[New Year's Address] Heo Tae-su "Focusing on New Businesses through Strengthening Digital Capabilities and Eco-friendly Management"

"Strengthening Future Capabilities Through Business Portfolio Restructuring"
"Discovering New Businesses in Various Fields"
"Improving Organizational Culture"

Huh Tae-soo, Chairman of GS

[Asia Economy Reporter Hwang Yoon-joo] Heo Tae-soo, Chairman of GS, stated, "We must focus on discovering new businesses through strengthening digital capabilities and eco-friendly management."

At the 2021 GS New Year meeting held online on the 4th at GS Tower in Gangnam-gu, Seoul, Chairman Heo said, "Last year was a period of intensified uncertainty amid the COVID-19 crisis, but it was a year in which we steadily prepared for the future through digital transformation and business structure reorganization."

Following his first New Year meeting after taking office last year, where he communicated candidly in a standing talk format, this year's New Year meeting was held online, allowing real-time communication with all executives including affiliate CEOs. This is known to reflect Chairman Heo's usual belief in continuously innovating GS in response to changes in customers and the market.

Chairman Heo mentioned key management strategies to focus on this year, including ▲ restructuring the business portfolio to strengthen future competitiveness ▲ discovering new businesses in various fields ▲ improving work methods to build an organization that adapts to change.

In particular, Chairman Heo urged to first strengthen future competitiveness through restructuring the business portfolio. He said, "Utilizing digital technologies such as artificial intelligence (AI), data, and cloud is an essential element of future work," adding, "existing core businesses should accelerate digital transformation, and GS should pursue a 'Big to bigger' strategy by collaborating externally to improve and expand the tangible and intangible capabilities it possesses."

He also emphasized the need for efforts to discover new businesses in various fields.

Chairman Heo stated, "New businesses should expand opportunities into various fields such as eco-friendly and mobility sectors integrated with digital technology," and added, "We will pursue a 'New to big' strategy by finding new opportunities through open innovation in cooperation with startups and venture capital, and by cultivating GS's investment capabilities to create businesses different from existing ones."

Lastly, Chairman Heo mentioned, "we must establish a customer-centric mindset where all businesses start from changes and needs of customers," and also referred to the 'work method improvement' he has emphasized since taking office.

Chairman Heo stressed, "We must build a digital transformation centered on data and AI, and realize open innovation that captures new opportunities externally."

He continued, "Through agile organizational execution, let's foster a culture that encourages rapid experimentation and quick failure, and cultivate a horizontal and voluntary work culture for true change and reset."