Business Leaders Prioritize Survival Over Growth... Key Management Theme for the Year of Eulsa

Major Conglomerate Leaders Emphasize
"Overcoming Crisis" as This Year's Top Priority

The heads and chief executive officers (CEOs) of major conglomerates in South Korea have identified "overcoming crisis" as the key management theme for the Year of Eulsa. They emphasized that, given the heightened economic uncertainties-such as policy changes stemming from the U.S. administration change and increased volatility in exchange rates, which have led to unstable export conditions-overcoming these challenges is the survival strategy for this year.

According to the business community on January 2, Lotte Group Chairman Shin Dongbin, in his New Year's address to group employees, stated, "This year, we anticipate the economic situation to be more challenging than ever due to rising uncertainties and the prolonged stagnation of the domestic market," urging intensive reforms. Given the liquidity crisis rumors that surfaced last year, Chairman Shin specifically called for the strengthening of financial soundness through the establishment of proactive financial strategies.

From the left, Jin-Hwa Jang, Chairman of POSCO Group; Dongbin Shin, Chairman of Lotte Group; Seungyeon Kim, Chairman of Hanwha Group; Kyungshik Sohn, Chairman of CJ Group. Provided by each company

Hanwha Group Chairman Kim Seungyeon said, "We are facing more unpredictable challenges and difficulties than ever before," emphasizing, "The greatest warning sign of crisis is the attitude of ignoring and remaining silent about the tasks at hand." Chairman Kim stressed the need to avoid complacency with past familiarity, to maintain a sense of crisis and urgency, and to develop Hanwha's unique capabilities that will remain unshaken under any circumstances.

POSCO Group Chairman Jang Inhwa stated in his New Year's address, "Due to the contraction in trade resulting from the power struggle among major powers and sluggish demand in domestic and international industries, we must simultaneously consider today's survival and tomorrow's growth." He added, "Let us prioritize safety above all else, prepare for the future with a long-term perspective rather than focusing solely on immediate results, and lay the foundation for sustainable growth."

CJ Group Chairman Sohn Kyungshik also emphasized, "As we expect intensified domestic and external uncertainties this year, such as sluggish domestic consumption and changes in the global trade environment, thorough preparation is necessary." He stressed the need to secure growth engines by expanding global presence and to gain market recognition by presenting a global growth vision externally.

Shinsegae Group Chairman Chung Yongjin presented the "No. 1 Customer Principle" as the management strategy. He stated, "Truly understanding the top-tier customers who constantly seek novelty is our core business, and being recognized by these No. 1 customers is our competitive edge," emphasizing the need for continuous change to meet the expectations of these top-tier customers.

Hanjin Group Chairman Cho Won-tae highlighted the goal of narrowing the gap with leading global airlines and establishing a solid competitive foundation through the integration of Korean Air and Asiana Airlines. He called for a transformative overhaul to provide customers with a wider range of choices. He said, "If we become complacent during the two years leading up to the integration, the global gap will widen rapidly," stressing, "While steadfastly upholding the values we must protect, we also need transformative changes in our organization, systems, and business practices."

In particular, Chairman Cho expressed condolences to the victims and their families regarding the recent Jeju Air accident at Muan Airport and reiterated the importance of safety. He said, "The foundation of all operations is absolute safety and customer-centric service," warning that "during times of change, safety is often the first thing to be overlooked." He further instructed, "We must foster a mindset that prioritizes a culture of safety and ensure that all areas work together organically."

Major group CEOs also called for innovation to drive new growth in their New Year's addresses. Samsung Electronics Vice Chairman Han Jonghee, Head of the Device Experience (DX) Division, and Vice Chairman Jeon Younghyun, Head of the Semiconductor (DS) Division, jointly issued a New Year's message, urging employees to "lay the groundwork for a new leap forward based on unrivaled technological leadership and to secure new growth engines." As in previous years, Samsung Electronics issued the New Year's address under the vice chairmen's names instead of Chairman Lee Jae-yong.

Vice Chairman Han Jonghee, Head of Samsung Electronics Device Experience (DX) Division, and Vice Chairman Jeon Younghyun, Head of Semiconductor (DS) Division. Provided by Samsung Electronics

Kwak Nojeong, CEO of SK Hynix, which achieved record results last year, said, "Through relentless innovation, we must address our shortcomings and enhance our inherent capabilities to become a world-class company." He emphasized, "We must focus even more on 'technological innovation,' the source of our competitiveness, and mobilize all our resources to launch innovative products with the highest quality and performance to the market in a timely manner."

Shin Hakcheol, Vice Chairman of LG Chem, reflected on last year's increase in geopolitical risks, global oversupply in petrochemicals, and the slowdown in electric vehicle growth, noting the challenging business environment and constant challenges. He declared, "We will designate this year as the 'Year of Execution' and proactively and aggressively advance our portfolio sophistication."

Jeong Cheoldong, CEO of LG Display, stated, "This year, let's demonstrate even more persistent execution and make it a year to lay the foundation for normalization of management, going beyond just a turnaround." Moon Hyuksu, CEO of LG Innotek, announced a new vision for the company's 55th anniversary, saying, "Let's become a trusted technology partner who realizes the customer's vision together." Jang Deokhyun, CEO of Samsung Electro-Mechanics, remarked, "With low growth becoming the new normal in the global economy, difficult times are expected, but let us all become passionate and energetic experts who contribute to the survival and growth of Samsung Electro-Mechanics, and create a world-class components company that is resilient to recessions through overwhelming technological prowess."

Park Sangkyu, CEO of SK Innovation, commented, "This year's business environment will also be severe and challenging," urging, "Let us unite and pool all our capabilities and resources to overcome current difficulties and continue to achieve sustainable growth." Choi Joosun, CEO of Samsung SDI, emphasized, "The more severe the management environment, the more we must return to basics and become a technology-driven company that constantly innovates and takes on challenges."

Yoo Youngsang, CEO of SK Telecom, stated in his New Year's address, "Let us strengthen our fundamentals to prepare for an era of uncertainty and move forward as a global AI company." Hong Beomsik, CEO of LG Uplus, emphasized, "Let us become a 'Growth Leading AX Company' (a company that grows together with customers through AI transformation) that puts customers as the top priority." Park Jinhyo, CEO of SK Broadband, conveyed the need to secure the company's long-term growth potential with the mindset of "if you focus your mind and do your best, there is nothing you cannot achieve," referring to the spirit of Saseokwiho.