Hanwha Corp. won the Korea Prime Company Award from the Korea Academic Society of Business Administration (KASBA) at the Kimdaejung Convention Center in Gwangju on Aug. 21. President Lee Tae-jong of Hanwha Corp.’s defense business received the coveted prize at an awards ceremony.
Hanwha Corp., established in 1952, is the mother company of Hanwha Business Group. Since its establishment, the company is engaged in the chemical business division, specializing in industrial gunpowder based on the successful localizing of powder for the first time in Korea; the defense business division, supplying key weapon systems necessary for national defense preparation; the machinery business division for producing a diverse array of value-added machineries; and the trading business division for exporting and importing goods for Korean and foreign business partners.
Hanwha Corp. also has a stake in such Hanwha Group subsidiaries as Hanwha Chemical, Hanwha Techwin, Hanwha E&C, and Hanwha Life Insurance.
In 2016 Hanwha Group chalked up 47.12 trillion won in sales, 1.685 trillion won in operating profit, and 1.288 trillion won in net profit, achieving its best-ever business performance. The figures represent a 14 percent rise in sales, a 122 percent surge in operating profit, and a 969 percent jump in net profit compared to the previous year.
Hanwha Group rose from 10th to 8th in 2015 in terms of sales and to 5th in terms of operating profit among conglomerates. Thanks to these achievements, the business group ranked 277th in 2016, up 52 slots over the previous year, and 246th in 2017, up 31 spots, in the Fortune Global 500 list.
Hanwha’s pursuit of becoming a world-class company is owed to its endless challenging spirit. Despite the slumping petrochemical industry, caused by the 2nd oil shock in 1982, the group acquired Hanyang Chemical, which has now grown into Hanwha Chemical. Starting with the M&A, Hanwha took over Hanwha Hotel & Resort in 1985, Daehan Life Insurance in 2002, the German company Q CELLS in 2012, four subsidiaries of Samsung Group in 2015, and Doosan DST in 2016 through rapid decision-making and a firm determination to implement decisions. Thanks to synergetic effects as member companies of the business group, Hanwha Chemical, which posted 162 billion won in sales at the time of acquisition, has been catapulted to a company whose sales have jumped 55 times to 9.014 trillion won in 2016.
Hanwha Hotel & Resort has developed into a Korean representative integrated leisure company, while Hanwha Life Insurance has grown into a world-class life insurer, which has 100 trillion won in assets and tops in the insurance payment capability list for the 10th consecutive year.
True to its management tenets, “Credibility and Fidelity,” Hanwha has been devoting itself to promoting “shared growth” and realizing social contribution culture in its corporate social responsibility.
The group has been conducting cash settlements of purchases with its cooperative companies as an embodiment of shared growth. Based on the principal of “going together far away,” not “going fast alone,” Hanwha is supporting environment and welfare initiatives.
Hanwha has put into practice a “matching grant system” calling for management to make donations equivalent to 150 percent of the contributions of group executives and staff. They have also implemented a paid volunteer activity system in which they are allowed to participate in volunteer activities during their working hours. The group has been conducting a diverse array of social contribution activities, including the Seoul International Fireworks Festival sponsored by Hanwha.
A view of the Hanwha Future Technology Research Institute in Bundang, south of Seoul.(Photos: Hanwha Corp.)