2019 New Year's Message from Chairman Kim

Dear Members of the Global Hanwha Family,

On the cusp of 2019, we find ourselves greeting one another from different parts of the world – I’ve no doubt that it is with the common joyful spirit and hope we each feel in our hearts. To this, I add my wish for you all to have greater progress and success this year.

The world is already moving beyond the Fourth Industrial Revolution, as the depth and breadth of changes are portending another industrial revolution. Competition will become fiercer as everyone prepares for the future. The business sectors we are in can disappear while sudden changes in those we are not can be disrupted and destroy our core businesses overnight.

I am certain that the next decade will also be a time of revolutionary change for Hanwha, more so than the last 66 years. We must prepare for this period right now. It must be very clear and without doubt that what we do now, matters; the survival and future growth of Hanwha depends on it.

Every one of you are critical to the preparations that must follow but it is through taking actions collectively, that we will succeed. Here’s what we must do:

We must accelerate our global expansion across industries.

Back in 2007, Hanwha held a global strategy meeting in Thailand where I stressed the importance of international business development. Since that meeting, we made significant progress expanding our global scope. There is, however, still more to be done. Our global expansion must be sustainable and we must grow our profits over time based on good decisions and principles. Our expansions cannot cost our customers or hurt our businesses long term. We must not repeat past mistakes where we’ve suffered losses after moving in too quickly into a sector without the right competitive edge. Nor can we fail because we misidentified the needs of the target market. We must avoid mistakes by conducting proper due diligence and do what is right. Only then, can we replace or overshadow our shortcomings with core competencies that make us strong, and make us globally competitive in any industry we choose, in any industry we’re in.

This past December, I visited Vietnam and attended the grand opening of Hanwha Aerospace’s new local aircraft engine parts manufacturing plant. It marks a new beginning for the company in terms of investments and alignment to our globalization plan. With Hanwha Life Insurance, Hanwha Techwin and Hanwha Energy already operating in the country, I see Vietnam as a vital base for our global operations that will help us achieve future success.

We will hire new talent to drive our future growth.

The role that talented individuals will play as innovative leaders for the new businesses of the future is expanding day-by-day. By infusing new talent across our organization, we’ll be able to create new ideas, identify new business opportunities, and capitalize on them to grow. At the same time, we will continue to nurture and develop our existing talent. Through collaboration between new and experienced employees, we’ll be able to raise our levels of expertise and create a synergy that will be critical to our work going forward.

We will bring our corporate compliance up to global standards.

Every business activity at Hanwha must adhere to the highest ethical standards based on trust and loyalty. This is the most important principle for me. In this vein, we must reexamine our business practices from purely an objective perspective; we must be on the outside, looking in. Our Compliance Committee, formed last year, will be our watchdog to rigorously monitor our efforts and ensure corporate transparency. We must remember that our customers and partner companies are also members of our corporate family, who believe success is through Hanwha’s philosophy of “Going Further Together.”

Last year, the Korea Aerospace Research Institute conducted a successful test launch that sent a Nuri rocket, also known as Korea Space Launch Vehicle-II, into space, bringing Korea ever closer to becoming a spacefaring nation. This historic moment was made possible through Hanwha’s cutting-edge technological capabilities – it serves as a great source of pride for us. I hope that all of Hanwha’s business units will be able to similarly contribute to a sustainable future, benefit humanity, and provide hope and pride for all.

At Hanwha, we’ve had a long history of remarkable achievements overcoming great challenges amidst constant change. Let us not stop or break stride. Let us continue to ride the winds of change and fly higher on the winds of opportunity. Let us step forward and embrace the future with confidence.

Here’s to a wonderful and happy New Year to you and your families.

January 2, 2019

Seung Youn Kim
Chairman
Hanwha Group