'2 Years Consecutive CES' Jeong Gi-seon "The Answer Lies in the Sea... Value of $24 Trillion" (Summary)

HD Hyundai Press Conference in the US
New Vision 'Ocean Transformation'
Investment in Fuel Cells, SMR, and Offshore Wind Power

Jeong Gi-seon, CEO of HD Hyundai, is delivering the keynote speech at the HD Hyundai Group press conference held in Las Vegas, USA, on the 4th (local time), one day before the opening of CES 2023. Photo by Choi Seoyoon

[Las Vegas (USA) = Reporter Choi Seoyoon] On the 4th (local time), Jeong Gi-seon, CEO of HD Hyundai, announced at a press conference held in Las Vegas, USA, one day before the world's largest electronics and information technology (IT) exhibition 'CES 2023', that "based on digital and engineering innovation technologies, we will fundamentally transform the way humanity interacts with the ocean," declaring 'Ocean Transformation' as the group's vision. He delivered the keynote speech at the conference for the second consecutive year.

◆ "The answer to sustainable growth lies in the ocean" = Wearing a deep blue knit reminiscent of the sea and light gray cotton pants, CEO Jeong emphasized, "The answer to sustainable growth lies in the ocean." He said, "The place we know best and can excel at is the ocean," adding, "We will realize a sustainable future for humanity by harnessing the infinite potential the ocean holds." With 51 years of history, HD Hyundai declared its commitment to realizing a sustainable future through a fundamental paradigm shift in perspectives and utilization methods regarding the ocean. He explained 'Ocean Transformation' as "a new approach to the ocean, which covers more than two-thirds of the Earth, reinventing the way we treat and utilize the ocean to discover its vast potential."

CEO Jeong estimated the ocean's potential value to be in the tens of trillions of dollars. He stated, "To overcome crises and achieve sustainable growth for humanity, it is necessary to discover new frontiers," and added, "HD Hyundai, as a future builder, views the ocean?an unknown area covering 70% of the Earth?as a new blue frontier for our generation." He further noted, "With maritime logistics expected to triple by 2050, the ocean, responsible for about 90% of global cargo volume, is becoming increasingly important," and "Considering all the untapped potential resources of the ocean, its value will far exceed $24 trillion."

◆ Achieving goals through cutting-edge technologies such as AI = CEO Jeong also presented the core goals of Ocean Transformation. These include 'Ocean Mobility,' which safely transports renewable energy with sustainable future ships; 'Ocean Wise,' which hyperconnects smart ships using marine data and AI analysis; 'Ocean Life,' which offers new leisure experiences through autonomous navigation technology; and 'Ocean Energy,' which utilizes the ocean as a new space for sustainable energy.

Kim Seong-jun, Director of Future Technology Research at Korea Shipbuilding & Offshore Engineering, who presented on Ocean Mobility, proposed the future vision of next-generation eco-friendly and digital ships as the answer to ocean sustainability. Following this, experts from various fields, including Shim Ji-ae and Baek Bong-seok, managers at Hyundai Global Service, introduced HD Hyundai’s marine data solutions utilizing AI and big data technologies, while Carl Johansson, Director at Avikus, presented a blueprint for a safer and freer ocean enabled by autonomous ship navigation technology.

Plans to focus on investment in next-generation energy sources were also revealed. Kim Yuri, Senior Researcher at Korea Shipbuilding & Offshore Engineering, gave a presentation on HD Hyundai’s vision for the marine energy ecosystem, stating, "Together with our world-class eco-friendly fuel engine technology, we will shape a sustainable future for the ocean through next-generation energy sources such as fuel cells, small modular reactors (SMR), and offshore wind power."

◆ Major U.S. partners also pledge support = Key executives from HD Hyundai’s major partners, including Sham Shaka, Chief Operating Officer (COO) of U.S. big data company Palantir, and Jan Kjersg?rd, Chief Executive Officer (CEO) of GE Offshore Wind, also appeared as speakers, pledging to help turn the ocean’s potential into reality.

Jung Ki-sun, CEO of HD Hyundai (center), is taking a commemorative photo with Sham Shaka, Chief Operating Officer of Palantir (left), and Jan Kjersgaard, CEO of GE Offshore Wind, at a press conference held on the 4th (local time) in Las Vegas, USA, ahead of the opening of CES 2023. Photo by Choi Seo-yoon

Palantir, which formed a strategic alliance with HD Hyundai last year for big data business, is the world’s leading big data platform company with global clients such as the U.S. Central Intelligence Agency (CIA) and Airbus. On this day, COO Sham Shaka said, "We look forward to the synergy that will be created between the two companies, both possessing world-class technological capabilities, in pursuit of HD Hyundai’s Ocean Transformation." CEO Jan Kjersg?rd added, "Through technological cooperation between the two companies, we will build the most economical and eco-friendly hydrogen production facilities."

◆ This year’s order strategy is 'profitability' = During the subsequent Q&A session, CEO Jeong commented on this year’s shipbuilding market, saying, "The trend will remain similar to last year, which was marked by orders for eco-friendly ships fueled by LNG and methanol and increased demand for LNG carriers due to rising natural gas demand." He added, "The decline in container ship orders is expected to be offset by increased orders for tankers and others." However, the order target for this year ($15.7 billion) was set lower than last year’s ($24 billion). Regarding this, CEO Jeong explained, "We have secured orders through 2026," and "The remaining slots have been conservatively set to selectively increase profitability."

At CES this year, HD Hyundai plans to showcase eco-friendly low-carbon fuel propulsion technologies using large-scale model ships. HD Hyundai has prepared an exhibition space of 595 square meters (180 pyeong). An HD Hyundai official said, "Through CES 2023, we plan to actively seek new business opportunities for collaboration with global leading companies in various fields."