Hyundai Heavy's Third-Generation Management Begins in Earnest... Challenges for New President Jeong Gi-seon

Importance of Early Lead in Hydrogen and AI
Challenges in Shipbuilding: Eco-friendliness and Advancement
Co-CEO with Current Chairman Kwon Oh-gap
Expected to Oversee Overall Group Business in Future

[Asia Economy Reporter Choi Dae-yeol] Jeong Gi-seon, Vice Chairman of Hyundai Heavy Industries Holdings (photo), has been promoted to president, marking his full-fledged entry into management. Jeong, the eldest son of Jeong Mong-joon, chairman of the Asan Social Welfare Foundation and the largest shareholder of Hyundai Heavy Industries Holdings, was also appointed as the CEO of Korea Shipbuilding & Offshore Engineering, the intermediate holding company for the holding company and shipbuilding division, with this promotion. This move is seen as a boost to various new businesses, including the hydrogen project promoted at the group level, and marks the full-scale start of third-generation management.

The newly appointed President Jeong was born in 1982 and graduated from Yonsei University and Stanford University in the United States. He joined Hyundai Heavy Industries in 2013 as senior manager of the management planning team. He currently serves as head of management support at the holding company and CEO of Hyundai Global Service, an affiliate. The company provides various services including ship maintenance, and Jeong has been serving as CEO since 2018.

With this personnel change, Jeong is taking charge of both the group holding company and the core affiliate, marking the owner family’s move toward responsible management. Although Chairman Jeong Mong-joon was involved in company management in the 1970s and 1980s, the group has maintained a professional management system for about 30 years since Jeong’s entry into politics in 1988. President Jeong is expected to serve as co-CEO of Hyundai Heavy Industries Holdings alongside current Chairman Kwon Oh-gap, who has led the group so far.

As the group undergoes affiliate restructuring and the management environment surrounding the shipbuilding industry rapidly changes, the challenges ahead for President Jeong are considerable. In particular, new businesses directly overseen by Jeong, such as hydrogen and artificial intelligence (AI), are in fiercely competitive markets just beginning to form. The group’s core shipbuilding industry is also experiencing a rapidly changing management environment as demand arises for smart ships that integrate advanced IT technology amid tightening environmental regulations.

The company explained the personnel change by stating, "He actively worked to establish business strategies and growth foundations for each affiliate as head of management support at Hyundai Heavy Industries Holdings. Recently, he has demonstrated capabilities in discovering new businesses, accelerating digital management, and creating business synergies, contributing to the group’s future strategy formulation."

He will also directly or indirectly oversee the construction machinery division (Hyundai Genuine), which has emerged as another pillar of the group through the acquisition of Doosan Infracore, and the refining and petrochemical division (Hyundai Oilbank, Chemical, etc.), which is under pressure from environmental regulations. Industry insiders expect that while professional managers including Chairman Kwon have handled restructuring of existing businesses and President Jeong has managed new businesses, going forward, Jeong’s influence will be significantly strengthened across the entire group’s business operations.