Hanwha Group Chairman Kim Seung-yeon came down from the positions of seven executives, including Hanwha Corporation, in February 2014. When he was sentenced to probation for his assignment, he withdrew from the management front. However, it wasn’t that he left his hands on management. He maintained the position of chairman of the group and received reports of heavy projects such as the acquisition of Samsung General Chemical in 2015.
However, there was no official title. Although he was a symbolic chairman, he had a weak reason to participate in management. As the employment restrictions were lifted from the 19th, the industry interpreted that Chairman Kim’s appointment to the executives of key affiliates was to lay the groundwork for management participation and to engage in full-scale external activities in the future.
Return to unregistered officer
According to Hanwha on the 26th, Chairman Kim will return to management as an unregistered executive of Hanwha Hanwha Solutions, Hanwha E&C next month. While returning to management, Chairman Kim decided not to become a representative or registered director with legal status. There is no need to go through a resolution of the board of directors or a general shareholders’ meeting.
A Hanwha official said, “We have already considered that each affiliate has an autonomous and responsible management system centered on the board of directors.” Many large corporations do not actually serve as registered executives. Samsung Electronics vice chairman Lee Jae-yong, CJ Group chairman Lee Jae-hyun, and Shinsegae Group vice chairman Jeong Yong-jin are also unregistered officers in charge of the group.
The fact that Chairman Kim’s children are in front of management inside and outside the company is also interpreted as the reason for returning to unregistered executives. The eldest son, Kim Dong-gwan, is the head of the strategic division of Hanwha Solutions, a key subsidiary of the group. He is also planning to become a registered executive of Hanwha Aerospace. The second son, Dongwon Kim, is in charge of the digital financial platform business at Hanwha Life Insurance. Samnam Kim Dong-sun, Managing Director of Hanwha Energy, also participates in the management. The analysis of the business community is that Chairman Kim does not have to come to the fore.
“I will draw a sketch of my future business”
Hanwha said that Chairman Kim’s role was “establishing future growth strategies” and “supporting global business”. An official from Hanwha said, “The subsidiary’s board of directors and representatives will conduct detailed operations independently, and Chairman Kim will draw a big picture and focus on overseas business.”
In his New Year’s address earlier this year, Chairman Kim ordered, “We must preoccupy the global market even when we do new businesses such as future mobility, aerospace, green hydrogen energy, and digital financial solutions.” Since then, each affiliate has been aggressively investing in the field. Last month, Hanwha Aerospace acquired Setrec-I, a leader in the domestic satellite field, and Hanwha Energy established a renewable energy joint venture in the United States with Total in France. Hanwha Solutions plans to make massive investments in solar and hydrogen energy.
In the defense sector, Chairman Kim is expected to lead the export of K9 self-propelled guns, alliances for urban aviation mobility (UAM) business, and overseas expansion of renewable energy businesses such as solar power. US President Joe Biden’s powerful renewable energy business is expected to be empowered. This is because there are many networks in the US political and business world, such as President Kim being invited to the inauguration ceremony of former Presidents Bill Clinton and Donald Trump. Chairman Kim also served as the chairman of the Korea-US Exchange Association established in 2001, and has also maintained a relationship with the Heritage Foundation, a representative think tank in the United States.
There is also a prospect that the succession work will be accelerated with the return of Chairman Kim. Chairman Kim is the largest shareholder with a 22.65% stake in Hanwha Corporation, which serves as a holding company within the group. The eldest son, President Kim, is only 4.44%, and his younger siblings each have a 1% stake. The industry expects that with Chairman Kim’s return to management, there will be changes in the donation of shares, adjustment of business units, and succession structure.
Reporter Ahn Jae-kwang [email protected]