Young chairman leads surge of Hyosung Group
This is the third of a series highlighting best-performing chief executives in Korea. _ ED.
When Hyosung Group introduced a holding-company system in June last year, some suspected whether or not the new format would take firm root in the near future.
Spearheaded by Chairman Cho Hyun-joon, however, the group silenced critics once and for all by chalking up outstanding performances over the past year.
The Seoul-based conglomerate, which operates in such fields as chemicals, machinery, IT, trade and construction, split into five companies with Hyosung Corp. becoming the holding firm.
Chairman Cho became the chief executive of Hyosung Corp., which controls four spun-off affiliates of Hyosung TNC, Hyosung Advanced Materials, Hyosung Heavy Industries, and Hyosung Chemical.
Hyosung completed the conversion to the new structure late last year through in-kind investment and capital increases.
Thereafter, the outfits have fared well as amply demonstrated by the stellar performances during the first half of this year.
Hyosung Corp. racked up 1.68 trillion won in sales over the first six months of 2019, up 24 percent from a year ago. Its operating profit soared 233.8 percent to 145.8 billion won.
In particular, Hyosung subsidiaries cruised well in the second quarter.
Hyosung TNC, which is engaged in the production and sale of textiles, saw its operating profit jump 58.5 percent to 92.4 billion won over the three months.
Hyosung Heavy Industries’ operating income also jumped 40.5 percent to 59.3 billion won.
Original Hyosung units like Hyosung TNS, formerly Nautilus Hyosung, also joined forces to buttress the prominent bottom lines of Hyosung Group.
The company, a leading provider of financial and retail ATM solutions, recorded 485 billion won in sales during the January-June period, up 46.9 percent year-on-year.
Its operating profit skyrocketed 323.2 percent to 50 billion won.
Against this backdrop, observers come up with positive prospects on the future of the group.
“The market consensus is that Hyosung successfully launched the holding company system. At a time when the overall economy is not good, its subsidiaries come up with handsome profits,” a Seoul analyst said.
“It is an impressive exploit. Hyosung Chairman Cho’s unique leadership appears to work to a large extent as the young leader proactively seeks for fast growth through various efforts.”
Chairman Cho took charge of Hyosung in 2017. Under his stewardship, the group has briskly waded into global markets and expanded its business horizon.
The 51-year-old, who studied at Yale University, is dubbed as one of the most prominent young entrepreneurs in Korea.