South Korea’s largest shipbuilder Hyundai Heavy Industries Group conducted generation-changing management reshuffle on Tuesday, its first major executive appointment following the sweeping reorganization separating the shipbuilding and non-shipbuilding operations.

Chairman Choi Kil-seon would retire to play an advisory role, while vice chairman Kwon Oh-gap resigned from the chief executive position.

The company will run on sole management of its chief executive and president Kang Hwan-goo to strengthen responsible management, the company said.

Kwon, credited for the efforts to help the firm overcome its four-year-long hardships, will head the holding entity of the shipbuilder once it completes the process to transform itself into a holding structure. He is expected to focus on finding new growth engines, the group’s financial affairs, business reorganization and overseas operation, according to sources.

During the reshuffle, the group also promoted Joo Young-geol, CEO of Hyundai Electric and Energy Systems Co. and Gong Gi-yeong, CEO of Hyundai Construction Equipment Co. from vice president to president.

Chung Ki-sun, senior executive director of Hyundai Heavy Industries and grandson of Hyundai group’s late founder Chung Ju-young, was promoted to vice president to lead vessel and marine business and corporate planning office. He will also be named vice president of Hyundai Global Service Co., the shipbuilder’s ship repair and maintenance unit that began operation in December last year, to jointly lead the firm with CEO Ahn Kwang-hun.

Industry watchers believe that the shipbuilder has tightened the grip of Chung, the eldest son of its largest shareholder Chung Mong-joon, over the group management through the reshuffle.

An official from Hyundai Heavy said the generational change in the management would help the firm to escape the current crisis caused by dearth of orders.

By Woo Je-yoon and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]