Published : Oct. 6, 2011 - 16:31
Hanwha Group announced on Thursday that it has selected seven projects aimed at facilitating mutual growth with smaller companies.
According to the group, the core of its mutual growth model is divided into three themes ―shared-growth, environment and welfare. Projects concerning supporting suppliers, environment-oriented social contribution, establishing a social foundation and divesting interests in fields considered suitable for SMEs are all elements in the overall scheme.
The group plans to reduce the number of its subsidiaries, and pull out of businesses considered more suited to small- and medium-sized enterprises, despite the “considerable reduction in sales” that will be brought on by the changes in order to facilitate mutual growth, the company said.
Under the plans, the operations of eight subsidiaries will be scaled down through mergers and liquidations. The group added that actions regarding three of the eight will be completed during this year, and the remainder will be completed by 2014.
Hanwha Group did not name all the companies that will be affected by the measure, but said that Prudential Investment and Securities Co. and Cheongnyangni Station will merge with other parts of its operations, and that a number of subsidiaries including Daedeok Techno Valley are slated for liquidation.
Regarding its projects to help suppliers, Hanwha said that a number of programs including financial and IT support, and providing suppliers with business opportunities are currently being reviewed.
Hanwha Group chairman Kim Seung-youn talks to CEOs of the conglomerate’s affiliates. (Hanwha Group)
The company added that it plans to expand its shared-growth fund to 100 billion won ($84 million) within the year, and set up a 200 billion won fund through Hanwha Venture Capital.
The group’s IT services provider Hanwha S&C will develop business software free of charge for Hanwha Corp. and Hanwha Chemical’s suppliers, while Hanwha Engineering and Construction plans to aid suppliers in entering the Iraqi market once the company’s urban development project in the country begins.
Hanwha S&C plans to offer such services to two companies this year, and provide similar support to 18 companies in the following two years.
Regarding environmentally friendly social contribution, the group said it plans to spend 15 billion won over 10 years starting next year to fit solar power equipment at 500 welfare facilities. This year the conglomerate plans to spend 850 million won to outfit 30 welfare facilities with solar power equipment.
“Hanwha will also select 15 or so environment-related social enterprises by the end of next year and provide a total of 3 billion won on an annual basis,” the conglomerate said.
As part of the plans, Hanwha Group plans to set up a foundation to orchestrate the group’s social contribution projects. The foundation will also conduct medical and welfare projects, as well as cultural and educational programs for the underprivileged.
According to Hanwha Group officials, the conglomerate has in place a number of projects to fulfill its social responsibility prior to the selection of the seven projects.
The group said that as part of its efforts to contribute to solving employment problems, it expanded this year’s recruitment quota for high school and university graduates to 3,700 from last year’s 2,800.
And in its corporate social responsibility program, 300 of Korea Life Insurance’s financial planners have formed one-on-one ties with foreign wives in the Chungcheong provinces to help them adapt to life in Korea.
In addition to social responsibility projects, the group says it is also reviewing similar programs for its employees including pension schemes and related projects will go into operation once the details are finalized.
By Choi He-suk (
cheesuk@heraldcorp.com)