Hyosung Cho Hyun Joon Chairman Targets the Global Market with ICT and Localization

  • Fusion of existing manufacturing industry with cutting-edge ICT
  • Market creation with localization strategy

SEOUL, South Korea--(BUSINESS WIRE)--#ChoHyunJoon--Hyosung (KRX:004800) Cho Hyun Joon Chairman has given two directions of the group’s second takeoff after its annual earning profit exceeded 1 trillion won last year for the first time since its foundation. They are ‘ICT’ and ‘Localization’. It has increased added value of its products by grafting cutting-edge technology onto them, while creating new markets with customized local strategy.

Fusion of existing manufacturing industry with state-of-the-art ICT

Hyosung has grafted ICT onto its existing products in electric power industry. One of the model cases of such technical fusion is its smart transformer business. The mixed tech gathers big data from transformers to improve their operational efficiency and then predicts breakdowns in the products. Hyosung completed the development of its smart transformer business in 2016, and installed them at domestic electric power substations as a demo project. The customers have shown positive responses to the smart transformers even during their test runs.

Hyosung ITX signed a sales agreement with China’s communications equipment maker Huawei Technologies. As an official sales partner of Huawei, Hyosung ITX is supplying servers, storages and network solutions of Huawei. "As both companies have concentrated on R&D in cloud, big data and Internet of Things, they will be able to cooperate in various business fields through technological tie-ups,” a Hyosung official said.

Market creation with localization strategy

Hyosung supplies yarns exclusively to a local apparel company in Indonesia in a move to encroach its market of 250 million people. Its yarns have great deodorizing and cooling effects, a compelling feature in hot and humid weather. Hyosung’s localized materials as in the Indonesian case are being supplied not only in Southeast Asia but in Europe and the US, giving a momentum to its textile business leading the global market.

With the ATM market expanding in the US, Nautilus Hyosung America Inc. opened the Service Operation Center (SOC), a new service center, in March for an integrated management of its service quality. The SOC is a headquarters-level service control center, where the overall operation of about 9,000 Nautilus Hyosung ATMs in 32 US states are managed through a large LCD monitor. It is an advanced form of a call center which receives customer complaints and then addresses them ex post facto. As more ATMs are being installed across the US, the new system is intended to build customer trust by improving its service quality through an efficient centralized management of customer complaints and breakdowns.

Meanwhile, Hyosung constructed a nitrogen trifluoride plant with the capacity of 13 million tons in March and a spandex plant with the capacity of 16,000 tons in May, both in Quzhou County, China. Nitrogen trifluoride is gas used to etch silicon wafers. Hyosung’s advance to China was what Cho Hyun Joon Chairman intended. Hyosung Cho Hyun Joon Chairman said, “We must target the Chinese market first to be the world No. 1 in spandex business.” He formed Team Project C in the late 1990s and led its penetration into the market. C stands for China. “China subsidiaries carry out localization strategy by appointing local employees to major positions across all business processes including production, marketing and purchase,” a Hyosung official said. “They have served as a role model for all other Hyosung production bases built worldwide later.”


CHANG-SEOK HAN, +82-2-707-7338

Hyosung Cho Hyun Joon President "Contractors Are in the Same Boat"

-Hyosung Cho Hyun Joon President vows to make company more attentive

-Hyosung participates in trade shows with its contractors, supports their system improvements in an effort to strengthen their competitiveness

SEOUL, South Korea--(BUSINESS WIRE)--#ChoHyunJoon--Hyosung (KRX:004800)’s core value of shared growth can be summed up by a “we are in the same boat” spirit. Hyosung Cho Hyun Joon President has taken a policy to listen carefully to its contractors and lavish support on them in a whole range of fields including technology, systems, marketing and finance. It is because the competitiveness of contractors influences that of Hyosung.

Cho Hyun Joon President said emphatically when he took office, “I will make Hyosung an attentive company…What our customers say is the alpha and omega…All contractors with Hyosung are our precious partners, and we must build win-win relations with them.”

