Kwon Oh-gap, chairman of HD Hyundai, said that in the Year of the Serpent, the group should respond more actively to China's pursuit in the core shipbuilding business and find practical benefits in cooperation opportunities with the United States.
In his New Year's address delivered on the 31st of last month, Chairman Kwon noted, "There are those who vaguely view the growth of the Chinese shipbuilding industry, but that is absolutely not the case." He added that "the shipbuilding business is being encroached upon by Chinese shipyards, which have priced competitively, but the four major shipbuilders HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Heavy Industries, HD Hyundai Samho, and HD Hyundai Mipo have proactively responded to China's pursuit by uniting as one team to maximize synergy in the three key areas of 'technology development, design, and production.'" However, he emphasized, "Now the shipbuilding business must optimize the three key areas further to continuously create cutting-edge vessels that China cannot keep up with," and also stated, "At the same time, we must implement strategies to reclaim existing markets that have been encroached upon by China."
Under these circumstances, Chairman Kwon said that cooperation in the shipbuilding sector with the United States presents a new opportunity for the company. It seems to refer to President-elect Donald Trump's request for cooperation with the Korean shipbuilding industry. Kwon stated, "We must calmly respond and find our practical benefits. We should also be able to showcase the capabilities of 'K-Shipbuilding' as a national representative in close cooperation with our government."
He emphasized the importance of technological innovation. Kwon expressed that "prosperity cannot last forever and the market can change at any moment, so we must observe market conditions more coolly and calmly, and build the resilience to withstand market changes," noting that he believes technological innovation is the key. He further explained, "To achieve technological innovation, our group is focusing on nurturing design, development, and research personnel centered around GRC, and we will continue to expand our team."
Kwon stated that the company will also actively invest in new businesses. He explained that preparations for the future are being made across all business areas, including the establishment of Avicus for the development and commercialization of autonomous ship navigation systems, the Future of Shipyard (FOS) project for the digitalization of shipyards, overseas investment in the defense sector for K-defense growth, seeking opportunities for yard development, and the development of unmanned, automated, and intelligent equipment, as well as the construction of a new distribution plant by HD Hyundai Electric and expanding the solution business of HD Hyundai Robotics.
HD Hyundai has also begun investments for future projects, including equity investment in small modular reactors (SMR), entering the fuel cell business through the establishment of HD Hydrogen, and engaging in research and development for new drug development through the establishment of AMC Science.