Headlines for March 2017

1. [Hanwha Group] Held ‘WITH Conference’ on the topic of establishing a young and future-oriented organizational culture

In his commemoration speech for the 64th Anniversary, Chairman Kim Seung-youn said that rejecting bureaucracy, opportunism, and embracing an easy-going attitude while striving to maintain a perpetually young company must be the future image of Hanwha, and he emphasized that Hanwha members must stick together with young thoughts. In order to establish a future-oriented and youthful organizational culture, the Hanwha WITH Conference 2017 was held. It identified, shared, and awarded outstanding organizational culture cases and success with the Group’s recommended tasks.

The first Hanwha WITH Conference was held on the topic of development of female talents. Last year’s conference was held on the topic of respecting the diversity of organizational culture. This year’s topic was establishing a young and future-oriented organizational culture. Unlike the previous two conferences, this year’s conference covered more in-depth concerns not only for female employees but also for all Hanwha members.

As Hanwha Group aims to become a global leader, the Group is trying to grow in hardware as well as in software. Starting from Hanwha WITH Conference 2017, Hanwha is planning to prepare a foundation for the new jump through an innovative and challenging organizational culture that suits a leading global company. We look forward to seeing a young Hanwha that everyone wants to work for where employees can express their creativity freely.

2. [Hanwha Total Petrochemical] Received a level-8 rating, the highest ever in Korea, from International Safety Rating System (ISRS), the world’s most trusted safety evaluation rating system

Hanwha Total received a level-8 rating from the International Safety Rating System (ISRS), and it is the first company in Korea to receive this rating from the ISRS. The ISRS is an auditable safety management system marketed by DNV GL, which is the world's largest classification society, and Hanwha Total has been recognized for its global level safety management. Hanwha received ISRS level-8 rating for the first time in Korea, and there are only nine companies in the world that have achieved this rating. Since there are no companies that have received levels 9 or 10 yet, the level-8 rating is the highest so far.

The 40 year-old ISRS evaluates a company’s overall management systems in areas such as safety, health, environment, and quality. After the evaluation, it rates a company from levels one to ten to prevent accidents and help manage losses. It is known as the most trusted safety evaluation rating system. Global companies such as GE, ExxonMobil, Chevron, and 23% of 100 Fortune companies are using this program to prevent accidents and manage losses.

Hanwha Total’s safety management system is being recognized so that companies in the same industry as well as in other industries in Korea could actively benchmark their standards. In order to increase the level of safety, the employees in charge and the top management are going to upgrade the areas of improvement according to the evaluation. The company is also going to strengthen the safety management of their partner companies who are working in the plant. Since last year, the company has placed safety managers in proportion to workers working in the factory. They also support their partner companies so that they can manage safety independently by providing all kinds of incentives, including prize money, to outstanding partner companies.

This year, Hanwha Total has adopted a safety rating evaluation systems for their partner companies for the first time in Korea. They expect their partner companies to prevent accidents, improve loss management, and establish a global top-level safety management system.

3. [Hanwha Group] The PyeongChang 2018 Olympic Torch, produced by Hanwha Corporation was unveiled

The PyeongChang 2018 Olympics torch, which was made by Hanwha Corporation, has been unveiled. It is designed so that the flame will continue to burn in Korea’s winter weather conditions, including strong wind and heavy snow. On February 9th, the torch was unveiled at the official countdown ceremony for the opening day. The torch is 700mm in length, representing the altitude of PyeongChang, which is 700 meters above sea level. It weighs 1.3 Kg and the top is made of steel and the rest of the torch is made of aluminum. The torch is designed with an upwardly-spiraling flame, and represents some cultural features of Korea, and the message of Olympic spirit which connects five continents into one.

One of the unique features of the torch is that it has four partitions. An umbrella shape cap is placed on the top of the torch, which helps rain to run outside of the burner system, minimizing the effects of heavy snow and rain.

The motif of the torch’s surface comes from traditional white porcelain, which has elegant lines and the color white which represents winter Olympics, a festival of snow and ice. The handle engraving of people holding hands with each other symbolizes all of the people in the world joining the torch relay.

Hanwha provided support with the fireworks for the Seoul Olympics held in 1988, and the company is going to provide them again for the opening and closing ceremonies of the PyeongChang Winter Olympics and Paralympics. Hanwha is going to sponsor 25 billion won in total, including about 8,000 torches, which are going to be used during the 100 days prior to the opening day.

We hope that the PyeongChang Olympic torch with its beautiful design and excellent technical features becomes a symbol that touches people’s hearts and delivers a message of happiness.

4. [Hanwha Corporation, Hanwha Techwin, Hanwha Systems, Hanwha Defense Systems] Hanwha’s Four Defense Companies jointly participated in the IDEX 2017, one of the largest international defense exhibition and conferences

IDEX 2017, the largest international defense exhibition and conference in the Middle East and Africa, was held in Abu Dhabi, the capital of the Arab Emirates, from February 19-23. About 1,200 companies from 60 different countries participated in the exhibition. Hanwha’s four defense companies set up an integrated display and sought opportunities to become a global defense company.

Four defense companies: Hanwha Corporation, Hanwha Techwin, Hanwha Defense, and Hanwha Systems displayed their main products at the International Defense Exhibition & Conference (IDEX) 2017 and actively carried out an overseas marketing campaign.

Hanwha Corporation focused on promoting their defense technology competence, which has reached the global level, and introduced a guided weapon called Chunmoo, and the newest weapon system called Korean Ballistic Aerial Target System (K-BATS), which can be used for evaluating the performance of an anti-aircraft defense missile.

