Hyundai Heavy Industries Group Construction Equipment Division "Will Rise to Global TOP5 by 2025"

Holding Company 'Hyundai Genuine' Launched... Kwon Oh-gap and Cho Young-chul Appointed Co-CEOs
Acquisition of Doosan Infracore Nears Completion with Approval of Corporate Merger in 5 Countries
Full Payment Scheduled for August, Birth of a National Leader in Construction Machinery Industry Imminent

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Genuine, the intermediate holding company of Hyundai Heavy Industries Group's construction machinery division, officially launched with a blueprint to rank in the global TOP5 by 2025.

On the 27th, Hyundai Heavy Industries Group held a temporary shareholders' meeting for the intermediate holding company Hyundai Genuine and appointed Kwon Oh-gap, Chairman of Hyundai Heavy Industries Holdings, and Cho Young-chul, President of Korea Shipbuilding & Offshore Engineering, as co-CEOs.

On the same day, Hyundai Heavy Industries Group also promoted Vice President Cho Young-chul of Korea Shipbuilding & Offshore Engineering and Vice President Oh Se-heon, Head of Compliance Management Office, to President.

The newly appointed CEO Cho Young-chul, born in 1961, has served as Hyundai Heavy Industries' head of finance, Hyundai Oilbank's head of management division, and Hyundai Heavy Industries' head of finance division. He currently serves as CFO of Hyundai Heavy Industries Group and Head of Management Support Office at Korea Shipbuilding & Offshore Engineering.

Kwon Oh-gap, appointed as co-CEO, served as the first President of Hyundai Oilbank in 2010, Hyundai Heavy Industries CEO and Group Planning Director in 2014, and currently serves as CEO of Hyundai Heavy Industries Holdings and Korea Shipbuilding & Offshore Engineering.

A Hyundai Heavy Industries Group official explained, "Chairman Kwon Oh-gap taking on the role of co-CEO of Hyundai Genuine is to focus on nurturing the construction machinery business as a core business of the group alongside shipbuilding and energy businesses, and to strengthen responsible management."

Hyundai Genuine plans to raise additional funds through KDBI and acquisition financing and complete the full payment for the acquisition by August. Once this deal is finalized, Hyundai Genuine will become an intermediate holding company with Hyundai Construction Equipment and Doosan Infracore as subsidiaries, emerging as a national representative company in the construction machinery sector.

New CEO Cho Young-chul stated, "We will focus on investing in technology development that leads the market to build global competitiveness, striving to make the construction machinery division a core business of Hyundai Heavy Industries Group. Through maximizing synergy between Doosan Infracore and Hyundai Construction Equipment, we aim to achieve over 5% global market share and rank in the global Top 5 by 2025," expressing his inauguration remarks.

Hyundai Heavy Industries Group recently obtained corporate merger approvals from five countries, including the Korea Fair Trade Commission, Russia, China, Vietnam, and Turkey, completing preparations for acquiring Doosan Infracore. Accordingly, Hyundai Heavy Industries Holdings held a board meeting on the 26th (Monday) and approved agenda items including ▲contribution in kind of Hyundai Construction Equipment shares ▲capital increase by paid-in capital.

Hyundai Heavy Industries Holdings will contribute 33.1% of Hyundai Construction Equipment shares in kind to Hyundai Genuine and receive new shares of Hyundai Genuine. Hyundai Genuine will participate in a paid-in capital increase worth 217.9 billion KRW conducted for the purpose of acquiring Doosan Infracore.

Meanwhile, Oh Se-heon, who was promoted to President together, was born in 1959, graduated from Seoul National University with a degree in law, and completed the 14th Judicial Research and Training Institute. He worked at the Seoul District Prosecutors' Office and Daejeon District Prosecutors' Office, practiced as a lawyer at Kim & Chang from 2004, joined Hyundai Heavy Industries in 2015, and currently serves as Head of Compliance Management Office at Korea Shipbuilding & Offshore Engineering.