Biz tycoons stress crisis management in 2019

By Nam Hyun-woo

Leaders of large business groups stressed the importance of being able to deal with changes in any form in their New Year messages, Wednesday, as uncertainties stemming from the global economic downturn and the U.S.-China trade conflict are expected to pose enormous challenges for them in 2019.

They also underscored the importance of new businesses in their portfolios, in the belief they will propel the groups to weather the gloomy outlook for this year.

Hyundai Motor Group Executive Vice Chairman Chung Eui-sun presided over the group's New Year meeting on Wednesday and said the company should be a “game changer,” not a follower that quickly latches onto trends.

“The group is faced with a challenge of normalizing businesses in the U.S. and Chinese markets as well as nurturing its future growth driver at the same time,” Chung said in his speech.

“To that end, we have to pursue innovation in the way of working and even thinking. This year, Hyundai Motor Group will make its first step to becoming a game changer that leads the market with innovative ideas.”

It was the first time Chung presided over the annual business kick-off meeting and delivered a group-wide message for the New Year. It is interpreted that Chung has consolidated his control over the group, following in the footsteps of his father, CEO and Chairman Chung Mong-koo.

Chung stressed clean cars at the year's target segment. He pledged the group will release 44 eco-friendly vehicles and reach 1.67 million annual sales by 2025. Also, the group will invest 8 trillion won for fuel-cell electric vehicles by 2030, to further consolidate the company's leading status in the hydrogen vehicle market.

LG Group also kicked off its 2019 business with new chairman's message. In the meeting, Chairman Koo Kwang-mo stressed the importance of customer, reiterating the word for 30 times in his nine-minute speech.

“We are faced with fresh needs of the times,” Koo said. “New products come out every day but they vanish in a blink if they failed to get the choice of customers. After countless thoughts over the path LG should take, I found the answer lies in customers.”

It was also the first time that Koo presided over the group's New Year meeting. He took the chairman post in June last year, after his father and former Chairman Koo Bon-moo died in May.

Lotte Group Chairman Shin Dong-bin, who returned to the group's management in October, underscored the group needs to self-scrutinize its existing corporate strategy to seek sustainable growth.

“For sustainable growth, we have to review our current strategy and come up with detailed action plans for transformation,” Shin said in his New Year message. “Also, we have to apply new technologies to all of our management process and make those technologies as the base for new business model.”

POSCO Chairman Choi Jeong-woo said the uncertainties stemming from the U.S.-China trade conflict will rise further this year, and the steelmaking group should raise its capabilities to cope with challenges.

Choi said the group should focus on premium steel products and cut costs, while expediting the growth of rechargeable battery material businesses.

Samsung Electronics, which met its 50th anniversary this year, held its New Year meeting without its heir Vice Chairman Lee Jae-yong.

Instead, Vice Chairman Kim Ki-nam said the current business environment is aggravating, but the company should make efforts to place the company at the center of the info-tech industry for the upcoming 50 years.