[THE INVESTOR] It can’t be denied that the South Korean economy is dominated by conglomerates. And while they may appear to be pretty much the same on the outside, each is busy seeking their own individual strategy for the future.
Hanwha Group is no exception to this.
On July 5, Hanwha Group chairman
Kim Seung-youn visited the company’s solar energy cell plant in Chungcheong Province. During the hourlong tour, Kim proclaimed the group’s vision of fostering solar energy as its next growth engine.
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Hanwha chairman Kim Seoung-youn(left) talks with his staffs. / Hanwha Group |
“For the past five years, we have devoted ourselves to developing solar energy. This is based on our vision of turning this business into one that will eventually represent the South Korean economy,” Kim said.
The visit marked one of the few public appearances that the 64-year-old tycoon has made since he was released on probation in February 2014 after he was indicted on charges of embezzlement in 2012.
In 2009, the chairman officially picked solar energy as Hanwha’s future growth engine. He also decided to build the cell plant in Korea, and not outside the country, in hopes to promote the business among South Korean policymakers and industry leaders.
Kim also placed his eldest son Dong-gwan in a key position at Hanwha Q CELLS, the affiliate enlisted with the mission of spearheading solar energy. Industry watchers are convinced that eventually, Dong-gwan will shift the focus of Hanwha to such future energy businesses.
Since its inception in 2011, Hanwha Q CELLS had been in the red up to the first quarter of 2015. But the firm swung to the black in the second quarter. For the full year, the company posted an operating profit of US$76.6 million.
The firm also has been expanding into overseas markets. It signed a power purchase agreement with US-based Austin Energy. It also signed on to supply solar modules and build solar power plants in India and Turkey.
As of 2016, Hanwha Q CELLS was No.1 globally, in terms of in-house cell production capacity.
While solar energy alone will not be enough to propel Hanwha, analysts say focusing on a single core area of growth can be a viable corporate strategy.
By Kim Ji-hyun (
jemmie@heraldcorp.com)
