GS Energy Establishes Resource, Power, and Gas Divisions to Strengthen Energy Business Capabilities

External Hire Vice President Kim Seong-won Leads Organizational Restructuring
Expectations for Increased Investment in Energy Businesses Including Resources, Power, and Gas

[Asia Economy Reporter Hwang Yoon-joo] GS Energy, responsible for the energy business within the GS Group, is strengthening its core competencies. It has established three related business divisions under the Energy Resources Business Headquarters.

According to industry sources on the 9th, GS Energy carried out an organizational restructuring to create three divisions under the Energy Resources Business Headquarters: Resource Development, Power and District Energy Business, and Gas Business. Earlier, GS Chairman Huh Tae-soo conducted his first executive personnel appointment after taking office and recruited Mr. Kim Sung-won, who previously worked at the Ministry of Industry and Resources, POSCO, and Doosan Heavy Industries, as Vice President and Head of the Energy Resources Business Headquarters at GS Energy. The establishment of these divisions is seen as a follow-up measure to the recruitment of Vice President Kim, reflecting the company's intention to expand investments in the energy sector.

GS Energy serves as a mid-tier holding company responsible for the group's energy businesses, including refining and chemicals (GS Caltex), power and district energy (GS Power), gas (Boryeong LNG Terminal), and resource development. This organizational restructuring is expected to enable GS Energy to aggressively strengthen its capabilities and expand investments in the energy sector starting next year.

Funds for investment have also been secured. In 2018, GS Energy sold 100% stakes in Haeyang City Gas and Seorabeol City Gas to private equity funds (PEF). Of the 600 billion KRW from the sale, a portion (156.8 billion KRW) was invested in 'Lotte GS Chemical,' a joint venture with Lotte Chemical. Currently, 350 billion KRW is known to be allocated for investments in eco-friendly combined power plants and overseas resource development. After the executive appointments, Chairman Huh also held meetings with private equity firms such as MBK and Hahn & Company along with the new executives.

An industry insider explained, "GS Energy conducted an organizational restructuring after recruiting Vice President Kim Sung-won, who possesses insight into the energy business, to strengthen the capabilities of its existing businesses," adding, "They will consider new investments in the energy business sector."