Hanwha Chairman Kim Seung-yeon, whose employment restrictions will be lifted next month, announces return to management after 7 years

Input 2021.01.28 06:00

Seungyeon Kim Hanwha (000880)As the “restrictions on employment”, which was a stumbling block to the group chairman’s return to management of affiliates, are lifted next month, attention is focused on whether to return as CEO of Hanwha Corporation. Hanwha is in a position that “it has not been decided” for Chairman Lee’s return to management of affiliates, but there is a prospect that he will return to the position of CEO for responsible management, both inside and outside the group.

It is interpreted that the recent aggressive investment of Hanwha Group in the space industry and new and renewable energy is a stone for Chairman Kim’s return. In line with the return of Chairman Kim, there are opinions in the business world to elect him as the next president of the National Federation of Businessmen.

According to the business community and Hanwha Group on the 28th, the employment restrictions for Chairman Kim will be lifted on the 18th of next month. Chairman Kim was sentenced to four years in prison at the first trial in August 2012 and was imprisoned in court on charges of negligence under the Specific Economic Crimes Weighted Penalty Act (Special Privilege Act). At the second trial, his sentence was commuted to three years in prison, and in February 2014, he was sentenced to three years in prison and five years probation and released. Chairman Kim became a’body of freedom’ due to probation, but he had to withdraw from the post of CEO of Hanwha Corporation, Hanwha Solutions (then Hanwha Chemical) and Hanwha E&C.

The business community is paying attention to whether Chairman Kim will return to the position of CEO of group affiliates such as Hanwha Corporation. Some say that even after Chairman Kim resigned from the position of representative director of affiliates, he was in charge of overall management as the group’s head, so the significance of returning to the position of CEO is not significant.

Inside and outside the group, weight is being put on Chairman Kim’s return to the position of CEO. The reason is that although Chairman Kim has played a substantial role as the head of the board, official management activities were limited because he was not a member of the board of directors of core affiliates. Another reason for Kim’s return is the need for strong leadership amid growing uncertainties in the domestic and overseas economy due to the Corona 19 crisis.

Chairman Kim said in his New Year’s address earlier this month, “The Corona 19 situation will prolong and the next two to three years will be a time of uncertainty that changes the overall landscape of the industry.” I hope that new businesses will preempt the future growth opportunities in the world.”

An executive at an affiliate of Hanwha Group said, “I haven’t heard of Chairman Kim’s return to Hanwha Corp. and registered directors of affiliates.”

There are also observations that Chairman Kim’s return to management is also related to the succession of the third generation. Kim Dong-gwan, the current eldest son of Chairman Kim, Hanwha Solutions’ president, and the second son, Kim Dong-won Hanwha Life Insurance (088350)Executive Vice President and Samnam Kim Dong-sun, Managing Director of Hanwha Energy, are taking business classes at affiliates of the group. The eldest son, President Kim Dong-gwan, is 38 years old and is still young, so it takes time for the full-scale management succession to take place. Therefore, it is an analysis that it is highly likely that Chairman Kim will take the lead in managing the group and lead the succession work.

A business official said, “If Chairman Kim returns to the front line of management, the outline of the return method will appear at the shareholders’ meeting scheduled for March.”

In the business world, Chairman Kim is being discussed as the replacement of FKI Chairman Huh Chang-soo, whose term ends next month. Chairman Kim is considered the right person to build a broad network with the US Biden administration and business people. It is also the person who has held the position for the longest time among the vice presidents of the FKI. If Chairman Huh, who has led the FKI since 2011, will be reappointed again this time, he will serve as the FKI president for six consecutive times.