthening the global competitiveness of core businesses.” #LeeJayhyun #CJGroup #globalexpansion #Bibigo #Schwans #CJCheilJedang #CJE&M #CJLogistics #investmentstrategy #Europeanmarket
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- Chey Tae-won Stresses 'Design Thinking' at Tokyo Forum: "Adapt to Change While Designing Business"
- Chey Tae-won, Chairman of SK Group, emphasized "design thinking" as a solution to global business challenges. In his opening speech at the "Tokyo Forum 2024" held at the University of Tokyo on the 22nd, Chey stated, “Most people think design is different from business, but the characteristic of creating one’s unique business with available resources is fundamentally the same.” The Tokyo Forum has been co-hosted annually by the Chey Institute for Advanced Studies and the University of Tokyo since 2019. This year, the event, under the theme "Designing the Future, Crafting Tomorrow," is being held over two days on the 22nd and 23rd. Tokyo Forum 2023 was held under the theme "Fostering Humanity in an Era of Social Division and Digital Transformation." In 2022, former United Nations Secretary-General Ban Ki-moon delivered a keynote speech. The Chey Institute for Advanced Studies was established in 2018 to commemorate the 20th anniversary of the late SK Honorary Chairman Chey Jong-hyun. It serves as a global knowledge exchange platform that analyzes and formulates strategies to address the challenges and opportunities brought by geopolitical risks and scientific and technological innovation. Chey Tae-won stated that design thinking should also be applied to corporate management. He explained, “CEOs must become designers who allocate limited resources efficiently to meet customer needs, create value, and run the best businesses.” Modern society is undergoing rapid changes, and business leaders must design their operations while adapting to these changes. He also shared how SK Group has utilized design thinking in its history and in shaping its overall business portfolio. “SK Group has a history of over 70 years, expanding its business from textiles to petroleum, telecommunications, and innovating its portfolio with semiconductors and artificial intelligence (AI),” Chey said. “Design thinking has been the foundation for allocating limited resources and embracing new challenges.” He added, “We have always faced significant challenges when adding and adopting new fields of business but have successfully managed operations and created synergies. Design thinking is necessary even in complex businesses like AI, which integrates all business areas to generate synergy.” He also highlighted that design thinking could be applied to solving social problems such as reducing carbon emissions and addressing social inequality. To encourage participation, he argued, goodwill alone is insufficient and incentives based on design thinking are necessary. “A newer, more creative approach is needed to build a sustainable future,” he said. He added, “This forum will also feature a youth session where university students from Korea and Japan will share new ideas. I will always listen to the ideas of the younger generation, who face new challenges and overcome the impossible.” Chey also participated as a panelist in the "Business Leader Session" held that day. He proposed the establishment of various incentive systems that enable companies to pursue not only economic value but also social value in addressing social problems. The Tokyo Forum 2024 featured presentations and panel discussions by academic and business experts, including Chey Tae-won, Kim Yoo-seok, President of the Chey Institute for Advanced Studies and the Korea Foundation for Advanced Studies, Teruo Fujii, President of the University of Tokyo, Yasuhiro Sato, Special Advisor to Mizuho Financial Group, and Daniel Novak, Director at the World Economic Forum. #CheyTaeWon #SKGroup #DesignThinking #TokyoForum2024 #SustainableFuture #CorporateInnovation #SocialValue #AIIntegration #BusinessLeadership #GeopoliticalRisks
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- Lotte’s Explanation Fails to Quell Liquidity Concerns, Financial Issues Could Worsen Next Year
- There is lingering skepticism in the market regarding Lotte Group's liquidity crisis controversy. Market observers generally agree that as the financial structures of Lotte Group's major affiliates become increasingly fragile due to declining cash flow capabilities, the issue of liquidity will likely resurface repeatedly. Some forecast that if Lotte Group fails to accelerate its efforts to improve its financial structure, it could face a more severe crisis next year. Due to the growing burden of borrowings, interest expenses are rising. If credit ratings are downgraded due to the weakened financial structure, Lotte Group's financial burden could increase further. As of November 22, an analysis of the securities industry and credit rating agencies’ forecasts shows that despite Lotte Group’s active explanations, lingering concerns about the liquidity crisis persist. Such opinions are particularly prevalent among credit rating agencies. Oh Yoon-jae, a senior researcher at Korea Ratings, commented, “Key affiliates of the group, including Lotte Holdings, Lotte Chemical, and Lotte Shopping, announced on November 18 that the rumors of a liquidity crisis were unfounded. However, they have not presented specific plans for business restructuring or financial structure improvements, nor demonstrated any progress.” Kim Seo-yeon, a senior researcher at NICE Credit Ratings, also highlighted Lotte Chemical’s financial structure, stating, “Considering its available liquidity, it is believed that the company can manage even large-scale early repayment demands on corporate bonds with internal funds. However, if the required amount becomes excessive, it could deplete its liquidity significantly, creating additional funding burdens. If the situation is not managed smoothly, the risk of a sharp rise in liquidity concerns remains.” This cautious stance suggests that credit rating agencies are maintaining a conservative perspective on Lotte Group, despite addressing the rumors about the group circulating in the market. Even though Lotte Group has actively attempted to quell the liquidity controversy through public disclosures and additional explanatory materials, market sentiment remains cold. While there is consensus that the rumors have been exaggerated, many still view Lotte Group’s financial structure as vulnerable. Examining the financial structure of Lotte Chemical, often cited as the source of the liquidity concerns, its consolidated debt ratio stood at 75.4% as of the end of the third quarter, up 34 percentage points from 41.4% at the end of 2020. Generally, a corporate debt ratio below 150% is considered stable. However, some analyses point out that the rapid decline in Lotte Chemical’s liquidity ratio signals alarming growth in its debt ratio. The liquidity ratio, which measures a company’s ability to repay short-term debts, is calculated by dividing current assets by current liabilities and multiplying by 100. A higher ratio indicates a healthier financial structure. Lotte Chemical’s liquidity ratio fell sharply from 239.8% in 2020 to 110.6% at the end of the third quarter. The fundamental reason for the deteriorating financial structure is poor performance. Lotte Chemical reported cumulative operating losses of KRW 1.1103 trillion (US$ 800.9 million) in 2022 and 2023. While its 2022 operating loss was half of the 2021 figure, raising hopes for improved profitability, the company recorded an operating loss of KRW 660 billion (US$ 476 million) through the third quarter of this year, worsening its situation. Securities firms continue to forecast that this year’s operating loss could approach the record-high losses of 2022. Even Lotte Shopping, despite relatively stable performance, appears to be struggling with a declining financial structure. As of the end of the second quarter, Lotte Shopping’s liquidity ratio was 49.9%, down 21.8 percentage points from the end of 2020. A liquidity ratio below 100% indicates that the company would struggle to repay short-term liabilities even if it sold all its current assets, signaling a warning for short-term liquidity. In fact, credit rating agencies consider liquidity ratios a key factor in determining credit ratings. A higher liquidity ratio typically indicates fewer liquidity problems, with a ratio of 150% or higher generally considered favorable. For Lotte Group, the critical issue is that if it cannot promptly address the financial warnings within its affiliates, it may face more significant problems next year. Major Lotte Group affiliates have already received "negative" credit rating outlooks from leading credit rating agencies as of the end of June. Failure to manage their financial structures could lead to visible credit rating downgrades next year. Several affiliates of Lotte Group are already struggling with rising interest costs. If credit ratings are lowered, the group would face higher interest rates when issuing corporate bonds, making it even more difficult to improve its financial structure. Lotte Group’s efforts to proactively address its liquidity crisis seem to be directly tied to these risk factors. Reports suggest that Lotte Group is considering selling Lotte Rental, its car rental business, to the market. It has reportedly selected a major investment bank as the sales manager. The market estimates the value of Lotte Rental at around KRW 1.5 trillion (US$ 1.08 billion). Considering the group acquired the business for approximately KRW 1.02 trillion (US$ 737 million) in 2015, there appears to be a significant market gain. However, some believe that the transaction may yield little net profit when factoring in acquisition-related costs and interest expenses. This has led to speculation that Lotte Group’s decision to sell non-core affiliates may reflect internal acknowledgment of its liquidity challenges. Rumors of Lotte Group’s liquidity crisis and potential risks have been recurring. Similar rumors circulated in the market three years ago, raising concerns over the group’s liquidity stability. #LotteGroup #LiquidityCrisis #FinancialStructure #LotteChemical #DebtRatio #CreditRatings #CorporateLiquidity #LotteRental #FinancialChallenges #KoreanConglomerates
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- Koo Kwang-mo Stresses 'Stability' in LG's Leadership Transition and Succession
- Koo Kwang-mo, Chairman of LG Group, emphasized "management stability" by minimizing executive reshuffles for 2025. This decision is interpreted as leveraging the experience and expertise of seasoned executives amid growing uncertainties in the global business environment. Simultaneously, Koo demonstrated his commitment to securing future competitiveness by appointing younger executives in their 50s to key leadership positions across affiliates. On the 21st, industry insiders concluded that LG Group’s 2025 regular executive appointments showed Chairman Koo choosing "stability" over "change." LG Group announced a much smaller-scale promotion than expected during its year-end executive reshuffle. Contrary to initial expectations, there were no promotions to vice chairman positions. Both Kwon Bong-seok, Vice Chairman and CEO of LG Corp., and Shin Hak-cheol, Vice Chairman and CEO of LG Chem, retained their positions, maintaining the "dual vice chairman" structure. Given the increasing uncertainty in the management environment, especially with the imminent start of the second Trump administration in the United States, the group appears to have approached potential changes in the vice chairman structure with caution. Promotions to president positions decreased to two, down from four last year, and the number of executive promotions dropped from 139 last year to 121 this year. However, the group partially introduced a generational shift by appointing executives in their 50s to key roles. Among the newly appointed presidents, Hong Bum-sik, CEO of LG Uplus (born 1968), and Hyun Shin-kyun, promoted to CEO of LG CNS (born 1965), are both in their 50s and are considered part of the next-generation leadership candidates for the group. Kim Young-rak, promoted to president and head of LG Electronics’ Korean Business Division (born 1966), also joined this trend. Likewise, Kim Dong-myung, CEO of LG Energy Solution (born 1969), and Moon Hyuk-soo, CEO of LG Innotek (born 1970), both appointed last year, are regarded as the "young blood" of the group. On the other hand, retained executives like Cho Joo-wan, CEO of LG Electronics (born 1962); Chung Chul-dong, CEO of LG Display (born 1961); and Lee Jung-ae, CEO of LG Household & Health Care (born 1963), are in their early 60s and are praised for demonstrating stable management capabilities based on extensive experience. The personnel decisions are seen as reflecting Chairman Koo’s determination to address global uncertainties while also pursuing new business opportunities by leveraging both experienced senior executives and dynamic young talent. Another notable feature of this reshuffle is the inclusion of external talent. Hong Bum-sik, the newly appointed CEO of LG Uplus, joined LG in 2019 after working at the global consulting firm Bain & Company. Unlike his predecessors—former CEOs Hwang Hyun-sik, Ha Hyun-hoe, and Vice Chairman Kwon Young-soo, who were all LG insiders—an external executive will now lead LG Uplus. An LG official explained, “This year, we recruited 10 external professionals with expertise to strengthen capabilities in various fields across LG and introduce fresh perspectives. Notably, LG Chem hired Go Yoon-joo, a former international relations ambassador for Jeju Special Self-Governing Province and a North American diplomacy expert, to enhance its ability to respond to geopolitical risks.” Chairman Koo appears intent on preparing for the future by granting significant independent authority to the executive team. LG Group has outlined a blueprint to invest KRW 100 trillion (approximately USD 72.1 billion) over the next five years in securing future technologies in AI, biotechnology, and cleantech—the so-called ABC growth sectors. To support this, the group aims to empower its executives to foster creativity and make responsible decisions. Chairman Koo has devoted himself to establishing an autonomous management system for each subsidiary, to the extent that he prefers to be called the CEO of LG Corp. rather than its chairman. This approach entrusts detailed decision-making to professional executives, while Koo focuses on setting the group’s future business direction. An LG official stated, “This executive reshuffle prioritizes thorough preparation for the future, centering on ABC sectors, and accelerates change by placing proven talent with demonstrated capabilities and results in key positions.” #KooKwangmo #LGGroup #ExecutiveAppointments #ManagementStability #GlobalEconomy #LeadershipTransition #YoungExecutives #CorporateStrategy #BusinessGrowth #NextGenerationLeadership
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- Following Kakao, Naver Forms Majority Union – Choi Soo-yeon Faces Backlash Over Labor Cost Efficiency
- The domestic information technology (IT) industry, once regarded as a "barren land for labor unions," is expected to witness a surge in union activities. Following the majority union status achieved at Kakao's headquarters last month, Naver has also surpassed a 50% union membership rate across its headquarters and six affiliated subsidiaries for the first time, marking a milestone in the industry. The emergence of a large majority union in the domestic IT sector is anticipated to influence labor-management negotiations and broader industry practices. According to the Naver branch of the Korean Confederation of Trade Unions' National Chemical Fiber Food Industry Union (Joint Declaration) on the 21st, the union membership rate at Naver's headquarters has exceeded the majority threshold. This marks the first time Naver's headquarters has surpassed a 50% membership rate since the union was established in April 2018, a milestone achieved after six years and seven months. The rate, which had hovered around 40%, surpassed 50% on the 19th of this month. Six entities within the Naver group, including its headquarters, N-Tech Service, Naver Webtoon, Naver Z, Snow, and Studio Rico, have all exceeded majority union membership. Historically, the IT sector has been viewed as an area with low union activity. The industry's characteristics, such as frequent employee turnover and a performance-oriented culture, have contributed to the traditionally low union membership rates. While majority unions have previously formed at Neople, Hancom, and Kakao Mobility, their scale was relatively small. However, following Kakao's union securing majority status last month, Naver's union has also surpassed the majority threshold, signaling a significant shift as large IT companies begin to see the rise of majority unions. The sharp increase in union membership at Naver is seen as a response to internal discontent, particularly regarding communication issues and the distribution of performance bonuses, even as the company continues to achieve record-breaking performance. Additionally, the management's emphasis on cost efficiency and labor cost control, led by Naver CEO Choi Soo-yeon and other executives, appears to have intensified employee dissatisfaction. Naver CFO Kim Nam-sun previously stated, "We have begun controlling labor costs to pre-COVID-19 levels." Despite the company's record-high performance this year, labor costs, including performance bonuses, have been significantly reduced. With Naver's union now achieving majority status, management is likely to remain on high alert. Majority unions have greater leverage to influence management decisions, including changes to employment rules, workforce adjustments, and working conditions. Once the majority status of the union is officially verified, the union gains the authority to appoint worker representatives in the labor-management council. Historically, the Korean Confederation of Trade Unions has been characterized as a strong union centered on the manufacturing sector. The emergence of large unions in the IT sector is drawing attention to how they will integrate into the larger organization. Currently, there is no dedicated industry-wide union for the IT sector within the Korean Confederation of Trade Unions, and IT company unions like those of Naver, Kakao, Nexon, and Netmarble have typically joined the chemical fiber union. As union power grows, Naver CEO Choi Soo-yeon faces the challenge of redefining labor-management relations. The Naver union has listed key demands, including improved working conditions, expanded employee benefits, and enhanced treatment. The union has also strongly protested the concentration of performance bonuses on management during Naver Webtoon's U.S. initial public offering (IPO), calling for a reevaluation of the bonus distribution system. Additionally, Naver's union is in the midst of wage and collective bargaining negotiations with 13 affiliated companies, most of which have been finalized. The only remaining negotiation is with IPX. An IT industry insider stated, "With Naver and Kakao's majority unions as a starting point, the influence of unions in the IT sector is expected to grow. The cases of these two companies are likely to have a significant impact on other IT company unions." #Naver #Kakao #ITUnions #LaborUnion #MajorityUnion #ITIndustry #EmployeeRights #LaborManagement #UnionInfluence #KoreanConfederationofTradeUnions
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- Shinhan Bank Reaffirms Global Leadership, Jung Sang-hyuk Expands Beyond Vietnam and Japan
- Shinhan Bank has once again demonstrated its strength as a leader in overseas operations. Its key markets in Vietnam and Japan showed steady performance, and other regions also delivered solid results, making Shinhan Bank the highest earner in net profit from overseas subsidiaries among commercial banks in the third quarter. President Jung Sang-hyuk is focusing on securing future hubs, including Kazakhstan and India, to sustain this momentum. According to the banking industry on October 21, Shinhan Bank reported the highest net profit from overseas subsidiaries among Korea's "Big Four" banks (KB, Shinhan, Hana, and Woori). Shinhan Bank's overseas subsidiaries achieved cumulative net profit of KRW 434.3 billion (approximately USD 313.2 million) for the third quarter, a 24% increase from the previous year. Shinhan Bank stated that, including revenue from overseas branches and other operations, total overseas earnings amounted to KRW 565.9 billion (approximately USD 407.9 million), setting a new record. This figure accounted for 18.2% of the bank’s total profit, approaching the 20% threshold. The main contributors to this performance were Shinhan Vietnam Bank and SBJ Bank in Japan, which posted net profits of KRW 207.6 billion (approximately USD 149.7 million) and KRW 106.9 billion (approximately USD 77.1 million), respectively. These figures represent year-on-year increases of 12.3% and 15.9%. Shinhan Indonesia Bank also turned profitable, recording KRW 14.3 billion (approximately USD 10.3 million) in net profit, while Shinhan Cambodia Bank’s net profit surged by 40% to reach KRW 12.6 billion (approximately USD 9.1 million). A Shinhan Bank representative explained, "Growth centered on Shinhan Vietnam Bank and SBJ Bank contributed significantly to interest income, and continuous efforts to improve asset quality in regions like Indonesia led to strong third-quarter results." Shinhan Bank's overseas subsidiaries have shown balanced growth, with Kazakhstan standing out in particular. Shinhan Kazakhstan Bank recorded KRW 75.3 billion (approximately USD 54.3 million) in net profit as of the third quarter, ranking third among Shinhan Bank's overseas subsidiaries. This marks a 68.6% year-on-year increase. Industry experts attribute this performance to the Ukraine-Russia war, which caused assets and customers to shift to Kazakhstan, given its shared border with Russia. Shinhan Bank's early entry into Kazakhstan in December 2008 as the first Korean bank to establish a subsidiary in the country is now bearing fruit. It remains the only Korean bank operating in Kazakhstan. President Jung Sang-hyuk is actively working to capitalize on this momentum and turn what might have been a one-time windfall into sustainable achievements. Kazakhstan is considered one of the most important Central Asian countries for Korea due to its significant trade volume with Korea. In June, President Jung was the only commercial bank CEO to join President Yoon Suk-yeol’s economic delegation to Kazakhstan, where Shinhan Bank signed two business agreements to expand its local operations. This year, Kazakhstan was also added to Shinhan Bank's global scholarship program alongside Vietnam and Cambodia, further strengthening its ties in the region. President Jung is expected to further expand Shinhan Bank's global business, aligning with Shinhan Financial Group Chairman Jin Ok-dong’s recent remarks on the bank's overseas expansion potential. On October 13, at a joint investment forum for the financial sector in Hong Kong, Chairman Jin stated, "In addition to Vietnam and Japan, we are considering Kazakhstan, Uzbekistan, and Poland. Kazakhstan has been challenging for 15 years, but this year we are seeing meaningful results." President Jung is also taking proactive steps to align with this direction. In April, Shinhan Bank invested approximately KRW 250 billion (approximately USD 180.3 million) to acquire a 10% stake in Credilla, India's leading student loan company. In Poland, where Shinhan opened its first banking office in 2014, the bank now has a resident branch manager to oversee its growing operations. Shinhan Bank’s rise as a leader in overseas operations is attributed to its patience and long-term commitment. Industry experts agree that overseas operations involve numerous variables and require a long-term perspective. Unlike Korea, where market dynamics are slowing due to an aging population and low birth rates, regions like Southeast Asia are considered lands of opportunity due to lower financial accessibility. However, establishing operations overseas often involves overcoming practical and cultural challenges, such as restrictions on hiring local staff or unforeseen regulatory issues. For instance, religious or cultural differences can pose significant hurdles. A senior banking executive commented, "Shinhan's success in Vietnam might seem impressive now, but the bank has been in the market for over 30 years. Success in overseas operations requires patience, and Shinhan Bank’s perseverance is now bearing fruit." #ShinhanBank #OverseasExpansion #Vietnam #Kazakhstan #JungSangHyuk #FinancialSuccess #GlobalBanking #EmergingMarkets #AsianFinance #BankingLeadership
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- SK ecoplant's New Growth Engine: Data Centers - Kim Hyung-keun Focuses on Integrated Solutions
- With the advent of the AI (artificial intelligence) era, the explosive demand for data centers is expected to continue for some time. Kim Hyung-keun, CEO of SK ecoplant, is actively working to secure one-stop integrated solutions related to data centers, moving beyond construction to address the growing demand and take the lead in the market. On the 21st, SK ecoplant reported that its transition to becoming a data center developer is yielding visible results, including large-scale data center construction projects. SK ecoplant is collaborating with Singapore-based digital platform company Digital Edge on the "Cheongcheon Data Center Project." SK ecoplant owns 49% of the project, while Digital Edge holds the remaining 51%. This project involves building a hyperscale data center with a capacity of 120 MW (megawatts), the largest in Korea, located in the National Industrial Complex in Bupyeong-gu, Incheon. Hyperscale typically refers to large-scale data centers capable of accommodating over 100,000 servers. The project is divided into two phases, with a combined construction cost of approximately KRW 1 trillion (USD 721.6 million). On September 20, SK ecoplant completed Phase 1 of the Cheongcheon Data Center. Phase 2 is set to begin next year. With the successful completion of Phase 1, SK ecoplant is being recognized for its transformation into a "data center developer." A developer is a total solutions provider responsible for everything from business development and design to procurement, construction (EPC), and operations, moving beyond simple construction. CEO Kim is attempting to differentiate SK ecoplant in the field of environmentally friendly (green) data centers to secure a competitive edge as a data center developer. "Green" is a key theme in SK ecoplant's data center business. In its quarterly report, SK ecoplant identified its ability to build green data centers as one of its competitive strengths in the housing and construction sectors. SK ecoplant stated, "As a green data center developer, we provide high energy efficiency and customized designs with lower total cost of ownership (TCO). We are striving to meet the demands of global operators and domestic clients through our proprietary data center modeling, solutions, and technologies, thereby strengthening our market presence." A core technology enabling SK ecoplant's green data centers is solid oxide fuel cells (SOFC). On September 4, at the Energy Expo held at BEXCO in Busan, SK ecoplant announced that it had successfully localized one of the key components of SOFC, the electrolyte's raw material and powder, in collaboration with Korea Hydro & Nuclear Power, Bloom Energy, Bloom SK Fuel Cell, and innovative domestic companies. The electrolyte, along with the cathode and anode, is a critical component of fuel cells. When hydrogen and oxygen combine in the cell, a chemical reaction produces ions, and the electrolyte facilitates their movement. SK ecoplant’s SOFC-related achievements extend beyond technological development to business applications. In September 2023, SK ecoplant signed a contract to supply SOFCs to Singaporean data centers owned by GDS, China's largest data center company. In August 2024, it successfully secured funding for its SOFC business in Jincheon, North Chungcheong Province. SK ecoplant plans to install a 330 kW (kilowatt) SOFC at the Cheongcheon Data Center, marking the first use of SOFC in a domestic data center, to serve as auxiliary power. Bloom Energy, a U.S. fuel cell company collaborating with SK ecoplant in the SOFC field, has also been expanding its contracts in Korea, Taiwan, and the U.S. Notably, on the 14th (local time), Bloom Energy signed a supply agreement with American Electric Power for up to 1 GW (gigawatt) of fuel cells, the largest commercial fuel cell procurement contract to date. SK ecoplant is more than a partner, holding approximately 10% of Bloom Energy shares through an investment of USD 566 million. Additionally, SK ecoplant has developed technology to reduce the electricity required for cooling data centers by using an absorption cooling system to harness the thermal energy produced during SOFC power generation. The absorption cooling system creates a vacuum-like pressure of 6.5 mmHg (millimeters of mercury), causing water to boil at just 5°C. The resulting evaporation acts as a coolant, making the surrounding area cooler. Cooling is essential for data centers, as 40–50% of total energy costs are attributed to electricity for cooling IT equipment. Distributed power supply solutions using SOFC and other fuel cells are gaining prominence within SK Group. SK Group Chairman Chey Tae-won directly highlighted the importance of these solutions. At the SK AI Summit on November 4, held at COEX in Seoul, Chairman Chey emphasized the need to maintain carbon neutrality while ensuring a stable supply of massive power for the development of industries based on AI semiconductors. He specifically mentioned SK ecoplant’s distributed power supply solutions as one of the key methods to achieve this. Beyond distributed power solutions, SK ecoplant is also active in waste recycling for data centers. SK TES, SK ecoplant's e-waste recycling subsidiary, opened a hyper-scale data center IT asset disposal (ITAD) facility in Fredericksburg, Virginia, USA, in March 2024. The Virginia facility, dedicated to data centers, can process up to 600,000 individual servers annually. CEO Kim Hyung-keun is also drawing attention for strengthening SK ecoplant’s semiconductor-related capabilities. Efficiently building data centers requires semiconductor-related technologies such as low-power DRAM. On November 1, SK ecoplant completed the acquisition of two subsidiaries, Essencore and SK Materials Airplus, which are pivotal to the semiconductor business. Essencore manufactures and sells memory products such as SSDs and SD cards using DRAM supplied by SK hynix, while SK Materials Airplus produces industrial gases used in semiconductor manufacturing. At the “2024 ConTech Meetup Day” held on November 8, three of the four awards for innovation were related to semiconductors, with the other in environmental technology, reflecting CEO Kim’s focus on advancing semiconductor technology. The awarded semiconductor technologies included producing cement substitutes from waste hydrofluoric acid sludge emitted by semiconductor plants, developing cleaning equipment using pulse and vacuum modules, and recovering high-purity hydrofluoric acid and silica from waste hydrofluoric acid. During the awards ceremony, CEO Kim stated, “Through open innovation activities with companies identified in this contest, we aim to advance semiconductor and environmental technologies.” #SKecoplant #DataCenter #GreenDataCenter #SOFC #KimHyungKeun #BloomEnergy #DistributedPower #SustainableTechnology #DataCenterCooling #SemiconductorInnovation
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- CJ ENM CEO Yoon Sang-hyun Faces Crucial Turning Point in Career
- Yoon Sang-hyun, CEO of CJ ENM, is navigating a pivotal phase in his career as a CJ Group executive. The CEO position at CJ ENM is both a stepping stone to key roles within CJ Group and a potential stumbling block, depending on performance. With the success of the entertainment division likely to determine his managerial track record, Yoon is expected to focus his efforts even more intensely on this sector. According to sources on November 20, CJ Group recently appointed Lee Sun-young, head of commerce operations, as the new CEO of CJ ENM’s Commerce Division. This decision is interpreted as a move to alleviate Yoon’s responsibilities, allowing him to concentrate on the entertainment division. Yoon joined CJ ENM in 2022 as the head of the Commerce Division and also assumed leadership of the Entertainment Division in March 2023 when the position became vacant. This dual responsibility significantly increased his workload. Since taking over the entertainment portfolio, Yoon has shifted his focus from commerce to entertainment, working to improve the division’s performance. With the recent appointment of a dedicated commerce division leader, Yoon can now fully devote himself to the entertainment sector. The Entertainment Division is larger in scale and revenue than the Commerce Division and has received significant investments for growth. As CJ Group positions itself as a global cultural enterprise, the entertainment division plays a crucial role in showcasing Korean content (Hallyu) globally, aligning closely with the group’s core identity. However, the division has struggled to deliver satisfactory results. In 2022, CJ ENM reported an operating loss of KRW 14.6 billion (USD 10.5 million), with the Entertainment Division alone accounting for an operating loss of KRW 83.9 billion (USD 60.4 million). Despite returning to profitability in the second quarter of 2023, the division’s performance remains below market expectations. CJ ENM’s consolidated operating profit for the third quarter of 2023 was KRW 15.8 billion (USD 11.4 million), significantly below the market consensus of KRW 46.8 billion (USD 33.7 million). Losses from the U.S.-based content production company Fifth Season (operating loss of KRW 23.2 billion or USD 16.7 million) and an 84.8% drop in music segment operating profit compared to the third quarter of 2022 have further impacted results. Analysts have expressed skepticism about CJ ENM’s prospects. Hyun-ji Lee, an analyst at Eugene Investment & Securities, stated, “The Entertainment Division’s underperformance stems from issues with content delivery and IP investments. The fact that profitability has deteriorated for three consecutive quarters warrants a more critical evaluation.” So-hye Kim, an analyst at Hanwha Investment & Securities, remarked, “CJ ENM currently lacks factors that could drive a turnaround in profits. While the market is challenging, as the domestic leader, CJ ENM needs a clear strategy to navigate these difficulties.” This situation presents both an opportunity and a challenge for Yoon, who now faces a major test of his leadership capabilities. After successfully improving the profitability of the Commerce Division, he must now deliver significant results in the Entertainment Division to prove his managerial abilities. The CEO position at CJ ENM has historically served as a gateway to key roles within CJ Group. For example, Heo Min-hoe, recently appointed head of management support at CJ Corporation, previously served as CEO of CJ ENM. Yoon, known as a strategic expert, was assigned to CJ ENM to gain hands-on management experience after spending much of his career in strategic planning for the holding company. However, Yoon is also aware of the challenges faced by his predecessors at CJ ENM. Goo Chang-geun, who previously led the Entertainment Division, resigned unexpectedly despite his prior success at CJ Olive Young. Similarly, Heo Min-ho, a former head of the Commerce Division, stepped down amid controversies and poor performance at CJ ENM. Yoon’s career trajectory within CJ Group is expected to hinge heavily on the success of the Entertainment Division. With the leadership change in the Commerce Division, Yoon is expected to intensify his focus on improving the entertainment division’s performance. At the “CJ Movie Forum” held in Busan last month, Yoon stated, “Despite uncertainties in the film industry, we will support creators in shining globally with their imagination and talent. We aim to lead the K-content ecosystem by continuing our annual investment of KRW 1 trillion (USD 720 million) in content.” He added, “We will expand CJ ENM’s unique intellectual property (ONLYONE IP) globally and establish ourselves as a ‘Global No. 1 IP Powerhouse,’ leading a new cultural ecosystem.” #CJENM #YoonSanghyun #Kcontent #entertainmentindustry #CJGroup #globalculturalenterprise #ONLYONEIP #FifthSeason #businessleadership #Koreanentertainment
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- Samsung SDS Split Rumored: "IT to Electronics, Logistics to C&T" as Holding Company Transition Looms
- Amid speculation about a "management crisis," Samsung Group is reportedly revisiting the idea of restructuring its governance through the split and merger of Samsung SDS, a move last considered eight years ago. Industry analysts suggest that Samsung SDS’s IT division could merge with Samsung Electronics, while its logistics division might merge with Samsung C&T, bolstering Chairman Lee Jae-yong’s and the Samsung family’s control over the group. In 2016, Samsung attempted a similar restructuring of Samsung SDS. However, the plan was halted when Lee, then Vice Chairman, became embroiled in the "Choi Soon-sil Gate" political scandal. On November 20, reports from the investment banking (IB) sector indicate that recent discussions have centered on the possibility of a small-scale merger between Samsung Electronics and Samsung SDS. The proposal under consideration involves splitting Samsung SDS into two entities: merging the IT division with Samsung Electronics and the logistics division with Samsung C&T. This would pave the way for Samsung C&T to acquire Samsung Life’s stake in Samsung Electronics, transitioning Samsung C&T into a holding company. Samsung SDS could be split into IT and logistics divisions, with the logistics division merging with Samsung C&T. This would enable the utilization of Samsung SDS’s cash reserves, estimated at KRW 5.3 trillion (approximately USD 3.8 billion). In 2024, Samsung SDS is projected to generate KRW 6.5 trillion (USD 4.6 billion) in revenue from its IT division and KRW 7.3 trillion (USD 5.3 billion) from its logistics division. Operating profits are expected to reach KRW 800 billion (USD 578 million) for IT and KRW 140 billion (USD 101 million) for logistics. Merging the IT division with Samsung Electronics would further strengthen Chairman Lee Jae-yong’s and Samsung C&T’s control over Samsung Electronics. Samsung Electronics is the largest shareholder of Samsung SDS, holding a 22.58% stake. Chairman Lee and Samsung C&T also own 9.2% and 17.98% of Samsung SDS, respectively. Samsung previously attempted to split Samsung SDS in 2016. At the time, Samsung SDS sought external advice to explore the spin-off of its logistics division, which was seen as a precursor to restructuring the group’s governance. However, plans were abandoned due to resistance from some shareholders of Samsung SDS, coupled with the dissolution of Samsung’s Future Strategy Office following the 2017 political scandal involving the Choi Soon-sil case. In subsequent years, Chairman Lee faced legal challenges related to the alleged unfair merger of Samsung C&T and Cheil Industries, making it difficult to revisit plans for splitting and merging Samsung SDS. If the appellate court delivers a "not guilty" verdict in February 2025 regarding the Samsung C&T-Cheil Industries merger trial, it is expected that the stalled governance restructuring plans for Samsung could resume. A Samsung Electronics official commented on the possibility of splitting and merging Samsung SDS, stating, "This is not something we are aware of." #Samsung #SamsungSDS #SamsungC&T #governancerestructuring #LeeJaeyong #corporategovernance #ITdivision #logisticsdivision #SamsungElectronics #Koreanbusiness
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- Posco Subcontractor Union Holds Rally in Seoul: "Chairman Chang In-hwa Must Directly Participate in Wage Negotiations"
- On November 20, the Posco Subcontractor Union in Gwangyang, part of the Korea Metal Workers' Union, held a rally in front of the Posco Center in Gangnam, Seoul, protesting the company’s reliance on internal subcontracting practices. The union claimed that due to Posco’s refusal to engage in direct negotiations, this year’s wage and collective bargaining discussions have been held with subcontractor companies. However, they alleged that Posco, as the main contractor, interferes behind the scenes, obstructing meaningful progress. A union representative stated, "We have held 15 rounds of negotiations with subcontractor companies for the 2024 wage and collective bargaining agreement, but no progress has been made. This is because subcontractor companies cannot make any decisions without Posco’s approval." The union further argued, "The company’s purpose for employing approximately 20,000 internal subcontractor workers is clear. By maintaining discriminatory practices, Posco saves approximately KRW 30 million (USD 21,600) in annual wages per worker. This amounts to KRW 600 billion (USD 432 million) annually, KRW 6 trillion (USD 4.32 billion) over ten years, and KRW 12 trillion (USD 8.64 billion) over 20 years." They also accused Posco’s subcontracting practices of being disguised outsourcing. They highlighted that since August 2004, complaints and lawsuits filed with the Ministry of Labor have resulted in Supreme Court rulings from 2022 affirming Posco as the actual employer of internal subcontractor workers. A union representative explained, "The company has insisted that they do not have direct employment contracts with internal subcontractor workers and that subcontractor companies are independent entities. However, the court has ruled that Posco is the actual employer." The union criticized the arrangement forcing them to negotiate with subcontractor companies as deceptive. "Posco Group Chairman Chang In-hwa must take responsibility and directly participate in the negotiations," they demanded. #Posco #ChangInhwa #subcontracting #laborunion #workerprotests #Koreanlaborlaw #wagebargaining #employmentrights #disguisedoutsourcing #workerjustice
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- Lee Jay-hyun of CJ Group Prioritizes Future Investments, Letting Go of Low-Growth Businesses
- Lee Jay-hyun, chairman of CJ Group, appears to be focusing on investments for the future. This is reflected in moves to sell off even profitable businesses if high growth potential seems uncertain. The review of the sale of CJ CheilJedang’s bio business division is seen as an example of this strategy. If Chairman Lee sells CJ CheilJedang’s bio business division, it is expected to bring in substantial cash, which could be used for investments in CJ CheilJedang’s food business or in red bio, one of CJ Group’s future growth engines. According to market analysts on the 19th, CJ CheilJedang’s review of selling its bio business division is widely seen as an effort to secure funds for new growth investments. The corporate value of CJ CheilJedang’s bio business division is estimated to be around KRW 6 trillion (USD 4.3 billion) in the market. This is approximately 9.4 times the expected EBITDA for the bio business division this year. If the bio business division is successfully sold, CJ Group would have enough funds to acquire multiple large companies in one go. CJ Group’s most expensive acquisition to date was the purchase of Schwan’s, a major frozen food company in the U.S., in 2019 for KRW 2.8 trillion (USD 2 billion). At the price currently discussed in the market, CJ CheilJedang could acquire two companies of Schwan’s scale and still have funds left. Successfully acquiring high-growth companies could give CJ CheilJedang an opportunity to make another leap forward. CJ CheilJedang made a significant mark in the U.S. market through the Schwan’s acquisition. The company’s revenue in the U.S., which stood at approximately KRW 364.9 billion in 2018, surged to KRW 4.3807 trillion in 2023. This is why there is speculation that CJ CheilJedang might be reviewing mergers and acquisitions to find a "second Schwan’s." As CJ CheilJedang is the selling entity, it is expected to prioritize identifying acquisition targets that can generate the most synergy with its core food business. It has become increasingly critical for CJ CheilJedang to find a growth breakthrough for its food business division. The food business is divided into processed foods (home meal replacements, dumplings, frozen meals, Hetbahn, etc.) and ingredients (flour, cooking oil, etc.). While there has been some growth in processed foods, the ingredients business has been shrinking. CJ CheilJedang’s ingredient sales have declined for three consecutive quarters this year, with the drop offsetting the revenue growth in overseas markets, creating a drag on overall performance. Considering external conditions, CJ CheilJedang seems to be at a favorable moment to find new opportunities abroad. Global attention to K-food and K-culture has boosted the popularity of CJ CheilJedang’s products. By preparing an environment to quickly expand the distribution of its food products internationally, CJ CheilJedang could reverse its somewhat stagnant performance trends. There are also opinions that Chairman Lee might use the funds from selling the bio business division for group-wide investments. This includes funding CJ Bioscience, one of CJ Group’s emerging growth drivers. CJ Bioscience is a company within CJ Group that focuses on the microbiome industry. Given that CJ CheilJedang is its parent company, it is likely that part of the funds could flow into CJ Bioscience. The fact that CJ Bioscience’s stock price hit its upper limit on the 19th reflects these expectations. Chairman Lee’s decision to sell CJ CheilJedang’s bio business division is somewhat surprising. The bio business division has been a central pillar of CJ Group’s three major bio businesses. CJ Group has been fostering three key bio sectors: green bio (agriculture-related), white bio (chemical product-related), and red bio (life science-related). The green bio business, which CJ CheilJedang has developed through its bio division, has been considered a core and profitable area for the company. In the past, the bio business division reliably generated approximately KRW 4 trillion in annual revenue and over KRW 500 billion in operating profit. However, the inability to guarantee high growth seems to have influenced Chairman Lee’s decision to sell. According to CJ CheilJedang, five of the eight amino acids sold by the bio business division are global market leaders. Although it has strong global competitiveness, there are vulnerabilities due to price wars initiated by Chinese companies. Last year, the bio business division generated KRW 80.4 billion in operating profit, down 80.4% from 2022. Although operating profit has rebounded this year, industry insiders note that the risk remains high, as it is unclear when Chinese competitors might launch another price war. Indeed, major amino acid companies in Germany and Japan have exited the business in recent years due to price pressures from China. CJ CheilJedang’s intention to sell the bio business division appears to be very strong. It is reported that CJ CheilJedang has already relocated some staff from the bio business division to other departments in preparation for the sale. Employees remaining in the bio business division are said to be concerned about their future. However, there are doubts that a domestic company would be able to step in as a buyer. The risks are high, and there are few companies in Korea capable of paying billions of dollars for the acquisition. As a result, industry experts believe Chairman Lee will need to find a buyer overseas if he wants to sell CJ CheilJedang’s bio business division. #LeeJayhyun #CJGroup #CJCheilJedang #biobusiness #mergersandacquisitions #Kfood #globalexpansion #greenbio #redbio #businessstrategy
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- Samsung Galaxy S25 Targets '1.9 Billion Gamers': Roh Tae-moon Aims for MZ with High-Performance
- Roh Tae-moon, the president and head of Samsung Electronics’ Mobile eXperience (MX) business division, is strengthening cooperation with Qualcomm to significantly enhance gaming features in the upcoming Galaxy S25 series, expected to launch early next year. Samsung plans to attract the world’s growing mobile gamer base, projected to reach 1.9 billion by 2027, by introducing a new feature called ‘Game Assistant’ to the Galaxy S25 series, which will enhance refresh rates and resolve overheating issues. With Qualcomm’s latest mobile processor, the Snapdragon 8 Elite, the Galaxy S25 is expected to allow seamless gameplay of high-spec PC games on a smartphone. According to smartphone industry sources on November 19, Roh is focusing on improving mobile gaming features to boost Galaxy S25 series sales. The U.S. IT media outlet Android Police recently reported, citing a tipster, that Samsung’s upcoming Galaxy S25 series, running on the One UI 7 operating system, will feature the ‘Game Assistant.’ The tipster explained that this feature will allow games locked at a 60Hz refresh rate to run at 120Hz. Additionally, it will include a ‘Battery Performance Optimization’ function to prevent overheating during gaming, enabling longer playtimes on the same battery capacity. These gaming-specific features are reportedly being developed in collaboration with Qualcomm. Android Police noted that Samsung’s Game Assistant will be supported by Qualcomm’s ‘Adreno Frame Motion Engine (AFME) 2.0.’ Qualcomm explained that AFME 2.0 ‘creates high-quality visuals with realistic details while doubling the frame rate without increasing power consumption.’ This technology is expected to resolve the 60Hz refresh rate limitation that has plagued most Android smartphone games. The refresh rate indicates how many image frames are displayed per second, with higher rates resulting in smoother visuals. Given AFME 2.0’s emphasis on power efficiency, Samsung is also expected to address the longstanding overheating issues in its smartphones during gaming. This feature will reportedly be exclusive to Samsung’s Galaxy smartphones. The IT media outlet Android Authority stated, ‘If AFME 2.0 technology is indeed applied, it is likely to remain an option exclusive to Snapdragon-powered Galaxy smartphones.’ Qualcomm’s Snapdragon 8 Elite, which is expected to be featured in the Galaxy S25 series, is also anticipated to enhance gaming capabilities. The U.S. IT media outlet WCCF Tech recently reported, via a video from an insider, that the Snapdragon 8 Elite could run ‘Cyberpunk 2077,’ a high-spec PC and console game developed by Poland’s CD Projekt and released in 2020. WCCF Tech noted, ‘Running Cyberpunk 2077 on a smartphone, even at a low graphics setting, is no easy task. The released video demonstrates that the processor can maintain a stable 60Hz refresh rate even when executing graphics-intensive games.’ Recent testing revealed that Qualcomm’s Snapdragon 8 Elite outperformed AMD’s Radeon 780M integrated laptop graphics card, which was released in 2023. Roh’s focus on enhancing the gaming experience with the Galaxy S25 series is attributed to the rapid growth of the mobile gaming market and the younger generation’s shorter smartphone replacement cycle. According to the market research firm Statista, the mobile gaming market exceeded $90 billion (approximately KRW 125 trillion) last year, surpassing the PC and console gaming markets. The market is expected to grow to $118 billion (approximately KRW 164 trillion) by 2027, with the number of global mobile gamers projected to reach 1.9 billion. Marketing agency Zorka Agency reported that 29.5% of mobile gamers last year were aged 25 to 34, while 28.3% were aged 16 to 24, meaning nearly 60% of mobile gamers are under 34 years old. Young consumers who enjoy mobile gaming also tend to replace their smartphones more frequently. According to a survey by U.S. financial firm S&P Global, 24.2% of Gen Z (those under 28) and 30% of Millennials (aged 28 to 44) reported replacing their smartphones within a year or less. #GalaxyS25 #RohTaeMoon #SamsungElectronics #Qualcomm #Snapdragon8Elite #MobileGaming #GameAssistant #AFME2.0 #SmartphoneInnovation #MobileGameMarket
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- No New High-End Brand for GS E&C: Huh Yoon-hong's Commitment to 'Xi'
- Huh Yoon-hong, CEO of GS Engineering & Construction (GS E&C), has decided to retain the "Xi" brand as a high-end label despite the significant damage to its reputation caused by the collapse of an underground parking lot at an apartment complex in Incheon’s Geomdan district last year. This decision reflects an emphasis on rebuilding trust in the long-standing Xi brand, which has represented GS E&C for over 20 years. It seems Huh prioritized the importance of restoring trust over immediately replacing the brand with a new one. According to GS E&C on the 19th, the company decided to maintain and focus on the Xi brand as a single high-end offering, rather than launching another high-end brand, in order to preserve customer trust. The company announced this direction at the "Xi Re-ignite" event held the previous day at the Xi Gallery in Gangnam-gu, Seoul. At the event, Huh stated, "This rebranding of Xi is not just about changing the brand identity (BI) or logo design but about creating tangible changes rooted in customer orientation and trust." The decision to maintain Xi as a high-end brand reflects its long-standing position as a premium brand in Korea’s apartment market, with high consumer preference. GS E&C also considered the potential devaluation of the Xi brand if a new brand were introduced. Xi was first introduced in 2002, predating GS E&C itself, which was established in 2005. Over the past two decades, Xi has consistently ranked among the top apartment brands in reputation surveys. In the "2024 Best Apartment Brand" survey conducted by Real Estate R114 and Korea Research, Xi ranked third, following Hyundai Engineering & Construction's Hillstate and Samsung C&T's Raemian. Huh said, "We’ve approached the Xi rebranding not as a temporary event but as a process of building a new heritage of sustainable spaces." To recover Xi's brand reputation, GS E&C is focusing on strengthening on-site management and enhancing user-centric services. Huh stated, "Since taking office, I have strengthened on-site management and listened to the opinions of employees and partner companies. Going forward, Xi will aim to be a brand that grows through coexistence and collaboration, involving everyone from customers to partner companies, rather than merely competing for the top position in scale." To enhance user-centric services, GS E&C plans to implement features such as high-quality breakfast services via mobile applications, book cafes curated by Kyobo Bookstore, and lighting designs that promote better sleep and eye health. Leveraging Xi’s heritage, GS E&C has also strategized to target "apartment kids"—those who experienced apartment living during their childhood in the 2000s—as its main customer base. Huh assumed the role of CEO of GS E&C in October, following the underground parking lot collapse at the Incheon Geomdan apartment complex in March of the previous year. Since then, he has consistently emphasized "trust" in his efforts to address the aftermath of the Geomdan accident. Huh highlighted trust in his New Year’s speech at the Maple Xi redevelopment site in Seocho-gu, Seoul, in January and again in July when unveiling GS E&C’s new vision. The new vision, introduced in July, is "to achieve a safer and happier future life through transparent trust and relentless innovation." During the recent Xi Re-ignite event, Huh reiterated the company’s commitment to creating new corporate value through rebranding while avoiding reckless bids and business expansion. He emphasized focusing on sustainable growth rather than merely pursuing quantitative growth. "I believe there will be no difficult times for GS E&C as long as we continue to earn trust," he said. "We will strive with all employees to ensure that the hardships of the past do not return." #HuhYoonhong #GSConstruction #XiBrand #GeomdanAccident #trustbuilding #brandreputation #apartmentmarket #highendbrand #usercentricservices #corporatevision
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- Heo Min-hoei, CJ's Future "Problem Solver," Brings Crisis-Management Expertise to the Group
- CJ Group Chairman Lee Jay-hyun has appointed Heo Min-heoi, known for his problem-solving abilities across various affiliates, as the new head of CJ’s Corporate Support Division, signaling a push for organizational restructuring. Heo is known for his expertise in finance and strategy and has frequently been assigned to affiliates facing challenges or struggling to achieve results. Such assignments would not have been possible without the owner family's strong confidence in his abilities. Moving forward, Heo will oversee external affairs for CJ, leveraging his extensive experience in managing various affiliates to shape the future of the CJ Group. The executive appointments announced on the 18th indicate Lee Jay-hyun’s intent to strengthen the group's core operations through CJ, the group's control tower. This round of appointments appears focused on driving change at CJ. Heo was chosen as the head of CJ, while the vacancy at CJ CGV’s CEO position was filled by a former overseas affiliate manager. The long-vacant Commerce Division head at CJ ENM was promoted internally. Apart from these changes, no significant shifts occurred in other affiliates. The holding company plays a central role in aggregating all business and financial information from the affiliates. Appointing a new leader for the holding company suggests a strategic shift for the entire group. Heo’s selection for this role is seen as particularly significant. Heo Min-heoi is one of the most trusted executives among CJ Group's owner family. He was appointed CEO of CJ Foodville in March 2012 but moved to CJ less than a year and a half later. At that time, CJ Group was facing a management vacuum following the arrest of Chairman Lee Jay-hyun. In response, the group formed a five-member Group Management Committee at CJ to support the holding company, and Heo was brought in to assist. The so-called "Five-Member Group Management Committee" included Chairman Sohn Kyung-shik, Vice Chairwoman Lee Mi-kyeong (Miky Lee), then-CJ Logistics Vice Chairman Lee Chae-wook, then-CJ President Lee Kwan-hoon, and then-CJ CheilJedang President Kim Cheol-ha. Heo was placed under President Lee Kwan-hoon in a comprehensive management role, effectively overseeing CJ Group’s internal operations. Despite holding only a Vice President position at the time, Heo was given a critical role in the Group Management Committee, indicating the considerable trust he had earned from the owner family. Heo also inherited board memberships for CJE&M (now CJ ENM), CJ O Shopping (now CJ OnStyle), and CJ CGV from Lee Jay-hyun when the chairman stepped down from these roles. Heo has been a professional manager often deployed to affiliates facing significant challenges. He was appointed head of CJ OliveNetworks at the end of 2014, shortly after the company was founded. As the first CEO, he had to stabilize the company, which was formed through a merger of two entities. He also faced challenges at CJ O Shopping. When Heo took over, the company had fallen to 4th place in the home shopping industry based on sales, leading to instability, with two previous CEOs stepping down before completing their terms. At CJ ENM, Heo led major decisions, such as the sale of shares in Studio Dragon and the spin-off of Tving, to secure new growth drivers. He was appointed CEO of CJ CGV at the end of 2020, during a period when the company faced an existential crisis due to COVID-19 and social distancing measures. Despite the difficulties, Heo consistently met the expectations of the owner family, which is why he remained in key positions through several rounds of restructuring. Heo’s return to CJ marks the first time in 10 years since he left the holding company for CJ OliveNetworks in December 2014. With this appointment, Heo will now take charge of CJ’s Corporate Support Division, overseeing compliance and public relations, among other responsibilities. Given Heo's extensive experience, it may seem surprising that he was assigned a role focused on external affairs rather than directly managing business operations. However, placing an executive with significant business experience in an external affairs role could help CJ Group accelerate its strategic direction. At CJ, the group's control tower, not only business acumen but also the ability to closely monitor external business environments is highly valued. This implies the need to maintain an external perspective and set the overall direction of the group rather than focusing solely on internal issues. Given this context, Heo’s experience across the holding company, IT, home shopping, and entertainment affiliates is highly significant. A CJ Group representative commented, "Heo Min-heoi is expected to play a key role in consolidating internal and external perspectives to set the future direction of CJ Group." #LeeJayhyun #HeoMinheoi #CJGroup #CorporateRestructuring #AffiliateManagement #LeadershipChange #CJSupportDivision #GroupControlTower #StrategicDirection #BusinessRestructuring
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- Lee Jae-yong Boosts Samsung Electronics Stake: Accelerating Holding Company Structure?
- The decision by Samsung Electronics to buy back KRW 10 trillion (USD 7.2 billion) worth of its own shares for the first time in seven years is being interpreted not only as a shareholder return measure but also as a move by the Lee family to strengthen their control. The Samsung owner family is expected to face a KRW 4 trillion (USD 2.88 billion) inheritance tax payment in the near future, which could result in a decrease in their shareholding in Samsung Electronics. By buying back and canceling treasury shares, the company can prevent this dilution. Amid growing concerns about Samsung's management crisis, there is speculation that Chairman Lee Jae-yong may expedite restructuring efforts, transitioning Samsung C&T into a holding company structure to strengthen his control over the group. According to industry sources as of November 18, recent management crises and declining stock prices at Samsung Electronics could accelerate Samsung Group's corporate restructuring. On November 15, Samsung Electronics announced a plan to buy back KRW 10 trillion (USD 7.2 billion) worth of shares over the next year, with KRW 3 trillion (USD 2.16 billion) to be purchased within three months and subsequently canceled. This is the company’s third buyback, following KRW 11.3 trillion (USD 8.15 billion) in 2015 and KRW 9.3 trillion (USD 6.71 billion) in 2017. The company stated that the decision to buy back shares was made to enhance shareholder value, as Samsung Electronics’ stock had recently fallen to KRW 49,900 (USD 36). Share buybacks, like dividends, are a key shareholder return policy that can have a greater impact when the stock price is low. While the buyback is presented as a measure to enhance shareholder value, industry analysts believe it was also necessary for the Samsung owner family. Former Leeum Museum Director Hong Ra-hee, Hotel Shilla President Lee Boo-jin, and Samsung C&T President Lee Seo-hyun had taken out stock-backed loans totaling about KRW 2.5 trillion (USD 1.8 billion) to pay inheritance taxes, using their Samsung Electronics shares as collateral. If the share price falls below a certain level, they must provide additional shares or cash as collateral. Additionally, by canceling treasury shares, the owner family can indirectly increase their ownership stake in Samsung Electronics. The current shareholding of the Samsung family in Samsung Electronics is 5.45%. However, as they proceed with paying the KRW 4 trillion (USD 2.88 billion) inheritance tax, they may have to sell some shares, potentially reducing their stake to the 4% range. This would weaken the family's control over Samsung Electronics, leaving them vulnerable to challenges to their management rights. However, if Samsung buys back and cancels KRW 10–20 trillion (USD 7.2–14.4 billion) worth of shares, the family could maintain their current ownership level even after accounting for share sales needed to cover the inheritance tax. Ultimately, this buyback announcement can be seen as a preemptive move to maintain the ownership family’s control over Samsung Electronics. An industry insider commented, “Chairman Lee Jae-yong and the owner family must pay billions of dollars in inheritance taxes, which will require selling some of their Samsung Electronics shares.” There is also the possibility that the group’s restructuring could gain momentum alongside the buyback. The financial sector has long speculated that Samsung C&T could acquire Samsung Electronics shares from Samsung Life Insurance and then transform into a holding company, restructuring the group’s governance. The current cross-ownership structure of Samsung Group is as follows: “Chairman Lee Jae-yong → Samsung C&T → Samsung Life Insurance → Samsung Electronics → other affiliates.” Samsung C&T owns a 19.3% stake in Samsung Life Insurance and a 5.0% stake in Samsung Electronics. Samsung Life Insurance (8.51%) and Samsung Fire & Marine Insurance (1.49%) together hold a 10% stake in Samsung Electronics. However, under the Financial Industry Restructuring Act (FIRA), financial companies affiliated with large conglomerates are not allowed to own more than 10% of a non-financial company’s shares. If the buyback and cancellation of Samsung Electronics' treasury shares push Samsung Life Insurance and Samsung Fire’s holdings above 10%, they would have to sell the excess shares. NH Investment & Securities Analyst Jung Joon-sub noted, “In 2018, Samsung Life Insurance and Samsung Fire & Marine Insurance sold excess shares resulting from Samsung Electronics' treasury share cancellation. The proceeds from the sales amounted to KRW 228.4 billion (USD 164.7 million) to KRW 761.2 billion (USD 549.1 million).” Moreover, if the so-called "Samsung Life Insurance Law," an amendment to the Insurance Business Act, passes in the National Assembly, additional sales of Samsung Electronics shares by Samsung Life Insurance will become inevitable. In 2021, then-Democratic Party lawmaker Park Yong-jin, along with his colleague Lee Yong-woo, proposed an amendment to the Insurance Business Act that would change the valuation method for insurers’ affiliated company shares from acquisition cost to market price, with a cap of 3% of total assets. The proposal was discussed during the 21st National Assembly but was ultimately shelved. However, the Democratic Party is reportedly reconsidering the amendment for reintroduction. If the amendment passes, it will require insurers to reduce their holdings, as it would limit ownership based on market price rather than acquisition cost. As a result, Samsung Life Insurance may need to sell about 6.7% of its 8.51% stake in Samsung Electronics. This would disrupt the current structure of controlling Samsung Electronics through Samsung Life Insurance. In response, Samsung Group has been considering a restructuring plan where Samsung C&T acquires Samsung Electronics shares from Samsung Life Insurance, establishing itself as a de facto holding company. The ownership structure would then follow a chain from Lee Jae-yong to Samsung C&T to Samsung Electronics and Samsung Life Insurance. However, the Fair Trade Act requires holding companies to own at least 30% of their subsidiaries’ shares. For Samsung C&T to meet this requirement for Samsung Electronics, it would need at least KRW 50 trillion (USD 36 billion) in capital. Therefore, there is speculation that Samsung C&T might leverage Samsung SDS to strengthen its control over Samsung Electronics. One approach could involve a small-scale merger between Samsung Electronics and Samsung SDS, which would increase Lee Jae-yong and Samsung C&T’s stake in Samsung Electronics. A small-scale merger is a simplified procedure under the Commercial Act that allows a merger without shareholder approval if the new shares issued account for less than 10% of the total shares of the acquiring company. Samsung Electronics, Samsung C&T, and Chairman Lee Jae-yong currently hold stakes of 22.58%, 17.08%, and 9.2% in Samsung SDS, respectively. DB Financial Investment Analyst Kim Soo-hyun commented, “Given the current market capitalization gap between Samsung Electronics and Samsung SDS—approximately 30 times—the small-scale merger is feasible. If a merger between Samsung SDS and Samsung Electronics occurs, it would increase Samsung C&T’s stake in Samsung Electronics, strengthening the owner family’s control.” #SamsungElectronics #StockBuyback #InheritanceTax #CorporateRestructuring #LeeFamilyControl #SamsungC&T #SamsungLifeInsurance #FairTradeAct #SamsungSDS #SmallScaleMerger
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- Long-Term Plan for Normalizing KB Kookmin Bank’s Indonesian Unit; Lee Jae-keun Endures a Testing Period
- Lee Jae-keun, CEO of KB Kookmin Bank, is facing a challenging period as he seeks to improve the performance of the bank's overseas operations. The losses of KB Kookmin Bank’s major overseas subsidiary in Indonesia have widened again this year. The CEO aims to turn a profit at the Indonesian subsidiary by as early as 2025 and is tightening measures to improve profitability. According to KB Kookmin Bank's third-quarter report released on November 18, the Indonesian subsidiary, KB Bank (formerly KB Bukopin), recorded a net loss of KRW 278.6 billion (USD 200.9 million) in the third quarter of 2024. This is nearly three times the loss recorded in the same period of 2023 (KRW 95.7 billion or USD 69.0 million). The net loss attributable to the parent company amounted to KRW 186.1 billion (USD 134.2 million) in the third quarter. A representative of KB Kookmin Bank explained, "KB Bank incurred approximately KRW 100 billion (USD 72.1 million) in costs due to provisions and one-off tax expenses in the third quarter. However, excluding profits from non-performing loan sales, the loss before provision and pre-provision operating profit (PPOP) improved by about KRW 53.4 billion (USD 38.5 million), showing enhanced profitability." Nevertheless, KB Bank has shown an increasing trend of losses for the entire year. In the first quarter, KB Bank reported a net loss of KRW 52.9 billion (USD 38.2 million), followed by a net loss of KRW 95.8 billion (USD 69.1 million) in the second quarter, resulting in a total net loss of KRW 151.5 billion (USD 109.2 million) for the first half of the year. Despite posting a net profit of KRW 8.43 billion (USD 6.1 million) in the first half of 2023, the bank returned to losses within a year. The accumulated net loss for the first three quarters of 2024 reached approximately KRW 430 billion (USD 310.0 million), almost five times the loss in the same period last year. The mounting pressure on Lee to achieve a turnaround at the Indonesian subsidiary is inevitable. In 2022, when Lee took office, KB Bank posted a net loss of KRW 802.1 billion (USD 578.3 million). In 2023, following capital injections and the sale of non-performing assets, the losses were reduced to KRW 261.3 billion (USD 188.5 million), but losses have since increased again. Delays in the next-generation IT system project, a key initiative to enhance the competitiveness of the Indonesian subsidiary, have also added to the CEO’s burden. In 2022, KB Bank received an upgraded comprehensive soundness rating from Indonesian financial regulators, and the bank began preparing to expand its business through new initiatives such as digital banking services. KB Kookmin Bank initially planned to complete the development of KB Bank’s next-generation IT system by the end of this year and apply it to deposit and loan services. The bank invested around KRW 100 billion (USD 72.1 million) in this project, showing its commitment. However, the project encountered difficulties, leading to a recent change in the main project manager. Due to worsening profitability at KB Bank and delays in the IT system upgrade, Lee is also facing pressure from Korean financial regulators. On October 29, Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), directed thorough inspections, including a potential investigation into KB Bank’s problematic acquisition, during an FSS executive meeting. This directive followed the issue of KB Kookmin Bank's troubled Indonesian subsidiary being brought up during the National Assembly’s National Policy Committee audit. During a recent trip to Indonesia, FSS Governor Lee Bok-hyun also visited the Indonesian Financial Services Authority (OJK), accompanied by Korean staff involved with KB Bank, underscoring the Korean regulator’s focus on risk management for overseas operations. Since taking office in January 2022, Lee has been credited for his efforts to improve the profitability of the Indonesian business. Under Lee’s leadership, KB Kookmin Bank supported KB Bank with a substantial capital injection and undertook restructuring measures, including the sale of non-performing assets. During his first overseas trip as CEO in March 2022, Lee visited KB Bank in Indonesia as well as Cambodia, where he assessed the management status and discussed additional investment plans with local regulators. In May 2023, Lee visited Indonesia again with FSS Governor Lee Bok-hyun and participated in a Memorandum of Understanding (MOU) signing with a local energy group, reinforcing efforts to expand the bank’s presence. In 2024, KB Kookmin Bank announced plans to accelerate restructuring at KB Bank. In March of this year, the bank rebranded from KB Bukopin to KB Bank, updating its name, logo, and branding to align with the new IT system rollout. As a result, some performance indicators, including interest income, have shown signs of improvement. According to KB Kookmin Bank, KB Bank’s interest income in the third quarter of 2024 increased by 59.5% (approximately KRW 29.7 billion or USD 21.4 million) compared to the previous year. Non-interest income, excluding gains from non-performing loan sales, rose by 98.2% (around KRW 16.7 billion or USD 12.0 million). The normal loan ratio improved to 75.5%, up 18.8% from the second quarter. If Lee is reappointed as CEO at the end of the year, he may successfully lead KB Bank’s turnaround to profitability as early as next year. KB Kookmin Bank is aiming for KB Bank to return to profitability by 2025. During the National Assembly’s policy audit in October, KB Kookmin Bank Vice President Kang Nam-chae stated, “We are working very hard on improving KB Bank’s management, and while we initially targeted profitability by 2026, we are now aiming for a faster turnaround as early as next year.” A representative of KB Kookmin Bank added, “We were aware that KB Bank was a troubled institution at the time of acquisition and formulated a long-term management plan. We continue to sell off non-performing loans and recover distressed assets. We are targeting profitability for KB Bank by 2025 and expect it to start contributing to the group’s return on equity (ROE) from 2026 onward.” #LeeJaekeun #KBKookminBank #KBIndonesia #OverseasExpansion #ProfitabilityChallenges #NonPerformingLoans #FinancialSupervisoryService #ITSystemDelays #TurnaroundStrategy #NationalAssembly
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- Lee Jae-myung Sentenced to 1 Year in Prison with 2-Year Probation for Election Law Violation in First Trial
- Lee Jae-myung, leader of the Democratic Party of Korea, was handed a suspended sentence in the first trial of his public election law violation case. On November 15, the Seoul Central District Court’s 34th Criminal Division sentenced Lee to one year in prison, suspended for two years, in the case involving violations of the Public Official Election Act. If the suspended sentence of one year is upheld by the Supreme Court, it would result in the annulment of his election as an elected official. According to the Public Official Election Act, any conviction with a fine of KRW 1 million or higher leads to the loss of office. In September 2022, Lee was indicted for spreading false information related to two cases: the alleged preferential land use changes for the Baekhyeon-dong site involving the Korea Food Research Institute, and his claim of not knowing Kim Moon-ki, a senior official at Seongnam Development Corporation, during his 2021 presidential campaign. Lee had stated in televised debates and interviews that he did not know Kim, and during a parliamentary hearing, he claimed that the land use changes were made under pressure from the Ministry of Land, Infrastructure, and Transport. Prosecutors argued that these statements were false and intended to sway the election outcome, leading to the indictment. Among the two charges, Lee was acquitted of the statement regarding his acquaintance with Kim Moon-ki but was found guilty of the false claim about external pressure in the Baekhyeon-dong case. The court emphasized that the false statements made by Lee during the presidential campaign were particularly severe given the widespread public interest in the allegations against him. The judge stated, “The accusations against the defendant were a matter of national interest, and using broadcast media amplified the impact and spread of the false information. Publicly spreading false information during an election can distort and undermine the voters’ will.” The court added, “While freedom of expression must be protected during elections, we must also consider the potential distortion of public opinion caused by false information. The gravity of the crime is significant.” Lee expressed his intent to appeal immediately, stating that he could not accept the court’s ruling. Lee commented, “The court’s decision is based on a factual recognition that I find hard to accept. There are still two more legal stages remaining, and the judgment of the people and history will last forever.” He added, “Today’s scene will be remembered as a moment in the modern history of South Korea.” #LeeJaeMyung #ElectionLawViolation #SuspendedSentence #DemocraticParty #SouthKoreaPolitics #SupremeCourt #ParliamentarySeatLoss #FirstTrialVerdict #PublicOfficialElectionAct #PoliticalScandal
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- Hanwha Life's Capital Management Target Faces "Red Alert," Yeo Seung-joo Pushes Protection Insurance
- Vice Chairman and CEO of Hanwha Life, Yeo Seung-joo, faces the challenge of improving both profitability and solvency in the fourth quarter. Hanwha Life reported disappointing third-quarter results and barely met the regulatory solvency requirements. To address this, Vice Chairman Yeo plans to enhance sales of high-margin protection-type insurance products through the company’s subsidiary general agency (GA), aiming to improve fourth-quarter performance and meet the target capital adequacy ratio. According to the Financial Supervisory Service’s electronic disclosure system on the 15th, Hanwha Life was the only one among the three major life insurers (Samsung Life, Hanwha Life, and Kyobo Life) to report a decline in cumulative net income for the third quarter. Samsung Life’s net income increased by 40.1% thanks to gains from investments, and Kyobo Life’s net income rose by 17.8% due to stable insurance profits. In contrast, Hanwha Life saw a 13.9% decrease, affected by declines in both investment and insurance profits. Hanwha Life’s cumulative insurance profit for the third quarter was KRW 713 billion, and investment profit was KRW 195.6 billion, down by 18.0% and 7.3% year-on-year, respectively. The solvency ratio (RBC ratio), a key indicator of financial stability, was estimated at 164.5% at the end of the third quarter. This was an improvement from 162.8% at the end of the second quarter but a decline from 183.8% at the end of 2023. The current solvency ratio slightly exceeds the Financial Supervisory Service's recommended minimum of 150%, but it falls short of Hanwha Life's annual target of 175%. To meet the year-end target, an additional improvement of 10.5 percentage points is required. Given that only two months remain in the year, there were concerns during the third-quarter earnings conference call about the feasibility of achieving the target solvency ratio. Hanwha Life’s Risk Management Director, Park Soo-won, responded, “We expect the solvency ratio to increase by about 3.5 percentage points with new contract service margin (CSM) inflows. Additionally, we plan to raise capital by issuing hybrid securities, aiming to improve the ratio by an additional 6.0 percentage points.” Under the new accounting standard (IFRS 17), CSM is included in the available capital when calculating the solvency ratio. Thus, an increase in CSM directly enhances the solvency ratio, making profitability a crucial factor in managing capital adequacy. Vice Chairman Yeo is expected to push for greater expansion of high-margin protection-type insurance products to secure profitability. The profitability of whole life insurance has been declining across the industry due to a decrease in discount rates applied to liabilities. During the conference call, Hanwha Life’s Support Management Director, Baek Jae-min, stated, “In anticipation of declining profitability in whole life insurance, we have expanded sales of protection-type insurance, which offers higher profitability, since the beginning of this year. We are focusing on ensuring the profitability of our products in response to market trends.” With the industry’s sales focus shifting towards general agencies (GAs), Yeo is likely to actively leverage Hanwha Life Financial Services, a subsidiary GA, to boost sales of protection-type insurance products. Under Vice Chairman Yeo's leadership, Hanwha Life has accelerated the separation of manufacturing and distribution functions, expanding Hanwha Life Financial Services. The subsidiary posted a cumulative net income of KRW 83.6 billion for the third quarter, significantly contributing to Hanwha Life’s consolidated net income. Hanwha Life Financial Services is recognized within the insurance industry for its substantial size and strong sales competitiveness. This year, Vice Chairman Yeo has already strengthened sales through Hanwha Life Financial Services, emphasizing protection-type insurance products. As a result of this strategic focus, protection-type insurance accounted for 69.6% of Hanwha Life’s new contract CSM in the third quarter, an increase of about 20 percentage points from a year ago. Hanwha Life's revenue from new contract CSM in the third quarter amounted to KRW 542 billion, with KRW 377 billion generated from protection-type insurance alone. Ji-young Kim, an analyst at Kyobo Securities, noted, “The proportion of protection-type insurance in Hanwha Life’s new contract CSM has increased compared to last year, indicating positive long-term prospects for improved profitability.” From a profitability perspective, the growth of the annualized premium equivalent (APE) for new contracts in the third quarter is also noteworthy. APE measures the total amount of premiums on a yearly basis, and a higher figure indicates stronger insurance sales. Hanwha Life’s APE for new contracts in the third quarter was KRW 977 billion, marking a 35.7% increase year-on-year. Protection-type insurance accounted for 80% of this figure. A Hanwha Life representative commented, “We will continue to strengthen our product lineup with a focus on high-margin protection-type insurance for the time being. We will strive to achieve the year-end target solvency ratio of 175% by securing new contract CSM and reducing insurance risks through reinsurance.” #HanwhaLife #YeoSeungjoo #Profitability #SolvencyRatio #ProtectionInsurance #IFRS17 #InsuranceIndustry #HanwhaFinancialServices #NewContracts #CapitalManagement
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- Debate Heats Up Over Cryptocurrency Tax Deferral: Lee Jae-myung’s Dilemma
- Following the conclusion to repeal the Financial Investment Income Tax (FII Tax), the political debate has now intensified over the issue of deferring taxation on cryptocurrency investment income. While the Democratic Party of Korea (DPK) agreed with the government and the ruling party on repealing the FII Tax, they are largely in favor of proceeding with the planned taxation on cryptocurrency investments starting January next year. Lee Jae-myung, the leader of the DPK and a strong contender for the next presidential race, faces a dilemma as he needs to consider both the opinions within his party and the sentiments of investors. On November 15, political circles anticipated a heated debate between the ruling party, People Power Party (PPP), and the DPK over the government's plan to defer taxation on cryptocurrency investment income for two years. Han Dong-hoon, leader of the PPP, posted on his social media, “The DPK, which agreed to the repeal of the FII Tax under public pressure, is now opposing the government’s plan to defer cryptocurrency taxation and is calling for immediate taxation starting January next year. Even cryptocurrency investors did not expect this stance.” Han added, “Cryptocurrency investments are especially popular among young people, and deferring taxation is necessary to support their asset growth.” In July, the government announced a tax revision plan proposing to delay the implementation of the cryptocurrency investment income tax, initially scheduled for 2025, to 2027. The DPK, however, has voiced strong opposition to this deferral. No Jong-myeon, spokesperson for the DPK, told reporters after a party meeting, “The party does not accept the government’s plan to defer cryptocurrency taxation for two years.” Hwang Jeong-ah, another DPK spokesperson, reiterated that there have been no changes in their stance regarding cryptocurrency taxation. Unlike the contentious debate over the FII Tax, there is little disagreement within the DPK about proceeding with cryptocurrency taxation, leaving Lee Jae-myung in a difficult position. If he aligns with the party’s stance, he risks losing support from cryptocurrency investors and may appear to be ceding the initiative to the ruling party, similar to what happened with the FII Tax. Initially, both parties had agreed on the FII Tax, but when the PPP changed its position, the issue became a political flashpoint. Han Dong-hoon’s push for repeal gained traction, forcing Lee to take a step back. In their April election platform, the DPK proposed increasing the cryptocurrency income tax exemption threshold from KRW 2.5 million to KRW 50 million, aiming to ease concerns of investors while still moving forward with taxation. The DPK justifies the taxation on cryptocurrency income by citing revenue shortfalls and the need for tax equity with other investment vehicles like stocks. However, concerns persist that taxing cryptocurrency income could negatively impact the industry’s growth, potentially driving domestic investment funds to foreign exchanges. There is also criticism that taxing only domestic cryptocurrency exchange users, due to the difficulty of tracking profits from overseas exchanges, could result in unfair treatment. This concern is amplified by the prospect of a more crypto-friendly stance under the upcoming Trump administration in the United States. President-elect Donald Trump, during his campaign speech at the “Bitcoin Conference 2024” on July 27, declared, “I will make America the capital of digital assets,” and pledged to dismiss SEC Chairman Gary Gensler, who has taken a negative stance toward cryptocurrency and imposed strict regulations. Additionally, a significant portion of cryptocurrency investors falls within the 30-40 year-old male demographic, a key target group for expanding the DPK’s support base, adding to Lee’s concerns. According to the Financial Information Unit (FIU) under the Financial Services Commission, as of the end of the first half of this year, there were 7.88 million cryptocurrency investors in Korea, with 39.6% of them being men in their 30s and 40s. The PPP argues that if the existing annual taxation on cryptocurrency profits is implemented without the two-year deferral, it would not account for investment losses, potentially leading to significant public resistance. A report from the Capital Market Research Institute indicates that the U.S. has already established a robust tax framework for cryptocurrencies. In the U.S., individuals are taxed on income earned from acquiring cryptocurrencies, and profits are taxed based on the market value at the time of acquisition and sale. Short-term investments (held for less than a year) are taxed at the regular income tax rate, while long-term investments are subject to differentiated rates based on the holding period. Hong Ji-yeon, a senior researcher at the Capital Market Research Institute, stated in a report, “If cryptocurrency taxation is implemented without adequate preparation, it could lead to tax evasion through private transactions or trading on foreign exchanges.” Legal experts also recommend that the taxation plan be carefully refined, taking into account both domestic and international realities, adding to Lee’s growing concerns. There is a prevailing opinion that the current legal framework remains insufficient for effective taxation of cryptocurrencies. The 21st National Assembly introduced the “Virtual Asset User Protection Act” (Virtual Asset Act) to establish a foundation for user protection. The Virtual Asset Act came into effect on July 19 this year, roughly a year after its passage. Kim Seung-hyun, an attorney at Sunin Law, commented to Business Post, “To effectively regulate a cryptocurrency market that is likely to be interconnected with global financial markets, it is crucial to align our legal framework with international standards.” Kim added, “Moreover, given the criticism that the legislative infrastructure for regulating cryptocurrencies is still weak, it is essential for the National Assembly to refine the laws to protect investors and prevent tax resistance.” #CryptocurrencyTax #TaxDeferral #LeeJaeMyung #DemocraticParty #InvestorSentiment #PoliticalDilemma #FinancialInvestmentTax #RegulatoryDebate #KoreaPolitics #CryptoRegulation
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- Hyundai Motor Group Appoints Foreign CEO for the First Time, Promotes Chang Jae-hoon to Vice Chairman
- Hyundai Motor Group has promoted Chang Jae-hoon, CEO of Hyundai Motor, to Vice Chairman and, for the first time in its 57-year history since its founding in 1967, appointed a foreign national as CEO. The group announced its executive appointments on the 15th, centering around this change. The group stated, "This executive reshuffle continues our performance-based policy that recognizes excellent achievements. At the same time, we aim to strengthen our internal core competencies to address increasing future uncertainties, by boldly appointing proven leaders as CEOs of the group companies to enhance organizational robustness and accelerate our transition for the future." Hyundai Motor Group will promote Chang Jae-hoon to Vice Chairman in charge of complete vehicle operations effective January 1 next year. This is part of a strategy to fundamentally improve the structure of the car manufacturing business and strengthen its future competitiveness. With Chang’s promotion to Vice Chairman, the position of Vice Chairman, which was eliminated in the executive reshuffle at the end of 2021, has been reinstated. Chang, who was appointed as CEO of Hyundai Motor at the end of 2020, was reappointed at the annual general meeting this March. The new Vice Chairman Chang will oversee the entire value chain, including product planning, supply chain management, manufacturing, and quality control, with the mission of ensuring sustainable future competitiveness. To advance its global management system and solidify its customer-focused mobility leadership, Hyundai Motor has appointed Jose Muñoz, Chief Operating Officer (COO) and Head of the North American Region, as the new CEO of Hyundai Motor effective January 1 next year. Jose Muñoz, the new CEO of Hyundai Motor, joined the company in 2019 as Global COO and Head of the Americas Region. He was born in Spain and has held various roles, including Head of Sales and Marketing for Toyota’s Spain and Portugal operations and as CEO of Nissan’s Mexico, North America, and China divisions. To effectively respond to the current global economic and security challenges, Hyundai Motor Group has recruited Kim Sung, a current advisor at Hyundai, to serve as President of the group's think tank, effective January 1 next year. Kim Sung is a former U.S. diplomat well-versed in East Asian and Korean Peninsula affairs, having held several key positions across the administrations of George W. Bush, Barack Obama, Donald Trump, and Joe Biden. As President, Kim will focus on global external relations, analysis and research on domestic and international policy trends, and public relations, enhancing the group’s external networking capabilities. Choi Joon-young, Vice President in charge of Kia's domestic production and Chief Safety and Health Officer (CSO), and Lee Kyu-bok, Vice President and CEO of Hyundai Glovis, will be promoted to President effective November 18, in recognition of their outstanding business achievements and contributions to long-term organizational and business restructuring. Additionally, the group has promoted Baek Chul-seung, Vice President of Hyundai Transys, to CEO; and appointed Oh Jun-dong, Executive Director of Kia’s Electrification Center, as Vice President and new CEO of Hyundai Kefico. Lee Han-woo, Executive Vice President of Hyundai Construction’s Housing Division, and Joo Woo-jung, Vice President and Head of Finance at Kia, have been appointed as CEOs of Hyundai Construction and Hyundai Engineering, respectively. In this reshuffle, Lee has been promoted to Vice President, and Joo has been promoted to President. Yeo Soo-dong, President of Hyundai Transys; Yoo Young-jong, Vice President of Hyundai Kefico; Yoo Young-jun, President of Hyundai Construction; and Hong Hyun-sung, Vice President of Hyundai Engineering, will be designated as advisors and consultants. #HyundaiMotorGroup #ExecutivePromotion #JangJaehoon #JoseMunoz #KimSung #HyundaiCEO #AutomotiveIndustry #GlobalLeadership #CorporateRestructuring #Mobility
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- Lotte Chilsung’s Profit Slump, Casting Doubt on Reappointment of Shin Dong-bin’s “Trusted Man” Park Yoon-ki
- Lotte Chilsung Beverage CEO Park Yoon-ki’s prospects for reappointment are uncertain, as his current term is set to expire in March next year. Persistent declines in operating profit since last year weigh heavily on his potential for a third term. On the 14th, industry insiders suggested that Park may struggle to retain his leadership role next year. The challenge for him is clear: improving profitability. Since taking the helm, sales have shown steady growth, but operating profit has been declining since last year. Lotte Chilsung entered the “3 Trillion Won Annual Revenue Club” among domestic food companies last year and is on track to exceed 4 trillion won (US$ 2.88 billion) in revenue this year, with cumulative sales of KRW 3.1012 trillion (US$ 2.23 billion) through the third quarter. Despite surpassing 3 trillion won in revenue last year, operating profit declined by 5.5% compared to 2022. This year, the situation has worsened, with cumulative operating profit down 13.3% year-over-year from Q1 to Q3. Both the beverage and alcoholic beverage segments—core areas for Lotte Chilsung—are facing profit declines, posing difficulties for any turnaround. Cumulative operating profit through Q3 fell by 24.7% for beverages and 24.5% for alcoholic beverages compared to the same period last year. Lotte Chilsung’s struggles are especially pronounced when compared to rival Hite Jinro, which recorded a Q3 operating profit of KRW 70.2 billion (US$ 50.6 million), up 61.8% year-over-year. Hite Jinro’s cumulative operating profit through Q3 rose by 98.5%, reaching KRW 186.8 billion (US$ 134.7 million), underscoring Lotte Chilsung’s setback. Industry observers note that Lotte Chilsung trails Hite Jinro in both soju and beer market share, limiting profitability growth. Gaining market share would require increased spending on sales and marketing, which would further erode operating margins. Lotte Chilsung has already spent KRW 20.4 billion (US$ 14.7 million) more on advertising than Hite Jinro as of Q3. While Hite Jinro cut advertising costs by 20.9% year-over-year, Lotte Chilsung increased them by 25.5%, impacting profitability. Lotte Chilsung also raised promotional expenses by 31.4%, whereas Hite Jinro reduced them by 31.7%. Hite Jinro cited marketing efficiency as a reason for its increased profits, while Lotte Chilsung attributed its decline to intensified competition in the alcoholic beverage market. As competitive pressures necessitate higher sales and marketing expenses, Lotte Chilsung’s profitability is expected to continue facing setbacks. Increasing spending on sales and marketing does not guarantee increased market share, as consumer loyalty to familiar alcoholic beverages remains strong, making it difficult to capture rival market share quickly. Given these challenges, Park Yoon-ki’s reappointment remains uncertain. He initially took on the CEO role at Lotte Chilsung in December 2020 and was promoted to vice president after securing a reappointment in December 2022, recognizing his contributions and future potential. However, with declining profitability over the past two years, his chances for a third term remain unclear. Park is regarded as a trusted figure by Chairman Shin Dong-bin. His rapid promotion to executive director upon his appointment as CEO in December 2020, after only one year as managing director, speaks to Shin’s confidence in his leadership. #LotteChilsung #ParkYoonki #CEOReappointment #ProfitabilityChallenges #KoreanBeverageMarket #OperatingProfit #LotteGroup #HiteJinro #AlcoholicBeverageIndustry #MarketShare
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- Samsung Electronics Faces '40,000-Won Crisis'; Lee Jae-yong Poised for Bold Reshuffle
- The growing calls within and outside Samsung Electronics for organizational reform through personnel innovation are aligning with the sense of urgency surrounding the “40,000-won” crisis. Since his appointment as chairman in 2022, Lee Jae-yong has prioritized “stability” over “innovation” in personnel matters, but some critics argue that Samsung has overly focused on stability at the cost of adapting to changes, particularly in the era of artificial intelligence (AI). Observers are watching closely to see if Lee will implement a “cut to the bone” personnel reform as early as next week to lay the groundwork for overcoming the current crisis. According to industry sources on the 14th, Samsung’s 2025 regular executive appointments could be announced as early as next week, aiming to renew the atmosphere and reorganize the company in response to increasing pressures. Samsung Electronics is now facing an unprecedented crisis. As of the closing price on the 14th, Samsung’s stock dropped to KRW 50,600, marking a 4-year, 5-month low. This equates to a Price-to-Book Ratio (PBR) of 0.92, its lowest in history. A PBR below 1 suggests that the company's market value does not even meet its liquidation value. Investors are increasingly concerned about Samsung’s future due to weakened competitiveness in semiconductor technology, including high-bandwidth memory (HBM), mounting pressure from Chinese competitors, and the uncertainty surrounding policy changes under the potential next U.S. Trump administration. Some attribute the current crisis to Lee’s personnel management missteps. Over the past few years, warning signs have sounded across business units, including semiconductors, smartphones, and consumer electronics. However, a lack of strict accountability and the persistence of loyalty-based internal appointments have aggravated the situation. On November 7, Oh Sang-hoon, chairman of the Samsung Labor Union Alliance, commented at the National Assembly, “An executive reshuffle is expected at Samsung soon. The existing executive appointments within Samsung Group are the primary cause of the current issues. Loyalty-based appointments of the so-called ‘triple-path’ executives (executives specialized in secretarial, finance, and personnel) should cease.” Recently, calls have intensified for changes in the leadership of not only the semiconductor division but also key support divisions such as finance, planning, and human resources. There are also demands for a generational shift among senior executives close to Lee. Particularly, questions about accountability are increasingly directed at Samsung’s second-in-command, Vice Chairman Jung Hyun-ho, head of Samsung’s Business Support Task Force (TF) and a Harvard MBA alumnus alongside Lee. Jung, who has served as the de facto control tower within Samsung to bridge the leadership gap caused by legal risks, is now being criticized for communication breakdowns with business divisions and for some flawed major decisions. Potential successors for Jung include Samsung SDI CEO Choi Yoon-ho and Samsung Electronics President of Corporate Management Support Park Hak-kyu. A sweeping reshuffle is also expected within the semiconductor (DS) division. Memory Business Head Lee Jung-bae, Foundry Business Head Choi Si-young, and System LSI Business Head Park Yong-in are all reportedly candidates for replacement. Possible successors include Nam Seok-woo, head of manufacturing and technology for Samsung Electronics' DS division, and Jang Deok-hyun, CEO of Samsung Electro-Mechanics. Lee has thus far remained silent on the "Samsung crisis." In contrast, SK Group Chairman Chey Tae-won presented SK Group’s AI strategy on November 4 at the SK AI Summit 2024, showcasing close partnerships with Nvidia and TSMC. This disparity has fueled doubts within the industry and the market about Lee’s commitment to resolving the situation. An industry official commented, “The ‘New Samsung’ under Chairman Lee Jae-yong faces its most significant test. This November, Samsung must demonstrate a strong commitment to change through sweeping personnel reform.” #SamsungElectronics #LeeJaeyong #LeadershipReform #CorporateCrisis #StockMarket #PersonnelManagement #Semiconductor #FourthIndustrialRevolution #BusinessSupportTF #SamsungInnovation
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- JB Financial's Kim Ki-hong Secures Third Term; Regulatory Pressure and Internal Opposition Remain Hurdles
- Kim Ki-hong, CEO and Chairman of JB Financial Group, has been selected as the sole final candidate for the chairman position, effectively confirming his third consecutive term. However, long-term governance concerns from financial authorities and internal opposition remain as issues Kim will need to address. The financial sector is closely watching how Financial Supervisory Service (FSS) Governor Lee Bok-hyun will respond to JB Financial's decision for a third consecutive term. Governor Lee has previously expressed strong criticism regarding long-term control and excessive authority by financial group chairmen. Following JB Financial Group’s announcement on the 14th, naming Kim as the sole candidate, the Kwangju Bank labor union (part of the National Financial Industry Union) is preparing to intensify its opposition against Kim’s third term. Specifically, the union plans to hold regular morning protests and file complaints with financial authorities. The union argues that Kim’s excessive profit goals have forced the bank to offer uncompetitive deposit and loan products, which do not align with the local community’s financial environment and lead to customer attrition, undermining local partnerships. In fact, data shows that Kwangju Bank and Jeonbuk Bank, both part of JB Financial, report higher interest rate spreads on loans compared to other regional banks. According to the Korea Federation of Banks, Kwangju Bank’s household loan-deposit interest rate spread for new accounts in September (excluding policy-based financial products) was 2.60 percentage points, while Jeonbuk Bank’s was 5.00 percentage points. Jeonbuk Bank attributed the higher spread to inclusive financial support for the regional economy and a larger proportion of loans to mid-to-low credit borrowers. Kwangju Bank, meanwhile, cited an increase in real estate project financing (PF) as a factor in higher lending rates. However, other regional banks showed lower spreads during the same period. For example, the spreads for Gyeongnam Bank, Busan Bank, and iM Bank (a recent commercial bank conversion) were 1.57, 0.58, and 0.57 percentage points, respectively. With Kwangju Bank being a key subsidiary within JB Financial, heightened union opposition could hinder Kim’s ability to assert leadership in his third term. Concerns about Kim’s long-term leadership are amplified by financial authorities’ general disapproval of long-standing CEO tenure. Since Governor Lee’s appointment in June 2022, no other financial group chairman has succeeded in securing a third consecutive term. Kim, a former academic from Chungbuk National University who previously served as a deputy governor at the FSS and an executive at KB Kookmin Bank, first became JB Financial’s chairman in 2019. Following a successful reappointment in 2022, his next term would extend his leadership to 2028, marking nine years at the helm. Critics note that JB Financial amended its bylaws last year to ease the age restriction on the chairman’s position, changing the rule so that the age limit of 70 applies only at the time of appointment rather than during the term. Some speculate that this amendment was made with Kim’s third term in mind. At age 67, Kim will surpass 70 if he completes another term. The financial sector is also focused on the upcoming meeting between Governor Lee and the board chairs of the eight major financial groups (KB, Shinhan, Hana, Woori, NH, BNK, DGB, and JB), set for November 28 at the Bankers’ Hall in Seoul. As the year-end CEO appointments and the new governance structure take effect in January 2025, it is expected that Governor Lee will emphasize the importance of internal controls and transparent appointments. After major meetings, Governor Lee has frequently shared his views with the press through briefings, raising anticipation of his response to key personnel issues within the financial sector. At the recent Nomination Committee meeting, Kim received unanimous support as the sole candidate for the next chairman. Kwon Woo-kwan, JB Financial Group’s Board Chairman and Nomination Committee head, stated, “The entire committee agreed that Kim is the ideal candidate to successfully lead JB Financial over the next three years, given his deep understanding of the group and his ability to advance in promising niche markets.” #JBFinancialGroup #KimKihong #ChairmanReappointment #FinancialSupervision #RegionalBank #InterestRateSpread #LaborUnionProtest #FSS #GovernorLeeBokhyun #KwangjuBank
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- Koo Hyung-mo, Eldest Son of Koo Bon-joon, Promoted to President; LX Group Starts Succession
- Koo Hyung-mo, CEO of LX MDI, was promoted from Vice President to President in the 2025 regular executive appointments. According to LX Holdings on the 13th, Koo Hyung-mo and Seo Dong-hyun, who serve as Co-CEOs of LX MDI, were promoted to President and Senior Executive Vice President, respectively. Additionally, Lee Geun-myung, CEO of LX Ventures, was newly appointed as Director. Koo Hyung-mo is the eldest son of Koo Bon-joon, Chairman of LX Group. This personnel change is seen as a sign that the management succession plan at LX Group is entering a more concrete phase. Since its establishment in December 2022, Koo has led LX MDI as its inaugural CEO. LX MDI functions as the group's strategic management development institute, focusing on management consulting, market intelligence (MI), IT and infrastructure innovation, and talent development for the group's future. Under his leadership, LX MDI successfully strengthened core competitiveness across affiliates through effective consulting services. He also advanced the MI function to provide affiliates with insights on macro trends and the latest industry developments, helping them better respond to market dynamics. Koo is credited with developing a roadmap for enhancing the group’s IT capabilities, implementing AI initiatives step by step, and creating a comprehensive framework for talent development, including the launch and operation of an educational platform aimed at nurturing top talent. Koo began his career at LG Electronics in 2014. He handled new business development at LG Japan from 2019, then joined LX Holdings in 2021 as Senior Manager of Strategic Planning, later being promoted to Executive Vice President of the Planning Division in 2022. Seo Dong-hyun, now Senior Executive Vice President, previously served as Head of Diagnostics (Manager) and Ethics Office (Chief) at LG’s Compliance Task Force Team. He also led management diagnostics and improvement at LX Pantos. Seo optimized LX MDI’s organizational operations and identified new projects, driving the company’s growth. This executive reshuffle is expected to elevate LX MDI’s status within the group. Amid increasing market uncertainties, LX Group continues to emphasize risk management, business portfolio enhancement, and securing a foundation for future growth. Lee Geun-myung, the newly appointed Director of LX Ventures, is an investment expert with extensive experience in M&A and strategic management. He played a key role in establishing LX Ventures and building a strong foundation for identifying proactive investment opportunities. Established in July last year, LX Ventures is the group’s corporate venture capital (CVC) firm, focusing on investing in promising startups and ventures in emerging industries. An LX Holdings representative stated, “Given the heightened internal and external uncertainties in the current business environment, we focused on promoting talent capable of preparing for the group’s future growth and transformation.” Aside from the dual role of CEO Noh Jin-seo at LX Hausys, no additional promotions were announced. #KooHyungMo #LXGroup #ManagementSuccession #ExecutivePromotion #StrategicPlanning #MarketIntelligence #TalentDevelopment #CorporateVentureCapital #InvestmentStrategy #BusinessGrowth
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- Korea Zinc Cancels Rights Offering, Choi Yoon-beom: "Stepping Down as Chairman, Apologies"
- Choi Yoon-beom, Chairman and CEO of Korea Zinc, issued a heartfelt apology during a press conference held at the Korea Chamber of Commerce and Industry in Seoul on the 13th, addressing concerns from the market, shareholders, and investors over the confusion caused by the recent public offering of new shares. He stated, “We will work on strengthening the independence of the board of directors and implementing measures to protect and include minority shareholders. We are committed to becoming a company that listens more closely to the voices of shareholders and the market.” Choi explained the reasons behind the decision to withdraw the public offering of new shares that was approved on the 30th of last month. He said, “Initially, the company aimed to increase the shareholder base by boosting the number of publicly traded shares through a rights issue open to both existing shareholders and the general public. The intent was to diversify the concentrated ownership structure stemming from a management dispute and to ultimately transition to a broader shareholder base, making the company more accessible to a wider group of shareholders and the public.” He added, “However, following the announcement of the rights issue, changes in market conditions, along with concerns from institutional investors, minority shareholders, and the market, created an environment that was not foreseeable by the company or the board at the time of the decision.” Choi emphasized the company's commitment to making its corporate governance more rational and aligned with global standards. He stated, “I will step down as the Chairman of the Board as soon as possible, allowing an outside director to take the role. In line with our goal of becoming a 'national company' and aiming to meet global standards as the world’s top non-ferrous metal company, we will appoint a foreign outside director to facilitate better communication and feedback from foreign shareholders and overseas investors.” He continued, “We will include measures in our bylaws to protect the rights of institutional and minority shareholders and to enhance their involvement in management. Additionally, we will implement quarterly dividends to provide regular income to shareholders, promoting stable cash flow. We will decide on dividends before the record date to enhance predictability and increase the company’s credibility.” #ChoiYoonBeom #KoreaZinc #PublicOffering #ShareholderRights #CorporateGovernance #MinorityShareholders #DividendPolicy #BoardIndependence #GlobalStandards #CorporateTransparency
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- GS E&C Sees Balanced Growth Across Residential, Infrastructure, and Plant; Huh Yoon-hong Strengthens Stability
- Huh Yoon-hong, CEO and President of GS Engineering & Construction (GS E&C), has achieved solid order performance in his first year at the helm, particularly across residential, infrastructure, and plant businesses, signaling progress in business portfolio diversification and organizational stabilization. According to GS E&C, the company met its new order target for the year by securing several major domestic and international contracts in the fourth quarter. It is estimated that the company recorded over KRW 14 trillion (US$ 10.1 billion) in new orders for the year. GS E&C's performance includes key contracts such as the KRW 712.4 billion (US$ 515 million) construction of LG Chem’s HVO plant and the KRW 520.5 billion (US$ 377 million) contract for the Eastern Subway Tunnel of Melbourne’s SRL (Suburban Rail Loop). By the end of the third quarter, GS E&C had achieved 97.4% of its annual order target of KRW 13.3 trillion (US$ 9.6 billion), surpassing it well before the year’s end. The SRL subway tunnel project holds particular significance, as it reflects the trust GS E&C has built in the Australian construction market. GS E&C made its initial entry into Australia in October 2021 with a KRW 2.7785 trillion (US$ 2 billion) contract for the Northeast Link (NEL) road project, a major endeavor connecting Melbourne’s northeastern ring road to the Eastern Freeway. Following the announcement of GS E&C’s new vision and core values in July 2024, Huh Yoon-hong made his first overseas visit to the NEL site in Australia, underlining his commitment to strengthening the company’s infrastructure business there. Huh has managed to rebound from the setbacks caused by the Gimpo District accident in 2022, significantly increasing new orders just one year later. GS E&C achieved KRW 12.41 trillion (US$ 9 billion) in new orders in 2020, followed by KRW 13.33 trillion (US$ 9.6 billion) in 2021, and surpassed its target by 22% in 2022 with KRW 16.74 trillion (US$ 12 billion). However, the company faced challenges in 2023, with new orders falling short of the target by nearly 30%, securing only KRW 10.1884 trillion (US$ 7.3 billion). The order composition in 2024 has shown balanced performance across key business segments. The company planned to secure KRW 5.4 trillion (US$ 3.9 billion) in residential projects, KRW 1.6 trillion (US$ 1.2 billion) in plant projects, and KRW 1.1 trillion (US$ 800 million) in infrastructure projects. By the third quarter, GS E&C had already secured KRW 5.14 trillion (US$ 3.7 billion) in residential orders, KRW 1.73 trillion (US$ 1.3 billion) in plant orders, and KRW 3.6 trillion (US$ 2.6 billion) in infrastructure. The residential business has seen strong order growth without any major setbacks, while the plant business has surpassed its target, driven by major contracts including the KRW 1.6 trillion (US$ 1.2 billion) Saudi Arabia Fadhili gas expansion project and recent orders from LG Chem. GS E&C’s infrastructure business also showed robust performance, boosted by the SRL project, with total new orders reaching KRW 880 billion (US$ 640 million). In new business ventures, GS E&C had planned to secure around KRW 2.6 trillion (US$ 1.9 billion) worth of contracts but exceeded this target with KRW 4.25 trillion (US$ 3.1 billion), including the KRW 1.8 trillion (US$ 1.3 billion) Oman Ghubrah 3 desalination project and the KRW 1.045 trillion (US$ 760 million) Brazil Olinos wastewater treatment project. Despite these achievements, challenges remain in the building construction and green business sectors, with new orders of KRW 1.25 trillion (US$ 910 million) and KRW 230 billion (US$ 170 million), respectively, against targets of KRW 1.85 trillion (US$ 1.3 billion) and KRW 700 billion (US$ 510 million). GS E&C has also shown a balanced approach between domestic and international orders. In 2021, the overseas order share was 28.4%, while by the third quarter of 2024, it had increased to 51.0%. The company swiftly accounted for the cost increases incurred during the downturn in 2023, and since early 2024 has recorded quarterly operating profits of over KRW 70 billion (US$ 51 million), with cost ratios in the low 90% range, setting a foundation for recovery. BNK Securities analyst Lee Sun-il noted that while the third-quarter operating profit of KRW 81.8 billion (US$ 59 million) fell slightly short of market expectations, GS E&C’s performance trend remains stable. The profitability across all business divisions has shown upward stabilization, and the diversified business portfolio has enabled a rapid rebound in new orders both domestically and internationally. Huh Yoon-hong has been steadily executing his strategy to establish a balanced business structure. He introduced a new corporate vision: "Building a safer and happier future through transparent trust and relentless innovation," emphasizing the importance of a stable business portfolio and sound internal management. Given the positive business outlook, Huh is expected to continue efforts to stabilize the organization quickly. Despite the broader construction industry facing challenges due to a prolonged downturn, GS E&C’s owner-led management under Huh Yoon-hong appears to be well-established, with no immediate concerns about leadership changes. In the previous year, GS Group made a sweeping executive reshuffle, promoting 50 executives, the largest in its history, including significant changes at GS E&C. The company promoted 23 executives, including Huh’s appointment as CEO, 15 new executive directors, three senior vice presidents, and several promotions within its subsidiary, Xi C&A. The company also reorganized its management structure, replacing over 20 division heads and restructuring the six-division, nine-department system into a more streamlined ten-department organization. #HuhYoonHong #GSEngineeringAndConstruction #StrongOrderPerformance #BusinessDiversification #AustraliaInfrastructure #NELProject #SRLTunnel #NewCorporateVision #StrategicManagement #ConstructionIndustry
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- Woori Financial's Super App Set for Battle: Will Yim Jong-yong’s 'New WON' Close the Digital Gap as a Latecomer?
- Yim Jong-yong, Chairman of Woori Financial Group, has garnered attention in the financial sector for the market's assessment of the results of his focus on strengthening digital competitiveness since taking office. The launch of the group's super app "New WON," which consolidates the core functions of Woori Financial's affiliates, is now imminent. Amidst being evaluated as a latecomer in the super app market, considered a critical battleground in the industry, Yim aims to make a comeback with New WON. According to Woori Financial on the 12th, the group’s super app "New WON" is set to officially launch on the 28th. The company began internal testing of New WON from the previous day in preparation for the launch. A super app is a platform that integrates services from financial group affiliates into a single app. Major financial groups view the competitiveness of super apps as a key task for customer acquisition and are making various efforts to increase their monthly active users (MAU). Woori Financial plans to launch its super app by incorporating affiliate services into its existing Woori Bank app, "Woori WON Banking," which will be rebranded as New WON. Woori Financial is the last among the four major financial groups (KB, Shinhan, Hana, Woori) to introduce a super app. KB Financial expanded the KB Kookmin Bank app "KB Star Banking" into a super app by integrating affiliate services. Shinhan Financial launched "Super SOL" last year, which consolidates major affiliate services separately from its bank app "SOL Bank." Hana Financial has also integrated affiliate services into its Hana Bank app "Hana OneQ," similar to KB Financial's approach. The delayed launch of Woori Bank’s super app has led to its lagging behind in terms of user acquisition in the bank app competition. As of the end of September, the MAU for Woori Bank's "Woori WON Banking" was recorded at 8.33 million. This is behind KB Kookmin Bank's "KB Star Banking" and Shinhan Bank's "SOL Bank," both of which have surpassed 10 million users. "KB Star Banking" became the first mobile banking app to surpass 10 million MAU among commercial banks, reaching over 12.62 million MAU by the end of September. This has helped increase KB Financial Group’s total app MAU to nearly 30 million, with 29.89 million as of the end of September. Shinhan Financial has also rapidly increased its total app MAU, led by SOL Bank. In Q3, Shinhan Financial's total app MAU reached 27.47 million. Shinhan Financial, confident in its digital competitiveness, is the only one among the four major financial groups to disclose efficiency metrics related to digital competitiveness on a quarterly basis. The importance of platform development for financial institutions has increased significantly due to the rise in non-face-to-face transactions and digital transformation sparked by the COVID-19 pandemic. As of the end of September, the proportion of customers using new services through KB Kookmin Bank’s digital channels was 64%, up 5 percentage points from a year earlier (59%). Considering that KB Kookmin Bank is a leader in retail finance among banks, non-face-to-face transactions are seen as an irreversible trend. The fact that internet banks significantly lead traditional commercial banks in terms of acquiring non-face-to-face customers also underscores the importance of enhancing platform competitiveness. KakaoBank’s average monthly MAU in Q3 reached 18.74 million, a record high. This helped KakaoBank significantly increase its fees and platform revenue, leading to its highest-ever quarterly net profit. Yim has been recognized for his efforts to enhance digital competitiveness, understanding the importance of platform businesses from the early days of his tenure. One prominent example of his efforts is the strengthening of digital governance. Since early this year, Woori Financial has shifted from a model where IT operations were outsourced to specialized subsidiaries to a system where each affiliate handles IT operations directly. IT personnel from Woori FIS, who were involved in projects for Woori Bank and Woori Card, were transferred to Woori Bank and Woori Card respectively in January. At the time, Woori Financial expected that this restructuring would reduce development time by up to 50% and decrease redundant tasks. Yim's experience and communication skills, honed during his tenure as Chairman of NH NongHyup Financial Group and as Chairman of the Financial Services Commission, were instrumental in securing agreements among the subsidiaries. The reorganization of Woori Financial’s governance had faced numerous hurdles, including issues with the division of responsibilities and labor agreements between Woori FIS and Woori Bank/Woori Card, and had failed to make progress despite multiple discussions over the past decade. In his New Year address, Yim highlighted digital capability enhancement as one of the core management strategies, stating, "We will strengthen our digital IT competitiveness," and added, "Following the governance restructuring in early January, we will achieve swift stabilization and proactively respond to new digital technologies." Woori Financial has also set plans to include the mobile trading system (MTS) of Woori Investment Securities in its super app to bolster its competitiveness following the launch of Woori Investment Securities in August. Ok Il-jin, Vice President of Woori Financial’s Digital Innovation Division, mentioned during the Q3 earnings conference call, “We aim to launch the MTS by the end of this year,” and added, “We plan to integrate it into the unified super app centered around Woori WON Banking by Q1 2025.”
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- Choi Cheol-gon’s Selective Focus in China Pays Off; Hopes Rise with Economic Stimulus Policies
- Choi Cheol-gon, CEO of HD Hyundai Construction Equipment, is driving a turnaround in the Chinese market through a focused "select and concentrate" strategy. Amid signs that the Chinese government is implementing aggressive domestic stimulus measures to counteract export slowdowns, HD Hyundai Construction Equipment anticipates an accelerated recovery in its China business. According to HD Hyundai Construction Equipment, while the company continues to face challenges in the North American and European markets, a clear rebound is evident in China. In the third quarter, sales in China reached KRW 49.2 billion (US$ 35.4 million), a 45% increase from the same period last year and a 7% increase from the second quarter of 2024. In contrast, sales in North America fell by 11% and in Europe by 15%. The growth rate in China also significantly outpaced other regions such as India (14%) and the domestic market (21%). The share of sales from China has been increasing, from 4% in the third quarter of 2023 to 5% in the second quarter of 2024, and rising to 6% in the third quarter of 2024. HD Hyundai Construction Equipment attributes the sales growth to improved demand for wheeled and mini excavators (MEX), as well as increased sales of ultra-large equipment (125T). The company has pursued a selective strategy in the struggling Chinese construction machinery market, scaling down its operations while focusing on sales of large equipment. Recently, the company reduced the size of its Chinese subsidiary and recouped some of its capital. On October 30, it completed a capital reduction for HD Hyundai China Investment Co., lowering the capital from KRW 186.2 billion (US$ 134 million) to KRW 95 billion (US$ 68.4 million), securing liquidity of about KRW 90 billion (US$ 65 million). However, this does not indicate a weakened commitment to the Chinese market. In September, the company enhanced its local operations by hosting customer events for ultra-large equipment and delivering its 125-ton excavator in China, signaling continued business focus. Choi Cheol-gon stated during these events, "We will do our utmost to provide quality service, earning the trust of customers who choose our products." The company also signed an MOU to establish a service hub near a mining site in Xinjiang, providing residential facilities for parts and service staff, and met with key local dealers to discuss market conditions and growth strategies. In March, Choi organized a VIP customer event in China, directly overseeing sales efforts for ultra-large excavators. During this time, HD Hyundai Construction Equipment delivered a 125-ton excavator to a key customer, China Mining Construction Co., and secured a commitment for three additional units. Choi, who refers to himself as the company’s "No. 1 salesperson," visited clients directly to showcase product quality and conducted market research on autonomous driving, remote control, and unmanned technology for mining equipment in China. In a strategic partnership formed in March, the company also collaborated with Tongli, China’s leading wide dump truck manufacturer, to enhance sales synergy between dump trucks and ultra-large equipment. HD Hyundai Construction Equipment is not solely focused on ultra-large equipment. It is also addressing growing demand for standard wheeled excavators, leading to overall performance improvements. The company has strengthened its maintenance services for wheeled excavators through an extensive dealer network and is actively working to boost aftermarket sales. Moreover, HD Hyundai Construction Equipment has continued to demonstrate its interest in the Chinese market by organizing three visits for major domestic suppliers to local construction equipment companies in China throughout the year. China’s aggressive economic stimulus measures, implemented in response to fears of an export slowdown after former President Donald Trump’s re-election, may provide favorable conditions for the company’s recovery in the region. On October 8, China announced a plan to inject approximately KRW 2,000 trillion (US$ 1.44 trillion) in central government funds over the next five years to address chronic local government debt issues and support the real estate sector. The reduction in local government debt burden is expected to increase their capacity for economic stimulus. In addition, following a stimulus package in September, China announced an additional support package worth KRW 339 trillion (US$ 244 billion) in October for its real estate "whitelist" project. HD Hyundai Construction Equipment has been waiting for these economic measures to improve its performance in China. The company had achieved record sales in the Chinese construction machinery market in 2021, but the prolonged zero-COVID policy and the absence of stimulus measures in 2022 caused a sharp decline in equipment demand and financial performance. Gross Research positively assessed HD Hyundai Construction Equipment's ability to respond to the increasing demand from China’s economic stimulus, citing its strong sales network that once captured a high market share in the region. During its third-quarter earnings call in October, HD Hyundai Construction Equipment expressed optimism, stating, "As China’s economic stimulus measures begin to take effect, we are seeing a gradual increase in sales, and we expect further improvement with increased cash flow." A company representative added, "We are seeing signs of a moderate recovery in the Chinese construction equipment market in the second half of this year. To capitalize on government-led stimulus measures, we plan to supply market-tailored products, including ultra-large, compact, and wheeled excavators, while strengthening our sales network." #HDHyundaiConstructionEquipment #ChoiCheolGon #ChinaMarket #SalesRecovery #EconomicStimulus #Excavators #UltraLargeEquipment #MarketStrategy #ConstructionMachinery #GrowthOutlook
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- Samsung to Launch 'Triple Foldable' Next Year, Roh Tae-moon Targets Huawei
- Roh Tae-moon, head of Samsung Electronics' MX division, has officially launched the development of a triple-folding "Triple Foldable" smartphone. Although China’s Huawei was first to release a triple-foldable smartphone, the "Mate XT," quality issues, such as weak durability, have surfaced. As a result, Samsung Electronics is reportedly focusing on developing a high-quality triple-foldable smartphone. According to insights from the smartphone industry, Samsung’s recent third-quarter earnings announcement on October 31 hinted that the new “form factor” smartphone, expected to be unveiled next year, is likely to be a triple-foldable model. Samsung recently filed a patent with the U.S. Patent and Trademark Office for this new triple-foldable smartphone. Foreign media have reported that, considering the initial patent application was filed in 2021, a 2024 release appears likely. The U.S. IT media outlet Android Police reported that "Samsung is almost certain to launch a triple-foldable smartphone next year." Roh is reportedly focusing on leveraging Samsung’s advanced hardware technology to develop a highly refined product, aiming to outperform Huawei’s triple-foldable smartphone, which was the first to market. Samsung’s patent emphasizes strong durability, addressing the issues that plagued Huawei’s product. According to the patent, the device's main body integrates an adhesive layer and a support plate made from stainless steel or glass, designed to keep the screen stable when folded or unfolded. A “shield” to prevent foreign particles from adhering and a cushion system to absorb potential impacts are also included to enhance durability. The U.S. IT media outlet Android Headlines analyzed that “Samsung is likely to use advanced technology to make the triple-foldable smartphone more stable and durable.” In September, Huawei’s Mate XT, which launched exclusively in China, received negative feedback from consumers due to durability issues. JerryRigEverything, a YouTuber known for durability tests, examined the Mate XT acquired in China and concluded it was “vulnerable” to external impacts. He highlighted that the plastic layer on the display could be easily scratched with a fingernail. Additionally, the hinge area of the Mate XT became stiff and hard to fold after being dropped in dirt, and it reportedly broke when pressure was applied to fold the smartphone with debris stuck in it. He noted, “When attempting to fold the Mate XT in the opposite direction, heat could be felt from the display and the vibration motor.” Samsung's recently launched Galaxy Z Fold Special Edition (SE) has seen early sales success with its slimmer design, improved camera, and reduced display crease, providing a more refined experience than the Galaxy Z Fold 6, which launched in July. The Galaxy Z Fold SE sold out in 10 minutes during its third sales round in South Korea, while the Galaxy Z Fold SE’s China version, W25, sold out within three hours. This contrasts with a 9% drop in sales of the Galaxy Z Fold 6 in the first three months (July–September) compared to the previous generation. In contrast to the Galaxy Z Fold 6, which was criticized for lacking significant improvements over its predecessor, multiple foreign media outlets praised the Galaxy Z Fold SE for addressing user demands. IT media outlets like SamMobile and PhoneArena noted that the Galaxy Z Fold SE improved upon the screen crease issue and was slimmer and lighter. Samsung is expected to apply even more advanced hardware technology than that used in the Galaxy Z Fold SE to the triple-foldable smartphone. Additionally, U.S. regulations on Huawei, strengthened since the Trump administration, are expected to impact Huawei’s sales of triple-foldable products, which analysts see as advantageous for Samsung. Currently, Huawei has only launched the Mate XT in China, although it is expected to begin global sales in the first quarter of next year. However, there is increasing regulatory pressure against Huawei products in the North American market. During his first term, Trump issued an executive order prohibiting the sale and use of telecommunications equipment deemed a threat to national security, effectively banning the import of all products containing Huawei technology. At that time, the U.S. Secretary of Commerce included all 68 Huawei subsidiaries on the sanctions list. An industry insider commented, “U.S. regulations against China are expected to intensify, and smartphones with advanced semiconductors are no exception. Considering Trump’s strong stance against Huawei during his first term, it is unlikely that these regulations will ease.” #Samsung #TripleFoldable #smartphone #Huawei #MateXT #durability #GalaxyZFoldSE #patents #USChinaRegulations #RohTaeMoon
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- Celltrion’s Seo Jung-jin Pushes U.S. Sales, Set to Harvest First New Drug Zympentra Next Year
- Seo Jung-jin, Chairman of Celltrion Group, is busy traveling between South Korea and the United States to ensure the successful establishment of Zympentra, an autoimmune treatment, in the U.S. market. Celltrion launched Zympentra in the U.S. more than seven months ago but has yet to achieve significant sales performance. As Seo personally leads efforts in the U.S. and has successfully listed Zympentra with Pharmacy Benefit Managers (PBMs), there is growing anticipation that the new drug’s market impact may become evident starting next year. According to a comprehensive review by Business Post on November 11, Seo Jung-jin has been alternating between visits to South Korea and the U.S. alongside Celltrion’s sales team, essentially taking on a frontline role in the sales strategy. Some Celltrion employees have commented that Seo appears to be practically residing in the U.S. on a long-term basis. A company representative confirmed, "While we cannot detail his exact schedule, it is known that Chairman Seo has been traveling frequently between the two countries following Zympentra’s launch in the U.S." Seo has actively participated in American medical conferences and has received daily reports on Zympentra’s sales activities, demonstrating his direct involvement. His attendance at the "2024 American Gastroenterological Association" in Pennsylvania at the end of October, where Celltrion presented the global Phase 3 clinical trial results of Zympentra and Seo met with leading physicians, serves as a key example of his engagement. The American Gastroenterological Association (AGA) is a prominent medical society with over 90 years of history, attended by experts from around the world who share the latest research and clinical information on gastrointestinal diseases. Celltrion has also intensified its marketing efforts in the U.S., where direct-to-consumer advertising of prescription drugs is allowed. Since October, the company has launched online and TV advertisements across the country and placed promotional materials for Zympentra in over 500 medical institutions. These efforts by Seo and Celltrion underscore their aim for the successful establishment of Zympentra, a newly launched drug, in the American market. Celltrion’s U.S. subsidiary began building its distribution network in 2022 by directly marketing Vegzelma, a biosimilar for the treatment of metastatic colorectal and breast cancers. Vegzelma, a biosimilar of the original drug Avastin, received approval from the U.S. FDA in September 2022. In March 2023, Celltrion started selling Zympentra, with Seo actively involved in strengthening the distribution network to support its market penetration. Zympentra, Celltrion’s first internally developed biobetter (an improved biologic drug) to receive new drug approval from the FDA in October 2023, is expected to play a key role in securing the company’s long-term profitability. Known as Remsima SC in Europe, Zympentra is a subcutaneous formulation improved from an intravenous version, and it was approved as a new drug in the U.S. under the new drug application (NDA) pathway. Zympentra holds a significant strategic position for Celltrion as its pricing can be set independently, unlike biosimilars. The company secured formulation patents for Zympentra, set to expire in 2038, and anticipates additional protection with the registration of administration method patents, extending up to 2040. However, concerns remain due to the slow visibility of sales results for Zympentra. According to market analysts, Zympentra generated KRW 8.4 billion (approx. USD 6.06 million) in cumulative sales in the U.S. from its March launch through the third quarter of 2023, with Q3 sales estimated at KRW 6.4 billion (approx. USD 4.62 million), falling short of market expectations. Celltrion’s annual sales target for Zympentra is projected at KRW 250 billion (approx. USD 180 million), which seems difficult to achieve this year. Lim Myung-sun, an analyst at DB Financial Investment, noted in a report, “The Q3 sales for Zympentra were somewhat disappointing following the revision of the annual sales target. However, given that Celltrion is navigating the U.S. new drug distribution market for the first time, it is premature to be overly discouraged.” Despite the slow start, there remains optimism that Seo’s direct involvement will yield results in the coming year. Celltrion completed the listing of Zympentra with the major U.S. PBMs in October, a key step in securing its place in the U.S. pharmaceutical market. PBMs play a crucial intermediary role between insurers, pharmacies, and manufacturers, negotiating drug prices and rebates on behalf of insurers, and managing formularies that determine priority coverage for prescription medications. Given the private health insurance model in the U.S., physicians tend to prescribe drugs that minimize out-of-pocket costs for patients or those that offer higher reimbursements from insurers or pharmacies. A Celltrion representative shared with Business Post, “We are witnessing a steep increase in Zympentra’s prescription volume in the U.S., with even faster growth in wholesale shipments. As we ramp up marketing across the country, we expect to see accelerated interest and preference among patients.” The securities industry also anticipates a rise in Zympentra’s sales next year. Kim Hye-min, an analyst at KB Securities, stated, “Considering the expanded coverage for Zympentra under major PBMs from November, a more suitable approach would be to assess its performance next year rather than this year.” Lee Sun-kyung, an analyst at SK Securities, commented, “While there are concerns in the market about the slower-than-expected sales growth of Zympentra, the drug’s long-term growth potential remains strong, especially with its listing under the top three U.S. PBMs in October, paving the way for expanded insurance reimbursement from November.” #Celltrion #SeoJungJin #Zympentra #biopharmaceuticals #FDAapproval #PBM #USmarket #RemsimaSC #biosimilar #biobetter #pharmaceuticalsales #marketing
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- Hyundai Department Store Group’s Bold Value-Up Plan Boosts Chung Ji-sun’s Dividends by Over 50%
- Thank you for the clarification. I’ll use **Chung Kyo-sun** for 정교선 in all future translations. Here’s the revised translation: --- Hyundai Department Store Group’s holding company, Hyundai GF Holdings, along with four other affiliates, has announced plans to expand shareholder returns, a move expected to significantly benefit Chairman Chung Ji-sun. Chung has increased his stake in Hyundai GF Holdings as the group transitions to a single holding company structure centered on Hyundai GF Holdings. According to industry sources as of November 11, Hyundai Department Store Group’s recently announced value enhancement plan, “Value-Up,” is projected to yield substantial financial benefits for Chung Ji-sun and other family members of the group’s owner family. In 2022, Chung received KRW 14.3 billion (approx. US$10.3 million) in dividends from Hyundai GF Holdings, Hyundai Department Store, and Hyundai Green Food. If dividends are increased as planned, Chung’s dividend income from these three entities is expected to reach around KRW 23.4 billion (approx. US$16.9 million), an increase of over 1.5 times. Looking at each affiliate’s plans, Hyundai GF Holdings announced it will issue semiannual dividends of over KRW 10 billion (approx. US$7.2 million) starting next year, independent of year-end dividends. The goal is to increase annual dividends to KRW 50 billion (approx. US$36.1 million) by 2027, raising the shareholder return ratio to over 80%. The shareholder return expansion is seen as favorable to major shareholders, as minority shareholders own only 19.97% of Hyundai GF Holdings, as of the first half of this year. Hyundai GF Holdings was established as a remaining entity after Hyundai Green Food underwent a corporate split in March 2023, with the new name replacing the former Hyundai Green Food. Until 2022, Hyundai GF Holdings (previously Hyundai Green Food) had a minority shareholder ownership ratio of 42.9%, while Chung’s stake was 12.7%. However, last year, Chung’s ownership increased, and minority ownership dropped by more than half as he acquired shares of Hyundai Green Food and Hyundai Department Store through a public tender offer. As of the first half of this year, Chung’s stake in Hyundai GF Holdings stands at 39.7%. In 2022, he received KRW 2.6 billion (approx. US$1.9 million) in dividends from Hyundai GF Holdings, which rose nearly fivefold to KRW 12.4 billion (approx. US$8.9 million) last year. In 2022, Vice Chairman Chung Kyo-sun received KRW 9.1 billion (approx. US$6.6 million), and Honorary Chairman Chung Mong-geun received KRW 2.6 billion (approx. US$1.9 million) in dividends from Hyundai GF Holdings. Of the total KRW 31.2 billion (approx. US$22.5 million) paid in dividends last year, KRW 24.1 billion (approx. US$17.4 million) went to the owner family. If Hyundai GF Holdings achieves its goal of raising annual dividends to KRW 50 billion, Chairman Chung is expected to receive around KRW 20 billion (approx. US$14.4 million) in dividends, with Vice Chairman Chung Kyo-sun and Honorary Chairman Chung Mong-geun projected to receive KRW 14.6 billion (approx. US$10.5 million) and KRW 4.2 billion (approx. US$3 million), respectively. Hyundai Department Store also introduced similar shareholder return plans, announcing that it would pay semiannual dividends of over KRW 10 billion starting next year and increase annual dividends to KRW 50 billion by 2027. The ownership structure of Hyundai Department Store differs from Hyundai GF Holdings, with approximately 51% of shares held by minority shareholders. To increase his control over the holding company Hyundai GF Holdings, Chung reduced his ownership stake in Hyundai Department Store from 17.09% in 2022 to 1.77% through a public tender offer. Chung received KRW 500 million (approx. US$361,000) in dividends from Hyundai Department Store last year, which distributed a total of KRW 28.4 billion (approx. US$20.5 million) in dividends. If Hyundai Department Store raises annual dividends to KRW 50 billion by 2027, Chung’s dividend income from Hyundai Department Store is expected to be around KRW 900 million (approx. US$649,000). As of the first half of this year, neither Vice Chairman Chung Kyo-sun nor Honorary Chairman Chung Mong-geun holds shares in Hyundai Department Store. In 2022, Chung received KRW 5.2 billion (approx. US$3.7 million) in year-end dividends. Although his dividends from Hyundai Department Store dropped to about one-tenth of that amount due to reduced ownership, the increase in dividends from Hyundai GF Holdings by KRW 10 billion (approx. US$7.2 million) means his overall dividend income remains strong. Hyundai Green Food, which was newly established as a standalone entity following Hyundai GF Holdings’ transition to a holding company, also plans to expand shareholder returns. Hyundai Green Food announced plans to issue semiannual dividends of over KRW 10 billion starting next year and to raise annual dividends to KRW 20 billion (approx. US$14.4 million) by 2027. Last year, Hyundai Green Food paid KRW 11 billion (approx. US$7.9 million) in dividends. Hyundai Green Food’s shareholder structure is similar to Hyundai GF Holdings, with a relatively low minority shareholder ratio of 24% as of the first half of this year. Hyundai GF Holdings is the largest shareholder of Hyundai Green Food, with a 38.1% stake, followed by Chairman Chung Ji-sun as the second-largest shareholder with 12.7%. Vice Chairman Chung Kyo-sun and Honorary Chairman Chung Mong-geun sold all their shares in Hyundai Green Food during the public tender offer by Hyundai GF Holdings. Chung received KRW 1.4 billion (approx. US$1 million) in dividends from Hyundai Green Food last year. If Hyundai Green Food raises annual dividends to KRW 20 billion, Chung is expected to receive around KRW 2.5 billion (approx. US$1.8 million) in dividends. #HyundaiDepartmentStoreGroup #HyundaiGFHoldings #ChungJiSun #ChungKyoSun #shareholderreturns #dividends #HyundaiGreenFood #ValueUp #ownershipstructure #corporategovernance
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- Choi Ik-hoon Leads HDC Hyundai Development to Over KRW 1 Trillion in Urban Redevelopment Orders
- HDC Hyundai Development Company (HDC) CEO Choi Ik-hoon is on track to exceed KRW 1 trillion (USD 721.1 million) in new urban redevelopment orders for the first time in two years. In his final year as CEO, Choi significantly raised the new order target, demonstrating his commitment to securing a steady stream of projects. Urban redevelopment is expected to play a substantial role in meeting this target and increasing the backlog of orders. According to the Yongdu-dong 3 Redevelopment Promotion Zone Committee on the 8th, a vote will be held on the 9th to select the consortium of HDC Hyundai Development and Gyeryong Construction as the contractor for the redevelopment project. The project, located at Yongdu-dong, Jung-gu, Daejeon, will encompass a total of 1,991 residential units and additional community facilities, spanning from three basement floors to 35 above-ground floors. The HDC Hyundai Development and Gyeryong Construction consortium was the sole participant in two previous bidding rounds for this project. The total construction cost is estimated at KRW 601.9 billion (USD 433.9 million), with HDC Hyundai Development expected to take on about 65% of the project, equating to approximately KRW 391.2 billion (USD 282.1 million) in new orders. HDC Hyundai Development had already secured KRW 257.3 billion (USD 185.5 million) from the Gaya-dong 1 Redevelopment Project in Dong-gu, Daejeon in June of this year. In July, it won the contract for the Hyundai Apartment Reconstruction Project in Jangandong, Dongdaemun-gu, Seoul, valued at KRW 274.2 billion (USD 197.7 million), and on November 2, it was awarded the Jeonju Military Manpower Administration Area Redevelopment Project in Jeonju, North Jeolla Province, worth KRW 410.5 billion (USD 296.1 million). With a total of KRW 942 billion (USD 679.3 million) in new urban redevelopment orders to date, the Yongdu-dong 3 project’s expected revenue would bring HDC Hyundai Development’s 2023 total to KRW 1.3332 trillion (USD 961.3 million). With this contract, Choi Ik-hoon is set to surpass KRW 1 trillion (USD 721.1 million) in new urban redevelopment orders within two years. In 2022, HDC Hyundai Development obtained KRW 1.0307 trillion (USD 743.3 million) in urban redevelopment projects. Choi is also eyeing additional orders in Seoul to boost the year’s performance even further. A major urban redevelopment project expected to add to HDC Hyundai Development’s 2023 order book is the Mia 9-2 Housing Reconstruction Project in Seoul. Located in Mia-dong, Gangbuk-gu, Seoul, the Mia 9-2 Project will involve the construction of 22 residential buildings and associated community facilities, spanning six basement floors to 25 above-ground floors, with a total project cost of KRW 600.5 billion (USD 433.1 million). The Mia 9-2 Redevelopment Committee will close bidding on the 11th for a negotiated contract. Bidding qualifications are limited to HDC Hyundai Development and Hyundai Construction, as both companies attended the initial project briefings, making their consortium a likely candidate. With the Mia 9-2 Project’s total cost in mind, HDC Hyundai Development could add around KRW 300 billion (USD 216.3 million) in new orders, potentially raising its total 2023 urban redevelopment orders to around KRW 1.6 trillion (USD 1.153 billion). This year has provided Choi with an opportunity to move beyond last year’s lower performance, in which only one contract—the Samsung Apartment Reconstruction Project in Yeongdeungpo-gu, Seoul, valued at KRW 179.4 billion (USD 129.4 million)—was secured. HDC Hyundai Development’s urban redevelopment orders reached KRW 1.5 trillion (USD 1.082 billion) in 2021, before Choi’s tenure. In preparation for his term’s end in March next year, Choi set an ambitious target for new orders this year to expand the company’s backlog significantly. HDC Hyundai Development set this year’s new order target at KRW 4.8529 trillion (USD 3.5 billion), raising the bar by almost KRW 220 billion (USD 158.6 million) from last year’s goal of KRW 2.6784 trillion (USD 1.93 billion), which had been exceeded by KRW 596.8 billion (USD 430.3 million). However, as of the third quarter, HDC Hyundai Development achieved only KRW 2.9971 trillion (USD 2.16 billion), or 61.8% of the annual target, leaving close to KRW 1.9 trillion (USD 1.37 billion) to be secured in the remaining months. Urban redevelopment projects are expected to play a crucial role in helping Choi achieve the target. If the Jeonju Military Manpower Administration project from the fourth quarter, the Yongdu-dong 3 redevelopment project, and the anticipated Mia 9-2 reconstruction project are all included, these would contribute around KRW 1 trillion (USD 721.1 million) towards meeting the goal. As orders for external housing projects decline, continued success in urban redevelopment is anticipated to become even more critical. Despite expanding self-developed housing, the stable nature of urban redevelopment orders remains essential for the company. HDC Hyundai Development’s external housing project order backlog has decreased from KRW 22.6584 trillion (USD 16.34 billion) in 2021 to KRW 16.1607 trillion (USD 11.65 billion) by the end of the third quarter this year. Its share of the company’s overall backlog has also declined, from 67.4% to 53.2%. Given the decline in HDC Hyundai Development’s total order backlog, Choi needs new orders to offset this drop. The company’s total order backlog has decreased from KRW 33.6348 trillion (USD 24.25 billion) in 2021 to KRW 30.4045 trillion (USD 21.92 billion) by the end of the third quarter this year. Several large urban redevelopment projects, including “Dunchon Jugong Reconstruction” (KRW 1.0575 trillion, USD 762.4 million), “Daejeon Sungori Sam Reconstruction” (KRW 273.2 billion, USD 197 million), “Jamsil Jinju Reconstruction” (KRW 328.4 billion, USD 236.8 million), “Hong Eun District 13 Redevelopment” (KRW 229.2 billion, USD 165.3 million), and “I-mun District 3 Redevelopment” (KRW 628.7 billion, USD 453.5 million), are set to be completed sequentially by the end of next year. Recently, a KRW 200 billion-plus urban redevelopment project was canceled for HDC Hyundai Development. On October 25, HDC Hyundai Development announced that the Banghwa 6 Housing Reconstruction Association (Banghwa 6 Reconstruction Association) informed the company of the contract termination on that day, totaling KRW 219.8 billion (USD 158.5 million). HDC Hyundai Development was selected as the contractor for the Banghwa 6 redevelopment project in July 2019 and signed an initial contract of KRW 141 billion (USD 101.7 million) with the association in June 2020. The construction cost was later increased to KRW 219.8 billion (USD 158.5 million) in October last year, leading to disagreements with the association over additional cost adjustments. HDC Hyundai Development reportedly does not accept the association’s termination decision and is preparing for legal action, with the intention of exercising its lien over parts of the construction site. #HDC #HyundaiDevelopment #UrbanRedevelopment #ChoiIkHoon #ConstructionProjects #KoreanConstruction #Mia9-2Project #YongduDong3 #ProjectOrders #RealEstateDevelopment
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- Samsung Financial CEOs on Edge Amid Electronics Shakeup: 'Only Strong Performance Can Secure Their Positions'
- A wave of personnel changes expected to hit Samsung Electronics may extend to Samsung Group’s financial subsidiaries, driven by concerns over the company’s lagging performance. Speculation is mounting that Chairman Lee Jae-yong could implement a sweeping reshuffle of executives at Samsung Electronics, citing disappointing results. The potential ripple effect could reach Samsung’s financial affiliates as well. However, since most of the key executives at Samsung’s financial subsidiaries were newly appointed last year and have shown strong performance this year, significant changes appear less likely. As of November 8, there is speculation among insiders that the upcoming reshuffle of executives at Samsung Electronics could serve as a benchmark for changes at the financial affiliates. Typically, executive appointments at Samsung’s electronics subsidiaries precede those at financial subsidiaries, with similar personnel policies and criteria applied across the board. In the past, for example, Samsung Electronics announced a limited reshuffle focused on stability on November 27, followed by a similar stability-focused reshuffle for financial subsidiaries on December 1. Last year, Hong Won-hak, CEO of Samsung Fire & Marine Insurance, was appointed as CEO of Samsung Life Insurance, considered the centerpiece of Samsung’s financial arm. Lee Moon-hwa, then Vice President of Samsung Life, filled the vacancy left by Hong at Samsung Fire & Marine Insurance. Park Jong-moon, Head of Asset Management at Samsung Life, was named CEO of Samsung Securities, while Kim Dae-hwan of Samsung Card and Seo Bong-kyun of Samsung Asset Management retained their positions. This year, expectations for a major reshuffle at Samsung Electronics are particularly high. With mounting pressure to revitalize Samsung Electronics after losing its technological edge to competitors, calls for significant personnel changes are growing. If a sweeping generational shift takes place in the leadership of Samsung Electronics as a signal to elevate organizational vigilance, similar criteria could be applied to reshuffle executives at Samsung’s financial subsidiaries. However, given the strong performance of Samsung’s financial affiliates this year, the likelihood of major changes remains relatively low. Compared to the underperformance of the electronics division, the financial subsidiaries have posted solid results. Under Samsung Group’s long-standing performance-based management principle, there seems to be little reason to replace the heads of financial affiliates. Samsung Life Insurance reported consolidated net income attributable to shareholders of KRW 1.3685 trillion (US$993.8 million) in the first half of this year, a 40.5% increase year-on-year, driven by strong investment gains. Samsung Fire & Marine Insurance also posted an 8.2% year-on-year increase in net income, reaching KRW 1.3124 trillion (US$953.4 million), boosted by improved investment returns. Samsung Securities and Samsung Card saw their first-half net income rise by 26.5% and 25%, respectively, while Samsung Asset Management’s net income increased by 15.3%. The combined first-half net income of the five Samsung financial subsidiaries amounted to KRW 3.243 trillion (US$2.36 billion): Samsung Life Insurance (KRW 1.09 trillion), Samsung Fire & Marine Insurance (KRW 1.2772 trillion), Samsung Securities (KRW 472.1 billion), Samsung Card (KRW 361.6 billion), and Samsung Asset Management (KRW 42.2 billion). This total surpassed the net income of KB Financial Group, the top among the "Big 4" financial groups, by nearly KRW 500 billion, despite the absence of a banking unit. A source within Samsung Financial stated, "Personnel decisions are always uncertain until they are officially announced. Internally, we expect the reshuffle to take place around the usual time, but nothing is definite." #SamsungGroup #SamsungElectronics #FinancialAffiliates #CEOReshuffle #LeeJaeYong #SamsungLifeInsurance #SamsungFireAndMarine #SamsungSecurities #SamsungCard #SamsungAssetManagement #CorporatePerformance
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- Daewoo E&C Returns to Owner-Management to Overcome Downturn
- Daewoo Engineering & Construction (Daewoo E&C) is set to return to an owner-management system for the first time in 14 years, as its parent company, Jungheung Group, aims to strengthen its ownership and directly address performance challenges. According to construction industry insiders on the 8th, Daewoo E&C plans to announce its regular executive appointments around mid-November, with a focus on reinforcing the owner-management structure. In December, Daewoo E&C’s board will formally appoint Kim Bo-hyun, Executive Vice President, as CEO. Kim is the son-in-law of Jungheung Group Chairman Jung Chang-sun and the brother-in-law of Jungheung Group Vice Chairman Jung Won-ju. Upon acquiring Daewoo E&C, Jungheung Group had promised the labor union it would ensure independent management by selecting Daewoo E&C executives as CEOs for the three years following the acquisition. In line with this commitment, Jungheung appointed Baek Jeong-wan, then Head of Housing and Construction, as CEO in February 2021. Although Kim is set to become CEO at the December board meeting, Baek will retain his presidency until his term ends in February 2024. The timing of Kim’s appointment signals Jungheung Group’s intent to fully establish an owner-management system as soon as the promised three-year period ends. This marks the first time in almost 15 years since a member of the owner’s family held the CEO position at Daewoo E&C, the last instance being in January 2010 when former Kumho Asiana Group Chairman Park Sam-gu stepped down. Jungheung Group has consistently worked to establish its ownership at Daewoo E&C since the acquisition. During the acquisition phase, Kim Bo-hyun took a leading role as head of the acquisition team, engaging directly with the labor union and overseeing negotiations. Jung Won-ju assumed the position of Chairman at Daewoo E&C as well. The entry of the third generation of owners into Daewoo E&C has continued. Kim’s sons, Kim I-yeol and Kim I-jun, initially worked at Jungheung Construction and joined Daewoo E&C shortly after the acquisition in 2022. Jung Won-ju’s son, Jung Jeong-gil, also moved from Jungheung Construction to Daewoo E&C. Born in 1998, Jung entered Jungheung Construction as an assistant manager in 2021 and became a manager upon joining Daewoo E&C in 2022. He was promoted to Executive Director in the November 2023 personnel reshuffle. Jung’s rapid rise and his current role as Head of North American Development, a key area for Daewoo E&C, indicate he is undergoing managerial training. Given that Jungheung Group plans to implement a full-scale owner-management system at Daewoo E&C starting in 2025, the upcoming executive reshuffle is expected to be substantial. The initial agreement with the labor union guaranteed that less than 50% of executives could be appointed from outside Daewoo E&C. With the three-year term coming to an end, it is likely that the executive team will see significant restructuring to strengthen the owner family’s control. Daewoo E&C stated on the 5th that CEO Baek’s resignation decision was made to “establish a foundation for organizational stability and accountable management.” Since the disbandment of the Daewoo Group in 2000, Daewoo E&C has faced numerous challenges. The company was acquired by Kumho Asiana Group in 2006, but Kumho struggled to sustain it, ultimately selling Daewoo E&C to the Korea Development Bank (KDB) in 2010. KDB then sold Daewoo E&C to Jungheung Group in 2021. Daewoo E&C has reported a severe decline in performance, with its operating profit halved year-over-year in the first half of this year. Given the prolonged downturn in the construction industry, a performance rebound is expected to be challenging in the near term. Jungheung Group’s decision to transition Daewoo E&C from professional management to an owner-management system during a period of crisis suggests a commitment to tackle the challenges head-on through responsible management by the owner family. As Daewoo E&C embarks on this shift to owner-management, there is speculation over whether the company will expedite workforce restructuring. Due to the relatively long tenure of its employees, Daewoo E&C faces greater pressure for personnel changes than other construction companies. As of the end of June, Daewoo E&C’s employees had an average tenure of 15.8 years, the longest among the top 10 domestic construction companies in terms of construction capacity. GS E&C’s average tenure is similar at 15.5 years, while the gap with other companies ranges from 2 to 5 years. In 2024, Daewoo E&C introduced paid leave and a voluntary retirement program. The company implemented a refresh leave policy, offering employees up to two months off with 50% of their base pay, and offered a severance package equivalent to up to 22 months’ salary, along with a special severance payment of KRW 20 million (US$14,422), for those opting for voluntary retirement. #DaewooE&C #JungheungGroup #OwnerManagement #ExecutiveReshuffle #ConstructionIndustry #LaborUnion #BusinessRestructuring #KoreanConstruction #CorporateGovernance #LeadershipChange
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- Yoon Suk-yeol Dismisses Claims of National Interference by First Lady, Suggests "Redefining the Dictionary"
- President Yoon Suk-yeol firmly denied allegations that First Lady Kim Keon-hee interfered in state affairs, addressing these accusations in a press briefing on November 7 at the presidential office in Yongsan, Seoul. Responding to questions on alleged involvement by Kim in governance and personnel decisions, Yoon stated, “The First Lady, who campaigned alongside me, is expected to assist the President. If helping the President run the country smoothly is considered ‘national interference,’ then we need to redefine the dictionary.” Yoon emphasized that Kim's role has been limited to advisory support as his spouse, without overstepping into state governance. He further clarified, “Though the First Lady isn’t a public official, suggesting, for example, that I should take a gentler tone in meetings isn’t interference. Former First Ladies also made such indirect suggestions that others may not voice openly to the President.” Yoon also noted that since his time as Prosecutor General, Kim has been “demonized” and misrepresented, asserting that he has consistently operated within proper command structures as a public official. “There has been exaggeration and even fabrication to demonize my wife,” he said. “While she should have been cautious and has caused public concern, we need to clearly separate fact from fiction.” Addressing Kim’s public activity, Yoon stated that decisions regarding her appearances would continue to be made in consultation with key advisors, ensuring they serve national interests. He noted, “Considering public sentiment, her activities have largely been scaled back except where deemed essential by my team and me for diplomatic or national interests.” Yoon attributed some of the ongoing controversies surrounding Kim to her “naivety.” Reflecting on her past personal interactions—such as lengthy conversations with a YouTuber and exchanges with religious figures—he remarked, “I suppose we’ll have more ‘husband-and-wife discussions’ going forward. It’s not an excuse, but my wife does have a certain ‘innocent’ side.” #YoonSukyeol #KimKeonhee #FirstLady #SouthKorea #nationalinterference #pressconference #publiccontroversy #governmentalrole #publicsentiment #innocentside
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- "Never, Never Give Up": Yim Jong-yong Guides Woori’s Trust Revival through Year-End Appointments
- “Never, never give up.” This phrase has often followed Yim Jong-yong, Chairman of Woori Financial Group, since his days as Chairman of NH NongHyup Financial Group, where he first used it in a meeting to urge regulatory authorities to consider relaxing financial regulations. It has since become a phrase symbolic of Yim’s determination and strong drive. Currently, Woori Financial is seen as being in a situation where it cannot afford to abandon its push for reform. Upon assuming leadership amidst a major embezzlement scandal at Woori Bank involving approximately KRW 70 billion (about US$ 50.5 million), Yim implemented a series of measures to improve the organizational culture. However, recent incidents, including an improper loan by a relative of the former chairman, have posed challenges to his efforts. In this climate, Yim’s strong resolve to pursue innovation is critical. Observers are keen to see if his year-end personnel appointments will reflect his “never, never give up” commitment and provide an opportunity to rebuild trust. On November 7, Woori Financial reported recent revisions to its internal governance rules for both Woori Financial Holdings and Woori Bank. Major financial groups and banks, including Woori, have amended their internal governance policies in line with the regulatory framework for oversight, which took effect in a pilot program this month. Notably, Woori Bank’s revised governance standards specify that the board of directors is responsible for supervising the bank president’s obligation to implement comprehensive internal control measures. By directly outlining the board’s supervisory authority over the president’s internal control duties, Woori Financial is aligning with the Financial Supervisory Service’s emphasis on the board’s role in corporate oversight, ensuring the bank president focuses on effective internal controls. Additionally, Woori Financial is preparing to form an Ethics and Internal Control Committee, composed solely of outside directors, to strengthen oversight. This will require amendments to the company's bylaws and shareholder approval, with the committee expected to be established following the March 2025 shareholders’ meeting. While Yim is laying out various measures to strengthen internal controls, market attention is focused on his upcoming year-end appointments. Even with a robust framework, actual implementation depends on the heads of each subsidiary, raising questions about whether CEOs who have experienced major financial incidents will be replaced or retained based on renewed trust. Another key area of interest is whether Yim can address the long-standing divide between former Hanil Bank and Commercial Bank factions within Woori Financial. Woori Bank traces its roots to the 1999 merger of Hanil Bank and Commercial Bank, and remnants of this factional divide reportedly persist. Yim acknowledged this issue during a National Assembly audit in October, stating, “Woori Bank is a conglomeration of various banks, and it is true that some factional cultures remain.” Yim leads the Nomination Committee for subsidiary CEO appointments at Woori Financial’s board, giving him significant influence over executive appointments. Currently, seven subsidiary CEOs of Woori Financial are due to reach the end of their terms by early next year, with the most prominent among them being Woori Bank CEO Cho Byeong-gyu. Cho, who was appointed through an “audition process” shortly after Yim assumed the chairmanship, initially enjoyed Yim’s strong support. However, with a series of large-scale financial incidents occurring this year, Cho’s reappointment is now uncertain. Traditionally, the Woori Bank CEO candidate pool includes subsidiary heads, which increases the attention on Cho’s potential reappointment. A final decision on the Woori Bank CEO will likely set the order for appointments at other subsidiaries. Woori Financial has already begun discussing the selection process for Woori Bank’s CEO, with outside directors reportedly holding an informal meeting on October 31. However, Cho’s reappointment was reportedly not discussed during this meeting. Yim has consistently emphasized strengthening internal controls as a top priority for Woori Financial, implementing a range of initiatives. After assuming the role, Yim launched a Corporate Culture Innovation Task Force (TF) and a Group Internal Control Advisory Committee. In July of the previous year, he announced plans to station dedicated internal control personnel on the front lines of new business, establish mandatory internal control procedures, enhance training programs, and increase staffing for these tasks. In his October appearance before the National Assembly, Yim proposed restricting the chairman’s executive appointment authority and requiring executives to register credit information of their relatives. Yim has adopted a humble stance, indicating deep contemplation over these issues. During the October audit, he stated, “Woori Financial faces a desperate situation, and restoring trust will be difficult without a thorough transformation. Right now, we must focus on organizational stability and strengthening internal controls. If there are mistakes for which I am responsible, I will take accountability.” #YimJongyong #WooriFinancialGroup #internalcontrol #trustrestoration #leadershipchange #corporategovernance #financialscandals #subsidiaryappointments #organizationalculture #regulatorycompliance
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- Will Hyundai E&C's Quiet Personnel Policy Change? Yoon Young-joon’s Focus on Strengthening Core Operations
- Will Hyundai Engineering & Construction's Promotion Season Pass Quietly This Year? Hyundai Engineering & Construction (Hyundai E&C) CEO Yoon Young-joon is in the first year of his renewed term and has already demonstrated significant achievements in terms of growth. However, as the company faces both positive and negative aspects of its performance, the pressure to secure substantial internal stability remains significant. According to industry sources on the 7th, Hyundai Motor Group is expected to conduct personnel appointments around the same time as in previous years, with a focus on “stability” likely to be a priority. This is largely because, despite growing uncertainties across domestic industries, Hyundai Motor Group has continued to post strong results, primarily through Hyundai and Kia. Hyundai Motor Group typically announces CEO appointments in mid-November and executive appointments in mid-to-late December. However, like last year, when the group emphasized performance-based rewards, a focus on cultivating leaders who can secure future growth engines is also expected to continue. Now four years into Chairman Chung Eui-sun’s tenure, Hyundai Motor Group has achieved notable results across various indicators, and it is seen as a suitable time to crystallize the company’s long-term vision. Consequently, the scale of personnel changes may not be small. Last year’s executive reshuffle was the largest ever for Hyundai Motor Group, with promotions for 252 individuals, including 97 at Hyundai, 38 at Kia, and 20 at Hyundai Mobis. Hyundai E&C, however, had a relatively quiet year-end even amid this extensive reshuffle. For instance, at the beginning of this year, CEO Yoon Young-joon successfully secured a renewal of his term, extending his tenure as an internal director until March 21, 2027. Executive promotions were also modest, with three senior managing directors and seven managing directors being promoted in 2022, totaling 10 executives. Given that Hyundai E&C had only promoted 11 executives at the end of 2022 and last promoted a vice president in 2020, Yoon’s administration appears to have prioritized organizational stability. While Hyundai Motor Group’s automobile and parts affiliates focus heavily on transitioning to future mobility technologies, such as electric and hydrogen vehicles, Hyundai E&C has maintained a comparatively conservative approach, prioritizing stability through its backlog of orders. However, there is speculation that this year’s personnel season may not be as smooth. The construction industry has struggled with profitability issues amid sharp cost increases and an economic downturn, and Hyundai E&C has faced similar challenges. The company’s consolidated operating profit margin dropped from 4.2% in 2021 to an estimated 2.0% in the first three quarters of this year. Regarding promotions, the construction industry typically follows the practice of recognizing individuals who have accumulated technical and sales expertise over the years. Thus, the number of promotions at Hyundai E&C may not deviate significantly from previous levels. There is interest in whether a vice president will be appointed at Hyundai E&C, given that the company has had no vice presidents since the last, Lim Yong-jin, head of the plant division, retired in January. As for CEO appointments, Hyundai E&C is attracting attention. Since 2022, during a period when the construction industry faced declining performance, most large construction firms, except Hyundai E&C and Samsung C&T’s construction division, have replaced their CEOs. Although reasons vary—including major incidents, shifts to owner-led management, and IPOs—most companies have moved to new leadership as the market hit bottom. Since this is Yoon Young-joon’s first year of renewed tenure, with more than two years left until the end of his term, and given his achievements in expansion and securing abundant work, he seems poised for continuity. Hyundai E&C’s revenue on a separate basis rose steadily from KRW 9.32 trillion (US$ 6.72 billion) in 2020 to KRW 15.77 trillion (US$ 11.37 billion) last year, and it is expected to continue growing, with cumulative sales reaching KRW 12.87 trillion (US$ 9.28 billion) in the first three quarters of this year. Additionally, Hyundai E&C’s order backlog has increased from approximately KRW 34 trillion (US$ 24.52 billion) at the end of 2020 to KRW 58.8 trillion (US$ 42.4 billion) as of the end of Q3 2024. CEO Yoon has also maintained Hyundai E&C’s No. 1 position in new urban redevelopment orders since 2019, a core area of his expertise in residential projects, and achieved a record by joining the “KRW 9 trillion (US$ 6.49 billion) club” in 2022. This top ranking in new urban redevelopment orders is likely to continue this year. Moreover, Hyundai E&C is laying the groundwork to position nuclear energy as a new growth engine, as evidenced by the company’s renewed overseas nuclear project in Bulgaria, after a 15-year hiatus, as well as its engagement in large-scale projects for both traditional and small modular reactors (SMRs), nuclear decommissioning, and spent nuclear fuel management. However, the common industry challenge of profitability deterioration remains, highlighting the need to focus on internal stability. Earlier this year, the Hyundai E&C board, when renewing Yoon’s term, cited his “unique expertise and leadership in difficult business conditions” as key factors, noting that he had led growth in Hyundai E&C’s orders, revenue, and profits and set an unprecedented record of ranking first in urban redevelopment orders for five consecutive years. Meanwhile, Hyundai E&C’s affiliate, Hyundai Engineering, also had a relatively quiet personnel season last year, though this may change in 2024. Hong Hyeon-seong, Hyundai Engineering’s CEO, whose term expires on March 14 next year, maintained his position last year, and only seven executives (two senior managing directors and five managing directors) were promoted. In Hyundai Engineering’s end-of-year reshuffle for 2022, only ten executives, including one vice president, were promoted. Like Yoon, Hong has achieved notable results. Hyundai Engineering’s revenue grew rapidly from KRW 7.18 trillion (US$ 5.18 billion) in 2020 to KRW 13.06 trillion (US$ 9.42 billion) last year, reaching the KRW 10 trillion (US$ 7.21 billion) threshold, and its order backlog expanded from KRW 23.15 trillion (US$ 16.7 billion) at the end of 2020 to KRW 27.41 trillion (US$ 19.76 billion) as of Q3 2024. Hong is also making strides with Hyundai Engineering’s “NEXT HEC” vision, announced as part of its 50th-anniversary celebration, which includes new renewable energy projects, such as securing rights to operate its first power plant in the U.S. However, like Hyundai E&C, Hyundai Engineering’s declining profitability remains a concern. When Hong was appointed CEO in February 2022, the board noted his “ability to address key challenges in a difficult business environment and drive performance improvements” and anticipated that he would accelerate Hyundai Engineering’s pursuit of new business areas. Since Hong’s first term is about to conclude, he is likely to undergo a detailed evaluation. A Hyundai E&C official stated, “Since CEO and executive appointments are made at the group level, nothing is known at this time.” #HyundaiEngineeringConstruction #YoonYoungjoon #HyundaiMotorGroup #executiveappointments #constructionindustry #profitabilitychallenges #HyundaiEngineering #urbanredevelopment #nuclearenergy #futuregrowth
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- Ham Young-joo’s Final CEO Appointments of First Term: Hana Financial’s Next-Gen Blueprint?
- Hana Financial Group Chairman and CEO Ham Young-joo is approaching his final CEO appointments for the group's subsidiaries within his current term. Given the strong foothold many current CEOs have within the group, it is expected that any end-of-year executive changes may be limited. However, with Hana Financial potentially preparing for leadership succession at the group level, there is speculation that Chairman Ham may implement changes to lay the groundwork for the next generation of leadership. According to Hana Financial on the 6th, CEOs of 12 of its 14 subsidiaries will complete their terms this year. This large number of executives up for potential change marks the most significant transition opportunity since Ham’s appointment, surpassing his previous end-of-year appointments in 2022 and 2023, which involved nine and ten subsidiaries, respectively. Given recent shifts in the market, including interest rate cuts, there is also potential for Ham to expand the scope of changes this year, unlike his focus on stability in the previous period of crisis. At the end of last year, the Group Executive Candidate Recommendation Committee (Group Nomination Committee) chose to retain seven CEOs, citing the importance of stability amid lingering uncertainties post-pandemic. The committee stated that prioritizing stability was essential for Hana’s sustainable growth through strengthened risk management and operational fundamentals. Despite this prior focus on stability, Ham had replaced seven out of nine subsidiary heads in 2022, casting some doubt on whether this year’s approach will lean as conservatively. A significant factor this year is the succession process for the next group chairman, which will begin after this round of appointments. Historically, the chairman and subsidiary CEOs have both served terms starting and ending in March following the regular general meeting. However, since 2023, the subsidiary CEOs’ terms were moved up to the beginning of the year, placing the current CEO appointments ahead of the chairman’s succession decisions. Chairman Ham is expected to consider succession planning and future leadership structuring, regardless of his own reappointment. Even if Ham is reappointed next year, his tenure may not extend the full three-year term typically afforded to chairmen, as he turns 68 this year. Hana Financial’s bylaws stipulate an age limit of 70 for the group chairman. His predecessor, Kim Jung-tae, received only a one-year extension upon nearing the age limit. Thus, the results of this year’s CEO appointments for Hana’s major subsidiaries may provide insights into Hana Financial’s future leadership direction. The primary focus will be on whether CEOs of key subsidiaries—such as Hana Bank, Hana Securities, Hana Card, and Hana Capital—are reappointed, given that they are seen as trusted allies of Chairman Ham, suggesting a high likelihood of reappointment. Hana Bank President Lee Seung-yul and Hana Securities CEO Kang Sung-mook, both serve dual roles as vice chairmen and internal directors at the holding company, supporting Chairman Ham and strengthening his leadership. Even if they do not continue as subsidiary heads, maintaining their roles within the holding company could imply a strategic move to groom them for future leadership. Ham Young-joo himself followed a similar path, transitioning from Hana Bank president to vice chairman before becoming chairman. Among other executives, Lee Ho-sung, CEO of Hana Card and known as an operational expert akin to Ham, has earned group-wide trust, especially with the success of Hana Card’s popular “Travelog” product. Hana Capital CEO Park Seung-oh, who was retained last year, has also gained Chairman Ham’s confidence. If they are reappointed, their established roles within the group will likely solidify Hana Financial’s leadership structure. In alignment with best practices in corporate governance, Hana Financial launched its nomination process for the next Hana Bank president in late September through the Group Nomination Committee. However, details on whether similar processes will be initiated for other subsidiary CEOs remain unconfirmed. #HanaFinancialGroup #HamYoungJoo #CEOappointments #leadershipsuccession #HanaBank #HanaSecurities #HanaCard #HanaCapital #corporategovernance #successionplanning
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- Samsung C&T Maintains Stable Performance, Will Oh Se-chul Avoid Impact of "Samsung Crisis"?
- While the construction sector faces a prolonged downturn, Samsung C&T has demonstrated relatively stable performance, seemingly positioning itself outside of the recently emerging “Samsung Crisis.” In contrast to expectations of significant reshuffling within Samsung Group, especially around Samsung Electronics, industry insiders speculate that Samsung C&T may not see substantial executive changes as it focuses on consolidating internal stability amid steady results. As of November 6, Samsung C&T’s preliminary Q3 2024 earnings report recorded KRW 10.31 trillion in revenue and KRW 736 billion in operating profit. Within the construction division, revenue reached KRW 4.482 trillion with an operating profit of KRW 236 billion, reflecting a robust 5.26% operating margin. Despite some slowdown, this margin surpasses those of other large construction firms, which posted margins between 2–3%, reinforcing Samsung C&T’s reputation for stability in the sector. For instance, Q3 2024 operating margins for other major construction companies were as follows: Hyundai E&C at 1.4%, POSCO E&C at 2.2%, Daewoo E&C at 2.4%, and GS E&C at 2.6%. CEO Oh Se-chul, whose term officially ended in March 2024, was reappointed based on accomplishments including record performance, three consecutive years as the top-ranked contractor for overseas projects, and expansion into new business areas. His reappointment defied the internal “60-year rule” at Samsung, which has generally seen CEOs over age 60 step down. This policy, in place since 2017, had only been previously broken by Vice Chairman Jeon Young-hyun of Samsung Electronics’ DS Division. With his reappointment, Oh’s term extends until March 15, 2027. Although quarterly results keep him accountable, his strong performance makes a leadership change less likely, according to industry voices. However, Samsung C&T’s CEO history suggests that CEOs who have been reappointed often do not serve out their full extended terms. For instance, former Vice Chairman Chung Yeon-joo stepped down one year before his second term ended, handing over to Choi Chi-hoon in late 2013. Likewise, Choi successfully secured reappointment but resigned in early 2018, making way for successors. Since the 2018 company-wide leadership transition following the merger, Samsung C&T’s executive appointments have largely adhered to a conservative approach. Former CEOs like Lee Young-ho retained their positions despite declining operating profits, with Lee seeing out his full term even after a 30.1% drop in operating profit in 2019. Samsung C&T’s conservative management approach has also influenced the size and tenure of its executive team. Despite a reduced number of executive promotions, the number of senior executives has steadily increased, rising from 159 in 2021 to 162 in 2023, signaling a preference for retaining capable executives. Indeed, Samsung C&T’s most recent executive appointments, made on November 30, 2023, saw just four vice presidents and 15 directors promoted, with no changes to the C&T executive team within the construction division. According to the company’s mid-year 2024 report, six of nine directors had served more than three years, including two of the four inside directors, reflecting Samsung C&T’s inclination to retain experienced leadership. Notably, there are no directors whose terms expire in March 2025. In contrast, Samsung Electronics is likely to implement an earlier-than-usual reshuffling, as seen in the relatively short tenure of its board members. Only two of the 10 Samsung Electronics board members have served over three years, with half of their terms ending by March 2025. A Samsung C&T representative stated to BusinessPost, “There is no fixed timing for executive appointments, and currently, there are no major issues related to personnel changes within Samsung C&T.” #SamsungC&T #SamsungCrisis #OhSeChul #ConstructionSector #ExecutiveAppointments #StablePerformance #60YearRule #LeadershipSuccession #SamsungGroup #BusinessResilience
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- SK Group’s Year-End Focus: ‘Slimmer and Leaner,’ Bold Moves Expected from Chey Tae-won
- SK Group is expected to drastically reduce its number of executives in the upcoming year-end reshuffle anticipated in November. Speculation suggests a reduction of 20-30% among current executives. This move aligns with Chairman Chey Tae-won’s directive to streamline the organization and pivot towards AI-driven business transformation. The key themes for this year's reshuffle are expected to include a focus on STEM talent, performance-based leadership, and infusing younger blood into the ranks. Industry insiders predict substantial restructuring, particularly in underperforming subsidiaries. In June, Choi Chang-won, Chairman of SK SUPEX Council, emphasized the need to streamline subsidiaries to a manageable size, indicating a potential reduction in investment and restructuring of non-performing units. With Chey's commitment to AI transformation, involving an investment of KRW 80 trillion by 2026, SK Group is expected to allocate additional resources to AI-focused subsidiaries like SK Hynix and SK Telecom, while cutting back on underperforming units. SK Eco Plant has already initiated personnel changes, establishing a new "High-Tech Division" for semiconductor services and reducing its executive count by 18. Only one executive was promoted, reflecting a decisive move towards organizational streamlining. In October, SK Innovation, following its merger with SK E&S to become Asia’s largest energy company, executed tech-driven appointments by replacing the heads of SK Geocentric, SK Energy, and SK IE Technology with engineering and research experts. Despite SK On reporting its first-ever quarterly profit in Q3 2023, skepticism remains regarding its sustained profitability due to the "EV chasm." The company has accumulated over KRW 3 trillion in losses since its establishment in 2022 and is actively reducing staff through voluntary redundancies. SK Bioscience, struggling to escape deficits post-COVID, recorded a KRW 48 billion loss in H1 2023. Despite investments in promising U.S. and European biotech firms, significant returns are expected to take time. The ongoing reorganization may not spare it. Chey emphasized leveraging AI for operational improvements, encouraging younger leaders to integrate AI into company strategies. The recent appointments of younger CEOs like Choi An-seop at SK Geocentric and Lee Sang-min at SK IE Technology, both in their late 40s, signal a shift towards a younger leadership dynamic. The reshuffle could see more leaders in their 40s and early 50s taking on senior roles, breaking the traditional dominance of those in their mid-to-late 50s. #SKGroup #CheyTaeWon #ExecutiveReshuffle #AITransformation #OrganizationalStreamlining #SKInnovation #SKOn #SKEcoPlant #LeadershipChange #KoreanBusiness
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- CJ Group to Announce Executive Appointments Early, Lee Jay-hyun Focuses on Stability Over Overhaul
- Lee Jay-hyun, Chairman of CJ Group, is carefully evaluating the management performance and internal circumstances of the group’s subsidiaries as he considers the direction for this year’s executive appointments. Given the timing of recent CEO changes at key subsidiaries and the prevailing internal and external conditions, the upcoming appointments are expected to emphasize stability over major overhauls. Sources within CJ Group suggest that the executive reshuffle, expected to be announced soon, will likely involve less change compared to previous years. The group has already made significant leadership changes earlier in February 2023, including at its flagship subsidiaries CJ CheilJedang and CJ Logistics. In February, Kang Shin-ho, who had served as CEO of CJ Logistics, was promoted to Vice Chairman and moved to CJ CheilJedang. His successor at CJ Logistics is Shin Young-soo, who previously led the Korean operations. With these recent transitions, further changes in leadership at year-end are considered unlikely. In March, Koo Chang-geun resigned as head of the entertainment division at CJ ENM. Yoon Sang-hyun, who was managing the commerce division, took over both roles, shifting CJ ENM from a dual-CEO structure to a single-CEO model. While CJ ENM attributed Koo’s sudden resignation to personal reasons, some speculated it was due to poor performance in the entertainment sector. Despite these shifts, CJ ENM has shown consistent improvement in profits compared to the previous year. CJ Freshway also saw a leadership change in May 2023, with Lee Gun-il succeeding Jeong Seong-pil as CEO. Given these recent shifts, further drastic changes at the top management level are unlikely. Among CEOs who have held their positions for more than a year are Heo Min-hoe of CJ CGV and Lee Seon-jeong of CJ Olive Young, who assumed their roles in 2021 and 2023, respectively. Both are expected to avoid punitive measures due to their notable management achievements. Heo has focused on stabilizing CJ CGV, particularly after the challenges posed by the COVID-19 pandemic, and has completed a capital expansion plan by integrating CJ Olive Networks. Meanwhile, CJ Olive Young, under Lee’s leadership, has shown remarkable growth, achieving a record-breaking quarterly revenue of KRW 1.2079 trillion in Q2 2023. However, the company faces scrutiny from the Fair Trade Commission over allegations of coercing suppliers, which could potentially impact its reputation. Internally, Lee Seon-jeong is seen as a symbol of CJ Group’s rare female leadership, earning significant trust within the group. The broader context surrounding CJ Group suggests that this year’s executive appointments will be relatively conservative. Unlike other conglomerates feeling the urgency for a complete overhaul, CJ Group does not appear to be in a position requiring such dramatic shifts, though the ongoing domestic consumption slump remains a concern. Speculation also surrounds the potential changes involving Chairman Lee Jay-hyun’s children. Lee Kyung-hoo, head of brand strategy at CJ ENM, and Lee Sun-ho, head of food growth promotion at CJ CheilJedang, may see changes in their roles or responsibilities. Additionally, Jeong Jong-hwan, who oversees content and global business at CJ ENM and is married to Lee Kyung-hoo, may have his role expanded. While the previous regular appointments were announced in February 2024, after the new year, this year’s announcements may come earlier as CJ Group has reportedly started collecting performance evaluations sooner than usual. A CJ Group representative declined to comment on the timing and direction of the executive appointments, stating, “We neither know nor can disclose any details in advance.” A business insider remarked that, unlike groups like Shinsegae or Lotte, which have fixed schedules for personnel announcements, CJ Group’s timing varies significantly each year. #CJGroup #ExecutiveAppointments #LeeJayHyun #BusinessStrategy #KoreanConglomerates #CorporateLeadership #ManagementStability #CJCheilJedang #CJLogistics #CJENM #CJOliveYoung
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- Will Jin Ok-dong Continue Shinhan Financial’s Stable Leadership? Internal Control Emerges as a Key Variable
- Jin Ok-dong, Chairman of Shinhan Financial Group, is carefully considering the appointment of subsidiary CEOs as he moves into the latter half of his term. With strong performances from key subsidiaries like Shinhan Bank, Shinhan Card, and Shinhan Life this year, industry experts believe Jin will likely continue his focus on "responsible management" as seen in last year's year-end appointments. However, a recent financial mishap at Shinhan Investment Corp., involving a loss of approximately KRW 130 billion, may prompt Jin to send a reform message through the upcoming appointments. Twelve subsidiary CEOs, including those from Shinhan Bank, Shinhan Card, and Shinhan Life, are approaching the end of their terms between late 2023 and early 2024. Jin's decisions will shape the leadership team for the remainder of his tenure, which lasts until March 2026. Shinhan Bank, led by Jeong Sang-hyeok, has performed exceptionally well, achieving the highest net profit among banks as of September. If this trend continues, Shinhan Bank may reclaim the top spot in net profit for the first time since 2018. Shinhan Card, under Moon Dong-kwon, remains a top performer in the card industry, and Shinhan Life, led by Lee Young-jong, continues to close in on the top three life insurers in the market. Considering their strong performances and the typical 2+1 year term structure, these CEOs are likely to be reappointed. Jin’s emphasis on "responsible management" further reduces the likelihood of major leadership changes among these subsidiaries. However, the financial scandal at Shinhan Investment Corp. introduces a potential twist. The KRW 135.7 billion loss from a KOSPI 200 futures trading incident has led to stern warnings from the Financial Supervisory Service (FSS), hinting at severe penalties. While Jin may face pressure to act, replacing CEO Kim Sang-tae, who was given a two-year term unlike other CEOs, could be difficult without clear accountability amid ongoing investigations. The situation recalls a precedent in 2018, when Samsung Securities’ "ghost stock" incident led to the resignation of a newly appointed CEO. The potential for broader reforms beyond Shinhan Investment Corp. may grow as Shinhan Financial Group aims to enhance shareholder trust and communication, following Jin's direct apology to shareholders. Jin emphasized the importance of long-term stability and innovation in his previous appointments, stating, “During crises, the saying ‘you don’t change generals during a war’ holds true,” highlighting his commitment to responsible management over quick changes in leadership. #ShinhanFinancialGroup #JinOkdong #ExecutiveAppointments #ResponsibleManagement #FinancialScandal #LeadershipStability #ShinhanBank #ShinhanCard #ShinhanLife #CorporateGovernance
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- Yang Jong-hee to Showcase Leadership Style in KB Financial's Year-End Shake-Up
- Yang Jong-hee, Chairman of KB Financial Group, is expected to clearly showcase his leadership style as he completes his first year in office, with significant changes anticipated in the year-end executive reshuffle. With the CEOs of key subsidiaries like KB Kookmin Bank, KB Securities, KB Card, and KB Life Insurance nearing the end of their terms, Yang’s focus on innovation under his "Refresh" management approach could signal a shift towards dynamic change rather than stability. In 2023, Yang quickly made his mark by replacing six out of nine CEOs in his initial appointments, emphasizing a move towards transformation. The upcoming year-end appointments are predicted to further reflect his strategic direction, potentially involving major leadership changes across KB’s core subsidiaries. Attention is particularly focused on whether KB Kookmin Bank’s CEO, Lee Jae-keun, will be reappointed, especially after navigating challenges like the Hong Kong ELS issue. Yang’s emphasis on "Refresh" management, as reiterated in his recent remarks on KB's 16th anniversary, underlines his commitment to reshaping the organization’s internal controls and corporate culture to adapt to a rapidly changing environment. The year-end executive reshuffle is expected to be a definitive moment for Yang, setting the tone for KB Financial Group’s future direction under his leadership. #YangJonghee #KBFinancialGroup #ExecutiveReshuffle #KookminBank #LeadershipChange #RefreshManagement #KBSubsidiaries #FinancialInnovation #CEOAppointments #BankingLeadership
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- Crisis-Mode Lotte Group: Will Shin Dong-bin Reshuffle the Vice Chairmen?
