Gold Medal for a Job Well Done

CEO Chong given credit for Honam Petrochemical’s explosive growth as 2nd largest producer of ethylene in Asia

President Chong Bum-shick of Honam Petrochemical Co. was recognized for his large contribution to the growth of the Korean economy by winning the Industrial Merit Gold Medal at the ceremony for the 47th Trade Day at COEX in southern Seoul on Nov. 30.
His career with Honam Petrochemical, a key affiliate of Lotte Group, began in 1971 when he joined the company fresh out of Seoul National University. Korea’s petrochemical industry was in its nascent stage, but has since grown to fifth largest in the world with Honam Petrochemical at the forefront of the industry’s mighty surge over the past four decades. The CEO has been given credit for strengthening the company’s technologies and cutting costs, turning the company into a powerhouse export firm, and at the same time developing the petrochemical industry into a key national industry in the process.
He led the company to export its products to 106 countries around the world through diversified export strategies including localization, especially in China. Its sales this year is up 76 percent YoY, shipping more than 65 percent of its products overseas. He has also published a number of books and papers on his experiences in the petrochemical industry as a member of the National Academy of Engineering of Korea, making a huge contribution to Korea’s continuing lead over Japan in the petrochemical industry.
As chairman of the Korea RC (responsible care) Association, Chong helped to lead the association to expand its activities on environment, safety and health care, centered around chemical companies to make the petrochemical industry a high-tech industry.
He also played a significant role in making Honam Petrochemical the second largest producer of ethylene in Asia through continuous investments in plant facilities in order to secure economy of scale and cost competitiveness and in turning the company around from an importer of technology to an exporter of technology by sending its technicians to provide technology consultations to foreign petrochemical plants.
With a segregated strategy to operate its own logistics channels to secure its competitiveness and create stable increases in sales when its own production base is secured, the company set up a local subsidiary in China in order to trade in yuan in 2006. The move increased the company’s sales in China to 139.3 billion won in 2009, up 187 percent from 48.6 billion won in 2007.
This year, Chong was listed on the 100 Best CEOs List in Korea and won the Korea Management Grand Award in the area of leadership in manpower training. He won the respect of the petrochemical industry as one of the foremost experts and a living testament to the industry’s development in Korea.
The Dow Jones Sustainability Index chose Honam Petrochemical as the most excellent corporation in the petrochemical industry in Korea that “can continue to survive a century,” along with the company’s all-around good results in the areas of economy, environment and social responsibility.
Chong has also been lauded for his role in the settlement of ‘sharing culture’ in the company by creating the Hobong Public Service Team to promote the company’s social service program. The team has been providing support to the Children’s Foundation, the Welfare Foundation for the Blind and donating daily necessities to senior citizens living alone, support for multi-cultural families, groceries for children living in isolated areas in Southeast Asia and Africa, the setting up of schools in those areas, providing a matching grant, and carless day for the company’s officers and staff in connection with the “Green Campaign.”
He was given credit for creating an atmosphere free from labor strife in wage negotiations for three years in a row. The Ministry of Labor and Employment selected the company for its outstanding results in launching the mutual survival culture between management and the union and for its strong ethical management driven by the CEO himself to be upheld as a model in the industry. nw

President Lee Myung-bak gives the Industrial Merit Gold Medal to President Chong Bum-shick of Honam Petrochemical Co. at the 47th Trade Day held at Coex in Seoul on Nov. 30.