Hanwha Group needs to stay innovative to succeed, CEO says

South Korea’s chemicals-to-defense conglomerate Hanwha Group needs to look ahead and prepare for the next century, its Chairman and CEO Kim Seung-youn said on Tuesday, as he urged its employees to stay innovative.

In a speech to mark the group’s 70th anniversary, Kim said that the No. 7 conglomerate needs to invent new formulas for success if necessary. 

Hanwha began as a gunpowder and dynamite manufacturer in 1952. The group has since grown to 93 units, ranging from defense and petrochemicals to financial services, renewable energy and aerospace engines.

The group’s second-generation CEO shared a vision of the group becoming the world's leading defense company with a comprehensive portfolio and a leading green energy developer.

His speech comes after Hanwha agreed last month to buy a controlling stake in Daewoo Shipbuilding & Marine Engineering Co. for 2 trillion won ($1.4 billion).

Hanwha Group has been conducting an operational reshuffle with a focus on defense businesses led by aircraft engine maker Hanwha Aerospace Co.

The group’s holding company, Hanwha Corp., has absorbed its wholly owned Hanwha Engineering & Construction Co. This year, Hanwha Aerospace acquired Hanwha Precision Machinery Co. to expand its materials, equipment and related infrastructure manufacturing units.

It now seeks to merge Hanwha Aerospace with Hanwha Defense to promote synergy and trim costs.

Meanwhile, speculation has been mounting that Hanwha Group may target the country’s sole aircraft maker Korea Aerospace Industries Co. (KAI), which is 26% owned by a state-run bank.

Apart from its business, Hanwha said it will continue to make social contributions, including sponsoring the Seoul International Fireworks Festival, whose 2022 event took place on Oct. 8. 

Write to Kyung-Min Kang at kkm1026@hankyung.com
Yeonhee Kim edited this article.