Hanwha Vice Chairman Kim to lead normalizing Daewoo Shipbuilding

Hanwha Group Vice Chairman Kim Dong-kwan [Courtesy of Hanwha]

The board of Daewoo Shipbuilding & Marine Engineering Co. approved new directors recommended by Hanwha Group and approved changing the company name during a meeting Monday after the conglomerate received the approval to acquire the world’s fourth-largest shipbuilder last month.

The board meeting approved the appointment of nine new internal and outside directors, including Hanwha Group Vice Chairman Kim Dong-kwan, as non-executive director and Vice Chairman Kwon Hyek-woong as the new head of Daewoo Shipbuilding. George P. Bush, nephew of former U.S. President George W. Bush and former Texas Land Commissioner, was also nominated as an outside director. Kim is also the eldest son of Hanwha Group’s Chairman Kim Seung-youn.

“Kim’s participation as a board member is to support the rapid normalization of Daewoo Shipbuilding and its expansion overseas,” a Hanwha Group official said. “Kim will participate in the shipyard’s management as a non-executive director, considering his existing roles in eco-friendly energy, defense and aerospace sectors.”

Given that Kim had led the acquisition of Daewoo Shipbuilding, his direct participation in management is expected to revitalize investments in the shipyard’s energy business, such as wind power generation.

Kwon, the new chief executive officer nominee of Daewoo Shipbuilding, previously served as CEO of Hanwha TotalEnergies Petrochemical Co. from 2018 until 2020 and has since been the president of Hanwha’s Support Division, focusing on discovering Hanwha Group’s future new businesses and boosting synergy between affiliates. He has also led the Daewoo Shipbuilding acquisition team since September last year when Hanwha announced its plan to acquire the shipyard.

Hanwha Group companies plan to take part in a 2 trillion-won ($1.49 billion) rights offering on May 23 to acquire a 49.3 percent stake in Daewoo Shipbuilding and become an official major shareholder of the shipyard. On the same day, Hanwha will also hold a shareholders’ meeting to finalize the items on the agenda, including changing the shipyard’s name to Hanwha Ocean and appointing new executives.