Rapid Changes in Business Environment After COVID-19
Cho Hyun-min, Hanjin Vice President, Personal Investment in Singapore Untact Startup
Heo Tae-hong, GS Futures CEO, Considering Investment in Mobility and Hydrogen Sectors
Kim Dong-won, Hanwha Life Executive Director, Interested in Blockchain Startups
[Asia Economy Reporter Hwang Yoon-joo] Third and fourth-generation business heirs in their 30s and 40s are turning their attention to startup investments. This is interpreted as a strategy to survive in the rapidly changing business environment after COVID-19 by partnering with startups. There is also an analysis that the investment tendencies of young owner families are shifting from real estate to startup investments.
According to the business community on the 18th, Cho Hyun-min, Vice President of Hanjin, recently made a personal investment in a Singaporean startup. The company develops online tours that allow users to travel domestically and internationally and attend exhibitions via live video calls from home. Currently, tours are available for Amsterdam (Netherlands), Venice (Italy), Budapest (Hungary), Cape Town (South Africa), Jerusalem (Israel), Hokkaido (Japan), Taipei (Taiwan), Yangon (Myanmar), and Seoul (Korea).
An investment banking (IB) industry official said, "Vice President Cho is very interested in online travel and logistics sectors that can create synergy with Hanjin Group's core businesses," adding, "As overseas travel became difficult due to COVID-19, this is aimed at capturing demand for contactless travel and exhibitions."
Heo Tae-hong, CEO of GS Futures, recently recruited three venture investors who are alumni of Stanford University at once and is reportedly reviewing investments in startups in the mobility and hydrogen sectors. Mobility and hydrogen are areas that can create synergy through the group’s key affiliates, GS Caltex (gas stations) and GS Retail (convenience stores).
The third generation of Hanwha Group is more active in startup investments. Kim Dong-won, Executive Director of Hanwha Life and the second son of Chairman Kim Seung-yeon, is known to be focusing on blockchain startups. This is based on the judgment that blockchain can improve work efficiency, expand existing areas such as overseas payments, and foster new businesses. Kim Dong-kwan, the eldest son and CEO of Hanwha Solutions, also acquired 100% of the shares of Jelly, a company that develops and sells energy management systems (EMS), last year.
There are two main reasons why young owners in their 30s and 40s are interested in startups. First, the business environment has changed significantly compared to their fathers’ generation. After COVID-19, the contactless economy has accelerated, shaking up existing businesses such as travel and banking. Moreover, with strengthened environmental regulations like decarbonization and ethical consumption, they have no choice but to turn their attention to eco-friendly sectors (mobility, solar power, hydrogen).
There is also an analysis that startups are being viewed as investment destinations to secure cash. Investing in startups with high growth potential can yield returns of several thousand times and also create business synergies.
A business community official explained, "Third and fourth-generation owners who inherited traditional industries feel the burden of not ruining the companies their fathers built," adding, "They aim to strengthen the competitiveness of their core businesses and expand into global markets through collaboration with startups."
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