Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Kim Dong-kwan solidifies control through Hanwha Solution
Hanwha Solution's U.S. solar power station in Pecos County, Texas, where the company supplied 680,000 solar modules. / Courtesy of Hanwha Solution
By Kim Hyun-bin
By Kim Hyun-bin
Kim Dong-kwan, the eldest son of Hanwha Group Chairman Kim Seung-youn, has been making a name for himself and consolidating his power over the conglomerate through Hanwha Solution.
Even during the worst global pandemic in a century, the young heir has been steadfastly contributing to enhancing the company's global competitiveness in the solar energy market. Leaders especially are put to the test during times of uncertainties and hardships, but Kim has proven his leadership capabilities and insights through investing early in the solar power industry. Kim, 37, currently serves as the president of Hanwha Solution which has become a major pillar for Hanwha Group in recent years.
According to financial circles, the consensus prediction of Hanwha Solution's total sales and operating profit are expected to record 2.23 trillion won and 192.7 billion won respectively, which are a 14 percent hike in sales and 50 percent increase in operating profit compared to the previous quarter. When comparing with the same period last year, sales jumped 8.5 percent and operating profit increased 26.3 percent.
Some industry watchers believe Hanwha Solution will announce surprise earnings that exceed the financial circles' estimations, due to better-than-expected earnings from the company's chemical sector including low-density polyethylene (LDPE) and polyvinyl chloride (PVC).
LG Chem also announced record-breaking quarterly earnings in the third quarter due to better-than-expected sales in the chemical sector, recording 902.1 billion won operating profit.
The COVID-19 pandemic has strained the solar panel business but it has been showing continuous recovery coming into the third quarter, which also raises expectations for a surprise earnings report.
Even during the pandemic, Hanwha Solution has been steadfast in increasing its profitability margin compared to the previous year. In the first quarter this year it recorded an operating profit of 167.1 billion won, followed by 128.5 billion won for the second quarter. In the first quarter, the solar panel business led the positive earnings, but in the wake of the spread of the deadly virus the chemical section of the company has taken charge of creating profitability. Many experts say the two sections of the firm have worked well to maintain their positive earnings through difficult times.
Solar power has grown into a main pillar of Hanwha Group as a future growth engine along with the chemical and defense businesses. The rapid growth of Hanwha's solar power business has been backed by global awareness and policies aimed to strengthen eco-friendly aspects which are expected to fuel substantial growth for the solar industry in the near future.
Hanwha's solar power value chain which includes cells and modules has been ranked No. 1 in the world in accumulated sales. The industry predicts the global solar power market to surge 51 percent in the U.S. and 23 percent in the European Union in 2021 and hopes are high Hanwha could take a big chunk of the global market share.
The company has targeted the U.S. market where its products obtain added value. According to energy research and consulting firm Wood Mackenzie, Hanwha Solution has taken over 22 percent of the U.S. household solar module market maintaining the top spot for eight consecutive quarters.
It also took first place by obtaining 21.5 percent in the U.S. commercial business solar module market.
Not only in the U.S., it also ranks first in Japan and in key European nations including Germany and England.
Recently, in Spain, Hanwha Solution has started to develop, operate and maintain solar generators, completing a downstream product life cycle where the company handles all procedures to supply customers with energy.
The company plans to expand its total energy solution business further in Europe as well as the North America market.
Eco-friendly corporation
On Oct. 12, Hanwha Group Chairman Kim Seung-youn expressed his will to develop Hanwha into a global leader to establish an eco-friendly market.
“As the global leader in establishing an eco-friendly market economy we are obliged to take part in the Korean New Deal,” he said. The chairman's comments could be interpreted as throwing support behind his eldest son Kim Dong-kwan's vision for Hanwha Solution.
Many employees of Hanwha Solution have expressed willingness to create a new corporate culture within the company inspired by Kim Dong-kwan's soothing communication approach.
Kim Dong-kwan, president of Hanwha Solution
He often has lunch with regular employees and often asks “If you have an questions don't hesitate to ask” portraying his horizontal leadership capabilities, which can be seen as being transparent as possible with his employees regarding company matters while aiming to maximize information sharing and opinion gathering within the firm.
“Kim Dong-kwan is known to be easygoing, reasonable and quite frank when encountering his employees,” an industry official said. “He has always been interested in renewable energy sector for a long time and has been working hard to establish a sustainable energy eco-system.”
Since the launch of Hanwha Solution earlier this year which integrated Hanwha Q Cell, Hanwha Chemical, there have been only small scale personnel reshuffles, switching around a handful of key personnel to better fit Kim's corporate restructuring.
With the recent promotion to president, industry watchers say there could be a small structural reform that could take place within this year.
In late September, Kim was promoted to president of Hanwha Solutions less than a year after he was appointed as vice president. He graduated from Harvard University and joined the conglomerate in January 2010.
Kim is highly recognized for his leading role in the merger of Hanwha Q Cells and Hanwha SolarOne which helped solidify the conglomerates solar power business.