Business leaders focus on environment, business challenges in 2023

Samsung Electronics will pull together resources this year to meet the goal of going carbon neutral by 2050, following its joining of the RE100 in 2022.

Samsung Electronics Vice Chairman Han Jong-hee delivers New Year's message on Monday at the company's office in Suwon, Gyeonggi. [SAMSUNG ELECTRONICS]

Samsung Electronics will pull together resources this year to meet the goal of going carbon neutral by 2050, following its joining of the RE100 in 2022.

Vice Chairman Han Jong-hee said on Monday that 2023 will be a watershed moment for turning more eco-friendly to make good on commitments to RE100, a global campaign to replace all electricity generated by fossil fuels with renewable energy by 2050.

“This is the year of activating our new environment-centered management strategy,” Han said. “We will keep nurturing green technology as a future growth engine so that using Samsung products can be an act of contributing to making a sustainable future.”

Samsung Electronics is the eighth largest creator of greenhouse gas emissions in Korea, and the portion of renewables in powering local factories is below 10 percent.

The electronics maker plans to invest over 7 trillion won ($5 billion) in its environmental initiatives by 2030, including reducing emissions, conserving water, expanding electronic waste collection and reducing pollutants.

SK Inc. Chairman Chey Tae-won

SK Inc. Chairman Chey Tae-won echoed the importance of aligning environment conservation with business strategies in a message sent to employees on Jan. 1.

“Corporations ought to address problems between the earth and people and people and people going forward,” he said. “The companies with the solution to resolve the pressing problems like climate change, diseases and poverty will be chosen by mankind."

LG Corporation Chairman Koo Kwang-mo

LG Corporation Chairman Koo Kwang-mo called for a mindset focused on the needs of customers. “I hope that 2023 will be where employees look for customer-centered values,” he said in an e-mail sent to LG employees.

Hanwha Group Chairman Kim Seoung-youn

Hanwha Group Chairman Kim Seung-youn highlighted the importance of the defense and energy businesses amid rising geopolitical risks worldwide.

“Amid fast-changing international situations — involving the war in Ukraine, the rising tension between the United States and China — corporate activities and national security became closely intertwined, more so than ever,” said Kim.

“Especially, the defense and energy businesses, which we have been nurturing with responsibility for a long time, have become central for the existence of the nation.”

Choi Jeong-woo, Posco Holdings CEO and chairman, reflected on the company’s struggles last year, saying that “2022 will be remembered as an unforgettable, heartbreaking year for us.”

Posco halted operations of rolling facilities on Sept. 7 due to factory flooding caused by Typhoon Hinnamnor. It was the first time for Korea’s largest — and the world’s fifth-largest — steelmaker to halt an operating line in 49 years.

The No. 2 hot rolling facility restarted operations on Dec. 15, and the No.1 facility was up and running again in October.

Choi addressed rising uncertainties in the global economy, yet emphasized that “Posco’s transition to a holding company structure served as a foundation for our environment-friendly growth.”

Posco is focusing on low-carbon steelmaking, battery materials and hydrogen in its search for growth.

GS Group Chairman Huh Tae-soo defined this year as “the beginning of an unprecedented long-term slump,” with leading indicators signaling slowing growth.

But Huh said that “over the past three years, we established a foundation for future growth,” citing digital transformation and venture investments.

The energy and retail company hopes to speed up the development of its new businesses, which involve hydrogen, biofuels and batteries.

Doosan Group Chairman Park Jeong-won forecast “a rough business environment” for 2023 on Sunday.

Park emphasized that the fast-changing global energy market will create new business opportunities for Doosan, especially in the hydrogen and nuclear sectors.

“The outlook is upbeat in the small modular reactor sector, where we made an early market entrance,” Park said, “and there are hardly any competitors that are as well-equipped as us in the hydrogen value chain, encompassing all stages from production to distribution and utilization.”

LS Chairman Koo Ja-eun announced Monday that the company will invest over 20 trillion won through 2030 to double its corporate value from the current 25 trillion won.

