By Kim Yon-se
Staff Reporter
Hanwha Group has reached a critical juncture in its effort to become a global corporate brand as Chairman Kim Seung-youn's alleged engagement in assault taints its image and harms its innovation projects.
As police are seeking an arrest warrant for Kim in connection with the abduction and beating of bar workers in an apparent revenge attack for an assault on his second son, some analysts predict that the group may face a management crisis.
Hanwha, which stayed behind Samsung, Hyundai and LG despite its long history since its inception in 1952 as the Korea Explosives Corporation, has been preparing for a new takeoff by launching a new corporate identity (CI) early this year.
The change was based on Chairman Kim's wish to transform the group into one seeking innovation, shying away from its conventional business stance of stabilization.
Since the turn of this year, the group has been aiming to realize a balance in its business cycles by developing futuristic businesses including telecommunications as well as its current flagships in chemicals, distribution, leisure and finance.
However, it is feared that the alleged assault scandal could hamper the group's plans due to the frequent absence of the chairman.
Some watchers say a contingent management system at Hanwha has already started, pointing out emergency meetings among Hanwha executives on Sunday.
More than anything else, the group's plan to give top priority to acquiring foreign companies will likely be delayed or suspended. Chairman Kim has stressed that Hanwha will increase the ratio of its overseas businesses from the current 10 percent to 40 percent by 2012.
Hanwha, which operates Korea Life Insurance, will also likely face hurdles in its project to advance into overseas insurance markets such as China and Vietnam.
Kim is under a police investigation on charges of ordering his bodyguards on March 8 to beat up the employees of a bar in downtown Seoul who allegedly got involved in a fistfight with his 22-year-old son at another bar in southern Seoul.