Cement Industry, Personnel Divided by 'Raw Materials'

Han In-ho, President of Seongsin Cement, Over 30 Years of Resource Management in Overseas Department
Jeon Geun-sik, President of Hanil Cement, 30 Years Dedicated to Cement Industry, Recognized as a 'Cement Expert'

Han In-ho, President of Seongsin Cement.
[Photo by Seongsin Cement]

[Asia Economy Reporter Kim Jong-hwa] Seongsin Yanghoe, a mid-sized cement manufacturer, appointed Han In-ho, Executive Vice President, as the new CEO on the 1st. Mr. Han is well-known as an expert in overseas business. He worked for nearly 30 years in the overseas division at Samsung C&T, managing resource operations and even leading the resource business division as a managing director. Since joining Seongsin Yanghoe in 2016, he has been spearheading overseas business initiatives.

Why would a cement company located inland and not engaged in exports appoint an overseas business expert as CEO? The answer lies in the thermal coal crisis that shook the domestic cement industry from the beginning of the year. As stable thermal coal supply became more critical than anything else, the need arose for an expert capable of securing raw materials first in the global market.

This year’s key personnel themes in the cement industry, which has been going through an unusually tough year, can be summarized in two words: 'raw materials' and 'profitability.' It was a year that continuously tested the management’s ability to respond swiftly to changes and crises, including prompt action for smooth raw material supply and securing stable profitability.

Before becoming CEO, Mr. Han, as Executive Vice President and Head of Overseas Business Division, led the establishment of overseas subsidiaries such as Jinseong International, expanding overseas operations. Jinseong International, based in Singapore, is a company with a high proportion of intermediary trade, importing and reselling resources from key countries like Russia and Vietnam. It is reported that during last year’s thermal coal crisis, he played a leading role in bringing additional thermal coal from Russia and other countries into Korea.

Upon his appointment as CEO, Mr. Han stated, "We will accelerate the expansion of overseas business focused on Southeast Asia and the Middle East, as well as eco-friendly businesses through recycling of circular resources," adding, "We will establish a management system that secures new growth engines for the company and pursues both profitability and growth."

Jeon Geun-sik, President of Hanil Cement.
[Photo by Hanil Cement]

Hanil Cement and Hanil Hyundai Cement appointed Jeon Geun-sik, a 'traditional cementman,' as the vanguard for overcoming the crisis. On October 25, Hanil Holdings promoted Mr. Jeon from Vice President of Hanil Cement to concurrently serve as CEO of both Hanil Cement and Hanil Hyundai Cement.

Mr. Jeon is a self-made figure who joined Hanil Cement as a new employee and rose to CEO. Having experience in production and planning, he is recognized as a cement expert both inside and outside the industry. He served as Deputy Plant Manager at the Danyang plant and led the integration work as Planning Director when Hanil Cement acquired Hyundai Cement in 2017. For this achievement, he was promoted to Vice President of Hanil Hyundai Cement.

Although he had effectively controlled the cement companies even before his promotion to CEO, the recent personnel move gave him full authority. To overcome the crisis and promote development of the cement affiliates, Mr. Jeon has even resigned from his position as CEO of Hanil Holdings to devote his passion. An industry insider said, "He is one of the few authentic cementmen in the domestic cement industry, with exceptional drive and planning skills, making him the optimal key person for managing profitability and overcoming crises," adding, "Since he is a style that does not hesitate to try new things and changes, he is expected to lead the industry with aggressive management."

Ssangyong C&E has formed a new lineup of strong managerial-type vice presidents to support CEO Lee Hyun-joon. On June 27, Ssangyong C&E promoted Executive Directors Lee Byung-joo and Ji Jun-hyun to Vice Presidents to strengthen the support team for overcoming the crisis. Both vice presidents retained their current roles but were promoted in rank.

New Vice President Lee Byung-joo, as an executive in charge of support and SCM (Supply Chain Management), has maintained a strong labor-management relationship based on a culture of concession and cooperation over a long period. He is credited with enabling the company to maintain an uninterrupted record of 58 consecutive years without strikes or disputes, the highest level among listed companies in Korea. He also contributed to establishing a foundation for stable and competitively priced supply of key raw materials amid the global raw material supply crisis.

New Vice President Ji Jun-hyun, as the executive overseeing cement sales and slag cement business, led option contracts for key raw materials from 2018 to 2021 considering rapidly changing global raw material price trends, significantly contributing to manufacturing cost reduction. He also ensured stable supply of water-cooled slag, a major raw material for slag cement with excellent carbon reduction effects, and contributed to achieving management goals through synergy with slag cement affiliates and expansion of the cement sales base.

An industry insider said, "The cement industry faced a greater crisis this year than ever before," adding, "The appointment of those with proven crisis response capabilities based on expertise and long experience stood out as a key move to overcome this."