“The transition toward the era of carbon-free electricity is a chance of a lifetime for LS, which specializes in the power and energy business,” said Koo at LS Tower in Anyang, Gyeonggi.

He mentioned power systems and infrastructure, as well as battery materials, automotive parts and manufacturing automation services as LS’ future growth engines.

Related chaebol companies detailed their strategies.

Samsung SDI CEO Choi Yoon-ho

The CEO of battery maker Samsung SDI cited securing technological supremacy in the development of next-generation EV batteries as a primary focus.

“The company, with distinguished competitiveness in battery and electronics materials, could be the winner,” said CEO Choi Yoon-ho. “We need to release the advanced EV batteries in a timely manner and meet the planned technological milestones."

The company is working towards the construction of a pilot plant for solid-state batteries, which promise higher energy density than conventional lithium-ion batteries.

Hanjin Group Chairman Walter Cho will focus on Korean Air Lines completing the acquisition of Asiana Airlines in 2023.

“It is a pivotal year for completing the huge task of closing our acquisition of Asiana Airlines,” Cho said.

Since Korean Air Lines signed a deal to acquire the controlling stake in Asiana in November 2020, the company has received approval from 10 countries — Australia, Korea, Singapore, Vietnam, Thailand, Turkey, Taiwan, Malaysia, China and the Philippines. It is awaiting the go-ahead from Japan, Britain, the European Union and the United States.

Kwon Oh-gap, the chairman of HD Hyundai, formerly Hyundai Heavy Industries Group, will prioritize the increase of staffing in high-tech areas including artificial intelligence and environmental technologies.

“Technology development that we aim at should focus on eco-friendliness, digital, and safety,” Kwon said in his New Year’s address. He also mentions environmental, social and governance (ESG) initiatives.

“The next 50 years will be a history of innovation and creation that combines technology, the environment and digital,” Kwon continued. “We need to create a beautiful harmony with society.”

Shinsegae Vice Chairman Chung Yong-jin said that the group aims to “go back to the basics” at a time of crisis. he noted high inflation, high interest rates and a weak won.

“We know that the core of basics lies in our customers and products,” Chung said. “Only when we fanatically focus on them we can overcome our current crisis and snatch the opportunity for a bigger leap forward.”

Lee Jung-ae, as the newly-appointed president of LG Household & Healthcare, vowed to expand its domestic cosmetics to the global market. Lee was designated to her current position last month and it was her first time to give her new year’s address.

“We are hoping to strengthen our brand portfolio and expand local distribution channels for the Chinese market, in line with how the trend changes,” Lee said. “As for the North American market, we are planning to supplement local business management by preparing brands and products which fit the needs of the consumers.”

In times of crisis, CJ has not only pulled through but also spent a meaningful year solidifying global competitiveness, CJ Group Chairman Sohn Kyung-shik said at the new year’s address.

“CJ CheilJedang created the highest revenue in spite of difficult management environment, while globalization of K-foods, especially for the United States, was fast-forwarded in spite of skyrocketing raw material prices. Bio business also generated the highest revenue in group history by consolidating competitiveness in research & development and solutions.

“For entertainment, we stabilized our system to acquire well-made content by launching our own production studio CJ ENM Studios, and focused on updating our business model for digital platform by steadily investing on Tving.”

Lotte Group Chairman Shin Dong-bin

Lotte Group Chairman Shin Dong-bin emphasized need for young leadership and flexible insight for irreplaceable competitiveness.

“Young leadership, which can bring about vitality within the group and a lenient mindset which can fluently accept new perspectives, is a must for our business culture,” Shin said.

“We need to look at the same direction at the most difficult time,” Shin said in relation to ESG. “As our affiliated distribution companies put our heads together to expand into global market for our small-and-mid-sized partners, we need to think about how we can all take a step forward together for our customers, shareholders, partners and regional society.”

BY PARK EUN-JEE, SHIN HA-NEE, LEE JAE-LIM, SEO JI-EUN [park.eunjee@joongang.co.kr]