Hyundai Heavy to reappoint incumbent CEOs

Hyundai Heavy Industries, which went into red with a deficit of 1.5 trillion won ($1.25 billion) last year, is planning to reappoint its incumbent chief executives, according to industry sources and news reports Sunday.

The company reportedly plans to reappoint current chairman Choi Kil-sun and president Kwon Oh-gap, who are co-CEOs, to lead the struggling shipbuilder for another term.

The Ulsan-based company is slated to confirm the decision at the upcoming shareholders meeting on March 18, according to an industry insider. If approved, the two executives, both considered seasoned business leaders in the industry, will retain their CEO posts until March 2018.

Choi formerly worked as president of Halla Heavy Industries, Hyundai Mipo Dockyard and Hyundai Heavy Industries, while Kwon formerly served as director of Hyundai Heavy Industries’ Seoul office and as president of Hyundai Oilbank.

Industry watchers say the decision reflects the company’s faith in the two executives’ ability to restore the firm’s profitability and former glory.

Moreover, Hyundai Heavy Industries is planning to name former Financial Services Commission chairman Kim Seok-dong and former chief of Korea Development Bank Min Yoo-sung as its outside directors.

By Sohn Ji-young (jys@heraldcorp.com)