Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Construction rivals pick hydrogen business as new growth engine
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By Park Jae-hyuk
Korea's two largest construction firms are increasing efforts to gain a competitive edge in the hydrogen sector, viewing the cleaner fuel source as a new growth engine amid the slump in the domestic housing market and declining orders from the Middle East.
During their upcoming general meetings of shareholders next month, both Samsung C&T and Hyundai E&C will seek approval to add hydrogen-related businesses to the business purposes outlined in their articles of association.
Samsung C&T is pursuing hydrogen power generation and relevant businesses.
"We have pushed ahead with expansion in eco-friendly sectors to secure competitiveness for our future," the company said in its regulatory filing. "We have continued looking for business opportunities in [the] eco-friendly fields of hydrogen and electric vehicles."
Hyundai E&C is pursuing the engineering, procurement and construction of hydrogen plants, emphasizing the importance of hydrogen energy for carbon neutrality and the energy transition.
"We have continued making efforts to discover business opportunities for the future in the fields of small modular reactors and hydrogen," the company said in its regulatory filing.
The construction unit of Hyundai Motor Group will specifically collaborate with other affiliates of the carmaker, all of which have sought to expand their presence in the hydrogen value chain.
In January last year, Hyundai Motor Group Executive Chair Chung Euisun outlined the group's strategies for the production, storage, transportation and usage of hydrogen, while also introducing the hydrogen fuel cell system brand, HTWO.
Hyundai Motor also plans to add hydrogen-related businesses to the business purpose stated in its articles of association during the forthcoming shareholders' meeting.
"We made the decision, considering the possibility of expansion in various hydrogen-related sectors," the carmaker said in its regulatory filing.
Even before moving forward with revisions to their articles of association, Samsung C&T and Hyundai E&C participated in large domestic and international projects involving hydrogen energy, aligning with global efforts to reduce carbon emissions and the Korean government's Korea Hydrogen Economy Roadmap 2040 initiative.
Samsung C&T is building a facility in Australia to produce and supply 300 tons of green hydrogen annually to the Oceanian country. Green hydrogen refers to hydrogen produced by splitting water using renewable energy. The company is also building a green hydrogen production facility powered by solar energy in Gimcheon, North Gyeongsang Province.
Last year, Hyundai E&C began constructing Korea's largest water electrolysis-based hydrogen production facility in Buan, North Jeolla Province, with plans to complete the construction by June and produce at least 1 ton of hydrogen per day.