STX Group’s Dalian shipyard in China

By Kim Tae-gyu
Staff Reporter

In a country where giant business conglomerates dubbed chaebol dominate the economy, it is hard for new entrepreneurs to take a firm root in a rivalry with the established players.

Observers point out that there were only two groups, which have successfully emerged as notable newcomers to the chaebol system during the first decade of the new millennium ― STX Group and Mirae Asset Group.

Since its inception midway through 2001, the former has chalked up strong growth to become one of best shipyards in the world ― STX racked up about $20 billion in revenue last year.

But STX is not content with its success over the past decade and it aims to crank up its revenue five-fold to $100 billion by 2020 under the stewardship of its founder and Chairman Kang Duk-soo.

``In order to survive the ups and downs of the business cycle, we need to set up an integrated system across our subsidiaries,'' Kang said on May 1 on the ninth anniversary of the group.

``In addition to further strengthening our existing main operations including shipbuilding and shipping, we are required to rack up new revenue streams from fresh businesses such as construction, plants and energy.''

STX has already sought organic growth in the construction and energy businesses with a host of outstanding achievements across the world. For example, it has won a $10 billion order from the Ghanaian government to build 200,000 homes in the country as well as sealing a deal to build steel making and power generation facilities in Iraq.

The efforts to diversify its business portfolio are boosted by the mindset of Kang, who has reiterated the significance of change and innovation in the rapidly globalizing era.

``Since the 21st century is fast becoming an age of borderless and unlimited competition thanks to the rapid acceleration of digital informatization, constant innovation and change are needed to just keep up with this new global standard,'' he said on the company Web site (www.stx.co.kr).

``Under this rapidly changing global management environment, STX will respond with rapid judgments. In addition, STX will overcome crisis, create opportunities and carve out a future with its innovative creativity and ceaselessly challenging spirit.''