Particularly, Hanwha Corporation Defense Division signed an MOU with Raytheon in America for a joint business project through offsets. This MOU is a result of purchasing the Korean Air Force’s medium-range air-to-air missile called AMRAAM. They are going to start developing a laser-guided bomb (GBU-12) for joint business ventures in the overseas market in the future, including the Middle East. Hanwha Corporation is going to supply MK-82 in this project.

Hanwha Techwin introduced a K9 self-propelled howitzer with two other models and a model of a K10 ammunition resupply vehicle. K9, which is recognized for its best performance in the world, was first exported to Turkey in 2001. After exporting to Poland in 2014, the company started targeting the Northern European market and Middle Eastern countries and continues to expand to the overseas market through aggressive marketing.

Hanwha Systems has a strategy to expand their overseas business through the development of export opportunities to strategic countries. For this, they introduced surveillance, reconnaissance, command and control, and communication products that function like a brain and sensory organs of a military weapon system such as electronic optics, radar, a combat system, and electronic warfare equipment.

Hanwha Defense introduced a real K21 infantry fighting vehicle and five models of a 105mm light tank and an armored wheeled vehicle. The company plans to expand their influence in the Middle East market with their surface-to-air and air-to-air system technologies, which have been accumulating for 40 years.

Through this exhibition, four defense companies expect to participate in the Saudi Vision 2030 Project. They are going to establish a foundation as a global defense company and target the overseas market by actively seeking new business opportunities in the Middle East and Africa.

5. [Hanwha Group] The Hanwha Finance Classic is promoted to a KLPGA major tournament

The Hanwha Finance Classic, which is held at Golden Bay Golf & Resorts every year, is not just a part of the KLPGA tour but has now become a world-class golf event. We are pleased to announce that the Hanwha Finance Classic has been promoted to a KLPGA major tournament starting this year. Since its beginning in 2011, the Hanwha Finance Classic has become the most want-to-win event among KLPGA players, with a total of 1.2 billion won prize money and 300 million won for the winner, which is the largest prize in Korea. KLPGA has decided to promote the Hanwha Finance Classic to one of the five official major tournaments of the KLPGA Tour, starting this year.

Since 1990, Hanwha Group had held the Hanwha Cup Seoul Women’s Open for eight consecutive years. Hanwha contributed to the development and revitalization of the women’s golf tour and helped discover many outstanding players in Korea as they have been succeeding in the Hanwha Finance Classic since 2011.

Hanwha Group is going to work hard for this event so that players can play at a top level suitable to a KLPGA major tournament and make the event an international event that represents Korea.

Headlines for February 2017

1. [Hanwha Group] Held a New Year ceremony for 2017

Hanwha Group held a 2017 New Year ceremony with Chairman Seung Young Kim on January 2nd, which was the first working day of the year. In his 2017 New Year’s message, Chairman Kim said that 2017 marks the start of “Quantum Jump”, and he emphasized that this is the time to remain committed to the dream of making Hanwha a global leader.

The chairman, vice chairmen, CEOs, and executive members attended the 2017 New Year ceremony and they committed to the new beginning with a strong pledge to make Hanwha a global leader.

Through his 2017 New Year’s message, Chairman Kim emphasized that Hanwha members must bolster the intensity of their innovation to ensure not only stability for today but growth for tomorrow in this climate with the market challenges we face.

“The winds of change, portending a new era and a new order are blowing aggressively across the world. The speed and power with which it will fundamentally change mankind in this climate of chaotic upheavals are nothing short of revolutionary. And with anticipation, we must ready ourselves with new thoughts, perspectives, and leadership suited for this new era.”

He also said that all employees have to redefine social roles and responsibilities to meet the demands of the new times while achieving not only economic success but also recognition in all other areas during this process.

Moreover, the chairman asked Hanwha members to devote their energy to upgrade business systems and secure new opportunities for growth by strengthening their core capabilities as they prepare for the rise of the world’s 4th industrial revolution. He demanded the elimination of outdated systems and suboptimal practices in order to help transform the company into a better Hanwha.

“We must reinforce the fundamentals and principles of corporate management that is aligned with the spirit of the new times. Outdated systems and suboptimal practices must be eliminated, and replaced with improved standards that can better drive Hanwha Group’s transformation.”

In addition, he pointed out that Hanwha members must adopt risk management that does not deflect from their goals even during the worst possible crisis. And he encouraged all of Hanwha employees to ensure unshakable financial stability and advance organizational resilience and core competitiveness.

“My dear Hanwha family, it is said that birds build their nests on a day when the wind blows the fiercest. Perhaps, they toil under such harsh conditions to build a house to make sure it will withstand even strongest gust of wind. We, too, must strengthen our company amidst the relentless gales of change that is gales of change that is blowing against us.”

Lastly, he asked all members to start the change with themselves and even shape the winds of change around them for the dream of making Hanwha a global leader and to begin this new year full of Hanwha’s energy and youthful passion.

After the New Year ceremony, each affiliate held a ceremony to kick off the New Year. Employees of Hanwha’s defense affiliates, Hanwha Corporation, Hanwha Techwin, Hanwha Systems, and Hanwha Defense, started their first working day in 2017 by visiting the Seoul National Cemetery.

About 130 employees, including Lee Tae-jong, CEO of Hanwha Corporation, Shin Hyun-woo, CEO of Hanwha Techwin and Hanwha Defense, Chang Si-kwon, CEO of Hanwha Systems paid their respects at the National Cemetery. And they showed their will to serve the country with the business by representing companies for the Korean defense industry in 2017.

2. [Hanwha Group] Participated in the World Economic Forum held in Davos, Swintzerland from January 17th to 20th

The World Economic Forum, which is also known as the Davos Forum, was held in Davos, Switzerland for four days from January 17th with the theme, “Responsive and Responsible Leadership.” Hanwha also participated in the forum again this year. Hanwha officials who attended the forum met with about 200 global leaders and strengthened Hanwha’s competitiveness for global core businesses in the future.