- Shin Dong-bin, Chairman of Lotte Group, is expected to bring changes to the executive ranks, particularly among vice chairmen, in the upcoming regular executive reshuffle. Amid assessments that the group is facing a critical period, Shin may seek to rejuvenate the top executive ranks to overcome management challenges. According to industry sources on November 4, Lotte Group's regular executive reshuffle, anticipated in early December, will be notable for occurring under an emergency management system at Lotte Corporation. This marks the first time in six years that Lotte Corporation has declared an emergency management system, reminiscent of the period when Shin faced legal challenges that hindered his ability to manage the group. The current crisis is thus being likened to a situation akin to the absence of the group’s head. The reshuffle may emphasize the group's overarching sense of crisis, reflecting the urgency of the current situation. Shin has not shied away from making changes in the past. Last year, he oversaw the departure of eight CEOs in their 60s, replacing a total of 14 CEOs across affiliates. The year before, he replaced 21 top executives, indicating a focus on renewal for two consecutive years. Given this context, Shin might opt for a broader reshuffle despite the potential fatigue from repeated changes. With the group's overall situation still challenging, there is a likelihood of intensifying pressure. There is also speculation that vice chairmen will be at the center of these changes, aligning with similar trends in other major conglomerates. For instance, LG Group is rumored to be considering new vice chairmen as the terms of Kwon Bong-seok, CEO of LG Corp., and Shin Hak-cheol, CEO of LG Chem, end in March 2025. Similarly, Samsung Group faces speculation about major leadership changes in response to the perceived crisis at Samsung Electronics. Given these industry-wide movements, Shin might follow suit. Lotte Group's core sectors, particularly chemicals and retail, have been under prolonged pressure. Credit rating agencies downgraded their outlook on the group's affiliates from stable to negative during the regular evaluations in June. In this context, a reshuffle among vice chairmen could be seen as a strategy to turn the tide. Among the four vice chairmen in Lotte Group, one of the most prominent figures is Lee Dong-woo, Vice Chairman and CEO of Lotte Corporation, the group's control tower. Lee was appointed as CEO of Lotte Corporation in August 2020 and officially took office in October of the same year. He was promoted to vice chairman in the subsequent November reshuffle. Originally, Lotte Corporation operated with a three-person leadership team, including Shin, Lee, and former Vice Chairman Song Yong-deok. However, following Song's retirement in late 2022 after over 40 years at Lotte, Lee became the sole professional vice chairman at Lotte Corporation. Lee is considered a self-made success story, having risen to vice chairman through his achievements within Lotte Group. His tenure at Lotte Hi-Mart, despite controversies that led him to consider stepping down, continued due to Shin’s trust. Lee has also spearheaded significant initiatives at Lotte, including the establishment of Lotte Biologics and Lotte Healthcare as new growth engines for the group. Nevertheless, given the overall difficulties faced by Lotte Group, Lee’s responsibilities are seen as substantial. While there is a possibility of finding new leadership to guide the organization under the emergency management system, Lee could also be retained to navigate new opportunities. Lee Young-gu, Vice Chairman and CEO of Lotte Wellfood, overseeing the food business headquarters (HQ), is another vice chairman whose position is under scrutiny. Lee has been leading the food HQ since its previous iteration as the food business unit (BU), marking his fourth year in this role. He is credited with successfully merging Lotte Confectionery and Lotte Food, laying the groundwork for Lotte Wellfood. Recently, the potential merger between Lotte Trading and Lotte Wellfood brought him back into the spotlight. Lee accompanied Shin on recent overseas trips, where they discussed collaborations between Lotte's Japanese and Korean food affiliates to enhance their confectionery businesses. While Lee has taken on new group-level responsibilities, his long tenure leading the food HQ, unprecedented in the group's history, might position him as a candidate for a reshuffle. Kim Sang-hyun, Vice Chairman and CEO of Lotte Shopping, overseeing the retail HQ, presents a slightly different scenario. Kim is one of Shin’s prominent external hires, bringing nearly 30 years of experience in the global retail industry. He is credited with implementing meaningful reforms at Lotte Shopping from an outsider’s perspective. Lotte Shopping's return to profitability after seven years is attributed to Kim’s leadership. Additionally, the decision to collaborate with the UK retail tech firm Ocado for significant online market investments is seen as a result of Kim’s strategic efforts. Park Hyun-chul, Vice Chairman and CEO of Lotte E&C, is another figure of interest. Park initially served as head of Lotte Corporation’s Business Improvement Office. He was brought in as an emergency fix for Lotte E&C amid the real estate downturn in late 2022. His two-year term ends on December 8, and his future will likely be decided in the upcoming reshuffle. Park is credited with stabilizing Lotte E&C’s financial structure by securing necessary funds and mitigating liquidity crises. Born in 1960, Park shares his birth year with Lee Dong-woo, making them contemporaries among Lotte’s vice chairmen. #ShinDongbin #LotteGroup #ExecutiveReshuffle #ViceChairmen #CrisisManagement #LotteShopping #LotteConstruction #LotteWellfood #CorporateGovernance #LeadershipChange
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- Lee Jae-yong Faces 'Crisis on All Sides,' Prepares for Major Leadership Overhaul to Revive Samsung
- Lee Jae-yong, Chairman of Samsung Electronics, appears poised to initiate a major personnel reshuffle to revitalize Samsung Electronics and its affiliates amidst a challenging period. Amid criticisms for failing to maintain technological leadership, particularly in the semiconductor division (DS), senior executives of the DS division and some key figures in support organizations may face significant changes. Attention is focused on the fate of top executives, including Vice Chairman Han Jong-hee, head of the Device Experience (DX) division, and Vice Chairman Chung Hyun-ho, head of the Business Support Task Force. According to industry sources, the annual executive reshuffle for 2025 is expected to be announced in mid-November, earlier than usual. Given the current crisis, Samsung sees an urgent need to refresh its leadership and structure to effectively plan for the coming year. Last year’s executive reshuffle was relatively minor, focusing on stability rather than change. However, this year, Samsung is expected to implement its largest personnel overhaul in over a decade. The DS division, in particular, is anticipated to see major changes at the executive level. With ongoing multibillion-dollar losses in the foundry and system LSI units and competitive setbacks in the memory semiconductor business, calls for significant restructuring are growing. Vice Chairman Kyung Kye-hyun, head of the DS division, issued a rare public apology in October for poor performance, admitting to concerns about the company's technological competitiveness and future prospects. Executives such as Lee Jung-bae (head of the Memory Business), Choi Si-young (head of the Foundry Business), and Park Yong-in (head of the System LSI Business), as well as Nam Seok-woo (Manufacturing & Technology officer) and Song Jae-hyuk (CTO and head of the Semiconductor Research Center), will be closely scrutinized in the reshuffle. The DX division may also experience shakeups. With Samsung losing market leadership in mobile, TV, and home appliances, there is a growing need for a new breakthrough. Executives like Roh Tae-moon (head of the MX Business) and Kim Woo-joon (head of the Network Business) are nearing the end of their terms, while Yoon Suk-woo (head of the Visual Display Business) may get more time due to his recent promotion. Support organizations are also expected to see changes. Criticism has emerged about inefficiencies in decision-making and support systems, contributing to Samsung's current challenges. Park Hak-kyu, head of the Management Support Office, faces term completion in March 2025. There could also be shifts within the vice chairman ranks. Unlike Kyung’s recent appointment as DS head, Han and Jung have held their vice-chairman roles since a December 2021 reshuffle. Jung, a close ally of Lee Jae-yong, is under mounting pressure as discussions around his accountability intensify. Significant changes are anticipated across other electronics affiliates like Samsung SDS, Samsung SDI, and Samsung Electro-Mechanics, which have faced growth stagnation. However, Samsung Display, under CEO Choi Joo-sun since 2021, has performed well, leading to expectations of his reappointment. Internally, there is a consensus on the need for thorough reform through a system of reward and punishment, yet concerns grow over potential widespread layoffs following executive reshuffles. Some fear that reductions experienced at overseas sites might extend domestically. A Samsung Electronics representative noted, “After the executive reshuffle, organizational restructuring is expected. Some business units may see significant staff reductions, raising concerns among employees about potential layoffs in domestic operations following reductions at overseas sites.” #Samsung #LeeJaeYong #ExecutiveReshuffle #DSDivision #DXDivision #Semiconductor #OrganizationalChange #Leadership #SamsungElectronics #CorporateRestructuring
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- Rising SK Semiconductor Fuels Optimism for SK ecoplant, Easing Pressure on Kim Hyung-keun
- Kim Hyung-keun, CEO of SK ecoplant, has signaled positive progress in performance and financial improvement. SK ecoplant recently announced on November 1 that it would incorporate SK Materials Airplus and Essencore as subsidiaries. This move is widely seen as a strategic decision aimed at enhancing performance and financial structure, especially as the company is required to complete its ongoing IPO by July 2026 based on investor agreements. In 2023, SK ecoplant achieved KRW 8.9251 trillion (USD 6.4 billion) in revenue and KRW 174.5 billion (USD 125.8 million) in operating profit but recorded a net loss of KRW 33.5 billion (USD 24.2 million) due to its shift in business portfolio, signaling financial instability. This has posed a significant hurdle for its IPO preparations. Incorporating stable subsidiaries like SK Materials Airplus and Essencore, which are considered strong assets within the SK Group, would ease SK ecoplant's financial burden. In 2023, SK Materials Airplus recorded KRW 257.6 billion (USD 185.8 million) in revenue, KRW 65.3 billion (USD 47.1 million) in operating profit, and KRW 30.7 billion (USD 22.1 million) in net profit. Essencore, while reporting revenue of KRW 821 billion (USD 592.1 million) and KRW 59.4 billion (USD 42.9 million) in operating profit last year, had previously achieved over KRW 100 billion (USD 72.2 million) in operating profit during favorable market years in 2020 and 2021. Both subsidiaries play crucial roles in SK Group’s semiconductor value chain. SK Materials Airplus produces high-purity industrial gases essential to semiconductor manufacturing, primarily supplying companies within SK Group, including SK hynix, SK Energy, and SKC, with 73.57% of its 2023 revenue derived from internal transactions within SK Group. Essencore sources DRAM from SK hynix to manufacture and sell memory products, such as SSDs and SD cards, and has expanded into the consumer PC component market since 2015 under its KLEVV brand. As SK Group's semiconductor business grows, SK ecoplant stands to benefit from the success of SK Materials Airplus and Essencore. SK ecoplant can also expect increased revenue through construction contracts for SK hynix’s semiconductor manufacturing facilities, especially as SK hynix progresses with its KRW 120 trillion (USD 86.5 billion) semiconductor cluster project in Yongin. As part of its preparations, Kim Hyung-keun established a new high-tech business division in October to support SK Group’s construction projects, appointing Oh Dong-ho, an industrial plant expert, to lead it. Oh previously oversaw SK hynix-related projects at SK ecoplant and is returning to the company following a brief tenure at SK ecoengineering after its spin-off. SK Group’s semiconductor division has recently reported strong performance. SK hynix, benefiting from its leadership in high-bandwidth memory (HBM), is projected to surpass Samsung Electronics in semiconductor operating profit for the first time this year. By the third quarter, SK hynix posted KRW 7.03 trillion (USD 5.1 billion) in operating profit, significantly outpacing Samsung’s KRW 3.86 trillion (USD 2.8 billion). The industry anticipates continued strong performance from SK hynix, given its technological dominance in high-demand areas. Hanwha Investment & Securities analyst Kim Kwang-jin noted that while traditional demand may slow by 2025, SK hynix’s HBM dominance will likely persist, especially as it maintains a near-monopoly in the emerging HBM3E 12-layer market. #SKEcoplant #SKMaterialsAirplus #Essencore #IPO #SemiconductorValueChain #KLEVV #SKhynix #HighBandwidthMemory #ConstructionProjects #YonginCluster
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- Samsung Electronics Overhauls HBM Design; Jun Young-hyun Pushes Full-Scale Revamp for "Memory Super-Gap"
- Samsung Electronics' Device Solutions (DS) division experienced a challenging third quarter, significantly underperforming SK Hynix in terms of operating profit, reflecting what some are calling a "semiconductor winter." Vice Chairman Jun Young-hyun, head of the DS division, has reportedly undertaken a comprehensive restructuring to recover Samsung’s “super-gap” in memory. This includes reevaluating the entire semiconductor development and production strategy, particularly high-bandwidth memory (HBM) design. According to industry sources, Samsung DS’s third-quarter operating profit was KRW 3.86 trillion (US$ 2.78 billion), falling short of the KRW 5 trillion (US$ 3.6 billion) initially projected by the market. While the memory division achieved KRW 5.6 trillion (US$ 4.04 billion) in operating profit, the foundry and System LSI divisions posted losses of KRW 1.6 trillion (US$ 1.15 billion). Additionally, the company incurred over KRW 2 trillion (US$ 1.44 billion) in one-time expenses, including employee bonuses. Kang-jin Kim, a research analyst at Hanwha Investment & Securities, attributed the DS division’s declining performance to these one-time expenses (mainly bonuses and inventory losses from foundry R&D). However, he noted that Samsung's average selling price for memory, including HBM, remains lower than that of competitors, even after adjusting for these expenses. Comparing quarterly performance, SK Hynix outpaced Samsung’s DS division, reporting KRW 7.03 trillion (US$ 5.07 billion) in operating profit—55% more than Samsung’s. This marked the first time SK Hynix has led Samsung in quarterly operating profits in semiconductors. Even isolating memory semiconductor profits, SK Hynix’s operating profit exceeded Samsung’s by KRW 1.4 trillion (US$ 1.01 billion). Cumulative operating profits for the year show SK Hynix at KRW 15.38 trillion (US$ 11.09 billion), surpassing Samsung’s KRW 12.2 trillion (US$ 8.8 billion) by over KRW 3 trillion (US$ 2.16 billion). Taiwan’s market research firm, TrendForce, projects that HBM will account for 30% of the global DRAM market revenue by 2025, with SK Hynix possibly surpassing Samsung in annual DRAM sales as early as 2026. In response to this underperformance, Vice Chairman Jun issued an unprecedented statement in early October, committing to significant changes. A large-scale executive shakeup is expected at year’s end within the DS division under a “meritocracy” framework. The heads of the memory, foundry, and System LSI divisions are all undergoing re-evaluation. Restoring competitiveness in memory semiconductors is Jun's top priority. He recently transferred some researchers from the foundry and System LSI divisions to the memory division, underscoring the urgency of regaining lost ground in HBM. Unused extreme ultraviolet (EUV) lithography equipment previously acquired for foundry production has also been repurposed for DRAM and HBM manufacturing. During a Q3 earnings conference call, Foundry Division Senior VP Song Tae-jun stated, "Our investments will prioritize transitioning existing (memory) production lines, with reduced capital expenditure in foundry. We will maximize our current production infrastructure to promptly meet customer demand in the coming year." Reportedly, some 1a (14nm) DRAM circuitry for HBM3E, delayed in supply to Nvidia due to quality issues, is undergoing a complete redesign. Samsung’s 5th-generation HBM3E, manufactured using the 1a process, has encountered thermal and yield issues, indicating possible flaws in the 1a DRAM design itself. Kim Jae-joon, Samsung’s Memory Division VP, said during the Q3 earnings call, “We are expanding supply of the current HBM3E products to existing Nvidia projects while introducing redesigned products to broaden our customer response capabilities.” The redesigned HBM3E is expected to enter mass production in the first half of 2025. Vice Chairman Jun is also exploring partnerships to outsource base die production for the 6th generation HBM4, slated for mass production in late 2025, to Taiwanese foundry competitor TSMC—a surprising move for Samsung. Samsung’s Semiconductor Research Center, part of the DS division under the Chief Technology Officer (CTO), is also undergoing extensive restructuring. The center, responsible for advanced technology development and commercialization, has faced criticism for falling behind competitors in DRAM process and HBM development. After taking on the DS division leadership in May, Jun reportedly reprimanded CTO and research head Song Jae-hyuk and other executives for what he described as complacency in R&D. Jun plans to double the center’s capacity in both quality and quantity, with an organizational overhaul aimed at streamlining development and production processes. A Samsung representative commented, “We are re-evaluating everything internally, including personnel, organizational structure, semiconductor development, and investment plans. With year-end personnel changes, the pace of transformation is likely to accelerate.” #SamsungElectronics #SemiconductorWinter #JunYounghyun #DSDivision #HBM #SKHynix #SemiconductorMarket #Foundry #MemorySemiconductor #DRAM
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- AmorePacific’s Achievement in Reducing Reliance on China Bolsters Suh Kyung-bae’s ‘Global Rebalancing’ Strategy
- AmorePacific Group Chairman Suh Kyung-bae is expected to accelerate his “global rebalancing” strategy following the company’s significant growth outside the Chinese market in the third quarter. Suh’s efforts to generate revenue beyond China have begun to yield results, with a marked increase in non-China regions contributing to the company’s success. AmorePacific’s third-quarter performance highlights this shift, as the company has successfully diversified its presence outside of China. AmorePacific reported consolidated sales of KRW 977.2 billion (approx. USD 704.4 million) and an operating profit of KRW 65.2 billion (approx. USD 47 million) in Q3, reflecting year-over-year increases of 9.9% in sales and 277.7% in operating profit. Suh emphasized the importance of diversifying AmorePacific’s markets to strengthen its global presence, stating at the company’s 79th-anniversary event in September that “expanding our market through global rebalancing is essential.” Given the favorable results of the third quarter, it is likely that Suh will intensify the focus on this strategy. An AmorePacific representative noted, “We plan to establish the United States, Japan, the United Kingdom, and India as key markets with significant growth potential. We will focus on redefining core business areas, such as sun care and hair products, and optimizing distribution channels to secure sustainable growth.” AmorePacific’s subsidiary, COSRX, is expected to play a larger role in the company's expansion into Western markets. Since acquiring a stake in COSRX in 2021, AmorePacific has launched several popular skincare products, including the “Vitamin C 23 Serum” and “Retinol 0.1 Cream.” In September, these products entered the prestigious Galeries Lafayette in Paris, signaling a strengthened Western presence. Suh has consistently pursued a global rebalancing strategy since AmorePacific's heavy reliance on China saw setbacks during the COVID-19 pandemic. This strategy is exemplified by the acquisition of COSRX, a skincare brand known for its low-irritant products tailored to sensitive skin. Established in 2013, COSRX now operates in more than 140 countries, with over 90% of its sales generated abroad. AmorePacific acquired 38.4% of COSRX for KRW 180 billion (approx. USD 129.7 million) in 2021 and secured the remaining 57.6% through call options in 2023 for KRW 755.1 billion (approx. USD 544.5 million). This acquisition has allowed AmorePacific to convert COSRX from an affiliate into a subsidiary, enabling Suh to enhance brand recognition in markets beyond China, particularly in North America and EMEA. In North America, AmorePacific has diversified its distribution channels to increase accessibility, listing its flagship brands, Laneige and Innisfree, on Amazon in 2022, along with expanding retail presence in major outlets such as Walmart and Target. Beyond North America, AmorePacific is making strides in EMEA and non-China Asia. In the second half of 2023, Laneige entered the UK and Middle Eastern markets, while Hera launched in Japan. In Southeast Asia, AmorePacific has opened stores in department stores and shopping malls in Thailand, strengthening its local customer engagement. Despite COSRX’s promising role in Western markets, concerns regarding its slowing growth have emerged. Of the 13 securities firms setting target prices for AmorePacific, five lowered their projections. DB Financial Investment analyst Heo Je-na noted, “Growth concerns for COSRX persist, with sales expected to remain flat in Q4.” Kim Myung-joo, an analyst at Korea Investment & Securities, also highlighted that “COSRX saw less than 10% growth in Q3 due to weak e-commerce sales in the U.S.,” and adjusted the target price accordingly. An AmorePacific spokesperson commented, “Under the ‘global rebalancing’ framework, we are expanding our global reach, focusing on markets such as the U.S., Europe, and India. We are also pursuing qualitative growth in China through business restructuring and other initiatives to diversify our growth drivers.” #AmorePacific #SuhKyungbae #GlobalRebalancing #COSRX #SkincareExpansion #ChinaMarketShift #NorthAmerica #EMEA #SoutheastAsia #CosmeticsIndustry
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- Chung Ji-sun Overhauls Duty-Free and Zinus Leadership, Pressure Mounts on Park Jang-seo and Chung Baek-jae
- Chung Ji-sun, chairman of Hyundai Department Store Group, has expressed his determination to no longer merely observe the struggles of Zinus, the furniture and mattress subsidiary. Although he has largely refrained from interfering in Zinus’s management since its acquisition, the prolonged underperformance has prompted him to replace the head of the company with a Hyundai Department Store Group insider, signaling the group’s intention to take a more direct role. In addition to Zinus, Hyundai Department Store Group also replaced the CEO of Hyundai DF (the operator of Hyundai Duty Free) after four years, assigning the new CEO the challenge of reversing performance trends while injecting a sense of urgency. On October 31, industry insiders interpreted Hyundai Department Store Group's executive reshuffle as Chairman Chung’s message of “performance-based management” to the leadership teams at Hyundai DF and Zinus. As announced in Hyundai Department Store Group’s regular executive reshuffle, Hyundai DF saw no executive promotions, and Zinus had only one individual promoted to executive rank. Of the group’s 29 promotions across Hyundai GF Holdings (the group’s holding company) and 14 core subsidiaries, Hyundai DF, Hyundai Dream Tour, and Daewon Kangup were the only subsidiaries without any promotions. The reshuffle is likely to be especially impactful for Hyundai DF, as it stood out among the group's promotions this year. Even though Zinus saw one promotion, it too was not spared from change, as its CEO was replaced just two and a half years after Hyundai Department Store Group’s acquisition. Sim Jae-hyung, former CEO of Zinus, took the helm in March 2022 following Hyundai’s acquisition. Despite his proactive efforts to improve performance—going as far as to send quarterly “CEO Letters” to shareholders in Q1 and Q4 last year—he resigned before completing his third year. Chung’s decision to replace Sim is seen as a serious response to the ongoing challenges at Zinus, especially given Chung’s reputation for keeping trusted executives in position for long periods. Hyundai DF’s former CEO, Lee Jae-sil, a long-time “Hyundai insider” who joined the company in 1988, has been succeeded by Park Jang-seo, head of sales, who comes from outside the company. Lee became CEO of Hyundai Duty Free (now Hyundai DF) in November 2020. Although he initially took charge during the challenging pandemic period, he was dismissed for failing to lift performance even as the market returned to normal. The new CEOs at Hyundai DF and Zinus will face considerable pressure from the outset. Given that their predecessors resigned due to poor performance, they will need to deliver noticeable results. Chung appointed an expert in duty-free operations as CEO of Hyundai DF. Park Jang-seo, who joined Hyundai DF only four years ago, previously worked in sales at Shilla Duty Free and Doosan Duty Free starting in 1992. In contrast, Lee Jae-sil’s 32-year tenure with Hyundai Department Store, where he held key roles such as head of the fashion division, highlights Chung’s rationale for selecting an industry specialist like Park. While an external expert now leads Hyundai DF, Zinus’s new CEO is an insider, Chung Baek-jae, who has spent nearly 30 years with Hyundai Department Store Group, most recently as CEO of Hyundai L&C. Some observers interpret the replacement of Sim, who was previously head of Zinus Korea, with Hyundai insider Chung Baek-jae as a move towards greater intervention in Zinus’s management by Hyundai Department Store Group. That Chung was reassigned to Zinus after just one year as head of Hyundai L&C suggests that Chairman Chung deliberated deeply over the leadership of Zinus. Chung Baek-jae joined Hyundai Department Store in 1996 and has held various leadership roles, including head of finance at Hyundai Everdigm and director of strategic planning at Hyundai L&C. Hyundai Department Store Group stated that Chung Baek-jae was selected as the ideal candidate to lead Zinus, citing his global market expertise and his potential to enhance the company's international competitiveness. #HyundaiDepartmentStore #ChungJiSun #Zinus #LeadershipChange #HyundaiDutyFree #PerformanceBasedManagement #ExecutiveReshuffle #ParkJangSeo #ChungBaekJae #CorporateStrategy
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- Chung Kyo-sun Becomes Hyundai Home Shopping Chairman, Faces Tough Challenges
- Chung Kyo-sun, vice chairman of Hyundai Department Store Group, now holds a new title: Chairman of Hyundai Home Shopping. Although he remains vice chairman within the group structure, his elevation to chairman of a key affiliate holds significant implications. However, some suggest that the promotion may not be purely celebratory. Despite Hyundai Home Shopping’s recent financial rebound, the industry remains in a downturn, which implies continued challenges ahead. Chung is expected to focus on identifying new revenue streams for Hyundai Home Shopping and other major subsidiaries. The standout of Hyundai Department Store Group’s 2025 executive reshuffle, announced on October 31, was undoubtedly Chung Kyo-sun’s promotion. Chung was first promoted to vice chairman in December 2011, only three years after he became president in 2008. However, the chairman title had remained elusive; for 13 years, he held the vice chairman role, contrasting with his older brother, Chung Ji-sun, who became chairman only five years after becoming executive vice chairman of Hyundai Department Store Group in 2002. For Chung Kyo-sun, finally attaining the chairman position is likely a deeply meaningful milestone. This delay is not attributed to any competition with his brother, Chung Ji-sun. Industry and group insiders describe the two brothers as having an unusually close relationship compared to other conglomerates. In fact, Chung Ji-sun and Chung Kyo-sun reportedly collaborate closely on major issues. Nonetheless, having two individuals with the chairman title within the same group presents challenges. It could raise questions over leadership and risk creating factional tensions among executives vying for loyalty, potentially straining the sibling relationship. The Hyundai Motor Group faced similar issues in the past, with two vice chairmen who were university classmates leading research and development. This dual-leadership structure created inefficiencies, with overlapping roles and differing reporting styles, causing considerable friction. In a 2018 executive reshuffle, Hyundai Motor Group Chairman Chung Eui-sun addressed these inefficiencies by reassigning both vice chairmen as advisors. Considering such scenarios, industry observers believe that Chung Ji-sun’s decision to be the group’s sole chairman for 17 years was a calculated move to minimize internal discord. Of course, Chung Kyo-sun remains vice chairman within the broader group structure. This decision highlights Hyundai Department Store Group's commitment to preventing potential splits within the conglomerate and maintaining a united management structure. Previously, Hyundai Department Store Group had considered a two-holding company system, which would have allowed for potential separation between the two branches of the family, but ultimately consolidated into a single holding company led by Hyundai GF Holdings. As chairman of Hyundai Home Shopping, Chung Kyo-sun now faces heightened responsibilities. Fortunately, Hyundai Home Shopping is in an improved position. For the first half of this year, Hyundai Home Shopping posted KRW 570.9 billion (US$ 411.5 million) in revenue and KRW 41.9 billion (US$ 30.2 million) in operating profit, representing year-over-year growth of 7.5% and 61.5%, respectively. Given that annual revenue had stagnated and operating profit had been in decline for three years, this is a significant achievement. The timing of Chung’s promotion aligns with these favorable results, lending additional weight to the move. It also diminishes any skepticism, as the promotion follows a clear financial rebound after four years of declining profits. Challenges remain, however. Hyundai Department Store Group acknowledged that the appointment reflects the need to address declining demand in the home shopping sector, which was once a major cash generator. “Chairman Chung’s extensive experience and expertise in the sector, which dates back to his 2009 appointment as CEO of Hyundai Home Shopping, make his insights and leadership crucial,” the group noted. Indeed, Hyundai Home Shopping’s order volume in the first half of the year reached KRW 1.0084 trillion (US$ 727 million) for TV shopping and KRW 794.6 billion (US$ 573 million) for online shopping. These two channels, which represent the company’s primary sources, experienced declines of 5.1% and 6.1%, respectively, compared to the same period last year. Without efforts to reduce costs and generate new revenue streams, sustaining an upward trend in operating profit could prove challenging. The situation improves somewhat when considering its subsidiaries. Hyundai Home Shopping incorporated Hyundai FutureNet at the end of last year and Hansome in Q1 this year as subsidiaries. This is expected to boost 2024 revenue to around KRW 3.8 trillion (US$ 2.74 billion), a substantial increase from the previous annual range of KRW 2-2.1 trillion (US$ 1.44-1.51 billion) in consolidated revenue. Looking ahead, Chung Kyo-sun is expected to work alongside CEO Han Kwang-young, maintaining a dual leadership structure that balances owner and professional management. Together, they will lead the company’s medium- to long-term strategic planning. #HyundaiDepartmentStore #ChungKyoSun #HyundaiHomeShopping #ExecutiveReshuffle #PerformanceBasedManagement #RetailIndustry #CorporateLeadership #RevenueGrowth #ConglomerateStrategy #SiblingManagement
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- Daewoo E&C Nears Revenue Goal Amid Profit Challenges, Jung Won-ju Bets on Overseas Expansion
- Daewoo Engineering & Construction Co., Ltd. (Daewoo E&C) has achieved 75.5% of its 2024 revenue target of KRW 10.4 trillion (US$ 7.5 billion) by the close of the third quarter, signaling a positive outlook for reaching its annual goal. However, Daewoo E&C has not escaped profitability issues, posting an operating profit margin of just 2.4% due to a sharp decline in operating profit. Chairman Jung Won-ju is expected to focus on improving profitability by actively expanding overseas operations. On October 31, Shin Dong-hyun, an analyst at Hyundai Motor Securities, remarked, “Daewoo E&C’s consolidated revenue for Q3 2024 was KRW 2.5478 trillion (US$ 1.84 billion), with an operating profit of KRW 62.3 billion (US$ 45 million), which fell significantly below market consensus and Hyundai Motor Securities’ estimates.” He added, “The delay in improving domestic housing cost rates and increased one-off expenses at both domestic and overseas civil engineering sites contributed to the weak profit margins.” Compared to the same period last year, Daewoo E&C’s revenue and operating profit have both declined, with revenue down 14.8% year-over-year and operating profit plunging by 67.2%. Daewoo E&C’s operating profit margin has also shown a downward trend in 2024. The operating profit margin started at 4.6% in Q1 2024, dropped to 3.7% in Q2, and declined further to 2.4% in Q3. A cumulative analysis for the first three quarters of 2024 also highlights the company’s profitability challenges. In 2023, Daewoo E&C recorded a cumulative operating profit of KRW 584.6 billion (US$ 421.5 million) with an operating profit margin of 6.6%. However, in 2024, cumulative operating profit has fallen by 51.8% to KRW 281.9 billion (US$ 203.3 million), with the operating profit margin declining to 3.6%, down 3.0 percentage points. Persistent one-off expenses have been identified as a key factor behind Daewoo E&C’s weak profitability. Yuanta Securities analyst Jang Yun-seok highlighted in an October 31 report, “Daewoo E&C has faced profitability headwinds for four consecutive quarters, with issues such as the write-off of unsold sales receivables in Q4 2023, delays in overseas plant projects in Q1 2024, additional write-offs and civil engineering cost adjustments in Q2 2024, and cost adjustments at domestic and overseas sites in Q3.” Jang also noted, “Although managed, the increasing number of unsold units, rising from 6,637 units in Q2 2024 to 6,994 units in Q3, along with the growing debt ratio, is becoming more pronounced.” Despite a decrease in liquidity risk from rising current assets and reduced current liabilities, Daewoo E&C’s financial stability has declined. Current assets rose from KRW 8.021 trillion (US$ 5.78 billion) at the end of 2023 to KRW 9.1459 trillion (US$ 6.59 billion) by Q3 2024, while current liabilities decreased from KRW 5.0335 trillion (US$ 3.63 billion) to KRW 4.9299 trillion (US$ 3.55 billion) over the same period. As a result, Daewoo E&C’s current ratio increased from 159% to 186%, approaching the generally ideal 200% benchmark. However, Daewoo E&C’s borrowings increased from KRW 2.3402 trillion (US$ 1.69 billion) at the end of 2023 to KRW 3.5631 trillion (US$ 2.57 billion) in Q3 2024, raising the debt-to-equity ratio from 176.8% to 196.0%. Nevertheless, it appears likely that Daewoo E&C will meet its annual revenue target. The company’s cumulative revenue reached KRW 7.8566 trillion (US$ 5.67 billion) by Q3 2024, representing 75.5% of its 2024 target of KRW 10.4 trillion (US$ 7.5 billion). Given its Q4 2023 revenue of KRW 2.7782 trillion (US$ 2.0 billion), achieving this year’s goal seems feasible. The securities industry also anticipates Daewoo E&C will meet its revenue target, projecting cumulative revenue for 2024 at KRW 10.5005 trillion (US$ 7.57 billion). Chairman Jung Won-ju believes that expanding Daewoo E&C’s portfolio beyond the domestic housing market and into international markets could provide a solution to its profitability challenges. In his January New Year’s address, Jung stated, “The answer lies overseas, and I want to experience the highs and lows with our partners abroad,” expressing his commitment to overseas development projects. In line with this commitment, Jung has been actively pursuing overseas opportunities. On October 18, he met Indonesian President Joko Widodo in Jakarta to discuss potential new projects and various cooperative initiatives. On October 21, he met Tran Sy Thanh, Mayor of Hanoi, Vietnam, at the Lotte Hotel in Seoul, where he pledged to strengthen collaboration on expanding projects in Hanoi. Daewoo E&C is advancing projects such as the Starlake City and Kien Giang New Town developments in Hanoi and Thai Binh. While Daewoo E&C missed one of two contracts for fertilizer plant projects in Turkmenistan that Jung visited personally, it succeeded in being selected for the Turkmenabat fertilizer plant project, valued at KRW 1 trillion (US$ 721 million), securing a large-scale overseas order. The mineral fertilizer plant project awarded to Daewoo E&C involves constructing facilities for producing phosphatic fertilizer (350,000 tons annually) and ammonium sulfate (100,000 tons annually) in Turkmenabat, the second-largest city in Turkmenistan, located 450 km east of the capital, Ashgabat. In a recent interview with MoneyS, Jung revealed plans to increase Daewoo E&C’s overseas revenue proportion to 50% within five years and to 70% within the next ten years. Currently, international construction projects account for about 20-25% of Daewoo E&C’s revenue. As of the first half of 2024, Daewoo E&C’s overseas revenue was KRW 1.1924 trillion (US$ 860 million), representing 22.5% of its total revenue of KRW 5.3088 trillion (US$ 3.83 billion). For the full year of 2023, overseas revenue was KRW 2.9289 trillion (US$ 2.11 billion), accounting for 25.1% of the total revenue of KRW 11.6479 trillion (US$ 8.4 billion). According to Overseas Construction Information Service (OCIS), Daewoo E&C secured international contracts worth US$ 63.7 million (KRW 87.7 billion) from January to September 2024, marking a 96% decrease from the same period last year, when it secured US$ 1.6857 billion (KRW 2.3231 trillion), ranking 26th. A Daewoo E&C representative stated, “With recent wins such as the KRW 1 trillion Turkmenistan mineral fertilizer plant project and investor approval for the Kien Giang New Town development project in Thai Binh, Vietnam, we are achieving visible outcomes in the overseas market. We will continue to concentrate efforts on securing high-quality contracts and risk management in key overseas markets, such as Nigeria, Iraq, and Vietnam, to meet this year’s targets.” #DaewooConstruction #OverseasExpansion #RevenueTarget #ProfitabilityIssues #ConstructionIndustry #JungWonJu #FinancialPerformance #DebtRatio #InternationalProjects #Vietnam
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- Hana Financial Nears ‘KRW 4 Trillion Club,’ Ham Young-joo Boosts Value-Up Momentum
- Hana Financial Group is on the verge of joining the "KRW 4 Trillion Club" in annual net income, achieving over KRW 1 trillion (USD 721 million) in net income for three consecutive quarters this year for the first time in its history. If Chairman Ham Young-joo achieves KRW 4 trillion (USD 2.88 billion) in net income this year, it will serve as a strong foundation for implementing Hana Financial Group's value enhancement (Value-Up) plan. According to securities reports on the 30th, Hana Financial Group's third-quarter performance has exceeded expectations. Kim Do-ha, a researcher at Hanwha Investment & Securities, noted in a report that "Hana Financial Group exceeded market expectations in the third quarter, surpassing Hanwha’s earnings estimates by 19%." Jeong Jun-seop, an analyst at NH Investment & Securities, also praised the performance, stating, “Hana Financial Group’s results and Value-Up strategy are flawless. Although there was a boost from foreign exchange gains and the reversal of project financing (PF) provisions, the core earnings were also solid.” Hana Financial Group announced the previous day that its third-quarter net income on a consolidated basis (attributable to controlling shareholders) reached KRW 1.1566 trillion (USD 834 million), a 20.9% increase from Q3 2023, surpassing market expectations by around 13%. This strong quarterly performance has led to record cumulative net income for the year. On a consolidated basis, Hana Financial Group’s cumulative net income for the third quarter is KRW 3.2254 trillion (USD 2.32 billion), an 8.3% increase compared to the same period last year. With such strong results, attention is on whether Chairman Ham can open the era of KRW 4 trillion (USD 2.88 billion) in annual net income for Hana Financial Group. However, achieving KRW 4 trillion (USD 2.88 billion) in net income requires Hana Financial Group to once again surpass market expectations. Currently, securities analysts predict Hana Financial Group’s 2024 net income to reach around KRW 3.8 trillion (USD 2.74 billion). However, given this year’s performance, the possibility of reaching KRW 4 trillion (USD 2.88 billion) is not out of reach. Hana Financial Group has recorded over KRW 1 trillion (USD 721 million) in net income each quarter this year, with KRW 1.034 trillion (USD 745 million) in Q1, KRW 1.0347 trillion (USD 745.5 million) in Q2, and KRW 1.1566 trillion (USD 834 million) in Q3. With KRW 774.6 billion (USD 558 million) remaining to reach KRW 4 trillion (USD 2.88 billion), Hana Financial Group’s average quarterly net income over the past two years across eight quarters has been approximately KRW 920 billion (USD 663.3 million). Assuming no large-scale one-off losses as in last year, there is reason for optimism. In Q3 of 2023, Hana Financial Group reported a cumulative net income of KRW 2.9779 trillion (USD 2.15 billion), marking the highest net income at that time. There were expectations of reaching the KRW 4 Trillion Club last year as well, but due to large provisions and shared financing costs in Q4, this goal was postponed. If Chairman Ham achieves KRW 4 trillion (USD 2.88 billion) in net income, it will mark a step up in Hana Financial Group’s earnings, supporting the group's Value-Up strategy. Solid profit generation ultimately strengthens the group’s capital base. The market response to Hana Financial Group’s Value-Up plan, announced the previous day, has been mostly positive. However, uncertainty remains due to volatility in the Common Equity Tier 1 (CET1) ratio, which affects shareholder return potential. During Hana Financial Group’s Q3 earnings conference call, a question was raised about whether initiating a share buyback in Q4, following a rebound in the CET1 ratio in the latter half of the year due to currency fluctuations, was a prudent decision given that the ratio had been below 13% in the first half. Choi Jung-wook, a researcher at Hana Securities, stated in a report, “Ultimately, the key is whether Hana Financial Group can stably maintain or increase the CET1 ratio above 13%. If the CET1 ratio is well-managed within the 13.0-13.5% range, achieving a 50% shareholder return rate by 2027 will not be difficult.” In its Value-Up plan announcement, Hana Financial Group emphasized that the board and management are strongly committed to recovering the undervalued stock price and increasing shareholder value. In June, Chairman Ham remarked on the K-Finance Value-Up initiative, stating, “True Value-Up goes beyond merely boosting stock prices; it’s about establishing a sustainable earnings structure and enhancing shareholder returns to grow the company’s value, enabling a win-win scenario for individual investors and all market participants. Hana Financial Group will do its utmost to become a leading Value-Up model representing K-Finance.” #HanaFinancialGroup #HamYoungJoo #KRW4TrillionClub #ValueUpPlan #NetIncome #GlobalCompetitiveness #ShareholderReturns #CET1Ratio #FinancialPerformance #KFinance
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- Shinsegae Group Begins ‘Chung Yong-jin - Chung Yoo-kyung’ Split, Sparking Ranking Concerns
- Lee Myung-hee, General Chairwoman of Shinsegae Group, has taken a significant step toward spinning off company divisions by promoting Chung Yoo-kyung, General President of Shinsegae, to Chair, under the leadership structure of her brother, Chairman Chung Yong-jin. Shinsegae Group believes that now is an ideal time to initiate the spin-off process, as core business competitiveness has strengthened, leading to improved profitability. However, it appears that the three family members—Lee Myung-hee, Chung Yong-jin, and Chung Yoo-kyung—are also concerned about maintaining Shinsegae Group’s current position in the business world post-spin-off. According to sources in the business sector on the 30th, concerns have been raised that both divisions might weaken if Shinsegae Group proceeds with a spin-off centered on Chung Yong-jin’s Emart and Chung Yoo-kyung’s Shinsegae Department Store. Shinsegae Group has traditionally emphasized synergy between its affiliates, which could be disrupted after the split. For example, Shinsegae Group launched the integrated Shinsegae Universe Club membership in June 2022, encompassing Shinsegae Department Store, Emart, SSG.com, Gmarket, Starbucks, and Shinsegae Duty-Free. The group also holds events like Landers Day to coincide with the pro baseball season opening and SSG Day in late October to November, with participation from most affiliates. In the retail industry, Shinsegae Group’s wide range of online and offline affiliates, which provide multiple consumer touchpoints, is seen as a major strength and a reason why it has maintained the 11th position among Korea’s top conglomerates for the past eight years. Aside from Shinsegae, only Lotte Group rivals Shinsegae Group in terms of affiliate scale and influence in the retail sector. However, if Shinsegae Group is split into two, there are concerns it may lose its competitive edge against Lotte Group. Among Shinsegae Group’s affiliates, the two core companies are Shinsegae Department Store and Emart. Currently, these two are united under the Shinsegae Group umbrella, but with a split, Chung Yong-jin would lead the Emart-centered group, while Chung Yoo-kyung would helm the group led by Shinsegae Department Store. In the current retail landscape, a company’s core competitiveness largely hinges on how many customers it can attract and the resulting performance. Shinsegae Group’s SSG Day and Lotte Group’s Lotte Red Festival are prime examples of conglomerates pooling the power of their affiliates to attract customers. With Lotte Mart and Lotte Department Store united under Lotte Shopping, they can focus on strengthening core competitiveness. In contrast, Emart and Shinsegae Department Store would have to pursue separate strategies after the spin-off. While Shinsegae Group cites strengthened competitiveness as the reason for the split, there’s a possibility that each division’s core strength could actually weaken post-spin-off. Although Chung Yong-jin and Chung Yoo-kyung could collaborate as siblings, achieving the same level of synergy as before could prove challenging. Some industry experts warn that without the synergy they enjoyed as a single group, the two companies might struggle to secure growth engines, especially in a scenario where the split alone could potentially lead to a drop in their corporate ranking. Shinsegae Group reportedly generates about two-thirds of its revenue from the Emart segment. For Chung Yong-jin to maintain the 11th ranking among conglomerates, he would need to replace the one-third of revenue currently contributed by the Shinsegae division. In 2022, Shinsegae reported KRW 6.3671 trillion (USD 4.59 billion) in consolidated revenue. Given the challenging retail landscape, it won’t be easy for Emart to independently generate an additional KRW 6 trillion (USD 4.33 billion) in revenue through its affiliates. Chung Yoo-kyung’s division faces similar challenges. With the affiliates that currently contribute about one-third of Shinsegae Group’s revenue, she would need to elevate their standing in the corporate rankings, which would likely be even more challenging than for Chung Yong-jin’s division given its smaller revenue scale. Predictions of a potential Shinsegae Group spin-off between siblings Chung Yong-jin and Chung Yoo-kyung have been circulating for over a decade. Lee Myung-hee has already transferred most of her Emart and Shinsegae shares to Chung Yong-jin and Chung Yoo-kyung, respectively. Lee still holds a 10% stake in both Emart and Shinsegae, while Chung Yong-jin owns 18.56% of Emart shares, and Chung Yoo-kyung holds 18.56% of Shinsegae shares. It is expected that Lee will complete the spin-off process by transferring her remaining Emart shares to Chung Yong-jin and her Shinsegae shares to Chung Yoo-kyung. A retail industry representative noted, “A spin-off could enhance business efficiency within the retail sector, but there are concerns that buying power and market standing could decline.” #ShinsegaeGroup #LeeMyungHee #ChungYongJin #ChungYooKyung #CorporateSplit #RetailIndustry #Emart #ShinsegaeDepartmentStore #Synergy #KoreaConglomerates
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- Despite semiconductor slump, smartphones ‘hold strong,’ boosting Roh’s reappointment.
- Under the leadership of President Roh Tae-moon, Samsung Electronics' Mobile Experience (MX) Division has been evaluated as performing well this year despite the semiconductor crisis. Roh maintained Samsung’s top position in global smartphone shipments by increasing Galaxy S24 series sales by more than 20% compared to last year. Roh is focusing on boosting sales for the Galaxy S25 series, set to launch early next year, by enhancing Galaxy AI features and incorporating the newly developed ‘One UI 7’ operating system, which he personally supervised. Despite ongoing concerns about the slow sales of Galaxy foldable smartphones and rising costs, such as Qualcomm’s increased application processor (AP) prices, Roh’s chances of reappointment in the upcoming executive reshuffle at the end of November appear strong. As of the end of September, the Galaxy S24 series had sold approximately 28.9 million units, a 26.3% increase compared to the same period last year. Samsung maintained its leading position in global smartphone shipments for Q3 with an 18% market share, closely edging out Apple. While the Galaxy Z Fold and Flip 6 recorded a slight decline of 9.2% with 3.6 million units shipped in their first three months, the strong performance of the Galaxy S24 series compensated for this shortfall. Notably, the newly launched Galaxy Z Fold Special Edition sold out within ten minutes, thanks to its slimmer design, 200-megapixel camera, and 16GB RAM, showing potential for growth in foldable phone sales. Samsung’s smartphone sales have been particularly highlighted as the semiconductor division, responsible for 60% of the company’s overall revenue, continues to struggle. The success of the Galaxy S24 series has heightened anticipation for the Galaxy S25 series, expected early next year. Lee Chang-min, a researcher at KB Securities, noted that Samsung is likely to shift its focus back to the Galaxy S series as the main driver of new technology and marketing strategies. Roh is also dedicated to the success of the Galaxy S25 series, which will feature ‘One UI 7,’ an operating system he directly led in development, along with enhanced Galaxy AI capabilities. Galaxy AI is anticipated to play a critical role in the series' success. Gene Park, a researcher at Counterpoint Research, stated, “To maintain its leadership, Samsung needs to introduce differentiated AI features that impress consumers.” Confident in the Galaxy S25’s prospects, Samsung is reportedly preparing to produce 22 million units of the series by June 2025, with total shipments expected to match the Galaxy S24’s projection of 30 million units. With the Galaxy S24 series’ success, Roh’s likelihood of reappointment has increased. Industry observers expect him to continue his tenure despite intense competition from Apple and Chinese manufacturers. In the premium segment, Apple recently launched its ‘Apple Intelligence’ AI, stepping into the AI smartphone market, while Huawei, Xiaomi, and Vivo continue to expand market share with affordable models. Samsung smartphones still face challenges, particularly with the rising cost of APs. To mitigate costs, Samsung has employed a dual AP strategy, utilizing both its in-house Exynos and Qualcomm’s Snapdragon chips. However, production issues with the Exynos 2500 may prevent its inclusion in the Galaxy S25 series. Qualcomm’s new Snapdragon 8 Elite, likely to be included, is 21% more expensive than previous models, while MediaTek’s Dimensity 9400, another option, also carries a higher price than Samsung’s in-house chips. Lee Seung-woo, a researcher at Eugene Investment & Securities, estimated that due to cost pressures, Samsung’s MX Division operating profit for Q3 is around KRW 2.6 trillion (USD 1.87 billion), down 25% year-over-year. Samsung also faces increased competition from Apple and Chinese manufacturers, who are intensifying their “sandwich” strategy. Apple has entered the premium AI smartphone market, while Chinese brands like Huawei, Xiaomi, and Vivo are capturing market share in the low-cost segment. Huawei recently introduced the world’s first “triple foldable” smartphone, achieving a 27.5% market share in the global foldable phone market, overtaking Samsung, which held a 16.4% share. The Financial Times quoted analysts who believe that the performance of Samsung’s Galaxy S25, expected to launch in January, will serve as a critical test for the company’s future competitiveness. #SamsungElectronics #GalaxyS25 #RohTaeMoon #SmartphoneMarket #MobileExperienceDivision #GalaxyAI #FoldablePhones #OneUI7 #QualcommAP #GlobalMarketShare
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- HD Hyundai Construction Equipment Struggles, Cho Young-cheul Awaits Post-Election Recovery
- Cho Young-cheul, CEO of HD Hyundai XiteSolution and HD Hyundai Infracore, is facing a downturn in the construction machinery business for the first time since HD Hyundai Group restructured into three core business sectors. With his term nearing its end, the sluggish performance in the construction sector is a significant concern for Cho. However, as Vice Chairman Chung Ki-sun’s leadership transition within the group gains momentum, Cho remains a trusted leader, focusing on new markets and preparing for a post-U.S. presidential election recovery. Both HD Hyundai Construction Equipment and HD Hyundai Infracore are not expected to see substantial performance improvements until the second half of 2024. Recent reports from securities firms have lowered their target stock prices, citing weak short-term prospects. Market observers highlight the impact of uncertainty surrounding the U.S. presidential election on North American demand. In Q3 2023, HD Hyundai Construction Equipment posted consolidated revenue of KRW 816.8 billion (US$ 590 million) and operating profit of KRW 43 billion (US$ 31 million), both showing declines from the previous year and quarter. The 20% to 27% drop in operating profit was attributed to increased fixed costs due to reduced volumes. Sales in North America decreased by 11% to KRW 203.2 billion, and European sales fell by 15% to KRW 97 billion. Demand in North America weakened amid election-related uncertainty, while European markets showed no signs of recovery. The company reported that demand for excavators and medium-to-large wheel loaders in advanced markets dropped by 21% year-over-year to 53,700 units in Q3 2023. The construction machinery segment, which accounts for 75% of total sales, saw a 13% decline to KRW 634 billion. The industrial vehicle segment also contracted, with sales dropping by 19% to KRW 101.2 billion. HD Hyundai Infracore’s performance fared even worse. In Q3 2023, the company posted revenue of KRW 909.8 billion (US$ 660 million) and operating profit of KRW 20.7 billion (US$ 15 million), down approximately 15% and 75%, respectively, from the previous year. Construction machinery operations reported an operating loss of KRW 12 billion (US$ 8.7 million) due to rising promotional and logistics costs. Combined sales in North America and Europe fell by 37% to KRW 227 billion, with the ongoing war in Ukraine contributing to reduced government budgets and further weakening demand. Construction machinery sales, which comprise 70% of Infracore’s revenue, declined by 17% to KRW 654.8 billion, while the engine segment posted a revenue decline of 11% to KRW 255 billion. Both companies are expected to miss their annual performance targets. HD Hyundai Construction Equipment had aimed for KRW 4.01 trillion in revenue and KRW 263.8 billion in operating profit, while HD Hyundai Infracore’s targets were KRW 5 trillion in revenue and KRW 445 billion in operating profit. However, forecasts now predict HD Hyundai Construction Equipment will achieve KRW 3.5 trillion in revenue and KRW 200 billion in operating profit, and HD Hyundai Infracore will post KRW 4.1 trillion in revenue with KRW 230 billion in operating profit. Cho expressed optimism in a recent interview, suggesting that the global construction machinery market could recover in the second half of 2024. HD Hyundai XiteSolution is preparing for future growth by expanding into emerging markets like India, Indonesia, and Brazil. In Q3 2023, HD Hyundai Construction Equipment recorded sales of KRW 104.2 billion in India and KRW 57.9 billion in Brazil, marking year-over-year growth of 14% and 5%, respectively. The company attributes the gains in India to steady infrastructure investments and in Brazil to an expanded product lineup. HD Hyundai Construction Equipment expects demand in these regions to increase further, driven by ongoing infrastructure investments and potential additional interest rate hikes in Brazil. Meanwhile, Indonesia’s plans to complete the relocation of its new capital, Nusantara, by 2028 are also expected to stimulate demand for construction machinery. Cho Young-cheul’s challenges come at a time when HD Hyundai Group is transitioning to an owner-management structure under Chung Ki-sun, marking a pivotal shift. The group’s restructuring began with the 2021 acquisition of HD Hyundai Infracore (formerly Doosan Infracore) and the launch of HD Hyundai XiteSolution (formerly Hyundai Genuine) as an intermediate holding company for construction machinery. The group is now centered on three core business pillars—shipbuilding (HD Korea Shipbuilding & Offshore Engineering), energy (HD Hyundai Oilbank), and construction machinery (HD Hyundai XiteSolution). These changes align with the leadership transition as Chung Ki-sun took over as Vice Chairman in 2021, with key former executives like Ka Sam-hyun and Son Dong-yeon stepping down to make way for the new management structure. While the construction machinery sector struggles, other HD Hyundai Group divisions are thriving. HD Korea Shipbuilding & Offshore Engineering is expected to achieve an operating profit of KRW 1.3 trillion in 2023, thanks to a turnaround from previous losses and robust order intake. HD Hyundai Electric, benefiting from high demand in the power equipment market, is projected to post a record operating profit of KRW 711.7 billion this year. Cho’s current term as a board member of both HD Hyundai XiteSolution and HD Hyundai Infracore is set to expire in March 2025. As one of the group’s most experienced leaders—born in 1961—he has worked closely with Chairman Kwon Oh-gap over the years, holding key roles such as CFO at Hyundai Oilbank in 2010, CFO of Hyundai Heavy Industries in 2014, and CFO of Korea Shipbuilding & Offshore Engineering in 2019. His long-standing tenure and deep expertise have solidified his position within the group. Looking ahead, Cho aims to stabilize performance by focusing on emerging markets and preparing for a gradual recovery in the global construction machinery market after the U.S. presidential election. The company remains committed to strengthening its presence in India, Indonesia, and Brazil to weather ongoing market challenges and ensure sustainable growth. #ChoYoungCheul #HDHyundai #HDHyundaiXiteSolution #HDHyundaiInfracore #constructionmachinery #leadership #emergingmarkets #marketrecovery #KoreaShipbuilding #businessrestructuring #ChungKiSun
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- Despite value-up efforts, DGB Financial faces a "quiet" market; Hwang Byung-woo’s challenge to elevate the group.
- Hwang Byung-woo, Chairman of DGB Financial Group, faces a challenging path in advancing the group into a "national financial holding company." Despite announcing both Q3 earnings and a value-up plan aimed at enhancing corporate value, the group has struggled to meet market expectations due to underwhelming performance and a lack of concrete details in the plan. According to securities industry reports on the 29th, it is anticipated that it will take considerable time for DGB Financial Group to achieve stable growth. One of the primary obstacles is the persistent impact of real estate project financing (PF) provisions centered on its securities subsidiary, iM Securities. Kang Seung-geon, a researcher at KB Securities, noted, "DGB Financial Group faces risk from PF provisions related to its securities subsidiary iM Securities, impacting its risk-weighted assets (RWA)," adding, "Performance improvements are expected to be limited this year." DGB Financial Group recorded a cumulative consolidated net income of KRW 252.6 billion (US$ 182.2 million) for the third quarter, a 40.5% year-over-year decline. Although the banking subsidiary iM Bank posted its highest-ever quarterly results, the deteriorating performance of non-bank subsidiaries, particularly iM Securities, dragged down the group’s overall performance. Due to the impact of real estate PF provisions, iM Securities swung to a quarterly net loss. In a conference call following the earnings announcement, DGB Financial Group expressed intentions to resolve the PF provisions issue by the end of this year. However, market analysts predict normalization may not occur until after the project reassessment in November, suggesting a longer timeline for recovery. Nam Min-wook, an analyst at DS Investment & Securities, remarked, "Considering the project re-evaluation in November, additional PF provisions in Q4 seem inevitable." Alongside its Q3 earnings, DGB Financial Group announced a value-up plan focused on buying back and canceling KRW 150 billion (US$ 108.2 million) in shares by 2027. However, the plan is criticized for lacking specifics when compared to the disclosures of other financial holding companies, as it only outlines mid- to long-term targets without immediate action plans. The market reaction has been subdued as both the performance results and value-up plan failed to exceed expectations, with securities firms either lowering or maintaining target stock prices. Seol Yong-jin, an analyst at SK Securities, commented, "DGB Financial Group's stock price will depend on its ability to safeguard 2024 earnings and implement its value-up plan as scheduled," downgrading his short-term investment rating to neutral. Hwang, who took office as Chairman of DGB Financial in March, initially set the transition of Daegu Bank to a national bank as a top priority. While iM Bank was launched in May after successfully achieving this status, the group is still seen as lacking the foundational strength required to be a true national financial holding company. As of the previous day’s market close, DGB Financial Group's market capitalization stood at KRW 1.3938 trillion (US$ 1 billion), which is significantly lower compared to other regional financial groups like JB Financial Group and BNK Financial Group, each with market capitalizations in the KRW 3 trillion range. There is also some skepticism regarding DGB’s capacity for shareholder returns, given the drop in net income compared to last year. Financial data provider FnGuide projects that DGB Financial Group’s consolidated net income will fall by 17.4% in 2024 to KRW 320.3 billion (US$ 231 million) compared to 2023. Hwang is undertaking efforts to elevate DGB Financial into a "national financial holding company." In September, he outlined a new mid-term strategy for the group, aiming to advance as a national financial group in line with iM Bank’s transition to a national bank. Hwang commented at the time, "We will carefully manage risks and pursue portfolio reorganization and structural innovation to deliver satisfactory outcomes for all stakeholders, including shareholders," and promised to announce the group's "2030 Vision" by the end of this year to set a long-term strategy and vision as a national financial group. However, aside from achieving the transition to a national bank, there have been no significant visible accomplishments in Hwang's first year as chairman. Industry experts predict concrete results may not materialize until after 2025. Hwang is reportedly preparing to address the organizational structure of iM Securities, where the largest issues with PF provisions lie, as part of efforts to restore confidence in DGB Financial Group. DGB Financial Group indicated its commitment to resolving the PF provisions issue by appointing a new head of the “PF Solutions” department at iM Securities during its Q3 earnings announcement, signaling its determination to address the issue externally. On the same day, DGB Financial Group also expressed its intention to focus on improving its stock price and enhancing shareholder returns. In a press release, the group stated, "We will work to faithfully implement our corporate value enhancement plan by conducting a targeted share buyback to increase the total shareholder return rate." Hwang, as the first DGB Financial Group chairman to lead after iM Bank’s transition to a national bank, is regarded as well-suited to guide the group forward as a national financial holding company. Born in 1967, Hwang joined Daegu Bank’s Economic Research Institute as a researcher in September 1995. He continued to work within the DGB Financial Group, rising to the position of head of iM Bank in January 2023. In March 2024, Hwang became Chairman of DGB Financial Group while concurrently serving as head of iM Bank. In May 2024, Daegu Bank successfully transitioned to a national bank and was rebranded as iM Bank. #DGBFinancialGroup #HwangByungwoo #NationalFinancialHolding #RealEstatePF #iMSecurities #iMBank #ShareholderReturns #KoreanFinance #FinancialPerformance #DGBGrowth
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- Economic Downturn Chills Hiring; Samsung, Only Top 4 with Open Recruitment, Also Narrows
- As domestic conglomerates face economic downturns, they are reducing recruitment in the second half of the year. Some companies have even scrapped new hiring plans entirely. Samsung Group, the only one among the top four conglomerates to maintain an open recruitment process, is expected to reduce its hiring scale this year, narrowing the "big company hiring gateway" even further. According to industry sources on the 29th, Samsung, which conducted the Global Samsung Aptitude Test (GSAT) for college graduates on October 26-27, is anticipated to hire significantly fewer new employees in the second half compared to last year. The GSAT was held for Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, Samsung Biologics, Samsung Bioepis, Samsung C&T, Samsung Heavy Industries, Samsung E&A, Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Card, Samsung Securities, Samsung Medical Center, Hotel Shilla, Cheil Worldwide, S-1, and Samsung Welstory. Samsung previously announced plans in 2022 to hire 80,000 new employees over five years. This led to expectations of hiring around 10,000 people this year. However, facing internal and external challenges, particularly at Samsung Electronics, the group appears to be adjusting its hiring plans for college graduates downward. An employee in Samsung Electronics' Device Solutions (DS) division said, “The semiconductor division is reallocating staff through departmental restructuring, so fewer new graduates are being hired this year. Recruitment of experienced hires is also minimized, except for specific Ph.D. candidates.” Some even speculate that the number of new college graduates hired at Samsung Electronics this fall could drop to three-digit figures, rather than the usual four. If Samsung, the only company among the top four conglomerates to maintain open recruitment, reduces its hiring scale, job seekers are likely to face even greater difficulties. When asked about the scale of hiring, another Samsung Electronics official said, "It’s difficult to specify the exact hiring scale for the second half of this year, but it will largely adhere to the 2022 recruitment plan." SK Group, Hyundai Motor Group, and LG Group have already transitioned from open recruitment to monthly rolling recruitment to more flexibly manage staffing in response to the business environment. Since around 2020, they phased out the open recruitment process, opting instead to announce large-scale hiring plans. In 2022, SK Group and LG Group unveiled plans to create 50,000 domestic jobs over five years in future growth fields. Hyundai Motor Group announced early this year that it would hire 80,000 people over the next three years. In contrast to Hyundai’s recent hiring expansion, SK Group and LG Group are reducing recruitment. According to LG’s ESG report, the number of newly hired permanent employees increased slightly from 19,919 in 2021 to 20,498 in 2022 but fell to 16,639 in 2023. This figure includes hiring from LG, LG Electronics, LG Chem, LG Uplus, and LGCNS. Recruitment at SK Group’s largest affiliates, including SK Hynix, SK Innovation, and SK Telecom, is also declining. New hires at SK Hynix decreased from 3,901 in 2022 to 739 in 2023. Similarly, SK Innovation’s hires dropped from 2,029 to 1,246, and SK Telecom’s from 537 to 424 over the same period. SK Group is focusing on organizational efficiency through portfolio rebalancing, with most affiliates taking a conservative approach to hiring except for SK Hynix, which has benefited from improved market conditions for high-bandwidth memory (HBM). The number of large companies not hiring at all in the second half of the year is also on the rise. According to an August survey by the Federation of Korean Industries (FKI) of the top 500 companies by revenue, 57.5% of large companies had either not yet set recruitment plans or planned no new hiring for the second half. This represents a 0.9% increase in companies not planning to hire compared to the same survey in the second half of 2023. Lee Sang-ho, head of FKI’s Economic & Industrial Headquarters, commented, “Amid a worsening economic environment, with concerns over global economic slowdown, sluggish domestic demand, and declining business sentiment, companies are expected to take a conservative approach to hiring. Government incentives are necessary to encourage new industries, corporate investment, and job expansion.” #SamsungGroup #DGBFinancialGroup #KoreanEconomy #JobMarket #HiringFreeze #OpenRecruitment #Conglomerates #SKGroup #LGGroup #HyundaiMotorGroup
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- Shinsegae Group Leadership Transition Draws Attention: Focus Shifts from Lee Myung-hee to Chung Yong-jin
- The annual executive reshuffle at Shinsegae Group is imminent, with growing anticipation that Chung Yong-jin, the group's chairman, will play a dominant role this year, unlike in previous years. In 2022, about 40% of affiliate CEOs were replaced, with Lee Myung-hee, the group’s honorary chairperson, leading the reshuffle. However, since 2023 marks the first year that Lee passed the chairmanship to her son, it is widely expected that she will defer to Chung's leadership in the upcoming personnel changes. According to sources in the retail industry on October 28, this year’s executive reshuffle is likely to reflect Chung’s vision and decisions more prominently. Discussions around leadership influence surfaced during last year’s reshuffle when Chung reportedly opposed replacing Kang Hee-seok, the former CEO of Emart. However, Lee insisted on Kang’s removal, despite his close relationship with Chung, established during their time together at Bain & Company. Kang was recruited by Chung to lead Emart in 2019. At the time, Lee Myung-hee held the title of chairperson, while Chung Yong-jin served as vice chairman, making it natural for the chairperson’s views to carry more weight. However, her direct involvement in executive decisions, breaking the usual practice of delegating to Chung and Chung Yoo-kyung (president of Shinsegae Department Store), was seen as unusual. The situation has now shifted. In March 2023, Lee promoted her son to chairman, taking on the honorary chairperson title herself. This move was interpreted as her signaling Chung’s status as the group’s next leader while keeping herself available to intervene if needed. However, eight months into Chung’s tenure, analysts believe it will be challenging for Lee to step back into the spotlight. The group is also keen to avoid any controversy over leadership disputes similar to those from last year. Retail industry insiders argue that with Chung now officially holding the chairman title, it would be awkward if he were unable to exercise full authority over executive decisions. Although he represented Shinsegae Group even as vice chairman, the symbolic weight of the chairman’s title makes it essential for him to take full control. Additionally, with Lee delegating the chairmanship to her son and Chung Yoo-kyung expected to be promoted to vice chairperson, it is likely that Lee will leave personnel decisions to the siblings to further empower them. There is also no clear affiliate within Shinsegae Group where Lee is expected to intervene directly this year. Last year’s reshuffle, led by Lee, already replaced 40% of affiliate CEOs. Moreover, Chung’s flexible personnel policy has already resulted in leadership changes at underperforming affiliates, such as Shinsegae Construction, SSG.com, and Gmarket. Chung’s post-promotion focus on management suggests that his influence will be significant in this year’s reshuffle. In the past, Chung demonstrated a willingness to recruit external talent, appointing Kang Hee-seok as CEO despite Kang’s non-traditional background. Although Kang's removal due to poor performance raised concerns, Chung’s executive choices this year are expected to differ. Notably, since his promotion, Chung has practically stopped his usual activities on social media and reportedly quit golf, focusing solely on managing the group. This intensified commitment indicates that Chung is likely to use his deeper understanding of the group to shape this year’s personnel decisions. Some insiders suggest that Chung may use this reshuffle to promote internal talent he has personally identified, addressing internal dissatisfaction with the group’s frequent personnel changes. Strengthening cohesion within the organization through his leadership choices could be one of his primary goals this year. #ShinsegaeGroup #ChungYongjin #LeeMyunghee #executivereshuffle #corporategovernance #leadershiptransition #Koreamarket #retailindustry #personnelstrategy #executivedecisions
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- CJ Olive Young’s Lee Sun-jung Goes All-In on Experiential Stores to Capture Domestic and International Customers
- Lee Sun-jung, CEO of CJ Olive Young, is focusing on expanding experiential beauty stores to capture both domestic and international customers. As CEO, Lee is aiming to enhance customer relationships through experiential marketing that leverages the strengths of physical stores, allowing direct engagement with consumers. This approach is particularly timely given the rise of online competitors in the beauty sector, as CJ Olive Young looks to differentiate itself through a more hands-on, in-store experience. According to CJ Olive Young, a growing number of stores are now emphasizing customer experience over product sales, designing spaces to provide expanded opportunities for beauty exploration. For instance, the Olive Young store opening this November in Seongsu-dong, Seoul, named Olive Young N Seongsu, will focus on offering unique experiences not found in traditional stores, with the first floor specifically structured around interactive spaces. Similarly, the Olive Young Seomyeon Town store in Busan recently underwent renovations to expand its experiential offerings. Reopened on October 25, this store’s first floor is dedicated to a wide array of color cosmetics, allowing customers to find their personal shades through an AI-based “Pic Your Color” service. CJ Olive Young categorizes its experience-focused stores as “Town Stores” and “Specialty Stores.” Unlike the standard stores spread across the nation, these are designed primarily to offer special experiences rather than focusing solely on sales. Town Stores, located in key regions, reflect the latest Beauty & Health (B&H) trends and provide ample space for customers to immerse themselves in these offerings. There are currently over 20 such stores across Korea. Specialty Stores reflect unique local characteristics, such as the Jeju Jungmun store, which features Dolhareubang statues and Jeju-exclusive products, as well as photo zones to capture these special moments, making the store a notable part of a Jeju travel itinerary. Lee’s focus on expanding these experiential stores aligns with a strategic goal to foster customer loyalty in the face of competition from online platforms dominating the Beauty & Health market. CJ Olive Young, a recognized leader in Korea’s offline beauty and health market, continues to post strong revenue. In the second quarter of this year, it recorded sales of KRW 1.2079 trillion (approximately USD 870 million), achieving record quarterly revenue and marking four consecutive quarters with over KRW 1 trillion in sales. However, Lee cannot overlook the rapid growth of online-based competitors like Musinsa and Kurly, which are aggressively expanding in the Beauty & Health sector. Since the COVID-19 pandemic, e-commerce has increasingly supplanted offline retail across the distribution industry, and in the long term, market dominance may shift to online-based platforms in the Beauty & Health field as well. To counter this trend, Lee is leveraging the unique strengths of offline retail, creating more opportunities for direct, tangible customer interactions to solidify customer relationships and maintain a stronghold in the market. Lee is also leveraging experiential marketing to build a customer base in international markets. CJ Olive Young’s stores in popular tourist areas like Myeongdong, Dongdaemun, Hongdae, Gangnam, Incheon, Busan, and Jeju are managed as global shopping hubs. These locations prioritize hiring multilingual staff and displaying product names and event information in English. To enhance convenience for international visitors, CJ Olive Young introduced devices in April capable of real-time translation into 16 languages across its nationwide stores. CJ Olive Young expects that foreign shoppers’ in-store experiences will lead to repeat purchases on the Olive Young Global Mall upon their return home. For instance, the Myeongdong Town store’s second floor now features a kiosk for signing up for Global Mall memberships, creating a link between online and offline shopping for foreign customers so they can continue their K-beauty experience post-visit. In fact, Olive Young’s popularity among international visitors is spreading through social media. Influencers with large followings and regular social media users alike are sharing their experiences at Olive Young, describing everything from exploring various product categories to tax refund methods for purchases. Many tag Olive Young’s global account (@Oliveyoung_global), which links to the Olive Young Global Mall, encouraging further online purchases. Lee Sun-jung became CEO of CJ Olive Young in October 2022 through internal promotion, making her the youngest CEO in CJ Group and the first female CEO of CJ Olive Young. Her leadership continues to gain recognition, with the company achieving record annual performance last year and posting strong results every quarter this year. Maintaining CJ Olive Young’s dominant position in Korea’s Beauty & Health market and demonstrating growth potential in international markets remain key challenges in her role. #CJOliveYoung #LeeSunJung #KBeauty #BeautyRetail #ExperientialMarketing #TownStore #SpecialtyStore #GlobalMall #BeautyHealth #CustomerExperience
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- Hyundai’s Supernal Paves Way for ‘Air Taxi’ Commercialization, Advancing Chung Eui-sun’s Mobility Vision
- Hyundai Motor Group’s urban air mobility (UAM) subsidiary, ‘Supernal,’ is accelerating preparations for commercializing its air taxi services in the United States through collaborations with multiple companies, capitalizing on the country’s regulatory advancements. Chairman Chung Eui-sun has outlined a vision to transform Hyundai Motor Group from an automotive manufacturer into a next-generation mobility enterprise that includes personal air vehicles, and ‘Supernal’ represents a significant step toward realizing this vision. According to reports from ‘The Washington Post’ and ‘Bloomberg’ on the 28th, the U.S. Federal Aviation Administration (FAA) is refining regulations for urban air mobility, including ‘air taxis,’ to expedite the commercialization of these services. The FAA has clarified the pilot training and certification processes required for UAM, setting the stage for commercial operations. The agency has also officially categorized electric vertical takeoff and landing vehicles (eVTOLs) as part of the U.S. air traffic system, allowing them to use existing airport and helipad infrastructure. ‘Bloomberg’ noted, “The FAA’s finalized regulations have brought air taxi commercialization one step closer,” and these regulatory updates are expected to give a boost to ‘Supernal’s’ development and business preparations as it targets U.S. commercial operations by 2028. ‘Supernal’ recently partnered with transport company ‘Blade Air Mobility’ and private jet firm ‘Clay Lacy Aviation,’ intensifying its focus on commercializing air taxis. The company plans to launch its eVTOL model, the ‘S-A2,’ during the 2028 Los Angeles Olympics, with an annual production target of 100 to 200 units. Beyond passenger air taxis, ‘Supernal’ is also pursuing growth opportunities in business-to-business (B2B) services, such as airport logistics and medical transport. The recent regulatory clarity surrounding UAM is expected to further facilitate ‘Supernal’s’ expansion into these areas. The U.S. is projected to become the largest UAM market, where startups like ‘Joby Aviation’ and ‘Archer Aviation’ are currently considered leaders in eVTOL technology, both having completed successful test flights and targeting commercialization ahead of ‘Supernal,’ which has yet to conduct an official flight. However, ‘Supernal’s’ competitive edge lies in Hyundai’s extensive experience in mass production, which it can leverage for efficient eVTOL production. Unlike other firms reliant solely on external investment, Hyundai’s direct involvement in ‘Supernal’ offers advantages in production automation, knowledge sharing, and workforce exchange. The latest ‘S-A2’ model, unveiled in January, also incorporates automotive design elements. ‘Supernal’s’ CTO David McBride expressed confidence, stating to the aviation journal ‘Vertical,’ “While we may not be the first to launch an eVTOL in the market, we could be the first to mass-produce it.” Hyundai’s focus on UAM as a future growth engine, supported by group-wide resources, is another significant advantage. Back in October 2019, then-Vice Chairman Chung Eui-sun shared Hyundai’s vision for the future at a town hall meeting, stating, “The future of Hyundai will be 50% automobiles, 30% personal aircraft, and 20% robotics,” thus outlining Hyundai’s commitment to urban air mobility. Many UAM startups are backed by automotive companies, recognizing that next-generation mobility could be a high-value sector for showcasing technological prowess and providing integrated mobility services linked to ground transportation. ‘Joby Aviation’ and ‘Archer Aviation,’ for instance, have received $500 million (approximately KRW 692.8 billion) and $165 million (approximately KRW 228.6 billion) in investments from ‘Toyota’ and ‘Stellantis,’ respectively. In comparison, ‘Supernal’ holds a financial advantage. As a Hyundai-owned and funded entity, ‘Supernal’ has more straightforward access to the capital needed for production and regulatory approvals than competitors who rely on partnerships. Hyundai, Kia, and Hyundai Mobis have collectively invested $920 million (approximately KRW 1.2747 trillion) in ‘Supernal,’ surpassing competitor funding levels. With regulatory advancements in the U.S. opening a path to commercialization, ‘Supernal’ is expected to leverage synergies with Hyundai Motor Group as it seeks to establish itself as a prominent player in next-generation mobility. ‘TechRadar’ commented, “Companies like ‘Joby Aviation’ and Hyundai-owned ‘Supernal’ appear to be readying to launch air taxis in the near future.” #HyundaiMotorGroup #Supernal #UrbanAirMobility #UAM #eVTOL #AirTaxi #ChungEuiSun #NextGenMobility #FAA #Aerospace
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- KB Financial Group Stock Hits KRW 100,000: Yang Jong-hee Leads Growth
- Yang Jong-hee, Chairman of KB Financial Group, is cementing the company's position as a leader in both performance and value growth this year. His leadership, now in its second year, is receiving increased momentum. On October 25, KB Financial Group’s stock closed at KRW 100,900, up 8.26% from the previous day. This marked the highest price since the group was listed in October 2008 and ushered in a new era where a domestic bank stock surpassed the KRW 100,000 threshold for the first time among the four largest financial groups in Korea. KB Financial Group's market capitalization now ranks 7th in the KOSPI index, following Samsung Electronics, SK Hynix, LG Energy Solution, Samsung Biologics, Hyundai Motor, and Celltrion. Yang’s new shareholder return policy and strategies to enhance corporate value, announced the previous day, had an immediate positive impact on the market. During KB Financial’s third-quarter earnings conference, Yang personally unveiled a policy to return excess capital to shareholders once the Common Equity Tier 1 (CET1) ratio reaches 13%. This advanced policy aligns the company's profitability and growth with greater shareholder returns. Yang emphasized, “Like leading global firms such as JPMorgan, our shareholder return policy links capital ratios with returns, ensuring that the higher our capital ratio, the more we return to shareholders, with no cap on the total shareholder return ratio. KB Financial will lead the industry with this policy and maintain the highest shareholder return ratio in the sector.” The CET1 ratio, a key indicator of a financial company’s ability to absorb losses, reflects KB Financial’s confidence in its financial management and profitability under this policy. In addition to setting bold targets, Yang introduced innovative methods to enhance value differentiation, earning praise from analysts. KB Financial’s long-standing leadership in share buybacks and cancellations among the top financial groups heightened market expectations for its new value enhancement strategy. Yang announced that starting in 2025, KB Financial’s asset growth targets and key performance indicators will be adjusted to align with the new shareholder return policy, underscoring his commitment to sustainable value growth. Securities firms responded positively, raising their target prices for KB Financial stock. Hana Securities, in its latest report, noted that KB Financial’s CET1 ratio increased to 13.85% in the third quarter, predicting that the company will achieve a shareholder return ratio of 40.3% this year, making it the first bank to surpass the 40% mark. The report further projected that under the new policy, KB Financial would achieve a 50% total shareholder return ratio faster than any other bank. Choi Jung-wook, an analyst at Hana Securities, commented, “By linking the CET1 ratio with shareholder returns, KB Financial has increased predictability. As the capital ratio rises, market expectations for expanded shareholder returns will grow, earning positive evaluations.” Kim Do-ha, an analyst at Hanwha Investment & Securities, remarked, “Even if KB Financial utilizes all its excess capital for shareholder returns by the year’s end, it is expected to maintain a similar capital ratio through annual profits. This policy offers a relatively sustainable structure.” The anticipation surrounding KB Financial’s new policy is backed by its record-breaking performance. The group reported a consolidated net profit of KRW 1.614 trillion (US$1.164 billion) in the third quarter of 2024, marking a 17.4% increase from the same period last year. This widened the gap with its main competitor, Shinhan Financial Group, which recorded a net profit of KRW 1.2386 trillion (US$892 million), solidifying KB Financial’s position as the leading financial group. Despite narrowing net interest margins (NIM) due to declining market interest rates, the growth of non-bank subsidiaries has contributed to the group’s performance. Cumulative net profit for the first three quarters of 2024 reached KRW 4.3953 trillion (US$3.171 billion), setting a new record. At this pace, Yang is likely to lead KB Financial to become the first financial holding company to achieve an annual net profit of KRW 5 trillion (US$3.606 billion) by the end of the year. Yang, who officially took office as the 7th chairman of KB Financial Group in November 2023, is in his first full year in the role. Since his appointment, he has achieved notable results in increasing non-bank subsidiary profits and supporting share price growth in line with the government’s value-enhancement policies. However, he still faces challenges, such as normalizing the performance of KB’s overseas operations, including KB Bukopin Bank in Indonesia, addressing reduced profitability during periods of interest rate cuts, and improving internal controls. In his latest announcement, Yang reiterated his commitment to corporate value growth, stating, “We will focus all our efforts on sustainable management that balances profitability, stability, and shareholder value. Beyond quantitative growth, we aim to achieve qualitative improvements by reshaping KB Financial's operations and leading the industry in shareholder returns.” #KBFinancialGroup #YangJonghee #banking #shareholderreturns #CET1ratio #financialleadership #Koreanbankstocks #valueenhancement #nonbanksubsidiaries #marketcapitalization
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- Hyundai Targets India's Rapidly Growing, EV Market with Localized Models
- As India’s electric vehicle (EV) market expands rapidly, Hyundai Motor is aiming to capture market share with thoroughly localized models. According to industry sources on October 25, Hyundai plans to launch a total of four EV models in India, starting with the locally-produced 'Creta EV' in January 2024. This move is part of the company’s strategy to establish dominance in India's accelerating EV transition. India emerged as the world’s third-largest automotive market in 2022, with 5,186,624 vehicles sold, following China and the United States, according to the Society of Indian Automobile Manufacturers (SIAM). The Indian government is also driving aggressive electrification policies to promote the transition to EVs. Though India's overall EV sales remain relatively low, the market is growing at an exponential pace. The Korea International Trade Association (KITA) reported that EV sales in India increased from just 5,000 units in 2020 to 15,000 in 2021, 48,000 in 2022, and 90,000 in 2023. Market research firm Fortune Business Insights predicts that the Indian EV market will grow at an average annual rate of 22.4%, reaching $117.78 billion (approximately KRW 163.4 trillion) by 2032. Hyundai’s CEO Chang Jae-hoon, speaking on the company’s IPO on October 22, stated, “Although the Indian EV market is still small, it will eventually grow to a global scale, and we aim to expand our market share.” In addition to the officially announced 'Creta EV', Indian automotive media outlet *Autocar India* reported that Hyundai will launch three more locally-customized EVs: the 'Ioniqster EV', 'Grand i10 NIOS EV', and 'Venue EV'. Among the four models, the 'Ioniqster EV' will hold the position of the “most affordable EV,” while the remaining models will be customized to suit Indian consumers’ preferences as strategic models. Localized models are developed to reflect the unique characteristics of each market or region, considering environmental factors such as terrain, climate, and infrastructure, as well as cultural aspects like family structure, mobility patterns, purchasing power, and road conditions. The 'Creta EV' is based on the existing 'Creta' compact SUV, which was developed specifically for the Indian market. It features a spacious rear seat to accommodate large families, increased ground clearance for poor road conditions, and an in-cabin air purifier. Thanks to these features, the Creta became a hit after its July 2015 launch, topping monthly SUV sales in India for three consecutive months. It sold 40,888 units in its first year and was named 'India's Car of the Year (ICOTY)' in 2016. Hyundai's strategic compact car 'i10' was also developed for the Indian and Southeast Asian markets. After entering the Indian market through its Chennai plant in 1998, Hyundai initially focused on the compact 'Santro', a variant of the Atos. The Santro was the company's first India-specific model and became known as the "people’s compact car," helping Hyundai secure second place in market share. The i10, which replaced the Santro in 2007, also gained popularity and was named 'India’s Car of the Year' in 2008. Produced at Hyundai's Indian factory, the i10 remains a popular model alongside the Creta and Venue. The latest generation of the i10, introduced in 2019, is sold in India as the 'Grand i10 NIOS', and its sedan variant, 'Aura', is also well-received. According to Hyundai Motor India Ltd. (HMIL), cumulative sales of the Grand i10 NIOS in India recently surpassed 400,000 units, maintaining an average of 80,000 units sold annually since its 2019 launch. The Venue, a global entry SUV targeting millennials, was first unveiled at the New York International Auto Show in April 2019. Its specifications vary slightly by region, but the model found particular success in India, where smaller SUVs are preferred due to narrow roads. While the Venue struggles with low sales in South Korea, selling fewer than 10,000 units annually, it has been a major hit in India, selling over 300,079 units in three years. Priced between KRW 12 million and 20 million (approximately USD 9,000 to 15,000), the Indian version of the Venue offers fewer options and reduced performance to align with local preferences. Hyundai is also expanding its electric infrastructure, with plans to increase the number of EV charging stations in India to 485 by 2030. Additionally, Hyundai and Kia are partnering with India’s Exide Energy to integrate locally-produced batteries into their dedicated EV models. A Hyundai representative stated, “With the launch of the Creta EV, we are accelerating our efforts to establish a strong foothold in India’s EV market.” #Hyundai #CretaEV #IndiaEVmarket #electricvehicles #localizationstrategy #automotiveindustry #Venue #i10 #Grandi10NIOS #marketexpansion #HyundaiIndia
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- Shinhan Financial Overcomes Investment Losses, Strengthens Internal Controls under Jin Ok-dong
- Shinhan Financial Group reported solid earnings for the third quarter, supported by strong performances from its core subsidiaries despite an investment loss of KRW 130 billion (USD 93.7 million) from Shinhan Investment & Securities. The group managed to increase net profits year-over-year, underscoring resilience in the face of setbacks. On October 25, Shinhan Financial announced that its consolidated net profit attributable to shareholders was KRW 1.2386 trillion (USD 893 million) for the third quarter. Though this marked a 13.1% decrease from the record-breaking second quarter profit of KRW 1.4255 trillion (USD 1.03 billion), it represented a 3.9% increase compared to the same period last year. Shinhan Financial attributed the decline in net profit from the second quarter to one-off losses, emphasizing that it still achieved stable performance through interest income growth and effective cost management. The group’s interest income for the third quarter rose by 3.3% year-over-year to KRW 2.855 trillion (USD 2.06 billion), while non-interest income declined by 9.4% to KRW 827.8 billion (USD 596.8 million). Key subsidiaries, including Shinhan Bank, Shinhan Card, and Shinhan Life, delivered strong results, with cumulative net profits for the first three quarters increasing by 19.4%, 17.8%, and 9.2%, respectively. These performances provided a solid foundation for the group’s overall results. However, Shinhan Investment & Securities reported a net loss for the third quarter due to the KRW 130 billion (USD 93.7 million) investment loss. The company’s liquidity provision team incurred significant losses in early August from Kospi 200 futures trading, impacting its securities and foreign exchange derivative portfolio. Financial Services Commission Chairman Kim Byung-hwan instructed the Financial Supervisory Service to conduct a thorough investigation, further intensifying the fallout. Following the incident, Shinhan Investment & Securities formed an emergency response team led by CEO Kim Sang-tae and dismissed several executives involved. In a letter to shareholders on October 17, Shinhan Financial Chairman Jin Ok-dong stated, “We held an emergency meeting with the group’s CEOs over the weekend. We will share our response plan with shareholders as soon as it is ready.” This incident comes as Shinhan Financial prepares for year-end leadership appointments, with many anticipating that the performance will influence Jin’s decisions for key roles in his second term. Jin, who retained all subsidiary CEOs last year under the principle of “not changing generals during a war,” faces heightened expectations this year as he selects key leaders to serve alongside him in the latter part of his tenure. Twelve CEOs of Shinhan’s subsidiaries, including Shinhan Bank, Shinhan Card, and Shinhan Life, are set to complete their terms by the end of this year or early next year. The group’s CEO Nomination Committee held its first meeting on September 10 to begin the succession process. Jin is reinforcing his focus on internal controls, aligning with his commitment to ethical management. On October 22, he addressed a Consumer Protection Conference attended by 10 CEOs and 150 staff members responsible for consumer protection. He urged, “I hope all employees will continue to reflect on themselves and identify areas where they have grown complacent.” Jin has prioritized internal controls since becoming chairman in 2022, particularly in the wake of financial scandals such as the KRW 70 billion (USD 50.5 million) embezzlement case at Woori Bank and the Lime Asset Management fund crisis during his tenure as Shinhan Bank’s president. Under Jin’s leadership, Shinhan Financial has taken proactive measures to enhance internal controls. In July 2022, Jin became the first among major financial holding company chairmen to introduce an early accountability framework. By September 2023, Shinhan Bank became the first financial institution to submit the results of its internal control review to the authorities. The group reaffirmed its commitment to internal controls during the third-quarter earnings call. At the conference call, Shin Sang-young, Vice President of Finance at Shinhan Financial, stated, “We will revisit our internal control systems from the ground up, reaffirming that customer trust and strong internal governance are the essence of our business. We are committed to ensuring that this incident does not affect the value enhancement plans we have shared with stakeholders.” #ShinhanFinancialGroup #JinOkdong #ShinhanInvestmentSecurities #internalcontrol #financialperformance #CEOappointments #ethicalmanagement #consumerprotection #KoreanFinance #investmentloss
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- Samsung Biologics Eyes Investment in 6th Plant, John Rim Strengthens Performance and Financial Stability
- John Rim, CEO of Samsung Biologics, is expected to accelerate efforts to expand production capacity as part of his strategy to enhance the company’s competitiveness in the contract development and manufacturing organization (CDMO) market. Rim has emphasized that increasing production capacity is essential to securing orders. Although the company already has long-term investment plans, the pace of expansion may not match the surge in orders. With favorable developments such as the U.S. push for a biosecurity law restricting trade with certain Chinese bio-companies, Samsung Biologics may actively advance its timeline for building new production facilities. According to industry sources on October 24, Samsung Biologics may begin construction of its 6th plant earlier than initially expected. While the 5th plant is scheduled to commence operations in April 2025, demand is increasing so rapidly that additional capacity may be required sooner. Initially, construction of the 6th plant was projected to begin in 2025, but with Samsung Biologics securing significant new orders, the timeline could be accelerated. In July, the company announced a KRW 1.5 trillion (US$ 1.08 billion) contract, followed by a record-breaking KRW 1.7 trillion (US$ 1.22 billion) deal with a Japanese company on October 21, set to run until 2037. Kiwoom Securities analyst Heo Hye-min remarked, “The recent KRW 1.7 trillion contract is likely linked to the 5th plant, but with orders coming in steadily, construction of the 6th plant could begin within this year.” Samsung Biologics stands to benefit from geopolitical developments as the U.S. government moves toward legislation restricting transactions with certain Chinese bio-companies. The shift could create new opportunities for Samsung Biologics to capture market share, particularly from WuXi Biologics, which currently holds 12.1% of the global CDMO market. Rim has previously highlighted the need for proactive investment to stay ahead in the market, and he seems poised to seize this opportunity. Samsung Biologics is also in a strong financial position to fund new investments. For the first time in its history, the company’s cumulative sales for the first three quarters of 2024 surpassed KRW 3 trillion (US$ 2.16 billion). The company raised its annual sales growth target from 10–15% to 15–20% and expects to exceed KRW 4 trillion (US$ 2.88 billion) in annual revenue, becoming the first domestic pharma-biotech company to achieve this milestone. When Rim assumed the CEO position in December 2020, Samsung Biologics' revenue stood at KRW 1 trillion. In just four years, that figure is on track to quadruple. The strong third-quarter performance was driven by the full utilization of Plants 1 to 3 and the rapid ramp-up of Plant 4. Plant 4 secured orders early, enabling swift production scaling. Similarly, Plant 5 is expected to contribute to profit growth soon after it becomes operational in 2025. Samsung Biologics' financial health is solid, with a debt ratio of 51%, allowing ample room for large-scale investments. In October 2022, the company announced plans to invest KRW 7.5 trillion (US$ 5.4 billion) by 2032 to build Plants 5 through 8 at its Songdo 2 campus in Incheon. However, detailed plans for the 6th plant have not yet been disclosed. A Samsung Biologics representative stated, “The decision to break ground on the 6th plant will be disclosed after board approval. The new plant will have a production capacity similar to that of Plant 5, and the timeline from construction to production will also be comparable.” #SamsungBiologics #JohnRim #CDMO #6thPlant #ProductionExpansion #Biotech #FinancialPerformance #Songdo #WuXiBiologics #KoreaBusiness #GlobalExpansion
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- Kim Ki-hong Drives JB Financial’s Growth, Eyes Third Term Amid Tenure Concerns
- With JB Financial Group expected to achieve record-breaking performance this year, attention is turning to whether Chairman Kim Ki-hong will seek a third term when his current tenure ends in March 2025. While Kim’s leadership has consistently improved the group’s performance and expanded shareholder returns, financial regulators have expressed concerns about the prolonged tenures of financial group executives, emphasizing the need for transparent corporate governance. On September 24, JB Financial announced plans to enhance shareholder returns as part of the value-up initiative disclosed earlier that month. The group reported cumulative net profit of KRW 563.1 billion (USD 406 million) for the first three quarters of 2024, achieving record-breaking results. Since assuming the role of chairman in March 2019, Kim has set new performance records each year. JB Financial’s net profit was KRW 2.415 trillion (USD 1.74 billion) in 2018, the year before Kim’s appointment. Under his leadership, net profits rose to KRW 3.419 trillion (USD 2.47 billion) in 2019, followed by KRW 3.635 trillion (USD 2.62 billion) in 2020, KRW 5.066 trillion (USD 3.65 billion) in 2021, and KRW 6.01 trillion (USD 4.33 billion) in 2022. Though profits declined slightly to KRW 5.86 trillion (USD 4.22 billion) in 2023 amid conservative provisioning during a high-interest environment, the group has resumed its upward trajectory this year. In addition to driving performance growth, Kim has prioritized communication and shareholder returns, earning positive feedback from shareholders. Kim actively participates in quarterly earnings calls, engaging directly with shareholders. During the most recent call, he reaffirmed the group’s commitment to the value-up strategy, stating, "Promises made during investor relations meetings will be honored. The value-up initiative was unanimously supported by the board, and we remain committed to it." He also outlined plans to meet shareholder return targets by securing dividend resources through special dividends from subsidiaries and continuing share buybacks and cancellations through 2025. With the group’s outstanding financial performance and commitment to shareholder returns, there is speculation that Kim may seek a third term as chairman. Kim began his first term in March 2019, was reappointed in 2022, and is now serving his second term. If reappointed in 2025, he would start his third term. JB Financial amended its bylaws last year to ease the age limit for executives, previously set at 70. Under the revised bylaws, executives only need to be under 70 at the time of appointment or reappointment, enabling Kim, born in 1957, to potentially serve a third term despite turning 70 during his tenure. However, the Financial Supervisory Service (FSS) is closely monitoring CEO reappointments following the release of “Best Practices for Governance in Banks and Financial Holding Companies” in December 2023. The best practices emphasize the need for transparent succession planning and address the issue of long-standing executive tenures, which have been a concern in the financial sector. While Kim's leadership has been praised, the regulatory focus on CEO tenure remains a potential hurdle to his reappointment. Another challenge is the relatively high net interest margin (NIM) of JB Financial’s banking subsidiaries, Gwangju Bank and Jeonbuk Bank. As of June 2024, Jeonbuk Bank's NIM was 2.83% and Gwangju Bank’s was 2.76%, ranking among the highest in the industry, second only to Citibank Korea (2.94%). The average NIM for Korean banks stands at 1.60%. Criticism has been directed at banks for relying on high lending rates to maintain profitability. If JB Financial continues along this path, it may face increased scrutiny from regulators focused on promoting “cooperative finance.” During the recent earnings call, JB Financial emphasized that while it will continue to focus on profitability, it will not rely solely on raising lending rates or expanding loans. In response to questions about NIM strategy, Kim stated, “We are implementing various measures to manage NIM across both banking subsidiaries.” JB Financial has also introduced innovative products, such as the “Together Loan,” a collaborative lending product launched by Gwangju Bank and Toss Bank in August 2024. The product exceeded KRW 70 billion (USD 50.47 million) in loans within its first month, offering a promising new revenue source. Jeonbuk Bank is also preparing to launch a joint lending product with KakaoBank in 2025, further diversifying its offerings. A JB Financial spokesperson commented, “We aim to manage NIM strategically, not simply through higher lending rates, but through new approaches like the Together Loan. The chairman’s succession committee will meet by the end of November to discuss the leadership transition ahead of the chairman’s term expiration in March 2025.” #KimKihong #JBFinancialGroup #CorporateGovernance #ShareholderReturns #RecordPerformance #NIM #TogetherLoan #FinancialSupervisoryService #LeadershipTransition #KoreaBusiness #Banking
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- Chung Tae-young’s Digital Push Pays Off as Hyundai Card Transforms into a Tech Company
- Chung Tae-young, Vice Chairman and CEO of Hyundai Card, has achieved a milestone by exporting the company’s AI software to a major Japanese card company, marking the first time a Korean financial institution has sold proprietary AI technology abroad. Chung's commitment to transforming Hyundai Card into a digital-first company over the past decade has culminated in this achievement, affirming its transition into a tech enterprise. On October 24, Hyundai Card announced the export of its in-house AI software, “Universe,” to Japan’s Sumitomo Mitsui Card Company (SMCC). This deal is seen as a pivotal moment, showcasing Hyundai Card’s technological prowess and its evolution into a tech company on the global stage. Universe is a hyper-personalization AI platform based on data science, capable of predicting customer behavior, preferences, and conditions through structured data tags. It can be applied across industries, providing business solutions beyond traditional finance. The sale of Universe to SMCC, one of Japan’s top three credit card companies with assets exceeding KRW 40 trillion, not only validates Hyundai Card's technology but also reflects growing trust in its expertise. To celebrate this achievement, Hyundai Card plans to host its first “Hyundai Card Tech Talk” on November 5 at Understage in Itaewon, Seoul, unveiling Universe to the public. Although the exact financial terms remain undisclosed, it is reported that the deal generated hundreds of billions of won, marking Hyundai Card’s largest-ever software export. Chung’s direct involvement played a key role in finalizing the agreement. He maintained close contact with SMCC for nearly a year, personally traveling to Japan for the signing ceremony. Chung shared on social media that “through mutual understanding and verification over the past year, we built a friendship with SMCC, making the signing ceremony a friendly occasion.” This is not Chung’s first time spearheading such initiatives. In 2019, he personally led the export of Hyundai Card's IT system, “H-ALIS,” to Exa Systems, a subsidiary of IBM Japan, delivering the presentation in Japanese. Chung has invested considerable effort over the past decade to establish Hyundai Card’s identity as a digital company. In October 2015, he declared the company’s transition to “Digital Hyundai Card,” leading sweeping changes in organizational culture, including the adoption of flexible work policies and autonomous office layouts. Hyundai Card’s emphasis on digital transformation is evident in its workforce. Of the company’s 2,000 employees, approximately 500 are dedicated to data science, AI, and digital projects. Notably, leadership roles in areas such as digital experience, data science, data labs, and AI platform planning have been assigned to individuals born in the 1980s, reflecting a shift from seniority to merit-based talent selection. Beyond traditional card services, Hyundai Card has built a data-centric business model. Its “Domain Galaxy” platform connects PLCC (private label credit card) partners into a data-sharing alliance, further integrating data science into its operations. In a press conference held in May 2023, Chung revealed that the company has invested KRW 1 trillion in AI initiatives to date. Hyundai Card aims to further leverage its tech capabilities for global expansion. A company representative stated, “Starting with Japan, we are receiving inquiries about data science collaborations from North America, Europe, the Middle East, and Asia. The global expansion of our data science business will accelerate moving forward.” #ChungTaeyoung #HyundaiCard #DigitalTransformation #TechCompany #UniverseAI #AIExport #SumitomoMitsuiCard #GlobalExpansion #DataScience #BusinessInnovation #KoreaBusiness
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- Hyundai E&C's Record Sales, But Profitability Challenges Persist: Yoon Young-joon Focuses on Profits
- Yoon Young-joon, CEO of Hyundai Engineering & Construction (Hyundai E&C), is likely troubled by declining profitability, despite the company's growing scale. Yoon is expected to focus on creating a foundation for a profit rebound by addressing high-cost construction orders and reducing unlaunched project financing (PF) activities. As of October 23, Hyundai E&C reports show that since Yoon’s appointment, there has been an inverse trend between revenue and operating profit margins. From 2021, when Yoon took office, Hyundai E&C's consolidated revenue increased from KRW 18.065 trillion (US$ 13.02 billion) in 2021 to KRW 21.239 trillion (US$ 15.32 billion) in 2022, and to KRW 29.651 trillion (US$ 21.38 billion) in 2023. In contrast, consolidated operating profits were KRW 753.5 billion (US$ 543.5 million) in 2021, KRW 574.9 billion (US$ 414.5 million) in 2022, and KRW 785.4 billion (US$ 566.4 million) in 2023, with operating profit margins shrinking to 4.2%, 2.7%, and 2.6% respectively. In 2024, Hyundai E&C continues to struggle with declining profitability despite its ongoing growth. According to preliminary figures, Hyundai E&C’s consolidated revenue for Q1 to Q3 of this year stands at KRW 25.423 trillion (US$ 18.33 billion), with an operating profit of KRW 512.5 billion (US$ 369.5 million), reflecting a margin of 2.0%. Specifically, Hyundai E&C (including Songdo Landmark City) posted revenue of KRW 13 trillion (US$ 9.37 billion) and an operating profit of KRW 44 billion (US$ 31.7 million), while Hyundai Engineering achieved revenue of KRW 12 trillion (US$ 8.65 billion) and an operating profit of KRW 54 billion (US$ 38.9 million). Hyundai E&C has maintained quarterly revenue above KRW 8 trillion (US$ 5.77 billion) throughout the year. Large-scale domestic and international projects such as Hillstate The Unjeong (KRW 1.2758 trillion or US$ 920 million), Olympic Park Foreon (KRW 1.2164 trillion or US$ 877 million), four data centers including Yongin Jukjeon Pacific Sunny (KRW 1.2548 trillion or US$ 905 million), Iraq Basra Refinery (KRW 2.4652 trillion or US$ 1.78 billion), and Panama Metro Line 3 (KRW 2.5151 trillion or US$ 1.81 billion) have been key revenue drivers. Its subsidiary, Hyundai Engineering, has also launched major projects, including Hyundai Motor's EV plant in Ulsan (KRW 1.2113 trillion or US$ 873 million), the HMGMA Hyundai EV plant in the U.S. (KRW 2.0707 trillion or US$ 1.49 billion), the SK Battery Plant (KRW 2.8266 trillion or US$ 2.04 billion), and Poland’s PKN Olefin (KRW 2.3195 trillion or US$ 1.67 billion). Both companies are generating revenue from S-Oil's Shaheen Project, where Hyundai E&C's portion is KRW 2.4022 trillion (US$ 1.73 billion) and Hyundai Engineering’s share is KRW 1.6446 trillion (US$ 1.19 billion). Given this, Yoon is likely to surpass the KRW 29.7 trillion (US$ 21.4 billion) revenue target set for this year and may achieve a third consecutive year of record revenue, possibly breaking the KRW 30 trillion (US$ 21.6 billion) milestone for the first time in the company’s history. According to financial information provider FnGuide, Hyundai E&C’s projected consolidated revenue for this year is KRW 33.7007 trillion (US$ 24.3 billion). However, Yoon has not yet succeeded in improving profitability. The company’s quarterly operating margins have continuously declined, with 2.9% in Q1, 1.7% in Q2, and 1.4% in Q3. Looking at cost ratios in Q3, Hyundai E&C recorded approximately 93% domestically and around 100% overseas, while Hyundai Engineering showed roughly 95% domestically and about 100% abroad. Rising material costs and temporary expenses have been detrimental. In Q2, Hyundai Engineering incurred quality control costs for Hillstate Oryong in Muan, Jeollanam-do, while Hyundai E&C faced additional cost increases in Q3 from the Saudi Marjan Development Program, contracted in 2019. Hyundai E&C is negotiating with project owners regarding cost increases from past events like the COVID-19 pandemic and supply chain disruptions. The company reflected KRW 70 billion (US$ 50.5 million) in Q3 costs, and if negotiations continue into Q4, there may be additional burdens. Currently, 76% of Hyundai E&C's projects that started in 2021-2022 apply high costs, which hinders profitability improvement. Analysts suggest that a notable recovery in operating profit may not happen until mid-2025. Despite the challenging domestic construction market, Yoon expressed plans to secure nuclear power technology and future growth engines in his New Year's speech and in last year's financial report. Though the company has seen some success in individual projects, such as winning the Bulgarian nuclear power plant project and being shortlisted for the UK Small Modular Reactor (SMR) project, immediate efforts to strengthen internal stability are also crucial. With profitability potentially bottoming out, Yoon is expected to focus on laying the groundwork for a rebound. One positive is the expected drop in cost ratios across domestic and international projects. Hyundai E&C anticipates that the proportion of projects initiated in 2021-2022, which currently stands at 76%, will decrease to 43% by 2025 and to 15% by 2026. By 2026, projects applying relatively lower costs will dominate. Furthermore, as Hyundai E&C sequentially launches its quasi-self-developed projects, it is expected to significantly reduce the scale of its bridge loans and improve profitability. The CJ plant development at the Gayang site and the LG Electronics research center development at Gasan Digital Complex, both being undertaken with the developer Inchang Development, have recently transitioned to main PF (Project Financing) and are preparing to break ground in Q1 next year. Hyundai E&C holds bridge loans of approximately KRW 1.5 trillion (US$ 1.08 billion) for the CJ Gayang site and about KRW 170 billion (US$ 122.6 million) for the LG Gasan Digital Complex site. Thanks to the transition to main PF for these two projects, Hyundai E&C expects to reduce its bridge loans from KRW 4.2 trillion (US$ 3.03 billion) at the end of Q3 to around KRW 1.7 trillion (US$ 1.23 billion). With a significantly increased order backlog in recent years, Hyundai E&C is not expected to face a shortage of projects. The order backlog has grown steadily from KRW 65.2782 trillion (US$ 47.1 billion) at the end of 2020 to KRW 78.7608 trillion (US$ 56.8 billion) in 2021, KRW 88.3671 trillion (US$ 63.7 billion) in 2022, and KRW 89.745 trillion (US$ 64.7 billion) in 2023. As of the end of Q3 this year, the order backlog slightly decreased to KRW 86.591 trillion (US$ 62.4 billion). However, considering that Hyundai E&C has secured KRW 22.258 trillion (US$ 16.0 billion) in new orders, representing 76.8% of its annual target of KRW 29 trillion (US$ 20.9 billion), the focus appears to be on reducing high-cost projects rather than indefinitely increasing the backlog. Looking ahead, Hyundai E&C’s consolidated earnings forecasts project sales of KRW 31.5551 trillion (US$ 22.8 billion) and an operating profit of KRW 794 billion (US$ 572.4 million) in 2025, and sales of KRW 30.965 trillion (US$ 22.3 billion) and an operating profit of KRW 953.4 billion (US$ 687.7 million) in 2026. The operating profit margins are expected to be 2.5% in 2025 and 3.1% in 2026. In its latest performance report, Hyundai E&C stated, "Despite robust sales growth, rising material costs and investments in safety and quality have increased cost ratios. We will work to improve profitability through the stable execution of our business development and financial competitiveness-based portfolio." #HyundaiE&C #constructionindustry #YoonYoungjoon #profitability #salesrecord #projectfinancing #orderbacklog #nuclearpower #constructionprojects #costmanagement
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- SK hynix's Next Focus: 'Automotive HBM' – Kwak Noh-jung Aims to Dominate European Market
- Kwak Noh-jung, CEO of SK hynix, has identified ‘automotive HBM (High Bandwidth Memory)’ as the company’s next growth driver, focusing on seizing the European market by fostering research partnerships and acquiring new customers. As autonomous vehicle performance, developed by companies like Google and Tesla, rapidly improves, the importance of automotive semiconductors has become more critical than ever. According to semiconductor industry sources, Kwak recently visited Europe to discuss research collaboration and supply opportunities in the automotive memory semiconductor market. Kwak visited IMEC, the world’s largest nonprofit semiconductor research institute based in Leuven, Belgium. IMEC leads technological advancements in quantum computing, biotechnology, and other future semiconductor fields. After returning from Europe, Kwak stated to the press, “We discussed joint development programs with IMEC and explored joining additional new programs in the future.” IMEC recently announced its collaboration with companies like BMW, Siemens, and ARM in the ‘Automotive Chipset Program (ACP)’ at the Vehicle Chipset Forum 2024 in Michigan. The ACP project aims to develop semiconductor architectures and packaging technologies that meet the stringent safety requirements of electric and autonomous vehicles. Kwak’s visit to IMEC and the ACP initiative appear to be closely linked. The new program that Kwak mentioned is likely the ACP. In addition to research partnerships, Kwak is also seeking potential customers in Europe. An industry insider noted, "While Kwak hasn’t disclosed specific business collaborations in Europe, he likely explored supplying memory semiconductor products like automotive HBM to European automakers." Back in March, Kwak said about the European market, “Although the semiconductor market in Europe is smaller compared to China or the U.S., we are focusing on automotive memory and identifying customers.” The automotive memory semiconductor market that Kwak is eyeing is expected to grow rapidly as autonomous vehicles become a reality. According to the Wall Street Journal, Google’s Waymo recently exceeded 140,000 users per month, a significant increase from 10,000 monthly users in Q2 of last year. Morgan Stanley has raised Waymo’s valuation by 75%, now estimating it at KRW 230 trillion (US$ 165.9 billion). Waymo’s autonomous driving capabilities have improved to Level 4, just short of full autonomy (Level 5), outperforming even Tesla. As the era of autonomous vehicles approaches, automotive semiconductors such as 'automotive memory,' 'processors,' 'foundries (contract manufacturing),' and 'power semiconductors' are seen as the next growth drivers in the semiconductor industry. SK hynix is focusing on ‘automotive HBM’ within the automotive memory category. Fully autonomous vehicles require 50 trillion operations per second, a level that current automotive LPDDR memory cannot handle. Furthermore, with generative AI technology expected to be integrated into future vehicles, the demand for HBM is anticipated to grow. As a leader in HBM, SK hynix is already ahead in the automotive HBM market. In August, SK hynix Vice President Kang Wook-sung revealed that the company supplies 3rd-generation HBM2E to Google’s Waymo and is preparing to supply 4th-generation HBM3. Kwak is expected to focus on developing ‘power efficiency’ and ‘reliability’ technologies to dominate the automotive HBM market. Given the constraints on power supply in vehicles and the strict requirements for stability in accidents, long-duration operation, and extreme temperatures, these technologies will be crucial. SK hynix plans to collaborate with IMEC to improve the quality and safety of automotive memory. As IMEC mentioned ‘supporting stringent safety requirements’ as a goal of the ACP program, SK hynix is expected to work closely with IMEC to acquire these technologies. Moreover, SK hynix has set a goal of doubling the energy efficiency of HBM and moved up the target achievement date from 2030 to 2026. The company expects to significantly enhance power efficiency in its 6th-generation HBM4, using Taiwan’s TSMC advanced ultra-fine process technology. According to UK market research firm Omdia, the global automotive semiconductor market is expected to reach KRW 140 trillion (US$ 100.9 billion) by 2027, with automotive memory accounting for about 10% of that. Taiwan’s TrendForce predicts that by 2027, the automotive semiconductor segment will account for 20% of all AI applications, ranking second only to cloud computing. #SKhynix #automotiveHBM #autonomousvehicles #semiconductorindustry #KwakNohjung #Europeanmarket #HBMtechnology #IMEC #memorychips #powersemiconductors
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- Samsung Biologics Secures Pre-Orders for Plant 5, Backed by CEO John Rim’s Quality Management
- Samsung Biologics, under CEO John Rim’s leadership, has gained recognition for its focus on quality management, securing substantial orders even before completing its fifth plant. Over the past three months, Samsung Biologics has received orders so large that its existing four plants may struggle to meet demand. This suggests that Samsung Biologics has achieved "pre-orders" for Plant 5, currently under construction. On October 22, the company announced a KRW 1.74 trillion (USD 1.26 billion) contract with an Asian pharmaceutical company, just three months after securing a KRW 1.46 trillion (USD 1.06 billion) deal in July. The newly secured orders are expected to be fulfilled at Plant 5 once it becomes operational. In June 2023, Samsung Biologics completed its fourth plant, quickly ramping up production, a contrast to earlier struggles in achieving utilization after Plant 3’s launch. The company's half-year report showed a 72.4% capacity utilization rate in H1 2023, slightly higher than the 71.4% average for 2022. The construction of Plant 5 is scheduled for completion by April 2025, and securing orders during the construction phase indicates Samsung Biologics’ growing credibility in the biopharmaceutical contract manufacturing (CMO) space. John Rim’s focus on quality management has been instrumental in building trust with global pharmaceutical companies. In his 2023 New Year’s address, Rim emphasized, “Flawless quality management is a non-negotiable value and the foundation of our business.” This commitment to quality is reflected in over 300 regulatory approvals Samsung Biologics has received, including 39 approvals from the U.S. FDA and 34 from the European Medicines Agency (EMA) as of September 2023. These approvals validate compliance with Good Manufacturing Practices (GMP) across all production processes, a critical benchmark for contract manufacturing organizations (CMOs). The potential impact of geopolitical shifts could further benefit Samsung Biologics. With the U.S. considering the 'Biosecurity Law', which would restrict transactions with certain Chinese companies, including WuXi Biologics, Samsung Biologics is well-positioned to gain market share. WuXi Biologics, the third-largest CMO by revenue in 2023, derives 47.4% of its sales from the U.S. market. Although the 'Biosecurity Law' includes a grace period until 2032, industry analysts anticipate that Samsung Biologics could benefit from long-term contracts as clients seek alternatives to Chinese suppliers. Kim Hye-min, a KB Securities analyst, noted, “While contract development organization (CDO) revenue currently accounts for only 10-15% of Samsung Biologics’ total, inquiries have more than doubled recently, signaling the potential impact of the Biosecurity Law.” Kim Jun-young from Meritz Securities added, “Though the Biosecurity Law may not pass until the end of this year, the real benefits will unfold over the long term.” #SamsungBiologics #JohnRim #Plant5 #biopharmaceuticals #CMO #qualitymanagement #BiosecurityLaw #WuXiBiologics #FDAapproval #globalpharma #Koreanbusiness
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- Weak IT OLED Demand, Leads to Investment Adjustment by Samsung Display Choi Joo-sun
- Choi Joo-sun, CEO of Samsung Display, has identified IT OLED panels as a new growth driver. However, demand is not growing as quickly as anticipated. Apple is currently the largest customer for IT OLEDs, but the higher cost compared to LCDs and the long replacement cycle of tablets are hindering the adoption of OLEDs for devices like the iPad. According to industry sources on October 22, the sluggish sales of Apple’s iPad Pro, which uses Samsung Display’s IT OLED panels, could prompt the company to adjust its investment strategy. At the 'TrendForce Roadshow Korea,' held at the Novotel Ambassador Hotel in Seoul, Taiwan-based market research firm TrendForce projected that Samsung Display’s mass production of 8.6-generation IT OLED panels will likely begin in Q1 2027—later than the initially targeted 2026 launch. In contrast, Chinese competitor BOE is expected to start mass-producing its 8th-generation OLED panels as planned by Q4 2026. Samsung Display had announced in April 2023 that it would invest KRW 4.1 trillion (USD 3 billion) by 2026 to produce 8.6-generation IT OLED panels, expanding the glass substrate size from the current 6th-generation (1.5m × 1.8m) to 8.6-generation (2.25m × 2.6m). The company made this investment in anticipation of increasing OLED adoption in laptops and tablets. Although BOE entered the race later, announcing an 11.6 trillion KRW (USD 8.4 billion) investment in 8th-generation OLEDs in December 2023, Samsung Display remains ahead of LG Display, which has yet to decide on similar investments. However, as IT OLED adoption progresses more slowly than expected, some market analysts are suggesting that Samsung Display's production timeline could be delayed. A Samsung Display spokesperson responded, "There are no changes to the plan to begin mass production of 8.6-generation IT OLEDs in 2026. It’s unlikely that BOE, with its delayed start and weaker OLED technology, will begin production ahead of us." The poor performance of Apple’s iPad Pro is a significant setback for Samsung Display, which is banking on IT OLEDs to drive future growth. Market research firm DSCC recently lowered its forecast for OLED panel shipments for the iPad Pro from 10 million to 6.7 million units, citing high costs as a barrier to driving tablet replacement demand. In an August 14, 2023, statement, Choi Joo-sun commented, “We are taking a conservative view of the OLED market in the second half of this year. We are working with system partners such as Intel and Qualcomm to develop solutions that can expand OLED adoption in the IT market.” Currently, Samsung Display and LG Display are the suppliers of OLED panels for Apple’s iPads, but the lower-than-expected demand has impacted both companies. Since its complete exit from the LCD business, Samsung Display has focused entirely on OLEDs. However, OLED demand for laptops is expected to be stronger than for tablets. Apple is anticipated to release its first OLED MacBook Pro as early as 2026, with Samsung Display likely to be the top supplier for the panels. DSCC analysts noted, “If the current trend continues, some panel manufacturers may delay their investments in IT OLED facilities until demand strengthens. However, the situation unfolding with the iPad may not necessarily repeat with the MacBook.” #SamsungDisplay #ChoiJooSun #ITOLED #Apple #iPadPro #MacBookPro #OLEDdemand #BOE #DSCC #investment
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- Kakao Unveils "Kanana", a Conversational AI Chatbot, Aiming for Hyper-Personalized AI Services
- Kakao has revealed the vision and direction for its group-wide artificial intelligence (AI) business, introducing "Kanana," a conversational AI service that understands both personal and group-level contexts. This marks the company’s first official presentation of Kanana as Kakao’s flagship AI service. On October 22, 2024, Kakao hosted the "If Kakao AI 2024" event at the Kakao AI Campus in Yongin, Gyeonggi-do. The developer conference, now in its sixth year, serves as a platform to showcase the group’s technological vision and achievements, with this year’s focus on generative AI. Kakao CEO Chung Shin-a delivered the keynote speech, presenting the company's AI vision. Chung emphasized, “Kakao's core strength lies in 'connecting relationships'. Even in the era of generative AI, we aim to provide hyper-personalized AI services that take into account personal context and emotions in diverse relationships and conversations.” As part of this vision, Kakao introduced the unified AI brand "Kanana." The brand name combines "Kakao" with the idea of "learning from me and thinking and acting like me". The Kanana name will be used across Kakao’s AI-focused divisions, models, and new services, embodying the company’s goal of delivering deeply personalized AI experiences. Lee Sang-ho, leader of Kanana-X, presented Kanana as Kakao’s premier AI service. Kanana is more than a standard AI agent; it aims to function as an "AI mate", offering a chatbot experience that resembles a friendly companion. By remembering conversation history, Kanana delivers responses tailored to individual users, with the AI evolving and improving as it accumulates more interaction data over time. Kanana's AI Mate service is available not only for individual conversations but also for group chats. The service is divided into two features: "Nana" for personal AI companionship and "Kana" for group conversations. Lee highlighted, “Most global AI services, including ChatGPT, are focused on one-on-one interactions. Kanana’s ability to facilitate conversations and provide assistance in group chats is a world-first.” Kanana will be released as a separate app from KakaoTalk, with an internal test version planned for release within the year to further refine the service. Lee added, “Just as KakaoTalk became an essential mobile service, we aim to position Kanana as the most accessible and useful public service in the era of generative AI.” In addition to Kanana, Kakao showcased other AI-powered services the company is preparing. These include KakaoTalk’s AI-driven anti-abuse system, "Fake Signal," and AI features used in gift recommendations and personalized advertising. Kakao also introduced plans for autonomous taxis by Kakao Mobility and personalized financial products by Kakao Pay. The event also featured a demonstration of a voice model trained on the voice of artist Jang Won-young from Kakao Entertainment, hinting at potential expansions in content-related intellectual property (IP). CEO Chung Shin-a emphasized Kakao’s commitment to making advanced technologies more accessible: “We are focused on transforming AI into practical services that our 50 million users can easily and conveniently use. We will continue to challenge ourselves and explore new possibilities to bring the future, shaped by AI, closer to everyone.” #Kakao #Kanana #generativeAI #AIchatbot #hyperpersonalization #AItechnology #Koreanbusiness #KakaoTalk #KananaX #ChatGPT
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- SK Hynix CEO Kwak Noh-jung Targets KRW 35 Trillion Profit with HBM Expansion
- SK Hynix is poised to leverage the growing demand for AI semiconductors, setting a goal of achieving KRW 30 trillion (USD 21.6 billion) in operating profit with a 40% operating margin by 2025. CEO Kwak Noh-jung announced plans to mass-produce 12-layer HBM3E in Q4 2023 and expand capital expenditures (CAPEX) in HBM to increase market share in high-bandwidth memory (HBM). SK Hynix is also accelerating the production of sixth-generation HBM4, aiming to start mass production a year earlier than scheduled to widen the technology gap with competitors. According to industry sources on October 21, 2024, concerns about an AI investment bubble have proven unfounded, as evidenced by SK Hynix's continued dominance in the HBM market and expectations of record-breaking profits in 2025. TSMC, which partners with SK Hynix in supplying key components for Nvidia AI chips, reported a 58% year-on-year increase in Q3 2024 operating profit, demonstrating the sustained demand for AI. TSMC’s CEO, Wei Zhejia, stated, “There is no bubble in AI, and demand will remain strong for years.” A recent report by the International Business Strategies (IBS) research institute projects that the market for AI-dedicated chips will grow 99% in 2024 and 74% in 2025, surpassing the traditional semiconductor market by 2030. The corresponding surge in HBM demand is expected to continue. SK Hynix currently holds a dominant position in the HBM market. The company was the first to mass-produce 8-layer HBM3E in March 2023 and followed up with 12-layer HBM3E production in September. HBM now accounts for approximately 30% of SK Hynix’s total revenue for Q3 2024. In contrast, Samsung Electronics has reportedly struggled to supply HBM3E to Nvidia, and Micron’s HBM production remains limited, reinforcing SK Hynix's market leadership. Bloomberg Intelligence has projected that SK Hynix will maintain its dominance in the HBM market over the next 12 months, given Samsung’s challenges. SK Hynix aims to surpass KRW 34 trillion (USD 24.5 billion) in operating profit in 2025, more than doubling its record profit of KRW 12.4 trillion (USD 8.9 billion) in 2021. This figure would also represent a significant increase from the company’s projected 2024 operating profit of KRW 23 trillion (USD 16.6 billion). In May 2023, CEO Kwak stated that most of the company’s HBM inventory for 2024 was already sold out, emphasizing the company’s focus on qualitative growth by enhancing cost competitiveness and expanding sales of high-margin products. SK Hynix is expected to achieve a 34% operating margin in 2024 and approach 40% in 2025. For comparison, the company reported an operating margin of 15.26% in 2022 and 28.86% during the semiconductor boom in 2021. SK Hynix is doubling its CAPEX in 2024 to more than KRW 15 trillion (USD 10.8 billion) to stay ahead in HBM production. The company is also advancing the development of HBM4 and plans to begin mass production in 2025, a year earlier than initially scheduled, to prevent competitors from catching up. From HBM4 onward, SK Hynix will integrate the 'logic die'—the brain of the HBM—using TSMC’s advanced 5-nanometer process, further widening the technological gap with competitors. According to Lee Soo-rim, a researcher at DS Investment Securities, “SK Hynix’s HBM operating profit is expected to reach KRW 5.9 trillion (USD 4.3 billion) in 2024 and KRW 11.5 trillion (USD 8.3 billion) in 2025. There are no signs of HBM oversupply, and with new product launches, the price premium will remain intact.” #SKHynix #HBM #AIChips #KwakNohjung #TSMC #Nvidia #AI #HBM4 #SemiconductorMarket #CAPEX
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- Hyundai Department Store Group’s Annual Executive Reshuffle: Will Chung Ji-sun Change Veterans?
- Hyundai Department Store Group’s annual executive reshuffle is approaching, traditionally announced in early November, with many expecting a similar timeline this year. Chung Ji-sun, the group’s chairman, typically emphasizes stability over change in executive appointments, and many predict that this year’s reshuffle will follow that pattern. However, there is also speculation that some long-serving CEOs across subsidiaries might be replaced to inject fresh energy after the group’s transition to a holding company structure. The push for innovation, poor performance, and identifying new growth opportunities are being cited as potential reasons for change. In the upcoming reshuffle, some CEOs with more than five years of service may be replaced. Last November, Hyundai Group made an unusual move by replacing CEOs at four major subsidiaries, marking a departure from its typical practice of retaining executives. However, given the scale of last year’s reshuffle, a major shake-up this year seems less likely. Chung Ji-sun is known for his conservative management style, often entrusting executives with long tenures unless significant issues arise. This approach has contributed to the presence of several veteran CEOs across the group’s subsidiaries. Examples include Yoon Ki-chul, who has served as CEO of Hyundai Livart since 2019, and Kim Min-deok, who has led Hyundai’s fashion arm, Handsome, since 2019. Another example is Kim Hyeong-jong, the former Hyundai Department Store CEO, who led Handsome for eight years before stepping down in March 2023. Sources indicate that Park Hong-jin, CEO of Hyundai Green Food, may step down. It is rumored that Vice President Lee Heon-sang is being considered as Park’s successor. Park has been a trusted executive under Chung Ji-sun’s leadership, steering the company for a decade. While Hyundai Green Food has posted solid financials—reporting Q2 2023 consolidated revenue of KRW 520.5 billion (USD 375.4 million) and an operating profit of KRW 32.5 billion (USD 23.4 million), up 4.2% and 16.4%, respectively, from the previous year—the company is exploring new growth opportunities. These include expanding into the health supplement sector and introducing new brands, such as a care food line targeting seniors and a premium burger line. Although Park has led Hyundai Green Food through a stable period, the company may opt for new leadership to adapt to societal shifts, such as declining birth rates and an aging population. Kim Min-deok, CEO of Handsome, is also under scrutiny. Handsome has struggled amid a sluggish retail market, recording revenue of KRW 1.53 trillion (USD 1.1 billion) and an operating profit of KRW 100.5 billion (USD 72.5 million) in 2022—a 0.8% drop in sales and a 40.3% decline in operating profit compared to the previous year. The downward trend continued into 2023, with first-half revenue of KRW 735.3 billion (USD 530.2 million) and an operating profit of KRW 36.5 billion (USD 26.3 million), marking year-over-year declines of 2.2% and 39.3%, respectively. Despite being given another chance last year, Kim remains under pressure to address the company’s ongoing struggles. In contrast, Hyundai’s other key subsidiaries—such as Hyundai Department Store, Hyundai Home Shopping, Hyundai L&C, and Hyundai Futurenet—are expected to retain their current leadership, as they underwent leadership changes during the previous reshuffle in 2022. #HyundaiDepartmentStoreGroup #ChungJiSun #executivereshuffle #leadershipchange Likely at Hyundai Green Food #HyundaiGreenFood #Handsome #retail #Koreabusiness #corporatestructure
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- Huh Yoon-hong Drives GS E&C’s Recovery with Strong Performance and Financial Stability
- Huh Yoon-hong, President and CEO of GS Engineering & Construction (GS E&C), has completed his first year leading the company with significant progress in improving performance and expanding new orders. Huh is also focusing on financial stability by divesting subsidiaries and rebuilding trust through the renewal of the company’s flagship brand, Xi. According to industry reports, GS E&C is expediting the sale of its subsidiaries. The company is in the process of selling GS Elevator and Zai Energy & Operations to Genesis Private Equity. GS Elevator, established in July 2020, was created to enter the elevator market. Zai Energy, founded in 2008, focuses on power, environmental, and plant operations and maintenance (O&M) both domestically and internationally. On October 17, GS E&C announced the sale of a 55% stake in GS Elevator for KRW 6.6 billion (USD 4.8 million) while retaining a 45% stake. GS E&C plans to expand in the Vietnamese elevator market through this partial sale. Further, the sale of part of Zai Energy’s shares is expected to conclude soon, signaling Huh’s focus on optimizing operations. GS Inima, a core part of GS E&C’s portfolio, is also under sale consideration. According to *Expansión*, GS Inima’s sale, managed by Goldman Sachs, has attracted interest from two key bidders: TAQA (the UAE’s national energy company) and CDPQ (a Canadian pension fund). The bidders have submitted non-binding offers, with the final deal expected between late 2023 and early 2024. The Spanish media outlet values GS Inima at EUR 1.4 billion (KRW 2.08 trillion or USD 1.5 billion), exceeding GS E&C’s market cap of approximately KRW 1.59 trillion (USD 1.14 billion). If GS E&C secures over KRW 1 trillion (USD 720 million) from these sales, it will significantly strengthen its financial position, as the company reported cash reserves of KRW 2.38 trillion (USD 1.7 billion) as of mid-2023. GS E&C’s debt ratio rose to 251.5% by mid-2023, largely due to compensation costs of KRW 552.4 billion (USD 398.4 million) for the Incheon Geomdan underground parking accident. Huh’s efforts to stabilize the business include reflecting conservative cost estimates, which resulted in a 2022 operating loss of KRW 387.9 billion (USD 279.7 million). However, GS E&C rebounded with an operating profit of KRW 163.9 billion (USD 118.2 million) in the first half of 2023. The company is on track to surpass its 2023 operating profit target of KRW 385.8 billion (USD 278 million), with improved order intake contributing to its recovery. GS E&C secured new orders worth KRW 8.35 trillion (USD 6 billion) in the first half of 2023, exceeding 62.8% of its annual target of KRW 13.3 trillion (USD 9.6 billion). The plant division achieved notable success, winning a KRW 1.6 trillion (USD 1.15 billion) gas expansion project in Saudi Arabia, marking a return to large-scale international projects. In response to the reputational damage caused by the Geomdan accident, Huh Yoon-hong has prioritized rebuilding trust. GS E&C is actively pursuing legal challenges against the Ministry of Land’s eight-month business suspension and the Seoul city government’s one-month suspensions. Meanwhile, the company has begun renewing its Xi brand, a top-tier name in the Korean residential market. At the Global Infrastructure Cooperation Conference (GICC) on September 10, Huh stated, “We are working on the Xi renewal, and tangible results will come soon.” A GS E&C representative added, “We are considering various measures to guide the company in a positive direction, including subsidiary sales. While the Xi renewal is underway, the completion timeline has not been finalized.” #GSConstruction #HuhYoonHong #subsidiarysales #financialstability #Xirenewal #Geomdanaccident #SaudiArabia #orderrecovery #Koreabusiness
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- AI-Driven ‘Winner-Takes-All’ Foundry Market, Samsung’s Jun Young-hyun Stands Firm on 3nm Exynos 2500
- Taiwan's TSMC is dominating demand for AI-related foundry services, further widening the gap with Samsung Electronics. Jun Young-hyun, the Vice Chairman and Head of Samsung’s Device Solutions (DS) Division, aims to leverage the 3nm process to mass-produce Samsung’s Exynos 2500 mobile processor, seeking to boost the company’s foundry business. Samsung is also reportedly targeting new contracts, including NVIDIA’s latest gaming GPUs. Industry reports indicate TSMC delivered strong Q3 results, with operating profits reaching KRW 15.3 trillion (USD 11 billion), up 58.2% from the same period last year, reflecting continued demand for AI chips. TSMC’s operating margin hit 47.5%, an exceptional level for semiconductor manufacturing. Meanwhile, Samsung’s foundry reported a Q3 operating loss of approximately KRW 500 billion (USD 360 million), with cumulative losses exceeding KRW 2 trillion (USD 1.44 billion) this year. Market research firm TrendForce reported TSMC held a 62.3% global foundry market share in Q2, while Samsung lagged at 11.5%, a gap of 50.8 percentage points. The foundry industry appears to be evolving into a “winner-takes-all” structure. Even Intel, once hopeful of a foundry revival, is now considering spinning off its foundry unit due to profitability issues. No Geun-chang, a researcher at Hyundai Motor Securities, noted, "TSMC’s market share has risen from 59% in early 2023 to 64.2%, reinforcing the 'winner-takes-all' trend. With Samsung and Intel planning to reduce capital expenditures (CAPEX) in 2025, TSMC’s dominance could increase, potentially capturing 70% of the market." Calls for Samsung to divest its foundry business have emerged, but Samsung Chairman Lee Jae-yong has firmly rejected the idea, underscoring the business’s long-term potential for high profitability. To close the technology gap with TSMC, stabilizing Samsung’s 3nm process is essential. However, Samsung has yet to secure major external clients for the 3nm process, making it difficult to ramp up production. Industry experts stress the importance of using in-house production, such as the Exynos 2500, to stabilize yields and improve technical capabilities. Jun Young-hyun remains committed to mass-producing the Exynos 2500 on the 3nm process, aiming to use it in the Galaxy S25, scheduled for release early next year. If production challenges persist, Samsung may delay deployment to the Galaxy Z Flip/Fold 6 series in the second half of 2024. Samsung has faced yield issues before with its 4nm process but managed to stabilize yields above 70% through the production of the Exynos 2400. The performance of the Exynos 2400 is now seen as comparable to competing products from MediaTek and Qualcomm. Securing new clients for the 3nm process remains a top priority. Recent speculation suggests that NVIDIA may shift some GPU production to Samsung, given signs of tension between NVIDIA and TSMC. Samsung previously produced NVIDIA’s RTX 30 series GPUs using its 8nm process in 2020. Jung Min-kyu, an analyst at Sangsin Securities, emphasized, "To stabilize performance in Samsung's non-memory division, it is crucial to establish a virtuous cycle through high-profile clients and consistent yields. With uncertainty surrounding the use of Exynos chips in the Galaxy S series, securing additional customers is critical." #Samsung #TSMC #JunYounghyun #Foundry #Semiconductors #3nm #Exynos2500 #AIChips #NVIDIA #LeeJaeyong
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- Lotte Group’s Rapid Value-Up Push, Shin Dong-bin Races to Avoid Credit Downgrade
- Shin Dong-bin, Chairman of Lotte Group, is unveiling value-up plans across affiliates to boost corporate value. While his swift actions align with the government’s emphasis on value-up initiatives, some view them as a response to Lotte’s urgent financial situation. Lotte Group faces pressure from weak performance in its key retail and chemical sectors, putting its credit ratings at risk. Lotte Holdings, the group’s control tower, has already entered emergency management mode. Analysts believe that the rapid rollout of value-up announcements—recently made by Lotte Wellfood, Lotte Chilsung Beverage, Lotte Shopping, and Lotte Rental—reflects the group’s urgency to regain investor confidence and stabilize funding. So far, Lotte is the only major group to specify value-up plans, with competitors like Shinsegae Group only planning announcements in the fourth quarter. Historically, Lotte has been proactive, such as when it established ESG committees across all listed subsidiaries ahead of its peers. This quick response to the new business environment is being praised, but the speed of the value-up announcements has raised concerns about underlying financial stress. Lotte's ability to generate cash has been hampered, despite aggressive investments and M&A deals worth over KRW 3.3 trillion (USD 2.38 billion) in recent years, which have failed to deliver the expected returns. The group’s financial health has deteriorated significantly. Lotte Chemical’s total debt has increased from KRW 3.37 trillion (USD 2.43 billion) at the end of 2020 to KRW 10.94 trillion (USD 7.89 billion) by the first quarter of 2023. Similarly, Lotte Holdings’ debt rose from KRW 8.47 trillion (USD 6.11 billion) at the end of 2022 to KRW 9.48 trillion (USD 6.84 billion) in just three months. The group’s flagship companies—Lotte Holdings, Lotte Chemical, and Hotel Lotte—have collectively added more than KRW 10 trillion (USD 7.2 billion) in debt over the past three years. In July 2023, Chairman Shin declared emergency management at Lotte Holdings, marking the first time in six years that such measures were taken since his legal troubles. Accessing external funding has also become increasingly difficult. Lotte subsidiaries saw their credit outlooks downgraded to "negative" during a June 2023 review, signaling the potential for actual downgrades by year-end. This downgrade risk has affected the group’s bond issuance, with only KRW 390 billion (USD 281 million) raised in the third quarter—nearly KRW 300 billion (USD 216 million) less than a year earlier—lagging behind other conglomerates like Samsung, Hanwha, and Hyundai Motor. If Lotte's credit ratings drop further, not only will attracting investors become more difficult, but the group may also face higher borrowing costs. This context explains Shin's urgency in promoting value-up plans as a way to restore financial stability and attract investments. Lotte affiliates are also exploring ways to strengthen their financial footing. Lotte Shopping recently announced plans to shut down or redevelop underperforming regional department stores, while Lotte Chilsung Beverage revealed a goal to reduce its debt ratio below 100% by 2028. To achieve this, asset sales are under consideration. On September 15, Lotte Chilsung’s board approved the sale of its factory in Gyeongsan for KRW 33.5 billion (USD 24.2 million) to Lotte Rental. While the swift value-up announcements carry significance by themselves—offering clarity on long-term strategies and shareholder returns—they also reflect the growing need for Lotte to adapt quickly to ensure financial stability amid challenging business conditions. #LotteGroup #ShinDongbin #ValueUp #CorporateStrategy #FinancialStability #EmergencyManagement #CreditRating #RetailBusiness #ChemicalIndustry #AssetSales
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- POSCO's Steel and Battery Businesses Face Challenges, Doubt on Chang In-hwa's KRW 200 Trillion Goal
- POSCO Group Chairman Chang In-hwa’s ambitious mid- to long-term goal of achieving a consolidated market cap of KRW 200 trillion (approximately USD 145 billion) by 2030, centered on steel and battery materials, is already facing challenges. The group’s holding company and key subsidiaries are struggling, and POSCO’s investments in secondary battery materials are being reduced or delayed, dampening market expectations. According to industry sources on October 17, POSCO Group has begun "adjusting the pace" of its investments in battery materials by scaling back or postponing certain projects. On September 26, POSCO Future M, the group’s battery materials subsidiary, announced a delay in the completion of its cathode material plant in Bécancour, Quebec, a joint venture with General Motors (GM) aimed at producing 30,000 tons annually. POSCO Future M and GM had initially formed the joint venture 'Ultium CAM' in July 2022, marking the first battery materials collaboration of its kind. The plant was slated for completion by the end of September 2023, but no revised completion date has been provided. POSCO Future M explained, "We are adjusting the timeline due to local conditions and will make a new disclosure once finalized." Additionally, POSCO Future M canceled plans to build a precursor plant, a key material in cathode production. On September 4, the company announced, “Although we signed an MOU with the city of Pohang and Huayou Cobalt for nickel refining and precursor production, we have decided to halt the review process due to the slowdown in the electric vehicle (EV) market, which has impacted the business outlook.” The precursor plant, which was to be built at Pohang Blue Valley Industrial Complex with a KRW 1.2 trillion (USD 865.3 million) investment and a target operational date of 2027, has now been scrapped. Moreover, in August, POSCO Future M decided to transfer its 51% stake in P&O Chemical, a joint venture with OCI, back to OCI. P&O Chemical was founded in 2020 to produce high-softening-point pitch for anode material coatings from steel by-products. POSCO Future M has also scaled back its anode material plant under construction at Pohang Blue Valley. The plant, initially planned to produce 18,000 tons annually, will now have a capacity of 13,000 tons, with completion expected by June 2024. Chairman Chang In-hwa emphasized his commitment to battery materials during his inaugural press conference on March 21, 2023. "Among the many new businesses POSCO has ventured into, I believe battery materials have been our greatest success. We must not stop investing just because the market is challenging. We will invest at the right time and scale, but we will not neglect this sector," he stated. However, concerns arose within the market following Chang’s appointment, as some feared that the group’s focus might shift back toward steel, potentially reducing investment in new businesses like battery materials. During a May 2023 visit to POSCO Future M’s Energy Materials Research Institute and natural graphite anode plant in Sejong, Chang reiterated, "The EV market is a direction we must pursue, and the group will not reduce investments in this area." Despite these assurances, the reduction in POSCO’s battery-related investments reflects the dual challenges the group faces—sluggish growth in the global EV market and the steel industry’s downturn. In April 2023, POSCO Holdings noted in its first-quarter report, "While we will maintain our growth strategy for battery materials, we will defer certain investments to a more reasonable timeline, reflecting the slowdown in the EV market." The group also revised its production capacity targets compared to its earlier Value Day projections in July 2022: - Lithium: from 166,000 tons to 96,000 tons - Nickel: from 143,000 tons to 48,000 tons - Cathode materials: from 445,000 tons to 395,000 tons - Anode materials: from 221,000 tons to 114,000 tons Furthermore, the completion of expansion investments, initially planned for 2026, has been postponed to 2027 or later, with some projects under review. The downturn in the EV battery market and shrinking investments have dampened investor sentiment toward POSCO Group. Shares of POSCO Holdings, which once traded around KRW 600,000 (USD 432.7) per share, closed at KRW 342,500 (USD 247) on October 17, 2023. In July 2023, POSCO Holdings announced a shareholder return policy involving the cancellation of treasury shares worth approximately KRW 2 trillion (USD 1.44 billion) by 2026, but the initiative has not led to a meaningful recovery in the stock price. At a CEO town hall meeting in early July, Chairman Chang outlined the group’s future vision: “With steel, battery materials, and advanced materials at the core, we aim to double group revenue and quadruple operating profit by 2030, reaching a consolidated market cap of KRW 200 trillion (USD 144.3 billion). We will position ourselves as a global leader in materials with the highest corporate value." However, as the group slows its battery materials investments in the first year of his tenure, concerns are growing about whether the 2030 goal is achievable. As of the market close on October 17, 2023, the combined market capitalization of POSCO Group’s listed companies stood at KRW 60.7893 trillion (USD 43.8 billion): - POSCO Holdings: KRW 28.2988 trillion (USD 20.4 billion) - POSCO Future M: KRW 18.1264 trillion (USD 13.1 billion) - POSCO International: KRW 9.1832 trillion (USD 6.6 billion) - POSCO DX: KRW 4.257 trillion (USD 3.1 billion) - POSCO M-Tech: KRW 695 billion (USD 501 million) - POSCO Steelion: KRW 228.9 billion (USD 165 million) #ChangInhwa #POSCOGroup #batterymaterials #2030goals #marketcap #EVmarket #steelindustry #POSCOFutureM #investmentreduction #Koreanbusiness #corporatestrategy #globalmaterials
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- Hanwha E&C Nears Seoul Station Project, Kim Seung-mo Eyes Revival Through Mixed-Use Development
- Hanwha Corporation E&C Division is on the verge of starting construction on the Seoul Station Northern Area Development Project, signaling a strategic shift toward becoming a developer. According to Kim Seung-mo, the CEO and President of Hanwha Corporation E&C Division, the company aims to turn around its performance by leveraging large-scale mixed-use development projects, starting with the Seoul Station project. As of October 17, Hanwha Corporation E&C Division plans to convert this project to project financing (PF) worth KRW 2.105 trillion (USD 1.52 billion) and begin construction within the year. This project will transform a vacant lot at 122 Bongnae-dong 2-ga in Jung-gu, Seoul, into a massive complex with MICE (Meetings, Incentives, Conferences, Exhibitions) facilities, offices, hotels, and high-end residences. The development will consist of five buildings with a total floor area of 350,000 m², rising from six underground levels to 39 floors above ground. Seoul Station Northern Area Development, the project’s operating entity, was established with investments from Hanwha Impact (40%), Hanwha (29%), Hanwha Connect (29%), and Hanwha Hotels & Resorts (2%). Hanwha Corporation E&C Division will handle the construction. For financing, KB Kookmin Bank recently secured senior investments totaling KRW 2.105 trillion (USD 1.52 billion) from Korea Development Bank, NongHyup Bank, Industrial Bank of Korea, and Woori Bank, ensuring a smooth transition from the existing bridge loan by the end of October. After receiving its final construction permit in December 2022, the project underwent adjustments to ensure smooth execution. In July 2023, the Seoul Urban and Architectural Joint Committee approved changes such as the relocation of the observation deck, modifications to the connecting bridge at Seoul Station Plaza, and the addition of exhibition space to the conference facilities. The Ministry of Land, Infrastructure, and Transport conditionally approved the revised development plan in September 2023. The updated plan prioritizes occupancy for metropolitan companies to limit migration from non-capital areas and designates part of the office space as Hanwha Group headquarters. This project is a key part of Seoul’s "Northern District Renovation" initiative and represents a turning point for Hanwha Corporation E&C Division, solidifying its focus on large-scale mixed-use developments. Hanwha Corporation E&C Division will follow up with additional major projects, including the Suseo Station Transit Center (KRW 1.6 trillion / USD 1.15 billion), Daejeon Station (KRW 1.1 trillion / USD 793.08 million), and the Jamsil MICE project (KRW 2.2 trillion / USD 1.59 billion), expected to begin construction by 2026. Hanwha Group holds significant stakes in these projects, with 50% ownership in Daejeon Station Development and 46.16% in the Suseo Station project, while also serving as the preferred bidder for the Jamsil MICE project in partnership with HDC Hyundai Development. Amid uncertain conditions in the construction and real estate markets, Hanwha Corporation E&C Division has shifted its focus to mixed-use development projects, concentrating internal resources and management capabilities on these initiatives. Kim Seung-mo is expected to lead the groundbreaking efforts for the Seoul Station Northern Area project and other developments. With his term set to expire in March 2024, sources suggest that his reappointment is likely, which would allow him to oversee the core stages of these long-term projects. In terms of performance, the importance of these projects cannot be overstated. Hanwha Corporation E&C Division posted operating losses of KRW 42.3 billion (USD 30.5 million) in Q4 2022 and KRW 58.8 billion (USD 42.4 million) in Q2 2023, reflecting industry-wide challenges. Additionally, the company’s shrinking scale is a concern, with sales declining from KRW 1.35 trillion in Q3 2022 to under KRW 1 trillion in 2023. Hanwha Corporation E&C Division's order backlog also decreased from KRW 15.1 trillion in 2021 to KRW 14.5 trillion by the end of 2022, with further reductions expected to KRW 12.9 trillion by the end of 2023. Key projects such as Seoul Station Northern Area (KRW 1.2018 trillion / USD 866.47 million), Daejeon Station (KRW 766.5 billion / USD 552.63 million), and Suseo Station (KRW 441.7 billion / USD 318.46 million) will play pivotal roles in boosting performance. The Seoul Station project, targeted for completion by 2028, is expected to generate around KRW 300 billion (USD 216.29 million) in annual revenue. As additional projects proceed, Hanwha Corporation E&C Division anticipates further sales growth. As a developer-led initiative, the project is expected to deliver higher profitability than conventional construction projects. However, analysts warn that significant short-term profitability improvements may be limited due to rising costs. Kim Jang-won, a researcher at BNK Investment & Securities, noted in a recent report, "The construction division is experiencing low profitability due to rising costs and the completion of major projects. Even with new projects like Seoul Station Northern Area, the impact of weak profitability may continue into next year." A Hanwha Corporation E&C Division representative stated, "With the start of the KRW 1.2 trillion Seoul Station project, followed by Suseo, Daejeon, and Jamsil developments, we expect to see improvements in both revenue and profitability." #Hanwha #HanwhaCorporation #HanwhaE&C #SeoulStation #mixedusedevelopment #realestate #construction #SuseoStation #DaejeonStation #JamsilMICE #KimSeungmo #corporatestrategy #projectfinancing #infrastructure
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- LG Uplus Stumbles in Q3, Will Hwang Hyeon-sik Push for Workforce Optimization and Cost-Cutting in Q4?
- LG Uplus is projected to underperform its competitors in Q3 2024, due to stagnant growth in the telecommunications business and rising costs such as amortization and labor expenses. Hwang Hyeon-sik, the CEO and President of LG Uplus, is expected to focus on cost-cutting efforts starting in Q4 to improve profitability. According to the telecom industry on October 17, SK Telecom will announce its Q3 results on November 6, followed by LG Uplus and KT on November 8. Market consensus compiled by financial data provider FnGuide suggests that, unlike SK Telecom and KT, LG Uplus is likely to see a decline in earnings compared to the same period last year. LG Uplus is estimated to report Q3 2024 revenue of KRW 3.6421 trillion (USD 2.63 billion) and operating profit of KRW 253.7 billion (USD 183 million). While revenue is expected to grow by 1.7% year-on-year, operating profit is likely to decline by 0.21%. In contrast, SK Telecom and KT are forecast to post operating profit growth of 4.86% and 43.14%, respectively, over the same period. The weak performance of LG Uplus is largely due to increased costs. Amortization of intangible assets related to customer management systems and depreciation from 5G network investments, each amounting to KRW 20 billion (USD 14.4 million), were recognized in Q3. Additionally, labor costs are expected to rise to KRW 497 billion (USD 358 million), an increase of KRW 36 billion (USD 25.9 million) compared to Q3 2023. Kim A-ram, a senior researcher at Shinhan Investment & Securities, commented, "LG Uplus is less attractive than its competitors, being the only one of the three major carriers to experience declining profits. It also lags behind in shareholder returns and non-telecom business performance." To address these challenges, Hwang Hyeon-sik is expected to focus on structural cost reductions in Q4. Marketing expenses are likely to be a key area for cuts. In the first half of 2024, LG Uplus spent KRW 1.068 trillion (USD 770.4 million) on marketing, a 0.5 percentage point decrease from the previous year. There are also growing discussions about workforce efficiency. With both KT and SK Telecom reducing staff, LG Uplus may follow suit. KT is planning to reduce its headquarters workforce from 18,000 to 12,000, while SK Telecom has increased its retirement package from KRW 50 million (USD 36,000) to KRW 300 million (USD 216,000) to encourage voluntary resignations. LG Uplus, which had been relatively untouched by layoffs in the past, conducted its first voluntary retirement program in 2022, targeting employees over 50 years old with at least 10 years of service. Shin Eun-jung, a researcher at DB Financial Investment, noted, "Labor costs at LG Uplus are rising due to an increase in AI-related personnel. However, starting from Q4, labor costs are expected to stabilize at current levels, and the increase in server-related amortization expenses will also slow, helping to reduce the overall cost burden." #LGUplus #HwangHyeonsik #Q3Results #costcutting #telecommunications #workforcereform #5G #marketingexpenses #laborcosts #voluntaryretirement #SKTelecom #KT
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- YG Entertainment's BABYMONSTER Gears Up for 2nd-Year Tour, Yang Hyun-suk Nurtures 'Next BLACKPINK'
- Yang Hyun-suk, Executive Producer of YG Entertainment, is gearing up to develop the rookie girl group 'BABYMONSTER' as the next major revenue source to follow 'BLACKPINK'. Under Yang’s full support, 'BABYMONSTER' has confirmed a rapid comeback and is steadily laying the groundwork for its first tour in 2025, marking the group’s second year since debut. According to the entertainment industry on the 16th, Yang is showing confidence in 'BABYMONSTER’s' upcoming first full-length album. Given the void left by 'BLACKPINK's' absence, Yang is determined to make this album a success. As securities analysts widely anticipate 'BABYMONSTER’s' tour in 2025, the success of this album will likely determine the scale of future tours. To generate excitement, Yang has adopted an unusually fast album release strategy for a rookie group, paired with distinctive promotional efforts. Starting from October 11, 'BABYMONSTER' has been pre-releasing almost all tracks from the full-length album 'DRIP', revealing two songs per week (about one minute each), except for the title track. So far, the hip-hop track 'Click Clack' and the pop ballad 'Love Maybe' have been unveiled. On October 18 and 19, the group will release 'Woke Up in Tokyo' and 'Billionaire', respectively. This promotional strategy is a bold move for YG Entertainment, as entertainment companies typically release album previews about a week before launch. To maintain interest, companies usually limit song exposure and focus instead on teasers through photos or videos. However, Yang has opted to reveal half of the album in advance, signaling high confidence in the songs. This suggests that the music alone can generate significant buzz. Adding to the anticipation, the title track 'DRIP' features contributions from 'G-Dragon', who composed many of 'BIGBANG’s' hit songs. The involvement of 'G-Dragon' has heightened expectations. 'BABYMONSTER’s' latest comeback comes just four months after their activities with the debut mini-album 'Shishi' on April 1 and the digital single 'Forever' on July 1, indicating a short break between releases. Rookie artists typically focus on releasing mini-albums frequently to increase exposure. However, with 'BLACKPINK’s' tour hiatus, Yang likely prioritized 'BABYMONSTER’s' full-length album to secure a proper tour setlist. 'BLACKPINK' decided not to extend their group activities after re-signing with YG Entertainment in 2023, opting instead to pursue individual careers this year, which led to a break in tours and negatively impacted the company’s financial performance. YG Entertainment reported consolidated sales of KRW 90 billion (US$ 64.9 million) and an operating loss of KRW 10.9 billion (US$ 7.86 million) in the first half of 2024. This marks a sharp decline compared to the first half of 2023, when it recorded KRW 158.2 billion (US$ 114.1 million) in sales and KRW 28.8 billion (US$ 20.8 million) in operating profit. Industry experts see 'BABYMONSTER' as the successor to 'BLACKPINK'. On October 2, Kiwoom Securities analyst Lee Nam-su stated, "We should focus on 'BABYMONSTER’s' future growth potential." The group’s first tour is drawing significant attention. Hanwha Investment & Securities analyst Park Soo-young predicted on October 15, "'BABYMONSTER' could hold multiple solo concerts as early as the first quarter of 2025 after the release of their full album." Meanwhile, Kim Hyun-yong from Hyundai Motor Securities forecasted on October 10, "'BABYMONSTER’s' first tour is likely to begin in the first half of 2025. If they manage to attract 150,000 to 200,000 attendees through an arena tour, that would be the best-case scenario." 'BABYMONSTER' is a multinational girl group with three Korean members, two Thai members, and two Japanese members. From the start, the group has targeted international markets, and they are already making notable achievements abroad. Their debut album 'Shishi' set a new record for first-week sales by a K-pop girl group, with 401,287 copies sold. The title track, also named 'Shishi', ranked 5th on Spotify’s list of 'Most-Streamed Korean Songs Overseas in the First Half of 2024.' Building on their global popularity, 'BABYMONSTER' completed their first fan meeting tour in the third quarter of 2024. The tour covered 12 events across seven Asian cities, including South Korea, Japan, Indonesia, Thailand, and Taiwan. #BABYMONSTER #YangHyunSuk #YGEntertainment #BLACKPINK #DRIP #GDragon #Kpop #tour #albumrelease #multinationalgirlgroup
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- Chey Tae-won "SK Shares Are Indivisible Personal Assets"
- Chey Tae-won, chairman of SK Group, has reportedly submitted a statement of reasons to the Supreme Court, arguing that the assets under his name, including SK shares, are indivisible personal assets. In response, Roh So-young, director of Art Center Nabi, countered this argument, stating that it disregards legal principles and court precedents. According to legal sources on the 16th, Chey's legal team submitted a 500-page statement to the Supreme Court, citing Articles 830 and 831 of the Civil Code to argue that the appellate court's judgment was unfair. Article 830 of the Civil Code stipulates, "Assets acquired by either spouse before marriage, and assets acquired in one's own name during marriage, are considered personal assets." Article 831 states, "Each spouse manages, uses, and profits from their personal assets independently." Chey’s legal team argued, “Assets acquired solely in one’s name during marriage are presumed to be personal property, and the presumption is not overturned merely by claiming spousal cooperation or support in acquiring those assets.” They further contended, “If the practice is to broadly recognize a spouse’s contribution simply based on the length of the marriage and treat personal assets as joint property, adjusting the division ratio accordingly, the principle of separate property between spouses will be rendered meaningless.” In general, personal assets are excluded from the division of property during divorce. However, if the marriage is long, or if the spouse contributed to the growth or maintenance of the personal assets, those assets can be considered joint property and subject to division. The appellate court previously ruled that KRW 30 billion (US$ 21.6 million), presumed to be slush funds from former President Roh Tae-woo, had flowed into Chey’s father, Chey Jong-hyun, the late chairman of SK Group. The court argued that this formed the basis for SK Group’s growth, and therefore, SK shares could not be regarded as Chey Tae-won's personal property. Roh So-young's side, in their response, maintained that the appellate court’s decision was correct. Roh’s legal team argued, “Chey Tae-won is not only ignoring the purpose of the property division system, but also established legal precedents. Through his own independent view and manipulative logic, he is attempting to exempt himself from property division, as if his assets were inviolable.” Regarding the civil law articles cited by Chey’s side, they countered, “These are provisions related to personal and unassigned assets, not regulations concerning property division.” Roh's team also argued that if Chey’s claims were accepted by the Supreme Court, it could negatively impact future divorce cases for the general public. They added, “Even now, people who run businesses or possess significant assets frequently overuse the claim of personal assets, like a ‘sword of immunity,’ regardless of how those assets were maintained or formed. This will result in guilty spouses driving innocent spouses out with nothing, causing suffering for children in the process.” #CheyTaeWon #RohSoYoung #SKGroup #divorce #assetdivision #civilcode #personalassets #courtcase #propertylaw #legalbattle
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- Kiwoom Securities' Savior Eom Ju-sung Faces Parliamentary Audit, Paving the Way for Megainvestment Bank
- Eom Ju-sung, CEO and President of Kiwoom Securities, is set to face a parliamentary audit before pushing forward with the company's plans to obtain a megainvestment bank (IB) license. Kiwoom Securities has delayed its pursuit of becoming a megainvestment bank due to the stock manipulation scandal involving Youngpoong Paper and the management risks posed by Kim Ik-rae, former chairman of Daou Kiwoom Group. Eom, appearing in place of the former chairman, is expected to focus on creating a favorable atmosphere for advancing the IB license during this audit. According to the National Assembly on the 16th, Eom will testify as a witness at the Financial Supervisory Service's audit by the National Policy Committee on the 17th. His testimony is related to last year's stock price crash, sparked by SG Securities. The National Policy Committee had initially requested Kim Ik-rae to testify at the audit on the 10th but later withdrew the request, leading Eom to appear instead. The audit is expected to focus on questions surrounding the follow-up measures taken after the April 2023 stock crash involving SG Securities. At that time, Kim Ik-rae sold 1.4 million shares of Daou Data in a large block sale worth KRW 60.5 billion (US$ 43.6 million) just before the stock price crash. He was suspected of selling the shares using undisclosed investment information to avoid losses. However, after nearly a year-long investigation, prosecutors cleared him of charges in May 2023. Kim stepped down from his positions as group chairman and chairman of the Kiwoom Securities board following the scandal. However, since Eom was serving as Vice President and Head of the Strategic Planning Division at Kiwoom Securities during the incident, he is likely to face harsh criticism from members of the committee. Additionally, Eom is expected to be questioned about the stock price manipulation involving Youngpoong Paper. Kiwoom Securities suffered significant financial losses following the sharp decline in Youngpoong Paper’s stock price, resulting in unpaid balances of KRW 494.3 billion (US$ 356.5 million) in customer trust accounts. As a result, the company posted a loss of KRW 450 billion (US$ 324.5 million) in the fourth quarter of 2023, severely impacting its quarterly performance. Eom is likely to use his appearance at the audit to address these past issues. After taking office as CEO in January, he has emphasized risk management, which he is expected to highlight during the session. Since becoming CEO, Eom has elevated the company's existing risk management task force to an official team, expanding it into the Retail Business Analysis Team. He has also established the Group Risk Management Team to integrate the management of subsidiary risks and internal controls. With Kiwoom Securities having met many of the material conditions required for a megainvestment bank license, Eom is expected to focus on addressing public concerns related to past scandals and subsequent responses during the audit. Following the audit, Eom will likely push forward with the IB license process, working to improve the National Assembly and regulatory authorities' perception of Kiwoom Securities. Due to the temporary downturn in performance caused by the Youngpoong Paper scandal and the risks associated with Kim Ik-rae, Kiwoom Securities has postponed its plans to apply for a megainvestment bank license. In the second-quarter earnings conference, the company stated, "We have met the requirements for a megainvestment bank license and will apply within the year. Once approved, we expect to officially begin our note issuance business." As of the second quarter, Kiwoom Securities had KRW 4.6348 trillion (US$ 3.34 billion) in equity capital. Securities companies with equity capital exceeding KRW 4 trillion (US$ 2.89 billion) can obtain megainvestment bank licenses and conduct note issuance operations. Securities firms' business scopes expand based on their equity capital size, with significant improvements seen when they exceed KRW 3 trillion (US$ 2.16 billion) and are designated comprehensive financial investment service providers (CFISP). Kiwoom Securities achieved CFISP status in March 2022 and has since increased its capital to challenge for a megainvestment bank license. Note issuance refers to the issuance of short-term financial products maturing within a year, based on the company’s own credit. These notes generally offer higher interest rates, enabling firms to attract funds, which they can then invest in various projects. Kiwoom Securities could issue notes up to two times its equity capital, potentially allowing for issuance of between KRW 8 trillion and 10 trillion (US$ 5.77 billion to US$ 7.21 billion). Operating margins on such notes are expected to range from 50 to 100 basis points (0.5–1%). Eom is also aiming to break Kiwoom Securities' all-time record for earnings in his first year as CEO. The company expects to achieve KRW 1.106 trillion (US$ 797.7 million) in operating profit and KRW 819.7 billion (US$ 591 million) in net profit this year. Although these figures fall short of the record-breaking 2021 results of KRW 1.2089 trillion (US$ 872.2 million) in operating profit and KRW 910.2 billion (US$ 656.3 million) in net profit, they are still considered a significant surprise (earnings surprise). Kim Ji-won, a researcher at Daol Investment & Securities, said, "While the average daily trading volume in the domestic stock market has decreased, overseas stock trading has increased, and expectations for profit growth are rising in the lower interest rate environment. Additionally, the burden of provisions for real estate project financing (PF) is expected to be minimal." Eom is also pursuing a strategy to increase profitability by focusing on quality real estate PF projects. Kiwoom Securities, though a latecomer to the real estate PF market, is praised for its strong investment capacity and low default risk. In August, Kiwoom Securities made a solo investment of KRW 610 billion (US$ 439.9 million) in a bridge loan for the redevelopment of the former KT site in Mok-dong, Seoul (KRW 360 billion in senior debt and KRW 250 billion in junior debt), later transferring KRW 50 billion (US$ 36.1 million) in senior debt to Samsung Securities. Lim Hee-yeon, a researcher at Shinhan Investment & Securities, stated, "Kiwoom Securities continues to see growth in overseas stock trading and customer deposit assets. It also maintains balanced results in traditional corporate finance (IB) and is securing new real estate PF deals. The goal is to obtain a megainvestment bank license by the first half of 2025." #KiwoomSecurities #EomJuSung #megainvestmentbank #noteissuance #YoungpoongPaper #realestatePF #stockmanipulation #equitycapital #DaouKiwoom #SGSecurities
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- Hyundai Motor Group Slips to 3rd Place in U.S. EV Market Behind GM in Q3; Chung Eui-sun Aims to Chase Tesla
- Hyundai Motor Group lost its second-place position in the U.S. electric vehicle (EV) market in the third quarter to General Motors (GM), which focused on more affordable EV models. However, with Hyundai Motor Group’s dedicated EV plant in Georgia (Hyundai Motor Group Metaplant America, HMGMA) set to begin full-scale operations, the group is expected to have an opportunity to increase its market share in the U.S. EV sector. Moreover, HMGMA, which has an annual production capacity of 300,000 units, is also planning to produce hybrid vehicles to meet local demand. This raises expectations about whether Hyundai Motor Group could break into the top three U.S. automakers in terms of sales next year. On the 15th, U.S. automotive research firm Kelley Blue Book (KBB) reported that Hyundai Motor Group (Hyundai, Kia, Genesis) sold 29,609 EVs in the U.S. during the third quarter, a 3.7% decline from the same period last year, capturing an 8.5% market share. In the same period, GM sold 32,095 EVs, an increase of 59.7%, overtaking Hyundai Motor Group for the second spot, leaving Hyundai in third place. Hyundai Motor Group became the second-largest EV seller in the U.S. for the first time in 2023 with a 7.9% market share and maintained that position in the first and second quarters of this year. The total number of EVs sold in the U.S. in the third quarter increased by 11% from the same period last year, reaching 346,309 units, with EVs accounting for a record 8.9% of all vehicle sales. Stephanie Valdez Streaty, Director at Cox Automotive, stated, "While current EV market growth is partially driven by incentives and discounts, sales are expected to increase further as more affordable EVs enter the market and infrastructure improves." Indeed, GM's nearly 60% increase in U.S. EV sales in the third quarter was due to the introduction of more affordable models like the Chevrolet Equinox EV and Blazer EV. The starting price of the Equinox EV 2LT model currently on sale is $43,295 (about KRW 59 million), which is around KRW 2 million more expensive than Hyundai’s Ioniq 5 ($41,800). Later this year, the more affordable Equinox EV 1LT model, priced at $34,995, will be available for pre-order. Chevrolet has promoted the Equinox EV as "the most affordable EV with a driving range of over 315 miles (about 507 km) on a single charge." The Blazer EV also has a starting price of $44,600, placing it among the more affordable EVs on the market. These two models sold a combined 17,770 units in the third quarter, accounting for 55.4% of GM’s total EV sales. However, in terms of cumulative EV sales from January to September, Hyundai Motor Group maintained second place with a 9.5% market share, trailing Tesla. GM ranked third with a 7.4% market share. Hyundai Motor Group plans to launch the Kia EV3, a budget EV, and the Hyundai Ioniq 9, a large SUV EV, in the U.S. next year, aiming to expand its local EV market share. Industry analysts expect the EV3 to be priced between $30,000 and $35,000 in the U.S. With production in North America, it would qualify for up to $7,500 in tax credits under the U.S. Inflation Reduction Act (IRA), potentially lowering the actual purchase price to between $22,500 and $27,500, making it one of the most affordable EVs available. Given that nearly 80% of the U.S. vehicle market consists of light trucks (SUVs and pickup trucks), Hyundai’s first large EV, the Ioniq 9, is expected to attract strong demand. Kia’s EV9, a comparable model launched late last year, sold 15,970 units in the U.S. from January to September this year, leading Kia’s EV sales. More importantly, the full-scale operation of Hyundai Motor Group’s dedicated EV plant in Georgia (HMGMA) is expected to solidify the group’s position as the second-largest EV seller in the U.S., trailing only Tesla. HMGMA is reported to have recently started producing the 2025 Ioniq 5. In response to the IRA, which grants up to $7,500 in subsidies (tax credits) for EVs assembled in North America, Hyundai Motor Group Chairman Chung Eui-sun decided in August 2022 to invest $7.6 billion (about KRW 10.34 trillion) in the construction of HMGMA, a plant with an annual production capacity of 300,000 units. The groundbreaking ceremony took place at the end of October 2022. Chairman Chung concentrated the group’s efforts on accelerating the operational timeline of HMGMA, which was initially set for 2025. Although the official completion ceremony for HMGMA is scheduled for the first quarter of next year, production has already begun, and the plant is expected to ramp up operations quickly in the fourth quarter of this year. As a result, the number of Hyundai EVs eligible for federal EV tax credits in the U.S., starting with the Ioniq 5, is expected to increase steadily. HMGMA is expected to be a crucial milestone for not only increasing Hyundai’s EV market share in the U.S., but also boosting the group’s overall vehicle sales, including internal combustion engine vehicles, in the region. Hyundai and Kia recently announced plans to strengthen their hybrid vehicle lineup in response to the global slowdown in EV demand. In line with this strategy, Hyundai Motor Group revised its initial plan to produce only EVs at HMGMA, deciding to invest in facilities that can also produce hybrid vehicles. While Hyundai Motor Group’s monthly U.S. sales figures have fluctuated throughout the second half of this year, hybrid vehicles such as the Tucson Hybrid, Santa Fe Hybrid, and Elantra Hybrid (sold locally as the Elantra) have consistently set monthly sales records, leading to strong overall performance. Currently, Hyundai Motor Group has an annual production capacity of around 1.1 million vehicles in North and Central America, with 356,000 units produced at Hyundai’s Alabama plant, 340,000 at Kia’s West Point, Georgia plant, and 400,000 at Kia’s Mexico plant. As the Alabama and Georgia plants are already operating above 100% capacity, the decision to produce hybrid vehicles at HMGMA, which has an annual capacity of 300,000 units, is expected to lead to immediate sales growth. In 2022, Hyundai Motor Group sold 1,652,821 vehicles in the U.S., surpassing Stellantis for the first time to become the fourth-largest automaker in the U.S. GM topped the list with 2,577,662 units sold, followed by Toyota Group with 2,248,477 units. Ford ranked third with 1,995,912 units, about 340,000 units ahead of Hyundai Motor Group. #HyundaiMotorGroup #EVmarket #ChungEuisun #HMGMA #Tesla #EVproduction #KiaEV3 #Ioniq9 #GM #GeorgiaEVplant
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- SPC’s Talent Acquisition Keywords: ‘Management’ and ‘Government Affairs,’ Attracting Former Samsung Affiliates and Presidential Office Veterans
- It appears that SPC Group is focusing on management and government affairs as it puts considerable effort into recruiting external personnel. Amid the ongoing trial of Chairman Heo Young-in of SPC Group for allegedly pressuring union members to withdraw, there is analysis suggesting that the company is taking bold steps to minimize owner-related risks and foster a positive corporate image. As of the 15th, when reviewing the external personnel SPC Group has recruited over the past year or two, there is a noticeable trend toward attracting people with backgrounds in the Presidential Office (formerly the Blue House) and from Samsung-affiliated companies. Im Byung-sun, who has been appointed as co-CEO of SPC Group, comes from Shinsegae Group, which is considered part of the broader Samsung family. Born in 1962, he has held positions such as Vice President of Shinsegae Department Store Division and CEO of Shinsegae Casa. What stands out is his experience working in Shinsegae Group’s Business Strategy Office. Since the Business Strategy Office serves as the control tower for the group, it is believed that Im was recruited to review SPC Group’s overall strategy. SPC Group has explained that Im will oversee personnel, legal affairs, external relations, and public relations. The recruitment of experienced managers also occurred last year. In March 2022, SPC Group appointed Ha Joo-ho, former Vice President of Hotel Shilla, as Head of the Communication Division. Born in 1964, Ha began his career at Samsung Life Insurance in 1989 and worked for 34 years across various Samsung Group affiliates. He is a public relations expert, having held positions such as Head of Samsung Electronics' PR Group, Head of Everland’s Communication Team, and Head of Hotel Shilla’s Communication Team. Ha was recruited at a time when SPC Group was facing significant consumer criticism. It seemed that the company wanted to strengthen its external communication by bringing in someone seasoned in PR, and to leverage Ha’s relationships for government affairs. However, in July of this year, Ha stepped down and was replaced by Lee Sang-eon, a former editorial writer for the JoongAng Ilbo. Lee was appointed while Chairman Heo was under investigation for allegedly pressuring union members to withdraw. Some speculate that Lee, having worked as a social and legal reporter at JoongAng Ilbo for a long time, was selected due to his connections and information in the legal community. Some Samsung Group insiders also suggested that Ha’s capabilities may not have been fully utilized during Heo’s trial, leading to his resignation. SPC Group has also actively recruited personnel from the Presidential Office, seemingly as part of its efforts to enhance government affairs. In July, SPC Group appointed Yeo Sun-woong, a former Senior Administrative Officer at the Presidential Office, as Head of the Strategic Support Office. At the time of his appointment, SPC Group stated, “Yeo will be responsible for government affairs, particularly in relation to the National Assembly.” Born in 1983, Yeo entered politics when he was elected as a member of the Gangnam District Council in 2014. In 2018, he worked as Head of the New Rules Group at SoCar before joining the Presidential Office in 2019 as a Senior Administrative Officer. From 2021, Yeo worked as Vice President at the comprehensive proptech company Zigbang before moving to SPC Group. In August last year, SPC Group also recruited Chun Hyo-jeong, a former Deputy Spokesperson at the Presidential Office, to lead its New Media Office. Born in 1986, Chun began her career as a reporter for Channel A and later moved to KBS. She served as the first Deputy Spokesperson under the Yoon Seok-yeol administration. Although she applied for a proportional representative position with the People’s Future Party for the 22nd National Assembly elections, she did not make the final list. Chun, who holds both a master’s and a doctorate in law from Seoul National University, is seen as having strengths not only in government affairs but also in leveraging legal connections. SPC Group has also focused on utilizing its legal network. In March 2022, the group appointed Kang Sun-hee, an attorney, as its CEO. Born in 1965, Kang is a former judge who also worked as an administrative officer in the Office of the Senior Secretary for Civil Affairs during the Roh Moo-hyun administration. Kang’s experience spans both the legal field and the Presidential Office. However, Kang stepped down in March this year after serving just one year. She resigned to support her husband, Kim Jin-mo, a former Deputy Secretary for Civil Affairs at the Blue House, in his campaign for the 22nd National Assembly elections. The continuous recruitment of personnel from Samsung-affiliated companies and the Presidential Office appears to be related to the controversies surrounding worker deaths and the owner risks faced by SPC Group. Between October 2022 and August 2023, workers were killed or injured in a series of accidents at SPC Group’s affiliate factories. In December 2022, the prosecution indicted Chairman Heo on charges of embezzlement, and he was arrested during the process. Heo is currently on trial for allegedly pressuring union members to withdraw and has been released on bail. With the group’s image deteriorating and the absence of its owner, SPC Group seems to be experiencing a heightened sense of crisis. In an effort to minimize management risks, strengthen legal and government affairs, rebuild relations with labor unions, and improve consumer perceptions, the retail industry views SPC Group’s aggressive recruitment of personnel with expertise in management and external affairs as a strategic move. #SPCGroup #HeoYoungin #management #governmentaffairs #Samsungaffiliates #PresidentialOffice #externalrecruitment #legalnetwork #laborunion #corporateimage
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- Samsung Electronics Accelerates Integration of 'Mobile+Home Appliances+AI' in Response to Apple's 'Smart Home' Challenge
- Apple, which does not manufacture home appliances, has thrown down the gauntlet in the 'smart home' market. Known for maintaining a "closed ecosystem," Apple is preparing a new smart home operating system (OS) and related products, signaling a shift from its previous approach. Samsung Electronics, which has already entered the smart home market, is working to expand its smart home platform ecosystem by integrating its mobile devices, home appliances, and artificial intelligence (AI) into a unified OS. The company is moving quickly to strengthen the connectivity of all its products and secure a dominant position in the market. On the 14th (local time), Mark Gurman, a Bloomberg analyst, predicted that Apple will prioritize the 'smart home' as its top project over the next two years, developing a new 'home OS' and smart displays. Apple's entry into the smart home market, where connectivity is key, is considered unusual. This is because Apple has historically focused on a closed ecosystem that opposes openness and external connections, and the company does not produce indoor home appliances. The closed ecosystem has contributed to Apple's growth by enhancing security, stability, and differentiating itself from competitors. The Wall Street Journal commented, "The closed ecosystem has been the main factor in Apple's success, generating enormous profits." However, it seems Apple may not be able to avoid opening its ecosystem for the smart home market. As Apple does not manufacture home appliances, an open ecosystem is essential to increase the connectivity of various devices present in the home. Gurman also pointed to Apple's closed ecosystem as the reason for its struggles with 'home products' like the HomePod and Apple TV. He analyzed, "A closed ecosystem is not an effective strategy in the smart home market, where consumers want their devices to interconnect with various other products." Apple's shift in direction to target the smart home market is driven by the growth potential of this sector. The smart home market is expected to grow from KRW 165 trillion (US$ 119.0 billion) this year to KRW 860 trillion (US$ 620.0 billion) by 2032. However, it is expected to take Apple a long time to enter the smart home market. Gurman reported, "Apple has recently formed a 'home ecosystem' team and brought in engineers who had been working on the Apple Car project." Samsung Electronics, on the other hand, not only operates an open ecosystem based on Google's Android but also produces a wide range of products, from home appliances to mobile devices, already giving it a head start in the smart home market. At the beginning of this year, Samsung Electronics launched various products for the smart home, including the Galaxy S24 series equipped with Galaxy AI and Bespoke AI home appliances. Recently, it expanded the scope of its platform 'SmartThings,' which connects AI devices, by linking it with IKEA furniture. The pace of integrating Samsung Electronics' smart home products into a single OS is accelerating faster than expected. On the 14th, Samsung Electronics applied the 'One UI' update to its TVs, a unified OS that had been expected next year. Additionally, the consumer version of the mobile OS 'One UI 7,' originally anticipated for early next year, is now set to be released by the end of this year. This announcement comes just 12 days after Samsung Electronics revealed at the 'Samsung Developer Conference 2024' that it would unify all AI products under the 'One UI' OS. One UI 7 is being developed based on Google's latest OS, Android 15. It is an operating system (OS) and user interface (UI) that integrates artificial intelligence (AI) across Samsung's electronic devices, including smartphones, TVs, refrigerators, and other home appliances. This One UI integration is expected to be the key to the expansion of Samsung Electronics' smart home ecosystem. While SmartThings allows integration with products from other companies, Samsung Electronics' home appliance buyers will likely experience more optimized and diverse AI experiences under a single system. With the recent One UI update for TVs, smartphones and TVs are now connected, allowing smartphones or tablets to be used as keyboards or mice for the TV. In addition, SmartThings for the Internet of Things (IoT) and AI functions can now be conveniently accessed through mobile devices. #Samsung #Apple #smarthome #artificialintelligence #OneUI #GalaxyAI #homeappliances #SmartThings #mobileOS #AIplatform
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- SKC’s 'Semiconductor Glass Substrate' Commercialization Progresses Smoothly, Park Won-cheol to Kick Off Growth Engine After AMD Certification Next Year
- SKC has successfully stabilized the process for producing its "semiconductor glass substrate," often referred to as the "dream substrate," bringing the company one step closer to commercialization. SKC plans to begin mass production after receiving AMD certification in the first half of 2025, with significant revenue expected to begin in 2026. All eyes are on CEO Park Won-cheol’s glass substrate business, which is seen as a potential lifeline for SKC as the company struggles with poor performance. According to the semiconductor industry on the 14th, despite the challenging processes of handling issues like breakage and adhesion, SKC's subsidiary Absolics has stabilized most of the glass substrate manufacturing processes. From October 6 to 9, Absolics conducted a production line tour at its glass substrate plant in Atlanta, USA. Yoon Jae-sung, a researcher at Hana Securities, who participated in the tour, said, "While not all processes were revealed, a significant number of processes have entered a stabilized stage, laying the foundation for future mass production of glass substrates." The Absolics Atlanta plant is currently operating as a small-volume manufacturing (SVM) facility. After completing AMD certification in the first half of 2025, it will transition to a high-volume manufacturing (HVM) facility. SKC Absolics is reportedly focusing on AMD as its first customer, given their connection through Chiplet. Chiplet was founded by Brian Black, who worked as a packaging expert at AMD for 20 years. It started as an internal venture at AMD in 2016 and spun off in 2021. SKC acquired a 12% stake in Chiplet in September last year. Im So-jung, a researcher at Eugene Investment & Securities, stated, “Absolics is in discussions to target AMD as a customer through Chiplet, a company that spun off from AMD and in which SKC has invested.” Preparations for mass production testing are also underway. ISC, in which SKC invested KRW 520 billion (US$ 374.9 million) to acquire a 45% stake, is expanding its "silicon rubber socket" production plant in Vietnam, which will be used to test the yield of the glass substrate. On October 8, Han Sung-won, head of SK Group's Hanoi Representative Office, met with Tran Duy Dong, chairman of the People's Committee of Vinh Phuc Province, and requested support for the expansion of ISC’s production facilities, according to the government of Vinh Phuc Province. ISC manufactures silicon rubber sockets used to determine semiconductor defects. As semiconductor design and manufacturing processes become more advanced, yield becomes increasingly important, and these sockets are essential for conducting repetitive tests in the same environment. This plant is expected to be used to verify the yield of Absolics' glass substrates. ISC CEO Kim Jeong-ryeol stated in April, “We are preparing to offer ISC’s test solutions when Absolics ships glass substrates.” A representative from Eugene Investment & Securities predicted that “ISC is likely to collaborate with Absolics, another SKC subsidiary currently developing glass substrates.” SKC CEO Park Won-cheol is placing significant importance on the semiconductor materials business, including glass substrates. Despite SKC recording seven consecutive quarters of losses through the second quarter of this year, its semiconductor materials business has shown significant growth. In the second quarter of this year, the semiconductor materials business posted sales of KRW 67.3 billion (US$ 48.5 million) and an operating profit of KRW 15.8 billion (US$ 11.4 million), the only division within SKC to turn a profit. Glass substrates are expected to be a core part of SKC's future. They are highly regarded as the "dream substrate" and are anticipated to drive innovation in semiconductor packaging for high-bandwidth memory (HBM) and artificial intelligence (AI) semiconductors. By using glass substrates instead of traditional plastic substrates, semiconductor packaging thickness can be reduced by 25%, power consumption can be lowered by more than 30%, and data processing speed is expected to increase by 40%. Some experts believe that glass substrate technology could pose a threat even to the world’s largest foundry, TSMC. Georgia Tech Professor Lee Yong-won stated, “Glass substrates are an innovation that could even challenge TSMC’s pride and joy, its 2.5D semiconductor packaging technology, ‘CoWoS’.”
