[MZ Successor] ① Kim Dong-gwan Completes 'Tae·Bang·Woo' After 13 Years at Hanwha

Chairman Kim Seung-hyun Leads Group Management
At the Forefront of New Solar, Defense, and Space Businesses
Proves Management Capability with Hanwha Solutions' Record-Breaking Performance
Faces Test with Daewoo Shipbuilding & Marine Engineering Stabilization

Editor's NoteAlthough the new year has begun, the business environment faced by companies remains challenging. The arrival of the '3 highs and 1 low' complex crisis?high inflation, high exchange rates, high interest rates, and low growth?has led to intense efforts to devise solutions to overcome these difficulties. The best place to closely observe corporate movements aiming to turn crises into opportunities is in management leadership. It is no exaggeration to say that the rise and fall of groups depend on the choices made by the MZ generation third and fourth-generation successors in the business world who have stepped up to the forefront of management to inherit family businesses. We take an early look at the activities of those leading corporate changes by devising new businesses, pioneering markets, or improving company management systems in line with changing times.

[Asia Economy Reporter Jeong Dong-hoon] Kim Dong-gwan, Vice Chairman of Hanwha Solutions, is the youngest in the business world. Born in 1983, he is 23 years younger than the eldest brothers such as Chey Tae-won, Chairman of SK Group (born 1960), and Lee Jae-hyun, Chairman of CJ Group. However, he is said to stand out in presence as he effectively performs the role of Hanwha Group's head in place of Chairman Kim Seung-yeon.

True to his status as a representative of the MZ generation in the business world, Vice Chairman Kim has moved most agilely during the global industrial upheaval. The portfolio of future growth engines prepared by Hanwha?solar power, defense, aerospace?are businesses that Kim has led since joining Hanwha. These businesses were either nonexistent or small-scale just ten years ago but have now become the group's main pillars.

Vice Chairman Kim's 'foresight' was forged through painstaking efforts to secure the future. He is a regular attendee of the World Economic Forum (Davos Forum), having not missed a single attendance in 13 years since joining the company. He is preparing for his 14th attendance this year. President Yoon Seok-yeol, who highly values his 'economic and private diplomacy' capabilities, dispatched Kim as a corporate representative in a 'special envoy delegation' to the Davos Forum held in May last year.

◆ 'MZ Model Son' Kim Dong-gwan Steps Up to Lead Instead of His Father = Kim, who turns 40 this year, graduated from St. Paul’s School in the United States and Harvard University with a degree in Political Science. He is a member of the 'Cum Laude Society,' which selects outstanding American middle and high school students, and served as president of the Korean Student Association during his time at Harvard. After graduating, he completed his military service as an Air Force interpreter officer and joined Hanwha in 2010. Kim is known as a 'model son' in the business world.

Effectively acting as the group’s head, Kim was appointed an inside director of Hanwha Aerospace in March last year and was promoted from president to vice chairman of Hanwha Solutions in August. In addition to serving as CEO of Hanwha Solutions’ Strategy Division, he also holds CEO positions for the Strategy Divisions of Hanwha Corporation and Hanwha Aerospace, overseeing the group’s future strategies.

Kim’s role has become even more critical as Hanwha Group consolidates its defense industry. Hanwha Aerospace completed its merger with defense subsidiary Hanwha Defense, and it is reported that the group will finalize its defense business restructuring by acquiring and merging the defense division of Hanwha Corporation in March this year.

He also appears as a representative of Hanwha Group at major events. He recently attended a meeting with Saudi Crown Prince Bin Salman and domestic business leaders during the prince’s visit to Korea. In May last year, Kim sat alongside the heads of the five largest business groups at the Korea-US Business Roundtable and the welcoming dinner for US President Joe Biden, representing Chairman Kim. This highlights Kim’s position as the group’s next leader.

In May 2011, Hanwha Group Chairman Kim Seung-yeon (second from left) and Kim Dong-kwan, Executive Director of Hanwha Q CELLS (third from left, then Deputy General Manager of Hanwha Group), are pressing the touch button on the stage to declare the core values.

◆ Management Performance Demonstrated... Will It Continue in Shipbuilding? = Hanwha Solutions, led by Vice Chairman Kim, recorded its highest-ever quarterly operating profit of 348.4 billion KRW and sales of 3.3657 trillion KRW in the third quarter of last year, driven by strong solar module sales since the integrated corporation’s launch in January 2020. Sales increased by 30.4% and operating profit by 95.3% compared to the same period last year. Notably, operating profit set a record for two consecutive quarters following 277.7 billion KRW in the second quarter of last year.

So far, Kim’s 'management performance' is considered satisfactory. His role was significant in quickly capturing the US and European markets through Q CELLS, Hanwha Solutions’ solar business subsidiary. The strategy of early recognition of potential in these regions and focusing business capabilities?such as securing production facilities in the US and actively promoting eco-friendly energy businesses in Europe?proved effective.

Kim must prove his management skills again by turning Daewoo Shipbuilding & Marine Engineering (DSME) profitable after its acquisition. DSME posted an operating loss of approximately 1.75 trillion KRW in 2021 alone and recorded a deficit of about 1.23 trillion KRW through the third quarter of last year. Hanwha Group expects that DSME’s special vessels sector, including submarines and icebreakers, centered on Hanwha Aerospace’s defense division, will become a new driving force.