At the 2017 Davos Forum, Hanwha officials exchanged ideas with global economic leaders to institute responsive and responsible leadership so that they can better deal with the world’s 4th industrial revolution and neoisolationism.

Kim Dong-kwan, Managing Director of Hanwha Group Management and Planning H.Q. , Kim Dong-won, Head of Fintech & Innovation Center of Hanwha Life Insurance, Cha Nam-gyu, CEO of Hanwha Life Insurance, Shin Hyun-woo, CEO of Hanwha Techwin, Kim Hee-cheol, CEO of Hanwha Total, Kim Yong-hyun, CEO of Hanwha Asset Management attended the forum.

Hanwha set up an office space and named it “Hanwha Office.” It was located within a three minute walking distance from the main event center. The space was mainly used for hosting meetings with global leaders. They installed a sign board for Hanwha brands on the exterior wall of the office building where visitors coming to the Congress Centre could easily see it. The sign board helped introduce the Hanwha name as a global brand. There were five meeting rooms and a control room in the Hanwha Office. These meeting rooms were used as a place for network exchanges.

Kim Dong-kwan has been visiting the Davos Forum for eight consecutive years. This year, he focused on finding an appropriate direction for the company in preparation for the changes coming from the era of the world’s 4th industrial revolution along with the theme of this year’s Davos Forum, Responsive and Responsible Leadership.

Mr. Kim met with Lorenzo Simonelli, CEO of GE Oil & Gas, which is a global company in energy equipment. They shared their views on the future of the energy equipment industry. They also discussed ways to increase business cooperation between the two companies.

He also met with Matthias Zachert, Chairman of Lanxess, which is one of top five chemical companies in Germany. They discussed their common interests, such as lightweight composite materials for automobiles, and the future of the global chemical business in a low-growth situation.

Mr. Kim not only positioned himself as a global entrepreneur through networking with global leaders but also discovered future growth engines and made a forecast for global business at the Davos Forum.

On January 20th, which was the last day of the forum, he participated in a panel session called Energy Game Changer, which was held at Davos Congress Centre. He emphasized how Hanwha Q CELLS, one of the world’s number one solar companies, became one of the most innovative companies as he presented a case that showed the company’s efforts to double their competitiveness and innovation through an internal innovation and cooperation with partners.

Kim Dong-won, Head of Fintech & Innovation Center of HLI attended this year’s forum for the second time. He focused on finding information about fintech and the new order in financial markets. He discussed future growth engines in Asia with young entrepreneurs. He also met with Truong Gia Binh, Chairman of FPT, which is the number one software company in Vietnam. They discussed the possibility of participating in the development of customer support software for HLI Vietnam. They also exchanged information about start-up business areas in Vietnam.

Cha Nam-gyu, CEO of HLI has attended the forum for five consecutive years, and he focused on finding global finance business strategies. With Kim Yong-hyun, CEO of Hanwha Asset Management, CEO Cha met with Roger Crandall, Chairman of Massachusetts Mutual Life which is the parent company of Barings. They talked about how revenue increased in the life insurance market over the last nine years until 2015, and differentiated marketing strategies for bancasurance products offered by life insurance companies, brokers, and direct marketing. The CEOs also met with David Rubenstein, a co-founder of The Carlyle Group, the world’s largest investment company, and James Coulter, a co-founder of TPG Capital. They discussed the global economy, the forecast of private equity fund markets, promising investment areas, and investment strategies.

Shin Hyun-woo, CEO of Hanwha Techwin, figured out the Mega Trend during his first attendance at Davos Forum. He tried to establish a foundation of cooperation with global companies. Kim Hee-cheol, CEO of Hanwha Total, focused on figuring out global trends in the energy industry by attending various sessions with topics such as a carbon market, climate crisis, and forecasts of global energy.

Meanwhile, Hanwha Q CELLS held the Global Green Growth Institute (GGGI) Breakfast 2017 on January 19th. GGGI is supported by the UN. At this breakfast meeting, Kim Dong-kwan participated with KAIST professor Kim Sang-hyup and government officers who are in charge of energy policies in the U.S., Germany, Britain, and Malaysia. They discussed the future direction of environmental policy and new renewable energies.

Hanwha is going to actively respond to market changes with the global business management strategies and branding and marketing practices learned at this year’s Davos Forum. And Hanwha will continue to try to find ways to establish responsive and responsible leadership that can overcome the waves of the 4th industrial revolution and neoisolationism.

3. [Hanwha Engineering & Construction] Collected $598 million from the Iraqi government for the Bismayah new city development project

The Bismayah new city development project is one of Hanwha E&C’s large size core projects. They are building about 100,000 housing units and other social infrastructure projects. On January 2nd, Hanwha E&C collected $598 million from the Iraqi government for the Bismayah new city development project.

When you take the situation into consideration that the Iraqi government was having financial difficulties due to civil war and a slide in oil prices, this payment showed the Iraqi government’s strong will to complete the Bismayah new city development project successfully and serves as an expression of wholehearted trust in Hanwha E&C.

Last month, Choi Kwang-ho, CEO of Hanwha E&C, met with the prime minister Haider al-Abadi in Iraq. CEO Choi explained future construction plans and presented the residents’ level of satisfaction. The prime minister expressed his full support for Hanwha E&C, which is carrying out the project successfully. He promised to provide government assistance and full support for the remainder of the project.

Thanks to this payment, Hanwha E&C is going to reduce loans and improve the debt ratio through the increase of liquidity.

4. [Hanwha Group] Donated $2.6 million to Community Chest of Korea as part of social contribution activities

In this cold winter season, Hanwha Group is continuing to support and help our neighbors through various social contribution activities. In celebration of the New Year, Hanwha donated $2.6 million to the Community Chest of Korea to reach out to those in need.