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- LG Electronics Faces Weak Performance Outlook for Q4, Cho Joo-wan Rushes to Expand 'Service and B2B' Revenue
- As global demand for home appliances and electronic devices, including TVs, continues to recover slowly, LG Electronics is seeing a decline in performance, impacted by rising costs in logistics and marketing. Cho Joo-wan, CEO of LG Electronics, is expected to focus on improving profitability by accelerating structural changes aimed at increasing the revenue proportion from service businesses and business-to-business (B2B) transactions, starting from next year. According to industry sources on the 14th, LG Electronics' third-quarter operating profit this year significantly fell short of market expectations, with predictions that this downward trend in performance will continue into the fourth quarter. LG Electronics reported a provisional operating profit of KRW 751.1 billion (US$ 541.7 million) for the third quarter of this year. This figure represents a 20.9% decrease compared to the third quarter of last year and falls far short of the market's expected KRW 1.0154 trillion (US$ 732.2 million). The continued sluggish demand for TVs and IT devices, along with a more than 50% year-over-year increase in average shipping costs per container during the third quarter, have contributed to this decline. Additionally, the automotive component business has seen both growth and profitability worsen due to weak electric vehicle sales. Lee Gyu-ha, a researcher at NH Investment & Securities, stated, “Considering the weak demand in advanced markets like the U.S. and the possibility of further downgrades in the performance of subsidiary LG Innotek, fourth-quarter results may also fall short of market expectations.” As a result, LG Electronics' operating profit margin for the year is expected to remain at 4.3%, similar to last year's level. Revenue growth compared to the previous year is projected to be around 4-5%. There remains a significant gap between the current performance and the long-term goals set by CEO Cho, which include the "Triple 7" strategy: 7% compound annual growth rate (CAGR), 7% operating profit margin, and a corporate value seven times higher. To strengthen profitability, CEO Cho is expected to focus on expanding service revenue, such as the home appliance subscription service. LG Electronics' leading home appliance subscription service is projected to generate KRW 1.8 trillion (US$ 1.3 billion) in revenue this year, a nearly 60% increase compared to last year. The home appliance subscription business is a model that bundles both hardware and care services, generally achieving an operating profit margin in the low to mid-10% range. Considering that the Home Appliance & Air Solution (H&A) division’s operating profit margin was 6.7% last year, this model offers a clear advantage in terms of profitability. Currently, LG Electronics operates its home appliance subscription service in Malaysia and Taiwan, and the company plans to target the markets in Thailand and India starting in 2025. As a result, LG Electronics’ subscription service revenue is expected to grow to around KRW 2.4 trillion (US$ 1.7 billion) next year. An LG Electronics care specialist managing a system air conditioner product. < LG Electronics > Efforts to shift to a B2B-focused business structure are also accelerating. The B2B business has the advantage of generating stable and consistent revenue regardless of economic fluctuations, thanks to the trust-based relationships with customers. Additionally, with larger contract sizes, once a company gets its business on track, it can secure high profitability over the long term. LG Electronics stands out for its ability to offer customers connectivity and total solutions across various product lines. An LG Electronics representative stated, “B2B business is not just about hardware specifications or price; our ability to propose tailored solutions to customers is critical,” adding, “The fact that customers can connect and utilize a wide range of LG products is a key differentiating factor.” LG Electronics is expanding its B2B business into areas such as automotive parts, heating, ventilation, and air conditioning (HVAC), smart factories, electric vehicle charging, and robotics. The proportion of LG Electronics’ B2B business revenue is expected to grow from 35% in 2023 to 40% this year and reach 45% by 2025. CEO Cho is expected to present a specific direction for the service and B2B businesses when announcing LG Electronics’ corporate value enhancement plan in the fourth quarter of this year. At the "Investor Forum" held in August of this year, CEO Cho said, “LG Electronics’ transition to B2B is already rapidly becoming a reality,” adding, “We are pushing for a change to a business structure that can achieve high growth and stable profits, ensuring that LG Electronics receives the proper valuation for its value.” Keywords: #LGElectronics #ChoJoowan #B2B #subscriptionservice #homeappliance #TVdemand #profitability #revenuegrowth #electronicsindustry #smartfactory
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- [Poll Report] Yoon Suk-yeol's Approval Rating Drops to 10% Range for the First Time, Party Support: Democratic Party 43.5%, People Power Party 26.9%.
- A recent poll revealed that President Yoon Suk-yeol's approval rating has dropped to the 10% range. In the party support survey, the Democratic Party of Korea (DPK) was found to lead the People Power Party (PPP) by more than double digits. According to a regular poll released by Poll Flower on the 14th, the positive evaluation of President Yoon Suk-yeol’s handling of state affairs was 19.2%, while the negative evaluation stood at 80.0%. The negative evaluation was more than four times higher than the positive one. Compared to last week's survey (released on the 7th), the positive rating dropped by 4.5 percentage points, while the negative rating increased by 4.0 percentage points. This is the first time Yoon’s approval rating has fallen into the 10% range since he took office, based on Poll Flower's data. Regionally, the negative evaluation was higher than the positive one in all areas. Even in the Daegu and North Gyeongsang (TK) region, where conservative support is traditionally strong, 66.3% of respondents had a negative view, more than double the 32.8% who viewed Yoon positively. Negative evaluations saw significant increases in Seoul (6.5 percentage points) and the Busan, Ulsan, and South Gyeongsang region (6.3 percentage points). Negative evaluations by region were as follows: Gwangju and Jeolla region at 89.9%, Seoul 81.5%, Daejeon, Sejong, and Chungcheong at 81.2%, Incheon and Gyeonggi 79.8%, and Busan, Ulsan, and South Gyeongsang at 78.9%. By age group, negative evaluations were higher than positive ones in all age brackets except those over 70. Among those over 70, 50.8% had a negative view while 48.5% viewed Yoon positively. Negative evaluations by age were as follows: 40s at 93.1%, 30s and 50s at 89.5%, 18–29 at 84.9%, and 60s at 68.1%. In terms of political ideology, 84.0% of centrist voters, considered a key measure of public sentiment, gave a negative evaluation. Even among conservative voters, 56.9% had a negative view, surpassing the 42.3% positive evaluation by more than 10 percentage points. Among progressive voters, the negative evaluation reached 95.5%. In the party support survey, the People Power Party stood at 26.9%, while the Democratic Party of Korea registered 43.5%. The gap between the two parties, at 15.6 percentage points, was outside the margin of error. The PPP’s support dropped by 2.1 percentage points compared to last week, while the DPK’s support rose by 1.6 percentage points. Following the two major parties were the Innovation Party of Korea with 9.4%, the Reform Party with 1.9%, and the Progressive Party with 0.5%. The proportion of undecided voters was 15.9%. The survey was conducted by Poll Flower on the 11th and 12th of this month, targeting 1,003 men and women aged 18 and older nationwide. The survey was conducted through computer-assisted telephone interviews (CATI) using wireless virtual numbers provided by the three major telecom companies. The margin of error is ±3.1 percentage points at a 95% confidence level. Weighting by gender, age, and region, based on the Ministry of the Interior and Safety’s resident registration data as of September 30, 2024, was applied. For more details, please refer to the website of the National Election Survey Deliberation Commission.
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- Bank of Korea ‘Pivots’ After 38 Months, Rhee Chang-yong Prioritizes Domestic Recovery Over Housing Prices
- “There has been meaningful progress in the household debt situation.” Rhee Chang-yong, the Governor of the Bank of Korea, made this remark on the 11th during a press conference following the Monetary Policy Board's decision to lower the base interest rate by 0.25%. He highlighted that changes in the previously concerning trends of household loans were a key factor behind the decision. This rate cut marks the first by the Bank of Korea in four years and six months since April 2020, and it comes after three years and two months of tightening policies that began with the rate hikes in August 2021. The decision was influenced significantly by the slowdown in household loans, as both the Governor and the Monetary Policy Board had previously been cautious due to concerns about rising home prices and increased household debt. In September, the increase in household loans from the five major commercial banks—KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup—was KRW 5.6029 trillion (US$ 4.04 billion), down from KRW 9.6259 trillion (US$ 6.94 billion) in August. The Monetary Policy Board noted in its policy statement that "the housing market in the metropolitan area has seen a slowdown in price increases and a reduction in transaction volumes, while the downturn in regional areas continues," and as a result, "the growth of household loans has significantly decreased." The domestic market's growing fatigue after 38 months of tightening policies also played a role in the decision to lower the rate. The Monetary Policy Board emphasized this shift in its statement, noting that "while exports continue to grow, domestic consumption recovery remains sluggish," signaling a policy shift toward boosting the domestic market. Governor Rhee acknowledged the need for the rate cut to stimulate the economy, stating, "If the economy were overheating, we would maintain the tightening stance, but domestic demand is still below the potential growth rate," effectively admitting the necessity of the rate cut to support recovery. Despite this rate cut, it appears unlikely that there will be another reduction during the final Monetary Policy Board meeting of the year in November, due to ongoing concerns about home prices and household debt. The board stated, "We still need to be cautious about the risks posed by the rate cut on household debt," adding that future policy would closely monitor inflation, growth, and financial stability. Of the six board members, excluding Governor Rhee, five expressed the view that the current interest rate of 3.25% should be maintained for the next three months to assess whether the trends in housing prices and household debt persist and to evaluate the effects of this rate cut. As a result, although Governor Rhee has initiated the rate-cutting process, the pace of future cuts is expected to be slow. Market analysts predict that the rate will likely remain unchanged in the November meeting, with further cuts possible in the first half of next year. Ahn Ye-ha, a researcher at Kiwoom Securities, stated, "The rate will likely be frozen in November, but expectations for further cuts will remain high given the heightened uncertainty surrounding the economy," adding that "there is a high possibility of one additional cut each in the first and second quarters of next year." Cho Yong-gu, a researcher at Shin Young Securities, commented, "Based on the three-month forward guidance, no additional cuts are expected until January next year," predicting that "the next cut will likely occur in February, with another one in the third quarter, bringing the rate down to 2.75% by the end of next year." #RheeChangyong #BankofKorea #interestratecut #householddebt #MonetaryPolicyBoard #KoreanEconomy #ratecutdecision #economicpolicy #domesticmarket #financialstability #marketforecast #interestrate
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- KT Under Kim Young-shub Implements First Voluntary Retirement, Establishes Network Subsidiaries
- KT is set to implement its first voluntary retirement program since Kim Young-shub assumed the role of CEO. The company is also moving forward with plans to establish a subsidiary specializing in network operations, transferring related organizations and personnel. According to reports from the telecommunications industry on the 11th, KT has decided to create two new subsidiaries, KTOSP and KTP&M (tentative name), to which it will transfer its network maintenance and installation-related departments. KTOSP, which will be established with an investment of KRW 61 billion (approximately US$ 44 million), will be responsible for designing and constructing telecommunication facilities such as lines, and it is expected to employ around 3,400 people. KTP&M, with an investment of KRW 10 billion (approximately US$ 7.2 million), will focus on designing power facilities within the main network centers and is expected to have around 380 employees. Additionally, about 170 employees from customer service centers will be reassigned to either KTIS or KTCS. The new subsidiaries will be officially established following a board resolution on the 15th, with the legal incorporation set for January 1, 2025. KT plans to offer a special voluntary retirement option to employees who do not wish to transfer to the new subsidiaries or other existing group companies. The voluntary retirement package will range from 165% to 208.3% of their severance pay, depending on their years of service. It has been reported that the maximum severance package for voluntary retirees could exceed KRW 300 million (approximately US$ 216,400). The personnel restructuring resulting from the creation of the new subsidiaries and the voluntary retirement program is expected to affect up to 5,700 employees out of KT’s total workforce of around 18,000. A KT representative commented, "No final decisions have been made yet." #KT #KimYoungshub #voluntaryretirement #telecommunications #subsidiaryformation #personnelrestructuring #KTOSP #KTP&M #networkoperations #severancepackage #telecomindustry
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- "Despite Foundry Losses, No Spin-Off for Samsung Electronics; Jun Young-hyun Focuses on Turnaround Strategy"
- Samsung Electronics is seeking a breakthrough to reverse its fortunes in the foundry (semiconductor contract manufacturing) business, despite reporting significant operating losses in the trillions of won and dismissing the possibility of spinning off the division. Jun Young-hyun, the Vice Chairman and Head of the Device Solutions (DS) Division at Samsung Electronics, is expected to focus on securing profitability in the 4-5nm processes, where yields (the ratio of finished products) have somewhat stabilized. He is also aiming for a turnaround in the foundry business by betting on the 2nm process next year, with plans to strengthen the company's technological competitiveness and close the gap with industry leader TSMC. According to the semiconductor industry, Samsung’s foundry division is not expected to escape the ‘profitability trap’ in the second half of this year, prompting the need to adjust its existing strategy. Samsung's foundry division reportedly posted an estimated operating loss of about KRW 2 trillion (US$ 1.44 billion) in 2023, and cumulative losses for the first three quarters of this year have already exceeded KRW 2 trillion (US$ 1.44 billion). In contrast, competitor TSMC has reaped significant benefits from the surge in demand for AI semiconductors, with its Q3 2023 sales rising by 36.5% year-over-year to KRW 31.7 trillion (US$ 22.9 billion). However, Samsung Electronics Chairman Lee Jae-yong has made it clear that there are no plans to spin off the foundry business, stating, "We are not interested in spinning off. We are eager to grow the business," indicating his determination to seek a recovery. Samsung has historically pursued a strategy of securing production capacity (capability) first and then attracting customers, unlike TSMC. However, problems with yield rates have caused Samsung to lose major clients, leading to the need to adjust the pace of its capital investments. The company recently delayed the operation of its new foundry plant in Taylor, Texas, from 2025 to 2026, and it is reportedly converting parts of its foundry lines at the Pyeongtaek plant to memory production. Additionally, some of Samsung’s foundry R&D personnel are reportedly being reassigned to memory semiconductor projects. Vice Chairman Jun is currently conducting a management review of the foundry business, and a large-scale reorganization is expected based on the results later this year. To achieve profitability in the foundry business by 2025, Samsung is expected to focus on securing large semiconductor customers like Nvidia and AMD, primarily through its 4-5nm process, which has shown some yield stabilization. While Nvidia and AMD are expected to continue relying heavily on TSMC for high-performance AI semiconductors next year, Samsung may find opportunities in the mid-range AI semiconductor product category. Samsung's 3nm yield reportedly remains below 50%, but the 4nm yield has exceeded 70% this year. Song Myung-seop, a researcher at Hi Investment & Securities, noted, "In the non-memory (system semiconductor) sector, 3nm production issues are expected to persist. However, with yield improvements and customer expansion in 4nm, performance should gradually improve." Samsung Electronics is scheduled to host the 'Samsung Foundry Forum 2024' online on October 24 in Beijing, Tokyo, and Munich, signaling a full-scale effort to attract large customers. In the 3nm space, Samsung is expected to focus on stabilizing yields rather than immediate profitability. Without securing a stable yield, large clients may lose confidence and leave even if they are initially attracted. Unlike memory, foundry operations require firm commitments and trust from customers, a relationship that Samsung has struggled with in the past. However, it is expected to continue significant investments in advanced technology development. In the 2nm space, Samsung is using AI to optimize process design, aiming to reduce leakage power by more than 10%. The company is also considering introducing 'backside power delivery' (BSPDN) technology, which supplies power through the back of the chip, improving both data and power transmission efficiency. On October 8, Vice Chairman Jun posted an apology to customers, investors, and employees, stating, "Above all, we will restore the fundamental competitiveness of our technology. This is Samsung Electronics' pride, and we will never compromise on it." #Samsung #foundry #semiconductors #JunYounghyun #TSMC #AIsemiconductors #4nm #2nm #Nvidia #AMD #profitability #yieldimprovement #BSPDN #LeeJaeyong #SamsungFoundryForum #technologicalcompetitiveness
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- Kim Seung-yeon "we will overcome crises and write the 100-year history of Hanwha."
- Hanwha Group Chairman Kim Seung-yeon emphasized the importance of crisis response as the company aims to become a "100-year enterprise." In a speech delivered via an internal broadcast on the morning of the 10th to commemorate the 72nd anniversary of the company’s founding, Chairman Kim stated, "With unwavering belief and relentless determination to achieve excellence, we will overcome the waves of crisis and write a new chapter in the 100-year history of Hanwha." Chairman Kim emphasized the expansion of successful experiences as a way to overcome crises. He pointed out, "In this harsh environment, where a moment of hesitation can lead to permanent downfall, all companies are facing significant difficulties." Particularly, he highlighted the achievements in the defense sector, such as Hanwha Aerospace and Hanwha Systems, as results that reflect the company’s belief and the history of its persistent challenges. However, he also stressed the need to avoid complacency over temporary successes driven by geopolitical issues. He urged a renewed focus on research, development, and localization strategies to further pioneer new markets from the ground up. For the shipbuilding and marine divisions, including Hanwha Ocean and Hanwha Engine, he encouraged them to leave a greater mark of success by pursuing the goal of becoming global leaders in the marine industry. Regarding struggling sectors such as petrochemicals and energy, Kim offered candid criticism. "We must critically examine whether we have become complacent with small successes and whether we have been insensitive to market changes," he said. "Rather than passively waiting for market shifts, we must quickly develop the capacity to lead the market through painful but necessary innovation." Kim also called for heightened attention to workplace safety. "Every member of the Hanwha family has the right to work in a safe and healthy environment, and we must always prioritize this," he stated. "Success built on someone's sacrifice is not true success." He further emphasized the importance of ethics and compliance culture, stating, "We must continue to uphold stricter ethical standards and compliance culture. We must not forget that each Hanwha employee's commitment to ethics and compliance is the foundation of the trust others place in our group." #Hanwha #KimSeungyeon #crisisresponse #100yearenterprise #corporateleadership #defenseindustry #innovation #workplacesafety #ethicsandcompliance #business
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- Korean Air and Asiana Airlines Merger Nears Completion, Cho Won-tae’s "Mega Carrier" Strategy in the Spotlight
- Cho Won-tae, Chairman of Hanjin Group, is on the verge of achieving his long-standing goal of merging Korean Air and Asiana Airlines.
With the final hurdle, the U.S. Department of Justice's (DOJ) review of the merger, expected to conclude soon, Korean Air is preparing to fully launch the merger process.
Since initiating the Asiana Airlines merger in 2020, Cho has faced numerous challenges, but the day when the company takes flight as a top 10 global "mega carrier" is now within reach.
According to sources in the aviation industry on the 9th, the DOJ’s review of the Korean Air and Asiana Airlines merger could be completed as early as this month.
In the U.S., the DOJ oversees merger reviews. If the DOJ does not file a lawsuit related to the merger, it is considered approved. Although the final outcome remains uncertain, there is optimism within the industry that the DOJ will approve the merger, as many competition concerns have been addressed through reviews by authorities in other countries. Korean Air has also put significant effort into persuading the U.S. on various fronts.
Many expect that Korean Air’s close relationship with Delta Air Lines will also positively influence the process. Since the merger aligns with the interests of U.S. airlines, there is little reason for the U.S. government to block it.
Korean Air has formed a joint venture with Delta, one of the U.S.’s leading airlines, representing the highest level of collaboration.
Delta Air Lines CEO Edward Bastian recently met with Incheon International Airport Corporation President Lee Hak-jae and commented that the "merger between Korean Air and Asiana Airlines is a great opportunity" and would "greatly benefit both Korean Air and Delta."
Korean Air is also a significant customer of Boeing, the U.S.-based aircraft manufacturer. In July, Chairman Cho signed a memorandum of understanding to purchase a total of 50 aircraft, including 20 Boeing 777-9s and 30 Boeing 787-10s (with an option for 10 more) at Farnborough Airport in Hampshire, UK.
Korean Air is also expected to soon receive final approval from the European Union’s (EU) competition authority, the European Commission (EC). The EC had initially given conditional approval for the merger, requiring Korean Air to address monopoly concerns.
To meet these conditions, Korean Air has transferred some of its European routes to T'way Air and is in the final stages of selling Asiana Airlines’ cargo business to Air Incheon.
In a June interview with Bloomberg, Cho expressed confidence, stating that he expected approval from the U.S. for the Asiana Airlines merger by the end of October.
The Asiana merger is Cho’s most significant long-term ambition.
Cho Won-tae, Chairman of Hanjin Group, received the 2024 Korea CEO of the Year Award at the 39th Annual Summer Convergence Conference held in Gyeongju on the 813th day. Cho is seen delivering his acceptance speech.
While pursuing the merger, Cho promised KDB Development Bank that if the merger failed to deliver strong post-merger performance, he and his family would step down from their leadership roles in the aviation business. To guarantee this promise, he put up his entire personal stake in Hanjin KAL, the holding company of Hanjin Group, as collateral with KDB. This demonstrates Cho’s strong determination to transform the company into a global mega carrier. In May last year, when reports surfaced that the DOJ was considering a lawsuit to block the merger, Cho personally met with the DOJ’s Deputy Attorney General to persuade the department. Once the merger is finalized, Cho is expected to focus on streamlining operations. Since Korean Air and Asiana Airlines operate different aircraft models, there will be a need to simplify their fleet to avoid higher maintenance and operational costs that come with a diverse range of aircraft. In addition, the company will need to reorganize overlapping routes and develop new routes tailored to each airline's strengths. It will also be crucial to blend the two companies' different organizational cultures and merge them into a unified team. While there is widespread optimism about the DOJ’s approval of the merger, there remains a slight chance that the department could raise objections. The DOJ has a precedent of challenging mergers, such as in 2013 when it filed a lawsuit against the merger of American Airlines and US Airways. However, the lawsuit was dropped after American Airlines agreed to give up 104 slots at Washington Reagan Airport and 34 slots at New York LaGuardia Airport, leading to the merger’s approval. An industry insider stated, “Given Korean Air’s strong efforts to persuade the U.S. authorities and its robust network with the U.S. aviation industry, it seems there won’t be significant issues in obtaining merger approval in the U.S.” #KoreanAir #AsianaAirlines #ChoWontae #merger #aviationindustry #globalaviation #DOJapproval #DeltaAirLines #Boeing #megacarrier #HanjinGroup #marketexpansion
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- Shinsegae Hwaseong International Theme Park Nears Unveiling: Will Universal, Disney, or Netflix Be Included?
- There is growing interest in which intellectual property (IP) will be featured in the amusement park of the Hwaseong International Theme Park, which Shinsegae Group is ambitiously preparing as the largest of its kind in Korea. Since Shinsegae Group and Hwaseong City have been working to attract foreign IPs, there is high anticipation for major IPs like Disneyland or Universal Studios. On the 8th, industry experts in the distribution sector suggested that the success or failure of the massive project might depend on which IP is chosen for the park within Hwaseong International Theme Park. The name value of the amusement park to be built in Hwaseong International Theme Park is considered a crucial issue for Shinsegae Group. A total of KRW 4.57 trillion (US$ 3.29 billion) will be invested in the development of the park, making it the largest project in Shinsegae Group’s history. This is also seen as the ambitious endeavor of Shinsegae Group Chairman Chung Yong-jin. With an investment of more than KRW 4 trillion, the challenge is to generate substantial long-term profits, and the amusement park, which will take up about 30% of the total area of approximately 4.2 million square meters (1.27 million pyeong), will inevitably play a critical role. The Hwaseong International Theme Park will feature an amusement park, Starfield, hotels, a premium outlet mall, and a golf course. Among these, the amusement park is expected to attract the most attention and the largest crowds. The park will span 1.26 million square meters (approximately 380,000 pyeong), making it 1.5 times the size of Everland in Yongin, Gyeonggi Province. If the IP chosen for the park fails to meet public expectations, the KRW 4.57 trillion investment could become a long-term burden for Shinsegae Group. This highlights the need to attract an IP that goes beyond simply being better than Everland. On October 10th, Hwaseong City will host a global IP attraction announcement ceremony for Hwaseong International Theme Park at Hwaseong City Hall. Attendees will include Lim Young-rok, CEO of Shinsegae Property and President of Shinsegae Group’s Strategic Planning Office, Hwaseong Mayor Jeong Myeong-geun, and Gyeonggi Province Governor Kim Dong-yeon. Recently, there has been rising speculation about the potential attraction of "Netflix House." The online video streaming service (OTT) Netflix is currently constructing Netflix Houses, aiming to open them in 2025 in Pennsylvania and Texas in the United States. According to Netflix, visitors will be able to walk across the glass bridge from "Squid Game" and experience the sets of popular series like "Money Heist," "Stranger Things," and "Bridgerton." The possibility of Netflix House being featured in the park is gaining attention due to Netflix’s recent activities in Korea. From September 6 to November 17, Netflix is operating a themed experience zone at Everland, featuring "All of Us Are Dead" and "Stranger Things." While Netflix has previously run pop-up stores for its new series, this is the first time it has launched such a large-scale outdoor experience zone. Some analysts cautiously suggest that Netflix may be using the Everland experience zone to evaluate the synergy between Netflix and an amusement park. The success of Netflix original series such as Kingdom, Squid Game, The Glory, and All of Us Are Dead worldwide further strengthens the possibility of Netflix House being featured in the park. Public expectations are highest for Disneyland and Universal Studios. Universal Studios has been a candidate for the site since 2007, when the development of Songsan Green City, where Hwaseong International Theme Park is located, was first decided. In fact, former president Park Geun-hye even used the attraction of Universal Studios as a campaign pledge during the 2012 presidential election. However, the plan fell through due to the global financial crisis and the impeachment of the president. Due to several previous failures, many expect that attracting Universal Studios will not be easy. Additionally, the fact that Universal Studios already operates in Japan, Singapore, and China is another reason why its attraction is considered unlikely. If Universal Studios were to open in Korea, it would inevitably lead to a dispersion of visitors from the existing Universal Studios locations. A key question is how much profitability Universal Studios expects from a Korean site. As for Disneyland, many experts believe the chances are low, as Disney has been fully owning its new parks in recent years. Disney would likely not want to share ownership with Shinsegae Group, and from Shinsegae's perspective, it would be a loss not to hold any stake in a project involving vast land and significant capital investment. The fact that Disneyland already exists in Tokyo, Hong Kong, and Shanghai is another obstacle. An industry insider commented, “There’s speculation within the industry that if a major IP had been secured, Chairman Chung Yong-jin would have personally attended the event. Although there’s still a chance that Chairman Chung might make a surprise appearance to announce the attraction of a major IP, his name is not on the official attendee list.” #Shinsegae #HwaseongInternationalThemePark #NetflixHouse #UniversalStudios #Disneyland #ChungYongjin #amusementpark #themepark #Everland #investment
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- Samsung Semiconductor Leadership Shakeup Looms, Lee Jung-bae, Choi Si-young, Park Yong-in Under Fire
- As concerns rise over the declining competitiveness of Samsung Electronics' semiconductor (DS) division, there are growing expectations that a major leadership shakeup will take place by the end of the year, with senior executives potentially held accountable. Attention is focused on the futures of key DS division leaders, including Lee Jung-bae, head of the Memory Business, Choi Si-young, head of the Foundry Business, and Park Yong-in, head of the System LSI Business. According to industry sources on October 8, Samsung Electronics Chairman Lee Jae-yong may introduce significant changes to the core executive team during this year’s year-end reshuffle, contrasting with the relatively stable executive appointments in November 2023. Last year, the company focused on stability, promoting only two executives and changing the responsibilities of three others. However, in May 2024, Samsung made a surprising "one-point" appointment, naming Vice Chairman Jeon Young-hyun as head of the DS division, signaling the beginning of changes, particularly in the semiconductor business. Currently, Samsung's DS division is struggling to maintain technological leadership in its three main areas: memory, foundry (contract manufacturing), and system LSI (semiconductor design). Even in memory semiconductors, a traditional strength for Samsung, the company has fallen behind in developing high-bandwidth memory (HBM), widening the technology gap with competitors. Samsung is also facing difficulties in improving the yield rate (the ratio of fully functional products) for DRAM chips produced using its 6th-generation 1c (11-12nm) fine process, lagging behind competitors. The Memory Business is estimated to have earned around KRW 6 trillion (US$ 4.33 billion) in operating profit in Q3 2024, which falls short of SK Hynix’s estimated KRW 6.7 trillion (US$ 4.84 billion) for the same period. The System LSI Business and the Foundry Business, responsible for contract manufacturing and semiconductor design, posted an operating loss of KRW 2.949 trillion (US$ 2.13 billion) in 2023 and are estimated to have incurred losses exceeding KRW 2 trillion in the first three quarters of 2024. The Foundry Business, in particular, has faced ongoing losses and failed to secure major customers, leading to suggestions that it may need to be spun off. The gap between Samsung’s foundry business and its main competitor, Taiwan’s TSMC, continues to widen. According to TrendForce, TSMC held a 62.3% share of the global foundry market in Q2 2024, with Samsung trailing far behind at 11.5%, a difference of 50.8 percentage points. Due to these challenges, Samsung's DS division is expected to record Q4 2024 operating profits of around KRW 6 trillion, down from KRW 6.5 trillion in Q2. Internally, there are calls for accountability, with criticisms emerging that the DS division heads should bear responsibility for the underperformance, especially following the leadership change in May. Vice Chairman Jeon Young-hyun issued a rare public apology following the release of Q3 earnings guidance, stating, "We failed to meet market expectations and caused concern regarding our fundamental technological competitiveness and the company’s future. Many people are speaking of Samsung's crisis. We, who are leading the business, take full responsibility." The heads of the DS division are currently in their third or fourth year of leadership. Lee Jung-bae and Choi Si-young have both led the Memory and Foundry businesses for nearly four years, while Park Yong-in is approaching his third year as head of the System LSI Business. Given that key executives at Samsung Electronics are generally reviewed every three years, a leadership shakeup in the DS division at the end of the year appears likely. With the semiconductor division in urgent need of reform, a significant reshuffling of senior executives is expected, in contrast to last year’s more stable appointments. A business insider commented, "Within Samsung, there is a growing consensus that those responsible for poor performance should be held accountable, while those who have performed well should be rewarded. While nothing is certain until the announcements are made, many expect a major restructuring of the leadership team." Chairman Lee Jae-yong is reportedly deeply concerned about the overall challenges facing the semiconductor business. Some critics argue that Samsung spread itself too thin by expanding into foundry and system LSI, diverting critical resources like manpower and funding, which ultimately weakened its once-dominant position in memory semiconductors. In response to these challenges, there have been calls from both industry and academia for Samsung to scale down or spin off its foundry and system LSI businesses to focus on memory semiconductors, where it historically held a competitive edge. Recently, Samsung reassigned some of its System LSI development staff to the Memory Business, signaling internal shifts. However, in an interview with Reuters on October 7, Lee Jae-yong dismissed the possibility of spinning off the foundry and system LSI businesses, stating, "We have no interest in spinning them off. We are eager to grow these businesses." This response indicates that Samsung plans to retain its foundry and system LSI businesses, aiming for a turnaround through significant reforms. #Samsung #semiconductors #DSdivision #LeeJaeYong #leadershipshakeup #foundry #memorysemiconductors #SystemLSI #TSMC #JeonYoungHyun #businessreform #SouthKorea #semiconductorindustry
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- Samsung's Jun Young-hyun: "Fell Short of Expectations, Will Restore Competitiveness"
- Jun Young-hyun, Vice Chairman and Head of the Device Solutions (DS) Division at Samsung Electronics, issued a public apology on October 8 to customers, investors, and employees, acknowledging concerns over the company’s recent underperformance. He stated, “We have fallen short of market expectations, raising worries about our core technological competitiveness and the future of the company. All responsibility lies with us who lead the business.” Jun also expressed his determination to overcome the current challenges, emphasizing that Samsung must restore its "fundamental technological competitiveness," which he described as the company’s "non-negotiable pride." He added, “Developing groundbreaking new technologies and achieving perfect quality competitiveness is the only path for Samsung’s resurgence.” In his message, Jun pledged to reignite the passion that once defined Samsung, stating, “We will reignite our unique drive to fearlessly pioneer the future and relentlessly pursue our goals until they are achieved.” He also highlighted the need for improving Samsung’s organizational culture, promising to review and address any issues in the way the company operates. “We will identify problems in the field and address them through intense debate and improvement.” On the same day, Samsung Electronics announced its preliminary financial results for Q3 2024, with sales of KRW 79 trillion (US$ 56.98 billion) and operating profit of KRW 9.1 trillion (US$ 6.57 billion). Compared to Q3 2023, sales increased by 17.21%, and operating profit surged by 274.49%. However, compared to the previous quarter, sales rose by 6.66%, while operating profit declined by 12.84%. While sales reached an all-time high, the operating profit fell short of the market consensus, which had projected KRW 10.44 trillion (US$ 7.53 billion). The lower-than-expected profit is attributed to a decline in semiconductor shipments, particularly in DRAM and NAND flash, due to sluggish demand for IT products like smartphones and PCs. Additionally, the sales of high-value products like high-bandwidth memory (HBM) remained limited compared to competitors. The DS division is estimated to have generated approximately KRW 5 trillion (US$ 3.61 billion) in operating profit in Q3, down KRW 1.5 trillion (US$ 1.08 billion) from the previous quarter. While the memory semiconductor business posted an estimated KRW 6 trillion (US$ 4.33 billion) in operating profit, the foundry and System LSI divisions likely incurred around KRW 1 trillion (US$ 722 million) in losses. Due to rising component costs, the Mobile Experience (MX) division’s operating profit is estimated to have been around KRW 2.5 trillion (US$ 1.8 billion). #SamsungElectronics #JunYoungHyun #apology #semiconductor #financialresults #DSdivision #operatingprofit #technologicalcompetitiveness #HBM #memorysemiconductor #MXdivision
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- Woori Financial Group Chairman Yim Jong-yong Faces National Assembly Audit Head-on
- Woori Financial Group Chairman Yim Jong-yong is expected to appear as a witness at the upcoming National Assembly audit. This will be the first time a head of a major financial group has participated in an audit by the National Policy Committee. Yim, a former high-ranking official who previously served as Chairman of the Financial Services Commission, is familiar with National Assembly audits. Given the growing scandal involving improper loans by relatives of the former chairman, Yim appears to have chosen to face the audit head-on. With political circles scrutinizing Woori Financial as much as the financial authorities, it is anticipated that Yim’s position will also be a subject of discussion during the audit. According to Woori Financial on the 7th, Yim is expected to attend the National Policy Committee’s Financial Services Commission audit as a witness on the 10th. As per National Assembly regulations, if Yim chooses not to attend, he must submit a letter explaining his absence by the 7th, three days before the audit. It is believed that Yim’s decision to attend is aimed at regaining public trust in Woori Financial by adopting a humble approach. This will be the first time the head of a major financial group has appeared as a witness at a National Policy Committee audit related to financial institutions. Apart from NH Nonghyup Financial Group chairmen, who were summoned by the Agriculture, Food, Rural Affairs, Oceans, and Fisheries Committee, none of the heads of Korea’s four major financial groups (KB, Shinhan, Hana, Woori) have appeared as witnesses in an audit. The difficult situation surrounding Woori Financial seems to have prompted Yim’s decision. Starting the same day, the Financial Supervisory Service (FSS) will begin its regular inspection of Woori Financial and Woori Bank. Although labeled a "regular" inspection, it has been moved forward by about a year due to a series of financial accidents at Woori, making the audit particularly significant. Yim is also facing pressure due to Woori Financial’s ongoing pursuit of acquiring Tongyang Life Insurance and ABL Life Insurance, which requires approval from financial authorities. In early September, FSS Governor Lee Bok-hyun criticized Woori Financial, stating that the company should have consulted the authorities regarding the risks related to the life insurance acquisitions but failed to communicate. He added that the FSS would closely examine Woori’s asset expansion during the audit. If the FSS identifies deficiencies in internal controls and Woori receives a rating of three or lower in its management evaluation, it may be restricted from investing in subsidiaries, which could jeopardize its life insurance acquisitions. The importance of internal control in management evaluations has significantly increased, with its weighting rising from 5.3% to 15% since December last year, following revisions to banking supervision regulations by the Financial Services Commission. Industry insiders expect lawmakers on the National Policy Committee to press Yim on his future, especially given that Woori Bank has disclosed three financial accidents this year, including the improper loan scandal involving relatives of former Chairman Sohn Tae-seung. The increasing pressure could lead to discussions about Yim’s position. After the improper loan scandal came to light, Yim adopted a low-profile approach, stating that he would humbly follow any decisions or actions resulting from investigations. As a former senior government official, Yim is no stranger to National Assembly audits, having appeared at many during his tenure as Chairman of the Financial Services Commission, Director of the Office for Government Policy Coordination, and 1st Vice Minister of Strategy and Finance. This is also not Yim’s first appearance as a financial group chairman. He previously appeared at National Assembly audits in 2013 and 2014 during his time as Chairman of NH Nonghyup Financial Group. #WooriFinancialGroup #YimJongyong #NationalAssemblyAudit #financialcontroversy #improperloans #financialregulation #internalcontrols #Koreanfinancialsector #leadershipscrutiny #NationalPolicyCommittee
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- KT's Kim Young-shub Summoned to National Assembly Audit, Heightened Tensions
- KT CEO Kim Young-shub will appear before the National Assembly’s audit to address the ongoing controversies surrounding KT, including the change in its largest shareholder and allegations of distributing malware disguised as a P2P (peer-to-peer) "grid program." It is expected that Kim will choose to confront these issues head-on to prevent further escalation of the various suspicions surrounding the company. According to the National Assembly on the 7th, Kim is the only CEO among the three major telecom companies who will be summoned as a witness for the upcoming audit by the National Assembly’s Science, ICT, Broadcasting, and Communications Committee (SICTBC) on the 8th. A total of seven SICTBC lawmakers, including Kim Hyun of the Democratic Party, requested Kim’s appearance to question him about the change in KT's largest shareholder and the public interest review process associated with it. It has been four years since a telecom company CEO was summoned as a witness in an SICTBC audit. This will mark Kim’s first National Assembly appearance in two years, having last been summoned as CEO of LG CNS in 2022, where he apologized to the National Assembly’s Health and Welfare Committee for the failure in establishing the ‘Next-Generation Social Security Information System.’ A source in the telecommunications industry noted, “While SK Telecom and LG Uplus have senior executives at the vice president level summoned as witnesses, KT is the only company where the CEO has been called, creating significant tension within the company.” Recently, KT has seen significant changes in its corporate governance as Hyundai Motor Group has emerged as the largest shareholder. Due to the National Pension Service reducing its stake in KT, as of June this year, Hyundai Motor and Hyundai Mobis have together become the largest shareholders, holding 4.86% and 3.21% stakes, respectively, for a total of 8.07%. Hyundai Motor Group has also passed the public interest review by the Ministry of Science and ICT. However, some have expressed concerns that this shift might compromise the public nature of the telecommunications industry. In a joint statement, the KT New Union and the People's Solidarity for Participatory Democracy voiced their worries: “We are deeply concerned that the public interest review by the Ministry of Science and ICT on the change in KT’s largest shareholder may have been rushed. Moreover, there are serious doubts whether the public interest has been adequately discussed in this process.” They added, “There are also concerns that KT’s involvement in non-telecom industries, under the guise of telecom and automotive industry convergence, may lead to an unfair burden being passed on to consumers through high telecommunications fees.” Furthermore, questions have been raised about whether the Ministry of Science and ICT’s public interest review process was conducted appropriately. Democratic Party lawmakers on the SICTBC are expected to question Kim in detail about the potential impact of the shareholder change on the telecommunications industry. Kim is also scheduled to appear as a witness for the Industry, Trade, and Energy Committee’s audit on the 14th. The focus of this audit will be the sixth project for Korea Electric Power Corporation’s (KEPCO) Advanced Metering Infrastructure (AMI). In May of this year, KT was selected as the final contractor for the sixth AMI project, securing 1.1 million IoT (Internet of Things) lines. KEPCO’s AMI is a system that connects communication networks to electricity meters, enabling the collection of data on electricity usage and time-based billing information. The system has been gradually implemented since 2010. However, Kang Seung-kyu, a lawmaker from the People’s Power Party on the Industry, Trade, and Energy Committee, raised concerns about whether KT has the capacity and reliability to handle such a large-scale public project. Additionally, KT has been under police investigation for the past four years, facing accusations that it distributed malware to users’ personal computers to block P2P grid programs, causing network disruptions. KT has defended its actions, stating that the measures were legally permissible actions that Internet Service Providers (ISPs) can take to ensure smooth network services. However, Kim has yet to make any direct remarks regarding these allegations. Apart from these issues, Kim is expected to also address topics such as lowering household telecom fees and the potential repeal of the "Handset Distribution Act" (which aims to improve the distribution structure of mobile communication devices). There may also be questions regarding allegations that telecom companies have been involved in price-fixing and reducing competition since the enactment of this law. However, it seems likely that discussions on key telecom issues will take time to develop at the National Assembly. Kim Aram, an analyst at Shinhan Investment Corp., commented, “While both the ruling and opposition parties agree on the repeal of the Handset Distribution Act, there is a consensus that immediately repealing the law would lead to significant market disruption. Therefore, it’s unlikely that there will be any sudden changes to existing telecom policies following this audit.” #KT #KimYoungshub #NationalAssemblyAudit #shareholderchange #telecommunications #malware #HyundaiMotorGroup #KEPCO #publicinterest #HandsetDistributionAct
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- Samsung Electronics Chairman Lee Jae-yong Visits Philippine Plant, Emphasizes Dominating the Automotive Market
- Samsung Electronics Chairman Lee Jae-yong emphasized the importance of "seizing opportunities" while inspecting the multilayer ceramic capacitor (MLCC) business, which is emerging as a key component in the automotive sector. According to Samsung Electronics on the 7th, Chairman Lee visited the Samsung Electro-Mechanics manufacturing plant in Calamba, Philippines, on the 6th. After inspecting the MLCC production facilities, he discussed future business strategies with the management team of Samsung Electro-Mechanics, focusing on the expansion of markets such as artificial intelligence (AI), robotics, and electric vehicles (EVs). Chairman Lee also held a meeting with employees working at the Calamba manufacturing plant, where he expressed his gratitude for their hard work and listened to their concerns. Recently, Lee has been frequently visiting Samsung Electro-Mechanics' production sites in places like Busan, Tianjin in China, and Suwon, checking on business operations and stressing the importance of leading the high-value MLCC market. The Philippine production facility, established in 1997, has been producing IT-related MLCCs and inductors since 2000. However, with the rapid growth of the EV and autonomous vehicle markets, the plant is now considering expanding its production to include high-performance automotive MLCCs. Samsung aims to develop Busan as a specialized region for research, development, and production of key materials for MLCCs, while positioning its plants in China and the Philippines as global hubs for the production of IT and automotive MLCCs. MLCCs are essential components that store electricity and then supply it in stable amounts, ensuring smooth operation of semiconductors. These capacitors are used in smartphones, EVs, and other devices, earning them the nickname "the rice of the electronics industry." The MLCC market is projected to grow from KRW 4 trillion in 2023 to KRW 9.5 trillion by 2028, more than doubling in size. In response to future demand, Samsung Electro-Mechanics is continuously expanding its investment in the MLCC sector. Notably, while around 1,000 IT MLCCs are used in a smartphone, an electric vehicle requires between 3,000 to 20,000 automotive MLCCs, with their price being more than three times higher. As a result, Samsung Electro-Mechanics is concentrating its efforts on the automotive MLCC business, particularly for EVs. Chairman Lee has identified the automotive electronics sector as a future growth engine for Samsung. In 2016, Samsung acquired Harman, the leading company in digital cockpit (digital dashboard) and car audio systems, and Harman has recently begun to see significant growth. In 2023, Chairman Lee met with Elon Musk, CEO of Tesla, to discuss comprehensive cooperation in areas such as automotive semiconductors. #SamsungElectronics #LeeJaeyong #MLCC #EV #automotivecomponents #Philippines #futuregrowth #businessstrategy #Harman #Tesla
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- Chung Mong-ik at KCC Glass Indonesia Plant Furnace Ignition Ceremony: "A New Milestone in Technology"
- KCC Glass is set to launch the first overseas glass production plant among South Korean companies. On October 4, KCC Glass announced the completion of its Batang plant in Central Java, Indonesia, with a furnace ignition ceremony held the previous day. The event was attended by KCC Glass Chairman Chung Mong-ik, Indonesia’s Investment Minister Bahlil Lahadalia, and around 200 officials from both KCC Glass and the Indonesian government. The Batang plant, the Indonesian subsidiary of KCC Glass, covers an area of 460,000 square meters (approximately 140,000 pyeong) and has the capacity to produce 440,000 tons of float glass annually. The plant can produce up to 1,200 tons of float glass per day, enough to cover the exterior of a 123-story skyscraper like Lotte World Tower. KCC Glass has invested KRW 300 billion (approximately USD 217 million) into the Batang plant since its groundbreaking ceremony in May 2021, making it the first overseas glass production facility by a South Korean glass manufacturer. After the furnace heating period, KCC Glass plans to begin full operations by the end of October 2024. With the completion of the Batang plant, KCC Glass now has a combined annual production capacity of 1.74 million tons of float glass, including output from its domestic Yeoju plant. KCC Glass aims to use the float glass produced at the Batang plant to tap into the rapidly growing Indonesian market and expand into ASEAN, Oceania, and the Middle East. To achieve this, the company plans to invest an additional KRW 700 billion (approximately USD 506 million) to develop the Batang plant into a "comprehensive glass cluster." Chairman Chung stated, "KCC Glass's innovative technology has achieved another milestone. The Batang plant will elevate Indonesia as a key player in the global glass industry." #KCCGlass #BatangPlant #Indonesia #glassproduction #floatglass #ASEAN #businessinvestment #ChungMongik #globalexpansion #glassindustry
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- LS Group Expands Battery and Electric Vehicle Business Portfolio as New Growth Engines
- LS Group is rapidly expanding its battery and electric vehicle (EV) business across multiple sectors. In response to the growing demand for electrical and power energy in the era of electric vehicles, robotics, and artificial intelligence (AI), LS Group is strengthening its existing core industries while accelerating the development of a new business portfolio in batteries, electric vehicles, and semiconductors. In March 2024, LS Group participated in the "InterBattery 2024" exhibition held at COEX in Seoul, showcasing its future energy technologies, including battery materials, industrial energy storage systems (ESS), EV components, and charging systems. Gu Ja-eun, Chairman of LS Group, who attended the exhibition for the second consecutive year, emphasized the importance of staying ahead in the electric vehicle ecosystem, noting that the industry is evolving with increasingly advanced technologies. As of October 4, LS Group's subsidiaries—including LS Cable & System, LS Electric, LSMnM, and LS E-Link—are leveraging their extensive experience in power infrastructure and energy solutions to explore new opportunities in battery materials, EV components, and charging solutions. LS Cable & System broke ground on two new factories in Mexico on August 2, including a plant for high-capacity power distribution systems (bus ducts) and EV battery components. These plants will serve as export hubs for the North American market, supplying EVs, batteries, semiconductor factories, and data centers. LS Materials, a subsidiary of LS Cable & System, leads the global market in large ultra-capacitor production, holding the top spot in both market share and technological competitiveness. In February, LS Eco Energy, another LS subsidiary, formed a joint venture with Germany’s Vacuumschmelze, Europe’s top permanent magnet producer. The joint venture will produce 1,000 tons of neodymium permanent magnets annually by 2027, targeting the EV, wind turbine, and electronics markets. With the expected surge in neodymium demand due to the growth of the EV market, LS Eco Energy is well-positioned to capitalize on the market, which is expected to grow from the current 150,000 tons per year to 400,000 tons by 2030. LS Electric is also deepening its involvement in the EV market. In February, it signed a partnership with LG Energy Solution to localize battery manufacturing automation solutions, including control systems and components for battery pack production. LS e-Mobility Solutions, LS Electric’s EV component subsidiary, completed the construction of an EV parts plant in Durango, Mexico, earlier this year. The plant has a production capacity of 5 million EV relays and 4 million battery disconnect units (BDUs) annually. LS e-Mobility Solutions is targeting North American automakers, including Ford and Stellantis, with plans to expand production lines and achieve KRW 700 billion in North American revenue by 2030. LS MnM, a non-ferrous metal materials company, made its first foray into the EV battery materials business in March 2022 by completing a nickel sulfate plant in partnership with Toricom. Nickel sulfate is a key material for next-generation EV batteries, and by 2029, LS MnM aims to produce 62,000 tons of nickel sulfate annually, enough for 1.25 million EVs. LS MnM is also building battery material production facilities in Korea’s Saemangeum and Onsan industrial complexes, establishing a value chain from nickel sulfate to precursors and cathode materials in partnership with LS-L&F Battery Solutions. Meanwhile, LS Group’s holding company, LS, is focusing on the EV charging business. In 2022, LS E-Link was established in partnership with E1 to develop and operate EV charging infrastructure. LS E-Link specializes in large-scale charging solutions for B2B clients, offering advanced technologies such as ceiling-mounted chargers and automated charging control systems. In July, LS E-Link signed an MOU with the Seoul city government to expand EV charging infrastructure. It plans to introduce smart chargers that can sequentially charge multiple vehicles in restricted spaces, such as bus depots. LS E-Link is preparing for an IPO by the end of 2024 to raise funds for further investments in technological advancements and business expansion, with plans to strengthen its partnerships and performance in the logistics and transportation sectors. #LSGroup #EVbusiness #batteries #LSElectric #LSEcoEnergy #LSMnM #neodymiummagnets #EVIinfrastructure #InterBattery2024 #IPO #sustainableenergy #futuretechnology #electricvehicles
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- Bank of Korea Faces Audit, Rhee Chang-yong Balances Economic Stimulus and Household Debt
- With just two weeks left until the Bank of Korea's (BOK) national audit, the primary issue is expected to be the debate over interest rate cuts. Central banks in major economies are beginning to shift from tightening monetary policy to lowering interest rates, driven by concerns over economic recession. Rhee Chang-yong, the Governor of the Bank of Korea, is likely to face pressure from lawmakers during the audit to implement rapid interest rate cuts to stimulate the economy. However, Rhee is expected to emphasize the need to adjust the pace of monetary policy changes, citing concerns over rising housing prices and increasing household debt. According to the BOK, a Monetary Policy Committee meeting will be held on October 11, just days before the National Assembly’s audit by the Planning and Finance Committee on October 14, where the possibility of a rate cut will be discussed. In the financial sector, opinions are split on whether the BOK will cut or maintain the current interest rate during the upcoming meeting, with both outcomes considered equally likely. Given the outcome of the Monetary Policy Committee meeting, the interest rate cut issue and future policy direction are expected to be hot topics during the audit. Lawmakers are likely to pressure Governor Rhee to swiftly shift domestic monetary policy, pointing to the fact that central banks in major economies, such as the U.S. and China, have already started easing their monetary stances to stimulate their economies. In September, the U.S. Federal Reserve (Fed) lowered its policy rate by 0.50 percentage points for the first time in 4.5 years, signaling a shift toward monetary easing. Similarly, China’s central bank, the People’s Bank of China, cut the reserve requirement ratio by 0.5 percentage points, injecting liquidity into the market. Both the Fed and the People’s Bank of China have hinted at further significant rate cuts by the end of the year to combat recession and sluggish consumer spending. With clear signs of a domestic economic slowdown, lawmakers are expected to strongly advocate for interest rate cuts to boost the economy and stimulate consumption. However, Governor Rhee is anticipated to advocate for a more measured approach to monetary policy changes. Rhee and the Monetary Policy Committee are concerned that lowering interest rates could lead to higher housing prices and an increase in household debt. Furthermore, Rhee has prioritized addressing household debt since taking office as Governor of the Bank of Korea. Unless there are clear signs that housing prices and household debt growth are slowing, he is likely to argue that it is too early to shift monetary policy. In a September 24 interview with the *Financial Times*, Rhee pointed out that household debt, including mortgage loans, stands at 92% of South Korea’s GDP, the highest among developed countries, and poses a burden on the country's economic growth. In its September monetary policy report, the BOK also stated, “From a financial stability perspective, rising housing prices in the Seoul metropolitan area and increasing household debt, along with lingering concerns in the foreign exchange market, require close monitoring of the government's real estate measures and growing volatility in international financial markets.” The report added, “Future monetary policy will maintain its tightening stance while carefully examining trade-offs between variables such as inflation, growth, and financial stability when considering the timing of an interest rate cut.” Lawmakers may also raise questions about Rhee’s focus on structural reform issues beyond monetary policy. Rhee has recently stirred debate by suggesting that structural reforms, rather than just monetary policy, are needed to address rising housing prices and household debt. He has touched on controversial topics such as reforming the education system, expanding agricultural imports, and applying minimum wage laws to foreign workers. On September 30, during a meeting with Finance Minister Choi Sang-mok at the Sejong Government Complex, Rhee focused not on monetary policy but on discussions related to structural reforms. This marked the first time a Bank of Korea Governor has officially visited the Ministry of Economy and Finance. During the meeting, Rhee stressed, “It is no longer sustainable to keep patching up an outdated economic structure while trying to lead the economy. Structural reforms are now essential.” This reflects Rhee’s ambition to transform the Bank of Korea into the nation's premier think tank. In his inaugural speech, Rhee said, “Let’s strive to further solidify the Bank of Korea's status as not only the main authority on monetary policy but also as the premier think tank that understands the domestic economy better than anyone else.” #BankofKorea #RheeChangyong #interestRateCuts #economicpolicy #householdDebt #housingPrices #nationalAudit #KoreanEconomy #MonetaryPolicy #structuralReforms
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- HMM Stands to Benefit from 'Turbulent Middle East', Giving Kim Kyung-bae Time to Strengthen Competitiveness
- Kim Kyung-bae, the CEO of HMM, may have gained some time to strengthen the company’s business competitiveness, thanks to favorable external factors. With the ongoing geopolitical tensions in the Middle East, the likelihood of freight rates dropping has decreased, suggesting that HMM can maintain its high profit levels for the time being. According to overseas media reports and the shipping industry, the escalating conflicts in the Middle East have increased the threats to merchant ships operating in the region. The recent surge in tensions was triggered by Israel's assassination of Hassan Nasrallah, the leader of Hezbollah, a pro-Iranian militant group. On September 27, 2024, Israeli forces carried out an airstrike in southern Beirut, Lebanon, targeting and eliminating Nasrallah and other Hezbollah leaders. In retaliation, Iran’s Revolutionary Guards launched ballistic missiles targeting Israel's air force and radar bases. Israel, in turn, signaled its intent for further retaliation. Amid these tensions, merchant ships have once again become targets of attacks. On October 1, pro-Iranian Houthi rebels attacked two merchant ships passing through the Red Sea, marking the first attack since early September. This situation is likely to reduce downward pressure on freight rates. Container shipping rates had surged during the COVID-19 pandemic due to increased cargo volumes but began to decline last year as shipping companies expanded their fleets, leading to an oversupply of vessels. However, military actions by the Houthis, including the blockade of the Suez Canal, caused rates to soar again, bringing prosperity back to shipping companies. The Shanghai Containerized Freight Index (SCFI), a key container freight rate index, reached a high of 5,109.60 in 2022 during the peak of the pandemic, before plunging to 906.55 in March 2023. However, rising tensions in the Middle East pushed the index back up to 3,733.80 earlier this year. By the end of September, the index had fallen to 2,135.08, but it still remains historically high. Given the ongoing geopolitical risks in the Middle East, there is a strong possibility that freight rates will remain elevated. While a full-scale war between Iran and Israel seems unlikely, the current situation is also unlikely to be resolved quickly. The ongoing strikes at U.S. East Coast ports could also help maintain high freight rates. Currently, these ports handle about 40% of the United States' shipping volume. Any disruption in the supply chain is likely to put upward pressure on shipping rates. This gives HMM a window to strengthen its business competitiveness. HMM has faced criticism for lagging behind while global competitors expanded their fleets and diversified their businesses. Last year, the company was focused on its sale, and this year it prioritized establishing a new shipping alliance. After forming the new "Premier Alliance" in September, CEO Kim Kyung-bae quickly outlined a concrete mid- to long-term strategy, including an investment plan exceeding KRW 23 trillion (US$ 16.6 billion) to bolster HMM's competitiveness. In particular, HMM is accelerating efforts to diversify its business beyond its core container shipping operations, expanding into bulk shipping (including tankers and dry bulk). HMM recently signed a long-term crude oil transport contract with S-Oil. The five-year contract, starting in 2025, is valued at approximately KRW 180 billion (US$ 129.8 million). While long-term contracts may limit the benefits for shipping companies when rates rise, they provide a safeguard during downturns. The bulk shipping business is typically driven by long-term contracts. HMM is also expanding its fleet to increase its share of the bulk shipping market. The company recently placed an order with HD Hyundai Mipo Dockyard for four medium-range (MR) product tankers. A shipping industry official stated, "While the container shipping market is structurally entering a downward trend, geopolitical risks and uncertainties like the U.S. port strikes are allowing the boom to last a little longer." #KimKyungbae #HMM #geopoliticaltensions #MiddleEastconflict #shippingindustry #freightrates #PremierAlliance #containershipping #bulkshipping #USportstrikes #longtermcontracts #SuezCanal #Houthirebels #investmentstrategy #HDHyundaiMipo
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- Hana Bank Reorganizes FX Operations, Lee Seung-lyul Aims to Cement Leadership as FX Powerhouse
- Lee Seung-lyul, the CEO & president of Hana Bank, has once again focused on strengthening the bank's external competitiveness by completing a reorganization of its dealing room. This move is seen as an effort to solidify Hana Bank's position as a leading bank in foreign exchange (FX) amidst intensifying competition following the opening of the foreign exchange market. On September 2, Hana Bank carried out an organizational restructuring within its Treasury and Market Group, where the dealing room is located. The key aspect of this reorganization was the enhancement of the FX platform responsible for 24-hour trading. Hana Bank transferred its foreign exchange operation staff, previously part of the "FX Derivatives Operation Department," to the newly formed "FX Platform Business Department," concentrating its foreign exchange operation capabilities in the FX platform unit. Additionally, the former "Treasury Market Sales Department" was renamed to "FX Derivatives Sales Department," incorporating FX platform sales functions. A Hana Bank representative stated, "We will maximize customer value by building a platform-centric organizational structure optimized for 24-hour trading," adding that the bank has built a system optimized for digital FX trading, which has seen a surge in volume following the implementation of foreign exchange market reforms. Hana Bank has long been recognized for its strength in the foreign exchange business, stemming from its merger with Korea Exchange Bank. It holds the largest foreign exchange asset portfolio among Korea's four major banks (KB, Shinhan, Hana, Woori) and leads in foreign exchange profitability. According to the Financial Supervisory Service, Hana Bank's average foreign currency deposit balance in the first half of 2024 was KRW 39.7059 trillion (US$ 28.6 billion), with foreign exchange-related revenue totaling KRW 147.4 billion (US$ 106.3 million). Both figures are the highest among the four major banks, with a gap of approximately KRW 8 trillion (US$ 5.8 billion) compared to the second-place Woori Bank (KRW 31.7501 trillion / US$ 22.9 billion in foreign currency deposits). Since the merger with Korea Exchange Bank, Hana Bank has maintained its position as the leading foreign exchange bank. Despite this, the bank's continued efforts to enhance its competitiveness indicate Lee Seung-lyul's determination to remain the top player in an increasingly competitive landscape. Lee expressed his commitment, stating, "Through this reorganization, we will further solidify our position as the dominant player in Korea’s foreign exchange market, especially in the new global competitive landscape following the implementation of foreign exchange market reforms." In July 2024, the foreign exchange authorities opened the market to foreign financial institutions based overseas and extended trading hours from 3:30 p.m. to 2:00 a.m., with plans to open the market 24 hours in the future. In response, Hana Bank aims to strengthen its competitiveness by building 24-hour trading capabilities centered on its FX platform. Since launching the "Hana FX Trading System" in May 2020, Hana Bank has been the first financial institution in Korea to offer 24-hour FX trading services starting in 2022. The platform allows customers to monitor real-time exchange rates and conduct foreign exchange transactions non-face-to-face, without visiting branches or making phone calls. Before the July foreign exchange market reforms, Lee Seung-lyul also opened "Hana Infinity Seoul," the largest dealing room in Korea, focusing on enhancing 24-hour trading capabilities. At the time, Hana Bank emphasized that the facility was designed to optimize the new trading environment. Strengthening FX competitiveness aligns with Lee’s growth strategy of creating an "absolute gap" by further enhancing the bank’s core strengths. In his inaugural speech in January 2023, Lee said, "We will focus on our strengths in asset management, corporate finance, and foreign exchange to create a decisive gap with competitors, while also strengthening people, organization, and systems." Lee's extensive background includes serving as head of strategic planning and business planning at Korea Exchange Bank. After the bank's acquisition by Hana Financial Group, he served as CFO of Hana Financial Group, vice president of Hana Bank, and CEO of Hana Life before becoming president of Hana Bank in January 2023. #LeeSeunglyul #HanaBank #FXPlatform #foreignexchange #24hourtrading #competitiveadvantage #HanaInfinitySeoul #KoreaExchangeBank #financialrestructuring #bankleadership
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- Samsung Electronics' Lee Jae-yong Attends Second Trial on Samsung C&T and Cheil Industries Merger
- Samsung Electronics Chairman Lee Jae-yong attended the second trial related to charges of "unfair merger and accounting fraud" at the Seoul Central District Court in Seocho-gu, Seoul, on the 30th. Chairman Lee made his first appearance in eight months after being acquitted in the first trial on February 5. The 13th Criminal Division of the Seoul High Court (Presiding Judge Baek Kang-jin) commenced the first trial at 2 PM, addressing the charges against current and former Samsung executives, including Chairman Lee, regarding unfair merger and accounting fraud. Lee was indicted in September 2020 on charges of unjustly lowering the value of Samsung C&T to intervene in the merger with Cheil Industries. After 3 years and 5 months of trial proceedings, the court in the first trial acquitted all defendants, including Lee. The first trial's court ruled, "Based solely on the evidence presented by the prosecution, it cannot be concluded that the merger between Samsung C&T and Cheil Industries was intended to strengthen Lee's control over management and facilitate the group's succession." The prosecution appealed the ruling. During the appellate process, it is known that the prosecution submitted over 2,100 additional pieces of evidence. #Samsung #LeeJaeYong #merger #trial #accountingfraud #CheilIndustries #SamsungC&T #prosecution #acquittal #courtcase
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- Celltrion's Value-Up Index Momentum Falters: What Will Become of Seo Jung-jin's Push for a Unified Corporation
- Despite Celltrion being included in the Value-Up (corporate value enhancement) index, the company has not seen a significant increase in its corporate value, and the momentum toward a "unified Celltrion" has not been revived. Seo Jung-jin, Chairman of Celltrion Group, has set the goal of creating a unified Celltrion by merging Celltrion and Celltrion Pharmaceutical. For this to happen, a rebound in Celltrion's corporate value is essential. According to the biotech industry on the 30th, attention is focused on whether Chairman Seo Jeong-jin will introduce additional measures to boost Celltrion's stock price as part of his efforts to push for the integration of the three Celltrion companies. Observers predict that without more aggressive shareholder return plans from Celltrion, Chairman Seo’s blueprint could fade. As of the 30th, Celltrion's stock price has been struggling to break out of its sluggish state. On the 30th, Celltrion’s closing stock price stood at KRW 195,400. Given that the stock closed at KRW 205,500 on the 24th, when it was included in the Korea Value-Up Index, the effect of being added to the index has been negligible in terms of enhancing corporate value. Of course, it is true that most companies included in the Value-Up list, selected by the Korea Exchange, have not seen a significant rise in their value, leading to widespread disappointment. However, it is undeniable that the inclusion in the index was a positive event that could have boosted the stock price, making its inability to maintain momentum disappointing for shareholders. Since returning to the management of Celltrion Group, Chairman Seo has announced his goal of launching a unified corporation by merging the three companies—Celltrion, Celltrion Healthcare, and Celltrion Pharmaceutical. To achieve this, Celltrion initially pursued a merger with Celltrion Healthcare and then attempted to merge with Celltrion Pharmaceutical. However, this plan fell through in August. Many of Celltrion's small shareholders argued that the merger ratio was unfair because Celltrion Pharmaceutical’s corporate value was overestimated. To resolve the backlash from small shareholders, either Celltrion Pharmaceutical needs to deliver performance in line with its corporate value, or Celltrion’s corporate value must increase. Given that Celltrion Pharmaceutical primarily handles biosimilar sales in Korea, it is difficult to significantly improve its performance in the short term. This suggests that raising Celltrion's corporate value might be an easier option for Chairman Seo. In fact, Celltrion’s board of directors has approved stock buybacks three times this year alone as part of efforts to enhance shareholder value. Celltrion has been actively implementing measures to boost its stock price, including three rounds of stock buybacks this year. In March, April, and June of this year, Celltrion approved additional stock buybacks worth KRW 75 billion each. In the first half of the year alone, the company purchased 1,272,676 shares, amounting to approximately KRW 225 billion. Looking back, Celltrion has bought back about KRW 1.25 trillion worth of its own stock up until last year. After the launch of unified Celltrion in January this year, the company also proceeded with stock cancellation worth a total of KRW 700 billion. These efforts have not been completely meaningless. However, Celltrion shareholders argue that the company's corporate value has not risen to the level where they feel the merger ratio with Celltrion Pharmaceutical is fair. The creation of a unified Celltrion is also closely tied to the initial public offering (IPO) of Celltrion Holdings, the holding company of Celltrion Group. When Chairman Seo pushed for the merger of Celltrion and Celltrion Healthcare in August 2023, he also expressed his intention to complete the merger with Celltrion Pharmaceutical and consider listing Celltrion Holdings. Since then, Seo has mentioned in various forums his concrete plan to list Celltrion Holdings on NASDAQ and use the funds to create a global healthcare fund worth KRW 100 trillion. At the Future Leaders Camp in Gangneung, Gangwon Province, in January this year, Chairman Seo said, "I have instructed the relevant department to proceed with the [NASDAQ] listing of Celltrion Holdings by the end of this year or early next year at the latest." Oh Yoon-seok, head of the Celltrion Minority Shareholders' Alliance, said in a phone interview with Business Post, "Chairman Seo Jeong-jin has a very proactive stance on shareholder returns and communication with shareholders," adding, "For these reasons, there are many expectations that corporate value will gradually improve." #Celltrion #SeoJeongjin #corporatevalue #merger #shareholderreturns #biosimilars #stockbuyback #valueupindex #CelltrionHoldings #NASDAQ
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- CJ Group Faces 'Value-Up' Pressure, Struggles to Balance 'Succession' and 'Shareholder Value'
- Pressure is mounting on CJ Group to improve its corporate value, known as "value-up." None of CJ Group's affiliates were included in the 100 companies comprising the "Value-Up Index" created by the Korea Exchange. This is noteworthy given the growing emphasis on shareholder value, something CJ Group cannot afford to ignore. With CJ Group currently undergoing a third-generation ownership and management succession, finding a balance between improving shareholder value and ensuring a smooth transition of control will become even more crucial. According to various reports from the securities industry, companies like CJ that were excluded from the Value-Up Index will continue to face pressure to enhance shareholder value. CJ Corp, the group's holding company, was initially expected to be included in the Value-Up Index due to its low price-to-book ratio (PBR) and improving profits of key affiliates, drawing interest in the stock market. However, it ultimately did not make the cut. None of CJ Group's other affiliates were included either, while competitors in the food business, such as Orion, Dongseo, Ottogi, Samyang Foods, and Lotte Chilsung Beverage, were all listed in the Value-Up Index. While there is some debate about the appropriateness of the selection process, CJ Group’s exclusion from the Value-Up Index may signal that its efforts to improve shareholder returns have fallen short of expectations. There is growing pressure for CJ Group to develop concrete plans to improve its reputation as a company committed to enhancing shareholder value. In this context, CJ Group is expected to proceed more cautiously with its third-generation ownership succession. Recently, CJ Group’s succession process has been described as moving faster than before, with third-generation family members playing increasingly visible roles. CJ Chairman Lee Jay-hyun’s daughter, Lee Kyung-hoo, who is in charge of brand strategy at CJ ENM, was recently seen attending a fashion show. Her husband, Jung Jong-hwan, who oversees content and global business at CJ ENM, accompanied Chairman Lee on a business trip to Saudi Arabia. Lee Jay-hyun’s son, Lee Sun-ho, who leads the food growth promotion division at CJ CheilJedang, has kept a lower profile but contributed to the planning of a Korean chef training project during the 2023 Paris Olympics. One potential area of conflict between CJ Group and its minority shareholders is the possible listing of CJ Olive Young. Both Lee Kyung-hoo and Lee Sun-ho hold significant stakes in CJ Olive Young (4.21% and 11.04%, respectively), and the company’s shares are expected to play a key role in financing their inheritance of CJ Corp, where Chairman Lee holds a 42.07% stake (12.27 million shares). However, the most likely scenario of CJ Olive Young’s initial public offering (IPO) could lead to conflicts with minority shareholders, as the listing of subsidiaries often results in a discount to the holding company’s value. For example, when LG Energy Solution was spun off from LG Chem and listed, LG Chem's stock price dropped, leading to significant backlash from its minority shareholders. While CJ Group could still proceed with the IPO of unlisted affiliates like CJ Olive Young, resistance from minority shareholders is likely to be stronger than before. A recent example is HD Hyundai, which faced backlash when it listed its shipbuilding subsidiary HD Hyundai Heavy Industries in 2021. The group ultimately canceled the planned IPO of another subsidiary, HD Hyundai Samho, in 2023. In response to this increasing pressure, some companies, like SK Innovation, have promised to grant existing shareholders rights to purchase shares in their subsidiaries when they go public, as part of their efforts to mitigate conflicts with minority shareholders. Given these developments, CJ Group might consider merging CJ Corp with CJ Olive Young to avoid a direct clash with shareholder value, instead of opting for an IPO. Under this scenario, the merged company’s shares would be distributed based on the relative value of each company. The third-generation heirs would gain control of the merged entity, while also receiving dividends. Though this approach could still lead to conflicts over valuation, in the long term, it might align the interests of the owners and minority shareholders, particularly in terms of dividends and shareholder returns. A CJ Group representative stated, "We are not currently prioritizing a merger between CJ and CJ Olive Young," adding, "Given CJ Olive Young’s strong cash flow, we are also not preparing for an IPO at this time." The representative further mentioned, "We are internally reviewing plans related to value-up disclosures to improve shareholder value." #CJGroup #ValueUp #shareholdervalue #successionplanning #CJOliveYoung #IPO #merger #minorityshareholders #corporategovernance #familybusiness
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- AI-Powered Samsung Galaxy S24 FE Set to Outsell AI-Less iPhone 16
- With the release of the Galaxy S24 FE, a semi-premium smartphone, Samsung Electronics is expected to capture demand that might fall short for Apple's iPhone 16 series. There is speculation that the delay in Apple's AI services in Europe, caused by the company's refusal to sign the European Union's (EU) AI agreement, could negatively impact iPhone 16 sales. The Galaxy FE series, known for offering premium performance at a lower price, is gaining attention as the AI-enhanced Galaxy S24 FE could drive strong sales once again. On the 27th, Samsung unveiled the Galaxy S24 FE, a semi-premium smartphone with significant performance improvements over its predecessor. The display size has increased, and the device is thinner. The dimensions of the Galaxy S23 FE were 158 x 76.5 x 8.2mm, while the Galaxy S24 FE measures 162 x 77.3 x 8.0mm. It features Samsung’s Exynos 2400e mobile processor (AP), providing faster speeds. The Galaxy S23 FE, by comparison, used Qualcomm's Snapdragon 8 Gen 1 and Exynos 2200 chips. IT media outlet SamMobile analyzed, "The Exynos 2400e is much more powerful than the two APs used in the Galaxy S23 FE, making it suitable for running all the latest Galaxy AI features." The Galaxy S24 FE is expected to bridge the gap until the release of the Galaxy S25 series early next year, and strong demand is anticipated. Moreover, the potential underperformance of Apple’s recently launched iPhone 16 series could lead to a boost in Samsung's sales. Apple's AI service, 'Apple Intelligence,' is expected to face challenges. Currently, 'Apple Intelligence' is only available in an English test version, with multilingual updates expected in the first half of next year. The full functionality of Apple Intelligence will be rolled out gradually by March 2024. This means that even those who purchase the iPhone 16 series may not be able to use key features initially. Moreover, Apple, along with Meta, has not signed the AI agreement required by the EU, which focuses on regulating high-risk AI. Without complying with this regulation, Apple Intelligence may face difficulties operating in Europe. Meanwhile, 115 multinational companies, including Samsung, Microsoft, Adobe, Amazon, and Google, have signed the EU's 'AI agreement.' Even outside of Europe, initial demand for the iPhone 16 series is the lowest in the past five years. Morgan Stanley, an American investment bank, reported to investors that 37 million units of the iPhone 16 series were sold during its first weekend, marking a 12.7% decline compared to the iPhone 15 series. Sales of the Pro and Pro Max models, which account for the majority of Apple’s smartphone revenue, saw even larger declines, with iPhone 16 Pro and Pro Max sales down by 27% and 16%, respectively, compared to their iPhone 15 counterparts. Guo Ming-chi, a researcher at Taiwan's TF International, noted that "the delivery times for the iPhone 16 series are significantly shorter than for the iPhone 15 series," suggesting that demand is lower than expected. Morgan Stanley's sales estimates are based on 'lead time,' the time it takes for an ordered product to arrive after an online purchase is completed. Longer lead times indicate high order volumes, while shorter lead times suggest lower demand and faster delivery. The lead times for the iPhone 16 series were similar to those of the iPhone 12 series, which had the lowest demand in the past five years, and were approximately 1.6 times shorter than those for the iPhone 15 series. As the iPhone 16 series is expected to underperform, there is growing speculation that the Galaxy S24 FE could capture some of that demand. Samsung also has the advantage of price competitiveness. The base model of the iPhone 16 (128GB) is priced at KRW 1.25 million (approximately US$ 930), while the 1TB model of the iPhone 16 Pro Max costs KRW 2.5 million (approximately US$ 1,860). In comparison, the Galaxy S24 FE is priced at US$ 649 (approximately KRW 850,000), making it KRW 400,000 (32%) cheaper than the least expensive iPhone 16 model. In terms of AI, the Galaxy S24 FE is also ahead. It can utilize all of Galaxy AI’s functions immediately, whereas iPhone 16 series users will have to wait until next year for full AI functionality. According to a survey by China’s Chao Deng Think Tank, the previous model, the Galaxy S23 FE, sold around 2.24 million units, ranking third in premium phone sales (priced between US$ 600 and US$ 800) last year. This surpassed sales of the iPhone 14 (1.93 million units) and the Galaxy S23 (1.69 million units). #Samsung #GalaxyS24FE #iPhone16 #AppleIntelligence #AItechnology #smartphone #pricecomparison #Exynos2400e #smartphonesales #mobilemarket
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- Growing Pressure for Football Association President’s Resignation: Chung Mong-gyu Should Return to HDC
- “It would be honorable for Chung Mong-gyu, President of the Korea Football Association (KFA), to decide his own future.” “Even if he is re-elected through voting, I plan to proceed with not approving the decision.” These were the strong words from Yoo In-chon, Minister of Culture, Sports, and Tourism. On September 24, during a parliamentary inquiry into the Ministry of Culture, Sports, and Tourism, and later on September 26 during an appearance on SBS Radio’s Kim Tae-hyun’s Political Show, Minister Yoo repeatedly urged Chung to step down. The parliamentary inquiry, viewed by the public on the 24th, marked an increase in pressure from the ministry, which oversees the KFA. This also seemed to reflect the growing dissatisfaction from fans, evident from banners at national football team games reading “Chung Mong-gyu OUT.” However, recalling Chung’s previous statements, it remains uncertain whether he will take responsibility and resign anytime soon. Even if he doesn’t seek a fourth term, his current term runs until January of next year. Meanwhile, the Ministry of Culture, Sports, and Tourism’s audit of the KFA, sparked by controversies over recent coach appointments, is nearing its conclusion, with a face-to-face interview between Minister Yoo and Chung yet to take place. Fans who watched the highly anticipated parliamentary inquiry were not just disappointed but outraged. Both Chung and other KFA officials, including national football team coach Hong Myung-bo, have been criticized for their inadequate responses to the ongoing controversies, with some suggesting that they have only exacerbated the situation. The sentiment among fans was summed up by Park Moon-sung, a football commentator who testified at the inquiry: “Incompetence, lack of principles, and unfairness.” To end this, he argued that Chung should resign before the National Assembly’s audit of the Korea Sports Council on October 22. Another issue with Chung’s leadership is that he has become a “black hole,” absorbing all attention and preventing productive discussions about Korean football, which should instead be focused on the players and the future of the sport. The national football team is currently in the third round of qualifiers for the 2026 FIFA World Cup, with crucial matches coming up on October 10 and 15. However, if Chung remains in his position, it is feared that attention will be drawn more toward the KFA’s governance issues than the players’ efforts on the field. This phenomenon has intensified since the match-fixing amnesty scandal early last year and the controversy surrounding the appointment of coach Jürgen Klinsmann. For Chung, another serious problem is that the controversy surrounding his role in the KFA is now affecting his primary business, HDC Group. During the parliamentary inquiry, Chung was strongly criticized for allegedly privatizing the KFA, and HDC’s name was brought into the spotlight. Rep. Bae Hyun-jin of the People Power Party pointed out that official documents related to the design contest for the Korea National Football Center were received directly by HDC Hyundai Development Company and that the center was named “HDC Arena” in the virtual design. In response, Chung explained that HDC Hyundai Development did not gain any benefit, as they had merely helped the KFA. He claimed that the name was only an example for future naming rights sales. HDC Hyundai Development Company promptly released a statement on the 25th, clarifying that they had supported the KFA through a legitimate consultancy contract. Based on this explanation, Rep. Bae’s allegations may not hold much weight. Nevertheless, it is undoubtedly troubling that the KFA president’s controversy has reached HDC, one of the group’s key subsidiaries. This is particularly concerning as HDC Hyundai Development is on the verge of starting the KRW 4.5 trillion (US$ 3.25 billion) development project for the area around Gwangwoon University Station—a major project that could shape the company’s future. HDC’s efforts to secure this project after seven years since being selected as the preferred bidder are at risk of being overshadowed by the controversies surrounding Chung. On September 26, two days after the parliamentary inquiry, HDC Hyundai Development announced that it had finalized the branding for the Gwangwoon University Station development project as “Seoul One” and for the residential units as “Seoul One I-Park.” It is an odd situation where a major business, crucial to the company’s future, is being overshadowed by the leadership controversies of its owner, who also serves as head of a sports organization. For Chung Mong-gyu, the Gwangwoon University Station development project is a must-win venture. It is the largest project HDC Group has pursued since it transitioned into a holding company in 2018 and is a symbol of the group’s shift toward becoming a developer. It is also a key project that could alleviate some concerns about HDC’s future growth, especially after the failed acquisition of Asiana Airlines. At a group-wide executive meeting in January 2022, Chung emphasized that HDC’s top priority should be to transition into a comprehensive financial real estate group, turning strategies into tactical growth drivers. The project also plays a pivotal role in HDC’s recovery following the series of accidents in Gwangju in 2021 and 2022. The Gwangwoon University Station development, which will include more than 3,000 housing units and HDC Hyundai Development’s new headquarters, is not only important for the company but also for local governments. For Seoul, it marks the beginning of its "Great North Seoul Redevelopment," while for Nowon District, it represents a long-awaited opportunity to grow beyond being just a “bedroom community” and into a city where residents can live and work. With Chung set to testify at the National Assembly’s audit at the end of October, it is hard to ignore the possibility that HDC Hyundai Development, along with its chairman, could once again be at the center of controversy just as the Gwangwoon University Station development is about to break ground. “I love Korean football. That’s why I wrote this book.” Chung said in his nearly 600-page memoir The Age of Football, published in July, a heartfelt reflection of his long-standing passion for the sport. However, it may now be time for him to step back. Perhaps Chung’s love for football has grown larger than his duties as a business leader. For the sake of Korean football and his group, which is on the verge of a major transition, we hope for a decisive resolution from Chung Mong-gyu. #ChungMongGyu #KFA #HDC #FootballAssociation #ResignationPressure #KoreanFootball #GwangwoonStationProject #NationalAssemblyInquiry #HDCDevelopment #LeadershipCrisis
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- SK Group's 'Rebalancing' Spurs Major Workforce Changes: Is Chey Tae-won Planning Another Executive Shake-up?
- As SK Group accelerates its “rebalancing” efforts, there is growing speculation that Chairman Chey Tae-won will once again conduct a large-scale reshuffling of the executive leadership, following last year’s similar moves. The rationale behind this is the need for organizational renewal and changes in leadership to overcome the current crisis facing SK Group. This has led to a focus on the futures of executives such as Park Won-chul, President of SKC; Ahn Jae-yong, President of SK Bioscience; Lee Ho-jeong, President of SK Networks; and Yoo Young-sang, President of SK Telecom, who is in the fourth year of his term. According to industry insiders on the 27th, SK Group is expected to carry out its 2025 regular executive appointments about a month earlier than usual, likely in mid-November this year. In 2023, the regular executive appointments were announced on December 7. The group is reportedly aiming to implement changes in its executive team sooner to address the management crisis and accelerate organizational reform. Chairman Chey Tae-won executed a generational shift at the end of last year by having key figures like Cho Dae-sik, Chairman of SK Supex Council (Vice Chairman); Jang Dong-hyun, Vice Chairman and CEO of SK; Kim Jun, Vice Chairman and CEO of SK Innovation; and Park Jung-ho, Vice Chairman and CEO of SK Hynix step down from their positions. Moreover, in May of this year, Park Kyung-il, President and CEO of SK Ecoplant, and in June, Park Sung-ha, President and CEO of SK Square, were both replaced due to poor performance. Replacing affiliate leaders this early, 5-6 months ahead of the regular executive reshuffling, was considered an unusual move. Seong Min-seok, Chief Commercial Officer (CCO) of SK On, was also dismissed just 10 months after being recruited. An industry insider commented, “SK Group attempted to carry out a large-scale replacement of underperforming CEOs within its affiliates in May and June. However, with increasing internal unrest, the group seems to have adjusted its pace. The postponed CEO changes are expected to take place during the year-end executive appointments.” Amid the recent leadership changes aimed at turning around SK Innovation, SK On, SK Square, and SK Ecoplant, other affiliates struggling with poor performance, such as SK Bioscience, SK Networks, and SKC, are also being mentioned as potential targets for leadership changes. SK Bioscience recorded an operating loss of approximately KRW 12 billion in 2023 and has continued to struggle, posting an operating loss of KRW 25.1 billion in the first half of this year. The company has been unable to escape from deficits. With the COVID-19 windfall disappearing, SK Bioscience is in dire need of new revenue streams. However, the company has yet to achieve visible results in non-vaccine businesses, such as contract development and manufacturing (CDMO), leading to growing calls for President Ahn Jae-yong to take responsibility. As a subsidiary of SK Discovery, SK Bioscience is essentially controlled by Choi Chang-won, Chairman of the SK Supex Council. Since Chairman Choi is leading SK Group's rebalancing efforts, significant changes are expected for SK Bioscience. Park Won-chul, CEO of SKC, which has posted operating losses for seven consecutive quarters up to the third quarter of this year, is also unlikely to avoid calls for accountability. Park has been attempting to reorganize SKC’s business portfolio, traditionally focused on film and chemicals, towards materials for secondary batteries, semiconductor materials, glass substrates, and chemicals. However, the copper foil business has struggled due to the prolonged electric vehicle and battery demand gap (known as the "battery chasm"). The glass substrate and eco-friendly new materials businesses have also yet to generate meaningful profits, making a performance rebound unlikely in the near term. Park’s term as CEO is set to expire on March 23, 2025, so he will need to be reappointed at the year-end. Lee Ho-jeong, CEO of SK Networks, also faces uncertainty regarding his future. SK Networks' net profit plummeted from KRW 90.8 billion in 2022 to just KRW 5.5 billion after Lee took office as CEO in 2023. Despite a rebound in the first half of this year with a net profit of KRW 28.5 billion, the company's size has shrunk due to the sale of its home appliance business unit to SK Rental and the sale of SK Rent-a-Car. Furthermore, at the shareholders’ meeting earlier this year, Lee expressed confidence that he could raise SK Networks’ stock price to KRW 10,000, but it has fallen more than 10% this year and remains in the KRW 5,000 range. Amid restructuring efforts at SK On and SK Telecom, it has been reported that up to 30% of executives at some underperforming affiliates may be targeted for restructuring. An industry insider noted, “Once the SK Group CEO seminar concludes in October, the evaluation process for year-end executive appointments will begin in earnest. Many executives will likely have to pack their bags as the group undergoes a significant downsizing.” #SKGroup #CheyTaeWon #executiveshakeup #restructuring #SKBioscience #SKC #SKNetworks #leadershipchange #businessperformance #workforcereduction
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- HMM Faces Pressure with Value-Up Index Inclusion, Kim Kyung-bae Seeks Balance
- HMM's inclusion in the Value-Up Index has acknowledged the company's potential for increased corporate value, but it also presents a new challenge: meeting the heightened expectations of its minority shareholders. For CEO Kim Kyung-bae, this adds pressure to enhance shareholder value. However, balancing long-term investment with shareholder returns, given limited resources, will likely be a tough task. According to sources in the shipping and shipbuilding industries, HMM has been pushing forward with its detailed plans for the long-term management strategy it presented in September. Recently, HMM acquired five container ships from Capital Clean Energy Carrier for approximately $300 million (around KRW 415.8 billion). These ships were previously under long-term charter contracts with HMM. Additionally, HMM has reportedly placed an order for four new medium-sized petroleum product carriers from HD Hyundai Mipo Dockyard. These moves align with HMM's long-term growth strategy, which includes a KRW 23.5 trillion (approximately $16.9 billion) investment plan. The strategy focuses on investments in the container business (KRW 12.7 trillion), the bulk business (KRW 5.6 trillion), integrated logistics (KRW 4.2 trillion), and eco-friendly digital enhancements (KRW 1 trillion). HMM, like other major shipping companies, is using the substantial cash reserves it built during the shipping boom to expand its fleet and diversify its business. However, the long-term strategy lacks a clear plan for shareholder returns. Some minority shareholders have been calling for HMM to implement more aggressive shareholder return policies to enhance the stock’s appeal and align the share price with the company's intrinsic value. HMM's price-to-book ratio (PBR) is currently around 0.5, indicating that the stock is undervalued compared to its asset value. Shareholders argue that returns should be used to increase the attractiveness of the stock and bring it closer to the company’s actual value. Furthermore, during the shipping boom following the COVID-19 pandemic, HMM accumulated substantial profits. As of June 2024, HMM’s current assets (easily liquidated assets) stood at nearly KRW 16 trillion (approximately $11.5 billion). It is not unreasonable for shareholders to expect HMM to share these profits with them. With HMM's inclusion in the Value-Up Index, the pressure for shareholder returns is expected to increase. The Value-Up Index is part of a corporate value enhancement initiative, selecting 100 companies to attract funds towards those demonstrating strong corporate value. HMM joins other major companies in this index, including Samsung Electronics, SK Hynix, Hyundai Motor, and Celltrion. While HMM's inclusion in the Value-Up Index signals its recognition as a company with strong corporate value, it may present a challenge for CEO Kim Kyung-bae. Until now, HMM’s major shareholders, including Korea Development Bank (KDB) and the Korea Ocean Business Corporation (KOBC), have taken a conservative approach to financial policies, particularly regarding shareholder value. However, with the government’s Value-Up policy and growing demands from minority shareholders, the company may need to respond. Many leading companies are aligning with the government's Value-Up campaign by voluntarily issuing "Value-Up disclosures" outlining their plans to enhance shareholder value. For CEO Kim, the challenge lies in the difficulty of satisfying both long-term investments and shareholder returns. If resources are directed toward shareholder returns, some investment plans for the long-term strategy may need to be scaled back. While HMM accumulated significant profits during the shipping boom, other leading shipping companies have already moved ahead in expanding their fleets and diversifying their businesses. In the shipping industry, where economies of scale play a significant role, fleet size heavily influences competitiveness. If HMM misses the optimal timing for long-term investments, it risks falling behind in the global shipping market. According to shipping analysis firm Alphaliner, HMM's fleet capacity stood at 868,227 TEUs (Twenty-foot Equivalent Units) as of September 26, making it the 8th largest shipping company in the world, with a 2.8% market share. However, it trails significantly behind the 7th largest, Evergreen, which has a fleet capacity of 1,711,006 TEUs and a 5.6% market share. CEO Kim Kyung-bae has expressed his concerns about improving shareholder value. At the "Alliance and Long-term Strategy Briefing" held at HMM's headquarters in Yeouido, Seoul, on October 10, Kim stated, “We feel a strong responsibility to our minority shareholders and are thinking a lot about how we can enhance shareholder value,” but added, “There are also issues related to the company’s sale, which makes our situation different from other companies.” When asked by *Business Post* if HMM was preparing a Value-Up disclosure containing shareholder value improvement plans, an HMM representative responded, “It is currently under review.” #HMM #KimKyungbae #ValueUpIndex #ShippingIndustry #ShareholderValue #FleetExpansion #InvestmentStrategy #ShippingMarket #MinorityShareholders #CorporateGrowth
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- "Europe Wants AI Appliances" – Samsung Aims for Top Spot in KRW 140 Trillion Market
- Samsung Electronics is aiming to dominate the €100 billion (KRW 140 trillion) European home appliance market with its AI-powered smart appliances. In a region where there is no clear leader in the home appliance market, Samsung plans to take the lead by focusing on AI smart home devices. Despite the global economic downturn, Samsung Electronics has managed to perform well in the home appliance sector. The company is introducing a variety of AI appliances to European consumers, who are known for their meticulous attention to energy efficiency, design, and practicality. According to the home appliance industry, most European consumers want AI integrated into their appliances. Samsung conducted an AI-related survey in July 2023 with 11,000 consumers from 10 major European countries, including the UK, Germany, France, Italy, and Spain. The survey revealed that 42% of respondents wanted AI appliances to help ease the burden of everyday tasks. Furthermore, 24% desired AI-based smart home solutions, while 33% wanted AI solutions for cleaning, and 23% wanted help managing groceries and meal preparation. However, only 15% of respondents felt confident in effectively using AI in their appliances. Currently, there is no clear leader in the rapidly expanding AI home appliance market in Europe. A home appliance industry representative remarked, “There is no dominant player in the European home appliance market; instead, various companies are competing fiercely in what can be compared to the Warring States Period.” The European home appliance market is expected to grow significantly. According to German market research firm Statista, the European home appliance market is estimated to reach KRW 140 trillion (US$ 100.9 billion) in 2024, more than double the size of the U.S. market (about KRW 53 trillion or US$ 38.2 billion). AI home appliances are expected to occupy a larger share of this growing market. Statista predicts that AI smart home appliances will grow by more than 10% annually in Europe, reaching KRW 78 trillion (US$ 56.2 billion) by 2028. The adoption rate of AI appliances is expected to increase from 24.9% in 2024 to 48.3% by 2028. Samsung is aggressively targeting the European market with its AI appliances and smart home solutions. UK-based market research firm Kantar highlighted Samsung’s strong growth potential, noting the company’s “vision of home connectivity,” along with its competitive smart home platform, SmartThings, and AI refrigerator, Family Hub. Samsung is already achieving strong results in major European markets. In the first half of 2024, Samsung held a 33.6% market share in the European TV market, maintaining its top position despite losing some share to LG Electronics and China’s TCL. In the first quarter of 2024, Samsung topped the German refrigerator market with a 17.4% market share, and in 2023, it held a 15.3% share in the microwave oven market across 19 European countries, marking its ninth consecutive year as the market leader. Samsung’s "Bespoke AI Dryer" sales in Europe tripled in the first half of 2024 compared to the same period the previous year. In 2022, Samsung achieved the No. 1 spot in Italy's home appliance market, with approximately 80% of Italian households owning at least one Samsung product. To cater to European consumers, who value energy efficiency, eco-friendliness, and design, Samsung is making a range of preparations. At the IFA 2024 in Berlin, a Samsung representative stated, “Samsung plans to accelerate its expansion into the European market by focusing on high energy efficiency and durability.” From November 2024, Samsung will sequentially launch its “Bespoke AI Combo” washer-dryer, which offers 40% greater energy efficiency than the highest efficiency rating, in major European countries such as the UK, France, and Germany. Samsung is also preparing to release the “Samsung Food Plus” AI platform, which assists consumers with meal preparation. Samsung Food Plus connects with home appliances, mobile devices, and TVs to recommend meals and manage groceries based on user information. Additionally, Samsung plans to launch the all-in-one robot vacuum cleaner "Bespoke AI Steam" and the premium refrigerator "Bespoke AI Family Hub." Ochio, Vice President of Samsung Electronics’ Korea Operations, stated, “We will continue to expand the ‘AI appliances = Samsung’ equation by showcasing Samsung’s differentiated AI technology to more consumers.” #SamsungElectronics #AIHomeAppliances #EuropeanMarket #SmartHome #BespokeAI #SamsungFoodPlus #FamilyHub #EnergyEfficiency #SamsungExpansion #AIgadget
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- Lee Jae-yong's 'Cheil Industries-Samsung C&T Illegal Merger' Appeal Begins Next Week: Key Issues
- The second round of the appellate trial for Samsung Electronics Chairman Lee Jae-yong's 'unlawful merger of Cheil Industries and Samsung C&T' case is set to begin next week. The key issues in the appeal are expected to revolve around the admissibility of evidence obtained by prosecutors during a search and seizure, as well as whether the merger between Cheil Industries and Samsung C&T was conducted to secure Lee's management succession. A recent development involving foreign hedge funds, which opposed the merger and won legal battles against the South Korean government, could also impact the appellate trial. According to business and legal sources, the Seoul High Court’s Criminal Division 13 (Chief Judges Baek Kang-jin, Kim Sun-hee, and Lee In-soo) will hold the first hearing of the appeal on the Cheil Industries-Samsung C&T merger on the 30th of this month. As Lee is required to appear in court, he will be making his first appearance since his acquittal on all 19 charges in the lower court in February 2024. Prosecutors immediately appealed that decision. A focal point of the appellate trial is expected to be whether the evidence related to accounting fraud, which was deemed inadmissible by the lower court, will be reconsidered. Prosecutors allege that Lee instructed the Samsung Future Strategy Office to inflate the stock value of Cheil Industries, in which he held a 23.2% stake, through accounting fraud at its subsidiary, Samsung Biologics. This investigation occurred between 2018 and 2019, during which prosecutors seized digital data from servers belonging to Samsung Biologics and Samsung Bioepis, presenting it as evidence in court. However, the lower court rejected the admissibility of this evidence, ruling that the evidence was obtained illegally because prosecutors seized all digital data without following proper selection procedures and failed to provide a detailed list of the seized materials. Ahead of the appellate trial, prosecutors submitted over 2,300 pieces of new evidence, asserting that the materials had been lawfully collected from other storage devices. If some of the newly submitted evidence is deemed admissible, it could lead to a different outcome from the initial trial. Another key issue in the appeal is whether the purpose of the Cheil Industries-Samsung C&T merger was to secure management succession for Lee Jae-yong. The lower court ruled that the merger could not be definitively concluded as being solely for Lee's succession and did not find intent to harm shareholders. However, prosecutors argue that without the goal of securing management succession, there would have been no reason to pursue the merger. In 2019, the Supreme Court, during the Park Geun-hye administration's state influence-peddling case, supported the prosecution's argument, stating that the merger was part of efforts to strengthen Lee’s control over Samsung Electronics and Samsung Life Insurance at minimal cost. The ongoing legal disputes involving foreign institutional investors who opposed the merger could also influence the appellate trial. In July 2023, the Permanent Court of Arbitration (PCA) ruled in favor of U.S. hedge fund Elliott Management in its investor-state dispute with the South Korean government, recognizing a causal link between the National Pension Service's support for the merger and shareholder losses. Similarly, in August, the British High Court dismissed South Korea’s appeal against the PCA's ruling, ordering the government to pay Elliott $100 million (approximately KRW 138.7 billion). South Korea has since filed an appeal. The compensation the South Korean government could owe to Elliott and other investors like Mason Capital amounts to KRW 230 billion (US$ 165.8 million). On September 13, the National Pension Service also filed a KRW 500 million (US$ 360,600) lawsuit against Lee Jae-yong, claiming damages from the merger. While these lawsuits are not directly linked to Lee’s appellate trial, the fact that different rulings are emerging on similar matters may bolster the prosecution’s arguments. The verdict for the ‘unlawful merger of Cheil Industries and Samsung C&T’ appeal is expected as early as January 2025. #LeeJaeyong #SamsungC&T #CheilIndustries #MergerTrial #KoreanCourt #SamsungBiologics #ManagementSuccession #AccountingFraud #ElliottManagement #KoreanGovernment
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- GS E&C Nears Sale of GS Inima: Focus on Huh Yoon-hong's Decision to Part with Key New Business
- Huh Yoon-hong, the President and CEO of GS Engineering & Construction (GS E&C), is seeing the potential sale of GS Inima, a company he has nurtured, come into focus. A global player in the water treatment and environmental business has expressed interest in acquiring GS Inima, offering more than just a minority stake. Reports from international media and the securities industry on the 25th suggest that the details of GS E&C's planned sale of GS Inima are becoming clearer. According to a report from the Spanish outlet 'El Economista' on the 19th, a consortium consisting of FCC's water treatment subsidiary Aquaria, Spanish construction firm Sacyr, French environmental company Veolia, and Australian asset management firm IFM has expressed interest in acquiring GS Inima. The consortium submitted a non-binding offer for GS Inima, with the acquisition price reportedly around $1 billion (approximately KRW 1.328 trillion). In response, GS Inima's sales advisor, Goldman Sachs, requested a binding offer from the consortium last week. Jo Jung-hyun, a researcher at IBK Securities, noted in a report on the sale that price adjustments may occur when the binding offer is submitted, and specific details are expected to be announced in the fourth quarter of this year. The market is closely watching whether the sale will involve a minority stake or expand into a full acquisition, including management control, in a "big deal." The estimated corporate value of GS Inima is at least KRW 1.6 trillion (US$ 1.15 billion), with the possibility of the deal growing to over KRW 2 trillion (US$ 1.44 billion) if a management premium is added. The critical question is whether Huh Yoon-hong will decide to sell management control. The GS Inima sale is seen as the largest strategic move in the business restructuring efforts initiated by Huh after becoming the CEO of GS E&C in October last year. GS Inima is also considered a key success of Huh’s leadership in new business ventures. Thanks to GS Inima’s performance, GS E&C ranked 7th globally in the water treatment facilities sector, according to the 2024 construction revenue rankings released by 'ENR'. Huh took charge of new business ventures in 2018 and made significant efforts to expand GS Inima, including acquiring the remaining shares. GS Inima's annual performance grew from KRW 231.2 billion (US$ 166.7 million) in revenue and KRW 20.6 billion (US$ 14.8 million) in net profit in 2018 to KRW 436 billion (US$ 314.3 million) in revenue and KRW 52.2 billion (US$ 37.7 million) in net profit last year. Its order backlog exceeded KRW 11.47 trillion (US$ 8.3 billion), accounting for more than 20% of GS E&C’s total backlog. There is speculation that Huh is leaning towards expanding the scale of the sale. Given the reported KRW 1.3 trillion (US$ 937.1 million) offer from the Aquaria consortium and GS Inima's estimated value of KRW 1.6 trillion (US$ 1.15 billion), the deal is expected to be more than a simple minority stake sale. The companies involved in the consortium, including FCC, Sacyr, and Veolia, are major players in the global water treatment market, and their interest suggests a desire to acquire management control rather than just make a passive investment. FCC's water treatment subsidiary Aquaria ranks 5th globally in the water treatment sector, ahead of GS E&C, which ranks 7th. Aquaria operates water treatment facilities serving 45.2 million people across 18 countries. This year, Aquaria also expanded into the U.S. market by acquiring the Texas-based water treatment company MDS. Sacyr manages water treatment plants with a capacity of 2.2 million cubic meters per day and provides services to 9 million people through various projects in countries such as Spain, Algeria, Tunisia, Chile, and Israel. Sacyr has also expanded its business by acquiring water rights companies in Chile and desalination plants in Australia. Veolia, the global leader in environmental services, ranks 1st in the 'ENR' environmental company rankings, serving over 100 million people with drinking water and wastewater treatment services. It also has significant operations in waste management and energy sectors. For these companies with strong global competitiveness in water treatment, fully acquiring GS Inima may be a more attractive option than merely making a minority investment. The potential sale of GS Inima could significantly ease GS E&C’s financial burden, as Huh Yoon-hong looks to restructure and invest in new growth areas. In addition to GS Inima, GS E&C is also pursuing the sale of its subsidiary GS Elevator as part of efforts to secure liquidity. Some market observers have raised concerns about liquidity issues, as GS E&C’s cash reserves have noticeably decreased, while net debt has increased. As of the end of the first half of 2023, GS E&C's cash assets stood at KRW 2.38 trillion (US$ 1.72 billion), down by KRW 453.2 billion (US$ 326.9 million) from the end of last year. Meanwhile, net debt increased to KRW 3.17 trillion (US$ 2.29 billion) from KRW 2.88 trillion (US$ 2.08 billion) during the same period. The company's debt ratio was 252% at the end of the first half, the highest among major construction firms, and interest expenses surged to KRW 300 billion (US$ 216.4 million) last year. Jo Jung-hyun of IBK Securities commented, "While selling a high-growth asset like GS Inima is unfortunate, reducing interest expenses, which could reach KRW 52.8 billion (US$ 38.1 million) annually, and securing liquidity for future investments is a positive decision." In a public statement on the 4th, GS E&C said, "While GS Inima has received expressions of interest from investors, no decisions have been made regarding the sale or its scope." #HuhYoonHong #GSInima #GSConstruction #WaterTreatment #GlobalExpansion #MergersAndAcquisitions #FCC #Veolia #Sacyr #Aquaria #GoldmanSachs #NewBusinessGrowth #FinancialRestructuring #Investment
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- Samsung Electronics Bets on 'Automotive Memory', Jun Young-hyun's Move for HBM Competitiveness
- Jun Young-hyun, the Vice Chairman and Head of the Device Solutions (DS) Division at Samsung Electronics, is actively fostering automotive memory as part of the company’s strategy to strengthen its competitive edge in high-bandwidth memory (HBM). He is leading comprehensive investments to expand Samsung's footprint in this area. Samsung Electronics is focusing on developing DRAM and specialized NAND flash for automotive applications, including vehicle-specific HBM. The company is also preparing next-generation foundry processes for mass production of automotive memory. According to market research firm Omdia, the automotive memory semiconductor market is expected to more than double from KRW 8.4 trillion (US$ 6.1 billion) in 2023 to KRW 17.2 trillion (US$ 12.4 billion) by 2028. As demand for next-generation intelligent vehicles, such as connected cars and self-driving cars, is expected to grow, so too will the demand for automotive memory semiconductors. Automotive semiconductors can be divided into two categories: "automotive semiconductors" and "automotive memory." Automotive semiconductors are system semiconductors used for vehicle control and operation, such as in powertrains, dashboards, black boxes, and infotainment systems. The automotive memory that Samsung is focusing on is non-volatile memory semiconductors used to store data, such as LPDDR, HBM, and NAND flash for vehicles. These memory semiconductors have become essential for the operation of advanced driver assistance systems (ADAS) and infotainment systems in future cars. Vice Chairman Jun has identified automotive memory as Samsung’s next major growth driver and is increasing investment in this area. At the recent "Automotive Electronics Forum 2024" in the United States, Samsung revealed its plans to develop the 7th generation HBM4E for automotive applications, which offers five times the memory capacity and bandwidth of the existing LPDDR used in vehicles. Although Samsung has ceded the top spot in the AI semiconductor market to SK Hynix in the HBM sector, it aims to leverage its advanced technology to dominate the rapidly growing automotive memory market. By 2033, automotive HBM is expected to account for 40% of the total DRAM used in self-driving cars. Fully autonomous vehicles require computational power capable of 50 trillion operations per second, which cannot be handled by the current LPDDR. Additionally, the increasing use of generative AI in future vehicles is expected to drive demand for automotive HBM. The replacement cycle for automotive memory is also projected to decrease from seven years in 2022 to three years by 2030, further accelerating demand. Samsung is expanding its customer base in the automotive LPDDR DRAM segment. In August, the company received certification to supply LPDDR4X for Qualcomm's automotive platform, the "Snapdragon Digital Chassis." Samsung Electronics will also unveil a sample of its next-generation automotive LPDDR5 DRAM by the end of the year. LPDDR5 DRAM is designed for use in extreme environments, delivering speeds of 9.6 Gbps even at extreme temperatures, making it ideal for automotive applications. In the automotive NAND flash sector, Samsung is also demonstrating world-leading technological capabilities. On September 24, the company announced the successful development of the world’s first automotive 8th generation V-NAND, the "PCIe 4.0 SSD AM9C1." This product boasts the highest read and write speeds on the market, at 4,400 MB/s and 400 MB/s, respectively, with plans to expand its capacity from 256GB to 2TB by early next year. Its power efficiency has also been improved by 50% compared to the previous generation AM991. According to Omdia, the average amount of NAND flash per vehicle was 71.3 GB in 2022, but this is expected to grow nearly fourfold to 288.1 GB by 2028. Vice Chairman Jun is also preparing advanced foundry facilities for the mass production of next-generation automotive memory. In 2022, Samsung presented its blueprint for developing 8-nanometer eMRAM by 2026 and 5-nanometer eMRAM by 2027. eMRAM is a memory semiconductor capable of stable information processing even at extreme temperatures. Recently, Samsung completed the development of a 14-nanometer eMRAM process and is nearing the final stages of 8-nanometer process development, more than a year ahead of the original 2026 target. Choi Si-young, the President and General Manager of the Foundry Business at Samsung Electronics, recently stated, “We plan to develop processes optimized for the automotive semiconductor market in a timely manner and mass-produce AI semiconductors for various levels of autonomous driving, as well as power semiconductors, to meet customer demands.” Meanwhile, according to IHS, the global leader in the automotive memory market in 2022 was the U.S. company Micron, with a 44% market share. Samsung Electronics ranked second with a 14% share and is aiming to reach the top spot by 2025. #SamsungElectronics #JunYoungHyun #HBM #AutomotiveMemory #SelfDrivingCars #NANDFlash #LPDDR #Foundry #AI #eMRAM #AutomotiveSemiconductors #Qualcomm #Snapdragon #TSMC #Micron
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- Kolon Divests Unprofitable Business, Focuses on New Ventures—Attention on Lee Kyu-ho’s Succession Qualifications
- Lee Kyu-ho, Vice Chairman and CEO of Kolon Group’s Strategy Division, is restructuring the group's business portfolio. This involves divesting the underperforming film business, consolidating new ventures into a single entity, and pursuing mergers to expand the sales network of core products, all aimed at positioning the group for future growth. On the 24th, attention within the business community turned to whether Vice Chairman Lee can solidify his position as the group's successor by delivering results in new business areas such as secondary batteries, hydrogen, and eco-friendly technologies. Kolon Group has recently been actively engaging in mergers and acquisitions to restructure its business operations. This coincides with Lee Kyu-ho’s appointment as CEO of the Strategy Division earlier this year. Kolon Industries decided to exit the unprofitable PET film business, which had been suffering due to price competition from Chinese companies. The PET film division will be spun off, and an 18% stake will be secured through an in-kind contribution to a new joint venture with SK Microworks, set to be established by the end of this year. This merger of the second- and third-largest companies in the domestic film industry is expected to create synergies. The securities industry estimates that the reduction in net losses from the PET film business could range from KRW 30 billion to 40 billion annually (US$ 21.6 million to 28.9 million). With the film business divested, Vice Chairman Lee has identified secondary batteries, hydrogen, and eco-friendly technologies as the next growth drivers. Kolon Industries made strategic investments in the lithium-metal anode startup Niva Corporation in 2022 and the battery recycling startup RD Solution in 2023. The company is also constructing a battery recycling plant capable of processing 20,000 tons of spent batteries annually, set for completion by 2026. Kolon Group is also expanding its materials business in the hydrogen mobility sector, producing components like proton exchange membranes (PEM), membrane electrode assemblies (MEA), and humidity control devices for hydrogen fuel cell vehicles, as part of its hydrogen business value chain. Kolon Glotech, which manufactures automotive seat fabrics, is merging its automotive materials and parts business with Kolon Industries. This merger is expected to help expand the market for airbag materials and artificial leather “Chamude” to India and North America. In addition to restructuring Kolon Industries, Kolon Group is realigning its composite materials businesses across its subsidiaries. In July, the group launched ‘Kolon Space Works’ to consolidate aerospace and defense materials, lightweight automotive components, bulletproof materials, hydrogen tanks from Kolon Dec Composite, and vehicle battery lightweight materials from Kolon ENP. The success of Kolon’s new business ventures is closely tied to the succession of management within the owner family. In 2018, Kolon Group’s Honorary Chairman Lee Woong-yeol hinted that Lee Kyu-ho’s succession would depend on his demonstrated ability, stating, “Only if it’s determined he has the ability can succession proceed.” Although Chairman Lee Woong-yeol currently holds a 49.74% stake in Kolon, Vice Chairman Lee Kyu-ho holds no shares in the group. Born in 1984, Lee Kyu-ho graduated from Cornell University with a degree in Hotel Administration. He has held various leadership positions across Kolon Group’s affiliates, including as Chief Operating Officer of Kolon Industries’ FnC Division (Fashion Division), Vice President of Kolon Global’s Automotive Division, and CEO of Kolon Mobility Group. Earlier this year, Lee was promoted to Vice Chairman and CEO of Kolon’s Strategy Division, the holding company of the group. He resigned as CEO of Kolon Mobility Group but retained his position as an internal director, and was appointed as an internal director of Kolon Industries and Kolon Global, stepping into a more prominent management role within the group. Kolon, the holding company, reported consolidated sales of KRW 2.9496 trillion (US$ 2.13 billion) and operating profits of KRW 41.8 billion (US$ 30.1 million) for the first half of this year. While sales increased by 3.5% compared to the same period last year, operating profits fell by 54.0%. A Kolon Group representative commented, "Chairman Lee Woong-yeol remains healthy and there is no information to share regarding the succession at this time." #LeeKyuho #KolonGroup #BusinessRestructuring #Successor #SecondaryBatteries #HydrogenBusiness #EcoFriendly #KolonIndustries #MergersAndAcquisitions #KolonSpaceWorks #BusinessSuccession #CorporateStrategy
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- German Automakers Risk Missing EV Opportunity, Opening Door for Hyundai in Europe
- German automakers, once dominant globally, including Volkswagen, Mercedes-Benz, and BMW, are facing such severe performance declines that plant closures are becoming inevitable, and they are struggling to increase electric vehicle (EV) investments. Hyundai Motor Group, with its strong EV quality, competitive mid-range models, and Chairman Chung Eui-sun's commitment to the European market, is poised to capitalize on the weakened position of German automakers and expand its presence in Europe. According to reports from Reuters and CNBC on the 24th, Germany's top three automakers are all facing financial difficulties due to poor performance, leading to unavoidable large-scale restructuring. Both Mercedes-Benz and BMW have revised their 2023 earnings forecasts downward. Mercedes reduced its operating profit margin from 10-11% to 7.5-8.5%, while BMW lowered its EBIT margin to 6-7%. Volkswagen, unable to overcome its dismal performance, is considering drastic restructuring, including workforce reductions and possibly closing plants in Germany. Analysts attribute the decline in performance largely to the automakers' failure to keep pace with the shift to electric vehicles and missing critical investment opportunities. In particular, these companies have been slow to respond to Europe's rapid policy shift toward electric vehicles. While Germany's automakers have focused on premium EV strategies, critics say this approach failed to meet consumer demand. A Bank of America analyst told CNBC, "German EVs are too expensive." Another factor accelerating their downturn is the loss of competitiveness in China, where Volkswagen, Mercedes, and BMW generate more than 30% of their sales. There are also concerns about the lack of clear policy solutions to revitalize Germany's EV industry. Local media outlet 'Stern' reported on the 21st that Germany's ruling Social Democratic Party (SPD) is considering a subsidy of 6,000 euros (about KRW 8.9 million or US$ 6,310) for scrapping internal combustion engine vehicles and purchasing new EVs. However, the delay in implementing such policies has raised concerns about Germany's ability to revive its EV sector. 'Politico' noted, "The German authorities seem unsure how to support their domestic automakers, who are losing competitiveness by relying too heavily on internal combustion vehicle profits." The struggles of Germany’s big three automakers present a potential opportunity for Hyundai Motor Group, which is actively targeting the European market. Hyundai’s electric vehicle competitiveness is widely seen as surpassing that of its German counterparts, and the group's expansion in Europe could be accelerated by their declining performance. German automotive magazine 'Auto Zeitung' compared Hyundai’s IONIQ 5 N with BMW’s M2 in August 2023, giving Hyundai's EV higher ratings in several categories, including driving convenience and cost-efficiency. Although the M2 is an internal combustion vehicle, the fact that a German publication ranked Hyundai’s EV above a BMW speaks volumes. Automotive media outlet 'Autoevolution' also remarked, “European EVs (like Volkswagen and BMW) are a generation behind Korean brands.” As German automakers struggle to invest in electrification, Hyundai's EVs, which have received positive reviews, may become an increasingly attractive option for European consumers. Hyundai and Kia plan to launch affordable EVs in Europe by the end of this year, including the Hyundai Casper (to be branded as the "Inster" in Europe) and the Kia EV3, which could further boost sales. This strategy could help Hyundai capitalize on the gap left by overpriced German EVs. EV specialist media 'Electrek' predicted, "The Inster, priced under €25,000 (about KRW 37 million or US$ 26,300), will be among the most affordable vehicles in Europe." Building on this momentum, Hyundai Motor Group Chairman Chung Eui-sun visited the Nosovice plant in the Czech Republic on October 19th, expressing his intention to strengthen Hyundai’s EV business in Europe. With Europe being the world’s second-largest EV market after China, the competition in this region will play a critical role in Hyundai’s future growth. Supported by Chairman Chung's strong leadership, Hyundai Motor Group is now in an advantageous position to expand its presence in the European EV market, as Germany's top three automakers face significant setbacks. Ferdinand Dudenhöffer, professor at Duisburg-Essen University and director of the CAR Center Automotive Research, told 'Die Welt' that “Germany is unlikely to recreate the high EV sales seen in 2022-2023 by 2028.” #HyundaiMotorGroup #GermanAutomakers #ElectricVehicles #Volkswagen #BMW #MercedesBenz #ChungEuisun #EuropeanMarket #EVExpansion #IONIQ5N #AutoZeitung #Autoevolution #Electrek #AutoIndustry
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- KT Partners with Hyundai Motor, Kim Young-shub Targets Smart Mobility Leadership
- Kim Young-shub, CEO of KT, is expected to strengthen collaboration with Hyundai Motor Group in order to secure a leading position in the smart mobility market. KT is currently partnering with Hyundai Motor to develop urban air mobility (UAM), and the two companies are likely to explore further business opportunities in autonomous driving and in-vehicle infotainment. As of June 2024, Hyundai Motor and Hyundai Mobis collectively hold 8.07% of KT shares, making them the largest shareholders. This has led to expectations that CEO Kim will actively seek to create synergy with Hyundai Motor in the mobility sector. KT and Hyundai Motor Group have been working together since a share swap in September 2022, forming the ‘K-UAM One Team’ consortium to commercialize UAM. They successfully completed the first phase of UAM trials in Goheung, South Jeolla Province, in March 2023, and are preparing for additional trials ahead of a planned commercial launch in late 2025. In this collaboration, Hyundai Motor is responsible for developing and operating the aircraft, while KT manages the air traffic control system. During the trial phase, the companies have been using the ‘Ophab’ UAM aircraft developed by the Korea Aerospace Research Institute. However, starting in 2028, they plan to use Hyundai’s own ‘S-A2’ aircraft. An industry insider noted, "Hyundai Motor Group has been accelerating its UAM business, securing domestic patents for safety and noise reduction systems in March 2023. KT is the ideal UAM partner to generate synergy." CEO Kim is also expected to expand cooperation with Hyundai Motor Group in other areas, including autonomous driving and vehicle infotainment. Kim has identified five new growth areas: smart mobility, AI contact centers (AICC), smart spaces, energy, and the Internet of Things (IoT). Hyundai Motor Group is a key partner for generating synergy in the smart mobility sector. Autonomous driving, in particular, requires both KT’s communications technology and Hyundai Motor’s vehicle control systems. While autonomous driving has traditionally relied on AI and onboard equipment, future advancements are expected to utilize communication-based internet and dedicated transportation clouds, providing a more stable environment for autonomous vehicles. Furthermore, full autonomy will require 6G technology, which is up to 50 times faster than 5G. KT, with its five satellites, is well-positioned to lead in 6G deployment, giving it a competitive edge. In the infotainment space, collaboration between KT and Hyundai Motor is also likely to increase. KT currently supplies its AI service ‘GiGA Genie’ to domestic and international automakers, and its media assets, such as Genie Music, TVing, and Millie’s Library, are poised to become key strengths in vehicle infotainment services. Kim Jun-seop, a researcher at KB Securities, noted, “KT’s strategic new businesses, particularly in smart mobility and AI contact centers, are showing strong growth, indicating expansion in these high-profit areas.” #KimYoungshub #KT #HyundaiMotorGroup #SmartMobility #UAM #AutonomousDriving #VehicleInfotainment #6G #Collaboration #BusinessExpansion #UrbanAirMobility #KTHyundai
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- LG Chem Speeds Up 'Independence from LG Energy Solution,' Shin Hak-cheol's Petrochemical Concerns Grow
- LG Chem is accelerating efforts to diversify its customer base in the cathode materials business within its advanced materials division. The company seems to be seeking alternative strategies as growth in the electric vehicle (EV) market slows while also working to reduce its reliance on its subsidiary, LG Energy Solution. However, Shin Hak-cheol, Vice Chairman and CEO of LG Chem, is increasingly concerned about the slow recovery in profitability in the petrochemical business. A prolonged structural downturn due to an oversupply of naphtha cracking facilities has led to rumors about the possible sale of the Yeosu Plant 2 amid worsening business conditions. According to the securities industry’s projections for LG Chem's third-quarter earnings, battery-related businesses are showing a clear recovery trend, but the petrochemical sector’s recovery is expected to remain slow. Due to the impact of the slowdown in electric vehicle growth, LG Chem’s cathode materials business is expected to see a 20% decrease in sales volume compared to the previous quarter in Q3. However, the business is still expected to maintain a profit margin in the high single digits. Kyu-won Hwang, a researcher at Yuanta Securities, explained, “The burden caused by the input of high-cost raw materials is being alleviated as the price of cathode materials rebounds.” In October 2023, LG Chem signed a deal to supply cathode materials on a large scale to Toyota North America (worth approximately KRW 3 trillion / USD 2.2 billion) and in February 2024 to General Motors (worth KRW 25 trillion / USD 18 billion). On the 22nd of this month, LG Chem also secured a contract with the Toyota-Panasonic joint venture PPES to supply cathode materials from 2026 onward. As LG Chem increases its supply to external customers, it is expected to reduce the proportion of cathode material sales that have been heavily reliant on LG Energy Solution. In the first half of the year, LG Energy Solution purchased KRW 991.3 billion (USD 714.8 million) worth of raw materials from LG Chem. This amount accounted for 78.4% of LG Chem’s advanced materials division's revenue during the same period. If non-secondary battery material businesses, such as water treatment RO filters and OLED materials, are excluded, the sales dependence on LG Energy Solution is even higher. In 2022, LG Chem set the following targets for its cathode materials business: △an annual production capacity of 200,000 tons by 2026 (130,000 tons in Korea, 60,000 tons in China, and 10,000 tons in the US), and △a goal for more than 40% of customers outside of LG Energy Solution by 2030. To handle the increased demand from new customers, the company is investing KRW 2 trillion (USD 1.44 billion) in a new cathode materials plant with an annual production capacity of 60,000 tons in Tennessee, USA, which has been under construction since December 2023. The plant is expected to be operational by June 2026. However, due to the slowdown in the electric vehicle market, LG Chem has decided to delay the start-up of its 50,000-ton-per-year lithium iron phosphate (LFP) cathode materials plant in Morocco and the expansion of nickel-cobalt-manganese (NCM) cathode materials facilities in Korea, aligning with customer orders. For Shin, the bigger issue than the temporarily sluggish cathode materials business, affected by the EV market, is the petrochemical division, which has been hit hard by oversupply from China. The domestic petrochemical industry continues to struggle due to large-scale capacity expansions in China, leading to prolonged poor performance. LG Chem has a vertically integrated production system, starting with basic olefins like ethylene and propylene and producing final products such as polyethylene (PE), PVC/plasticizers, acrylonitrile-butadiene-styrene (ABS), acrylic/super absorbent polymer (SAP), synthetic rubber, and specialty resins. However, it has not been able to escape the structural downturn triggered by China. Hanwha Investment & Securities forecasts that LG Chem’s petrochemical division will record sales of KRW 4.9025 trillion (USD 3.53 billion) and an operating loss of KRW 9.1 billion (USD 6.56 million) in the third quarter of this year, due to factors such as △a decline in exchange rates, △narrowing spreads in products like polyvinyl chloride (PVC) and polyolefin elastomers (POE), and △decreased sales volume due to weakening demand. Amid the slow recovery of profitability in the petrochemical business, rumors of a sale of LG Chem's naphtha cracking center (NCC) at Yeosu Plant 2 persist. An LG Chem official stated, “The company is exploring strategies to strengthen its competitiveness, as the basic olefins sector is facing difficulties due to new entrants and capacity expansions by competitors. Discussions are also ongoing to attract more external customers to the cathode materials business.” #LGChem #cathodematerials #LGEnergySolution #petrochemicals #EVmarket #Toyotapartnership #GMdeal #batteryindustry #ShinHakcheol #YeosuPlant
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- KB Financial Expected to Lead in Q3 Profits, Yang Jong-hee Aims for "5 Trillion Won Era"
- Yang Jong-hee, the Chairman of KB Financial Group, is likely to not only maintain its leading position in the financial industry but also open the era of achieving annual net profits of KRW 5 trillion (US$ 3.6 billion). KB Financial experienced a slight slowdown in performance in the first half of the year due to the recognition of loss compensation costs from Hong Kong's H-Index equity-linked securities (ELS). However, with the stable performance of its non-banking subsidiaries and the continued increase in bank loans, the company is expected to continue its streak of record-breaking annual net profits. According to financial information firm FnGuide on the 23rd, KB Financial is expected to record a consolidated net profit (attributable to controlling shareholders) of KRW 1.5013 trillion (US$ 1.08 billion) for the third quarter of 2024. This would be an increase of 9.28% from the same period in 2023 (KRW 1.3737 trillion), marking the highest third-quarter net profit ever. As KB Financial is expected to post strong results in the third quarter, following a successful second quarter, its annual net profit forecast has also risen. Based on the average earnings estimates from the securities industry over the past three months, KB Financial is expected to achieve a net profit of KRW 5.0165 trillion (US$ 3.6 billion) in 2024. This is more than KRW 100 billion higher than the KRW 4.8658 trillion (US$ 3.51 billion) projected for Shinhan Financial Group, which is competing with KB for the top spot in the financial sector. KB Financial is also expected to surpass Shinhan Financial (KRW 1.3483 trillion) in terms of third-quarter net profit. If Yang achieves KRW 5 trillion in net profit, setting a new record in his first year as chairman, it will not only solidify KB Financial's leadership but also strengthen its position as a leading financial institution. Despite other major financial holding companies recording their highest-ever performances due to interest income growth from loan increases and stronger non-banking operations, KB Financial has firmly maintained its lead in net profits. In the first quarter of this year, KB Kookmin Bank's net profit was halved (-58.2%) due to a large-scale loss compensation from Hong Kong ELS (KRW 634 billion after taxes), temporarily giving up its top spot in net profit to Shinhan Financial. However, it quickly recovered in the second quarter, posting its highest-ever quarterly profit and reclaiming its lead. This was largely attributed to the strong performance of non-banking subsidiaries, which Yang had emphasized. In the first quarter, KB Securities (40.8%), KB Insurance (15.1%), KB Kookmin Card (69.6%), KB Asset Management (3.3%), and KB Capital (31.3%) all saw significant increases in net profits, helping KB Financial maintain a quarterly net profit of over KRW 1 trillion. Looking at the first half as a whole, net profits from KB Securities (50.6%), KB Insurance (8.9%), KB Kookmin Card (32.5%), KB Asset Management (6.9%), and KB Capital (30.1%) all increased. As a result, the share of non-banking subsidiaries in KB Financial Group's total net profit rose from 41% to 49% within a year, approaching half of the total. Moreover, banks are reportedly benefiting from the financial authorities' policies to curb household loans, positively impacting their performance. Choi Jeong-wook, a researcher at Hana Securities, said, “Despite a further decline in net interest margins, domestic banks saw a high loan growth rate, which limited the decrease in net interest income in the third quarter. There were also not many major variables, such as additional loan loss provisions, so the four major financial holding companies are expected to outperform market expectations.” Indeed, as banks raised lending rates several times to align with the authorities' policies and faced a surge in last-minute loan demand ahead of the second phase of the stress-based debt service ratio (DSR) regulations, loan performance significantly increased. According to household loan trends released by the Financial Services Commission, household loans in the banking sector increased by KRW 9.8 trillion (US$ 7.07 billion) at the end of August compared to the previous month, almost double the increase of KRW 5.2 trillion (US$ 3.75 billion) in July. However, if the Bank of Korea lowers the base interest rate in October, the growth in banks' interest income could slow. As market interest rates have been falling recently, the upper limit on mortgage rates at the four major banks, including KB Kookmin Bank, has been declining since the end of August. The unprecedented performance of financial holding companies has sparked criticism of "interest profiteering," and the authorities' pressure for shared growth finance at the end of the year could also pose a variable to earnings. In 2023, KB Financial also raised expectations of achieving KRW 5 trillion in net profit, with its cumulative net profit reaching about KRW 4.3 trillion (US$ 3.1 billion) by the third quarter. However, due to one-time costs such as shared growth financial support and loan loss provisions reflecting the default rate of real estate project financing (PF), KB Financial's net profit for the fourth quarter decreased significantly, bringing its annual net profit to KRW 4.6319 trillion (US$ 3.34 billion). KB Financial has seen continuous net profit growth for five consecutive years since 2019. After surpassing KRW 4 trillion (US$ 2.88 billion) in net profit in 2021, the company has continued to achieve record-high performances each year. Although it did not join the KRW 5 trillion net profit club in 2023, it was the only one of the four major financial holding companies to see an increase in net profit, breaking its own record once again. Keywords: #KBFinancial #YangJonghee #netprofit #bankingindustry #financialsector #ShinhanFinancial #5trillion #nonbankingsubsidiaries #Koreanbanking #loanexpansion
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- Samsung Electronics Q3 Earnings Decline Expected; Memory Slowdown and Smartphones Underperform
- Samsung Electronics is projected to face a decline in its Q3 2024 performance due to a slowdown in general memory semiconductor shipments and weak smartphone sales, raising concerns that its results may fall short of those from Q2. Amid U.S. investment bank Morgan Stanley's warnings of a "semiconductor winter," there is also concern that if Samsung cannot significantly increase its high-bandwidth memory (HBM) supply, its Q4 performance could remain under pressure. According to financial information firm FnGuide on the 23rd, Samsung Electronics' consensus estimates for Q3 2024 are KRW 82.4154 trillion (US$ 59.4 billion) in revenue and KRW 11.7025 trillion (US$ 8.4 billion) in operating profit. This represents a 10.5% and 12% increase in revenue and operating profit, respectively, compared to Q2. However, as the announcement of Samsung’s preliminary Q3 results approaches in early October, some securities firms have lowered their estimates. Shin Seok-hwan, a researcher at Daishin Securities, recently projected Samsung's Q3 operating profit to be KRW 10.1 trillion (US$ 7.3 billion), a 3.1% decrease from Q2. He also forecasted a 18% drop in operating profit for Samsung's semiconductor (DS) division, expecting it to reach KRW 5.3 trillion (US$ 3.8 billion). Shin noted, "There are concerns over falling memory semiconductor prices due to uncertainties in IT demand, increased memory inventory levels at PC manufacturers, and supply expansions by Chinese memory companies. Samsung's DRAM shipments in Q3 are expected to decrease by 2% compared to the previous quarter." Lee Min-hee, a researcher at BNK Investment & Securities, also slashed her Q3 operating profit estimate for Samsung from KRW 13.3 trillion (US$ 9.6 billion) to KRW 10.3 trillion (US$ 7.4 billion), a KRW 3 trillion adjustment. Lee explained, "Since smartphone manufacturers are targeting strong inventory adjustments through the end of the year, Samsung's semiconductor sales in the second half will be weaker than expected. Even if Samsung secures certification for the HBM3E 8-layer product from its North American customer (Nvidia) in November, actual demand will be limited as the customer focuses on the 12-layer product." Samsung's sales of its Galaxy Z Fold and Flip 6 models, released in July 2024, are also expected to decline compared to previous models. Alongside the semiconductor struggles, smartphone sales are also projected to fall short of expectations. The domestic pre-sale volume of the Galaxy Z Fold and Flip 6, which launched in July, reached 910,000 units, falling short of the 1.02 million units recorded for their predecessors, the Galaxy Z Fold and Flip 5. Analysts predict that the expected 12-month sales will also be lower than the 7.3 million units of the previous models, hovering around 6 million units. Due to the rising costs of smartphone components, the operating profit for Samsung's Mobile eXperience (MX) division in Q3 is expected to stagnate at around KRW 2.6 trillion (US$ 1.87 billion), similar to Q2. This represents a 25% decrease compared to Q3 2023. Lee Seung-woo, a researcher at Eugene Investment & Securities, stated, "Inventory adjustments in IT set products and downward revisions in semiconductor demand are expected in the second half of the year. Although Samsung had raised expectations for improvement and normalization of its performance from Q2, its Q3 operating profit is expected to reach only KRW 10.2 trillion (US$ 7.4 billion), falling short of investors' expectations." Expectations for Samsung's Q4 performance are also declining. Morgan Stanley recently issued a report warning of another downturn in the memory semiconductor market, predicting that DRAM prices will fall due to reduced demand for smartphones and PCs. The entrance of China's CXMT into the LPDDR4 market has already intensified price competition. Furthermore, Samsung is lagging behind competitors in the supply of high-priced HBM, which is crucial for capitalizing on the growing demand for AI semiconductors. Samsung plans to begin full-scale HBM3E supply to Nvidia in the second half of the year, aiming to increase HBM revenue by 3.5 times compared to the first half. The success of this initiative is expected to determine its Q4 profitability. Baek Gil-hyun, a researcher at Yuanta Securities, commented, "Short-term sluggishness in the performance of general semiconductors is inevitable for Samsung in the second half of this year. However, strong AI server demand and limited supply increases should sustain high growth rates for HBM until 2025." #SamsungElectronics #Q3Earnings #SemiconductorSlowdown #SmartphoneSales #HBM #GalaxyZFold6 #MemoryChipMarket #MorganStanley #DRAMPrices #AIsemiconductors
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- Kia Overcomes the 'EV Chasm,' Song Ho-sung's Affordable EV Strategy Gains Global Momentum
- Kia's electric vehicle models are breaking through the 'EV chasm' (a temporary demand stagnation) in various global markets and are racing forward. Song Ho-sung, CEO of Kia, is aiming to propel the brand into a leading global electric vehicle brand by continuously launching affordable EVs that offer high value at relatively lower prices. According to Kia's Chinese joint venture Yueda Kia on the 20th, Kia has reignited sales recovery in China for the first time in seven years. Kia's sales in China, including exports, reached 22,498 units in August, a 36.2% increase compared to the same period last year. Cumulative sales from January to August this year were 154,243 units, a 61.3% surge from the previous year, making Kia the top seller among joint venture automakers in China. Back in 2016, Kia sold around 650,000 vehicles annually in China. However, due to the Chinese government's THAAD-related sanctions in 2017, sales plummeted to around 360,000 units in just one year. By last year, Kia's sales in China had dropped to 80,000 units. At the heart of Kia’s sales rebound in China is a combination of exports and the success of the EV5, the brand's first locally produced electric vehicle for the Chinese market. At the CEO Investor Day last April, Song Ho-sung stated, "After two years of preparation, we have completed a system to produce vehicles for emerging markets at our Chinese factory." He further announced, "We aim to increase sales in emerging markets from 80,000 units last year to 250,000 units by 2027." This year, about 70% of the production volume from Kia's Yancheng factory is for export. The EV5, a mid-size electric SUV launched in China in November last year, has sold approximately 6,000 units by July of this year, driving the local sales increase. The EV5's starting price in China is CNY 149,800 (about KRW 28 million or US$ 20,190), which is around KRW 20 million (US$ 14,428) cheaper than the Tesla Model Y, which starts at CNY 249,900. The EV5’s base model, the Standard Trim, is equipped with BYD's 64.2kWh LFP (lithium iron phosphate) battery, allowing it to travel 530 km on a single charge based on the Chinese CLTC standard. The Long Range Trim, which features an 88.1kWh battery, offers a range of 720 km per charge. The China-manufactured EV5, which has already begun exports to Thailand, is expected to increase sales even further by starting shipments to Australia and New Zealand within the year. Kia aims to produce over 30,000 EV5 units this year and export at least 10,000 of them. In South Korea, the EV5, manufactured at Kia's Gwangju Plant 1, is expected to be released in the first half of next year. Kia is also making waves in the domestic EV market, which is experiencing a contraction, with the launch of the affordable EV3 on July 25. Despite the downturn, the EV3 is creating a sensation. Within just six days of its sales launch in July, the EV3 recorded sales of 1,975 units. In August, 4,002 units were sold, placing it at the top of South Korea's EV sales. The EV3 also ranked seventh in overall domestic automobile sales, including internal combustion engine and commercial vehicles. This year, Kia aims to sell between 25,000 and 30,000 EV3 units. The EV3 is based on Hyundai Motor Group's dedicated electric vehicle platform, E-GMP, and features a 4th-generation battery. It offers a range of 501 km on a single charge (Long Range model), which is 100 km longer than the small electric SUV Niro EV in the same class. Despite this, the Long Range Trim’s starting price is KRW 44.15 million (US$ 31,837), KRW 4.4 million (US$ 3,174) cheaper than the Niro EV, which starts at KRW 48.55 million (US$ 34,978). The EV3 is set to start sales in Europe, where demand for small cars is high, by the end of the year, and expand to the U.S. and other markets next year. At the 'Kia EV Day' last October, Song Ho-sung unveiled the concept cars for the EV3 and EV4 for the first time globally, stating, "The biggest reasons consumers hesitate to buy electric vehicles are their high prices and inconvenient charging." He promised, "We will present solutions to address their concerns." Song Ho-sung also outlined a vision that mass-market EV models should have a minimum range of 500 km on a single charge and be priced between US$ 35,000 and US$ 50,000. Starting with the recently launched EV3, Kia plans to release six mass-market EV models, including the EV2, EV4, and EV5, in key markets such as South Korea, North America, and Europe. The company aims to increase sales of these mass-market EV models from 131,000 units this year to 587,000 units by 2026, more than four times the current figure. In addition to affordable EVs, Song Ho-sung is targeting the global EV market with a diverse range of EV models, from compact cars to large SUVs. Kia’s first large electric SUV, the EV9, has sold about 13,900 units in the U.S. from January to August this year, driven by the high demand for large vehicles in the country. This helped Kia achieve its highest-ever monthly sales in the U.S. in August, with 75,217 units sold. Electrek, a U.S.-based electric vehicle media outlet, commented, "As Kia continues to launch affordable EVs such as the EV3 and EV4 globally, the brand will become a key competitor among the market leaders." At this year's CEO Investor Day, Song Ho-sung stated, "Through the launch of mass-market EV models like the EV3, we will lead the electric vehicle revolution," and expressed his ambition to "grow into a top EV brand through advanced battery technology and stable supply." #Kia #electricvehicle #EV5 #EV3 #SongHoSung #affordableEV #EVmarket #ChinaEVsales #globalEVstrategy #EV9
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- CJ CheilJedang Vietnam Factory Proves Export Success, Kang Sin-ho Tightens Global Production Hub Strategy
- Kang Sin-ho, Vice Chairman and CEO of CJ CheilJedang, is preparing to intensify the company's strategy of targeting overseas markets based on its global production hubs. CJ CheilJedang is not only localizing production facilities but also adopting a strategy of exporting to neighboring countries from major production hubs. With some tangible results now evident, the company is expected to accelerate efforts to expand its consumer market centered around these production hubs. According to CJ CheilJedang on the 20th, the success of "Bibigo Shrimp Dumplings" has proven the viability of the "Country to Country" (C2C) business model, which involves production and export between countries. Bibigo Shrimp Dumplings surpassed cumulative sales of 5 million units within nine months of its launch, generating over KRW 30 billion (US$ 21.6 million) in revenue based on consumer prices. This growth rate is faster than that of Bibigo's signature product, Bibigo King Dumplings, which achieved similar revenue in its first year. What stands out about Bibigo Shrimp Dumplings is that they are produced at CJ CheilJedang's Kizuna factory in Vietnam and then exported back to South Korea. This is the reverse of the traditional method, where products were manufactured domestically and sold overseas. CJ CheilJedang has established a plan to target the Asian market, where consumers are familiar with dumplings and similar foods, using the domestic market as a test bed. This C2C business model goes a step beyond mere localization of production facilities. For the company, this model offers the advantage of expanding into consumer markets that are geographically and culturally closer to production hubs. With many cases of neighboring countries forming joint economic zones, the C2C strategy is also advantageous in taking institutional benefits. For example, the Kizuna factory in Vietnam, where Bibigo Shrimp Dumplings are produced, can benefit from tariff advantages offered by the Association of Southeast Asian Nations (ASEAN) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In recent years, CJ CheilJedang has been focusing more on expanding its food business into overseas markets. With limited growth potential in the domestic market and a sluggish domestic economy, the company is compelled to seek breakthroughs abroad. Vice Chairman Kang Sin-ho is expected to further strengthen the C2C strategy based on global production hubs to meet this need. Kang, who previously served as head of the food division at CJ CheilJedang before moving to CJ Logistics, returned to CJ CheilJedang this year after a three-year hiatus. Given his extensive experience with CJ CheilJedang, he is well-suited to lead this strategy, which is being pursued at the corporate level. One of the markets Kang has his eye on is the halal food market in Muslim-majority regions. For example, in Southeast Asia, Indonesia (population 280 million) and Malaysia (population 35 million) are predominantly Muslim, making them a massive market of over 300 million people. These regions have shown a growing interest in Korean food, driven by a strong preference for Korean culture (K-culture), including K-pop. The halal business also has market expansion potential into the Middle East, the heartland of Islam. The C2C strategy is expected to play a crucial role in CJ CheilJedang's efforts to tap into the halal market. The Kizuna factory in Vietnam, CJ CheilJedang's production hub in the Asia-Pacific market, was designed from the start with a dedicated production line for halal foods and has obtained halal certification from both Indonesia and Malaysia. Earlier this year, CJ CheilJedang launched three types of halal-certified Bibigo dumplings (chicken, spicy chicken, and beef bulgogi) and two types of halal steamed buns (japchae and spicy chicken) produced in Vietnam, entering the Malaysian market. Starting with sales at CU convenience stores in Kuala Lumpur, Malaysia, the company is expanding its sales channels. CJ CheilJedang exports over 100 halal food products, including instant rice (Hetbahn), seaweed, kimchi, sugar, and flour, to Malaysia, Indonesia, the Middle East, Singapore, Thailand, and the Philippines. CJ CheilJedang is also implementing the C2C strategy in other regions. In North America, it seeks to enter the Canadian consumer market using its U.S. production hub. In Germany, its production hub serves as a base for targeting the European Union consumer market. Mandoo (dumplings) products produced at the German frozen food company Mainfrost, which CJ CheilJedang acquired in 2018, are sold in neighboring European countries such as the U.K., the Netherlands, and Belgium. A representative from CJ CheilJedang stated, "The C2C strategy is a key approach for expanding new territories for K-food. Unlike other domestic food companies, CJ CheilJedang has production bases in the U.S., Japan, Vietnam, Germany, and China, making this business model possible. The C2C strategy is most widely applied to our global strategic product, dumplings." #CJCheilJedang #KangSinHo #globalstrategy #C2C #Vietnamfactory #halalfood #Bibigo #foodexport #ASEAN #KFood
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- Hana Bank Eyes Strong Performance from 'Big Cut Effect', Lee Seung-lyul Aims for Leading Bank
- With the KRW/USD exchange rate stabilizing, expectations for Hana Bank’s second-half performance, which is highly sensitive to currency fluctuations, are growing. After conceding the lead to Shinhan Bank in the first half of this year, some view that Lee Seung-lyul, CEO & President of Hana Bank, may reclaim the top spot in light of favorable exchange rate trends. According to analysts' forecasts on the 20th, Hana Bank is expected to benefit from the decline in the KRW/USD exchange rate during the second half of the year. Choi Jung-wook, a researcher at Hana Securities, stated in a report on the 19th, "The likelihood of further decline in the KRW/USD exchange rate has increased. This would have a positive impact on foreign exchange gains, net interest margin (NIM), and capital ratios, providing substantial rebound momentum for Hana Financial Group, a representative currency-sensitive stock in the banking sector." Eun Kyung-wan, a researcher at Shinhan Investment Corp., also identified Hana Financial Group as the leading stock in the banking sector for the second half in a report issued in early September. He stated, "Despite limited asset growth, strong margin and asset quality management have led to solid performance, and the relatively favorable exchange rate trend is also a positive factor for earnings outlooks." Hana Financial Group is particularly seen as benefiting from the KRW/USD exchange rate decline because Hana Bank, which accounts for over 80% of the group’s earnings, is more sensitive to exchange rates compared to other banks. During its merger with Korea Exchange Bank, Hana Bank inherited a significant amount of foreign currency debt held by Korea Exchange Bank. As a result, when exchange rates rise, the debt is recognized as a large liability, leading to foreign exchange translation losses on the balance sheet. In fact, according to Hana Financial Group’s earnings reports, the group posted foreign exchange translation losses of KRW 81.3 billion (US$ 58.6 million) in the first quarter and KRW 47.4 billion (US$ 34.2 million) in the second quarter of this year. By contrast, in 2023, it recognized foreign exchange gains of KRW 77.1 billion (US$ 55.6 million), and in 2022, it posted gains of KRW 161.4 billion (US$ 116.4 million). This shows that the impact of exchange rate fluctuations can reach hundreds of billions of won. It is known that for Hana Financial Group, a KRW 10 movement in the exchange rate can cause pre-tax profit to fluctuate by KRW 10 to 12 billion (US$ 7.2 to 8.6 million). In this context, with the outlook for a declining exchange rate gaining traction, there are growing predictions that Hana Bank’s performance in the second half of the year may improve. The KRW/USD exchange rate already showed a sharp decline in the third quarter of this year, and due to the U.S. Federal Reserve’s (Fed) interest rate cuts, there are forecasts that the exchange rate could fall to the 1,200-won level. Choi Kwang-hyuk, a researcher at LS Securities, revised his forecast for the KRW/USD exchange rate to fluctuate between 1,250 and 1,370 won in the second half, lowering it by KRW 40 from the previous range of 1,290 to 1,410 won. As the current KRW/USD exchange rate hovers between 1,320 and 1,330 won, there is potential for it to drop by as much as KRW 80. With the exchange rate movement creating a favorable environment for Hana Bank, there is speculation that if Lee Seung-lyul tightens the reins on business expansion, which he had loosened slightly, he might reclaim the leading bank position that was handed over to Shinhan Bank in the first half. Last year, Lee also made a late push to become the leading bank. Although Hana Bank trailed KB Kookmin Bank in cumulative net profit through the third quarter of last year, it reversed the trend in the fourth quarter to retain its position as the leading bank in annual net profit. Hana Bank’s net profit in the first half of this year was KRW 1.7509 trillion (US$ 1.26 billion), placing it second behind Shinhan Bank, which led with KRW 2.0535 trillion (US$ 1.48 billion). Lee Seung-lyul is known to have opted for a measured approach to loan asset growth this year, focusing on managing asset quality. However, the stabilization of Hana Bank’s asset quality indicators over the first half of the year is considered a factor that could prompt Lee to resume expanding operations in the second half. As of the end of the second quarter, Hana Bank’s total loan delinquency rate was 0.27%, down 0.02 percentage points from the end of the first quarter. During the same period, both household and corporate loan delinquency rates also improved, with the household loan delinquency rate falling by 0.02 percentage points and the corporate loan delinquency rate by 0.01 percentage points. At the end of the second quarter, the ratio of non-performing loans to total loans stood at 0.23%, the lowest among the four major banks alongside Woori Bank. Given that financial regulators are closely monitoring household loans, which have surged to record levels, and that growth in household loans has slowed, the fact that this year’s leading bank status could hinge on corporate lending growth is seen as a favorable condition for Hana Bank. Corporate loan growth was a key driver behind Hana Bank’s previous leading position. Last year, Hana Bank’s corporate loan growth rate was 11.9%, the highest among the four major banks. Lee Seung-lyul became President of Hana Bank in January 2023 after serving as CFO of Hana Financial Group, Vice President of Hana Bank’s Corporate Planning Group and Social Value Group, and President of Hana Life Insurance. His term runs until the end of this year. #HanaBank #LeeSeunglyul #KRWUSD #exchangerates #financialperformance #corporatelending #HanaFinancialGroup #leadingbank #ShinhanBank #businessgrowth #currencyfluctuations
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- Chung Yong-jin’s Weapon to Elevate Shinsegae Group’s Status Like Lee Myung-hee?
