HD Hyundai exchanges executives in annual reshuffle

[Courtesy of HD Hyundai]

The construction machinery units of HD Hyundai Heavy Industries Group carried out extensive executive exchanges during a recent annual reshuffle, a move seen as laying the foundation for change and innovation by boosting personnel diversity.

According to industry sources on Tuesday, HD Hyundai Heavy Industries Group, one of the country’s largest conglomerates engaged in shipbuilding, heavy equipment, machine, and petroleum, exchanged 11 executives between HD Hyundai Construction Equipment Co. and HD Hyundai Infracore Co. in November.

HD Hyundai has HD Hyundai Construction Equipment and HD Hyundai Infracore under the umbrella of HD Hyundai XiteSolution Co., an intermediate holding company in its construction machinery sector.

In the reshuffle, Moon Jae-young, vice president of HD Hyundai Construction Equipment, and Son Hee-jun, executive vice president of HD Hyundai Infracore, exchanged positions as heads of sales for their respective companies.

Senior executives in personnel and procurement also swapped positions between the two companies while taking on the same roles.

The exchange of executives between the two companies is the first of its kind since HD Hyundai Heavy Industries acquired HD Hyundai Infracore (formerly known as Doosan Infracore) for 850 billion won ($647 million) in 2021.

Additionally, HD Hyundai Construction Equipment Europe and India will be headed by executives from HD Hyundai Infracore. This is also the first time that the heads of overseas subsidiaries of both companies have been appointed from different companies.

The reason HD Hyundai actively promotes talent circulation in the construction machinery sector is the expected positive impact of organizational convergence, especially given the differences in organizational culture between HD Hyundai and Doosan, which used to own HD Hyundai Infracore.

“HD Hyundai and Doosan are both heavy industry-based companies, but there are differences in organizational culture,” said an industry insider.

While Doosan is seen as relatively open and liberal in the conservative heavy industry, HD Hyundai is believed to be more driven, as its shipbuilding business, the backbone of the group, is rooted in the challenging spirit of Hyundai Group founder Chung Ju-yung.

Executives often find inspiration for innovation while working with new colleagues. A HD Hyundai executive said, “Personnel exchanges are definitely helpful for creative work, such as increasing mutual understanding and interest, as well as deriving business strategy insights.”

HD Hyundai also heralded a rotation within the construction machinery sector, with team leader-level appointments scheduled for January 2024. Through strategic integrations, HD Hyundai Heavy Industries aims to achieve 10 trillion won in sales and 1 trillion won in operating profit by 2025.