Hanwha Group has been donating to the Community Chest of Korea every year since 2003. In order to overcome economic crises in Korea as well as overseas, and to participate in a sharing culture with local communities for win-win growth, Hanwha donated $2.6 million this year to the Community Chest of Korea.

At the donation delivery ceremony, Choi Sun-mok, senior executive president of the Hanwha Group communication team, said that Hanwha is going to serve as the light that shines into every dark corner of the world where there is suffering and neglect. And Hanwha is going to fulfill its social responsibilities as a corporate leader with the philosophy of ‘Going Further Together’

Headlines for January 2017

1. [Hanwha Advanced Materials] Held a completion ceremony of a factory in Mexico

Hanwha Advanced Materials is growing as a materials and components manufacturer for global automobiles with their networks throughout the world. In February, they set up a company in Mexico, the 8th largest country in the world for automobile manufacturing. In order to step up their business in the global market, they built a plant in Mexico, which is a strategic base for targeting the North American market, and held a completion ceremony.

Mexico is an automobile manufacturing base for North America and it is the fastest growing manufacturing country in Central and South America. In order to cope with automakers’ demand for global sourcing, Mexico is an advantageous location for securing an oversea manufacturing base. On December 1st, Hanwha Advanced Materials held a completion ceremony for their new plant located in Nuevo Leon, Mexico.

At the ceremony, about 100 people attended. These included Lee Sun-suk, CEO of Hanwha Advanced Materials, Samuel Pena, vice minister of the Ministry of Economy & Labor in Nuevo Leon, and people from Hanwha Advanced Materials’ partner companies such as Kia Motors and Hyundai Mobis.

CEO Lee expressed his appreciation to those who made the completion possible since setting-up the subsidiary in Mexico. He promised to do his best to supply the highest quality products to the automobile manufacturers.

Through the new plant in Mexico, we hope that the status of Hanwha Advanced Materials rises and their global business competence jumps up to the next level.

2. [Hanwha Life] Signed an MOU with Woori Bank to expand its business in South East Asia

The Korean Wave in finance is essential to the growth of financial companies. Hanwha Life Insurance (HLI), which has successful business bases in Vietnam, China, and Indonesia, signed an MOU with Woori Bank to expand their businesses in South East Asia.

On December 22nd, HLI and Woori Bank signed a MOU at 63 Building to explore global bancassurance and fintech markets together.

15 people attended the signing ceremony, including Cha Nam-gyu, CEO of HLI and people involved in this project. And they discussed localization of outstanding Korean bancassurance products, co-development of global bancassurance, fintech products and services, and promotion and marketing of their collaborative products.

HLI and Woori Bank are going to sell customized bancassurance products such as saving insurance, endowment insurance, group insurance, and credit life insurance to local customers in China, Indonesia, and Vietnam. And they are also going to work together in the fintech area by developing a system for insurance payment and insurance premiums as they utilize a simple money transfer system.

We look forward to seeing HLI and Woori Bank play important roles as they accelerate the expansion of their business in the South East Asian financial market.

3. [Hanwha Group] Held “2016 Hanwha Social Contribution Awards”

Hanwha has created the value of living together with the founding principle ‘Serving The Country Through The Business’ and the social contribution philosophy ‘Going Further Together’. Since employees voluntarily participate in service activities, the sincerity of their actions has been recognized in Korea as well as overseas. On December 15th, 2016 Hanwha Social Contribution Awards ceremony was held during a workshop attended by people who are responsible for Hanwha social contribution campaigns of each affiliate.

The 2016 Hanwha Social Contribution Awards ceremony was held at the Hanwha Resort Yongin Besancon. The ceremony was attended by Choi Sun-mok, a senior executive president and a head of the communication team of the Group, awards recipients, and people who are responsible for the social contribution campaigns of each affiliate.

The Busan Regional Office of Hanwha Life Insurance, who most well-executed the social contribution campaign during 2016, received the Grand Prize. The Outstanding Achievement Awards went to the Hanwha Galleria and Hanwha Corporation Explosive Division headquarters, and the Excellence Awards were given to Hanwha Chemical Yeosu Plant and Hanwha Hotels & Resorts Seorak.

After that, the awards for outstanding volunteers and contributors were presented. Business units that have shown outstanding results in volunteer services, programs, and company PR areas also received awards.

This year’s ceremony was more special because the award ceremony was held with the workshop of people who are responsible for social contribution campaigns. Many Hanwha members worked hard doing service activities in 2016. Congratulations to all those who received awards.

4. [Hanwha Techwin] Signed a contract for exporting K9, a self-propelled artillery, to Poland

K9, a type of self-propelled artillery with a maximum firing range of 40km, was developed by Hanwha Techwin and the Agency for Defense Development (ADD) in 1998. Since it was delivered to the Korean Army in 2000, it has been recognized for its quality, and 280 of them were exported to Turkey. On December 14th, Huta Stalowa Wola (HSW), a Polish state-run defense industry company, and Hanwha Techwin signed a contract in Poland for the second time to supply K9 hulls.

The total size of the contract is 260 million dollars. Hanwha Techwin is going to export 96 hulls of this self-propelled artillery starting in 2017 through 2023.

Last October, Hanwha Techwin completed shipping 24 vehicles, which were for the first contract signed in December 2014. The company was able to get more orders thanks to the successful fulfillment of the first contract.

Moreover, the company expects many more additional orders in the near future as they are going to participate in the vehicle modification business using K9 hulls.

Hanwha Techwin is currently working on the export of K9 self-propelled artilleries to several European countries as they use this exporting opportunity to Poland. They are also planning to increase their marketing efforts to expand business in the European market.

