59th Hyundai E&C Redefines Globalization Under New CEO
By Jane Han
Staff Reporter
When Hyundai Engineering & Construction CEO Kim Joong-kyum took office early this year, the construction market both at home and abroad was not in good shape.
The financial crisis slowed down many large-scale projects overseas, while the domestic market continued to be bogged down by a record-high number of unsold homes. Orders were shrinking with competition at its highest.
All of this meant that the pressure was on for Kim, who was responsible for steering Hyundai E&C through one of the worst economic slumps in history.
Seven months into serving as the top chief, however, Kim has put most of the uncertainties and concerns behind by posting solid records right through the downturn.
Locally, the builder started ramping up efforts to win orders for housing redevelopment projects throughout the metropolitan area and mega public undertakings scattered nationwide.
Overseas, Hyundai E&C won a $1.3-billion gas exploration contract in Saudi Arabia in March. Then, in June and July, it won orders worth $600 million and $1.7 billion, respectively, in Singapore and the United Arab Emirates. Most recently, the company added a $190-million order to build a fertilizer plant in Qatar earlier this month.
The figures added up to hand over Hyundai E&C the market's No. 1 position again last month after six years struggling to reclaim the top spot.
And many credit Kim for helping one of the nation's oldest builders renew its industry supremacy.
The veteran Hyundai executive's willingness to seek transformation and differentiation is what moved the 62-year-old company forward.
Since the first day of taking office, Hyundai E&C officials say that Kim was all about overhauling decades-old systems and practices. Everything from personnel line-up and global management to internal and external communication, the new CEO wanted changed and improved.
Kim said during his inaugural speech: ``Hyundai E&C has endured a countless number of hardships throughout its history, but it continued to maintain its market leadership. At this time, what we need is continuous transformation in order to become a global top leader.''
From the beginning, the chief executive was pinning hopes on excelling in the global market.
And he wasn't afraid to explore the markets himself, as the 60-year-old has constantly been on the go to meet with clients on-site.
Company officials say that Kim doesn't go a month without traveling abroad to visit construction sites. Most recently, he was in Libya in September to meet with key government officials in charge of ongoing projects.
Thanks to these efforts to improve sales overseas, analysts say that Hyundai E&C's performance will gain further momentum in the fourth quarter of this year. In the first half of the year, the company recorded sales of 4.64 trillion won, up almost 43 percent compared to the same period last year.
Experts say the driving factor behind Hyundai E&C is not simply the company's sales efforts, but the dynamic management that can lead to more sustainability.
Unlike Hyundai's widely known hardcore corporate culture, the construction unit is said to have a softer edge. The turning point was Kim.
Since taking the top job, he has been meeting with employees through casual lunches, breakfast events and cultural activities to establish a more personal relationship, according to company officials.
Kim's philosophy, they say, is that personnel are what make or break a business.
To ensure that every employee's talent is maximized, the CEO carried out an aggressive personnel reshuffle.
He lined up professionals with specific specialties in the company's energy and eco-friendly businesses.
Plus, the company's communication system was revamped from the bottom up to facilitate more efficient interaction among various divisions, both locally and globally.
Besides working on improving the already established systems, Kim also focused on exploring fresh areas: the company's new growth engines.
Realizing that traditional construction work won't be enough in the long run, Kim launched a team specifically assigned to explore new strategic businesses. Most of them are centered on the theme of environmental-friendliness.
Expanding the role of a builder is another strategy that Hyundai E&C is eyeing.
Kim indicated that the company should no longer simply build, but handle everything from design, engineering, purchasing, financing and building to become an ``industrial developer.''