- It has been half a year since Chung Yong-jin was promoted to Chairman of Shinsegae Group. Chung has been so focused on group management that he has even halted his social media activities, which he had maintained for over a decade, and stopped playing golf, his hobby. Some positive results have started to emerge, such as a recovery in Emart’s performance. However, many believe that Shinsegae Group cannot rest on its laurels, as the possibility of a future spinoff of the group looms large, increasing the burden on Chung’s shoulders. There is growing sentiment that as the future head of Shinsegae Group, Chung must secure more growth engines to expand the group's scope. On the 18th, industry insiders expressed concerns that, with Shinsegae Group’s business structure heavily reliant on retail, finding new avenues for growth is essential to maintain the group's stature in the next decade. Shinsegae Group’s current situation appears better than last year. Emart, which recorded its first-ever loss in 2022, returned to profitability in the first half of 2023 with an operating profit of KRW 12.5 billion (USD 9 million), a 131.7% increase year-on-year. The group also generated buzz with the openings of Starfield Suwon and Starfield Market Jukjeon, reinforcing its image as a dominant player in offline retail. However, doubts remain about whether Shinsegae Group can maintain its status as a major South Korean conglomerate in the future. Unlike its competitor, Lotte Group, which is more diversified, Shinsegae generates the majority of its revenue from retail. Given that the retail industry’s future growth is largely tied to population trends, concerns arise due to South Korea's declining birth rate and aging population. To address the challenges in the retail sector, Shinsegae Group has turned its attention to artificial intelligence (AI). In July, the group invited Andrew Ng, a renowned AI scholar from Stanford University, to give a lecture to more than 20 executives on “AI Market Changes and Retail Response Strategies.” Chung has emphasized the importance of digital transformation, stating in his 2022 New Year’s address, “Only complete ‘digital pivoting’ will allow us to be winners in the era of digital transformation.” Hosting a session on AI for the group's leadership aligns with this vision. However, how Shinsegae Group plans to leverage AI and digital transformation to achieve tangible results remains unclear. The importance of Chung’s future strategy is heightened by the potential for the group to undergo a spinoff. Shinsegae Group is essentially divided between Chung’s Emart and his sister, Chung Yoo-kyung’s, Shinsegae. The group’s Honorary Chairman, Lee Myung-hee, has already transferred most of her shares in both Emart and Shinsegae to her two children. She still holds a 10% stake in each company, while Chung Yong-jin holds 18.56% of Emart’s shares, and Chung Yoo-kyung holds 18.56% of Shinsegae’s shares. It is expected that Lee Myung-hee will eventually transfer her remaining Emart shares to Chung Yong-jin and her Shinsegae shares to Chung Yoo-kyung, which could lead to a formal spinoff of Emart and Shinsegae within the next decade. Shinsegae Group currently generates about two-thirds of its total revenue from Emart. To maintain his status as the head of the 11th-largest conglomerate in South Korea, Chung will need to increase Emart’s revenue to match the one-third contribution from Shinsegae. In 2022, Shinsegae posted sales of KRW 6.36 trillion (USD 4.59 billion) on a consolidated basis. Considering the increasing challenges in the retail industry, it seems difficult for Emart to generate an additional KRW 6 trillion in revenue through its subsidiaries. Some suggest that Chung should take bold steps, such as diversifying the group’s portfolio through mergers and acquisitions, similar to Lotte Group. Although Emart’s acquisition of Gmarket (formerly eBay Korea) for KRW 3.4 trillion (USD 2.46 billion) has faced lackluster performance, some argue that Shinsegae must continue to seek new business opportunities to secure its future. Looking at how Honorary Chairman Lee Myung-hee elevated Shinsegae Group’s rank within South Korea’s conglomerates, there is optimism that Chung Yong-jin could similarly preserve the group’s stature if he successfully identifies new growth drivers. When Shinsegae Group spun off from Samsung Group in 1997, it wasn’t even ranked among South Korea’s major conglomerates. However, within six years, Lee Myung-hee raised the group to the 22nd spot. Since 2017, Shinsegae Group has maintained its position as the 11th-largest conglomerate for eight consecutive years. #ChungYongjin #ShinsegaeGroup #Emart #businessstrategy #digitaltransformation #AIinRetail #corporatespinnoff #retailindustry #mergersandacquisitions #SouthKoreaconglomerate
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- Daewoo E&C Faces Profit Decline, Jung Won-ju Aims to Restore ‘Global Daewoo’ DNA
- Since Daewoo Engineering & Construction (Daewoo E&C) was acquired by Jungheung Group in December 2021, more than two years have passed. Jung Won-ju, the vice chairman of Jungheung Group, has personally taken on the role of chairman of Daewoo E&C, overseeing its operations. Under Jungheung's ownership, Daewoo E&C saw improvements in financial soundness and re-entered the top 3 in South Korea's construction capability rankings in 2023 for the first time in six years. However, with the domestic construction market slump and worsening cash flow, Daewoo E&C's operating profit halved compared to the previous year, signaling the need for a strong momentum to reverse this trend. According to Daewoo E&C’s business reports and filings analyzed on August 18, the company's operating profit in the first half of 2024 dropped by 44.3% year-on-year to KRW 219.6 billion (USD 158 million). In 2023, Daewoo E&C recorded an operating profit of KRW 662.5 billion (USD 476 million) on a consolidated basis, a 13.2% decrease from its first year under Jungheung Group, which had posted KRW 760 billion (USD 546 million) in 2022. Daewoo E&C’s cash and cash equivalents also declined, from KRW 1.423 trillion (USD 1.02 billion) at the end of 2022 to KRW 981.6 billion (USD 708 million) by the end of 2023, and further down to KRW 949 billion (USD 685 million) as of June 2024. Cash flow from operating activities, which had been negative KRW 423.1 billion (USD 305 million) at the end of 2022, worsened to negative KRW 832.8 billion (USD 600 million) at the end of 2023 and negative KRW 1.077 trillion (USD 777 million) in the first half of 2024. The decline in profitability and cash flow is attributed to the sluggish real estate market and soaring construction costs. In 2023, Daewoo E&C abandoned a project to build the Ulsan Donggu Ilsan Prugio due to poor sales and repaid a KRW 44 billion (USD 31.7 million) bridge loan for the project. To overcome these challenges, expanding its overseas business has emerged as a key solution for Daewoo E&C. This highlights the importance of Chairman Jung Won-ju’s leadership. Daewoo E&C is often seen as the last remaining vestige of the once-mighty Daewoo Group, known for its global management DNA and crisis resilience. Jung Won-ju has expressed his ambition to revive this legacy, aiming to grow Daewoo E&C into a global developer, echoing the "global management" philosophy once championed by Daewoo. At a company meeting on January 3, 2024, Jung emphasized the importance of not relying solely on construction contracts for profitability and growth. He highlighted the need for Daewoo E&C to become a developer that integrates both development and construction, especially in overseas markets. Jung’s efforts to awaken Daewoo’s dormant DNA are already yielding results. The company recently participated in "Team Korea," securing the contract for the Dukovany nuclear power plant in the Czech Republic. In Vietnam, it has also been approved as an investor in the Kien Giang new city development project in Thai Binh Province. Vietnam, in particular, is seen as a prime market for Daewoo E&C’s transformation into a global developer, building on the legacy of Kim Woo-jung, the late chairman of Daewoo Group, who left a significant footprint there. One notable example is the Starlake City project in Hanoi. The land for this project was secured by Kim Woo-jung in 1996, and it has since evolved into a key area in Hanoi. The project’s developer, THT Development, a subsidiary of Daewoo E&C, now owns 100% of the project after overcoming numerous challenges. The Starlake City project is expected to house 13 central government ministries by 2035, and key transport and logistics routes are being developed around the city. Diplomatic missions, including the South Korean Embassy, have already moved into the surrounding area. The experience gained from Starlake City is expected to be valuable for Daewoo E&C in its Kien Giang new city project in Thai Binh Province, which covers 963,000 square meters and will see KRW 390 million (USD 295 million) invested between 2025 and 2035. The project, for which Daewoo E&C has formed a consortium with Green I Park and South Korea’s Zenith, received investor approval on August 14, 2024. The project is seen as a key example of public-private cooperation, with officials from Korea Land and Housing Corporation (LH) expressing support for Daewoo E&C’s efforts in Vietnam, suggesting that government support could help accelerate the project. Jung Won-ju has actively worked to strengthen ties with Vietnamese leaders and officials through multiple visits since June 2022. He held individual meetings with Vietnamese President Nguyen Xuan Phuc during his state visit to South Korea in December 2022 and met with Prime Minister Pham Minh Chinh in July 2023 to discuss expanding business collaboration. Beyond Vietnam, Jung is also looking to secure projects in other regions. He is pursuing a major fertilizer plant project in Turkmenistan, which could help offset Daewoo E&C’s weak first-half performance, with the total project value expected to reach KRW 3 trillion (USD 2.16 billion). Jung has been actively involved in this project, meeting with Turkmenistan’s President Serdar Berdimuhamedow and other top officials in 2023. In addition, Jung has explored real estate development opportunities in North America. During his visit to Toronto and New York in April 2023, he announced plans to secure land for apartment projects in Toronto. Thanks to Jung Won-ju’s aggressive pursuit of overseas expansion, Daewoo E&C has maintained its position as the third-largest construction company in South Korea, behind Samsung C&T and Hyundai Engineering & Construction, for two consecutive years. Jung's leadership in international expansion is expected to continue. Following his reinstatement in August 2024, which lifted restrictions on his activities, Jung is free to focus fully on Daewoo E&C’s management. He recently reaffirmed his commitment to international growth by attending a partnership agreement ceremony with China State Construction Engineering Corporation (CSCEC) in Beijing to explore joint overseas projects. #DaewooE&C #JungWonju #JungheungGroup #constructionindustry #overseasexpansion #Vietnam #StarlakeCity #KienGiang #Turkmenistan #realestatedevelopment #publicprivatepartnership #globaldeveloper
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- UK Media Criticizes South Korean Tech Companies Over Kim Beom-soo's Arrest, “Resembling Chaebols”
- Foreign media have criticized South Korea's emerging tech companies for involving family members in management and engaging in overexpansion, arguing that these behaviors are not significantly different from traditional conglomerates (chaebols). On the 12th (local time), 'The Economist' reported, "The arrest of Kim Beom-soo, founder of Kakao and head of its Management Innovation Committee, clearly shows how Korea's tech giants are becoming increasingly similar to family-owned conglomerates." Kim Beom-soo was arrested by prosecutors on July 23 on charges of violating the Capital Markets Act. He is accused of approving actions as the top decision-maker at Kakao that allegedly obstructed a public tender offer from competitor HYBE during Kakao's acquisition of SM Entertainment in February 2023. This behavior has drawn criticism for being similar to that of traditional chaebol companies. At his first trial on the 11th, Kim Beom-soo reportedly denied these charges. 'The Economist' also drew a parallel between Kim Beom-soo and Samsung Electronics Chairman Lee Jae-yong, who was previously arrested on charges including stock manipulation, placing tech founders and chaebol leaders on the same level. Further criticism was raised over Kim Beom-soo appointing his spouse and younger brother to executive roles in companies essentially part of the Kakao group, mirroring how chaebol families run their businesses. This likely refers to K Cube Holdings, a company where Kim Beom-soo held 100% ownership. Both of his children also worked there at one time. Although Kakao grew into a tech company, its governance structure has been criticized for resembling that of traditional conglomerates where families control major corporations. Kim Yong-jin, a professor at Sogang University’s School of Business, described the situation to 'The Economist', likening it to "a feudal system." 'The Economist' also noted that since its founding in 2010, Kakao has established over 120 subsidiaries, following a business model similar to the sprawling expansion typical of large conglomerates. The publication added that it remains to be seen whether Kim Beom-soo will benefit from the South Korean government's common practice of pardoning convicted chaebol leaders. #Kakao #KimBeomSoo #TheEconomist #chaebol #capitalmarketsact #SMEntertainment #HYBE #corporategovernance #feudalsystem #overexpansion
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- Kyobo Life Faces Industry Downturn and Holding Company Transition, Shin Chang-jae's Weapon is ‘Digital’
- The domestic life insurance market is facing a crisis. The market has become saturated, and the demand for life insurance, particularly whole life insurance—the core product of the life insurance industry—has decreased due to demographic changes such as low birth rates and an aging population. Kyobo Life Insurance, in particular, faces an urgent need to enhance its competitiveness as it prepares to transition to a financial holding company next year. Shin Chang-jae, the owner and chairman of Kyobo Life Insurance, is seeking to overcome this crisis through a digital transformation. According to Kyobo Life Insurance on the 13th, Chairman Shin and his two sons are focusing on digital innovation to strengthen the company's insurance business competitiveness. Currently, Kyobo Life Insurance is operated under a dual management system, with Chairman Shin and Co-CEO Cho Dae-gyu each overseeing different business sectors. Shin is responsible for strategy, planning, and asset management, while Cho oversees the insurance business. As a result, the digital innovation project falls under the direct supervision of Shin. Shin’s two sons are also supporting the digital innovation efforts in key roles within Kyobo Life Insurance and its subsidiary, Kyobo Lifeplanet. His eldest son, Shin Jung-ha, after graduating from New York University, joined Kyobo Life’s subsidiary, KCA Loss Adjusters, in 2015. In 2021, he led the digital innovation and new business team at Kyobo Information & Communication, the IT subsidiary of Kyobo Life Insurance, and worked on digital operations strategy at Dplanix, another subsidiary. In 2022, he moved to the Group Digital Transformation division and has been serving as Head of Group Management Strategy and Head of the Group Data Task Force since April this year. The second son, Shin Jung-hyun, after graduating from Columbia University, joined the digital insurance company Kyobo Lifeplanet in 2020 as a manager in the Digital Strategy Department, eventually becoming the department head. Since April this year, he has been the head of the Digital Strategy Office. The fact that all three members of the Shin family are deeply involved in the digital innovation process stems from their belief that digital transformation is the only way to respond to the rapidly changing insurance market. In his New Year’s address this year, Chairman Shin highlighted the changes in the life insurance market environment, stating, “Only through innovation can we strengthen the competitiveness of the insurance business and lay the foundation for new business success.” He emphasized the importance of using digital technologies to provide greater value to customers. In his 2022 New Year’s address, he further elaborated, saying, “The ability to collect and utilize diverse data is the key to corporate innovation and growth in the digital era,” and proposed specific methods for digital innovation. Chairman Shin’s digital innovation efforts are directly strengthening Kyobo Life’s core insurance business. In July, Kyobo Life enhanced its app to allow customers, even those without insurance contracts, to easily access financial and health-related services, such as insurance analysis and asset management. In March, Kyobo Life developed "Kyobo TalkTalk," a mobile messenger-based customer support system that connects KakaoTalk with the company’s existing customer support systems, enabling seamless two-way communication between policyholders and consultants. In July of last year, Kyobo Life became the first in the insurance industry to introduce a generative AI system, "KyoboGPT," for use by its employees. Kyobo Life plans to further improve KyoboGPT and expand it into a customer-facing AI service. In its annual report released in March this year, Kyobo Life stated, “We will enhance our competitiveness by digitally transforming our entire insurance business,” and added, “Through this, we aim to meet customers' needs and provide differentiated customer experiences.” #KyoboLifeInsurance #ShinChangJae #digitaltransformation #insuranceindustry #KyoboGPT #AIinsurance #financialinnovation #KyoboLifeplanet #digitalstrategy #customerexperience
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- Hyundai Motor Forms Comprehensive Partnership with Rival GM, Chung Eui-sun Says "Partnership Will Strengthen Competitiveness"
- Hyundai Motor and General Motors (GM) are joining forces in various fields, including the development and production of passenger and commercial vehicles, internal combustion engines, clean energy, and electric and hydrogen technologies. Hyundai Motor announced on the 12th that Hyundai Motor Group Chairman Chung Eui-sun recently met with GM Chairman and CEO Mary Barra in the U.S. to sign a memorandum of understanding (MOU) to explore cooperation in vehicle technology, supply chains, and clean energy technologies. Through this agreement, Hyundai and GM plan to work together to reduce costs by leveraging their complementary scales and strengths, while also seeking ways to deliver a broader range of vehicles and technologies to customers more quickly. Both companies have set plans to further develop the details of their collaboration through comprehensive reviews following this MOU. Chairman Barra stated, "GM and Hyundai both have complementary strengths and talented teams," adding, "Our goal is to utilize the scale and creativity of both companies to provide competitive vehicles to customers more quickly and efficiently." Chairman Chung Eui-sun emphasized, "This partnership presents an opportunity for Hyundai and GM to strengthen their competitiveness in key markets and vehicle sectors," adding, "By combining expertise and innovative technologies, we will enhance cost efficiency and increase customer value." #Hyundai #GeneralMotors #ChungEuiSun #MaryBarra #CleanEnergy #ElectricVehicles #HydrogenTechnology #AutomotivePartnership #SupplyChain #Innovation
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- Hyundai E&C’s Yoon Young-joon VS POSCO E&C’s Chon Jung-son: Tight Race for Top Spot in Urban Redevelopment Again This Year
- Hyundai E&C CEO Yoon Young-joon and POSCO E&C CEO Chon Jung-son are expected to engage in a fierce battle for the top spot in new urban redevelopment project orders by the end of this year. Both Hyundai E&C and POSCO E&C have been emerging as leading players in the urban redevelopment market. Industry attention is focused on whether Yoon will maintain his six-year streak as the leader, or if Chon will claim the number one position in his first year as CEO. As of the 12th, the urban redevelopment industry reports that both Hyundai E&C and POSCO E&C have surpassed KRW 4 trillion in new orders this year, and the competition for first place is expected to continue until the end of the year. In this year’s race, POSCO E&C has taken the lead while Hyundai E&C is closely following. On August 31, POSCO E&C secured the redevelopment project for Gilum District 5 in Seongbuk-gu, Seoul (KRW 284.8 billion) and the remodeling project for Mae Hwa Village Phase 2 in Seongnam, Gyeonggi-do (KRW 554.4 billion), making it the first company to surpass KRW 4 trillion in new orders. Hyundai E&C followed on September 8 by winning the contract for the Goejeong District 5 redevelopment project in Saha-gu, Busan (KRW 719.7 billion), becoming the second company to exceed KRW 4 trillion in new orders. Looking back at the beginning of the year, POSCO E&C outpaced others by securing the redevelopment project for Promotion District 2-1 in Busan (KRW 1.3274 trillion) in January, overtaking Samsung C&T. After crossing KRW 1 trillion, POSCO E&C was the first to reach KRW 2 trillion and KRW 3 trillion. Hyundai E&C started its race in March with the urban environment redevelopment project for Jung District 2 in Seongnam, Gyeonggi-do (KRW 678.2 billion), followed by securing the reconstruction project for Hanyang Apartments in Yeouido, Seoul (KRW 774 billion), where it outbid POSCO E&C. Since then, Hyundai E&C has been steadily chasing POSCO E&C. As of the latest figures, POSCO E&C has secured KRW 4.7191 trillion in new urban redevelopment orders, while Hyundai E&C has accumulated KRW 4.0258 trillion. Considering that other major construction companies, such as Lotte E&C, Samsung C&T, and Daewoo E&C, have achieved new orders worth around KRW 1.5 trillion, it is clear that this year’s competition for first place is between Hyundai E&C and POSCO E&C. The rivalry between the two companies is also a clash of leadership styles, as Yoon Young-joon is in his fourth year as CEO of Hyundai E&C, and Chon Jung-son has just started his first year as CEO of POSCO E&C. Yoon, now in his fourth year, is aiming to extend Hyundai’s five-year streak of topping the urban redevelopment order rankings to six years. Known for his expertise in the housing sector, Yoon has the opportunity to further solidify Hyundai E&C’s dominance in the market. In March, Yoon personally visited the site of the Hanyang Apartments project in Yeouido ahead of the final contractor selection meeting and pledged to build a "landmark with a significant lead," leading to Hyundai’s success in securing the project. On the other hand, Chon Jung-son, who became CEO of POSCO E&C this year, is proving to be a strong contender despite initial expectations. As a finance and strategy expert with no prior experience in construction, many in the industry expected Chon to take a cautious approach to securing new orders amid uncertain market conditions. However, Chon has been emphasizing selective bidding and has achieved excellent results in terms of project scale. Hyundai E&C has held the top spot since 2019, while POSCO E&C has secured more than KRW 4 trillion in new orders each year since 2021. Their competition for first place has been a consistent feature of the industry in recent years. Excluding 2022, when Hyundai E&C set a record with over KRW 9 trillion in new orders, the gap between the two companies has remained within KRW 1 trillion each year since 2020. Last year’s competition was especially fierce, with Hyundai E&C securing the remodeling project for Gongjak Buyeong Apartments in Anyang, Gyeonggi-do (KRW 290.8 billion) on December 30, resulting in a last-minute reversal in the rankings. This year, the competition between Yoon and Chon for the top spot is expected to remain unpredictable until the year’s end. However, the key factor in this year’s race may not be intense bidding wars but rather whether the selection processes for key projects of interest to both companies are completed by the end of the year. Due to ongoing sole bidding and eventual private contracts, project timelines remain uncertain. The construction industry has seen a trend of avoiding competitive bidding to prevent losses, which has intensified this year. Since the start of the year, there have only been two major bidding wars between large construction companies: for the Promotion District 2-1 project in Busan and the Hanyang Apartments project in Yeouido, Seoul. Both projects began their selection processes last year. When comparing the projects that Hyundai E&C and POSCO E&C are interested in, Hyundai appears to have an edge in terms of the size of new orders expected this year. Hyundai E&C is targeting projects such as the Mia District 9-2 reconstruction project in Gangbuk-gu, Seoul (KRW 600.5 billion), the Sinbanpo Phase 2 reconstruction project in Seocho-gu, Seoul (KRW 1.2831 trillion), and the Yeonsan District 5 reconstruction project in Yeonje-gu, Busan (estimated at KRW 1.4 trillion). Hyundai E&C is the sole bidder for both the Mia District 9-2 and Sinbanpo Phase 2 projects, making it highly likely to secure both contracts. Hyundai has also expressed interest in the Yeonsan District 5 project, although no companies participated in the first bid after the site briefing. Meanwhile, POSCO E&C is interested in projects such as the Samho Garden Phase 5 reconstruction project in Seocho-gu, Seoul (KRW 213 billion) and the redevelopment of the east side of Anyang Sports Complex in Gyeonggi-do (estimated over KRW 500 billion). The Samho Garden Phase 5 project was canceled due to a lack of participating companies in the first bid, but the industry expects a possible bidding war between POSCO E&C and SK Ecoplant. The redevelopment of Anyang Sports Complex has gone through two rounds of unsuccessful bidding, and the association is now pursuing a private contract process. An industry insider commented, “Although private contracts are becoming more common in the urban redevelopment market, as the year-end approaches, competition between construction companies for new orders could still intensify at certain project sites.” #HyundaiE&C #POSCOE&C #YoonYoungjoon #Chon Jung-son #urbanredevelopment #constructionindustry #neworders #redevelopmentprojects #realestatemarket #constructioncompetition
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- Shinhan Life's Lee Young-jong Sees Strong Performance, Reappointment Likely; Shinhan EZ General Insurance's Kang Byeong-gwan Faces Uncertainty Amid Poor Results
- As Shinhan Financial Group begins the succession process for the CEOs of its subsidiaries whose terms are set to expire, attention is focused on the potential reappointment of Lee Young-jong, CEO of Shinhan Life, and Kang Byeong-gwan, CEO of Shinhan EZ General Insurance, both of whom are up for consideration. Shinhan Life has continued to post strong performance under the leadership of CEO Lee Young-jong, and the company is also preparing to enter the senior care business, which increases the likelihood of his reappointment. Lee Young-jong’s term as CEO of Shinhan Life expires in December of this year. However, with continued strong performance and plans for new business ventures, there is speculation that his management success will lead to his reappointment. On the other hand, Shinhan EZ General Insurance has struggled with underperformance, leading to uncertainty about the reappointment of CEO Kang Byeong-gwan. However, considering that Shinhan EZ General Insurance is a relatively new digital insurer, there is speculation that Kang may be given another opportunity to improve performance. According to Shinhan Financial Group on the 12th, the group's CEO Recommendation Committee held a meeting on the 10th to begin the succession process for the CEOs of 12 affiliates. Both Lee and Kang, whose terms expire on December 31, were included in the review, but their contrasting company performances are reflected in differing outlooks for their reappointments. The strong performance of Shinhan Life is seen as bolstering Lee’s chances of reappointment. In his first year as CEO in 2023, Lee managed to increase Shinhan Life’s operating revenue, operating profit, and net profit by 1.2%, 19.6%, and 5.1% respectively compared to the previous year. The positive momentum continued in the first half of this year, with net profit increasing by 0.4% year-over-year to KRW 312.9 billion. Lee is also preparing to enter the senior care market, seen as a new growth driver for Shinhan Life. This further strengthens the case for his reappointment, with the insurance industry noting the importance of continuity in the company’s business direction. Lee’s deep understanding of the Shinhan Life organization is another factor in favor of his reappointment. Lee, a strategic expert at Shinhan Financial Group, previously served as head of the strategic planning team and played a key role in the acquisition of Orange Life. He later became CEO of Orange Life and led the integration of Shinhan Life and Orange Life. After the integration, Lee served as head of Shinhan Life's strategic planning group and became CEO of Shinhan Life in January 2023, leading the company since then. Kang Byeong-gwan, CEO of Shinhan EZ General Insurance, is facing challenges due to poor company performance, but some believe he could still be reappointed due to the unique nature of his role as head of a digital insurer and the fact that he was brought in early in the company’s founding. However, the burden of Shinhan EZ General Insurance’s poor performance clouds the outlook for Kang’s reappointment. Since its establishment in 2022, Shinhan EZ General Insurance has struggled with losses. The company reported a net loss of KRW 12.7 billion in 2022, KRW 7.8 billion in 2023, and KRW 6.1 billion in the first half of this year. Despite these losses, some in the insurance industry speculate that Kang may be given another year to turn things around. Kang was recruited from Samsung Fire & Marine Insurance at the time of Shinhan EZ General Insurance's founding. Given his efforts to lay the groundwork for improving performance, it is possible that he may be reappointed and given another chance to address the company’s underperformance. Digital insurance companies like Shinhan EZ General Insurance face structural challenges, such as relying on online sales and focusing on short-term, small-scale products, which make it difficult to improve performance. Kang’s extensive experience in the insurance industry and his relatively younger age as a CEO are also considered strengths, making him well-suited to lead a digital insurer that needs to respond quickly to change. Born in 1977, Kang graduated from Pohang University of Science and Technology and holds a master’s degree in mathematics from New York University. He worked at Samsung Fire & Marine Insurance, where he led efforts to establish a digital general insurance company and helped build an integrated platform for Samsung’s financial subsidiaries before joining Shinhan Financial Group. He later led the task force for the acquisition of BNP Paribas Cardif General Insurance and became the first CEO of Shinhan EZ General Insurance. #ShinhanLife #LeeYoungjong #ShinhanEZGeneralInsurance #KangByeonggwan #ShinhanFinancialGroup #insuranceindustry #digitalinsurance #CEOreappointment #financialperformance #insuranceexpansion #businessleadership
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- 'Giant' Mirae Asset's Park Hyeon-joo, Relentlessly Marching Toward a Global Investment Bank
- The overseas expansion of domestic financial companies is regarded as a necessity, not an option. This is because the domestic financial market is considered to have reached its growth limit due to the slowdown in economic growth, aging population, and concerns over household debt. Among domestic financial companies, Mirae Asset Group stands out as the most proactive in its overseas business efforts. Park Hyeon-joo, chairman of Mirae Asset Group, turned his attention overseas early on, even during challenging times, to build competitiveness in the global market. At the end of last year, he launched a second-generation management system focused on overseas business, preparing for a new leap forward. As of the first half of the year, according to the financial investment industry, Mirae Asset Securities operates 12 overseas subsidiaries and 3 overseas offices, totaling 15 international locations, the most among domestic securities firms. Following Mirae Asset Securities are Korea Investment & Securities (11 locations), NH Investment & Securities (8 locations), KB Securities (6 locations), Shinhan Investment Corp. (6 locations), Samsung Securities (5 locations), and Hana Securities (1 location). There has been a constant call for the need for overseas expansion in the domestic securities industry, which is already saturated. In particular, comprehensive financial investment firms (CIFs) with equity capital of over KRW 3 trillion have been criticized for being overly confined to the domestic market, despite their large size. There has been a strong push for these firms to expand abroad and grow into global investment banks. Although both the Korea Financial Investment Association and financial authorities have promised support and emphasized the importance of overseas expansion for domestic securities firms, significant results have yet to materialize. Park Hyeon-joo’s efforts to expand Mirae Asset Group overseas are starting to bear fruit. Last year, among the nine CIFs (Mirae Asset Securities, Korea Investment & Securities, NH Investment & Securities, Samsung Securities, KB Securities, Meritz Securities, Shinhan Investment Corp., Hana Securities, and Kiwoom Securities), only Mirae Asset Securities increased its overseas presence. Other CIFs either maintained or reduced their overseas operations. Mirae Asset Securities' confidence in this decision seems to stem from the fact that its overseas subsidiaries have started generating substantial profits. In the first half of the year, Mirae Asset Securities’ pre-tax profit from its overseas subsidiaries reached approximately KRW 60 billion. The total net profit of its Hong Kong, London, and U.S. subsidiaries was KRW 27.5 billion, while its subsidiaries in Brazil, Vietnam, Indonesia, and India collectively generated a net profit of KRW 30.7 billion. Other regions recorded a net profit of KRW 1.7 billion. Notably, profits were evenly distributed across various regions, with particularly strong performances in emerging markets. Mirae Asset Group’s success overseas is not limited to its securities business. Mirae Asset Global Investments has also achieved significant results in its overseas ventures. As of the end of July this year, Mirae Asset Global Investments' total assets under management (AUM) reached KRW 360 trillion, of which approximately 43% (KRW 156 trillion) was managed overseas. Mirae Asset Global Investments has aggressively expanded its overseas business through acquisitions, starting with the purchase of the Canadian ETF firm ‘Horizons ETFs’ in 2011, followed by the acquisition of the U.S. firm ‘Global X’ in 2018 and Australia’s ‘ETF Securities’ in 2022. On September 9th, Mirae Asset Global Investments held a ‘Nasdaq × TIGER ETF Seminar’ in Jongno-gu, Seoul. This was the first seminar hosted by Mirae Asset Global Investments in partnership with Nasdaq, targeting global investors. At the event, they introduced the world's first AI semiconductor stock index, the 'U.S. AI Philadelphia Semiconductor Index (ASOX).' There is growing recognition that Park Hyeon-joo's efforts are coming to fruition. Even during the 2008 financial crisis, Park did not withdraw overseas operations and remained committed to expanding abroad. After moving to serve as Mirae Asset Group’s Global Strategy Officer (GSO) in 2018, he continued to lead the group’s overseas expansion efforts. In particular, at the end of last year, with the launch of the second-generation management system, Mirae Asset Securities appointed Kim Mi-seop, a global expert, as CEO and promoted Swarup Mohanty, the head of Mirae Asset Global Investments India, to Vice Chairman, further emphasizing its commitment to overseas business. Currently, India is seen as the market where Park is most focused. Last year, Mirae Asset Securities signed an agreement to acquire Sharekhan, a top-10 Indian brokerage firm. Sharekhan is the 9th largest brokerage in India, with 3,500 employees and 3.7 million client accounts. It has a solid network with over 130 branches across 400 regions in India and more than 5,000 business partners. The promotion of Swarup Mohanty as Vice Chairman at the end of last year, the first foreign vice chairman in the group, further highlights Park’s dedication to the Indian market. Mirae Asset Securities expects its overseas pre-tax profit to grow to KRW 642.2 billion by 2030, with about half of this expected to come from India. In addition, Mirae Asset Securities has achieved strong results in Indonesia, maintaining the No. 1 market share in stock brokerage among 90 securities firms from 2020 to 2023. Mirae Asset Securities is expected to generate about KRW 300 billion in net profit from the Indian market in the future. Park’s foresight in laying the foundation early in emerging markets, where global investment banks have relatively low market share, is now paying off. In recognition of these achievements, Park was awarded the prestigious 'International Businessperson of the Year' award at the 'Academy of International Business (AIB) 2024 Seoul' event in July this year. He is the first Asian financial professional to receive this honor. Park recalled that his experience studying in the U.S. had a significant influence on his decision to pursue overseas expansion. After founding Mirae Asset Group, he went to UC Berkeley in the U.S. to study English just three years later. At the International Businessperson of the Year award ceremony, Park said, “Through my overseas experience, I realized how important it is to diversify investments beyond just the Korean stock market to include overseas markets as well.” This led to the launch of the Park Hyeon-joo Fund, which is based on diversified investment. Although Mirae Asset Group has begun to see positive results overseas, it is expected that Park will continue to push forward in completing the group's transformation into a global investment bank. One official who worked closely with Park during Mirae Asset Group's entry into Japan recalled, “Chairman Park never took a day off, even on weekends. If there was something he was curious about, he would call late at night, and this dedication led to Mirae Asset Group's entry into Japan.” #MiraeAsset #ParkHyeonjoo #globalexpansion #securities #overseasinvestment #India #emergingmarkets #GlobalX #ETFs #investmentbanking #financialmarkets
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- CJ Group Chairman Lee Jay-hyun's Emphasis on 'Co-Prosperity Management' at Risk of Losing Credibility
- CJ Group is grappling with controversies surrounding unfair practices by its affiliates. Although CJ Group has implemented various co-prosperity programs in line with Chairman Lee Jay-hyun's "co-prosperity management" philosophy, which emphasizes shared growth with small and medium-sized partner companies and franchisees, the group now faces allegations of unfair practices that threaten to undermine the efforts it has made thus far. According to the distribution industry on the 11th, while the Fair Trade Commission (FTC) is investigating allegations of abuse of power by CJ Olive Young, there are growing expectations that, if the allegations are confirmed, the penalties could be harsher than last year. CJ Olive Young is suspected of pressuring purchasing managers from small and medium-sized suppliers who do business with its competitor, Musinsa, to avoid participating in Musinsa's promotional events. After receiving reports of the allegations, the FTC initiated an investigation. On the 10th, the FTC sent inspectors to CJ Olive Young's headquarters in Yongsan-gu, Seoul, to conduct an on-site investigation and examine documents related to supplier contracts. Last year, CJ Olive Young faced a similar investigation by the FTC. At that time, CJ Olive Young was found guilty of coercing suppliers into exclusive participation in its events, failing to return prices to normal after promotional events, and unfairly charging fees for processing information. As a result, the FTC imposed corrective orders and a fine of KRW 1.896 billion (US$ 1.37 million). The company avoided more severe penalties last year because the FTC did not conclude its review of whether CJ Olive Young abused its market dominance, a key issue. If market dominance had been recognized, some analysts predicted that CJ Olive Young could have been fined several hundred billion won based on its sales volume and the relevant time period. However, since similar allegations have resurfaced, CJ Olive Young could face heavier penalties if the FTC confirms the allegations this time. Another CJ Group affiliate, CJ Freshway, was fined KRW 24.5 billion (US$ 17.67 million) last month for allegedly providing illegal support to its subsidiary. The FTC found that CJ Freshway supported its food distribution subsidiary, Fresh One, by providing personnel and paying their wages (worth approximately KRW 33.4 billion), thus helping Fresh One gain a dominant position in a market largely composed of small and medium-sized businesses. Given that CJ Freshway's operating profit in the second quarter of this year was KRW 30.1 billion (US$ 21.72 million), the fine is nearly equivalent to the company's operating profit for one quarter. Fresh One has responded by arguing that the food distribution market consists primarily of small and medium-sized businesses, and its market share is far from dominant. The company plans to explain its position through an administrative lawsuit. With multiple affiliates embroiled in unfair practice controversies, CJ Group is under significant pressure. Even if the investigations are not yet complete, the group could face both tangible losses in the form of fines and intangible losses, such as damage to its corporate image, simply due to the allegations. Since CJ Group operates a large number of B2C (business-to-consumer) businesses, corporate image is particularly important. Although consumer boycotts have not yet gained significant traction against CJ Group, similar companies in the food and retail sectors have faced direct harm from consumer boycotts in the past. Given CJ Group’s business structure, which involves many partnerships with suppliers and franchisees, there are frequent opportunities for disputes over fairness in business practices to arise. This is why CJ Group has consistently emphasized co-prosperity management. As part of its co-prosperity efforts ahead of this year’s Chuseok holiday, CJ Group plans to make early payments of KRW 580 billion (US$ 418 million) to over 3,700 small and medium-sized partner companies—the largest amount in its history. On the 10th, CJ Group Chairman Lee Jay-hyun visited CJ Olive Young’s headquarters in Yongsan-gu, Seoul, to encourage front-line employees. During his visit, Lee stated, “The foundation of the distribution industry is co-prosperity and shared growth. A company that forces its partners to suffer losses cannot grow.” Chairman Lee Jay-hyun has long emphasized co-prosperity management. In a meeting with CJ Olive Young employees on January 11 this year, Lee reiterated that “the foundation of the distribution industry is co-prosperity and shared growth. A company that forces its partners to suffer losses cannot grow.” This visit marked Lee's first on-site visit to an affiliate in nearly five years, and it underscored his commitment to co-prosperity management. Earlier, on November 3, 2021, Lee announced CJ Group’s mid-term vision through an internal broadcast, stating, “Our affiliates must strongly promote future innovation and growth based on wellness, sustainability, and the global trend of ESG (Environmental, Social, and Governance) management, ensuring that everyone prospers while rejecting unfair practices and power abuse.” He emphasized that co-prosperity management was essential for the group's future. Following Chairman Lee’s management principles, CJ Group’s affiliates have conducted various activities aimed at fostering shared growth with small and medium-sized partners. These efforts include direct financial support, as well as programs designed to help partners develop new sales channels and support marketing efforts. However, with its affiliates now entangled in unfair practice controversies, CJ Group finds itself in a difficult situation. A CJ Olive Young representative stated, “We are deeply regretful that recent controversies involving our partners have surfaced, and we will cooperate fully with the ongoing investigation and take necessary actions.” A CJ Fresh One representative added, “The food distribution market can be considered a large-scale market worth KRW 64 trillion, depending on how it is defined, and it includes many different types of businesses. It is therefore impossible to say which company dominates the market. For now, our stance remains unchanged, and we will explain our position through administrative litigation.” #CJGroup #LeeJayHyun #coProsperityManagement #CJOliveYoung #unfairpractices #FairTradeCommission #ESGmanagement #CJFreshway #corporateethics #Koreanbusiness
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- Will Shinhan Financial's Jin Ok-dong Continue His Long Tenure This Year? Profitability Could Affect Leadership Changes
- Shinhan Financial Group Chairman Jin Ok-dong has begun selecting the next executives who will lead the group's subsidiaries during the latter half of his term. Last year, during his first year in office, Chairman Jin reinforced responsible management by retaining all subsidiary CEOs, stating that "you don't change generals during a war." However, with the new variable of "value-up" emerging this year, it is speculated that Jin may broaden the scope of executive changes with a focus on profitability. On the 2nd of this month, Jin Ok-dong, Chairman of Shinhan Financial Group, responded to employee questions at a talk concert held at Shinhan Financial's headquarters in Jung-gu, Seoul. According to Shinhan Financial on the 11th, the group's CEO Nomination Committee held a meeting the day before and began succession planning for 12 subsidiary CEOs. The results are expected to be announced around early December. The focus will be on 12 subsidiary CEOs whose terms expire between the end of this year and early next year. This includes CEOs from Shinhan Bank, Shinhan Card, Shinhan Life, Shinhan Capital, Jeju Bank, Shinhan Savings Bank, Shinhan Asset Trust, Shinhan DS, Shinhan Venture Investment, Shinhan REITs Management, Shinhan Fund Partners, and Shinhan EZ General Insurance. The CEOs of Shinhan Bank, Shinhan Card, and Shinhan Life, which are key subsidiaries of Shinhan Financial, are expected to remain in their positions. Jeong Sang-hyuk, CEO of Shinhan Bank, Moon Dong-kwon, CEO of Shinhan Card, and Lee Young-jong, CEO of Shinhan Life, have all achieved excellent results and have been supporting Shinhan Financial since their appointment early last year. Typically, CEOs of financial group subsidiaries serve a term of 2+1 years. Since reappointment is highly likely, market attention is focused on whether Chairman Jin will break with tradition and extend their terms by two years instead of one. At the end of last year, Jin gave Kim Sang-tae, CEO of Shinhan Investment & Securities, and Cho Jae-min, President of Shinhan Asset Management, 2+2 year terms, signaling a strong message of responsible management. However, given that Jin’s term runs until March 2026, it is more likely that the CEOs of the bank, card, and life insurance subsidiaries will receive only a one-year extension to align with his term. The atmosphere in other subsidiaries is quite different from that of the major subsidiaries, as their visible performance has not been as strong. In the first half of this year, Shinhan Savings Bank, Shinhan Capital, Shinhan EZ General Insurance, and Jeju Bank all struggled to overcome difficult business conditions, posting poor results. Shinhan EZ General Insurance continued to suffer a net loss, while the net profits of Shinhan Capital, Jeju Bank, and Shinhan Savings Bank fell by 43%, 29%, and 27%, respectively, compared to the previous year. Although Lee Hee-soo, CEO of Shinhan Savings Bank, Jeong Un-jin, CEO of Shinhan Capital, and Park Woo-hyuk, CEO of Jeju Bank, were reappointed at the end of last year, with Chairman Jin's trust, they now face a precarious situation. Since they have either completed their three-year terms (2+1 years) or surpassed them, there is a possibility that Chairman Jin will aim for a renewal by making changes. If a reshuffle takes place, it could signal Jin’s intention to establish his own leadership style, as these executives were appointed during former Chairman Cho Yong-byeong's tenure. This upcoming reshuffle is expected to serve as an indicator of Shinhan Financial's future strategy, particularly in non-banking sectors. Chairman Jin may also use this reshuffle to send a message to the market about his goal to improve the group’s profitability. Shinhan Financial's stock price has recently soared amid a "value-up" boom, and the group cannot afford to miss this momentum. As of September 10, Shinhan Financial's stock price had risen 17.5% since the start of the third quarter (from June 28 to September 10), significantly outpacing Woori Financial (6.19%), KB Financial (5.60%), and Hana Financial (1.31%). At the start of this year, Shinhan Financial's stock price lagged behind KB Financial and Hana Financial due to concerns about potential overhang (excess supply of shares). This reshuffle is also expected to provide insights into Shinhan Financial's non-banking portfolio strategy. From Shinhan Financial’s perspective, while Shinhan Bank performed well in the first half, ranking first in net profit among banks, the outlook for the non-banking sector has become critical with interest rate cuts on the horizon. Given that Chairman Jin has recently emphasized focusing on current business operations rather than new ventures, this round of executive appointments is of great significance. During a talk concert marking the group's 23rd anniversary on the 2nd, he reiterated his intention to concentrate on existing business activities. Personally, as Chairman Jin approaches the halfway point of his term, next year’s performance—effectively his last year—will be crucial. Jin's term runs until March 2026, leaving about a year and a half remaining. Chairman Jin has been emphasizing value enhancement and working to strengthen the resolve of employees. At the 23rd-anniversary talk concert, he stated, "The recently announced plan to enhance corporate value is the minimum goal we must achieve for our survival," adding, "In order to further elevate Shinhan’s value, we must all recognize our current position clearly and approach challenges with a sense of urgency." #ShinhanFinancial #JinOkDong #leadershipchange #subsidiarymanagement #valuegrowth #bankingprofitability #CEOappointments #nonbankingstrategy #Koreanfinance #Shinhanstock
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- Hyundai Motor Group: "No Retreat on EVs", Chung Eui-sun’s Steadfast Leadership to Overcome the 'Chasm'
- As the global electric vehicle (EV) market faces a temporary demand stagnation or 'chasm,' automakers are revising their EV-related targets. However, Hyundai Motor Group Chairman Chung Eui-sun has maintained confidence in the inevitable growth of EV demand and has continued with aggressive investments in the sector, despite other global automakers slowing their pace. Chung has focused on preparing for long-term EV success by ensuring production capacity and a diverse EV lineup, positioning Hyundai for a new leap forward in the EV era. From January to July 2023, EV sales in Europe (EU, EFTA, UK) only grew by 0.6% year-on-year, compared to 62.4% growth during the same period in 2022. In the U.S., first-half 2023 EV sales increased by only 7.3%, down sharply from 47% growth in the first half of 2022. In South Korea, the situation is more dire, with EV sales falling by 16.5% in the first half of 2023 compared to the same period last year. In 2022, South Korea was the only major auto market to experience negative EV sales growth, down by 1.1%. In response to this global EV slowdown, many automakers have revised their EV roadmaps. Volvo, for instance, scrapped its plan to sell only battery electric vehicles (BEVs) by 2030, opting instead for 90-100% of sales to be a mix of BEVs and plug-in hybrid vehicles (PHEVs). Toyota lowered its target of selling 1.5 million EVs annually by 2026 to 1 million, while Mercedes-Benz cut its plan for 100% EV sales by 2030 to 50%. General Motors also withdrew its goal of selling 1 million EVs annually by 2025 and postponed production of electric pickups. In contrast, Hyundai Motor and Kia have retained their ambitious EV sales goals for 2030. Hyundai plans to sell 2 million EVs globally by 2030, comprising 36% of its total vehicle sales, while Kia targets 1.6 million EV sales, making up 38% of its total. Chung, during a groundbreaking ceremony for Hyundai’s EV-dedicated plant in Ulsan in November 2022, reaffirmed his commitment to aggressive investment in EVs, stating, “In the bigger picture, EV demand will inevitably grow, so we’ll utilize our operational strengths to navigate this period.” Under Chung's leadership, Hyundai Motor Group has accelerated the completion of its EV-dedicated plant in Georgia (Hyundai Motor Group Metaplant America, HMGMA) and the Ulsan plant, and has adhered to its EV launch schedule. While Hyundai has lowered its 2026 EV sales target from 940,000 to 841,000 units, Kia has increased its target from 1 million to 1.147 million units by 2027, balancing the overall group's sales goals. Hyundai and Kia are employing a division of focus in their strategies during the EV transition. Hyundai will emphasize hybrid vehicles, planning to increase its lineup from seven to fourteen models, including five new hybrid models under the Genesis brand. The goal is to sell 1.33 million hybrid vehicles by 2028, a 40% increase over last year's target. To compensate for the potential loss of EV sales due to this focus on hybrids, Hyundai plans to introduce Extended Range Electric Vehicles (EREVs). EREVs are powered by electric motors, with internal combustion engines generating electricity to recharge the battery. Hyundai expects EREVs to have a driving range of over 900 kilometers per charge, with production starting in late 2026 for the North American and Chinese markets. Meanwhile, Kia aims to tackle the global EV market slowdown head-on with affordable, high-value electric models. Starting with the recently launched EV3 in South Korea, Kia plans to release six EV models, including the EV2, EV4, and EV5, in major markets such as Korea, North America, and Europe. Kia’s goal is to grow its sales of these mass-market EV models from 131,000 units in 2023 to 587,000 units by 2026. A Hyundai Motor Group official stated, “We plan to gradually expand our EV lineup, including EREVs, by 2030, when we expect electrification demand to recover. We aim to lead the market by providing consumers with a wide range of choices during the EV era.” #ChungEuisun #HyundaiMotorGroup #Kia #EVMarket #ElectricVehicles #EREV #HybridVehicles #EVSales #HMGMA #EVInvestments #GlobalAutoMarket #ElectricCar
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- Naver's Growth Slows, Choi Soo-yeon Aims for Breakthrough with Naver's AI
- Choi Soo-yeon, CEO of Naver, took the helm in 2022 with a mandate to revitalize the organization and secure long-term growth by exploring new business ventures. Since her appointment, Choi has prioritized expanding global operations and developing AI-based new businesses as key challenges. According to IT industry sources on the 10th, Naver’s need for new growth engines has become more pressing as the growth of its long-standing core businesses, such as search and advertising, has slowed. Since Choi took office in March 2022, Naver has achieved record earnings. Over her two-year tenure, the company’s revenue grew by 42%, reaching KRW 9.6706 trillion (USD 6.97 billion) in 2023, while operating profit increased by 12%. For the first half of 2024, Naver’s revenue reached KRW 5.1365 trillion (USD 3.7 billion), and the company is expected to surpass KRW 10 trillion (USD 7.2 billion) in annual revenue this year. However, Naver’s stock price has declined from KRW 300,000 when Choi took office to around KRW 150,000 currently. While Naver was once considered a "national stock" during the COVID-19 boom, the current decline reflects concerns about future growth rather than current strong performance. Naver’s once double-digit revenue growth has also slowed. From 2019 onward, the company's average annual growth rate exceeded 20%, but by the second quarter of this year, it had fallen to 8.4%. This decline is primarily attributed to the search platform (advertising) and commerce divisions, which accounted for 37% and 26% of revenue in 2022, respectively. Although Naver continues to generate stable profits from its core businesses, there are concerns about future growth due to reduced consumer spending and intensified competition in the e-commerce market. Choi is now tasked with identifying new growth drivers for Naver as its high-growth period comes to an end. Her appointment as CEO in 2022, bypassing other executives and affiliates, was considered bold. Many viewed the appointment of a young leader in her 40s as a sign that Naver was committed to cultural reform and long-term growth. Choi herself remarked at the time, "I was appointed CEO to take on far greater challenges." Choi is looking beyond the domestic market to find growth opportunities abroad. She has set a goal to achieve 1 billion global users and KRW 15 trillion (USD 10.8 billion) in revenue within five years. As part of her growth strategy, Choi oversaw Naver’s acquisition of the U.S. online fashion platform Poshmark in 2022. Leveraging the Line platform for its overseas business, Naver plans to accelerate international expansion, particularly as tensions between Japan and South Korea surrounding Line Yahoo subside. In addition to global growth, Choi is focused on strengthening Naver’s AI business, which is expected to be a core future industry. As AI’s global impact grows, major IT companies are investing heavily in AI technology development. U.S. Big Tech firms alone invested over KRW 100 trillion (USD 72 billion) in generative AI development last year. In this competitive "money game," Naver, as Korea’s leading IT company, must secure its AI competitiveness, which presents a major challenge for Choi. While Naver is actively exploring AI business opportunities, it is seen as struggling to compete with global Big Tech in terms of capital and AI-driven profits. Choi aims to expand Naver’s AI business and generate profits by leveraging the large language model (LLM) HyperCLOVA X, which marked its first anniversary on August 24. She plans to grow B2B services and integrate HyperCLOVA X into Naver’s core search and commerce businesses to enhance profitability. During the company’s second-quarter earnings call, Choi said, "In the second half of the year, we will accelerate efforts to strengthen our core products and platform capabilities by leveraging AI and data, and we will proactively explore new business opportunities based on technology." #ChoiSooyeon #Naver #AIExpansion #HyperCLOVAX #GlobalGrowth #SearchAndCommerce #NaverLeadership #NewBusinessOpportunities #PoshmarkAcquisition #DigitalTransformation #TechInvestment
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- HMM Expands Global Shipping Cooperation with MSC, Kim Kyung-bae Turns Crisis into Opportunity
- Kim Kyung-bae, CEO of HMM, has laid the foundation to respond to the shifting dynamics in the shipping industry by forming a new cooperation system called the "Premier Alliance" with global shipping companies. This comes as HMM faces challenges following the exit of Hapag-Lloyd from The Alliance (comprising HMM, Japan’s ONE, Taiwan’s Yang Ming, and Germany’s Hapag-Lloyd). Some skepticism exists due to the lack of a replacement for Hapag-Lloyd, leaving The Alliance with only three members. However, the new Premier Alliance's collaboration with MSC, the world’s largest shipping company, on European routes gives Kim confidence that the alliance restructuring can turn the crisis into an opportunity. At the "Alliance and Mid- to Long-Term Strategy Briefing" held at HMM's headquarters on September 10, Kim said, “The sudden dissolution of 2M (MSC and Maersk) last year and the announcement of Hapag-Lloyd’s withdrawal from The Alliance in February this year raised concerns about the future of The Alliance, including HMM. However, this crisis has strengthened the bond between HMM, ONE, and Yang Ming.” He added, “We have addressed the gap in European routes left by Hapag-Lloyd's departure by forming a vessel-sharing agreement with MSC, which will allow us to offer the best service among global alliances.” Shipping alliances help companies improve efficiency and align schedules. They also allow carriers to increase operational flexibility, improve competitiveness in customer acquisition, and reduce costs. Hapag-Lloyd was the largest carrier in The Alliance based on fleet capacity, so its departure raised concerns about a potential weakening of The Alliance's influence. Finding a replacement carrier proved difficult, making the reorganization of shipping alliances one of Kim's biggest challenges. After Hapag-Lloyd’s exit, HMM spent six months negotiating a new cooperation framework. As a result, HMM, ONE, and Yang Ming formed the Premier Alliance, which will operate for five years starting in February 2025. The Premier Alliance has also agreed to collaborate with MSC on the European route, where the void left by Hapag-Lloyd was most significant. The partnership with MSC will last four years, starting from the launch of the Premier Alliance. The Premier Alliance will operate 30 routes, four more than the 26 routes under The Alliance. Specifically, the number of European routes will increase from eight (four to Northern Europe, four to the Mediterranean) to eleven (six to Northern Europe, five to the Mediterranean). While some observers point out that the reduced membership of the Premier Alliance compared to The Alliance weakens its influence, HMM believes that its cooperation with MSC will have a similar effect to a formal alliance. This is because the companies will exchange vessel capacity on mutually beneficial routes. HMM explains that Hapag-Lloyd contributed minimally to routes outside of Europe, and the expanded European routes under the Premier Alliance and MSC partnership will offer better service compared to other shipping alliances. Alongside the announcement of the new shipping cooperation system, Kim Kyung-bae unveiled HMM’s long-delayed mid- to long-term investment strategy. The "2030 Mid- to Long-Term Strategy" outlines plans to invest KRW 23.5 trillion (USD 16.9 billion) by 2030. The investment will be allocated to four key areas: container business (KRW 12.7 trillion/USD 9.2 billion), bulk shipping (KRW 5.6 trillion/USD 4.0 billion), integrated logistics (KRW 4.2 trillion/USD 3.0 billion), and eco-friendly and digital advancements (KRW 1 trillion/USD 720 million). Of the total investment, about 60%, or KRW 14.4 trillion (USD 10.4 billion), will be dedicated to strengthening HMM’s eco-friendly capabilities, with most of this investment focused on securing container and bulk vessels. HMM initially planned to reveal its mid- to long-term growth strategy in early 2024, but delays caused by various uncertainties pushed the announcement to mid-September. Now that HMM has completed the formation of the new alliance, the company can move forward with its plans for long-term growth. Kim stated, “We are preparing a roadmap to become an integrated logistics company by 2030, focusing on advancing our long-term strategy while addressing the pressing issue of environmental sustainability. Of the KRW 23 trillion investment to be made by 2030, 60%, or KRW 14 trillion, will be directed toward environmental issues.” He added, “With a diverse portfolio, we aim to establish the foundation by 2030 to transform from a mere shipping company into a sustainable, comprehensive logistics company.” #KimKyungbae #HMM #PremierAlliance #MSC #ShippingAlliance #ContainerBusiness #BulkShipping #EcoFriendlyLogistics #IntegratedLogistics #2030Strategy #SKGroup
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- Choi Yoon-ho of Samsung SDI Sells Non-Core Polarizing Film, Seizes Opportunity with Battery Investments
- Choi Yoon-ho, CEO of Samsung SDI, has made a bold move to aggressively expand the company’s battery business. Samsung SDI has decided to sell its polarizing film manufacturing division to a Chinese company for KRW 1.1 trillion (USD 793.3 million). The proceeds from this sale are expected to be used to enhance battery production facilities and fund next-generation battery research and development. While competitors are slowing down investments due to the electric vehicle (EV) market's growth deceleration, Samsung SDI, which has previously maintained a cautious investment approach, sees this as a unique opportunity to ramp up investments. According to industry sources on the 10th, Choi’s decision to sell the polarizing film business reflects his belief that the current slowdown in the EV market is an ideal time for investment. Polarizing films were once a key profit driver for Samsung SDI, but oversupply concerns arose with Chinese companies ramping up production. The improved performance in the first half of the year due to increased sales of large-area TV polarizing films provided the right moment for the sale. The Chinese subsidiary involved in the sale, the Wuxi plant, recorded sales of KRW 568 billion (USD 409.5 million) and a net profit of KRW 34.3 billion (USD 24.7 million) in the first half of the year. Although the plant is financially stable with a debt ratio of 61.7%, its sale is part of Samsung SDI’s strategic focus on the battery business. The funds raised from the sale are expected to be reinvested into expanding battery facilities, particularly in North America, where Samsung SDI has partnered with major automakers for joint ventures. The company’s cash reserves stood at KRW 1.9 trillion (USD 1.4 billion) at the end of the first half of the year, but more funds are needed for future investments. Samsung SDI recently finalized an agreement with GM to build a battery plant in North America with an annual production capacity of 27 GWh, requiring a total investment of KRW 2.293 trillion (USD 1.7 billion) by October 2028. Joo Min-woo, a researcher at NH Investment & Securities, noted, “Samsung SDI’s capital expenditure (CAPEX) is expected to rise to KRW 6.5 trillion (USD 4.7 billion) in 2024, following the joint venture with GM, and further increase in 2025. The commitment of major automakers to the EV transition remains a positive signal despite the current challenging environment.” Samsung SDI is also working with Stellantis to build two battery plants in Indiana, with production capacities of 33 GWh and 34 GWh, respectively. The first plant’s investment amounts to KRW 1.6313 trillion (USD 1.2 billion), while the second plant will require KRW 2.6556 trillion (USD 1.9 billion). The company has decided to accelerate the operation of the first plant to begin within 2024, ahead of the original first-quarter 2025 target, with the second plant slated for completion in 2027. In addition to expanding battery production capacity, funds from the polarizing film sale will likely be used for next-generation battery research and development. Samsung SDI has been investing over KRW 1 trillion (USD 720 million) annually in R&D since 2022. In the first half of 2024, it spent KRW 693.2 billion (USD 499.8 million), representing 7.2% of its revenue, a 19% increase over the same period last year. For comparison, LG Energy Solution invested KRW 520 billion (USD 374.9 million) in R&D in the same period, while SK On spent KRW 148.5 billion (USD 107.1 million). Samsung SDI’s R&D spending is significantly higher, focused on developing next-generation battery technologies such as solid-state batteries, dry-process technology for cost reduction, high-power energy storage system (ESS) modules for uninterruptible power supplies (UPS), rapid-charging technology, lithium iron phosphate (LFP) batteries, and pouch-form battery solutions. Choi’s decision to sell the polarizing film business and focus on the battery sector represents a calculated risk to strengthen Samsung SDI’s business structure. Samsung SDI’s electronic materials division (semiconductor and display materials) has consistently delivered double-digit operating profit margins, acting as a buffer against the volatility in the battery business. Meanwhile, the battery division has faced difficulties, with electric vehicle battery prices and shipments declining simultaneously. In the second quarter, the battery division reported sales of KRW 3.8729 trillion (USD 2.8 billion) and an operating profit of KRW 208 billion (USD 150 million), a year-on-year decrease of 27% in sales and 46% in operating profit. Unlike its competitors, LG Energy Solution and SK On, which have aggressively pursued joint ventures in North America in recent years, Choi has taken a more cautious approach, waiting for the right moment to invest. He now views the current slowdown in the EV battery market as an opportunity for expansion. Kim Ho-seop, a researcher at Korea Ratings, said, “Samsung SDI has maintained a conservative investment stance since the early stages of the secondary battery market, resulting in stronger financial flexibility compared to its competitors. This financial stability allows Samsung SDI to continue investing without major concerns about its credit rating, even amid the recent downturn in the battery market.” #ChoiYoonho #SamsungSDI #BatteryExpansion #PolarizingFilmSale #NextGenBatteries #EVBatteryMarket #GMJointVenture #NorthAmericaBatteryPlant #StellantisPartnership #BatteryR&D #SolidStateBattery #SamsungSDIInvestments
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- Seo Jung-jin Confident in KRW 5 Trillion Revenue Next Year with Zymfentra, Considers CDMO Expansion
- Celltrion Group Chairman Seo Jung-jin expressed confidence in achieving this year’s business goals, driven by the successful launch of Zymfentra, a treatment for autoimmune diseases, in the U.S. Seo is aggressively promoting Zymfentra in the U.S. through TV and social media marketing campaigns to expand sales. On September 6, Seo and his son, Seo Jin-seok, CEO of Celltrion's business division, attended the 22nd Morgan Stanley Global Healthcare Conference in New York, which attracted over 400 healthcare companies and investors. At the conference, Seo discussed Celltrion’s growth prospects and new business vision during a Q&A with Daniel Cohen, Morgan Stanley's U.S. healthcare investment marketing director. He highlighted Zymfentra's success, noting that the drug, originally launched as Remsima SC in Europe, was approved as a new drug in the U.S. in March 2024. Within six months, Zymfentra secured contracts with three major U.S. pharmacy benefit managers (PBMs), laying the groundwork for sales expansion. Seo is optimistic that with ongoing media campaigns, Celltrion will achieve its U.S. sales target of KRW 250 billion (US$180 million) this year, and that the company could reach KRW 5 trillion (US$3.6 billion) in annual revenue by 2025 if Zymfentra continues to grow as planned. In addition to focusing on sales, Celltrion is exploring further investments for future growth. Seo announced plans to expand manufacturing facilities, either domestically or abroad, with the decision expected by the end of the year. These facilities, owned 100% by Celltrion subsidiaries, would also support the company’s potential entry into the contract development and manufacturing organization (CDMO) business. Seo believes that with Celltrion’s comprehensive knowledge of the entire pharmaceutical supply chain—from development to clinical trials, production, approval, and sales—the company can offer tailored services to clients, enhancing its competitiveness. Additionally, Seo emphasized the need for investments to secure future competitiveness, stating that Celltrion is actively considering mergers and acquisitions to further its global ambitions. He mentioned that the company is evaluating several potential target companies that could create synergies with Celltrion. Seo's son, Seo Jin-seok, also gave a presentation titled "From Pioneer to Innovator," where he outlined Celltrion's progress in developing new drugs and biosimilars. The company is expanding into antibody-drug conjugates (ADC) and multi-specific antibodies, with plans to unveil multiple “best-in-class” drug candidates through next year. Celltrion aims to commercialize three ADC and three multi-specific antibody drugs by 2029. Seo Jin-seok noted that the two most advanced ADC candidates will be revealed by the end of this year, with clinical trials starting next year. In the biosimilar business, Celltrion aims to obtain approval for 11 products by 2025 and to secure 22 products by 2030, further strengthening its market presence. #Celltrion #SeoJungjin #Zymfentra #CDMO #biopharma #biosimilars #ADC #globalexpansion #healthcareconference #pharmaceuticals
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- SK Group Faces Chinese Price Pressures, Chey Tae-won Rebalances to Boost Battery Business
- SK Group’s battery business is facing significant challenges due to the rise of low-cost Chinese batteries and a slowdown in electric vehicle (EV) market growth. However, Chey Tae-won, Chairman of SK Group, is determined to position the battery value chain as a core future business for the group. Chey is strengthening the group’s profitability by merging profitable subsidiaries with SK On and supporting further investments in the battery business by merging SK E&S into SK Innovation. This effort is part of a broader strategy to rebalance the group’s business portfolio. Moreover, SK Group is restructuring its battery materials business, including copper foil, separators, and silicon anode materials, as well as its battery recycling operations. The aim is to improve the group’s financial structure, which has been weakened by numerous acquisitions, and to streamline overlapping businesses. According to industry sources, SK Group’s success in key areas like AI, semiconductors, and energy depends on the success of its battery value chain. SK Group’s battery value chain includes SK On (battery manufacturer), SK Nexilis (copper foil and silicon anode material manufacturer), SK IE Technology (separator manufacturer), SK Materials (silicon anode materials), and SK Ecoplant (EV battery recycling). As the challenges facing SK Innovation have spread to SK On, Chey has concentrated the group’s resources on SK On, which is at the top of the battery value chain. To support further battery investments, SK Group has merged SK E&S, a highly profitable energy and power subsidiary, into SK Innovation. SK On is also set to merge with SK Trading International on November 1, 2024, and with SK Entom in February 2025. These mergers aim to enhance SK On’s profitability by improving its cash flow, which has been strained by large investments in battery production capacity and the financial burden from expanding its facilities. Since its spin-off from SK Innovation in October 2021, SK On has reported losses for 11 consecutive quarters up to the second quarter of 2024. Despite making significant investments to scale production, the company has been hit hard by the recent slump in EV demand. Jang Su-myung, a researcher at Korea Ratings, noted, “The merger of SK Innovation and SK E&S will strengthen cash flow and alleviate the rise in financial burdens, but improving SK On’s profitability and corporate value remains crucial for a successful IPO and relieving pressure on its credit rating.” The rapid rise of Chinese battery manufacturers in the EV and secondary battery market poses a significant threat to SK Group’s battery business. With Chinese companies increasing their market share in Europe and automakers increasingly adopting lithium iron phosphate (LFP) batteries from China, Chinese battery makers are gaining dominance. In response, SK Group is restructuring its battery value chain. SK IE Technology, the group’s separator manufacturing subsidiary, is considering either a full sale or a partial stake sale as part of this restructuring. SK IE Technology reported sales of KRW 107.8 billion (USD 77.7 million) in the first half of 2024, with an operating loss of KRW 126.1 billion (USD 90.9 million). Sales have more than halved compared to the previous year, and the company has shifted from profitability to losses due to the high fixed-cost structure of the separator manufacturing business and lower customer utilization rates. SK IE Technology is reviewing the timeline for starting production at its Poland plant and has postponed a planned investment in North America until January 2025. The company is also in the process of selling its Cheongju plant by the end of this year to raise liquidity. Meanwhile, SK Nexilis has decided to maintain its copper foil business. SKC, the intermediate holding company, recently injected KRW 700 billion (USD 504.7 million) to pay off acquisition loans for SK Nexilis, reducing interest expenses. SKC has also simplified the governance structure by making SK Nexilis a wholly-owned subsidiary. Noh Woo-ho, a researcher at Meritz Securities, said, “There’s a possibility that SK On will resume copper foil purchases for Hyundai and Kia production lines in the fourth quarter, and sales to Samsung SDI’s small batteries, energy storage systems, Chinese EV batteries, and Japanese cylindrical battery manufacturers are expected to start in the third quarter, marking a low point in sales.” SK Nexilis plans to increase overseas production at its factories in Malaysia and Poland, which offer lower labor and electricity costs, while focusing its domestic operations on product design and research and development to improve cost competitiveness. SK Ecoplant is exploring new business opportunities in EV battery recycling, leveraging its accumulated infrastructure in North America. The company also plans to increase the utilization of facilities in Europe and Asia. Additionally, SK Ecoplant raised KRW 131.6 billion (USD 94.9 million) by selling a 13.09% stake in Ascend Elements, a U.S. battery recycling company. This sale follows SK Ecoplant’s success in developing core technologies to increase the recovery rate of key minerals like nickel, cobalt, and lithium from recycled batteries. Since the start of 2024, Chey Tae-won has been actively restructuring the group’s business, focusing on AI, semiconductors, and energy, while divesting non-core businesses to improve the financial structure. The direction is clear: SK Group is concentrating on industries with high future growth potential while streamlining its diversified operations to strengthen its financial health. As of the first half of 2024, SK Group’s total consolidated debt stood at KRW 86.6955 trillion (USD 62.5 billion), an increase of nearly 80% from KRW 48.3 trillion (USD 34.8 billion) in 2020. The group’s debt ratio and debt-to-equity ratio have also risen to 158.8% and 40.3%, respectively. At a global management environment meeting on September 7, Chey Tae-won said, “In a challenging global environment, competition in future core businesses like AI, semiconductors, and energy solutions is intensifying. We must stay sharp and respond quickly.” #CheyTaewon #SKGroup #BatteryBusiness #SKOn #BatteryMaterials #SKInnovation #ElectricVehicles #ChineseBatteries #CopperFoil #BatteryRecycling #SKNexilis #SKIET
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- LG's Koo Kwang-mo Faces China's 'Cost-Effectiveness Threat': Focusing on HVAC, XR, and AI for Growth
- In 2024, as LG Group Chairman Koo Kwang-mo marks his sixth year in office, China's aggressive price competitiveness in sectors such as batteries, OLEDs, and home appliances is rapidly closing in on LG. After boldly deciding to "select and focus" by exiting markets like smartphones and solar power, Chairman Koo has been working to strengthen LG's competitiveness in new areas such as heating, ventilation, and air conditioning (HVAC), artificial intelligence (AI) home systems, OLED, and extended reality (XR) to fend off the rising threat from China. On September 9, industry insiders analyzed that the heightened competitiveness of Chinese home appliance companies now poses a serious challenge to South Korea’s home appliance industry. At a press conference at IFA 2024, Europe’s largest home appliance exhibition held in Berlin, Germany, LG Electronics CEO Cho Ju-wan stated, “Chinese home appliance companies have significantly improved in terms of quality, and we now need to keep an eye on them.” In fact, China’s leading home appliance company Midea recorded KRW 70 trillion (US$50.5 billion) in sales in 2023, an 8.1% increase from 2022, claiming the top spot in global home appliance sales. In comparison, LG Electronics' 2023 sales dropped by 2.7% to KRW 44.3 trillion (US$32 billion). While LG Electronics' home appliance division has seen stagnant sales, Chinese companies have taken over the mid-to-low-end home appliance market. The display industry is also facing tough competition. According to market research firm Omnia, in the first quarter of 2024, China overtook Korea for the first time in the global OLED panel market, capturing a 49.7% share, compared to Korea's 49%. This is a dramatic shift from the first quarter of last year when Korea held a 62.3% share and China 36.6%. Until last year, LG Display, along with Samsung Display, dominated the global OLED market. However, due to China’s aggressive low-cost strategies, their global market share has been declining. Although LG Display still leads the large OLED TV market, Chinese companies are using their domestic products for smartphone OLEDs, causing a continued drop in LG’s global market share. The battery sector is facing a similar situation. As of July this year, Korea's three battery companies held a combined global market share of 46.5%, excluding China, a 2.1 percentage point drop from the same period last year. In contrast, Chinese battery manufacturers increased their share by 2.3 percentage points to 53.7%. LG Energy Solution’s market share decreased by 1.4 percentage points year-on-year to 26.2%. While battery usage increased by 6.9% compared to last year, it still fell short of China’s CATL, which saw an 11% increase, securing second place in market share. Chairman Koo is expanding investments in new business areas such as HVAC, AI home systems, OLED, and XR. He is seeking new growth opportunities in areas where China’s technological capabilities have yet to catch up. On September 9, LG Electronics announced its acquisition of a stake in Mo-Sys Engineering, a UK-based virtual production solutions and camera robotics company. Previously, LG had limited its role in the XR market to supplying microLED and LED panels through LG Display. However, with this acquisition, it is making a serious push into the XR market. Chairman Koo is also focusing on the HVAC business, which LG Electronics is pursuing as a future growth driver under the global trends of AI and eco-friendliness. On September 9, LG Electronics announced a partnership with Dongwon Group to collaborate on the construction of high-efficiency HVAC solutions. Dongwon Group has committed to investing KRW 40 billion (US$28.8 million) by 2030. On September 1, LG also held a consortium agreement ceremony with China’s Harbin Institute of Technology for the "China Consortium for Advanced Heat Pump Research (CCAHR)." This marks the establishment of a consortium to develop next-generation heat pump core technologies in Asia, following similar efforts in North America and Europe. The AI home business is also progressing steadily. An AI home system connects home appliances to a single hub that uses AI to automatically analyze and provide personalized services for users—a next-generation home appliance system. Although the technology is not yet fully developed, LG Electronics, alongside Samsung Electronics, is leading the world in AI home technology. On September 8, Ryu Jae-chul, head of LG Electronics’ Home Appliance & Air Solutions (H&A) division, stated at IFA 2024, "We will open the AI home era within this year." In July, LG Electronics acquired the Dutch IoT company 'At Home' for KRW 85 billion (US$61.3 million), and recently unveiled 'LG ThinQ On,' the core of its AI home system. ThinQ On connects home appliances and IoT devices 24/7, keeping them in optimal condition. LG is also pushing hard to develop next-generation OLED technology, especially in automotive OLED displays, where it is recognized as the leader. According to market research firm Omdia, LG Display ranked first with a 27.7% market share in the global premium automotive display market in 2023. In 2019, LG Display became the first in the industry to mass-produce plastic OLED (P-OLED) for vehicles, and it also developed ATO, an OLED using a glass substrate. In smartphone OLED technology, LG has secured "two-stack tandem" technology, which offers higher brightness and energy efficiency, and supplies OLED panels to Apple. Although China’s BOE is rapidly improving its technological capabilities, there is still a significant technological gap, according to industry experts. Chairman Koo is pursuing both qualitative and quantitative growth for LG Group in the long term. During a visit to LG’s North American business sites in June this year, Chairman Koo encouraged LG employees, saying, "Have confidence and pride. Let’s make big steps in this long race for sustainable growth by embracing challenges and leaps forward." #LG #KooKwangmo #ChinaThreat #HVAC #OLED #XR #AIHome #LGDisplay #BatteryMarket #HomeAppliance #SustainableGrowth
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- Samsung Electronics: End of the "Lee Kun-hee Era" Growth? Lee Jae-yong Seeks New Breakthroughs
- Industry experts suggest that Samsung, led by Chairman Lee Jae-yong, must swiftly identify new growth businesses and undergo business transformation to recreate the explosive growth witnessed during the era of the late Chairman Lee Kun-hee.
Samsung's key businesses, such as memory semiconductors and smartphones, which were elevated to global leadership under Lee Kun-hee, no longer demonstrate the same competitiveness and growth potential. Moreover, the rapid rise of Chinese manufacturing has intensified competition across Samsung's major business segments, raising concerns about declining profitability.
Chairman Lee is expected to not only explore new growth drivers in areas like artificial intelligence (AI), semiconductor foundry, and robotics, but also to establish an efficient operational system for the much larger Samsung Electronics of today compared to the past.
According to industry reports, from 2014, when Lee effectively took over as head of Samsung, to 2024, Samsung Electronics' market capitalization has grown by approximately 2.2 times, and its sales by around 1.5 times (based on 2024 performance forecasts).
In 2014, Samsung Electronics recorded an operating profit of around KRW 25 trillion (US$ 18.0 billion). This figure nearly doubled to KRW 51 trillion (US$ 36.8 billion) by 2021. However, in 2023, operating profit dropped to KRW 6 trillion (US$ 4.3 billion), with expectations for 2024 reaching approximately KRW 45 trillion (US$ 32.5 billion).
This marks a stark contrast to the period under Lee Kun-hee, when Samsung Electronics experienced explosive growth. During his 27-year leadership from 1987 to 2014, the company’s market capitalization increased 348 times, sales grew 34 times, and operating profit surged 125 times. Even during the 10 years between 2003 and 2013, Samsung's sales and operating profit grew fivefold, significantly outpacing the current decade's growth rate.
The lack of growth in recent years is attributed to weakened competitiveness in key sectors such as semiconductors, smartphones, displays, and consumer electronics.
Samsung Electronics, once boasting a significant lead in memory semiconductors, has recently ceded some leadership to SK Hynix in areas like high-bandwidth memory (HBM) and server DDR5, failing to fully capitalize on the AI semiconductor boom.
In smartphones, the gap with Apple in the premium market has widened, while Chinese manufacturers are fiercely challenging Samsung’s mid- and low-end models and foldable phones, placing Samsung in a difficult situation.
Some analysts predict that memory semiconductors and smartphones, which led Samsung’s quantum leap during Lee Kun-hee’s tenure, may be limited to single-digit growth rates in the future.
As a result, it has become imperative for Chairman Lee Jae-yong to find new growth drivers for his ‘New Samsung’ to replicate past growth.
Lee Jae-yong is exploring breakthroughs in areas such as AI, foundry, and robotics.
The AI boom is not only driving demand for Samsung's semiconductors but is also emerging as a key tool to overcome growth stagnation in smartphones and consumer electronics.
AI implemented directly on devices, known as "on-device AI," can help consumers maximize work efficiency or enjoy leisure in new ways. This could significantly expand previously small business models, such as subscription services.
In July this year, Samsung Electronics acquired the British startup Oxford Semantic Technologies, which holds knowledge graph technology, to integrate data and enable more personalized AI experiences. Knowledge graph technology connects related information in the form of linked graphs.
The foundry business is another sector Chairman Lee has pinpointed as Samsung's new growth engine.
Unlike the cyclical nature of the memory semiconductor business, the foundry business, which operates on a contract basis, is less sensitive to economic cycles and is considered to have both higher profitability and growth potential. For instance, during the semiconductor boom in 2022, Samsung’s memory semiconductor operating profit margin was about 30%, while Taiwan’s TSMC, a leading foundry company, achieved a profit margin of 52%.
As a latecomer in the foundry business, Samsung has faced difficulties, reporting operating losses in the foundry division for the past two years. However, if the company can overcome technological hurdles and stabilize the business, there is optimism that the foundry division could generate more profit than the memory semiconductor division within the next decade.
Samsung is also expected to see visible achievements in the robotics sector.
The company has secured a call option to acquire a 59.99% stake in Rainbow Robotics, a robotics venture, and is examining domestic and foreign companies with competitive robotics technology.
Samsung is reportedly considering deploying collaborative dual-arm robots from Rainbow Robotics in its semiconductor production lines. Additionally, Samsung is expected to launch its wearable robot "Botfit," which aids users with mobility issues, as early as October this year.
Chairman Lee Jae-yong inspects the construction site of the next-generation semiconductor R&D complex at the Giheung Campus on October 19, 2023.
Chairman Lee is also expected to establish a system that allows for more efficient management of the much larger Samsung Electronics compared to the past. In the past, charismatic leadership from Lee Kun-hee, supported by Samsung's Future Strategy Office, handled most of the company’s major issues. This centralized decision-making system was praised for allocating the company’s limited resources optimally and achieving the best results. However, given Samsung's current management structure and internal and external business environment, it is difficult to replicate such leadership today. Therefore, Chairman Lee is reportedly pursuing decentralization by granting significant decision-making authority to professional managers in each business division while directly overseeing important decisions such as future business direction, major mergers and acquisitions (M&A), and capital allocation. Industry experts note that while Chairman Lee may lack the charisma of his predecessor, he excels in building relationships with global leaders and making informed decisions, a skill on par with the former chairman. For example, Chairman Lee’s acquisition of Harman in 2017, initially met with skepticism, is now regarded as a highly successful "big deal." An industry insider commented, "As a company grows larger, its growth rate naturally slows, and this is a challenge Chairman Lee Jae-yong must solve. The DNA that led to victories in the semiconductor industry in 1983 and the smartphone industry in 2009 likely still remains within Samsung." Keywords: #Samsung #LeeJaeYong #AI #foundry #robotics #semiconductors #Harman #smartphones #growthstrategy #businessinnovation
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- Kim Beom-soo’s Legal Risks and Labor Disputes, Kakao’s Reform Amid Internal and External Struggles
- Nearly a year has passed since Kakao, a leading information technology (IT) company in South Korea, became embroiled in legal risks. With the recent arrest of its founder, these risks have reached a peak, and tensions between management and labor have further complicated Kakao’s attempts at corporate renewal. As of August 6, according to reports from the IT industry, internal discord within Kakao is deepening, driven by the founder’s legal troubles and ongoing labor-management conflicts. Since October 2022, Kakao has been dealing with allegations of market manipulation related to its acquisition of SM Entertainment, which brought legal issues to the forefront for its top executives. While the company has been pushing for aggressive reforms and restructuring, internal and external disagreements over the direction of these reforms have persisted. Internally, labor-management conflicts over these reforms have escalated. On August 4, the Kakao branch of the National Chemical Fiber Food Industry Union (Kakao Union) announced that it had sent a notice of failed negotiations to the company on July 29 and subsequently applied for dispute mediation with the Gyeonggi Regional Labor Relations Commission. The union claimed in its statement that while Kakao has been actively pursuing management reforms for about a year, its demands were ignored. On August 23, the union also called for an internal audit into allegations of embezzlement and breach of trust involving executives tied to Kakao Entertainment’s acquisition of a drama production company. Specifically, the union demanded the termination of advisory contracts and the dismissal of Kim Seong-su, former co-CEO of Kakao Entertainment, and Lee Joon-ho, former head of Investment Strategy. They also called for the cancellation of advisory contracts for former Kakao Pay CEO Ryu Young-jun and former Kakao Enterprise CEO Baek Sang-yeop. In March of this year, the union had criticized the company's decision to appoint new CEOs for Kakao Mobility and Kakao Entertainment without adequately addressing ongoing legal issues. The breakdown in negotiations between Kakao’s labor union and management marks the first such incident since the union’s establishment in October 2018. Kakao union leader Seo Seung-wook commented, "Negotiations have dragged on for more than 10 months due to management’s delays and failure to submit agenda items. We’ve declared the breakdown and will explore all means, including collective action, to push for reforms." In response, Kakao expressed regret over the situation and stated that it would continue to communicate with the union. Industry insiders suggest that maintaining internal cohesion and preventing workforce departures will be crucial to avoiding further disruption. One industry source noted, "Kakao's internal atmosphere has worsened significantly as major issues have repeatedly surfaced over the past few years." Since October 2022, Kakao has been emphasizing management reforms to address its legal risks. In connection with the allegations of market manipulation, the Financial Supervisory Service raided founder Kim Beom-soo's office on August 10, 2023. On October 19, 2023, the prosecution arrested Bae Jae-hyun, former Chief Investment Officer of Kakao. In December, Kim stated, "I am committed to reforms, even considering changing the company's name if necessary," and began streamlining operations. By August 2024, Kakao had reduced its number of affiliates to 123, down from 144 the previous year, trimming 15 affiliates this year alone. Additionally, the company implemented leadership changes at key affiliates and established independent entities such as the Management Innovation Committee and the Compliance and Trust Committee to oversee decision-making and governance reforms. However, even as the new year began, Kakao’s legal risks intensified, culminating in the arrest of Kim Beom-soo in July 2024. With Kim absent, concerns have arisen over the potential loss of momentum in the company's reform efforts. Under the leadership of CEO Chung Shin-a, Kakao has entered emergency management mode, but there have been no clear signs of reform progress. Meanwhile, Kim’s first court trial is scheduled for September 11. #Kakao #KimBeomsoo #legalrisk #corporatereform #managementconflict #marketmanipulation #ITindustry #Kakaounion #leadershipchange #companyrestructuring #emergencymanagement #courttrial #laborrelations
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- Samsung 2nd in 5G Device Market Share in H1 2024, India Surpasses US as 2nd Largest Market
- Samsung Electronics ranked second in the global 5G device market in the first half of 2024, with a 21% market share. Apple led the market with a 25% share. India emerged as the second-largest 5G device market globally, surpassing the U.S., thanks to rapid growth in 5G adoption during the first half of the year. According to a report released on August 5 by Hong Kong-based market research firm Counterpoint Research, global shipments of 5G devices in the first half of 2024 increased by 20% year-on-year. For the first time, 5G devices accounted for more than 50% of total device shipments. Samsung maintained second place in global 5G device market share, driven by strong performance from its Galaxy A series and flagship Galaxy S24 series, contributing significantly to its 21% share. Apple retained the top spot with a 25% share, bolstered by strong sales of its iPhone 15 and 14 series. Both Samsung and Apple dominated the top 10 models of 5G devices in the first half of 2024, each securing five spots on the list. Xiaomi, with a sharp increase in shipments in the Indian market, secured third place in global 5G device market share. India surpassed the U.S. to become the world’s second-largest 5G device market after China. Prachir Singh, an analyst at Counterpoint Research, stated, "India overtook the U.S. to become the second-largest 5G device market in the first half of 2024, driven by a surge in shipments from brands like Xiaomi, Vivo, and Samsung in the budget segment." Tarun Pathak, a researcher at Counterpoint Research, added, "5G devices accounted for 54% of all mobile devices in the first half of the year. With increasing supply of affordable 5G devices and the expansion of 5G networks, this trend is expected to accelerate." Counterpoint Research forecasts that 5G devices will surpass 57% of total device shipments in the second half of 2024 and exceed 65% by 2025. #Samsung #5Gmarket #smartphones #Apple #India5G #Xiaomi #global5Gmarket #telecommunications #marketshare #CounterpointResearch #techindustry
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- LG Uplus Seeks Breakthrough in EV Charging, Hwang Hyeon-sik Aims to Overcome EV Fire Phobia
- Hwang Hyeon-sik, CEO of LG Uplus, is focusing on breaking through the growth limitations of the telecommunications business by venturing into the electric vehicle (EV) charging services sector. A key strength of LG Uplus's EV charging business lies in its ability to collaborate with other LG Group affiliates, such as LG Energy Solution and LG Electronics, to offer comprehensive battery solutions. However, to achieve visible success, LG Uplus must address consumer fears stemming from EV fire incidents and overcome the temporary stagnation in EV demand, known as the "EV chasm." As of August 6, 2024, with growth slowing in its traditional telecommunications services like 5G and IPTV, LG Uplus is facing increasing pressure to enhance profitability through new business avenues. In the first half of 2024, LG Uplus's operating profit decreased by 13.4% year-on-year, with the net increase in 5G subscribers dropping below 10%. Additionally, IPTV subscriber growth has slowed to just over 1%. Kim Hyun-yong, a researcher at Hyundai Motor Securities, noted, “Both 5G and IPTV, the two main pillars of the telecom industry, have entered a mature phase, leading to stagnation in subscriber and profit growth. With fewer non-telecom revenue sources compared to its competitors, LG Uplus will struggle to show significant growth until the next generation of mobile communications begins.” Hwang, who was reappointed as CEO last year and has thrived under LG Group Chairman Koo Kwang-mo, is now being hampered by stagnation in the telecommunications sector. To counter this, Hwang is actively exploring growth opportunities in the EV charging service sector. In June 2024, LG Uplus launched a joint venture, ‘LG Uplus Bolt Up,’ in partnership with Kakao Mobility. LG Uplus invested KRW 25 billion to secure a 50%+1 share in the venture. The company has also set a goal to become one of the top three providers in the slow EV charging market by 2027. The EV charging service market has a bright outlook. According to global consulting firm Roland Berger, the global EV charging service market is expected to grow from US$ 55 billion (KRW 72 trillion) in 2023 to US$ 325 billion (KRW 472 trillion) by 2030. Domestically, the number of electric vehicles is expected to rise from 390,000 in 2022 to 4.2 million by 2030. LG Uplus has an advantage through its synergies with other LG Group affiliates. For instance, LG Electronics manufactures EV chargers, while LG Uplus builds charging stations, and LG Energy Solution provides battery diagnostics, creating a comprehensive solution. However, LG Uplus’s EV charger distribution is still progressing slowly. By the first half of 2024, LG Uplus had installed 10,700 slow chargers (7kW), far behind leading companies like GS Charge (61,000 units), Everon (38,000 units), and Powercube (36,000 units). In addition, concerns have been raised that negative perceptions due to recent EV fire incidents and the EV chasm could delay the expansion of the EV charging business. In response, Hwang is actively introducing EV charging technologies aimed at preventing fires. Hyun Jun-yong, CEO of LG Uplus Bolt Up, stated in March 2024, “We will ensure that customers considering purchasing EVs do not hesitate due to concerns over inadequate charging infrastructure or safety.” The company’s charging service platform, ‘Bolt Up,’ is equipped with features that automatically cut off power when abnormal signs such as overheating or overvoltage are detected. The company is also considering adding cameras to charging stations to allow real-time monitoring of charging situations, as well as incorporating a black box feature to record activity during charging. Some analysts suggest that the recent EV chasm phenomenon may provide extra time for the infrastructure development that EVs have long needed. Jung Ji-soo, a researcher at Meritz Securities, commented, “The EV charging service business, part of LG Uplus's non-telecom ventures, received approval from the Fair Trade Commission for its partnership with Kakao Mobility in April and is expected to begin full operations by the end of Q3 2024. This is a positive step toward securing long-term growth drivers.” #LGUplus #EVcharging #HwangHyeonsik #BoltUp #telecomgrowth #electricvehiclefirephobia #EVchasm #5G #IPTV #LGGroup #newbusiness
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- CJ Olive Young’s "Power Abuse" Controversy Reignited, Threatens Efforts to Address 'Market Dominance Abuse'
- CJ Olive Young has once again been embroiled in a "power abuse" controversy. This comes less than a year after a similar issue led to an investigation by the Korea Fair Trade Commission (KFTC), which had concluded its review. The situation has become awkward, especially as the company had increased its efforts to resolve previous allegations of "market dominance abuse" by expanding its mutual growth activities. Some observers suggest that CJ Olive Young, as a dominant player in the offline cosmetics distribution market, may have overreacted to the rise of new online competitors, leading to repeated missteps. According to sources within the cosmetics distribution industry, both CJ Olive Young and Musinsa, the alleged victim in this case, are busy trying to ascertain the facts and prepare countermeasures. The controversy centers on allegations that a CJ Olive Young representative pressured purchasing managers of small cosmetics brands working with Musinsa not to participate in an event organized by Musinsa. The KFTC is reportedly aware of the situation and is reviewing the allegations. As the facts have yet to be fully confirmed, it remains uncertain whether the KFTC will formally launch an investigation. However, since Musinsa is reportedly considering raising the issue officially, it is possible that the KFTC may once again focus its attention on CJ Olive Young. A Musinsa representative stated, “We are looking into whether any issues occurred with the brands and are considering filing a report for business interference.” The representative added, “We were preparing to open a pop-up store in Seongsu-dong, Seoul, and it is true that some brands unexpectedly canceled their participation, causing delays in our preparations.” This situation is particularly challenging for CJ Olive Young, as the company had faced a similar issue last year, which led to an investigation by the KFTC. At that time, the KFTC found that CJ Olive Young had engaged in practices such as △monopolizing promotional events, △failing to revert prices to normal after promotional events, and △unfairly collecting information processing fees. As a result, the KFTC issued corrective orders and imposed a fine of KRW 1.896 billion (US$ 1.37 million). However, the KFTC did not reach a conclusion regarding the core issue of "market dominance abuse," citing uncertainty about whether CJ Olive Young held a dominant market position at that stage. Although CJ Olive Young avoided punishment for market dominance abuse, the decision to conclude the review without a final ruling does not equate to a full exoneration, as the KFTC’s decision was based on the difficulty of confirming the facts rather than a determination of innocence. Given that the KFTC deferred judgment last year, if it decides to investigate this new controversy, it may apply stricter scrutiny to CJ Olive Young. Since last year's controversy, CJ Olive Young has introduced internal control measures to prevent a recurrence and has actively promoted initiatives supporting small brands. Earlier this year, the company announced a mutual growth plan that would invest approximately KRW 300 billion (US$ 216 million) to support the growth of small brands and develop the K-beauty ecosystem. CJ Group, on a broader scale, has also supported small brands by providing them with promotional opportunities at international events, aiding their expansion overseas. However, if the current allegations of power abuse are proven true, much of CJ Olive Young’s efforts could be overshadowed. A CJ Olive Young representative stated, “We will carefully verify the facts and take necessary actions.” Some view the recurring power abuse allegations as a sign of increasing pressure on CJ Olive Young. While the company continues to dominate the offline cosmetics distribution market, powerful online competitors are now seeking to enter the cosmetics distribution space. Last year, allegations of power abuse were linked to CJ Olive Young's efforts to curb Coupang, the leading player in Korea's e-commerce market. The current controversy involves Musinsa, the country’s largest online fashion platform. #CJOliveYoung #marketdominanceabuse #KoreaFairTradeCommission #KFTC #powerabuse #cosmeticsdistribution #Musinsa #Coupang #Kbeauty #smallbrandssupport #ecommercecompetition #fairtrade
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- Samsung's "Super Gap" in HBM and DRAM Faces Challenges, Jun Young-hyun Plans Major Overhaul by Year-End
- Samsung Electronics is facing increasing internal concerns as its technological edge in not only high-bandwidth memory (HBM) but also standard DRAM appears to be weakening. Vice Chairman Jun Young-hyun, head of Samsung's Device Solutions (DS) division, is expected to focus on creating a more efficient work environment through a major organizational reshuffle and personnel changes by the end of the year. According to industry sources, there is growing speculation that Samsung’s once-dominant position in cutting-edge DRAM process development and production is being threatened. Recently, SK Hynix announced that it had successfully developed the world’s first 16GB DDR5 DRAM using 6th-generation 1c (11-12nm) technology, surpassing Samsung in standard DRAM technology as well, not just HBM. SK Hynix’s 1c DRAM is estimated to have a yield of around 60%, while Samsung’s 1c DRAM yield reportedly remains in the single digits, potentially delaying mass production until 2025. Samsung is also struggling with yield issues in its 5th-generation 1b (12-13nm) DRAM, which is already in mass production. Typically, DRAM production stabilizes at an 80% yield, but Samsung’s 1b DRAM yield is reportedly around 50%. This has also impacted its ability to supply LPDDR (low-power DRAM) to its Mobile eXperience (MX) division in sufficient quantities. As a result, the gap in DRAM market share between Samsung and SK Hynix is closing rapidly. Samsung’s DRAM market share, which stood at 43.9% in Q1 2023, remained largely unchanged at 42.9% in Q2 2023. In contrast, SK Hynix’s share increased from 24.4% in Q1 to 31.1% and further to 34.5% in Q2 2023. Industry insiders point to Samsung’s organizational culture as a potential reason for its declining competitive edge. Short executive tenures are said to encourage a focus on short-term results (1-2 years) at the expense of long-term technological advancements. Additionally, the organization has become more bureaucratic and less agile in responding to rapidly changing technology trends. In August, Vice Chairman Jun addressed these concerns, stating, “We need to break down communication barriers between leaders and departments. Regardless of rank or position, we must acknowledge what isn’t working and have the courage to address challenges transparently, rebuilding a culture of intense debate within the semiconductor division.” While Jun implemented some organizational changes in July 2023, industry observers believe these measures were insufficient. There are now expectations that the year-end restructuring will involve significant changes to Samsung’s corporate culture, focusing on workforce adjustments and a deeper organizational overhaul. Experts warn that Samsung risks following in Intel’s footsteps, whose decline was attributed to mismanagement of personnel and a bureaucratic culture. If Samsung fails to address these issues, it could face similar setbacks. Jun is expected to make sweeping changes to the senior leadership of the DS division. This wouldn’t be the first time—he previously replaced most senior executives at Samsung SDI in 2021 after safety concerns related to battery fires cast doubt on the company’s market position. Given the underperformance in key areas such as HBM, DRAM, foundry, and semiconductor design, Jun is likely to apply the principle of “meritocracy,” where those responsible for successes or failures will face corresponding consequences. While last year’s executive reshuffle was smaller than expected, this year’s changes are predicted to be much more significant. There are also expectations that the way employee performance is measured and rewarded will be revamped. Currently, Samsung’s system rewards teams based on whether they achieve their pre-set goals. However, this has led to inefficiencies when multiple departments work together on a single project, as their goals may not align. Some employees have suggested that organizing teams around specific projects could improve efficiency. A semiconductor industry insider commented, “Samsung is currently facing the urgent challenge of recovering its core competitiveness. Without an organizational culture that allows talent to work efficiently, the company could face even greater crises if the semiconductor market continues to decline.” #SamsungElectronics #JunYoungHyun #DRAM #HBM #semiconductors #organizationalrestructure #SKHynix #semiconductoryields #corporateculture #semiconductormarket
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- Hyundai Prepares for Hydrogen Era: Chung Eui-sun Seeks Collaboration with Toyota to Expand Hydrogen Ecosystem
- The global fuel cell electric vehicle (FCEV) market is in decline. Key reasons for the downturn in the fledgling hydrogen vehicle market include insufficient infrastructure, such as hydrogen refueling stations, and a lack of new vehicle models. Chung Eui-sun, chairman of Hyundai Motor, has been holding multiple meetings with Toyota's chairman, Akio Toyoda, this year, sparking speculation that the two automakers might collaborate to develop the global hydrogen vehicle ecosystem. According to battery market research firm SNE Research on the 4th, the global hydrogen vehicle market has been shrinking since 2022. Although the number of hydrogen vehicles sold worldwide more than doubled from 9,483 units in 2020 to 20,704 in 2022, last year's sales dropped by 20.7% to 16,413 units, and sales continued to decline in the first half of this year, down 34.1% year-on-year to 5,621 units. In terms of market share for hydrogen vehicle sales in the first half of this year, Hyundai ranked first with 32.7%, followed by Toyota with 22.8%. Chinese companies, focusing on commercial vehicles, accounted for about 44% of the market combined. However, hydrogen vehicle sales last year amounted to just 0.018% of the 90.1 million cars sold worldwide, highlighting the underdeveloped state of the market. The lack of passenger hydrogen vehicle options and inadequate refueling infrastructure are the primary factors contributing to the decline in this nascent market. Currently, only three global automakers—Hyundai, Toyota, and Honda—have the capability to mass-produce passenger hydrogen vehicles. Honda recently re-entered the hydrogen vehicle market, starting production of the "CR-V e:FCEV" in Ohio in June 2023, after halting production of the Clarity in Japan in 2021. Sales are set to begin next year. For Hyundai, expanding the ecosystem by working with governments and other industry players, rather than focusing solely on increasing market share, may be more crucial at this stage. An industry insider stated, "Honda's re-entry into the hydrogen vehicle market could positively contribute to the overall market ecosystem, which would benefit Hyundai." With this backdrop, there is growing interest in whether Hyundai will form a cooperative relationship with Toyota, the world's top automaker, in the hydrogen vehicle sector. Hyundai sponsored the "2nd Korea-U.S.-Japan Economic Dialogue" at the Grand Hyatt Hotel in Seoul, attended by Chung Eui-sun, Korean Foreign Minister Cho Tae-yul, and Toyota executives, including representatives from Toyota's parts affiliate, Denso. While details of the discussions remain speculative, it's believed that Hyundai and Toyota may have touched on potential hydrogen-related collaborations. Tetsuo Ogawa, president of Toyota North America, said after the meeting, "We discussed hydrogen and autonomous driving with Hyundai. Although no specific agreements were reached, we explored areas for future cooperation." Chung is expected to meet with Toyota Chairman Akio Toyoda next month during his visit to Korea to further discuss collaboration on expanding the hydrogen ecosystem. Neither Hyundai nor Toyota has officially confirmed any details about potential collaboration. Earlier this year in March, Chung visited Toyota’s headquarters in Japan, where he and Toyoda reportedly discussed hydrogen vehicles and future mobility. Industry observers anticipate that next month’s meeting may result in concrete cooperation plans between the two companies regarding hydrogen vehicles and the broader hydrogen ecosystem. Toyota has already partnered with BMW to jointly develop hydrogen vehicles. Japanese media outlets, including *Nikkei* and *Kyodo News*, recently reported that Toyota would supply hydrogen fuel cells and tanks to BMW, while BMW would handle the development of driving systems. The enhanced partnership is expected to be officially announced on the 5th. The collaboration aims to standardize hydrogen vehicle components, reducing costs, and addressing the high prices that have hindered hydrogen vehicle sales. Toyota and BMW first partnered on hydrogen technology in 2012, with Toyota supplying hydrogen fuel cell cells to BMW. BMW is currently developing its first hydrogen vehicle, the iX5 Hydrogen, which is expected to launch next year. The partnership aims to establish a mass production system for hydrogen vehicles. Hyundai recently announced that it would launch the next-generation model of its Nexo hydrogen fuel cell SUV, equipped with its 2.5-generation fuel cell system, in May next year. However, this timeline is slower than Hyundai's original plan to release a 3rd-generation hydrogen fuel cell system in 2023. The 3rd-generation system is expected to reduce costs by over 50% compared to the 2nd-generation Nexo. The new system will also be adaptable for use in various applications, such as large ships, trains, and buildings. Hyundai pushed back the mass production of the 3rd-generation hydrogen fuel cell system to 2026, citing technical challenges and low market demand as significant factors. According to Hyundai, development of the 3rd-generation technology is complete, with prototype models undergoing internal reliability tests. Chung is accelerating the development of next-generation hydrogen fuel cells through an organizational restructuring in June, transferring Hyundai Mobis' hydrogen fuel cell facilities, assets, R&D, and production expertise to Hyundai Motor. #Hyundai #Toyota #ChungEuiSun #AkioToyoda #hydrogenvehicles #hydrogenecosystem #fuelcell #FCEV #automotiveindustry #globalcollaboration #hydrogenfuel
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- GC Biopharma's 'Allyglow' Secures Early U.S. Sales Network, a Positive Sign for Huh Eun-chul’s Performance Improvement
- Huh Eun-chul, CEO of GC Biopharma, has successfully secured the U.S. sales network for the immune deficiency blood product 'Allyglow' faster than expected, signaling potential profitability improvements in the second half of the year. The early achievement of the U.S. sales network, originally targeted for completion by the end of the year, was accomplished in just over a month, raising expectations for a rapid increase in local sales. According to the pharmaceutical industry on September 4th, GC Biopharma has listed Allyglow with the three major U.S. pharmacy benefit managers (PBM), which could lead to performance improvements for Huh Eun-chul, CEO of GC Biopharma, in the second half of the year. GC Biopharma, after starting sales in the U.S. just over a month ago, successfully signed contracts with the three major PBMs and listed Allyglow in their formularies. The three major PBMs in the U.S. are Express Scripts (ESI), CVS Caremark, and Optum, which control 80% of the U.S. prescription drug market. Given that PBMs play a key role in the U.S. pharmaceutical distribution system, this indicates that GC Biopharma has established a stable and rapid sales network in the U.S. GC Biopharma had initially set a goal to contract with the three major PBMs and eight specialty pharmacies (SP) by the end of this year when it announced Allyglow’s entry into the U.S. market. However, just a month after launching in the U.S. in July, the company not only achieved listing with the three major PBMs but also signed contracts with seven specialty pharmacies, nearly meeting its annual target. For Huh, the faster-than-expected completion of contracts with key U.S. pharmaceutical distributors means that the company can start seeing the benefits of its U.S. entry earlier than anticipated. Kim Seung-min, a researcher at Mirae Asset Securities, commented, “GC Biopharma has secured U.S. pharmaceutical sales channels faster than expected, ensuring no distribution issues for Allyglow in the U.S. market. Since the initial shipments, there have been three additional shipments of Allyglow in August alone.” On July 8th, GC Biopharma shipped the initial batch of Allyglow for U.S. sales, and by the last week of July, it had officially launched the product in the U.S., showing early signs of success. Huh's efforts, including the swift establishment of a U.S. sales subsidiary after several attempts to enter the U.S. market, seem to have paid off. Since 2015, Huh has sought U.S. approval for the blood product Allyglow from the U.S. Food and Drug Administration (FDA), but ultimately failed in 2017. He then re-applied in July 2023 for a 10% concentration version of the product, which was more concentrated than the previous version. During this process, Huh changed the name of the existing U.S. subsidiary and built a sales network with a small number of sales personnel. Allyglow appears to have a high likelihood of penetrating the U.S. market quickly from the early stages. In August 2022, GC Biopharma renamed its former U.S. subsidiary GC Mokam to GC Biopharma USA and began operating with a small team of sales personnel. Considering that GC Biopharma received FDA approval for Allyglow in December last year, the company had been preparing for U.S. sales for a year and a half. For Huh, this is laying the groundwork to improve GC Biopharma's profitability in the second half of the year. Among South Korea's five major pharmaceutical companies (Yuhan, Chong Kun Dang, Hanmi Pharmaceutical, Daewoong Pharmaceutical, and GC Biopharma), GC Biopharma has uniquely struggled with profitability. The company's high reliance on blood products, which account for a significant portion of its revenue, coupled with rising raw material costs, such as the price of blood, have contributed to its cost burdens, as price increases have been difficult. It is estimated that blood products accounted for 35% of GC Biopharma's total revenue last year. As such, an improvement in blood product profitability could have a significant impact on the company's overall performance. GC Biopharma reported an operating profit of KRW 2.6 billion (US$ 1.87 million) on a consolidated basis in the first half of this year, a 73.9% decline from the same period last year. Although only Hanmi Pharmaceutical and Daewoong Pharmaceutical reported operating profit growth among the five major pharmaceutical companies in the first half of this year, GC Biopharma's decline in operating profit was more significant compared to Yuhan and Chong Kun Dang. A GC Biopharma representative told Business Post, "We aim to secure an early foothold in the U.S. market with Allyglow and plan to expand sales through this." #GC Biopharma #Allyglow #bloodproducts #immunedeficiency #USmarket #pharmaceuticalsales #FDAapproval #HuhEunchul #profitimprovement #pharmacybenefitmanagers
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- Kim Hee-cheul Takes Helm of Hanwha Ocean: Kim Dong-kwan’s Growth Strategy Focuses on Energy and Defense
- With the appointment of Kim Hee-cheul, CEO of Hanwha Energy and Hanwha Impact, as the new head of Hanwha Ocean, it is expected that Hanwha Ocean, which acquired the former Daewoo Shipbuilding & Marine Engineering, will focus on 'energy and defense' to create new growth opportunities. Kim Hee-cheul, who has been appointed, is recognized as an energy expert who managed the group's energy subsidiaries and is known as a "strategic planner." He is also considered a close confidant of Hanwha Vice Chairman Kim Dong-kwan, having worked closely with him for over 10 years. There is growing interest in whether Kim Hee-cheul will be able to elevate Hanwha Ocean to a core subsidiary of the group. On September 4th, sources both inside and outside of Hanwha Ocean revealed that the group’s decision to appoint Kim Hee-cheul, currently CEO of Hanwha Energy, as the head of Hanwha Ocean stems from the understanding that simply maintaining the shipbuilding business focused on merchant vessels is not enough to generate growth momentum. Hanwha Ocean recorded an operating profit of KRW 52.9 billion (US$ 38.1 million) in the first quarter of this year, marking its first return to profitability since its launch in June of last year. However, in the second quarter, the company posted an operating loss of KRW 9.7 billion (US$ 7 million), returning to a deficit. In comparison, competitors such as HD Hyundai Heavy Industries and Samsung Heavy Industries achieved operating profits of KRW 376.5 billion (US$ 271.5 million) and KRW 130.7 billion (US$ 94.2 million) respectively during the second quarter, reflecting Hanwha Ocean’s struggles in fully establishing its shipbuilding capabilities. Kim is reportedly setting a broad strategic direction focused on strengthening the shipbuilding business specialized in energy and defense, surpassing domestic competitors. In the energy sector, the company is expected to concentrate on developing ships necessary for the production and transportation of oil, gas, and other energy sources. The marine plant division of Hanwha Ocean will handle equipment related to energy production, such as ships used in offshore energy production. Hanwha Ocean has a track record of delivering drilling rigs for oil and gas exploration. Additionally, in May, Hanwha Ocean acquired a 23.1% stake in Dyna-Mac, a Singapore-based company specializing in the fabrication of topside structures for Floating Production Storage and Offloading (FPSO) units, in order to effectively respond to the floating marine plant market. Moreover, the company recently took over the offshore wind equipment business from a group affiliate to push the installation of offshore wind turbines as a new business. It is also preparing to actively pursue marine energy businesses, including offshore substations, seawater desalination facilities, and equipment for producing hydrogen and ammonia using water and electricity. In the energy transportation sector, the company is focusing on enhancing its LNG carrier construction capabilities. Hanwha Ocean, which currently holds the world's largest capacity for constructing LNG carriers at 22 ships per year, plans to increase this capacity to 24 ships next year. The company is also developing a carbon-free ship powered by 100% ammonia fuel in collaboration with Hanwha Power Systems. Most of the company’s orders for the first half of this year were for energy transport ships, with a total order value of approximately KRW 6.77 trillion (US$ 4.88 billion). The company secured orders for 16 LNG carriers, 7 Very Large Crude Carriers (VLCC), 2 Very Large Ammonia Carriers (VLAC), and 1 Very Large Gas Carrier (VLGC) in the first half. Hanwha Ocean’s most notable new business is its defense sector, particularly in specialized military vessels. The company is currently pursuing several major projects, including a KRW 9 trillion (US$ 6.49 billion) Australian frigate project, a KRW 8 trillion (US$ 5.77 billion) Korean next-generation destroyer project, and a KRW 60 trillion (US$ 43.28 billion) Canadian patrol submarine project. Hanwha Ocean aims to leverage the ship and submarine construction capabilities inherited from Daewoo Shipbuilding & Marine Engineering to become the focal point of Hanwha Group's defense business. The company recently made its first step into the maintenance, repair, and operations (MRO) business by winning a contract for the U.S. Navy's logistics support ship maintenance project, raising expectations for growth in this area. The company had previously acquired the U.S.-based Philadelphia Shipyard in preparation for entering the global military ship MRO market, which is projected to exceed KRW 100 trillion (US$ 72.12 billion). Hanwha Ocean expects the defense sector’s specialized military vessels business to generate over KRW 3 trillion (US$ 2.16 billion) in revenue by 2030. Kim Hee-cheul, born in 1964, graduated from Seoul National University with a degree in chemical engineering and earned a master's degree in the same field. He also holds an MBA from the University of Washington in the United States. He has been with Hanwha Group for 37 years, having joined in 1988. Kim is a close associate of Vice Chairman Kim Dong-kwan, and has been involved in discovering new growth opportunities for the group while planning new business portfolios. He first teamed up with Kim Dong-kwan when the latter moved to Hanwha SolarOne as Chief Strategy Officer in late 2011, and together they have worked on the group’s solar energy business for over a decade. In 2015, Kim was appointed as the inaugural CEO of Hanwha Total, where he stabilized the organization and led performance improvements. He then became the head of the holding company division of Hanwha Energy in 2021 and was appointed CEO in 2023, supporting Kim Dong-kwan’s leadership succession within the group. Kim will effectively begin his role as Hanwha Ocean’s CEO this month, with his formal appointment to be confirmed at an extraordinary shareholders' meeting in October. #HanwhaOcean #KimHeecheul #KimDongkwan #energy #defense #shipbuilding #LNGcarriers #militaryvessels #MRO #offshoreenergy
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- Ryu Young-sang from SK Telecom Attempts to Popularize 'AI Conversational Search Engine'
- Ryu Young-sang, CEO of SK Telecom, is entering the domestic artificial intelligence (AI) search engine market in collaboration with the U.S. company Perplexity, which is touted as a challenger to Google’s search service. Ryu has outlined a two-track strategy to dominate the AI search service market. The first track is building a platform that connects consumers with various generative AI services, including Perplexity. The second track involves strengthening SK Telecom’s own large language model (LLM) to support their proprietary generative AI. On September 4, during a joint press conference held at SK Telecom’s headquarters in Seoul with U.S. AI search engine company Perplexity, Ryu stated, "In the rapidly changing digital environment, AI search technology plays a critical role in saving time for modern people," adding, "Through technological collaboration with Perplexity, we will offer a differentiated AI search service." Perplexity is an emerging U.S.-based generative AI search engine startup, rising as a contender to Google. The company has received investments from prominent figures such as Nvidia and Jeff Bezos, the founder of Amazon. Jensen Huang, CEO of Nvidia, and well-known hedge fund manager Stanley Druckenmiller are reported to use Perplexity Pro, a paid search service, instead of Google. The startup has drawn attention as a rising star in the U.S. search engine market. Aravind Srinivas, CEO of Perplexity, stated, “Everyone only has 24 hours a day, but using Perplexity instead of Google allows users to access more information in less time,” emphasizing that “Perplexity is where knowledge begins.” SK Telecom has decided to integrate Perplexity Pro into its AI assistant platform, aiming to lead the popularization of generative AI search services in Korea. Over the next year, SK Telecom plans to provide its mobile subscribers with the Perplexity conversational search service, worth around KRW 290,000 (approximately USD 209), for free. This strategy is seen as a way to expand the user base and secure a foothold in the AI search engine market, which currently has limited adoption due to subscription fees. Ryu noted, “SK Telecom is the only official partner of Perplexity in Korea, and starting today, we will work towards creating successful collaboration cases,” adding, “Perplexity is an important partner in expanding SK Telecom’s global AI company ecosystem.” At the press conference held at SK Telecom’s headquarters in Seoul on the 4th, attendees included Kim Yong-hoon, Head of AI Services Business at SK Telecom, Jung Seok-geun, Head of Global/AI Tech Business at SK Telecom, Ryu Young-sang, CEO of SK Telecom, Aravind Srinivas, CEO of Perplexity, and Hwang Yoo-ra, Lead of Partnerships for Asia Pacific at Perplexity. Perplexity Pro will be available through SK Telecom's AI assistant platform, "A." The platform, which underwent a major revamp in August, already provides AI search services from ChatGPT, Claude, and A-X. With the addition of Perplexity Pro, SK Telecom aims to offer users a diverse range of AI search engines on a single platform. Users will also be able to compare responses from different search engines without re-entering their queries. Moreover, SK Telecom is collaborating with Perplexity to develop various AI-based subscription services. Kim Yong-hoon, Head of AI Services Business at SK Telecom, said, “We want to help Perplexity increase its recognition in Korea through our platform, 'A.',” adding, “We are working with Perplexity to build subscription-based business models and package these offerings so that more users can experience AI search.” SK Telecom is also committed to further enhancing its proprietary AI search engine, A-X. By owning its own search engine, SK Telecom can offer more accurate information in specialized areas compared to foreign AI search engines, while also enjoying cost advantages. Ryu stated, "It is meaningful to collaborate with other companies when we have secured our own AI search engine technology,” adding, “Our proprietary technology opens up many business opportunities, especially in the B2B market.” Currently, SK Telecom is working with key partners in sectors such as mobility, finance, travel, and food and beverage (F&B) to expand its AI ecosystem. Despite the challenges of monetizing AI services in the short term, the company has expressed its intention to continue investing. Ryu concluded, “Global big tech companies see AI as a matter of survival, not just a choice,” noting, “If we underinvest, we risk losing everything, but if we overinvest, we are only spending a bit more money.” He added, “We are focused on expanding the market in Korea for now and are prepared to bear the costs. When the time is right from a cost and consumer value perspective, we can talk about monetization.” #Ryu Young-sang #SKTelecom #AI #Perplexity #SearchEngine #ArtificialIntelligence #Technology #Partnership #DigitalTransformation #AIsearch
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- Samsung's AI Home Appliance Impact Disappoints; Han Jong-hee Plans October Subscription Service Breakthrough
- Samsung Electronics launched an aggressive sales campaign in the first half of this year under the slogan "AI Home Appliances = Samsung," but it appears the AI strategy did not significantly impact the company's performance. To enhance the profitability of the home appliance business in the second half of the year, Han Jong-hee, Vice Chairman and Head of Samsung Electronics' DX Division, is expected to dive into the 'home appliance subscription service' market. According to industry sources on the 3rd, Samsung Electronics' Digital Appliances (DA) division received lackluster performance results for the second quarter of 2024 compared to its competitors, highlighting the need to find a new breakthrough in the latter half of the year. Samsung Electronics' DA and Visual Display (VD) divisions posted an operating profit of approximately KRW 490 billion (USD 353.3 million) in the second quarter of this year, a 33.7% decrease from the KRW 740 billion (USD 533.6 million) earned in the second quarter of last year. The DA division alone is estimated to have recorded an operating profit of around KRW 200 billion (USD 144.3 million). In contrast, LG Electronics' Home Appliance & Air Solution (H&A) division achieved an operating profit of KRW 694.4 billion (USD 500.6 million) in the second quarter of this year, marking a 16.4% increase from the same period last year, and earning more than three times the operating profit of Samsung's DA division. Vice Chairman Han had focused on AI home appliances as a key marketing point in the first half of the year, but the results fell short of expectations. The global demand for home appliances has not fully recovered, making it difficult to attract consumers solely with AI appliances. Additionally, rising costs, including logistics and key components, have been significant factors. Baek Gil-hyun, a researcher at Yuanta Securities, stated, "Samsung Electronics' DX division continues to face profitability challenges due to rising component prices and logistics costs." Vice Chairman Han is now expected to seek a breakthrough in the home appliance business through 'regular subscription' services in the second half of the year. #Samsung #AIhomeappliances #subscriptionservice #HanJonghee #homeappliancemarket #electronicsindustry #LGvsSamsung #DXdivision #profitability #businessstrategy
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- Daishin Securities Monitors Token Securities Legislation; Will Early Investments in Real Estate Synergy Pay Off?
- Daishin Securities is closely monitoring the movement towards token securities legislation in the 22nd National Assembly. Although the government has announced plans to foster the Token Securities Offering (STO) market, the lack of legislative framework has hindered market growth so far. Daishin Securities, leveraging its real estate expertise and workforce, is pushing forward with a fractional real estate investment business, and stands to benefit quickly if legislation is passed. On September 3, it was reported that Rep. Kim Jae-seop of the People Power Party will introduce a bill to amend the Capital Markets Act and the Electronic Securities Act in September to legalize token securities. To support this, Rep. Kim is also hosting a seminar on September 4 at the National Assembly, discussing the "Desirable Legislative Direction for Activating the Token Securities Market." The amendment aims to establish a legal basis for the stable issuance and trading of token securities, applying the same regulations as traditional securities under the Capital Markets Act. Token securities are digitalized securities that represent investment assets using distributed ledger technology in the form of tokens. In other words, they are digital assets issued as tokens using blockchain technology to represent securities-like rights. This allows various rights, previously difficult to issue with traditional electronic securities, such as fractional investments, to be easily issued and traded. This marks the first time a bill for token securities market legislation has been introduced in the 22nd National Assembly. Although similar bills failed to pass in the 21st National Assembly, there is renewed optimism in the industry with this upcoming bill. A political source stated, "The government is showing a proactive attitude towards promoting token securities, and the ruling party is preparing a bill to activate the market. With the opposition party also in some agreement, the discussions are expected to gain momentum, increasing the likelihood of legislation." The Vice Chairman of Daishin Securities is likely highly optimistic about the potential legislation. Daishin Securities has made early investments to secure a foothold in the emerging token securities issuance market, which is expected to be a blue ocean. In March 2023, Daishin Securities acquired a 90% stake in Kasa Korea, a fractional investment platform. This effectively means that Daishin Financial Group acquired Kasa's entire Korean business, anticipating synergies due to the group's strengths in real estate. Kasa purchases buildings or offices and sells them to investors as fractional investments. It launched the first fractional investment service in Korea after being designated as an innovative financial service by the Financial Services Commission in 2019, securing the position as the leading platform. Kasa issues "Digital Asset Backed Securities (DABS)" for real estate, allowing investors to buy and sell portions of building shares in units as small as KRW 5,000. Kasa Korea became a subsidiary of Daishin Property, a real estate specialist within Daishin Financial Group, creating potential synergies due to its real estate-focused foundation. Following this, on January 25, 2024, Daishin Securities signed a memorandum of understanding with Koscom to promote a pilot project for a token securities platform. Currently, only entities designated as innovative financial businesses through the financial regulatory sandbox can operate in the fractional investment space. In the field of fractional real estate investment, only three companies, including Daishin's Kasa, Funble, and Lucent Block, have received this designation. Although other securities firms such as Mirae Asset Securities, NH Investment & Securities, LS Securities, and Shinhan Investment & Securities are interested in the token securities issuance market, Daishin Securities is the only company with a subsidiary designated as an innovative financial business. If the bill passes the National Assembly, Daishin Financial Group is expected to actively enter the fractional real estate investment market, leveraging its real estate capabilities. The investments made in preparation for the opening of the token securities issuance market are anticipated to start bearing fruit. Daishin Securities possesses the manpower and value chain through its affiliates to handle everything from capital raising, development, and operation management to deal sourcing in the real estate business. A prime example of this is 'Nine One Hannam,' a luxury residential complex in Seoul's Yongsan district, symbolizing Daishin's comprehensive real estate development project at the group level. Daishin F&I’s subsidiary, DS Hannam (now Daishin Property), led the project, which generated approximately KRW 445.1 billion (USD 320.9 million) in profit through sales. The token securities industry believes that securing attractive underlying assets will be key to success after legalization. Even after legislation, financial authorities are likely to emphasize the objective valuation of underlying assets when creating a new securities market for token securities. As a result, fractional real estate investments are expected to meet the financial authorities' requirements and become an attractive product for investors. Investors in fractional real estate can enjoy profits from rental income and asset sales. However, with current regulations, the investment cap is low, and individual investors are limited to a maximum of KRW 20 million (USD 14,4oo) in real estate investments, making the actual return relatively small. If the investment cap is raised through legislation and products based on a variety of underlying assets are issued, fractional real estate investment could emerge as a new investment tool. Kim Hyun-jung, a researcher at Kiwoom Securities, stated, "Underlying assets currently issued as non-monetary trust securities and investment contract securities include real estate, music, artwork, and Korean beef. Among these, real estate has the most accumulated valuation cases and established valuation systems compared to other assets." #DaishinSecurities #TokenSecurities #STO #realestateinvestment #KasaKorea #fractionalinvestment #CapitalMarketsAct #securitieslegislation #blockchain #financialregulation
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- Shinsegae Simon Breaks Tradition with Chuseok Operations, Under Management Pressure?
- Kim Young-seop, CEO of Shinsegae Simon (the operator of Shinsegae Outlets), has sparked various reactions by deciding to keep outlets open during the Chuseok holiday for the first time in the company’s 17-year history. Breaking the tradition of closing during the holiday is seen by some as an attempt to make up for underwhelming performance in the first half of the year. There's also speculation that the emphasis on reward and punishment by Shinsegae Group Chairman Chung Yong-jin influenced Kim's unusual decision. On September 3, the retail industry noted the importance of Shinsegae Simon’s third-quarter performance, given the decision to operate during the holiday. Shinsegae Simon's decision to keep outlets open during the holiday marks a first since the opening of Yeoju Premium Outlet in June 2007. Breaking a 17-year-old tradition is not easy. Five CEOs have led Shinsegae Simon before Kim, but none opted to operate during the holiday. However, Kim boldly decided to open on Chuseok day. There is also a perspective that the intense heat, which affected second-quarter sales, left Kim with no choice but to focus heavily on third-quarter operations. This year, the early onset of heat in June and the continued heatwave into August affected business. The nationwide average temperature this summer reached 25.6°C, the highest since nationwide weather observations began in 1973. The country experienced 24 days of extreme heat, the third most on record, and 20.2 days of tropical nights, the highest ever recorded. According to an outlet insider, fewer people tend to visit outlets when the weather is extremely hot. Since most outlets are located in suburban areas, people are reluctant to make the trip in such conditions. In fact, according to real-time destination rankings from Tmap, Yeoju Premium Outlet ranks around 20th place in the summer but jumps to 1st place as the weather cools down. Yeoju Premium Outlet consistently ranks as the top outlet in terms of sales nationwide. Weather-related factors also negatively impacted sales in previous years. During last year's monsoon season, the nationwide accumulated rainfall reached 648.7 mm, the third highest on record. Despite the long monsoon season extending into September, the outlets did not open on Chuseok day last year. Kim's decision this year is seen in light of the new leadership style under Chairman Chung Yong-jin, who became the head of Shinsegae Group in March. Chung has frequently replaced CEOs of subsidiaries, including Shinsegae Construction, SSG.com, and Gmarket, without waiting for the regular executive reshuffle. Kim was appointed as CEO of Shinsegae Simon during the group's regular executive appointments in October 2022. This year marks his second year in the role. As he approaches his second anniversary as CEO, there is internal and external pressure to deliver results. Even though Shinsegae affiliates are managed by Executive Vice President Chung Yoo-kyung, Kim cannot afford to be complacent, especially with the chairman's frequent executive reshuffles. Shinsegae Simon plans to open all five of its outlets nationwide during this Chuseok, including not only the three stores in the Seoul metropolitan area but also those in Busan and Jeju. Some predict that operating during Chuseok could lead to improved performance. Last year, the Chuseok holiday was split between late September and early October. However, this year, with the outlets opening on the day of Chuseok itself, there will be three more days of operation compared to the previous year’s third-quarter holiday. In the retail industry, holiday operations significantly impact sales. Emart, which reports monthly earnings, often attributes sales declines to fewer holidays compared to the previous year. The impact of holiday operations on sales is similar for both outlets and supermarkets. An outlet industry insider said, "Holiday sales are naturally higher than on regular weekdays, so operating during Chuseok should help boost sales compared to last year." Shinsegae Simon explained that the decision to open on Chuseok was made in consideration of the growing number of people who choose to go on day trips to the suburbs instead of visiting their hometowns during the holidays. However, the claim that more people are forgoing hometown visits during the holidays is not new. According to SR, the operator of the Suseo High-Speed Railway (SRT), this year's Chuseok ticket reservation rate actually increased by 10.1% compared to last year. It seems insufficient to attribute the decision to operate on the Chuseok holiday solely to a decrease in the number of homebound travelers. The Chuseok holiday in September is practically the last opportunity to boost third-quarter performance. This year, the holiday lasts five days, from September 14 to 18. After two more weekends, the third quarter will come to an end. An outlet industry insider commented, "Operating on Chuseok day has both advantages and disadvantages. Whether this will continue in the future will depend on the outcome of this year's Chuseok holiday." #ShinsegaeSimon #outletsales #Chuseokoperations #KimYoungseop #ChungYongjin #retailindustry #holidayoperations #businessstrategy #outletperformance #ShinsegaeGroup
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- Lee Jae-yong, Chey Tae-won, Chung Eui-sun, Koo Kwang-mo Gather in Czech for Semiconductor and Electric Vehicle
- Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Chairman Chung Eui-sun, and LG Group Chairman Koo Kwang-mo are set to converge in the Czech Republic in search of new business opportunities. Samsung and SK Group are expected to discuss strengthening their cooperation with the Czech Republic, which, along with Germany, is emerging as a semiconductor production hub in Europe. Hyundai Motor is likely to explore hydrogen and electric vehicle initiatives, while LG Group is expected to focus on battery investment. According to industry sources, the chairmen of South Korea's four major conglomerates—Samsung, SK, Hyundai Motor, and LG—will accompany President Yoon Suk-yeol on his mid-September visit to the Czech Republic as part of an economic delegation. In addition to new nuclear power plant construction, the delegation will explore areas of cooperation between the two countries. This marks the first time in 2024 that all four conglomerate leaders will accompany the president on an overseas visit. The Czech Republic is renowned as a manufacturing powerhouse in Europe. As of 2023, manufacturing accounted for 23% of its GDP, ranking second in Europe after Ireland and at a similar level to South Korea. According to the Korea Trade-Investment Promotion Agency (KOTRA), the Czech Republic has been recognized as a traditional manufacturing and engineering stronghold since the 18th century. Following liberalization in 1990 and its accession to the European Union in 2004, the Czech Republic has rapidly developed into an export-driven industrial nation, serving as a key economic hub in Central and Eastern Europe. Numerous Korean companies, including Hyundai Motor, Nexen Tire, and Doosan Škoda Power, have already established a strong presence in the Czech Republic. South Korea is the third-largest investor in the Czech Republic, following the United States and Japan. In July 2023, "Team Korea," led by Korea Hydro & Nuclear Power, was selected as the preferred bidder for a KRW 30 trillion (US$ 21.6 billion) nuclear power plant construction project in the Czech Republic, with the final contract set to be signed in March 2025. Beyond nuclear power, the Czech government is eager to collaborate with Korean companies in various fields, including semiconductors, electric vehicles, and batteries, as it shifts its industrial focus from traditional manufacturing to advanced technologies such as artificial intelligence (AI) and future mobility. Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won are expected to explore semiconductor cooperation with the Czech government and private sector. In June 2024, the Czech Republic secured a US$ 2 billion (KRW 2.7 trillion) investment from the world's second-largest power semiconductor company, ON Semiconductor, by offering a package of incentives, including a 10-year tax exemption and KRW 590 billion (US$ 425.5 million) in subsidies. Taiwan's TSMC is also considering establishing a semiconductor plant in the Czech Republic, drawn by its lower real estate and labor costs compared to Western Europe and its proximity to major European customers in Germany. Given these factors, the Czech Republic presents an attractive semiconductor production base for Samsung Electronics and SK Hynix, which currently do not have semiconductor plants in Europe. Hyundai Motor has already positioned its Nošovice plant in the Czech Republic as a strategic base for Europe, with Chairman Chung Eui-sun envisioning the country as a hub for exporting electric and hydrogen vehicles to Europe. The company has already begun converting its Czech plant into a dedicated electric vehicle production line, with the goal of achieving 100% eco-friendly vehicle sales in Europe by 2035. The Czech Republic is the third-largest automobile producer in Europe, after Germany and France, and in 2023, electric and plug-in hybrid vehicle production accounted for 13% of its total passenger car production, reflecting its rapid transition to eco-friendly vehicles. Moreover, the Czech government has announced plans to operate more than 50,000 hydrogen vehicles by 2030. LG Group Chairman Koo Kwang-mo is expected to explore the possibility of building a secondary battery plant in the Czech Republic. The Czech government aims to deploy up to 500,000 electric vehicles by 2030 and is actively seeking investments in two to three battery manufacturing plants. LG Energy Solution has reportedly received ongoing invitations to invest in the country. In addition to these initiatives, Korean companies are expected to explore business cooperation in sectors such as shipbuilding, defense, and steel. Other business leaders, including POSCO Group Chairman Jang In-hwa, Doosan Group Chairman Park Jeong-won, Hanwha Group Vice Chairman Kim Dong-kwan, and HD Hyundai Vice Chairman Chung Ki-sun, will also accompany President Yoon on his state visit to the Czech Republic. In an interview with JoongAng Sunday on August 10, Czech Ambassador to South Korea Jan Káraček expressed hope for closer cooperation between the two countries in semiconductor, automotive, and hydrogen energy sectors, as well as in defense and railway industries. #LeeJaeyong #CheyTaewon #ChungEuisun #KooKwangmo #CzechRepublic #semiconductors #electricvehicles #SouthKorea #batteries #businesscooperation
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- Samsung Electronics Could Benefit from Intel's Foundry Crisis, Potential Gains from U.S. Semiconductor Act
- Intel is facing a severe financial crisis, leading the company to reconsider its semiconductor business strategy. Alongside drastically reducing facility investments, there is even speculation about the possible sale of its foundry (semiconductor contract manufacturing) business. This situation presents an opportunity for Samsung Electronics to firmly outpace Intel, a potential competitor in the foundry business, and rise as a company rivaling the leading foundry player, TSMC. According to the semiconductor academic journal IEEE Spectrum on the 1st, Intel's financial crisis is becoming a risk not only for the company but also for the U.S. government's efforts to establish a self-sufficient advanced semiconductor supply chain. The U.S. government has actively supported Intel's R&D and facility investments to reduce reliance on the microprocessing system semiconductor supply chain from South Korea and Taiwan. However, Intel is undergoing significant changes in its business strategy, including large-scale layoffs and reduced semiconductor plant investments due to poor performance and financial deterioration. The U.S. government, under the CHIPS Act, decided to support Intel's semiconductor plant investments with $8.5 billion (approximately KRW 11.4 trillion) in subsidies and $11 billion (approximately KRW 14.7 trillion) in loans. Additionally, semiconductor plants starting operations in the U.S. by 2026 are eligible for up to 25% tax benefits. However, considering Intel's announcement of over $100 billion in planned facility investments in the U.S., it seems unlikely that these government supports alone will make the investments economically viable. Moreover, Intel's failure to secure significant customers for its foundry business has exacerbated the financial burden of its aggressive semiconductor plant construction. Some experts argue that Intel's financial crisis was foreseeable, given that its goal to simultaneously grow its semiconductor design business and foundry business was overly ambitious. Intel had aimed to position its foundry business as a new growth engine, with a goal of becoming the second-largest player after TSMC by 2030, surpassing Samsung Electronics' foundry in just a few years. However, with uncertainty surrounding the realization of the necessary large-scale plant investments, observers believe that Samsung Electronics may face less competitive pressure. According to Bloomberg, Intel is reportedly considering significant changes across its business operations, prompted by the most significant crisis it has faced in 56 years. This could include separating the foundry business entirely from its semiconductor design business or even selling the foundry business. Bloomberg, citing internal sources, suggested that Intel is more likely to focus on drastically reducing facility investments rather than immediately resorting to the extreme measure of selling the foundry business. However, if Intel fails to turn around its foundry business in the short term, the possibility of discontinuing the foundry business and selling it to another company cannot be ruled out. Given that the foundry business requires tens of billions of dollars in facility investments annually to maintain competitiveness, Intel's current financial situation makes it difficult to sustain such investments. These developments could benefit Samsung Electronics in several ways. If Intel follows through with the likely scenario of scaling back or withdrawing from new plant projects, it would ease the competition for Samsung in maintaining its market share in the foundry sector. Companies seeking alternatives to TSMC for semiconductor contract manufacturing would likely turn to Samsung Electronics. Moreover, if Intel reduces the scale of its U.S. government-supported semiconductor plants or cancels investments, the related subsidies could be redirected to other companies. Both TSMC and Samsung Electronics, which are constructing advanced foundry plants in the U.S., are strong contenders for these subsidies, as both companies have announced multi-billion-dollar investments in the country. If Intel decides to sell its foundry business, Samsung Electronics is seen as a leading candidate to acquire it. For the U.S. government, expanding Samsung's presence could be the most effective way to prevent TSMC from securing a near-monopoly in the advanced microprocessing semiconductor market. However, some predict that, given Intel's status as the only U.S. company capable of producing advanced microprocessing semiconductors, the government might instead increase support for Intel to help overcome its financial crisis. Intel CEO Pat Gelsinger recently stated at a technology conference hosted by Deutsche Bank that despite the challenges, "the fruits are within sight," and "positive signals are being detected from external foundry customers." #Intel #SamsungElectronics #foundry #semiconductors #TSMC #CHIPSAct #USGovernment #technology #SouthKorea #PatGelsinger
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- Samsung's Next Foldable Smartphone: 'Rollable' While Xiaomi and Huawei Focus on 'Triple Foldable'
- Samsung Electronics is focusing on securing next-generation 'rollable' smartphone technology, while Chinese companies Xiaomi and Huawei are concentrating on developing 'triple foldable' smartphones. The competition between South Korea and China for dominance in next-generation smartphone technology, beyond foldable smartphones, is expected to intensify. The spotlight is on whether Samsung, a leader in smartphone innovation, can widen the technological gap with its rollable devices. According to the smartphone industry on the 1st, Samsung Electronics recently applied for a patent for rollable displays for smart devices. According to IT media Patently Apple, Samsung recently filed a patent in Europe under the name "Electronic Device Including Rollable Display," with patent number 20240281093. On the same day, Lee Chung, Vice President of Samsung Display, revealed at the International Meeting on Information Display (IMID) in Jeju Island that they are developing next-generation displays such as rollable and multi-foldable displays. A rollable display refers to a display that can be rolled inside a device and then pulled out to expand the screen when needed. While it requires more advanced technology than foldable displays in terms of flexibility and touch sensitivity, it is considered a next-generation smartphone technology because it allows the screen size to be adjusted in various ways. However, some foreign media outlets predict that due to the high technical difficulty of rollable displays, commercial smartphones with this technology may not emerge until after 2027. It previously took Samsung Electronics 11 years to develop and launch the Galaxy Z Fold, a foldable phone developed in collaboration with Samsung Display, and it is expected that rollable smartphones may take even longer to commercialize. The South Korean government is also supporting the development of rollable display technology. The National Institute of Technology and Standards of the Ministry of Trade, Industry and Energy included rollable display technology in the international standardization proposals at the "2024 Display Standardization International Forum." In contrast, China's Xiaomi and Huawei are aiming to take the lead in next-generation smartphone technology by releasing smartphones with triple foldable displays. Triple foldable displays feature a three-fold design, allowing for a larger screen when unfolded compared to regular foldable smartphones. According to Huawei Central, Huawei plans to release a triple foldable smartphone within the year. When unfolded, it is expected to reach a size similar to that of a 10th-generation iPad. Huawei CEO Richard Yu has also stated that a next-generation triple foldable smartphone will be launched after five years of development, though he did not specify an exact release date. IT media WCCF Tech reported that if Huawei launches its triple foldable phone in the second half of this year, it would precede Samsung, potentially positioning Huawei as a leader in technological innovation. Sources on China's Weibo reported that Xiaomi is also developing a triple foldable smartphone with a three-fold display. The sources indicated that Xiaomi might unveil a working model or at least a prototype of its triple foldable smartphone at the Mobile World Congress (MWC) in February next year. While triple foldable technology is considered a step below rollable technology, it has a higher potential for commercialization. The key challenge lies in maintaining a user-friendly thickness while being folded three times and ensuring that the slim design can withstand everyday shocks. However, the rollable and triple foldable smartphone markets are not expected to grow significantly in the short term due to high prices, durability concerns, and limited versatility. Market research firm TrendForce predicts that the market share of foldable smartphones will only account for 1.5% of the total smartphone market this year and will remain at 4.8% by 2028. #Samsung #Huawei #Xiaomi #rollabledisplay #triplefoldable #smartphones #technologyinnovation #foldablephones #SouthKorea #China
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- Chey Yoon-jung, Eldest Daughter of SK Chairman Chey Tae-won, Directly Presents at SK Biopharmaceuticals' Management Briefing, Takes Frontline Role in Management
- Chey Yoon-jung, Vice President and Head of Business Development at SK Biopharmaceuticals, and the eldest daughter of SK Group Chairman Chey Tae-won, has made her first public appearance in a management role. On August 30, Chey directly participated in an online management briefing related to the radiopharmaceuticals (RPT) business of SK Biopharmaceuticals. During this briefing, she provided a detailed explanation of the company's progress in radiopharmaceutical development. According to sources in the bio-industry, Chey Yoon-jung’s role as the presenter at the SK Biopharmaceuticals management briefing is seen as a sign that her management training has entered a full-fledged phase. In her presentation, Chey stated, "Radiopharmaceuticals are an emerging and promising field, and while the current market size is small, rapid growth is anticipated in the future. We believe that entering this market now positions SK Biopharmaceuticals for long-term growth and is well-suited for long-term investment." SK Biopharmaceuticals has set a goal to enter the next-generation modality market, which includes radiopharmaceuticals, targeted protein degradation therapeutics, and cell therapies, by 2023. Chey expressed confidence in SK Biopharmaceuticals' potential to become a leader in the radiopharmaceutical field. She mentioned, "One of the biggest challenges in the radiopharmaceutical market is securing radioactive isotopes, where many other companies struggle. SK Biopharmaceuticals, however, has an advantage thanks to our partnership with TerraPower, which positions us ahead of our competitors." On August 28, SK Biopharmaceuticals signed a contract with TerraPower Isotopes, a subsidiary of the U.S.-based small modular nuclear reactor company TerraPower, to supply Ac-225 (Actinium-225), a therapeutic radioactive isotope. TerraPower Isotopes is known for receiving exclusive supplies of Actinium-225 from the U.S. Department of Energy, and their Actinium-225 is reported to have higher purity compared to competitors. Chey also set a goal for SK Biopharmaceuticals to establish itself as a global leader in radiopharmaceuticals by 2027. She said, "By 2027, we aim to secure more than two substances that have entered clinical trials for radiopharmaceuticals and build a solid pipeline of preclinical candidates. In addition, we plan to leverage SK Biopharmaceuticals' research and development capabilities to develop our own platform and nurture a world-class radiopharmaceutical clinical organization." This marks the first time that Chey has personally presented at an SK Biopharmaceuticals management briefing. Her involvement in management began in earnest after she attended SK Group’s Management Strategy Meeting for the first time in June. In the 2023 executive reshuffle at SK Group, Chey Yoon-jung was promoted to Vice President and Head of Business Development at SK Biopharmaceuticals, making her the youngest executive within SK Group. Born in 1989, Chey graduated from an international high school in Beijing, China, and went on to study biology at the University of Chicago in the United States. She gained experience as a researcher at the Brain Research Institute of the University of Chicago and the Physical Chemistry Research Institute of Harvard University. Chey also worked as a consultant at Bain & Company, handling petrochemical and IT projects. Chey joined SK Biopharmaceuticals in 2017 as a Senior Manager (assistant manager level) in the Strategic Planning Team of the Management Strategy Office. After taking a leave of absence in 2019, she completed a master's degree in bioinformatics at Stanford University in the United States. She returned to SK Biopharmaceuticals in September 2021 and began leading the Strategic Investment Team of the Global Investment Office in January 2022. #CheyYoonjung #SKBiopharmaceuticals #CheyTaewon #radiopharmaceuticals #biotech #management #SKGroup #leadership #businessdevelopment #globalleadership
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- Park Jeong-won Utilizes Doosan Bobcat to Grow Doosan Robotics: Is This Setback the End?
