GS chairman tries to focus CEOs on core competencies

Huh Chang-soo

GS Chairman Huh Chang-soo told his companies to focus on their core competencies as a way to survive as global markets change at a board meeting at company headquarters in Gangnam District, southern Seoul on Wednesday.

Huh cited GS Donghae Electric Power and GS Electric Power & Services, two GS affiliates that exemplified the strategy of focusing on core competencies.

GS Donghae Electric Power began commercial operation of its first thermal power plant with 600 megawatt capacity in Gangwon last month. GS EPS began commercial operation of a liquefied natural gas-powered power plant with 900 megawatt capacity this month.

“We have the largest power capacity among private energy suppliers thanks to the two companies,” Huh said at the meeting.

In total, GS has 4.5 gigawatts of power generating capacity per hour.

Huh also challenged his CEOs to find future areas of growth.

GS Retail has invested in the nation’s first Internet bank, dubbed K bank. GS aims to link the new online banking service with its retail unit’s convenience store chain GS25 to create a new retail platform.

“K bank has started its online service and our offline networks through convenience stores will likely create positive synergies with the banking sector,” Huh said. “These new challenges are a basis for the group’s future growth.”

K bank, according to GS data, has attracted more than 200,000 subscribers in the two weeks after it opened. As the bank has no physical branches, it aims to use automatic teller machines in GS25s nationwide to give customers access to banking services.

“Rather than focusing on short term outcomes, we should invest our time and resources with a long term outlook,” Huh added. “Through a process of continuous trial and error, we will see ourselves building our independent core competencies.”

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]