South Korean shipbuilder, Hyundai Heavy Industries (HHI) Group, effected a major management reshuffle on Tuesday, its first major executive appointment after separating the shipbuilding and non-shipbuilding operations.
Chairman Choi Kil-seon would retire to play an advisory role, while vice chairman, Kwon Oh-gap resigned from the chief executive position. The company will run on the sole management of its chief executive and president, Kang Hwan-goo to strengthen the administration, the company said.
Kwon, credited for his efforts to help the firm overcome challenging times which lasted for four years, will head the holding entity of the shipbuilder, once it completes the process to transform into a holding structure. Kwon is expected to focus on exploring new growth engines, the group’s financial affairs, business reorganisation and overseas operation.
The group promoted Joo Young-geol, CEO of Hyundai Electric and Energy Systems Co. and Gong Gi-yeong, CEO of Hyundai Construction Equipment Co. from vice president to the post of president.
Chung Ki-sun, senior executive director of Hyundai Heavy Industries and grandson of Hyundai group’s late founder Chung Ju-young, was promoted to vice president to lead the vessel and marine business and corporate planning office. He will also be named vice president of Hyundai Global Service Co., the shipbuilder’s ship repair and maintenance unit that began operation in December 2016, to jointly lead the firm with CEO, Ahn Kwang-hun.
Analysts believe that HHI has tightened the grip of Chung, the eldest son of its largest shareholder Chung Mong-joon, over the group management through the reshuffle. The management reshuffle was carried out with an objective to rescue the Group from the current crisis caused due to a scarcity of orders.
Sea News, November 16