- Can Chairman Park Jeong-won Continue Restructuring to Use Doosan Bobcat as a Financial Source for Doosan Robotics' Growth? Chairman Park Jeong-won of Doosan Group is attempting to continue the restructuring of the group’s corporate governance, aiming to use Doosan Bobcat as a financial source to fuel the growth of Doosan Robotics. Although the plan to merge Doosan Bobcat with Doosan Robotics has been withdrawn, Park remains committed to restructuring by moving Doosan Bobcat under the umbrella of Doosan Robotics. However, this plan still faces significant challenges and might not come to fruition. It remains uncertain whether Chairman Park will succeed in using Doosan Bobcat as a financial engine for Doosan Robotics' growth. As of the closing price on the 29th, Doosan Enerbility’s stock was trading at KRW 17,750, and Doosan Robotics at KRW 69,300, both significantly below the stock purchase demand prices of KRW 20,890 for Doosan Enerbility and KRW 80,472 for Doosan Robotics. On the same day, the boards of directors at both Doosan Bobcat and Doosan Robotics resolved to terminate the comprehensive stock exchange agreement for the merger of the two companies. While the withdrawal of the comprehensive stock exchange was intended to address shareholder dissatisfaction with the merger ratio, the plan to move Doosan Bobcat from under Doosan Enerbility to under Doosan Robotics remains unchanged. However, the possibility of this plan failing still looms large. The plan to split off Doosan Enerbility into a new investment company holding shares in Doosan Bobcat and then merging this investment company with Doosan Robotics is also at risk of being scrapped. Seo Joon-mo, an analyst at KB Securities, commented, "For the revised plan to succeed, the exercise of stock purchase rights must not exceed a certain level. In particular, the consent of Doosan Enerbility's shareholders is crucial, as the core subsidiary Doosan Bobcat would be split off." Doosan Enerbility has set a limit of KRW 600 billion for stock purchase requests, while Doosan Robotics has set a limit of KRW 500 billion, corresponding to approximately 4.5% and 29.6% of their total shares, respectively. The key issue is the scale of stock purchase requests triggered by the gap between the stock price and the stock purchase demand price. If the stock price remains lower than the demand price, shareholders are more likely to exercise their rights, potentially leading to a higher number of requests. Doosan Enerbility and others have indicated that they may cancel the split and merger if the number of stock purchase requests exceeds the limit. If stock prices remain at their current levels, the likelihood of the restructuring plan being abandoned increases. Market dissatisfaction with Doosan's restructuring plan remains high, and the Financial Supervisory Service's approval of the securities report has been delayed, increasing the chances that the agenda could be rejected at the shareholders' meeting due to the exercise of stock purchase rights. Recent moves by the National Pension Service (NPS), the second-largest shareholder, are also raising concerns. The NPS recently opposed the merger between SK Innovation and SK E&S at an extraordinary shareholders' meeting on the grounds that it would damage shareholder value. As the second-largest shareholder of Doosan Enerbility with a 6.8% stake, the NPS’s exercise of stock purchase rights at the shareholders' meeting could exceed the 4.5% limit, potentially causing the merger to fall through. The Financial Supervisory Service’s repeated requests for amendments to the securities report have delayed Doosan’s restructuring efforts. On August 26, the Financial Supervisory Service requested that Doosan submit a second revised report concerning the restructuring plan for Doosan Robotics. In particular, the Financial Supervisory Service asked Doosan to compare the valuation method based on future cash flows, such as the discounted cash flow (DCF) or dividend discount model (DDM), with the existing market price-based evaluation method in relation to the 46% stake in Doosan Bobcat held by the new spin-off company from Doosan Enerbility. Market analysts predict that the new spin-off company’s valuation could be higher if the revised evaluation methods proposed by the Financial Supervisory Service are applied. For example, if a typical dividend discount model is used, with the company paying annual dividends of KRW 50 billion to KRW 60 billion, the company's value could increase by as much as KRW 800 billion. The original restructuring plan, as required by the Financial Supervisory Service, involved splitting Doosan Enerbility at a 1:0.25 ratio into a continuing business entity and a new company holding Doosan Bobcat shares, and then merging the new company with Doosan Robotics at a 1:0.13 ratio. The initial plan was to acquire the remaining 44.9% of Doosan Bobcat’s shares held by individual shareholders through a comprehensive stock exchange, swapping one Doosan Bobcat share for 0.63 Doosan Robotics shares, delist Doosan Bobcat, and then merge it with Doosan Robotics. Although Doosan Group has withdrawn the comprehensive stock exchange plan, it remains committed to the plan of splitting off Doosan Bobcat from Doosan Enerbility and merging it with Doosan Robotics. However, it is uncertain whether they can secure the momentum needed to push this plan forward. It can be said that the future business restructuring plans of Park Jeong-won and Doosan Group's management have become uncertain. Park Sang-hyun, CEO of Doosan Enerbility, explained to shareholders in a letter that the KRW 1 trillion in new investment capacity generated by the restructuring, including the split of Doosan Bobcat, would be invested in the nuclear power business, addressing concerns that the split of Doosan Bobcat could hurt profitability. Doosan plans to hold an extraordinary shareholders' meeting on October 25 regarding the restructuring. Before the meeting, shareholders can submit opposition notifications from September 10 to 24, and the exercise of stock purchase rights will take place from September 25 to October 15. #ParkJeongwon #DoosanGroup #DoosanBobcat #DoosanRobotics #corporategovernance #businessrestructuring #shareholdersmeeting #stockpurchase #SouthKorea #businessstrategy
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- Kim Dong-cheol Monitors Public Opinion as KEPCO's Strong Performance Expected Amid Favorable Conditions
- The likelihood of an electricity rate hike within the year is increasing, a move long advocated by Kim Dong-cheol, CEO of Korea Electric Power Corporation (KEPCO). The government has shown a positive attitude towards a potential rate hike in the fourth quarter. Despite this, favorable conditions such as international oil prices and exchange rates are expected to significantly improve KEPCO's performance this year. However, if a rate increase occurs alongside strong financial results, it could lead to negative public sentiment. To preemptively address this, Kim has been emphasizing KEPCO's self-rescue efforts to build consensus for the rate hike. According to analysts on the 29th, KEPCO is expected to achieve an operating profit of around KRW 7-8 trillion (USD 5-6 billion) this year. Min-ho Heo, an analyst at Daishin Securities, estimated KEPCO's annual operating profit for 2024 at KRW 7.628 trillion (USD 5.5 billion). On the 21st, Dong-jin Kang, an analyst at Hyundai Motor Securities, projected an annual operating profit of KRW 8.274 trillion (USD 6 billion). This represents a significant improvement from last year's operating loss of KRW 4.542 trillion (USD 3.3 billion), highlighting the drastic turnaround within a year. Historically, KEPCO's operating profits in the range of KRW 7-8 trillion (USD 5-6 billion) have been rare, with the company’s highest profit of KRW 12.016 trillion (USD 9.2 billion) achieved in 2016. The positive outlook for KEPCO this year is largely due to favorable factors such as stabilized international oil prices and exchange rates, which are key variables affecting the company's performance. International oil prices, particularly Dubai crude oil, have seen a sharp decline from an average of USD 89.2 per barrel in April to USD 77.9 in August, which is expected to stabilize power wholesale prices from September onwards. Additionally, the KRW/USD exchange rate, which approached KRW 1,400/USD in May, has recently stabilized around KRW 1,330/USD. The combination of these favorable factors, along with the record-high electricity sales price of KRW 166.2 per kWh in June, is expected to positively impact KEPCO’s financial performance. Analysts believe that even without further rate hikes, KEPCO’s strong performance is likely due to the existing rate increases implemented since 2022. Despite the expectation of strong financial results, the government has indicated that it may continue to raise electricity rates, citing KEPCO's accumulated deficits as a consideration. Industry Minister An Duk-geun mentioned on the 26th that efforts are being made to normalize electricity rates as soon as possible, with adjustments likely after the heatwave subsides. Kim Dong-cheol, aware of the potential negative public reaction if electricity rates are increased amid strong financial results, has been emphasizing KEPCO's efforts to minimize the impact on households and businesses. During a press conference on the 28th, Kim stated, "We understand that even a 1 KRW increase in electricity rates places a burden on households and can weaken our companies' competitiveness. KEPCO is committed to raising rates only to the minimum necessary level." Kim also highlighted KEPCO's internal efforts, including workforce reductions, wage cuts, and voluntary retirements, as part of the company's strategy to justify the rate hike. Kim's remarks appear to be aimed at preemptively addressing any negative public sentiment that could arise from the rate hike, particularly given the current economic concerns, including a potential recession and high inflation. Sung Jong-hwa, an analyst at LS Securities, noted, "The key issue for KEPCO is the direction of electricity rate hikes, which will have a greater impact on the stock price than quarterly earnings. From the perspective of justifying the rate hike, a moderately strong performance might be more favorable than a surprising surge in quarterly profits." #KEPCO #KimDongcheol #ElectricityRates #KoreanEconomy #EnergySector #PublicOpinion #FinancialPerformance #RateHike #OilPrices #ExchangeRates
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- Rhee Chang-yong Suggests November Rate Cut as Housing Prices Soar, Hindering Immediate Easing
- "We wanted to lower rates but couldn't." Rhee Chang-yong, Governor of the Bank of Korea, expressed his frustration during a speech at the inaugural meeting of the "Korea's Transition and Future Forum" on the 28th, explaining that the August Monetary Policy Committee (MPC) was unable to lower the base rate due to rising housing prices driven by structural issues. Rhee's recent comments have raised concerns that the Bank of Korea's rate cut, originally expected in October, might be delayed due to ongoing increases in housing prices. On the 29th, analysts in the securities industry began speculating that the central bank might lower rates during the November MPC meeting instead of October. Hyeyoung Woo, a researcher at LS Securities, noted the need for more time to monitor the effects of government measures on real estate and lending regulations, predicting a rate cut in November rather than October. Other analysts, like Jaemin Choi of Hyundai Motor Securities, also suggested that financial instability caused by rising house prices and increasing household debt might prompt a conservative approach, making a November rate cut more likely. Rhee has consistently emphasized that monetary policy decisions should be data-driven, suggesting that the Bank of Korea may wait to confirm the effectiveness of government policies on real estate and household loans before implementing a rate cut. Despite pressure from political circles to lower rates to boost domestic demand, Rhee remains firm. He responded to criticism from the Presidential Office and lawmakers by stressing the need to reflect on the reasons behind the current high levels of household debt and soaring real estate prices in the Seoul metropolitan area. #BankOfKorea #RheeChangyong #InterestRates #MonetaryPolicy #HousingMarket #KoreanEconomy #RateCut #HouseholdDebt #RealEstate #FinancialStability
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- Woori Financial's Insurance Comeback with 'Half-Price Magic'; Yim Jong-yong Aims to Mend Ties with Regulators
- Woori Financial Group has taken another step towards becoming a comprehensive financial group by acquiring Tongyang Life and ABL Life at a price lower than market expectations. If the acquisition is finalized, Woori Financial will re-enter the insurance business for the first time in over a decade since the sale of Woori Aviva Life Insurance. However, with the final acquisition still pending approval from financial authorities, Woori Financial Chairman Yim Jong-yong is expected to focus on addressing recent internal control issues and mending relations with regulators. According to a consensus of opinions in the securities industry on the 29th, Woori Financial's acquisition of Tongyang Life and ABL Life was made at a lower-than-expected price, significantly reducing the capital burden. The previous day, Woori Financial signed a contract to acquire shares of Tongyang Life and ABL Life for KRW 1.5493 trillion (USD 1.12 billion). Choi Jung-wook, a researcher at Hana Securities, commented, "The acquisition price was around 0.67 times the estimated net asset value of KRW 2.3 trillion (USD 1.66 billion) for Tongyang Life and ABL Life, which is significantly lower than market expectations. The decline in Woori Financial's common equity tier 1 (CET1) ratio due to the acquisition is expected to be minimal, within 0.10 percentage points, while the return on equity (ROE) is expected to improve." Jo Ah-hae, a researcher at Meritz Securities, added, "Woori Financial's acquisition of the insurance companies is positive in that it allows for a diversified income structure, especially given its high reliance on banking among the four major commercial banks. The impact on capital ratios is also more limited than expected." Analysts have praised the deal, noting that the acquisition price was expected to be as high as the mid-KRW 3 trillion (USD 2.16 billion) range, considering the market capitalization and Contractual Service Margin (CSM) of Tongyang Life and ABL Life. Chairman Yim Jong-yong has fulfilled his promise to minimize capital impact while advancing Woori Financial's goal of becoming a comprehensive financial group without overpaying. This acquisition is also significant for the broader capital market, as it marks the first merger and acquisition (M&A) in the insurance sector under the new accounting standards, where proper valuation of insurance companies has been challenging. Woori Financial had previously withdrawn from the bidding for Lotte Insurance due to difficulties in determining an appropriate valuation. The relatively low acquisition price is partly attributed to the unique situation of the parent company of Tongyang Life and ABL Life, the Dajia Insurance Group, being in the process of dissolution. Nonetheless, with a high-profile acquisition made without overpaying, this case could set a new benchmark in the insurance M&A market. The combined assets of Tongyang Life and ABL Life will create a heavyweight insurer with approximately KRW 50 trillion (USD 36.05 billion) in assets, placing Tongyang Life at 6th and ABL Life at 9th in the life insurance industry by premium income. Although Chairman Yim has made a significant mark in the insurance M&A market, challenges remain. Woori Bank may face institutional sanctions due to allegations of improper loans to relatives of former Chairman Sohn Tae-seung. According to supervisory regulations, a financial company must not have received an institutional warning in the past year to become the largest shareholder of another financial company. There is market speculation that, given KB Financial Group received regulatory approval for its acquisition of LIG Insurance despite receiving an institutional warning 10 years ago, Woori Financial's situation may not face major hurdles. However, given that Lee Bok-hyun, the head of the Financial Supervisory Service (FSS), has been critical of Woori Financial, Yim cannot afford to be complacent. Lee appeared on KBS's Sunday Diagnosis program on the 25th, stating, "Someone must take responsibility for Woori Bank's failure to report on time according to the law." On the 20th, he also remarked that Woori Financial was "at a level difficult to trust." The market remains aware of these uncertainties surrounding the acquisition. Eun Kyung-wan, a researcher at Shinhan Investment Corp., stated in a report, "The noise surrounding the former chairman is a hurdle to overcome," and added, "The fact that Woori Financial has not disclosed a specific acquisition timeline can be interpreted in the same context." Korea Ratings also noted in a special report, "The issue of suitability as a major shareholder, related to former Chairman Sohn Tae-seung's improper loan case, could be a variable," and added, "There is a possibility that the acquisition may not be approved depending on the level of sanctions from financial authorities and the approval of the major shareholder's eligibility." As a former chairman of the Financial Services Commission, Yim is expected to make every effort to restore relations with the authorities. Personally, Yim has just passed the midpoint of his three-year term, so it is now time to deliver results, whether or not he seeks reappointment. Earlier in August, Yim launched Woori Investment & Securities. If he successfully concludes this entry into the insurance business, he could be praised for improving the overall structure of the group through M&A, as he did during his tenure as chairman of NH NongHyup Financial Group. Yim is keeping a low profile while awaiting the authorities' decision. During an executive meeting the previous day, he said, "When the investigation and audit results are released, the CEO, the bank president, and the staff will humbly accept the appropriate actions and procedures." He added, "(The acquisition) is only at the stage of signing the contract, and there are still many steps remaining, including the development of a business plan and approval from the financial authorities." #WooriFinancialGroup #InsuranceAcquisition #YimJongyong #FinancialSupervision #MergersAndAcquisitions #InsuranceMarket #FinancialAuthorityApproval #TongyangLife #ABLLife #KoreanFinance
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- Hyundai Motor to Invest KRW 120 Trillion Over 10 Years, Doubling Hybrid Models
- Hyundai Motor Company plans to make a large-scale investment of over KRW 120 trillion (approximately USD 86.5 billion) over the next 10 years, averaging KRW 12 trillion (USD 8.65 billion) annually. On the 28th, Hyundai Motor held the '2024 CEO Investor Day' at the Conrad Hotel in Yeouido, Seoul, where it unveiled its new mid-to-long-term strategy, the 'Hyundai Way,' to investors. The company announced it will invest a total of KRW 120.5 trillion (USD 86.9 billion) from 2024 to 2033. This is a 10.1% increase compared to the KRW 109.4 trillion (USD 78.9 billion) investment plan announced at last year's CEO Investor Day for the 2023-2032 period. Through this significant investment, Hyundai aims to achieve an annual sales volume of 5.55 million vehicles by 2030, which is more than a 30% increase compared to the 2023 sales figures. To support this goal, the company plans to continuously expand its overseas production facilities, securing an additional production capacity of 1 million units by 2033. Hyundai also revealed its goal of selling 2 million electric vehicles (EVs) by 2030, accounting for approximately 36% of its total vehicle sales. It plans to sell 690,000 units in North America and 467,000 units in Europe. To meet the growing demand for hybrid vehicles, Hyundai announced plans to continuously improve its self-developed hybrid system. The company will expand the application of its hybrid system, previously centered on compact and mid-sized vehicles, to small, large, and luxury segments, doubling the number of hybrid models from 7 to 14. For Genesis, hybrid models will be offered for all models except for those that are EV-exclusive. The upcoming hybrid vehicles will feature premium technologies tailored for hybrids, such as smart regenerative braking and Vehicle-to-Load (V2L) capabilities that allow electricity to be supplied from the vehicle to external devices. Additionally, Hyundai set a goal of selling 1.33 million hybrid vehicles by 2028. At the new Hyundai Motor Group Metaplant America (HMGMA) in Georgia, USA, which is set to begin operations in the fourth quarter of this year, the company plans to produce not only EVs like the IONIQ 5 and the large electric SUV IONIQ 9 but also hybrid vehicles. To counter the slowing pace of global electrification, Hyundai also announced the introduction of an Extended Range Electrified Vehicle (EREV). EREVs are vehicles that combine the benefits of internal combustion engines and electric vehicles, operating on electric power while using an engine to generate electricity and support battery charging. EREVs will offer unique driving qualities specific to EVs and are expected to have a range of over 900 km on a full charge, serving as a bridge in the transition to electrification. Hyundai plans to start mass production of EREVs in late 2026 in North America and China, with full-scale sales beginning in 2027. In the North American market, Hyundai and Genesis brand D-segment (mid-sized) SUVs will be prioritized, with an annual sales target of over 80,000 units. The company is also actively working to strengthen its battery capabilities. As a global company that uniquely possesses the full battery system lineup, including internal combustion engines, hybrids, EVs, and hydrogen fuel cell vehicles, Hyundai aims to enhance its battery cell competitiveness and advance battery safety technologies. To this end, the company plans to develop affordable nickel-cobalt-manganese (NCM) batteries by 2030. Hyundai is also continuously advancing battery safety-related technologies, with plans to further enhance the pre-diagnosis technology for battery abnormalities within the Battery Management System (BMS). Positioning itself as a "mobility game-changer," Hyundai is focused on the development of software-defined vehicles (SDVs) and various new mobility businesses. In line with this, Hyundai stated that it is continuously advancing its autonomous driving technology. The company is establishing a system that automatically collects autonomous driving data and trains AI models, and it is developing autonomous driving computing hardware that ensures safety and reliability in all situations. Hyundai also unveiled its 'Energy Mobilizer' strategy to strengthen its hydrogen energy technology and business capabilities. As a prepared energy company during the transition to a hydrogen-based energy paradigm, Hyundai aims to secure global leadership. By the end of this year, the company plans to introduce an eco-friendly logistics system at HMGMA and establish a hydrogen mobility ecosystem centered around HMGMA. Additionally, it plans to expand its fuel cell system lineup into various fields, including trams, ships, light aircraft, generators, and heavy equipment. To achieve these goals, Hyundai will invest KRW 120.5 trillion (USD 86.9 billion) over the next decade and has also unveiled a mid-to-long-term financial strategy to achieve an operating profit margin of over 10% on a consolidated basis by 2030. The 10-year investment plan includes KRW 54.5 trillion (USD 39.3 billion) for R&D investment, KRW 51.6 trillion (USD 37.2 billion) for facility investment, and KRW 14.4 trillion (USD 10.4 billion) for strategic investment. Chang Jae-hoon, CEO of Hyundai Motor, stated, "The Hyundai Way is a flexible response system unique to Hyundai Motor for securing sustainable leadership in an uncertain market environment," adding, "We will create a new future centered around the two pillars of mobility and energy." He further emphasized, "Hyundai Motor will go beyond automobile manufacturing to expand into various mobility areas, strengthening its position as a game-changer. We will also strengthen our role as an energy provider, realizing a hydrogen society and maintaining our global top-tier leadership during the energy transition period." #HyundaiMotor #investment #HyundaiWay #hybridcars #electricvehicles #EREV #autonomousdriving #batterytechnology #mobility #hydrogentechnology
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- Samsung to Launch XR Device with Google by Year-End, Targeting 'Game Changer'
- Roh Tae-moon, head of Samsung Electronics' MX Business Division, is moving forward with plans to release a new XR (Extended Reality) device in collaboration with Google by the end of this year, despite setbacks faced by competitors Apple and Meta. Samsung is preparing to shake up the XR market by strengthening the ecosystem for XR software and content, focusing on AI, connectivity, and health management. As reported by the IT industry on the 28th, both Apple and Meta, which had previously introduced XR devices, are struggling in the XR market. Meta recently halted the development of its XR device, codenamed 'La Jolla,' which was initially planned for release in 2027, reportedly due to the inability to meet the target price of $1,000. Apple has also faced challenges, with Bloomberg reporting in June that the company had paused development of its next-generation XR device, the 'Vision Pro 2,' and shifted focus to a lower-cost XR model due to disappointing sales of the original Vision Pro, which launched in February 2023. With Vision Pro sales falling short, Apple reduced its annual sales target from 3 million units to 900,000 units. Market research firm IDC predicts that only 400,000 units of Vision Pro will be sold this year. Despite the global XR market still being in its early stages, Samsung Electronics plans to launch its XR device as scheduled by the end of the year. Roh Tae-moon had previously announced at the Galaxy Unpacked event in Paris in July that Samsung would release the new XR device within the year, in partnership with Google and Qualcomm. Samsung is expected to learn from the shortcomings of Apple's Vision Pro, which has been criticized for prioritizing hardware technology over the consumer experience. Forbes remarked, "The Vision Pro is technically impressive, but nobody really wants it," adding that while it can be used for gaming, it lacks compelling uses in other areas. Instead, Samsung is likely to focus on building an ecosystem that allows consumers to experience a wide range of XR content, rather than just emphasizing hardware. According to IT media outlet SamMobile, Samsung's XR strategy will focus on AI, connectivity, and health management. Unlike Apple, which did not integrate AI into its Vision Pro due to delays in launching 'Apple Intelligence,' Samsung is already widely utilizing Galaxy AI and is likely to incorporate AI into its XR device. Samsung is also strengthening its AI collaboration with Google, which could play a significant role in its XR offerings. SamMobile noted, "The application of Galaxy AI could break down many barriers between XR users and virtual reality," adding that generative AI would help users have an immersive and intuitive experience. Furthermore, the use of AI virtual assistants like Bixby could offer unique experiences such as virtual keyboard typing, communication with other users, executing voice commands, and editing content, setting Samsung's device apart from the Vision Pro. Samsung is also integrating its XR device with Google's Android Wearable OS, which is expected to provide strong connectivity across various devices, a key advantage over Apple's Vision Pro, which has been criticized for its limited compatibility with iOS devices and Android devices. Health management is also expected to be a key feature of Samsung's XR device. The device is anticipated to be connected with Samsung's wearable devices like the Galaxy Watch and Galaxy Ring, allowing users to monitor health data such as heart rate in real-time through XR augmented reality displays. However, price remains a significant factor. Apple's Vision Pro is priced at $3,499 (approximately KRW 4.66 million), and many users have expressed dissatisfaction with the cost. Meta also failed to achieve its $1,000 (approximately KRW 1.33 million) target price. IT media outlet TechRadar predicts that Samsung's XR device will be priced similarly to the Vision Pro, around $3,000 (approximately KRW 4.01 million), noting that it is unlikely to be priced lower given the performance expected. Leaked information suggests that Samsung's XR device will be equipped with Qualcomm's Snapdragon XR2 Gen 2 CPU, a mobile processor with performance similar to the M2 chip used in the Vision Pro. The device is also expected to come with 16GB of memory, the same as the Vision Pro. #Samsung #XRdevice #Google #RohTaemoon #VisionPro #Meta #AItechnology #Qualcomm #wearabletech #healthmanagement
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- SK Hynix to Widen Gap with Samsung in HBM4, Kwak Noh-jung Targets Mass Production as Early as October
- Kwak Noh-jung, CEO of SK Hynix, has begun efforts to widen the gap with competitors in the sixth generation of High Bandwidth Memory (HBM), known as HBM4. SK Hynix is expected to focus on mass-producing HBM4 for the first time globally, in collaboration with Taiwan’s TSMC, while ensuring a stable yield rate (the ratio of finished products). According to industry sources on the 28th, SK Hynix is likely to enter the tape-out stage as early as October this year, preparing for mass production of HBM4, the sixth generation of HBM. This move is aimed at supplying HBM4 for NVIDIA's next-generation AI semiconductor "Rubin" scheduled for next year. Tape-out refers to the process of transferring the physical design of a semiconductor to the manufacturing plant. Typically, after tape-out, the finished semiconductor can be shipped within 3 to 4 months. This indicates that preparations for mass production of HBM4 in the first half of 2025 are progressing smoothly. SK Hynix's schedule is slightly ahead of Samsung Electronics, which plans to proceed with HBM4 tape-out by the end of this year and aim for mass production in the second half of 2025. Having successfully mass-produced HBM3E, the world's first, in March this year, SK Hynix is confident in leading the market with HBM4 as well. HBM4 significantly improves performance compared to its predecessor, HBM3E. At the International Memory Workshop (IMW) 2024, held on May 13, Kim Kwi-wook, head of SK Hynix's HBM Advanced Technology Team, stated, "The power efficiency of HBM4 will be improved by 30% compared to HBM3E," and "Bandwidth will increase by 1.4 times, and integration by 1.3 times." To achieve these performance improvements, the logic die, a component connecting the GPU and HBM, will be produced using TSMC's 5nm foundry process rather than SK Hynix's existing DRAM process. By applying an ultra-fine process to the logic die, which accounts for 40% of the total HBM power consumption, power usage can be significantly reduced, and performance enhanced. The semiconductor industry is closely watching the synergy that could result from the collaboration between SK Hynix, the leader in HBM, and TSMC, the leader in foundry services. In contrast, Samsung Electronics is reportedly planning to use its in-house 4nm foundry process for producing the logic die. Kim Kwang-jin, an analyst at Hanwha Investment & Securities, commented, "The collaboration between SK Hynix and TSMC is a very positive factor," adding, "It will not be easy for latecomers to close the technology gap." From the perspective of HBM4 mass production, SK Hynix is expected to focus on quickly securing stability. SK Hynix has decided to use the same 12-13nm (1b) process for HBM4 as it did for HBM3E and is putting all its efforts into expanding its 1b DRAM production capacity. On the other hand, Samsung Electronics has opted for a more advanced 11-12nm (1c) process, aiming for superiority in fine processing. Their strategy involves introducing a new process in advance to disrupt the HBM market, but it is expected to take some time to achieve stable yields since it is a first-time implementation. Samsung Electronics struggled to stabilize yields and manage heat with its HBM3E, which used the 14nm (1a) process. Kwak Noh-jung is also actively responding to the growing demand for customized semiconductors, with HBM4 as a starting point. Leveraging the experience gained from collaboration with its largest HBM customer, NVIDIA, SK Hynix has begun preparations to supply customized HBM that meets the needs of other big tech companies. The collaboration with TSMC, which leads not only in foundry services but also in packaging, could also be a strong advantage in the field of customized HBM. Ryu Sung-soo, Vice President in charge of the HBM business at SK Hynix, stated at the 'Icheon Forum 2024' on the 19th, "All members of the Magnificent 7 (M7) are asking us to customize HBM for them," and added, "As we face a major turning point in the paradigm shift with increasing demands for custom products, we will make the most of these opportunities." #SKHynix #HBM4 #KwakNohjung #TSMC #SamsungElectronics #semiconductors #massproduction #AItechnology #customizedHBM #semiconductorindustry
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- Kang Sin-ho of CJ CheilJedang Focuses on European Markets to Overcome Domestic Slump
- Vice Chairman Kang Sin-ho, CEO of CJ CheilJedang, is focusing on expanding into overseas markets to overcome the challenges faced by the company’s food business in the sluggish domestic market. In particular, he is targeting the European market as a key strategic area and is intensifying efforts to increase consumer touchpoints through strengthened marketing and expanding sales channels, drawing significant attention to these initiatives. As of the 27th, CJ CheilJedang is accelerating its efforts to expand its market reach to neighboring countries using its subsidiaries in Germany, the UK, and France as a foothold in the European market. To increase engagement with local consumers in Europe, the company is also leveraging social media for marketing. On Bibigo’s Instagram account in the Netherlands, posts have been shared showing ordinary consumers preparing Bibigo dumplings with their own unique seasoning styles. These posts were originally shared by consumers on their own accounts and then reposted by the Bibigo Netherlands account. Many Instagram users responded positively in the comments, with several noting that the dishes "look delicious." On Bibigo’s German Instagram account, they are not only showcasing regular processed foods but also sharing ways to use Bibigo sauces. For example, a video was posted demonstrating a recipe where salmon is marinated in a seasoning made with Bibigo’s gochujang and sesame oil, then cooked and added to a salad. The post included relatively detailed instructions. The efforts to increase touchpoints with European consumers extend beyond social media marketing. During the Paris Olympics, CJ CheilJedang welcomed numerous visitors and business partners in central Paris. They also organized events to introduce Korean food to major media outlets. CJ CheilJedang plans to continue raising brand awareness of Bibigo in Europe even after the Olympics by hosting pop-up stores, tasting events, and other promotional activities. CJ CheilJedang is also focusing on expanding the distribution channels for its Bibigo products. The company is particularly increasing Bibigo's presence in major retail channels. In Germany, where CJ CheilJedang first entered the European market, Bibigo products have been strengthening their sales base by entering leading supermarkets such as Edeka (Germany's largest supermarket chain since 2019), Globus, Tegut, and REWE. As a result, Bibigo's dumplings have seen their market share in Germany rise sharply from 18% in 2018 to 48% in 2023, securing the top position. Recently, CJ CheilJedang further expanded its online distribution channels by launching an exclusive brand page, the "Bibigo Store," on Amazon Germany. In the UK, Bibigo products are already available in major supermarkets such as ASDA and Ocado, with recent efforts to introduce products in Sainsbury's as well. A CJ CheilJedang representative explained, "Initially, the food business in the European market targeted a small number of Koreans, but now the strategy is focused on the general European population. Expanding sales through major retail channels is part of our efforts to broaden the base for Korean food in Europe, where demand for Korean products is rapidly growing." Indeed, the European market is considered a "strategic region" for CJ CheilJedang as it seeks to expand its global footprint. The value of the European market is increasing daily, particularly as domestic food business struggles due to the slowing domestic economy. Compared to the more established U.S. market, Europe offers higher growth potential, with CJ CheilJedang achieving an average annual sales growth rate of 38% in Europe between 2020 and 2023. Vice Chairman Kang Sin-ho has experience achieving success in overseas markets with Bibigo, even during his first term as CEO of CJ Logistics. Kang Sin-ho, who was appointed CEO of CJ CheilJedang in 2020 after leading the company's food business division, moved to CJ Logistics as CEO in 2021. He returned to CJ CheilJedang in February this year. During his first term as CEO of CJ CheilJedang, Kang focused on expanding the food business in the U.S. market with the Bibigo brand, contributing to CJ CheilJedang surpassing KRW 1 trillion in annual operating profit for the first time in 2020. #CJCheilJedang #Bibigo #KoreanFood #EuropeanMarket #KangSinHo #foodbusiness #distributionchannels #Germany #UK #globalexpansion
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- KHNP Faces Hurdles in Czech Nuclear Plant Bid, Hwang Joo-ho Step In, but Intellectual Property Risk Persists
- Korea Hydro & Nuclear Power (KHNP) is facing challenges in securing a contract for the Dukovany nuclear power plant in the Czech Republic, with the final contract expected in March next year. However, disputes over intellectual property rights with the American nuclear power company Westinghouse are causing friction. Despite KHNP President Hwang Joo-ho personally engaging in discussions with Westinghouse, the American company's stance has not changed, making it difficult to alleviate related concerns. As of the 27th, Korea Hydro & Nuclear Power (KHNP) is facing ongoing challenges in its bid for the Dukovany nuclear power plant project in the Czech Republic due to a dispute with the American nuclear energy company Westinghouse over intellectual property rights. This conflict arises as the final contract is expected to be signed in March next year. Westinghouse has maintained its position that KHNP requires its approval to proceed with the Czech nuclear project. A KHNP representative commented on Westinghouse's recent press release, stating, "Westinghouse is merely reiterating its previous claims, which are currently being addressed through ongoing litigation and arbitration. Westinghouse made similar claims when the Czech Republic announced KHNP as the preferred bidder." On August 26th (local time), Westinghouse announced that it had filed an objection with the Czech Anti-Monopoly Office regarding KHNP's selection as the preferred bidder for the construction of two new reactors at the Dukovany nuclear power plant. Westinghouse claims that the Korean-designed APR-1000 reactor, which KHNP intends to export to the Czech Republic, and its predecessor, the APR-1400, are based on Westinghouse's technology. Westinghouse asserts, "The design of KHNP's APR-1000 and APR-1400 reactors utilizes the second-generation 'System 80' technology, for which Westinghouse holds the patent. KHNP does not own the original technology and does not have the right to allow third parties to use it without Westinghouse's permission." KHNP President Hwang Joo-ho has expressed a strong commitment to reaching an "amicable agreement" regarding the intellectual property dispute with Westinghouse. However, despite Hwang's efforts, the intellectual property risk remains unresolved. Earlier this month, President Hwang visited Washington, D.C., where he met with Westinghouse executives on August 7th and 8th. During these meetings, Hwang discussed the intellectual property dispute, signaling his intent to resolve the conflict through dialogue and negotiation. However, despite Hwang's determination, the fact that Westinghouse has directly lodged a complaint with the Czech government suggests that the meetings did not yield significant progress. The South Korean government has also been involved in efforts to resolve the intellectual property dispute with Westinghouse. However, the recent objection filed by Westinghouse has undermined these efforts. Ahn Deok-geun, Minister of Trade, Industry, and Energy, also visited Washington, D.C., around the same time as President Hwang, where he met with U.S. Energy Secretary Jennifer Granholm to conduct the "Korea-U.S. Energy Ministerial Meeting." During a press interview in Washington, Minister Ahn stated, "While the two countries are in discussions, fundamentally, this is an issue that must be resolved between the companies. Nevertheless, we will continue to discuss the establishment of a cooperative framework at the government level to support such efforts." On the 24th, the Presidential Office stated, "We will engage in discussions with the United States under the strong framework of the U.S.-Korea alliance to ensure there are no setbacks in the export of nuclear power plants to the Czech Republic." The office added, "There is a broad consensus between the U.S. and South Korean governments on the need for cooperation in the entire energy sector, including nuclear power, renewable energy, and hydrogen." The Presidential Office further mentioned, "The government is conducting discussions with the U.S. through various channels to amicably resolve the dispute between the nuclear power companies of both countries." Given the government's involvement in facilitating negotiations, many believe it is unlikely that the bid for the Czech nuclear power project will be entirely derailed. However, there is increasing uncertainty about whether the contract for the Czech nuclear power plant will be signed as scheduled. In this context, Westinghouse has suggested that a resolution to the intellectual property dispute is not expected to be reached soon. The company stated, "We will actively protect our intellectual property rights through international arbitration and litigation in the United States," and anticipated that "the arbitration results will not be available until the latter half of 2025." On August 26th (local time), Czech broadcaster "Televizní noviny" reported, "The two companies must reach a settlement by March 2025. Otherwise, it will be difficult to complete the project on time." However, there are also voices in the Czech Republic questioning the legitimacy of Westinghouse's objection. According to Czech News Agency (CTK), Ladislav Kříž, spokesperson for Czech power company ČEZ, stated, "There are security regulations for the bidding process for the new Dukovany nuclear power plant. Bidders are not allowed to raise objections during the selection process." Westinghouse's relationship with South Korea dates back to the construction of "Kori-1," the country's first commercial nuclear power plant, which is now decommissioned. At that time, South Korea lacked the technical expertise to build a nuclear power plant, so it chose Westinghouse's reactor design, which included key nuclear technologies. During the construction of Kori-1, Westinghouse transferred essential nuclear technologies to South Korea. South Korea's nuclear technology developed under the cooperation with Westinghouse. However, as the country built more nuclear power plants, it sought to move beyond technical assistance and develop its own nuclear technologies. These efforts culminated in the development of the Korean-designed APR-1400 reactor in 2002. From 1992, when the project was selected as a National Leading Technology Development Project, it took ten years, involving around 2,000 skilled personnel and a budget of KRW 233 billion (US$ 168 million). Although Westinghouse's "System 80+" technology was referenced during the development, all design and technical documents for the APR-1400 were developed and produced by South Korean companies. Additionally, all related technologies, including the core nuclear plant design code, reactor coolant pumps, and digital control systems for the APR-1400, were independently developed in South Korea. #KoreaHydroNuclearPower #KHNP #Westinghouse #CzechNuclearProject #APR1400 #intellectualpropertydispute #System80 #CzechRepublic #USKoreaAlliance #NuclearPowerTechnology
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- SK Innovation-SK E&S Merger Approved at Shareholders' Meeting, Park Sang-gyu: "Active Implementation of Shareholder-Friendly Policies"
- The merger proposal between SK Innovation and SK E&S has been approved at the extraordinary general meeting of shareholders. On the 27th, SK Innovation announced that the merger proposal passed with an approval rate of 85.75% from the attending shareholders during the extraordinary general meeting held at SK Seorin Building in Jongno-gu, Seoul, to approve the merger contract. As the merger proposal was a special resolution at the shareholders' meeting, it required the approval of at least two-thirds of the attending shareholders and at least one-third of the total issued shares. According to SK Innovation, 95% of the foreign shareholders who attended the meeting voted in favor of the merger proposal. This appears to have been influenced by the world's largest proxy advisory firms, ISS and Glass Lewis, which recommended approval of the merger. The merged entity of SK Innovation and SK E&S is scheduled to officially launch on November 1. The two companies announced their merger plan on the 17th of last month to proactively respond to uncertain internal and external environments and to establish a solid foundation for growth in future energy businesses. Once the merged entity is launched, it will become the largest private energy company in the Asia-Pacific region, with assets of KRW 100 trillion (US$ 72.1 billion) and revenue of KRW 88 trillion (US$ 63.5 billion). Based on last year’s business reports, SK Innovation's operating profit was KRW 1.9039 trillion (US$ 1.373 billion), and SK E&S’s operating profit was KRW 1.3317 trillion (US$ 960.3 million). SK Innovation expects that the combination of its petroleum and battery businesses with SK E&S’s liquefied natural gas (LNG) and renewable energy businesses will enhance the competitiveness of its energy business portfolio. In the long term, the company plans to grow into a firm that provides an "Energy Solution Package" tailored to the demands of the global energy market. Furthermore, the merger is expected to establish a stable financial and profit structure. By integrating SK E&S, which generates stable profits from LNG and electricity, SK Innovation's profit stability is expected to improve, and the company's financial soundness is anticipated to strengthen based on the significantly increased profitability of the merged entity. SK Innovation anticipates that the synergy effect from the merger will lead to an increase in EBITDA by more than KRW 2.2 trillion (US$ 1.586 billion) by 2030, with a target of achieving a total EBITDA of KRW 20 trillion (US$ 14.42 billion). SK Innovation President Park Sang-gyu stated, "We will make our best efforts to ensure that this merger, which will serve as a foundation for the company's long-term stability and growth, is completed smoothly," adding, "Additionally, after the completion of the merger, we will actively review and implement various shareholder-friendly policies." #SKInnovation #SKEandS #merger #energybusiness #AsiaPacific #LNG #renewableenergy #shareholdersmeeting #financialstability #growthstrategy
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- Hanwha Aerospace Set to Surpass KRW 1 Trillion in Operating Profit as CEO Son Jae-il Accelerates Defense Growth
- Hanwha Aerospace is on track to continue its strong performance from the first half of the year, with expectations of surpassing KRW 11 trillion (approximately USD 7.9 billion) in sales and KRW 1 trillion (approximately USD 720 million) in operating profit for the first time in its history. Son Jae-il, CEO of Hanwha Aerospace, is expanding his management initiatives to elevate the company to a new level, capitalizing on the recent strong performance. According to industry sources on the 26th, Son is pursuing aggressive management strategies, including restructuring the business, establishing overseas production bases, and recruiting top talent, all aimed at further improving the company’s performance. The increased demand for defense products due to the prolonged Russia-Ukraine war and the Israel-Hamas conflict has led to a boom for domestic defense companies. The combined operating profit of the five major South Korean defense companies, including Hanwha Aerospace, Hanwha Systems, Hyundai Rotem, Korea Aerospace Industries (KAI), and LIG Nex1, surpassed KRW 900 billion (approximately USD 650 million) in the first half of this year. Hanwha Aerospace, the leader among these companies, posted record-breaking quarterly results in Q2 2024, with consolidated sales of KRW 2.786 trillion (approximately USD 2 billion) and an operating profit of KRW 358.8 billion (approximately USD 259 million). This represents a year-on-year increase of 46.0% in sales and a 356.5% surge in operating profit. For the first half of 2024, the company recorded sales of KRW 4.6343 trillion (approximately USD 3.3 billion) and an operating profit of KRW 396.2 billion (approximately USD 286 million), marking increases of 17.4% and 31.8%, respectively, compared to the same period last year. According to financial information provider FnGuide, the consensus for Hanwha Aerospace’s 2024 sales and operating profit stands at KRW 11.1979 trillion (approximately USD 8.1 billion) and KRW 1.0774 trillion (approximately USD 777 million), respectively. If these projections are met, it will be the first time the company surpasses KRW 11 trillion (approximately USD 7.9 billion) in sales and KRW 1 trillion (approximately USD 720 million) in operating profit. To facilitate this leap forward, Son has tightened his grip on management innovation. He recently restructured the company to focus more on the defense business. On August 14, Hanwha Aerospace held an extraordinary shareholders' meeting, where they approved a plan to spin off two subsidiaries, Hanwha Vision and Hanwha Precision Machinery, and create a new holding company, Hanwha Industrial Solutions. Hanwha Vision, an AI solutions subsidiary, and Hanwha Precision Machinery, which specializes in semiconductor equipment, are both 100% owned by Hanwha Aerospace. These subsidiaries will be integrated under the newly established holding company, Hanwha Industrial Solutions, further solidifying the company’s defense-oriented business structure, just 17 months after the merger of Hanwha Defense and Hanwha Aerospace. The new holding company, Hanwha Industrial Solutions, is set to be relisted on September 1, with Hanwha Aerospace following suit on September 27. Son has also established a defense production facility in Australia to aggressively enter the international defense market, particularly the Indo-Pacific region. The H-ACE facility in Geelong, Australia, is the first overseas production base for a South Korean defense company. Mass production of the AS9 self-propelled howitzer and the AS10 ammunition resupply vehicle, Australian adaptations of the K9 and K10 models, is set to begin in the second half of this year. With the completion of the Australian plant, Hanwha Aerospace aims to supply defense products to members of AUKUS (the U.S.-Australia-U.K. security pact) and Five Eyes (an intelligence alliance among the U.S., U.K., Canada, Australia, and New Zealand). The company plans to use H-ACE as a production base not only for Australia but also for key allied countries, anticipating an increase in defense product demand in the Indo-Pacific region due to geopolitical tensions. A company representative stated, "With the full operation of the Australian production base, we will respond effectively to security demands in the Indo-Pacific region and contribute to the economic revitalization of both South Korea and Australia. The establishment of H-ACE also signals that Hanwha Aerospace can be a key partner for neighboring countries." In addition to expanding its international presence, Hanwha Aerospace is focused on recruiting top talent. Recently, the company appointed Michael Smith, a former executive at Lockheed Martin, the largest U.S. defense company, as the head of Hanwha Defense USA. Smith, who served in the U.S. Navy, has over 20 years of experience at Lockheed Martin, Huntington Ingalls Industries (HII), and BAE Systems. Moreover, the company has created a new position overseeing global operations and appointed former Samsung Electronics Vice President Ahn Jang-hyuk to the role. Ahn, a graduate of the Korea Military Academy, has held executive positions at Samsung Electronics’ Network Support Team, SEVT (Samsung Electronics Vietnam Thainguyen), and the automotive division in France. Beyond international expansion, Hanwha Aerospace is also strengthening its internal capabilities in research and development (R&D) and production management. In April, the company recruited several researchers from the Korea Aerospace Research Institute (KARI), who played key roles in the development of South Korea’s Naro and Nuri space launch vehicles. A company representative commented, "We are proactively recruiting talent to respond to future business changes and the demand for skilled personnel. Our focus is on securing the workforce needed to establish ourselves as a leading defense, aerospace, and space company." According to electronic disclosures, the company’s defense-related facilities—including the Changwon 2 and 3 plants, Yeosu, Daejeon, and Boeun plants—operated at an average utilization rate of 89.96% in the first half of this year, the second highest among South Korea's five major defense companies, following Hyundai Rotem (107.5%). Hanwha Systems, LIG Nex1, and KAI followed with utilization rates of 84.76%, 74.8%, and 71.2%, respectively. The securities industry expects Hanwha Aerospace to maintain strong performance in the second half of the year. Yang Seung-yoon, an analyst at Eugene Investment & Securities, noted, "With increased exports to Poland, the company is expected to continue its solid performance in the second half. The current order backlog alone is projected to sustain export growth until 2028." Byun Yong-jin, an analyst at Hi Investment & Securities, added, "Given the nature of defense budgets, which are executed annually, the fourth quarter is traditionally the peak season for defense companies, with a concentration of order deliveries and new contracts. Both domestic production and export volumes are expected to increase in the second half." #HanwhaAerospace #SonJaeil #defenseindustry #militaryproduction #globalexpansion #businessgrowth #Australia #IndoPacific #mergersandacquisitions #R&D
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- Jun Young-hyun Poised to Deliver HBM and Foundry Gains as Samsung Approaches 100 Days Under New Leadership
- As he approaches his 100th day in office, Jun Young-hyun, Vice Chairman and Head of the Semiconductor (DS) Division at Samsung Electronics, is fully committed to restoring the company's semiconductor competitiveness. Jun was brought in urgently in May 2024 to help overcome Samsung's "semiconductor crisis," and expectations are high that visible progress will be made in high-bandwidth memory (HBM) and foundry (semiconductor contract manufacturing) by the end of the year. According to industry insiders, although Jun has only been in his role as DS Division Head since May 21, the internal atmosphere at Samsung Electronics has reportedly transformed significantly. Jun will reach his 100th day in office on August 28. In his inaugural address on May 30, Jun candidly acknowledged the severe challenges facing Samsung's semiconductor business, stating, "We are facing a very difficult situation compared to the past," and admitting that Samsung's technological leadership was under threat. Following this, the company's research teams reportedly shifted to emergency management mode. On July 4, Jun established a dedicated HBM development team under his direct supervision to improve Samsung's competitiveness in AI semiconductor HBM development, which had been lagging behind competitors. This effort recently culminated in the successful supply of the fourth-generation HBM, HBM3, to Nvidia. It is also expected that Samsung will secure a supply contract with Nvidia for HBM3E (fifth-generation) by the third quarter. Unlike its competitor SK Hynix, which began supplying HBM3E to Nvidia in March 2024, Samsung struggled with issues related to heat dissipation and power consumption, leading to delays in certification. However, thanks to the efforts of the dedicated HBM team, these issues have been largely resolved, and a formal supply contract with Nvidia is anticipated soon. Kim Jae-joon, Executive Vice President of Samsung Electronics' Memory Business Unit, stated during the second quarter earnings conference call on July 31, "We will start mass production and supply of HBM3E 8-layer products from the third quarter. The revenue share of HBM3E within our HBM portfolio will exceed the mid-teens in the third quarter and expand to around 60% by the fourth quarter." The total HBM revenue for Samsung Electronics is expected to quadruple this year compared to last year and double again by 2025. However, achieving the planned production expansion hinges on improving yield rates (the ratio of usable products). Min-sook Chae, an analyst at Korea Investment & Securities, noted, "Samsung needs to nearly double its yield rate compared to the first half to meet the planned HBM supply volumes. The biggest challenge in the second half will be improving the yield of Nvidia-oriented products based on the already tested HBM3." In the foundry business, Jun is also expected to make a bold move by ramping up mass production of the second-generation 3nm process in the second half of this year. Samsung Electronics was the first in the semiconductor industry to start mass production of the first-generation 3nm process in 2022, but it failed to secure early yield rates, leading to difficulties in attracting major customers, such as big tech companies, apart from its own production needs. As a result, the market share gap between Samsung Electronics and TSMC in the foundry sector has more than doubled recently. As of the first and second quarters of 2024, TSMC held a 62% market share in the global foundry market, while Samsung Electronics' share was 13%, with the gap widening to 49 percentage points—the largest since 2017. However, the yield rate of the first-generation 3nm process, now in its third year, has improved to around 60%, the benchmark for foundry productivity. Jun has reportedly set a goal of quickly raising the yield rate of the second-generation 3nm process to 60% based on his accumulated experience, aiming to reach a level close to TSMC's estimated 70% yield rate for 3nm. If Samsung Electronics can meet customer requirements in terms of yield and performance, it could potentially emerge as an alternative to TSMC. Currently, TSMC's latest process utilization rate is at 100%, and the company recently announced an 8% price increase for its foundry services, adding to the cost burden for customers. In fact, AMD CEO Lisa Su hinted in May that the company might consider using Samsung Electronics' 3nm process. Sang-wook Park, an analyst at Shinhan Securities, said, "Samsung Electronics is increasingly likely to win 3nm foundry orders from AMD, following Qualcomm. Given that TSMC's utilization rate is nearing 100%, it seems inevitable that some customers will diversify their orders." #SamsungElectronics #JunYounghyun #semiconductor #HBM #foundry #Nvidia #TSMC #3nm #yieldrate #globalmarket #technologyleadership
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- Hwang Sung-woo Eyes Major M&A to Boost Samsung SDS's Cloud Business with KRW 5 Trillion in Cash
- Hwang Sung-woo, CEO of Samsung SDS, is actively seeking acquisition targets in the cloud sector, leveraging the company's substantial cash reserves of around KRW 5 trillion (approximately USD 3.6 billion). Hwang has repeatedly indicated since last year that he plans to use this cash for mergers and acquisitions (M&A), raising expectations for concrete M&A results by the end of the year. According to the IT industry on the 23rd, Samsung SDS is continuously exploring aggressive investment strategies, including M&A, particularly in the cloud sector, which includes generative AI. With the logistics business—a major revenue stream for Samsung SDS—entering a downturn, the need for a new profit breakthrough has become critical. The logistics segment, which once surpassed IT services in revenue, has been in decline since the COVID-19 pandemic. In this context, there is growing pressure for Hwang to further enhance Samsung SDS's IT service competitiveness through bold M&A initiatives, especially as he focuses on expanding profitable cloud and digital logistics businesses. The potential for large-scale acquisitions has been anticipated since Hwang took the helm of Samsung SDS in 2020. The company is well-positioned for aggressive investments, with cash and cash equivalents, including short-term financial instruments, increasing from KRW 4.1942 trillion (approximately USD 3 billion) at the end of 2020 to KRW 5.4136 trillion (approximately USD 3.9 billion) by mid-2024. During last year’s annual shareholders' meeting, Hwang remarked, "We are considering how to best utilize our cash reserves and are evaluating potential acquisition targets." However, no concrete M&A developments have been announced yet. The last acquisition by Samsung SDS was in May 2023, when it acquired Emro, a specialist in Supply Chain Management (SRM) solutions, for KRW 111.8 billion (approximately USD 81 million), making Samsung SDS the largest shareholder and strengthening its enterprise cloud capabilities. While Emro has shown strong performance post-acquisition, including record sales and accelerated global expansion, the scale of the investment fell short of market expectations for a billion-dollar deal, given Samsung SDS's significant cash reserves. Industry insiders believe that Samsung SDS is likely to pursue M&A to enhance its cloud business, particularly in generative AI, which the company has been heavily focusing on, including the recent launch of AI platforms. The cloud business, which saw a 20% year-over-year increase in revenue in Q2 2024, is expected to be a key growth driver. In May, the company introduced solutions like the "Brity Copilot," incorporating generative AI, and the generative AI-based cloud platform "FABRIX." Revenues from these solutions are expected to start contributing significantly to the company’s financials in the second half of the year. A company representative stated, "Our priority is to invest in research and development (R&D) and mergers and acquisitions (M&A) to drive the company's growth through profits." #SamsungSDS #HwangSungwoo #cloudbusiness #generativeAI #M&A #ITservices #logisticsbusiness #cashreserves #businessgrowth #corporatestrategy
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- DL E&C Establishes Foothold in Kazakhstan, Seeks Plant Construction Opportunities in New Market
- DL E&C is setting up a base in Kazakhstan to explore business opportunities in the region. With Kazakhstan's abundant resources, particularly in oil and gas, the country is expected to see an increase in petrochemical plant projects. This move is anticipated to help DL E&C secure more overseas contracts. According to industry sources on the 23rd, DL E&C approved the establishment of a local branch in Kazakhstan during a board meeting held on the 14th. A representative from DL E&C explained, "Kazakhstan is a resource-rich country with abundant oil and mineral resources, making it a promising market for various projects in the future. We are establishing a local branch to explore business opportunities and respond proactively." Kazakhstan, the world's ninth-largest country by land area, is endowed with rich oil, gas, and mineral resources. Its strategic location, bridging Europe and East Asia, also positions it as a hub for transit trade. As the largest oil-producing country in Central Asia, Kazakhstan ranks 12th globally in confirmed crude oil reserves, with 30 billion barrels, accounting for 1.93% of the world’s total. It also holds the 25th largest confirmed natural gas reserves globally, amounting to 2.3 trillion cubic meters. The significance of Kazakhstan has increased as an alternative market and bypass route for Russian petrochemicals following the outbreak of the Ukraine-Russia war. Kazakhstan has maintained a neutral stance on the Ukraine conflict. Moreover, last year, Kazakhstan approved a comprehensive plan that includes large-scale investments in major petrochemical projects. This plan aims to enhance productivity in this sector, solidifying the country’s position as a natural resource powerhouse. Under the comprehensive plan, Kazakhstan aims to increase oil production to 105.5 million tons and gas production to 82.1 billion cubic meters by 2027, with a government budget investment of $37.3 billion. Given DL E&C's extensive experience and expertise as the first Korean company to export overseas plants, the company is well-positioned to secure various plant construction opportunities in Kazakhstan. DL E&C is strategically positioning itself to seize new opportunities in Kazakhstan by establishing a local presence, leveraging its extensive experience in large-scale plant construction projects both domestically and internationally. In 2018, DL E&C completed the Residue Upgrading Complex (RUC) for S-Oil, the largest single refining facility project in Korea, with a total project cost of KRW 5 trillion. Internationally, DL E&C has been involved in numerous significant projects in the Middle East, such as the Rabigh II project in Saudi Arabia, which involved constructing a massive petrochemical complex along the Red Sea coast (2016), and the New Ammonia Project in Saudi Arabia (2018), where a large ammonia production plant was built. Recently, DL E&C has enhanced its modular construction techniques, applying them to overseas petrochemical and plant projects to reduce construction time and costs. The modular method involves dividing complex plants into transportable sections, which are pre-fabricated offsite and then assembled on location. The South Korean government's active economic cooperation with Kazakhstan is also a favorable factor. In June, President Yoon Suk-yeol visited the Ak Orda Presidential Palace in Astana, Kazakhstan, where he signed a memorandum of understanding with Kazakh President Kassym-Jomart Tokayev to strengthen cooperation in energy and infrastructure. During the visit, President Yoon emphasized the success of infrastructure projects like the Almaty Ring Road and the Shymkent Combined Heat and Power Plant and expressed the intention to continue cooperation to achieve further success in Kazakhstan's energy infrastructure expansion. Securing plant construction contracts in Kazakhstan would not only help DL E&C diversify its project portfolio but also reduce its reliance on the volatile Middle Eastern market. According to the International Contractors Association of Korea, DL E&C's overseas orders amounted to only KRW 40 billion in the first half of this year, a stark contrast to the USD 450 million (approximately KRW 600 billion) achieved in the first half of last year. The company had set a target of KRW 3 trillion in plant orders for this year, but its first-half achievement rate was less than 3.3%. During the second quarter earnings call, DL E&C revised its plant order target down to KRW 2.8 trillion. The Korea Construction Industry Institute noted in a report published in December last year that South Korean construction companies are accelerating their efforts to establish a foothold in Kazakhstan, the most active partner among Central Asian countries. The report also highlighted that various government departments, public institutions, and the International Contractors Association of Korea are continuing to promote and support Public-Private Partnership (PPP) projects in the region, which should expand opportunities for South Korean companies to participate in these projects. #DLEnC #Kazakhstan #plantconstruction #newmarkets #globalbusiness #construction #Koreanbusiness #infrastructure #expansion #KoreainKazakhstan
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- Stretchable Displays: Still Facing Significant Challenges on the Road to Commercialization
- Samsung Display recently unveiled its next-generation "stretchable display," which can be deformed like rubber, drawing significant attention. However, challenges such as high costs, fragility, and performance issues suggest that commercialization is still far off. According to industry reports on the 23rd, Samsung Display introduced a stretchable display with 120 PPI (pixels per inch) resolution, utilizing micro LED technology. This stretchable display can be stretched or twisted like rubber, returning to its original shape, and can even be manipulated into three-dimensional forms. The recently showcased stretchable display represents a significant improvement in resolution and elongation rate compared to the stretchable display first unveiled in 2017 using dynamic AMOLED technology. Despite seven years of development, the technology still lags behind existing display products. For example, the display on the Galaxy S24 Plus, made with OLED, boasts a resolution of 510 PPI, while Samsung Display's OLEDoS (OLED on Silicon) display for VR applications offers an ultra-high resolution of 3500 PPI. U.S. IT media outlet SamMobile commented, "Samsung Display calls the stretchable panel a 'next-generation display,' but it might be stretching (exaggerating) the truth." The media also raised doubts about the practical application of the technology, citing issues with high costs and fragility. As the technology is still in the pre-commercialization stage, specific pricing details have not been disclosed. However, devices incorporating the latest stretchable display technology are expected to be significantly more expensive than existing products. For reference, the Samsung Galaxy Z Fold, released in 2019 with the latest foldable display at the time, was priced at KRW 2,398,000, more than twice the price of the iPhone 11, which launched around the same time for KRW 990,000. In addition to high costs, the durability of the stretchable display remains a concern. The technology may not yet be suitable for everyday devices that need to withstand significant impact. Market research firm Spherical Insights noted, "Stretchable displays have lower resolution and brightness compared to regular displays, and they are more susceptible to damage, resulting in a shorter lifespan. Due to these technical limitations, it may be difficult to apply them broadly across various devices." Samsung Display anticipates that the stretchable display could be used for 3D buttons, irregular surfaces on clothing or furniture, and other innovative applications. While acknowledging the impressive nature of the technology, SamMobile pointed out that finding consumer applications that justify the high cost will be a significant challenge. Industry insiders suggest that due to issues such as fragility, cost, and yield rates, it may take a considerable amount of time before stretchable displays are ready for practical applications. Currently, the technology is primarily seen as a showcase rather than a viable commercial product. However, the potential for future commercialization remains open as technological advancements continue. For instance, in June, a research team led by Professor Jang Kyung-in at DGIST (Daegu Gyeongbuk Institute of Science and Technology) successfully developed highly stable, stretchable electronic devices with improved durability and flexibility. The team applied a stretchable hybrid polymer to electronic devices, enabling stable operation even under deformation and external impact, with potential applications in industries such as displays and wearables. In 2021, Samsung Advanced Institute of Technology (SAIT) published research on using stretchable displays for real-time heart rate monitoring in the journal Science Advances. This technology could have particular benefits in medical applications, allowing for long-term biometric data measurement without removing the device. Considering that Samsung invested 11 years in developing flexible display technology before launching the Galaxy Z Fold in 2019, experts believe that stretchable displays hold significant potential for future IT devices, including foldable or rollable smartphones. Additionally, there is speculation that stretchable displays could be used in specialized fields such as medicine, where they could offer unique advantages. #stretchabledisplay #displaytechnology #innovation #flexibledisplay #electronics #technologychallenges #commercialization #techdevelopment #Koreaninnovation #futuretech
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- Hanwha Galleria's Stock Surges by Over 15% During the Day, Driven by Third-Generation Heir Kim Dong-seon's Large-Scale Tender Offer
- Hanwha Galleria's Stock Surges Amidst News of Large-Scale Tender Offer by Heir Kim Dong-seon Hanwha Galleria's stock price is experiencing a significant surge during trading hours, driven by the news that Kim Dong-seon, Vice President in charge of Future Vision at Hanwha Galleria and the third son of Hanwha Group Chairman Kim Seung-youn, is launching a large-scale tender offer to purchase KRW 54.4 billion worth of the company's shares. As of 9:59 AM on the 23rd, Hanwha Galleria's stock was trading at KRW 1,505 on the KOSPI market, up 15.50% (KRW 202) from the previous day's closing price. The stock opened at KRW 1,537, a 17.95% (KRW 234) increase, and has continued to show strong performance. At the same time, Hanwha Galleria's preferred shares also surged, rising 29.88% (KRW 720) to KRW 3,130, hitting the daily price limit and reaching the upper trading limit as soon as the market opened. Earlier in the day, before the market opened, Hanwha Galleria announced that Kim Dong-seon would invest KRW 54.4 billion of his personal funds to purchase 34 million common shares of Hanwha Galleria at KRW 1,600 per share through a tender offer. This offer price is 34% higher than the average closing price of KRW 1,190 over the past month and 23% higher than the previous day's closing price of KRW 1,303. With this tender offer, Kim Dong-seon's stake in Hanwha Galleria is set to increase from 2.3% to 19.8%. #HanwhaGalleria #KimDongseon #stockmarket #tenderoffer #stocksurge #Koreabusiness #investment #corporatenews #familybusiness #stocktrading
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- Kim Dong-seon, Third Son of Kim Seung-youn, Invests KRW 54.4 Billion to Acquire 17.5% of Hanwha Galleria's Shares through Tender Offer
- Kim Dong-seon, the third son of Hanwha Group Chairman Kim Seung-youn and Vice President in charge of Future Vision at Hanwha Galleria, is set to increase his stake in the company to nearly 20% through a tender offer for the company's shares. On the 23rd, Hanwha Galleria announced that Kim Dong-seon will initiate a tender offer to purchase 34 million common shares of Hanwha Galleria at KRW 1,600 per share from August 23 to September 11. The tender offer price is 34% higher than the average closing price of Hanwha Galleria's stock over the past month, which was KRW 1,190, and 23% higher than the closing price of KRW 1,303 on the 22nd. The 34 million shares that Kim intends to purchase represent a 17.5% stake in Hanwha Galleria's common stock. If the tender offer is successful, Kim’s ownership in Hanwha Galleria will increase from the current 2.3% to 19.8%. Kim plans to use personal funds amounting to KRW 54.4 billion (approximately USD 40.2 million) for the purchase. According to Hanwha Galleria, this tender offer reflects Kim's commitment to the company and his confidence in its future vision, particularly in light of the company's recent struggles. While Hanwha Galleria saw some success with its Five Guys hamburger franchise, its department store segment experienced declining sales, leading to the company's first operating loss since its listing. Kim Dong-seon, who was previously head of Hanwha Galleria's Strategy Division, was recently appointed to lead the company’s future vision efforts in August. Since last year, he has consistently acquired shares in Hanwha Galleria, with 137 purchases to date. Hanwha Galleria expressed optimism that a successful tender offer would significantly enhance shareholder value through a potential increase in stock price and heightened expectations for the company’s future value. Kim Young-hoon, CEO of Hanwha Galleria, stated, "In this unprecedented crisis of turning to losses, Kim Dong-seon has demonstrated a strong commitment to growing the company alongside its shareholders. The tender offer is expected to send a positive signal in terms of stock price and corporate value enhancement."
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- Samsung Electronics Transforms 'AI TV' into a 'Smart Home Hub,' Enhancing Picture and Sound Quality Automatically
- Samsung Electronics has unveiled plans to make its 'Artificial Intelligence (AI) TV' the central hub for integrating and controlling various Internet of Things (IoT) devices within the home. On the 22nd, Samsung Electronics held a demonstration event for reporters at the Samsung Electronics Digital Research Lab (R4) in Suwon, Gyeonggi-do, showcasing the 'AI TV' technology, which is a key component of the AI smart home life. The event was attended by key executives, including Yong Seok-woo, President of Samsung Electronics' Visual Display Business Division; Lim Seong-taek, Vice President of Samsung Electronics Korea; Kim Yong-jae, Vice President of Visual Display Development; and Kim Chul-ki, Vice President of Visual Strategy Marketing. President Yong, opening the event, stated, "AI TV not only provides an unparalleled immersive experience but also serves as the central device that connects all household devices," adding, "Samsung Electronics successfully launched this product earlier this year." Samsung Electronics then conducted a live demonstration of the AI TV, revealing its new features. First and foremost, Samsung's AI TV is positioned as the central hub of the company's smart home services. Various IoT devices in the home are connected around the AI TV, allowing users to check the status of devices and control them in real-time directly from the TV screen. Unlike LG Electronics, which recently acquired the Dutch IoT company 'Athom' and has a separate IoT hub, Samsung Electronics explained that its AI TV itself acts as the smart home hub. However, the installation of Samsung Electronics' IoT application 'SmartThings' is required on each device, and certain devices may need separate devices for integration. As the AI TV functions as the smart home hub, users can view all IoT devices installed in the home at a glance in 3D. Additionally, various information, such as notifications, usage statistics, and weather updates, can be accessed through the TV. Samsung Electronics also introduced user-customized AI features. The AI TV offers customized picture quality based on user settings. The AI can independently recognize the genre of the content, such as movies, sports, and nature, and adjust the picture quality to best suit the user. When playing games on Samsung's AI TV, the AI automatically detects the genre, such as first-person shooters (FPS), adventure, and role-playing games (RPG), and applies tailored screen settings. The AI TV also includes an 'AI upscaling' technology that automatically converts low-resolution videos into high-quality ones. For instance, full HD resolution can be upscaled to 8K resolution, providing clearer and more vivid images. Samsung Electronics explained that the AI can generate 36 or even 100 new pixels from a single pixel of information, delivering a natural high-definition display to users. During the demonstration, the company applied AI upscaling technology to a 20-year-old drama and a 30-year-old movie, showcasing how it clearly rendered even the details of hair strands and fabric textures. A company representative mentioned, "The AI upscaling technology operates on the device itself, utilizing a high-performance neural processing unit (NPU), and can be applied even without an internet connection." Samsung Electronics also unveiled 'Moving Sound Pro' and 'Active Voice Pro' technologies powered by AI. 'Moving Sound Pro' automatically detects the movement paths of objects within a video and uses the 16 speakers installed in the TV to produce sound that naturally follows the object's movement. For instance, if a motorcycle moves from right to left in the video, the sound of the motorcycle's engine will move from right to left accordingly. 'Active Voice Pro' separates background noise from the dialogue, making the characters' voices more prominent and easier to hear. A company representative explained, "Even if you need to turn on the vacuum cleaner or if children are being noisy while watching a movie or drama at home, you won't miss the dialogue." Samsung Electronics also showcased voice recognition features integrated with its intelligent assistant, 'Bixby,' on the AI TV. For example, when given a voice command like "Find the movie where detectives sell chicken," the AI TV will locate the relevant movie. It can also process two commands simultaneously. For example, saying, "Play the first movie and set the volume to 15," will execute both commands at once. Additional features were introduced to support visually impaired and hearing-impaired users. The 'Relumino Mode' helps visually impaired viewers by analyzing videos with AI and enhancing the outlines for clearer viewing. For hearing-impaired users who find the small size of sign language screens inconvenient, an AI function that automatically detects the position of the sign language screen and enlarges it was also implemented. #Samsung #AITV #smarthome #IoT #AIupscaling #SmartThings #Relumino #Bixby #MovingSoundPro #ActiveVoicePro
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- SK Group Accelerates Rebalancing in the Second Half, Choi Chang-won Aims to Secure Up to KRW 10 Trillion
- Choi Chang-won, Vice Chairman of the SK Supex Council, is pushing forward with SK Group’s rebalancing strategy, focusing on divesting subsidiaries and consolidating businesses in the second half of the year. This comes after significant reductions in the group’s subsidiaries in the first half, with expectations of securing up to KRW 10 trillion (approximately USD 7.2 billion) in additional liquidity by selling off non-core subsidiaries and assets. As of June 30, 2024, SK Group’s holding company, SK, reported in its half-year business report that the number of consolidated subsidiaries had decreased to 667, down by 49 compared to January 1, 2024. During this period, 13 new subsidiaries were established, 11 were merged, 9 were liquidated, and 42 subsidiaries, including Solar Ocean and Woori Fine Chem, were sold. One of the notable transactions was the sale of SK Rent-a-Car, which transitioned from a listed company to an unlisted one on January 31, 2024, and was sold to the global private equity firm Affinity Equity Partners for KRW 820 billion on August 20, 2024. This reduction in subsidiaries marks the first decrease since 2018, as SK Group had steadily increased its number of subsidiaries from 260 in 2018 to 716 in 2023. The group is now actively restructuring its portfolio to focus on future-oriented businesses. SK Group plans to reduce its number of subsidiaries further, aiming for just over 600 by the end of this year and around 500 by next year. Choi Chang-won has been a driving force behind this restructuring, emphasizing during a management meeting in the first half of the year that “it doesn’t make sense to have so many subsidiaries that we don’t even know by name or can’t properly manage. We need to drastically reduce them to a manageable number.” As of the first half of 2024, SK Group had already identified assets worth KRW 4.5 trillion (approximately USD 3.2 billion) for sale, more than triple the KRW 1.3 trillion identified at the end of 2023. Assets currently slated for sale include a 17.9% stake in SoCar, expected to be sold in September, and the home appliance division of SK Magic, the semiconductor materials business of SK Enpulse, and other holdings such as China’s ESR Cayman logistics centers. Further sales of high-value subsidiaries are expected in the second half. Notably, SK Specialty, a semiconductor specialty gas company fully owned by SK, is reportedly being considered for sale. SK Specialty, which holds a 40% global market share in cleaning gas NF3 (nitrogen trifluoride), is estimated to be valued at around KRW 3 trillion (approximately USD 2.2 billion). SK has confirmed that it is exploring "various strategic options, including the sale of SK Specialty's shares." Additionally, SK Innovation’s battery separator subsidiary, SK IE Technology (SKIET), is a likely candidate for a partial or full stake sale, including management rights. SKIET’s current market capitalization is approximately KRW 2.4 trillion (approximately USD 1.7 billion), with SK Innovation’s 61.2% stake valued at KRW 1.46 trillion (approximately USD 1.05 billion). Considering a premium for management rights, the company could fetch over KRW 2 trillion. Other potential sales targets include shares in the Chinese copper foil manufacturer Ronbay Technology and stakes in Vietnam’s Masan Group and Vingroup. Ronbay Technology is a leading global manufacturer of copper foil, supplying products to Chinese battery companies such as CATL. The company is valued at around KRW 4-5 trillion, with SK holding a 30% stake. SK is also likely to sell its 9.5% stake in Masan Group and its 6.1% stake in Vingroup, which it acquired between 2018 and 2019 for approximately KRW 1.7 trillion (USD 1.22 billion). SK has the option to exercise a put option to sell its stake in Masan Group by October 2024. SK Square, SK Group’s intermediate holding company, is also pursuing the sale of the online shopping platform 11st. However, the company’s current valuation has significantly dropped from KRW 2.7 trillion in 2018 to around KRW 500 billion, meaning SK Group is unlikely to recover much capital from this sale. Furthermore, SK and SK E&S’s 9.9% stake in the U.S. energy company Plug Power, which dominates the U.S. hydrogen forklift market with a 95% share, is also considered a potential asset for sale. The company is engaged in the development of hydrogen fuel cells and clean hydrogen initiatives. If SK Group successfully sells all of the assets currently being considered, it could secure up to KRW 10 trillion in cash. Kim Soo-hyun, a researcher at DS Investment & Securities, commented, “In the second half of the year, we expect improvements in the performance of major SK Group subsidiaries and the effects of rebalancing. The group has begun securing financial stability and may liquidate some of its investments, such as shares in Plug Power, to further enhance liquidity.”
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- Daewoo E&C Expands into North America: After Success in the U.S., Jung Won-ju Gears Up for Canada
- Daewoo E&C Expands into the Canadian Real Estate Market Following U.S. Success, Jung Won-ju Drives North American Business Growth Daewoo Engineering & Construction (Daewoo E&C) is making strides in the advanced markets of North America, moving beyond its success in the United States to challenge the Canadian real estate development market. Jung Won-ju, Chairman of Daewoo E&C and Vice Chairman of Jungheung Group, is actively working to expand the company’s overseas business. Following the integration of Daewoo E&C into Jungheung Group, the focus is now on penetrating the North American market. As of the 22nd, Daewoo E&C has been conducting preliminary preparation and review to fully enter the real estate development markets in Canada and the United States. This marks Daewoo E&C's first venture into Canada since the company was founded, following its acquisition by Jungheung Group. According to Daewoo E&C’s half-year report, the company’s board of directors approved the establishment of a local subsidiary in Canada during a meeting on May 9th. This move was initially aimed at participating in the Fraser River Tunnel Project in British Columbia, which required the establishment of a provincial or federal corporation as a prerequisite for doing business in the region. Canadian regulations demand the creation of a local entity for project execution, with requirements varying between provincial and federal corporations. Federal corporations require at least 25% of the board of directors to be Canadian residents and necessitate holding shareholder and board meetings in Canada. In contrast, provincial corporations generally have less stringent establishment and maintenance conditions. However, it was reported that Daewoo E&C’s plan to establish a Canadian subsidiary has been put on hold after the Daewoo-GS consortium was not selected for the Fraser River Tunnel Project. On July 24th, the British Columbia Ministry of Transportation and Infrastructure awarded the design and construction contract to a consortium led by Bouygues Construction, FCC (Fomento de Construcciones y Contratas), Pomerleau, and Arcadis. Despite this setback, Jeong Won-joo is expected to continue pushing forward with Daewoo E&C’s entry into the Canadian real estate development market. In an interview with a joint press corps in Hanoi, Vietnam, in July, Jeong expressed his commitment to entering the Canadian market, stating, "We will soon secure land for an apartment project in Toronto, and the development will proceed sequentially within the next two to three years." Jung has also explored the real estate markets in Toronto, Canada, and New York, USA, during a visit from April 27th to May 3rd, 2023. During his visit, he met with Sam Mizrahi, CEO of Mizrahi Developments, and discussed the progress of 'The One' condominium project in Toronto, an 85-story mixed-use building in the heart of the city. Although the project has faced delays due to the COVID-19 pandemic and rising interest rates, leading to a sale process, Jeong reviewed the project's current status and assessed the broader market conditions. In addition to his focus on Canada, Jeong is also pursuing opportunities in the United States as part of his broader strategy to establish Daewoo E&C as a global developer in advanced markets. Following the completion of Jungheung Group's acquisition of Daewoo E&C, the company established its U.S. investment subsidiary, Daewoo E&C USA Investment, on June 27th, 2022, to prepare for its entry into the U.S. market. During a board meeting in October 2023, Daewoo E&C approved the issuance of a Power of Attorney (POA) related to the establishment of the U.S. subsidiary, signaling a more formal entry into the U.S. market. For overseas subsidiaries to conduct business, a POA must be issued. This document authorizes a specific individual to undertake specific tasks within a defined period, ensuring smooth operations in areas such as trademarks, patents, and project execution. As of the first half of 2024, however, Daewoo E&C has not yet reported any revenue from its U.S. investment subsidiary, according to the company’s half-year report. Jung Won-ju, who has been meeting with various foreign dignitaries, key clients, and business partners nearly every month since the completion of the Jungheung Group’s acquisition of Daewoo E&C in March 2022, has made it clear that his goal is to lead Daewoo E&C into the international real estate development market. In his New Year’s address on January 3rd, delivered at Daewoo E&C's headquarters in Euljiro, Seoul, Jung emphasized, “There are limits to securing profits and growth through simple construction alone. We must achieve success as a developer who simultaneously handles both development and construction in overseas markets.” Jung Jeong-gil, a senior executive of Daewoo E&C and Jung Won-ju’s son, is expected to play a key role in overseeing the company’s North American operations, including its real estate development projects in the U.S. and Canada. Jeong Jeong-gil, who was recently promoted to Senior Vice President (Executive Vice President B) on November 10th, 2023, is widely regarded as the heir to Jungheung Group. While Daewoo E&C remains cautious about the risks associated with entering the Canadian real estate market, the company is carefully considering its approach. A Daewoo E&C representative commented to Business Post, "Daewoo E&C is taking a conservative and slow approach to the Canadian market. Given that Canada is an unfamiliar market for Daewoo E&C, we will manage risks by collaborating with local companies." The representative added, "Although the scale of our current projects in Canada is not large, we are considering various development opportunities. If necessary, we will make final decisions in accordance with the local conditions at the appropriate time."
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- CJ CGV's Management Normalization: Heo Min-heoi Frustrated by Sluggish Chinese Film Market
- Heo Min-heoi, CEO of CJ CGV, has been gradually resolving the challenges of normalizing the company’s management, but the underperformance of the Chinese business, which recorded operating losses in the second quarter, remains a source of disappointment. The performance of the Chinese business is crucial for CJ CGV, as it is closely linked to the listing of its subsidiary on the Hong Kong Stock Exchange. However, the sluggishness of the Chinese film market, even during the peak summer season, has left CEO Heo frustrated. According to a comprehensive analysis of the Chinese film industry and theater market as of August 21, this year's summer audience turnout in the Chinese film market is lower than the same period last year. Data from Chinese ticketing site Maoyan indicates that cumulative box office revenue from June to August surpassed 10 billion yuan (approximately KRW 1.9 trillion) by the morning of the 17th. The total audience reached 243 million. However, this performance falls significantly short of last year’s summer figures, which saw ticket sales of 18 billion yuan and an audience of 440 million. For CJ CGV, which considers the Chinese market to be of significant importance, this is an unwelcome development. In the second quarter, CJ CGV posted consolidated sales of KRW 429.9 billion and an operating profit of KRW 22.3 billion, maintaining a streak of five consecutive profitable quarters. Compared to the second quarter of last year, sales increased by 7.6%, and operating profit rose by 36.4%. However, in China, the company recorded an operating loss of KRW 8.9 billion, worsening from the same period last year, mainly due to reduced sales caused by a lack of anticipated local films. The Chinese subsidiary also suffered an operating loss of KRW 1.1 billion in the first quarter. Although the Chinese subsidiary barely returned to profitability last year with an operating profit of KRW 500 million after enduring persistent losses following the COVID-19 pandemic, the weak performance in the first half of this year and the overall sluggishness of the Chinese film market make it uncertain whether the subsidiary will maintain profitability for the year. China is considered a significant film market, rivaling the U.S. in scale, and is crucial for CJ CGV. Moreover, the performance of the Chinese market is closely related to the listing of CGI Holdings, a subsidiary managing CJ CGV’s Asian business, on the Hong Kong Stock Exchange. CGI Holdings is an overseas intermediate holding company overseeing businesses in China, Vietnam, and Indonesia. The consortium of financial investors, including MBK Partners and Mirae Asset Securities PE, is reportedly pressuring for capital recovery due to the delayed listing of the company. These financial investors could exercise a drag-along right, meaning that if the listing fails, they could force CJ CGV to sell its entire stake in CGI Holdings. CJ CGV faces the dilemma of either facilitating the listing on the Hong Kong Stock Exchange to provide an exit for these investors or buying back their shares directly. Although unlikely, if the drag-along right is exercised, CJ CGV could lose its business foundation in the Asian market. CJ CGV’s decision last month to purchase CGI Holdings shares worth KRW 126.3 billion was aimed at providing these financial investors with a capital recovery opportunity. Currently, the financial investors hold a 19.28% stake in CGI Holdings, and negotiations are ongoing regarding this stake. As of the end of June, CJ CGV's cash and cash equivalents stood at approximately KRW 499.8 billion. Even if the company were to buy back all the shares held by financial investors, it would still have some remaining cash. However, CJ CGV is already burdened by a high debt ratio of 412.9%, with interest expenses significantly impacting the company. Additionally, current liabilities due within the next year exceed KRW 1 trillion, indicating that the company does not have much financial flexibility. For CJ CGV, the most favorable scenario would be for CGI Holdings to meet the performance requirements for listing on the Hong Kong Stock Exchange, allowing it to proceed with the IPO. This makes the underperformance of the Chinese business all the more frustrating. Heo Min-heoi, who was appointed as the "relief pitcher" for CJ CGV in 2021 during the challenging business environment caused by COVID-19, has been working on normalizing the company's management. Last year, CJ CGV achieved a consolidated operating profit of KRW 49.1 billion, marking its first profitable year since the pandemic, and has continued to maintain profitability this year, showing solid performance. Heo has also completed a major capital expansion plan to improve both the financial structure and cash flow by incorporating CJ OliveNetworks, a subsidiary with strong financials and cash flow. As a result, CJ CGV's debt ratio, which stood at 805.7% at the end of the first quarter before the effects of the CJ OliveNetworks integration were reflected, improved significantly to 412.9% by the end of the second quarter. In the second-quarter earnings press release, Heo stated, "With the new incorporation of CJ OliveNetworks in the second quarter, we can expect to create significant synergies through 'NEXT CGV' going forward. In the third quarter, we plan to continue our growth momentum by enhancing the value of content through various anticipated films presented in specialty theaters like ScreenX and 4DX." #CJCGV #HurMinho #Chinesemarket #cinemaindustry #businessstrategy #marketrecovery #HongKongIPO #CGIHoldings #filmindustry #financialinvestors
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- Yuhan Corporation Aims for '2 Trillion Jackpot' This Year with Leclaza, Cho Wook-je Pushes for 'Global Top 50'
- Cho Wook-je, CEO of Yuhan Corporation, has made history by leading the company into the U.S. market with its non-small cell lung cancer treatment, Leclaza, a move that has left other domestic pharmaceutical companies in admiration. Given that CEO Cho envisions making Yuhan Corporation one of the top 50 global pharmaceutical companies, the U.S. approval of Leclaza is a significant milestone. Although the company still faces the challenge of more than doubling its sales to achieve this goal, the approval of Leclaza demonstrates Yuhan's growing capabilities in new drug development, making this ambitious target seem attainable. On the 21st, according to sources in the pharmaceutical industry, Yuhan Corporation's non-small cell lung cancer treatment, Leclaza (ingredient name: Lazertinib), has received approval from the U.S. Food and Drug Administration (FDA), raising expectations that it could become South Korea's first blockbuster drug. In the pharmaceutical and biotech industry, a blockbuster drug is defined as a product that generates annual sales of $1 billion (approximately KRW 1.3 trillion). To date, no drug developed in South Korea has reached blockbuster status. However, with Leclaza being the first cancer treatment to receive FDA approval for sale in the United States, there is growing anticipation that it could become the country's first blockbuster drug. On the 20th (local time), Leclaza was approved by the FDA for use in combination with Janssen's Rybrevant as a first-line treatment for adult patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) who have confirmed epidermal growth factor receptor (EGFR) exon 19 deletions or exon 21 L858R substitution mutations. The global market for non-small cell lung cancer treatments is estimated to be around KRW 8 trillion. Johnson & Johnson, which holds the global rights for Leclaza, anticipates that the combination therapy of Leclaza and Rybrevant could generate over $5 billion (approximately KRW 6.5 trillion) in sales. With Leclaza's FDA approval, Yuhan Corporation's CEO, Cho Wook-je, has taken a significant first step toward his goal of propelling the company into the ranks of the world's top 50 pharmaceutical companies. According to the pharmaceutical industry publication PharmaExec.com, Dr. Reddy's Laboratories, an Indian pharmaceutical company, was ranked 50th globally in 2023, with sales of $3 billion (approximately KRW 3.9 trillion). To achieve Cho's goal of making Yuhan Corporation one of the top 50 global pharmaceutical companies by 2026, the company's 100th anniversary, Yuhan will need to generate at least KRW 4 trillion in sales within the next two years, making Leclaza's role crucial. Regarding the approval of Leclaza, Cho Wook-je stated, "This approval is not the end but a milestone that will serve as a foundation for Yuhan Corporation to launch globally innovative new drugs representing Korea and to achieve our goal of becoming one of the top 50 global pharmaceutical companies." However, it will not be easy for Yuhan Corporation to exceed KRW 4 trillion in sales within the next two years with just one product like Leclaza. Yuhan Corporation is expected to surpass KRW 2 trillion in consolidated sales this year, considering the milestone payments (stage-by-stage technology fees) from Leclaza's U.S. launch. Although this would be the first time a domestic pharmaceutical company has exceeded KRW 2 trillion in sales, the company will need to generate an additional KRW 2 trillion in sales within the next two years to reach the top 50 pharmaceutical companies by 2026. In 2018, Yuhan Corporation signed a technology transfer agreement worth a total of $1.25 billion with Janssen Biotech, a subsidiary of the global pharmaceutical giant Johnson & Johnson. While Yuhan still has $1.05 billion (approximately KRW 1.3412 trillion) remaining in potential milestone payments related to Leclaza, 40% of the royalties from this technology transfer must be paid to Oscotec, the original developer of Leclaza. Given that Yuhan does not receive the entire sales amount but only royalties (fees) from the transferred technology, the need to secure additional revenue through new drug development becomes even more critical. The securities industry predicts that, with Leclaza's approval in the U.S., the drug could generate sales of up to KRW 5 trillion by 2032. Yuhan Corporation is expected to earn royalties of around KRW 200 billion to KRW 600 billion from this, but even with an additional annual revenue of up to KRW 600 billion, it will be challenging for the company to surpass the annual sales threshold of KRW 3 trillion. However, Yuhan Corporation's successful FDA approval of Leclaza, a key product in the oncology sector, is seen as a significant recognition of its technological capabilities. This achievement opens up possibilities for future technology transfers related to other new drugs currently under development. Yuhan Corporation plans to release interim results for its Phase 1B clinical trial of YH35324 (an allergy treatment) for idiopathic urticaria in the second half of this year. Additionally, the company aims to complete Phase 1 clinical trials for a treatment for metabolic-associated steatohepatitis (MASH), which was licensed to the German pharmaceutical company Boehringer Ingelheim, by the end of this year. Lee Hee-young, a researcher at Daishin Securities, commented, "Yuhan Corporation's FDA approval is a landmark case as it marks the first time a domestically developed cancer drug has been approved for sale in the U.S. This not only highlights the significance of Leclaza's launch but also sets the stage for continuous cash flow generation, which could facilitate future mergers and acquisitions and strengthen Yuhan's new drug pipeline." #YuhanCorporation #Leclaza #FDAApproval #biopharma #cancertherapy #technologytransfer #pharmaceuticals #MASH #clinicaltrials #newdrugdevelopment
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- Lotte Department Store's Poor Performance, How Jung Joon-ho Will Meet Shin Dong-bin's Expectations?
- Jung Joon-ho, the president of Lotte Department Store and head of the department store division at Lotte Shopping, experienced a setback as the company’s operating profit for the first half of the year lagged behind Hyundai Department Store, traditionally considered the third in the industry. Jung was promoted to president at the end of last year during the regular executive reshuffle, receiving the trust of Lotte Group Chairman Shin Dong-bin. Given the need to meet expectations with this year's performance, the pressure on Jung in the second half of the year is expected to increase significantly. According to the retail industry on the 20th, the operating profit of Lotte Department Store in the second half of the year will be crucial for Jung Joon-ho. Lotte Department Store recorded an operating profit of KRW 149.1 billion (approximately USD 107.5 million) in the first half of the year. This amount falls short of its competitors, with Shinsegae Department Store earning KRW 195.5 billion (approximately USD 140.9 million) and Hyundai Department Store earning KRW 174.1 billion (approximately USD 125.5 million). For Jung, the fact that Lotte Department Store earned less in operating profit than Hyundai Department Store, which is ranked third in the department store industry, is a painful point. Despite Lotte Department Store’s sales being KRW 446.2 billion (approximately USD 321.7 million) higher than Hyundai Department Store’s, it earned less profit, indicating a significant struggle in securing profitability. Considering that Lotte Department Store achieved the highest operating profit among the top three department stores last year, the reversal in this year’s performance is concerning. This year marks the first time since Hyundai Department Store began disclosing its performance data in 2018 that Lotte Department Store has lagged behind in operating profit for two consecutive quarters. However, the opportunity for Jung to secure the top position in annual operating profit through Lotte Department Store is not entirely lost. If he can turn the situation around in the second half, it may still be possible for Lotte Department Store to claim the number one spot in operating profit for the second consecutive year. In fact, securities companies are forecasting that Lotte Department Store will achieve the highest operating profit among the top three department stores this year. Out of the four securities firms that have released reports on Lotte, Shinsegae, and Hyundai Department Stores, three predict that Lotte Department Store will secure the top spot in annual operating profit this year. Only Daishin Securities expects Shinsegae Department Store to take the lead in operating profit. To reverse the trend in the second half, Jung is expected to focus on attracting customers through store renovations. A Lotte Department Store official stated in a call with Business Post, "This year, the newly renovated Time Villas Suwon has shown good performance, so we will strengthen competitiveness by sequentially renovating key stores such as the main branch and Jamsil branch. We will also focus on enhancing competitiveness in regional stores by constructing complex malls in Daegu Suseong and Incheon Songdo and establishing a task force to revitalize small and medium-sized stores." Indeed, on the 20th, Lotte Department Store reopened its Incheon branch with the largest premium beauty section in the Gyeonggi area, covering 3,967 square meters (approximately 1,200 pyeong) and featuring 51 beauty shops. This renovation of the Incheon branch follows the large-scale overhaul of the premium food hall, Food Avenue, which opened in December last year. Jung appears to be making efforts to transform Lotte Department Store into a place that customers want to visit. The reason Hyundai Department Store was the only one of the top three to see an increase in operating profit in the first half of the year is largely attributed to its success in attracting customers, particularly at The Hyundai Seoul. The second-half performance is likely to be a test for Jung to prove his management capabilities. Among the top three department stores, Lotte Department Store saw the largest decline in operating profit in the first half of the year compared to the same period last year. Hyundai Department Store's operating profit increased by 11.2% during the same period, while Shinsegae Department Store's operating profit decreased by 3.4%, which is minimal compared to Lotte Department Store's 24.3% decline. Lotte Department Store explained that its operating profit decreased due to the impact of one-time costs and rising fixed costs such as inflation, as reflected in the second-quarter earnings report. The closure of the Gyeongnam Masan branch at the end of June also contributed to the costs. Jung needs to achieve success in expanding Lotte Department Store's operating profit because it is a key division within Lotte Shopping. Last year, Lotte Department Store accounted for 79% of Lotte Shopping's operating profit, excluding losses from other major divisions. In the second quarter of this year, the domestic department store business contributed 89% of the profits, highlighting the importance of Lotte Department Store to Lotte Shopping's overall performance. Not only for Lotte Department Store but also for Jung personally, a rebound in performance is essential. Having been promoted to president last year, it is crucial for him to demonstrate capabilities that match his new title both inside and outside the group. Jung's symbolic significance within Lotte Group is not small. Jung is originally from Shinsegae Department Store. He is the first externally recruited CEO for Lotte Shopping. Jung was appointed as CEO and Vice President of Lotte GFR, a fashion subsidiary of Lotte Group, in 2019, and he was promoted to president in just four years after joining the company.
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- Shinhan Bank's CEO Jung Sang-hyuk Aims to Boost Group's Overseas Business to 30%
- **Shinhan Bank's Vietnam and Japan Operations Lead the Way, Jung Sang-hyuk at the Forefront of Expanding Group's Global Presence** Jung Sang-hyuk, the CEO of Shinhan Bank, has once again demonstrated the bank's strength in global operations, leveraging the strong performance of its subsidiaries in Vietnam and Japan during the first half of the year. Thanks to the solid results from Shinhan Bank's overseas operations and its active market expansion, Shinhan Financial Group is being recognized for moving closer to its goal of achieving 30% of its net income from global business. According to Shinhan Bank's semi-annual report released on the 20th, the bank's overseas subsidiaries generated a net income of KRW 296.2 billion (approximately USD 213.6 million) in the first half of the year, the highest among the four major banks (KB, Shinhan, Hana, and Woori). Notably, Shinhan Bank was the only one among these banks to increase its net income compared to a year ago. Shinhan Vietnam Bank and SBJ Bank in Japan, which are Shinhan Bank's main overseas subsidiaries, saw their net income increase by 12.1% and 16.6%, respectively, compared to the previous year, driving the overall growth. The combined net income of these two subsidiaries in the first half amounted to KRW 212.7 billion (USD 153.4 million), accounting for 71% of Shinhan Bank's overseas subsidiary net income. SBJ Bank's continued growth in Japan, often considered a "graveyard" for foreign banks, is attributed to its early adoption of a localization strategy, which helped it firmly establish itself in the market. Shinhan Bank has deep-rooted connections with the Japanese capital market, having been established on the foundation of capital from Korean-Japanese investors. In 2009, Shinhan Bank converted its Japanese branch into SBJ Bank, becoming the second overseas bank to establish a subsidiary in Japan after Citibank. In Vietnam, Shinhan Bank's strategic efforts to expand its market influence, starting with the establishment of a local office in 1993 as the first Korean financial institution to do so, are now bearing fruit. Shinhan Bank is the top foreign bank in Vietnam but continues to make significant efforts to expand its presence in the market. On the 15th, Shinhan Bank held an inauguration ceremony for a new building in Vietnam, which brings together five of its local subsidiaries, including banking, card, securities, life insurance, and DS, with Shinhan Financial Group Chairman Jin Ok-dong and CEO Jung Sang-hyuk in attendance. At the inauguration ceremony, Chairman Jin Ok-dong remarked, "Shinhan Financial Group provides differentiated financial solutions through the collaboration of group companies that have entered the Vietnamese market together. We will do our best to achieve even greater progress in Vietnam through the joint occupancy of this new building." Expanding the global business share is considered a key task for domestic financial holding companies. With the domestic market facing criticism for relying heavily on interest income and the increasing difficulty of securing future customers due to low birth rates and an aging population, there is a pressing need to find new avenues for growth. Shinhan Financial Group has set a target of achieving 30% of its net income from global operations by 2030, and Shinhan Bank is seen as the frontrunner in expanding the global business share. In the first half of the year, Shinhan Bank accounted for approximately 72% of Shinhan Financial Group's total overseas net income. Thanks to Shinhan Bank's strong overseas performance, Shinhan Financial Group raised the share of its global business profit to 15% in the first half, up by about 3.2 percentage points compared to a year ago. Jung Sang-hyuk plans to solidify Shinhan Bank's position as a global leader by increasing its influence not only in Japan and Vietnam but also in other regions. India is also a focus for Jung. In April, Shinhan Bank acquired a 10% stake in Credila, a leading student loan company in India, for KRW 250 billion (USD 180.3 million). This was considered a bold investment, ranking among the top five investments Shinhan Bank has made in other entities. At the signing ceremony, Jung stated, "The importance of the Indian market is growing due to the restructuring of global supply chains, geopolitical stability, and the growth potential based on its 1.4 billion population. We will strengthen our competitiveness through collaborations with various local companies and further solidify our position as the 'No. 1 Global Bank.'" #ShinhanBank #JungSanghyuk #Vietnam #Japan #GlobalBusiness #ShinhanFinancialGroup #SBJBank #GlobalExpansion #India #Credila
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- LG Electronics Achieves 'Triple 7' Milestone, Urgently Seeking M&A Opportunities
- LG Electronics CEO Cho Joo-wan is speeding up corporate restructuring efforts to achieve the 'Triple 7' goal he set for 2030, which includes a 7% compound annual growth rate, a 7% operating profit margin, and increasing enterprise value sevenfold. Cho has indicated that he could invest up to KRW 2 trillion (approximately USD 1.44 billion) in mergers and acquisitions (M&A) this year, suggesting that he will actively seek major investment opportunities in new growth areas such as vehicle components and heating, ventilation, and air conditioning (HVAC) in the second half of the year. On the 20th, LG Electronics announced that Cho would hold an Investor Forum on the 21st at LG Science Park in Magok, Seoul, to present the progress of LG Electronics' business portfolio transformation to key domestic and international institutional investors and securities analysts. This forum comes about a year after he declared the company's long-term strategic direction under the '2030 Future Vision,' allowing for a mid-term review of the progress. In July 2023, Cho unveiled the '2030 Future Vision,' outlining plans to expand platform-based service businesses, accelerate the shift to business-to-business (B2B) operations, and foster new businesses to achieve the 'Triple 7' goal by 2030. However, in 2023, LG Electronics' revenue growth rate was only 0.9%, and its operating profit margin was 4.2%, falling far short of the targets. Nevertheless, the company has begun to make progress towards these goals this year, thanks to improved profitability in its home appliances and vehicle component businesses. As of the first half of 2024, LG Electronics recorded a year-on-year revenue growth rate of 5.8% and an operating profit margin of 5.9%. These results are attributed to the structural changes in the Home Appliance & Air Solution (H&A) business and the profitability improvements in the Vehicle Component Solutions (VS) business. Roh Geun-chang, a researcher at Hyundai Motor Securities, commented, "LG Electronics' efforts to enhance profitability are expanding in the platform and B2B sectors. The VS division is expected to maintain its profitability despite the decline in electric vehicle demand, thanks to increased shipments of high-value-added components." However, there are concerns that new growth drivers are necessary to achieve the 'Triple 7' target. Even if the operating profit margin of 7% is achievable within the current business structure, maintaining a 7% compound annual revenue growth rate and raising enterprise value (EV) to seven times EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is virtually impossible without significant M&A activities. Given that LG Electronics' EV/EBITDA ratio was 3.8 times at the end of 2023, the company would need to nearly double its enterprise value. Cho Joo-wan has stated his intent to invest about KRW 2 trillion in M&A, but so far this year, the company has only succeeded in acquiring smaller firms like the robotics company Bear Robotics (for KRW 80 billion) and the European smart home platform ATHOME (for an undisclosed amount). The market has yet to see the much-anticipated large-scale M&A. However, there are signs that LG Electronics is actively searching for M&A candidates in the vehicle components sector. In April of this year, LG Electronics' VS division hired experts specializing in M&A and joint venture investments, fueling speculation that a significant M&A announcement in the vehicle components business may be imminent. LG Electronics has a history of expanding through M&A in the vehicle components sector, having made its largest-ever acquisition in 2018 when it purchased the automotive lighting company ZKW for KRW 1.01 trillion. In 2021, it acquired the automotive cybersecurity company Cybellum for KRW 165 billion. The company is also seeking acquisition targets in the HVAC sector. LG Electronics has been growing its HVAC business for over a decade since acquiring LS Mtron's HVAC division in 2011. Recently, the demand for cooling systems has surged due to the overheating issues in data centers, which are critical for artificial intelligence (AI) computations. Cho reportedly considered acquiring the HVAC division of the American multinational corporation Johnson Controls but ultimately decided against it due to the high price of USD 8 billion (approximately KRW 10 trillion). Despite this, LG Electronics appears to have ample capacity to pursue large-scale M&A deals. Kim Dong-won, a researcher at KB Securities, noted, "With over KRW 8 trillion (approximately USD 5.77 billion) in cash reserves, LG Electronics is likely to expand its M&A activities in the future. Since 2018, the company has maintained a growth strategy involving the acquisition of more than two companies every two years on average."
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- Samsung Electronics Gathers KRW 100 Trillion for M&A, Lee Jae-yong Targets Robotics and Automotive Deals
- Lee Jae-yong, Chairman of Samsung Electronics, is gearing up to deploy over KRW 100 trillion (approximately USD 72.1 billion) in cash reserves, with plans to actively pursue mergers and acquisitions (M&A) in robotics, automotive electronics, and system semiconductors. Among the top acquisition targets under consideration are robotics company Rainbow Robotics, in which Samsung already holds a stake, and the automotive division of Germany's Continental AG. According to Samsung Electronics' 2024 semi-annual report, the company had KRW 100.7955 trillion (approximately USD 72.7 billion) in cash and cash equivalents, including short-term financial products, as of June 30, 2024. This marks an increase of over KRW 9 trillion (approximately USD 6.5 billion) from KRW 91.7718 trillion (approximately USD 66.2 billion) at the end of 2023. The rise in cash reserves is attributed to the sale of shares in Dutch semiconductor equipment maker ASML, which netted around KRW 5 trillion (approximately USD 3.6 billion), and the improved semiconductor market conditions this year. Further cash inflows are expected in the second half of the year. Park Yoo-ak, an analyst at Kiwoom Securities, predicts that Samsung Electronics will surpass market expectations with an estimated operating profit of KRW 31 trillion (approximately USD 22.4 billion) on sales of KRW 166 trillion (approximately USD 119.7 billion) for the second half, driven by increased sales of high-margin products like HBM3 and HBM3e and higher-than-expected price increases in standard DRAM. With this financial flexibility, Samsung is well-positioned to pursue large-scale M&A. As Lee enters his third year as chairman, there is pressure to secure future growth engines and deliver tangible results. Upon returning from a business trip to Europe in July, Lee remarked, "I've had many meetings, but it's difficult to share details. We need to show results." Robotics is one of the key areas Samsung is focusing on as a future growth driver. At CES 2024 in Las Vegas, the company unveiled "Bolly," an intelligent companion robot, and is expected to launch the wearable robot "BotFit" as early as September. There is also a high likelihood that Samsung will acquire the remaining shares of Rainbow Robotics, in which it already holds a 14.99% stake, having invested KRW 86.7 billion (approximately USD 62.5 million) last year. Samsung currently holds a call option to purchase up to 59.99% of Rainbow Robotics' shares. Rainbow Robotics specializes in collaborative robots designed to interact with humans, and it is reportedly testing the deployment of dual-arm collaborative robots in Samsung's semiconductor production lines. The automotive electronics division of Germany's Continental AG is another strong acquisition candidate. Continental has put its advanced driver-assistance systems (ADAS) and display businesses on the market, and the management of Samsung's automotive subsidiary, Harman, is reportedly keen on acquiring them. The acquisition is expected to create synergies with Samsung's semiconductor foundry business. Kim Dong-won, an analyst at KB Securities, noted that if Samsung acquires Continental's automotive division, it could expand its automotive business from infotainment to high-performance computing chips, benefiting the Exynos Auto chip line and positively impacting Samsung's foundry business. Samsung Electronics has not engaged in significant M&A activity since acquiring Harman in 2017. This hiatus was partly due to legal risks faced by Lee and the challenges posed by high valuations and regulatory approvals for global companies. However, recent developments signal a shift in strategy. In May, Samsung's subsidiary Samsung Medison acquired the French AI-based medical startup Sonio, and in July, Samsung acquired Oxford Semantic Technologies, a UK-based startup specializing in "knowledge graph" technology—a key component in personalized AI systems. Despite the growing cash reserves, there is speculation that Samsung will approach large-scale M&A cautiously, given the global economic uncertainty. Overpaying for an acquisition could lead to the "winner's curse" if a recession follows. Samsung's decision to pass on acquiring the HVAC division of Johnson Controls, a U.S.-based multinational corporation, was reportedly due to the high price tag of $8 billion (approximately KRW 10 trillion). Global economic concerns are also reflected in Warren Buffett's Berkshire Hathaway, which has significantly reduced its stock portfolio and amassed a record $277 billion (approximately KRW 370 trillion) in cash as of the end of Q2 2024. Samsung's DX Division CEO and Vice Chairman Han Jong-hee also indicated that large M&A deals will take time, stating in April, "We are looking at M&A opportunities in various business units, including home appliances, visual displays, networks, and medical devices, but large acquisitions are complex and require time to negotiate terms with the other party." #SamsungElectronics #LeeJaeyong #MA #Robotics #AutomotiveElectronics #SystemSemiconductors #RainbowRobotics #ContinentalAG #BusinessStrategy #SouthKoreaTech
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- Samsung E&A Confident Despite Declining Performance, Namkoong Hong Bolstered by Record Overseas Orders
- Namkoong Hong, CEO of Samsung E&A, is signaling strong future growth as the company achieved record-breaking overseas orders in the first half of the year. Despite a significant drop in Samsung E&A's construction capability ranking and a sharp decline in quarterly performance compared to the previous year, the outlook remains positive. According to data from the Overseas Construction Information Service (OCIS) on the 19th, Samsung E&A secured $6.081 billion (approximately KRW 8.146 trillion) in overseas orders between January 1 and July 31, 2024, placing it at the top of the list, ahead of second-ranked Hyundai Engineering by more than KRW 2 trillion (US$ 1.44 billion). The main driver behind Samsung E&A's leading position in overseas orders was the contract for the expansion of the Fadhili Gas Plant in Saudi Arabia. The Fadhili Gas Plant expansion project involves increasing the capacity of the existing gas plant located about 80 km from Jubail in Saudi Arabia's Eastern Province. Samsung E&A secured the contracts for Package 1, which involves expanding the gas processing facilities, and Package 4, which includes constructing utilities and ancillary facilities. The total contract value is $6.07 billion (approximately KRW 8.1265 trillion or US$ 5.86 billion), with Package 1 valued at $1.89 billion (approximately KRW 2.5303 trillion) and Package 4 at $4.18 billion (approximately KRW 5.5962 trillion). In addition to the Fadhili project, Samsung E&A also secured the Samsung SDI E-Project in Hungary during the first half of the year. Buoyed by these overseas contracts, Namkoong Hong has already achieved KRW 10.9 trillion (US$ 7.86 billion) in new orders in the first half, reaching approximately 87% of the company’s annual target of KRW 12.6 trillion (US$ 9.08 billion). Samsung E&A is on track to break its all-time record for orders in its first year under the new name. Samsung E&A's outlook for the second half of the year remains positive, with expectations of additional large-scale orders in the petrochemical sector. According to Samsung E&A's performance report, the company has a pipeline of five petrochemical projects totaling $8.3 billion (approximately KRW 11.53 trillion) in the second half of 2024. Notably, the TPPI project in Indonesia ($3.5 billion or approximately KRW 4.86 trillion) and the Alujain PDH/PP project in Saudi Arabia ($2 billion or approximately KRW 2.77 trillion), both expected to proceed in the third quarter, are likely to transition from front-end engineering design (FEED) to engineering, procurement, and construction (EPC) contracts, further boosting the company's order book. Jang Yoon-seok, a researcher at Yuanta Securities, noted on the 12th, "Samsung E&A is poised to exceed its annual order target, with a high likelihood of securing additional FEED to EPC contracts in the second half, including the TPPI project in Indonesia and the Alujain PDH/PP project in Saudi Arabia." Beyond the petrochemical sector, Samsung E&A is also expected to secure $3.1 billion (approximately KRW 4.30 trillion) in contracts in the energy transition sector, including the SAF project in Malaysia and the SAN-6 Blue Ammonia project in Saudi Arabia. Despite the positive outlook, Samsung E&A faced challenges in the second quarter of 2024, with a drop in its construction capability ranking and weaker external growth. Samsung E&A reported Q2 2024 consolidated revenue of KRW 2.6863 trillion (US$ 1.94 billion), operating profit of KRW 262.6 billion (US$ 189.4 million), and net profit of KRW 205.3 billion (US$ 148.1 million), representing year-over-year declines of 3.6%, 23.8%, and 28.3%, respectively. Gross and operating profit margins also fell, with gross margin dropping from 16.2% in Q2 2023 to 14.7% in Q2 2024, and operating margin declining from 12.4% to 9.8%. However, a Samsung E&A representative explained to Business Post that "the decline in this quarter's results is largely due to a base effect from the exceptionally strong Q2 2023 performance. Despite the decrease, the overall performance is not considered poor." Indeed, while Samsung E&A's Q2 results were subdued, the company still achieved cumulative revenue of KRW 5.071 trillion (US$ 3.66 billion) and cumulative operating profit of KRW 471.9 billion (US$ 340.4 million) in the first half, reaching half of its annual target. Samsung E&A initially set an annual target of KRW 10 trillion (US$ 7.21 billion) in revenue and KRW 800 billion (US$ 577 million) in operating profit. In the construction capability evaluation announced at the end of July 2024, Samsung E&A's ranking fell by 13 spots to 46th, the lowest in its history. Samsung E&A previously reached its highest rank of 11th in 2013, but its ranking has fluctuated since then, peaking at 16th in 2020 before declining to 19th in 2021, 26th in 2022, 33rd in 2023, and finally 46th in 2024. Samsung E&A's civil and architectural evaluation value decreased by 29.0% from KRW 1.3898 trillion (US$ 1.00 billion) in 2023 to KRW 987.1 billion (US$ 712 million) in 2024. The evaluation values for performance, management, technology, and reputation all fell by 22.3%, 35.3%, 22.7%, and 24.1%, respectively. However, Samsung E&A maintained its top position in the construction performance of its core industrial environment facilities sector, with a record of KRW 8.6176 trillion (US$ 6.21 billion). A Samsung E&A representative noted, "The construction capability ranking, which is focused on the civil and architectural sectors, does not fully align with Samsung E&A's core business areas, so it does not have a significant impact on our main operations." #SamsungE&A #NamkoongHong #OverseasOrders #FadhiliGasPlant #TPPIProject #AlujainPDHPP #ConstructionIndustry #EPCContracts #EnergyTransition #SouthKoreaBusiness
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- Seo Jung-jin's U.S. Efforts Pay Off, Celltrion Targets KRW 3.5 Trillion Revenue in First Year Post-Merger
- Seo Jung-jin, Chairman of Celltrion Group, is seeing the results of his hands-on efforts in the U.S. market as sales of the autoimmune treatment Zymfentra gain momentum. With Zymfentra successfully entering the U.S. market in the first half of the year, expectations are high for a significant increase in sales in the second half. According to industry forecasts, Celltrion is on track to surpass KRW 3.5 trillion (approximately USD 2.5 billion) in annual revenue this year. Celltrion's financial performance in the first half fell short of its annual goal, with KRW 1.6 trillion (approximately USD 1.15 billion) in revenue, but the company is expected to make up for it with expanding sales of Zymfentra in the second half. Zymfentra, known as Remsima SC outside the U.S., is Celltrion's first novel drug to be approved in the U.S., marking a significant milestone. Seo has been actively involved in promoting Zymfentra, personally visiting U.S. hospitals to introduce the product. As a result of these efforts, Zymfentra has secured coverage for 75% of the U.S. insurance market by mid-year, with inclusion in the formularies of the top three pharmacy benefit managers (PBMs): Express Scripts, OptumRx, and CVS Health. This achievement positions Celltrion to reach its goal of 80% coverage of the U.S. insurance market by the end of the year. Celltrion's success in the U.S. market is expected to contribute significantly to its revenue, and the company aims to continue its growth trajectory by expanding its pipeline and global market presence. #Celltrion #SeoJungjin #Zymfentra #Biopharmaceuticals #USMarket #RevenueGrowth #PharmacyBenefitManagers #GlobalPharma #Biosimilars #HealthcareIndustry
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- Hanwha Corporation E&C Division Faces Challenges, Kim Seung-mo Aims for Rebound with Large-Scale Developments
- Kim Seung-mo, CEO of Hanwha Corporation E&C Division, is struggling to boost performance as his term nears expiration early next year. The construction division of Hanwha has not been immune to the downturn in the construction industry. Kim is expected to focus on establishing a foundation for a performance rebound by launching large-scale mixed-use development projects, starting with the northern Seoul Station area. According to Hanwha's IR materials on the 18th, Hanwha reported an operating loss of KRW 21.7 billion (US$ 15.7 million) on a standalone basis for the second quarter. This marks the first quarterly loss in seven quarters since Hanwha integrated the construction division through a significant corporate restructuring in the fourth quarter of 2022. The primary reason for Hanwha's declining profitability on a standalone basis is the significant underperformance of Hanwha Corporation E&C Division, which accounts for around 60% of the company's total revenue. Hanwha Corporation E&C Division recorded an operating loss of KRW 58.8 billion (US$ 42.4 million) for the second quarter. After posting a loss of KRW 42.3 billion (US$ 30.5 million) in the fourth quarter of last year, the division rebounded slightly with a loss of KRW 9.4 billion (US$ 6.8 million) in the first quarter of this year, only to see the loss deepen in the second quarter. Moreover, quarterly revenue fell below KRW 1 trillion (US$ 720.9 million) this year, indicating that the division's growth has stagnated. While quarterly revenue in 2022 consistently exceeded KRW 1 trillion, it dropped to KRW 958.4 billion (US$ 690.9 million) in the first quarter and KRW 967.7 billion (US$ 698.1 million) in the second quarter of 2023. This decline in revenue was influenced by the completion of major projects, such as the Incheon Yeongjongdo Inspire Integrated Resort, Buk Suwon Forena Apartments, and the Ansan Kakao Data Center. The division's profitability was further impacted by the industry-wide downturn and rising costs. With his term set to expire in March next year, Kim Seung-mo faces significant challenges in improving performance. Kim Seung-mo was appointed CEO of Hanwha Corporation E&C Division in September 2022. Earlier, in July 2022, Hanwha Construction merged with Hanwha Corporation, a holding company, starting a new chapter as part of the construction division. Kim, who joined the group in 1991, has held various roles, including at Hanwha Q Cells, as Head of Corporate Strategy, and in Hanwha's defense-related subsidiaries. His appointment to lead both the defense and construction divisions reflects the high expectations placed on him by the group. Starting from the third quarter, the importance of Hanwha Corporation E&C Division will increase further as Hanwha Momentum Division's separate performance will no longer be included in the company's financial results following a spin-off effective from July 1. However, rather than pursuing aggressive strategies for a rebound, Kim is focusing on strengthening the division's fundamentals in consideration of the overall market conditions. Unlike other major construction companies, which are still aggressively accumulating contracts despite poor profitability, Hanwha Corporation E&C Division is taking a more selective approach. This year, Hanwha Corporation E&C Division has significantly reduced its new order target from KRW 4 trillion (US$ 2.88 billion) last year to KRW 2.5 trillion (US$ 1.8 billion). The company is focusing on selective orders in urban redevelopment projects in Seoul and the metropolitan area, which offer higher stability and profitability. Despite a gradual decline in order backlog—from KRW 14.8 trillion (US$ 10.7 billion) at the end of 2022, to KRW 14.5 trillion (US$ 10.4 billion) at the end of last year, and KRW 13.9 trillion (US$ 10.0 billion) at the end of the second quarter this year—Hanwha Corporation E&C Division remains focused on securing profitability. The division expects its order backlog to further decrease to KRW 12.9 trillion (US$ 9.3 billion) by the end of this year. Aside from the gradually expanding data center business, which has been growing since 2004, the division has maintained a relatively conservative stance on new business ventures. This conservative approach appears to be driven by confidence in the large-scale mixed-use development projects that are expected to ramp up towards the end of this year. Kim is looking forward to the groundbreaking of the northern Seoul Station mixed-use development project in the fourth quarter of his current term. The northern Seoul Station mixed-use development project in Bongrae-dong 2-ga, Jung-gu, Seoul, is set to be the first large-scale project in northern Seoul, featuring a convention center, hotel, and commercial facilities, including a meeting and exhibition hall with a capacity of over 2,000 people, and buildings up to 39 stories high. The Seoul Metropolitan Government approved the revised district unit plan for the northern Seoul Station area on July 10, following the initial construction permit in December last year. After being designated as the preferred bidder in 2019, the project is now effectively ready to begin construction, completing the necessary administrative procedures after more than five years. The northern Seoul Station project now only awaits the final step of transitioning to main project financing (PF) before construction can begin. According to the investment banking (IB) sector, KB Kookmin Bank, the lead manager for the northern Seoul Station project, is finalizing the formation of the PF loan syndicate. The project is expected to transition smoothly to main PF by the end of October when the bridge loan matures. The northern Seoul Station project is Hanwha Corporation E&C Division's second large-scale mixed-use development project, following the Suwon Convention Center MICE complex, completed in 2021. This project is significant as it marks Hanwha Corporation E&C Division's full-scale expansion into the mixed-use development sector. Hanwha Corporation, which includes Hanwha Corporation E&C Division (29% stake), Hanwha Impact (40%), Hanwha Connect (29%), and Hanwha Hotels & Resorts (2%), holds 100% of the developer, Seoul Station Northern Area Development. The total project cost is estimated at KRW 2.7 trillion (US$ 1.95 billion), with Hanwha Corporation E&C Division's contract value alone amounting to KRW 1.2018 trillion (US$ 866.5 million). Given the estimated four-year construction period, this large-scale project is expected to generate KRW 300 billion (US$ 216.4 million) in annual revenue. Hanwha Corporation E&C Division aims to establish itself as a leader in the mixed-use development sector, beginning with the northern Seoul Station project. Looking ahead, Hanwha Corporation E&C Division is preparing to break ground on two other major mixed-use development projects next year: the Suseo Station Transit Center, with a total project cost of KRW 1.6 trillion (US$ 1.15 billion), and the Daejeon Station Area project, with a total project cost of KRW 1.1 trillion (US$ 792.8 million). Hanwha Corporation E&C Division is expected to secure contracts worth KRW 1.1 trillion (US$ 792.8 million) for the Suseo Station project and KRW 400 billion (US$ 288.5 million) for the Daejeon Station project. In 2026, Hanwha Corporation E&C Division also plans to break ground on the Jamsil Sports & MICE complex, which recently drew attention with the announcement of the construction of a dome stadium at Jamsil Baseball Stadium in Seoul. This project, with a total cost of KRW 2.2 trillion (US$ 1.58 billion), is expected to take more concrete shape following the conclusion of the implementation agreement. A Hanwha Corporation E&C Division representative stated, "In the second quarter, revenue decreased due to the completion of large projects, and profitability was reduced due to a sharp rise in construction costs. However, as high-cost contract projects are completed sequentially and key projects, such as the northern Seoul Station mixed-use development, begin construction in the fourth quarter, we expect performance to gradually improve." #HanwhaCorporation #HanwhaConstruction #KimSeungMo #MixedUseDevelopment #SeoulStation #ProjectFinancing #RealEstateDevelopment #SouthKoreaBusiness #InfrastructureProjects #E&CIndustry
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- Seegene's Prospects Brighten Amid COVID-19 Resurgence, Chun Jong-yoon Accelerates Technology Sharing Initiative
- Chun Jong-yoon, CEO of Seegene, is expected to see the fruits of his efforts in accelerating the company's technology-sharing initiative, particularly in light of a potential resurgence of COVID-19. As COVID-19 cases rise again in South Korea, the demand for PCR tests is expected to increase, potentially providing Seegene with the resources needed to further develop its technology-sharing business. According to industry reports on the 16th, Seegene is considering establishing local subsidiaries as part of its technology-sharing initiative, including in Israel. This move aligns with the long-term business strategy Chun outlined in July last year, following the peak of COVID-19. Chun is currently collaborating with global partners such as Springer Nature, Microsoft, Israel's diagnostic device company HyLabs, and Spain's diagnostic firm Werfen to advance Seegene's technology-sharing initiative. The technology-sharing initiative involves Seegene offering its PCR technology to global diagnostic companies for free, enabling the development and production of localized products. Seegene retains global rights to these products, forming a revenue-generating model. Chun had previously stated, “We plan to select and collaborate with 10 to 15 companies annually, in partnership with Nature, and expect to see results within two years.” In September last year, Seegene, in collaboration with Nature, launched an open innovation program for diagnostic reagent development, selecting 26 projects. This led to significant achievements, including Seegene's product being selected as an international standard at the Eurogin 2024 conference. With the technology-sharing initiative gaining traction, the recent COVID-19 resurgence in South Korea is expected to further accelerate this business. According to the Korea Disease Control and Prevention Agency, the number of hospitalized COVID-19 patients in the second week of August reached 1,357, the highest level this year. As COVID-19 cases rise, there is growing anticipation that Seegene, which benefitted greatly during the initial pandemic, will see improved performance once again. Seegene's revenue soared during the pandemic, reaching KRW 1.2525 trillion (approximately USD 903 million) in 2020 and KRW 1.3708 trillion (approximately USD 988 million) in 2021, the highest in the company's history. Even in 2022, Seegene recorded KRW 853.4 billion (approximately USD 615 million) in revenue. However, with South Korea's COVID-19 alert level downgraded in April, requiring a 50% co-payment for PCR tests for high-risk groups, the situation may change if government policies are adjusted due to the resurgence. If the demand for COVID-19 testing rises again, Seegene could secure additional funds to expand its technology-sharing business. Seegene has been actively pursuing acquisitions to bolster its technology-sharing initiative, leveraging funds secured during the pandemic. In January, Seegene acquired a 100% stake in UX/UI consulting firm Brex, and in June, it acquired a 100% stake in software developer Pentaworks. These acquisitions are part of Seegene's efforts to internalize the capabilities needed for digital transformation, a prerequisite for advancing the technology-sharing initiative. A Seegene representative told Business Post, "While there haven't been significant internal changes related to COVID-19, we are working hard to achieve results in the technology-sharing business through collaboration with local partners." #Seegene #ChunJongYoon #COVID19 #PCRTesting #TechnologySharing #Biotech #GlobalExpansion #DigitalTransformation #BusinessStrategy #SouthKoreaBiotech
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- CJ Olive Young Reignites IPO Plans: CEO Lee Sun-jung Focuses on Proving Growth Potential Through Overseas Success
- Lee Sun-jung, CEO of CJ Olive Young, is on track to achieve an annual revenue of KRW 5 trillion (US$ 3.6 billion), consistently breaking the company’s record for highest performance. As the company’s performance has significantly improved since its last attempt at an initial public offering (IPO), it is now being speculated that Lee is seriously considering the timing for re-entering the stock market. Although CJ Olive Young has already established a dominant position in the domestic health and beauty (H&B) market, the limited room for growth within this sector has turned the focus toward expanding overseas to reaffirm the company’s growth potential. According to a comprehensive analysis by the securities industry on August 16, CJ Olive Young’s current performance indicates that its corporate value could exceed KRW 6 trillion (US$ 4.3 billion) if it were to go public. CJ Olive Young reported sales of KRW 1.2 trillion (US$ 867.3 million) and a net profit of KRW 124.9 billion (US$ 90.1 million) in the second quarter of this year, representing a 24.8% increase in sales and a 22.0% increase in net profit compared to the same period last year. The company's second-quarter sales were the highest on record, marking the fourth consecutive quarter in which it surpassed KRW 1 trillion (US$ 721.1 million) in sales. CJ Olive Young’s sales growth has been sustained over a long period, with each year, excluding the pandemic-affected 2020, setting new annual performance records. Even in 2020, while sales slightly decreased, operating profit and net profit increased compared to the previous year. The industry believes that if this upward trend continues, annual sales could reach KRW 5 trillion (US$ 3.6 billion). Last year, CJ Olive Young’s annual sales were KRW 3.86 trillion (US$ 2.8 billion), with KRW 2.3 trillion (US$ 1.7 billion) in cumulative sales in the first half of this year. As a result of these strong performances, expectations for CJ Olive Young’s corporate value have also increased. When valuing CJ, the holding company, securities firms estimate CJ Olive Young’s corporate value to exceed KRW 6 trillion (US$ 4.3 billion), with Hyundai Motor Securities valuing it at KRW 6.07 trillion (US$ 4.4 billion) and DS Investment Securities at KRW 7.64 trillion (US$ 5.5 billion). In 2022, when CJ Olive Young initially considered going public, its corporate value was estimated between KRW 2 trillion (US$ 1.4 billion) and KRW 4 trillion (US$ 2.9 billion), based on an annual sales figure of KRW 2.78 trillion (US$ 2.0 billion). At that time, CJ Olive Young decided to withdraw its IPO plans, believing that it would be challenging to achieve a high corporate valuation given the conditions in the public offering market. However, with the company now in a stronger financial position, conditions are favorable for it to achieve a higher corporate valuation. Analysts suggest that this is a critical time for CEO Lee to carefully consider the timing and method of the IPO. Although it is currently difficult to predict when CJ Olive Young might pursue its IPO, it is expected that Lee will proceed with future management plans based on a blueprint that considers the stock market listing, given that the IPO is important not only for the company but also at the group level. Lee’s efforts to accelerate the company’s expansion into overseas markets are also seen as an attempt to demonstrate growth potential and enhance the company’s corporate value. Market expansion and securing growth drivers are crucial for any company, but they become even more important in the context of preparing for an IPO. CJ Olive Young’s dominant position in the domestic H&B market is highly valued in the public offering market. However, it could also be perceived as a sign of potential limitations in growth due to the increasingly saturated domestic market. For this reason, expanding into overseas markets is considered the most effective alternative for securing growth drivers. Currently, CJ Olive Young’s overseas expansion is primarily focused on its “reverse direct purchase platform.” The company operates the “Olive Young Global Mall,” a reverse direct purchase platform that allows customers in over 150 countries to conveniently order CJ Olive Young products. The company is also targeting foreign consumers visiting South Korea by managing stores in areas with high foreign traffic, prioritizing multilingual staff, and providing multilingual signage. It has been observed that the offline store experiences of foreign tourists visiting CJ Olive Young in Korea lead to repeat purchases through the reverse direct purchase platform after they return to their home countries, creating synergy between online and offline channels. In fact, CEO Lee is significantly strengthening marketing efforts aimed at overseas consumers. For example, the company operates the “Ollyoung Express,” a free direct bus service from Incheon International Airport to Myeong-dong, to increase contact with foreign consumers. Although the Ollyoung Express does not stop at Olive Young stores, it is expected to have a significant indirect promotional effect. The company is also intensifying activities to introduce various products to overseas markets in partnership with domestic small and medium-sized brands. CJ Olive Young is expanding opportunities for overseas consumers to experience K-beauty products by participating in Hallyu (Korean Wave) cultural events such as "KCON LA 2024" in Los Angeles. During a “K-Beauty Global Competitiveness Enhancement and Industry Conference” held at CJ Olive Young’s headquarters last month, CEO Lee emphasized her commitment to exploring overseas markets, stating, “We will support promising domestic emerging brands to grow into sustainable export products in overseas markets.” These efforts to expand into overseas markets are beginning to yield visible results. In the second quarter of this year, CJ Olive Young’s online sales reached KRW 329.8 billion (US$ 237.7 million), a 31.1% increase from the second quarter of last year, driven by a significant rise in reverse direct purchase demand. Han-i Kim, a researcher at Hyundai Motor Securities, noted, “With the strong sales from foreign tourists, interest in expanding sales through the reverse direct purchase platform is growing,” adding, “Expectations are rising for increased sales in overseas markets.” Lee Sun-jung was promoted internally to CEO of CJ Olive Young in October 2022, becoming the youngest CEO within the CJ Group and the first female CEO of CJ Olive Young. Following the record-breaking annual performance last year, she has continued to deliver strong quarterly results this year, further cementing her leadership capabilities. For CEO Lee, enhancing the company’s corporate value in preparation for the IPO is also a critical task. The significance of CJ Olive Young’s IPO goes beyond merely raising funds to strengthen growth drivers; it is also closely linked to the group’s management succession. Lee Sun-ho, Head of the Food Growth Promotion Office at CJ CheilJedang and son of CJ Group Chairman Lee Jay-hyun, and Lee Kyung-hoo, Head of Brand Strategy at CJ ENM and daughter of the Chairman, are major shareholders of CJ Olive Young. The company’s IPO could provide crucial resources for future management succession. There is also speculation about a possible merger between CJ, the holding company, and CJ Olive Young as an alternative to going public. If a merger occurs, CJ Olive Young shareholders could receive shares in the integrated entity, allowing the Chairman’s children to naturally acquire shares in the holding company. Regardless of the scenario chosen by the group, the higher the corporate value recognized for CJ Olive Young, the smoother the management succession process is likely to be. #CJOliveYoung #IPO #LeeSunjung #CorporateValue #OverseasExpansion #KBeauty #ReverseDirectPurchase #HealthAndBeauty #ManagementSuccession #CJGroup
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- Nexon CEO Lee Jung-hun Sees Success Abroad, but Decline in Domestic Market Due to Hit Games Like MapleStory
- Lee Jung-hun, the CEO of Nexon, achieved record-high earnings in the second quarter, driven by strong overseas sales, particularly with the success of the side-scrolling action RPG "Dungeon & Fighter Mobile" in China. However, the domestic market faced setbacks, with key games experiencing a downturn. Both PC and mobile segments saw a decline in sales compared to the same period last year. The poor performance of the PC RPG "MapleStory" and the cross-platform MMORPG "Prasia Electric" (also known as "Prasia War") has been cited as major factors in this downturn. According to industry insiders on August 16, Nexon is expected to continue its downward trend in domestic sales in the second half of the year due to the unfavorable operational status of its main games. A significant factor in this trend is the "probability manipulation scandal" surrounding Nexon’s flagship RPG, MapleStory, which marked its 21st year of service. The scandal refers to the discovery, through a Fair Trade Commission investigation on January 3, 2024, that Nexon had repeatedly manipulated the probability of 'Cubes,' a paid growth item in MapleStory, to the disadvantage of users. As a result, the Fair Trade Commission imposed a fine of approximately KRW 11.6 billion (US$ 8.4 million) on Nexon, and users initiated both individual and class-action lawsuits. On August 14, the Consumer Dispute Mediation Committee ordered Nexon to compensate 5,674 participants in the lawsuit with a total of KRW 1.1 billion (US$ 793,000). If the compensation scope expands to the estimated 800,000 potential victims, the total compensation could reach KRW 21.7 billion (US$ 15.7 million). According to "MaeAegi," a site that tracks MapleStory user statistics, the number of users, which was around 518,000 on January 4, dropped by 28.6% to 370,000 as of August 15 following the probability manipulation scandal. Given that Nexon has historically generated at least KRW 500 billion (US$ 360.5 million) annually from MapleStory, the exodus of users likely resulted in a significant revenue decline. Prasia Electric, once a major revenue driver for Nexon’s mobile division and a successful cross-platform game boosting PC game sales, also saw a decline in revenue. The game, which officially launched on March 30 last year and quickly hit KRW 100 billion (US$ 72.1 million) in cumulative sales within two months, has since seen a continuous drop in sales rankings. According to the app analytics service Mobile Index, Prasia Electric, which ranked 4th on Google Play Store and 7th on Apple App Store in April 2023, had dropped to 67th on Google Play Store and 70th on Apple App Store by July 2024. This decline in sales is attributed to the ongoing trend of declining interest in RPGs and the release of multiple competing MMORPGs. According to market research firm Sensor Tower, the share of MMORPGs in overall mobile game sales, which stood at 75.2% in the first half of 2022, dropped to 56.2% in the first half of 2024. As MMORPGs' market share declines, competition has intensified with the continuous release of similar RPG titles like WeMade's "Night Crow," Kakao Games' "ARES," and Netmarble's "Asadal Chronicles: Three Forces" and "Raven 2." In addition to MapleStory and Prasia Electric, other major Nexon PC and mobile games failed to gain significant traction in the domestic market, resulting in a domestic revenue of KRW 445.8 billion (US$ 321.4 million) in the second quarter. This represents a 21% decrease compared to the same period last year and a 14.8% decrease compared to the first quarter of this year. Nexon's domestic revenue is expected to further decline in the third quarter. In its second-quarter earnings release, Nexon projected that its domestic revenue for the third quarter would decrease by 33% compared to the third quarter of last year, to KRW 463.6 billion (US$ 334.3 million). A company representative stated, "Given that many games achieved their highest earnings in the third quarter of 2023 in the PC sector, a decline in performance is inevitable. Mobile revenues will also decrease due to the underperformance of Prasia Electric and other games." In contrast, Nexon's overseas revenue for the second quarter increased by 127.4% year-on-year, reaching KRW 671.3 billion (US$ 484.1 million), with China alone contributing KRW 514.2 billion (US$ 370.7 million), accounting for 76.5% of that total. According to Chinese gaming media outlet 'GameLook,' "Dungeon & Fighter Mobile" is estimated to have generated KRW 358.6 billion (US$ 258.5 million) in China during the second quarter. An industry insider commented, "Nexon is showing clear growth in both PC and mobile games in overseas markets. With the domestic market saturated, the company needs to continue its growth in markets like China." #Nexon #LeeJungHun #MapleStory #DungeonFighterMobile #PrasiaElectric #GamingIndustry #MMORPG #MobileGaming #ChinaGamingMarket #KoreaGamingIndustry
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- Samsung Heavy Industries Rides the Container Ship Order Boom: Choi Sung-an on Track to Achieve $9.7 Billion Order Target
- Choi Sung-an, the vice Chairman and CEO of Samsung Heavy Industries, is eyeing the first container ship order of the year as the competition among shipbuilders intensifies, with container shipping companies placing a flurry of orders in the second half of the year. There is growing interest in whether Choi will succeed in securing orders in the container ship sector, where he has yet to receive any orders this year, and whether he will achieve this year's order target. Typically, container ships are considered less profitable compared to LNG carriers, leading domestic shipbuilders to prioritize other types of vessels under their "selective ordering" strategy. However, with the recent rise in new ship prices, the profitability of container ships has improved, sparking renewed interest among domestic shipbuilders in competing for container ship orders. As of August 16, reports from the shipbuilding and shipping industries indicate that Samsung Heavy Industries and HD Hyundai Heavy Industries are competing for a container ship newbuilding project initiated by Taiwan's shipping company, Wan Hai Lines. According to the shipping industry publication TradeWinds, the total project is valued at $4 billion. Wan Hai Lines is reportedly negotiating with the two shipbuilders to order 4 to 10 dual-fuel container ships with a capacity of 15,000 TEU (twenty-foot equivalent units). Germany’s shipping company Hapag-Lloyd has also initiated a container ship order project valued at $5.4 billion starting in August, negotiating shipbuilding contracts with shipyards in South Korea and China. Earlier in June, Samsung Heavy Industries was reported to be negotiating the construction of six 8,000 TEU container ships and an additional twelve 15,000 TEU container ships with France's shipping company CMA-CGM. However, these negotiations have yet to result in official orders. A representative from Samsung Heavy Industries stated, "The recent trend is towards replacing large container ships with eco-friendly dual-fuel engines that can simultaneously utilize LNG or methanol," adding, "We are hopeful about securing orders for large dual-fuel container ships." From January to July this year, Samsung Heavy Industries secured orders for 19 LNG carriers, 2 Very Large Ammonia Carriers (VLAC), and 1 tanker, amounting to a total of $4.9 billion. The company has announced plans to focus on securing orders for LNG carriers and container ships for the remainder of the year to meet its annual order target of $9.7 billion. Researcher Byun Yong-jin from iM Investment & Securities commented, "Samsung Heavy Industries is likely to meet its order target for the year, given the current surge in inquiries for large container ships and consistent orders for LNG carriers, as well as potential orders for Floating Liquefied Natural Gas (FLNG) production facilities." Last year, Samsung Heavy Industries set an annual order target of $9.5 billion but ultimately fell short, achieving $8.3 billion in orders, with $5.3 billion from shipbuilding and $3 billion from offshore projects. This shortfall was primarily due to the deferral of a $3.45 billion LNG carrier project ordered by Qatar last year, which will be reflected in the first half of 2024. Given this, the $9.7 billion target for this year is a more conservative estimate, but failing to meet it would still be a significant setback for CEO Choi. Contrary to expectations, container ship orders have surged due to the implementation of eco-friendly regulations and increased shipping rates following the Red Sea crisis. Researcher Byun added, "As of mid-July 2024, there have been 41 orders for container ships of 8,000 TEU or more. At this rate, annual orders could reach their highest level since 2016, excluding the peak years of 2021-2023." The global shipping industry’s container ship order volume (in TEU capacity) peaked at 4.5 million TEU in 2021 but declined to 2.7 million TEU in 2022 and 1.6 million TEU in 2023. Byun further noted, "The price of large container ships has risen by 52.4% compared to early 2020, alleviating concerns about profitability," and added, "Hanwha Ocean and Samsung Heavy Industries, with relatively open slots until 2027, are expected to secure significant orders." #SamsungHeavyIndustries #ContainerShipOrders #ChoiSungan #LNGCarriers #ShipbuildingIndustry #EcoFriendlyShips #DualFuelEngines #GlobalShipping #OrderTarget #SouthKorea
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- Hanwha Life's Yeo Seung-joo Reappointed for Third Term, Backed by Business Success of Spin-off, Management Succession
- Hanwha Life CEO and Vice Chairman Yeo Seung-joo is expected to succeed in his third term in March next year, thanks to the success of 'separation of production and sales.' His role in supporting the succession work of Hanwha Life President Kim Dong-won is also considered a factor that increases the possibility of reappointment. According to securities analysts on the 17th, Hanwha Life is expected to accelerate its performance improvement in the second half of the year. Hanwha Life recorded a separate basis net profit of KRW 348.5 billion in the first half, a decrease of 43.6% from a year ago. However, the securities industry expects Hanwha Life's full-year net profit to increase. After the second-quarter earnings announcement, securities analysts predicted that Hanwha Life's separate basis net profit would increase by 43.1% for DB Financial Investment, 26.6% for NH Investment & Securities, and 22.4% for SK Securities compared to a year ago. The reason for such positive expectations is the anticipated improvement in profitability due to the expansion of guaranteed insurance sales. The new business annualized premium equivalent (APE), an insurance sales indicator, totaled KRW 1.92 trillion in the first half, up 4% from the previous year. Among them, the proportion of guaranteed APE increased from 61% in the first half of last year to 80% in the first half of this year. The background of the expansion of guaranteed insurance sales is the market establishment of Hanwha Life Financial Services, considered one of Vice Chairman Ye's management achievements. In June, NICE Ratings upgraded Hanwha Life's long-term credit rating, stating that 'Hanwha Life is establishing a profitability-oriented insurance business focus by expanding guaranteed insurance sales' and 'considering the growth trend of Hanwha Life Financial Services and its efficient insurance contract maintenance capabilities, the competitiveness in sales channels is improving.' In 2021, Vice Chairman Ye became the first among major life insurance companies to embark on the separation of production and sales. Separation of production and sales has the advantage of enhancing insurance sales capabilities and maximizing profitability by separating insurance product development and sales organizations. Vice Chairman Ye laid the groundwork for expanding guaranteed insurance sales by significantly increasing the number of agents from around 18,535 in 2021 to 29,184 in the first half of 2024. As a result, Hanwha Life Financial Services incurred a net loss of KRW 169.3 billion in its inaugural year in 2021 but succeeded in turning a profit in 2023. It continued the profit trend by achieving a net profit of KRW 55 billion in the first half of this year. In May, Hanwha Group Chairman Kim Seung-youn also attended the Hanwha Life Financial Services annual awards ceremony, stating, 'Hanwha Life has successfully established a groundbreaking change called separation of production and sales, solidifying its position as a leading company in the industry' and 'the driving force that breathes new life into Hanwha Life.' The performance of Hanwha Life Financial Services is contributing to Hanwha Life's growth, making Vice Chairman Ye a factor that raises expectations for his third reappointment in March next year, as his term is nearing expiration. Furthermore, Vice Chairman Ye also faces the task of supporting the management succession of President Kim Dong-won, the son of Hanwha Group Chairman Kim Seung-youn. President Kim is expected to take over Hanwha Group's financial affiliates but has yet to achieve noticeable business performance, receiving criticism for not delivering significant results. Since last year, President Kim has been serving as Hanwha Life's Chief Global Officer (CGO) and has been expanding his management activities by pursuing the acquisition of a local bank in Indonesia in May this year. Vice Chairman Ye needs to support President Kim's management performance as a professional manager. Hanwha Life is also recognized for traditionally establishing long-term leadership. Vice Chairman Ye's predecessor, Vice Chairman Cha Nam-gyu, led Hanwha Life's growth and successfully served four terms from 2011 to 2020. Vice Chairman Ye is a financial and finance expert representing Hanwha Group, known for his ability to read the financial market and excellent crisis response skills. Born in 1960, he graduated from Kyungbok High School and majored in Mathematics at Sogang University. After joining Kyungin Energy, a Hanwha Group affiliate, he moved to Hanwha Life Insurance, where he held positions as Head of Finance Team and Director of Strategic Planning. He later served as Head of Strategic Planning Team at Hanwha Group and CEO of Hanwha Investment & Securities. In 2019, he became President and CEO of Hanwha Life, successfully reappointed in March 2023. In September 2023, he was promoted from President to Vice Chairman in recognition of his achievements. His term is until March 2025.
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- SK hynix Selected as a Beneficiary of AI memory Including HBM, Next year's Semiconductor industry 'Green Light'
- Citigroup predicts that the memory semiconductor industry, including DRAM and NAND flash, will show better trends than expected and that manufacturers, including SK hynix, will benefit. It is also expected that the demand for High Bandwidth Memory (HBM) used in artificial intelligence (AI) semiconductors will contribute to performance growth. According to the securities magazine Seeking Alpha on the 14th, Citigroup stated in a report that "Global memory manufacturers will benefit from the decline in supply growth rates due to the investment contraction that has continued for the past few years." Citigroup maintained a 'buy' rating for SK hynix and Western Digital. Although next year's DRAM and NAND flash market conditions were expected to be weak, the assessment reflected the improvement in the situation as the memory semiconductor supply growth rate decreased. Citigroup predicted that in the future, hard drives will be a major cause of 'bottlenecks' in AI technology learning. Hard disk storage devices are not suitable for AI learning due to slower data transfer speeds compared to NAND flash-based SSDs. Therefore, as companies that still rely on hard disk servers accelerate the transition to SSDs, it is forecasted that the demand for NAND flash will increase. Citigroup also forecasted that the DRAM market will benefit from the growth of the AI market, especially with HBM demand showing a steep increase reaching 96% next year. SK hynix is currently the leading company in global HBM market share and is expected to benefit the most from the increasing demand for HBM from customers such as NVIDIA. Seeking Alpha added, "The increase in DRAM demand will positively contribute to the performance and stock prices of SK hynix, Samsung Electronics, and Micron." They also mentioned that "the memory semiconductor market may show a better trend than expected."
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- Hyundai Engineering Nears KRW 15 Trillion, Hong Hyeon-sung Aims for Profitability and Trust
- Hong Hyeon-sung, CEO of Hyundai Engineering, is in the final year of his term. Hong took office as CEO in 2022, a time when the construction industry was beginning to slow down. During his tenure, he has significantly increased the company's revenue and successfully elevated Hyundai Engineering to the fourth position in the construction capability evaluation rankings. In his remaining term, it appears he will focus even more on improving profitability and restoring market trust. According to analyses from the construction and securities industries on the 14th, Hyundai Engineering continued its external growth, recording a 42.7% year-on-year increase in revenue for the first half of this year, reaching KRW 8.16 trillion (approximately USD 5.89 billion). The company is expected to set a new record for annual revenue this year. Lee Tae-hwan, a researcher at Daishin Securities, predicts that Hyundai Engineering’s revenue will increase by more than 20% in the second half of the year, driven by projects such as the start of construction on the CJ Gayang-dong and Hilton Hotel development projects. He estimates the company will achieve a revenue of KRW 15.706 trillion (approximately USD 11.33 billion) for the year. Hyundai Engineering's revenue has consistently grown, from KRW 7.355 trillion (approximately USD 5.30 billion) in 2021 to KRW 8.812 trillion (approximately USD 6.35 billion) in 2022, and KRW 13.063 trillion (approximately USD 9.42 billion) in 2023. The company is expected to see another significant increase this year. Hong, known as a "plant expert," is credited with playing a major role in Hyundai Engineering's external growth. The company has solid domestic project orders and is steadily converting large overseas plant projects into revenue. Hyundai Engineering’s order backlog increased from KRW 22.1486 trillion (approximately USD 15.97 billion) domestically and KRW 7.5787 trillion (approximately USD 5.46 billion) overseas at the end of 2022 to KRW 22.5448 trillion (approximately USD 16.26 billion) domestically and KRW 8.623 trillion (approximately USD 6.22 billion) overseas by the end of 2023. While domestic orders grew by roughly KRW 400 billion (approximately USD 288.4 million), overseas orders increased by more than KRW 1 trillion (approximately USD 721.1 million). In the first half of this year, Hyundai Engineering secured substantial contracts, including the Saudi Arabia Amiral Project (KRW 6.4 trillion, approximately USD 4.61 billion) and the Hyundai Motor S-JV battery plant in North America (about KRW 1.1 trillion, approximately USD 793.4 million), solidifying its order backlog. According to the Overseas Construction Association, Hyundai Engineering recorded overseas orders worth USD 3.93 billion (approximately KRW 5.44 trillion) in the first half of this year, ranking second in overseas orders after Samsung E&A (USD 6.08 billion, approximately KRW 8.43 trillion). With the government actively supporting domestic construction companies' overseas expansion and Hyundai Engineering's involvement in significant domestic projects, the company is expected to continue solidifying its revenue base for the foreseeable future. In particular, the contribution to revenue from Hyundai Engineering’s construction of Hyundai Motor’s Global Business Center (GBC) is highly anticipated. The basic contract amount for the GBC project, which Hyundai Engineering is overseeing, is KRW 768.1 billion (approximately USD 553.9 million), but as of March this year, the completed construction amount was only KRW 38.1 billion (approximately USD 27.5 million), with a progress rate of 4.96%. However, with Hyundai Motor's decision in July to withdraw the existing 55-story design revision and renegotiate with the Seoul Metropolitan Government, the project is expected to gain momentum. Hyundai Engineering is cementing its position as the fourth-ranked construction company based on its construction performance and revenue base. In 2023, the year after Hong took office, Hyundai Engineering achieved its highest-ever ranking of fourth place in the construction capability evaluation with a construction capability evaluation amount of KRW 9.736 trillion (approximately USD 7.02 billion), climbing three spots from the previous year. The increase in the construction performance evaluation amount was a key factor in achieving fourth place. In the 2023 construction capability evaluation, Hyundai Engineering's construction performance evaluation amount was KRW 2.5671 trillion (approximately USD 1.85 billion), an 18.5% increase (KRW 401.3 billion, approximately USD 289.5 million) from the previous year. In this year's evaluation, Hyundai Engineering maintained its fourth place by increasing both its construction performance evaluation amount (KRW 3.83 trillion, approximately USD 2.76 billion) and its construction capability evaluation amount (KRW 9.9809 trillion, approximately USD 7.20 billion) compared to the previous year. However, improving profitability, including the cost ratio of the housing business, remains an ongoing challenge. In the second quarter of this year, Hyundai Engineering faced slow improvements in the cost ratio of its housing business while also dealing with cost increases at its Indonesia site and incurring quality management costs related to the Muan site (Hillstate Oryong). In particular, defects at the Hillstate Oryong apartment complex in Muan have not only been a factor in increasing costs but also have the potential to negatively impact the Hillstate brand, making the restoration of trust in construction quality a major priority. Earlier, Hyundai Engineering built the Hillstate Oryong complex, consisting of about 800 units, in Oryong 2 District, Muan, Jeollanam-do. However, during a pre-inspection conducted from April 26th to 28th, ahead of the complex's scheduled move-in at the end of May, a total of 58,000 defects were reported. In response, CEO Hong personally visited the site in early May to address the situation. As Hillstate is a flagship apartment brand for Hyundai Engineering, it is directly tied to the company's value. CEO Hong is expected to strengthen the housing business while focusing on rebuilding the Hillstate brand. In February of this year, marking Hyundai Engineering's 50th anniversary, CEO Hong emphasized, "The ultimate goal of Hyundai Engineering is not to be the leading comprehensive construction company in Korea," adding, "For the next 50 years, our direction is to go beyond being a comprehensive construction company and to create new value." He further stated, "We must shift our management paradigm from 'delivering objectives,' such as supplying buildings or facilities, to 'providing value' across all aspects of our lives, including the economy, humanity, and nature." #HyundaiEngineering #HongHyeonSung #revenuegrowth #constructionindustry #overseasprojects #GBCproject #Hillstatebrand #profitability #constructioncapability #corporatevalue
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- KB Kookmin Bank Defends Hong Kong ELS Crisis, Boosts Lee Jae-keun's Reappointment Prospects
- Lee Jae-keun, the President of KB Kookmin Bank, is gaining momentum for a potential second consecutive term as he demonstrates stable leadership. Since assuming the top position at KB Kookmin Bank, Lee has led the bank to record its highest-ever net profits for two consecutive years, driving a continuous increase in performance. He is also receiving positive evaluations for his crisis management capabilities, particularly in response to this year’s significant losses related to Hong Kong Equity-Linked Securities (ELS). Lee has already completed a 2+1 year term. If he succeeds in securing a second consecutive term, he will continue to lead KB Kookmin Bank for four consecutive years, following in the footsteps of former President Huh In, thereby solidifying his position within the group. According to KB Financial Group's IR materials released on the 13th, KB Kookmin Bank recorded a net profit of KRW 1.1164 trillion (USD 805 million) in the second quarter of 2024, a 186.6% increase compared to the first quarter (KRW 389.5 billion or USD 280.8 million). Pre-provision operating profit also slightly increased to KRW 1.6088 trillion (USD 1.16 billion) from KRW 1.6025 trillion (USD 1.155 billion) in the first quarter. Looking at the first half of the year as a whole, net profit decreased by 19% compared to the previous year. However, considering that the net profit in the first quarter plunged by 58% due to the reflection of KRW 862 billion (USD 621.4 million) in provisions related to compensation for losses from Hong Kong ELS, the market views KB Kookmin Bank as having quickly recovered from the anticipated 'shock.' KB Kookmin Bank benefited from the recovery of the Hong Kong H-Index, which allowed it to recoup KRW 88 billion (USD 63.5 million) of the costs associated with Hong Kong ELS in the second quarter. KB Kookmin Bank’s outstanding balance of Hong Kong ELS sales stands at KRW 7.6695 trillion (USD 5.53 billion), which is more than the combined total of Shinhan Bank (KRW 2.3701 trillion or USD 1.71 billion), NH Nonghyup Bank (KRW 2.131 trillion or USD 1.54 billion), Hana Bank (KRW 2.0856 trillion or USD 1.5 billion), and Woori Bank (KRW 408 billion or USD 294.2 million). The bank’s proactive response, including large-scale provision reserves, is being praised as effective. In response to the decline in fund sales performance due to the Hong Kong ELS situation, the bank focused on expanding bancassurance (insurance sales through banks), which has proven successful. While KB Kookmin Bank’s fund sales in the first half of 2024 decreased by 6% compared to the same period last year, its bancassurance sales increased by 25.4%. Most importantly, despite the burden of being the largest seller of Hong Kong ELS among major banks, KB Kookmin Bank managed to maintain strong deposit and loan performance in the first half of the year, effectively defending its brand image and operational competitiveness. As of the end of June, the bank's demand deposits, considered a core deposit category, increased by 4.5% to KRW 153.1 trillion (USD 110.4 billion) compared to the end of 2023, marking the largest increase among the four major banks. The balance of mortgage loans also saw double-digit growth (11.4%), leading to a 6.7% increase in net interest income in the first half of the year compared to the same period in 2023. With the government strengthening regulations on household loan growth, the rising loan interest rates at KB Kookmin Bank and other banks may further support the increase in interest income in the second half of the year. Last year, Lee was notably reappointed as KB Kookmin Bank’s president despite the materialization of losses related to Hong Kong ELS and KB Financial Group welcoming a new chairman. While Lee has been recognized for leading KB Kookmin Bank to two consecutive years of net profit growth since taking office, his reappointment is seen as a vote for 'stable' leadership, particularly in the face of expected challenges in the management environment. If Lee succeeds in securing another term at the end of this year, it will signify recognition of his managerial abilities under the leadership of Chairman Yang Jong-hee, further enhancing his presence within the group. However, Lee is expected to face continued challenges in the second half of the year, including the impact of the Hong Kong ELS crisis on performance, litigation risks, and the task of reversing losses at overseas subsidiaries such as KB Bank in Indonesia. Recently, with the looming prospect of a rate cut by the US Federal Reserve and concerns about an economic recession affecting global stock markets, the Hong Kong H-Index has once again become volatile. The Hong Kong H-Index fell below 6,000 points at the beginning of August. As of the close of trading on August 12, the index stood at 6,029.66, a sharp decline compared to mid-May when it neared the 7,000-point level as the market showed signs of recovery. KB Kookmin Bank and the other four major banks will face the maturity of KRW 4.2 trillion (USD 3.03 billion) worth of Hong Kong ELS in the second half of the year. Group litigation by Hong Kong ELS investors who refused to settle with the bank is also expected to gain momentum in the second half. Lee is also tasked with improving the net loss at KB Bank in Indonesia, one of the bank's key overseas subsidiaries. According to KB Kookmin Bank's quarterly report, KB Bank recorded a net loss of KRW 52.9 billion (USD 38.1 million) in the first quarter, an increase from the same period in 2023 (KRW -33.6 billion or USD 24.2 million). Born in 1966, Lee is the youngest CEO among the leaders of the four major financial banks. He graduated from Seoul High School, earned a bachelor’s degree in mathematics from Sogang University, and received a master’s degree in economics from the same university, as well as a master’s degree in financial engineering from the Korea Advanced Institute of Science and Technology (KAIST). He began his career in 1993 at the predecessor of KB Kookmin Bank, Housing Bank. After moving to KB Financial Group, he served as chief of staff, head of financial planning, and senior executive. In 2018, he returned to KB Kookmin Bank, where he served as executive vice president of the management planning group and vice president of the sales group before being appointed as president of KB Kookmin Bank in 2021. In November 2023, his reappointment as president of KB Kookmin Bank was confirmed. When the subsidiary representative candidate recommendation committee of KB Kookmin Bank once again recommended Lee as president in November 2023, they stated, “Since taking office in 2022, Lee Jae-keun has delivered excellent management results despite unfavorable conditions such as COVID-19 and the global economic downturn, demonstrating capabilities in change, innovation, and management expertise.” #KBKookminBank #LeeJaekeun #HongKongELS #FinancialLeadership #BankingCrisisManagement #KoreanBanking #FinancialPerformance #Bancassurance #EconomicOutlook #NetProfitGrowth
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- Kang Sin-ho Solidifies Role as CJ Vice Chairman with Performance, Strengthening His Role in Succession
- Kang Sin-ho, Vice Chairman and CEO of CJ CheilJedang, has been driving profitability improvements and leading a steady increase in operating profit. As the first Vice Chairman of CJ Group to come from a public recruitment background, Kang has proven his managerial capabilities through solid performance, which is likely to further bolster his role in supporting CJ Group's leadership succession. According to CJ CheilJedang on the 13th, the company plans to maintain its strategy of quality growth centered on profitability while enhancing its efforts to penetrate overseas markets with strategic products in the food sector, sustaining its strong performance into the second half of the year. CJ CheilJedang reported consolidated sales of KRW 7.2386 trillion (USD 5.22 billion) and an operating profit of KRW 383.6 billion (USD 276.5 million) for the second quarter. Compared to the second quarter of 2023, sales increased by 0.3%, and operating profit rose by 11.3%. Notably, the Bio business division's operating profit (KRW 99 billion or USD 71.4 million) increased by 17.4% year-over-year, reflecting a significant improvement in performance. This was attributed to the expansion of high-value-added product sales, which enhanced profitability. Although the core Food business division saw a 4.8% decline in operating profit (KRW 135.9 billion or USD 98 million), it continued to exhibit strong growth, particularly in overseas markets. Sales in Europe and Oceania increased by 57% and 51%, respectively. CJ CheilJedang had previously experienced a decline in profitability due to the downturn in the Bio business, rising cost pressures, and sluggish domestic food sales, leading to a decrease in operating profit year-over-year. However, since Kang returned to CJ CheilJedang at the beginning of this year after an executive reshuffle, the company has managed to improve its performance in both the first and second quarters, successfully reversing the negative trend. Kang, who entered CJ Group through public recruitment, has built a diverse career across key positions in the holding company and major subsidiaries. He is considered a key confidant of CJ Group Chairman Lee Jae-hyun, enjoying the chairman's strong trust. Kang served as CEO of CJ CheilJedang in 2020 before moving to CJ Logistics the following year, where he also served as CEO. In February of this year, he returned to his former position at CJ CheilJedang and was promoted to Vice Chairman, making him the first Vice Chairman to come from a public recruitment background. Many viewed Kang's return to CJ CheilJedang as a strategic move to deploy a problem-solver to improve the profitability of the group's core subsidiary. Kang had previously contributed to the rapid growth of CJ CheilJedang's overseas food business as head of the Food Business Division and CEO, earning him a reputation as a food business expert within the group. There is also speculation in some quarters of the business community that Chairman Lee Jay-hyun may have tasked Kang with supporting the management succession of his son, Lee Sun-ho, who is the Head of Food Growth Strategy at CJ CheilJedang. Lee Sun-ho is responsible for strategic planning and new business investments in the overseas food business at CJ CheilJedang. Given Kang’s extensive experience and insight across both the overseas and domestic food businesses, he is considered well-suited to oversee Lee Sun-ho's management training. Kang’s experience at the group’s holding company as well as CJ Logistics could also help Lee Sun-ho broaden his managerial perspective as he prepares to make group-wide decisions. It is expected that Kang will provide direct and indirect support to help Lee Sun-ho achieve management success. For instance, during the recent Paris Olympics, Lee Sun-ho was instrumental in planning and executing a project called ‘Cuisine K,’ which aims to train Korean cuisine chefs and introduce fusion Korean dishes, further enhancing the visibility of K-food. With CJ CheilJedang expanding its overseas footprint by capitalizing on the growing recognition of K-food, the groundwork has been laid for Lee Sun-ho to prove his management capabilities. A CJ CheilJedang official stated during the second quarter earnings briefing, “Territorial and category expansion in the European market is progressing steadily. Given that our current facilities in Germany are insufficient to meet future demand, we are preparing to establish additional production facilities in Hungary.” #CJCheilJedang #KangSinHo #ViceChairman #CJGroup #LeadershipSuccession #FoodBusiness #BioBusiness #Kfood #OverseasExpansion #CorporateStrategy
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- Chang Duck-hyun Boosts Samsung Electro-Mechanics; A Different Path from Kyung Kye-hyun?
- Chang Duck-hyun, President and CEO of Samsung Electro-Mechanics, has led the company to strong performance in the first half of his final term, thanks to strategic moves aligned with the rise of artificial intelligence (AI). This has fueled speculation that Chang might either succeed in securing a second term or, like his predecessor Kyung Kye-hyun, return to Samsung Electronics. As of the 13th, an analysis of Samsung Electro-Mechanics’ performance data reveals that the company has shaken off two years of sluggish performance, which was exacerbated by the deterioration of the Chinese market in 2022 and 2023. In the first half of the year, Samsung Electro-Mechanics saw its revenue and operating profit increase by 22.7% and 12.6%, respectively, compared to the same period last year, signaling a clear rebound. This performance improvement is attributed to Samsung Electro-Mechanics’ adept response to the AI era. Chang’s proactive investment in future technologies, such as semiconductor substrates and automotive multilayer ceramic capacitors (MLCCs), where demand has surged due to AI, is starting to yield results. In particular, Chang has focused on developing MLCC technology for automotive applications, with an emphasis on diversifying the customer base. He has even set a bold target of achieving KRW 1 trillion (USD 721.1 million) in revenue solely from automotive MLCCs, demonstrating his confidence. Chang’s appointment as CEO of Samsung Electro-Mechanics was largely due to his strong commitment to technological innovation, as evidenced by his previous roles, including Vice President and Head of the Sensor Business Team in Samsung Electronics’ LSI Business Division. Chang is an engineer-turned-executive who has held various key positions, including Head of the Solution Development Office in the Memory Business Unit, Head of LSI Development in the System LSI Business Unit, Head of SoC Development, and Head of the Sensor Business Team. At the time of his appointment as CEO, Samsung Electro-Mechanics described Chang as a figure with "technological leadership across a diverse range of products, including memory and system semiconductors." Chang’s term is set to end on March 16, 2025, leaving him with just about seven months remaining. Some within the electronics industry are comparing Chang to his predecessor Kyung Kye-hyun, given the similarities in their career paths. Kyung also worked in Samsung Electronics’ Memory Business Unit, where he served in roles such as Head of DRAM Development, Head of Flash Design, and Head of Flash Development, before being appointed as President and CEO of Samsung Electro-Mechanics. After completing a three-year term at Samsung Electro-Mechanics, Kyung transitioned to the position of Head of the DS Division at Samsung Electronics in 2022. This has led to speculation that Chang might similarly return to Samsung Electronics. However, there is also a strong belief that Chang is likely to be reappointed as President and CEO of Samsung Electro-Mechanics. Kyung remains the only example of someone returning to Samsung Electronics after serving as CEO of Samsung Electro-Mechanics. Additionally, given that Chang has been instrumental in transforming Samsung Electro-Mechanics’ focus towards AI, it might be better to maintain his leadership. The management environments faced by Chang and Kyung were also vastly different. Kyung led a turnaround in Samsung Electro-Mechanics' performance starting from his first year in 2020. By 2021, the company recorded its highest-ever results, with KRW 9.675 trillion (USD 6.97 billion) in revenue and KRW 1.4869 trillion (USD 1.07 billion) in operating profit. Kyung subsequently returned to Samsung Electronics in 2022, recognized for his performance at Samsung Electro-Mechanics. In contrast, Chang faced a decline in performance during the two years following his appointment in 2022, as market conditions worsened. Global IT demand decreased, and the Chinese market, which accounted for over 50% of Samsung Electro-Mechanics’ MLCC supply, also weakened. Moreover, during Chang's term, the importance of responding to AI increased, necessitating expanded technological investments. In fact, Chang has developed semiconductor substrate technology for AI data centers, which are expected to see a surge in demand, in collaboration with AMD. He is also investing in 'glass substrates,' which are considered critical for the future semiconductor industry due to their ability to reduce thickness and improve efficiency. An industry insider noted, “No one can predict the outcome of executive appointments, but given that Chang announced his new business plans in January and expressed his determination to lead development, there is a possibility that he could be reappointed.” #SamsungElectroMechanics #ChangDuckhyun #AIinvestment #MLCC #SemiconductorSubstrate #SamsungElectronics #ExecutiveAppointment #TechnologicalInnovation #AutomotiveMLCC #GlassSubstrate
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- CJ Logistics Global Business on a Growth Trajectory, Shin Young-soo Strengthens Logistics Technology
- Shin Young-soo, CEO of CJ Logistics, has achieved better-than-expected business results, earning positive management evaluations early in his tenure as the company's leader. Notably, there are signs of improvement in the global business segment, which had previously been experiencing a decline. This progress is attributed to the strategy of enhancing logistics technology to secure competitiveness, which seems to have paid off to some extent. According to a comprehensive analysis by the securities industry on the 12th, CJ Logistics is expected to continue its trend of improved performance in the second half of this year, following the positive results in the second quarter. This is due to the increased volume handled during the peak season of the e-commerce market and the significant acquisition of orders in the contract logistics (total management of corporate logistics operations) business, which has laid the foundation for revenue growth. CJ Logistics reported consolidated sales of KRW 3.0592 trillion (US$ 2.21 billion) and an operating profit of KRW 125.4 billion (US$ 90.4 million) in the second quarter of this year. Compared to the second quarter of last year, sales increased by 3.3%, and operating profit rose by 11.5%. Lee Jae-hyuk, a researcher at LS Securities, noted, "CJ Logistics' second-quarter performance was the highest ever for a second quarter, and the company has maintained over 10% profit growth compared to the same period last year for four consecutive quarters. This consistent performance trend is expected to continue in the second half of this year." The strong performance of CJ Logistics likely lightened the burden on CEO Shin Young-soo, who took over as the company's leader this year. Shin was appointed as CEO in February during CJ Group's executive reshuffle. Prior to this, he served as the head of the Korean Business Division at CJ Logistics. Taking the helm during a period of improving performance at CJ Logistics has created favorable conditions for Shin to build a positive reputation as a professional manager. Particularly encouraging is the recovery in the growth of the global business segment. CJ Logistics' global business recorded sales of KRW 1.1239 trillion (US$ 810.3 million) and an operating profit of KRW 18.5 billion (US$ 13.3 million) in the second quarter. Compared to the second quarter of last year, sales increased by 5%, and operating profit grew by 17.8%. The global business had been showing a sluggish performance, including a 17.1% year-on-year decline in operating profit in the first quarter, but it entered a growth trajectory in the second quarter. The management philosophy of CJ Logistics, which emphasizes strengthening logistics technology to enhance competitiveness, is also considered one of the driving forces behind the improved performance. CJ Logistics recognizes the importance of technology in the logistics field and has been pursuing the automation of logistics operations, as well as enhancing capabilities related to artificial intelligence and big data, striving for advanced technology across its business operations. In fact, CJ Logistics invests an average of KRW 50 billion (US$ 36.1 million) annually in technology development. As a result, the company has developed advanced technologies such as smart packaging and digital twin systems for logistics sites. CEO Shin Young-soo, who took office this year, appears to be continuing this management approach by focusing on the advancement of logistics technology. In his inaugural speech after being elected president of the Korea Integrated Logistics Association at the general meeting in February, Shin emphasized the importance of technology in the logistics sector, stating, "We will continue to work towards developing the logistics industry from a labor-intensive industry to a digital high-tech industry." Under Shin's leadership, CJ Logistics is also pushing forward with initiatives to strengthen technological capabilities. Specifically, the company is introducing new logistics technologies at overseas locations to enhance its ability to provide high-level logistics services while also seeking cost efficiency. Currently, CJ Logistics is building a cold chain logistics center in the New Century area of the United States, specializing in the transportation of refrigerated and frozen products, which requires precise temperature control technology. CJ Logistics plans to aggressively target the U.S. cold chain logistics market based on its advanced logistics technology and business experience. The company is also working on sharing advanced logistics technology with its dispersed overseas subsidiaries. In June, CJ Logistics held workshops with major overseas subsidiaries in the United States, India, Vietnam, and Malaysia to spread advanced logistics technology from headquarters and share best practice examples. CJ Logistics is also collaborating with global logistics robot company Libiao Robotics to develop a robot-integrated control system that automates all logistics processes. A CJ Logistics official stated, "Continuous technology investment is improving profitability through cost efficiency, and we are steadily enhancing our business capabilities by strengthening logistics technology in the global business as well." Um Kyung-ah, a researcher at Shin Young Securities, commented, "While global logistics companies are struggling to respond to shrinking size and declining profits after the COVID-19 premium has faded, CJ Logistics has successfully found new growth drivers with a technology investment-oriented differentiation strategy." Shin Young-soo has held CEO positions at CJ Group affiliates in the past, but this is his first time leading one of the group's major subsidiaries. Born in 1966, Shin graduated from Seoul National University with a degree in agricultural education in 1988. He joined CJ CheilJedang in 1990 and has since worked exclusively at CJ Group. In 2019, he was appointed CEO of CJ Feed&Care for the first time. He then moved to CJ Logistics, where he served as the head of the Parcel & E-Commerce Division and the head of the Korean Business Division before becoming CEO. #CJLogistics #ShinYoungsoo #globalbusiness #logistics #technology #coldchain #automation #bigdata #ecommerce #supplychain
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- Roh Tae-moon Faces Reappointment Challenge at Samsung Electronics, AI Foldable Phone Success Critical
- Roh Tae-moon, the President of Samsung Electronics and Head of the MX (Mobile eXperience) Division, is approaching the end of his term in March 2025. Roh is widely regarded for improving profitability and driving the success of foldable phones amidst fierce competition with Apple, leading to expectations that his reappointment is highly likely. However, as the importance of premium products continues to grow in the global smartphone market, the success of AI foldable phones in the second half of this year has become crucial for Samsung to present its new vision. According to Samsung Electronics' quarterly report on the 12th, Roh Tae-moon's term as president is set to expire on March 15, 2025, leaving him with about seven months remaining. The official term for key executives at Samsung Electronics is three years. Roh first took on the role of Head of the MX Division in 2020. Despite the controversy surrounding the 'Game Optimization Service (GOS)' at the time, he was reappointed as an internal director with an overwhelming approval rate of 97.96% at the Samsung Electronics shareholders' meeting in March 2022. Roh has consistently demonstrated exceptional management skills through his performance. In 2020, when Roh became the Head of the MX Division, Samsung Electronics' operating profit for the division, including the Network business, increased to KRW 11.47 trillion (US$ 8.27 billion) from KRW 9.27 trillion (US$ 6.68 billion) in 2019. In 2021, the profit further grew to KRW 13.65 trillion (US$ 9.84 billion). Even during the global smartphone market downturn in 2022, the MX Division's operating profit was KRW 11.38 trillion (US$ 8.20 billion), a slight decline. However, in 2023, Roh managed to turn things around, achieving an operating profit of KRW 13.01 trillion (US$ 9.38 billion), marking a 14.3% rebound from the previous year, highlighting his crisis management capabilities. In 2023, Roh Tae-moon received the second-highest bonus at Samsung Electronics, following Vice Chairman Han Jong-hee, amounting to KRW 4.824 billion (US$ 3.48 million). Samsung Electronics explained the criteria for Roh's bonus, stating, "The MX Division achieved KRW 108.6 trillion (US$ 78.30 billion) in sales, and the division laid the foundation for growth by proactively responding to future markets." However, the MX Division's performance has somewhat deteriorated this year. In the first half of this year, the MX Division's operating profit was approximately KRW 5.74 trillion (US$ 4.14 billion), an 18% decrease compared to KRW 6.98 trillion (US$ 5.03 billion) in the first half of 2023. The decline in profitability is attributed to the inability to avoid the impact of rising prices for major smartphone components, such as mobile processors, coupled with a decrease in the average selling price (ASP) of smartphones. In the second quarter of this year, the average selling price of Samsung's smartphones was $279 (approximately KRW 380,000), a significant drop from $325 in the second quarter of last year. This figure is not only lower than Apple's average selling price of $859 during the same period but also below the global smartphone industry average of $325. An industry insider commented, "In recent years, the steep increase in smartphone component prices has made it even more challenging to achieve margins with mid-to-low-end models. Additionally, the gap between the average selling prices of Samsung Galaxy and Chinese smartphones has narrowed significantly compared to before." The decline in Galaxy's ASP may be interpreted not only as a profitability issue but also as a sign that the differentiation between Samsung and Chinese manufacturers is becoming less distinct. For Roh Tae-moon, "strengthening the differentiation of Galaxy products" is a task that must be achieved to enhance competitiveness in future markets. Roh is looking to chart a new path for Samsung Electronics' smartphones through the world's first AI foldable phones, the Galaxy Z Fold and Flip 6, which were unveiled in July. Particularly, Samsung is focusing on guiding consumers into the 'Galaxy AI ecosystem' by allowing them to experience features such as Circle to Search, real-time translation, and automatic zoom, which are integrated into the foldable phones. Samsung Electronics, as a top sponsor of the International Olympic Committee (IOC), also reaped significant marketing benefits during the Paris Olympics. Samsung distributed 17,000 units of the Galaxy Z Flip 6 to athletes participating in the Paris Olympics. For the first time in Olympic history, athletes were able to take selfies on the podium using the Flip 6. This allowed Samsung to showcase the 'Foldable Phone + AI' features of the Galaxy to a global audience through live broadcasts. As early as October this year, Samsung is expected to launch the Galaxy Z Fold 6 Slim, further accelerating the popularization of foldable phones. This move is also part of an upselling strategy aimed at boosting performance by focusing on premium smartphones like foldable phones. The outlook for the success of AI foldable phones in the second half of this year is promising. Market research firm Counterpoint Research predicted, "Samsung's AI has made significant strides in areas where user interaction is key, such as real-time translation and foldable optimization," and "the Galaxy Z Flip and Fold 6 are expected to see a 30% increase compared to their predecessors." Roh Tae-moon is confident that AI smartphones will present a new vision for Samsung Electronics. In a recent interview with CNBC in the United States, Roh stated, "I am confident that Galaxy AI will be a strong motivation and driving force for new product purchases." He added, "When smartphones and the internet first appeared, only a few people used them, but gradually more people began to use them. The same will be true for mobile AI." #RohTaemoon #SamsungElectronics #GalaxyZFold #foldablephone #AISmartphone #MXDivision #smartphoneindustry #premiumsmartphone #mobileAI #smartphonemarket
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- Na Chea-bum of Hanwha General Insurance Proves Potential of Women-Specific Insurance Market
- Na Chea-bum, CEO of Hanwha General Insurance, is continuing a streak of strong performance, fueled by the success of women-specific insurance products. This success has spurred other insurance companies to introduce new products focused on women, in line with regulatory improvements by financial authorities, leading to increased competition in the women-specific insurance market. On the 12th, Samsung Fire & Marine Insurance announced the launch of "Our Together Mom Preparation Safety Insurance," a mini-insurance product that offers free coverage to pregnant women with Woori Bank accounts, in partnership with Woori Bank. This quick move by Samsung Fire & Marine Insurance follows the Financial Services Commission's decision on the 8th, during the Insurance Reform Meeting, to include pregnancy and childbirth, previously somewhat ambiguous in terms of coverage, as insurable events as part of low birthrate countermeasures. This product release is also seen as part of Samsung Fire & Marine Insurance's strategy to expand its lineup of women-focused insurance products and increase its influence in the women-specific insurance market. The women-specific insurance market is a newly developed sector that insurance companies are targeting, recognizing the growing demand for insurance among women as their social and economic status rises. As women's participation in the workforce increases, their purchasing power has expanded, and the fact that women are generally more proactive in seeking medical services compared to men makes this market one with high growth potential. The Korea Insurance Research Institute stated in a June report, "These products offer unique health services tailored specifically for women, differentiating them from existing products. The increasing sales of recently launched insurance products for women indicate a bright growth outlook." The potential of women-specific insurance products to significantly boost an insurance company's performance is evident from Hanwha General Insurance's results. Hanwha General Insurance posted a net profit of KRW 254.7 billion (US$ 183.6 million) in the first half of the year, up 25.8% compared to the same period last year. This marks the company's highest half-yearly performance to date. This strong performance is underpinned by the strategy of CEO Na Chea-bum, who, since taking office last year, has been focusing on developing women-specific insurance as a key product for Hanwha General Insurance. Na has paid particular attention to "FemTech," specialized services aimed at supporting women's health, and has subsequently introduced a series of insurance products and services covering women's health issues to the market. Hanwha Signature Women's Health Insurance, launched in July last year, achieved KRW 10 billion in new contract sales within just eight months. Hanwha General Insurance attributes its strong first-half performance largely to the continuous addition of new riders, such as the "Breast Cancer Prognosis Test Coverage," to its Signature Women's Health Insurance, thereby providing the market with differentiated products. Inspired by Hanwha General Insurance's strong performance, other general insurers are also focusing on launching women-specific insurance products. Heungkuk Fire & Marine Insurance introduced "No-Dividend HeungGood All-Inclusive Women's MZ Insurance" in May, offering discounts for mother-daughter enrollments. Hyundai Marine & Fire Insurance followed in August with the launch of "Good and Good Women's Health Insurance," which provides customized coverage for diseases based on a woman's life cycle. Life insurance companies are also joining the competition to launch women-specific insurance products. NH NongHyup Life Insurance released "Pink Care NH Health Insurance" in May, Shinhan Life launched "Shinhan Health Protection Insurance ONE The Woman" in June, and ABL Life introduced "ABL THE Sparkling Women's Health Insurance" in August. Hanwha General Insurance is now recognized for successfully establishing its image as a women-specific insurance company in the market. However, the company is not resting on its laurels and is preparing to strengthen its existing insurance products to stay ahead of its competitors. Hanwha General Insurance plans to launch "Hanwha Signature Women's Health Insurance 3.0," the third version of its flagship product, in the fourth quarter. A Hanwha General Insurance official commented during the announcement of the company's first-half results, "In the second half of the year, we will continue to focus on expanding sales of high-value products, such as women's insurance, to secure insurance contract margins (CSM)." #NaCheabum #HanwhaGeneralInsurance #womenspecificinsurance #insuranceindustry #femtech #womenhealthinsurance #HanwhaSignature #insurancecompetition #SamsungFire #insuranceproducts
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- Korean Air Pilots' Union Reaches Tentative Agreement on Wage Negotiation, 3% Increase
- Korean Air management and the pilots' union have reached a tentative agreement on this year's wage negotiation. Korean Air announced on the morning of the 9th that a tentative agreement related to the 2024 wage negotiation had been reached with the pilots' union. The tentative agreement includes the following: △ a 3% increase in both base salary and flight allowance △ a 50% bonus as a congratulatory payment upon the completion of the merger with Asiana Airlines △ a welfare point award of 600,000 points as part of selective benefits △ the introduction of an allowance for miscellaneous cargo flight expenses △ additional criteria for recognizing senior captains. The tentative agreement will be finalized after a vote by union members. The general union of Korean Air had previously delegated bargaining rights to the company and agreed in May to a 3.4% increase in base salary for this year. #KoreanAir #pilotunion #wageagreement #salaryincrease #AsianaAirlinesmerger #laborunion #aviationindustry #bonuspayment #employeebenefits #seniorcaptains
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- Woori Financial's 'Value-Up' Strategy Shakes Oligopolistic Shareholder Structure
- Woori Financial Group Chairman Yim Jong-yong is facing the challenge of re-evaluating the oligopolistic shareholder structure he helped establish during his tenure as Chairman of the Financial Services Commission, due to the recent stock price surge driven by the group's 'Value-Up' strategy. Woori Financial was the first among the four major financial holding companies to announce a value-up strategy, resulting in a significant rise in its stock price. This has led to one of its major shareholders, IMM Private Equity (IMM PE), accelerating the sale of its shares, raising concerns about the potential exit of additional oligopolistic shareholders. According to sources in the financial sector on the 9th, IMM PE is reportedly considering selling approximately 1.4% of its stake in Woori Financial. In late July, IMM PE had already sold around 2.3% of its stake in Woori Financial through a second block deal this year and is now contemplating further sales. The sharp increase in stock price, triggered by the rapid announcement of Woori Financial's value-up plan, appears to have motivated this move to realize profits. On July 26, the day after the value-up plan was announced, Woori Financial's stock price surged by 11.36%. Even if IMM PE does not sell its remaining shares within this year, there are concerns that the oligopolistic shareholder structure of Woori Financial may undergo changes. The possibility of additional exits by other oligopolistic shareholders cannot be ruled out, given the stock price trends. Furthermore, as IMM PE’s remaining stake is only around 1%, issues of fairness may arise regarding the exercise of the right to nominate outside directors, especially with other oligopolistic shareholders holding around 4% of the shares. Chairman Yim is now tasked not only with addressing the immediate issue of potential large-scale stock sales by oligopolistic shareholders but also with establishing a solid governance structure. Woori Financial adopted an oligopolistic shareholder structure during its privatization process in 2016, with seven oligopolistic shareholders. Among them, five shareholders—Dongyang Life Insurance, Kiwoom Securities, Korea Investment & Securities, Hanwha Life Insurance, and IMM PE—were granted the right to nominate outside directors. As of the end of March this year, Woori Financial's oligopolistic shareholders collectively held an 18.8% stake. Five of these shareholders—Eugene PE, Fubon Life Insurance, Korea Investment & Securities, Kiwoom Securities, and IMM PE—are participating in management through the nomination of outside directors. The oligopolistic shareholder structure of Woori Financial is also a legacy of Chairman Lim's tenure at the Financial Services Commission. In November 2016, when selecting the seven oligopolistic shareholders, he stated, "There has never been a case in Korea where oligopolistic shareholders collaborated to manage a financial company," and explained, "Oligopolistic shareholders of diverse backgrounds will pursue 'rational management' through collective intelligence and experience with the common goal of increasing corporate value." At that time, shareholders holding approximately 4% of the shares were granted the right to nominate outside directors, a practice that has continued to this day. However, Woori Financial’s internal regulations do not explicitly stipulate the granting of nomination rights based on shareholding percentage. There is ongoing debate about the effectiveness of Woori Financial's oligopolistic shareholder structure. Unlike other major financial holding companies in Korea that posted record earnings last year, Woori Financial's net profit fell by about 20%, leading some market observers to argue that Woori Financial has not sufficiently strengthened its competitiveness even after privatization. On the other hand, some believe that the oligopolistic shareholders' board has provided appropriate checks and balances, contributing to the group's internal stability. According to Woori Financial's governance report, the group's entry into the securities business through a small-scale merger this year, which reduced capital burdens, was a result of consistent input from the outside directors. Given that financial holding companies are often viewed as 'ownerless' entities without a specific major shareholder, Chairman Lim faces the necessity of establishing a robust structure that can withstand external pressures during his tenure. Woori Financial only achieved full privatization in March of this year by extinguishing the remaining shares held by the Korea Deposit Insurance Corporation, and thus cannot ignore external influences. With financial authorities closely monitoring the governance structures of financial holding companies and having introduced 'best practices' late last year, Woori Financial’s plans to expand its operations by entering the securities business and exploring insurance company acquisitions must also be taken into account. Woori Financial has plans to discuss the issue of outside director nomination rights and other related matters in upcoming board meetings. A Woori Financial representative stated, "The current outside directors will complete their terms," adding, "Although there have been precedents where the right to nominate outside directors was lost during changes in oligopolistic shareholders, whether IMM PE will retain its nomination rights will be decided after discussions at the board." #WooriFinancial #oligopolisticshareholders #privatization #LimJongryong #governance #financialsector #IMMPE #stockprice #corporatestructure #outsideboarddirectors
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- GS Retail is aiming to protect its profits through its 'industry-leading' supermarket business
- GS Retail, which has traditionally focused on its convenience store business, is now seeing significant results from its corporate supermarket segment, which was previously considered a non-core business. While the profitability of the convenience store segment has been declining, the supermarket business has consistently increased its profits, effectively defending GS Retail’s overall operating profit. Vice Chairman and CEO Heo Yeon-soo is expected to continue expanding the company’s 'industry-leading' supermarket business to protect its financial performance. According to GS Retail's performance trends as of August 9, all business divisions except for the supermarket division have been facing challenges. In the second quarter, the profitability of every business unit except the supermarket division deteriorated. Notably, the convenience store division, which accounts for over 70% of GS Retail's revenue, has been experiencing a decline in profitability since the fourth quarter of 2023. The operating profit for the convenience store division was KRW 9.2 billion in the fourth quarter of 2023, KRW 3.6 billion in the first quarter of 2024, and turned into a loss in the second quarter of this year. The situation is different for the supermarket division. The operating profit of the supermarket division steadily increased, recording KRW 1.4 billion in the fourth quarter of 2023, KRW 5.6 billion in the first quarter of 2024, and KRW 6.5 billion in the second quarter of 2024. This growth is attributed to increased demand due to the division's superior accessibility compared to large supermarkets and better price competitiveness than convenience stores. The strong performance of the supermarket division has positively impacted GS Retail’s overall results. In the second quarter alone, the operating profit of GS Retail’s supermarket division increased by KRW 2.1 billion. Given that the operating profits of the convenience store, home shopping, and development divisions decreased by KRW 300 million, KRW 100 million, and KRW 3.7 billion, respectively, the supermarket division has played a key role in defending profits. Analysts suggest that the results reflect Vice Chairman Heo’s efforts to expand supermarket franchises. Since late 2019, GS Retail has been working to improve profitability in the supermarket division through measures such as closing underperforming stores and consolidating headquarters. Starting in 2020, the company has pursued an aggressive strategy focused on opening franchise stores. Increasing the number of franchise stores is more efficient in terms of time and cost compared to opening directly operated stores, which helps to quickly enhance profitability. Franchise stores have also shown superior sales growth. From the second quarter of last year to the second quarter of this year, the average sales growth rate of franchise stores exceeded 40%, while existing stores did not escape single-digit growth rates. There appears to be no reason for Vice Chairman Heo to hesitate in expanding the supermarket business through franchise expansion. The proportion of franchise stores within GS Retail's corporate supermarket brand, GS The Fresh, has been steadily increasing each year. The franchise store ratio for GS The Fresh rose from 50.0% in 2020 to 77.3% in the first half of 2024. As of the first half of 2024, GS The Fresh had 377 franchise stores. Of course, it is still too early to say that GS Retail is positioning the supermarket division as its main business. The supermarket division accounts for only 13% of GS Retail's total sales, and its share of operating profit is less than 10%. However, on a per-store basis, the supermarket division is quite attractive. In the first half of the year, GS The Fresh’s per-store sales were approximately KRW 810 million. In contrast, the estimated per-store sales for the GS25 convenience stores in the second quarter were around KRW 126 million. In other words, sales from a single supermarket exceed those of a convenience store by more than six times. While factors such as differences in store size and the total number of stores need to be considered, the supermarket business appears to have considerable investment appeal. If Vice Chairman Heo aggressively expands the number of GS The Fresh franchise stores, profitability could rapidly increase in proportion. Given that economies of scale also apply to the supermarket business, similar to convenience stores, expanding the number of stores could strengthen competitiveness. The supermarket business is also considered to face less intense competition compared to the convenience store sector. Cho Sang-hoon, a researcher at Shinhan Investment & Securities, stated, "The convenience store division recorded weaker-than-expected results due to deteriorating consumer sentiment and rising costs, while the supermarket division saw a significant improvement in operating profit due to increased demand for nearby shopping." GS Retail has established a strong presence in the corporate supermarket (SSM) industry. The number of GS The Fresh stores has been steadily increasing, from 341 in 2021 to 378 in 2022, 434 in 2023, and 488 in the first half of 2024. As of the end of July, the company has surpassed 500 stores. In contrast, the number of stores for major competitors ranges between 250 and 350. In terms of the number of stores, GS Retail has a dominant competitive edge. GS Retail plans to continue expanding the number of GS The Fresh stores in the second half of the year. A GS Retail representative stated, "With the recent increase in new towns, the focus of offline stores among younger families is shifting from supermarkets to smaller marts. With the rise in the number of households with three or fewer members, the market potential for the supermarket business continues to grow." The representative added, "We plan to continue expanding GS The Fresh stores and solidifying our position as the industry leader in both the convenience store and supermarket sectors." #GSRetail #supermarket #GStheFresh #conveniencestore #HeoYeonsoo #profitability #franchises #marketleader #retailbusiness #economicsofscale
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- LG Display is accelerating the production of 'small and medium-sized OLEDs'
- Jeong Chul-dong, CEO of LG Display, is accelerating the expansion of 'small and medium-sized OLED' production, narrowing the gap with the market leader, Samsung Display. To secure funds for OLED facility investments, Jeong has raised capital through a rights offering and the sale of stakes in partner companies. Additionally, the sale of the Guangzhou LCD plant in China is expected to bring in approximately KRW 2 trillion (US$ 1.44 billion), which will likely be used to further invest aggressively in small and medium-sized OLED facilities to increase market share. According to sources within the display industry on August 9, LG Display is expected to significantly increase the volume of OLED panels it supplies for Apple's iPhone 16, set to be released in September. Apple is expected to unveil the iPhone 16 series on September 10. Last year, LG Display's initial OLED panel supply fell short of expectations due to delays in passing Apple's 'quality test.' However, this year, it is reported that the company has already completed the quality testing and begun initial OLED production. Last year, LG Display supplied approximately 30 million OLED panels for the iPhone 15 Pro and Pro Max. This year, the company is estimated to have secured about 40 million units for the iPhone 16 Pro and Pro Max. This quantity is roughly half of the mobile OLED volume expected to be supplied by Samsung Display to Apple. Moreover, it has been reported that LG Display has taken over the OLED panel volume that was supposed to be supplied by China's BOE, as BOE has yet to stabilize its yield rate (the proportion of finished products) for Apple. Kim Dong-won, a researcher at KB Securities, stated, "LG Display is expected to benefit from both the increase in volume and price due to the higher proportion of shipments of the high-value iPhone 16 model, as well as the transfer of volumes from Chinese competitors struggling with yield issues. The shipment of small and medium-sized OLEDs in the second half of the year is expected to increase by 83% compared to the first half." In addition, LG Display is also set to supply OLED panels for the budget iPhone SE4, expected to be released in the first half of 2025. Apple has previously sourced OLED panels for the iPhone SE series from China's BOE, but LG Display will be entering as a supplier for the first time. Foreign IT media outlet MacRumors reported, "As BOE has struggled with yield issues in the past for OLED iPhone panels, bringing LG Display on board as a supplementary display supplier is Apple's way of securing a safety net. The mass production of the iPhone SE4 is expected to begin in October this year." LG Display has long lagged behind Samsung Display in the small and medium-sized OLED market. According to market research firm DSCC, LG Display's global market share for small and medium-sized OLEDs was 13% in the fourth quarter of 2023, trailing behind Samsung Display's 37% and BOE's 15%. Jeong Chul-dong, who has shifted LG Display's business focus from LCD to OLED, is concentrating on expanding investments primarily in small and medium-sized OLEDs, aiming to close the market share gap with Samsung Display. In March of this year, LG Display conducted a KRW 1.2925 trillion (US$ 931 million) rights offering, announcing that the proceeds would be used for OLED facility investments. The company is expected to invest approximately KRW 2.7 trillion (US$ 1.95 billion) in facilities this year. The shortfall in investment funds is being addressed by selling non-core assets, such as stakes in partners YAS, Avatec, and Woori E&C. Although Jeong has been CEO of LG Display for less than a year, he has been swiftly implementing business restructuring efforts. Once the sale of the Guangzhou LCD plant is completed, the company is expected to secure up to KRW 2 trillion (US$ 1.44 billion). This capital is also expected to be primarily used for expanding OLED facilities. On August 1, LG Display announced that it had selected China Star Optoelectronics Technology (CSOT), a display subsidiary of China's TCL, as the preferred bidder for the sale of its Guangzhou LCD production subsidiary. Lee Gyu-hwa, a researcher at NH Investment & Securities, commented, "Although there are concerns regarding the sale of the Guangzhou LCD plant, it is proceeding as planned. LG Display is expected to secure production capacity in the mobile sector at nearly maximum levels (around 70 million units) in the second half, leading to a sharp improvement in profitability." #LGDisplay #OLED #smallandmediumOLED #JeongChuldong #SamsungDisplay #Apple #iPhone16 #iPhoneSE4 #GuangzhouLCDplant #marketshare #investment
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- CJ Logistics reported a 2nd quarter operating profit of KRW 125.4 billion (US$ 90.4 million)
- CJ Logistics saw an increase in operating profit in the second quarter, thanks to strong performance in its contract logistics and global operations. On August 9, CJ Logistics announced that its consolidated sales for the second quarter were provisionally estimated at KRW 3.0592 trillion (US$ 2.205 billion) with an operating profit of KRW 125.4 billion (US$ 90.4 million). Compared to the second quarter of last year, sales increased by 3.3%, and operating profit rose by 11.5%. The company attributed the increase in sales to expanded orders, strong logistics operations in the United States and India, and the growth of cross-border e-commerce (CBE) volumes. CJ Logistics explained that operating profit grew due to sales expansion and productivity innovation activities. By sector, the parcel and e-commerce business reported sales of KRW 942.7 billion (US$ 680 million), a 2.3% increase compared to the second quarter of last year, and operating profit of KRW 61.7 billion (US$ 44.5 million), a 0.2% increase. The contract logistics (CL) business saw growth in both sales and operating profit, driven by the expansion of its warehousing and distribution (W&D) segment. Sales for the CL business reached KRW 737.1 billion (US$ 531.6 million), and operating profit was KRW 42.6 billion (US$ 30.7 million), reflecting increases of 3.3% and 13.3%, respectively, compared to the same period last year. The warehousing and distribution segment benefited from logistics consulting capabilities, attracting numerous new third-party logistics (3PL) clients, resulting in a sales increase of 11% year-over-year, amounting to KRW 339.7 billion (US$ 244.9 million) in the second quarter. Global operations reported a 5% increase in sales year-over-year, reaching KRW 1.1239 trillion (US$ 810.3 million), with operating profit growing by 17.8% to KRW 18.5 billion (US$ 13.3 million), driven by the expansion of forwarding and cross-border e-commerce logistics, as well as strong performances in key overseas markets such as the United States and India. #CJLogistics #Shin Young-soo #operatingprofit #salesgrowth #globallogistics #contractlogistics #ecommerce #warehousing #3PL #crossborderecommerce
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- Kim Beom-soo Risk Dulls Kakao's Q2 Results, Chung Shin-a Announces Non-Core Business Divestitures
- Kakao achieved its highest quarterly revenue in Q2 of this year, demonstrating solid performance. However, market attention is shifting away from immediate results and focusing on management efficiency, including the divestiture of non-core businesses. Kakao CEO Chung Shin-a plans to concentrate on the core KakaoTalk-based platform business while pursuing company-wide management efficiency. This raises the question of whether there will be substantial "selection and concentration," including the sale of subsidiaries related to the less prominent content business. On the 8th, Kakao announced that its consolidated sales for the second quarter reached KRW 2.049 trillion (US$ 1.48 billion), a 4% increase from the same period last year, marking a record high for second-quarter sales. Operating profit for the same period increased by 18% to KRW 134 billion (US$ 96.6 million). The core platform business showed a growth trend, performing relatively well. However, the market's focus is more on management efficiency measures, such as the sale or merger of non-core businesses, rather than favorable quarterly results. With the legal risks surrounding Kakao Group at their peak, following the arrest and indictment of founder and Chairman of the Management Innovation Committee, Kim Beom-soo, Kakao faces demands for rigorous management reform. During the earnings conference call, CEO Chung addressed the external challenges Kakao faces, acknowledging shareholder concerns and expressing regret over the situation despite the group's commitment to management reform and AI innovation. The atmosphere was noticeably different from the Q1 earnings call, which began with financial performance highlights. Coincidentally, the news of Kim Beom-soo's arrest and indictment by the prosecution for allegedly directing stock manipulation of SM Entertainment broke on the same day. The prosecution also accused him of attempting to destroy evidence systematically. With Kim Beom-soo, former Kakao CEO Hong Eun-taek, and former Kakao Entertainment CEO Kim Sung-soo all facing trial, legal risks for Kakao are expected to persist. This raises questions about whether Kakao will expedite the restructuring of its subsidiaries under CEO Chung's emergency management system. Chung defined Kakao's future growth focus as 'KakaoTalk' and 'AI strategy.' Detailed Q2 results showed that the core platform business, including 'KakaoTalk,' supported the company's performance. The platform segment's revenue increased by about 10% year-on-year to KRW 955.3 billion (US$ 688.5 million). The 'Talk Biz' segment, responsible for advertising and commerce through KakaoTalk, also saw a 7% increase in revenue, reaching KRW 513.9 billion (US$ 370.7 million). Chung stated, "Starting from the second half, we will focus all our resources on accelerating the growth of 'Talk Biz' and new innovations through AI." In contrast, high-intensity efficiency measures are expected for non-core segments. Chung said, "Businesses deemed lacking in business relevance to the KakaoTalk platform or AI will be defined as non-core, and we will expedite efficiency measures for these businesses in the second half." CFO Shin Jong-hwan also emphasized, "We will actively explore and swiftly implement cost-efficiency measures." This raises attention to whether there will be a reorganization, including the sale of subsidiaries in the recently sluggish content business. The content segment's Q2 revenue decreased by 0.4% year-on-year to KRW 105 billion (US$ 75.7 million), showing weak performance. Revenue from the 'Story' segment, including webtoons and web novels, fell by around 7%, and the game segment dropped by about 13%. Industry observers are considering Kakao VX (golf reservations), Kakao Games, Kakao Entertainment, and Kakao Mobility as potential sale candidates. There is also speculation about the forced sale of Kakao Bank shares depending on the trial outcomes. Chung stated, "We will communicate with the market once the measures under consideration are concretized." #Kakao #KimBeomSoo #ChungShinA #Q2Results #noncorebusiness #managementefficiency #legalrisks #KakaoTalk #AIstrategy #subsidiarydivestiture
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- 'Starbucks Magic' Lee Seock-koo Revamps Shinsegae Live Shopping, Targets Key Affiliates
- “What differentiates this product competitively?” This is the question Lee Seock-koo, CEO of Shinsegae Live Shopping, asks at the new product selection committee meeting every Monday. Despite his position as CEO, Lee does not have the final say on which products to launch. The decisions are made by the employees, while Lee focuses on understanding the competitive edge of the products. Since taking charge of Shinsegae Live Shopping, Lee has been fully committed to this strategy, significantly transforming the company. On the 8th, the distribution industry reported that Shinsegae Live Shopping, under Lee’s leadership, is growing into a valuable affiliate of Shinsegae Group. Positive forecasts for Shinsegae Live Shopping stem from its strong performance despite the challenging T-commerce (data home shopping) industry environment. In the second quarter of this year, Shinsegae Live Shopping achieved its highest sales and operating profit since becoming part of the Shinsegae Group, with KRW 81.5 billion (US$ 58.8 million) in sales and KRW 5.9 billion (US$ 4.3 million) in operating profit. Sales have increased by approximately 16% for three consecutive quarters. Compared to SK Stoa’s 1.4% sales increase in the second quarter, Shinsegae Live Shopping’s sales growth rate is notably high. Operating profit saw an even larger jump, with a 288.5% increase year-on-year in the fourth quarter of last year, a return to profitability in the first quarter of this year, and a 145.8% increase in the second quarter. Given the marked turnaround in performance since Lee took over, it’s evident that he has significantly revamped Shinsegae Live Shopping. Lee is living up to Shinsegae Group’s expectations of being the company’s savior. He has demonstrated the same capabilities at Shinsegae Live Shopping as he did while serving as CEO of Starbucks, where he developed the mobile order service, Siren Order, and successfully re-exported it to the U.S. headquarters. There were doubts about the 1949-born Lee’s ability to achieve results in the T-commerce market, where trend-reading skills are crucial. However, he has been dispelling these doubts one by one with his performance. Shinsegae Live Shopping had previously failed to leverage its advantage as a Shinsegae Group affiliate. Since Lee’s appointment, he has infused Shinsegae Live Shopping with the group’s identity, kickstarting a rebound in performance. Shinsegae Live Shopping has been consistently launching collaborative products with other group affiliates like Shinsegae Department Store, Shinsegae Casa, and Chosun Hotels & Resorts. This approach aims to leverage Shinsegae Group’s strengths to create synergies. Both Shinsegae Department Store and Chosun Hotels & Resorts are affiliates Lee has previously been involved with. He served as the head of the support headquarters at Shinsegae Department Store and as CEO of Chosun Hotels & Resorts, giving him a good understanding of their strengths. Lee emphasizes the importance of product competitiveness through collaboration with other affiliates to his employees. He attends the new product selection committee every week to personally review the products. A Shinsegae Live Shopping official told Business Post, “Even though it’s not mandatory for the CEO to attend the new product selection committee, Lee has been attending every week since his appointment. He delegates the product launch decisions to the employees but asks many questions to assess product competitiveness.” Lee’s strategy of differentiating products is resonating with consumers. Shinsegae Live Shopping reported that its operating profit increased in the second quarter due to strong sales of its private brand (PB) products. In May, Lee launched a new program called ‘Shinlavel,’ specializing in selling lifestyle products. ‘Shinlavel’ stands for ‘Shinsegae Lifestyle Balance,’ and it is hosted by Noh Yang-sun, who worked at Hyundai Home Shopping for 20 years. A Shinsegae Live Shopping official said, “Since Lee’s appointment, the business direction of Shinsegae Live Shopping has become clearer. His emphasis on communication, such as reaching out to young employees and dining with them, has raised expectations internally about the company’s future transformation.” #LeeSeockKoo #ShinsegaeLiveShopping #StarbucksMagic #TCommerce #salesgrowth #ShinsegaeGroup #productdifferentiation #businessrevamp #privatebrand #Shinlavel
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- POSCO E&C's Chon Jung-son Races to Secure Nuclear Technology, Emerging as a Dark Horse
- Chon Jung-son, CEO of POSCO E&C, is dedicating himself to securing nuclear technology, which is emerging as a future growth engine in the construction industry. POSCO E&C, with its accumulated nuclear technology, is attracting attention for its potential to stand out in the future nuclear business, including small modular reactors (SMRs). On August 8, POSCO E&C announced that CEO Chon is actively expanding into nuclear-related businesses as part of diversifying its eco-friendly business portfolio. In his message in a recently published sustainability management report, Chon clearly expressed his commitment to advancing new energy businesses, including nuclear power, and technological advancement. He stated, "We will provide sustainable energy solutions by focusing on clean energy sources such as small modular reactors (SMRs) and the construction of commercial floating offshore wind farms. To achieve this, we will enhance our core capabilities in engineering, procurement, and construction (EPC), as well as strengthen our smart innovation technologies." Recently, POSCO E&C participated in a public-private cooperation project to develop a 'high-temperature gas-cooled reactor' capable of supplying extremely high temperatures of 700-950℃ to industrial sites such as petrochemical and steel industries. On July 31, the Ministry of Science and ICT announced, "Korea Atomic Energy Research Institute, POSCO E&C, Daewoo Engineering & Construction, Smart Power, SK Eco Plant, and Lotte Chemical have jointly begun developing a high-temperature gas-cooled reactor capable of supplying heat for industrial processes." A high-temperature gas-cooled reactor uses triple-coated ceramic nuclear fuel (TRISO), graphite as a moderator, and helium instead of water as a coolant. Unlike typical nuclear reactors used for power generation, a high-temperature gas-cooled reactor can supply high heat for industrial processes. The ceramic-coated nuclear fuel maintains stability at temperatures above 1600℃. Its design allows natural cooling with air, reducing risks. POSCO E&C plans to create new businesses by linking high-temperature gas-cooled reactors with POSCO Group's core steel industry. Chon Jung-son, who has served as CEO of POSCO C&C (now POSCO Steelon), head of POSCO's Strategic Planning Division, and head of POSCO Holdings' Management Strategy Team, is well-versed in the group's affairs. He is expected to drive the synergy between POSCO E&C's new nuclear business centered on high-temperature gas-cooled reactors and POSCO Holdings' core steel business. POSCO E&C, leveraging its accumulated nuclear technology, is also actively advancing in the nuclear power generation business, including small modular reactors. POSCO E&C holds certifications in the nuclear manufacturing and construction fields from the American Society of Mechanical Engineers (ASME) and the Korean Electric Power Industry Code (KEPIC) for nuclear construction and design, laying the foundation for entry into the nuclear power generation business. In 2023, the company expanded and reorganized its existing Nuclear Business Promotion Team into the Nuclear Business Unit, which handles all processes from sales to construction. POSCO E&C is also participating in the development and commercialization of the 'Innovative Small Modular Reactor (i-SMR),' which the government aims to bring to market by 2030. The i-SMR passed a preliminary feasibility study in September 2021. It aims to obtain standard certification by 2029 and to start exporting by 2030. SMRs, with a low output of 300MW, are designed using modular construction methods, making standardization easy. They are highly safe and efficient in terms of radioactive waste generation. Compared to large nuclear reactors, SMRs are easier to finance initially, can be installed on smaller sites, and reduce costs for building transmission and distribution infrastructure. POSCO E&C previously participated in the SMART reactor (System-integrated Modular Advanced Reactor) project, which is the predecessor of the 'Korean SMR,' completing its development in 2012 and obtaining standard design certification from the Nuclear Safety and Security Commission. Recently, the SMART100, an enhanced version of the SMART reactor with a 10% increase in output and improved safety, was recognized for its technical safety in a pre-review by the Nuclear Safety Expert Committee. Final approval is expected within the year as requested by the Nuclear Safety and Security Commission members. POSCO E&C stated in its sustainability management report that it would actively participate in related projects as a construction company if the SMART reactor construction is initiated. It is known that POSCO E&C has secured comprehensive priority implementation rights through participation in the national SMART reactor project. Last year, POSCO E&C was selected as the successful bidder for the main equipment construction project for Shin Hanul Units 3 and 4 as part of the Hyundai Construction Consortium. The main equipment construction involves civil, architectural, mechanical, electrical, piping, and instrumentation work, as well as commissioning related to the primary equipment of nuclear power plants. By participating in the Shin Hanul 3 and 4 consortium, POSCO E&C has secured a track record in commercial nuclear power plant construction. Furthermore, POSCO E&C possesses top-tier domestic technology in constructing accelerator research facilities, which require high nuclear technology comparable to nuclear power plants. Accelerator research facilities are devices that accelerate particles within electric or magnetic fields to generate large amounts of kinetic energy. POSCO E&C completed the construction of the Pohang 4th Generation Synchrotron Radiation Facility in 2016 and the Heavy Ion Accelerator in Yuseong-gu, Daejeon in 2021. #POSCOE&C #ChonJungson #NuclearTechnology #SMR #HighTemperatureGasCooledReactor #Sustainability #CleanEnergy #IndustrialHeat #KoreaAtomicEnergy #SMARTReactor #ConstructionIndustry #AcceleratorResearchFacility #POSCOGroup
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- Prosecution Arrests and Indicts Kakao Founder Kim Beom-soo for Involvement in SM Entertainment Stock Manipulation
- Kim Beom-soo, the founder of Kakao and Chairman of the Management Innovation Committee, has been indicted while under arrest. The Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office announced on the 8th that Kim was indicted for violating the Capital Markets Act. Former Kakao CEO Hong Eun-taek and former Kakao Entertainment CEO Kim Sung-soo were previously indicted without detention. Kakao is suspected of interfering with a public tender offer by rival HYBE during the acquisition process of SM Entertainment in February last year. The allegation involves manipulating SM Entertainment's stock price to exceed the public tender offer price of KRW 120,000 (US$ 86.55), thereby obstructing the tender offer. The prosecution reportedly secured evidence indicating Kim's involvement in the stock manipulation scheme. Earlier, on July 9, the prosecution summoned Kim for questioning and subsequently requested an arrest warrant. On July 23, the Seoul Southern District Court accepted the prosecution's request and issued the arrest warrant. #KimBeomSoo #Kakao #SMEntertainment #stockmanipulation #CapitalMarketsAct #HYBE #prosecution #arrest #indictment #financialinvestigation
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- HD Hyundai CEO Kwon Oh-gap Calls Emergency Meeting, 'Reassessing Subsidiaries' Business Plans'
- HD Hyundai CEO Kwon Oh-gap recently instructed the management of the company's affiliates to comprehensively review their existing management plans in response to rapidly changing external business environments. On the 7th, HD Hyundai announced that Chairman Kwon convened an emergency meeting with the presidents of major affiliates to assess risks and discuss countermeasures in light of recent concerns. These concerns include △fears of a U.S. recession △the bubble controversy surrounding major big tech companies like AI △the unwinding of the yen carry trade △the resurgence of geopolitical instability in the Middle East. The meeting was attended by Chairman Kwon, Vice Chairman and CEO Chung Ki-sun, and 20 presidents from 15 major affiliates, including HD Hyundai Heavy Industries, HD Hyundai Oilbank, and HD Korea Shipbuilding & Offshore Engineering. The executives agreed that due to HD Hyundai's business structure, which is centered on manufacturing and exports, the company is highly susceptible to global economic fluctuations. They decided to review their existing management plans from scratch based on the prepared contingency plans for each company. Additionally, the group agreed to focus on closely inspecting the performance for the second half of 2024, considering changes in the business environment, and to establish the 2025 management plan earlier than usual. Chairman Kwon stated, “Recent global economic indicators such as stock prices, exchange rates, and oil prices are showing unusual volatility. In such uncertain business environments, it is necessary to strengthen our core capabilities to enhance the competitiveness of our main businesses while solidifying our fundamentals.” He emphasized, “The role and judgment of leaders become more critical in highly uncertain situations. The sincere sense of responsibility from each company’s leaders is the first step in overcoming uncertainty.” He added, “It is important to clearly explain the risks the company faces and their impacts to the employees and to create a consensus to move forward with one heart and one mind towards the same goal.” Chairman Kwon’s emphasis on responding to rapid changes in the situation is due to the sensitivity of HD Hyundai Group’s key businesses, such as shipbuilding, refining, and construction equipment, to global economic conditions. This year, HD Hyundai Group has been performing well due to the boom in the shipbuilding and power equipment markets. However, it is aware that market conditions can change at any time, bringing potential crises. The refining business is experiencing a decline in refining margins due to falling oil prices and decreased demand caused by the economic downturn. The construction equipment business is also struggling due to the downturn in the construction industry caused by tight monetary policies. Chairman Kwon has frequently urged the management to avoid complacency with the improving performance and to tighten the reins to secure future growth engines. During the group’s executive meeting on July 28 last year, he said, “If the temporary gains we make due to external environmental changes such as exchange rates and market conditions give us the wrong signals, they can turn into ‘bad profits.’ Managers must not be deluded into thinking the company has achieved tremendous growth based on bad profits.” #KwonOhgap #HDHyundai #EmergencyMeeting #ManagementReview #GlobalEconomicRisk #Shipbuilding #RefiningBusiness #ConstructionEquipment #FutureGrowth #BusinessStrategy
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- Amorepacific Faces Crisis in China Business, CEO Kim Seung-hwan at Crossroads with 'Premium Strategy'
- Amorepacific's business in China is sinking under the leadership of CEO Kim Seung-hwan. Despite efforts to strengthen premium products to differentiate from local companies, performance has been declining. Kim has reached the midpoint of his term as CEO, and his future will likely be influenced by the strategies he implements for the China business. On the 7th, 7 out of 10 major securities firms that issued analysis reports on Amorepacific lowered their target stock price due to deteriorating performance in China. Most analysts pointed out the poor situation in the China business. Joo So-jung, an analyst at Kiwoom Securities, said, "The underperformance of duty-free sales and the Chinese subsidiary had a significant impact on operating profit," and predicted, "Cost concerns from business restructuring in the Chinese subsidiary will continue in the second half." Kim Myung-joo, an analyst at Korea Investment & Securities, also stated, "Due to poor performance in the Chinese market and lower-than-expected results from COSRX, the second-quarter performance fell short of market expectations," and estimated, "The operating loss of the Chinese subsidiary in the second quarter will be similar to the same period last year, with a slight increase in the third quarter." These opinions differ somewhat from the recent voices urging Amorepacific to reduce its dependence on the China business and diversify its market to non-China regions, indicating that it is difficult to completely disregard the China business in assessing Amorepacific's corporate value. In response to the deteriorating situation in China, Kim has pursued a so-called 'exit from China' strategy, expanding business to the U.S., Japan, and Europe by acquiring the global brand COSRX. At the regular shareholders' meeting in March, Kim said, "We will accelerate the development of new business areas and markets and improve overall business profitability," and emphasized, "As a result of efforts to improve channels and find growth drivers over the past few years, the proportion of business in North America and Japan has significantly expanded, and we have successfully entered new markets such as the UK and the Middle East." Despite Kim's market diversification strategy, the importance of the China business to Amorepacific was evident in the second-quarter performance. Thanks to the integration of the global brand COSRX, sales in the Americas and Europe/Middle East regions increased by 65% and 182%, respectively, but a 44% decrease in sales in Greater China offset most of the positive effects. The approximately KRW 85 billion (USD 61.3 million) drop in sales in Greater China in the second quarter highlights the problems in Amorepacific's China strategy. Kim's strategy for the China business is summarized as 'premiumization.' Amorepacific continues to focus on luxury brand Sulwhasoo and has recently introduced the premium brand AP Beauty in China. The judgment is that competing directly with local Chinese brands through mid-to-low-priced brands has not yielded significant results. However, Amorepacific has not seen success with this strategy. The average price of the three products introduced by AP Beauty in China is around KRW 500,000 (USD 360.5). The premium line of Sulwhasoo, Jinsul Line, was also priced at around KRW 300,000 (USD 216.4) for essence, eye cream, and cream on the Chinese online platform Tmall as of April. In fact, local buyers' reviews on Tmall often mention that the prices are somewhat high considering the quality. There are also opinions comparing brand value relative to price with other global brands. An Amorepacific representative said, "Since luxury brand Sulwhasoo accounts for the largest portion of our sales in China, it may seem that we are pursuing a premium strategy, but we also offer various brands at different price points such as Laneige and Innisfree," and added, "Within Sulwhasoo, we also offer relatively affordable lines such as Yoonjo and Jaumsaeng, allowing local Chinese customers to choose products according to their price range." Voices inside and outside the industry suggest that Kim may need to completely reconsider the strategy for the China business. Excluding the second quarter of 2023, Amorepacific has recorded double-digit declines in China sales for nine consecutive quarters from the first quarter of 2022 to the second quarter of 2024. The fact that the company has not achieved clear results with the existing strategy and has rather seen a decline in performance indicates that there may be problems with the company’s strategy. Kim is also under significant pressure. Kim was appointed CEO of Amorepacific for a three-year term in March 2023. Despite reaching the midpoint of his term, Amorepacific has not yet escaped the downturn in its China business. Unless Amorepacific declares that it will continue to reduce the scale of its China business, finding the key to a sales rebound is crucial for Kim. Kim is a trusted figure of Amorepacific Group's owner, Chairman Suh Kyung-bae. He is also known for being a fellow alumnus of Yonsei University's Business Administration Department. Since joining Amorepacific in 2006, Kim has held positions such as head of the Management Strategy Team and head of the Strategic Planning Division of Amorepacific Group. He is credited with driving the global sales growth of Amorepacific Group by establishing new overseas subsidiaries and expanding the China business. In 2015, he was appointed head of the Group Strategy Unit, overseeing the business strategies of domestic and international subsidiaries and affiliates of Amorepacific Group. After being appointed CEO of Amorepacific Group, the holding company, in 2021, he has been working on improving the management structure. He was appointed head of Amorepacific in 2023, taking on the crucial role of expanding global business and discovering future business opportunities, which are core tasks for Amorepacific. Amorepacific seems to be setting a policy of reviewing its existing business structure and working on cost efficiency rather than drastically changing its strategy in the China market. As the business structure in the Chinese market is shifting from offline to online, Amorepacific plans to improve offline store efficiency and check which channels each brand can sell effectively to improve profitability. An Amorepacific representative said, "In China, we will continue to build a close distribution partnership with global distributors while reviewing the existing online and offline business structures in detail," and added, "We aim to achieve a sustainable business structure and stable growth in the medium to long term through our key brands Sulwhasoo, Laneige, and Innisfree." #Amorepacific #ChinaBusiness #KimSeunghwan #PremiumStrategy #Sulwhasoo #COSRX #MarketDiversification #SalesDecline #GlobalExpansion #BusinessStrategy
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- People Power Party Gears Up for Economic Downturn; Han Dong-hoon Defends with Livelihood Issues Against Special Prosecution Push
- Han Dong-hoon, the leader of the People Power Party (PPP), is preparing measures to address interest rates and inflation as concerns about an economic downturn grow. It is interpreted that he is emphasizing livelihood issues to defend against the special prosecution offensive led by the Democratic Party and other opposition parties. According to political circles on the 7th, within the PPP, there are voices advocating for leading livelihood policies to counter the U.S.-induced economic risks and to shift the political landscape currently dominated by the opposition. Han's recent proposal at the PPP's policy meeting to reduce electricity bills is seen as part of this strategy. Han stated, "To stabilize livelihoods during the heatwave, we will arrange a party-government meeting related to electricity bill reductions," and added, "Since lawmakers from both parties have proposed bills to reduce electricity bills for vulnerable groups, we will work quickly to achieve bipartisan agreement." In response, the Democratic Party also showed a cooperative stance, leading to a temporary easing of the extreme political confrontation. Jin Sung-joon, the policy chief of the Democratic Party, said, "Han Dong-hoon, the leader of the PPP, proposed reducing electricity bills for vulnerable groups, and we suggest forming a discussion table not only for electricity bills but also for other livelihood issues." It is analyzed that the opposition, including the Democratic Party, is taking this approach, conscious of the public's fatigue with their strong push for various special prosecution laws. After meeting Jin Sung-joon on the 7th, Kim Sang-hoon, the PPP's policy chief, said in a briefing, "Among the bills proposed by the Democratic Party, there are livelihood economic bills that can be agreed upon and processed through consultation with PPP lawmakers, so we will hold regular meetings with Jin Sung-joon to process them by agreement." The fact that almost two months have passed since the 22nd National Assembly was launched, and no laws or livelihood policies have been processed by bipartisan agreement reflects the sense of crisis in both parties. Chu Kyung-ho, the PPP's floor leader, also said at a press conference on the 7th, "The 22nd National Assembly has been filled with special prosecution disputes so far, and there has been no focus on livelihoods, which is regrettable. We propose a ceasefire in political disputes during the August extraordinary session." Within the PPP, there were calls to devise measures for high interest rates and inflation to find an exit strategy from the special prosecution political situation. Yoon Sang-hyun, a PPP lawmaker who competed with Han Dong-hoon at the party convention, recently posted on Facebook, "To address the burdens on households and businesses from prolonged high interest rates and sluggish domestic demand, we need to discuss interest rate policies together," adding, "By maintaining a tight monetary policy while closely managing risk factors such as real estate and household debt, we can minimize side effects and lead a recovery in domestic demand." Although the authority over interest rate policies lies with the Bank of Korea, some view that if the ruling party publicizes the issue, it could demonstrate a sound party-government relationship. Initially, Han Dong-hoon focused more on inflation control than interest rate policies during the party convention process, but he seems to be focusing on economic policies, including interest rates, to increase party support by accommodating recent internal opinions. Han appears to have concluded that paying more attention to the economy amid concerns about a U.S.-induced economic crisis, reflected in negative signals from the stock market, will help in gaining the political initiative. The recently announced U.S. unemployment rate recorded 4.3%, meeting the "Sahm Rule" (the theory that if the three-month moving average of the U.S. unemployment rate is at least 0.5 percentage points higher than the lowest value of the previous 12 months, the economy has entered a recession). Moreover, criticism that the Federal Reserve missed the timing to cut interest rates in July has heightened concerns about an economic recession in the market. At a recent supreme council meeting, Han said, "During the last general election, there were many concerns about inflation among the public," and pledged, "Since it takes time for policies to be announced, take effect, and be felt by the public, we promise to respond swiftly to economic fluctuations in the future." Political experts believe that Han will strengthen efforts to solidify his leadership by focusing on economic issues and seeking to improve relations with the opposition parties. Kim Geun-sik, a professor at Kyungnam University, appeared on 'YTN NewsNOW' and said, "Han Dong-hoon is expanding contacts with lawmakers with whom he had conflicts during the PPP convention process," adding, "Furthermore, to seek cooperation with the opposition centered on livelihood issues, he will prepare to meet with opposition leaders." #PeoplePowerParty #HanDonghoon #economicdownturn #interestrates #inflation #livelihoodpolicies #specialprosecution #bipartisanagreement #DemocraticParty #economicmeasures
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- Amorepacific stock price plunges 23% during trading, large volumes released on Q2 earnings report
- Amorepacific's stock price is sharply declining during trading hours. As of 10:35 am on the 7th, Amorepacific's stock price is trading at KRW 126,600, down 23.64% (KRW 39,200) from the previous day. Amorepacific announced an operating profit of KRW 4.2 billion (USD 3 million) for the second quarter after the market closed on the previous day (6th). This figure represents a 29.5% decrease compared to the second quarter of last year, falling 94% below market expectations. As a result, securities firms are lowering their target prices. On this day, Korea Investment & Securities lowered Amorepacific's target price from KRW 240,000 to KRW 200,000. Kim Myung-joo, a researcher at Korea Investment & Securities, stated, "Amorepacific fell below market expectations due to poor performance in its China-related business and skincare brands like Cosrx," and expressed disappointment, saying, "It is regrettable to report disappointing results amid growing concerns about the U.S. economy."
