Diagnosis of Recent Business Environment Through Anniversary Video
Kim Seung-yeon, Chairman of Hanwha Group, diagnosed the harshness of the recent business environment on the 10th, the company's 72nd anniversary, and emphasized the "spread of successful experiences" as a countermeasure.
Chairman Kim delivered the founding anniversary speech himself through the company broadcast on the day. Although Hanwha Group's founding anniversary is October 9th, it was a holiday, so Hanwha Group affiliates held founding anniversary events such as long-term service awards at each company on this day.
In the approximately 6-minute founding anniversary speech video, Chairman Kim first conveyed messages of encouragement and requests to the executives and employees. In particular, he praised the prepared capabilities of the employees he met through on-site management conducted this year, encouraging them by saying, "All possibilities are already in your hearts."
Chairman Kim especially diagnosed the recent business environment, saying, "All companies are experiencing great difficulties in a harsh environment where a moment's hesitation leads to eternal elimination." As a way to overcome this, he emphasized the "spread of successful experiences." Regarding the defense industry, including Hanwha Aerospace and Hanwha Systems, he attributed special meaning to the achievements that illuminated Hanwha Group's belief in the defense industry and the history of past challenges.
Hanwha Aerospace achieved its best-ever performance last year, marking the first year of integration. This year, as of the second quarter, the defense sector's operating profit increased by 1,089% compared to the same period last year, reaching 260.8 billion KRW. In July, it also signed a 1.4 trillion KRW export contract for K9 self-propelled howitzers with Romania. Hanwha Systems also saw a 135% increase in operating profit in the second quarter compared to the same period last year. In July, it signed a contract to supply the MSAM multifunction radar to Saudi Arabia, continuing its growth.
Chairman Kim reiterated the crisis overcoming method as a "Great Challenger," which he mentioned in his New Year's address. He emphasized that market cycles and similar trends are not eternal, and that rather than waiting for the market to become favorable, a more proactive and leading response is necessary.
He did not hold back criticism regarding the petrochemical and energy business sectors facing difficult management environments. Chairman Kim stressed, "We must coldly reflect on whether we have been complacent with small successes and lead the market again through bone-cutting innovation." Regarding the defense sector, he emphasized, "We must devote ourselves more to market development from the beginning, including research and development and localization strategies, so that we do not remain at temporary success due to geopolitical issues." For the shipbuilding and marine sector, which continues to undergo changes and expansions such as Hanwha Ocean and Hanwha Engine, he presented the goal of becoming a "global marine business leader" and encouraged leaving greater footprints of success.
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