5. [Hanwha Group] Distributed braille calendars for visually impaired people

“I want people who are visually impaired to enjoy the New Year as much as we do”. Chairman Kim Seung-youn proposed making braille calendars back in 2000, and this year is their 17th year of production. We have warm news that Hanwha is distributing the 2017 braille calendars for the blind which they can read with tips of their fingers.

Hanwha is spreading non-discrimination culture through braille calendars. The company is going to print 50,000 copies of the 2017 braille calendars and distribute them to the Korea Blind Union, other related groups, and individuals for free.

The braille calendar project started in 2000 when a person who is visually impaired sent an email to the Chairman to ask for his help. They began by printing 5,000 copies the first year. And in 2009, 50,000 copies were printed which was the largest volume in Korea. The total accumulated number is about 620,000 copies.

Most of the braille calendar making process is done by hand. And the calendars go through a professional level of quality assurance by the blind people. Especially, the year 2017 calendars have improved quality so that it will be much easier to use.

To the blind, a braille calendar has more meaning than just checking dates. They used to have to rely on someone else for managing their schedule, but now they can take care of it themselves.

The New Year’s excitement is delivered through braille calendars. And we look forward to seeing the delivery of more stories in the world through them.

6. [Hanwha Advanced Materials, Hanwha Chemical] Held “2016 Project Progress Review” for the second half of 2016 and “Science Day” respectively

In order for a company to grow in the age of limitless competition, the importance of R&D is increasing since we need to improve competence through continuing study and research and get closer to customers with differentiated products. Hanwha Advanced Materials held its 2016 Project Progress Review (PPR) for the second half of the year. And Hanwha Chemical R&D Center held a Science Day event. Let’s meet these Hanwha researchers who will make our future bright.

Hanwha Advanced Materials held a Project Progress Review (PPR) session for the second half of 2016 on December 7th at their Lightweight Composite Materials Center to collect opinions for the direction of research and to share the performance of their research projects.

At the session, they introduced the Lightweight Composite Materials Center, Electronic Materials R&D Center, and Solar Materials Center. They also discussed the research direction for next year and reported on the performance of each center’s study topics. Through the session, they gathered various opinions on how to improve efficiency of those study topics.

CEO Lee Sun-suk emphasized that the company has to strengthen its R&D competitiveness by improving the competence of individuals and teams in each center since the advanced material sector is a technology-intensive business. He also said that the company has to respond proactively to the global sourcing demand and the standardization of components for Korean automakers as well as global automakers.

Hanwha Chemical R&D Center held a Science Day on December 5th and all researchers, including a head of the R&D Center, attended.

At the Science Day, there were two parts: Poster Section and Innovation Technology Workshop. In the Poster Section, attendees discussed the progress and status of projects conducted in 2016 and the difficulties they had faced during the research and development process. At the Innovation Technology Workshop, they discussed new research projects they are continuously exploring and solutions to existing research items.

We look forward to seeing them exchanging information among Hanwha Chemical researchers and actively communicating through the Science Day so that they can establish a new research innovation culture.

Headlines for December 2016

1. [Hanwha Group] Chairman Seung Youn Kim met McAuliffe, the Governor of Virginia in the U.S.

Chairman Seung Youn Kim began checking businesses in the U.S. as Trump’s reign is coming up. He met with Terry McAuliffe, the governor of Virginia, who advocates South Korea on various issues. They discussed important issues such as policy changes and a ripple effect on the environmentally friendly and renewable energy sectors as well as new and renewable energy policy in Virginia.

On November 16th, Chairman Kim Seung-youn met with Terry McAuliffe, the governor of Virginia, at the headquarters building.

This meeting was arranged because the governor wanted to visit and express his appreciation since Hanwha has a factory in Virginia. Hanwha Azdel, which is a lightweight composite material subsidiary of Hanwha Advanced Materials, is located in Virginia. The company is supplying products to GM, Ford, and Chrysler.

At the meeting, the chairman and the governor discussed the business partnership between Hanwha and Virginia state. And they exchanged their thoughts on economic cooperation and diplomatic measures between Korea and the U.S.

Besides the topics on business, the chairman asked the governor for advice on issues such as Trump’s pledge to strengthen U.S. protectionism and renegotiation of FTA between Korea and the U.S. since Korea is highly dependent on trade with the U.S.

The chairman Kim said that Hanwha currently has a lot of money invested in Virginia state, and Hanwha is going to make opportunities to grow together through more economic cooperation with Virginia state.

Governor McAuliffe also expressed his appreciation by saying that he is grateful for Hanwha’s investments in Virginia, and the state will continue to provide support for Hanwha. They closed the meeting by confirming each other’s expectations of having a continuous alliance.


2. [Hanwha Group] Held 2016 Chungcheong Marathon with Hanwha

Hanwha family members, have you ever participated in a marathon? It is a great way to have a sense of accomplishment and make your body strong as you run a long distance. Hanwha is sponsoring a special marathon event to share many positive things about running a marathon with people. Let’s check out where the 2016 Chungcheong Marathon with Hanwha was held.

The morning with a pleasant autumn breeze at Sejong Lake Park. We can see many people stretching. They are marathoners who will participate in the “2016 Chungcheong Marathon with Hanwha”. Hanwha employees, their families and people from all over the country including local residents gathered here for the event.

This marathon event was sponsored by Hanwha and hosted by the Daejeon Ilbo. In attendance at the opening ceremony were Kim Shin-youn, CEO of Hanwha Eagles, Lee Sun-suk, CEO of Hanwha Advanced Materials, Choi Sun-mok, the head of the communication team of Hanwha Group, and officials from local governments.

