Hyosung Group Chairman Cho Hyun-joon announces the launching of his group’s holding company at a meeting of the board of directors. (Photo: Hyosung Group)

Hyosung Group has completed the restructuring of its corporate governance by adopting a holding company system on June 1,. Hyosung Corp. will serve as the holding company and four independent entities ― Hyosung TNC, Hyosung Advanced Materials, Hyosung Heavy Industries and Hyosung Chemical ― will handle manufacturing and operations.
The latest move is designed to enhance corporate objectivity and transparency.
Hyosung Corp. and the four affiliates held the first joint meeting of their boards of directors on the afternoon of June 1. The board of each affiliate voted on the appointment of the CEO, internal and external directors, and members of the audit committee.
Eleven internal and 20 external directors were appointed for the five companies.The hiring of experts from various fields as external directors is expected to significantly reinforce objectivity and transparency.
Chairman Cho Hyun-joon became the CEO and chairman of Hyosung Corp. and President Kim Kyu-young was appointed to be president of the holding company. Executive Vice President Kim Yong-sup was elected as CEO of Hyosung TNC specializing in textile and trading, while Senior Executive Vice President Moon Sup-cheol became the CEO of Hyosung Heavy Industries specializing in heavy industries and construction.
Senior Executive Vice President Hwang Jung-mo was appointed to be the CEO of Hyosung Advanced Materials, while President Park Joon-hyung was elected to the CEO of Hyosung Chemical.
Hyosung Group Chairman Cho Hyun-joon and the board chairman of each affiliate then held a meeting with all five boards of directors attended by their respective chairmen. They discussed achieving mutual success like through maximizing synergy through close cooperation under the holding company system.
Chairman Cho Hyun-joon said, “We will concentrate efforts toward transparent management to enhance our overall business competitiveness.”
“Hyosung will leverage the expertise possessed by the holding company Hyosung Corp. and the four new operating affiliates to maintain and advance transparent management and raise our competitiveness to become a perennial global leader, thus enhancing our corporate and customer value,” Chairman Cho added. He expressed his plan to create a “New Hyosung” under the holding company system.
Since his appointment last year, the chairman has stressed the importance of transparent management.
In July last year, he formed the transparent management committee under the company’s board of directors, appointed an external director as a lead committee member and named an external director as the lead member of the committee for recommending external directors. Last February, he broke from the company’s tradition of having the CEO chair the board of directors by resigning as chairman to raise the transparency of corporate governance.
‘Control Tower’ to Achieve ‘Centennial Hyosung’ Vision
Under the holding company system, Hyosung Corp., as the control tower of the group, will focus on fostering high-profit business portfolios and enhancing brand value. It will also advance corporate governance and achieve transparent management, not only by managing the performance of the affiliates, but by ensuring their operations are focused on their respective boards and professional executives.
Hyosung will reinforce the global competitiveness of the four affiliates by having them as independent entities under the supervision of professional executives.
The conversion to the holding company system is slated for completion by year’s end via investment in kind and capital increase with consideration after the listing of the four new companies is concluded July 13.
Hyosung TNC will utilize its unique and highly competitive brand of spandex to tap a variety of overseas markets; the company controls more than 30 percent of the global market for spandex. In addition, its trading division will raise its international competitiveness based on the company’s cutting-edge marketing infrastructure and knowhow.
Hyosung Advanced Materials seeks to grow into a leading provider of automotive materials focusing on tire reinforcements including polyester tire cord, car mats, and yarns for automotive seat belts and airbags; its tire cords dominate the global market with more than 40 percent share.
The plan is to foster new materials such as aramid and carbon fiber as Hyosung’s next growth engines.
Hyosung Heavy Industries will fully utilize its extensive knowhow and peerless technology in power systems and industrial machinery to reinforce its global competitiveness. It will also enhance its expertise in construction, including in housing and redevelopment projects. Hyosung Chemical’s vision is to emerge as a chemical substance specialist in PP/DH, TPA and film and develop new growth engines like NF3, TAC film and polyketone.