HD Hyundai Chairman warns of short-term profit endeavors from external factors

HD Hyundai Chairman Kwon Oh-gap

HD Hyundai Chairman Kwon Oh-gap, in a recent meeting with the company’s executives on Friday, conveyed a message urging caution regarding temporary profits that do not result from the company’s own endeavors but rather from external economic changes.

According to the company’s sources on Sunday, Kwon emphasized only profits generated through the company’s own efforts to enhance its global competitiveness and secure future business should be considered “good profits.” He cautioned against relying on improved performance solely due to external factors such as fluctuating exchange rates or rising product prices.

His remarks suggested the recent significant improvement in earnings for shipbuilding companies attributed to the surge in liquefied natural gas (LNG) carrier prices. Kwon cited the example of the Newbuilding Price Index rising by 30 percent compared to the same month in 2019.

Kwon stressed that such gains based on external circumstances could easily transform into “bad profits” if they mislead the company’s direction. He also warned against complacency among managers, reminding them not to be intoxicated by short-term gains, falsely assuming tremendous growth for the company.

He encouraged the executives to reflect on the efforts made to enhance the company’s long-term value and create a conducive work environment for employees.

The meeting aimed to review critical issues in each business and share specific plans and progress made by the company. It witnessed the participation of Kwon and the presidents of major affiliates, including Vice Chairman/Co-CEO at Korea Shipbuilding & Offshore Engineering Ka Sam-hyun and HD Hyundai Chief Executive Officer Chung Ki-sun.