[New Year's Message] Kwon Oh-gap "Next Year Must Achieve Innovation in Business Structure, Mindset, Technology, and Systems"

Preempting the Marine Mobility Market, Call for ESG Management Implementation
Proposal to Establish 'System Innovation TF' for Each Company

[Asia Economy Reporter Hwang Yoon-joo] Kwon Oh-gap, Chairman of Hyundai Heavy Industries, presented 'value creation through innovation' as the core keyword for the group next year and revealed specific action plans.

In his "2022 New Year's Address" on the 31st, Chairman Kwon said, "If the past 50 years were a time of challenge and growth, the present moment, starting the next 50 years, must be a time of creating new value through innovation."

Chairman Kwon first stated, "The whole world is facing climate change along with energy environment transitions, digitalization, and ESG (Environmental, Social, and Governance) management becoming important factors," and added, "We must create business structure innovations that actively respond to these changes."

He emphasized, "In the shipbuilding and offshore sector, we must lead the marine mobility market through decarbonized ships and advanced autonomous navigation technologies, and in the energy sector, active entry into eco-friendly fields such as hydrogen and white bio is necessary."

He also said, "Digital transformation must be rapidly advanced in all areas of business, and ESG management should produce visible results through more active task discovery and implementation centered on the group’s ESG Committee."

Secondly, he called for innovation in thinking.

He said, "Innovation in thinking starts with 'being faithful to one's role,' and must begin with leaders," adding, "Innovation in thinking initiated by leaders will eventually spread throughout the entire company and ultimately be completed as new value that changes our company culture."

He then emphasized innovation in technology.

Chairman Kwon said, "With the group's move into the GRC in the new year, the area where we will put the greatest effort is securing research and development personnel," adding, "The GRC will become the group's 'control tower for future technology management,' and we will definitely create innovations in new technologies."

He explained that technological innovation will be achieved in two directions: 'optimization of existing technologies' and 'integration of new technologies.' He also stated that through intensive investment in eco-friendly fields, the group must play a leading role in the industries it operates.

Finally, he mentioned innovation in systems.

Chairman Kwon said, "Innovation in systems starts with redefining existing systems," and added, "We cannot change everything at once, nor can it be solved by external consulting."

He then urged, "This year, let each company create a 'System Innovation TF,'" and requested, "Please newly design systems and institutions suitable for each industry, such as shipbuilding, construction equipment, refining and petrochemicals, robotics, electrical and electronics, and services."