3. [Hanwha Techwin] Opened aviation engine parts plant

Hanwha Techwin held a completion ceremony for their new factory for manufacturing aircraft engine parts at their Changwon #2 plant on November 1st. They are now ready to expand their aircraft engine parts business to the global market. They also celebrated shipping out 8,000 engines for fighter jets, helicopters, and navy vessels at the same time.

At the ceremony, about 180 people including Shin Hyun-woo, CEO of Hanwha Techwin, Brian Yoder, a director of purchasing of GE, officials from Rolls Royce, Pratt & Whitney (P&W), Korea Aerospace Industries (KAI), military personnel, and Hanwha Techwin’s partner companies attended.

The new factory for engine parts covers about 13,752 m2 floor space. Hanwha Techwin is going to provide manufacturing parts for GE’s next generation aircraft engine LEAP in this factory. And the company expects to generate 430 million dollars of revenue in the future.

The CEO Shin said that the company now has a highly efficient manufacturing system for the next generation engine parts and is going to strengthen its manufacturing competence for the engine business. He asked to seek more business opportunities and hoped that the factory will serve as a backbone of business expansion.

Subsequently, they celebrated the shipping of 8,000 gas turbine engines. Hanwha Techwin started the engine manufacturing business in 1979. They have shipped out 8,000 engines over 37 years.

With the ceremony for the new factory and shipping of 8,000 engines, the company plans to become a global engine manufacturing company with leading-edge technologies and the best products.

4. [Hanwha General Insurance, Hanwha Total Petrochemical, Hanwha Chemical] Received awards at the National Quality Management Convention for contributing to quality management

The importance of quality management, which is about winning customers’ loyalty through improving products and service quality, is being emphasized more than ever before. The National Quality Management Convention is held every year to promote activities for innovating quality control and strengthening industry competence. At this year’s convention, Hanwha General Insurance, Hanwha Total, and Hanwha Chemical were awarded.

On November 23rd, the National Quality Management Convention was held at Coex in order to award the people who have contributed to quality management in manufacturing and service industries. Hanwha General Insurance, Hanwha Total, and Hanwha Chemical were awarded this year.

Park Yun-sik, CEO of Hanwha General Insurance, received a President’s Commendation for national quality management for organizations. The company was awarded because all employees shared the company’s long-term visions, and they created a new shared value for customers by harmonizing the company’s economic and social values.
Yoo Seong-nam, a senior assistant manager from Hanwha Total LLDPE Plant was awarded for a national quality master award. His efforts in leading a construction project and its operation, and his innovation activities for the company were recognized.

There were also awards given to quality control teams. At the National Quality Control Team Competition, Hanwha Total’s Bull team and RPM teams received gold award and the Hwaseong team received a silver award.

And Lee Ki-eun, an assistant manager of Hanwha Chemical, received a Prime Minister’s Commendation for individuals. He put a lot of hard work in quality management activities such as quality improvement, cost reduction, and production improvements.

We congratulate those who received the awards and look forward to seeing their continued efforts in innovation and quality management.

5. [Hanwha Chemical] Successfully issued 20 million yen Samurai bond

Did you know that a global bond has a nickname just like we have nicknames? Along with the Yankee bond in the U.S., the Bulldog bond in the U.K., and the Panda bond in China, the Samurai bond is one of major bonds traded in the international financial markets. The Samurai bond refers to a bond that is issued by a foreign government or a company denominated by Japanese yen in the Japanese bond market. Hanwha Chemical has successfully issued about 20 million yen worth of Samurai bonds.

On November 2nd, Hanwha Chemical successfully issued 20 million yen (220.6 million won) worth of Samurai bonds. This was their first offering of public bonds in a foreign market.

Some public and financial companies have issued them before, but this is the second time a private company issued Samurai bonds since Samsung Electronics in 1996. The bond has a fixed rate of 0.72% and a three-year maturity date.

The successful offering of a bond targeting Japanese investment institutions with conservative tendencies on a large-scale, long-term basis is the result of a positive evaluation of stable performance in the petrochemical industry as well as the constant growth of solar business.

Through issuing the Samurai bonds, Hanwha Chemical expects to see a financial cost reduction as well as a stable cash inflow.

On November 11th, a closing ceremony for a final confirmation of the Samurai bond offering was held at Mandarin Hotel in Tokyo. In attendance were Kim Chang-bum, CEO of Hanwha Chemical, Masahiro Goto, CEO of Nomura Securities and Masami Yabumoto, CEO of Morgan Stanley Securities, the underwriters in Japan. They promised to maintain strong relationships between the companies and closed the ceremony successfully.

6. [Hanwha Corporation/Trade] Held 2017 Overseas Network Sales Strategy Meeting

Hanwha Corporation Trade Division is running their businesses with a global network composed of 10 subsidiaries and 19 overseas branch offices. To create synergy through closer communication, employees who are working in the headquarters and overseas branch offices got together in one place.

On November 24th and 25th, Hanwha Corporation Trade Division held the 2017 Overseas Network Sales Strategy Meeting. About 40 employees who are working in headquarters and overseas branch offices attended the meeting.

Lee Min-seok, CEO of Hanwha Corporation Trade Division took office last October. This was the first strategy meeting since then. Employees from a total of 23 subsidiaries and branch offices gathered in one place. The meeting began with the CEO’s opening speech, and they discussed the company’s 2016 performance, plan for 2017, each subsidiary/branch office’s new business results and their plans, and cooperative business plans among subsidiaries.

In addition, Hanwha’s four defense affiliates also participated in the meeting. They introduced businesses in strategic overseas markets and had an opportunity to deliver important messages to the global sales offices.

At the meeting, CEO Lee Min-seok pointed out the importance of expanding synergy among petrochemical and defense affiliates and leadership in the organization. He promised to lead by example and encouraged those who are working abroad.

