Hanwha's Push
for Change
and Innovation

Group Chairman Kim renews his call for awareness toward a sense of crisis

Hanwha Business Group Chairman Kim Seung-youn recalled that despite his repeated, desperate call for management innovation through spiritual reform 10 years ago, the conglomerate had no desire to change itself and did not feel a sense of crisis, but the business group, worrying about its existence and safety, had to pay the price ― enduring the hardship, caused by the effects of the 1996-97 Asian financial crisis, and disposing of its subsidiaries.
Hanwha Group Chairman Kim reminded the bitter experience his conglomerate sustained to push for change and innovation while delivering a speech marking the 54th anniversary of establishment of the group before his executives and staff members on Oct. 9. "people are scared about the changes. Even people are inclined to evade changes, we never forget history's stern judgment that the rise and fall of a corporation depends on only change and innovation,"Chairman Kim noted. He called on his executives and staff members to execute their respective assignments in a more passionate and active fashion, saying that they should be reminded that it would be not easy to go ahead of others a step forward and they could lag behind others five steps or 10 steps at any moment.
Chairman Kim urged his executives and staff members to reflect on whether they rested on their laurels, entirely focusing on personal things and taking the mould, saying that two years ago, he told each company to establish a mid- and long-term vision and explore new growth engines, and warned against marginal companies which could not survive competition.
"Our foremost enemy is not our rival company, but our inside's inertia ― being complacent. We have to take pains and act nimbly to proceed one step ahead the others, and now is the time to build up a futuristic foundation for becoming a top-class Hanwha,"The exhorted.
With a sense of crisis in mind, Chairman Kim enumerated three tasks ― securing and fostering top-notch manpower; ensuring global management and creating synergetic energy among subsidiaries; and exploring world-class growth engines that serve as a force behind their respective future.
Chairman Kim renewed his call for securing and fostering top-notch manpower during the anniversary event. Earlier, the chairman repeatedly emphasized that he attaches priority on excellent human resources development and he urged them to put into practice what he called "hybrid management"during his New Year message.
In this context, Chairman Kim stressed that talents who are the futuristic assets of the business group should be recruited regardless of abroad or in Korea, and if any, capable persons should be given a better treatment than the CEO.
He expressed high expectations on the development of world-class manpower, citing the business group's soon-to-be launched project to build a training institute, which is expected to serve as a propellant to realize Hanwha's grand dream by maximizing synergetic energies of talents haling from outside and inside.
Kim asked his executives and staff members to promote cooperation and create synergetic effects among subsidiaries in the overseas market while pledging their determination to transform Hanwha into a global corporation.
"In age of globalization, we have to learn an instinct for survival from migratory birds who cross a continent to search for feed rather than those who try to stick to their own turf,"he noted.
The chairman called on Korea Life Insurance to make management a more active and aggressive one, saying that the outcome of KLI's entry into the Chinese market three years ago has yet to be seen and the company should not rest on its current position ― ranking second in comparison of rival companies.
Chairman Kim said his group should reexamine into the existing business portfolio for the purpose of futuristic survival, saying that "other companies are striving to develop growth engines of future generations in spite of risks.
He said his business group plans to soon unveil its new corporate identity (CI) in a historic bid to usher in a new futuristic vision and serve as the watersheds of developing Hawha into a global corporation.
In 1952, Hanwha Group Chairman Kim's deceased father, Kim Jong-hee founded Korea Explosives. At time of the establishment, Korea Explosives posted 50 million hwan (predecessor of won) in sales with assets worth 200,000 hwan, but it has grown into a conglomerate with 30 subsidiaries and assets worth 46.9 trillion won that chalked up 20.5 trillion won in combined sales last year.
Hanwha Group has entered the "Era of Second Founding"since 1981 when Chairman Kim took the helm of the group. Under the leadership of Chairman Kim, the group has strengthened its presence in such sectors as financing, electronics, distribution, leisure and social welfare, mostly in service industries. nw

Hanwha Business Group Chairman Kim Seung-youn