Hansol grows beyond paper roots

So much for the death of paper.

Despite numerous predictions over the years that the Internet and other high-tech forms of communication would render paper obsolete, it seems just as commonplace as ever.

At the center of Korea’s paper-making industry is Hansol Paper Company, which was the initial business of conglomerate Hansol Group.

In 1965, Samsung Group founder Lee Byung-chull acquired upstart Saehan Paper Company. Three years later, the company delivered its first paper product, paving the way for its initial public offering on the Korean stock exchange in 1972.

Lee thought that investing in cultural areas through education, media and the publishing industry was vital to help the nation retain creative talent and galvanize its economy.

Hence his interest in paper, as it helps spread information and provides educational opportunities.

Over the years, the company contributed to the development of numerous local industries and established the nation’s first research center dedicated to diversifying the paper product line.

Hansol Paper blossomed, and in 1991 it completely separated from Samsung.

Today, Hansol Paper is Korea’s leading paper manufacturer and remains the Hansol Group’s core business.

The Hansol Group, however, focuses on much more than paper. The company has grown in scale to include nine subsidiaries such as Hansol Homedeco, Hansol Chemical, Hansol Development and Hansol Construction.

The group has a clean and innovative corporate image that reflects its name. In Korean, han means big and unique and sol means pine tree. Hansol has been investing in eco-friendly businesses and promotions, and is one of the country’s leading planters of trees.

The group also supports cultural and sporting events such as the Hansol Korea Open - an annual tennis tournament - and artistic sculptures at a park within its Oak Valley resort in Gangwon.

Hansol Group has diversified its business and overall image as part of its larger drive to boost revenues. After spinning off from Samsung in the early 1990s, Hansol Group’s annual sales were around 340 billion won ($269 million). This year, the company is shooting for 4.5 trillion won in revenue, and it ranks as Korea’s 47th-biggest private conglomerate, according to the Fair Trade Commission.

At the center of the business is Chairman Cho Dong-kil, who led Hansol when it split from Samsung. Cho is a grandson of Samsung Group’s founder and the nephew of former Samsung Group Chairman Lee Kun-hee.

When Cho took the position of chairman in 2002, he implemented an aggressive growth strategy and focused on accountability and transparency.

After acquiring a bachelor’s in economics at Yonsei University in 1980, Cho worked at the Seoul office of JP Morgan. It was in 1987 that he joined Hansol Paper as general manager. A decade later, he became vice chairman of the Hansol Group. Five years after that, he was named chairman.

Along with Cho, Sunwoo Young-suk - the group’s vice chairman and also the CEO of Hansol Paper - is the driving force behind the group’s paper unit, which accounts for one-third of the group’s overall sales.

After acquiring a bachelor’s in business administration at Yonsei University in 1970, Sunwoo worked at Cheil Industries, a Samsung-affiliated maker of chemicals and apparel. Over the next 20 years, he worked for numerous Samsung-affiliated companies such as Samsung Heavy Industry and Samsung Aerospace before becoming president and executive director at Hansol Trading in 1993.

Unlike many large conglomerates led by executives who have studied abroad, most of Hansol’s leading executives were educated primarily in Korea. They also worked their way up to the top after starting their careers in Samsung-affiliated companies.

Koh Myung-ho, CEO of Hansol Homedeco, an environment-friendly interior design materials provider, joined Samsung Electronics as general manager of the human resources department in 1991.

Hansol Homedeco is one of the group’s core eco-friendly businesses. It manufactures flooring materials, moldings, walls and doors made of environmentally friendly materials. It also is engaged in overseas forestation projects, including one that started in 1993 in New Zealand.

Kwon Kyo-taik, CEO of Hansol Chemical, a chemical manufacturing company, also moved his way up after joining as deputy senior manager of Hansol Enterprise in 1985. Kwon, who was posted to his current position in 2004, helped the subsidiary generate profits after years of losses. Hansol Chemical has factories in Jeonju, South Jeolla and Ulsan, South Gyeongsang, that produce chemicals such as hydrogen peroxide, latex and sodium hydrosulfite that are used in making paper and semiconductors.

Kim Chi-woo, CEO of Hansol LCD, is capitalizing on the demand for liquid crystal display televisions. Hansol LCD produces backlight units, which are the core element in transistor LCDs, and power modules.

Kim bolstered the LCD unit’s overall sales from 370 billion won in 2003 to 880 billion won in 2006, using his experience at Samsung Electronics. The unit has been expanding its business abroad ever since it created a European entity in Slovakia. It also has a subsidiary called Hansol Lighting.

Suh Kang-ho, CEO of Hansol CSN, is in charge of the group’s domestic and overseas transportation and storage and other logistics-related services.

Kim Keun-moo, CEO of Hansol Development, is managing the group’s leisure business. The subsidiary operates Oak Valley Resort Town in Gangwon - home to one of the nation’s most famous ski resorts - a golf course and a 960-room condominium.

Choi Kyung-yuel, CEO of Hansol Construction, is a known expert on architectural design and construction.

Chung Hyung-keun, CEO of Hansol EME, or environment, maintenance and engineering, is leading the group’s business related to producing green solutions. The subsidiary is expanding its new businesses in Southeast Asia, Central and South America and Eastern Europe.

Ryu Hwa-suk, CEO of Hansol PNS, is in charge of the group’s systems management services.

By Lee Eun-joo [angie@joongang.co.kr]