GS Chairman Huh Tae Soo: "Physical AI Will Be a Key Turning Point... Technology Must Be at the Core of Strategy"

Second-Half Executive Meeting Held on the 16th with Over 150 Attendees
"If You Are Insensitive to Technological Change, You Are Not Qualified to Be an Executive"
Instructions on M&A and Venture Investment... "A Growth Foundation Must Be Established"

"If you are insensitive to technological change, you are not qualified to be an executive. Now, as we are in the midst of massive change, I urge you to put technology at the center of your strategy and rigorously seek practical ways to transform our business."

Huh Tae Soo, chairman of GS Group, once again emphasized to executives of major affiliates that technology must be placed at the core of business strategy. He specifically predicted that physical artificial intelligence (AI) would become a crucial turning point, and stressed the need to seek out business opportunities created by related technologies.

Huh Tae Soo, chairman of GS Group, held a second-half executive meeting on the 16th at the GS Caltex Talent Development Center in Gapyeong, Gyeonggi Province, with 150 presidents and executives from major group affiliates in attendance. GS Group.

On the 16th, Chairman Huh held a second-half executive meeting at the GS Caltex Talent Development Center in Gapyeong, Gyeonggi Province, with 150 presidents and executives from major group affiliates in attendance, where he made these remarks. The meeting was organized to review each affiliate's business performance in the first half of the year and to discuss, at the group level, strategic directions to respond to the global management environment, including: the rapid growth of Chinese companies; changes in the energy industry and demographic and social structures; and shifts in technological paradigms. As GS's core business sectors?such as refining and chemicals, energy, distribution, and construction?are experiencing sluggish performance, the executives reached a consensus that a breakthrough must be found through technology investment and an execution-oriented approach.

Chairman Huh emphasized business transformation centered on AI. He stated, "The knowledge and data accumulated at every business site are our most powerful assets," and added, "We must combine these assets with AI and strengthen collaboration among affiliates to develop them into new businesses." He further predicted that physical AI, which is used for physical process innovation such as process optimization and robotics integration beyond generative AI, would provide a turning point. He said, "Physical AI can solve the challenges faced by our industry," and highlighted, "Quantum computing has proven its potential as a technology that will transform the industry in the near future."

During the meeting, affiliates also shared cases where they developed digital services using AI technology. Chairman Huh said, "We are accelerating AI adoption by developing our own AX (AI Transformation) platform, MISO," and urged, "Executives must support employees so that they can try out a variety of actions."

He also gave instructions regarding mergers and acquisitions (M&A) and venture investments. Chairman Huh said, "While we have been steadily reviewing various M&A opportunities at the group level, a more strategic and execution-focused approach is now needed," and added, "Pursue meaningful deals for future growth and strengthen strategic connections with the venture ecosystem to establish a new growth foundation for GS." GS Group plans to continue investing in technology and collaborating among affiliates in the second half of the year, responding flexibly to rapidly changing market dynamics.