[Exclusive] Hyosung Establishes "Future Strategy Office"... Cho Hyunjoon Launches AI-Centered Restructuring

Seeking New Businesses... Kim Cheolho, CEO of Hyosung Ventures, Takes the Lead
Narrowing the Growth Gap Between 'Struggling' Chemical and 'Booming' Heavy Industries
Chairman Cho Hyunjoon: "We Must Pursue Growth by Integrating AI Technology"

It has been confirmed that Hyosung has established a new "Future Strategy Office" dedicated to overseeing the group's mid- to long-term strategies. This move is being interpreted as a signal that Chairman Cho Hyunjoon's vision for the future, including the discovery of new businesses based on artificial intelligence (AI), is entering a full-fledged phase.

According to the business community on July 1, Hyosung recently set up the "Future Strategy Office," which will be responsible for overseeing new business initiatives and strategic investments at the group level, and appointed Kim Cheolho, CEO of Hyosung Ventures, as the head of the office. Lim Hyoseong, Executive Director of Hyosung Corporation's Strategy Division, will be in charge of operations.

Kim is regarded as an expert in both investment and strategy. He previously served as a director at Deutsche Bank, deputy head of PE at STIC Investments, and CEO of Iljin Investment Partners, before joining Hyosung's Strategy Division in 2022. In the same year, he was appointed as the inaugural CEO of Hyosung Ventures. With the establishment of this new organization, Kim will now be responsible for integratively designing company-wide strategic planning and implementing investments that connect with external ecosystems.

The creation of the Future Strategy Office is seen as a strategic move to restructure the group’s business portfolio and systematically prepare for future growth engines. Within Hyosung, the performance gap among affiliates has widened significantly in recent years, increasing the need for group-level strategic overhaul. As the risk of revenue concentration has grown, there is a growing sense of crisis that a fundamental restructuring is required.

The performance gap among affiliates is considerable. Hyosung Chemical, the group's flagship affiliate, has been focused on petrochemical-based basic materials, but has recorded losses for three consecutive years due to an industry downturn. Last year, the company posted an operating loss of 170.5 billion won. The company is pursuing a structural shift centered on high value-added new materials, such as the development of triacetyl cellulose (TAC) film with a higher proportion of biomass and plastic recycling, but commercialization will take time.

In contrast, another affiliate, Hyosung Heavy Industries, is emerging as the group's "future performance pillar." In the first quarter of this year, its operating profit reached 102.4 billion won, up 82.2% from the same period last year, setting a record high for a first quarter. Last year, the company also achieved record results, with sales of 4.895 trillion won and operating profit of 362.5 billion won. The main driver was the expansion of exports of ultra-high voltage power equipment. Orders surged in global markets, including the United States, Europe, the Middle East, and Oceania, leading to a sharp rise in performance.

At 'Elex Korea 2025' held on February 12 in COEX, Gangnam-gu, Seoul, Hyosung's Phase Shifting Transformer (PST) was exhibited. Photo by Kang Jinhyung

Chairman Cho's decision to directly participate in management as an inside director of Hyosung Heavy Industries, as well as his announcement of an AI-centered strategy, is seen as part of the same trend as the establishment of the Future Strategy Office. Chairman Cho has emphasized, "Hyosung Heavy Industries is a core company in the AI industry," and "A robust power infrastructure is essential for the AI era to blossom." Last year, Hyosung Heavy Industries independently developed "ARMOUR," an asset management solution that uses AI technology to analyze and predict the condition of power equipment in real time, and this year, it is leading the development of related technologies by integrating an augmented reality (AR)-based power equipment inspection system.

Based on his expertise in leading Hyosung Ventures' investment portfolio, CEO Kim plans to discover new businesses through the Future Strategy Office. Hyosung Ventures is focusing its investments on AI, technology, new materials, and energy. Notable investment cases include: Ditonic, a company specializing in spatiotemporal big data analysis; Changupin, a QR-based order and payment solution; PersonaAI, an AI consultation robot solution; ANPoly, a developer of nanocellulose new materials; and BatteryWhy, a battery monitoring solution provider.

Industry insiders expect that the Future Strategy Office will integratively design Hyosung Chemical's eco-friendly new material transition strategy, Hyosung Heavy Industries' AI-based energy business expansion, and the potential internalization of the venture investment portfolio within the group. This is seen as an attempt to establish a system within Hyosung that links investment, review, internalization, and affiliate-wide adoption, and there is speculation that the holding company's strategic organization could function as a concrete execution entity rather than simply a planning body.