[New Year's Message] GS Heo Tae-su "Let's Enhance Change Response Capabilities and Strengthen Fundamentals"

New Year's Message Delivered to 3il Group Members

Heo Tae-soo, Chairman of GS Corporation. Photo by GS

Huh Tae-soo, Chairman of GS Group, stated in his 2025 New Year's address that "the business environment, including domestic and international economies, is expected to become more challenging," and emphasized that "all GS members must develop the capability to respond quickly to changes and strengthen their fundamentals."

On the morning of the 3rd, GS Group held a New Year's executive meeting at GS Tower in Yeoksam-dong, Gangnam-gu, Seoul, where Chairman Huh Tae-soo personally presented the new year's management policy. The presentation was disseminated to all group companies online.

Chairman Huh opened by saying, "This year will be more difficult than last year due to the global economic downturn, geopolitical risks, threats to the petrochemical industry, exchange rate fluctuations, and inflation."

He presented various indicators showing a gradual downward trend following the brief boom during the pandemic period and said, "Although low margins are expected to continue for the time being, GS Group has prepared for difficult times with a long-term perspective," adding, "We must solidify our fundamentals while boldly challenging future businesses and M&A opportunities."

Chairman Huh stated, "Our group affiliates have actively responded to changes in the business environment and enhanced their competitiveness." He mentioned that GS Caltex pursued process efficiency and new businesses such as low-carbon and biofuels despite declining refining margins, and GS Energy strengthened its competitiveness in the energy sector by securing LNG (liquefied natural gas) and hydrogen energy resources. Additionally, power generation companies like GS EPS and GS E&R have been swiftly responding to changes in the electricity market, contributing to the nation's stable power supply and actively transitioning to eco-friendly fuels.

Furthermore, GS Retail implemented customer-centric strategies using convenience stores, supermarkets, and home shopping channels in the increasingly competitive distribution market, while GS Construction focused on safety and customer experience to develop core competencies. Parnas Hotel was introduced as securing future growth engines through remodeling business sites and preparing new businesses.

In particular, Chairman Huh emphasized accelerating eco-friendly and digital transformation (DX) initiatives spreading throughout the group companies. He said, "We are creating eco-friendly and digital-centered businesses such as GS Entec's offshore wind substructure business and GS Wind Power's power generation forecasting system," and urged, "Furthermore, please expedite the concretization of new businesses based on accumulated technologies in industrial bio, EV (electric vehicle) charging, VPP (virtual power plant), circular economy, renewable and new energy, and CCUS (carbon capture, utilization, and storage) sectors."

He assessed that digital transformation (DX) and open innovation are creating positive changes on the ground. Chairman Huh said, "In the new year, I hope that digital ideas discovered on-site will seek new business opportunities, and that multiple affiliates will come together to create innovative projects that generate strong synergies."

Finally, Chairman Huh said, "Although crises and difficulties lie ahead, these are also good investment opportunities," and added, "If we build capabilities for growth in existing businesses and boldly challenge opportunities amid change, we will be able to welcome the upcoming boom with joy."

He continued, "As 2025 marks the 20th anniversary of GS Group's founding, it is a time to once again awaken GS's entrepreneurial spirit of reading the times, finding opportunities, and taking on challenges."