Cho Hyun-joon on Monday started in his new position as chairman of Hyosung Group, a South Korean industrial conglomerate specializing in textiles, industrial materials and chemicals, with an inauguration ceremony that coincided with the anniversary of the death of his grandfather and the group’s founder.

The eldest son of former chairman Cho Suck-rai was promoted from Hyosung president to the current position late last year in recognition of his contribution to record operating profit of more than 1 trillion won ($846 million) in recent years.

During the inauguration ceremony, Cho called for group-wide efforts to take another leap forward as a global enterprise, focusing on technology initiatives aligned with the fourth industrial revolution. Hyosung under Cho’s leadership has gained growth momentum on three business drivers of heavy industries, information and technology and overseas investments. Market experts say Hyosung will put more weight on heavy industry business which grows fast and has a bright future outlook. In 2014 alone, Hyosung lost money due to price dumping and cost increases. But under Cho’s leadership as president, Hyosung focused on only lucrative projects in heavy industries, jettisoning slow-growth businesses.

The growth of the heavy industry business also brought a more balanced look to Hyosung’s portfolio which had heavily relied on textile business. In 2014, its textile business accounted for more than 60 percent of the total operating profit of 600.3 billion won. In 2015, the share of textile business fell to 44.3 percent, while profits from heavy industries increased sharply, creating a more stable revenue structure.

Cho’s vision is now marked by high-tech business combined with Hyosung’s established business like textile, chemistry and heavy industries. He is also determined to increase investments into overseas projects.

In November, he discussed a plan during his meeting with Vietnamese Prime Minister to inject 1.4 trillion won into building massive chemical facilities in southern Vietnam.

By Kang Young-woon

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