South Korea’s Hanwha Group promoted its petrochemical and energy unit Hanwha Solutions Corp. CEO Kim Dong Kwan as the group’s new vice chairman during its personnel reshuffle announcement on Aug. 29.
The group has kicked off a third-generation hereditary succession in earnest, sources say.
Kim, the eldest son of Hanwha Group Chairman Kim Seung Youn, received a bachelor’s in government from Harvard University and joined the chairman’s office of Hanwha Group in 2010.
Kim Dong Kwan was promoted to become Hanwha Solutions’ vice CEO in December 2019 and CEO in September of the following year. He has taken various roles inside the group, including as chief strategy officer of Hanwha Solutions and chief of Hanwha Aerospace Co.’s space task force Space Hub.
He will keep the position as Hanwha Solutions CEO and also continue to serve as CEO at both Hanwha Corp., the group’s holding company, and Hanwha Aerospace, focusing on the three firms' strategies.
“The new vice chairman has proactively discovered and invested in the group’s future businesses and shown great performance based on his expertise in global business and strategies,” Hanwha Group stated.
“In line with the promotion, Kim will step up the execution of group Chairman Kim Seung Youn’s business plans. The new vice chairman will also strengthen his responsible management as a key shareholder,” the group said.
EARLY ANNUAL RESHUFFLE The group announced nine chief executive appointments at the holding company, Hanwha Aerospace, Hanwha Solutions, Hanwha Engineering & Construction Corp. and Hanwha H2Energy.
Hanwha named Kim Seung Mo, the holding firm's defense division head, as the new CEO of Hanwha Engineering & Construction Corp.
Kim Seung Mo will serve as both the holding firm's defense division head and the construction firm’s CEO
until the group merges Hanwha Aerospace with the defense division and Hanwha Defense Co.
Hanwha Defense CEO Son Jae-il was appointed as the CEO of Hanwha Aerospace alongside Kim Dong Kwan. Son will also serve as chief executive at both companies until the merger.
Hanwha Solutions’ advanced material business head Ryu Doo-Hyung was named as the new CEO of Hanwha Corporation/Momentum, the holding firm’s automation engineering solutions provider, and Hanwha Precision Machinery Co.
Hanwha Total Petrochemical Co. resin business chief Kim In-Hwan was appointed as the new head of Hanwha Solutions’ advanced material business. Energy equipment unit Hanwha Power Systems Co. CEO Son Young-Chang was named as the new CEO of hydrogen energy unit Hanwha H2Energy; he will maintain his post as chief of the equipment company.
Yang Ki Won, who became the holding firm’s global business head in July, was nominated as a vice president. Chung Sang Chull, the CEO at Hanwha’s Berlin-based subsidiary Q Energy Solutions SE, was promoted as the holding firm’s executive vice president and will continue to serve as the German subsidiary’s CEO.
The group will officially hire the new CEOs after receiving approval from each firm’s shareholders and board of directors.
The group said it has selected new CEOs focusing on their strategies and expertise in overcoming uncertain business environments.
INTENT TO SUPPORT YOUNGER HEIR APPARENTHanwha Group, the No. 7 conglomerate in Korea by assets, made the announcement earlier than any other major company in the country.
The group had normally announced leadership reshuffles around October every year until COVID-19; it started earlier announcements in September 2020 and August last year for the speedy establishment of the following years' business strategies.
This year’s reshuffle is not seen as the group’s generation shift on the whole. Most nominees are born in the 1960s, except Kim Dong Kwan, born in 1983, and Yang Ki Won and Chung Sang Chull, born in 1970 and 1973, respectively.
The move is rather seen as the group’s intent to support the third-generation hereditary succession with more seasoned executives.
Although new Vice Chairman Kim Dong Kwan is set to lead the group’s strategies, he needs to own more shares to ensure his family's business succession. His father, Chairman Kim Seung Youn, is the largest shareholder of the holding company with a 22.7% stake; while his eldest son holds a 4.4% stake.
Updated with the nominees on Aug. 29.Write to Kyung-Min Kang at
kkm1026@hankyung.comJihyun Kim edited this article.
