Hanwha Group Chairman Kim Seung-youn (Hanwha Group)

Hanwha Group Chairman Kim Seung-youn has reiterated the company's approach to overcoming crises as a “Great Challenger,” expressing the need to take more proactive and leading measures rather than waiting for market conditions to turn favorable.

“Driven by unwavering beliefs that do not compromise with the currents of the times and a relentless dedication to being the best, we will overcome the waves of crises and write a new history for Hanwha,” said Kim in a video celebrating Hanwha’s 72nd anniversary of its foundation on Thursday.

The Hanwha chief did not turn a blind eye to the hard truth of the difficult business situation faced by the petrochemical and energy sectors. Urging a critical reflection on whether they have become complacent with small successes, he called for backbreaking innovation to regain market leadership as the two sectors have been major contributors to the conglomerate’s growth in the past.

Mentioning that every business is facing significant challenges in a harsh environment, where hesitation can lead to a forever decline, Kim emphasized the importance of spreading the experience of success, such as the achievements of the defense units -- Hanwha Aerospace and Hanwha Systems.

Hanwha Aerospace reported 2.79 trillion won ($2.1 billion) in revenue and a record-high operating profit of 358.8 billion won in the second quarter this year, up 46 percent and 357 percent on year, respectively. The delivery of six units of K9 self-propelled howitzers and 18 units of the multi-caliber rocket artillery system Chunmoo to Poland in the April to June period propelled record-breaking earnings.

In July this year, Hanwha Aerospace inked a 1.4 trillion won contract with Romania to export K9 self-propelled howitzers as Hanwha’s defense firm sustains the momentum of overseas sales.

Hanwha System logged 687.3 billion won in revenue and 79.8 billion won in operating profit in the second quarter of this year, up 12.6 percent and 167 percent on year, respectively. The company announced in July that it secured a 1.2 trillion-won deal to supply multi-function radar, or MFR, for LIG Nex1’s Cheongung-II medium-range surface-to-air missile system export to Saudi Arabia. This marked Hanwha Systems’ second contract worth over 1 trillion won following the previous deal to deliver MFR to the United Arab Emirates last year.

Although Chairman Kim touted the success stories of Hanwha’s defense units, he underlined that they should not settle for their temporary achievements due to geopolitical issues but strive for market development such as research and localization strategies.

For the continuously evolving shipbuilding and maritime sectors, including Hanwha Ocean and Hanwha Engine, he presented the goal of becoming a global ocean business leader and encouraged them to leave a bigger footprint of success.

The Hanwha Group chief concluded his commemorating speech by stressing the utmost importance of safety, saying that success built upon the sacrifices of others is not success as he asked every employee to prioritize safety.