Different strokes for same issue
By Kim Tae-gyu
Leaders of the country’s top conglomerates are on the same page in expecting great uncertainties and difficulties this year because of looming woes resulting from a protracted global economic downturn.
Yet, they have seemingly come up with totally different mindsets in grappling with the threats. Samsung and LG are stressing more aggressive approaches to new areas while Hyundai Motor and Lotte are aiming to nurture the competitiveness of traditional businesses.
In a New Year speech, Samsung Group Chairman Lee Kun-hee called for an innovative corporate culture empowered by openness and flexibility so that its employees are not afraid of failure.
``Samsung Group’s future depends on new businesses, new products and new technologies. Hence, we need to change our culture for greater openness, flexibility and innovation,’’ he said.
``Just keep challenging on the belief that failure is a prerogative given only to Samsung workers.’’
The country’s largest chaebol plans to invest up to 50 trillion won this year, the biggest annual expenditure earmarked for any business groups in Korea’s history.
LG Group Chairman Koo Bon-moo also put top priority on proactive initiatives in pursuing new business opportunities.
``We have to spend sufficiently on necessary business segments. When moving into new areas, we also have to aggressively invest with the aim of controlling the market,’’ Koo said.
``In order to create unique values, we are required to show specific changes. As we did for 3D TV and next-generation mobile telephony last year, we need to move a step faster than our rivals.’’
Hyundai Motor Group Chairman Chung Mong-koo homed in on a somewhat conservative policy as global automotive sales are expected to be negatively affected by economic jitters.
``The international automotive market is predicted to face weak growth in the midst of stiffened competition,’’ Chung said. ``In this climate, we are obliged to channel resources into enriching our internal capacity to firm up a platform to eventually become a top global company.’’
With such a mindset, Hyundai Motor Group decided to funnel approximately 80 percent of its investment inside Korea this year instead of briskly expanding its facilities overseas.
Lotte Group founder Shin Kyuk-ho pinpointed managerial efficiency as the primary task of the conglomerate for this year.
``First of all, we need to improve our managerial efficiency under uncertain circumstances so that we can beef up our business capacity,’’ the 89-year-old chairman said.
``Should we cope with the current period based on our strong core competency, fresh business opportunities will be waiting for us. When we can rack up growth in our cornerstone businesses, we will be able to expand into nearby markets.’’
SK Group Chairman Chey Tae-won did not deliver a New Year address for the Year of the Black Dragon as the tycoon continues to be investigated by prosecutors over his alleged involvement in embezzlement.
New Year addresses are significant among Korean corporations since they typically include short-term guidelines and the mindsets of chief executives.
That is particularly true of conglomerates here, controlled by almighty tycoons.
Yet, the business guidance of SK can be seen from the group’s 2012 word of the year ― an ox that cultivates rough terrain.
``The word of the year implies SK Group’s resolution to explore new chances in the face of difficulties. As the group is set to take over Hynix Semiconductor, it will have grand ideas despite the problems affecting its boss,’’ a Seoul analyst said.
SK Telecom, the flagship affiliate of SK Group, plans to complete the acquisition of Hynix, the world’s runner-up memory chipmaker, during the first quarter of this year.
The country’s primary mobile carrier hopes to nurture the operator as its future cash cow at a time when the domestic telephony service market is reaching saturation.