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.
Hanwha, Hyundai Heavy scions to compete in shipbuilding industry
By Kim Hyun-bin
By Kim Hyun-bin
Hanwha Solutions Vice Chairman Kim Dong-kwan and HD Hyundai CEO Chung Ki-sun, who are well-known for their friendship, are set to compete in the global shipbuilding market, according to industry officials, Wednesday.
So far, Hanwha has not competed in any industry with HD Hyundai, which owns Korea's largest shipbuilder Hyundai Heavy Industries and several other smaller shipyards. But Hanwha's recent acquisition of Daewoo Shipbuilding & Marine Engineering (DSME) changes all that.
If Kim focuses on shipbuilding, it is inevitable for him to face off with Chung.
Kim was born in 1983, while Chung was born in 1982, and the two scions have often been described as leading third-generation heirs set to head their respective family-run conglomerates representing their groups.
Industry officials believe that their friendship will have a positive impact on the future of the domestic shipbuilding industry. Due to the structure in which three world-class shipbuilders are concentrated in Korea, fierce competition will be inevitable in the future.
But strengthened cooperation among domestic shipbuilders is also expected in the development of future technologies, such as autonomous ships and eco-friendly vessels, which require large investments.
Hanwha Group plans to sign a main contract with Korea Development Bank (KDB), the largest shareholder of Daewoo Shipbuilding & Marine Engineering, to acquire the shipbuilder before Dec. 19.
The deadline for signing the main contract is Dec. 19, and the date can be extended according to the agreement of both parties. But since the sale is proceeding smoothly, industry officials believe the main contract will be inked within the deadline.
“If Hanwha acquires DSME, it will gain market leadership in the defense and energy sectors, on which the company is currently focusing,” an industry official said.
“Especially, with the creation of an industrial value chain that leads to energy production, transportation, storage, utilization and sales, including the hydrogen field that Hanwha has been actively investing in, it will be equipped with a long-term growth model.”
Following his promotion in August, the Hanwha vice chairman took on the role of CEO of Hanwha Corp. and Hanwha Aerospace, in addition to already being the CEO of Hanwha Solutions. He is in charge of not only the petrochemical and solar power operations, but also defense and aerospace, the group's key areas of business.