Hanwha Corporation Trade Division plans to handle all Hanwha’s trading businesses by becoming a trading expert with actively utilizing their global networks.

Headlines for November 2016

1. [Hanwha Group] Chairman Seung Youn Kim invited long-term employees to the 2016 Seoul International Fireworks Festival to commemorate the 64th anniversary together

October 9th was the 64th Anniversary for Hanwha. A day prior to the anniversary, the 2016 Seoul International Fireworks Festival with Hanwha was held in Yeouido Hangang Park. Chairman Seung Youn Kim invited employees to the festival who have worked for 30 years and congratulated them for their dedication. They watched the fireworks together.

On the 64th anniversary, the chairman invited employees who have worked 30 years for Hanwha to the event to congratulate them. The event was held on the deck of a cruise ship on the Hangang River.

The chairman said that he was able to try harder because these employees were there with him, and Hanwha was able to become what it is today thanks to all the hard work the employees had performed.

He also asked them to lead their colleagues with their years of experience and examples.

And then the chairman gave medals and plaques to these long-term employees including Kim Shin-youn, CEO of Hanwha Eagles. The chairman took pictures with each of them and congratulated them for their contribution to the development of Hanwha with their trust and loyalty for 30 years.

As soon as the cruise ship with the participants arrived at the event, the fireworks began.

After the Japan and Spain team’s performances, did you know that the Korea team’s fireworks represented by Hanwha Corporation started with the chairman’s command this year? The fireworks representing Hanwha members’ soul illuminated the night sky of Yeouido Hangang Park. The attendees made a wish for the bright future of Hanwha as they watched the fireworks.

2. [Hanwha Group] The 2016 Seoul International Fireworks Festival with Hanwha was held on October 8th

The 2016 Seoul International Fireworks Festival with Hanwha was more meaningful and generous because it celebrated the 64th anniversary of Hanwha. Happening only one day a year, the fireworks decorated the night sky around the Hangang River like magic and it was truly amazing. They used new technologies such as Two Step UFO fireworks and a 3D pop-up book video to show the magnificent spectacle. This fireworks festival added energy to people’s lives. Let’s take a look.

On October 8th, Yeouido Hangang Park was filled with people who expected to see the splendid fireworks in the early hours of the day. Over one million people including the winners of the Golden Tickets Event attended. People with blankets and shade canopies all gathered to see the Seoul International Fireworks Festival.

Since we get to see the festival only once a year, people’s anticipation had grown. Moreover, the company invited global reporters of Hanwha affiliates this year. They enjoyed the fireworks together and developed teamwork.

INT) I’ve never heard (of this) before to be honest, but I am happy that I have an opportunity to come here. Today my colleagues from the HQ told me that it will be a great experience. They are jealous. I am here and they are not. So I am looking forward to a great evening.

The 2016 Seoul International Fireworks Festival with Hanwha is one of Hanwha’s major social contribution programs which has been active since 2000 and has the slogan, ‘Sharing Of Hope Through Flames.’ This year, Japan, Spain, and Korea participated, and they used over one hundred thousand fireworks to put on an amazing show in the night sky.

Since the festival attracted over one million people, the single most important thing was safety. Hanwha, Seoul city, the police, the fire department, the municipal government, and Hangang Project Headquarters worked together to make the event safe. This year they placed safety personnel in the Ichon area opposite of Yeouido, on the Mapodaegyo Bridge, and the bike trail on the southern part of the Hangang Railway Bridge.

The sun finally set around seven in the evening. The people who gathered in the Yeouido Hangang Park were filled with excitement. On the deck of Paradise where the official event was held, Cha Nam-gyu, CEO of Hanwha Life Insurance, Choi Yang-soo, CEO of Hanwha Corporation Explosive Division, Park Won-soon, the mayor of Seoul city were present.

The splendid fireworks began with a countdown.

This year, the Hanwha Corporation team, Tamaya Kitahara from Japan, and Pirotecnia Ingual team from Spain participated.

The first fireworks were displayed by the Japanese team that has won many awards and fascinated people around the world. Their fireworks showed Japanese style remarkable colors with the theme “Turn Your Magic On”. They were especially powerful and meticulously done with master craftsmanship.

The second fireworks were displayed by the Spain team which was invited for the first time. They put the fireworks together for the opening ceremony of the Rio Olympics. So many people were interested in their performance. Their theme was “Magic Light Dreams”. They expressed unique passion and intensity and their fireworks appeared to be dancing to the beat of the music.

The Korea team performed the finale. They upgraded their show by integrating fireworks and storytelling. With the theme “Magical Fireworks”, a story of a fireworks magician who came to fulfill wishes and deliver fireworks as gifts was told and it touched everyone’s heart.

What do you see?

It’s amazing to see what they can do with fireworks. They blew everyone’s mind by displaying exciting and amazing fireworks such as Two Step UFO, tower, and volcano fireworks.
Moreover, a barge was set up a between Mapodaegyo and Wonhyodaegyo Bridge to display fireworks on a grand scale in the Yeouido area. They have proved once again that the festival is one of the major annual events in Korea.

While the festival was going on, about 650 Hanwha employee volunteers carried out various tasks. They cleaned up the Park working until after midnight. Their effort made the festival more successful.

The 2016 Seoul International Fireworks Festival with Hanwha ended successfully again. It was memorable for everyone.

3. [Hanwha Corporation/Machinery] Signed aircraft control system development for KF-X contract

Hanwha Corporation Machinery Division has signed a contract to develop the main parts for aircraft control system, Flight Control Integrated Servo Actuator (FCISA) and Leading Edge Flap Actuation Systems (LEFAS), for the Korean fighter jet KF-X with Korea Aerospace Industries (KAI) and held a kick off meeting.

