By Kim Yoo-chul
Siemens plans to more than double its annual revenue in Korea within the next five years, the firm’s top executive said, Tuesday.
At a press conference, Siemens Korea Chairman and CEO Kim Jong-kap said the Korean arm of the German engineering giant sees high growth potential in wind power and formed an alliance with local companies to expand this business.
``I am confident in doubling our annual revenue in Korea in the next five years,’’ Kim told reporters during an event to mark his first year at the German firm at a Seoul hotel. Siemens aims to earn 4 trillion won in annual revenue by 2016.
In a statement, Siemens Korea said it had made 1.8 trillion won last year, up from 1.7 trillion in 2010. Operating profit was 78.7 billion won. In 2009, the company reported 2.1 trillion won in revenue.
The executive said his previous experience at Hynix Semiconductor, now SK hynix, will help Siemens see faster earnings growth.
The former bureaucrat was the chief executive at Hynix from 2007 to 2010. ``The key things I learned as CEO of Hynix were faster decision-making and speedier execution,’’ said Kim. During his time there, the chipmaker reported record annual revenue in 2010.
``Sometimes a top-down decision-making structure is effective. Korean industrial conglomerates are ideally positioned to implement bold and speedier decisions,’’ he said.
According to Kim, Siemens headquarters has strong intent to expand its Korean operations as a growing number of multinational companies think Korea will replace China as the new Asian research and development (R&D) hub five years from now.
``The biggest competitor for Siemens Korea is Siemens China. Because Korea is rising as an attractive country for investors, Siemens Korea will try our best to invite R&D and manufacturing centers to Korea.’’
In the statement, Siemens said it will expand industry-academia cooperation by forming an alliance with top colleges in Korea and carry out human resource development programs, such as internships.
The firm introduced the Commercial Apprenticeship Program Asia Pacific for college seniors to help them learn financial and accounting expertise.
``These activities are due to Siemens’ decision to actively put corporate social responsibility activities and ethical management into practice to fulfill our role as a trusted partner and corporate citizen in Korea,’’ the firm said.