Chairman’s Message Commemorating
Hanwha Group’s 66th Anniversary

Last Saturday, dazzling fireworks lit up the autumn night sky over the Hangang River as Hanwha Group hosted the annual Seoul International Fireworks Festival.

Seeing the brilliant bursts of colors and shapes come together in a spectacular display, I was reminded of the countless members of the Hanwha family who've worked together to help Hanwha Group grow in the last 66 years. And I am humbled and grateful. Please let me take this moment to express my gratitude to all of you in the Hanwha Community. I would also like to thank our partner companies, our esteemed founder and all the members of Hanwha Group who preceded us.

The challenges that members of Hanwha went through 66 years ago marked also the historical beginning of Korea's impressive industrial growth. The indomitable entrepreneurial spirit that led Hanwha to localize dynamite during the Korean War, is the same engine that drives us now to build an entire city in the middle of a desert. This spirit has guided us to passionately pursue clean energy solutions around the world, secure people's safety, and pioneer the future of digital finance. It has been an era of new waves and a revolution; however, we must never stop exploring and innovating if we are to become the leader across industries.

This past August, Hanwha Group announced its mid to long-term management strategies for continuous growth to both internal and external stakeholders. Over the next five years, we will invest in our core businesses, create jobs, and develop mutually beneficial partnerships. This is to fulfill an ongoing commitment to our society, which will at the same time help us address domestic and overseas business challenges as we push the boundaries of what we can do. And by strengthening our foundation, we are setting the stage for future growth - an era when Hanwha Group can achieve 100 trillion Korean Won (88.5 billion USD) in sales.

It is said that there is no end to a journey of innovation. I am convinced this is true but I also know that innovation must be accompanied by resolute adherence to strong business fundamentals and continuous work to keep up with the changing times. This is why at the beginning of 2018, I stressed that we must implement company-wide improvements to our corporate structure so that we can better cope with rapid changes in our business landscape. We have undergone reorganization to be more self-sustaining and have delegated more responsibilities to our subsidiaries so that they are empowered to react and adapt. We must constantly innovate and update both our hardware and software capabilities as befits a 21st century company.

So, to stay true to our values and improve in all that we do, we need to acquire talent to advance and lead our organizational culture through the Fourth Industrial Revolution. From corporate leadership all the way down to each and every single individual, we must adopt this spirit and transform ourselves to become a truly global innovative company.

Innovation comes from a culture of diversity, not homogeneity.

Over the last 66 years, Hanwha Group has built the foundation for future growth through numerous M&As. In doing so, people from diverse backgrounds have come together, compensating for one another's shortcomings while enhancing one another's strengths. A flat organizational culture, where new ideas are freely given and welcomed, will become more and more important in the Fourth Industrial Revolution. Creative energy and genuine innovation can only come from diverse perspectives and experiences. Open meritocracies will become the cornerstones for greater prosperity.

We must embrace challenges that come our way and be more afraid of relying on our successes than failing in our efforts.

Had our founder been hesitant and afraid to fail 66 years ago, there would not have been Hanwha Group today. Looking back 20 years ago or even just 10 years ago, we can see how dramatically we have changed. Though there were times of extreme struggles and difficulties, who we are today is the result of those changes and incessant challenges we faced in the midst of highs and lows. A successful organization capitalizes on failures by learning from them to transform and leap towards tomorrow's opportunity, instead of resting on the laurels of yesterday's success.

Silicon Valley became a modern miracle through an innovative mindset that considered failure as just something you encounter on the way to success. We must adopt this mindset by constantly asking ourselves what it will take to transform the Hanwha Group 10 years from now. What will it take to secure the knowledge and technology necessary to create future value? Remember, the greatest successes come from the failures that stopped others from continuing.

Let's not compete against one another to win, but collaborate to succeed together.

Today, working together is more important than ever. Even in a competitive environment, we must develop a culture that encourages cooperation and collaboration. We must move forward towards success together. Our belief and faith in one another will become our core competency, something that our competitors will have difficulty emulating.

Our newly established Fair Partnership Management Committee was formed to deliver our promise to grow together and build a partnership that is fair and transparent. We'll start by transforming our internal culture and forming a new corporate ecosystem designed to create win-win solutions.

Dear Hanwha Family!

I write to you as we enter autumn with the belief it can still be spring for Hanwha. Our accomplishments in the last 66 years are just the beginning of a bold journey ahead. My heart races with excitement to know that there will be many more challenges to face and goals to reach. So, let us now prepare for this brave new world, this undiscovered country. The work we must do now may seem daunting, but we must do so with fortitude and plant the seeds today to bear the fruits tomorrow.

It's been a great journey. Think about how we got here today - it's inspirational. Our journey, however, must continue, and we must persevere because what lies ahead will be nothing short of amazing. Together, let us regard today as the first day of a new beginning that I hope someday, far into the future, we can look back to it as meaningfully as we do the last 66 years.

Thank you very much.