Conglomerates seek bigger profit, more sharing

By Yoon Ja-young

Conglomerates have vowed to pursue two goals in the brand-new Year of Rabbit ― more profit and greater profit-sharing.

Samsung Group will focus on sharing the fruits of its growth with suppliers and society, according to a New Year’s speech by its leader Lee Kun-hee.

“Suppliers are members of the Samsung community and the basis of our competitiveness. We should continue providing support and making efforts so that they can get stronger,” Samsung Electronics Chairman Lee said at a New Year’s meeting with group executives, Monday. Samsung Electronics, the group’s flagship, marked a record year in 2010 but Lee constantly warned against complacency.

Lee said the group would be a social companion to all neighbors in society. He said donations and volunteering will sustain society, and added that the group should contribute to make the society warmer and healthier through volunteering.

Hyundai-Kia Automotive Group Chairman Chung Mong-koo talked about record sales, while accenting his firm’s corporate social responsibility (CSR). CSR is a key phrase of the conservative Lee Myung-bak administration that is promoting a fair society campaign.

He said the group should achieve the global sales target of 6.33 million cars this year, compared to 5.75 million global sales last year.

“To achieve the sales target this year, we should set up an organic cooperation system between production facilities and sales headquarters of diverse countries, actively coping with the rapidly changing global market,” Chung said at a New Year’s meeting with group executives.

He said the group will strengthen quality management and expand R&D and investment in environmentally friendly cars, stressing communication with customers to come up with cars that they want. The group also plans to pull up blast furnace production capacity to an annual 12 million tons, and set on the building of its third blast furnace this year.

LG Group Chairman Koo Bon-moo said becoming leader of the market is a must for the group.

This year’s key objectives for the group will be customer value creation, preparation for the future and setting up a self-directed working culture.

“The year 2010 showed that resting on the current success leads to immediate dismissal from customers,” Koo said at a New Year’s meeting with group executives.

He said if the group doesn’t lead the market with the right business agenda, it would be difficult to maintain its current status let alone make new leaps forward.

He said creating customer value would help the group on its track to become the leader, stressing the expansion of R&D.

Koo added that the group should highly value experiments and challenges made to lead the market, even when such trials result in failure.

SK Group Chairman Chey Tae-won said people and culture are keywords for the new frame that should be set for the new decade.

“Innovation and growth should continue for survival amid rapid changes and uncertainties in the market, and people execute them and culture makes them possible.

He asked the group employees to lead the task so that the group could make a leap forward as a global enterprise within a decade.

POSCO Chairman Chung Joon-yang said it would focus on enhancing knowledge productivity this year. “Knowledge workers will lead the new era,” he said in his New Year’s speech, saying that they it would support its workers to be equipped with competitiveness in the global arena.

He added that the group would expand ethical management, actively seeking to share growth with suppliers and contributing to the society with low carbon green growth.

Hyundai Heavy Industries President & CEO Lee Jai-seong said it should be equipped with strong will and drive to maintain growth momentum this year.

“The challenges will be tough this year amid a sluggish recovery in the industry and with China rapidly in pursuit,” he said. He added that the shipbuilder should focus on receiving orders in its core businesses as well as pull up new ventures to achieve the 27 trillion won in sales that it aims this year.

GS Group Chairman Huh Chang-soo said the group will seek shared growth with small sized suppliers as well as focusing on sincerity and innovation this year. “We should change the ways of competition.

Productive competition should be sought after, replacing simple competition,” Huh said. He said the businesses in the newly emerging countries could turn into good corporate customers and good partners.

Hyundai Group leader Hyun Jung-eun, the only female among the heads of the top conglomerates, said that her main priority is successfully taking over Hyundai Engineering and Construction (HE&C) in a contest with Hyundai Automotive.