Hanwha Group launches robotics company to secure future growth

Excutive director for future strategy of Hanwha Hotels & Resorts Kim Dong-seon [Courtesy of Hanwha Robotics]

South Korea’s Hanwha Group officially launched a robotics company, Hanwha Robotics Co., on Wednesday to target the robotics market that is forecast to be a core industry moving forward. The move is likely to create synergies with the group’s retail business as Kim Dong-seon, Hanwha Group Chairman Kim Seung-yeon’s third and youngest son who currently serves as executive director for future strategy at Hanwha Hotels & Resorts Co., will head the new company’s strategic planning division.

According to Hanwha Corp., Hanwha Robotics was created by separating the collaborative robot, automated guided vehicle (AGV), and autonomous mobile robot (AMR) businesses from the Factory Automation (FA) Division of Hanwha Corporation/Momentum. The company is 68 percent owned by Hanwha and 32 percent by Hanwha Hotels & Resorts. With its latest company, the group aims to expand its robotics lineup not only through its existing flagship industrial collaborative robots but also by developing applications for customer services.

Hanwha Robotics will also launch products that incorporate self-driving technology, such as construction management robots. It will also accelerate the development of robots that can replace human labor in high-risk fields facing labor shortage, such as the dirty, dangerous, and demeaning jobs referred to as the 3Ds.

The company’s ultimate goal is to tap the global market for robotics, where it aims to secure a future growth engine as the demand for robotics, considered a high value-added industry of the future, grows.

According to market research firm MarketsandMarkets Pvt. Ltd., the global collaborative robot market is expected to grow to 6.45 trillion won ($4.76 billion) by 2025 from 2.2 trillion won last year. “Although the domestic robotics industry is small compared to major countries, we will actively enter the competition with a diverse lineup,” a Hanwha Robotics official said.

In another noteworthy development, the younger Kim has taken charge of strategic planning at the new company. All eyes are on what synergies he will create for the robotics business while also heading Hanwha Group’s hospitality, leisure, food, and beverage businesses.

“We will be able to utilize Hanwha Robotics’ advanced robotics technology for food preparation, facility management, and security,” a Hanwha senior official said. “These are just some ways we can synergize with Hanwha Hotels & Resorts.” These synergies mean Hanwha’s leisure and food and beverage businesses can be automated and become more productive by using robots manufactured by Hanwha Robotics.

“The actual application of the robot technology is expected to help enhance site safety as well as improve customer convenience,” a Hanwha Hotels & Resorts official added.

Additionally, Kim’s appointment as the head strategic planning for Hanwha Robotics demonstrates Hanwha’s strong commitment to the robotics business. Some business insiders suggest that the elder Kim is giving his third son wings by entrusting the robotics business to him.

“Robots will become a critical business to improve the quality of life,” the younger Kim said. “We will develop robots that can be utilized in various fields such as food tech and security services.”

Meanwhile, Seo Jong-hwi, former head of the FA Division at Hanwha/Momentum, will become Hanwha Robotics’ first chief executive officer. Seo has been contributing to the development of proprietary technologies in the robotics sector while performing key roles, including head of Hanwha’s AGV Robot Center.

“We plan to focus on the global collaborative robotics market, which is currently growing rapidly, based on the excellent quality and reliability derived from our precision machinery and automation design technology,” Seo said. “We will continue to invest in core software technology development that can increase the added value of the robotics business.”