Hyosung Group announced its official adoption of the holding company system on June 1, with Hyosung Corp. to serve as the holding company and four independent entities -- Hyosung TNC, Hyosung Advanced Materials, Hyosung Heavy Industries and Hyosung Chemical -- to handle manufacturing and operations.
June 1, the BOD meeting sought to enhance corporate objectivity and transparency and appointed internal and external directors
Hyosung Corp. and the four affiliates held their first joint meeting of their boards of directors on the afternoon of June 1 since the reorganization. The board of each affiliate voted on the appointment of the CEO, internal and external directors, and members of the audit committee.
11 internal and 20 external directors were appointed for the five companies. The hiring of experts from various fields as external directors is expected to significantly reinforce objectivity and transparency.
Hyosung Group Chairman Cho Hyun-joon and the board chairman of each affiliate then held a meeting with all five boards of directors attended by their respective chairmen. They discussed achieving mutual success like through maximizing synergy through close cooperation under the holding company system.
Chairman Cho Hyun-joon: “We will concentrate efforts toward transparent management to enhance our overall business competitiveness.”
“Hyosung will leverage the expertise possessed by the holding company Hyosung Corp. and the four new operating affiliates to maintain and advance transparent management and raise our competitiveness to become a perennial global leader, thus enhancing our corporate and customer value,” Chairman Cho said. He also expressed his plan to create a new Hyosung under the holding company system.
Since his appointment last year, the chairman has stressed the importance of transparent management. In July last year, he formed the transparent management committee under the company’s board of directors, appointed an external director as a lead committee member and named an external director as the lead member of the committee for recommending external directors. Last February, he broke from the company’s tradition of having the CEO chair the board of directors by resigning as chairman to raise the transparency of corporate governance.
Control tower to help achieve “Centennial Hyosung” vision; each affiliate to run under autonomous management system headed by professional executive
Under the holding company system, Hyosung Corp., as the control tower of the group, will focus on fostering high-profit business portfolios and enhance brand value. It will also advance corporate governance and achieve transparent management not only by managing the performance of the affiliates, but ensure their operations are focused on their respective boards and professional executives.
Hyosung will reinforce the global competitiveness of the four affiliates by having them as independent entities under the supervision of professional executives. The conversion to the holding company system is slated for completion by year’s end via investment in kind and capital increase with consideration after the listing of the four new companies is concluded July 13.
Hyosung TNC: expansion into new global markets with a focus on the globally leading spandex
Hyosung TNC will utilize its unique and highly competitive brand of spandex to tap a variety of overseas markets; the company controls 32 percent of the global market for spandex. In addition, its trading division will raise its international competitiveness based on the company’s cutting-edge marketing infrastructure and knowhow.
To this end, the company appointed Executive Managing Director Kim Yong-seop as CEO, who has a wealth of expertise and experience in spandex. He started out as a spandex researcher and eventually headed Hyosung’s spandex venture in Brazil and Spandex Performance Unit. Also appointed as an internal director was Executive Managing Director Lee Cheon-gyu, a global sales expert. Four experts in their respective fields were added as external directors: Jang Seung-cheol (finance), former CEO of Hana Financial Investment Co., Ltd.; Choi Byeong-deok (legal affairs), former director of the Judicial Research and Training Institute; Oh Byeong-hee (management), former president and CEO of Seoul National University (SNU) Hospital; and Yoon Hee-joon (technology), professor of materials science and engineering at SNU.
Hyosung Advanced Materials: advancing polyester tire cord products abroad in promising new materials business
Hyosung Advanced Materials seeks to grow into a leading provider of automotive materials focusing on tire reinforcements including polyester tire cord, car mats, and yarns for automotive seat belts and airbags; its tire cords dominate the global market with more than 40 percent share. The plan is to foster new materials such as aramid and carbon fiber as Hyosung’s next growth engines.
The company appointed Vice President Hwang Jeong-mo as CEO, who has helped maintain quality and raised technological competitiveness during his long stint as the head of tire cord production and technology, and Executive Managing Director Kim Seung-han as an internal director, who has established a partnership with global auto-makers as a head of the Interior Performance Unit.
External directors include Kim Dong-geon, former chief justice of the Seoul High Court; Han In-goo, professor of business administration at the Korea Advanced Institute of Science and Technology (KAIST); and Lee Sang-yeop, a distinguished professor of biotechnology at KAIST. Their rich expertise will lead the company’s decision making in the areas of technology, management and law.
Hyosung Heavy Industries: expanding energy business through power systems and creating synergy with construction projects
Hyosung Heavy Industries will fully utilize its extensive knowhow and peerless technology in power systems and industrial machinery to reinforce its global competitiveness. It also enhance its expertise in construction, including in housing and redevelopment projects.
The company to this end appointed as CEO Vice President Moon Seop-cheol, who has led the company’s global expansion of new business lines like STATCOM and supervised sales and production for the core business of Power & Industrial Systems PG (e.g., ultra-high voltage (UHV) transformers), and as an internal director Vice President Kim Dong-woo, who helped turn around the Construction Performance Unit after taking over the unit in 2013 and contributed to landing annual contracts worth KRW 1 trillion in 2014. External directors included attorney Ahn Yeong-yool; Jeong Deok-gyun, chair professor of electrical and computer engineering at SNU; and Shin Eon-seong, former deputy secretary-general for inspection of public services at the Board of Audit and Inspection.
Hyosung Chemical: aiming to globalize materials businesses and introduce new products
Hyosung Chemical’s vision is to emerge as a chemical substance specialist in PP/DH, TPA and film and develop new growth engines like NF3, TAC film and polyketone.
The company named Hyosung Chemical President Park Joon-Hyeong as CEO, who served as a manager in the chemical division, and appointed Executive Managing Director Choi Yeong-gyo as an internal director, who is active in R&D to develop and improve Hyosung’s chemical products. External directors included Pyeon Ho-beom, chair professor of accounting at the University of Suwon; Wang Yoon-jong, visiting scholar at the Korea Institute for International Economic Policy; and attorney Lee Chang-jae.