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- Reuters: "Samsung Electronics' HBM3E Certified by Nvidia," Samsung: "Still Testing"
- Samsung Electronics' fifth-generation high-bandwidth memory (HBM), the 8-layer stacked HBM3E, has reportedly passed Nvidia's certification. In response, Samsung Electronics stated, "We are currently conducting (certification) tests," denying the report. On the 7th, Reuters, citing internal sources, reported that Samsung Electronics' 8-layer HBM3E has received Nvidia certification. HBM3E is a key semiconductor used in Nvidia's artificial intelligence (AI) chips. Reuters reported that Samsung Electronics is set to sign a supply contract with Nvidia soon and will begin supplying HBM3E starting in the fourth quarter. A Samsung Electronics representative commented, "We cannot confirm details related to our customers," adding, "We are conducting tests with major customers." #SamsungElectronics #HBM3E #Nvidia #Certification #AIChips #Semiconductors #ReutersReport #SupplyContract #FourthQuarter #Testing
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- Shareholders Divided on Celltrion-Celltrion Pharm Merger, Seo Jung-jin Faces Tough Persuasion
- Seo Jung-jin, chairman of Celltrion Group, is facing potential difficulties with the merger between Celltrion and Celltrion Pharm, considered the final piece of the puzzle for the unified Celltrion. Minor shareholders of Celltrion are strongly opposing the merger with Celltrion Pharm, unlike the previous merger with Celltrion Healthcare, raising concerns about possible delays in the integration plan. On the 6th, reactions from shareholders of both companies regarding the merger were mixed. Celltrion shareholders generally oppose the merger, arguing that Celltrion Pharm's stock is currently overvalued. In contrast, Celltrion Pharm shareholders insist that Chairman Seo should fulfill his previous promise to merge the three companies: Celltrion, Celltrion Healthcare, and Celltrion Pharm. Given the differing reactions from the shareholders of the two companies, Chairman Seo is likely facing deep contemplation. Chairman Seo Jung-jin of Celltrion Group. Chairman Seo has shown his intention to decide on the merger by reflecting shareholders' opinions as per the existing policy. However, the issue of stock purchase claims arising during the merger process is likely to be a variable. In March this year, Chairman Seo attended the Celltrion shareholders' meeting via video conference and said, "When the time comes for the merger between Celltrion and Celltrion Pharm, we will ask for the opinions of the shareholders of both companies," and added, "There will be no merger that ignores the opinions of Celltrion shareholders." Since Celltrion already owns 54.8% of Celltrion Pharm, and minor shareholders are in favor of the merger, the scale of stock purchase claims is not expected to be large. However, in the case of Celltrion, if the voices of minor shareholders opposing the merger lead to stock purchase claims, the company may face significant costs. After the merger between Celltrion and Celltrion Healthcare, it was found that the largest shareholders, including Chairman Seo and special relations, hold a 28.15% stake. Thus, the control is not high. In contrast, the rest of the minor shareholders, excluding the Employee Stock Ownership Association's 0.22% and treasury stocks' 5.02%, amount to 60.23%. Fortunately, Chairman Seo has not yet used most of the funds prepared for the merger of the three Celltrion companies. However, given the high proportion of minor shareholders opposing the merger between Celltrion and Celltrion Pharm, there are views that Chairman Seo lacks justification to push ahead with the merger immediately. Chairman Seo Jung-jin at an online meeting on August 24, 2023, discussing the Celltrion merger. (Screenshot from Celltrion YouTube channel) In August last year, Chairman Seo announced the merger between Celltrion and Celltrion Healthcare, revealing plans to complete the three-company merger in two stages and securing over KRW 1 trillion (USD 721.2 million) for this purpose. The stock purchase claims exercised during the first-stage merger between Celltrion and Celltrion Healthcare amounted to KRW 7.9 billion (USD 5.7 million), leaving most of the funds unused. If Chairman Seo proceeds with the merger against the voices of minor shareholders, it would contradict his previously emphasized promise to pursue the merger at the time shareholders desire, causing a significant burden. Given that the Celltrion Minor Shareholders Alliance does not oppose the merger itself but rather its timing, there is room for adjustment. The Minor Shareholders Alliance stated, "The merger with Celltrion Pharm should occur when the value of Celltrion and Celltrion Pharm is equally assessed, and Celltrion Pharm is clearly growing," and added, "We believe the synergy effect will be achieved by not allocating new shares at the time of the merger for Celltrion Pharm's treasury stocks at an appropriate time in the future." #Celltrion #CelltrionPharm #Merger #SeoJungjin #MinorShareholders #StockPurchaseClaims #HealthcareMerger #CorporateStrategy #ShareholdersMeeting #BusinessIntegration
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- KG Mobility's Kwak Jae-sun to Launch Full Lineup of Eco-Friendly Vehicles: Four EVs and Two HEVs Next Year
- Kwak Jae-sun, CEO of KG Mobility, is set to begin a full-scale transformation into an eco-friendly vehicle company by releasing new electric vehicles (EVs) and hybrid electric vehicles (HEVs) consecutively next year. Amid a global slowdown in EV demand, the company’s first hybrid car launch is expected to help boost its recently stagnant sales performance. If the company expands its eco-friendly vehicle lineup from the current two models to as many as six next year, it will provide more domestic options for eco-friendly cars beyond Hyundai Motor and Kia. On the 6th, KG Mobility announced that it would launch Korea's first electric pickup truck, the 'O100' (project name), in the first quarter of next year. The O100 will be equipped with an 80.5 kWh battery, an upgrade from KG Mobility's mid-size electric SUV, the 'Torres EVX' (73.4 kWh), and is being developed to offer a driving range of over 400 km on a single charge for the two-wheel drive (2WD) model. The company has been strategically considering the optimal launch timing for the O100 between the end of this year and the first quarter of next year. It has now decided on the first quarter of next year, in line with the confirmation of EV purchase subsidy policies. In the first half of next year, KG Mobility will also launch the 'Torres Hybrid,' which will be equipped with a 1.5-liter gasoline hybrid engine and a 1.8 kWh battery. This marks the company’s first foray into the hybrid car market, targeting a fuel efficiency of 16 km per liter, slightly higher than the Kia Sorento Hybrid’s 15.7 km per liter. In July 2022, when the company first introduced the mid-size SUV Torres, it announced a 'selection and concentration eco-friendly car strategy,' aiming to transition directly from internal combustion engine vehicles to electric vehicles. However, as the global stagnation in EV demand intensified and demand for hybrid vehicles increased significantly, the company pivoted its electrification strategy in the second quarter of last year to include hybrid vehicles. In the second half of next year, the company plans to launch a compact SUV, the 'KR10' (project name). The KR10 hybrid model could also be released as early as next year. A company representative stated, "By targeting both the small and compact (B+, C segment) markets simultaneously, we aim to expand sales and create opportunities for increased domestic and international sales through hybrid vehicles." However, the KR10 hybrid model is expected to be released after the internal combustion engine and electric vehicle models. The company representative added, "The KR10 will first be launched as internal combustion and electric vehicle models in the second half of next year. We plan to incorporate hybrid systems into all our lineups, starting with the Torres Hybrid model in the first half of next year and expanding to models like the KR10." According to market research firm Kaizuyu Data Research Center, domestic EV sales in the first half of this year decreased by 16.5% compared to the same period last year, while hybrid vehicle sales increased by 24.3%. Chairman Kwak achieved profitability in the first half of this year, following last year, thanks to expanded exports. However, in July, the first month of the second half, the company's total sales fell by 11.2% compared to the same period last year, driven by a 66.8% drop in sales of the electric Torres EVX, which had led export growth. Given this, the company is expected to accelerate the launch of hybrid models like the Torres and KR10 to boost sales performance. Currently, the company sells seven types of vehicles worldwide, with only two eco-friendly models, the Korando EV and Torres EVX. With the launch of the KR10 hybrid model next year, the company will have a lineup of six eco-friendly vehicles: four EVs (Korando EV, Torres EVX, O100, KR10 EV) and two hybrids (Torres Hybrid, KR10 Hybrid). The expansion of KG Mobility's eco-friendly vehicle lineup is expected to provide domestic consumers with more options for domestic eco-friendly cars. As of July this year, there are only three domestically sold eco-friendly cars excluding Hyundai and Kia: Renault Korea's Arkana Hybrid, KG Mobility's Torres EVX, and Korando EV. When Chairman Kwak acquired SsangYong Motor (now KG Mobility) in August 2022 with the court's approval of the rehabilitation plan, the company only had one eco-friendly vehicle model, the Korando e-Motion, launched earlier that year. However, its driving range was limited to the low 300 km range per charge, and sales were halted after selling around 300 units due to insufficient battery supply. In November last year, Chairman Kwak signed a 'next-generation hybrid system joint development agreement' with BYD Group and its battery subsidiary, FinDreams Battery, at BYD Group's headquarters in Shenzhen, China. The company had already started developing the next-generation hybrid system with BYD before the agreement and is preparing to launch the Torres Hybrid model in the first half of next year. At the signing ceremony, Chairman Kwak stated, "Cooperation with BYD will strengthen our electric vehicle lineup, including the Torres EVX, KR10, and F100, introduce a dedicated electric vehicle platform, and launch hybrid vehicles, reshaping our product lineup to focus on eco-friendly cars." #KGMobility #KwakJaesun #EcoFriendlyVehicles #ElectricVehicles #HybridVehicles #TorresEVX #O100 #KR10 #AutomotiveIndustry #BYD #HybridSystemDevelopment #ElectricPickupTruck
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- Samsung Electronics Brings AI Features to Galaxy A Series, Roh Tae-moon to Overtake Apple with 'AI Advantage'
- Roh Tae-moon, head of Samsung Electronics' Mobile eXperience (MX) Division, is expected to apply 'Galaxy AI' to the budget-friendly Galaxy A series, which launched in March this year. Roh aims to quickly integrate AI into budget smartphones, following its inclusion in the Galaxy S24 series earlier this year and the recently released Galaxy Z Fold and Flip 6 foldable smartphones. This strategy aims to decisively surpass Apple, whose AI integration into iPhones has been delayed, and to dominate the global AI smartphone market. According to the U.S. IT media outlet SamMobile on the 5th (local time), Samsung Electronics plans to apply 'Galaxy AI' to the budget smartphones Galaxy A35 and Galaxy A55, released in March this year, through the 'ONE UI 6.1.1' update scheduled for the third quarter. In Korea, the Galaxy A35 5G was released in June, and the A55 5G is set to launch this month. AI features, which require high-performance mobile application processors (AP), have typically been limited to premium smartphones. Therefore, the application of Galaxy AI to the budget-friendly Galaxy A series is considered unprecedented. Initially, Apple planned to introduce its proprietary AI technology, 'Apple Intelligence,' in the iPhone 16 series to be released in September this year. However, it is now reported that Apple will unveil Apple Intelligence in October instead. Moreover, the Apple Intelligence to be revealed in October is expected to be a developer beta version. The general release for consumer use is anticipated to be further delayed. Experts see Apple's delay in AI integration as an opportunity for Samsung Electronics to firmly seize the initiative in the AI smartphone market. According to market research firm Counterpoint, Samsung Electronics ranked first in global AI smartphone sales in the first half of this year with a market share of 58.4%, followed by China's Xiaomi (11.7%) and Vivo (4.9%). Samsung Electronics dominated the top three positions in AI smartphone model sales. The Galaxy S24 Ultra ranked first with 30.1%, the Galaxy S24 second with 16.8%, and the Galaxy S24 Plus third with 11.5%. The Galaxy A series, being the best-selling model among Samsung smartphones globally, is expected to see increased sales with the addition of AI features in September. Particularly, the budget-friendly Galaxy A55, set to feature Galaxy AI, ranked third in Samsung's overall smartphone sales globally in the second quarter of this year. The Galaxy A15 4G and Galaxy A15 5G took first and second places, respectively, while the Galaxy S24 Ultra ranked fourth. However, due to the performance limitations of the mobile processors (AP) in the budget-friendly Galaxy A series, not all Galaxy AI features are expected to be available. Samsung Electronics is expected to apply Galaxy AI only to A series models released this year. SamMobile analyzed, “Not all Galaxy AI features will be applied to the Galaxy A35 and Galaxy A55,” and added, “Some features that require extensive 'on-device AI' processing capabilities will be excluded.” Additionally, although the Galaxy A35 and the previous model Galaxy A54 use the same AP, the 'Exynos 1380,' Galaxy AI features will not be applied to the Galaxy A54. Samsung Electronics is expected to provide AI features only to models released from 2024 onwards. Meanwhile, market research firm IDC forecasts that global AI smartphone shipments will increase by 363.6% this year compared to last year, reaching 234.2 million units. This represents 19% of the total smartphone shipments in 2024. The global AI smartphone market is expected to grow at an average annual rate of 78.4%, reaching 912 million units by 2028. #Samsung #GalaxyAI #RohTaeMoon #GalaxyA #Apple #smartphones #AI #technology #marketshare #innovation #OneUI
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- NHN Reports Q2 Operating Profit of KRW 28.5 Billion, Net Profit Plummets Due to Tmon-Wemakeprice
- On the 6th, NHN announced its provisional consolidated results for the second quarter, reporting sales of KRW 599.4 billion (US$ 432.1 million) and an operating profit of KRW 28.5 billion (US$ 20.6 million). Compared to the same period last year, sales increased by 8.7%, and operating profit rose by 36.3%. Breaking down by segment, the gaming division’s Q2 sales were provisionally estimated at KRW 106.4 billion (US$ 76.8 million), a decrease of 0.7% from the second quarter of last year and 12.7% from the first quarter of 2024. The company explained, “The overall game sales decreased due to the base effect of the successful 10th-anniversary event for the puzzle game 'Line Disney Tsum Tsum' in the first quarter. However, the web board game maintained its sales growth compared to the off-season first quarter.” The payment and advertising division’s Q2 sales were provisionally estimated at KRW 295.8 billion (US$ 213.3 million), a 14.7% increase from the same period last year. Sales from NHN KCP and NHN Payco increased by 18% and 9.3%, respectively, compared to the same period last year. The commerce division saw sales grow by 10.7% to KRW 57.4 billion (US$ 41.4 million) compared to the second quarter of last year. The company attributed this improvement to the management efficiency of its Chinese commerce business. Sales in the technology division were estimated at KRW 98.0 billion (US$ 70.7 million), up 4.7% from the same period last year. NHN Cloud’s sales increased by 34% from the second quarter of last year, following the official operation of the 'Gwangju National AI Data Center' starting in November 2023. In the content division, sales increased by 5.8% year-on-year to KRW 53.4 billion (US$ 38.5 million). The traffic stabilization of the webtoon platform NHN Comico and increased sales from NHN Link, which operates the ticket booking portal ‘Ticket Link,’ contributed to this growth. Operating expenses provisionally totaled KRW 570.9 billion (US$ 411.7 million), a 7.6% increase from the same period last year. Advertising and labor costs decreased by 24.5% and 4%, respectively, contributing to the reduction in overall operating expenses. However, fees and depreciation expenses increased by 12.6% and 26.8%, respectively, compared to the second quarter of last year, due to the impact of the cloud business and data center construction. Net profit was provisionally estimated at KRW 4.6 billion (US$ 3.3 million), a 70% decrease compared to the same period last year, due to the impact of NHN Payco's write-offs related to the Tmon-Wemakeprice incident. A company representative explained, “Approximately KRW 10.2 billion (US$ 7.4 million) has been processed as bad debt expenses by June,” adding, “Due to the concentration of transactions after July, the related situation will be clarified through accounting reflections and disclosures in the third quarter.” #NHN #Q2Results #OperatingProfit #NetProfit #TmonWemakeprice #SalesIncrease #Gaming #PaymentAdvertising #Commerce #Technology #Content #NHNPayco #GwangjuAIDatacenter #FinancialReport
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- NCSoft's Second Investment Choice in 'Subculture': Kim Taek-jin Seeks External IP to Overcome Crisis
- NCSoft has revealed its second equity investment target within a week. The company’s flagship IP, the 'Lineage' series, has been faltering, resulting in a recent sharp decline in performance. In response, NCSoft's Co-CEO Kim Taek-jin is looking to revitalize the company by infusing external intellectual property (IP). The choice to invest in a 'subculture' game company, a sector NCSoft has previously distanced itself from, is also attracting attention. On the 5th, NCSoft announced that it recorded KRW 368.9 billion (US$ 266.0 million) in sales and KRW 8.8 billion (US$ 6.3 million) in operating profit for the second quarter of this year on a consolidated basis. Compared to the same period last year, these figures are down 16% and 75%, respectively. Sales have been declining for nine consecutive quarters, and operating profit has plummeted to a quarter of its previous level, barely staying in the black. However, this is better than the initially expected quarterly loss in 12 years. The poor performance is largely due to the decline of NCSoft's flagship 'Lineage series.' The mobile MMORPG 'Lineage M' has managed to hold on, but other mobile games like 'Lineage 2M' and 'Lineage W' have seen revenue decline. PC online games, excluding 'Lineage,' such as 'Lineage 2,' 'Aion,' and 'Guild Wars 2,' have also experienced a drop in sales. The Lineage series has consistently been a cash cow for NCSoft, but its waning popularity has significantly impacted the company's performance. The large-scale updates and new project marketing for Lineage M this year have also increased cost burdens. Expectations for the second half of the year are not high. With the Lineage series experiencing a downturn, new games like 'Throne and Liberty (TL)' have not produced notable results. New games set to be released in the second half, such as the collection RPG 'Hoyeon,' the shooting genre 'LLL,' and the strategy game 'Tactan: Knights of the Gods,' along with TL's global release and Blade & Soul 2's launch in China, are not generating much anticipation. 'Aion 2,' expected to be released next year, is the only new game with financial prospects. NCSoft appears to be focusing on diversifying its portfolio by challenging new IPs and genres of games rather than seeking immediate profitability. ◆ Investment in Big Game Studio, Second External Investment in a Week In particular, NCSoft is reactivating its strategy of investing in and acquiring external game companies after a long hiatus to secure external IPs and diversify its portfolio. The company announced its second equity investment target today. It will invest KRW 37 billion (US$ 26.7 million) in shares and publishing rights of the domestic subculture game developer 'Big Game Studio.' Previously, on the 30th of last month, NCSoft made an initial investment of USD 3.5 million in the Swedish FPS developer 'Moon Rover Games,' making this the second investment announcement within a week. Big Game Studio released 'Black Clover Mobile,' based on the anime IP 'Black Clover,' last year and is developing the subculture game 'Breakers: Unlock the World.' Through this investment, NCSoft has secured the global publishing rights and shares in the developer. The fact that Big Game Studio specializes in subculture development is particularly noteworthy. NCSoft has never released a subculture game since its establishment. When releasing 'Blade & Soul 2,' CEO Kim Taek-jin excluded the style of former art director Kim Hyung-tae, which was a feature of the previous work, distancing itself from subculture. During the recent showcase for the new game Hoyeon, he declared, “Hoyeon is a work that has little to do with subculture,” clearly drawing a line. Given NCSoft’s lack of experience in subculture game production, it seems they aim to expand their game portfolio by securing publishing rights through external investments. Hong Won-joon, Chief Financial Officer (CFO), explained, “As part of a bifurcated strategy to secure business diversification momentum externally, we are investing in the shares and publishing rights of external game developers,” adding, “We aim to diversify NCSoft’s genres and user base through the investment in Big Game Studio.” It is also reported that the company is continuously looking for major M&A opportunities that could provide financial results beyond just game company share investments. CFO Hong stated, “While investments in external game developers are made in the early stages or for securing publishing rights, M&A is pursued with the aim of enhancing the overall direction and profitability of the company,” adding, “We are monitoring both domestic and international companies, all of which are game companies.” #NCSoft #KimTaekjin #investment #subculture #IP #Lineage #BigGameStudio #gameindustry #gaming #M&A
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- Korea's First Five Gold Medals in Olympic Archery, Chung Eui-sun Shows the Essence of Sports Sponsorship
- Korea won all five gold medals in archery at the Paris Olympics, marking the first time the country has swept all events. Experts attribute Korea's success in archery to the continuous and systematic support from Hyundai Motor Group and the Korea Archery Association. On the 4th (local time), Korea's Kim Woo-jin won the gold medal in the men's individual archery final at the Olympic Games held at the Invalides venue in Paris, France, defeating Brady Ellison of the United States. This achievement comes eight years after the Korean national archery team first won gold medals in all four events at the 2016 Rio Olympics. Notably, the team also added a gold medal in the mixed team event, which was introduced at the 2020 Tokyo Olympics. The national archery team started by winning the women's team gold medal on the 28th of last month, followed by victories in the men's team event, the mixed team event, and the women's individual event. The women's team set a monumental record by winning the Olympic team event for the tenth consecutive time. The men's team won their third consecutive gold medal, and the mixed team, which became an official event at the Tokyo Games, achieved their second consecutive gold medal. Kim Woo-jin became the first triple crown winner in men's archery history, and with five gold medals, he became Korea's highest gold medalist. Behind these remarkable achievements was the systematic support of Hyundai Motor Group, led by Chung Eui-sun, President of the Korea Archery Association. Hyundai Motor Group has supported Korean archery for 40 years, the longest period of sponsorship for a single sports organization in the country. In 1985, Chung Eui-sun's father, Chung Mong-koo, Honorary Chairman of Hyundai Motor Group, took office as the president of the Korea Archery Association, laying the foundation for expanding the archery base, discovering talent, and localizing equipment. Since 2005, Chung Eui-sun has been serving as the president of the Korea Archery Association with the support of archery enthusiasts. Hyundai Motor Group began preparing for the Paris Olympics three years ago, right after the Tokyo Olympics ended. President Chung personally oversaw the preparation process for the Paris Games from the start. It is reported that Chung arrived in Paris before the opening ceremony to check the preparation of the athletes' exclusive training grounds, rest areas, meals, and conditions, and stayed in Paris throughout the archery competition to support the athletes. According to the Korea Archery Association, “President Chung communicates closely with the athletes, providing necessary advice and serving as a mental mentor.” After achieving the tenth consecutive gold medal in the women's team event, President Chung said in an interview on-site, “We will do everything behind the scenes to allow our athletes to perform to their fullest potential,” and encouraged the athletes to approach their games confidently. Before this Olympic event, Hyundai Motor Group, in cooperation with the Korea Archery Association, provided customized support to maximize the athletes' performance. First, a facility identical to the Invalides venue in Paris was constructed at the Jincheon National Training Center. The national team held mock tournaments here, replicating the sound and broadcast environment expected at the Paris Games, to familiarize themselves with the venue's characteristics. They also conducted noise adaptation training at Jeonju World Cup Stadium in collaboration with Jeonbuk Hyundai Motors. On June 29, before a match between Jeonbuk Hyundai and FC Seoul, male and female archers practiced in a realistic game-like setting in front of a large crowd. Considering the variable of strong river winds at the Invalides venue near the Seine River, the team also conducted environmental adaptation training along the Namhan River in Yeoju. In Paris, a sports club about 10 kilometers from the Invalides venue was rented entirely for the national archery team’s exclusive practice. The team arrived in Paris on July 16, four days earlier than usual for such events, and conducted systematic training at this exclusive practice site, which helped with time zone adjustment. Hyundai Motor Group also attracted attention by developing and supporting archery training equipment and techniques using its R&D capabilities. Starting the project immediately after the Tokyo Games, Hyundai Motor Group focused on developing the technologies most needed by the athletes, supported by the group’s technical prowess. This support included a 'personal training shooting robot' that helps improve match sense by facing athletes one-on-one, 'outdoor training multi-camera' that precisely analyzes shooting posture to help achieve perfect form, 'portable bow verification equipment' that allows checking the state of the bow equipment anywhere, and a 'radiative cooling hat' made of new materials that reflect direct sunlight and maximize the emission of radiative energy. Additionally, they provided 'customized grips' produced by a 3D printer optimized for the athletes’ hands, 'vision-based heart rate measurement devices' to non-contact measure athletes’ biometric information and understand their tension levels, and a 'high-precision shooting machine' that selects the highest quality arrows. These were used during the preparation for the Paris Games and the actual competition, benefiting the national team and coaching staff. The key to the Korean archery team's exceptional performance is attributed to the transparency and fairness of the Korea Archery Association. After the mixed team event final on August 2, a Japanese reporter asked the team of Kim Woo-jin and Lim Si-hyeon, who won Korea’s third gold medal, “There are stories that Koreans have been good at archery since the Joseon Dynasty or Goguryeo. What is the secret to Korean archery's strength?” Kim Woo-jin replied, “Korean archery is well-organized. The Korea Archery Association ensures that all athletes compete on equal terms without any unfair practices. The association president shows great interest in archery and continuously supports ways to maintain Korea’s dominance in the sport. That’s why Korean archery remains strong.” This implies that the excellence of Korean archery does not stem from any genetic traits or secret techniques that other countries cannot emulate. The Korea Archery Association emphasizes that there are no unreasonable practices or unfair player selections due to regionalism or school ties. National representatives are selected strictly through competition based on their current skills, not their reputation or past performance. This stands in stark contrast to the recent controversies surrounding the Korea Football Association. With the support of Hyundai Motor Group, the archery association has established a system to foster excellent athletes from youth to national representatives. They have provided special support by supplying elementary schools with archery equipment and some middle school equipment, and since 2013, they have established a youth representative team, supporting equipment and training for elementary school students. This has systematized the process of nurturing talent from 'youth representatives (elementary) - youth representatives (U16) - candidate players (U19) - reserve national team (U21) - national representatives.' Brady Ellison, a member of the U.S. national archery team who won a silver medal in the individual event and a bronze medal in the mixed team event at this Olympic archery event, said, “I am the only archer in the U.S. who makes a living by shooting bows,” and “The archery systems in Korea and the U.S. are fundamentally different.” President Chung believes that for Korean archery to continue developing, it must become a popular sport enjoyed by the public beyond international competition achievements. Hyundai Motor Group and the association are promoting a project to include archery in school physical education classes. Starting with some middle schools in certain regions in 2022, archery has been taught in elementary school after-school programs or physical education classes, gradually expanding nationwide. Furthermore, plans are in place to revitalize sports competitions to make archery more thrilling for the general public who learn archery at clubs. The group currently hosts two archery competitions for the public each year. It is reported that President Chung has already directed the Korea Archery Association to prepare for the 2028 LA Olympics. #Korea #OlympicArchery #ChungEuisun #HyundaiMotorGroup #KoreaArcheryAssociation #KimWoojin #LimSihyeon #ParisOlympics #archery #sports #sponsorship
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- Yoon Suk-yeol Reverses Pledge, Moves to Reinstate Second Presidential Secretariat, Difficult to Avoid 'Kim Keon-hee Risk'
- President Yoon Suk-yeol, who promised to abolish the Second Presidential Secretariat during his candidacy, is now reversing that pledge and initiating procedures to reinstate it in August. This move appears to be a strategy to mitigate risks related to First Lady Kim Keon-hee, as a special prosecutor law concerning her is being processed in the National Assembly. However, the opposition and public criticism are strong, labeling it as a "showpiece" measure. It is expected that various controversies surrounding the First Lady will be difficult to avoid even after the Secretariat's reinstatement. According to political sources on the 5th, the reinstatement of the Second Presidential Secretariat is premised on the official activities of the First Lady, but public opinion on this matter is negative. A poll released by Yeolron Research on the same day showed that 69.1% of respondents believe that the reinstatement of the Second Presidential Secretariat will not resolve controversies related to First Lady Kim Keon-hee. Notably, even among the politically unaffiliated and moderate groups, over 70% responded that it would not be a solution. The public opinion seems to indicate that merely reinstating the Secretariat is insufficient to clear the various suspicions surrounding the First Lady. The main opposition parties, including the Democratic Party of Korea and the Progressive Innovation Party, are using this public sentiment to launch political attacks on the Yoon administration. Democratic Party spokesperson Choi Min-seok commented, “The presidential office has decided to reinstate the Second Presidential Secretariat and even appointed a new chief, but none of the suspicions regarding First Lady Kim Keon-hee have been resolved. Installing the Secretariat appears to be a 'bunker' to escape various allegations.” Democratic Party lawmaker Park Hong-bae also said in an interview with YTN Radio’s 'News Fighting' on the 5th, “Even if the Second Presidential Secretariat is established at this point, more than two years into the administration, it seems to be a defensive measure to quell noise around the First Lady, raising doubts about its sincerity.” With suspicions surrounding First Lady Kim Keon-hee’s acceptance of luxury bags and other allegations not addressed and no change in stance, simply reinstating the Secretariat is unlikely to evade the opposition's political drive. The Progressive Innovation Party also highlighted the delayed timing of the Secretariat’s reinstatement in its commentary, asserting that a special prosecutor targeting First Lady Kim Keon-hee is now necessary. Progressive Innovation Party spokesperson Bae Su-jin said, “The opposition has strongly demanded the reinstatement of the Second Presidential Secretariat since the beginning of the Yoon administration, but President Yoon ignored it. Now, facing the expanding investigation into the coercion allegations in the death of Sergeant Chae Sang-byeong, the administration has decided to reinstate the Secretariat, which is far too late. At this point, the only solution is the 'Kim Keon-hee Special Prosecutor Law.'” The cold response from the public and opposition towards the reinstatement of the Second Presidential Secretariat is due to the ambiguous legal status of the First Lady under current law, which makes it difficult for the Secretariat to function effectively in oversight or inspection. President Yoon, during his campaign, abolished the Secretariat, arguing that it was inappropriate to institutionalize a role outside the law for a presidential family member. However, the move is now seen as exacerbating the issue of First Lady Kim Keon-hee’s involvement in state affairs. Moreover, while reinstating the Second Presidential Secretariat, which is not legally required, President Yoon has yet to appoint a Special Inspector, a legal obligation, drawing criticism. Without a Special Inspector to monitor the president’s close associates, reinstating the Secretariat alone is seen as lacking genuine intent to address potential power-related corruption. Park Sung-tae, Director of the People and Society Research Institute, said on MBC Radio’s 'Political Insider,' “Only after First Lady Kim Keon-hee clearly addresses existing suspicions and apologizes can the reinstatement of the Secretariat be meaningful. Without her apology and change in attitude, appointing a stringent and critical Special Inspector would barely achieve balance.” #YoonSukYeol #KimKeonHee #SecondPresidentialSecretariat #SouthKoreaPolitics #DemocraticParty #PoliticalControversy #SpecialProsecutor #PublicOpinion #GovernmentAccountability #PoliticalStrategy
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- Hyundai Motor Group's Sales and Revenue Rank 3rd Globally in the First Half, Profit Margin Ranks 1st Worldwide
- Hyundai Motor Group solidified its position as the third-largest global company in terms of sales volume and profitability in the first half of this year. The operating profit margin recorded by Hyundai Motor Group was the highest among the top five global automotive companies. According to the first-half performance of global automakers compiled on the 4th, Hyundai Motor Group sold 3,616,000 units worldwide from January to June this year, ranking third in sales volume after Toyota Group (5,162,000 units) and Volkswagen Group (4,348,000 units). Hyundai Motor Group also ranked third in profitability, a measure of qualitative performance. Toyota Group, the global leader in sales, recorded revenue of JPY 22.9104 trillion (approximately KRW 212.9 trillion or USD 153.6 billion) and an operating profit of JPY 2.421 trillion (approximately KRW 22.5 trillion or USD 16.2 billion) in the first half of this year. Toyota's first-half performance is based on the fourth quarter of the 2023 fiscal year and the first quarter of the 2024 fiscal year, which correspond to Korea's first and second quarters, respectively. Volkswagen Group, the second largest, recorded revenue of EUR 158.8 billion (approximately KRW 235.9 trillion or USD 170.1 billion) and an operating profit of EUR 10.05 billion (approximately KRW 14.93 trillion or USD 10.8 billion) during the same period. Hyundai Motor Group's first-half revenue and operating profit were KRW 139.4599 trillion (USD 100.6 billion) and KRW 14.9059 trillion (USD 10.7 billion), respectively. The difference in operating profit (converted to Korean won) with Volkswagen, the second largest, was only about KRW 300 billion. In terms of operating profit margin, Hyundai Motor Group surpassed Toyota Group in the first half of this year, recording the highest figure among the top five companies (based on 2023 sales volume). Hyundai Motor Group's first-half operating profit margin was 10.7%, with Hyundai Motor (including Genesis) at 9.1% and Kia at 13.1%. This was higher than Toyota Group (10.6%), Volkswagen (6.3%), Renault-Nissan-Mitsubishi (4.2%), and Stellantis (10.0%). Among luxury automakers, Mercedes-Benz (10.9%) was the only company to surpass Hyundai Motor Group in operating profit margin. #Hyundai #automotiveindustry #salesranking #globalmarket #profitability #Toyota #Volkswagen #operatingprofit #luxurycars #Kia
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- KG Mobility's Domestic and Export Slowdown Signs, Kwak Jae-sun Desperate for Actyon's Success to Maintain Profitability
- The previously robust export performance of KG Mobility faces dark clouds due to the 'chasm' effect (a temporary stagnation in demand before mass adoption) in the electric vehicle market. Kwak Jae-sun, CEO and Chairman of KG Mobility, achieved consecutive semi-annual profits over the past two years, driven by export growth. However, to maintain this profitability, the success of the 'Actyon' set to launch this month is crucial. According to KG Mobility's sales performance data on the 2nd, overseas sales last month amounted to 4,076 units, a sharp decline of 40.1% compared to the same month last year. While domestic sales in July increased by 4.8% to 4,237 units compared to the previous month, the significant drop in exports led to a 23.4% overall decline in total sales. The company explained, "The decline in monthly sales in July was due to a decrease in export volumes caused by a slowdown in global electric vehicle market demand." Thanks to the increase in export volumes in the first half of this year, the company achieved an operating profit of KRW 25.7 billion (USD 18.5 million), marking its second consecutive semi-annual profit. The first-half profit last year was the first in seven years since 2016. The key driver behind the export growth was undoubtedly the Torres EVX electric vehicle. Since its first shipment for export in December last year, the Torres EVX achieved overseas sales of 5,958 units in the first half of this year. However, the export performance of the Torres EVX in July plummeted by 66.8% to 334 units compared to the same month last year. Given that the global electric vehicle market slump does not appear to be a one-off event, the decline in the company's export performance is likely to continue for some time. Kwak Jae-sun took over SsangYong Motor (now KG Mobility) following the court's approval of a rehabilitation plan in August 2022. Thanks to the robust domestic sales of the gasoline-powered Torres, launched in July of the same year, the company turned an annual profit for the first time in 16 years the following year. However, as the Torres entered its third year of launch this year, its new car effect is waning, losing its impact in the domestic market. From January to July this year, 9,802 units of the Torres were sold domestically, a 64% decrease compared to the same period last year. Starting in the first half of last year, Kwak Jae-sun sought out 'niche overseas markets' relatively neglected by global automakers. He implemented a strategy to focus on exports rather than the limited domestic market. As a result, the company's exports in the first half of this year reached 32,587 units, the highest in nine years. During the same period, exports accounted for 57.6% of total sales, surpassing domestic sales for the first time in ten years since 2014 (annual 51.1%). Despite a 38.5% decrease in domestic sales compared to last year, the company recorded a profit in the first half due to a 24.5% increase in exports. However, as of July, the beginning of the second half, both domestic and export sales are on a downward trend. In July, for the first time this year, the company's monthly export volume (4,076 units) fell below domestic sales (4,237 units) due to a sharp decline in Torres EVX export volumes. In a situation where a new volume model to succeed the Torres is desperately needed, Kwak Jae-sun is set to launch the coupe-style SUV 'Actyon' based on the Torres this month. A company representative said, "We will release the price and product information of Actyon in mid-month and start pre-orders," adding, "We will begin customer deliveries within this month." The Actyon, which began pre-orders last month after unveiling its exterior design, received over 35,000 pre-orders within seven days as of the 22nd of last month, indicating high interest. While this pre-order count is remarkable, industry insiders suggest caution, noting that there could be 'false orders'. The actual success of the model remains to be seen. Currently, Actyon pre-orders can be made by simply verifying one's identity on the dedicated site, unlike typical pre-orders that require a deposit of about KRW 100,000 (USD 72). Generally, the rate at which pre-orders convert to final sales is known to be between 30-60%. The company attributes the high number of pre-orders to the Actyon's unique coupe-style design and the practicality of an SUV that can be used for various purposes. However, this year's domestic automobile market is experiencing negative growth due to factors like reduced consumer spending. The industry believes that to achieve actual success, the Actyon must be competitively priced. The Torres, which led to last year's annual profit turnaround, also gained immense popularity by offering competitive prices starting in the 20 million KRW range (USD 14,423). #KGMobility #KwakJaeSun #Actyon #ElectricVehicles #TorresEVX #AutomobileMarket #ExportPerformance #DomesticSales #SUV #MarketStrategy
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- Nexen Tire's Performance Soars in Europe, Kang Ho-chan Eyes North America Plant for 'Global Top 10'
- Nexen Tire is achieving impressive results. Vice Chairman and CEO Kang Ho-chan has been steadily expanding production capacity at the European plant, laying the foundation for further overseas expansion. The European plant could be the stepping stone for Kang's goal to enter the 'Global Top 10' in the global tire industry. According to Nexen Tire's IR materials compiled on the 2nd, the company, which recorded an annual deficit just two years ago, turned a profit last year and is seeing rapid performance improvement this year, thanks to the expansion of the European plant. In the second quarter of this year, the company recorded KRW 763.8 billion in sales and KRW 62.9 billion in operating profit. Compared to the second quarter of 2023, sales increased by 10.5% and operating profit by 69.5%. Previously, the company faced significant production disruptions in 2020 and 2021 due to the COVID-19 pandemic, leading to an 81% and 88.9% drop in operating profit compared to the previous year. In 2022, the burden of shipping costs led to an operating loss of KRW 54.3 billion. However, last year, sales grew evenly across major regions, including North America, Europe, and Korea, leading to an operating profit of KRW 186.7 billion, marking a return to profitability. Nexen Tire's operating profit margin, which was negative in 2022, rose to 6.9% last year and reached 8% in the second quarter of this year. The company has set an annual operating profit margin target of 10% for this year. Analysts attribute the improved performance to the expansion of the European plant. Jung Yong-jin, a researcher at Shinhan Investment Corp., stated, "The expansion of production at the European 2nd plant, which had previously caused a burden on fixed costs, laid the foundation for performance improvement," adding, "Considering the profit contribution of the European 2nd plant in the second half, the company is expected to maintain the most stable margins among tire manufacturers." Jang Moon-soo, a researcher at Hyundai Motor Securities, also noted, "The expansion of production at the European 2nd plant has reduced the burden of fixed costs, contributing to the rise in performance," predicting, "The expansion of production at the European plant will continue into the second half of this year, with expectations for recovery in the replacement tire (RE) business due to the expansion of premium new car tire supply, distribution channel expansion, and inventory reduction." As of 2023, the European plant's production capacity was 5.5 million units. The company plans to gradually increase this to 11 million units annually. The operational rate of the European plant in the second quarter of this year was 20-30%, with a target to reach 50% by the end of this year and 100% by next year. The expansion of the European plant is seen as more than just a cost-saving measure through local production. When the European 2nd plant is fully operational, nearly 9 million units that were previously transported from Korea to Europe can be evenly exported to non-European regions such as North America and the Middle East. The company's regional sales distribution shows that Europe accounts for 40%, North America 25%, Korea 15%, and other regions 20%. In contrast, as of last year, production capacity was concentrated in △Yangsan and Changnyeong plants in Korea (28.5 million units), △Qingdao plant in China (11 million units), and △Czech plant in Europe (5.5 million units), with over half produced domestically. Since the end of last year, the company's production capacity (CAPA) has not kept up with orders, failing to meet European demand with local production. The expansion of local production capacity in Europe directly led to increased sales. Vice Chairman Kang has expressed his vision to elevate the company to a 'Global Top 10' tire manufacturer. However, additional overseas production bases are deemed essential to achieve this goal. According to the British tire specialist magazine Tyrepress's ranking based on sales in May this year, Hankook Tire ranked 7th, Kumho Tire 14th, and Nexen Tire 18th in the global tire industry. Hankook Tire produces 102 million units from eight production bases in Korea, China, the US, Europe, and Vietnam. Kumho Tire has a production capacity of 62.5 million units from eight plants in Korea, the US, China, and Vietnam. Nexen Tire is the only one of the three major domestic tire manufacturers with over half of its production capacity concentrated domestically. The company has not yet established a local production system in the US. Last May, the company announced plans to establish a plant in the US as part of its '2023 Management Goals and Mid- to Long-Term Investment Strategy.' The target area for the plant was the southeastern region of the US, with plans to invest USD 1.3 billion (KRW 1.7 trillion) and select a site by the second half of 2023. However, after a year of stagnation, the company revised its plan in June, changing 'North America Plant Establishment Plan' to 'New Plant Establishment Plan,' expanding the target area from 'eight southeastern US states' to 'North America and other global regions.' Despite this change, it appears that the company has not completely abandoned its plan to establish a local production system in the US, where it ranks second in sales after Europe. A company representative stated, "The initial plan was to establish a plant targeting North American demand, but we have expanded the candidate sites while carefully considering the final investment merits, not excluding North America." Industry speculation suggests that South America could be a candidate for the new plant. While the company has changed the location for the plant, it maintains the original target for the new plant's operational start between 2028 and 2029. A company representative commented, "To enter the global top 10 in the tire industry, the company is striving in various fields such as marketing, branding, production, and distribution," adding, "If the performance in Europe is favorable, the construction of additional overseas plants may accelerate." #NexenTire #KangHoChan #tireindustry #Europe #NorthAmerica #globaltop10 #businessstrategy #plantexpansion #productioncapacity #tiremanufacturing
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- Lee Jae-keun of KB Kookmin Bank Likely to be Reappointed Due to Strong Performance
- The CEOs of the four major banks (KB, Shinhan, Hana, Woori) all achieved solid performance in the first half of the year, signaling a potential extension of their terms. Among the bank CEOs, who typically receive a 2+1 year term, Lee Jae-keun of KB Kookmin Bank, now in his third year, has demonstrated his profit-generating strength through robust retail operations. Jung Sang-hyuk, CEO of Shinhan Bank, who ranked first in net profit in the banking sector, and Lee Seung-lyul, CEO of Hana Bank, who excelled in retirement pension performance, are also expected to easily secure an additional one-year term. However, the succession structure of the four major financial groups and the financial incidents that continued this year are considered variables that could affect the extension of the four bank CEOs' terms. As of June, the demand deposit balance of KB Kookmin Bank was KRW 153.1 trillion (USD 110.4 billion), an increase of 4.5% from the end of last year, the largest increase among the four major banks. Demand deposits are called "core deposits" because they can provide operating funds at a low cost. KB Kookmin Bank has once again proven its strength in retail finance. Additionally, despite the slowdown in household loan growth earlier this year, the balance of mortgage loans increased by 11.4%, the largest increase among the four major banks. As a result, KB Kookmin Bank achieved a consolidated net profit of KRW 1.5059 trillion (USD 1.085 billion), considered a solid performance despite the equity-linked securities (ELS) crisis that hit the banking sector. The significant increase in interest income (6.7%), driven by its strong retail operations, contributed to this outcome. Based on good performance, there is speculation that Lee Jae-keun, now in his third year as CEO, may succeed in being reappointed. While bank CEOs typically receive a 2+1 year term, KB Kookmin Bank has previously focused on stability through reappointments. Former CEO Hur Yin was reappointed in 2020, serving a 2+1+1 year term. Jung Sang-hyuk, CEO of Shinhan Bank, also increased his chances of reappointment by ranking first in net profit among the four major banks in the first half of the year. Shinhan Bank was the only one among the four major banks to achieve a net profit of KRW 2 trillion (USD 1.44 billion) in the first half. Under CEO Jung's leadership, Shinhan Bank actively pursued field-centric operations, increasing corporate loans by 9.9%, the largest among the four major banks, compared to a year ago. This was significant as corporate loans became a battleground for banks amid tightened household loan regulations by financial authorities. Lee Seung-lyul, CEO of Hana Bank, although losing the top spot in net profit to Shinhan Bank due to the ELS crisis in 2022 and 2023, has still proven the bank's solid fundamental strength. Hana Bank particularly stood out in the KRW 400 trillion (USD 288 billion) retirement pension market. As of the end of June, Hana Bank's total retirement pension increased by 22.5% from a year ago, the largest increase among the four major banks. CEO Lee's position within the group is considered strong as he was included as an internal director of Hana Financial Group along with Chairman Ham Young-joo and Hana Securities CEO Kang Seong-muk earlier this year. Cho Byung-kyu, CEO of Woori Bank, increased his presence by leading Woori Financial Group to a "surprise performance" with a double-digit net profit growth rate of 13.7% in the first half. Non-interest income surged by 60.3%, supporting the performance. At the management strategy meeting in the second half, CEO Cho confidently reaffirmed the goal of achieving the highest net profit in the banking sector set at the beginning of the year. While the four major bank CEOs have each increased their presence through strong performance, strengthening internal controls is considered a key variable for their reappointment. The banking sector has been plagued by financial incidents, such as the KRW 300 billion (USD 216 million) embezzlement at BNK Kyongnam Bank last year, insider trading at KB Kookmin Bank, and a KRW 10 billion (USD 7.2 million) embezzlement at a Woori Bank branch this year. If such incidents recur in the second half, reappointment could be jeopardized despite strong performance, as financial authorities are closely monitoring these issues. The terms and reappointment status of the heads of the four major financial groups will also affect the reappointment of the bank CEOs. Yang Jong-hee, Chairman of KB Financial Group, emphasized stability by deciding on CEO reappointments early this year, shortly after taking office in November last year. However, approaching his third year, he may start to show his own leadership style. Lee Jae-keun of KB Kookmin Bank was appointed during former Chairman Yoon Jong-kyu's tenure. For Lee Seung-lyul of Hana Bank, the reappointment status of Ham Young-joo, Chairman of Hana Financial Group, could be a variable. CEO Lee established his position working closely with Chairman Ham, who was then the CEO of Hana Bank, as CFO. Therefore, CEO Lee's future may depend on Chairman Ham's reappointment. Financial authorities are expected to pay close attention to the expiration of the terms of the four major bank CEOs, especially since the Financial Supervisory Service announced "best practices in governance" in December last year. Bank CEOs are typically considered the "second-in-command" within the core subsidiaries of financial holding companies. Their reappointment is closely linked to the governance of financial institutions, drawing significant attention. The position of vice chairman, previously considered a stepping stone for succession in financial holding companies, has disappeared due to pressure from financial authorities. According to the Financial Supervisory Service's best practices in governance, banks, starting this year, must begin the CEO succession process three months before the term expires, rather than the usual two months. Therefore, it is expected to become a full-scale process by September. #BankCEOs #KBKookminBank #ShinhanBank #HanaBank #WooriBank #FinancialPerformance #CEOReappointment #KoreanBanks #BankingSector #FinancialIncidents
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- Fed Chairman Signals Rate Cut, Bank of Korea's Rhee Chang-yong Prepares for October Reduction
- Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), hinted that the Fed might lower the benchmark interest rate starting in September, creating conditions for Rhee Chang-yong, Governor of the Bank of Korea, to also consider lowering the domestic benchmark interest rate. Governor Rhee may attempt to cut interest rates as early as the Monetary Policy Board meeting in October, but household debt, which is increasing in conjunction with housing prices in the metropolitan area, will likely be a variable in the transition of monetary policy. According to the Chicago Mercantile Exchange's FedWatch, which predicts the direction of the U.S. benchmark interest rate, there is a 100% probability that the Fed will lower the benchmark interest rate at the Federal Open Market Committee (FOMC) meeting scheduled for September 18. Specifically, the probability of a 0.25 percentage point cut from the current 5.25-5.50% level at the September FOMC is 86.5%, while the probability of a 0.5 percentage point cut is 13.5%. The market's 100% certainty of a U.S. benchmark interest rate cut is due to Chairman Powell's direct indication of an imminent monetary policy shift at the July 31 (local time) FOMC meeting. At a press conference that day, Chairman Powell said, "The FOMC's general perception is that the economy is approaching a point where it would be appropriate to lower the benchmark interest rate, and a rate cut could be discussed as early as the next September FOMC meeting." Chairman Powell directly suggested that a rate cut could be possible starting in September, stating, "If inflation slows rapidly or in line with expectations, while economic growth remains strong and the labor market maintains its current condition, a rate cut could be on the table at the September meeting." With the Fed effectively signaling a rate cut, Governor Rhee Chang-yong of the Bank of Korea now has the justification to end the 12 consecutive freezes on the benchmark interest rate and attempt a rate cut. The burden of lowering the domestic benchmark interest rate has eased as the historically wide gap between the benchmark interest rates of South Korea and the U.S., which has expanded to a maximum level of 2 percentage points since July 2023, may narrow due to the U.S. rate cut. Governor Rhee has emphasized that there is room for differentiated monetary policy as the Fed stops raising rates and maintains a freeze while considering cuts. However, concerns about the outflow of foreign investment funds and increased volatility in the won/dollar exchange rate have made it difficult to lower the domestic benchmark interest rate. In a report, Hah Geon-hyeong, a researcher at Shinhan Investment Corp., stated, "The July FOMC provided a signal for the Fed's monetary policy shift as expected," adding that it makes it possible to expect two benchmark interest rate cuts by the Bank of Korea this year. However, the rapidly increasing household loans in South Korea are likely to be a variable that will make Governor Rhee contemplate the benchmark interest rate cut until the last moment. Governor Rhee has been concerned that a rate cut could again expand household debt and inflation, and recent household loan statistics show that these concerns could become a reality. As of July 18, the household loan balance at the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) was KRW 712.1841 trillion (USD 513.6 billion), an increase of KRW 3.6118 trillion (USD 2.6 billion) from the end of June's KRW 708.5723 trillion (USD 511 billion). The increase in household loans was driven by mortgage loans as housing prices rose and purchasing sentiment recovered, particularly in the metropolitan area. As of July 18, the mortgage loan balance increased by KRW 3.7991 trillion (USD 2.7 billion) to KRW 555.9517 trillion (USD 400.9 billion) compared to the end of June. The minutes of the July Monetary Policy Board meeting, released on the 30th, also indicated that other board members, aside from Governor Rhee, emphasized the need for caution, noting that housing prices and household debt could again stimulate inflation. The Monetary Policy Board stated in the July monetary policy decision statement, "Although the inflation rate is expected to continue its downward trend, it is necessary to examine the impact of the foreign exchange market, housing prices in the metropolitan area, and household debt on financial stability. We will closely examine the conflicting relationships between variables and review the timing of the benchmark interest rate cut." #Fed #Powell #RheeChangYong #BankofKorea #InterestRateCut #USInterestRates #HouseholdDebt #MonetaryPolicy #FOMC #KoreanEconomy
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- NCSoft Resumes External Investments After 8 Years, Kim Taek-jin Seeks 'Cash Cow' to Replace Lineage
- NCSoft, known for its flagship Lineage series, has been experiencing sluggish performance. To secure new growth engines, the company has turned to external equity investments and active mergers and acquisitions (M&A) for the first time in eight years. NCSoft has traditionally been more conservative compared to its competitors when it comes to investing in external game companies and M&As. However, it recently decided to invest in an external game developer after eight years. By acquiring external intellectual property (IP), the company aims to secure new growth engines for games and expand into the global market. On the 1st, NCSoft's investment of USD 3.5 million (approximately KRW 4.8 billion (USD 3.5 million)) in the Swedish game developer Moon Rover Games was seen as a concrete step following the company's earlier announcement this year of plans for new investments and M&As. Moon Rover Games has been under consideration as an M&A candidate since late last year. Founded in Stockholm, Sweden, its founding members are former EA DICE employees who have worked on well-known first-person shooter (FPS) games like the Battlefield series and Far Cry. NCSoft made a solo investment in Moon Rover Games' seed round and is discussing various collaboration methods, including additional investments and publishing rights. This move aligns with NCSoft's recent business restructuring strategy. The company aims to expand its game portfolio beyond MMORPGs and enter new markets. Moon Rover Games, which develops FPS games popular in Western markets, appears to be a suitable investment target. Park Byung-moo, co-CEO of NCSoft, said, "Moon Rover Games is a company with high potential for new attempts based on its expertise in the shooting genre. This investment marks the beginning of the changes NCSoft will showcase in the future." However, since Moon Rover Games is not yet in a position to immediately contribute to NCSoft's performance, there is growing interest in future equity investments or acquisitions. Moon Rover Games is currently an early-stage startup with five members, working on a cooperative FPS game still in its initial development stages. Co-CEO Park announced plans to invest in equity and publishing rights of a domestic game development studio this month. Given NCSoft's previous announcement to produce M&A results within the year, there is speculation in the industry that this could involve acquiring a game company. Hong Won-jun, CFO of NCSoft, stated during the Q1 earnings conference call, "We are putting a lot of effort and time into M&As. We will show the direction of our investments with tangible results within this year." Industry insiders believe NCSoft is considering game companies with IPs that can succeed in foreign markets as acquisition candidates. NCSoft has mainly relied on domestic sales from the Lineage series and now needs a game that can increase its influence abroad. With the domestic mobile game market reaching saturation, it will be difficult to improve performance without success overseas. A securities industry representative commented, "Improving profitability is urgent, so game developers with IPs that can immediately contribute to performance or create synergy are likely major acquisition candidates. We are watching to see if related information will be disclosed during the Q2 earnings conference call on the 5th." A game industry insider added, "It is understood that NCSoft is looking at acquisition candidates centered around companies with a game portfolio, excluding MMORPGs or similar genres with inherent competitiveness. Although the possibility of acquiring non-game companies was hinted at, given NCSoft's strong identity as a game developer and the current unfavorable internal and external environment, the acquisition candidate is likely to be a game developer." This is NCSoft's first investment in an external game developer since 2016, when it acquired a 29.10% stake in Highbrow, known for the Dragon Village IP, but sold off its entire stake earlier this year. Unlike other major game companies like Krafton and Kakao Games, which have expanded through external investments and M&As, NCSoft has focused on internal development using its Lineage IP. The last time the company acquired another company was in 2011, when it acquired Ntreev Soft. From the 2000s to the 2010s, NCSoft was relatively active in acquisitions, starting with Destination Games (2001), followed by Phantagram and ArenaNet (2002), J Interactive (2006), Craze Diamond (2008), Zepetto (2009), Nextplay (2010), Hotdog Studio, and Ntreev Soft (2011). However, most of the acquired companies, except ArenaNet and Nextplay, were liquidated after failing to perform. The last M&A deal, the acquisition of Ntreev Soft, involved an investment of KRW 107.5 billion (USD 77.5 million), but the company continued to post losses and was closed earlier this year with a liquidation value of KRW 3.6 billion (USD 2.6 million). Despite past acquisition failures, NCSoft's renewed focus on external equity investments and M&As is seen as a strong determination to improve the company's structure. Kim Taek-jin, who has led NCSoft since its founding, brought in Park Byung-moo, a seasoned strategist from VIG Partners, as co-CEO at the end of last year, accelerating external investments. With the performance of the Lineage series, which accounts for most of the company's revenue, slowing down and new releases like Throne and Liberty (TL) not achieving significant results, there is a strong sense of crisis within and outside the company. It is estimated that NCSoft will post its first quarterly operating loss since Q2 2012 in the second quarter of this year. #NCSoft #LineageSeries #MoonRoverGames #MergersAndAcquisitions #GamingIndustry #FPSGames #ParkByungMoo #KimTaekJin #GlobalExpansion #GamingInvestments
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- Samsung C&T's Order Slump: Oh Se-chul Pushes Forward with SMR and Hydrogen Initiatives
- Samsung C&T's construction division maintained solid performance in the first half of 2024, based on stable project execution, but failed to secure new orders as expected. New orders are seen as a barometer for predicting future performance, making a recovery in the second half of the year critical. Samsung C&T CEO Oh Se-chul is expected to expand the company’s business portfolio, focusing on new ventures such as Small Modular Reactors (SMR) and hydrogen projects to secure future growth opportunities. According to the Overseas Construction Integrated Information Service on the 1st, Samsung C&T secured only three overseas orders worth $272.37 million (approximately KRW 373.4 billion) in the first half of 2024. This represents a 95.2% decrease compared to the value of overseas contracts in the first half of 2023. Samsung C&T had secured $5.66128 billion (approximately KRW 8 trillion) from just two overseas contracts in the first half of 2023. The decline in overseas orders also impacted Samsung C&T's overall order intake. The company secured KRW 6.6 trillion in orders in the first half of 2024, which is only 37% of the KRW 17.9 trillion order target set at the beginning of the year. This is less than half of the KRW 14.372 trillion secured in the first half of the previous year. The lower-than-expected overseas order results are attributed to delays in the anticipated projects related to Saudi Arabia's NEOM City. The Saudi government had initially planned to issue provisional requests for proposals (RFPs) for "The Line" project in January and February 2024 and to begin the contracting process within the first half of the year. However, these plans did not materialize. Issues related to financing and feasibility led to the downsizing of the ambitious project prepared by the Saudi government. According to foreign media outlets such as Bloomberg and the BBC, Saudi officials reportedly reduced the overall scale from the planned 170 kilometers to 2.4 kilometers, which is 1.4% of the original plan. The target to house one million people by 2030 was also lowered to 300,000 people. On June 2 (local time), the Saudi government even took emergency measures to raise cash, such as selling off a stake in Saudi Aramco, the state-owned oil company, for the first time since its IPO in 2019. The stake sale reportedly brought in $12.35 billion (approximately KRW 17 trillion). Nevertheless, Samsung C&T has expressed its determination to achieve its order targets by the end of the year. During a performance briefing held on July 31, Samsung C&T stated, "We will increase exports of various products to the Middle East, including capacity expansions at domestic and overseas high-tech sites, Saudi Metro combined power plants, and UAE power grid construction," and "We will actively pursue our KRW 18 trillion order target through new business orders related to renewable energy in Australia and Guam, and orders in the domestic housing sector." CEO Oh Se-chul is expected to accelerate the expansion of the company’s business portfolio based on new business ventures. Among the new businesses that CEO Oh is pushing, the SMR project is the most prominent. On July 24 (local time), Samsung C&T announced that it had agreed to jointly carry out the basic design of the Romania SMR project with three global companies—Fluor, NuScale, and Sargent & Lundy. The Romania SMR project involves building an SMR with a power generation capacity of 462 MW at the site of a coal power plant in Doicesti. Construction is scheduled to begin in 2026, with commercial operation planned to start in 2030. Previously, in June of last year, Samsung C&T had signed a memorandum of understanding with five companies, including the Romanian Nuclear Power Corporation, NuScale, and Fluor, to cooperate in all processes of the Romania SMR project and to expand business in Europe. Han Byung-hwa, a researcher at Eugene Investment & Securities, stated, "If the final investment decision for the Romania SMR project is confirmed in 2025, Samsung C&T could secure orders worth KRW 5 to 6 trillion." CEO Oh is also focusing on expanding the company's capabilities in the renewable energy sector. Particularly in the hydrogen sector, Samsung C&T is involved in domestic demonstration projects and clean hydrogen production projects related to nuclear power in South Korea, as well as overseas green hydrogen production projects in the Middle East and Australia, preparing for the expanding hydrogen market. In May, Samsung C&T signed an agreement for a domestic clean hydrogen production and utilization demonstration project using nuclear power, followed by the signing of a business agreement with eight companies involved in the demonstration project for the commercialization of nuclear hydrogen in June. Samsung C&T stated, "Through our participation in the demonstration project, we will secure key competitiveness in nuclear hydrogen," adding, "We plan to gain an advantage in the domestic and international nuclear hydrogen business competition." The hydrogen market is expected to fully develop by 2030. However, it is anticipated that some overseas projects will begin serious order activity as early as 2025 or 2026, which could reflect on performance. Samsung C&T stated, "The Salalah project in Oman is currently undergoing pre-front end engineering design (Pre-FEED), and we are also planning to invest in the development of the Helio Green Ammonia project in the UAE," adding, "Through investments, we are securing small-scale hydrogen business rights in Australia, and these projects are expected to materialize into orders next year or the year after." #SamsungC&T #construction #SMR #hydrogen #NEOMCity #SaudiArabia #overseasorders #renewableenergy #MiddleEastprojects #businessstrategy
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- Kim Byoung-hwan Begins Work as Chairman of FSC Without Inauguration, Tackles 'Tmon and Wemakeprice' Crisis
- Kim Byoung-hwan, the new Chairman of the Financial Services Commission (FSC), has started his duties without an inauguration ceremony, immediately addressing the 'Tmon and Wemakeprice' crisis. On the 31st, President Yoon Seok-yeol approved and handed the appointment certificate to Kim Byoung-hwan. The National Assembly’s Political Affairs Committee adopted a personnel hearing report on Kim Byoung-hwan the previous day through bipartisan agreement. With his appointment on the same day, Kim began his duties immediately, forgoing a separate inauguration ceremony, to address the pressing issues such as the massive settlement delay crisis involving Tmon and Wemakeprice. The financial authorities announced a financial support plan worth KRW 560 billion (approximately USD 404 million) for companies affected by the Tmon and Wemakeprice settlement delay. The FSC has also planned to set up an emergency response team in collaboration with the Financial Supervisory Service (FSS), the Ministry of SMEs and Startups, financial institutions, and industry associations. The crisis began when Wemakeprice failed to settle payments for May sales to sellers in early July. The government has estimated the unsettled sales payments by Tmon and Wemakeprice to be around KRW 210 billion (approximately USD 151 million). However, this figure only includes amounts past the settlement date, and the scale of the damage is expected to increase further. #KimByounghwan #FinancialServicesCommission #Tmon #Wemakeprice #financialsupport #emergencyresponse #settlementdelay #SouthKorea #finance #governmentaction
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- Lee Seok-hee Strengthens Cooperation with China's Geely Group, Delays North American Expansion, Focuses on China
- Lee Seok-hee, CEO of SK On, is enhancing cooperation with China’s Zhejiang Geely Holding Group (hereafter Geely Group) to expand the supply of electric vehicle (EV) batteries in China. This move is interpreted as an attempt to improve profitability by expanding the battery business in China, where demand for EV batteries continues to grow, in contrast to the reduced battery orders from U.S. automakers due to the prolonged 'chasm' in the American EV market. As Lee, who has been brought in as a savior to the struggling SK On, aims to turn around the company's fortunes by entering the Chinese market, all eyes are on whether he can achieve a rebound. According to sources within SK On, the collaboration between SK On and Geely Group, which was established at the SK Group level last month, is accelerating. SK On is expected to finalize an additional battery supply contract with Geely Automobile. SK Group previously entered a strategic partnership with Geely Group in June, agreeing to cooperate in areas such as automotive electronics, EV batteries, and green energy. On June 20, shortly after forming the partnership, SK On executives met with Geely Automobile's R&D executives at SK On's Seosan plant in South Chungcheong Province. On June 29, Lee Seok-hee discussed cooperation in the mobility business sector with Geely Group executives who visited South Korea. Last November, SK On signed a contract to supply NCM (Nickel, Cobalt, Manganese) lithium-ion batteries to Geely Group's electric vehicle brand Polestar, starting with the production of 'Polestar 5' in 2025. Geely Group recorded EV sales of 439,000 units by May this year, ranking third in global EV sales. Despite supplying batteries to Hyundai Motor, Ford, Volkswagen, and Daimler, SK On has been criticized for having fewer supply sources compared to its domestic competitors. Through Geely Automobile, Lee aims to expand SK On's business in China, where EV demand is growing, as a strategic move to counter the slowdown in the North American market. According to the China Passenger Car Association (CPCA), the cumulative sales of EVs in China in the first half of the year reached 4.106 million units, up 33.0% from the same period last year, continuing a high growth trend. The China Automotive Battery Innovation Alliance (CABIA) reported that in June, the installation volume of EV batteries in China was 42.8 GWh, an increase of over 30% year-on-year. SK On has established plants in Yancheng 1 and 2, Changzhou, and Huizhou in China, with an annual battery production capacity of 77 GWh. Recently, the utilization rate of the Yancheng plant, which has a production capacity of 60 GWh, has dropped significantly, making it essential to target the Chinese domestic market to increase the utilization rate. While the Chinese EV market is growing, EV sales in North America are declining. According to the Korea Automobile & Mobility Industry Association (KAMA), sales of pure electric vehicles (BEVs) in North America in the first half of the year were 536,382 units, down 0.2% from the same period last year. The decline in North American EV sales has directly impacted SK On's performance in the first half of the year. Hana Securities analyst Yoon Jae-sung noted that SK On is still burdened by fixed costs due to low utilization rates at new plants (Hungary/Yancheng) and the risk of reduced tax credits under the Inflation Reduction Act (IRA) if the U.S. administration changes. SK On is building two EV battery plants in Tennessee and Kentucky through a joint venture with Ford called 'BlueOval SK.' However, due to the downturn in EV demand, SK On has delayed the mass production schedule for the second plant in Kentucky from 2025 to 2026, adjusting the pace of investment in the North American region. The problem is that since SK On was spun off from SK Innovation in October 2021, it has never posted a quarterly operating profit and is depleting cash due to massive capital expenditures. SK Group's merger of profitable companies SK Trading International and SK Enchem with SK On, and the merger of the parent companies SK Innovation and SK E&S to secure financial support, are seen as efforts to save SK On. Therefore, securing new battery demand sources in China and Europe has become urgent for Lee, excluding North America. The background to Lee stepping down as CEO of SK Hynix in 2022 includes speculation that it was due to the continued operating losses and accumulated deficits of U.S. Solidigm, which he led the acquisition of. Thus, turning SK On's deficits around has become Lee's top priority. #SKOn #GeelyGroup #LeeSeokhee #EVbatteries #Chinamarket #NorthAmerica #batteryproduction #electricvehicles #strategicpartnership #marketexpansion
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- Naver Gains Edge in E-commerce Battle with Coupang
- Naver Shopping, which had been slowing down, is now attracting attention as it might revive due to the recent payment settlement crisis involving Tmon and Wemakeprice. Following this crisis, it is anticipated that the domestic e-commerce market will solidify into a two-leader system dominated by Naver Shopping and Coupang. As a result, fierce competition is expected between these two companies to attract consumers who have left Tmon and Wemakeprice. According to a comprehensive investigation by the IT industry and the securities market on the 30th, there are predictions that the online distribution market will reorganize around top companies due to the large-scale payment settlement and refund delays caused by the Tmon-Wemakeprice incident. Currently, Naver Shopping is in a tight race with Coupang for the top spot in the domestic e-commerce market. According to the Fair Trade Commission, as of 2022, Coupang held the largest market share in the domestic online distribution market with 24.5%, followed by Naver at 23.3%. Naver Shopping has maintained a strong growth trajectory before and after the COVID-19 pandemic, but recently it has struggled due to intensifying competition among shopping platforms. Naver Shopping’s transaction volume has been stagnant, falling below the market’s average growth rate in the fourth quarter of last year and again in the first quarter of this year. This contrasts with its competitor Coupang, which has shown nearly 30% growth in transaction volume in the first quarter of this year. The intensifying competition among domestic online distribution companies, combined with the entry of Chinese e-commerce companies like AliExpress and Temu, which are pushing ultra-low prices, has impacted the market. Choi Soo-yeon, CEO of Naver, mentioned during a first-quarter earnings conference call this year, "The domestic market transaction volume increased significantly during the pandemic period," and added, "Since the end of the pandemic, the overall market itself seems to be slowing down." In this context, the domestic online shopping market is expected to undergo another reorganization following the Tmon-Wemakeprice incident. With platform reliability becoming increasingly important, major platforms with strong financial structures and stable profits are expected to benefit. The emphasis on the fact that online distribution platform operators arbitrarily managed funds that should have been paid to sellers also highlights the growing need for a neutral third-party escrow service in financial transactions, which is likely to favor large platforms. Nam Seong-hyun, a researcher at IBK Securities, stated, "Distribution platforms that are unable to establish escrow accounts will likely be avoided by sellers," and predicted that "the market will be reorganized around large distribution platforms that have an advantage in building escrow accounts due to their relatively massive capital power." From Naver Shopping's perspective, there are speculations that this crisis could be an opportunity for a turnaround. If Naver Shopping can attract sellers who have left Tmon and Wemakeprice, it could also bring in users, helping to quickly recover from its stagnant growth rate. In particular, Naver Shopping, unlike Coupang, which focuses on direct purchases, operates as the largest open market operator in Korea, accounting for more than 40% of the open market where vendors sell their products. Given that its business structure is similar to that of Tmon and Wemakeprice, it is more likely to benefit from this crisis compared to Coupang. Lim Hee-seok, a researcher at Mirae Asset Securities, analyzed, "Naver is expected to see a gross merchandise value (GMV) inflow effect of more than KRW 2.5 trillion (US$ 1.8 billion)," and added, "Naver will take 1% of Tmon and Wemakeprice’s combined 3% market share." It is estimated that the annual e-commerce transaction volume of Tmon, Wemakeprice, and Interpark, which are under Qoo10, exceeds KRW 7 trillion (US$ 5.05 billion). According to the Fair Trade Commission, as of 2022, Tmon and Wemakeprice accounted for 5% and 3% of the domestic open market, respectively. If Tmon and Wemakeprice are pushed out of the market, the rankings of Naver and Coupang in the e-commerce industry could shift depending on who takes over the KRW 7 trillion transaction volume. #NaverShopping #Coupang #ecommerce #Tmon #Wemakeprice #marketshare #Koreanecommerce #openmarket #financialcrisis #escrow
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- Daewoo E&C's Baek Jung-wan Seeks Large Overseas Orders After Disappointing First Half
- Baek Jung-wan, CEO of Daewoo Engineering & Construction (Daewoo E&C), experienced somewhat disappointing results in the first half of the year amid a slowdown in the construction industry. Baek is focusing on internal management to make up for the shortfall in the second half. Having been selected as the preferred bidder for the Czech nuclear power plant project as part of Team Korea and with several anticipated projects in the pipeline, such as the Turkmenistan fertilizer plant, Baek is expected to devote himself to concretizing momentum for performance improvement. On the 30th, Daewoo E&C announced its second-quarter business performance, emphasizing, “Despite the challenging construction environment, we are focusing on internal management with an operating profit margin of 4.1% and a net profit margin of 3.5%, which are among the highest in the industry.” The company added, “We have achieved 51% of our 2024 sales plan, and once the already secured projects begin construction, it seems likely that the business plan will be achieved by the end of the year.” For the second quarter of 2024, Daewoo E&C reported consolidated sales of KRW 2.8215 trillion (USD 2.03 billion), an operating profit of KRW 104.8 billion (USD 75.6 million), and a net profit of KRW 96.5 billion (USD 69.6 million). Compared to the same period last year, sales, operating profit, and net profit all decreased, with sales down by 13.8%, operating profit by 51.9%, and net profit by 52.7%. For the first half of 2024, preliminary consolidated results showed sales of KRW 5.3088 trillion (USD 3.83 billion), operating profit of KRW 219.6 billion (USD 158.4 million), and net profit of KRW 188 billion (USD 135.6 million), reflecting decreases of 9.7%, 44.3%, and 37.8%, respectively. The downturn in performance in the first half of 2024 was attributed to continued high interest rates, increased cost ratios, and a decrease in the number of sites. However, considering that the comparable period in 2023 saw record high performance due to major overseas construction projects, it is difficult to view Daewoo E&C’s results as significantly poor. In the second quarter of 2023, Daewoo E&C recorded sales of KRW 3.2714 trillion (USD 2.36 billion), operating profit of KRW 217.7 billion (USD 157 million), and net profit of KRW 204.1 billion (USD 147.2 million), marking increases of 34.0%, 152.0%, and 321.7% respectively compared to the same period in 2022. At the time, Daewoo E&C explained, “Despite the recession in the real estate market and soaring raw material and subcontracting costs, profits increased as revenue from major overseas projects such as the Iraq Al Faw project in the civil engineering sector and the Nigeria LNG Train 7 project in the plant sector began to be reflected.” Compared to annual targets, Daewoo E&C's performance can be seen as on track. The company achieved 51.0% of its annual sales target of KRW 10.4 trillion (USD 7.5 billion) in the first half. Nevertheless, order intake results left something to be desired. First-half orders amounted to KRW 4.4008 trillion (USD 3.17 billion), representing 38.2% of the annual target of KRW 11.5 trillion (USD 8.3 billion). Domestically, Daewoo E&C outperformed its first-half order intake from last year, securing KRW 4.2962 trillion (USD 3.1 billion) compared to KRW 3.5009 trillion (USD 2.5 billion). However, overseas orders fell from KRW 2.3054 trillion (USD 1.66 billion) to KRW 104.6 billion (USD 75.4 million), reducing total order intake by 24.2% compared to the first half of 2023. Baek is expected to seize opportunities to compensate for the disappointing overseas order performance in the second half. In the second half of this year, Daewoo E&C is anticipating orders for the Turkmenistan fertilizer plant project. The Turkmen government is expected to proceed with bids for the 'Kiyanly Urea-Ammonia Fertilizer Plant' and 'Turkmenabat Fertilizer Plant' in Turkmenbashi in the second half of this year. The total project scale is estimated to be around KRW 3 trillion (USD 2.16 billion), although specific amounts have not been disclosed. In addition to the fertilizer plants, Daewoo E&C is exploring participation in the second phase of the 'Arkadak Smart City' project, which aims to construct a smart city for 64,000 residents 30 km southwest of the capital Ashgabat. Daewoo E&C has been intensifying its local business expansion, opening an office in Ashgabat, Turkmenistan, in November 2023, followed by Baek's visit to Turkmenistan in June 2024, where he met with President Serdar Berdimuhamedow. Jung Won-ju, Chairman of Daewoo E&C, also visited Turkmenistan in June 2024, engaging in discussions with major clients to expand local presence and cooperation. Daewoo E&C is also making strides in Vietnam, pursuing orders for the Kien Giang New Town construction project in Thai Binh province. According to local Vietnamese media, the Thai Binh Provincial Planning and Investment Department on the 24th (local time) evaluated Daewoo E&C's local subsidiary, Daewoo E&C Vina, as having the capability to secure the Kien Giang New Town construction project, passing the investment qualification assessment. The Kien Giang New Town project involves the construction of 1402 residential units, including 858 townhouses and 544 villas, along with five apartment buildings and social housing on a site of approximately 960,000 square meters. Upon completion, the city will accommodate 19,000 residents. Daewoo E&C Vina Consortium is known to be the sole bidder. Daewoo E&C also successfully completed the first phase of the Starlake City project, a Korean-style new town on a 2,104,281-square-meter site northwest of Hanoi, Vietnam, with the final second phase scheduled for completion by 2028. Moreover, with Team Korea, Daewoo E&C, which acted as the lead constructor, was selected as the preferred bidder for the Dukovany nuclear power plant project in the Czech Republic on the 17th (local time), securing an opportunity to enter the overseas nuclear power plant market beyond the domestic one. However, the main contract is scheduled to be signed in March 2025, so it will take time before the order is recognized and reflected in actual sales. Securities firms see Daewoo E&C’s second-half order intake as the key to future performance improvement. Song Yoo-rim, a researcher at Hanwha Investment & Securities, stated after Daewoo E&C's earnings announcement, “If large-scale overseas orders are secured in the second half, following the stabilization of housing margins, performance improvement is expected from next year onward,” and added, “Considering the expected housing supply in the second half, cash flow improvement can also be anticipated.” A Daewoo E&C representative said, “In the second half of the year, major projects such as the Turkmenistan fertilizer plant, the Kien Giang New Town development project in Vietnam, the Libya reconstruction project, and the Iraq Al Faw naval base project are expected to materialize, leading to performance improvement by year-end.” The representative added, “Recently, in addition to overseas nuclear power plants, orders in domestic urban development projects have continued. We will focus on securing follow-up orders in overseas hub countries and discovering new markets to exceed this year’s goals.” #DaewooE&C #BaekJungwan #construction #overseasprojects #Turkmenistan #Vietnam #nuclearpower #smartcity #internationalbusiness #2024goals
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- Lee Jay-hyun: "Hallyu is My Strength" - Accelerating Succession with Expanding CJ Content, Food, and Beauty Markets
- Lee Jay-hyun, the chairman of CJ Group, is significantly benefiting from the spread of the Korean Wave (Hallyu) as he expands his business into global markets. This is because the overseas influence of CJ Group’s core businesses, such as food and culture, is becoming more visible. This Hallyu wave is also significant in the context of executing Chairman Lee's management succession plan. The overseas business performance of CJ Group can be a measure to evaluate the management capabilities of Chairman Lee’s children, Lee Kyung-hoo, Head of Brand Strategy at CJ ENM, and Lee Sun-ho, Head of Food Growth Promotion at CJ CheilJedang. On the 29th, CJ Group announced that they are increasing touchpoints with local consumers in Europe and the United States by enhancing marketing linked with Hallyu. In Europe, they are promoting Korean culture and food through the operation of the Korea House in conjunction with the Paris Olympics. The Korea House CJ Group Pavilion showcases CJ Group’s popular products and content (K-food, K-beauty, K-drama, K-movie, K-pop) through videos, images, poster walls, and photo booths, introducing Korea to the world visiting Paris. At the opening dinner of the Korea House on the 25th (local time), chefs from CJ CheilJedang’s ‘Cuisine K’ project, which fosters Korean cuisine chefs, presented fusion Korean dishes to around 150 VIPs. CJ CheilJedang explained that despite preparing 250 servings, which exceeded the expected attendance, all 18 dishes were gone within 30 minutes of the dinner's start, indicating a hot reception. In the United States, CJ ENM’s self-developed boy group ZEROBASEONE (ZB1) seized the opportunity to expand their fandom in the American market during the K-pop super festival ‘KCON LA 2024,’ held in Los Angeles from the 26th to the 28th (local time). The KCON LA 2024 venue also featured promotional booths for K-beauty and K-food alongside the performance stage. Here, CJ Olive Young’s cosmetics and CJ CheilJedang’s Bibigo products were introduced to visitors. ZEROBASEONE contributed to the promotion by sampling Bibigo products and using Olive Young cosmetics, supporting K-beauty and K-food in addition to K-pop. CJ Group believes that the Hallyu wave has not only increased consumer responses at various global events but also enhanced marketing synergy among its affiliates. Many attribute CJ Group’s success in expanding its business overseas to the influence of Hallyu. Exposure through the social media of K-pop stars often helps sales, and the spread of Hallyu culture has significantly reduced the psychological distance for foreign consumers towards Korean products. For Lee Kyung-hoo, Head of Brand Strategy at CJ ENM, and Lee Sun-ho, Head of Food Growth Promotion at CJ CheilJedang, who are considered successors of CJ Group, the group's overseas business performance is directly linked to the evaluation of their management abilities. Since the beginning of this year, Lee Kyung-hoo has also served as Chief Creative Officer (CCO) of the Music Content Division at CJ ENM, expanding her role in the music business. If the main artists achieve success in both domestic and international markets, generating significant added value, her contributions will be acknowledged. Lee Sun-ho has also been active in overseas business at CJ CheilJedang, focusing on globalizing Korean cuisine. Cuisine K is a project conceptualized and planned by Lee Sun-ho. Initially considered a long-term project difficult to directly translate into results, it has gained significant publicity at the Paris Olympics through the fusion Korean dishes presented by Cuisine K chefs. The influence of Hallyu is not only crucial for proving their management capabilities but also holds potential as a vital foundation for CJ Olive Young’s overseas expansion. As CJ Olive Young’s domestic offline cosmetics distribution channel, which occupies a dominant position, approaches saturation, success in overseas markets can be a crucial factor in reaffirming growth potential. A company's growth potential is one of the elements directly tied to its corporate value. Lee Kyung-hoo and Lee Sun-ho hold stakes of 11.04% and 4.21% in CJ Olive Young, respectively. Industry insiders generally believe that these CJ Olive Young shares will be utilized effectively in the process of Chairman Lee Jay-hyun transferring his 42.07% stake in CJ to his children to pass on management rights. This is because the shares could be sold or used as resources for inheritance and gift taxes through CJ Olive Young’s IPO or by selling the shares after listing. There is also some speculation about a scenario where CJ and CJ Olive Young merge without an IPO. In this case, the shares of the merged entity would be distributed to the existing shareholders of CJ and CJ Olive Young based on their corporate values. Regardless of the succession scenario adopted, the higher CJ Olive Young’s corporate value, the more advantageous it will be for the two children’s succession of management rights. #CJGroup #LeeJayhyun #Hallyu #KoreanWave #CJENM #CJCheilJedang #Kpop #Kbeauty #Kfood #BusinessExpansion
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- Samsung's Mid-Range 'Exynos' AP, Park Yong-in Competes with Qualcomm and MediaTek
- Samsung Electronics is expected to intensify its cost-performance competition with Qualcomm, MediaTek, and others as it improves the performance of its mid-range mobile application processor (AP). Park Yong-in, President of the System LSI Business Division at Samsung Electronics' DS (Device Solutions) Division, is reportedly expanding market share in the mid- to low-end AP segment based on accumulated know-how to penetrate the premium AP market. According to semiconductor industry sources on the 29th, performance test results of the 'Exynos 1580' (tentative name), a mid-range AP developed by Samsung Electronics, have been posted on the benchmark website Geekbench. The Exynos 1580 scored 1046 in single-core and 3678 in multi-core, representing a 17% improvement in single-core and a 9% improvement in multi-core performance compared to its predecessor, the Exynos 1480. The Exynos 1580 offers performance similar to that of the Exynos 2100 used in the Galaxy S21 and the Qualcomm Snapdragon 888, and is expected to be featured in the Galaxy A56, set to launch in 2025. According to foreign IT media outlet SamMobile, “The Exynos 1580 is presumed to be manufactured using Samsung Electronics' 4nm process,” and added, “Samsung's mid-range APs had significantly lagged in performance in the past, but recent improvements are evident.” This development suggests that Samsung Electronics has reached a level where it can compete with Qualcomm and MediaTek in the mid-range AP market. According to market research firm Counterpoint Research, Samsung Electronics held a 6% share in the global mobile AP market in the first quarter of 2024, ranking fifth. MediaTek led with a 40% share, followed by Qualcomm with 23%, Apple with 17%, and UNISOC with 9%. Taiwan's MediaTek has dominated the mid- to low-end AP market with its cost-effectiveness. MediaTek's Dimensity 6100 Plus was also featured in Samsung's Galaxy A15, released in January this year. However, Samsung Electronics has been increasing the ratio of Exynos APs in its Galaxy phones while improving the performance of its mid- to low-end APs. The Galaxy A25, launched in January this year, was equipped with the Exynos 1280. The Galaxy A35 and A55, released in March, also featured the Exynos 1480. As Exynos' performance improves, Samsung Electronics is gradually replacing MediaTek APs with its own Exynos series. Since Samsung Electronics holds the top market share in mid- to low-end smartphones, analysts predict that increasing the Exynos adoption rate in the Mobile (MX) division could significantly strengthen Samsung's position in the mid- to low-end AP market. Chinese IT media GizChina reported, “Samsung Electronics will prioritize Exynos in its smartphones for cost efficiency,” but added, “The success of this strategy depends on how much they can narrow the performance gap with competitors' chipsets.” The expansion of Exynos in mid- to low-end Galaxy phones is crucial not only for the System LSI Business Division's performance recovery but also for gaining the know-how to compete in the premium AP market in the future. MediaTek, which entered the smartphone AP market relatively late in 2011, has successfully dominated the mid- to low-end AP market based on price competitiveness and developed the 'Dimensity 9000' at a level similar to Qualcomm's 'Snapdragon 8 Gen 1' in 2021. Currently, MediaTek's high-end APs are regarded as having minimal performance differences compared to Qualcomm's Snapdragon products. Park Yong-in, President of Samsung's System LSI Business Division, is also focusing on strengthening Exynos' competitiveness in a similar manner. This year, Samsung successfully launched the high-end AP, Exynos 2400, signaling the resurgence of Exynos. They have also expanded the dedicated Exynos development team by recruiting semiconductor design personnel from AMD in the U.S. and ARM in the U.K. Chinese IT media GizChina analyzed, “Samsung's in-house chip design has potential benefits beyond cost savings, as it allows for tailoring the chips to meet specific device requirements and functionalities,” and added, “This can lead to more optimized performance and enhanced user experience for the Galaxy.” #Samsung #Exynos #mobileprocessor #semiconductors #Qualcomm #MediaTek #mobileAP #GalaxyA56 #technews #ParkYongin
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- Lee Jae-yong Expands Global Business at Paris Olympics, Seeks Growth Opportunities for Samsung Electronics
- Lee Jae-yong, Chairman of Samsung Electronics, is exploring long-term growth opportunities by meeting with major global business partners and political figures at the 2024 Paris Olympics. On the 28th, Samsung Electronics announced that Chairman Lee departed for Paris on the 24th and has been engaging in various meetings at the Olympic venues. Chairman Lee is holding a series of meetings with key global business leaders, including Peter Wennink, former CEO of ASML. A Samsung Electronics representative stated, "Close exchanges among top executives can lead to strengthened strategic partnerships between companies, becoming a driving force for long-term growth." On the 25th (local time), Chairman Lee attended a luncheon for global business leaders at the Palais de l'Élysée, hosted by French President Emmanuel Macron. About 40 global business leaders were present, including Elon Musk, CEO of Tesla; James Quincey, CEO of Coca-Cola; Neal Mohan, CEO of YouTube; Dave Ricks, CEO of Eli Lilly; and Bernard Arnault, Chairman of LVMH. On the same evening, at the pre-opening dinner for the Paris Olympics, more than 100 IOC members attended, including King Felipe VI of Spain, King Willem-Alexander of the Netherlands, Crown Prince Frederik of Denmark, and Prince Albert II of Monaco. Chairman Lee attended the pre-opening dinner with Hong Ra-hee, former director of the Leeum Samsung Museum of Art, and strengthened friendships with key stakeholders. Relay meetings with leaders from the semiconductor, IT, and automotive industries are also being held sequentially. Samsung Electronics expects that interactions with global political and business figures will strengthen strategic partnerships, serving as a driving force for long-term growth. Chairman Lee is actively utilizing the Olympics as a platform to promote the company's brand value, following the "brand management" policy of former Chairman Lee Kun-hee. Since Samsung began sponsoring the Olympics in 1999, the brand's value has increased nearly 30 times, from $3.1 billion to $91.4 billion in 2023. Samsung Electronics is the only Korean company among the top 15 sponsors of the IOC. #LeeJaeYong #SamsungElectronics #ParisOlympics #GlobalBusiness #StrategicPartnerships #BrandManagement #OlympicSponsorship #SemiconductorIndustry #ITIndustry #AutomotiveIndustry
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- Hanwha Solutions' Solar Struggles: Kim Dong-kwan Plans Rebound with ‘Solar Hub’ Next Year
- Kim Dong-kwan, Vice Chairman and CEO of Hanwha Solutions, who has been struggling with the downturn in the solar business since the second half of last year due to the oversupply of Chinese solar modules, is expected to initiate a significant business rebound starting with the establishment of the 'Solar Hub,' an integrated solar production complex in the U.S., by the end of this year. Although the rebound in solar module prices has not yet materialized, Vice Chairman Kim is determined to become the number one profit-making company in the global solar market, leveraging the performance and price competitiveness from the operation of the Solar Hub next year, starting with the North American market. According to a comprehensive survey of the securities industry and insiders of Hanwha Solutions on the 26th, the company plans to significantly increase the operation rate of the solar module production facilities at the Cartersville Solar Hub plant in the U.S. from next year. The Solar Hub is an integrated solar production complex that Hanwha Solutions is establishing in Cartersville, Georgia, with an investment of KRW 3.2 trillion (USD 2.3 billion). It produces products in four out of the five stages of the solar industry value chain, excluding the raw material polysilicon, from ingots and wafers to cells and modules. The company completed the installation of module production facilities at the Cartersville plant last April. It started operation this year with a goal of 2 GWh production, and plans to produce a total of 3.3 GWh next year. Including the Dalton plant in Georgia, Hanwha Solutions will be able to produce a total of 8.4 GWh of modules next year. The company plans to complete the installation of facilities capable of producing 3 GWh of ingots and wafers at the Cartersville plant within this year to finalize the Solar Hub project. Jeon Yoo-jin, a researcher at Hi Investment & Securities, predicted, "As the Cartersville plant in the U.S. gradually comes into operation, sales volume will increase, and the reflection of the tax credits (AMPC) under the U.S. Inflation Reduction Act (IRA) will expand. Accordingly, Hanwha Solutions' renewable energy division is expected to reduce its operating loss to KRW 41.6 billion (USD 30.0 million) in the third quarter and achieve an operating profit of KRW 53.8 billion (USD 38.8 million) in the fourth quarter." Attention is focused on the timing of the recovery of solar module prices along with the expansion of solar module production. Due to the drop in module prices in the first half of this year, the company recorded poor performance. Hanwha Solutions' renewable energy division achieved an operating profit of KRW 539.8 billion (USD 389.1 million) in 2023, but posted an operating loss of KRW 185.3 billion (USD 133.6 million) in the first quarter of 2024 and an operating loss of KRW 91.8 billion (USD 66.2 million) in the second quarter. Excluding the KRW 146.8 billion (USD 105.8 million) tax credit (AMPC) under the U.S. Inflation Reduction Act in the second quarter, the deficit would have been even larger. Ahead of the expiration of the U.S. tariff waiver on Southeast Asian solar panels in early June, Chinese module companies massively exported through Southeast Asia, resulting in module inventories in the U.S. solar industry exceeding the annual new installation volume. The solar industry expected module prices to rebound following the expiration of the tariff waiver, but module prices actually fell by 17% in July. Lee Dong-wook, a researcher at IBK Investment & Securities, predicted, "With the demand for solar installations at AI data centers in the U.S. rapidly increasing, and the reduction in imports from Southeast Asia, Korea, and India, and the delay and cancellation of new projects, solar module inventories will return to normal levels from 2025, leading to price increases." However, the U.S. presidential election could be a variable. Former President Donald Trump is pledging to supply "cheap energy," which could potentially shrink the renewable energy sector depending on the election outcome. Hanwha Group announced that it has promoted Hong Jeong-kwon, the current head of the strategy office, as the new CEO of the Q-Cells division in charge of Hanwha Solutions' solar sector. The group conducted executive appointments a month earlier than usual to reorganize the leadership structure for the solar business rebound. A Hanwha Solutions representative said, "We are assessing the market trends for solar modules in the U.S. and planning our supply strategy accordingly. There will be no major changes to the grand strategy of targeting the U.S. market under the new leadership." #HanwhaSolutions #SolarHub #KimDongKwan #SolarIndustry #USMarket #RenewableEnergy #SolarModules #BusinessRebound #InflationReductionAct #SolarPanelProduction
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- GS E&C's Q2 Performance Shows Clear Signs of Recovery, Huh Yoon-hong's Leadership Off to a Smooth Start
- GS Engineering & Construction (GS E&C) has demonstrated improved performance in Q2 following a solid Q1, indicating a full recovery trajectory. President Huh Yoon-hong of GS E&C is restructuring the business portfolio while establishing a fourth-generation owner management system, which appears to be off to a promising start. On the 26th, GS E&C announced that its preliminary consolidated sales for Q2 amounted to KRW 3.2972 trillion (US$ 2.38 billion), with an operating profit of KRW 93.7 billion (US$ 67.6 million). Compared to the previous quarter, sales and operating profit increased by 7.4% and 32.9%, respectively. These results align with the consensus (average forecast of securities firms) compiled by financial information company FnGuide, which projected sales of KRW 3.249 trillion (US$ 2.34 billion) and an operating profit of KRW 85.2 billion (US$ 61.4 million). The significance of these Q2 results lies in the fact that they represent the first performance report since President Huh officially took office following the regular shareholders' meeting in March. The improvement in the gross profit margin of the construction and housing division, which accounts for more than 70% of GS E&C's sales, is cited as a major factor in the upward trend. Last year, the gross profit margin of the construction and housing division was -12.5% in Q2, but it has steadily increased, reaching 11.0% in Q2 of this year. Given that the performance in Q1 was better than market expectations, the cumulative performance for the first half of the year also showed a clear improvement compared to the same period last year. For the first half of this year, GS E&C's consolidated sales amounted to KRW 6.3681 trillion (US$ 4.59 billion), with an operating profit of KRW 164.2 billion (US$ 118.4 million). Compared to the first half of last year, sales decreased by 9.1%, but the company managed to recover from an operating loss of KRW 254.9 billion (US$ 183.8 million), turning to profit. New orders for the first half also increased by 46.7% year-on-year, reaching KRW 8.3465 trillion (US$ 6.02 billion), which is considered satisfactory. Overseas orders amounted to KRW 4.919 trillion (US$ 3.55 billion), achieving 90% of the annual target of KRW 5.4 trillion (US$ 3.89 billion). The company successfully secured the KRW 1.6 trillion (US$ 1.15 billion) Sadili Desulfurization Facility Project in Saudi Arabia, matching its annual target in the plant division. Previously, Sun-mi Kim, a researcher at Shinhan Securities, estimated GS E&C's Q2 performance, stating, "The Q2 results are moderate, but the foundation for a performance turnaround is being strengthened. Thanks to solid housing sales performance (8,480 units, 43% of the annual target) and plant orders, the foundation for a performance turnaround has been secured." GS E&C is expected to continue its performance improvement in the second half of the year. The securities industry anticipates that GS E&C will continue its strong order intake amid expectations of an interest rate cut in the second half. Yun-seok Jang, a researcher at Yuanta Securities, said, "With an expected increase in new orders, which determine the direction of mid- to long-term sales and profits, the visibility of profit improvement is increasing. Considering the order pipeline for the second half, such as the Northeast Asia LNG Terminal (KRW 600 billion, US$ 432.5 million) and LG Chem's HVO production plant (KRW 600 billion, US$ 432.5 million), it is likely to exceed the annual plan." He added, "The plant division, which had been in deficit from 2020 to 2023, is expected to improve profitability through sales expansion, and new businesses with relatively high profit margins can also contribute to profit growth." GS E&C's performance in the first half confirmed that the company is overcoming the aftermath of the underground parking lot collapse in Incheon Geomdan in April last year. President Huh Yoon-hong, responsible for GS E&C's trust recovery and mid- to long-term management strategy, is likely relieved. As a result, the management direction pursued by President Huh is expected to gain momentum. In November last year, President Huh, who became the CEO, announced the company's new vision on the company bulletin board on the 12th of this month: "We create a safer and happier future with transparent trust and continuous innovation." President Huh emphasized, "The new vision embodies the company's ultimate reason for existence, which is to create a safer and happier future with transparent trust and continuous innovation. We will become a company that is more trusted and loved by all stakeholders." In line with President Huh's vision, GS E&C announced that it would build a stable business portfolio and strengthen the risk management system. President Huh is expected to focus on △improving construction quality △enhancing the business portfolio △selling GS Inima. GS E&C's sales share of the construction and housing business in the first half of this year was 77.2%, slightly higher than last year's 76.2%. This is considered the highest level among listed construction companies, indicating that the prolonged slump in the housing market could weaken performance stability. Therefore, President Huh is expected to gradually reduce the share of the housing business by focusing on discovering new businesses. Since 2018, President Huh has gained extensive experience in new business fields, including modular housing and water treatment, as he served as head of the New Business Promotion Office and head of the New Business Division. One of President Huh's major tasks is to improve financial soundness by promoting the sale of shares in GS Inima, a water treatment subsidiary. GS E&C's borrowings increased sharply from KRW 4.3856 trillion (US$ 3.16 billion) in 2022 to KRW 5.5116 trillion (US$ 3.97 billion) in the first half of this year, and the debt ratio also rose to 251.5%. The estimated corporate value of GS Inima is around KRW 1.6 trillion (US$ 1.15 billion). The market expects GS E&C to sell 20% of GS Inima's shares and secure about KRW 320 billion (US$ 230.7 million). Hyun-jun Cho, a researcher at IBK Securities, said, "Given that GS E&C has decided to sell GS Inima, it should quickly secure liquidity to alleviate the interest cost, which amounts to KRW 37-38 billion (US$ 26.6-27.4 million) per quarter. The investment proposal (IM) for the sale has been issued, and a visible conclusion is expected within the year." #GSEnC #HuhYoonHong #quarterlyperformance #constructionindustry #newbusiness #financialhealth #housingmarket #corporategovernance #leadership #managementstrategy
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- Samsung's Lee Jae-yong Pays Respects to Vietnamese Leader: "Will Strive Harder for the Development of Both Countries"
- Lee Jae-yong, Chairman of Samsung Electronics, expressed his condolences and commitment to the development of both countries while paying respects to Nguyen Phu Trong, the General Secretary of the Communist Party of Vietnam, who passed away on the 19th. According to Samsung Electronics on the 26th, Chairman Lee visited the incense altar for Nguyen Phu Trong at the Vietnamese Embassy in Jongno-gu, Seoul, and met with Vietnamese Ambassador to Korea, Vu Ho, to offer his condolences. In the guest book, Chairman Lee wrote, "I pray for the soul of the General Secretary along with the people of Vietnam. I will always remember his strong beliefs and leadership and strive harder for the development of Vietnam and Korea." In October 2014, Chairman Lee welcomed the late General Secretary during his visit to Samsung Electronics' Seocho office, where he explained the current status of Samsung's business in Vietnam and discussed ways to strengthen cooperation. General Secretary Nguyen Phu Trong, ranked number one in the Vietnamese power hierarchy, is regarded as the most influential leader since former President Ho Chi Minh and is credited with leading Vietnam's rapid economic growth. He was known for his "bamboo diplomacy," which sought friendly relations with all major countries, including the United States and China, and was known as a moderate politician within Vietnam. Samsung Electronics operates six production subsidiaries, one research institute, and one sales subsidiary in four locations in Vietnam: Hanoi, Ho Chi Minh City, Bac Ninh, and Thai Nguyen. Samsung first entered Vietnam in 1989 by establishing a trading office for Samsung C&T in Hanoi. Currently, the company mainly produces smartphones, network equipment, TVs, displays, and batteries. In three years, Samsung plans to develop Vietnam into the world's largest display production base. Given Samsung's deep ties with Vietnam, Chairman Lee has also interacted extensively with Vietnamese political and business figures. In 2022, on the 30th anniversary of Korea-Vietnam diplomatic relations, Samsung invested $220 million (approximately KRW 283 billion) to establish a large-scale R&D center in Hanoi. Chairman Lee and Prime Minister Pham Minh Chinh personally attended the opening ceremony. Samsung employs about 90,000 people in Vietnam, and Samsung Vietnam's export volume reaches approximately $55.7 billion, significantly contributing to the Vietnamese economy. #LeeJaeYong #Samsung #NguyenPhuTrong #Vietnam #KoreaVietnamRelations #SamsungElectronics #BambooDiplomacy #VietnamEconomy #SamsungVietnam #SamsungR&D
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- CJ Olive Young Targets Overseas Markets with 'Small Brands,' Lee Sun-jung Balances 'Market' and 'Image'
- Lee Sun-jung, CEO of CJ Olive Young, is focusing on strengthening collaboration with promising small and medium-sized enterprises (SMEs) as she expands the business into overseas markets. With the favorable conditions for entering overseas markets thanks to the spread of Korean Wave (Hallyu) culture, it is interpreted that they intend to gain competitiveness abroad by promoting the platform as one that encompasses 'affordable yet high-quality brands.' According to CJ Olive Young on the 25th, they are accelerating their entry into overseas markets by forming an alliance with domestic small beauty brands. The results of the cooperation system built with small beauty brands on Olive Young's cross-border e-commerce platform, 'Olive Young Global Mall,' are noticeable. On Olive Young Global Mall, customers in over 150 countries can order Korean cosmetics. CJ Olive Young is supporting the overseas sales channels of promising small brands through Olive Young Global Mall. Last year, they launched a new K-beauty curation service called ‘Beauty Box,’ which introduced experiential products gathering items from 80 SME brands to global consumers. A representative of CJ Olive Young stated, "Through the cross-border mall and global convention events, we are playing a role in promoting domestic SME brands in overseas markets," and added, "Having grown primarily with SME brands domestically for 25 years, we are striving to achieve results in overseas markets through mutual growth with SMEs." CJ Olive Young is enhancing support for SMEs in various ways. Earlier this year, they announced a mutual growth management plan to invest about KRW 300 billion (US$ 216.4 million) over three years to build a K-beauty industrial ecosystem. This plan includes creating a mutual growth fund to reduce the financing burden on SMEs and expanding investment across the K-beauty ecosystem. The recently launched official corporate website also focuses on functioning as a 'comprehensive information platform' for SMEs. The industry support information category on the corporate website provides an overview of various government support projects that SMEs can apply for. CJ Olive Young is perceived to be seeking ways to fully leverage its platform capabilities, which is its greatest strength, while expanding into overseas markets. One of CJ Olive Young's strengths is its platform capability to gather and showcase numerous excellent brands and products to consumers. In fact, products from SME brands have been receiving significant interest from consumers. According to the sales statistics from the 'Olive Young Sale' conducted last month, all the products that ranked in the top 10 popular items were from SME brands. As of last year, 51% of the brands with annual sales exceeding KRW 10 billion (US$ 7.2 million) on Olive Young were domestic SME brands. Seven out of the top ten brands in sales were also emerging or SME brands. CEO Lee Sun-jung also emphasizes the competitiveness of CJ Olive Young, which has grown alongside SMEs. At the 'K-Beauty Global Competitiveness Enhancement Plan Announcement and Industry Meeting' held at CJ Olive Young headquarters on the 24th, CEO Lee said, "Over 80% of Olive Young's sales come from SME products," and added, "We take great pride in creating a global beauty ecosystem through the relentless challenges of small brand companies and channels like Olive Young meeting and growing together." For CJ Olive Young, the overseas market is a land of opportunities where new growth engines can be prepared. As of the end of last year, CJ Olive Young operated 1,339 stores nationwide, reigning as the absolute leader in the health and beauty market. Domestic brands such as Lotte Shopping's 'LOHBs' and GS Retail's 'Lalavla,' as well as the world's largest select shop Sephora, could not surpass Olive Young's dominance and all withdrew. However, the domestic offline distribution channel is gradually reaching saturation, and relying solely on the performance in the domestic market would inevitably limit future growth. The emphasis on mutual growth management with SMEs is seen as driven by more than just these reasons. There is also a perception that they are conscious of the suspicion that they could abuse their status as a major player in the domestic health and beauty (H&B) market. Last year, CJ Olive Young was investigated by the Fair Trade Commission on suspicion of pressuring suppliers to disrupt normal product supply to competitors by leveraging its market dominance. At the time, there was talk that the penalty could reach up to KRW 600 billion (US$ 432.6 million), but the review process concluded with a fine of KRW 1.896 billion (US$ 1.4 million) without a definitive conclusion on 'market dominance abuse.' However, since the case was not concluded as no charges, CJ Olive Young remains in a position where it needs to stay vigilant to avoid suspicions of market dominance abuse. The continuous emphasis on mutual growth with SMEs appears to be not unrelated to these backgrounds. #CJOliveYoung #KBeauty #SME #LeeSunJung #GlobalMarket #CrossBorderECommerce #MutualGrowth #Hallyu #BeautyBox #OliveYoungGlobalMall
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- Hwang Sung-woo Accelerates Samsung SDS Transformation with Cloud Growth, Eyes Generative AI in Second Half
- Hwang Sung-woo, CEO of Samsung SDS, is enhancing the company's profit strength by focusing on high-value IT services. CEO Hwang is steadily investing in the cloud business, a new growth engine, while concentrating on improving the company's structure. It is expected that with the implementation of generative AI-based revenue in the second half, the company's performance will take another leap forward. On the 25th, Samsung SDS announced its tentative second-quarter consolidated sales of KRW 3.3903 trillion (approximately USD 2.44 billion) and an operating profit of KRW 220.9 billion (approximately USD 159.3 million). This slightly exceeded market expectations, with sales increasing by 2.4% and operating profit by 7.1% compared to the same period last year. The company's business segments are largely divided into IT services and logistics. IT services sales rose by 5.0% year-on-year to KRW 1.5864 trillion, while logistics sales increased by 0.1% to KRW 1.7826 trillion. The cloud business, which CEO Hwang has marked as a medium- to long-term growth driver, has continued its rapid growth, leading to improved performance. Cloud sales increased by 25.1% to KRW 556 billion. The proportion of cloud services in the IT business increased from 29% last year to 35%. Securities industry experts expect this figure to rise to around 40% by the end of the year. The company has historically shown a relatively low operating profit margin compared to peer companies due to the chronically low operating profit margin in the logistics business. Despite similar sales volumes in logistics and IT services, nearly 90% of the company's total operating profit comes from IT services. However, since last year, the proportion of the highly profitable cloud business has increased, improving the company's operating profit margin. The operating profit margin for IT services in the second quarter was 12.5%. This marks the sixth consecutive quarter since Q1 2023 that the IT services operating profit margin has been in double digits, improving by more than one percentage point from 11.2% in the second quarter of last year. CEO Hwang's efforts to transform the company's structure around the cloud business are now reflected in the numbers. Since 2022, Hwang has focused on expanding the cloud business to improve the company's structure. This year, the company is expected to carry out its largest-ever facility investment since going public. The company has higher expectations for its second-half performance. This is because revenue from generative AI-based businesses will be fully reflected from the second half. The company expects generative AI to be the core competitive strength of its cloud business. During the second-quarter earnings conference call, a company representative stated, "The generative AI service 'Fabrics' will be a key element that differentiates us from competitors." In the first half of the year, the company launched generative AI services, Fabrics and Brity Copilot, which were first applied to Samsung Group affiliates and are planned to be expanded to external clients. It is expected that stable profits will be generated primarily from affiliates in the second half. With Samsung Electronics leading the way in recovering performance, the increased spending on IT services, including the AI transition of internal systems, is expected to be favorable. Kim So-hye, a researcher at Hanwha Investment & Securities, said, "The construction volume of Brity Copilot, centered on Samsung affiliates, and the conversion effect of Fabrics will contribute significantly to the quarterly performance. As we move into the second half, the operating rate of high-performance computers (HPC) will increase, and the adoption of AI by affiliates will boost high-margin sales, accelerating the improvement in IT services profitability." Koo Hyung-jun, Vice President and Head of Samsung SDS Cloud Services Division, said during the conference call, "In the second half, we will actively expand the IT services business using more than 200 proven cases and successful order examples in finance and public sectors. Given our lead over competitors in technology and order intake in the generative AI market, we expect to deliver strong results in the second half." #SamsungSDS #HwangSungWoo #CloudBusiness #GenerativeAI #ITServices #BusinessGrowth #FinancialPerformance #TechnologyInvestment #MarketExpectations #AITransition
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- Shin Dong-bin Visits Vietnamese Embassy to Mourn Nguyen Phu Trong
- Shin Dong-bin, Chairman of Lotte Group, recently paid his respects to the late Nguyen Phu Trong, General Secretary of the Communist Party of Vietnam. Lotte Holdings announced on the 25th that Chairman Shin visited the Vietnamese Embassy in Korea to offer his condolences for the death of General Secretary Nguyen Phu Trong, who passed away on the 19th. Local representatives from Lotte Department Store and Lotte Mart in Vietnam paid their respects at the national funeral service in Vietnam. Local businesses in Vietnam expressed their condolences by flying flags at half-mast. Lotte-related logos on their website and social media platforms were displayed in black and white. During the mourning period, promotional events and music broadcasts were suspended, and some entertainment businesses, such as cinemas and KidZania, were closed. #ShinDongBin #LotteGroup #NguyenPhuTrong #Vietnam #condolences #LotteVietnam #mourningperiod #businessclosure #halfmast #blackandwhitebranding
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- Riding the Power Equipment Boom, HD Hyundai Electric's Cho Seok Achieves Growth and Financial Stability
- Cho Seok, CEO of HD Hyundai Electric, is simultaneously achieving growth and strengthening the company's financial health. HD Hyundai Electric has been consistently exceeding market expectations each quarter, benefitting from a global boom in the power equipment industry. Leveraging this ongoing boom, CEO Cho is reducing debt and reinforcing the company's financial stability. As of the 24th, industry insiders predict that HD Hyundai Electric will continue its growth trajectory following its better-than-expected performance in the second quarter of this year. In the second quarter, HD Hyundai Electric recorded consolidated sales of KRW 916.9 billion (US$ 661 million) and an operating profit of KRW 210 billion (US$ 151 million). Compared to the second quarter of the previous year, sales increased by 42.7% and operating profit by 257.1%, maintaining high growth for the second consecutive quarter. Benefitting from a favorable market for power equipment, all product lines, including △power transformers △high-voltage circuit breakers △distribution transformers △marine switchboards, saw balanced growth. By region, North America, which has high profitability, recorded sales of KRW 316.9 billion (US$ 228.6 million), an 88.7% increase year-on-year, while the Middle East saw sales increase by 105.7% to KRW 205.3 billion (US$ 148 million). The company has also steadily secured orders. It set an annual order target of US$ 3.7 billion, achieving 62% of this target with US$ 2.3 billion in orders secured in the first half of the year. As of the end of the first half, the company’s order backlog stood at KRW 525.2 billion (US$ 378.6 million), a 41.1% increase from a year ago. Han-gyeol Lee, an analyst at Kiwoom Securities, commented, "If favorable exchange rate conditions continue in the second half, the strong performance in the North American market is expected to sustain the growth trend," adding that "the demand for transformers is likely to remain strong for an extended period due to increased global investment in renewable energy and the recent demand from AI data centers." CEO Cho, a native of Iksan, North Jeolla Province, graduated from Seoul National University with a degree in International Relations, holds a master’s in Economics from the University of Missouri, and a PhD in Economics from Kyung Hee University. He is a professional bureaucrat, having served in various roles including Director General of the Energy Policy Bureau and Industrial Economy Policy Bureau at the Ministry of Knowledge Economy (now the Ministry of Trade, Industry, and Energy), and Vice Minister. He also served as President of Korea Hydro & Nuclear Power from 2013 to 2016. Since becoming CEO of HD Hyundai Electric in March 2020, Cho has been credited with significantly contributing to the company's growth as a key subsidiary of the HD Hyundai Group, leveraging his extensive knowledge, broad domestic and international networks, and warm personality. Under his leadership, the company’s performance has improved significantly, with sales increasing from KRW 1.8 trillion (US$ 1.3 billion) and an operating profit of KRW 9.7 billion (US$ 7 million) in 2021, to KRW 2.1 trillion (US$ 1.5 billion) in sales and KRW 133 billion (US$ 95.9 million) in operating profit in 2022, and further to KRW 2.7 trillion (US$ 1.9 billion) in sales and KRW 315.2 billion (US$ 227.3 million) in operating profit in 2023. In addition to performance improvement, CEO Cho has also achieved results in improving financial soundness, addressing issues such as the debt ratio. Due to financing needs for working capital and anti-dumping duty payments, net borrowings increased significantly in 2022. In 2023, despite ongoing working capital pressure to secure raw materials and a retroactive payment of KRW 117.3 billion (US$ 84.6 million) due to losing a lawsuit on regular wages, net borrowings on a consolidated basis surged to KRW 514.8 billion (US$ 371.2 million). CEO Cho is significantly reducing borrowings this year by utilizing cash generated from operations. With KRW 70 billion (US$ 50.5 million) raised from corporate bond issuance in April, the company plans to repay debts in the second half, further reducing borrowing levels. As of the end of the second quarter, the company’s consolidated debt ratio stood at 156.8%, and the net borrowings ratio at 4.4%. Compared to the end of the first half of last year, the debt ratio decreased by 73.5 percentage points, and the net borrowings ratio by 88.6 percentage points. A company official stated, "With the inflow of advance payments due to increased orders and sales growth, cash assets have increased, reducing net borrowings." The total borrowings also decreased by 41.1% from KRW 818.5 billion (US$ 590.2 million) in the first half of last year to KRW 482.1 billion (US$ 347.5 million) in the first half of this year, improving the company’s cash generation capability. Net financial expenses in the first half decreased by 19.3% to KRW 11.3 billion (US$ 8.1 million) compared to the same period last year. Hyun-jun Park, an analyst at NICE Credit Rating, commented, "HD Hyundai Electric plans to refinance maturing liquidity bonds and repay most of the borrowings from financial institutions," adding, "Considering the order backlog, cash generation is expected to exceed the funds needed for financial costs and investment execution in the medium term." In response to the expanding power equipment market, the company is expected to achieve further performance improvement upon completing the expansion plan announced last year. The company is investing KRW 117.3 billion (US$ 84.6 million) to build a smart factory for medium- and low-voltage circuit breakers in Cheongju, scheduled for completion in October 2025. Once operational, the smart factory will double the company’s production capacity for medium- and low-voltage circuit breakers. The expansion work at the Alabama plant in the US and the transformer plant in Ulsan will be completed in September and October this year, respectively. HD Hyundai Electric expects an annual revenue increase of KRW 220 billion (US$ 158.6 million) post-expansion. A company official stated, "The funds required for the plant investment, which is scheduled to be completed in the second half of this year and next year, can be fully covered by the increased cash reserves," adding, "With the increase in cash reserves, the trend of reducing borrowings and net borrowings will continue in the second half." #ChoSeok #HDHyundaiElectric #PowerEquipment #FinancialStability #RevenueGrowth #DebtReduction #SmartFactory #RenewableEnergy #GlobalMarket #Investment
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- Samsung Biologics' Performance Soars: John Rim's 'Customer Tailored Strategy' Brings Annual Revenue of KRW 4 Trillion Within Reach
- John Rim, CEO of Samsung Biologics, has achieved a significant milestone this year with the company's tailored customer strategy, signaling the first-ever annual revenue surpassing KRW 4 trillion. As the second half of the year progresses, the operation rate of Plant 4 is expected to increase, and the environment is being set to secure orders for Plant 5. This indicates a high probability of recording record-breaking performance again this year, following last year. On the 24th, Samsung Biologics announced that its consolidated sales for the first half of the year reached KRW 2.1038 trillion (US$ 1.52 billion), with an operating profit of KRW 655.8 billion (US$ 472.9 million), showing a 32.6% increase in sales and a 47.3% increase in operating profit compared to the first half of 2023. Having already surpassed KRW 2 trillion in sales in the first half alone, the company is now within reach of achieving the annual sales target of KRW 4 trillion. Samsung Biologics exceeded KRW 1 trillion in quarterly sales for the first time on a consolidated basis in the third quarter of last year. About a year later, it is now on the brink of opening the era of KRW 4 trillion in annual sales. The substantial backlog of orders is directly reflected in the performance. From January to July this year, Samsung Biologics' cumulative order volume already exceeded KRW 2.5 trillion, achieving 72.54% of last year's record annual cumulative order volume of KRW 3.5009 trillion. With the completion of new plants scheduled to begin at the end of this year, the order volume is expected to increase further in the second half. Specifically, the construction of a dedicated ADC (Antibody-Drug Conjugate) production facility is currently underway, with completion targeted by the end of this year. Additionally, the construction of Plant 5, with a capacity of 180,000 liters, is in full swing, aiming for completion in April next year. Due to the nature of the contract manufacturing organization (CMO) business, contracts for future production volumes are signed with global pharmaceutical companies based on the existing portfolio even before the completion of the plants. This means that orders for the production volume of Plant 5 could be secured in the second half of this year. In the contract manufacturing business, once orders are received, they are immediately reflected in the performance upon production, meaning that massive orders directly impact performance increases. This remarkable achievement is attributed to John Rim's customer-tailored strategy. In his New Year's address, John Rim emphasized the need to enhance customer satisfaction for the next decade. He stated, "The competitiveness of a company is differentiated by customer satisfaction management based on trust with customers, in addition to technology, products, and human resources," and added, "We must have a thoroughly customer-oriented mindset that prioritizes the customer first." Especially this year, he introduced the value of 4E (Excellence) for all employees to pursue together, which also includes customer satisfaction. The success of this strategy is also evident in this year's order performance. Of the seven total orders Samsung Biologics announced this year, six were increased contracts from existing agreements, indicating that the existing customers were satisfied enough to extend their contracts. A Samsung Biologics representative stated, "To proactively respond to rapidly increasing market demand, Plant 5 will be operational by April next year," and added, "Additionally, Plants 6 to 8 at the second Bio Campus will be designed with the same layout as Plant 5, ensuring a production capacity of 1.324 million liters by 2032 to enhance customer satisfaction." #JohnRim #SamsungBiologics #biotechnology #pharmaceutical #CMO #ADC #Plant5 #customerstrategy #recordrevenue #biomanufacturing
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- People Power Party Leadership Stabilized, Han Dong-hoon Solidifies Party Base for Presidential Run
- The results of the People Power Party convention have set the stage for Han Dong-hoon to lead the party without significant internal disruption. Among the five elected Supreme Council members, two are from Han’s faction, making the previously mentioned scenario of the Supreme Council members resigning together to revert to an emergency committee practically impossible. Unlike former leader Lee Jun-seok, Han Dong-hoon is expected to solidify his base within the party without worrying about being ousted by pro-Yoon factions and to pave his way as a future presidential candidate with high support. As of July 24, Han is expected to nominate one appointed Supreme Council member, securing four of the nine-member Supreme Council, including himself, as his allies. In the recent Supreme Council election, pro-Han faction members Jang Dong-hyuk and Jin Jong-oh were elected as senior and youth Supreme Council members, respectively. Non-pro-Han members Kim Jae-won, Kim Min-jun, and In Yo-han were also elected. Looking at the new leadership of the People Power Party, Han Dong-hoon is seen as being in a stable position to manage the party without significant concerns. Especially, Kim Min-jun, who did not support any particular candidate during the convention and maintained a neutral stance, is not strongly affiliated with any faction. Thus, more than half of the elected Supreme Council members are not likely to oppose Han's party management. As a result, the likelihood of the so-called "Kim Ok-gyun Project" becoming a reality has significantly diminished. The Kim Ok-gyun Project refers to a scenario where the pro-Yoon faction ousts Han’s leadership early, akin to the failure of the Gapsinjeong Revolution after just three days. According to the party constitution, if four out of the five elected Supreme Council members resign, the leadership dissolves, and the party transitions to an emergency committee. With at least two elected Supreme Council members being Han’s allies, the scenario of Han stepping down has become virtually impossible. However, Kim Jae-won allied with Na Kyung-won, a candidate for party leader in the recent 7.23 convention, and In Yo-han was the running mate of Won Hee-ryong, actively supported by the pro-Yoon faction. Additionally, floor leader Choo Kyung-ho and policy committee chairman Jeong Jeom-sik, who automatically join the Supreme Council, are considered pro-Yoon, posing potential challenges to Han’s party management. Hence, there is divided opinion within the political sphere about the possibility of the party leader replacing the policy committee chairman, whom he has the authority to appoint. If the policy committee chairman is replaced, pro-Han three-term lawmaker Song Seok-joon or two-term lawmaker Park Jung-ha are considered possible candidates. Nonetheless, there is a prevailing opinion that Han, amidst unresolved conflicts from the convention, will not create a divisive showdown among party factions. A ruling party official stated, "It is unlikely that the party leader will opt for a policy committee chairman replacement, which could disrupt policy continuity, so soon after taking office. Replacing the policy committee chairman could highlight a conflict within the party during the approval process in the general assembly, potentially losing party leadership." As an alternative, some within the party suggest replacing secretary-general Sung Il-jong, who is pro-Yoon, with lawmaker Park Jung-ha. In his acceptance speech, Han Dong-hoon said, "I am sorry that during the convention process, there were moments of excessive heat and conflicts that pained the party members and the public. The People Power Party is a mature liberal democratic party that respects differing opinions and acknowledges differences, and we will strive to overcome challenges democratically." He also emphasized cooperation with the Yoon Seok-yeol administration, aiming to quell internal conflicts within the ruling party that arose during the convention. Han said, "The Yoon Seok-yeol administration is already competent, as seen in strengthening the Korea-US alliance and securing the Czech nuclear power plant project. We will build a healthy and productive relationship between the government and the party." Having received over 60% overwhelming support from party members in the convention, Han is expected to expand his reach and solidify his path toward the next presidential race. Recent polls also show Han Dong-hoon leading within the ruling party as the most suitable future presidential candidate. In a survey released by Jowon C&I on the 24th, asking who is suitable as the next president, Han received 26.9% support, the highest within the ruling party. However, issues like the allegations surrounding First Lady Kim Gun-hee’s luxury handbag gifts and the Che Sang-byeong special prosecutor bill may still cause internal conflicts, potentially affecting Han's presidential aspirations. On the same day, Supreme Council member Kim Jae-won appeared on CBS Radio’s "Kim Hyun-jung’s News Show" and criticized Han, saying, "Han Dong-hoon must specifically clarify what he means by 'the public's perspective' regarding the investigation into First Lady Kim Gun-hee's luxury handbag allegations." Kim also stressed the importance of the floor leader in the Che Sang-byeong special prosecutor bill issue, stating, "The special prosecutor bill issue pertains to the operation of the National Assembly, and when the party leader and the floor leader’s opinions differ, the floor leader’s opinion prevails, with the final decision made in the general assembly, according to the party constitution." From the first day of the new leadership, there are voices pointing out the limitations of Han as an outsider. Han Dong-hoon faces the challenge of overcoming his outsider disadvantage to pave his way to the presidency. Some in the political circle predict that Han might adopt a strategy of seeking internal cohesion by confronting the opposition. On this day, Han met with reporters at the Rotunda Hall of the National Assembly and highlighted that the opposition rejected his proposed 'third-party special prosecutor bill' related to the Che Sang-byeong death case investigation. The third-party special prosecutor bill suggests appointing a special prosecutor recommended by a third party, such as the Chief Justice, rather than one recommended by the opposition, for investigating allegations of interference in the Che Sang-byeong death case investigation. Han said, "The People Power Party proposed the third-party special prosecutor bill to dispel any misunderstanding that we are reluctant to uncover the truth, but the Democratic Party rejected it," emphasizing, "Are they trying to use the special prosecutor issue for political purposes?" The public opinion poll mentioned in the article was conducted by Jowon C&I at the request of Straight News from July 20 to 22, surveying 4,029 men and women aged 18 and older nationwide. It used automatic response (ARS) methods utilizing wireless phone numbers (RDD) with a sampling error of ±1.5 percentage points at a 95% confidence level. The overall response rate was 2.6%. Gender, age, and regional weights (rim weighting) based on the Ministry of the Interior and Safety's resident registration data as of the end of June 2024 were applied. For more detailed information, refer to the website of the National Election Survey Deliberation Commission. #PeoplePowerParty #HanDonghoon #PartyLeadership #SouthKoreaPolitics #YoonSeokyeol #SupremeCouncil #PoliticalStrategy #KoreanElections #PresidentialCandidate #PoliticalConflict
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- K-Battery Investment Pause Amid Prolonged Chasm, Focus on Samsung SDI Choi Yoon-ho's 'Expansion' Declaration
- As global electric vehicle (EV) and battery manufacturers are slowing down their investments in EV joint venture plants due to a demand slump, attention is focused on whether Samsung SDI's CEO Choi Yoon-ho, who announced aggressive overseas investments this year, will proceed with the planned investments. CEO Choi declared early this year his intention to actively invest overseas and is pushing to expand EV battery production facilities in the United States. However, there are concerns that the prolonged slowdown in the EV market (a "chasm") may become a variable. According to industry sources on the 23rd, there are increasing concerns about a decline in EV shipments from Samsung SDI's major EV battery customers in the second half of the year. Looking at the revenue composition of Samsung SDI’s EV batteries, approximately 70-80% of the sales come from premium EV models such as BMW, Audi, and Rivian. Recently, with the cessation of subsidy support in major European countries, there has been a decline in sales of BMW and Audi. Previously, at this year's regular shareholders' meeting, CEO Choi predicted, "The EV market is expected to rebound from as early as 2025 and show long-term growth," and announced plans for aggressive investments, stating, "We will expand joint ventures and prepare for standalone plants." According to securities firms, Samsung SDI’s capital expenditures (CAPEX) for this year are expected to increase by about 50% from the previous year to a maximum of KRW 6.5 trillion (US$ 4.7 billion), marking the highest investment amount in its history. However, it appears that Samsung SDI's investment plans may inevitably be affected by the decline in customer sales. Currently, Samsung SDI is constructing a production plant with an annual capacity of 30GWh in the US through a joint venture with GM, aiming for completion in 2026. Additionally, the US joint venture with Stellantis is scheduled to operate a plant with an annual capacity of 33GWh in the first quarter of 2025. Furthermore, they are building a second plant with an investment of KRW 2.6 trillion (US$ 1.87 billion), targeting an annual capacity of 34GWh by 2027. However, GM, a battery joint venture partner, has lowered its 2024 annual production target from the existing 200,000-300,000 units to 200,000-250,000 units. Next year's EV production volume is also expected to be adjusted downward. Already, competitor LG Energy Solution has temporarily halted the construction of the third plant of Ultium Cells, a battery joint venture with GM, in response to the prolonged EV chasm. A Samsung SDI official said, "The construction plans for the production plant of the joint venture between Samsung SDI and GM will proceed as scheduled," adding, "The same applies to the production plant of the joint venture with Stellantis." Some observers speculate that since Samsung SDI has not significantly increased its investment scale compared to other domestic battery manufacturers, it will maintain its planned investment stance. Once the three production facilities currently under construction in North America are completed, Samsung SDI will have an annual production capacity of 97GWh in North America, sufficient to produce about 1.5 million EVs. Looking at Samsung SDI’s facility investment over the past three years, the amounts were KRW 2.18 trillion in 2021, KRW 2.52 trillion in 2022, and KRW 4.34 trillion in 2023. Although the investment amount has increased annually, considering EBITDA before corporate tax, interest expenses, and depreciation, they maintained a conservative investment stance until last year. Meanwhile, SK On is pursuing expansion through the joint venture 'Blue Oval SK' with Ford, aiming to achieve an annual production capacity of 175GWh by the end of 2025. LG Energy Solution, once all its North American investments are completed, will have an annual production capacity of approximately 323GWh. An industry insider said, "While competitors have been leading in facility investments, Samsung SDI has focused on R&D investments," adding, "It seems highly likely that they will push forward with the planned facility expansions despite the prolonged chasm." #SamsungSDI #ChoiYoonHo #EVBattery #Investment #EVMarket #BatteryManufacturing #GM #Stellantis #BMW #Audi #EVSalesDecline
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- Chaos in KFA, Chung Mong-gyu Silent: Where is Hyundai Family's 'Love for Sports'?
