Hyosung, Hanwha, and SK Networks Third-Generation Management Takes Center Stage... Accelerating Succession Process

Appointment of Cho Hyun-joon and Cho Hyun-sang as Inside Directors of Key Affiliates
Choi Sung-hwan Faces Management Test at SK Networks
Hanwha Trio Separates Energy, Finance, and Hotel Sectors

[Asia Economy Reporter Oh Hyung-gil] Recently, in the business world, the third generation of family heads have been stepping into frontline management roles, strengthening responsible management by enhancing their control and drive over core businesses. As they build capabilities across overall management, it is expected to accelerate business succession.

According to the business community on the 19th, Hyosung Group Chairman Cho Hyun-joon and Vice Chairman Cho Hyun-sang were appointed as inside directors at the shareholders' meetings of the group's key affiliates, Hyosung TNC and Hyosung Advanced Materials, held on the 17th.

Since transitioning to a holding company structure in 2018, after Honorary Chairman Cho Seok-rae stepped down from frontline management, the eldest son Cho Hyun-joon and the third son Cho Hyun-sang have been in charge of management. However, until now, they had only been registered as inside directors at the holding company Hyosung and had not taken on inside director roles at affiliates, marking this as their first time being named inside directors at affiliates.

While professional managers have independently managed the company based on their expertise, with Chairman Cho Hyun-joon and Vice Chairman Cho Hyun-sang stepping into frontline management, it is expected that full-scale investment and responsible management in key areas such as spandex and tire cords will become possible.

Hyosung TNC is the world's number one company in spandex market share, and Hyosung Advanced Materials is the global leader in tire cords. Last year, among Hyosung Group's total operating profit of 2.8 trillion won, Hyosung TNC accounted for 51.4%, and Hyosung Advanced Materials accounted for 15.8%.

Additionally, Chairman Cho Hyun-joon, having succeeded in his fourth consecutive term as CEO of Hyosung Corporation on the 18th, is expected to accelerate entry into future growth engines such as hydrogen and carbon fiber businesses, which are being intensively developed.

Choi Seong-hwan, eldest son of former SK Networks Chairman Choi Chul-won, is also making a full-scale entry into SK Networks management. SK Networks plans to hold its regular shareholders' meeting at its Jongno-gu headquarters on the 29th and appoint Choi Seong-hwan as an inside director.

Choi is the grandson of the late SK Group founder Choi Jong-gun and the nephew of SK Group Chairman Choi Tae-won. As former Chairman Choi resigned amid investigations for embezzlement and breach of trust, making it impossible for him to participate in company management, his son Choi Seong-hwan is expanding his domain.

The business community predicts that following Choi Seong-hwan's appointment as inside director, a full-scale succession process centered on SK Networks may begin.

However, a challenge remains as SK Networks' largest shareholder is SK Corporation, holding a 39.12% stake, which is significantly higher than Choi Seong-hwan's 1.89% or former Chairman Choi's 0.84% stakes.

Hanwha Group is also accelerating third-generation management. Hanwha Corporation plans to process an agenda to appoint Kim Dong-gwan, eldest son of Hanwha Group Chairman Kim Seung-yeon and President of Hanwha Solutions, as an inside director at the regular shareholders' meeting scheduled for the 29th.

Hanwha stated, "In the post-COVID era where uncertainty has increased, responsible management is needed more than ever, which was a primary consideration."

Since 2020, President Kim has led the strategy division of Hanwha Corporation, overseeing businesses such as aerospace and defense industries. He was appointed inside director of Hanwha Solutions in March 2020, became CEO in October of the same year, and was appointed inside director of Hanwha Aerospace in March last year.

After joining Hanwha Group in 2010, President Kim led the solar energy business through Hanwha SolarOne and Hanwha Q CELLS, and based on these management achievements, he became CEO of Hanwha Solutions. Following solar energy, he has achieved remarkable management results in aerospace and defense industries, and is expected to establish a solid succession structure.

Accordingly, Kim Seung-yeon Chairman's second son, Kim Dong-won, Vice President of Hanwha Life Insurance, is in charge of financial affiliates, while the third son, Kim Dong-seon, Executive Director, is responsible for hotel and distribution businesses as head of new business strategy for Hanwha Hotels & Resorts and Hanwha Solutions' Galleria division.

This content was produced with the assistance of AI translation services.