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New HD Hyundai chairman touts AI transformation, MASGA opportunities in message to employees

Published: 20 Oct. 2025, 16:41 Updated: 20 Oct. 2025, 19:26

HD Hyundai Chairman Chung Ki-sun [HD HYUNDAI]

Chung Ki-sun, the newly appointed chairman of shipbuilder HD Hyundai, called on employees to unite as “future builders pioneering humanity's future” in his first message to the company since taking office.

“I feel an immense sense of responsibility, but I firmly believe that with all of you, we can fulfill our duties and obligations together,” said Chung in an email sent to all employees on Monday.

Chung officially took office as chairman on Friday, marking the return of owner-led management at HD Hyundai for the first time in 37 years since 1988.

In his message, Chung addressed the crises facing HD Hyundai’s key business sectors — shipbuilding, construction equipment and oil and petrochemicals — and outlined the company’s strategic direction.

“Our current business environment is more challenging than ever due to a complex mix of risks, including U.S.-China tensions, a global economic slowdown and oversupply from China,” he said.

On shipbuilding, Chung warned of a sharp decline in global vessel orders and rapid market encroachment by Chinese shipyards across all ship types.

He also cited mounting pressure on the construction equipment business, driven by U.S. import tariffs and intensified competition with global giants. The oil and petrochemical business, he added, is facing declining profitability due to falling oil prices and shrinking refining margins.

Then-HD Hyundai Executive Vice Chairman Chung Ki-sun delivers opening remarks at the Korea-U.S. Shipbuilding Cooperation Expert Forum held at the HD Hyundai Global R&D Center in Seongnam, Gyeonggi on June 24. [YONHAP]

“This is not the first time we’ve faced such crises,” Chung said. “Since the groundbreaking of the Ulsan Shipyard in 1972, we have overcome countless challenges by focusing on what we could do right away — and from that, we built things only we could accomplish.”

He urged employees to approach today's difficulties with the same mindset and confidence.

Chung said the company is accelerating its transformation toward AI and digitally driven smart shipyards under the FOS (Future of Shipyard) initiative while also pursuing new market opportunities through geopolitical projects like MASGA (Make American Shipbuilding Great Again).

In the construction equipment sector, HD Hyundai will optimize its global production system, expand into high-margin markets such as mining equipment and strengthen its presence in emerging markets like India, Brazil and Australia.

“Even if it takes time to build up sales and service capabilities, we will establish a system with undeniable competitive strength,” he said.

For refining, Chung emphasized diversifying revenue streams, expanding overseas markets and enhancing environmentally friendly product lines. In petrochemicals, he said the company must shift toward cost reduction and a portfolio centered on high-value-added products.

Regarding the power equipment business, he noted that “HD Hyundai Electric is in a boom period driven by rising electricity demand” and said now is the time to strengthen its fundamentals so the business remains resilient even in downturns.

A view of the HD Hyundai Heavy Industries shipyard in Ulsan [HD HYUNDAI]

“We are here today thanks to our history of overcoming crises — it’s in our DNA,” Chung said. “We need a culture where practical ideas are implemented across the organization, and where communication within the field is strengthened.”

He also highlighted employee safety and family well-being as core aspects of HD Hyundai's competitiveness.

Chung concluded by thanking Kwon Oh-gap, the honorary chairman of HD Hyundai, for his leadership during difficult times.

“I deeply appreciate his dedication and vision, and I will build on that legacy to lead HD Hyundai toward sustainable growth,” said Chung.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YOUNG-WOO [[email protected]]