- The opening ceremony of the world's largest sporting event, the "2024 Paris Olympics," is just four days away. The South Korean team, which will compete in the Paris Olympics that will last more than two weeks, is arriving at the local site, determined and ready. However, there is great disappointment that there is no place for Korean soccer in the Paris Olympics. Moreover, the current atmosphere surrounding Korean soccer and the Korea Football Association (KFA), which represents soccer, is the exact opposite of the upcoming festive event. It is not only because South Korean soccer failed to qualify for the Olympic finals for the first time in 40 years. There has been continuous controversy regarding the appointment of the national team coach, which took over five months. On the 22nd, the KFA posted two articles on its website: "Explaining the National Team Coach Appointment Process" and "Q&A Regarding the National Team Coach Appointment Process." The KFA provided an unusually detailed introduction of the process from February 16, when former coach Jurgen Klinsmann was dismissed, to July 13, when new coach Hong Myung-bo was officially appointed as the national team coach. They also added explanations about some controversial questions. The KFA is facing heavy criticism for the new coach appointment process. The main issue is not merely appointing a domestic coach when there were high expectations for advanced soccer but rather the lack of transparency and fairness in the process. Park Joo-ho, a member of the Power Reinforcement Committee, discussed procedural issues on his YouTube channel, and many former national team players, including Park Ji-sung, technical director of Jeonbuk Hyundai Motors, also criticized the KFA's handling of the situation. The political arena is also targeting the KFA, and the Ministry of Culture, Sports and Tourism has already begun an audit of the Korean Sports Association. The KFA's explanation came hurriedly after the audit started, and whether the procedures were appropriate will be revealed through the upcoming audit. Trust in the KFA is hitting rock bottom due to the continuous controversies. However, Chung Mong-gyu, the president of the KFA, remains silent. President Chung has consistently been criticized for operating the association arbitrarily since becoming president of the KFA in 2013. The recurring controversy over the appointment of the national team coach is a prime example. In a statement released on the 12th, the Korean Football Coaches Association pointed out, "President Chung has continuously changed the national team coach appointment system since taking office," and "the transition from the Technical Committee, National Team Coach Appointment Committee, and Power Reinforcement Committee back to the Technical Committee shows how abnormally he has been running the association." Recently, the KFA and President Chung's "missteps" have become more frequent. Following major incidents like last year's match-fixing pardon and the appointment process of former coach Jurgen Klinsmann, there was controversy over disputes among key national team players. President Chung was accused of exacerbating the situation and failing to protect the players. After Park Joo-ho's revelations, he immediately mentioned legal action, inviting further criticism. When the match-fixing pardon became controversial, President Chung retracted it and apologized after dismissing former coach Klinsmann amidst growing dissatisfaction. Although he was criticized for reading a statement without a Q&A session and dismissing the Klinsmann appointment controversy as a "misunderstanding," he at least showed up in front of the fans. However, in the current coach appointment controversy, he has not communicated as the head of the KFA, further escalating the issue. President Chung's failure in the FIFA Executive Committee elections in 2015 and the FIFA Council elections in 2019 and last year has been seen as a decline in South Korea's soccer diplomacy over the past decade. He managed to secure positions in the 2017 FIFA Council election and this year's AFC East Asia Executive Committee election, where the competition was 1:1. Amidst the many noises surrounding the KFA, Chung should reflect on the dignity shown by the Beom Hyundai family, known for their love of sports. The contribution of the Hyundai name to the development of South Korean sports dates back to the late honorary chairman of Hyundai Group, Chung Ju-yung. Honorary Chairman Chung is credited with significant contributions to both the business and sports sectors, having played a major role in the 1988 Seoul Olympics as the chairman of the civilian promotion committee. From 1982 to 1984, he served as the president of the Korea Sports Council, preparing for the Olympics and introducing management concepts to sports, leading various Hyundai family members and group professional managers to head multiple sports organizations. Chung Mong-joon, chairman of the Asan Foundation, and the son of Honorary Chairman Chung Ju-yung, is another key figure in the Hyundai family's involvement in sports organizations. Chung Mong-joon served as the president of the KFA from 1993 to 2008, overseeing the successful hosting of the 2002 Korea-Japan World Cup and the historic semifinals achievement, marking the highest point in South Korean soccer history. Chung Mong-joon is credited with appointing coach Hiddink and supporting him amid dismissal rumors, leading to the success of the Korea-Japan World Cup. Additionally, Chung Mong-joon served as FIFA vice president from 1994 to 2010 and held various other positions, marking the peak of South Korea's soccer diplomacy. Though there has been criticism that the KFA has been under the influence of the Hyundai family for over 30 years, the current controversies involving President Chung have highlighted the contributions of his predecessor, Chung Mong-joon, to the development of South Korean soccer. Among the current owner-managers of the Hyundai family, Hyundai Motor Group Chairman Chung Eui-sun, who also heads the Korea Archery Association, is praised for his transparent management of the association. The Korea Archery Association was established when Honorary Chairman Chung Ju-yung separated archery and traditional archery as the president of the Korea Sports Council. Starting with the first chairman Chung Ju-yung in 1983, Hyundai Motor Group Honorary Chairman Chung Mong-koo and other professional managers of Hyundai affiliates have headed the Korea Archery Association, with Chung Eui-sun leading since 2005. Chung Eui-sun is recognized for making the Korea Archery Association the most highly regarded sports organization in South Korea through transparent and fair national team selection. Additionally, Chung Mong-won, chairman of HL Group, served as the president of the Korea Ice Hockey Association from 2013 for eight years and was inducted into the International Ice Hockey Federation (IIHF) Hall of Fame, the first in South Korea. Chung Mong-gyu has grown HDC Group into the fourth-largest conglomerate within the Hyundai family, following Hyundai Motor Group, HD Hyundai Group, and Hyundai Department Store Group, ranking 31st in the domestic business hierarchy. Considering the impact of the Hyundai name on South Korean sports and Chung Mong-gyu's position within the Hyundai family, he has a responsibility to demonstrate dignity amidst the recent series of controversies. During the consecutive collapse accidents at HDC Hyundai Development Company, Chung Mong-gyu held immediate press conferences to apologize to the public and stepped down from his position as chairman of HDC Hyundai Development Company after the second accident. Despite the controversies, Chung Mong-gyu showed leadership by taking responsibility to some extent. "The KFA, as the only organization that oversees soccer administration in South Korea, was established to widely promote soccer among the public, enhance public health, nurture excellent players and coaches, and enhance national prestige through soccer," reads the introduction on the KFA website. Will we hear a voice of introspection from President Chung, the most important figure in South Korean soccer? #2024ParisOlympics #KoreanSoccer #KFA #ChungMonggyu #HongMyungbo #SoccerControversy #SouthKorea #OlympicSoccer #SportsAdministration #HyundaiFamily
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- Kim Beom-soo, Kakao Founder, Detained for SM Entertainment Market Manipulation
- Kim Beom-soo, the founder of Kakao and Chairman of the Kakao Management Innovation Committee, has been detained. In the early morning of the 23rd, Judge Han Jeong-seok of the Seoul Southern District Court issued an arrest warrant for Chairman Kim, who is accused of violating the Capital Markets Act, citing concerns over evidence destruction and flight risk. This decision followed a pre-trial detention hearing that lasted around four hours the previous day. Kakao is under suspicion of obstructing competitor HYBE's public tender offer during the acquisition process of SM Entertainment in February last year. The allegation is that they manipulated the market to inflate SM Entertainment's stock price above the tender offer price of KRW 120,000. Prosecutors believe that Chairman Kim, as the top decision-maker of the group, approved the market manipulation process. After the Financial Supervisory Service summoned Chairman Kim in November last year for questioning over the market manipulation allegations involving SM Entertainment, they referred the case to the prosecution. After supplementary investigations, the prosecution summoned Chairman Kim for the first time on the 9th, eight months later. Meanwhile, Chairman Kim stated at the Kakao Interim Group Council meeting on the 18th, "I cannot provide detailed explanations as the matter is ongoing, but the current charges are not true," and added, "I have never ordered or condoned any illegal activities, so I believe the truth will eventually come out." #KimBeomsoo #Kakao #SMEntertainment #HYBE #CapitalMarketsAct #SeoulSouthernDistrictCourt #FinancialSupervisoryService #marketmanipulation #arrest #prosecution
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- Hana Bank Leads Retirement Pension Growth for 6 Quarters, Lee Seung-lyul Aims for Dominance
- Lee Seung-lyul, CEO of Hana Bank, has maintained the highest growth rate in retirement pension reserves among the four major commercial banks for six consecutive quarters since the first quarter of last year through the second quarter of this year. With two quarters remaining for Lee to maintain the top position in retirement pension reserves for his two-year term, the ‘Retirement Pension In-kind Transfer’ system, which will be implemented in October, is expected to be a variable. An analysis of the Financial Supervisory Service's retirement pension comparison disclosure on the 22nd showed that Hana Bank has recorded the fastest growth rate in retirement pension reserves among the four major banks since last year. From the first quarter of 2023 to the second quarter of 2024, Hana Bank ranked first in growth rate compared to the previous quarter among the four major commercial banks for six consecutive quarters. During the same period, the year-end growth rate was also the highest for six consecutive quarters. Since Lee Seung-lyul took office, he has never relinquished the top position. Hana Bank's retirement pension reserves reached KRW 36.1297 trillion (US$ 26.1 billion) in the second quarter, an increase of 32.5% compared to the end of 2022. This is nearly 10 percentage points higher than the second-highest growth rate recorded by KB Kookmin Bank (23.6%) during the same period. Considering the fierce competition in the retirement pension market among commercial banks, Hana Bank's growth is considered a significant achievement. Commercial banks are paying attention to retirement pensions from the perspective of expanding non-interest income, as they can generate fee income, which falls under non-interest income, in the retirement pension business. Retirement pensions are products that must be paid throughout the employment period. The current market size, nearing KRW 400 trillion (US$ 288.4 billion), is expected to grow even larger, making it an attractive point for commercial banks. As of the end of the second quarter of 2024, the total retirement pension reserves amounted to KRW 394.2832 trillion (US$ 284.3 billion). Of this, the four major commercial banks' retirement pension reserves accounted for KRW 141.9338 trillion (US$ 102.3 billion), or 35.9%. Thanks to this increase in reserves, Hana Bank is also narrowing the gap with Shinhan Bank, which has the largest reserve among commercial banks. The gap in reserves between the two banks decreased from KRW 7.7538 trillion (US$ 5.6 billion) at the end of 2022 to KRW 6.0734 trillion (US$ 4.4 billion) in the second quarter of 2024. The strengthening of sales power is cited as the background for Hana Bank's rapid increase in retirement pension reserves compared to other commercial banks. Since taking office, Lee has continuously reorganized the sales organization, focusing on efficiency and competitiveness. In the 2024 regular organizational restructuring, Hana Bank established two new sales headquarters within the central sales group—Gangnam Seocho Sales Headquarters and Jongno Sales Headquarters—to efficiently support field-oriented sales and strengthen the responsibility management of each sales headquarters. In the 2023 organizational restructuring, Hana Bank newly divided the existing sales groups into Central Sales Group, Yeongnam Sales Group, and Honam Sales Group, and established a total of four regional sales organization systems, including the Chungcheong Sales Group. New sales headquarters were created under each regional sales group. A new organization specializing in the retirement pension business was also established. Lee elevated the pension business headquarters, which was part of the asset management group, to the pension business unit, simultaneously separating it into a specialized independent organization to support the advancement of the retirement pension business this year. High returns are also analyzed as a major factor leading Hana Bank's retirement pension advances. From the second quarter of 2023 to the second quarter of 2024, Hana Bank has been recording the highest returns in defined contribution (DC) retirement pensions among commercial banks for five consecutive quarters. In the first quarter of 2024, it also recorded the highest return among commercial banks in individual retirement pensions (IRP). Lee Seung-lyul took office in January last year, and his first term ends at the end of this year. From Lee's perspective, if the current performance continues in the second half of the year, he could set the challenging record of maintaining the highest growth rate in retirement pension reserves among the four major banks for every quarter of his two-year term. However, the retirement pension in-kind transfer system, which is scheduled to be implemented in October, is considered a variable. The in-kind transfer system allows retirement pension subscribers to transfer financial products within their retirement pension accounts to another financial institution without liquidating them into cash. This means that transferring financial institutions will become easier for retirement pension subscribers, which could be a double-edged sword for financial institutions, providing opportunities to attract customers while increasing the possibility of customer departure. Lee is expected to respond to the retirement pension in-kind transfer system by launching aggressive sales with the competitiveness of the sales organization in the second half of the year. Lee Seung-lyul, who served as the head of Hana Bank's Business Planning Department, CFO of Hana Financial Group, and Vice President of Hana Bank's Business Planning Group and Social Value Division, is regarded as a representative financial expert within the group. Since taking office, he has actively pursued field-oriented management and strengthened sales, and is considered the vanguard of Hana Financial Group Chairman Ham Young-joo's 'sales-first' policy. Lee's strategy to strengthen the retirement pension business is also recognized by the government. In June, Lee attended the ‘Retirement Pension Performance Review and Best Practices Dissemination Meeting’ hosted by the Ministry of Employment and Labor as the representative of the banking sector. At the time, Lee said, "Hana Bank will take the lead in helping the domestic retirement pension industry take a leap forward," and added, "We will faithfully fulfill our role as an excellent retirement pension provider by offering more sophisticated and diverse products and services to retirement pension subscribers and companies that adopt the system." #LeeSeunglyul #HanaBank #retirementpension #financialgrowth #commercialbanks #noninterestincome #pensionmarket #bankcompetition #organizationalrestructuring #financialexpert
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- Sudden Leadership Change at DL E&C, Lee Hae-wook Needs 'Key Man' in Construction
- DL E&C is undergoing its second leadership change this year. The replacements were not due to regular appointments, and with CEO Seo Young-jae stepping down just two months after taking office, it seems likely that the company will face significant turbulence. Lee Hae-wook, Chairman of DL Group, reshuffled the construction business earlier this year. Park Sang-shin, CEO of DL Construction and head of the Housing Business Division at DL E&C, has been appointed as the new CEO of DL E&C, underscoring the importance of his role. Park is expected to stabilize the organization and vigorously pursue the housing business, although there are concerns that this might diminish the impetus for new business development. Chairman Lee has been investing heavily in "high-value products" and improving the structure of the group's petrochemical business, suggesting that continuous change and innovation will be required in the construction sector as well. According to DL E&C, Park Sang-shin, who is currently leading the Housing Business Division, will be appointed as an executive director with a three-year term at an extraordinary shareholders' meeting on August 14 and will be officially appointed CEO through the board of directors. Park will take over the management of DL E&C following the resignation of CEO Seo Young-jae. Thus, DL E&C will have changed its CEO twice in just over four months. Following the resignation of former CEO Ma Chang-min in late March, CEO Seo was appointed on May 10 and has now resigned. The recent successive changes in CEOs at DL E&C did not occur during the regular personnel season, which is noteworthy. Amid the economic crisis affecting the entire country, it has become common for companies to change their CEOs outside the typical end-of-year personnel season. However, it is rare in the construction industry, and even across all industries, for a company to change its CEO twice in such a short period, as DL E&C has done. Both former CEO Ma and CEO Seo officially stated that they resigned voluntarily. It is said that these changes were not influenced by Chairman Lee. However, within the construction industry, there is speculation that Ma's resignation was effectively a dismissal due to the overall restructuring of the business division and the frequent major accidents during his term. Moreover, the sudden resignation of CEO Seo, just two months into his tenure, has led to much speculation about the reasons behind it. There is also heightened interest in the recent frequent changes in the CEO position at DL Construction, a subsidiary of DL E&C. Looking at the changes in the CEOs at DL Construction, former CEO Kwak Soo-yoon was appointed in November 2022, and former CEO Park Yoo-shin took over in December of the same year. Kwak returned to the position in May of this year, and Park Sang-shin was officially appointed in July. Thus, the CEO has changed three times in about 17 months. As a result, adjustments to the future management strategies of DL E&C and DL Construction seem inevitable. Particularly significant changes are expected for DL E&C, which has been focusing on the plant business and nurturing new growth engines. Chairman Lee Hae-wook faces the challenge of stabilizing the group's construction business amid the confusion caused by the personnel changes. In the petrochemical business, another core pillar of the group, Chairman Lee has been finding breakthroughs in the industry downturn through strong support for "high-value products." Many believe that decisive action is also needed in the construction business. DL Chemical has built a business structure centered on high-value products with group-level support, including the acquisition of Cariflex, the establishment of Drex Polymer, and the acquisition of Kraton since 2020. It quickly recovered from an operating loss of KRW 36.9 billion last year and achieved KRW 117.8 billion in sales in the first quarter of this year, a 540% increase from the previous year. Given that Park Sang-shin has been entrusted with leading DL E&C, it is anticipated that Chairman Lee's focus will first be on stabilizing the housing business. Park joined Samho in 1985 and, except for a period at Jinheung Construction from 2021 to early this year, has worked for DL Group's construction affiliates. Most of his career has been in housing-related roles. DL E&C is struggling to secure profitability in the domestic housing business due to rising raw material costs. While this is a common issue across the construction industry, DL E&C's operating profit decline is relatively more significant compared to other construction companies. The cost-to-revenue ratio for DL E&C's housing division rose from 78.8% in 2021 to 91.9% last year and reached 93.0% in the first quarter of this year. Consequently, DL E&C's consolidated operating profit, which was close to KRW 1 trillion (KRW 957.3 billion), dropped to KRW 330.7 billion last year, with the operating profit margin falling sharply from 12.5% to 4.2%. From August 2017 to August 2020, Park improved the operating profit margin of the housing division every year while serving as the head of the Housing Business Division at DL E&C (formerly Daelim Industrial's Construction Division). He also served as the CEO of Daelim Industrial's Construction Division from March 2018 to October 2019, demonstrating the leadership needed by DL E&C today. Regarding Park's appointment, DL Construction previously stated on July 1, "He has rich experience in the housing business, including the success of large housing projects, know-how in management, and a deep understanding of DL Group's construction division. He was appointed CEO to stabilize the organization and maximize synergy with the parent company." However, there is a growing concern about how to secure future growth engines. DL E&C emphasized keywords such as "change" and "innovation" by bringing in Seo Young-jae, who came from LG Electronics. They aimed to expand new businesses and drive management innovation that did not exist in the construction industry, using his strengths as a strategist who could lead rapid changes. However, they had to revise these core strategies within two months. When former CEO Ma was appointed at the end of 2019, the strategy was also to focus on digital transformation and discovering new businesses and growth engines based on his capabilities as a global marketing strategy planning expert. Ma also came from LG Electronics. DL E&C has achieved meaningful results since its launch by promoting new businesses in the small modular reactor (SMR) and carbon capture, utilization, and storage (CCUS) sectors. In the SMR business, they formed a strategic partnership with X-energy, a global leader, and established a subsidiary, Carbonco, to strengthen their expertise in the CCUS field. Considering that both the SMR and CCUS businesses are long-term projects, the group's new business strategy is expected to remain valid. In March of this year, Chairman Lee Hae-wook completed the restructuring of the construction business by placing DL Construction as a wholly owned subsidiary under DL E&C, unifying the construction business structure for the first time in 40 years since Samho was incorporated into DL Group. This included the merger of Samho and Korea Development Corporation to launch DL Construction and subsequent management efficiency work. With Park now responsible for both DL E&C and DL Construction, there is attention on whether the merger between DL E&C and DL Construction, which was discussed during the construction business restructuring, will be reignited. There were market rumors about a merger between DL E&C and DL Construction due to the simplified procedures after DL E&C incorporated DL Construction as a wholly owned subsidiary. The recent continuous restructuring of the housing business at DL E&C has also led to speculation that it is in preparation for a future merger. Merging the two companies could help DL E&C, which fell to sixth place last year after maintaining the third spot for most of the late 2010s, regain its position in the construction capability evaluation rankings. However, DL Group has drawn a line against the merger rumors, stating that the two companies have distinct main areas even within the construction industry. They believe that seeking synergy in a parent-subsidiary structure is more efficient. #DLGroup #DLEnC #DLConstruction #leadershipchange #housingbusiness #constructionindustry #LeeHaeWook #ParkSangShin #businessstrategy #newgrowth
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- Chey Tae-won: "KRW 20 Trillion to Build a Semiconductor Plant, Tax Benefits Aren't Enough"
- Chey Tae-won, Chairman of SK Group and the Korea Chamber of Commerce and Industry (KCCI), emphasized the need for government support beyond tax benefits to foster the domestic semiconductor industry. During a press conference at the KCCI Jeju Forum held at the Shilla Hotel Jeju on the 19th, Chairman Chey stated, "Building an advanced semiconductor fab (manufacturing plant) costs around KRW 20 trillion (USD 14.4 billion)," and added, "Tax benefits alone are not sufficient to handle the current situation." He explained that the demand for improved semiconductor performance in the market necessitates continuous investment in equipment even after spending KRW 20 trillion to construct a plant. Chey noted that although SK Hynix is effectively monopolizing the supply of High Bandwidth Memory (HBM) for GPUs to Nvidia, resulting in increased sales, the costs of equipment investment are also significantly rising. "The problem is that no matter how much we earn, we have to invest more than what we earn," he lamented. "The government needs to do something because it's very difficult to handle it alone." Referring to semiconductor facility investment support in major countries, Chey remarked, "They provide this support so that companies will build fabs or produce in their countries. This is why the U.S. and Japan are seeing many fabs being constructed," adding, "I believe we have no choice but to follow this trend in our country as well." #CheyTaeWon #KoreaChamberOfCommerce #SKGroup #SemiconductorIndustry #GovernmentSupport #TaxBenefits #Investment #SemiconductorFab #SKHynix #Nvidia #HBM #GlobalCompetition
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- Suh Jung-hak Secures KRW 100 Billion for IBK Securities, Strengthens SME Focus for Growth
- Suh Jung-hak, CEO of IBK Securities, solidifies the company's position as a financial investment company specialized in SMEs through successful capital raising, aiming for broader growth. Suh Jung-hak has expressed ambitions not only for a performance rebound but also for leading IPOs on the KOSPI market. According to the financial investment industry on the 21st, IBK Securities successfully completed the issuance of hybrid securities worth KRW 100 billion on the 11th. This marks the first time IBK Securities has issued hybrid securities since its inception. Unlike regular corporate bonds, hybrid securities are recognized as equity rather than debt in accounting, thus improving the financial structure. As a result, IBK Securities' Net Capital Ratio (NCR), currently at 479%, is expected to rise to 550%. Suh is expected to leverage this increased capital capacity to provide more active financial support to SMEs. In a press release announcing the successful issuance of hybrid securities, Suh stated, "This issuance will be the cornerstone for our leap to become a premier SME-specialized company." IBK Securities anticipates that the issuance of hybrid securities will further accelerate its direct capital investments and discovery of new growth engines for SMEs. Last month, IBK Securities was selected as a fifth-term SME-specialized financial investment company along with SK Securities, Eugene Investment & Securities, Korea Asset Investment Securities, DS Investment Securities, Hanwha Investment & Securities, DB Financial Investment, and BNK Investment & Securities. The SME-specialized financial investment company system was introduced by the Financial Services Commission in 2016 to foster small and mid-sized securities firms specializing in financial services for SMEs and venture companies. The Financial Services Commission selects these firms every two years based on external evaluations considering their financial support performance. Since the system's introduction, IBK Securities has never lost its status as an SME-specialized company. IBK Securities was particularly recognized for its outstanding performance in the IPO market during the first half of the year among the eight companies selected as fifth-term SME-specialized financial investment companies. In the first half of this year, IBK Securities ranked 10th in IPO lead manager public offering amount, climbing six spots from 16th in the same period last year. It was the only SME-specialized company to rank in the top 10, with heavyweight firms like KB Securities, Korea Investment & Securities, NH Investment & Securities, Samsung Securities, and Mirae Asset Securities occupying the top nine spots. IBK Securities' IPO lead manager public offering amount in the first half totaled KRW 48 billion, more than double the entire 2023 amount of KRW 23.4 billion. This result includes successfully completing the KOSDAQ listing of Hanjung NSC, a leading company in the KONEX market, highlighting the company's achievements in leading SME IPOs. Suh is expected to aim for solidifying the number one position in the SME-specialized IPO market moving forward. IBK Securities is particularly recognized for its excellent SME corporate finance (IB) capabilities, leveraging the networking synergy of its parent company, IBK Industrial Bank. Currently, IBK Securities is preparing SME IPOs with companies like PeoPet, an integrated pet platform, and Intusky, an industrial drone company. This is expected to contribute to a performance rebound. IBK Securities' net profit last year was KRW 31.2 billion, down about 25% from 2022, due to provisions for the real estate market downturn. However, the net profit in the first quarter of this year was KRW 26.9 billion, almost matching last year's total net profit in just one quarter. Performance improvement is expected in the second quarter based on IPO market achievements. Suh also set a goal to lead the first KOSPI listing in the company's history. In a written interview with the media on the first anniversary of his inauguration in March, Suh stated, "We will push for KOSPI listings, leveraging the connections and revenues discovered with the 38 companies we have listed so far, surpassing KONEX and KOSDAQ." He added, "We will pursue qualitative growth as a total solution provider responsible for various listing methods, including direct capital investments before listing, SPAC mergers, technology special listings, and post-listing stock management and relisting." Born in 1963, Suh Jung-hak graduated from Dongguk University with a degree in English Literature and joined IBK Industrial Bank in 1989. At IBK Industrial Bank, he served as a branch manager and regional headquarters head, as well as the head of the IB Support Department and the Technology Finance Department, establishing himself as a corporate finance expert. After being appointed vice president at IBK Industrial Bank in 2018, he held roles such as head of the IT Group, head of the Global Money Market Group, and head of the CIB Group, before becoming CEO of IBK Savings Bank in March 2021 and then CEO of IBK Securities in March last year. #SuhJungHak #IBKSecurities #SMEFinance #IPO #KOSPI #HybridSecurities #FinancialGrowth #CorporateFinance #CapitalRaising #BusinessLeadership
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- Strengthening Kwangdong's Specialty Drug Lineup, Choi Sung-won Sheds 'Water Seller' Label
- Choi Sung-won, CEO and Chairman of Kwangdong Pharmaceutical, is focused on enhancing the competitiveness of the company's core pharmaceutical business. Recently, Kwangdong Pharmaceutical has strengthened its specialty drug lineup by introducing treatments for rare diseases alongside vaccine sales, aiming to shift away from a business structure where beverages account for about half of total sales. As of the 21st, Kwangdong Pharmaceutical has expanded its rare drug product line to seven types within a year, including the latest contract with the global pharmaceutical company Chiesi, headquartered in Italy. Since the initial introduction of three rare drugs from Chiesi in July 2023, Kwangdong Pharmaceutical added four more in July, increasing its product portfolio. The three rare drugs introduced last year are currently undergoing approval procedures from the Ministry of Food and Drug Safety. In addition to rare drugs, expectations are much higher for the vaccine business. Since January of this year, Kwangdong Pharmaceutical has been selling MSD's human papillomavirus (HPV) vaccines 'Gardasil' and 'Gardasil 9'. These vaccines generated annual sales of KRW 100 billion last year. There is cautious optimism that the commercial potential of Gardasil 9 could increase as discussions are underway on whether to include it in the national immunization program (NIP) for males in South Korea. Kwangdong Pharmaceutical is also strengthening its alliance with GlaxoSmithKline (GSK), the second-largest pharmaceutical company in the world. Kwangdong Pharmaceutical and GSK's joint sales portfolio includes nine items: the rotavirus vaccine 'Rotarix', the meningococcal vaccine 'Menveo', the pertussis vaccine (Tdap vaccine) 'Boostrix', the pneumococcal vaccine 'Synflorix', the shingles vaccine 'Shingrix', the allergy rhinitis treatment 'Avamys', the pertussis vaccine (DTaP vaccine) 'Infanrix', the measles, mumps, rubella (MMR) vaccine 'Priorix', and the hepatitis A vaccine 'Havrix'. 'Shingrix' achieved the top spot among shingles vaccines, rising to number one within a year of its launch. As Kwangdong Pharmaceutical intensifies its efforts in the pharmaceutical business, the beverage sales ratio is expected to gradually decrease. Kwangdong Pharmaceutical has been criticized for its ambiguous identity due to the high proportion of beverage sales. In the past year, only one report has been published by domestic securities companies on Kwangdong Pharmaceutical. With the second-generation owner, Chairman Choi Sung-won, taking the helm, there are analyses that Kwangdong Pharmaceutical is complementing its strategy to increase the proportion of its pharmaceutical business. Chairman Choi assumed the role of vice chairman after the death of his father and founder, former chairman Choi Soo-boo, in 2013, and was promoted to chairman in December 2023. It is believed that Kwangdong Pharmaceutical began to earnestly strengthen its pharmaceutical business around this time. Previously, the company focused on diversification with an emphasis on beverages. However, having secured stable revenue from beverages, it is now shifting towards strengthening profitability through pharmaceuticals. Last year, Kwangdong Pharmaceutical reported KRW 917.1 billion in standalone revenue. Samdasoo and Vita500 accounted for 46.7% of this revenue. Essentially, beverages supported nearly half of the revenue structure, making it difficult to avoid the derisive label of 'water seller'. There are opinions that Kwangdong Pharmaceutical's sincerity in the pharmaceutical business needs to be further observed, considering its still low investment in new drug development. In South Korea, pharmaceutical companies with over KRW 1 trillion in revenue spent an average of 10% of their sales on R&D in 2023. Kwangdong Pharmaceutical's R&D expenditure ratio was 2.2%. This was a 0.6 percentage point increase compared to 1.6% in 2022, but still a low level. Companies with similar sales levels, such as Green Cross and Hanmi Pharmaceutical, invest around 12% of their annual revenue in R&D. An industry insider said, "Recently, Kwangdong Pharmaceutical has shown changes by pursuing healthcare-related mergers and acquisitions. However, it remains to be seen how much investment will be made in the core business of new drug development." #KwangdongPharmaceutical #ChoiSungWon #PharmaceuticalBusiness #VaccineSales #RareDiseases #SpecialtyDrugs #NewDrugDevelopment #HealthcareMergers #R&DInvestment #BeverageSales
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- Samsung Electronics' Roh Tae-moon Reattempts Chinese Market with 'Galaxy Z Fold 6 Ultra' Exclusive Release
- Roh Tae-moon, President and Head of Samsung Electronics' MX division, is attempting a comeback in the Chinese smartphone market, where their market share has fallen below 1%, with foldable phones like the Galaxy Z Fold 6. Roh plans to collaborate with Chinese AI technology companies to release a China-exclusive version of the Galaxy Z Fold 6 Ultra, featuring 'on-device AI' (AI functions provided by the device itself), to target the Chinese premium phone market. According to industry sources on the 19th, Samsung Electronics will exclusively release the Galaxy Z Fold 6 Ultra in Korea and China. German tech site Allround-PC and Chinese GizmoChina reported on the 17th that the Galaxy Z Fold 6 Ultra model will be exclusively launched in Korea and China this October. Some global smartphone manufacturers adopt a strategy of releasing specific models only in certain countries to focus their efforts. For instance, Chinese company Xiaomi released its flagship smartphone Xiaomi 12S Ultra exclusively in China in 2022, aiming to target the domestic premium phone market, given the global focus on low-cost smartphones. Finnish company HMD, known for making Nokia phones, exclusively launched the budget smartphone Aura in Australia this past May, attempting to increase its market share in a country with high demand for low-cost smartphones. The exclusive release of the Galaxy Z Fold 6 Ultra in Korea and China is interpreted as Roh's strategy to further enhance Samsung's strong presence in the foldable phone market in China. Samsung Electronics' market share in the Chinese smartphone market was below 1% in the second quarter of this year. However, according to market research firm IDC, Samsung ranked fourth with an 11% market share in the high-end foldable phone market in China in the second quarter. Competing in the mid to low-end smartphone segment against Chinese companies is challenging, so it appears Samsung aims to regain market share in China through premium foldable phones. The Galaxy Z Fold 6 Ultra, to be released in China, is expected to feature AI technology from local Chinese companies. Chinese media Pandaily reported on the 17th that Samsung is pursuing technological cooperation related to AI foldable phones with Chinese large language model (LLM) AI technology company Dubao. The media outlet reported that Samsung would apply Dubao's AI to the Galaxy Z Fold 6 and Galaxy Z Flip 6. Specifically, it is said that they are discussing linking Dubao's LLM with Samsung's intelligent assistant 'Bixby.' The media also reported, "When users travel in China and ask Bixby, it will provide information about Chinese tourist attractions, restaurants, hotels, etc., through Dubao's LLM plugin content." Additionally, it is predicted that Samsung will adopt Dubao's generative AI portrait technology. This technology allows photos taken with the phone to be instantly transformed into various styles, such as 3D, cartoon, and cyberpunk. However, some predict that this effort by Samsung may not immediately increase market share in China. The technical prowess of local Chinese companies in premium smartphone products has reached a significant level, making market competition fierce, and there are also obstacles like patriotic consumption among Chinese consumers. Francisco Jeronimo, IDC vice president, recently said in an interview with CNBC, "Even if Samsung adopts Chinese AI, it is difficult to expect a noticeable increase in sales in the Chinese market because Samsung's brand recognition is low and Chinese companies are already applying AI technology." Keywords: #Samsung #GalaxyZFold6Ultra #ChinaMarket #RohTaeMoon #AICollaboration #PremiumPhones #FoldablePhones #DubaoAI #MarketStrategy #TechNews
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- SK hynix HBM Unusual Profitability, Expected to Surpass Samsung Electronics' Semiconductor Operating Profit in Q2
- SK hynix is analyzed to have the potential to surpass Samsung Electronics' Semiconductor (DS) division's operating profit in the second quarter, following its success in the first quarter of this year. This is attributed to the improvement in profitability of general DRAM and NAND flash, as well as the significant increase in sales of SK hynix's high-bandwidth memory (HBM), which began in earnest from the second quarter. HBM is at least five times more expensive than general DRAM, which is expected to highlight the profitability gap between SK hynix and its competitors. According to the market consensus (average forecast by securities companies) compiled by financial information company FnGuide on the 19th, SK hynix's consolidated sales for the second quarter of this year are estimated at KRW 16.1886 trillion (US$ 11.67 billion), and operating profit is estimated at approximately KRW 5.1923 trillion (US$ 3.74 billion). This represents a 30.2% increase in sales and a 79.9% increase in operating profit compared to the first quarter. Ahead of SK hynix's performance announcement on July 25, some securities companies have raised their second-quarter operating profit estimates to over KRW 6 trillion (US$ 4.33 billion). Jung Min-kyu, a researcher at Sang Sang In Securities, raised SK hynix's target stock price from KRW 240,000 to KRW 340,000, stating, "SK hynix's second-quarter operating profit would have exceeded the market consensus at KRW 6.178 trillion (US$ 4.45 billion)," and analyzed that "DRAM shipments would have increased by 14% due to the increased production of HBM and high-capacity memory modules." Considering that Samsung Electronics' DS division's second-quarter operating profit is estimated to be around KRW 6 trillion (US$ 4.33 billion), SK hynix has the possibility of surpassing Samsung Electronics for two consecutive quarters. In the first quarter of this year, SK hynix recorded an operating profit of KRW 2.886 trillion (US$ 2.08 billion), earning about KRW 1 trillion more than Samsung Electronics' DS division's operating profit of KRW 1.91 trillion (US$ 1.38 billion). In terms of profitability, SK hynix's competitiveness is more pronounced. SK hynix's operating profit margin in the second quarter of this year is expected to be around 20%, while Samsung Electronics' DS division's operating profit margin is estimated to have remained in the mid-10% range. This profitability difference is analyzed to stem from HBM. SK hynix has been supplying NVIDIA with the world's first mass-produced fifth-generation HBM, HBM3E, for artificial intelligence (AI) memory since the end of March this year. This achievement came just seven months after starting development in August last year. On the other hand, Samsung Electronics has not yet supplied HBM3E to NVIDIA, effectively continuing SK hynix's dominance. HBM is a memory semiconductor that vertically connects multiple DRAMs to dramatically improve data processing speed compared to existing DRAMs. It is estimated to be at least five times more expensive than general DRAM, and HBM3E is estimated to be nearly ten times more expensive. Park Sang-wook, a researcher at Shin Young Securities, predicted, "From the second quarter, the full-scale sales of HBM3E would have led to a significant increase in the average selling price (ASP) of DRAM," and foresaw that "the proportion of HBM sales and operating profit in SK hynix's total this year would rise to 14.2% and 22.3%, respectively." Considering that TSMC's second-quarter high-performance computing (HPC) sales, announced on the 18th, increased by 28% compared to the first quarter, there is also an analysis that SK hynix's HBM sales growth rate could exceed expectations. TSMC packages the HBM supplied by SK hynix with the graphics processing units (GPUs) designed by NVIDIA and delivers them to NVIDIA. However, SK hynix's performance outlook may fluctuate depending on whether Samsung Electronics begins mass-producing HBM3E in the second half of this year. As HBM competitors increase, it may become difficult to maintain the high price levels seen so far. The production volume gap between Samsung Electronics and SK hynix is expected to narrow significantly in the second half of this year. Park Yoo-ak, a researcher at Kiwoom Securities, predicted, "If Samsung Electronics' HBM3E sales expansion becomes visible in the second half, SK hynix's stock price downward pressure could increase," and expected, "Samsung Electronics' HBM production volume will increase to 105,000 wafers per month by the end of this year, and SK hynix will increase to 120,000 wafers per month during the same period." #SKHynix #Samsung #HBM #semiconductor #operatingprofit #memorychip #NVIDIA #TSMC #technology #financialanalysis
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- Chey Tae-won's "SK On Revival" Merger Strategy: Long-term Battery Slump Could Impact Entire Group
- SK Group Chairman Chey Tae-won's strategy to save SK On through a merger with affiliated companies has garnered significant interest in the business world. The core of SK Group's recent rebalancing of subsidiaries is to secure the financial capacity to sustain SK On until it can gain business competitiveness by attaching a profitable subsidiary to it. However, if the electric vehicle (EV) market slump (a short-term demand gap) prolongs for another 2-3 years and SK On's accumulated deficit continues, this business restructuring could potentially deal a significant blow to SK Group's energy business. According to industry insiders on the 19th, since SK Innovation's merger with SK E&S was decided under more favorable conditions for SK Innovation shareholders than expected, it is anticipated that the individual shareholders of SK Innovation, who hold 24% of the total shares, will not strongly oppose the merger. Jun Woo-jae, a researcher at KB Securities, stated, "The merger ratio between SK Innovation and SK E&S is more reasonable than market concerns," and added, "After the merger of SK Innovation and SK E&S, SK Holdings' stake in SK Innovation will increase to 55.9%, lower than the previously expected 72%." The merger ratio of SK Innovation and SK E&S is 1:1.19, which is considered advantageous to SK Innovation shareholders compared to the previously expected 1:2 ratio. Analysts interpret that Chairman Chey's determination to prioritize SK On's battery business is reflected in SK Holdings' active push for the merger, even if it means lowering the share increase rate of the merged entity by about 16 percentage points. As of the end of the first quarter this year, SK Holdings holds a 36.22% stake in SK Innovation. To ensure the merger's success, it is crucial to gain support from the second-largest shareholder, the National Pension Service, and minority shareholders, which explains the proposed merger ratio. The shareholder meeting to approve the merger proposal is scheduled for August 27, and the proposal needs the approval of one-third of the total shares to pass. Analysts expect the proposal to pass smoothly. Jun Yoo-jin, a researcher at Hi Investment & Securities, said, "To minimize the value damage to existing shareholders (especially minority shareholders) of SK Innovation, the merger ratio was set to reflect SK Innovation's corporate value higher than SK E&S's." The merger between SK Innovation and SK E&S is primarily seen as a move to secure financial support capacity for its subsidiary SK On through the merger with a profitable company. Chairman Chey previously designated SK On, SK Innovation's battery subsidiary, as a growth-driving business and planned large-scale facility investments to expand battery production capacity. This year's facility investment is KRW 7.5 trillion (US$ 5.41 billion), and next year it is about KRW 4 trillion (US$ 2.88 billion). The problem is that the battery business has continuously recorded quarterly losses since its spin-off from SK Innovation into SK On in October 2021, becoming a financial burden for SK Innovation as a 'money-eating machine.' SK On has recorded losses for 10 consecutive quarters since its establishment, with accumulated losses approaching KRW 2.6 trillion (US$ 1.87 billion). In December 2022, SK Innovation invested KRW 2 trillion (US$ 1.44 billion) when SK On raised KRW 2.8 trillion (US$ 2.02 billion) through a rights offering. Considering SK On's lack of internal cash flow due to ongoing operating losses, it is expected that SK Innovation will need to continue supporting SK On with several trillion KRW. This could deteriorate the financial soundness of the merged entity of SK Innovation and SK E&S. SK E&S is evaluated as a company with a stable cash flow generation portfolio, including LNG, power generation, and hydrogen energy. As of the end of the first quarter of 2024, its cash and cash equivalents amount to KRW 3.2125 trillion (US$ 2.32 billion), and last year, it generated about KRW 1.3 trillion (US$ 936.4 million) in operating profit, making it a profitable company. The merger will increase SK Innovation's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) from KRW 3.9 trillion (US$ 2.81 billion) before the merger to KRW 5.8 trillion (US$ 4.18 billion) after the merger. The merged entity aims to achieve an EBITDA of KRW 20 trillion (US$ 14.42 billion) by 2030, but this is based on the assumption that SK On normalizes its management. If SK On continues to incur losses, it will be difficult to achieve this profit target. In addition to increasing support capacity for SK On through the SK Innovation-SK E&S merger, Chairman Chey plans to merge SK On with SK Trading International (SK Trading) and SK Entom to launch a three-company merged entity. This is a comprehensive restructuring of the governance structure to support SK On. SK Trading, which engages in crude oil and petroleum product trading, recorded KRW 48.963 trillion (US$ 35.30 billion) in sales and KRW 574.6 billion (US$ 414.3 million) in operating profit in 2023. Based on its stable cash generation capability, it paid SK Innovation an interim dividend of KRW 800 billion (US$ 576.8 million) in 2023. SK Entom, a company engaged in crude oil storage business, was merged with SK Trading for vertical integration. For this group's energy-related subsidiary merger plan to succeed, SK On must somehow escape from deficits and enter the path of management normalization. SK On is attempting to improve profitability by increasing battery yield (the ratio of genuine products) and strengthening cost competitiveness related to materials. However, to reduce fixed costs, which account for a high proportion of expenses, the increase in plant utilization rates must be supported. Considering SK On's plan to increase production capacity from 88 GWh in 2023 to 132 GWh this year, it will be challenging to expect an increase in utilization rates if the demand for electric vehicle batteries continues to slow. Unlike its domestic battery competitors, SK On does not have other battery businesses such as energy storage system (ESS) batteries and solely relies on the electric vehicle battery business, making it highly dependent on the electric vehicle market. SK On is expected to record a deficit exceeding KRW 1 trillion (US$ 721.3 million) this year, continuing the losses from the second quarter into the third quarter. According to analysts, SK On is expected to record KRW 9.2649 trillion (US$ 6.68 billion) in sales and KRW 1.105 trillion (US$ 796.8 million) in operating losses on a consolidated basis this year. Park Hyung-woo, a researcher at SK Securities, projected SK On's second-quarter performance as KRW 1.7305 trillion (US$ 1.25 billion) in sales and KRW 331.5 billion (US$ 239 million) in operating losses. He said, "The expected turnaround to profitability is in the fourth quarter," and added, "An additional consideration is that competition within the industry is intensifying due to a decrease in battery demand amid an oversupply situation." #CheyTaeWon #SKGroup #SKOn #mergerstrategy #batterymarket #SKInnovation #SKEandS #financialsupport #electricvehicles #businessrestructuring
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- Hoban Construction Faces Tough Challenge to Retain Top 10 Position Amidst HDC Hyundai Development's Pursuit
- As the Ministry of Land, Infrastructure and Transport prepares to announce the results of the construction capability evaluation, there is heightened interest in whether Hoban Construction will maintain its 10th position. Last year, Hoban Construction pushed HDC Hyundai Development out and secured the 10th spot for the first time in four years since 2019. However, this year, many analysts predict that the competition for the 10th place with HDC Hyundai Development will not be easy. According to the construction industry on the 18th, HDC Hyundai Development achieved strong performance last year, while Hoban Construction's performance declined, leading to predictions that the rankings might reverse in the construction capability evaluation to be announced on July 31, 2024. HDC Hyundai Development achieved sales of KRW 4.19 trillion (US$ 3.02 billion) and an operating profit of KRW 195.3 billion (US$ 140.8 million) in 2023 on a consolidated basis. Compared to the previous year, sales increased by 27.1%, and operating profit increased by 67.8%. HDC Hyundai Development focused on high-profit self-developed projects and completed significant projects such as Busan Asiad Le County, Gaepo DH First I-Park, and Cheongju Gagyeong I-Park 5th Complex, leading to performance growth. On the other hand, during the same period, Hoban Construction recorded consolidated sales of KRW 2.69 trillion (US$ 1.94 billion) and an operating profit of KRW 401.3 billion (US$ 289.4 million). Compared to 2022, sales and operating profit decreased by 16.1% and 32.8%, respectively. Due to this, it is analyzed that there will be significant changes in the construction performance evaluation amounts, which reflect the construction performance of the past three years for both companies. Construction performance evaluation amounts account for the largest proportion in the construction capability evaluation. Based on the construction capability evaluation calculated last year, the contribution by category was 38.3% for construction performance evaluation (construction performance), 37.6% for management evaluation, 16.7% for technical capability evaluation, and 7.4% for reputation evaluation. In the financial soundness sector, which affects the management evaluation amount, HDC Hyundai Development showed improvement, while Hoban Construction's debt increased. HDC Hyundai Development's debt at the end of 2023 was KRW 1.77 trillion (US$ 1.28 billion), an 18% decrease from KRW 2.16 trillion (US$ 1.56 billion) at the end of 2022. The debt ratio also decreased by 18.3 percentage points from 137.8% at the end of 2022 to 119.5%. Hoban Construction's debt increased by 53.5% from KRW 601.8 billion (US$ 434.0 million) to KRW 923.7 billion (US$ 666.0 million). The dependency on borrowing also rose by 3.3 percentage points from 8.7% to 12.0%. The increased weight of reputation evaluation in the construction capability evaluation from this year is also expected to disadvantage Hoban Construction, which faced controversy over 'honeybee bidding' last year. The government has prepared a revised construction capability evaluation plan for the first time in nine years and decided to implement it from this year. The government introduced new items in the reputation evaluation to eradicate illegal activities among construction companies, including △defects △construction evaluation △safety △environment △efforts to eradicate illegal activities. The penalty points for unfair practices like 'honeybee bidding' increased from 5% to 7%. The Fair Trade Commission imposed a fine of KRW 60.8 billion (US$ 43.8 million) on Hoban Construction last June. According to the FTC, Hoban Construction Housing and Hoban Industries, owned by the two sons of Hoban Group founder Kim Sang-yeol, provided business opportunities to these companies by transferring public land acquired through 'honeybee bidding' and funding their projects. Hoban Construction has filed an administrative lawsuit against the FTC's fine imposition. Since it will take time for the lawsuit results, it is unlikely to be immediately reflected in the construction capability evaluation, but it could become a burden in future evaluations. An industry insider said, "Starting from this year's construction capability evaluation, if a fine is imposed, the existing method of reducing the construction performance by 1% will change to 2%. As the reduction rate doubles compared to the past, the impact of the fine imposition on the ranking will be significant." Hoban Construction first entered the top 10 construction capability rankings in 2019 by absorbing Hoban (formerly Hoban Construction Housing). However, it fell to 12th place the following year and fluctuated between 11th and 13th place until 2022, struggling to re-enter the top 10. Last year, Hoban Construction had the opportunity to enter the top 10 as HDC Hyundai Development's construction performance evaluation significantly declined due to the collapse accident at Gwangju Hwajeong I-Park in January 2022. HDC Hyundai Development, which recovered its 10th position in the construction capability evaluation in 2015, has consistently remained between 8th and 10th. Hoban Construction ranked 10th in the 2023 construction capability evaluation with KRW 4.39 trillion (US$ 3.16 billion), surpassing HDC Hyundai Development (KRW 3.70 trillion, US$ 2.67 billion). Despite HDC Hyundai Development's construction performance evaluation amount decreasing by only 4.3% compared to 2022 and the technical capability evaluation amount increasing by 1.4%, its management capability evaluation amount and reputation evaluation amount decreased significantly by 43% and 37.4%, respectively. However, Hoban Construction has struggled to recover its performance due to the ongoing housing market slump since the second half of 2022. Hoban Construction primarily focuses on purchasing public land and selling apartments. Kim Moon-ho, a researcher at Korea Ratings, recently stated in a report, "Hoban Construction's growth, driven by public land-based housing sales, faces direct and indirect constraints due to regulations and policy changes related to public land bidding. Since the competitive public land supply system was implemented in 2021, the scale of public land contracts for Hoban Construction and its affiliates has significantly decreased." #HobanConstruction #HDC #ConstructionRanking #2024Evaluation #PublicLand #HousingMarket #ConstructionPerformance #FinancialSoundness #ReputationEvaluation #FairTradeCommission
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- GS Chairman Heo Tae-soo: 'Now is a Great Opportunity to Enter New Business in Rapidly Changing Environment'
- GS Group Chairman Heo Tae-soo stated, "Now is the time for new business ventures in the rapidly changing business environment." Heo chaired the 'GS Executive Meeting' held at GS Tower in Gangnam-gu, Seoul on the 17th, as announced on the 18th. The GS Executive Meeting is held twice a year in January and July. In January, the annual business strategy and, in July, the direction of group management after the first half of the year reflecting changes in the business environment are announced by Chairman Heo. Heo mentioned at the meeting, “The changing business environment, including global economic slowdowns such as in China, and difficulties faced by industries leading sectors like petrochemicals, semiconductors, and batteries, are very serious.” He added, “Such environmental changes are triggering a restructuring of the overall industry, providing a great opportunity for GS Group's future new business ventures.” He further stated, “We can actively pursue investments and mergers and acquisitions (M&A).” He emphasized that “Executives should not be content with current businesses but should have the capability to expand into new areas.” He also called for the efficiency enhancement of work through the integration of generative artificial intelligence (AI) technology. Heo emphasized, “GS employees should be familiar with IT development tools such as generative AI and nanocode.” He said, “Now, digital innovation belongs to all employees, not just some IT experts.” On this day, four affiliated companies including GS Caltex, GS Construction, GS Power, and Parnas shared examples of on-site innovation based on DX and AI technologies.
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- Hwang Joo-ho, CEO of Korea Hydro & Nuclear Power, Ensures to the End, 'Will Consider Settlement with Westinghouse'
- Hwang Joo-ho, the CEO of Korea Hydro & Nuclear Power (KHNP), has achieved a nuclear power plant export success after 15 years since the UAE's Barakah nuclear power plant. CEO Hwang, not from KEPCO or a bureaucratic background but as a private nuclear expert, marks a significant milestone in the domestic nuclear industry as the first person to become the CEO of KHNP. CEO Hwang has been at the forefront of winning the nuclear power plant contract, and it is expected that he will strive in negotiations to finalize the contract under favorable conditions as the preferred negotiator until the main contract is signed. On the 18th, CEO Hwang of KHNP held a briefing with Minister of Industry, Trade and Resources Ahn Deok-geun at the Government Sejong Building regarding the selection as the preferred negotiator for the new nuclear power plant construction project in the Czech Republic. Originally, Vice Minister Choi Nam-ho of the Ministry of Industry was supposed to conduct the briefing, but considering the significance of the matter, Minister Ahn stood alongside CEO Hwang at the briefing. During the briefing, CEO Hwang highlighted that the Czech nuclear power plant contract could lead to additional projects in the future. He emphasized, 'After completing these two units, considering the surge in power demand, the review of the remaining two units could be expedited, and each unit costs around KRW 12 trillion this time, and additional units are expected to be at this level.' He further stated, 'The project cost of KRW 24 trillion mainly involves construction-related expenses, so profits from operations, maintenance, and nuclear fuel are separate. Considering a 60-year operation period, more profits can be obtained than construction costs.' It is interpreted that doubts about the economic effects raised regarding the Czech nuclear power plant contract will be dispelled. Earlier, on the 17th (local time), the Czech government announced that KHNP-led 'Team Korea' was selected as the preferred negotiator for the construction of two new nuclear power plants in Dukovany, central Czech Republic. In addition to Dukovany, the Czech government plans to build two more nuclear power plants in Temelin. Although only the Dukovany nuclear power plant construction project was the subject of the contract this time, if the Temelin nuclear power plant construction project moves forward, KHNP will have the right to negotiate first. The final bidding for this contract, which saw fierce competition between KHNP and EDF, began in 2016. Initially, the Czech government planned to build one nuclear power plant in Dukovany and invited bids. In 2016, the Czech government received preliminary bid documents from six companies, including KHNP, but in 2021, citing security reasons, excluded Russia's Rosatom and China's CGN. By the time the bidding plan was submitted in 2022, KHNP and EDF, along with Westinghouse from the United States, were engaged in fierce competition. However, as the construction plan expanded to four nuclear power plants and the bidding scale reached around KRW 30 trillion, Westinghouse failed to meet the bid requirements such as turnkey completion guarantee and partial defect repair, ultimately leading to a showdown between France and EDF. This situation is similar to the 2009 UAE nuclear power plant contract, which was won by KEPCO and Areva, now merged with EDF. CEO Hwang offered a lower construction cost compared to EDF to make KHNP more attractive in Czech political circles. Karel Havlíček, former Minister of Industry and Trade and current deputy chairman of the Czech opposition party ANO, expressed his delight through his social networking service account on the 17th (local time), stating, 'I am very pleased that the decision on the selection as the preferred negotiator for the Dukovany nuclear power plant in the Czech Republic has finally been made. KHNP made a good proposal considering rising prices, which is in line with what we predicted when we decided to build the Dukovany nuclear power plant.' KHNP's successful completion of the Barakah nuclear power plant project in the UAE demonstrated its ability to adhere to construction deadlines, which also contributed to winning the contract. According to the local Czech media Třebíčský deník, KHNP also provided guarantees related to air delays. CEO Hwang promised to expand the participation of Czech companies in the nuclear power plant project. During the briefing on the 18th, CEO Hwang stated, 'We have contacted around 200 Czech companies in the manufacturing sector and, including construction, guided them to meet the qualifications to bid for this project.' CEO Hwang set his sights on overseas nuclear power plant exports from the beginning of his term. He did not hesitate to engage in comprehensive overseas operations. On August 22, 2022, at the inauguration ceremony held at the KHNP headquarters in Gyeongju, CEO Hwang said, 'Let's write a new history with the power and pride of becoming a nuclear power nation without introducing nuclear power without technology. Our goal is to export 10 nuclear power plants.' Having achieved success by finalizing the El Dabaa nuclear power plant Phase 2 construction project shortly after taking office, CEO Hwang visited the Czech Republic several times from 2022 to July 2024. In 2024, the year when the contract negotiations intensified, he focused all his efforts on business activities, including three visits to the Czech Republic. In January 2024, CEO Hwang held a business briefing for the Czech media. In April, he visited the EDU II, the ordering entity for the new nuclear power plant construction project in the Czech Republic, and submitted the final bid. During his visit to the Czech Republic in June, he met with Czech Minister of Industry and Trade Josef Sikela and participated in the 'Korea-Czech Republic Nuclear and Cultural Exchange Day' event. CEO Hwang said, 'I have never felt that I have won' and shared an anecdote, 'I arrived an hour early for a 6:30 am appointment with a high-ranking Czech official, and they said,
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- Increasing Investment in SK Biopharm Following SK Bioscience; Focus on Bio Amid Restructuring
- Following SK Bioscience, SK Biopharmaceuticals (SK Biopharm) is also making significant investments to continue new drug development, highlighting the bio industry as a future growth driver for SK Group. This move contrasts with Chairman Chey Tae-won's intensive restructuring across SK Group subsidiaries. Chairman Chey's emphasis on qualitative growth in the bio sector is reflected in subsidiaries like SK Biopharm. On the 17th, SK Biopharm announced a contract worth approximately KRW 729.1 billion with Hong Kong-based radiopharmaceutical company Puhlife Technologies to introduce new drug candidates. This contract exceeds SK Biopharm's 2023 standalone revenue of KRW 310.7 billion by more than double. Excluding milestone payments, the non-refundable contract fee of approximately KRW 11.8 billion is a significant investment for SK Biopharm. Considering SK Biopharm's cash and cash equivalents of KRW 170.1 billion as of the end of Q1, the company has immediately paid about 7% of its available cash. Even if SK Biopharm invests all its standalone current assets of KRW 446.7 billion as of the end of Q1, it falls short of the total contract amount. While milestone payments are conditional on development stages, group-level support may be necessary. Despite recent quarterly operating profits, SK Biopharm faced difficulties until last year. The company reported a standalone operating loss of KRW 145.6 billion in 2022 and KRW 18.1 billion in 2023, marking two consecutive years of operating losses. Though it achieved a standalone operating profit of KRW 24.9 billion in Q1 this year, annual profitability remains uncertain. SK Group's significant investment in bio subsidiaries like SK Biopharm and SK Bioscience stands out amid widespread restructuring. On June 27, SK Bioscience signed a contract to acquire a 60% stake in IDT Biologika, a subsidiary of Germany's Klocke Group, for KRW 339 billion. IDT Biologika operates a CMO and CDMO business focused on vaccines. This acquisition is notable amid the group's sale of non-core businesses and profitable factories. SK Group is reportedly discussing the merger of energy companies SK Innovation and SKE&S and considering the disposal of non-core businesses as part of its business rebalancing (restructuring). Even bio subsidiaries are not entirely exempt from restructuring. SK Pharmteco is reportedly weighing the sale of its U.S. API plant. SK Pharmteco stated that no decision has been made yet. Given the high risk in the bio industry, continued investment in bio subsidiaries by SK Group indicates strong investment commitment at the group level. According to the U.S. Biotechnology Association, the success rate for new drug development in the 2020s is only 7.9%. While SK Biopharm's newly introduced technology is a next-generation anticancer radiopharmaceutical, commercialization remains challenging as the market is still in its early stages. Radiopharmaceuticals work similarly to ADCs (antibody-drug conjugates), attaching radioactive isotopes to drugs administered to patients, with the isotopes emitting radiation to destroy cancer cells. Unlike ADCs that bind drugs to antibodies with linkers, radiopharmaceuticals combine radioactive materials like actinium with chelators, low molecular weight compounds, and linkers. Currently, only two radiopharmaceuticals are approved by the FDA: the prostate cancer treatment Pluvicto and the neuroendocrine tumor treatment Lutathera. SK Group's bold investment in bio subsidiaries seems aligned with Chairman Chey Tae-won's vision. At the June 28-29 management strategy meeting at the SKMS Research Institute in Icheon, Gyeonggi Province, Chairman Chey stated, "In the green, chemical, and bio business sectors, we must pursue 'qualitative growth' through careful selection, focus, and substantial management based on market changes and technological competitiveness." Chairman Chey's emphasis on qualitative growth over restructuring suggests continued support for bio subsidiaries to foster future growth for SK Group. Lee Dong-hoon, CEO of SK Biopharm, said, "Since announcing our entry into the radiopharmaceutical treatment field last year, this licensing contract is our most concrete achievement." He added, "We plan to unveil a more detailed business plan for the full value chain of the radiopharmaceutical business this year and accelerate clinical development and commercialization." #SKBioscience #SKBiopharm #CheyTaeWon #bioindustry #newdrugdevelopment #investment #restructuring #radiopharmaceuticals #clinicaldevelopment #SKGroup
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- Kakao Owner Kim Beom-soo Faces Arrest, Prosecutors Seek Warrant for SM Entertainment Stock Manipulation
- Prosecutors have initiated procedures to secure the arrest of Kim Beom-soo, Chairman of Kakao’s Management Renewal Committee, who is under suspicion of stock manipulation involving SM Entertainment. The Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office filed an arrest warrant for Chairman Kim on the 17th, charging him with violations of the Capital Markets Act. This decision follows a 20-hour intensive investigation of Chairman Kim conducted by the prosecutors on the 9th. Prosecutors are investigating whether Chairman Kim directed or approved the stock manipulation process involving SM Entertainment. During the interrogation, Chairman Kim reportedly denied the charges, stating that while he was informed of the internal purchase plan, he was not briefed on the purchase process. Kakao is suspected of obstructing HYBE's public tender offer during its acquisition process of SM Entertainment in February last year. It is alleged that Kakao manipulated stock prices to elevate SM Entertainment’s stock above the public tender offer price of KRW 120,000. The Financial Supervisory Service summoned Chairman Kim in November last year for questioning on SM Entertainment stock manipulation charges and subsequently referred the case to the prosecution. After supplementary investigations, the prosecutors summoned Chairman Kim for the first time on the 9th, eight months later. Prosecutors have also referred Bae Jae-hyun, Kakao’s Chief Investment Officer, and the Kakao corporation to trial on similar charges. #Kakao #KimBeomsoo #SMEntertainment #StockManipulation #Prosecutors #CapitalMarketsAct #HYBE #FinancialSupervisoryService #KakaoInvestigation #BaeJaehyun
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- Naver's 'Catch YouTube' Strategy: CEO Choi Soo-yeon Aims for Growth by Opening Video Platforms
- Naver is bolstering its short-form video service, "Clip," to compete with global video platform giants like YouTube and TikTok. Naver plans to eliminate the entry barriers for creating channels on Naver TV and interconnect various video platforms under its umbrella to attract diverse creators and high-quality content, thus competing with overseas companies. On the 16th, Naver CEO Choi Soo-yeon announced a new video content strategy to strengthen the competitiveness of Naver's video platform business, which had been considered a relatively weak link. Previously, Naver TV required creators to have over 100 subscribers on other video platforms to open a channel. However, by the third quarter of this year, Naver plans to completely remove these channel creation conditions, transforming it into an open platform where anyone can upload videos, similar to YouTube. Since its launch in 2012, Naver TV has allowed only limited creators to upload videos, primarily focusing on channels established by corporations like terrestrial broadcasters for replays and previews. In January 2019, the subscription requirement for channel creation was eased from 300 to 100 subscribers on other video platforms. Now, five years later, the channel creation conditions are being completely abolished to attract diverse creators and compete with global companies like YouTube, TikTok, and Instagram. A Naver representative stated, "We have decided to remove the channel creation requirements to allow various creators to upload videos on Naver TV," expressing expectations for the revitalization of the video ecosystem. Naver plans to enhance its short-form service "Clip" based on the content gathered on Naver TV. Naver Clip is currently connected to Naver TV, Now, and Blog. Additionally, Naver is exploring various ways to secure short-form content, such as launching a dedicated mobile widget for "Clip" and recruiting dedicated creators. As short-form videos emerge as a core component of the content ecosystem, Naver can no longer afford to remain inactive. Since her appointment this year, CEO Choi has focused on developing services tailored to the MZ generation, who consume a lot of internet content. Naver also plans to link its real-time game streaming service, "ChiJiJik," with "Clip," allowing short-form videos uploaded on ChiJiJik to be viewed on Clip as well. ChiJiJik has been evaluated as successfully establishing itself in the market this year. Following the withdrawal of the leading domestic game streaming service Twitch from the US market, ChiJiJik, along with SOOP (AfreecaTV), has succeeded in establishing a strong position. As ChiJiJik paves the way for a resurgence in Naver's video business, attention is on whether the interconnection of video content can also revitalize the Clip service. Naver's presence in the video service business has been minimal so far. User numbers for various video services like Naver TV, Series On, and V Live have been declining. After announcing aggressive investment in the video business in 2018, Naver launched the ambitious "Now" in 2019, but its presence was negligible. Subsequently, the focus shifted to investments in e-commerce, relegating the video service business to a lower priority. CEO Choi plans to lead the competition against YouTube and TikTok with the Clip service. In the first-quarter earnings conference call, CEO Choi stated, "The average daily stay time on the Naver app's main page increased by 10% compared to the end of last year, demonstrating growth potential. In the mid-to-long term, we expect Home Feed and Clip to drive overall growth, surpassing the contribution of Naver News, which currently accounts for a significant portion of stay time." #Naver #Clip #YouTube #ChoiSooyeon #VideoPlatform #ShortFormVideo #NaverTV #TikTok #ChiJiJik #ContentEcosystem
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- Huh Yoon-hong, GS E&C CEO, Unveils Vision Ten Months After Taking Office, Accelerates Portfolio Adjustment
- Ten months after taking office, Huh Yoon-hong, CEO of GS Engineering & Construction, has outlined the direction in which he will lead the company. CEO Huh, who has long been involved in new business sectors, is expected to reorganize the business portfolio in line with the newly established vision. This transition signals GS Engineering & Construction's shift to the fourth generation of owner management. According to industry sources, as the impact of the accident at GS Engineering & Construction's Geomdan site subsides, CEO Huh now has the capacity to focus on improving the portfolio. On the 12th, Huh revealed the new vision, “Completing a safer and happier future through transparent trust and continuous innovation,” through a video posted on the company’s intranet, marking his first ten months in office. At the beginning of the year, Huh had hinted at clarifying the business portfolio and re-establishing the company vision in his New Year’s address. The official announcement of the new vision indicates the completion of this process. Under this vision, GS Engineering & Construction plans to build a stable business portfolio and strengthen risk management systems to solidify its foundations. In recent months, GS Engineering & Construction has collaborated with external professional organizations to diagnose its business portfolio and organizational capabilities. One of the businesses expected to grow in importance within GS Engineering & Construction’s portfolio is the modular housing business, which CEO Huh has been nurturing as a new growth engine. GS Engineering & Construction’s modular housing subsidiary, Xi Geist, recently launched the 'Xi Geist RM,' a small modular housing product that can be constructed on-site within a week. Additionally, it is developing related technologies, such as smart home services for modular homes in collaboration with Kyungdong Navien. Modular housing involves pre-fabricating more than 70-80% of the house, including the basic framework, electrical wiring, and bathrooms, in a factory, then transporting and assembling it on-site. This rapid and easy on-site construction is expected to be advantageous for expanding overseas operations. Another new business that CEO Huh is pushing is the data center developer business. A data center developer oversees the entire value chain of data centers, including investment, leasing, and operations. In January this year, GS Engineering & Construction completed the 'Epoch Anyang Center,' marking its tenth data center construction project, positioning the company well to expand into the developer role. Shin Dong-hyun, a researcher at Hyundai Motor Securities, stated, “GS Engineering & Construction has the most data center construction experience among construction companies. Expanding into the developer role based on this experience will significantly contribute to gaining market share.” In addition, CEO Huh is expanding investments in the recycling of waste batteries and solar power generation businesses. It is understood that GS Engineering & Construction is pursuing the sale of part of its stake in its subsidiary GS Inima to improve its financial structure, which has been strained by large operating losses. The market speculates that selling a 20% stake in GS Inima could raise about KRW 300 billion (approximately USD 216 million). GS Inima is expected to secure more than KRW 3 trillion (approximately USD 2.16 billion) in orders this year, including the third phase of the Ghubra project in Oman. Kim Ki-ryong, a researcher at Mirae Asset Securities, commented, “The process of liquidating GS Inima’s stake is positive in terms of increasing stake value through expanded orders and securing cash liquidity.” GS Engineering & Construction’s mainstay domestic housing business is expected to decrease in proportion. As the housing market slump continues, construction companies heavily reliant on the housing business, like GS Engineering & Construction, have been hit hard, prompting CEO Huh to address the imbalance in the business structure. In 2023, the housing and construction division of GS Engineering & Construction accounted for 76% of its revenue, the highest among major listed construction companies. CEO Huh is considered an expert in identifying new business opportunities, having served as the head of new business development and the head of the new business division from 2018 to 2020. In 2020, CEO Huh actively pursued the acquisition of modular housing companies such as Danwood in Poland and Elements in the UK, fostering the modular housing and water treatment businesses as two main pillars of GS Engineering & Construction’s new business initiatives. Since taking on the CEO role in November last year, CEO Huh has prioritized recovering GS Engineering & Construction’s construction quality and enhancing its business portfolio to strengthen the company’s long-term fundamentals. The urgent need to address the skewed business structure arose as the Jaia apartment brand’s image was damaged by the collapse accident at the Geomdan apartment site in April 2023, coupled with the ongoing housing market slump. Since CEO Huh's appointment, GS Engineering & Construction appears to be gradually recovering from the impact of the Geomdan accident. While the company reported a significant loss in the second quarter of last year due to costs related to the Geomdan accident, securities firms estimate an operating profit of around KRW 80 billion (approximately USD 57.7 million) for the second quarter of this year. #HuhYoonhong #GSConstruction #businessvision #modularhousing #datacenter #newbusiness #portfolioadjustment #GeomdanAccident #GSInima #housingmarket #corporateleadership #innovation #riskmanagement
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- Accounting Fraud Penalties Loom for Kakao Mobility Ahead of IPO, Ryu Geung-seon's Fate Hinges on 'Intent'
- The final penalty for Kakao Mobility's accounting violations (inflated revenue) is expected to be determined soon. The key issue is whether there was intentional misconduct, and the upcoming decision could potentially hinder Kakao Mobility's urgent progress. According to financial industry sources on the 15th, the Financial Services Commission (FSC) is scheduled to discuss the final penalty level for Kakao Mobility’s accounting fraud allegations at the Securities and Futures Commission (SFC) regular meeting on the 17th. The discussion on the final penalty level for Kakao Mobility has taken longer than expected. The SFC had previously discussed the matter in June but failed to reach a conclusion, delaying the decision to July. An SFC interim meeting focused solely on Kakao Mobility was held on July 2, followed by further discussions during the main meeting on July 3. However, the final decision on the penalty was postponed again to the meeting on the 17th. There is significant anticipation regarding whether the final penalty will be decided at the SFC’s main meeting on the 17th. If not, the decision will be delayed until after August due to the summer vacation, pushing it to September or later. The industry expects the SFC to finalize the penalty by the 17th or, at the latest, by the final meeting on the 31st. The critical issue is likely to be whether the misconduct was intentional. During a review by the FSC’s audit committee in May, there was a general consensus that Kakao Mobility violated accounting standards. However, opinions were divided on whether the misconduct was intentional, preventing a clear conclusion. This contrasts with the Financial Supervisory Service (FSS), which has been confident in the intentional nature of the accounting fraud. The FSS previously concluded that Kakao Mobility had engaged in accounting fraud by deliberately inflating revenues and expenses in its franchise taxi business from 2020 to 2022 to boost its valuation ahead of an initial public offering (IPO). The company imposed a 20% commission on franchise taxi companies and then returned 16-17% of the expenses under the guise of advertising fees. The authorities determined that the company’s application of the gross accounting method, which included the returned advertising fees without excluding them, constituted an accounting violation. If the SFC concludes, like the FSS, that there was intentional misconduct, it will significantly impact CEO Ryu Geung-seon's position. If intent is proven, the fines could be significantly higher than for negligence, and criminal charges could follow. For Kakao Mobility, which is gearing up for an IPO, this could be a major factor affecting its corporate value and IPO timeline. If additional investigations into Kakao are initiated, the legal risks for Kakao, including founder and chairman of the management reform committee Kim Beom-su, could reach a peak, potentially leading to his summons by prosecutors. Moreover, the FSS has already recommended the highest level of penalties, including a recommendation for CEO Ryu’s dismissal. If the SFC concludes that there was intentional accounting fraud, CEO Ryu could also face investigation. Despite the FSS’s recommendation for dismissal, Kakao Mobility approved a one-year extension of CEO Ryu’s term in March. Historically, it has been rare for financial authorities to impose severe penalties when expert opinions on accounting judgments are divided. For instance, in July 2020, the penalties for KT&G and, in March 2022, for Celltrion were reduced to "gross negligence" from the initial "intentional misconduct" based on the FSS’s lower severity judgments. Similarly, the penalty level for Doosan Enerbility in March this year was also reduced compared to the FSS’s recommendation. In 2018, Samsung Biologics was the first major listed company to be recognized for intentional accounting fraud, but the first trial court acquitted the company of these charges early this year. An IT industry insider commented, “While additional circumstantial evidence needs to be examined, given the divided expert opinions, the level of penalties may be mitigated.” #KakaoMobility #accountingfraud #financialpenalties #RyuGeungseon #IPO #FinancialSupervisoryService #SecuritiesAndFuturesCommission #corporategovernance #Kakao #fraudinvestigation #businessethics #ITindustry #marketregulation #KoreaFinance
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- Hanyang Securities Up for Sale, Adding Complexity to Yim Jong-yong's M&A Strategy for Woori Financial Group
- With Hanyang Securities, a 68-year-old institution, now on the market, Yim Jong-yong, chairman of Woori Financial Group, faces increasingly complex calculations for non-bank financial mergers and acquisitions. Chairman Yim, who has emphasized entering the securities business through the merger of small securities firm Pos Securities and Woori Investment & Securities, is now seeing a reputable 'strong small securities company' newly up for sale. With the potential acquisition of Tongyang Life Insurance and ABL Life Insurance still subject to price fluctuations, the emergence of Hanyang Securities as a potential sale marks another variable for Chairman Yim’s strategy to strengthen the non-bank sector. According to financial industry sources on the 15th, Hanyang Securities officially announced its sale, with Woori Financial Group, KCGI Asset Management, and LX Group emerging as strong candidates for the acquisition. Market interest is high, particularly among private equity funds, including KCGI. It is considered quite plausible that Woori Financial Group might aim for rapid growth by acquiring an additional firm following the launch of Woori Investment & Securities in August. This stems from the availability of a well-known securities firm, which Chairman Yim had been anticipating. Market watchers foresee the potential sale of several securities firms as the industry grapples with the fallout from the real estate project financing (PF) crisis. Chairman Yim, who has prioritized strengthening the non-bank sector since his appointment, is expected to eye significant acquisitions. Unlike Pos Securities, which Woori Financial Group merged with, Hanyang Securities is perceived as carrying substantial weight. Established in 1956 as part of Hanyang University's revenue business, Hanyang Securities boasts a 68-year history and has been listed on the stock exchange since 1988. Conversely, Pos Securities was established in 2013 under government initiatives to create a fund sales outlet for asset management companies. In terms of profitability, Hanyang Securities posted a separate net income of KRW 13.36715 billion (approximately USD 9.64 million) in the first quarter, significantly outperforming Pos Securities, which reported a net loss of KRW 1.415 billion (approximately USD 1.02 million). From Woori Financial Group’s perspective, acquiring Hanyang Securities would signify more than just re-entering the securities business. Opinions remain cautious about predicting the outcomes of Chairman Yim’s ongoing attempts to merge Tongyang Life Insurance and ABL Life Insurance, with price being a significant factor. Calculating a fair price is challenging, and the acquisition cost may be prohibitively high. Key criteria for assessing the value of an insurance company, such as Contractual Service Margin (CSM), indicate that Tongyang Life had KRW 2.6915 trillion (approximately USD 1.94 billion) as of the end of March, while ABL Life had approximately KRW 870 billion (approximately USD 629 million). Industry estimates suggest a price in the mid-KRW 3 trillion range (approximately USD 2.16 billion). In a June-end report, Lee Hong-jae, a researcher at Hyundai Motor Securities, stated, “There have been no insurance mergers and acquisitions since the adoption of the International Financial Reporting Standards (IFRS 17). The strengthened regulations affecting long-term forward interest rates and the potential changes in actuarial assumptions suggest significant differences in views on the appropriate corporate value of insurance companies.” Woori Financial Group’s current subsidiary investment capacity is estimated at around KRW 7.5 trillion (approximately USD 5.41 billion), considering financial authorities' recommendations. However, considering additional costs for post-acquisition stabilization and expenses to alleviate concerns over reduced shareholder returns, the actual funds available for mergers and acquisitions might be significantly lower. Chairman Yim thus needs to carefully consider acquisition targets. Acquiring Hanyang Securities could instantly elevate Woori Financial Group to the 13th position in the industry. Given that Pos Securities is a very small firm, Woori Investment & Securities, set to launch on August 1st, is expected to start at 18th place, implying that the acquisition would allow them to leap several ranks. Should Chairman Yim consider acquiring Hanyang Securities, it could alleviate market skepticism surrounding the launch of Woori Investment & Securities. Previously, as chairman of NH NongHyup Financial Group, Chairman Yim led a transformation by acquiring Woori Investment & Securities, which was then vying for the top spot in the industry. However, his acquisition of the very small Pos Securities at Woori Financial Group was seen as merely an entry into the securities business. The potential opening of the securities M&A market signaled by Hanyang Securities’ sale further complicates Chairman Yim’s calculations. The industry remains open to the possibility of additional securities firms coming up for sale due to real estate PF woes. On July 12, during the group’s second-half management workshop, Chairman Yim set a goal of making Woori Investment & Securities a top 10 securities firm within ten years, ahead of its launch next month. Chairman Yim stated, “If all 14 subsidiaries of Woori Financial Group strive under the Woori name, we will regain market and customer trust and establish our status as a leading financial group. I will always run at the forefront, doing my best.” While Woori Financial Group has kept open the possibility of additional securities acquisitions, it has denied pursuing Hanyang Securities. A Woori Financial Group representative stated, “As explained in the conference call, we can review all market offerings and are open to additional securities acquisitions. However, we have no plans to pursue Hanyang Securities and have not taken steps towards its acquisition.” #HanyangSecurities #WooriFinancialGroup #YimJongyong #M&A #securitiesmarket #nonbankacquisitions #portfolioexpansion #financialindustry #TongyangLifeInsurance #ABLLifeInsurance #realestatePF #marketstrategy
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- Samsung Electronics vs. TSMC: Growing Gap, Lee Jae-yong's '2030 System Semiconductor No. 1' Faces Challenges
- Taiwan's TSMC recently reached a market capitalization of $1 trillion (about KRW 1,376 trillion), widening the gap with Samsung Electronics (about KRW 560 trillion) to more than double. The surge in demand for TSMC's foundry (semiconductor contract manufacturing) and packaging services, driven by the artificial intelligence (AI) semiconductor boom, contrasts sharply with Samsung Electronics' loss of market share in the global foundry market and weakening competitive edge in memory semiconductors such as high-bandwidth memory (HBM) for AI. Lee Jae-yong, Chairman of Samsung Electronics, has set the ambitious goal of making Samsung the world leader in system semiconductors by 2030, a target that now seems even more challenging. According to industry sources on July 14, while Samsung Electronics is facing stiff competition in its three main businesses—semiconductors, smartphones, and home appliances—TSMC's market cap surpassed $1 trillion as of July 8, ranking eighth globally. TSMC has effectively monopolized advanced semiconductor production for global fabless companies like Nvidia, Apple, and AMD, becoming the biggest beneficiary in the AI era after Nvidia. TSMC is also expected to boost profitability further by notifying customers of semiconductor price hikes. In contrast, Samsung Electronics' foundry business is suffering losses. The System LSI and Foundry Business Division recorded an operating loss of approximately KRW 2.949 trillion in 2023. The first quarter of this year saw an operating loss of KRW 890 billion, and the second quarter is estimated to have posted a similar loss of around KRW 390 billion. Moreover, as of the first quarter of 2024, TSMC's market share in the global foundry market stood at 62%, compared to Samsung's 13%, a gap that has widened to 49 percentage points, the largest since 2017. This widening gap explains why the '2030 System Semiconductor Vision' declared by Lee Jae-yong now seems more distant. In 2019, Lee Jae-yong announced the '2030 System Semiconductor Vision,' aiming to invest KRW 133 trillion by 2030 to achieve world leadership in system semiconductors. System semiconductors (foundry and non-memory) are less sensitive to economic fluctuations and have higher growth potential. Furthermore, the market size is more than double that of the memory semiconductor market, making it a new growth driver for Samsung. In 2022, Samsung took a step closer to Lee's vision by producing the world's first 3-nanometer semiconductor using the gate-all-around (GAA) process. However, difficulties in improving the yield (the ratio of finished products) of the 3-nanometer process have prevented Samsung from securing major customers. Song Myung-seop, a researcher at Hi Investment & Securities, predicted, "The sluggishness in 3-nanometer production will continue in the non-memory (system semiconductor) sector. However, performance will gradually improve with yield improvement and customer expansion in the 4-nanometer process." With six years remaining until the target year of 'System Semiconductor Vision 2030,' there are still many hurdles to overcome. #SamsungElectronics #TSMC #SystemSemiconductor #LeeJaeyong #2030Vision #FoundryMarket #SemiconductorIndustry #3Nanometer #4Nanometer #YieldImprovement
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- LG Electronics Busy Securing Lead in 'AI Home Electronics,' Cho Joo-wan Launches 'On-Device AI' with Qualcomm
- Cho Joo-wan, CEO of LG Electronics, is actively working to secure a leading position in the future AI home electronics market with 'On-Device AI.' Cho recently established an organization dedicated to On-Device AI, acquired the smart home platform company At Home, and met with Qualcomm's CEO on the 11th to discuss collaboration on On-Device AI chips. With LG Electronics expected to launch On-Device AI home electronics in the second half of this year, the alliance with Qualcomm is seen as a potential strategic move to gain an edge over Samsung Electronics. According to industry sources, Cho's meeting with Qualcomm CEO Cristiano Amon on the evening of the 11th is interpreted as an effort to enhance the performance of LG's dedicated AI chip 'DQ-C' using Qualcomm's high-performance semiconductors. On-Device AI refers to providing advanced AI functions, such as generative AI, directly on the device without going through a server. This allows for faster response times, lower power consumption, and stronger security by processing computations internally within the device. The introduction of home electronics utilizing On-Device AI is expected to open a new smart home market. The fast response times, high security, and low power consumption are significant advantages given the need to connect multiple devices and protect user privacy in smart homes. On-Device AI requires high technical capabilities as all computation processes are handled internally within the device, particularly necessitating neural processing unit (NPU) technology. An NPU is a semiconductor optimized for deep learning algorithm computations, which are central to AI. It enables rapid computation tasks while minimizing power consumption. Qualcomm is renowned for its advanced NPU technology. Its PC chip, the 'Snapdragon X Plus,' features an NPU capable of 45 trillion operations per second. In comparison, Apple's technology handles 38 trillion operations per second, while Intel is still developing an NPU with similar capabilities. Although details are not fully disclosed, it is assumed that Cho and Amon discussed ways to integrate Qualcomm's AI semiconductor technology into LG's home electronics products. There is a strong likelihood that Qualcomm's AI semiconductors will be applied to LG's dedicated AI chip 'DQ-C.' LG is seeking ways to remain competitive with Samsung in the AI chip race through its collaboration with Qualcomm. LG Electronics is making various preparations for the future AI home electronics market. On July 3, it acquired the smart platform company At Home, aiming to create an 'open ecosystem.' At Home's smart home hub, 'HOMI,' can connect to over 50,000 types of smart home appliances, allowing LG to include competing products in its smart home ecosystem. This gives LG a more versatile ecosystem compared to Samsung's 'SmartThings,' which focuses on integrating AI functions primarily within its smartphones. LG Electronics is expected to launch On-Device AI home electronics in the second half of this year. NH Investment & Securities researcher Lee Gyu-ha said, "AI-integrated home electronics are expected to attract market attention in the second half of the year, leading to improvements in LG Electronics' performance and valuation." An LG Electronics spokesperson stated, "We will launch an AI home that applies On-Device AI," adding, "We are preparing for the 'next stage' in the leading home electronics market." #LGElectronics #OnDeviceAI #ChoJoowan #Qualcomm #AIHomeElectronics #SmartHome #DQ_CChip #AtHome #OpenEcosystem #SmartHomeMarket
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- Park Jeong-won's Confidence in Doosan's Nuclear Business, Group Restructuring Aims to Rejoin Top 10
- Park Jeong-won, Chairman of Doosan Group, is strongly determined to reclaim its position among the top 10 conglomerates. According to business insiders on the 12th, the evaluation of Doosan Group’s business restructuring plan is largely based on Park's confidence in overseas nuclear power plant orders and the small modular reactor (SMR) business. Doosan Group announced a restructuring plan to merge Doosan Bobcat with Doosan Robotics through a spin-off from Doosan Enerbility, making Doosan Robotics a wholly-owned subsidiary. Doosan Bobcat, a subsidiary of Doosan Enerbility focused on the nuclear business, has been significantly profitable, contributing around KRW 1 trillion in operating profit and supporting its parent company. There are concerns about shareholder backlash over separating Doosan Bobcat from Doosan Enerbility. However, insiders suggest that Park's strong confidence in Doosan Enerbility's nuclear business drives the restructuring plan. To address potential shareholder opposition, Doosan Group has offered existing shareholders a stock buyback option at KRW 20,890 (the closing price on the 12th), effective until the end of September. If the buyback exceeds KRW 600 billion, the separation plan will be withdrawn. Park is confident that Doosan Enerbility's stock price will remain above KRW 20,890 by the end of September, indicating confidence in securing nuclear power plant orders, including from the Czech Republic, and future SMR projects. Doosan Enerbility is seen as a strong contender in the SMR and nuclear power sectors. Recently, it secured a contract to supply feeder pipes for Romania's Cernavoda Nuclear Power Plant Unit 1. The feeder pipes are crucial components for regulating reactor temperature. The company, along with Team Korea (including Korea Hydro & Nuclear Power), is actively pursuing nuclear plant orders in the Czech Republic, Poland, the UK, UAE, Turkey, Saudi Arabia, Sweden, and the Netherlands. Attention is particularly focused on the Czech nuclear project, with the Czech government expected to announce the preferred bidder soon. Winning this project could bolster Doosan Enerbility’s chances of securing additional international nuclear contracts, potentially driving up its stock price. In the SMR sector, Doosan Enerbility's partner, US-based NuScale Power, is in the final stages of negotiations to supply 24 SMRs to US IT infrastructure company Standard Power. Lee Min-jae, a researcher at NH Investment & Securities, noted that Doosan Enerbility is also in a favorable position to secure nuclear plant orders in Poland and the UAE, and is strengthening its competitiveness as an SMR manufacturer. Following the announcement of the restructuring plan on the 11th, the stock prices of Doosan Group affiliates, including Doosan Bobcat and Doosan Robotics, surged. Consequently, as of the closing price on the 12th, Doosan Group's market capitalization increased by 1.91% to KRW 31.5926 trillion. Doosan Robotics' closing price on the 12th was KRW 100,570, up 23.92% from the previous day, increasing its market cap by KRW 1.3223 trillion to KRW 6.8515 trillion. Doosan Bobcat rose by 5% to KRW 54,600, increasing its market cap by KRW 260.6 billion to KRW 5.4736 trillion. The market cap of Doosan Group's listed companies has recently risen significantly, reaching approximately KRW 31.5 trillion as of this date, placing it 11th among conglomerate market cap rankings. Doosan Group is rapidly closing in on Kakao Group, which ranks 10th with a market cap of KRW 37.9189 trillion. Once ranked outside the top 20, Doosan Group is now aiming to re-enter the top 10, driven by its nuclear business prospects. #ParkJeongwon #DoosanGroup #NuclearBusiness #CorporateRestructuring #SMR #DoosanEnerbility #DoosanBobcat #DoosanRobotics #MarketCapitalization #Top10Conglomerates
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- Semiconductor Aid Sparks Bipartisan Competition, KDB Capital Increase Likely: Green Light for Kang Seog-hoon
- As the government, the People Power Party, and the Democratic Party of Korea competitively push to promote the semiconductor industry, there is a rising possibility that the long-standing issue of expanding Korea Development Bank(KDB)’s capital limit, which has been frozen for a decade, may be resolved. If the capital increase is achieved, KDB Chairman Kang Seog-hoon expects to enhance the bank’s capacity for policy financing, thereby accelerating support for advanced strategic industries, a core initiative he has pursued. According to sources from the National Assembly on the 12th, the Democratic Party has proposed a bill to expand KDB’s capital, and both the Financial Services Commission (FSC) and the People Power Party are preparing related bills, signaling a positive outlook for increasing KDB’s capital limit. The FSC recently announced in a report to the National Assembly's Political Affairs Committee that it plans to amend the KDB Act to expand the bank’s capital limit from the current KRW 30 trillion to KRW 50 trillion. In alignment with the FSC's moves, the People Power Party is also reportedly preparing a bill to increase KDB's capital limit. On the 3rd, Democratic Party lawmaker Kim Tae-nyeon, ahead of the government and ruling party, introduced a bill to raise KDB’s capital limit to KRW 40 trillion. The bipartisan effort to increase KDB’s capital limit aims to enhance the bank’s policy financing capacity to bolster support for the semiconductor industry. As the chairman of the Democratic Party’s Special Committee on Livelihood Economy Crisis Measures, Kim Tae-nyeon has been at the forefront of semiconductor support, introducing a special law on the same day to provide KRW 100 trillion in policy financing for the semiconductor industry. The government utilizes KDB as the primary vehicle for policy financing to foster national strategic industries like semiconductors. However, the current capital limit of KDB is insufficient to support the government’s ambitious plans. The legal capital limit of KDB is KRW 30 trillion, but after capital increases this year, it reached KRW 26 trillion, utilizing 87% of the limit as of the end of March. To support the semiconductor industry, Chairman Kang has been advocating for an increase in KDB’s capital limit, which has remained unchanged for 10 years since 2014. In a press conference in June, Kang emphasized the need for capital expansion to support advanced strategic industries, stating, "It is the most urgent issue to be addressed." He mentioned discussions with the government and the National Assembly about increasing the legal capital limit and other measures such as retaining dividends and distributing dividends in kind. If the capital limit of KDB is expanded, Kang's plans to support advanced strategic industries are expected to gain momentum. It is known that increasing the legal capital limit by KRW 1 trillion generally creates a financing capacity of KRW 10 trillion. Since his appointment, Kang has operated a KRW 15 trillion "Super Gap Industry Support Program" to aid strategic industries, including semiconductors. In addition to the Super Gap Industry Support Program, Kang plans to create a new KRW 100 trillion support program for advanced strategic industries, aiming to invest in sectors such as semiconductors. Moreover, a KRW 17 trillion special program for semiconductor facility investment, offering low-interest loans at the level of government bond interest rates across the semiconductor ecosystem, including manufacturing facilities, fabless, post-processing, and equipment, is being prepared. A representative from Kim Tae-nyeon’s office told Business Post, "There is bipartisan and governmental agreement on the need for bold support for the semiconductor industry, leading to the push to amend the KDB Act. We expect the amendment to be processed within this year without any disagreement between the parties." #KDB #KoreaDevelopmentBank #SemiconductorSupport #BipartisanEffort #KangSeoghoon #PolicyFinancing #AdvancedIndustries #CapitalIncrease #KDBAct #SouthKorea #FinancialSupport
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- [Restructuring Tsunami] Shinsegae Accepts Voluntary Retirement, No Safe Zone in Chung Yong-jin’s Restructuring
- As high oil prices, high interest rates, and a strong dollar—known collectively as the 'three highs'—persist, both export and domestic companies are facing increasing difficulties. With the exception of a few industries such as artificial intelligence (AI) and semiconductors, most sectors are experiencing significant challenges. Companies burdened by financial pressures are resorting to large-scale restructuring, including selling off non-core businesses and reallocating personnel, to find self-rescue measures. The government has also unveiled a 'Dynamic Economy Roadmap' to transition from resource-based industries to productivity-based ones, supporting corporate restructuring efforts. We will cover how companies are responding to these changes. [Editor’s Note] Series Outline: 1. Korean Economy 'Illusion Warning': Limits Exposed, Industry Rebalancing in Full Swing 2. 'AI Wave': Korea Development Bank's Growing Role, Kang Seog-hoon's Deliberations on Selective Focus 3. Shin Dong-bin's Urgent New Business Investments: Solidifying Lotte Group’s Core Restructuring 4. H2 Real Estate PF Restructuring Intensifies, Heightening Construction Industry Tension 5. Lotte Chemical's Major Shift to Battery Materials and Hydrogen Energy, Lee Hoon-ki's Bold Move Amid Structural Petrochemical Downturn 6. Savings Bank Industry Tightening Belt: Restructuring and Elusive M&A Targets 7. Shinsegae Group's Potential Restructuring Following Personnel Renewal, All Eyes on Chung Yong-jin's Decisions 8. KT’s Kim Young-seop Focuses on July Media Restructuring: Can He Alleviate Content Burden? 9. Public Enterprise Restructuring Retreats? Energy Crisis and Real Estate Policies Inflate Public Institution Debt 10. New NCSoft Concentrates on Core Competencies, Park Byung-moo Accelerates Workforce and Organizational Slimming 11. Big Tech AI 'Boom' and Large-Scale Restructuring 'Chill' Continues ======================================================================== Chung Yong-jin, Chairman of Shinsegae Group, has focused on personnel reshuffling and restructuring in the four months since his promotion. This is not limited to executive-level personnel. Three affiliates of Shinsegae Group have received applications for voluntary retirement for the first time in their history. Amid internal and external calls for substantial changes within Shinsegae Group, Chairman Chung seems to have concluded that significant changes are unlikely without personnel reshuffling and restructuring. According to a comprehensive investigation by Business Post on the 11th, no affiliates within the group are free from the wave of personnel reshuffling and restructuring since Chairman Chung's promotion. Within approximately 100 days of his appointment as chairman, Chung replaced the heads of three affiliates. Replacing three CEOs in such a short period, especially outside the regular executive reshuffling period, is unusual. Recently, several affiliates have also undergone voluntary retirements. On June 30, Emart merged with Emart Everyday, and both companies received voluntary retirement applications ahead of the merger. Emart received voluntary retirement applications in April, and Emart Everyday did so in June, marking the first time both companies have implemented such a program. It's not just Emart and Emart Everyday that received applications for voluntary retirement for the first time. SSG.com is also accepting voluntary retirement applications for the first time since its establishment in 2018. SSG.com is implementing voluntary retirement for employees with over two years of service until the 19th, effectively targeting all employees except new hires. The atmosphere related to downsizing was sensed as soon as Choi Hoon-hak was appointed CEO of SSG.com, which was accompanied by organizational restructuring. In June, Chairman Chung appointed Choi Hoon-hak, Executive Vice President and Head of the Sales Division, as CEO of SSG.com. Concurrently, SSG.com restructured from four divisions to two, integrating the Marketing Division into the Sales Division and placing support departments directly under the CEO. When organizational restructuring for efficiency occurs, concerns about surplus personnel inevitably follow, leading to predictions of voluntary retirements. These predictions became reality as voluntary retirements proceeded. The efficiency efforts at SSG.com might not end with voluntary retirements. The company needs to sell shares worth around 1 trillion won to a third party by December 31, 2021, as agreed with financial investors (FIs). Affinity Equity Partners and BRV Capital Management, the private equity firms involved as financial investors in SSG.com, must sell all SSG.com shares to one or more third parties designated by Emart and Shinsegae by the end of this year. If a buyer for the SSG.com shares is not found, it could pose a significant burden for Shinsegae Group. Some predict that finding an investor for SSG.com might be challenging, suggesting that preemptive efficiency measures might follow to prepare for this impact. In contrast to the internal promotion at SSG.com, Chairman Chung brought in external talent for the CEO position at Gmarket, hiring Chung Hyung-kwon from Alibaba Korea. He also recruited Kim Jung-woo from Naver as Chief Product Officer (CPO) and Oh Cham from Coupang as Head of the Tech Division, which was separated into a distinct division. These decisions aim to bring a new perspective to Gmarket, possibly leading to a 'selection and concentration' strategy. This indicates that restructuring might also occur at Gmarket following SSG.com. Chairman Chung plans to reduce the base salary proportion and increase the performance-based pay for executives starting with the new CEO appointments at SSG.com and Gmarket. The performance-based pay proportion, currently around 20%, is expected to increase to 50%. Analysts believe Shinsegae Group might undertake high-intensity restructuring, targeting underperforming areas in each affiliate as needed, beginning with personnel reshuffling. Heungkuk Securities stated in a report on the 11th that "Emart needs bold and strong restructuring measures." #ShinsegaeGroup #ChungYongjin #Restructuring #VoluntaryRetirement #CorporateChange #CEOReplacement #BusinessStrategy #PersonnelReshuffling
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- Which Parts of KT Will Be Restructured?
- As high oil prices, high interest rates, and a strong dollar—known collectively as the 'three highs'—persist, both export and domestic companies are facing increasing difficulties. With the exception of a few industries such as artificial intelligence (AI) and semiconductors, most sectors are experiencing significant challenges. Companies burdened by financial pressures are resorting to large-scale restructuring, including selling off non-core businesses and reallocating personnel, to find self-rescue measures. The government has also unveiled a 'Dynamic Economy Roadmap' to transition from resource-based industries to productivity-based ones, supporting corporate restructuring efforts. We will cover how companies are responding to these changes. [Editor’s Note] Series Outline: 1. Korean Economy 'Illusion Warning': Limits Exposed, Industry Rebalancing in Full Swing 2. 'AI Wave': Korea Development Bank's Growing Role, Kang Seog-hoon's Deliberations on Selective Focus 3. Shin Dong-bin's Urgent New Business Investments: Solidifying Lotte Group’s Core Restructuring 4. H2 Real Estate PF Restructuring Intensifies, Heightening Construction Industry Tension 5. Lotte Chemical's Major Shift to Battery Materials and Hydrogen Energy, Lee Hoon-ki's Bold Move Amid Structural Petrochemical Downturn 6. Savings Bank Industry Tightening Belt: Restructuring and Elusive M&A Targets 7. Shinsegae Group's Potential Restructuring Following Personnel Renewal, All Eyes on Chung Yong-jin's Decisions 8. KT’s Kim Young-seop Focuses on July Media Restructuring: Can He Alleviate Content Burden? 9. Public Enterprise Restructuring Retreats? Energy Crisis and Real Estate Policies Inflate Public Institution Debt 10. New NCSoft Concentrates on Core Competencies, Park Byung-moo Accelerates Workforce and Organizational Slimming 11. Big Tech AI 'Boom' and Large-Scale Restructuring 'Chill' Continues ======================================================================== Despite expectations for a major organizational overhaul, KT CEO Kim Young-shub, who took office in August last year, conducted only a minor restructuring earlier this month. This included the establishment of the Brand Strategy Office and the Safety and Health General Management Division, as well as the recruitment of a new AI core technology head. Industry analysts believe that this move is part of KT’s strategy to strengthen its AI business, especially after announcing a multi-billion won AI investment partnership with Microsoft. However, there are speculations about further restructuring targeting subsidiaries and affiliates with low profitability both domestically and internationally. There are expectations that the focus will be on underperforming overseas subsidiaries in countries like Russia, Rwanda, Singapore, and Vietnam, as well as robot business initiatives launched under former CEO Koo Hyun-mo. On July 11, the telecommunications industry suggested that KT might be preparing to restructure its poorly performing overseas subsidiaries. KT's Singaporean subsidiary, KT ES, reported a net loss exceeding KRW 124.8 billion last year. KT ES is a local investment business. The Rwandan subsidiary, Rwanda Networks, also reported a loss of KRW 50 billion last year, following a similar loss in 2022. This subsidiary primarily focuses on local network installation and management. The Russian investment subsidiary, KT RUS, is virtually dormant due to the Russia-Ukraine war, recording a net loss of KRW 378 million last year with no sales. In Vietnam, three subsidiaries—KT DX Vietnam, Aqua Retail Vietnam, and KT Healthcare Vina—also reported losses of KRW 20.7 million, KRW 248 million, and KRW 721 million, respectively, last year. KT DX Vietnam is involved in software development, Aqua Retail in online vouchers, and KT Healthcare Vina in medical services. The business conditions of these overseas subsidiaries show no signs of improvement. According to KT's quarterly consolidated report for the first quarter of this year, the Russian subsidiary KT RUS and the Vietnamese healthcare subsidiary KT Healthcare Vina had no sales as of March 31. KT ES in Singapore reported a net loss of KRW 4.568 billion in the first quarter. Previously, KT liquidated Epsilon, a UAE-based investment business, due to deteriorating business conditions at the end of last year. They also liquidated the Russian data service company KT Primorye IDC due to the Ukraine war and worsening business conditions. Industry insiders believe KT is likely to liquidate other overseas subsidiaries that continue to record losses. Additionally, there are speculations about adjusting the number of employees at KT’s headquarters for management efficiency, as well as further restructuring of unprofitable robot-related subsidiaries. KT's headquarters employs nearly 20,000 people. While the number has gradually decreased from around 23,000 in 2019 to 19,037 in 2023, it is still considered large compared to competitors SK Telecom, which has about 5,500 employees, and LG Uplus, which has about 10,000 employees. KT plans to hire 1,000 new employees this year to strengthen its AI and digital transformation (DX) business areas. This could lead to personnel adjustments or redeployments in less profitable business areas within KT. KT is also considering restructuring its robot business subsidiaries. The robot business was strongly promoted by former CEO Koo Hyun-mo and was the first among domestic telecom companies to establish a dedicated organization for it. CEO Kim is preparing to exit the loss-making robot business. In April, KT downgraded the Robot Business Division to the Robot Business Unit under the Strategic New Business Planning Division. The company is reportedly phasing out its robot sales, rental, and maintenance operations. DB Financial Investment recently reported that KT’s restructuring of low-profit businesses (such as robotics) and efficiency improvements in sales and labor costs could lead to profit improvements for both the parent company and its subsidiaries. Meanwhile, on July 1, KT implemented an organizational restructuring that established the Brand Strategy Office and the Safety and Health General Management Division directly under the CEO. Yoon Tae-sik was appointed head of the new Brand Strategy Office, and Lim Hyun-kyu was appointed head of the Safety and Health General Management Division. Additionally, Shin Dong-moo, former head of NCSoft AI Tech Center, was appointed head of the newly established AI Core Technology Unit. #KT #OrganizationalRestructuring #KimYoungshub #GlobalBusiness #AIInvestment #Microsoft #OverseasSubsidiaries #RobotBusiness #CostEfficiency #TelecommunicationsIndustry
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- Increased Minority Opinions for Rate Cuts, But Rhee Chang-yong Remains Cautious Due to Rising Housing Prices
- During the July Monetary Policy Committee meeting, it was observed that there are increasing voices among the committee members suggesting that the possibility of a rate cut should be considered. This shift in the committee members' opinions, coupled with a slowdown in the inflation rate, is fueling market expectations for a rate cut. However, Bank of Korea Governor Rhee Chang-yong expressed caution regarding market expectations for a rate cut, citing rising real estate prices in Seoul and the consequent increase in household loans. As of the Monetary Policy Committee meeting on the 11th, the number of committee members advocating for a rate cut within the next three months increased from one to two, prompting market speculation that a rate cut might be approaching. Governor Rhee announced the decision to maintain the interest rate at 3.5% for the 12th consecutive time during a press conference. He stated, "Out of the six committee members excluding myself, four voted to maintain the rate even after three months, while the remaining two suggested keeping the possibility of a rate cut open." Governor Rhee explained that the committee members who were open to the idea of a rate cut believe that the significant decrease in the inflation rate sets the stage for discussing a potential rate cut. Along with the increase in minority opinions regarding a rate cut, the Monetary Policy Statement also hinted at the possibility of a policy shift in the near future. The statement included a new phrase indicating that "the timing of a rate cut will be reviewed," in addition to maintaining the current monetary tightening stance. This change in the committee's stance suggests that the conditions for a monetary policy shift are gradually being met, as the domestic inflation rate is progressively stabilizing towards the Bank of Korea's target of 2%. The domestic Consumer Price Index (CPI), which had risen to 3% in February and March this year, decreased to 2.9% in April and further down to 2.4% in June. Governor Rhee, during a plenary session of the National Assembly's Planning and Finance Committee on the 9th, positively evaluated the movement towards a 2% inflation rate. Despite these changes within the committee, the possibility of an August rate cut, which some market participants had hoped for, seems to have diminished due to the rise in housing prices. With the slowdown in domestic inflation, there were speculations that Governor Rhee might attempt a rate cut before the US Federal Reserve (Fed) in August, emphasizing the differentiation in monetary policy. The US, which greatly influences domestic monetary policy, is also seeing a slowdown in inflation and a stable unemployment rate, increasing the possibility of a Fed rate cut in September. This has lent some support to the speculation of a preemptive rate cut by the Bank of Korea. However, Governor Rhee drew a clear line against market expectations for an August rate cut during the press conference, stating that the rapid rise in real estate prices in the metropolitan area could exacerbate household loan issues if a rate cut were to fuel this trend. Governor Rhee stated, "The rise in metropolitan housing prices has a significant impact on household debt and financial stability. All committee members agreed that we must avoid making policy mistakes by sending the wrong signal for a rate cut, which could trigger housing price increases." Ultimately, Governor Rhee emphasized that as domestic inflation shows signs of slowing, the focus of monetary policy is shifting from inflation to household debt. He indicated that the timing of a rate cut would be decided after considering various factors, including the trend of inflation and household debt. As a result, the securities industry is increasingly predicting that the Monetary Policy Committee will begin to lower interest rates starting in October. Park Sang-hyun, a researcher at HI Investment & Securities, stated after the committee meeting, "The possibility of an August rate cut by the Bank of Korea is practically off the table. Governor Rhee is likely to observe whether housing prices stabilize again during August and September, pushing the rate cut timing to October or November." Ryu Jin-yi, a researcher at SK Securities, noted, "Implementing a rate cut in August, when demand for loans is expected to surge before the implementation of the second phase of the Debt Service Ratio (DSR) stress test in the second half of the year, could be a very burdensome decision. Therefore, it is much more likely that the Bank of Korea will lower rates in October rather than August to achieve 'financial stability.'" #BankofKorea #RheeChangyong #InterestRates #MonetaryPolicy #Inflation #HousingPrices #HouseholdDebt #RateCut #FinancialStability #KoreanEconomy #EconomicOutlook #MonetaryPolicyCommittee #AugustRateCut #OctoberRateCut #FinancialMarkets
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- [Restructuring Tsunami] Shin Dong-bin's Urgent New Business: Solidifying Lotte's Core Restructuring
- As high oil prices, high interest rates, and a strong dollar—known collectively as the 'three highs'—persist, both export and domestic companies are facing increasing difficulties. With the exception of a few industries such as artificial intelligence (AI) and semiconductors, most sectors are experiencing significant challenges. Companies burdened by financial pressures are resorting to large-scale restructuring, including selling off non-core businesses and reallocating personnel, to find self-rescue measures. The government has also unveiled a 'Dynamic Economy Roadmap' to transition from resource-based industries to productivity-based ones, supporting corporate restructuring efforts. We will cover how companies are responding to these changes. [Editor’s Note] Series Outline: 1. Korean Economy 'Illusion Warning': Limits Exposed, Industry Rebalancing in Full Swing 2. 'AI Wave': Korea Development Bank's Growing Role, Kang Seog-hoon's Deliberations on Selective Focus 3. Shin Dong-bin's Urgent New Business Investments: Solidifying Lotte Group’s Core Restructuring 4. H2 Real Estate PF Restructuring Intensifies, Heightening Construction Industry Tension 5. Lotte Chemical's Major Shift to Battery Materials and Hydrogen Energy, Lee Hoon-ki's Bold Move Amid Structural Petrochemical Downturn 6. Savings Bank Industry Tightening Belt: Restructuring and Elusive M&A Targets 7. Shinsegae Group's Potential Restructuring Following Personnel Renewal, All Eyes on Chung Yong-jin's Decisions 8. KT’s Kim Young-seop Focuses on July Media Restructuring: Can He Alleviate Content Burden? 9. Public Enterprise Restructuring Retreats? Energy Crisis and Real Estate Policies Inflate Public Institution Debt 10. New NCSoft Concentrates on Core Competencies, Park Byung-moo Accelerates Workforce and Organizational Slimming 11. Big Tech AI 'Boom' and Large-Scale Restructuring 'Chill' Continues ======================================================================== Lotte Group continues to undergo various degrees of restructuring, mainly focusing on its core retail subsidiaries. Given the increased financial demands of new ventures, it seems the primary objective is to reduce expenditures in companies with low prospects for immediate performance improvement. Shin Dong-bin, Chairman of Lotte Group, is strengthening his commitment to four new key businesses as future revenue sources, indicating that the frequency of restructuring within Lotte Group's subsidiaries is likely to increase. As of the 9th, a look at the atmosphere within Lotte Group's subsidiaries reveals ongoing restructuring across the retail subsidiaries. Hotel Lotte's Duty-Free Division (Lotte Duty Free) recently declared an emergency management system. This marks the third time in the past seven years that Lotte Duty Free has entered such a system, following the THAAD (Terminal High Altitude Area Defense) retaliation by the Chinese government in 2017 and the COVID-19 pandemic in 2020. The previous reasons for Lotte Duty Free's belt-tightening were due to rapid changes in the external business environment. However, now the analysis suggests that the fundamental cause is a shift in tourist consumption patterns, indicating a decline in shopping at duty-free stores. Lotte Duty Free's CEO, Kim Ju-nam, posted on the company intranet that they would implement drastic restructuring measures, including a 20% salary cut for all executives and voluntary retirement for all employees, highlighting the company's dire situation. Lotte Duty Free is not the only retail subsidiary in Lotte Group undergoing restructuring. Lotte Shopping, considered the elder sibling among Lotte's retail subsidiaries, has undergone several rounds of restructuring in recent years. Lotte Mart, the mart division, conducted three rounds of voluntary retirement over the past three years since 2021. Lotte Department Store, the department store division, also implemented voluntary retirement in the first quarter, and the e-commerce division, Lotte On, which has been recording continuous losses since its inception, recently announced voluntary retirement as well. The scale of new hires to compensate for the reduction in personnel has also noticeably changed. According to the '2023 Sustainability Management Report' recently published by Lotte Shopping, the four main divisions—Lotte Department Store, Lotte Mart, Lotte Super, and Lotte On—hired a total of 169 new employees last year. Considering that 778 new employees were hired throughout 2022, this represents a 78% reduction in hiring. The hiring scale of Lotte Mart, Lotte Super, and Lotte On has decreased by 91.7%, 94.4%, and 84.7%, respectively, compared to the previous business year. The situation is similarly bleak for Lotte Shopping's subsidiaries. Lotte Cultureworks, which operates Lotte Cinema, conducted voluntary retirement for employees with three or more years of service at the end of last year. This was the second time since 2021 that Lotte Cultureworks accepted voluntary retirements. OurHomeShopping, which operates Lotte Home Shopping, also conducted voluntary retirement in September 2023 for employees aged 45 and older with more than five years of service. While the retail subsidiaries are controlling costs through staff reductions, the chemical subsidiaries are fundamentally restructuring their business strategies. Lotte Chemical, a leading chemical subsidiary, is expected to reorganize its struggling overseas subsidiaries. Specifically, there is speculation about the possible sale of the Malaysian production base, Lotte Chemical Titan (LC Titan). Lee Hun-ki, Head of Lotte Group Chemical HQ and CEO of Lotte Chemical, mentioned during a recent 'CEO Investor Day' with major institutional investors and analysts, the potential sale of inefficient assets and strategic business withdrawals. Given the current situation of Lotte Group, it is not surprising that restructuring is happening across various subsidiaries rather than being limited to specific ones. Chairman Shin Dong-bin is focusing on four future growth areas: Health & Wellness, Mobility, Sustainability, and New Life Platform, investing heavily in these sectors. Lotte BioLogics and Lotte Healthcare are representative subsidiaries in the Health & Wellness sector, and the investments here are significant. Lotte Corporation recently decided to invest KRW 120 billion to support Lotte BioLogics' plant construction in Songdo, Incheon. The first payment was completed on the 9th, and the second payment is scheduled for August 20th. Lotte Corporation has invested a total of approximately KRW 470 billion in Lotte BioLogics over the past two years since its establishment. In November last year and April this year, Lotte Corporation invested a total of KRW 50 billion in Lotte Healthcare to enhance its competitiveness. The total investment by Lotte Corporation in Lotte Healthcare amounts to KRW 120 billion. Lotte Corporation continues to periodically inject funds into its underperforming subsidiaries or those pioneering new businesses. From the group's perspective, to secure funds for new growth centered on the four key businesses, there is an increasing need to reduce unnecessary expenditures in the core subsidiaries, such as retail and chemical, which are considered the backbone of Lotte Group. Considering the current state of the retail and chemical subsidiaries and the difficulty in expecting a short-term improvement in the business environment, the intensity of Lotte Group's restructuring is likely to increase further. #LotteGroup #ShinDongbin #restructuring #retail #chemicals #futurebusiness #costreduction #LotteShopping #LotteChemical #investment
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- Korean Air’s Mixed Q2 Results Highlight Cargo Business Strength Amid LCC Challenges
- In the first half of this year, Korean Air underperformed low-cost carriers (LCCs) in passenger recruitment but excelled in overall business performance. This outcome underscores the effectiveness of Korean Air's diversified strategy, which includes both passenger and cargo operations. According to industry analysts, LCCs are expected to see significant drops in Q2 operating profits due to the off-season. For example, Jeju Air’s operating profit for Q2 is estimated at KRW 19.8 billion, a 74.9% decrease from the previous quarter. Jin Air and T’way Air are projected to see declines of 82.6% and 86.5%, respectively. While a seasonal dip in performance is typical, increased competition and supply, along with cost pressures from inflation, rising fuel prices, a weak Korean won, and higher airport fees, are additional challenges. In contrast, Korean Air is estimated to have a relatively strong Q2, with an average operating profit forecast of KRW 462.2 billion, only a 14% decrease from the previous quarter’s KRW 537.5 billion, according to FnGuide. Despite lower passenger numbers compared to LCCs, Korean Air’s robust performance is attributed to its cargo business. The demand and rates for air cargo have been rising. In June, Incheon International Airport’s cargo volume grew by 11% year-on-year, and Q2 air cargo volumes increased by 12% compared to the same period last year. The Shanghai Air Freight Index also rose by 20% in Q2. Analyst Lee Seo-yeon from Sang Sangin Securities noted that increased e-commerce from China, higher sea freight rates, and recovering exports of key items like semiconductors and displays have boosted air cargo performance. Unlike LCCs, Korean Air’s operation of cargo routes has been a significant advantage. During the COVID-19 pandemic, Korean Air expanded its cargo operations, converting passenger planes into freighters. In 2022, Korean Air’s cargo revenue surged to KRW 7.7244 trillion, accounting for 57.6% of total sales and contributing to a record operating profit of KRW 2.8306 trillion. #KoreanAir #LCC #Q2Results #CargoBusiness #AirlineIndustry #Aviation #BusinessPerformance #PassengerTraffic #AirCargo #EconomicImpact
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- Kim Beom-soo First Summoned by Prosecutors, Expanding 'Judicial Risks' to Kakao Founder
- Kim Beom-soo, Chairman of the Kakao Management Innovation Committee, has been summoned by prosecutors, reigniting the judicial risks surrounding Kakao. The Seoul Southern District Prosecutors' Office's Financial Investigation Division 2 announced on the 9th that they had summoned Chairman Kim for questioning regarding alleged violations of the Capital Market Act. This is the first time prosecutors have summoned Chairman Kim in connection with allegations of stock price manipulation involving SM Entertainment. Previously, the Financial Supervisory Service summoned Chairman Kim in November last year for the same allegations. At that time, the Financial Supervisory Service conducted an intensive 16-hour investigation, marking the first instance of summoning the head of a large corporate group. Subsequently, the Financial Supervisory Service forwarded the case to the prosecution with an indictment recommendation. After a supplementary investigation, the prosecutors summoned Chairman Kim for the first time in eight months. Kakao is under suspicion of obstructing a public tender offer by its competitor, Hybe, during its acquisition process of SM Entertainment in February last year. It is alleged that Kakao manipulated the stock price of SM Entertainment to raise it above the public tender offer price of KRW 120,000. Additionally, Kakao is accused of failing to report to the financial authorities after holding over 5% of SM Entertainment shares with private equity firm One Asia Partners, thereby violating disclosure obligations. Prosecutors are investigating whether Chairman Kim's orders or approval were involved in the stock price manipulation of SM Entertainment. The judicial risks surrounding Kakao's management have now extended to its founder, Chairman Kim. Recently, the prosecution reportedly questioned Hwang Tae-sun, Chief Representative of Kakao CA Council. Former Kakao Entertainment CEO Kim Sung-soo and Kakao Entertainment's Head of Investment Strategy, Lee Jun-ho, were also summoned for investigation regarding the alleged overpriced acquisition of a drama production company. As Chairman Kim's judicial risks become prominent, Kakao Group is on edge. Chairman Kim returned to management at the end of last year and has been fully committed to the group's renewal efforts. There are concerns that the prosecution's full-scale investigation into key executives leading the renewal efforts could undermine the momentum of these reforms. There is also speculation that overseas mergers and acquisitions (M&A) could be hampered. Chairman Kim officially returned to management in November last year with the title of Chairman of the Management Innovation Committee. He has spearheaded extensive reforms, including reorganizing the group's control tower centered around the CA Council and restructuring subsidiaries through eight emergency management meetings. #KimBeomSoo #Kakao #judicialrisks #SMEntertainment #stockmanipulation #prosecutors #CapitalMarketAct #financialinvestigation #managementrenewal #overseasM&A
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- [Restructuring Tsunami] New AI Wave Expands Korea Development Bank's Role
- As high oil prices, high interest rates, and a strong dollar—known collectively as the 'three highs'—persist, both export and domestic companies are facing increasing difficulties. With the exception of a few industries such as artificial intelligence (AI) and semiconductors, most sectors are experiencing significant challenges. Companies burdened by financial pressures are resorting to large-scale restructuring, including selling off non-core businesses and reallocating personnel, to find self-rescue measures. The government has also unveiled a 'Dynamic Economy Roadmap' to transition from resource-based industries to productivity-based ones, supporting corporate restructuring efforts. We will cover how companies are responding to these changes. [Editor’s Note] Series Outline: 1. Korean Economy 'Illusion Warning': Limits Exposed, Industry Rebalancing in Full Swing 2. 'AI Wave': Korea Development Bank's Growing Role, Kang Seog-hoon's Deliberations on Selective Focus 3. Shin Dong-bin's Urgent New Business Investments: Sealing Lotte Group’s Core Restructuring 4. H2 Real Estate PF Restructuring Intensifies, Heightening Construction Industry Tension 5. Lotte Chemical's Major Shift to Battery Materials and Hydrogen Energy, Lee Hoon-ki's Bold Move Amid Structural Petrochemical Downturn 6. Savings Bank Industry Tightening Belt: Restructuring and Elusive M&A Targets 7. Shinsegae Group's Potential Restructuring Following Personnel Renewal, All Eyes on Chung Yong-jin's Decisions 8. KT’s Kim Young-seop Focuses on July Media Restructuring: Can He Alleviate Content Burden? 9. Public Enterprise Restructuring Retreats? Energy Crisis and Real Estate Policies Inflate Public Institution Debt 10. New NCSoft Concentrates on Core Competencies, Park Byung-moo Accelerates Workforce and Organizational Slimming 11. Big Tech AI 'Boom' and Large-Scale Restructuring 'Chill' Continues ======================================================================== As AI emerges as a central theme across all industrial sectors, the government is stepping up to support corporate AI innovation. Kang Seog-hoon, Chairman of Korea Development Bank (KDB), is preparing to invest in fostering future growth engines for national advanced industries in line with government support policies. However, with KDB’s capital ceiling nearly reached and limitations in supporting all high-tech sectors, efficient allocation of limited resources will be a primary task for Chairman Kang. According to the financial sector on the 8th, KDB is preparing to launch a KRW 500 billion ‘AI Korea Fund’ this year to support AI technology development and ecosystem nurturing. The AI Korea Fund will invest in companies involved in cloud computing, AI model development, and AI applications. Chairman Kang plans to expand this fund by KRW 500 billion annually, aiming for a total of KRW 1.5 trillion over three years. To further support the AI industry, Kang intends to establish a new AI sector within KDB’s advanced industry support program, ‘Super Gap Industry Support Program,’ with a funding limit of KRW 3 trillion by the end of this year. Previously, KDB's support focused on semiconductors, displays, secondary batteries, biotechnology, and nuclear power as the five main industries. AI has now been added to this list. KDB’s proactive support for advanced industries, including AI, stems from its rich experience as a national policy bank in rapidly fostering future key industries. KDB has played a critical role in national industrial development during the industrialization era by supporting key industries through policy finance. From fostering heavy and chemical industries in the 1970s, nurturing parts and materials industries and localizing machinery in the 1980s, supporting advanced industries and technological improvement in the 1990s, to establishing a venture ecosystem in the 2000s, KDB has been at the forefront. Given the direct link between AI competitiveness and national competitiveness, the government is placing KDB at the forefront of policy finance support as demand for funding and investment in related industries surges. Since his early days in office, Chairman Kang has emphasized the need for KDB to transform in line with industrial changes to become a key institution responsible for 1% of Korea’s economy, focusing on nurturing strategic advanced industries. He established a KRW 15 trillion Super Gap Industry Support Program and has consistently increased investment and financing in innovation growth sectors from KRW 27.4 trillion in 2022 to KRW 32 trillion in 2023. In a press conference marking his second anniversary in June, Kang announced the AI Korea Fund, emphasizing AI's significant impact on the economy, industry, and society, and expressed strong commitment to supporting national AI competitiveness in collaboration with the government. Major companies also recognize the need for large-scale investment in AI, highlighting KDB’s growing importance amid a transformative period for domestic industries. Recent media reports of KDB’s discussions on large-scale investments with Samsung Group and SK Group, despite KDB’s denial, reflect its elevated status in the financial sector. However, Chairman Kang faces challenges with KDB’s limited resources. The bank’s statutory capital limit has been capped at KRW 30 trillion for a decade, with less than KRW 2 trillion remaining as of this year, making it difficult to secure sufficient policy funds. Efficiently executing policy finance within these constraints will require strategic resource allocation through 'selection and concentration.' Chairman Kang emphasized the urgency of expanding KDB’s capital to support advanced strategic industries, stating at the June press conference that “this is the most pressing issue” and that discussions with the government and the National Assembly would explore various measures, including increasing the statutory capital limit, retaining dividends, and in-kind dividends. #Restructuring #KoreaDevelopmentBank #KangSeoghoon #AIWave #IndustrialBank #EconomicPolicy #CorporateRestructuring #FinancialStrategy #TechnologyInvestment #GovernmentSupport
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- Youngone's Share Buyback Decision Sparks Controversy Over Sung Ki-hak and Sung Rae-eun's 'Scheme'
- Sung Ki-hak, Chairman of Youngone Corporation, has recently faced scrutiny over the issue of equity succession after officially designating his second daughter, Sung Rae-eun, as the successor and Vice Chairman of Youngone Holdings. The controversy arises as the government promotes a corporate value enhancement program called ‘Value-Up,’ which includes discussions on tax benefits such as inheritance and corporate taxes. Analysts suggest that Youngone Group might be exploring ways to reduce costs associated with inheritance and gifts through the Value-Up program. On June 8th, it was observed that Youngone Group might consider implementing the Value-Up program to finalize the equity transfer process for Youngone Holdings. In June, Youngone announced plans to repurchase KRW 50 billion worth of its own shares for the first time in seven years, citing shareholder value enhancement as the reason. Historically, Youngone has been passive in shareholder returns, leading to dissatisfaction among its shareholders. As of the end of the first quarter, Youngone held over KRW 980 billion in cash and cash equivalents, providing ample resources for shareholder returns. However, its dividend payout ratio announced in March was only about 10.7%, significantly lower compared to its peers like Fila Holdings (143.7%) and Hansae Co., Ltd. (17.7%). Unlike its peers, Youngone has not implemented other shareholder-friendly policies beyond regular dividends. For instance, F&F announced plans to use 20% of its net profit for cash dividends and share buybacks until 2026. Industry analysts speculate that Youngone's decision to repurchase shares after seven years may be aimed at securing tax benefits for inheritance and gift taxes through the Value-Up program. Chairman Sung holds a 16.77% stake in Youngone Holdings, valued at over KRW 200 billion based on the June 8th share price. With an inheritance and gift tax rate of up to 50%, this could result in tax liabilities exceeding KRW 100 billion. Although Sung Rae-eun holds a majority stake in YMSA, the largest shareholder of Youngone Holdings, her direct stake in Youngone Holdings is only 0.03%. Given that YMSA holds less than 30% of Youngone Holdings, a stable control of the group would likely require her to inherit a larger stake. Considering these factors, it is not surprising that the Youngone Group might be contemplating the Value-Up program to address equity succession concerns. The government has hinted at inheritance tax reforms related to the Value-Up program in its upcoming tax law amendments, including the abolition of the premium evaluation for major shareholders. This reform could significantly reduce the costs associated with equity transfers for Chairman Sung. Youngone, despite being undervalued with a PBR (Price-to-Book Ratio) of less than 1, has not shown a shareholder-friendly approach until its recent designation as a major corporation. Youngone’s stock, which peaked at KRW 67,900 in August last year, has since declined to around KRW 37,550 as of June 8th. With the equity succession issue becoming apparent, it is plausible that the group is considering utilizing the Value-Up program for tax benefits. Youngone has faced criticism for employing various tactics to reduce gift taxes. In March last year, Youngone Holdings changed its dividend policy from paying 10% of consolidated net income to paying 50% of separate net income. Although the payout ratio increased, the available profits for dividends decreased, effectively reducing the dividend amount. Some shareholders suspect that this move was aimed at saving gift taxes for Vice Chairman Sung. The day after Youngone Holdings announced the dividend policy change, its stock price dropped by about 8%. Seventeen business days later, Chairman Sung decided to transfer 50.1% of YMSA's shares to Vice Chairman Sung. Shareholders believe that the decline in Youngone Holdings' stock price decreased the asset value of YMSA, thereby reducing the gift tax. There were also allegations that Vice Chairman Sung financed the gift tax through internal transactions within Youngone. She borrowed part of the gift tax from YMSA, which sold a building in Daegu to Youngone to raise the necessary funds, suggesting an internal transaction to manage the tax liability. However, it is still uncertain whether Youngone Group will receive tax benefits related to equity succession through the Value-Up program, as the specific details of these benefits have not yet been finalized. #Youngone #shareholdervalue #SungKihak #SungRaeun #ValueUp #equitysuccession #taxbenefits #dividendpolicy #inheritancetax #corporategovernance
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- Daewoo E&C’s Domestic and Overseas Orders Disappoint, Baek Jung-wan Looks to July for Turnaround
- Daewoo E&C had a disappointing first half of 2024, failing to secure new urban redevelopment projects and seeing a decline in overseas orders. CEO Baek Jung-wan, in the final year of his term, faces an urgent need for a rebound in the second half. Baek has initiated efforts to address the lackluster performance by securing a first urban redevelopment order, setting the stage for potential improvements. The addition of overseas orders, such as nuclear power projects, could further solidify this foundation. According to IBK Investment & Securities, Daewoo E&C’s estimated Q2 2024 consolidated revenue is KRW 2.622 trillion with an operating profit of KRW 121 billion, reflecting a year-on-year decrease of 19.8% in revenue and 44.2% in operating profit. Compared to market expectations, the operating profit is down by 7.8%. First-half cumulative revenue and operating profit are estimated to have decreased by 13.1% and 40.3%, respectively, compared to the same period in 2023. Annual revenue and operating profit for 2024 are also projected to drop by 12.4% and 26.3% from 2023, indicating a challenging outlook. In terms of order intake, Daewoo E&C’s performance in the first half was disappointing both domestically and internationally. The Overseas Construction Information Service (OCIS) reported that from January to May 2024, Daewoo E&C’s overseas orders decreased by USD 743,800 (about KRW 102 billion). Despite signing new overseas contracts worth KRW 44.4 billion in Q1 2024, the net order intake was negative due to contract adjustments. This reduction in overseas orders typically occurs when existing contracts are modified, transferring some projects to other companies or reducing contract amounts. Usually, new orders offset these reductions, but Daewoo E&C faced a severe order drought in the first half. Domestically, the company failed to secure any urban redevelopment projects in the first half, making its annual goal of KRW 3 trillion in urban redevelopment orders seem unattainable with zero orders so far. However, the second half is expected to see significant orders for large-scale overseas projects and urban redevelopment, providing a potential rebound for Baek Jung-wan. Projects that Baek has focused on may start to show results in the coming months. One key event is the Czech Republic's new nuclear power plant project, with the selection of the preferred bidder expected by mid-July. This project involves constructing up to four nuclear power plants in Dukovany, led by Korea Hydro & Nuclear Power (KHNP) as part of Team Korea, competing against France's EDF. Daewoo E&C, as the main contractor for Team Korea, will be responsible for building the infrastructure and main facilities. Daewoo E&C hosted the "Czech-Korea Nuclear Power Plant Construction Forum" in Prague on May 27 to promote its bid, attended by 150 key figures from the Czech government and local nuclear industry. Baek Jung-wan personally participated, meeting local officials and highlighting Daewoo E&C's nuclear capabilities. Winning the Czech nuclear project could secure around KRW 2 trillion in orders for Daewoo E&C and serve as a springboard for entering Eastern European nuclear markets like Poland. Baek Jung-wan is also strengthening Daewoo E&C's overseas market presence through high-level meetings with international leaders. He met with Mozambican President Filipe Nyusi on June 3 and Libyan Presidential Council Vice Chairman Musa al-Koni on June 4. On June 27, Baek visited the Presidential Palace in Ashgabat, Turkmenistan, to meet with President Serdar Berdimuhamedov. They discussed Daewoo E&C's ongoing fertilizer plant projects, including the Kiyanly Urea-Ammonia Fertilizer Plant and the Turkmenabat Fertilizer Plant, for which Daewoo E&C is bidding. To consolidate its overseas business, Daewoo E&C established the Public Support Team for public sector and external affairs, and elevated the Overseas Business Division under the Strategic Planning Division to report directly to the CEO. The division head was also promoted from managing director to senior executive director. Efforts to strengthen overseas orders are expected to bear fruit in the second half of the year. Hyundai Motor Securities analyst Shin Dong-hyun anticipates Daewoo E&C will secure significant orders in H2 2024, including projects like the Al Faw Naval Base in Iraq, fertilizer plants in Turkmenistan, and the Czech nuclear power plant. Other anticipated projects include the resumption of the Fast Track power plant in Libya and the LNG plant in Mozambique. In the domestic market, Baek has kickstarted urban redevelopment by winning the Shinbanpo 16th Apartment Reconstruction Project on July 6. This project involves constructing four buildings with 468 units in Jamsil-dong, Seocho-gu, Seoul, valued at KRW 246.9 billion, or 2.1% of Daewoo E&C's 2023 consolidated revenue. Baek is also close to securing the Dadae 3 District Reconstruction Project in Saha-gu, Busan. Daewoo E&C has been selected as the preferred bidder for the contract selection meeting on July 13, which involves constructing 692 units in Dadae-dong, Saha-gu. Additionally, Daewoo E&C is the likely winner of the Gaepo Jugong 5th Complex Reconstruction Project in Gangnam-gu, Seoul, after POSCO E&C withdrew from the bid. Daewoo E&C was the sole participant in the bidding process on May 21. The competition for the highly coveted Shinbanpo 2nd Apartment Reconstruction Project is heating up, with Daewoo E&C and Hyundai Engineering & Construction vying for the contract. This project involves constructing 2,057 units in 15 buildings up to 49 stories high in Jamsil-dong, Seocho-gu, with construction expected to begin in 2026. Baek Jung-wan, a "Daewoo man" with 39 years at the company, has held various roles including Head of Housing Business Division and Housing Construction Business Division. After Jungheung Group acquired Daewoo E&C, Baek was appointed CEO in March 2022, with his term ending in March 2025. #DaewooE&C #BaekJungwan #ConstructionIndustry #NuclearProjects #UrbanRedevelopment #InternationalContracts #FinancialPerformance #CzechNuclearBid #OverseasExpansion #StrategicInvestments
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- Lotte Biologics Begins Construction of Songdo Plant, Shin Dong-bin: "Future Growth Engine"
- Shin Dong-bin, Chairman of Lotte Group, emphasized that Lotte Biologics' Songdo Bio Campus will be a future growth engine for Lotte Group. On the 3rd, Lotte Biologics held a groundbreaking ceremony for the construction of its first plant at the Songdo International City in Incheon. The event was attended by 300 people, including Chairman Shin Dong-bin, CEO Lee Won-jik of Lotte Biologics, Executive Vice President Shin Yoo-yeol of Lotte Biologics Global Strategy Office, Incheon Mayor Yoo Jeong-bok, National Assembly member Jeong Il-young, and First Vice Minister of Trade, Industry and Energy Kang Kyung-sung. Chairman Shin stated, "The journey of Lotte Biologics will not only be a future growth engine for Lotte Group but also become the central axis of South Korea's bio industry. We will do our utmost to contribute to the successful establishment of the bio cluster in Songdo and help South Korea take the lead in the global bio industry." Prime Minister Han Duck-soo conveyed his congratulations via video message. He remarked, "In the current intense global competition, Lotte Group's bold investment is expected to significantly enhance the competitiveness of the domestic biopharmaceutical industry. The government will also actively support the private investment of KRW 36.3 trillion planned by 2040, centered around the specialized bio high-tech strategic industrial complex." Lotte Group is expanding new businesses in four key areas: Bio & Wellness, Mobility, Sustainability, and New Life Platform. Among these, Lotte Biologics' Songdo Bio Campus, a core project in the Bio & Wellness sector, will receive an investment of approximately KRW 4.6 trillion (US$ 3.3 billion). The campus will cover a total area of 202,285.2 square meters (61,191 pyeong) and include three plants and ancillary buildings. Lotte Construction will be responsible for the design, procurement, and construction (EPC) of the first plant, which will have a production capacity of 120,000 liters per plant, totaling 360,000 liters. Lotte Group anticipates the economic impact of the Songdo Bio Campus to be KRW 7.6 trillion (US$ 5.5 billion) and expects to create 37,000 related jobs. #LotteBiologics #ShinDongbin #SongdoBioCampus #FutureGrowth #Biopharmaceuticals #SouthKoreaBioIndustry #GroundbreakingCeremony #BioInvestment #EconomicImpact #JobCreation
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- President Yoon Prioritizes Support for Small Businesses Over Nationwide Cash Aid
- President Yoon Suk-yeol criticized the opposition's policy of providing nationwide cash aid and expressed his commitment to tailored support for small businesses. At a meeting held at the Blue House Guest House on the 3rd to announce the 'Second Half Economic Policy Direction and Dynamic Economy Roadmap,' President Yoon stated, "Instead of populist cash handouts, we have prepared a comprehensive support plan worth KRW 25 trillion (approx. USD 18 billion) specifically for small businesses in need." He cited the difficulties faced by small businesses during the COVID-19 pandemic as a basis for this approach. "During the COVID-19 pandemic, the number of small business loans and the loan amounts surged, but as loan support increased sharply while business operations were excessively restricted, the delinquency rate among small businesses significantly increased," President Yoon pointed out. He emphasized the need to strengthen support for small businesses feeling the burden of high-interest rates, labor costs, and rent. To achieve this, President Yoon outlined plans to enhance financial support. "We will expand the scope of low-interest refinancing loans from low-credit borrowers to mid- to low-credit borrowers, reducing the burden on small businesses. We will also extend the repayment period for policy funds and guaranteed loans by up to five years for up to 800,000 small business owners," he said. Additionally, he announced plans to raise the revenue threshold for electricity bill support from the current KRW 30 million to KRW 60 million and to extend the 'Good Landlord Tax Credit' system, which provides tax deductions for landlords who reduce rent for small businesses, until the end of 2025. Moreover, the 'New Start Fund,' initially available only to small businesses affected by COVID-19, will be expanded to all small business owners operating until the end of June this year, with an additional KRW 10 trillion allocated to support approximately 300,000 more people. To inject overall dynamism into the economy, President Yoon also presented plans to deregulate and innovate the tax system. "We will rationalize regulations at each growth stage to allow companies to grow from small and medium-sized enterprises to large corporations. We will also actively utilize regulatory sandboxes to foster the growth of new industries," he said. Plans for expanding urban housing supply and stabilizing dining prices were also presented. "We will utilize old government buildings in urban areas to supply over 50,000 rental homes for citizens and young people, and increase long-term rental housing for the middle class by over 100,000 units," President Yoon said. To stabilize dining prices, he mentioned considering measures to expand transactions in wholesale markets and adjust tariffs. "By 2027, we aim to expand online wholesale market transactions to the current level of Garak Market, reaching KRW 5 trillion, and continue efforts to secure overseas supply sources through quota tariffs," he added. #YoonSukyeol #SmallBusinessSupport #EconomicPolicy #COVID19Relief #FinancialSupport #HousingSupply #RegulationReform #TaxInnovation #WholesaleMarket #GoodLandlordTaxCredit
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- CJ LiveCity Project Fails: Boon or Bane for CJ Group?
- The CJ LiveCity project, a long-held ambition of CJ Group, has ultimately collapsed, leading to mixed reactions within the group. Many express regret over the cancellation of a project considered pivotal to CJ Group’s future, with over KRW 700 billion (approximately USD 504 million) invested over eight years. However, some find solace in avoiding further risks, given CJ Group’s financial condition. On July 1, Gyeonggi Province officially announced the cancellation of the CJ LiveCity project, which was seen internally as a problematic venture for CJ Group. According to Gyeonggi Province, the project was only 3% complete. Despite starting the construction of a massive arena, the core facility of CJ LiveCity, in October 2021, it was effectively abandoned. Several factors hindered progress: Korea Electric Power Corporation stated it couldn't supply high-capacity electricity, and delays in the public project to improve the Hallyu River's water quality hindered the project. Hanwha Construction’s demands for contract changes due to rising raw material and labor costs further obstructed normalization efforts. Due to these issues, CJ LiveCity reported to Gyeonggi Province that it was challenging to meet the initial construction deadline of June 30. Despite ongoing communication with Gyeonggi Province and the Ministry of Land, Infrastructure, and Transport, the project was ultimately terminated. CJ Group stated, "We regret the termination of the project as it lacked institutional and administrative support." However, some see withdrawing from CJ LiveCity as a blessing in disguise for CJ Group. In 2021-2022, CJ Group benefited from strong performances in the food and biotech sectors, with CJ Corporation’s consolidated operating profit margin rising from 4.3% in 2020 to 5.4%. However, 2023 saw a downturn. The global economic slowdown affected the biotech sector, and intensified competition in the media sector hurt profitability. Particularly, CJ ENM and other media sectors faced a dual challenge: they had to invest in content despite incurring losses to maintain competitiveness. The somewhat contentious capital increase at CJ CGV highlighted CJ Group’s financial struggles. Indeed, CJ's consolidated operating profit margin regressed to 4% in 2023. Given these circumstances, CJ LiveCity was seen as a dilemma for CJ Group, with no clear path forward. The total cost of the CJ LiveCity project was estimated at KRW 1.8 trillion (approximately USD 1.3 billion), with over KRW 1 trillion (approximately USD 720 million) still needed. Considering potential cost increases, further investment would likely have escalated. Within CJ Group, doubts existed about whether the project could be profitable, despite its potential symbolic value as a K-content hub. CJ LiveCity showed its commitment to normalizing the project by issuing KRW 200 billion (approximately USD 144 million) in commercial paper in February and actively accepting the Ministry of Land, Infrastructure, and Transport’s arbitration proposals. A CJ LiveCity representative stated, "The company was committed to normalizing and completing the project. It is a project financed through project financing (PF), separate from CJ Group’s financial situation." Since its establishment in 2016, CJ LiveCity borrowed from its parent company, CJ ENM, 15 times, including four times from last year to this year, for facility, operating, and debt repayment funds. #CJGroup #CJLiveCity #ProjectCancellation #BusinessStrategy #InvestmentRisks #FinancialManagement #KContent #CorporateDecisions #EconomicChallenges #FutureGrowth
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- Woori Financial Group Launches 'Dino Lab 5th Cohort' for Startup Support
- Woori Financial Group is supporting promising startups with high commercialization potential. On the 1st, Woori Financial Group announced the launch of the 5th cohort of its startup support program, 'Dino Lab (Digital Innovation Lab) Seoul.' Dino Lab is Woori Financial Group's venture business incubation program, currently operating five centers in Seoul, Gyeongnam, Chungbuk, and Hanoi, Vietnam. Woori Financial Group selected ten companies for the 5th cohort of Dino Lab Seoul through a contest judged by new business alliance and investment managers from its subsidiaries, focusing on those with high investment potential. The final selected companies include 'Scala Data,' which operates an integrated payment platform for electric vehicle charging stations, 'Higher Diversity,' which supports administrative processing services for foreigners in Korea, and 'Delivery Lab,' a food ingredient distribution solution company. Woori Financial Group will support the stable growth of the companies selected for Dino Lab Seoul 5th cohort through various programs. These programs include management consulting in HR, labor, tax, and accounting, as well as opportunities to validate their business ideas into business models. Companies wishing to move into the Dino Lab Seoul center will also receive free office space. The companies selected for Dino Lab Seoul 5th cohort will have the opportunity to participate in business proposal presentations for collaboration with Woori Financial Group subsidiaries, '1:1 Meetup Day,' and 'Investment Promotion (IR) Contest' to attract investments. Woori Financial Group plans to open an additional Dino Lab center in Teheran Valley, Gangnam, Seoul, within this year, aiming to establish it as a 'Dino Lab Hub' that connects companies inside and outside the metropolitan area. Yim Jong-yong, Chairman of Woori Financial Group, stated, "Through the operation of Dino Lab, Woori Financial Group has been creating a startup ecosystem and establishing an investment environment where companies can grow. We will expand Dino Lab nationwide to help startups scale up using Woori Financial Group's capabilities." #WooriFinancialGroup #DinoLab #StartupSupport #YimJongyong #DigitalInnovation #StartupEcosystem #BusinessIncubation #InvestmentOpportunities #VentureCapital #CompanyGrowth
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- Hana Financial Group Releases 2023 Sustainability Report, Ham Young-joo Highlights Social Value Creation
- Hana Financial Group has published a report detailing its ESG (Environmental, Social, Governance) management goals and achievements. On the 30th, Hana Financial Group announced the publication of the "2023 Sustainability Management Report," which includes the group's ESG activities and achievements for the year. The report, based on the management principle "For the Joy of Everyone, That One," highlights the ESG activities and efforts of the group's affiliates aimed at pursuing co-growth with the social community. Key contributions to the local community include the "100th Childcare Center Construction Project" and the "Hana Care Childcare Center Project," which operates 365 days a year. The 100th Childcare Center Construction Project is a social contribution activity initiated in 2018 to address low birth rates. The report also features the "Hana Power On Program," aimed at job creation and supporting vulnerable social groups, and the "Hana Life Journey Support Project," which encompasses marriage, childbirth, work-life balance, and elder care. In the area of creating social value, the report outlines detailed action plans and achievements in three key focus areas: enhancing financial inclusion, realizing sustainable finance, and responding to climate change. Additionally, the report categorizes achievements in environmental (E), social (S), and governance (G) areas into 11 themes: environmental management, biodiversity protection, human resource development, safety and health, human rights protection, information protection, customer-centric finance, community contribution, governance, ethical management, and risk management, providing detailed explanations for each. In his greeting within the report, Ham Young-joo, Chairman of Hana Financial Group, stated, "Hana Financial Group is actively engaging in various social value creation activities to address the environmental and social issues faced by our society. We will continue to share happiness with members of society and strive to inspire future dreams." A representative from Hana Financial Group added, "In addition to the Sustainability Management Report, Hana Financial Group will continue to actively communicate with customers, stakeholders, and society through the ESG Impact Report and TCFD Report." #HanaFinancial #ESG #SustainabilityReport #HamYoungjoo #SocialValue #CommunityContribution #EnvironmentalManagement #FinancialInclusion #ClimateChange #CorporateGovernance #EthicalManagement
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- Democratic Party faces push to re-elect Lee Jae-myung, but worries about absence of 'Plan B' persist
- The push to nominate former representative Lee Jae-myung as party leader is emerging in the Democratic Party's national convention. In the political community, it is assumed that former representative Lee will be re-elected as the party leader. Therefore, concerns about the absence of an alternative candidate for the presidential or party leader position, other than Lee, who faces significant legal risks, are arising within and outside the Democratic Party. Jung Eul-ho, spokesperson for the Democratic Party's National Convention Preparation Committee (NCPC), said in a briefing on the 28th, regarding whether to proceed with a vote for or against Lee’s solo candidacy, “It’s not the time to discuss this now. We decided to discuss it after seeing the registration status of party leader candidates.” The NCPC had announced on the 27th that they would conclude the method of selection if Lee was the sole candidate in that day's meeting, but they were unable to resolve it. Representative Jung explained, “Other individuals may have the intention to run, but discussing rules based on the assumption of a solo candidacy by the central party was burdensome, as it seemed to anticipate a solo candidacy by a particular individual.” The background to the NCPC’s discussion on solo candidacy for the party leader is the difficulty in finding competitors to Lee, to the extent that the 'nomination' form needs to be considered if he challenges for re-election. Lee Chun-suk, chairman of the Democratic Party's NCPC, said on KBS's Jeonggyeok Sisa on the 28th, regarding the situation of the party's national convention, “There seems to be a flow thinking that there is no one but Lee Jae-myung because he led the party well and won the last general election.” He added, “It seems unlikely that anyone would come forward to challenge Lee Jae-myung given the current overall atmosphere.” In fact, since Lee stepped down from the party leader position on the 24th, no Democratic Party members have expressed intentions to run for the party leader position in the national convention to be held on August 18th. It is known that five-term lawmaker Lee In-young within the Democratic Party had contemplated running for the party leader position. However, he reportedly turned away from running due to the low probability of winning against Lee and facing attacks from party members after rumors of his candidacy emerged. The pro-Lee faction believes that Lee is the strongest figure to fight against the Yoon Seok-yeol administration, and thus, party members are inclined towards him. They argue that since Lee is not particularly blocking others from running, there should be no problem in nominating or voting for his re-election. Park Sung-joon, the Democratic Party's senior deputy floor leader, dismissed the view that a contender must be considered to prevent Lee's solo candidacy, saying on KBS Jeonggyeok Sisa on the 25th, “Is it possible to match candidates in a calculated manner in politics now? I think such thoughts themselves are wrong.” Park further remarked on YTN News Fighting on the 28th, “Why can’t multiple candidates emerge?” but added, “Party members are providing answers regarding who can effectively fight the Yoon Seok-yeol administration and who can prepare for the future.” However, concerns are emerging about the situation where there seems to be no one but Lee for both the presidential candidate and the party leader. The concern is based on the difficulty of managing the situation if Lee collapses due to legal risks. Particularly, considering that the ruling party is determined to bring down Lee, the absence of a 'Plan B' could become a significant regret for the Democratic Party. Won Hee-ryong, a contender for the People's Power Party leadership, said on the 25th regarding Lee, “He hasn’t been sent to prison yet. We will quickly bring him to the judgment of the law.” There is also an analysis that Lee's re-election could negatively impact the party's approval ratings. Yoo In-tae, former secretary-general of the National Assembly, criticized the current national convention situation of the Democratic Party on MBC News Today on the 26th, saying, “The party is going in a unipolar direction without diversity, so will the approval ratings rise?” Jeong Seong-ho, a Democratic Party lawmaker known as the leader of the pro-Lee faction, expressed the view that it would be desirable for other individuals to challenge in the national convention to show the party's diversity to the public and to create other potential presidential candidates. In MBC Radio's Kim Jong-bae’s Focus on the 26th, Jeong said, “Currently, Lee is the strongest candidate and the most likely next presidential contender,” but added, “Personally, I think it would be good for young members or senior members to challenge in the national convention, looking towards the next and subsequent opportunities.” Within the party, there is also an argument that, aside from the view that Lee's legal risks are a result of unfair prosecution investigations, other figures should raise their presence through the national convention for the future of the party. A Democratic Party official said, “Saying that Lee cannot be re-elected due to legal risks or that another presidential candidate must be created acknowledges the unreasonableness of the Yoon Seok-yeol administration, which we cannot accept. However, since it is difficult to find voices to check Lee now, healthy competition must take place.” #LeeJaeMyung #DemocraticParty #KoreanPolitics #PartyLeaderElection #PlanB #LegalRisks #ProLeeFaction #NationalConvention #PoliticalRivalry #ElectionConcerns In political circles, it is considered a given that former representative Lee will be re-elected as the party leader. Therefore, concerns about the absence of an alternative candidate for the presidential or party leader position, other than Lee, who faces significant legal risks, are arising within and outside the Democratic Party. Jung Eul-ho, spokesperson for the Democratic Party's National Convention Preparation Committee (NCPC), said in a briefing on the 28th, regarding whether to proceed with a vote for or against Lee’s solo candidacy, “It’s not the time to discuss this now. We decided to discuss it after seeing the registration status of party leader candidates.” The NCPC had announced on the 27th that they would conclude the method of selection if Lee was the sole candidate in that day's meeting, but they were unable to resolve it. Representative Jung explained, “Other individuals may have the intention to run, but discussing rules based on the assumption of a solo candidacy by the central party was burdensome, as it seemed to anticipate a solo candidacy by a particular individual.” The background to the NCPC’s discussion on solo candidacy for the party leader is the difficulty in finding competitors to Lee, to the extent that the 'nomination' form needs to be considered if he challenges for re-election. Lee Chun-suk, chairman of the Democratic Party's NCPC, said on KBS's Jeonggyeok Sisa on the 28th, regarding the situation of the party's national convention, “There seems to be a flow thinking that there is no one but Lee Jae-myung because he led the party well and won the last general election.” He added, “It seems unlikely that anyone would come forward to challenge Lee Jae-myung given the current overall atmosphere.” In fact, since Lee stepped down from the party leader position on the 24th, no Democratic Party members have expressed intentions to run for the party leader position in the national convention to be held on August 18th. It is known that five-term lawmaker Lee In-young within the Democratic Party had contemplated running for the party leader position. However, he reportedly turned away from running due to the low probability of winning against Lee and facing attacks from party members after rumors of his candidacy emerged. The pro-Lee faction believes that Lee is the strongest figure to fight against the Yoon Seok-yeol administration, and thus, party members are inclined towards him. They argue that since Lee is not particularly blocking others from running, there should be no problem in nominating or voting for his re-election. Park Sung-joon, the Democratic Party's senior deputy floor leader, dismissed the view that a contender must be considered to prevent Lee's solo candidacy, saying on KBS Jeonggyeok Sisa on the 25th, “Is it possible to match candidates in a calculated manner in politics now? I think such thoughts themselves are wrong.” Park further remarked on YTN News Fighting on the 28th, “Why can’t multiple candidates emerge?” but added, “Party members are providing answers regarding who can effectively fight the Yoon Seok-yeol administration and who can prepare for the future.” However, concerns are emerging about the situation where there seems to be no one but Lee for both the presidential candidate and the party leader. The concern is based on the difficulty of managing the situation if Lee collapses due to legal risks. Particularly, considering that the ruling party is determined to bring down Lee, the absence of a 'Plan B' could become a significant regret for the Democratic Party. Won Hee-ryong, a contender for the People's Power Party leadership, said on the 25th regarding Lee, “He hasn’t been sent to prison yet. We will quickly bring him to the judgment of the law.” There is also an analysis that Lee's re-election could negatively impact the party's approval ratings. Yoo In-tae, former secretary-general of the National Assembly, criticized the current national convention situation of the Democratic Party on MBC News Today on the 26th, saying, “The party is going in a unipolar direction without diversity, so will the approval ratings rise?” Jeong Seong-ho, a Democratic Party lawmaker known as the leader of the pro-Lee faction, expressed the view that it would be desirable for other individuals to challenge in the national convention to show the party's diversity to the public and to create other potential presidential candidates. In MBC Radio's Kim Jong-bae’s Focus on the 26th, Jeong said, “Currently, Lee is the strongest candidate and the most likely next presidential contender,” but added, “Personally, I think it would be good for young members or senior members to challenge in the national convention, looking towards the next and subsequent opportunities.” Within the party, there is also an argument that, aside from the view that Lee's legal risks are a result of unfair prosecution investigations, other figures should raise their presence through the national convention for the future of the party. A Democratic Party official said, “Saying that Lee cannot be re-elected due to legal risks or that another presidential candidate must be created acknowledges the unreasonableness of the Yoon Seok-yeol administration, which we cannot accept. However, since it is difficult to find voices to check Lee now, healthy competition must take place.” #LeeJaeMyung #DemocraticParty #KoreanPolitics #PartyLeaderElection #PlanB #LegalRisks #ProLeeFaction #NationalConvention #PoliticalRivalry #ElectionConcerns
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- Chung Eui-sun Visits Busan Mobility Show: "Domestic Market and Consumers are Important"
- Hyundai Motor Group Chairman Chung Eui-sun visited the '2024 Busan Mobility Show' media event held at BEXCO in Busan on the 27th. Chairman Chung, accompanied by Hyundai Motor Company President and CEO Chang Jae-hoon, Kia President and CEO Song Ho-sung, and Hyundai Motor's Chief Creative Officer (CCO) Luc Donckerwolke, toured the exhibition halls of Hyundai, Kia, Genesis, and other participating companies at the Busan Mobility Show. At this year's Busan Mobility Show, Hyundai unveiled the Casper Electric, a compact electric vehicle, for the first time. Kia showcased the EV3, an affordable electric vehicle set to be released this year, and the Tasman, the brand's first pickup truck, in camouflage. Hyundai's luxury brand Genesis debuted the large electric SUV Neuron for the first time in Asia. A Hyundai Motor Company representative explained Chairman Chung's visit to the Busan Mobility Show, saying, "The domestic market and consumers are important, so he inspected the exhibition hall." The 2024 Busan Mobility Show runs from June 28 to July 7 at Hall 1 of BEXCO in Haeundae, Busan, starting with a press day on the 27th.
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- Can 'Successful Otaku' Kim Jun-koo Turn Webtoon Entertainment into the 'Disney of Asia'?
- Kim Jun-koo, the CEO of Webtoon Entertainment, started as an entry-level employee at Naver and developed the nascent webtoon service into a global business. With the company's listing on NASDAQ, his vision of transforming the company into a global intellectual property (IP) enterprise is under the spotlight. On the 26th (local time), Bloomberg News reported that the IPO price of Naver Webtoon, which is being listed on NASDAQ, was set at $21 per share, the upper end of the desired range. Webtoon Entertainment is the US headquarters of Naver Webtoon, acting as an intermediate holding company for Naver's webtoon business. The company will issue 15 million common shares through this IPO. Post-listing, the company's valuation will reach approximately $2.7 billion (about 3.7 trillion KRW). The stock ticker is 'WBTN,' and trading on NASDAQ will begin at 10:30 PM on that day. Through this listing, the company will raise 434.7 billion KRW. This funding will be used for the global expansion of the webtoon business. In a letter submitted with the securities report in May, Kim Jun-koo, CEO of Naver Webtoon, stated, "The initial vision of Naver Webtoon was to create a world where comic creators from the US, Korea, Japan, and France could reach global readers without border restrictions," and "I want to build a platform where everyone can experience and share their stories with the world." He also mentioned, "The company's goal is to discover IPs that will become the biggest hits in the next 10 years." The company envisions leveraging the US, the center of the global content market, as a stepping stone to become a global IP company. To this end, in 2020, they restructured the business, placing the US corporation Webtoon Entertainment as an intermediate holding company for the webtoon subsidiaries. Webtoon Entertainment oversees regional webtoon subsidiaries, including Korea's Naver Webtoon and Japan's Line Manga. The company faces challenges in attracting more global users unfamiliar with Korean-style webtoons and addressing the slowdown in user growth following the COVID-19 pandemic. As of the first quarter of 2023, Naver Webtoon's global monthly active users (MAU) reached 169 million, a slight increase (1.2%) from 167 million in 2022. During the same period, MAUs in the US and European markets decreased from 136 million to 123 million, raising concerns about growth potential. Competition with global big tech companies entering the webtoon market is also expected. Apple and Amazon, which introduced 'Vertical Reading Comics' in Japan in 2023, launched 'Amazon Fliptoon.' In 2024, Japan-based Rakuten plans to launch 'Rtoon,' signaling further competition. Regarding this, Kim stated at a media conference held at Naver Webtoon's headquarters in Seongnam, Gyeonggi Province, on April 25, "It's not easy for competitors to catch up with our combination of creators, content, and user base," and "We will widen the gap with latecomer big tech companies." Interest in Kim's success story is also growing, as he is considered a prime example of a 'successful enthusiast.' The term 'enthusiast' is derived from the Japanese word 'otaku,' meaning a person deeply passionate about a specific subject. In Korea, it refers to individuals who become experts in their hobbies and gain social recognition, known as 'successful enthusiasts.' Kim Jun-koo, CEO of Webtoon Entertainment, graduated from Seoul National University with a degree in Chemical and Biological Engineering and joined Naver as a new developer in 2004, initially working on search engine development. His life changed when he joined the comic service as a side project. Leveraging his long-time passion for comics, he developed Naver Webtoon into the top service in Korea. During this process, he discovered popular creators such as Kian84, Jo Seok, and Kim Gyusam, who are credited with shaping the current Naver Webtoon. In 2015, when Naver Webtoon & Webnovel became an independent company (CIC), he became its CEO. In 2017, following the spinoff, he became the CEO of Naver Webtoon. Since 2020, he has also been serving as the CEO of the reorganized US Webtoon Entertainment and Korea's Naver Webtoon. Upon the start of Webtoon Entertainment's NASDAQ trading, he will receive 14,815 restricted stock units (RSUs) and a cash bonus of $30 million as compensation.
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- Following His Father's Path: Lotte's Shin Dong-bin and Shin Yoo-yeol
- Shin Dong-bin, Chairman of Lotte Group, and Shin Yoo-yeol, Executive Director of Lotte Holdings’ Future Growth Office, share many similarities. Both are alumni of Columbia University’s MBA program and started their careers at Japan’s largest securities company, Nomura Securities. It is also well-known that both began their management training in subsidiaries of Japan's Lotte Group. As Shin Yoo-yeol's management training becomes more pronounced, the similarities between father and son increase. Before stepping into the spotlight as successors, both have been responsible for the group's new growth businesses. Looking at Lotte Group's recent movements on the 27th, Shin Yoo-yeol's role in management is expanding rapidly. Shin Yoo-yeol began to take on significant roles in Lotte Group starting last June. He first assumed the position of CEO of Lotte Financial, marking his debut as the head of an affiliate. Lotte Financial serves as a bridge between Lotte Groups in Korea and Japan. His appointment as CEO suggested he would play meaningful roles in both Lotte Groups. At the end of last year, he was promoted to executive director, just one year after becoming a senior managing director. Upon his promotion, he took charge of the newly established Future Growth Office, which was essentially created for his management training. Simultaneously, he took on a crucial role as the head of global strategy at Lotte Biologics, which is responsible for the group's new business ventures. Recently, he also purchased shares in Lotte Holdings, acquiring a 0.01% stake for about KRW 200 million (US$ 144,261). While the scale is small, it was notable as his first stock purchase since beginning his management training. On the 26th, he joined the board of directors at Lotte Holdings, the holding company of Japan's Lotte Group, which is led by Chairman Shin Dong-bin. This position indicates he is solidifying his status as a successor. Shin Yoo-yeol frequently appears at various Lotte Group affiliate events. Recently, he attended the opening ceremony of Hotel Lotte in Chicago, USA, and regularly visits distribution and chemical affiliates. The increased visibility of Shin Yoo-yeol suggests that Lotte Group is accelerating his training to succeed Chairman Shin Dong-bin. Looking at Shin Yoo-yeol’s management training, it closely mirrors the path his father took 30 years ago. After graduating from university in Japan, Chairman Shin Dong-bin pursued an MBA at Columbia University. Similarly, Shin Yoo-yeol completed his MBA at Columbia after finishing university in Japan. Both started their careers at Nomura Securities. Chairman Shin leveraged the financial skills he gained at Nomura Securities to lead mergers and acquisitions at Lotte Group, expanding the business. Shin Yoo-yeol’s stint at Nomura is likely driven by similar necessities observed from his father’s experience. Chairman Shin began his succession training by joining Lotte Trading in Japan. Shin Yoo-yeol started to make a name for himself within Lotte Group by joining Lotte Holdings in Japan. Chairman Shin later moved to Korea’s Lotte Group, choosing Honam Petrochemical, the predecessor of Lotte Chemical, as his first workplace. Shin Yoo-yeol also chose Lotte Chemical in Korea as his first job. Their subsequent paths are also similar. Shin Yoo-yeol is currently tasked with discovering and promoting new growth engines for Lotte Group. This strategy is seen as positioning him as a forward-looking owner-manager. Chairman Shin followed a similar trajectory. Chairman Shin first appeared in Korean management by becoming managing director of Korea Seven in October 1994, two months after Lotte Group acquired Korea Seven. It’s known that Lotte Group identified the convenience store business as a future business portfolio, with Chairman Shin’s assignment to Korea Seven intended to provide management training in new business areas. Future movements are also noteworthy. Chairman Shin began to attract attention as a second-generation owner-manager by attending the opening ceremony of Lotte Department Store's Busan branch on behalf of Chairman Shin Kyuk-ho in late 1995. At that time, he distributed business cards with the title of “Vice President of Lotte Group Planning and Coordination Office.” About a year and three months later, in February 1997, Chairman Shin was promoted to vice-chairman in Lotte Group’s regular executive reshuffle. It’s likely that Shin Yoo-yeol will take on roles at Lotte Group's control tower in a few years. However, there is a problem that needs to be resolved first: his nationality. Chairman Shin Dong-bin maintained dual citizenship in Korea and Japan but renounced his Japanese citizenship and chose Korean citizenship before becoming vice-chairman of the group in 1996. Shin Yoo-yeol, who holds Japanese citizenship, may also acquire Korean citizenship soon for a smooth succession within Lotte Group. Since Shin Yoo-yeol is over 38 years old, he would not be subject to mandatory military service even if he acquires Korean citizenship according to the Military Service Act. #Lotte #ShinDongbin #ShinYooyeol #LotteGroup #ColumbiaUniversity #NomuraSecurities #FutureGrowth #ManagementTraining #BusinessSuccessor #CorporateStrategy
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- Woori Financial Group Shifts to Life Insurance, Yim Jong-yong Focuses on Price
- Chairman Yim Jong-yong's effort to add an insurance company to Woori Financial Group is leaning towards acquiring a life insurance company rather than a non-life insurance company. A day before the final bid for Lotte Insurance, the possibility of acquiring Tongyang Life and ABL Life as a package deal has emerged. Regardless of whether Yim chooses a life or non-life insurer, the final variable in his decision will likely be the price. On the 27th, Tongyang Life announced that its largest shareholder, Dajia Insurance Group, had signed a non-binding memorandum of understanding with Woori Financial Group on the 25th to discuss the sale of its shares in Tongyang Life and ABL Life. This confirms Woori Financial Group's announcement the previous day that they are considering acquiring Tongyang Life and ABL Life to strengthen their non-banking competitiveness. Various interpretations are emerging in the financial industry regarding Woori Financial Group's bid for an insurance company. However, the fact that Woori signed an MOU with Dajia Insurance Group three days before deciding whether to participate in Lotte Insurance's final bidding suggests that Yim is favoring life insurance over non-life insurance. The main reason for Yim's shift in preference is believed to be the high price of Lotte Insurance. JKL Partners, the major shareholder of Lotte Insurance, is reportedly insisting on a sale price of over KRW 2 trillion (US$ 1.44 billion), while Yim has maintained that there will be no "overpaying." The financial industry expects Woori Financial Group to aim for a price in the mid-trillion range. The status of Tongyang Life in the domestic life insurance industry is also believed to have influenced Yim's decision. Established in 1989, Tongyang Life was the first domestic life insurer to be listed on KOSPI in 2009. As of the end of February, it holds a market share of 4.3%, solidifying its position as a mid-sized firm in a market where the top three companies (Samsung, Hanwha, and Kyobo) hold half the market share. Tongyang Life's market capitalization was KRW 1.1295 trillion (US$ 814 million) as of the previous day, and its cumulative insurance contract margin (CSM), which represents the present value of future profits, was KRW 2.6915 trillion (US$ 1.94 billion) as of the end of March. If Woori Financial Group successfully acquires ABL Life along with Tongyang Life in a package deal, it will create a life insurance company ranking around sixth in terms of total assets. Given Woori Financial Group's past experience with Woori Aviva Life Insurance (now DGB Life Insurance), a life insurer might be more familiar and easier to integrate into the group than a non-life insurer. However, since Woori Financial Group has not ruled out participating in Lotte Insurance's final bidding, some interpret the life insurance acquisition as a strategy to gain an advantageous position in negotiations for Lotte Insurance. Lotte Insurance is also an attractive asset for Woori Financial Group. Non-life insurers are generally considered to have brighter future growth prospects due to demographic changes. As of the previous day, Lotte Insurance's market capitalization was KRW 1.2413 trillion (US$ 895 million), and its CSM was KRW 2.4305 trillion (US$ 1.75 billion) as of the end of March, not significantly different from Tongyang Life. Ultimately, the deciding factor will be the acquisition price. Yim will need to spend billions of won whether he chooses a life or non-life insurer. This acquisition carries significant weight as it is the first large-scale M&A undertaken by Woori Financial Group since it reestablished as a holding company in 2019. Given Woori Financial Group's challenging current financial situation, Yim must be cautious in his decision. According to Korea Investors Service, Woori Financial Group's investment capacity is approximately KRW 7.5 trillion (US$ 5.41 billion), theoretically allowing it to acquire both a life and non-life insurer. However, considering the costs of integration and stabilization post-acquisition, additional funding may be required, posing a significant burden on shareholder returns. Woori Financial Group's common equity tier 1 (CET1) ratio, a benchmark for financial firms' shareholder returns, was 11.9% as of the end of March, the lowest among the four major financial groups. While the market leans towards the likelihood of Woori Financial Group acquiring a life insurer, the acquisition could fall through if the price is not right. Woori Financial Group has just begun due diligence on Tongyang Life and ABL Life. Earlier this year, Yim reportedly had no plans to expedite an insurance company acquisition. However, the ambitious plans for a securities company acquisition ended with the acquisition of a small brokerage, FOSS Securities, and weak performance in the first half of the year, leading to a focus on strengthening the non-banking sector through an insurance company acquisition. If Woori Financial Group successfully acquires either Lotte Insurance or Tongyang Life and ABL Life, it is expected to take a significant leap forward in terms of net profit. In the first quarter, Lotte Insurance posted a net profit of KRW 40.9 billion (US$ 29.5 million), while Tongyang Life and ABL Life posted KRW 88.5 billion (US$ 63.8 million) and KRW 7.7 billion (US$ 5.6 million), respectively. A Woori Financial Group representative stated, "The MOU with Tongyang Life and ABL Life is non-binding, and nothing has been decided yet. We will decide on the acquisition of Lotte Insurance based on due diligence, and we are just starting due diligence on Tongyang Life and ABL Life." #WooriFinancialGroup #InsuranceAcquisition #LifeInsurance #NonLifeInsurance #YimJongyong #TongyangLife #ABLLife #LotteInsurance #MergersAndAcquisitions #FinancialIndustry
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- Shinhan Securities Invests $5 Million in US Smart Factory Firm
- Shinhan Securities has invested in a U.S. smart factory company focusing on AI data center business. On the 27th, Shinhan Securities announced an investment of $5 million (approximately KRW 7 billion) in the U.S. data center server smart factory company "Bright Machines." Bright Machines is an AI-based assembly plant automation company currently focusing on the data center server market. In this Series C funding stage, a total of $126 million (approximately KRW 175 billion) was raised, with global AI companies like Nvidia, Microsoft, and Jabil participating as strategic investors. Shinhan Securities participated as a financial investor alongside global asset management firm BlackRock. Bright Machines plans to use this investment to develop digital twin technology and produce equipment for dismantling and reassembling data center servers. A representative from Shinhan Securities said, “This investment was made based on the local deal sourcing network and capabilities of Shinhan Securities' U.S. subsidiary. We plan to continue investing in various growth industries such as data centers, AI semiconductors, and smart factories to enhance global competitiveness.” #ShinhanSecurities #investment #BrightMachines #smartfactory #AI #datacenters #SeriesCfunding #globalinvestment #digitaltwin #financialinvestment
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- Lee Young-jong's Strategic Move: Day Care for Seniors
- Lee Young-jong, CEO of Shinhan Life Insurance, has chosen day care centers as the first venture into the senior care market, which is emerging as a new growth area for the life insurance industry. Lee plans to start with day care centers, which have relatively low entry barriers and can quickly build experience in elderly care services. This is in preparation for synergy with Shinhan Financial Group's overall senior business. According to Shinhan Life Insurance on the 26th, its senior care subsidiary, Shinhan Life Care, is in the process of hiring a director for a day care center scheduled to open in the fourth quarter of this year. Shinhan Life Care is currently conducting interviews with candidates who have certifications as social workers, nurses, physical therapists, or occupational therapists, and have at least five years of experience in long-term care facilities. The final selectee will oversee the operation and management of Shinhan Life Care's first day care center, which will be established in Bundang, Seongnam, Gyeonggi Province, in the fourth quarter of this year. Since Lee became CEO of Shinhan Life Insurance in January last year, he has selected the senior business as one of the mid- to long-term growth strategies and has accelerated the business push this year. In January of this year, he changed the name of the healthcare subsidiary 'Shinhan Cube On' to 'Shinhan Life Care' and dedicated it to the senior business. At the launch ceremony of Shinhan Life Care held on January 26th, a master plan was revealed to build a Silver Town in Hanam, Gyeonggi Province, by 2025, offering comprehensive services such as finance, culture and arts, leisure sports, and medical and healthcare for the elderly. Lee also plans to aggressively expand the senior business by installing nursing facilities and day care centers every year until 2028, through Shinhan Life Care, in addition to the residential Silver Town facilities. The choice of day care centers as the first project in the senior business reflects the advantage of quickly gaining experience in the care business. Day care centers, often referred to as 'elderly kindergartens,' protect seniors during the day, similar to kindergartens for young children, while offering various rehabilitation services and professional programs related to leisure activities. This experience in senior care services can be directly applied or connected to future nursing facilities and Silver Towns, helping to enhance Shinhan Life Care's senior business capabilities. Day care centers have recently gained attention as a startup item for the general public, making them reasonably profitable and easy to start without significant costs for land acquisition or building construction. This makes them a suitable testbed for Shinhan Life Care, which is just starting its senior business. A Shinhan Life Insurance representative explained in a phone call with Business Post, "We have already planned facilities such as Silver Towns and nursing facilities, but day care centers can open the quickest. We aim to open in the fourth quarter." Lee aims to grow the senior business into a 'total life care' service for seniors, collaborating with Shinhan Financial affiliates in the long term, beyond just operating day care centers, nursing facilities, and Silver Towns. Jin Ok-dong, Chairman of Shinhan Financial Group, also attended the launch ceremony of Shinhan Life Care, showing support for Shinhan Life's senior business. Chairman Jin said in his congratulatory speech, "As the senior business is emerging as a core area of the financial industry beyond the insurance sector, I hope to present the standard of comprehensive life care through Shinhan Financial Group's capabilities and network." Lee is regarded as a representative strategist within Shinhan Financial Group. He established mid- to long-term business strategies while working as the head of the Strategic Planning Team at Shinhan Financial Group and supported the acquisition of Orange Life. He later became the CEO of Orange Life, leading the integration of Shinhan Life and Orange Life, and after the launch of the integrated corporation Shinhan Life, he served as the head of the Strategic Planning Group before becoming the CEO of Shinhan Life Insurance. ### Keywords #ShinhanLife #seniorcare #daycarecenter #LeeYoungjong #ShinhanFinancialGroup #elderlycare #SilverTown #seniorbusiness #healthcare #nursingfacilities
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- LG Chem's Shin Hak-cheol: "No Plans to Sell LG Energy Solution Shares"
- Shin Hak-cheol, Vice Chairman of LG Chem, stated in an interview with Bloomberg that there are no plans to sell LG Energy Solution shares. He also mentioned that LG Chem is in negotiations with various companies to secure a stable supply of battery raw materials. On the 25th (local time), Bloomberg posted a video interview with Shin on its website. When asked about the potential sale of LG Energy Solution shares, Shin responded briefly, "There are no plans to sell the shares." Regarding concerns over a decline in demand for electric vehicle (EV) batteries, Shin explained, "The volatility of raw material prices has a significant impact," and added, "We are in negotiations with various companies to ensure stable raw material supply." He further noted, "LG Energy Solution has successfully secured enough raw materials for the next two to three years, but we are concerned about the supply for the next five to ten years." When asked about the potential changes to the Inflation Reduction Act (IRA) subsidies if Donald Trump were to be re-elected, Shin responded, "There will not be any major changes." He explained, "Trump wants to increase U.S. production, so the fundamental framework of the IRA is unlikely to change. However, there may be some adjustments in various areas depending on the new administration." Bloomberg reported that LG Energy Solution has invested billions of dollars in the U.S. to take advantage of IRA benefits, significantly boosting the production of batteries and EVs in the U.S. In connection with this, Shin commented, "The company invested $3 billion to build a battery factory in Tennessee, and this investment is not just for short-term supply or to meet specific conditions." #LGChem #ShinHakcheol #LGEnergySolution #batteryindustry #IRA #rawmaterialssupply #EVbatteries #Bloomberg #USproduction #globalbusiness #Tennessee
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- Lee Jae-myung's Bid for Party Leader Re-election Strengthens Grip on Democratic Party: Boon or Bane for Presidential Run?
- Former Democratic Party representative Lee Jae-myung is expected to strengthen his grip on the party after stepping down to run for re-election. If Lee is re-elected as the party leader and the top committee members are filled with pro-Lee lawmakers, it would solidify the existing support base but could make it difficult to expand to the moderate electorate. According to political insiders on the 25th, there are mixed analyses on whether Lee's increased control of the Democratic Party through re-election would help his path to the presidency. Some believe that if Lee's influence within the Democratic Party strengthens, he could receive robust protection from the party amid his significant legal risks, including the 'Ssangbangwool North Korea remittance scandal.' This would prevent another situation where an arrest motion is passed due to internal dissent, as happened in the 21st National Assembly. Moreover, the Democratic Party showing a united front could empower it to criticize the Yoon Seok-yeol administration’s missteps centered around the National Assembly. Re-elected lawmakers Kim Byung-joo and Kang Sun-woo, classified as part of the pro-Lee faction, are running for the top committee, reinforcing Lee Jae-myung's path post-re-election. Kang Sun-woo, declaring her candidacy for the top committee, emphasized, “With the organized power of 'awakened party members,' I will build Lee Jae-myung’s Democratic Party,” and “Protecting Lee Jae-myung is protecting the Democratic Party, and protecting the Democratic Party is protecting the country.” Kim Byung-joo, in his candidacy speech, also stressed, “I will stand at the forefront with Representative Lee Jae-myung to lay the groundwork for victory in the 2026 local elections and the creation of a new government,” adding, “As a top committee member, I will save the crisis-ridden Republic of Korea with Lee Jae-myung.” Besides these two, four-term senior lawmaker Kim Min-seok, three-term lawmaker Jeon Hyun-hee, and re-elected lawmaker Min Hyung-bae are also mentioned as candidates for the top committee, all classified as pro-Lee. With key positions in the party already filled by pro-Lee lawmakers Park Chan-dae and Jin Sung-joon, if Lee Jae-myung is re-elected, his control over the Democratic Party is expected to be stronger than in his previous term. In the previous term, the top committee was not entirely filled with pro-Lee members, but it is analyzed that the next national convention is likely to be filled entirely with pro-Lee members. This reduces the likelihood of figures like lawmaker Ko Min-jung, who refused party duties due to conflicts with the pro-Lee faction during the 4.10 general election process. However, if the party leadership is composed entirely of pro-Lee members, it is expected to disadvantage Lee in expanding support to moderate voters. Particularly, while Lee Jae-myung is a strong potential presidential candidate with nationwide support, he also has a substantial base of voters who hold a negative view of him. In such a situation, filling the party leadership with pro-Lee members could adversely affect Lee's long-term path to the presidency. According to a survey by Gallup Korea conducted from June 18 to 20 on 1,002 men and women aged 18 and older nationwide, Lee Jae-myung recorded a favorability rating of 33%, following Seoul Mayor Oh Se-hoon (36%) and Cho Kuk, leader of the Cho Kuk Innovation Party (35%). Conversely, in the unfavorability rating survey, Lee Jae-myung received 58%, tying with former People's Power Party emergency committee chairman Han Dong-hoon. Cho Kuk recorded 54%, and Mayor Oh Se-hoon recorded 50%. The survey was conducted 100% by phone interviews (CATI) based on wireless virtual numbers provided by the three telecom companies, with a sampling error of ±3.1% points at the 95% confidence level. Gender, age, and region weights (cell weighting) were applied based on the Ministry of the Interior and Safety's resident registration at the end of December 2023. Detailed information can be found on the website of the Central Election Survey Deliberation Commission. Additionally, there are concerns within the party regarding the revision of party rules promoted by the pro-Lee faction. Recently, five-term senior Democratic Party lawmaker Lee In-young pointed out on YTN Radio's 'Bae Seung-hee's News Fighting' that the push to amend the party rules to allow an exception for the party leader to resign a year before running for president is problematic. It is interpreted that this criticism arises because such a move could appear to make the party a private entity solely for Lee Jae-myung. Lawmaker Lee In-young said, “If Representative Lee Jae-myung seeks re-election as party leader, it would likely be criticized as 'making laws for a specific person,'” adding, “Instead of tampering with the party rules, I would have thought about what the Democratic Party should do.” #LeeJaeMyung #DemocraticParty #Reelection #PartyLeadership #PoliticalInfluence #ProLeeFaction #ModerateSupport #PresidentialRace #LegalRisks #PartyRules
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- LG Chem's Shin Hak-cheol Named Davos Forum Co-Chair: "Essential to Unite for Climate Crisis"
- Shin Hak-cheol, Vice Chairman of LG Chem, has been elected as a Co-Chair for the Summer World Economic Forum (WEF) Annual Meeting (Davos Forum). LG Chem announced that Vice Chairman Shin would participate in the "2024 New Champions Annual Meeting" of the WEF, which will be held in Dalian, China, from the 25th to the 27th of this month. The company explained that Vice Chairman Shin is participating as a Co-Chair of the "New Champions Annual Meeting" upon the invitation of WEF President Børge Brende. This marks the first time a Korean business leader has been selected as a Co-Chair. A WEF official stated, "Given the importance of participation from the Asian region in the development of the chemical advanced materials industry and achieving net zero (zero carbon emissions), we expect Vice Chairman Shin, the first Korean business leader to be elected as Chair of the Chemical and Advanced Materials Industry Cluster, to lead the cooperation among industry leaders." According to the company, Vice Chairman Shin will deliver a keynote speech on next-generation battery material technology, a crucial component of renewable energy systems, at the "Industrial Energy Revolution Session." Additionally, by invitation of the WEF, Vice Chairman Shin will be the sole speaker at a session involving startups from the AI, energy, and healthcare sectors. As a representative of Korean chemical companies, Vice Chairman Shin will also meet with Chinese Premier Li Qiang and major figures such as Sinopec, China's state-owned oil company, to discuss key global economic issues. This year's WEF Annual Meeting Co-Chairs include Vice Chairman Shin, China Huaneng Group CEO Wen Shugang, Hong Kong Stock Exchange (HKEX) CEO Chan Yi-Ting, UN Deputy Secretary-General Amina Mohammed, and approximately ten others. The conference, held under the theme "The Next Frontier for Growth," will be attended by about 1,500 participants from business, government, and academia. The conference will discuss ways to drive actions for productivity improvement, economic growth, energy transition, and a carbon-neutral and nature-friendly future. Vice Chairman Shin commented, "In order to find sustainable growth measures in response to the rapidly changing global business environment and climate crisis, comprehensive cooperation across the industry is essential." He added, "LG Chem will accelerate the transition to our three major new growth engines—battery materials, eco-friendly materials, and more—by collaborating with global leaders in various fields from the chemical advanced materials industry to AI, energy, and healthcare." #ShinHakCheol #LGChem #WEF #DavosForum #NewChampions #ChinaDalian #Batteries #NetZero #RenewableEnergy #GlobalEconomy
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- KG Mobility Strives to Increase Sales; "We'll Go Anywhere in the World If We Can Sell"
- KG Mobility is making vigorous efforts to expand its sales by entering the taxi market and actively seeking opportunities in global markets such as Paraguay in South America. The company is determined to venture into even the smallest markets if it can boost its sales. This strategy reflects Chairman Kwak Jae-sun's determination to explore niche markets to increase the recently dwindling sales. In May, KG Mobility entered the domestic taxi market for the first time since its establishment. The vehicles launched for taxi use include three mid-sized SUVs: 'Torres EVX Taxi,' 'Korando EV Taxi,' and 'The New Torres Bifuel LPG Taxi.' The company has equipped these vehicles with various safety and convenience features tailored for taxi operations and offers the longest free battery warranty in the country to attract taxi drivers. Taxis have a regular replacement cycle, ensuring stable demand once the market is penetrated. The increasing demand for electric taxis and the growing consumer preference for SUVs with luggage space prompted the launch of these vehicles. In March, the company launched the Torres and Torres EVX in New Zealand and promoted these vehicles at New Zealand's largest agricultural expo from June 12 to 15. New Zealand, with its low population density and poor public transport infrastructure, has one of the highest car ownership rates globally. Since the country relies entirely on imports for its vehicles, KG Mobility sees it as a promising market. On June 11, KG Mobility launched the Torres in Paraguay, where SUVs accounted for 48% of the automotive market in the first half of 2023. The company believes its SUVs are competitive in terms of product features and pricing in the Paraguayan market. The company's recent strategy of entering small but viable markets is linked to its efforts to address declining sales. Annual sales, which had been decreasing since 2017, rebounded in 2022 due to the success of the Torres launch. However, sales have been declining again since the third quarter of 2023 as the new model effect waned. The domestic taxi market sells about 40,000 units annually, New Zealand's market sells about 110,000 units, and Paraguay's market sells about 30,000 units annually. These figures are small compared to the over one million units sold annually in the domestic market. However, considering KG Mobility's domestic sales do not exceed 100,000 units annually, success in smaller markets can still significantly boost sales. Chairman Kwak Jae-sun previously stated, "It is important to dig deeply into one market, but it is also important to dig widely. KG Mobility is not yet a global brand, so we will differentiate our strategy instead of following other brands." #KGMobility #KwakJaeSun #TorresEVX #globalmarket #salesexpansion #automotiveindustry #electricvehicles #taximarket #Paraguay #NewZealand
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- SK Group Undergoes Surgery: Choi Chang-won Leads Subsidiary Mergers and Job Cuts
- Choi Chang-won, Chairman of the SK SUPEX Council, who oversees the SK Group's restructuring, has initiated measures to consolidate subsidiaries and reduce executive staff. Chairman Choi has begun consolidating the 219 subsidiaries as of the end of last year while reducing executives and reallocating personnel, focusing on poorly performing affiliates. The sale of stakes in non-core business segments and various overseas investments is expected to accelerate in the second half of the year. According to industry sources on the 21st, ahead of the SK Group's management strategy meeting to be held at the SKMS Research Institute in Icheon, Gyeonggi Province, starting on the 28th, major subsidiaries are undergoing irregular executive reshuffles. Park Sung-ha, CEO of SK Square, was recently dismissed by the group due to poor performance, and Sung Min-suk, Chief Commercial Officer (CCO) of SK On, recently stepped down. Additionally, in May, Park Kyung-il, CEO of SK Ecoplant, was abruptly replaced before completing his term. Moreover, significant personnel changes are expected among executives below the Chief level. SK On is reportedly reducing the number of executives significantly while relocating some to SK Innovation. It is known that some executives have already received dismissal notices. Additionally, key subsidiaries of SK Group, including SK Innovation and SK Square, are expected to reduce the number of executives and reorganize their structures. An industry insider said, “Organizational streamlining has been pursued at major SK affiliates since the beginning of this year. I understand that SK On is considering eliminating some C-level positions.” The number of subsidiaries that rapidly increased in recent years will also be drastically reduced. Chairman Choi recently stated in a management meeting, "It doesn't make sense to have so many subsidiaries that we don't even know by name and can't manage. We need to drastically reduce the 219 subsidiaries to a controllable range." SK Group has the largest number of subsidiaries in Korea with 219, 91 more than Kakao, which has the second most with 128. This is more than three times the number of subsidiaries of Samsung Group (63), Hyundai Motor Group (70), and LG Group (60). The increase in subsidiaries resulted from indiscriminate business expansion during favorable internal and external conditions, with many of these subsidiaries now not generating profits and burdening the group. Therefore, Chairman Choi has reportedly instructed the consolidation of subsidiaries pursuing similar businesses, including the merger of SK Innovation and SKE&S and the merger of SK On and SK Enmove. Additionally, non-core or low-profit businesses, such as the sale of SK Rent-a-Car and SK Magic's home appliance division by SK Networks in the first half of this year, are expected to be actively sold off. Currently, SK Group has put up SK IE Technology (SKIET), a battery separator manufacturer, and 11st, among others, for sale. Potential subsidiaries for sale include SK Specialty (specialty gas manufacturer), SK T&I (trading company), SK Entom (tank terminal company), SK Electric Link (electric vehicle charging company), and SK Advanced (propylene manufacturer). There are also speculations that SK Square, the group's investment specialist company, will divest its investments in 23 companies, excluding key affiliates like SK Hynix. Chairman Choi has already announced in April at the SUPEX Council that “reading environmental changes in advance and adjusting plans is a natural part of daily management activities. While some businesses are well-prepared, others are not,” hinting at a group portfolio rebalancing. The negotiations for the sale of SK Group's 9.5% stake in Vietnam's Masan Group, acquired in 2018 for $450 million (approximately KRW 530 billion), are reportedly in the final stages. Negotiations are also underway to sell its 6.1% stake in Vingroup, known as the 'Samsung of Vietnam,' which SK Group acquired in 2019 for $1 billion (approximately KRW 1.18 trillion). At the management strategy meeting from June 28-29, SK Group is expected to present strong self-rescue measures to overcome the crisis, including business restructuring, the sale of subsidiary stakes, and personnel reallocation. The business community anticipates that SK Group will reorganize its business structure to focus on digital businesses such as semiconductors and AI, and eco-friendly green businesses such as batteries, hydrogen, and bio. They will concentrate investments in these areas while actively selling off non-core businesses to alleviate financial pressures. Chairman Chey Tae-won, Chairman Choi Chang-won, Executive Vice Chairman Chey Jae-won of SK Innovation, and around 200 group executives, including key affiliate representatives, will attend this management strategy meeting. #SKGroup #BusinessRestructuring #ChoiChangwon #SKSUPEXCouncil #SubsidiaryConsolidation #ExecutiveReduction #NonCoreBusinessSale #ManagementStrategy #InvestmentReallocation #FutureBusinessFocus
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- SK Group Restructures: Chey Jae-won Leads SK Innovation Shift to Batteries and Hydrogen
- The SK Group's business restructuring appears imminent. In particular, scenarios are emerging that center on SK Innovation, the group's intermediate holding company, to reorganize its energy business around hydrogen and batteries. Chey Jae-won, the newly appointed Senior Vice Chairman of SK Innovation, faces the critical challenge of overcoming the management difficulties of SK On, the battery business subsidiary. Chey is also expected to undertake significant restructuring to transition from traditional fossil fuel-based petrochemical businesses to new energy sectors like batteries and hydrogen in the medium to long term. According to industry sources on the 20th, SK Group is preparing a major business restructuring plan, including integrating and selling subsidiaries, and aims to finalize specific execution plans during the management strategy meeting on June 28-29. A key focus during the restructuring process is expected to be securing facility investment funds for SK On and establishing a profitable structure, which is crucial for the entire group. SK On, which was spun off from SK Innovation's battery business unit in 2022, has never recorded an operating profit. As of the first quarter of this year, its accumulated deficit exceeds KRW 2 trillion. Despite continuous negative operating cash flows, significant funds have been poured into facility investments, increasing the debt burden due to external borrowing. This year, approximately KRW 7.5 trillion needs to be invested in battery facilities through joint ventures with global automakers, but securing funds remains challenging. As of the end of the first quarter, SK On's short-term borrowings stand at KRW 7.8613 trillion, with bonds and long-term borrowings reaching KRW 10.3114 trillion. Given the limitations of SK On in overcoming management difficulties on its own, it is interpreted that the group has taken out a restructuring card for its entire energy business. Thus, the business restructuring of SK Innovation, which holds SK On as a subsidiary, is being considered first. It is widely expected that SK Innovation's business restructuring will proceed by securing cash to support SK On and attaching other subsidiaries that generate cash to SK On. Merging a profitable company with SK On would increase its own investment capacity through operating cash flows and enhance its valuation during a future IPO. In this context, the potential merger between SK Innovation and SKE&S, which is engaged in the hydrogen business, is being considered. SKE&S is a profitable company with an operating profit of KRW 1.3317 trillion last year. Merging it with SK Innovation would be advantageous in securing cash to support SK On. After the merger, there is also a possibility of improving SK On's cash flow by merging subsidiaries like Narae Energy Service (electricity, gas, steam, and air conditioning supply), Prism Energy (LNG business), and Busan City Gas under the existing SKE&S with SK On. The merger of the two companies is also seen as a move to unify the group's future energy business. SK Innovation stated in a disclosure on the 20th that "various strategic options are being considered, but nothing has been decided yet" regarding the merger rumors. The business community is treating the merger of SK Innovation and SKE&S as a given. Chairman Chey Tae-won seems to have judged that Chey Jae-won is the most suitable person to drive the full-scale restructuring of the group's energy business, which is why he was moved from SK On to Senior Vice Chairman of SK Innovation. Chey Jae-won is currently also serving as Senior Vice Chairman at SKE&S. This makes him the most effective person to push forward the integration scenario between SK Innovation and SKE&S. Chey is expected to lead the transition of the energy business structure from fossil fuels to batteries and hydrogen in the medium to long term. This restructuring is analyzed to be because SK Group has particularly designated the hydrogen business as a core future business. Chairman Chey Tae-won has declared that the group aims to be the world's No. 1 in hydrogen by 2025, highlighting the significant role the hydrogen business plays in SK Group's future energy strategy. With increasing global regulations on carbon neutrality and the massive petrochemical facility investments by China and the Middle East making it difficult to maintain existing petrochemical businesses, the group is placing more emphasis on the hydrogen business. SK Group's hydrogen business has made significant progress recently. SKE&S completed the world's largest liquefied hydrogen plant in Incheon last month, capable of producing 30,000 tons annually, marking the first step in establishing a hydrogen ecosystem. By 2025, a production system capable of producing 250,000 tons of liquefied hydrogen annually will be established in Boryeong. To advance hydrogen technology, SKE&S is also building cooperative systems with overseas companies. It is collaborating with U.S. hydrogen specialist Plug Power to explore hydrogen distribution and utilization businesses. SKE&S, through the joint venture SK Plug Hivers, is establishing electrolysis facilities to produce green hydrogen. SK Plug Hivers is also preparing to build liquefied hydrogen refueling stations in collaboration with Japanese liquefied hydrogen technology company Nikiso. #SKGroup #BusinessRestructuring #SKInnovation #CheyJaewon #SKOn #HydrogenBusiness #BatteryBusiness #EnergyTransition #CorporateStrategy #InvestmentPlans
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- Won Hee-ryong to Run for PPP Leadership: "Unite for Reform"
- Former Minister of Land, Infrastructure and Transport Won Hee-ryong has officially announced his candidacy for the People Power Party (PPP) convention. In a statement on the 20th, Won said, "After reflecting on the future of Korea and our party following the crushing defeat in the last general election, I concluded that the party and government must unite to achieve the change and reform that the public demands. Therefore, I have decided to run in the convention." With Won's official declaration, it is expected that more candidates will announce their intention to run in the PPP convention. Former PPP Emergency Committee Chairman Han Dong-hoon is set to announce his candidacy on the 23rd, while Representative Na Kyung-won is reportedly contemplating her bid. Political analysts predict that the PPP leadership race will be a four-way contest among Han Dong-hoon, Won Hee-ryong, Na Kyung-won, and Representative Yoon Sang-hyun. The PPP convention will be held on July 23.
