GS Chairman Huh Tae-soo Plans M&A Blueprint Including Doosan Infracore and Others

Heo Tae-soo Seeks New Businesses to Strengthen Core Competitiveness of Affiliates
Focus on Shin Sang-chul, Vice President to Lead GS Construction's New Business Division

[Asia Economy Reporter Hwang Yoon-joo] In the first executive reshuffle since Chairman Heo Tae-soo's appointment, GS Group's bold appointment of external talent to the new business division, where the owner family is positioned, is interpreted as a strong commitment to actively invest in new business ventures that will drive the group's future, such as the acquisition and merger (M&A) of Doosan Infracore.

The most notable executive after the GS Group reshuffle within and outside the business community is Shin Sang-chul, Vice President and Head of the New Business Support Group at GS Construction. Vice President Shin has a solid track record in the capital market. He is well-known for turning a deficit company into a profitable one when he moved from IMM Investment to become CEO of Hollys F&B. Vice President Shin is expected to play a key role in the Doosan Infracore acquisition led by GS Construction.

GS Group's decision to transfer Heo Seo-hong, Executive Director of GS Energy and a fourth-generation member of the owner family, to the holding company GS Corporation ahead of this reshuffle is also seen as a strategic move to strengthen new business. Executive Director Heo has experience working with Chairman Heo on new business strategies at GS Home Shopping from 2006 for two years. He is currently responsible for new business strategy at GS Corporation. By collaborating with Chairman Heo on new business strategies and coordinating overlapping investments among affiliates, the externally recruited vice presidents will expand new business.

In fact, Chairman Heo has recently taken a keen interest in SK Construction's acquisition of EMC Holdings. EMC Holdings is the largest waste disposal company in Korea, acquired by SK Construction to diversify its business. If GS Construction acquires Doosan Infracore, it can diversify its business structure, which is currently focused on housing and plants. Additionally, it can strengthen synergy through vertical integration with the construction division and enhance GS Construction's competitiveness in overseas markets. Chairman Heo is reported to plan meetings with domestic private equity funds (PEFs) starting this month, along with M&A officers from each affiliate, to discuss M&A strategies.

A business community official said, "Chairman Heo has experience in the capital market, including LG Investment & Securities, so he has a keen sense for new business investments," adding, "This reshuffle signifies that the traditionally conservative GS Group is actively seeking new business opportunities."