On October 19th, Hanwha Corporation Machinery Division held a kick off meeting for KF-X FCISA/FEFAS at the Asan #1 plant. Park Sang-joon, a head of Hanwha Corporation Aerospace R&D Center, team members, and officials from KAI attended the meeting.

The cutting edge technology parts (FCISA/LEFAS) are installed on the front of the wings and precisely control the movement of an aircraft as they are getting signals from the flight control system.

The company is expected to have a total of 628.5 billion won revenue through this contract from the production, export opportunities, and supplying of other parts, and it includes 52.5 billion won for R&D costs. Including the landing gear contract signed last April, the accumulated contracted amount is 92 billion won, and about one trillion won revenue is expected all together.

Hanwha Corporation Machinery Division now has an opportunity to design, develop, and manufacture the two core aircraft control systems along with the landing gear for KF-X. They plan to develop the system successfully within the development period and assist with the testing flights so that they can establish the total defense support systems which is needed to operate the fighter jets.

4. [Hanwha Life] Opened DREAMPLUS 63, a FinTech startup incubator

Hanwha Life Insurance opened a fintech center for the first time among life insurance companies in Korea. 11 fintech start-ups have moved in to the center, and they are going to develop various business models so that synergy with financial companies in asset management, financial product trade, and security can be effectively utilized.

HLI held an opening ceremony for DREAMPLUS 63, which is a business development center for fintech. They are going to provide an office space for start-ups and support forming business partnerships. The fintech center is a new model of HLI’s social contribution program to revitalize the fintech eco-system and youth employment.

At the opening ceremony, about 200 people, including Cha Nam-gyu, CEO of HLI, Park Yun-sik, CEO of Hanwha General Insurance, Yeo Seung-joo, CEO of Hanwha Investment, and other CEOs of the affiliates attended to congratulate DREAMPLUS 63 on its new beginning.

HLI Fintech Center is the largest fintech center in Korea, using about 3,000 square meters of the entire 4th floor of 63 Building. There are independent office spaces for 11 start-ups, a multi-purpose event hall that can hold over 150 people, two large conference rooms, and six small conference rooms.

Moreover, HLI has assigned supporting teams for each start-up, and they will support the formation of business partnerships with financial companies.

For those start-ups interested in expanding in the Asian market, HLI will introduce Hanwha’s local partners using their global networks. They will also provide the necessary support for localization, such as an interpretation and legal document reviewing services.


5. [Hanwha Group] The Hanwha Global Communications Workshop was held on October 10th

The total number of employees and the global network have both increased since Hanwha expanded to the global market. Hanwha Global Reporters are responsible for the communication channels among the affiliates overseas. These reporters from around the world who are responsible for Hanwha Newsletters got together in one place. Let’s check it out.

It’s looks like a familiar place, but it’s a little strange. This is the HQ building in Janggyo-dong where the Hanwha Global Communication Workshop was held on October 10th. This workshop was held for four days. 25 Hanwha Global Reporters from nine affiliates and 25 overseas branch offices, including Hanwha Corporation, Hanwha Techwin, Hanwha Q CELLS, Hanwha Life Insurance, etc., and 13 local reporters from Korea were invited.

As globalization of Hanwha accelerates, the effective communication with 226 global networks and 14,577 overseas employees, which account for 27% of the total employees, became more important. Hanwha Global Newsletter is serving as a communication channel. Through this, employees working overseas can get the latest Hanwha news, and they can feel a sense of belonging and pride.

This Hanwha Global Communication Workshop started early in the morning. Shall we follow them?
First of all, as a part of the Get To Know Hanwha Program, they learned the history of Hanwha, the core values, and the major businesses. They also learned about Hanwha brand management and had on-the-job training since they are the hands-on staff of the newsletter.

The reporters were most interested in sharing successful cases and in a discussion session. Four global newsletter reporters from Hanwha Techwin America, HLI Vietnam, World Resort Saipan, and Hanwha Q CELLS were selected as outstanding reporters. They shared their cases and know-how with other reporters.
During the free discussion time, they came up with solutions to some of difficulties they had faced.

Can you see the energy in the eyes of the reporters who are representing their own branch offices overseas?

They also visited Hanwha Historical Museum where they learned the beginning of Hanwha and its history. They paid attention to the stories, and they were proud to be a part of history.

I was able to learn a lot at this Hanwha Museum where Hanwha started. I was also able to see the first chairman’s hard work and his efforts as well as the employees who had worked with him.

(But) seeing the museum and the peacefulness of it, it gives you much better impression of Hanwha. It really helps to understand how the company originated and really what it has achieved in its life time. So it’s very impressive and it’s a place I’d like to come back and visit again.

They also visited business sites of Hanwha affiliates. They looked around Aqua Planet 63 and Galleria Duty Free and saw Hanwha’s various business areas. Later, they had an opportunity to visit the headquarter offices of each of their own companies and met with their counterparts whom they had previously communicated only by telephone.

The global reporters from Hanwha Q CELLS had a special chance to meet with other groups that attended Hanwha Q CELLS Marketing and Communication Workshop from different overseas branch offices. They were busy discussing future plans with other members.

Meanwhile, they also had an opportunity to experience Korean traditional culture. On October 8th, they saw the fireworks that decorated the night sky. It was an unforgettable first-hand experience to see the native explosive business of Hanwha through 2016 Seoul International Fireworks Festival with Hanwha. Also, through visiting Gyeongbokgung Palace at night, they made lasting memories of Korea.

The driving force in increasing the competence and the fundamentals that accomplished One Hanwha was the eloquent communication among all members of the company.

Through the Global Communication Workshop, these global reporters will share the news of their own branch offices overseas more actively. We look forward to seeing sharing of our global culture.