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- Ham Young-joo Becomes Hana Financial Group's 'Overseas Salesman' Again, Strives for 'Asia's Best'
- Ham Young-joo, the Chairman of Hana Financial Group, is embarking on overseas trips again this year to meet foreign investors, continuing his efforts from last year. Chairman Ham envisions making Hana Financial Group the top financial group in Asia, and the trust of foreign investors can be a solid support in this process. According to Hana Financial Group on the 19th, Chairman Ham, after leaving Hong Kong, is preparing for one-on-one meetings with institutional investors in Sydney, Australia. On the 17th and 18th, Chairman Ham held marathon meetings with potential investors in Hong Kong, the financial hub of Asia. During these meetings, he explained Hana Financial Group's financial performance, medium- to long-term growth strategies, and shareholder value enhancement plans. He also discussed management performance and the direction for advancing as a global financial institution with major institutional investors in Hong Kong. Chairman Ham has effectively taken on the role of Hana Financial Group's overseas 'salesman.' This year is not the first time he has traveled abroad to communicate with foreign investors. Last September, he attended investor relations (IR) events in Hong Kong and the Netherlands in October to present Hana Financial Group's achievements and vision. In May last year, he participated in the 'Joint IR of Financial Sectors' held in Singapore and Indonesia, an event aimed at supporting the overseas investment attraction and expansion of domestic financial companies. The background to Chairman Ham's active communication with foreign investors lies in Hana Financial Group's high proportion of foreign investors. About 70% of Hana Financial Group's investors are foreigners. The continued trust and investment of foreign investors can be a driving force for Hana Financial Group's growth. Considering Chairman Ham's goal of elevating Hana Financial Group from the top in Korea to the top in Asia, consistently sharing the group's achievements, vision, and growth plans in the overseas market is crucial. This is because it can strengthen Hana Financial Group's stature in the global market. In the New Year's address this year, Chairman Ham said, "We must achieve sustainable growth by strengthening our competitiveness and global status based on solid internal control and risk management, and by expanding new territories." Moreover, Chairman Ham's direct visits to foreign countries align with the 'on-site management' approach. Chairman Ham, who started as a regular bank employee and rose to become president of the bank and now chairman of the holding company, is known as a 'sales expert' of Hana Financial Group. Having spent most of his career in the field, he has always emphasized on-site management. When he visited Hong Kong last September, Chairman Ham said, "There is nothing more important than listening to the voices of overseas investors and local employees to broaden opportunities for cooperation and communication on the global front." Hana Financial Group plans to continue strengthening communication with global investors. A Hana Financial Group representative said, "Starting this year, we have changed our group's quarterly business performance announcement from an audio conference call format to a video webcasting format," and added, "In the second half of the year, we will actively engage in on-site communication management to hear the diverse voices of global investors." #HanaFinancialGroup #HamYoungjoo #GlobalInvestors #AsiaTopFinancialGroup #InvestorRelations #FinancialGrowth #OnSiteManagement #ForeignInvestment #CorporateVision #FinancialPerformance
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- Kim Dong-kwan Steers Hanwha Ocean's Recovery, Accelerates Energy and Defense Investment
- Kim Dong-kwan, Vice Chairman of Hanwha Group, has successfully returned Hanwha Ocean to stable operations, now focusing on boosting growth through new energy and defense ventures. With KRW 1.5 trillion raised through a rights issue last year, Hanwha Ocean is set to maximize synergy with Hanwha Group’s energy and defense sectors. As of this year, Hanwha Ocean is on a solid recovery path, marking a successful turnaround within just a year of its official launch under Hanwha Group. Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, had struggled against competitors like HD Hyundai Heavy Industries and Samsung Heavy Industries due to its unclear management leadership. This resulted in business difficulties across new ventures, sales activities, and talent acquisition. In 2022, Hanwha Ocean posted an operating loss of KRW 196.5 billion, the only one among the top three domestic shipbuilders to do so. However, post-acquisition by Hanwha Group, the company has begun to regain its former stature. With the company now almost fully normalized, the shift from long-term operating losses to a profitable structure is evident. Hanwha Ocean recorded an operating profit of KRW 52.9 billion in Q1 2024, achieving a quarterly turnaround, with continued profitability expected in subsequent quarters. Hanwha Ocean plans to build 22 LNG carriers this year, potentially boosting sales and profitability significantly, with an expected 24 LNG carriers for next year. According to VesselValue, new orders for LNG carriers reached 78 in January-May 2024, more than doubling from 34 in the same period last year, with new build prices hitting a record high of USD 269 million for a 174,000 cbm LNG carrier. Under Hanwha Group, selective order strategies have improved profitability. Reports indicate upcoming orders for three VLCCs from Omani state-owned Asyad and Greek shipowner Chandris, priced at USD 128 million each, with delivery scheduled for 2026. While Chinese shipyards dominate the VLCC sector, Hanwha Ocean's secured slots up to 2027 provide a competitive edge in additional VLCC orders. With operations normalized, Vice Chairman Kim is spearheading new ventures for Hanwha Ocean. Significant portions of the KRW 1.5 trillion from the rights issue are earmarked for these new businesses. Hanwha's entry into shipbuilding aligns with Kim's strategy to enhance the group's energy and defense footprint. As a non-executive director, Kim is deeply involved in Hanwha Ocean's management. A recent investment of KRW 1.8 billion each by Hanwha Ocean and Hanwha Aerospace into U.S. LNG developer NextDecade highlights synergies with Hanwha’s energy business. Hanwha Ocean secured shares through its subsidiary, Hanwha Ocean USA International. NextDecade is engaged in a project to produce 27 million tons of LNG annually in Texas. Hanwha's LNG imports for power generation will now include LNG produced directly by the group, supporting gas turbine and hydrogen mixed-fuel turbine projects. Hanwha Shipping LLC, an energy-focused shipping company established by Hanwha Ocean’s U.S. subsidiary, is poised to play a significant role in the LNG business. Hanwha Ocean is also preparing investments to bolster its core defense sector. Plans are underway to acquire a U.S. shipyard specializing in naval vessels, with Philly Shipyard being a leading candidate. Kang Kyung-tae, a researcher at Korea Investment & Securities, noted, “Hanwha Ocean's acquisition of a U.S. shipyard aims at MRO (maintenance, repair, overhaul) and potentially new builds for the U.S. Navy’s 2nd to 4th Fleets, forming a key part of its new defense ventures.”
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- KB Financial vs. Shinhan: Yang Jong-hee's Overseas Success Crucial
- Yang Jong-hee, the Chairman of KB Financial Group, is expected to engage in a fierce battle with Shinhan Financial Group to maintain its position as the leading financial institution this year. Chairman Yang is receiving praise for effectively managing major challenges across the group, such as the large-scale compensation issue related to Hong Kong H Index Equity-Linked Securities (ELS) and strengthening the performance of non-banking sectors. However, despite these efforts, the group has yet to show visible achievements in overseas business, which is expected to become a heavier burden in the competition for leading financial positions. According to financial information provider FnGuide on the 18th, KB Financial is projected to record a consolidated net profit (attributable to controlling shareholders) of KRW 1.4488 trillion (approximately USD 1.044 billion) in the second quarter. This forecast slightly surpasses Shinhan Financial's expected net profit of KRW 1.2973 trillion (approximately USD 935.2 million), suggesting that KB Financial will reclaim the top spot in net profit among the four major financial groups. In the first quarter, KB Financial lost its lead in net profit to Shinhan Financial due to the significant costs incurred for the Hong Kong ELS compensation. However, it is set to regain its position as the leading financial institution within just one quarter. KB Financial and Shinhan Financial are expected to engage in intense quarterly net profit competitions throughout this year. The annual net profit projections for KB Financial and Shinhan Financial also show minimal differences. According to FnGuide, KB Financial's annual net profit is expected to be KRW 4.823 trillion (approximately USD 3.48 billion), while Shinhan Financial's is projected to be KRW 4.74 trillion (approximately USD 3.42 billion), with the difference being less than KRW 100 billion (approximately USD 72 million). Given the fierce performance battle expected, Chairman Yang is likely to put more effort into normalizing overseas business operations. KB Financial is evaluated to have overcome the Hong Kong ELS compensation handicap, considered the biggest challenge this year, more stably than expected. The non-banking affiliates, newly organized under Chairman Yang's leadership, showed an increase in profits in the first quarter, contributing more to the group's performance. However, the overseas business performance remains the poorest among the four major financial groups. The gap becomes even more apparent when compared to Shinhan Financial, which is competing for the leading financial position. Excluding Indonesia's KB Bank (formerly KB Bukopin Bank), KB Financial's overseas business posted a net profit of approximately KRW 67.2 billion (approximately USD 48.5 million) in the first quarter of 2024. This marks a 46.8% decrease from USD 91.6 million in the same period of 2023. Including the performance of Indonesia's KB Bank, the net profit from overseas business further declines. According to KB Kookmin Bank's quarterly report, KB Bank posted a net loss of KRW 52.9 billion (approximately USD 38.1 million) in the first quarter, widening the deficit from KRW 33.6 billion (approximately USD 24.2 million) in the same period of 2023. Consequently, the overseas business accounts for less than 5% of KB Financial's total net profit in the first quarter of this year. In contrast, Shinhan Financial posted a net profit of KRW 215 billion (approximately USD 155 million) from overseas business in the first quarter, a 35.4% increase from the same period in 2023. The proportion of overseas business in the group's net profit reached 16.3%. Compared to Hana Financial (KRW 171.7 billion, approximately USD 123.8 million) and Woori Financial (KRW 72.2 billion, approximately USD 52.1 million), KB Financial's overseas business performance lags behind. Chairman Yang has identified the improvement and expansion of KB Financial's overseas business performance as a major management task. Since taking office as the chairman of KB Financial, Yang has strengthened the global division by making it an independent division in the first organizational restructuring of the holding company. He also personally attended the launch event of the integrated commercial bank of KB Prasac Bank in Cambodia in February this year. In March, KB Financial changed the name of KB Bukopin Bank to KB Bank to create synergy among its affiliates in Indonesia. It is also pursuing investments in developed markets such as New York and London, as well as new overseas markets in Latin America, the Middle East, and Africa. At a workshop held on May 28th, where Yang invited employees from the group's overseas business units, he promised to make generous investments to enhance the competitiveness of the global business. A KB Financial official said, "KB Bank is continuously working on normalizing management with a long-term perspective by selling a large amount of bad debts and recovering non-performing loans. With the opening of the next-generation computer system in the second half of this year, it will establish a foundation to target the retail and SME (small and medium-sized enterprises) markets in earnest." #KBFinancial #ShinhanFinancial #financialcompetition #YangJonghee #overseasbusiness #netprofit #HongKongELS #nonbankingperformance #globalexpansion #financialperformance
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- KRX's Jeong Eun-bo Visits Hong Kong and Singapore for 'K-Value-Up Global Roadshow'
- Jeong Eun-bo, the Chairman of the Korea Exchange, actively promotes the Corporate Value-Up Program in Hong Kong and Singapore. The Korea Exchange announced that Chairman Jeong Eun-bo will depart on the 17th to promote the Corporate Value-Up Program and strengthen cooperation networks among Asian exchanges. Chairman Jeong will visit Hong Kong and Singapore this month to promote the Corporate Value-Up Program. During this roadshow, Chairman Jeong will meet with major foreign investors to explain the guidelines for enhancing corporate value and report on the progress so far. He will also meet with global institutional investors to request an expansion of investment in the Korean market. Chairman Jeong will discuss cooperation measures for the development of capital markets in key Asian exchanges with the Chairman of the Hong Kong Exchange and the CEO of the Singapore Exchange. Chairman Jeong Eun-bo stated, 'There is high interest from global investment institutions in Corporate Value-Up,' and added, 'I will consistently support the reassessment of the domestic stock market and actively communicate with market participants.'
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- APR's Early Success in Chinese Market with Beauty Devices, Kim Byung-hoon's 'Global Roadmap' Green Light
- [Business Post] Kim Byung-hoon, CEO of A.P.R., has shown a green light for overseas expansion by achieving initial success in China within a month of official entry. Rather than securing operating funds at the time of listing, the goal was to increase overseas influence, and they have taken a step closer to that. According to A.P.R. on the 13th, they ranked 4th in the sales category of beauty devices during China's largest online shopping event in the first half of the year, the 618 Shopping Festival. According to the Chinese social networking service (SNS) Douyin, A.P.R. recorded sales of KRW 3.6 billion from May 24 to 29 when the 618 Shopping Festival promotion began. Compared to the first quarter sales of KRW 7.6 billion in China this year, they achieved half of the first quarter sales during the shopping festival period. Although A.P.R. officially entered China through its flagship beauty device, Booster Pro, on May 20, it has already begun to gain significant success. Although they entered the market in 2022, Booster Pro is now considered A.P.R.'s next-generation beauty device and main product, indicating a full-fledged approach to China. CEO Kim stated during the IPO this year that he would focus more on overseas expansion rather than securing operating funds, and he is now seeing results. In fact, A.P.R. has subsidiaries in 10 countries, including Japan, Taiwan, Singapore, China, Hong Kong, the United States, Canada, Malaysia, and France. Moreover, this year, they have signed distribution agreements with Turkey, Qatar, Moldova, and are actively expanding their market strategies. CEO Kim mentioned during the IPO, 'Rather than securing operating funds, I aim to increase influence overseas,' and stated, 'I will enhance future value by establishing a technological gap in beauty devices and securing stable global sales through new products.' His goal of increasing overseas presence is progressing smoothly. Starting from the second quarter of this year, they will launch new products in the U.S. and intensify their efforts in the household beauty device market. Jung Ji-yoon, an analyst at NH Investment & Securities, expects that A.P.R.'s MediCube Age R will gain a foothold in the U.S. household beauty device market. She hopes that in the second quarter of this year, they will export the next-generation model, Booster Pro, of MediCube Age R to the U.S., China, and Japan. The U.S. is currently considered a market that A.P.R. is actively targeting. Currently, A.P.R. sells four beauty devices, including Age R Booster, on Amazon, the largest online shopping mall in the U.S. Moreover, this year, they opened a pop-up store in New York to expand their consumer base through offline events. An A.P.R. official mentioned in an interview with Business Post, 'We are conducting business both online and offline in the U.S.,' and stated, 'We recently conducted promotional activities through pop-up stores.' Kim, as the CEO, is swiftly achieving the goals set during the IPO. However, the proportion of overseas sales has not yet exceeded domestic sales. As of the first quarter of 2024, A.P.R. achieved sales of KRW 148.9 billion, a 21.9% increase from a year ago. As of the first quarter of this year, the export ratio of A.P.R.'s total sales is around 39.2%. However, considering the growth rate, there is a possibility that this year's overseas sales may exceed domestic sales. In the first quarter of this year, domestic sales remained at a similar level to a year ago, but sales increased in all regions overseas. Notably, in the first quarter of 2024, sales in the U.S. reached KRW 24.8 billion, a 196.4% increase from a year ago. With the operation of two factories in Pyeongtaek, Gyeonggi-do, starting from May, it is expected that sales will increase due to production expansion. Kwak Min-jung, an analyst at Hyundai Securities, stated, 'The global home beauty device market is showing rapid growth,' and 'In the U.S., the demand for 'anti-aging' related devices is increasing due to the rapid increase in the elderly population and the income growth of middle-aged and older adults, raising expectations for A.P.R.'s performance growth.' Jang Eun-pa, Reporter
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- Doosan Chairman Meets Kazakh President for Energy Cooperation
- Park Jeong-won, Chairman of Doosan Group, discussed ways to cooperate in Kazakhstan's energy industry with President Kassym-Jomart Tokayev of Kazakhstan. Doosan Group announced on the 13th that Chairman Park had a separate meeting with President Tokayev in Astana, Kazakhstan, on the 12th. Chairman Park is participating as a member of the economic delegation during President Yoon Suk-yeol's state visit to Kazakhstan. On the 12th, he met President Tokayev at the Hilton Astana Hotel, where the Korea-Kazakhstan Business Forum was held, to discuss cooperation in the Kazakh energy industry. The meeting was attended by Kazakhstan's Energy Minister Almassadam Satkaliyev, Foreign Minister Murat Nurtleu, and CEO of Samruk-Kazyna Nurlan Zhakupov. From Doosan Enerbility, Vice Chairman Jeong Yeon-in and Vice President Kim Jeong-gwan were present. The meeting was reportedly arranged due to Kazakhstan's high proportion of thermal power generation and the growing need for modernization of old thermal power plants, aligning with Doosan Group's expertise in the power generation sector. Chairman Park said, "Doosan, with its unrivaled technology and business performance in the energy sector, prides itself on being the optimal partner for Kazakhstan's energy projects. We hope for your interest and support so that Doosan can contribute further to the development of Kazakhstan's energy industry." In response, President Tokayev said, "I have a special interest in the construction of the Turkestan power plant by Doosan and will continue to pay close attention to it. I fully support and will spare no support for cooperation with Samruk-Kazyna." President Tokayev also expressed his gratitude for Doosan Enerbility's support of about $10,000 for flood recovery in Kazakhstan last month, stating, "I am very grateful for your sincerity in showing concern and comforting the affected residents in relation to the recent flood damage." Doosan Enerbility secured the construction of the Karabatan Combined Cycle Power Plant in Kazakhstan in 2015. Last year, it signed a contract worth KRW 1.15 trillion (US$ 829.6 million) with Turkistan LLP, a subsidiary of Samruk-Kazyna, for the construction of a combined cycle power plant in the Shymkent region. #Doosan #ParkJeongwon #Kazakhstan #EnergyIndustry #BusinessMeeting #KoreaKazakhstan #PowerGeneration #Tokayev #SamrukKazyna #FloodRecovery
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- FSC Chairman Lee Bo-hyun: 'Duty of Care for Directors in the Commercial Act Should Be Expanded to Protect Shareholders' Interests'
- [Business Post] Lee Bok-hyun, the head of the Financial Supervisory Service, emphasized the need to expand the fiduciary duty of corporate directors to protect the interests of shareholders during the revision of the Commercial Act.
The director stated at a corporate governance policy seminar for capital market advancement held at the Korea Financial Investment Association in Yeouido, Seoul on the 12th, 'Cases where companies or individuals pursue interests not of all shareholders but specific individuals are occurring frequently, such as spin-off listings. It is time for social discussions on expanding the fiduciary duty of directors in the Commercial Act to protect the interests of the company and shareholders.'
Lee Bok-hyun, head of the Financial Supervisory Service, giving a congratulatory speech at the 'Corporate Governance Policy Seminar for Capital Market Advancement' held at the Korea Financial Investment Association in Yeouido, Seoul on the morning of the 12th.
The director added, 'The laws of Delaware and the Model Business Corporation Act in the United States explicitly regulate fiduciary duties regarding shareholders. The UK, Japan, and others are also making efforts to protect the interests of shareholders through precedents and guidelines.' However, he pointed out the need to consider the uniqueness of Korean Commercial Law and the business environment. In Korea, violating the fiduciary duty of directors under the Commercial Act can lead to criminal punishment for embezzlement. In most foreign countries, a violation of the fiduciary duty of directors leads to civil litigation. The director stated, 'Considering the Korean uniqueness where expanding the scope of fiduciary duty of directors can lead to criminal issues of embezzlement and excessively weaken the business environment, it is necessary to explicitly institutionalize the principle of business judgment immunity, where directors can be exempt from civil and criminal penalties when making reasonable management decisions based on sufficient information.' Park Hye-rin, Reporter
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- KDB Faces Many Core Tasks, but Kang Seog-hoon Keeps Pushing Busan Relocation
- "We will strive to achieve practical relocation effects even before the revision of the Industrial Bank of Korea Act." Kang Seog-hoon, Chairman of KDB Industrial Bank, made this statement regarding the relocation to Busan during a press conference held on the 7th floor of the main office in Yeouido, Seoul, on the 11th, marking his second anniversary in office. Chairman Kang mentioned the issue of relocating the main office of the Industrial Bank right after highlighting a key task of supporting policy finance amounting to KRW 100 trillion (US$ 72.1 billion) for the advanced power industry. This undermined the public perception that the momentum for the Busan relocation had waned after the 22nd general elections. Despite the bank being busy with tasks to enhance industrial competitiveness, such as the merger of Asiana Airlines and Korean Air, nurturing the semiconductor industry, and capital expansion, Chairman Kang still views the relocation of the main office to Busan as one of the core issues for his remaining one-year term. He reiterated his belief that the relocation of the Industrial Bank is inevitable for the balanced development of the country. Chairman Kang diagnosed that the southern region's economy and industry, which led South Korea's high economic growth in the past, centered on auto parts, shipbuilding, machinery, steel, and petrochemicals, are facing rapid industrial environmental changes and growth limitations. He emphasized that relocating the main office of the Industrial Bank to Busan is necessary to revive the southern economy centered on Busan, Ulsan, and Gyeongnam, and to develop it as a new axis of economic growth for South Korea. He also made it clear that the relocation of the main office is not a project that can be overturned. The relocation of the main office has been pursued as a national task under the Yoon Suk-yeol administration and was designated as a target public institution for relocation in May last year, so the relocation work must continue. He also expressed his intention to persuade the National Assembly again for the necessary revision of the Industrial Bank of Korea Act to facilitate the relocation. Chairman Kang said, "Since the Industrial Bank Act ultimately needs to be revised for the relocation of the main office to Busan, we have continuously explained the necessity of the relocation to the National Assembly along with the Financial Services Commission," and added, "We will continue to persuade the National Assembly in cooperation with the government as soon as the 22nd National Assembly's Political Affairs Committee is formed." Despite showing a perplexed expression when asked if there were no achievements in persuading the 21st National Assembly, he responded, "I think no member of the National Assembly will oppose the premise and the great cause of making the southern region a new growth engine for South Korea and achieving balanced growth." Although Chairman Kang declared his intention to start persuasion work for the relocation in the 22nd National Assembly, the situation in the National Assembly remains challenging. The partial amendment bill of the Industrial Bank of Korea Act, which includes the relocation of the main office to Busan, was reintroduced in the 22nd National Assembly by lawmakers of the People Power Party from the Busan area, following the 21st National Assembly, but the majority of seats required for the passage of the bill are occupied by the Democratic Party. Furthermore, as in the 21st National Assembly, the Political Affairs Committee of the National Assembly, which will review the amendment, is predominantly composed of Democratic Party lawmakers who are averse to the bill. The opposition of the Industrial Bank employees to the relocation for more than two years is also a stumbling block for Chairman Kang's relocation push. During the press conference held in the lobby of the main office, the Industrial Bank labor union distributed booklets to journalists explaining the unfairness of the relocation. The Industrial Bank labor union argued in the booklet that "what the local regions really need is not a bank but money (investment), and the Industrial Bank must remain in Yeouido to raise funds at low interest rates in the financial market to provide low-interest funds to local companies." The Industrial Bank labor union is also planning to hold a rally on the 13th in the main office lobby to mark the second anniversary of the opposition to the relocation, with lawmakers Lee Jun-seok and Chun Ha-ram from the Reform Party attending the event. In response, Chairman Kang presented a contingency plan in case the revision of the Industrial Bank Act falls through, making the main office relocation difficult. He proposed to create a new investment organization covering not only the Bu-Ul-Gyeong region but also the Honam region, aiming to achieve 'practical relocation effects' even before the revision of the Industrial Bank Act. Specifically, he plans to establish the 'Southern Region Investment Finance Headquarters,' which will oversee the innovation ecosystem in the Yeong-Ho-Nam region and green finance, and additionally set up the Honam Region Investment Finance Center and the Regional Corporate Support Center under it. Chairman Kang emphasized, "We are trying to communicate with employees in various ways to soothe their dissatisfaction, explaining that our bank has been assigned a new role to create new economic growth engines through regional growth and that it is difficult to approach by rejecting the government's decision on the relocation to Busan." #KDBIndustrialBank #BusanRelocation #KangSeogHoon #PolicyFinance #IndustrialCompetitiveness #NationalBalancedDevelopment #SouthernRegionEconomy #IndustrialBankAct #NationalAssembly #FinancialServices
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- Lee Jae-yong meets Verizon CEO during US business trip, 'Let's tackle the business that no one else can'
- [Business Post] Lee Jae-yong, the chairman of Samsung Electronics, met with Hans Vestberg, the CEO of Verizon, on his business trip to the United States. During this two-week trip covering the western United States, the chairman aims to strengthen cooperation with major customers including Verizon and to boost new growth drivers. According to Samsung Electronics on the 6th, the chairman discussed various business aspects with Hans Vestberg, the CEO of Verizon, in New York on the 4th (local time), including technology and service strategies utilizing artificial intelligence (AI), prospects for next-generation communication technology, and strategies for enhancing customer value through technological innovation. In particular, they also discussed ways for customers to experience the AI features of the new Galaxy models at Verizon stores ahead of the Galaxy product launch. The meeting was attended by Noh Tae-moon, head of Samsung Electronics' Mobile Experience (MX) Business, Kim Woo-jun, head of the Network Business, and Choi Kyung-sik, President of North America. The chairman stated, 'Let's excel in businesses that everyone does and be the first to succeed in businesses that no one else can do.' Samsung Electronics is ramping up cooperation with Verizon, the world's largest telecommunications company and one of its top five revenue sources, to foster next-generation communication businesses. Verizon is Samsung Electronics' largest trading partner among global telecommunications companies. The two companies maintain a close partnership across Galaxy smartphones, tablets, wearable devices, network equipment, and more. The 'long-term network equipment supply contract including 5G (fifth-generation mobile communication)' signed by Samsung Electronics and Verizon in 2020 was recorded as the largest single export contract in the history of the Korean telecommunications equipment industry, worth KRW 7.9 trillion (US$ 5.75 billion). Samsung Electronics made a full-fledged entry into the U.S. 5G market following this contract. The company stated that the special relationship between Chairman Lee Jae-yong and CEO Vestberg plays an important role in maintaining the extensive partnership between Samsung Electronics and Verizon. Chairman Lee and CEO Vestberg have maintained a close relationship for over a decade since attending the 'Mobile World Congress' in Spain in 2010 as Vice Chairman of Samsung Electronics and Chairman of Swedish telecommunications company Ericsson, respectively. Even after CEO Vestberg moved to Verizon, their relationship continued, resulting in a significant equipment supply contract in the 5G field. Chairman Lee and CEO Vestberg frequently held video calls during the contract process to discuss new collaboration opportunities. Samsung Electronics is expanding the reach of 'Galaxy AI' by supporting existing product customers such as Galaxy S23, Z Fold5, Z Flip5, and Tab S9 released last year, in addition to the latest Galaxy S24 product, through software updates. Following the Samsung Ho-Am Prize ceremony on March 31st, the chairman departed for the United States to meet with CEOs and key figures in major U.S. information technology (IT), AI, semiconductor, and communication companies closely related to Samsung's future businesses. The chairman's current trip aims to strengthen cooperation with customers and explore new growth drivers, with a schedule of over 30 appointments divided into minutes from New York to Washington, DC, and across the United States until mid-April, as reported by Samsung Electronics. Won-seok Heo, Reporter
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- Samsung Biologics CEO: "Doubling Orders from Global Pharma Clients"
- John Rim, CEO of Samsung Biologics, expressed confidence as the number of global pharmaceutical company clients has increased this year. According to Samsung Biologics on the 6th, John Rim held a press conference on the 5th (local time) in San Diego, USA, where the Bio International Convention (BioUSA) is being held, and shared future business plans. John Rim stated, "We have signed contracts with 16 out of the top 20 global pharmaceutical companies," and added, "There are companies that have developed products that do not fit Samsung Biologics' production portfolio, so we have secured most of the big pharma clients." John Rim mentioned that Plant 5, which is being built in Songdo, Incheon, will start operations in April 2025, and they are reviewing related content for Plant 6. He said, "We have started securing orders so that Plant 5 can be operational as soon as it is completed, and we are also preparing to secure the necessary workforce accordingly. Regarding Plant 6, we are conducting internal studies and reviewing the timing of investments considering the ongoing demand." Regarding the 'Biosecure Act' being promoted by the US Congress, he explained that they are actively promoting it and preparing to expand their workforce. The Biosecure Act includes provisions that restrict US companies from trading with Chinese bio companies selected by Congress. The market expects that domestic pharmaceutical and bio companies will benefit from this. John Rim said, "Recently, the number of order inquiries from various clients has more than doubled," and added, "It will be an opportunity for many companies, including Samsung Biologics, to increase market share, and we will continue to promote and expand our workforce." Regarding the acquisition of foreign plants, he viewed it as more efficient to increase the number of plants in Korea. John Rim said, "We are making efforts to expand global bases by considering the construction or acquisition of plants in various places such as the US and Europe," and added, "However, we still believe that Korea is the most efficient and competitive." #SamsungBiologics #JohnRim #pharmaceuticals #biotech #globalexpansion #BioUSA #BiosecureAct #biomanufacturing #marketshare #IncheonPlant
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- Hyundai Steel Eyes Green Sector Growth Amid Industry Slump
- The domestic steel industry in South Korea remains trapped in a slump, continuing from last year into this year. As projections suggest that the downturn will persist in the second half of the year, Seo Gang-hyun, the CEO of Hyundai Steel, is drawing attention for his continued investments to capture the growing steel demand in eco-friendly industries, such as electric vehicles and offshore wind power. According to CEO Score, a corporate management analysis research institute, the steel industry's operating profit for the first quarter of this year was KRW 750.5 billion (US$ 541.3 million), a decrease of approximately 32.6% compared to the first quarter of last year's KRW 1.1136 trillion (US$ 803.3 million). The decline is attributed to the global steel demand downturn, influenced by factors such as the slump in China's real estate market and weak domestic construction activity. The World Steel Association has downgraded its forecast for global steel demand this year. In April of last year, it predicted this year's steel demand at 1.854 billion tons, but in October of the same year, it revised this down to 1.849 billion tons, and again in April this year to 1.793 billion tons. Furthermore, as domestic demand in China declines, Chinese steel companies are exporting large quantities of steel at low prices, adversely affecting domestic steel companies in South Korea. According to the Korea Iron & Steel Association, imports of Chinese steel into South Korea reached 8.73 million tons in 2023, an increase of 29.2% compared to 2022. In the first quarter of this year, Chinese steel accounted for 57% of the total imports at 2.28 million tons. Hyundai Steel is also struggling to improve its performance amidst the downturn. The company's operating profit for the first quarter of this year was approximately KRW 56 billion (US$ 40.4 million), down about 83% from the first quarter of last year. Lee Hyun-soo, an analyst at Yuanta Securities Korea, projected that the company’s operating profit in the second quarter would decrease by about 68% compared to the same period last year. Seo Gang-hyun assumed the role of CEO at the end of last year during these challenging market conditions. He is seeking new avenues by enhancing investments to meet the growing demand in eco-friendly industries, such as electric vehicles and offshore wind power. The company is constructing a dedicated electric vehicle sheet plant in Georgia, USA. This is in response to the growing demand for steel sheets due to the expansion of the U.S. electric vehicle market, and the plant is scheduled for completion in the third quarter of this year. Hyundai Steel has also embarked on the expansion of the heat treatment furnace at the Dangjin Plant No. 1 in Chungnam. This is to address the increased demand for high-quality heat-treated heavy plates, driven by the rising demand for eco-friendly fuel ships, such as LNG carriers and natural gas storage tanks. Construction began in February of this year and is expected to be completed in the fourth quarter. Additionally, the company is actively developing steel for offshore wind power and securing offshore wind power construction projects. Hyundai Steel expects the global demand for newly installed offshore wind power generators to increase from 17.4 gigawatts (GW) this year to 54.2 GW by 2030. Accordingly, the demand for large heavy plates is expected to rise from 1.36 million tons in 2024 to 9.81 million tons by 2030. In February, Hyundai Steel secured the construction project for the Nakwol Offshore Wind Power Plant in Yeonggwang, Jeollanam-do, with heavy plate deliveries scheduled within this year. The company is also pursuing major offshore wind power orders in Europe and East Asia. During the regular shareholders' meeting held on March 26, Seo stated, "We will secure future growth engines in line with the changing industrial paradigm." #HyundaiSteel #SteelIndustry #EcoFriendlyInvestments #ElectricVehicles #OffshoreWindPower #SteelDemand #KoreanSteelMarket #GlobalSteelDemand #HeavyPlates #RenewableEnergy
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- Will Yoon Overcome 'Gas Field Maneuver' Criticism Amid Rising Drilling Costs and Company Doubts?
- Will President Yoon Suk-yeol Overcome Opposition Criticism That 'East Sea Oil and Gas Field Development' Is Just a Political Maneuver? The enormous drilling costs and time required, as well as concerns about the credibility of the company analyzing the oil reserves, are expected to pose significant burdens. According to the political circles on the 5th, there is criticism that President Yoon's direct briefing on the oil exploration plan is a calculated move to shift the political landscape, given that it is an issue that will not be resolved within his term due to the lengthy process from exploration to production. Lee Hae-sik, the chief spokesperson of the Democratic Party, pointed out, "If the Yoon Suk-yeol administration's projections are correct, the East Sea Yeongil Bay oil field development will greatly contribute to the livelihood and economy," but he added, "However, it is highly suspicious that President Yoon announced this as a maneuver to overcome the decline in approval ratings." Offshore oil field development is a long-term project that takes 7 to 10 years from exploration to production. It is unlikely that tangible results will emerge within President Yoon's remaining three-year term, potentially leading to public disappointment. Democratic Party lawmaker Lee Eon-joo also criticized on Facebook, saying, "It is still just a possibility, so why is the president causing such a fuss and drilling with national tax money?" Moreover, there are suspicions about the American company ActeGeo, which raised the possibility of oil and gas reserves in the East Sea Yeongil Bay. Photos showing ActeGeo's headquarters in Houston, Texas as an ordinary house on LinkedIn have sparked suspicions that it might be a 'paper company.' There are also talks about the company's small number of employees and revenue. As these suspicions grew, Choi Nam-ho, the second vice minister of the Ministry of Trade, Industry, and Energy, appeared on CBS Radio's 'Kim Hyun-jung's News Show' to clarify. Vice Minister Choi stated, "Although ActeGeo is very small in overall size, it has the largest number of experts in deep-sea geological data analysis," and added, "The company's founder, Vitor Abreu, was a former president of the American Association of Petroleum Geologists and a group leader at ExxonMobil, the largest oil company in the United States." According to materials from the Korea National Oil Corporation, ActeGeo was founded in 2016 by former exploration experts from ExxonMobil, the largest oil company in the United States. They have evaluated numerous major exploration projects in Guyana, Bolivia, Brazil, Myanmar, and Kazakhstan. It is reported that Dr. Abreu, the founder and owner of ActeGeo, will hold a press conference on the 7th to explain the possibility of oil and gas reserves. According to the American business information site ZoomInfo, ActeGeo's annual revenue last year was $5.3 million (approximately KRW 7.5 billion), and it is identified as a small business with fewer than 25 employees. The opposition party argues that even if ActeGeo's credibility is set aside, if oil drilling fails, the enormous drilling costs could be passed on to the public. Kang Yoo-jung, the Democratic Party's spokesperson, stated in a press conference, "Since oil field development involves enormous taxpayer money, the government must thoroughly prove the feasibility of the project before proceeding with full-scale drilling." Kim Bo-hyup, the chief spokesperson of the National Innovation Party, remarked, "According to President Yoon's explanation, it costs over KRW 100 billion (approximately $72 million) to drill one well, and at least five wells need to be drilled, so at least KRW 500 billion (approximately $361 million) must be spent to determine whether there is actually oil and how much," and added, "Therefore, shouldn't the pre-verification be entrusted to at least three or four places?" Furthermore, the fact that President Yoon's first national briefing on oil field development was kept so secret that even the officials in charge at the Ministry of Trade, Industry, and Energy were unaware of the announcement until just before has also become a topic of public debate. Political analysts suggest that President Yoon, in a desperate situation with approval ratings remaining in the 20% range, made the announcement himself in a bid to create a favorable situation. Kim Jun-il, a political commentator, appearing on CBS Radio's 'Kim Hyun-jung's News Show,' pointed out, "It is rare to see a president announcing at the early stage of geological exploration," and added, "The fact that the president made the announcement himself, which is usually done by the relevant ministry, indicates that the situation was politically very urgent." Heo Eun-ah, the leader of the Reform Party, wrote on Facebook, "The president's first national briefing topic is ‘There is oil off the coast of Yeongil Bay,’ which is an out-of-the-blue announcement,” and added, “The president comes forward for eye-catching topics but hides thoroughly in moments of responsibility and reflection, which is truly cowardly.” According to a public opinion poll released by Media Tomato on the 4th, the positive evaluation of President Yoon's state administration was 27.8%, while the negative evaluation was 67.1%, more than twice the positive evaluation. This survey was conducted by Media Tomato at the request of News Tomato on the 1st and 2nd of June, targeting 1,008 men and women aged 18 and older nationwide. The survey was conducted using wireless and ARS (automated response) methods, with a margin of error of ±3.1 percentage points at a 95% confidence level. Weights were applied by gender, age, and region based on the population statistics of the Ministry of the Interior and Safety as of the end of April 2024. For more details, refer to the website of the National Election Survey Deliberation Commission. #PresidentYoon #EastSeaOil #OilExploration #PoliticalManeuver #ActeGeo #PublicOpinion #KoreaOilDevelopment #GovernmentPolicy #PoliticalCriticism #ApprovalRatings
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- Yang Jong-hee Restructures KB Financial's Asset Management, Busy with Organization and External Recruitment
- Yang Jong-hee, Chairman of KB Financial Group, is focusing on strengthening the organizational structure to enhance the competitiveness of the wealth management business. Following the appointment of new heads for KB Securities' Wealth Management (WM) division and KB Asset Management this year, the fund service business has been spun off into an independent corporation, and external personnel have been recruited to expand the business. It appears that Chairman Yang is initiating a full-scale push to achieve the management goals of KB Financial Group this year, which include leading positions in non-banking affiliates such as asset management and investment management. According to the patent information search service KIPRIS on the 4th, KB Financial registered the trademark KB Fund Partners, expanding the scope of the business to include fund investment, fund investment agency, hedge fund management, private customer fund management, financial services, and various computer software and program businesses for selling computer systems. This indicates a clear intention to significantly expand the business areas that were previously limited to general fund accounting and other administrative services. KB Fund Partners, as a specialized subsidiary for fund services, will focus on managing assets such as securities and bonds held by asset management companies. Previously, KB Financial operated the fund service business as an internal department of Kookmin Bank, facing business restrictions due to the bank's limited scope. However, with the recent spin-off, KB Fund Partners was officially launched as an independent corporation. Unlike KB Financial, other major financial holding companies such as Shinhan Financial, Hana Financial, and Woori Financial already have separate subsidiaries for fund services, expanding beyond general administrative services to include businesses like selling computer systems. For example, Shinhan Financial, a competitor of KB Financial, established Shinhan Fund Partners in 2000, providing asset management-related system services, alternative investment services, institutional client services, and overseas business in countries like Vietnam. With the launch of KB Fund Partners as an independent corporation, KB Financial's asset management business portfolio will also be strengthened. Fund services were previously considered a limited area for business expansion, but the rapid growth of the exchange-traded fund (ETF) market has brought substantial benefits. According to statistics from the Korea Financial Investment Association, the net asset value of the fund administration market increased from KRW 968 trillion at the end of 2023 to KRW 1066 trillion as of the 3rd. The net asset value increased by KRW 98 trillion (about 10%) in just five months this year. Chairman Yang recruited the first head of KB Fund Partners from Shinhan Financial, showing a strong commitment to business expansion. Lee Min-ho, the newly appointed CEO of KB Fund Partners, was born in 1969 and has been with Shinhan Fund Partners for over 20 years since its inception, growing it into the largest fund service company in the industry. Lee Min-ho has extensive experience at Shinhan Fund Partners, handling fund accounting, management support, marketing, and new growth business, and has achieved significant results in expanding the custody of various fund products such as ETFs and private equity funds. Chairman Yang personally attended the KB Fund Partners' inauguration ceremony on the 3rd, expressing his hope that "KB Fund Partners will grow to provide the best customer experience in the industry and become the 'fastest and strongest company.'" In addition to the launch of KB Fund Partners, Chairman Yang is reorganizing the entire asset management business of the group, emphasizing the expansion of KB Financial's non-banking businesses. In December of last year, Chairman Yang replaced the CEOs of KB Securities' WM division, KB Asset Management, and KB Real Estate Trust, which are subsidiaries engaged in investment and asset management. Lee Hong-gu, head of the WM division at KB Securities, established the Customer Solutions Headquarters and a dedicated customer asset risk management team early this year, integrating financial products, investment services, and WM customer strategy organizations. He is also actively strengthening the private banking (PB) business to enhance asset management services. Kim Young-sung, CEO of KB Asset Management, is also making bold changes, actively recruiting external personnel and reorganizing the organization in key areas like the ETF business since taking office. Chairman Yang is also emphasizing strategic collaboration within KB Financial Group in the fund investment business area. In May, Chairman Yang signed a business agreement with global private equity firm Blackstone at the 'Invest K-Finance' event in New York. KB Financial has been collaborating with Blackstone in areas such as alternative assets and capital raising and plans to expand joint investments in various fields, including overseas asset management. In his New Year's address, Chairman Yang stated, "We will actively pursue the leading positions of non-banking affiliates as well as the bank," and added, "We will further enhance customer and market trust in the four major areas of asset management, investment management, global business, and insurance." #KBFinancial #ShinhanFinancial #YangJonghee #assetmanagement #investmentmanagement #fundservices #globalbusiness #nonbanking #ETFs #financialgrowth
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- Chey Jae-won’s Struggle to Save SK On Amid Uncertain Battery Rebound and Group Restructuring Woes
- Vice Chairman and CEO of SK On, Chey Jae-won, who oversees SK Group's business restructuring strategy, is deeply concerned about the ongoing operating losses and financial burden of the battery subsidiary since its inception in 2021. As the group aims to grow the battery business into a future core business alongside semiconductors, continuous investment in the battery sector is necessary to establish SK On as a leading global company. However, the persistent deficits and uncertain rebound in demand for electric vehicle (EV) batteries are challenging this goal. Furthermore, SK On has committed to joint ventures with EV manufacturers, requiring close to KRW 8 trillion (US$ 5.8 billion) in investment this year. Yet, due to financial difficulties, these planned investments are in jeopardy. As a result, Vice Chairman Chey has focused on saving SK On within the broader group restructuring, causing delays in the overall business reorganization. According to industry analysts on the 3rd, the global battery market is expected to improve slightly in the second half of the year compared to the first half. However, the most reliable indicator of performance improvement—recovery in EV demand—remains uncertain. One positive sign for battery companies is the stabilization of prices for battery raw materials like lithium and nickel. According to the Korea Resource Information Service, the price of lithium carbonate rose from CNY 86.5 per kg at the beginning of the year to CNY 103.5 per kg by the end of May. There is a time lag before changes in raw material prices are reflected in product prices, so the rise in metal prices in the first half is not expected to improve battery performance immediately. However, an increase in the average selling price (ASP) of batteries in the second half could lead to some performance improvements. Despite these prospects, battery companies' shipment expectations remain low. Signs of the EV market overcoming a temporary demand stagnation are not yet evident. High-interest rates in the U.S. and the uncertainty surrounding the November presidential election, which could affect EV subsidies, pose additional risks for EV and battery sales in the latter half of the year. There is speculation that if former President Donald Trump, who is unfriendly to the EV transition, wins the election, automakers might become more hesitant about accelerating electrification. Automakers are unlikely to take risks by accelerating electrification before the election. Additionally, if the Federal Reserve delays its interest rate decisions, high-interest rates could reduce EV purchases, which would subsequently lower battery sales. Pessimistic forecasts suggest that this downturn in the EV and battery markets might not end this year but could extend for several more years. SK On faces greater stress from market uncertainty compared to competitors, as it has consistently recorded losses since its inception, resulting in negative operating cash flow and a poor financial structure. The company aims to break even this year, but the securities industry expects SK On to continue its operating losses, with the consensus average loss estimated at around KRW 600 billion. SK On's debt ratio stood at 188% in the first quarter of this year, higher than LG Energy Solution (85%) and Samsung SDI (72%). Its reliance on borrowings is 53%, also higher than LG Energy Solution (26%) and Samsung SDI (18%). The absolute amount of total borrowings for SK On is KRW 19 trillion, surpassing LG Energy Solution (KRW 13 trillion) and Samsung SDI (KRW 6 trillion). Amid these challenging conditions, SK On also faces substantial capital expenditure (CAPEX) burdens. The company has allocated approximately KRW 7.5 trillion for CAPEX this year. With cash and cash equivalents amounting to KRW 3.3216 trillion at the end of the first quarter, SK On cannot cover its CAPEX solely with its cash holdings and must seek external funding. SK Group views SK On as a crucial subsidiary for future business and is providing group-wide support for its funding needs. The group has decided to reassess all existing businesses from scratch and reconfigure its business portfolio, increasingly focusing on saving SK On. This has led to the sale of various assets and the divestment of non-core businesses within some subsidiaries. For example, selling the battery material subsidiary SK IE Technology is being considered. However, SK Innovation, the parent company of SK On and SK IE Technology, recently announced that while various options, including partial sales of SK IE Technology shares, are being reviewed, no concrete decisions have been made yet. There is speculation that shares in SK Incheon Petrochem and SK Enmove, under SK Innovation, might also be sold. There is also talk of merging SK Enmove with SK On and then listing it. However, like SK On, SK IE Technology also faces market uncertainty due to stagnant EV demand. Currently, SK IE Technology's market capitalization exceeds KRW 3 trillion, but finding a buyer willing to pay a high price amid uncertain market conditions is seen as challenging. The possibility of selling shares in petrochemical subsidiaries SK Chemicals and SKC, which generate significant cash, is also discussed. However, their limited growth potential due to industry characteristics makes them less attractive in the investment banking market. Therefore, some in the investment banking industry believe that SK Group's business portfolio restructuring will not be easy. Some experts warn that the entire SK Group could face a liquidity crisis due to its battery business, which may not rebound anytime soon. They stress the need for bold choices and focus to secure sustainable future growth. #SKGroup #CheyJaewon #SKOn #BatteryBusiness #EVMarket #FinancialBurden #Investment #MarketUncertainty #PortfolioRestructuring #LiquidityCrisis
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- Samsung's Jun Young-hyun: "Feeling Responsible for Difficult Semiconductor Situation, Let's Strive to Restore Our Standing"
- On the May 21st, Samsung Electronics announced a surprising personnel change, appointing Jun Young-hyun, who was serving as the head of the Future Business Planning Group, as the head of the DS division. The current DS division head, Kyung Kye-hyun, was appointed as the head of the Future Business Planning Group. Jun Young-hyun stated, "It's been seven years since I was the head of the Memory Business Division, and I'm thrilled and excited to return to DS. During this time, I have noticed that both the business environment and the company have changed significantly. Above all, I realize that the semiconductor business we are in is facing very difficult circumstances compared to the past." Recently, Samsung Electronics has been struggling in the memory semiconductor business, where it had long been the dominant leader, losing ground to competitors like SK Hynix in foundry (semiconductor contract manufacturing), system LSI, and high-bandwidth memory (HBM). Jun Young-hyun said, "The DS management team, including myself, feels a heavy sense of responsibility for the current difficult situation. We will analyze the situation more thoroughly with a new determination and definitely find ways to overcome these difficulties." He also mentioned that artificial intelligence (AI) could present new opportunities for Samsung Electronics. "This is the era of AI, and a future that we have not experienced before is approaching," Jun Young-hyun said. "Although this presents a significant challenge to us, if we set the right direction and respond appropriately, it could be an unprecedented new opportunity for our semiconductor business in the AI era." He added, "Let all of us, both the management and the employees, unite with one heart and work hard to restore the stature of the top semiconductor company. I will lead the way so that Samsung Semiconductors can be a source of pride for all of us." Keywords #Samsung #JunYounghyun #Semiconductor #BusinessStrategy #AI #MemorySemiconductor #SKHynix #DSDivision #FutureBusiness #LeadershipChange
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- Japanese Media: “Korea-US-Japan Industry Ministers’ Meeting to be Held in the US on June 26”
- President Yoon Suk-yeol of South Korea, President Joe Biden of the United States, and Prime Minister Fumio Kishida of Japan agreed to establish and regularize a tripartite industry ministers' meeting during the Korea-US-Japan summit held at Camp David, USA, in August 2023. Ahn Duk-geun, South Korea's Minister of Trade, Industry, and Energy, announced at a press conference for Korean correspondents held at the South Korean Embassy in Washington, DC, on April 12 (local time) that the Korea-US-Japan industry ministers’ meeting would be held within the first half of this year. The upcoming industry ministers’ meeting will be attended by South Korean Minister of Trade, Industry, and Energy Ahn Duk-geun, US Secretary of Commerce Gina Raimondo, and Japanese Minister of Economy, Trade, and Industry Yasutoshi Nishimura. Ahead of the Korea-US-Japan summit scheduled for July, the meeting is expected to discuss strengthening the supply chain in various industries, including semiconductors, among the three countries. This year’s Korea-US-Japan summit is anticipated to be held in conjunction with the North Atlantic Treaty Organization (NATO) summit in Washington, DC, in July. However, the specific schedule has not yet been finalized. #KoreaUSJapan #IndustryMinistersMeeting #SupplyChain #Semiconductors #AhnDukgeun #GinaRaimondo #YasutoshiNishimura #CampDavid #NATO #WashingtonDC #BusinessPost
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- Appointment of New Head of Korea Investment Corporation Delayed; Fifth Consecutive Ministry of Economy and Finance Official Expected
- With Jin Seung-ho completing his term as the president of Korea Investment Corporation (KIC), attention is focused on who will manage the nation's only sovereign wealth fund next. In the financial sector, it is widely expected that an economic official will likely be chosen as the next president, barring any unexpected events. Korea Investment Corporation is an institution under the Ministry of Economy and Finance, and historically, many of its presidents have come from economic bureaucratic backgrounds. According to KIC, Jin Seung-ho's term ended on May 17, but he continues to perform his duties due to the delay in appointing a successor. A KIC representative stated in a phone call with Business Post, "Even though the official term has ended, Jin is continuing his duties according to internal regulations, which stipulate that the incumbent president continues until a successor is appointed." The delay in appointing a new president is attributed to the overall postponement of public institution head replacements following the April general elections. Currently, around 90 public institutions have either already seen their heads' terms expire or are nearing the end of their terms. KIC has yet to form a presidential candidate recommendation committee, and no leading candidates have emerged. However, the financial sector anticipates that once again, an economic official will be among the leading candidates. Of the eight previous KIC presidents, five have been former officials from the Ministry of Finance, Ministry of Strategy and Finance, or Ministry of Economy and Finance. Furthermore, the non-economic bureaucrats who served as KIC presidents did so only in the early years of the corporation's establishment. There have been three non-economic bureaucrat presidents: the inaugural president, Lee Kang-won, was a former president of Korea Exchange Bank; the second president, Hong Seok-joo, was a former president of Choheung Bank; and the fourth president, Choi Jong-seok, was a former vice president of Hana Bank. From the fifth president, Ahn Hong-chul, in 2013 to the current eighth president, Jin Seung-ho, all KIC presidents have been economic bureaucrats. The consistent selection of Ministry of Economy and Finance officials as KIC presidents is influenced by the corporation being under the ministry's jurisdiction. The Ministry of Economy and Finance is the supervising authority, and the KIC Act stipulates that the president is appointed by the president of Korea on the recommendation of the Minister of Economy and Finance, which inherently enhances the ministry's influence. Additionally, considering that most bureaucrats who have served as KIC presidents handled international finance during their time in economic departments, the next president is also likely to have experience in the international finance sector. KIC is a public institution managing a sovereign wealth fund of approximately KRW 240 trillion (US$ 174.3 billion), making it a place where the expertise of international finance officials can be well utilized. For example, the third president, Jin Young-wook, started his public service career as an officer in the International Finance Bureau of the Ministry of Finance after passing the civil service exam. He served as an economist at the International Monetary Fund (IMF) and held roles such as International Finance Director and International Finance Officer. The fifth president, Ahn Hong-chul, also worked at the World Bank and served as deputy director of the International Finance Center after passing the civil service exam. Both the sixth president, Eun Sung-soo, and the seventh president, Choi Hee-nam, have in common their experience working at the World Bank and holding positions such as director and chief in the International Finance Bureau. Current president Jin Seung-ho, like his bureaucrat predecessors, has accumulated extensive experience in international finance, serving as the director of the External Economic Cooperation Bureau, director of the International Finance Cooperation Bureau, and director of the External Economic Bureau. The KIC presidential candidate recommendation committee is formed by the KIC Management Committee, which has the authority to appoint executives. The Management Committee includes the Minister of Economy and Finance, the Governor of the Bank of Korea, and the president of KIC as ex-officio members, along with six private sector management committee members. The KIC president is selected by the presidential candidate recommendation committee, reviewed by the Management Committee, and then submitted to the Ministry of Economy and Finance, where the Minister of Economy and Finance recommends the candidate to the president of Korea for appointment. #KoreaInvestmentCorporation #KIC #PresidentAppointment #JinSeungho #EconomicBureaucrat #MinistryofEconomyandFinance #SovereignWealthFund #PublicInstitution #InternationalFinance #BusinessPost
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- Lee Jae-yong, Chung Eui-sun, Chey Tae-won Meet UAE President to Discuss Economic Cooperation
- Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Chairman Chung Eui-sun, and other business leaders met with the President of the United Arab Emirates (UAE) to discuss economic cooperation. Hyundai Motor Group Chairman Chung Eui-sun was the first to arrive at Lotte Hotel in Jung-gu, Seoul, on the 28th to meet UAE President Mohammed bin Zayed Al Nahyan, who made his first state visit to South Korea. Following him, Hyosung Group Chairman Cho Hyun-joon, Hanwha Group Vice Chairman Kim Dong-kwan, GS Group Chairman Huh Tae-soo, Samsung Electronics Chairman Lee Jae-yong, HD Hyundai Vice Chairman Chung Ki-sun, CJ Group Chairman Lee Jay-hyun, SK Group Chairman Chey Tae-won, LIG Chairman Koo Bon-sang, HYBE Chairman Bang Si-hyuk, NCSoft CEO Kim Taek-jin, and Musinsa CEO Cho Man-ho arrived. Vice Chairman Chung Ki-sun, before entering, stated, "We are continuously looking for ways to enhance cooperation with the UAE in fields such as shipbuilding, including general merchant ships, construction machinery, and eco-friendly energy. We will explain our strengths well." Chairman Lee Jay-hyun mentioned, "We will discuss matters related to economy and culture." It is reported that this meeting was requested by President Mohammed. He will be staying in Korea for two days starting today. During the meeting, large corporations with existing partnerships with the UAE explained additional economic cooperation plans. Following this, companies like HYBE and Musinsa introduced themselves and exchanged greetings. The meeting is expected to lead to further contracts for Korean companies in projects like the UAE's carbon-neutral smart city, Masdar City, and nuclear power plants. The UAE ranks as South Korea's 14th largest trading partner by trade volume. It is also known for its interest in Korean cultural content in the Middle East. During President Yoon Suk-yeol's state visit to the UAE in January 2023, the UAE promised an investment of US$ 30 billion. At that time, the two sides signed a total of 48 memorandums of understanding (MOUs). #Samsung #Hyundai #SKGroup #UAE #EconomicCooperation #MasdarCity #NuclearPower #LeeJaeyong #ChungEuisun #CheyTaewon #BusinessPost
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- Doosan's Nuclear Revival: Park Jeong-won Bets on SMR Foundry
- The nuclear power plant business, once considered the main cause of Doosan Group's management difficulties and group stagnation, is now emerging as a golden opportunity to restore the group's status. This shift is driven by the global surge in electricity demand due to the reduction of fossil fuels for carbon neutrality and the activation of the artificial intelligence (AI) industry, with many countries choosing nuclear power as a key source of large-scale electricity. Chairman Park Jeong-won of Doosan Group is focusing on achieving both domestic and international orders, capitalizing on the increased potential for nuclear power plant equipment business orders. According to comprehensive reports from the nuclear power plant equipment industry on the 28th, Doosan Enerbility, a key subsidiary of Doosan Group, is seeing tangible results from its long-term efforts in the small modular reactor (SMR) business. NuScale Power, a US SMR development company partnered with Doosan Enerbility, is in the final stages of negotiations to supply 24 SMRs to Standard Power, an American IT infrastructure company. As a result, Doosan Enerbility is expected to supply major nuclear power equipment through NuScale Power. Doosan Enerbility was the first Korean company to invest in NuScale Power in 2019 and has maintained a close cooperation, investing $140 million together with other domestic investors. The project NuScale Power is promoting with Standard Power is estimated to be worth about $37 billion (KRW 50 trillion), and Doosan Enerbility is expected to supply equipment worth approximately KRW 2 trillion. The introduction of SMRs by Standard Power is seen as a prime example of how nuclear power is the optimal power source for expanding IT infrastructure, such as AI services, while achieving carbon neutrality goals. According to research from the University of Amsterdam, a typical Google search consumes 0.3Wh of electricity per search, but an AI-based search engine consumes ten times that amount, or 3Wh. Maxim Serik, CEO of Standard Power, started discussing the introduction of SMRs with NuScale Power in October last year, stating, "As the demand for electricity for AI computers and data centers increases, there are limited options in the market for sustainable new baseload power." He added, "Combining NuScale Power's SMR technology can reduce carbon emissions to achieve decarbonization goals and provide reliable year-round IT services." Doosan Enerbility is also strengthening its cooperation with another US SMR developer, X-Energy. The company began its collaboration in 2021 by participating in the design of high-temperature gas-cooled SMRs promoted by X-Energy. In 2022, it signed an agreement with X-Energy for equity investment and the supply of key equipment. Doosan Enerbility aims to play a foundry role in the global SMR market, similar to how Taiwan's TSMC has expanded its market position through contract manufacturing in the non-memory semiconductor field. Doosan Enerbility is also seen as having high potential for orders not only in the SMR field but also in the existing nuclear power plant sector. Recently, it signed a contract to supply feeder pipes for the first unit of the Cernavodă nuclear power plant in Romania. Feeder pipes are a key facility in nuclear power plants, responsible for regulating the reactor's temperature with coolant piping. The company is currently working with Korea Hydro & Nuclear Power (KHNP) and Team Korea to pursue nuclear power plant orders in countries such as the Czech Republic, Poland, the United Kingdom, the United Arab Emirates (UAE), Turkey, Saudi Arabia, Sweden, and the Netherlands. In the Czech nuclear power plant bidding, worth a total of KRW 30 trillion, Korea and France have emerged as the final candidates, with Korea being the likely winner due to its technological prowess and price competitiveness. The Czech government will select the final preferred bidder in July. Poland is also expected to award a nuclear power plant order to Korea. As of the end of the first quarter this year, Doosan Enerbility's order backlog was about KRW 15 trillion. The nuclear power plant business has been a painful memory for Doosan Group, having been severely impacted by the phase-out of nuclear power. The 2010s saw a strong phase-out trend among developed countries, exacerbating Doosan Group's management difficulties. From 2014 to 2019, during its time as Doosan Heavy Industries & Construction, Doosan Enerbility recorded deficits every year without turning a profit. In 2020, Doosan Enerbility struggled to repay its debts, leading Doosan Group to enter a creditor-led management system. Although Doosan Group graduated from creditor management in 2022 and succeeded in normalizing its operations, it is still difficult to say that the group has fully regained its past status. Doosan Group, which rapidly expanded in the 2000s and once ranked within the top 10 business groups by assets, fell to 17th place as of 2023. Chairman Park Jeong-won is intensifying his on-site management efforts, directly participating in nuclear power plant bids to restore the group's status during this "nuclear renaissance." He recently presided over an event supporting KHNP's bid for the Czech nuclear power plant project and signed an MOU for cooperation in equipment supply with local companies. At the "Doosan Partnership Day" held at Zofin Palace in Prague, Czech Republic, on the 13th (local time), Chairman Park stated, "Doosan will do its best in the overseas nuclear power plant bidding, challenging again for the first time in 15 years, based on its successful experience in supplying main equipment to the UAE Barakah nuclear power plant, Korea's first overseas export." #Doosan #nuclearpower #SMR #energytransition #carbonneutrality #AI #renewableenergy #globalmarket #businessrecovery #ChairmanParkJeongwon #foundrybusiness
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- Shinsegae vs. The Hyundai: Battle for Gwangju Dominance
- Shinsegae's anticipated advantage in the large-scale shopping mall project in Gwangju Metropolitan City is now facing a potential challenge from The Hyundai Gwangju. This shift comes as the development plan for Gwangju Shinsegae's Art & Culture Park is being completely revised due to delays in negotiations with the local government, possibly allowing The Hyundai Gwangju to open first. As the first large-scale shopping mall to enter Gwangju, both the first-mover advantage and the ability to attract luxury brands are critical. There is growing interest in whether The Hyundai Gwangju can seize this opportunity. On the 27th, various predictions were emerging within the department store industry about which project, between The Hyundai Gwangju and Gwangju Shinsegae Art & Culture Park, would secure the upper hand. A department store industry insider stated, "Currently, among the three top luxury brands—Hermès, Louis Vuitton, and Chanel (often referred to as 'HerLouisCha')—only Louis Vuitton is present at the Shinsegae Department Store in Gwangju. As a result, customers from the Honam region often travel to other areas for shopping," adding, "This indicates that Gwangju has high potential and is an attractive market." Securing the presence of these luxury brands could have a significant ripple effect, as it would tie the affluent residents of the Honam region to the local shopping market. Gwangju is one of the regions with high purchasing power. Last year, Shinsegae Department Store's Gwangju branch ranked 14th in nationwide department store sales, and 6th among Shinsegae's 12 branches across the country. Shinsegae had previously announced plans to bring the first 'HerLouisCha' brands to the Honam region as part of the Gwangju Shinsegae Art & Culture Park development plan. Three large-scale shopping malls are set to enter Gwangju: The Hyundai Gwangju, Gwangju Shinsegae Art & Culture Park, and Starfield Gwangju. Initially, when news of these projects broke, it seemed that the Gwangju Shinsegae Art & Culture Park, which involves expanding the existing Shinsegae Department Store in Gwangju, would open first. However, after a tug-of-war with Gwangju City over who would own the new road, Shinsegae revised its plans, deciding to expand by purchasing the U-Square Terminal site instead. This change has delayed the opening plan by about a year, pushing it to 2027. If construction proceeds as planned, The Hyundai Gwangju is likely to be the first large-scale shopping mall to open in the city, also targeting a 2027 opening. It remains uncertain whether The Hyundai Gwangju will be able to bring in the 'HerLouisCha' brands from the outset. Typically, these brands do not immediately enter new department stores; they usually take a few years to assess the customer base before making a decision. However, considering the situation where Gwangju customers are traveling to other regions for luxury shopping, and the strong customer draw demonstrated by The Hyundai Seoul, there is a possibility of a surprise early entry of these brands. Chung Ji-sun, the chairman of Hyundai Department Store Group, successfully established the 'The Hyundai' brand in the market through The Hyundai Seoul. It is reported that despite internal opposition due to concerns that Yeouido’s business district would have limited customer draw, Chung insisted on developing The Hyundai Seoul as a flagship store to elevate Hyundai Department Store Group’s status. The Hyundai Seoul became the first department store to surpass KRW 1 trillion (US$721.1 million) in annual sales in the shortest time, and notably, it achieved this milestone without hosting the 'HerLouisCha' brands. Chung Ji-sun’s willingness to invest in The Hyundai Gwangju is also seen as a strength. Hyundai Department Store plans to invest more in The Hyundai Gwangju than in its previous largest investment, Hyundai Department Store Pangyo branch. The construction costs alone are reported to exceed KRW 700 billion (US$504.6 million), and including land acquisition costs, the total investment surpasses KRW 1 trillion (US$721.1 million). A department store industry insider commented, “The design of The Hyundai Gwangju indicates that significant attention has been paid to attracting luxury brands. Since 'HerLouisCha' brands consider various factors meticulously when choosing locations, attracting customers early on with beautiful exteriors and interior designs could be advantageous for securing these brands.” There are also expectations within the retail industry that Shinsegae will not sit idly by. Given that Chung Yoo-kyung, general manager of Shinsegae, has a strong interest in store design, she is likely to devote considerable attention to the Gwangju Shinsegae Art & Culture Park. A department store industry insider predicted, “Given Chung’s known interest in building design and store layout, the Gwangju Shinsegae Art & Culture Park will likely be launched as a store that can appeal to customers.” #Shinsegae #Gwangju #TheHyundai #luxurybrands #departmentstores #shoppingmall #retailindustry #investment #HerLouisCha #GwangjuShinsegae
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- Jin Ok-dong Boosts Shinhan Financial Group Stock: Investor Engagement to Drive Value-Up
- Jin Ok-dong, chairman of Shinhan Financial Group, is increasing engagement with global investors to boost the company's stock price. Shinhan Financial Group is considered to have been somewhat excluded from the value-up trend driving financial stock prices higher this year, due to a significant increase in the number of shares resulting from previous investments by private equity funds. Chairman Jin has worked to resolve the overhang issue (potential selling pressure) that was seen as holding back Shinhan Financial Group's stock price and is now focusing on strengthening global investor relations (IR). This raises expectations that Shinhan Financial Group could be included in the value-up program and receive benefits in the future. According to data from the Korea Exchange, as of the 24th, the proportion of foreign investors in Shinhan Financial Group stood at 61.11%, showing a slight increase from 60.24% at the beginning of the year (January 2nd), indicating little change. Foreign investors viewed the Korean government's value-up program positively and bought shares of major financial groups, but Shinhan Financial Group received relatively less attention. Among the top four financial groups (KB, Shinhan, Hana, Woori), the proportion of foreign investors significantly increased for all except Shinhan Financial Group during the same period. The proportion of foreign investors in KB Financial Group stood at 76.65% on the 24th, having increased by more than 4 percentage points this year. On the 13th, it even reached a record high of 76.97%. Woori Financial Group's proportion of foreign investors rose by about 5 percentage points this year, reaching a record high of 42.62% since its listing in 2019. Hana Financial Group's proportion of foreign investors also increased by 1.5 percentage points during the same period. The extent of foreign investment has also influenced stock prices. Shinhan Financial Group's stock price rose only 18.06% from the beginning of the year to the 24th. During the same period, KB and Hana saw their stock prices increase by 42.14% and 40.78%, respectively. Chairman Jin Ok-dong of Shinhan Financial Group is facing deeper concerns. Major financial groups have a high proportion of foreign investors, and foreign investors prioritize stock prices above all. Therefore, a key task for the chairman of a financial group is to enhance shareholder value by boosting the stock price. Moreover, Shinhan Financial Group is in fierce competition with KB Financial Group every year to be the leading financial group. Shinhan Financial Group recorded the highest net profit among domestic financial groups in the first quarter of this year, overtaking KB to become the leading financial group. However, in terms of stock price and market capitalization, which can be seen as the market's evaluation, the gap between KB and Shinhan has widened since the beginning of the year, leaving Shinhan Financial Group behind. Many analysts believe that Shinhan Financial Group has not been affected by the value-up program because the number of shares increased by about 55 million due to investments from private equity funds from 2019 to 2020. In 2019, Shinhan Financial Group raised capital by receiving an investment of KRW 750 billion from IMM Private Equity (PE), and in 2020, it raised KRW 1.15 trillion from Affinity Equity Partners (AEP) and Baring Private Equity Asia (BPEA, now EQT Private Equity). Aware of this, Chairman Jin expressed his commitment to continuously reduce the stock issuance volume through stock buybacks during a recent presentation in New York. At the New York investor relations (IR) meeting on the 16th (local time), he said, "There has never been an example in the domestic capital market where a company has continuously bought back its shares for six consecutive quarters like Shinhan Financial Group," and added, "We aim for a return on equity (ROE) of 10% and will control the stock issuance volume through share buybacks." Shinhan Financial Group actually canceled about 27.91 million shares (worth about KRW 1 trillion, including the first quarter plan of this year) from November 2022 to April this year. It is expected that Shinhan Financial Group will emphasize its commitment to share buybacks at the investor relations meeting in Japan next month as well. Following New York, Shinhan Financial Group will hold an analyst day in Japan in June to share updates on its value-up program. Although Chairman Jin will not participate in this event, the company will invite key related investors in Japan to increase engagement with foreign investors. Chairman Jin has recently managed to somewhat alleviate the overhang issue. Therefore, he appears to be focusing more confidently on boosting the stock price. Major private equity firms like BNP Paribas, Affinity, and EQT Private Equity have sold their shares this year, realizing gains on the value-up trend. Major investor IMM Private Equity also sold part of its shares and expressed its intention to invest long-term with the remaining shares. Jung Sang-hyuk, President of Shinhan Bank, Moon Dong-kwon, CEO of Shinhan Card, Lee Young-jong, CEO of Shinhan Life Insurance, and other executives from affiliate companies also demonstrated their commitment by buying shares ahead of the first-quarter earnings announcement. Many in the securities industry have a positive outlook on the future stock price of Shinhan Financial Group. Lee Hong-jae, Hyundai Motor Securities researcher, presented Shinhan Financial Group as the top pick in his report on the 23rd, stating, "The overhang issue has been largely resolved," and "There is not much short-term risk related to supply and demand." #ShinhanFinancialGroup #JinOkdong #stockprice #globalinvestors #valueup #foreigninvestment #sharebuyback #financialstocks #KoreaExchange #investmentrelations
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- Ottogi Heir Ham Yeon-ji Starts Management, Joins US Office
- Ham Yeon-ji, the daughter of Ham Young-jun, the CEO and chairman of Ottogi, joins Ottogi to start her management lessons. According to Business Post on the 24th, Ham Yeon-ji officially joined Ottogi America, Ottogi's U.S. subsidiary, as an employee starting in May. She is currently in charge of marketing duties. An Ottogi official explained, "Ham Yeon-ji worked as an intern at Ottogi America and officially joined in May this year to take on marketing responsibilities." Ham Yeon-ji's name has recently appeared on Ottogi's internal messenger. A LinkedIn account believed to be Ham Yeon-ji's has also been created, showing her current position as a marketing manager at Ottogi America. It has not been confirmed whether this account is operated by Ham Yeon-ji herself. This is the first time Ham Yeon-ji has joined Ottogi. Born in 1992, Ham graduated from Daewon Foreign Language High School and the School of Visual Arts at New York University before pursuing a career as an actress in movies, dramas, and musicals. Her decision to join Ottogi contrasts with her older brother Ham Yoon-sik, who joined Ottogi in 2021 to learn about management. Speculation about Ham Yeon-ji's imminent entry into Ottogi's management began in September last year. In a YouTube video at the time, she expressed a sense of duty to promote Korean cuisine abroad, saying, "I have a strong sense of duty to promote Korean cuisine abroad" and "I want to learn on-site in LA, the largest U.S. market and the center of Korean food." Ham Yeon-ji actually moved to the United States. It naturally followed that she would soon take on a role related to Ottogi's overseas business. In January this year, Ham attended the 'Winter Fancy Food Show 2024' in Las Vegas, USA. Ottogi reportedly operated a booth at the event, and Ham Yeon-ji was seen visiting the booth. With Ham joining Ottogi's U.S. subsidiary, Ottogi's global management is expected to accelerate. In November last year, Ottogi appointed Kim Kyung-ho, Ham's father-in-law and former LG Electronics vice president, as Ottogi's vice president in charge of global business. Many analysts saw this move as Ottogi's effort to expand its overseas business to overcome criticism of its lackluster performance.
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- Kim Jung-soo's Confidence: Samyang's IR After 2 Years Focuses on 'Exports' and 'Buldak'
- Kim Jung-soo, Vice Chairman and CEO of Samyang Foods, is exuding confidence. This confidence, based on "Buldak Bokkeum Myeon" and the "overseas market" being sufficient to promote the company, is evident in the IR (Investor Relations) materials released after two years. According to Samyang Foods on the 24th, an IR event was held on the 23rd and 24th in Gangnam and Yeouido, Seoul, where the company explained its first-quarter business performance to domestic institutional investors and responded to related questions. This presentation by Samyang Foods is significant as it updated the materials introducing the company's status and strategies for the first time in two years. The last IR event held by Samyang Foods was about two years ago, in June 2022, at the "Daishin Corporate Day" hosted by Daishin Securities, where they held investor meetings. The explanatory materials at that time were centered on the status of the first quarter of 2022. Since then, although Samyang Foods has announced quarterly results several times, they did not create separate IR materials aside from the quarterly reports, half-year reports, and business reports disclosed to the Financial Supervisory Service. A Samyang Foods representative explained, "The IR event was organized after two years to strengthen communication with the market following the recent corporate bond issuance." The materials disclosed this time reveal Samyang Foods' confidence in many places. While preparing the IR materials, Samyang Foods essentially focused on "exports" and the "Buldak" brand. First, they informed about the company's business status, comparing the export trends of the Korean ramen industry and the revenue earned by Samyang Foods through ramen exports. According to the materials, which seem to combine data from the Korea Customs Service and Samyang Foods, Samyang Foods held about a 60% market share in the domestic ramen export market for the first quarter. When looking at the yearly trend, the market share has steadily increased from 48.8% in 2019 to 49.7% in 2020, 48.2% in 2021, 53.2% in 2022, and 58.9% in 2023. Samyang Foods explained, "We accounted for more than 50% of Korean ramen exports on average over the past five years (2019-2023)," adding, "We continue to expand our presence, especially in China and the Americas, centered on the Buldak Bokkeum Myeon brand." The performance of overseas subsidiaries was also emphasized. According to Samyang Foods, the first-quarter sales growth rates of the U.S. and Chinese subsidiaries were 222.5% and 184.2%, respectively, compared to the first quarter of last year. The U.S. and Chinese subsidiaries have the highest sales among Samyang Foods' overseas subsidiaries. The fact that these top two subsidiaries are growing rapidly indicates the strong growth momentum of Samyang Foods. Samyang Foods stated, "Sales growth continues due to increased product demand and business expansion in major overseas subsidiaries such as China and the U.S.," adding, "We are expanding our overseas business by starting operations at the Indonesian subsidiary, and exports are increasing in Europe and Southeast Asia, outside the countries where we have subsidiaries." Apart from exports, another focus was Buldak Bokkeum Myeon. According to Samyang Foods, Buldak Bokkeum Myeon accounted for 92.2% of the export items in the first quarter. This was a 5 percentage point increase from the first quarter of last year and a 2 percentage point increase from the previous quarter. Notably, among the various flavors of Buldak Bokkeum Myeon, the sales proportion of Carbo Buldak Bokkeum Myeon has increased. Carbo Buldak Bokkeum Myeon accounted for 33.4% of the overseas sales of the Buldak Bokkeum Myeon product line in the first quarter, surpassing the 33.0% share of the original product for the first time. Samyang Foods also mentioned that they are targeting various markets beyond noodles, including snacks, sauces, and ready-to-eat meals, with the Buldak concept. "We continue to collaborate with global brands like KFC and are expanding the promotion of new recipes," said Samyang Foods, adding, "We expect to increase market penetration of sauces through collaboration with B2B (business-to-business) brands." The IR materials released this time are notably simplified compared to the materials from two years ago. The materials from two years ago started by introducing the company's business sectors, divided into noodles, snacks, dairy products, and sauces/seasonings/materials. They also provided trends and marketing details for each business sector. Various main products were introduced, including Buldak Bokkeum Myeon, Samyang Ramen, and Jjangu, as well as organic milk from Samyang Ranch, Samyang Soy Sauce, Buldak Sauce, and other representative products of Samyang Foods. The financial status was also detailed. At that time, since Samyang Foods was not as prominent as it is now, they provided relatively detailed explanations of debt trends and performance trends by business sector. The brand introduction page was also different from now, which focuses solely on Buldak Bokkeum Myeon. It divided brands into categories such as Samyang, Jjazzaroni, and others, explaining the sales proportions of each. The materials released by Samyang Foods on the 23rd can be interpreted as focusing solely on the company's core. Given that the market's interest in Samyang Foods' growth is essentially centered on Buldak Bokkeum Myeon and overseas performance, Samyang Foods seems to have decided that these two core aspects are sufficient for explaining the company. A Samyang Foods representative also explained, "In this IR event, we emphasized the demand increase and growth potential in the U.S. market and the expansion of the Buldak brand portfolio, including strengthening the sauce business." #SamyangFoods #BuldakBokkeumMyeon #KimJungSoo #KoreanRamen #ExportMarket #InvestorRelations #OverseasGrowth #CarboBuldakBokkeumMyeon #USMarket #ChinaMarket
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- Kim Jung-soo's 'Buldak Ramen' Surge: Samyang's Growth Has Just Begun
- The popularity of Buldak Ramen is unstoppable. The increasing popularity of Buldak Ramen is boosting both the performance and corporate value of its manufacturer, Samyang Foods. Considering that Samyang Foods is just entering the peak sales period for Buldak Ramen, Kim Jung-soo, Vice Chairman and CEO of Samyang Foods, who played a key role in creating this success, is expected to solidify his presence with future achievements. According to consolidated forecasts from the securities market on the 17th, there is a growing view that Samyang Foods could surpass KRW 300 billion (approximately USD 216 million) in annual operating profit for the first time this year since its founding. Analysis reports from securities companies released that day predict that Samyang Foods will achieve consolidated sales of KRW 1.5 trillion to KRW 1.6 trillion (approximately USD 1.08 billion to USD 1.15 billion) and operating profit of more than KRW 300 billion (approximately USD 216 million) this year. Last year, for the first time since its founding, Samyang Foods entered the era of KRW 100 billion (approximately USD 72 million) in operating profit, and within just one year, it is expected to reach KRW 300 billion (approximately USD 216 million) in operating profit. The reason for the sudden jump in market expectations for Samyang Foods is Buldak Ramen. In the first quarter, Samyang Foods recorded consolidated sales of KRW 385.7 billion (approximately USD 278 million) and an operating profit of KRW 80.1 billion (approximately USD 57.8 million). Sales increased by 57.1%, and operating profit by 235.8% compared to the first quarter of 2023. These results significantly exceeded market expectations (consensus) of KRW 325.1 billion (approximately USD 234.4 million) in sales and KRW 42.4 billion (approximately USD 30.6 million) in operating profit, driven primarily by Buldak Ramen. Samyang Foods' noodle and snack division alone generated KRW 354.5 billion (approximately USD 255.6 million) in sales in the first quarter. While domestic sales decreased by 12.9%, overseas sales grew by 84.7%, driving the overall sales up by 51.8%, with Buldak Ramen leading the charge. In the first quarter report, Samyang Foods emphasized, "This was due to the increase in overseas sales of our main export item, Buldak Ramen," highlighting that the surprising performance was thanks to the popularity of Buldak Ramen. What's more noteworthy is that Samyang Foods' strong performance is likely to continue. According to Samyang Foods, the U.S. subsidiary, established in 2021, focused solely on initial stabilization last year, yet achieved sales of KRW 160.8 billion (approximately USD 116 million) last year, a 2.6-fold increase from 2022. The trend is even better this year. In the first quarter, Samyang America's sales were KRW 75 billion (approximately USD 54.1 million), a 3.2-fold increase from the first quarter of last year. If this trend continues, it is likely to surpass last year's sales in the first half alone. Samyang Foods stated, "We have already entered major distribution channels like Walmart and Costco," adding, "We expect sales from the U.S. subsidiary to continue increasing as we begin to enter major mainstream large clients in the U.S. as well." According to securities analysis, the estimated penetration rates of Buldak Ramen in Costco and Walmart in the U.S. are around 55% and 80%, respectively. Given the growing popularity of Buldak Ramen in the U.S., it is expected that the expansion of penetration in major distribution channels as well as the expansion into other distribution networks will not be difficult. Additionally, Samyang Foods is showing a high growth rate of over 67% in exports to Southeast Asian countries such as Vietnam, Thailand, and Malaysia. The Chinese subsidiary, which began operations in February 2022 but officially started business in earnest this year, is also expected to see high growth. The Chinese subsidiary's first-quarter sales were KRW 93.4 billion (approximately USD 67.3 million), a 186.2% increase from the first quarter of last year. Securities firms are also noting that the boom in sales of Buldak Ramen is just beginning. Kim Tae-hyun, a researcher at IBK Investment & Securities, predicted, "As demand expansion continues due to product diversification, strong export trends centered on Carbo Buldak Ramen are expected in the second quarter." Han Yoo-jung, a researcher at Hanwha Investment & Securities, also observed, "Samyang Foods' first-quarter results showed an impressive improvement with no one-off events," adding, "Although Samyang Foods' stock price has already reached a historic high, it is still undervalued due to the steep upward revision of performance forecasts." Buldak Ramen is the "hit product" that has made Samyang Foods the most notable company in the ramen industry. Launched in 2012, it gained fame through social media and skyrocketed in popularity after being introduced by BTS and Blackpink. Currently, it can be said that Buldak Ramen is one of the most notable ramen products worldwide. An article in The Wall Street Journal earlier this year highlighting Samyang Foods' Buldak Ramen and Vice Chairman Kim Jung-soo exemplifies the ramen's prominence. Some even argue that Samyang Foods' 60-year history should be divided into before and after the launch of Buldak Ramen. The recent sharp rise in Samyang Foods' stock price, surpassing Nongshim, the leading company in the ramen industry, in market capitalization can be attributed solely to the success of Buldak Ramen. Buldak Ramen is also famous for being a product created under the direction of Kim Jung-soo, a member of the owning family of Samyang Foods. In 2010, while walking through downtown Seoul with his daughter, who was then a high school student, Kim noticed a long line in front of a snack shop known for its spicy food. Inspired, he thought of creating a ramen with an "extremely spicy taste." Kim immediately bought three types of spicy sauces and seasonings from a nearby supermarket and sent one each to the research lab and marketing team, keeping one for himself to study at home. After a long research period, they began pilot sales in 2011 and officially launched the product in 2012 as market response grew. Before the launch of Buldak Ramen, Samyang Foods was said to be at its greatest crisis due to the failure of new products. However, with the success of Buldak Ramen, Samyang Foods has entered a second golden age in the 2010s. #SamyangFoods #BuldakRamen #KimJungSoo #RamenIndustry #Exports #CorporateValue #USMarket #ChinaMarket #ProductSuccess #SpicyRamen
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- Sung Ki-hak Elevates Youngone, Faces Succession Allegations
- Youngone Trading has made it onto the list of large companies for the first time since its establishment, bringing 'owner risk' to the forefront as an issue to be addressed. With the designation as a large business group, the company is now obligated to disclose various internal transaction data and other information. There is growing attention on whether various allegations that emerged during Chairman Sung Ki-hak's management succession process will surface. On the 17th, the distribution industry expressed that Chairman Sung, by being listed as a large corporation in 2024, needs to address various allegations related to the succession process. Youngone Trading Group was included in the 2024 list of large business groups (public disclosure targets) announced by the Korea Fair Trade Commission, with total assets exceeding KRW 5 trillion (approximately USD 3.63 billion). Once designated as a large business group, the company must additionally disclose major non-listed matters, internal transactions, and group status per the Fair Trade Act and is subject to regulations preventing favoritism towards affiliates. Youngone Trading Group recorded total assets of KRW 6.09 trillion (approximately USD 4.42 billion) at the end of last year, with Youngone Trading as the main entity. Youngone Trading sells well-known athleisure brands like The North Face and Lululemon through OEM (Original Equipment Manufacturer) production. Youngone Trading Group has not been free from various allegations regarding its subsidiary YMSA. Although YMSA is a non-listed company, it holds a 29% stake in Youngone Trading Holdings, making it a de facto holding company. YMSA was established in 1984 with the main business of exporting and importing textiles and fabrics and was converted into a holding company in 2011. At that time, the largest shareholders of YMSA were Sung Ki-hak and his related parties, holding a 45.59% stake. Since YMSA's conversion into a holding company, there has been no detailed disclosure of its specific equity changes for over ten years due to the lack of public disclosure obligations for non-listed companies. However, with Youngone Trading designated as a large business group, the disclosure of information on non-listed companies has become mandatory. From now on, they cannot refuse to disclose information citing non-disclosure reasons. First, there is a need to clarify the internal transaction allegations that arose during the equity donation process. Last March, Chairman Sung donated 50.01% of his YMSA shares to Vice Chairman Sung Rae-eun of Youngone Trading. During this process, suspicions were raised that internal transactions might have been used to fund the gift tax. Vice Chairman Sung paid most of the KRW 85 billion (approximately USD 61.7 million) gift tax by borrowing from YMSA. YMSA sold a building in Daegu, previously used as its headquarters, for about KRW 60 billion (approximately USD 43.5 million) to fund the gift tax. However, when it was revealed that the buyer of the building was another company within the group, Youngone Trading, suspicions of internal transactions to fund the gift tax arose. At the time, Youngone Trading stated that it could not verify specific details as YMSA, being a non-listed company, did not require public disclosure of shareholders' stock holdings or asset changes. There are also criticisms that YMSA engaged in unfair internal transactions to expand its profits. The proportion of internal transactions at YMSA increased annually, from 92.9% in 2020 to 95.8% in 2021 and 95.1% in 2022. Sales also tripled from about KRW 20 billion (approximately USD 14.5 million) in 2014 to over KRW 70 billion (approximately USD 50.8 million) in eight years. Some believe that for Chairman Sung to smoothly complete the succession process, Youngone Trading must address the raised suspicions and quell shareholder dissatisfaction. Youngone Trading Holdings has major individual shareholders, including Chairman Sung and Vice Chairman Sung, but it cannot overlook the 27.2% minority shareholders' influence. Recently, cases of minority shareholders submitting agenda items at general meetings have increased. Despite holding more than KRW 2.7 trillion (approximately USD 1.96 billion) in retained earnings as of the end of last year, Youngone Trading maintains a lower dividend payout ratio compared to competitors. Meanwhile, the director's compensation limit increased from KRW 8 billion (approximately USD 5.8 million) to KRW 10 billion (approximately USD 7.3 million). The lack of share buybacks and cancellations has also raised dissatisfaction among shareholders. Chairman Sung still holds a 16.77% stake in Youngone Trading Holdings despite transferring more than half of his YMSA shares to Vice Chairman Sung. There are still steps to be taken to complete the succession process. Chairman Sung's interest in outdoor sportswear naturally developed during his time as a member of the mountaineering club while studying trade at Seoul National University. After graduation, he worked at a trading company and, encouraged by a foreign buyer, founded Youngone Trading in 1974. The following year, he successfully secured an order for 10,000 ski suits from the world's largest ski suit company at the time. Youngone Trading, which focused on OEM production of clothing, took a significant turn by introducing The North Face, an American outdoor brand. Through its subsidiary Goldwin Korea (Youngone Outdoor), Chairman Sung introduced The North Face to Korea in 1997, securing the rights and starting direct sales. Although the outdoor market was not well-formed at the time of its introduction, the situation changed in the 2000s. The North Face gained explosive popularity, dominating the domestic outdoor market and consistently holding the top spot in domestic outdoor sales since 2003. Last year, it achieved record sales exceeding KRW 1 trillion (approximately USD 726.4 million). In 2015, Youngone Trading expanded its product range by acquiring global bicycle company Scott Corporation, venturing into the premium bicycle business. Youngone Trading has maintained profitable operations for 43 consecutive years since its founding, consistently achieving solid results, including surpassing KRW 4 trillion (approximately USD 2.9 billion) in sales for two consecutive years. #YoungoneTrading #largecompany #ownerRisk #managementSuccession #internalTransactions #shareholderDissatisfaction #TheNorthFace #OEMproduction #YMSA #ScottCorporation
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- KB Securities Hits Big with HD Hyundai IPO, Proves Kim's IB Expertise
- KB Securities is expected to deliver solid performance this year, driven by its success in corporate finance (IB). Particularly, Kim Sung-hyun, co-CEO of KB Securities, has once again demonstrated his prowess as an IB expert by successfully leading a major IPO in just two years. According to the capital market industry on the 12th, KB Securities ranked first in underwriting volume in the stock capital market (ECM) IPO in April, with KRW 299.6 billion (approximately USD 217.6 million). It outpaced its competitors by a large margin, with Shinhan Investment Corp. in second place with KRW 90.2 billion (USD 65.5 million) and Hana Securities in third place with KRW 81.2 billion (USD 59.0 million). KB Securities significantly benefited from being the lead underwriter for HD Hyundai Marine Solutions, considered the top-tier IPO of the first half of this year. Although Shinhan Investment Corp. and Hana Securities also participated as joint underwriters, they could not match KB Securities' underwriting volume. HD Hyundai Marine Solutions' IPO size was KRW 742.3 billion (USD 539.2 million), the largest since LG Energy Solution in 2022. During the demand forecasting for institutional investors from April 16 to 22, HD Hyundai Marine Solutions recorded a competition rate of 201 to 1, finalizing the IPO price at the upper end of the desired range (KRW 73,300 to KRW 83,400), at KRW 83,400. The public offering was a success. The public subscription on April 25 and 26 also saw a high competition rate of 255.8 to 1, with a total of KRW 25 trillion (USD 18.2 billion) in deposits, setting a new record for this year. On the listing day, June 8, HD Hyundai Marine Solutions' stock closed at KRW 163,900, a 96.52% increase from the IPO price, maintaining the IPO frenzy. With this, KB Securities has once again demonstrated its presence in the IPO market by successfully handling another major IPO, following the LG Energy Solution IPO in 2022. Kim Sung-hyun was reportedly very dedicated to securing the LG Energy Solution listing. The successful listing of HD Hyundai Marine Solutions is expected to further solidify Kim's position as an IB expert. At KB Securities, Kim Sung-hyun oversees the IB division, while Lee Hong-gu, the co-CEO, manages the retail (personal finance) division. Based on this performance, KB Securities is expected to maintain a positive earnings trend in the second quarter, following a strong first quarter, thanks to increased fee income from IPOs like HD Hyundai Marine Solutions. KB Securities recorded a consolidated net profit of KRW 198.9 billion (USD 144.4 million) in the first quarter, driven by IB performance. This is approximately a 40% increase from the previous year and a 784% jump from the previous quarter, marking a significant turnaround. In the first quarter, KB Securities ranked first in the DCM (debt capital market) and successfully managed rights offerings for companies like LG Display and Daehan Cable in the ECM market. While increased trading volume led to higher brokerage commissions, the company's good performance this year is primarily attributed to Kim Sung-hyun's IB capabilities. #KBSecurities #IPOMarket #CorporateFinance #KimSungHyun #HDHyundaiMarineSolutions #InvestmentBanking #StockMarket #IPOLeader #FinancialPerformance #ECM
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- DL E&C 1Q Operating Profit Slump, Performance Improvement Pressure Mounts Ahead of Seo Young-jae's Inauguration
- [Business Post] Seo Young-jae, the CEO-designate of DL E&C, faced an uncertain business environment as his official appointment looms. DL E&C reported weaker-than-expected performance in the first quarter. While prospects suggest that profitability in the housing sector will gradually improve in the second half with abundant projects, the challenge of leading a turnaround as a CEO-designate without construction industry experience seems daunting amid uncertain conditions. On the 2nd, DL E&C announced that it had preliminarily recorded KRW 1.89 trillion in revenue and KRW 609 billion in operating profit for the first quarter of 2024 on a consolidated basis. Although revenue increased by 2.2% compared to the first quarter of 2023, operating profit decreased by a significant 32.5%. Particularly, the operating profit fell well below market expectations (consensus). Attention is focused on whether Seo Young-jae, the CEO-designate of DL E&C, can lead a clear turnaround in profitability amid a deterioration. According to the financial information firm FNGuide, DL E&C is expected to achieve an operating profit of KRW 946 billion on a consolidated basis in the first quarter. The first-quarter performance is 35.6% below expectations. The underperformance in operating profit on a consolidated basis, even compared to market expectations, is attributed to the significant deterioration in the profitability of DL E&C's own housing business. Excluding its subsidiary DL Construction, DL E&C's operating profit in the first quarter on a standalone basis (including overseas subsidiaries and consolidation adjustments) is KRW 49.2 billion. This represents a 38.3% decrease from the same period last year. In contrast, DL Construction's operating profit in the first quarter increased by 12.5% to KRW 11.7 billion compared to a year ago. DL E&C recorded a housing (construction) cost-to-sales ratio of 93.0% on a standalone basis in the first quarter, higher than market estimates. Based on a comprehensive analysis of recent reports from DL E&C in the securities industry, it is estimated that DL E&C achieved a housing cost-to-sales ratio of around 91%. KB Securities, which estimated DL E&C's first-quarter operating profit at a conservative KRW 760 billion on a standalone basis, also forecast a housing cost-to-sales ratio of 92.7%. The higher cost ratios recorded by DL E&C are attributed to the presence of many high-cost projects compared to industry estimates, as well as delays in the expected KRW 20 billion increase in subcontracting in private-public housing projects. DL E&C is showing relatively high cost ratios due to the failure to reflect cost increases in subcontracting agreements for projects initiated in 2021-2022. Additionally, the expected KRW 20 billion increase in subcontracting for public housing projects is somewhat delayed. The profitability trend in the housing sector itself does not appear to be positive. DL E&C's housing cost-to-sales ratio of 93.0% in the first quarter is worse than the 92.3% in the same period last year, the 90.8% in the previous quarter, and the annual average of 91.9% last year. It is a fact that the construction industry as a whole is experiencing a prolonged slump. Among the large listed construction companies in the first quarter, Hyundai Construction is the only company that improved its housing cost-to-sales ratio compared to a year ago, the previous quarter, and the annual average. However, it is clear that Seo Young-jae, who suddenly emerged as the savior for DL E&C in the uncertain business environment, faces a burdensome situation. The current construction industry conditions have deteriorated significantly since the appointment of Ma Chang-min, a former LG Electronics executive, took over the reins in 2021 when DL E&C was split. Large construction companies, despite weathering the impact of COVID-19 in 2021, mostly posted good performances, even releasing a large number of homes exceeding 20,000 units each. DL E&C also achieved an operating profit of KRW 957.3 billion on a consolidated basis and KRW 727.7 billion on a standalone basis in 2021. Compared to the management goals set at the beginning of the year, this represents a profit exceeding 15% on a consolidated basis and 23% on a standalone basis. Before the split in 2020, the construction division of Daerim Industrial, now DL E&C, recorded its highest-ever operating profit of KRW 12.3 trillion. However, DL E&C has seen a sharp decline in operating profit since 2021. Looking at DL E&C's operating profit trend over the past three years (2021-2023), it recorded KRW 957.3 billion, KRW 497.0 billion, and KRW 331.3 billion on a consolidated basis, and KRW 727.7 billion, KRW 402.6 billion, and KRW 231.0 billion on a standalone basis. DL E&C expects Seo Young-jae, who served as the head of the Business Incubation Center at LG Electronics, leading various business units and driving new business development, to discover new growth engines and achieve management innovation that surpasses the limitations of the existing construction industry. However, it is evident that the most significant challenge for Seo Young-jae is to revive the declining profitability of DL E&C. The reason his management strategy, to be unveiled after being officially appointed as the CEO of DL E&C following the extraordinary general meeting and board meeting on May 10, is drawing attention. Fortunately, prospects for the recovery of the housing sector cost ratios and abundant projects are considered factors that will lighten Seo Young-jae's steps in the future. In the latter half of this year, DL E&C will begin to reflect the performance of the projects initiated since last year more significantly. Specifically, the proportion of revenue reflection from sites initiated since last year is expected to increase from 17% in the first quarter to 45% in the fourth quarter of this year. This marks the gradual resolution of low-profit projects initiated in 2021-2022. DL E&C anticipates that the average cost ratio of projects initiated since last year will fall below 90%. Based on new orders exceeding KRW 14 trillion last year, DL E&C held a backlog of orders exceeding KRW 30 trillion. Despite poor performance last year, DL E&C achieved its annual target by exceeding KRW 4 trillion in new orders, recording KRW 14.8894 trillion on a consolidated basis and KRW 11.6088 trillion on a standalone basis. It surpassed the target of KRW 11.4 trillion. In the first quarter, DL E&C secured orders worth KRW 1.9109 trillion on a consolidated basis and KRW 1.1154 trillion on a standalone basis. The achievement rates compared to the targets are 16% on a consolidated basis and 12% on a standalone basis, slightly disappointing levels. However, DL E&C expected to make up for the first-quarter slump, focusing on the plant sector. There is a high possibility of winning plant projects worth KRW 2 trillion domestically and internationally in the latter half of the year. DL E&C's order backlog on a consolidated basis surged from KRW 26.5422 trillion at the end of 2022 to KRW 30.9089 trillion at the end of 2023. As of the end of the first quarter, it stood at KRW 30.8553 trillion. Jang Moon-jun, a researcher at KB Securities, anticipated that “Considering the potential for improving the cost composition (mix) of housing construction sites and possible increases in subcontracting for some projects, DL E&C is expected to confirm performance improvements as we move into the latter half of the year.” He also looked forward to the timing and intensity of the stock price rebound, depending on the direction the company sets, given the somewhat unusual situation of a major management change, including the appointment of a new CEO, occurring during the year.” A DL E&C official stated, “We will overcome the crisis through a consistent profit-oriented selective order strategy and achieve differentiated profit improvement through continuous cost management.” Reporter Jang Sang-yu
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- Shinhan Securities' Slow Recovery, Kim Sang-tae Focuses on IB
- Shinhan Securities has received a somewhat disappointing report card for the first quarter. Kim Sang-tae, CEO of Shinhan Securities, appears to be tightening his focus on improving profitability, particularly in the corporate finance (IB) sector, his area of expertise. On the 29th, an examination of the performance of the five major financial holding companies (KB, Shinhan, Hana, Woori, NH Nonghyup) revealed that Shinhan Securities was the only securities company within these groups to experience a decline in net profit for the first quarter. Shinhan Securities reported a consolidated net profit of KRW 75.7 billion for the first quarter, down 36.6% from a year earlier. Although the company managed to turn a profit compared to consecutive net losses in the third and fourth quarters of last year, net profit was still down nearly 40% from the previous year, failing to recover to a sustainable level of profit. In contrast, NH Investment & Securities (KRW 225.5 billion), KB Securities (KRW 198.9 billion), and Hana Securities (KRW 89.9 billion) all saw increases in net profit compared to the previous year. Woori Financial Group does not have a securities company. Analyzing the performance of Shinhan Securities by sector, commission income from increased stock market trading volume rose by about 20% this year, but revenue from the asset management sector fell by more than 70% from the previous year, leading to an overall decline in performance. A representative from Shinhan Financial Group explained, "Although commission income from trading increased due to the rise in stock market trading volume, operating revenue decreased due to impairments on assets related to previously handled acquisition finance, resulting in a decline in net profit compared to the same period last year." Given that Kim Sang-tae was granted an additional two-year term at the end of last year, the slow recovery in performance may be particularly painful. Shinhan Financial Group kept all affiliate CEOs in place last year despite a major reshuffle in the securities industry. They showed confidence in Kim Sang-tae by breaking the tradition of extending his term one year at a time and granting him an additional year. Kim is expected to demonstrate performance in the IB sector, which is his 'major subject.' Kim is recognized as an expert in the IB sector, having strengthened Shinhan Securities' IB competitiveness after joining a company that was seen as somewhat lagging in this area. Shinhan Securities has a relatively high dependence on commission income and asset management revenue. Amid external uncertainties, the asset management sector is expected to continue a conservative approach. With ongoing uncertainties in real estate finance, the importance of traditional IB sectors is anticipated to grow. Lee Hee-dong, CFO of Shinhan Securities, stated in the first-quarter earnings conference call, "Due to increased economic uncertainty in the first quarter, the trading department took a conservative approach, resulting in poor proprietary trading performance. This year, we will focus on stable operations rather than securing proprietary trading profits." Meanwhile, the company is raising expectations for improved performance in the IPO sector by participating in a series of big deals in the IPO market this year. Shinhan Securities participated as an underwriter in the IPOs of APR and HD Hyundai Marine Solutions, both considered major deals in the first half of this year. For APR, it acted as the lead underwriter, handling KRW 60.6 billion out of KRW 75.8 billion, and for HD Hyundai Marine Solutions, it co-underwrote KRW 65.2 billion out of KRW 652.4 billion. In the debt capital market (DCM), the company continues to perform well. Kim has led the advancement of the DCM sector since joining Shinhan Securities. The company ranked fourth as the lead underwriter in the DCM in the first quarter, continuing its strong position from last year. Strengthening internal control, another major task, also appears to be a focus. Shinhan Securities faced negative impacts on its performance from funds such as Lime and Heritage in the past, as well as private settlements for Gen2 and Lime funds last year. To enhance internal control and risk management systems, Kim reorganized the company. He established a compliance department in January and announced plans in April to introduce a pioneering accountability structure early in the industry. Nam Koong-tae-hyung, Chief Compliance Officer of Shinhan Securities, said, "All financial companies are emphasizing the enhancement of internal control as a top priority due to recent issues with private equity funds and equity-linked securities (ELS). We will establish an effective internal control system starting with the pioneering accountability structure project." #ShinhanSecurities #finance #corporatefinance #investmentbanking #securities #IPO #economicuncertainty #internalcontrol #compliance #assetmanagement
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- POSCO's Dual Struggle: Chang In-hwa's Tough Challenge
- "POSCO's core business is steel, and alongside it, the secondary battery material business, which has been cultivated over the past decade, must advance equally as top-tier industries." This was the future management direction announced by Chang In-hwa, who officially took office as the 10th chairman of POSCO Group, during a press conference held on the same day as POSCO Holdings' regular shareholders' meeting and board meeting last month. However, with both of POSCO Group's main pillars—steel business and secondary battery material business—struggling, attention is focused on the recent announcement to delay investments related to the secondary battery material business. It remains to be seen how Chairman Chang will navigate this challenging start to his term. According to the securities and credit rating industries on the 26th, the steel industry's downturn is expected to continue this year. Steel product prices have been declining since their peak last December. The fall was accelerated following the National People's Congress of China in March, where the real estate stimulus measures, which are the biggest demand driver for steel, were deemed insufficient. Lee Jae-kwang, a researcher at NH Investment & Securities, analyzed, "For the steel industry to improve, the recovery of Chinese steel demand is necessary, but it has not yet been reflected in the indicators. Improvement in China's real estate construction area and a reduction in Chinese steel exports are needed." Meanwhile, domestic demand for steel from front-line industries is also expected to decrease. Song Young-jin, a senior researcher at NICE Credit Rating, predicted, "The impact of deteriorating conditions due to real estate project financing (PF) failures will continue, and with the automotive industry's recent growth slowing, demand for steel products from major front-line industries, excluding shipbuilding, will decline." POSCO Holdings recorded an operating profit of KRW 583 billion (US$ 420.4 million) on a consolidated basis for the first quarter. This meets market expectations (consensus). However, the securities industry predominantly believes that it will be difficult for POSCO Holdings to achieve significant performance rebounds in the second quarter. The continued downturn in the steel industry and the overhaul of Pohang Steelworks' No. 4 blast furnace, which began at the end of February and will continue until the end of June, are expected to reduce sales volume below the average level. Lee Kyu-ik, a researcher at SK Securities, forecasted, "POSCO Holdings' profit increase will not be significant in the second quarter due to the reduced sales volume caused by maintenance." Amidst this steel environment, POSCO Holdings is negotiating with domestic shipbuilders, where industry demand is relatively stable, to raise steel prices. It has also completed price negotiations with long-term contracted automotive manufacturers, reflecting changes in raw material prices and exchange rates. Chairman Chang presented a goal of achieving more than KRW 1 trillion (US$ 721.3 million) in annual cost savings by promoting structural innovation in costs and enhancing the efficiency of steel facilities in the mid to long term. POSCO Group's other major pillar, the secondary battery material industry, faces challenges due to the slowdown in electric vehicle demand. LG Energy Solution, SK On, and Samsung SDI, the three major K-battery companies, are expected to continue their poor performance throughout the first half of this year. In a press conference last month, Chairman Chang remarked, "The steel downturn may not be long or deep, but the secondary battery sector could experience a longer downturn." Ultimately, during the earnings conference call on the 25th, POSCO Holdings announced that it would delay some of the aggressive investments planned for the secondary battery material business. The timeline for investments in lithium, nickel, cathode materials, and anode materials, initially set for 2026, has been postponed to 2027 or later, and some investment plans are under review. Following the selection of 'steel man' Chang In-hwa as the final chairman candidate after more than 30 years at POSCO, concerns arose in the market that the group's focus might shift back to steel, potentially reducing investments in new businesses such as secondary battery materials. Opinions in the securities industry were divided regarding POSCO Holdings' decision to postpone investments. Jang Jae-hyuk, a researcher at Meritz Securities, assessed it as an "inevitable speed adjustment due to the slowdown in front-line industry growth." Lee Jong-hyung, a researcher at Kiwoom Securities, also viewed the announcement as a reasonable decision considering the prolonged downturn in the secondary battery industry. On the other hand, Kim Yun-sang, a researcher at Hi Investment & Securities, lowered the target stock price from KRW 560,000 to KRW 520,000, reflecting the adjustment of lithium sales volume from 166,000 tons to 96,000 tons by 2026. Choi Moon-seon, a researcher at Korea Investment & Securities, also reduced the target stock price from KRW 900,000 to KRW 650,000, considering the decline in lithium prices and the adjustment in the growth rate of the secondary battery material sector. POSCO Group stated that despite the temporary decrease in demand in the electric vehicle market, it will actively pursue investments in quality resources such as lithium brine and mines, seeing this as an opportunity. A POSCO Holdings representative said, "We will accelerate the commercialization of next-generation materials such as solid electrolytes and lithium metal anodes, and continue to secure future market dominance." #POSCO #steelindustry #secondarybatterymaterials #ChangInhwa #electricvehicles #lithium #nickel #investmentdelay #marketstrategy #costreduction
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- Hyundai Motor Group Chairman Chung Eui-sun Revisits India: "Transforming India into a Global Export Hub"
- Hyundai Motor Group Chairman Chung Eui-sun visited India to review local future growth strategies and directly communicate with employees. On the 25th, Hyundai Motor Group announced that Chairman Chung received briefings from Hyundai and Kia at the new Delhi office of the Indian Regional Headquarters in Gurgaon, Haryana, on the 23rd (local time) and discussed medium to long-term strategies with the employees. Following this, Chairman Chung held a town hall meeting to communicate directly with local employees in India. Chairman Chung's visit to India comes eight months after his last visit in August of the previous year, indicating the growing strategic importance of India to Hyundai Motor Group. India is emerging as a major global mobility hub. Last year, the Indian automobile market reached 5 million units, maintaining a solid third place after China and the United States. The passenger car market alone was 4.1 million units, and it is expected to exceed 5 million units by 2030. The Indian government aims to increase the proportion of electric vehicles (EVs) to 30% of total vehicle sales by 2030, implementing strong electrification policies. From this year, they have implemented a policy to significantly reduce import duties on EVs to 15% from up to 100% for companies investing at least $500 million in India and producing EVs within three years. Hyundai Motor Group stated, "Chairman Chung's visit to India aims to solidify Hyundai Motor Group's position as a pivotal mobility company in Indian society amid India's rapid development and to explore various business opportunities," adding, "It also reflects our commitment to genuine social contribution and ESG activities, fulfilling our social responsibilities, and becoming a more trusted company by Indian customers." Marking the 30th anniversary of its entry into India in 2026, Hyundai has established its medium to long-term strategy for 2030 under the goal of 'Beyond Mobility Innovation.' Kia, which has rapidly grown into a major automotive brand in India within a short period, is pursuing both quantitative and qualitative growth through its 'Kia 2.0' strategy. Hyundai Motor Group plans to build a production system for 1.5 million units of Hyundai and Kia vehicles, expand its EV lineup and create an electrification ecosystem, strengthen its SUV leadership, and promote social responsibility activities considering Indian culture in the medium to long term. Initially, production capacity will be expanded. Hyundai is working on a new plant project in Pune with a capacity of over 200,000 units, and Kia's production capacity will be expanded to 431,000 units by the first half of this year. Last year, Hyundai acquired a plant in Pune, Maharashtra, from General Motors (GM). The plant is being upgraded with Hyundai's smart manufacturing system to produce over 200,000 units. Once the Pune plant is completed in the second half of next year, Hyundai will have a production capacity of 1 million units, including the Chennai plant (824,000 units), and together with Kia, Hyundai Motor Group will be capable of producing about 1.5 million units in India. Electrification efforts to capture the Indian EV market will also be intensified. Hyundai will launch its first locally produced EV in India in the second half of this year. Starting with the mass production of an SUV EV at the Chennai plant by the end of this year, Hyundai plans to introduce five EV models in India by 2030. Utilizing its sales network, Hyundai aims to expand the number of EV charging stations to 485 by 2030. Kia will start producing small EVs optimized for the local market from next year and will sequentially introduce various EV models. EV charging infrastructure development will also be pursued. Recently, Hyundai and Kia signed a strategic cooperation agreement with Exide Industries, an Indian battery company, to use locally produced batteries in EV models exclusively for the Indian market. The aim is to localize battery production, which constitutes a significant portion of EV costs, to secure price competitiveness in the cost-sensitive Indian market and capture the local electrification market. The town hall meeting, personally proposed by Chairman Chung, was attended by Hyundai President and CEO Chang Jae-hoon, Vice President of India and Middle East Regional Headquarters Kim Eon-soo, and 400 employees of the Indian Regional Headquarters, along with about 3,000 employees from the Chennai and Pune plants and other regional offices connected via video conferencing. This was Chairman Chung's first town hall meeting with local employees overseas. The town hall meeting included questions collected from employees across India and spontaneous questions on-site. With a variety of questions pouring in, the meeting, initially scheduled for one hour, was extended by more than 30 minutes. Chairman Chung emphasized his philosophy of 'customer orientation' in his opening remarks, stating, "The reason we work is the customer, and doing our best for the customer ultimately improves the lives of all." When asked about the success factors of Hyundai Motor Group's growth in India, he cited the trust of Indian customers, the dedication of local employees, and Hyundai's technological prowess. Chairman Chung emphasized the strategic importance of the Indian region for Hyundai Motor Group. "India is one of the regions that has contributed the most to Hyundai Motor Group's growth, overcoming numerous crises such as the global economic recession and supply chain disruptions during the COVID-19 pandemic and consistently achieving good results," he said. "I take pride in the fact that we are consistently maintaining the second-largest market share and building a premium image, strengthening our brand power in India, where economic development is accelerating." He added, "We will foster India as a global export hub as we expand our business to Asia, the Middle East, and Africa. Considering the importance of the Indian region, we will actively support it to play a greater role in the future." Chairman Chung also mentioned the direction of the EV business in India. "We will actively contribute to electrification by developing EVs tailored to the Indian market and expanding EV infrastructure," he said. "By 2030, when EV adoption becomes widespread, we will lead clean mobility in India." Hyundai Motor Group has achieved solid growth in India for 28 years since Hyundai entered the Indian market in 1996. In 2004, Hyundai surpassed 500,000 units in sales within five years, the shortest period in Indian automotive industry history, reaching 1 million units in 2007, 5 million units in 2017, and 8.24 million units in cumulative sales by last year. Kia has also grown into a brand selling over 200,000 units annually within a short period since its first sales in 2019. From January to March this year, the two companies sold 226,000 units in India, a 1.5% increase from the previous year. Hyundai and Kia aim to sell 890,200 units this year, a 3.9% increase from last year. #HyundaiMotorGroup #IndiaVisit #ChungEuiSun #ElectricVehicles #EVMarket #HyundaiKia #BusinessStrategy #ProductionExpansion #Electrification #MarketGrowth
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- SK Biopharm Signs Technology Transfer Deal with Chinese JV for Up to KRW 79.7 Billion
- SK Biopharmaceuticals(SK Biopharm) has signed a technology transfer contract worth up to KRW 79.7 billion (approximately USD 58 million) with Ignis Therapeutics of China. On the 18th, SK Biopharm announced the agreement with Ignis Therapeutics, a Chinese central nervous system pharmaceutical company, to transfer technology for a non-narcotic pain treatment candidate. Ignis Therapeutics is a joint venture established in November 2021 by SK Biopharm and '6 Dimensions Capital,' a global investment firm based in Shanghai. Specifically, SK Biopharm will transfer the overseas development and commercialization rights of its non-narcotic pain treatment candidate SKL22544 and its backup compounds to Ignis Therapeutics. SKL22544 is a late-stage discovery candidate for non-narcotic pain treatment, acting as a sodium channel inhibitor. Under the terms of the agreement, SK Biopharm will receive an upfront payment of USD 3 million (approximately KRW 4.1 billion) and up to USD 55 million (approximately KRW 75.6 billion) in development and regulatory milestones, totaling up to USD 58 million (approximately KRW 79.7 billion). Additionally, SK Biopharm will receive royalties based on future sales. This contract will leverage Ignis Therapeutics' capabilities to accelerate the development of the discovery-stage candidate through Phase 2a clinical trials. Ignis Therapeutics will now be able to expand its pipeline in the pain treatment field, in addition to the Chinese rights for Cenobamate and Solriamfetol and other CNS drugs previously acquired from SK Biopharm. The agreement includes an option for SK Biopharm to regain rights in the United States if the clinical efficacy of the candidate is confirmed to a certain extent. In Korea, SK Biopharm can acquire the rights for free, based on its discretion. Eileen Long, CEO of Ignis Therapeutics, said, "Securing SK Biopharm's excellent pipeline allows us to enter high-growth potential markets," and added, "We will meet market expectations by expanding our existing CNS pipeline with new candidates and pipelines." #SKBiopharm #IgnisTherapeutics #TechnologyTransfer #NonNarcoticPainTreatment #SKL22544 #CNSPharmaceuticals #JointVenture #DrugDevelopment #PharmaceuticalDeal #GlobalExpansion
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- Neowiz Invests Heavily in Console Games Following 'Lies of P,' Kim Seung-cheol's Strong Will
- Neowiz is making significant investments in new console game development following the success of the action RPG console game 'Lies of P' last year. While major game companies are hesitant to develop new games amid an industry downturn, Neowiz is aggressively investing in the development of its next games, attracting attention to whether these efforts will pay off. According to Neowiz's business report on the 11th, the company spent KRW 284 billion (US$ 204.7 million), 85% of its KRW 334 billion (US$ 240.9 million) operating expenses last year, on developing new games. Industry insiders noted that this is a high level compared to the general practice of domestic game companies keeping their development costs below 70%. This year, Neowiz has particularly focused on recruiting star developers with console game development experience from other companies. Console games are those that operate on home console devices such as PlayStation, Xbox, and Nintendo. In developed markets like Japan, North America, and Europe, where the console game market is significant, more domestic game companies are turning their attention to console games as the local mobile game market becomes saturated. In March this year, Neowiz hired Director Jin Seung-ho, known for the adventure game 'Buried Stars' and celebrated as a 'game storyteller' in the industry, and Director Lee Sang-kyun, developer of Mabinogi Heroes and genre novelist, to strengthen its new console game development. Neowiz's active investment in new game development contrasts with the domestic game industry's cautious approach during the off-season for new releases. According to the Korea Creative Content Agency, the domestic game market reached a record high of KRW 22.2 trillion (US$ 16.0 billion) in 2022 but was estimated to have decreased by 10.9% to about KRW 19.7 trillion (US$ 14.2 billion) in 2023. Major domestic game companies have been suspending or scaling down new development projects since the end of last year. An industry insider noted, "Due to the global economic downturn, the number of game users and spending has sharply decreased, forcing developers to tighten their belts. While large-scale layoffs like those overseas might not happen, companies are inevitably adopting a conservative strategy for new releases." Neowiz's management is reportedly determined to invest during the recession to create new hits and revive the company's former glory. The company had already demonstrated its development capabilities with the release of 'Lies of P,' a console game launched last year. This high-difficulty sword-action RPG, developed over about three years, targeted the overseas market and achieved notable success despite having fewer domestic users. The cumulative sales of 'Lies of P' exceeded 1 million copies, and the total number of users, including subscription service users, surpassed 7 million. The game also received critical acclaim, winning the 2023 Korea Game Awards. The success of 'Lies of P' contributed to Neowiz's improved performance last year. The company reported consolidated sales of KRW 365.6 billion (US$ 263.6 million) and an operating profit of KRW 31.7 billion (US$ 22.9 million) in 2023, with sales up 24% and operating profit up 62%. In the early 2010s, Neowiz was considered a leading distributor in the domestic game industry, forming one of the three pillars of the so-called 3N alongside other major companies. However, it struggled to adapt to the mobile game market, leading to a significant decline in its position. The company's revenue, which was KRW 675 billion (US$ 487.0 million) in 2012, dropped to around KRW 155 billion (US$ 111.7 million) in 2018. Since 2019, Neowiz has been preparing for a resurgence by strengthening its own game development capabilities and targeting the overseas console game market, which domestic companies have traditionally avoided. #Neowiz #ConsoleGameDevelopment #LiesofP #KimSeungcheol #3NStatus #GameIndustry #Investment #GameDevelopment #KoreanGames #GamingMarket #EconomicDownturn
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- Kim Seung-yeon Returns to On-Site Management After 5 Years
- Kim Seung-yeon, the Chairman of Hanwha Group, celebrates 'Next-Gen Rocket Project' with researchers. According to Hanwha Group on the 1st, Chairman Kim visited Hanwha Aerospace's R&D campus in Daejeon on March 29 to congratulate and encourage researchers leading the advancement of the Nuri rocket and the next-generation rocket project. This visit was to celebrate Hanwha's selection as the sole negotiator for the next-generation rocket project. Kim Dong-kwan, the eldest son of Chairman Kim and Vice Chairman of Hanwha Group, who oversees the group's space business under the "Space Hub" brand, also attended the visit to the R&D campus. Chairman Kim met with the researchers and said, "Let us meet the public's expectations for a space-specialized company with the perfect success of the fourth Nuri rocket launch scheduled for 2025." Hanwha Group explained that Chairman Kim has consistently encouraged researchers involved in the Nuri rocket project by sending letters and gifts. In the guestbook, Chairman Kim wrote, "Hanwha's challenge towards space, the real beginning starts now. Let's continue to challenge ourselves and innovate to become a global champion." Hanwha Group has invested approximately KRW 900 billion (USD 648.6 million) in the space business, earning recognition for securing its own technology and establishing an independent value chain. The Hanwha Aerospace R&D campus in Daejeon, which Chairman Kim visited, is the only domestic center capable of developing all aspects of rocket technology. A Hanwha Aerospace representative stated, "As the only domestic company specializing in medium to large rockets, we plan to continuously contribute to the national space program with our unique capabilities." Chairman Kim's on-site management activity was his first in 5 years and 4 months since attending the completion ceremony of Hanwha Aerospace's Vietnam plant in December 2018. On the same day, Chairman Kim also visited Hanwha Life Eagles Park in Daejeon to watch the team's home opener, which marked Ryu Hyun-jin's (Hanwha Eagles) return to the KBO League. It was Chairman Kim's first visit to the stadium since October 19, 2018, when Hanwha advanced to the postseason. At that time, he watched the first game of the playoff series between Hanwha and the Nexen Heroes (now Kiwoom Heroes) at Hanwha Life Eagles Park in Daejeon. A Hanwha representative said, "Chairman Kim Seung-youn attended the home opener today. It is his first visit to the baseball stadium since the 2018 playoffs." #KimSeungyeon #HanwhaGroup #NextGenRocket #NuriRocket #SpaceHub #HanwhaAerospace #RocketTechnology #SpaceBusiness #KRW900Billion #HanwhaLifeEaglesPark
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- Kwon Min-seok Steps Down as IS Dongseo CEO After 3 Months; Switches to Professional Management
- IS Dongseo Reverts to Professional Management System After Three Months IS Dongseo announced on the 29th that, following a board resolution, CEO Kwon Min-seok has resigned, and Nam Byeong-ok, Head of the Safety and Health Division, has been appointed as the new CEO. IS Dongseo will now operate under a co-CEO system with the existing CEO, Lee Jun-gil, and the newly appointed CEO, Nam. Kwon, a second-generation owner, had stepped down from the CEO position in March 2021 and resumed the role nearly three years later on January 2 of this year. Kwon temporarily took on the CEO role to oversee overall management after the resignation of Heo Seok-heon, Head of Construction Business, Jung Won-ho, Head of Concrete Business, and Kim Gap-jin, Head of Management, in January. As Kwon retains his position as chairman of the board, IS Dongseo appears to be strengthening its ESG (Environmental, Social, and Governance) management by separating the roles of CEO and board chairman to ensure the independence of the board.
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- Lotte's Lee Dong-woo: Pushing for Innovation and Efficiency
- Lee Dong-woo, the Vice Chairman and CEO of Lotte Corporation, has expressed his commitment to discovering new growth engines. At the regular shareholders' meeting held on the 31st floor of Lotte World Tower in Jamsil, Seoul, on the 28th, Lee stated, "Lotte Group is actively identifying and nurturing new businesses to enhance corporate value," and introduced the management activities of its subsidiaries. Specifically, he mentioned the construction of a domestic mega plant by Lotte Biologics, collaboration between Lotte Shopping and the UK retail tech company Ocado, and the expansion of Lotte Wellfood's overseas business. He also introduced Lotte Innovate's (formerly Lotte Information & Communication) electric vehicle charging platform and metaverse business. Lee emphasized that Lotte plans to enhance its competitiveness by expanding the application of artificial intelligence in its existing businesses. He said, "Last September, we launched an AI Task Force to research ways to present various AI business models, in addition to the digital transformation within our group companies," explaining the cases of AI integration in various affiliates and AI strategy education for CEOs. Lee also expressed his intention to restructure the business structure, stating, "Lotte has grown through business expansion via mergers and acquisitions, but given the increasing management uncertainties, we will focus more on management efficiency through selection and concentration." During the shareholders' meeting, Lotte Corporation received approval from shareholders for all five agenda items, including the approval of financial statements, partial amendments to the articles of incorporation, election of directors, appointment of audit committee members, and approval of directors' remuneration limits. Lotte Group Chairman Shin Dong-bin and Ko Jung-wook, Head of Financial Innovation at Lotte Corporation, were reappointed as internal directors, while Roh Joon-hyung, Head of ESG Management Innovation, joined as a new internal director. Kwon Pyung-oh, former President of the Korea Trade-Investment Promotion Agency (KOTRA), Lee Kyung-chun, representative attorney of Klass Hanul Law Firm, Kim Hae-kyung, former CEO of KB Credit Information, and Park Nam-gyu, professor of business administration at Seoul National University, were reappointed as external directors. Among the external directors, Kim Hae-kyung and Park Nam-gyu were appointed as audit committee members. To provide shareholders with an opportunity to experience Lotte Group's new businesses, Lotte Corporation set up a new business exhibition hall in front of the shareholders' meeting venue for the second consecutive year. The exhibition hall was themed around four areas: Metaverse, ABC (Artificial Intelligence, Big Data, Cloud), Mobility (Autonomous Driving, Electric Vehicle Charging), and Life Platform. #LeeDongwoo #LotteGroup #NewGrowthEngines #ArtificialIntelligence #ShareholdersMeeting #LotteBiologics #LotteShopping #LotteInnovate #BusinessExpansion #CorporateValue
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- KB Securities to Early Adopt Accountability Framework, Kim: "Clarifying All Executives' Responsibilities"
- KB Securities to Early Adopt Internal Control Accountability Framework On the 20th, KB Securities announced, "In response to the upcoming amendments to the Financial Companies Governance Act set to take effect in July, we are proactively implementing an accountability framework," adding, "To this end, we will form an 'Internal Control System Improvement Task Force (TF)' with participation from Deloitte Anjin LLC and all KB Securities departments." The accountability framework is a document that details the responsibilities assigned to each executive position within a financial company. This system is introduced to ensure that the ultimate responsibility for major tasks within the financial company is clearly defined and cannot be delegated downward. The amendment to the Financial Companies Governance Act, which passed the National Assembly in December last year, includes measures to improve internal control systems in the financial sector, such as the introduction of the accountability framework and the imposition of internal control management duties. To strengthen internal controls, KB Securities has also expanded its 'dedicated internal control personnel' within the Compliance Support Department. These dedicated internal control personnel focus on preventing incidents through the inspection and improvement of internal control systems, enhancing ethical awareness among employees, and strengthening field-oriented communication. Kim Sung-hyun, Compliance Officer at KB Securities, stated, "We aim to adopt the accountability framework earlier than the legally specified date to swiftly analyze and improve the existing internal control system," adding, "By clearly defining the responsibilities of all executives, we will enhance the interest and sense of responsibility towards internal controls among executives and employees and drive changes in perception." #KBSecurities #InternalControl #AccountabilityFramework #Compliance #FinancialRegulations #KimSungHyun #CorporateGovernance #FinancialCompanies #EthicalAwareness #DeloitteAnjin
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- Samsung’s First Female President Lee Young-hee Receives Gold Tower Award
- At the awards ceremony for contributors to national industrial development, Lee Young-hee, President of Samsung Electronics, and Shin Young-hwan, CEO of Daeduck Electronics, were honored with the highest award, the 'Gold Tower Order of Industrial Service Merit.' On the 20th, the Ministry of Trade, Industry and Energy and the Korea Chamber of Commerce and Industry held the 51st Commerce Day celebration at the 63 Convention Center in Seoul, announcing that government awards were presented to a total of 208 businessmen who contributed to the development of the national industry. President Lee Young-hee was recognized for her contributions to establishing Samsung Electronics as the world’s number one mobile phone company by growing the 'Galaxy' brand into a global brand. Since 2017, Lee has overseen Samsung Electronics' global marketing strategy across mobile and home appliances as the Chief Marketing Officer. At the end of 2022, she was promoted to Samsung Electronics' first female president. CEO Shin Young-hwan was honored with the Gold Tower Award for his contributions to supporting domestic memory semiconductor companies in dominating the global market by developing ultra-fine circuit board technology. Since taking office as CEO of Daeduck Electronics in May 2020, Shin has developed ultra-fine circuit board technology in response to changes in advanced digital industries such as artificial intelligence (AI) and 5G communication. Commerce Day, held annually on the third Wednesday of March, is a statutory anniversary designated to promote commerce and industry and to encourage businessmen who have contributed to industrial development. The ceremony was attended by about 1,200 people, including Minister of Trade, Industry and Energy Ahn Deok-geun, Chairman of the Korea Chamber of Commerce and Industry Chey Tae-won, Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Chairman Chung Eui-sun, and LG Chairman Koo Kwang-mo. #Samsung #DaeduckElectronics #GoldTowerAward #CommerceDay #KoreaIndustry #LeeYounghee #ShinYounghwan #Marketing #Semiconductors #IndustrialDevelopment
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- FOMEK Chairman Choi Jin-shik: "Lower Inheritance Tax to OECD Average, Companies Must Also Reflect"
- Domestic mid-sized companies have called for reductions in inheritance, gift, and corporate tax rates. Choi Jin-shik, Chairman of the Federation of Middle Market Enterprises of Korea (FOMEK), delivered a policy proposal containing these requests to Vice Prime Minister Choi Sang-mok at the ‘Mid-Sized Enterprise CEO Luncheon Lecture’ held at the Grand Hyatt Seoul in Yongsan District on the 14th. Chairman Choi emphasized, "We need to lower the inheritance tax rate, which is among the highest in the OECD, to the OECD advanced country average of 15%, and significantly alleviate the burden of gift tax through policy deliberation." According to OECD data, South Korea's inheritance tax rate reaches 50% in the highest bracket (over KRW 3 billion). With an additional 20% surcharge for major shareholders, it climbs to 60%. Chairman Choi sees the current inheritance and gift tax rates as a cause for the loss of the country's industrial base. He stated, "With countries around the world engaging in reshoring due to the rise of protectionism, losing corporate technology and networks due to excessive inheritance tax is irresponsible. We must feel a heavy responsibility towards the future youth who will be unable to find jobs if we have to hand over companies to foreign private equity funds." He also stressed the importance of self-regulation efforts by companies in tax reform discussions. "Companies have left a negative image on citizens. It is crucial for mid-sized companies to reflect on this and implement policies that gain public sympathy to facilitate discussions on inheritance tax reform," Choi said. Chairman Choi also argued for further corporate tax cuts. "Although the corporate tax was reduced by 1 percentage point per tax base bracket last year, the highest rate is still 26.4%, above the OECD average of 23.1%. Further reductions should be considered to effectively drive corporate investment and employment," he said. On this day, Chairman Choi handed Vice Prime Minister Choi a policy proposal containing 30 items, including △improving the revenue criteria for tax support for mid-sized companies △lowering the inheritance tax rate △reducing corporate tax △improving the minimum tax system △easing employment protection for regular workers △relaxing asset requirements for voluntary holding company establishment and conversion. Vice Prime Minister Choi stated, "The government will focus its policy capabilities on recovering the livelihood economy, managing potential risks, creating sustainable jobs, and realizing a dynamic economy for future generations." He added, "To realize a dynamic economy, we will actively promote the growth of SMEs into mid-sized and large enterprises, building a growth ladder that enhances the vitality of the entire economy, and will thoroughly review the policy suggestions." #FOMEK #ChoiJinshik #InheritanceTax #CorporateTax #TaxReform #KoreanEconomy #MidSizedEnterprises #CorporatePolicy #EconomicGrowth #GovernmentPolicy
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- CJ Heir Lee Sun-ho's Rise Pauses, Gains Key Talent
- The promotion streak of Lee Sun-ho, Head of the Food Growth Promotion Division at CJ CheilJedang and son of CJ Group Chairman Lee Jay-hyun, has come to a halt. Chairman Lee Jay-hyun had expanded this business leader's role annually in line with executive appointments, but this year, no such appointment was made. This is interpreted as being conscious of last year's overall poor performance of CJ CheilJedang. However, in this personnel change, new executives were added to the Food Growth Promotion Division, where this business leader is the head, indicating a watchful stance on his business performance. According to Business Post's investigation on the 19th, Yang Sung-ho, a business leader, was transferred to CJ CheilJedang's Food Growth Promotion Division, and Jung Yoo-jin, in charge of Strategy & Planning, was promoted to a new business leader. Yang, who joined the holding company CJ last October, is an investment banking expert from Credit Suisse (CS). In this personnel change, he was moved to CJ CheilJedang's Food Growth Promotion Division. Jung was promoted to executive while working in the Food Growth Promotion Division as the head of Strategy & Planning. Until now, there were no executive-level personnel in the Food Growth Promotion Division except for business leader Lee Sun-ho, but with this personnel change, two business leader-level personnel were appointed. A CJ Group representative said in a call with Business Post, "The number of executives can change flexibly according to organizational needs. The head recognized for last year's performance was promoted to executive," but drew a line, saying, "It is hard to see this as personnel aimed at empowering Director Lee." Business leader Lee is expected to focus on proving his managerial capabilities internally and externally by continuing the favorable trend of the overseas food business. This year, Shin Ho-kang returns as Vice Chairman and CEO of CJ CheilJedang. Some speculate that CEO Kang, an expert in the food business, will act as a new management mentor for business leader Lee. CEO Kang is noted for his significant contributions to the rapid growth of CJ CheilJedang's overseas food business while serving as head of the food business division at CJ CheilJedang from 2016 to 2020. The business community showed great interest in whether business leader Lee would be promoted ahead of CJ Group's executive appointments. This was due to the fact that in the fourth quarter of 2023, CJ CheilJedang's overseas food sales surpassed domestic sales for the first time. However, this year, Chairman Lee Jay-hyun reflected the overall poor performance of CJ CheilJedang by minimizing the scope of executive appointments and did not appoint any personnel for this business leader. Considering that business leader Lee has been rapidly promoted since his return to management in 2021, there was also a need to take a breather. The Food Growth Promotion Division, established in February 2022, is an organization responsible for CJ CheilJedang's global food business. It oversees the scaling up of seven strategic foods (dumplings, instant rice, kimchi, chicken, seaweed, K-sauces, rolls), etc. Business leader Lee took office as the head of the Food Growth Promotion Division in the CJ Group's personnel appointments in October 2022. He is responsible for global food business strategy planning, new business investment, internal ventures, and collaboration with external startups. In January this year, he showcased CJ CheilJedang's global food business status and growth strategy in the Harvard Business School's executive education program case study and appeared at the launch ceremony of the Korean cuisine chef training program 'Cuisine K,' launched last year, highlighting his presence. Born in 1990, business leader Lee Sun-ho graduated from Columbia University with a degree in Financial Economics. He joined CJ CheilJedang as a new employee through the group's open recruitment in 2013, was promoted to manager in 2017, and went through the bio business team and food strategy planning team. He returned to management in January 2021 as the head of Global Business at CJ CheilJedang and has been promoted annually, serving as head of Food Strategy Planning 1 and head of the Food Growth Promotion Division. In September 2021, while overseeing Global Business, he contributed to the marketing collaboration contract between CJ CheilJedang's brand 'Bibigo' and the LA Lakers of the NBA. During his tenure as head of Food Strategy Planning 1, he was recognized for his achievements, including the integration of CJ CheilJedang's U.S. subsidiary Schwan's and CJ Foods, and the launch of the plant-based food business. An industry insider said, "The head of the Food Growth Promotion Division also plays an important role at CJ CheilJedang. There is no need to rush the expansion of his role," adding, "Since Director Lee is still young, there is plenty of time to achieve managerial performance." #CJGroup #LeeJayhyun #LeeSunho #CJCheilJedang #FoodGrowthPromotion #executiveappointments #businessperformance #globalfoodbusiness #Koreanfood #businessstrategy
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- Lee Jay-hyun Focuses on Stability in CJ Group's Executive Reshuffle, Orders Performance Turnaround
- CJ Group has announced a minimal executive reshuffle, prioritizing stability over extensive changes. After much deliberation, CJ Group Chairman Lee Jay-hyun chose "stability." Despite expectations that many affiliate CEOs would be replaced due to last year's poor performance, Lee chose to show trust instead of holding them accountable. As a result, the responsibilities of CJ Group's affiliate CEOs have increased. They now face the challenge of proving Lee's decision right through performance improvements. On the 16th, CJ Group's 2024 regular executive reshuffle showed less change than anticipated by the industry. In fact, Lee concluded the reshuffle by only changing the CEO of CJ CheilJedang. For CJ CheilJedang, the group's "elder brother" and its origin, Kang Shin-ho, CEO of CJ Logistics, has returned to CJ CheilJedang and was promoted to vice chairman, the first public hire to achieve this. This reflects the performance-oriented principle that Lee has emphasized. Kang was appointed co-CEO and head of the food business division at CJ CheilJedang in 2020 but moved to CJ Logistics after a year. Under his leadership, CJ Logistics achieved record operating profits for three consecutive years. Despite challenges such as the courier strike and Coupang's entry into the third-party logistics market, CJ Logistics achieved significant results including △ improving the structure of the parcel delivery business △ introducing advanced logistics technology △ expanding overseas business △ growing the global e-commerce direct delivery business. Kang Shin-ho, now the CEO of CJ CheilJedang, is expected to expand the food business into more overseas markets, restore profitability in the bio sector, and improve financial indicators. Shin Young-soo, head of CJ Logistics' Korea business division, will fill the position vacated by Kang's move. Shin was appointed head of the parcel and e-commerce division at CJ Logistics in 2021. During his tenure, the division's operating profit nearly doubled. CJ Logistics increased its average selling price through strategies such as raising parcel prices and targeting high-margin shippers, although the overall volume decreased slightly. Shin is expected to accelerate CJ Logistics' future growth initiatives. CJ Logistics is laying the groundwork for growth through △ expanding its business in the European logistics market △ establishing a global hub center in Saudi Arabia △ building a large-scale logistics center in the United States △ listing its local subsidiary in India. Additionally, it will need to respond to issues such as Coupang's entry into the third-party logistics business and lawsuits related to collective bargaining rights for delivery drivers. Despite the delayed announcement of this year's reshuffle, which led to expectations of multiple CEO changes, most CJ Group affiliate CEOs retained their positions. Lee seems to have postponed decisions regarding Koo Chang-geun, CEO of CJ ENM's Entertainment Division, and Yoon Sang-hyun, CEO of CJ ENM's Commerce Division. This likely considers the short tenure of both CEOs. Yoon was appointed in March 2022 and Koo in October 2022. Although CJ ENM recorded losses in the first half of last year, it returned to profitability in the second half, raising expectations for a performance rebound. This year, Koo is expected to focus on △ enhancing the profitability of subsidiaries △ reducing net debt through the sale of non-core assets △ merging Tving with Wavve. Yoon will likely work on strengthening the "one platform" strategy, utilizing various sales channels such as TV, mobile, and web. Huh Min-ho, CEO of CJ CGV, also retained his position, which was one of the main points of interest in this reshuffle. CJ CGV experienced a significant drop in stock prices due to a large-scale rights issue last year. Despite CJ, the holding company, injecting KRW 100 billion in cash into CJ CGV and contributing shares of CJ Olive Networks, CJ CGV's stock price has not rebounded from the mid-KRW 5,000 range. However, Huh received high marks for steering CJ CGV back to annual profitability for the first time in three years by △ raising ticket prices △ withdrawing from unprofitable locations △ strengthening snack sales profitability △ diversifying screening content. Huh is expected to accelerate the future growth strategy "NEXT CGV," transforming the business into a space enterprise while focusing on financial strategies to minimize interest burdens. CJ Olive Young, which emerged as a "cash cow" within the group last year, will continue under CEO Lee Sun-jung as expected. Lee Jay-hyun visited CJ Olive Young's headquarters in January to commend the achievements and encourage the employees, showing his support for Lee Sun-jung. Lee Sun-jung is expected to continue the business performance this year while focusing on △ full-scale overseas expansion △ implementing a KRW 300 billion win-win cooperation plan △ re-pushing for an IPO. CJ Freshway, which has been smoothly navigating its course, will continue to be led by CEO Jung Sung-pil. Since his appointment in March 2021, Jung has focused on liquidating loss-making subsidiaries, strengthening the business of specialized food brands by age, digital transformation, and transforming the company into a solution provider. CJ Freshway achieved KRW 3 trillion in sales last year, recovering to pre-COVID-19 levels. Its operating profit increased by 70.9% from KRW 58.3 billion in 2019 to KRW 99.3 billion in 2023, significantly improving profitability. Jung is expected to further promote the "solution business" providing consulting to food distribution business customers and strengthen shareholder returns. Kim Chan-ho, CEO of CJ Foodville, also succeeded in his reappointment. Kim is credited with stabilizing CJ Foodville's profitability. Last year, CJ Foodville attracted external investment and is building a Tous Les Jours production plant in the US. Kim is expected to focus on increasing the number of Tous Les Jours stores in the US, instead of Korea where store opening regulations are restrictive. The holding company CJ will continue under CEO Kim Hong-gi. Kim, considered a confidant of Lee Jay-hyun, has been CEO of CJ since 2018. Earlier, in December last year, CJ reorganized the strategic planning organization and business management team of the holding company into Portfolio Management Office 1 and 2 (PM1 and PM2) and merged the Financial Strategy Office and Financial Operations Office into the Financial Office. This was seen as a move to strengthen the holding company's core function of managing and supervising affiliates. #LeeJayhyun #CJGroup #ExecutiveReshuffle #BusinessStrategy #CorporateManagement #Leadership #Stability #PerformanceImprovement #CEOAppointments #CorporateGovernance
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- KB Insurance Shines, Koo Bon-wook's Value Management Drives Success
- KB Insurance achieved record-breaking net profit last year, solidifying its role as the leading non-banking affiliate of KB Financial Group. Koo Bon-wook, who officially took over as CEO of KB Insurance this year, is prepared to continue this strong performance by emphasizing 'value management.' According to KB Financial on the 13th, KB Insurance posted the highest net profit among the group’s non-banking affiliates for two consecutive years, 2022 and 2023. In 2023, KB Insurance recorded a consolidated net profit of KRW 752.9 billion (US$ 543.1 million), a 35.1% increase from 2022, marking the highest net profit since its inception in 2015. In 2022, KB Insurance surpassed KB Securities in net profit, becoming the top non-banking affiliate. Last year, KB Insurance accounted for 16% of KB Financial Group’s total net profit. KB Insurance's strong performance is attributed to an increase in the sale of profitable insurance policies in line with the new accounting standards introduced last year. In 2023, the total premiums for guaranteed insurance at KB Insurance amounted to KRW 8.3834 trillion (US$ 6.04 billion), a 6.9% increase from KRW 7.8401 trillion (US$ 5.65 billion) in 2022. Conversely, the total premiums for savings insurance, classified as liabilities under the new accounting standards, decreased by 36% from KRW 284.5 billion (US$ 205.1 million) in 2022 to KRW 181.9 billion (US$ 131.2 million) in 2023. Last year, the size of the Contractual Service Margin (CSM), an indicator of profitability, also increased by 7.2% from the previous year to KRW 8.518 trillion (US$ 6.14 billion). A KB Insurance representative told Business Post, "We introduced many new insurance products last year that received positive responses in the market, and by preemptively raising the expected interest rates of insurance products, we were able to lead the market." CEO Koo has set a goal to maintain strong performance this year with the management strategy of 'achieving the highest company value growth rate.' Company value is determined by management efficiency indicators such as loss ratio and retention rate, future value indicators represented by new contract insurance margins, and customer value indicators like the number of retained and high-quality customers. By enhancing these indicators, Koo aims to strengthen the core competitiveness of the insurance business. The strategy aligns with the 'value management' approach advocated by Yang Jong-hee, chairman of KB Financial Group, who served as CEO of KB Insurance from 2016 to 2020. Yang focused on enhancing customer and shareholder value, reorganizing the insurance product portfolio, and conducting aggressive sales to lay the foundation for KB Insurance's growth. Koo, who supported Yang’s value management strategy as an executive, is seen as a key figure in implementing this approach. At the semi-annual management strategy meeting in January, Koo mentioned achieving 'the highest company value growth rate,' emphasizing, "We must strive to provide the best products and services that meet customers' needs, offering the best experience to make KB Insurance's products and services the new standard in the Korean insurance industry." However, the intense competition among non-life insurance companies to expand the sale of profitable insurance products under the new accounting standards for the second year is seen as a challenge for Koo. Additionally, as the first internally promoted CEO of KB Insurance, Koo faces the pressure to demonstrate the management capabilities of internally sourced executives. Koo is recognized as a strategic expert at KB Insurance. Born in 1967, he graduated from Chungnam High School and Yonsei University with a degree in Business Administration. He joined LG Group through open recruitment in 1994 and served as Head of Strategy at LIG Insurance, which was spun off from LG. After the company was renamed KB Insurance, he held various positions, including Head of Management, Head of Risk Management, and Head of Business Management. #KBInsurance #financialperformance #netprofit #valuegrowth #Koobonwook #insuranceindustry #managementstrategy #nonbankingaffiliate #businessperformance #financialgroup
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- Hanil Cement Eyes Value-Up Policy: Huh Gi-ho Prioritizes Returns and Green Investments
- Huh Gi-ho, Chairman of Hanil Holdings, is enhancing corporate value through ESG (Environmental, Social, Governance) investments and shareholder return policies. Hanil Cement Group is expected to see solid performance this year, coupled with potential benefits from the government’s corporate value enhancement program aimed at addressing the undervaluation of Korean stocks. According to Hanil Cement Group on the 13th, Hanil Holdings, Hanil Cement, and Hanil Hyundai Cement have collectively planned to allocate over KRW 90 billion as dividends for the fiscal year 2023. Hanil Holdings and Hanil Cement plan to issue cash dividends of at least KRW 800 per common share, while Hanil Hyundai Cement plans to issue at least KRW 700 per share. Specifically, Hanil Holdings will distribute KRW 24.7 billion, Hanil Cement KRW 40.2 billion, and Hanil Hyundai Cement KRW 11.6 billion, totaling around KRW 93.6 billion. This represents a 22.4% increase from last year's total cash dividend of KRW 76.4 billion (Hanil Holdings KRW 24.7 billion, Hanil Cement KRW 40.2 billion, Hanil Hyundai Cement KRW 11.6 billion). The consistent increase in dividend amounts stems from the strong performance driven by price hikes in cement. Last November, Hanil Cement and Hanil Hyundai Cement raised the price of cement per ton by 6.8%, and the prices of ready-mixed concrete and remital by 17.5% and 22.5%, respectively. Hanil Holdings achieved consolidated revenue of KRW 2.3646 trillion, operating profit of KRW 263.2 billion, and net profit of KRW 191.3 billion in 2023. This marks an increase of 20.3% in revenue, 98.6% in operating profit, and 48.0% in net profit compared to 2022. Hanil Hyundai Cement reported individual revenue of KRW 504.7 billion, operating profit of KRW 48 billion, and net profit of KRW 36.6 billion in 2023. These figures represent increases of 7.1% in revenue, 36.4% in operating profit, and 2.6% in net profit compared to the previous year. Although Hanil Cement has not yet announced its annual results, it is expected to have performed well, considering Hanil Holdings consolidates its affiliate's results. Hanil Holdings owns 60.9% of Hanil Cement, and Hanil Cement holds 73.32% of Hanil Hyundai Cement. Given that it is difficult to reduce dividends once increased, Chairman Huh appears confident about solid performance this year as well. Despite a gloomy outlook for the construction industry, which is a key upstream industry, securities analysts expect strong performance from Hanil Cement Group. Kim Sun-mi, a researcher at Shinhan Securities, stated, “Hanil Cement can respond to a decline in cement shipment volume due to its business structure involving cement, ready-mixed concrete, and remital. The shipment volume of remital is expected to be better than cement in 2024.” Although construction starts have decreased, stable remital shipment volumes suggest the potential for stable performance this year. Cement and ready-mixed concrete are used in the early stages of construction, while remital is used in later stages. Strong performance will also aid Chairman Huh’s planned large-scale facility investments for carbon neutrality and recycling resources. Hanil Cement Group plans to spend KRW 393.6 billion on greenhouse gas reduction and recycling resource facility investments. Chairman Huh initiated the eco-project on the group's 60th anniversary in 2021, aiming for net zero (carbon neutrality) by 2050. The group completed KRW 103.1 billion in investments from 2021 to 2022 and plans to invest KRW 290.5 billion from last year to 2025. They will invest in infrastructure at the Danyang, Yeongwol, and Samgok plants to increase the use of recycled resources and establish equipment for eco-friendly power generation at the Yeongwol plant. Additionally, they plan to install waste heat and solar power generation facilities at major plants and pursue a transition to hydrogen energy in the long term. With Chairman Huh actively pursuing shareholder value returns and eco-friendly facility investments, there is growing interest in whether the stock price will respond accordingly. Since 2021, Hanil Holdings' stock has been trading around KRW 12,000, while Hanil Cement rose to around KRW 26,000 in early 2022 but has recently been around KRW 12,000. Hanil Hyundai Cement's stock price rose to about KRW 45,000 in early 2021 but recently stands at around KRW 15,000. Hanil Holdings hit a 52-week high of KRW 13,610 during the day on the 13th, yet the three companies' PBR (Price-to-Book Ratio) is considered low. Hanil Holdings' PBR is 0.27, Hanil Cement's is 0.57, and Hanil Hyundai Cement's is 0.79. Although Hanil Cement’s results have not been disclosed, the three companies' ROE (Return on Equity) is estimated to exceed 9%. There is also optimism that Hanil Cement Group could benefit from the government's value-up program. This program, aimed at addressing the undervaluation of the Korean stock market, is expected to be detailed in February. Financial Services Commission Chairman Kim Joo-hyun announced on January 24 that the value-up program would include comparing major investment indicators (PBR, ROE) of listed companies by market cap and sector, recommending the announcement of corporate value improvement plans, and introducing an index fund (ETF) comprising companies with outstanding corporate value improvements. Lee Sang-heon, a researcher at Hi Investment & Securities, commented, "The core of the value-up program is to eliminate major shareholders' pursuit of private interests and improve governance structures. This could translate into shareholder return policies like high dividends and stock buybacks for companies. Through expanded dividends, the corporate value of holding companies could be re-evaluated." #HanilCement #ESG #HuhGiho #shareholderreturns #sustainability #dividends #corporatevalue #investment #carbonneutrality #constructionindustry
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- Shin Chang-jae Leads Kyobo Life Briefing: "Gain Trust with Solutions"
- Shin Chang-jae, CEO and Chairman of the Board of Kyobo Life Insurance, emphasized that the company must offer comprehensive solutions to gain customer trust. According to Kyobo Life Insurance on the 5th, Shin held three talk shows at the Gwanghwamun headquarters to share management issues with employees. A total of about 1,200 head office employees attended these sessions, with about 400 employees in each session. Every year at the beginning of the year, Shin holds a management briefing session at the Cheonan training center (Gyesongwon) for over 800 executives, including branch managers from the sales field and team leaders from the head office. This year, he spent about two hours directly communicating with all 1,200 employees working at the head office. In this year's management briefing session, Shin shared his management philosophy that the role of an insurance company should not be limited to paying insurance benefits. Shin said, "We must faithfully serve as a 'mutual aid' platform that helps customers overcome future adversities through life insurance," and "Beyond paying insurance benefits, we must gain customer trust by offering comprehensive solutions that help customers solve problems and quickly recover to normal life." He also emphasized the spirit of challenge. Shin stated, "We need a challenge that does not fear failure," and "We need a corporate culture where members of the organization can boldly innovate to find and solve customer problems without fearing healthy failures during this process." He continued, "Failure is a prerequisite for success," adding, "We must learn from failures and continue to innovate." The management briefing session is an opportunity to evaluate last year's management and share this year's management policies with employees. Kyobo Life Insurance explained that Shin has engaged in continuous communication this year to sufficiently share his management policies with employees. #KyoboLifeInsurance #ShinChangjae #InsuranceSolutions #CustomerTrust #ManagementBriefing #CorporateCulture #Innovation #MutualAid #Leadership #EmployeeCommunication
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- Geopolitical Tensions Rise, Park Sang-kyu Signals SK Innovation Restructuring
- Park Sang-kyu, President of SK Innovation, has announced plans to reorganize the company's business portfolio. This move aims to reduce unnecessary expenditures and ensure the stability of affiliate operations in response to the management uncertainties surrounding the oil refining industry in 2024. On January 2, Park mentioned the business reorganization of SK Innovation in his New Year's address. Park stated, "We will critically evaluate the business portfolio of SK Innovation’s affiliates based on past and current performance, future outlook, profitability, competitiveness, and risks. Based on this, we will allocate limited resources to create a solid portfolio." He added, "In the face of a global management environment that threatens survival, it is urgent to improve our structure. Let's reassess our overall strategic direction from an efficiency perspective, focusing on output relative to input, and develop competitive enhancement measures." He also urged all members to actively seek out and rectify inefficiencies and waste. The New Year's address highlighted the increasing uncertainties in the refining industry. Refineries' revenues significantly depend on refining margins—the price difference between crude oil purchase and refined product sales. The volatility of international crude oil prices has heightened the uncertainty of refining margins. According to Reuters, 34 refining industry analysts predict that uncertainties in the refining sector will continue in 2024 due to the Ukraine war, Middle East conflicts, and voluntary production cuts by OPEC. Analysts agree that OPEC’s voluntary production cuts are likely to exert upward pressure on international oil prices in the first half of next year. As of November 2023, the voluntary production cut agreed upon by OPEC and its partners totals over 6 million barrels per day, which is about 6% of the world’s oil production. The ongoing Israel-Palestine conflict and the Red Sea crisis are also expected to amplify uncertainties in the refining industry. On December 31, a U.S. Navy aircraft carrier, USS Eisenhower, and its escort group operating in the Red Sea responded to a distress call from the Maersk Hangzhou, using missiles and aircraft to eliminate about ten Yemeni rebels and sink three vessels. International oil prices fluctuated continuously in December due to tensions and resolutions in the Middle East crisis. Oil prices surged to around $72 from December 15 when the Yemeni Houthi rebels announced attacks on ships passing through the Red Sea, peaking at $75 on December 26. Prices fell to around $71 on December 28, following news that major shipping companies like Maersk and CMA CGM would resume Red Sea operations, easing supply concerns. SK Innovation, which relies on its oil business for 60% of its revenue, faces expanding management uncertainties. In the third quarter of last year, the business environment was favorable. SK Innovation’s oil business revenue reached KRW 34.6726 trillion, with an operating profit of KRW 975.9 billion until the third quarter of 2023. Due to the booming refining industry, SK Innovation recorded an operating profit of KRW 1.1125 trillion in the third quarter alone. This contrasts sharply with the KRW 274.8 billion operating profit in the first quarter and the KRW 411.2 billion operating loss in the second quarter. However, the fourth quarter's business environment was not favorable for SK Innovation's oil business, particularly with unstable refining margins. According to S&P Global, the complex refining margin dropped to around $4 in October 2023 but recovered to $11 in November. Typically, a refining margin of $4-$5 is considered the breakeven point. Overseas energy-related financial firms such as Kepler and CIBC view the volatility in supply due to changes in OPEC's voluntary production cuts as the biggest factor contributing to market uncertainties. Rebecca Babin, a senior trader at CIBC, said in an interview with Market Insider on January 2, "OPEC still has means to restrict oil supply, but it may soon be unable to do so. Additionally, changes in demand due to China's economic situation and increased U.S. oil production are accelerating uncertainties." Park’s use of strong language like "threatening survival" in his New Year's address reflects these conditions. The ongoing international political conflict between the U.S. and China has prolonged China's economic downturn, and the U.S. also faces unfavorable economic conditions due to the Ukraine war and prolonged high interest rates. Park emphasized, "This year is expected to be an era of hyper-uncertainty. Geopolitical conflicts due to the U.S.-China rivalry, global market fragmentation, and global financial market headwinds continue." He added, "This will be a challenging year, but SK Innovation’s accumulated strengths will help us overcome it. By consolidating our capabilities, we can ensure survival, strengthen our core competitiveness, and achieve sustainable growth." Indeed, Park was appointed as President of SK Innovation to navigate the uncertain management environment. In December 2023, SK Innovation stated that Park was expected to contribute to strengthening internal stability and generating performance amid an uncertain management environment. Park was also recognized for effectively restructuring SK Networks' business during the COVID-19 crisis, reducing its impact. In 2020, when the COVID-19 crisis peaked, SK Networks restructured its business around rental services like home appliances and rental cars. SK Rent-a-Car, now the industry's second-largest after Lotte Rent-a-Car, was launched as a unified corporation during this period. #SKInnovation #BusinessReorganization #ParkSangkyu #RefiningIndustry #ManagementUncertainty #EfficiencyImprovement #GlobalConflicts #OPEC #OilPrices #CorporateStrategy
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- The Secret Behind How "Perennial No. 2" SK Hynix Is Now Challenging Samsung Electronics for the Top Spot in Memory
- Woori Financial's Yim Jong-yong Faces Leadership Crisis – Can He Regain Trust?
- Ownerless KT: Kim Young-shub's Choice of 'Safety' Over 'Adventure' in AI – The Outcome?
- From Teller to Chairman: Ham Young-joo's Final Puzzle for Hana Financial Group's Leadership
- Kim Young-shub of KT Competes Against Former Team LG Uplus: Leadership in ‘Public-like Private’ KT
- The 'Heaven and Earth' Difference Between Timon and Coupang: Key Leadership Differences Between Kim Beom-seok and Koo Young-bae
- KB Financial's Yang Jong-hee Leadership Takes Hold: Can He Escape the Shadow of His Predecessor and Show His Own Style?
- DB Group's Rebound Hindered: Kim Nam-ho Faces Challenges with Holding Company Transition and Management Stabilization
- Steelman Chang Sae-joo Returns to Dongkuk Steel: Can He Overcome Owner Risk and Lead a Rebound?
- AmorePacific Shows Signs of Rebound After Long Period of Slump: What is Suh Kyung-bae's Strategy?
- Kim Jung-soo's Secret to Turning Samyang Foods into the 'NVIDIA of the Food Industry'
- Kim Yee-jung, Founder of Weflo, Started as an In-house Venture at Hanwha Systems, Now Ensures Safe Skies
- Will Kim Hong-kuk turn the failure of HMM acquisition into an opportunity to turn Harim Group around?
- Cho Won-tae's Dream: Korean Air and Asiana Airlines Merger Imminent, Consumers at a Disadvantage?
- Will Kim Seul-ah and Kurly Succeed in IPO, Aiming to Become an E-commerce Giant?
- What the Second Trial of Chey Tae-won’s Divorce Left Behind: The Frame of SK's Political-Business Collusion
- Baek Jong-won Faces Setback with Yeondon Bolkatsu Incident, Will Theborn Korea's Listing Sail Smoothly?
- SK Shaken by Chey Tae-won and Roh So-young's Divorce Lawsuit, Possibility of Recurring Nightmare of 'Sovereign'?
- K-Culture 'Godmother' Lee Mi-kyeong (Miky Lee): How Will She Uphold CJ Group's Status as a Content Powerhouse?
- SK's 1.38 Trillion Divorce Lawsuit: Key Points in the Third Trial of Chey Tae-won and Roh So-young
- Naver's Choi Soo-yeon Faces Leadership Test Amid Line-Yahoo Crisis
- From Ugly Duckling to Swan, How Park Gee-won Transformed Doosan Enerbility
- Chung Mong-gyu Cornered: Can He Regain Trust in HDC and Football?
- Philip Cheon, from Casino Prince to CEO of Major Corporation
- DL Group's Personnel Restructuring, Will Lee Hae-wook Overcome Crisis?
- Hanwha Ocean Won't Yield Next Destroyer: Kim Dong-kwan Mirrors Kim Seung-yeon
- Korean Air and Asiana Airlines Merger on the Horizon, Will Cho Won-tae Keep His Promise of Becoming a Global Top Tier?
- The Succession Plan at Hanwha: What Will Kim Seung-yeon's Three Sons Bring?
- Lee Jae-yong's 7 Years of No-Salary Management: Lessons from BMW and Wallenberg