Hanwha to invest $20 billion by 2022
Hanwha Group Chairman Kim Seung-youn.
By Park Jae-hyuk
Hanwha Group will invest 22 trillion won ($19.5 billion) in its core businesses and create 35,000 jobs by the end of 2022 to cope with the changing business environment and to support the Moon Jae-in administration's growth policy, the conglomerate said Sunday.
According to Hanwha, the investment will be the largest in its 66-year history.
An annual average of 4.4 trillion won will be invested over the next five years, up 37 percent from 3.2 trillion won annually over the past three years.
Hanwha plans to spend 4 trillion won on enhancing global competitiveness of its aircraft parts and defense industry units, to promote the quality of made-in-Korea weapons overseas.
In the petrochemical sector, 5 trillion won will be spent on reducing costs and expanding the market.
Hanwha will invest another 4 trillion won to build resorts and shopping malls, which it says will create many jobs.
As the world's leading solar panel maker, Hanwha will also make investments in the sector, in line with the government's policy to increase the use of renewable energies.
The conglomerate will decide on investment in finance afterwards, depending on changes in financial markets.
Based on the investments, Hanwha says it will create 35,000 jobs over the next five years.
Hanwha had hired fewer than 4,000 employees a year before 2016, but has increased this to 6,000 since it built a solar panel factory and started new businesses in Korea.
It now plans to hire 7,000 employees a year by the end of 2022.
Hanwha has also converted 868 irregular workers at its subsidiaries to regular employees since last September.
Before this, the group had converted 2,000 irregular workers at Hanwha Hotels & Resorts, Hanwha 63 City and Hanwha Galleria to regular workers in 2013.
“With our long-term strategy including investments and employment, we expect to increase sales to 100 trillion won in 2023 from 70 trillion won this year,” a Hanwha Group official said. “We will also continue our corporate social responsibility activities for our subcontractors and young people.”
Hanwha said it would support young entrepreneurs to start businesses and enter the overseas market. The company will also raise 400 billion won to help subcontractors.