Hyosung has adopted and carried out four shared growth practices as part of its regulations to strengthen fair trade with its contractors. The practices call for Hyosung to create and manage an internal board to review the fairness and legality of (1) contract conclusion, (2) the selection and management of contractors and (3) transactions with contractors. They also require Hyosung (4) to document and archive contracts and transactions. Hyosung has announced guidelines to build trust and strengthen partnership. The guidelines ban Hyosung employees from taking retaliatory actions such as unilateral restriction on or suspension of transactions with contractors.

Hyosung boosts its contractors’ competitiveness by participating in trade shows together and supporting their system improvements.

Hyosung has participated in trade shows at home and abroad with its contractors in a bid to help their marketing activities. For instance, Hyosung has set up its joint booth with its contractors in “Preview in Daegu,” an international textile exposition, for 16 years in a row since it was inaugurated in 2002. Besides, Hyosung has held monthly meetings with its contractors region by region to discuss ways for mutual growth, find points to improve and strengthen their friendly ties.

Hyosung holds meetings on shared growth in order to expand communication with its contractors.

Power & Industrial Systems Performance Group has held meetings with its contractors at least twice a year. In the first half meeting, the group’s employees do voluntary services with working-level employees of its contractors in an effort to forge a bond of friendship. In a yearend meeting, the group awards outstanding contractors, offering them a chance to participate in its overseas training programs.

Construction Performance Group created the “shared growth consultative body” involving its contractors in 2013 to strengthen cooperation for co-prosperity. The panel holds a meeting each year. On March 23, the consultative body held a meeting on the Floating Island, dubbed “some Sebit,” on the Han River. The meeting was attended by about 150 representatives of major contractors and those companies which agreed to provide technology services to the group. The group briefed them on its shared growth project. It awarded model contractors and also concluded technology service agreements. It was a meaningful time to remind them of the importance of shared growth.

Hyosung Cho Hyun Joon President has signed “shared growth cooperation agreements” with its contractors to promote technology-based win-win relationships. His shared growth accord with Korea Welding Industry Cooperative to cooperate with each other regarding arc welders reflects his concrete action to develop the local arc welder industry and help the growth of small and mid-sized enterprises. Cho Hyun Joon President did not settle for declarative principles such as “large companies give way to small and medium-sized companies to protect them.” Instead, he specified ways for mutual growth, so he focused on developing and selling technology-intensive arc welding products and sponsored overseas marketing, technology seminars and equipment.

Hyosung lays the groundwork for growth by supporting its contractors’ efforts to improve financial status

Hyosung Cho Hyun Joon President does not spare support for the financial improvement of its contractors. President Cho signed a “Network Loan” agreement with financial institutions, while providing funds they need to secure equipment and facilities and develop technology to raise their productivity. The loan scheme between Hyosung and banks enables Hyosung contractors to borrow money needed to carry out their contracts. Hyosung plans to make contributions to the Large & Small Business Cooperation Foundation to support management innovation efforts by a total of 100 contractors by the end of this year.

In 2014, Hyosung introduced a “shared growth settlement system” in which the contractors of large companies, their subcontractors and second-tier subcontractors can cash in large companies’ bonds at discounted fees. The system is expected to give the benefits of saving financial costs to subcontractors and their subcontractors as well as contractors.


CHANG-SEOK HAN, +82-2-707-7338

Hyosung President Cho Hyun Joon Takes the Company to a Higher Level on the Back of New Materials and Big Data Platform Business

- Hyosung President Cho Hyun Joon emphasizes continued quality improvement and new market exploration on the basis of original technology

- President Cho supports new growth engines by providing world-class total energy solutions

- President Cho seeks to foster new businesses by grafting information technology and knowhow to them

SEOUL, South Korea--(BUSINESS WIRE)--#BigData--Despite a global economic crisis, Hyosung Group (KRX:004800) recorded an outstanding performance last year when it marked its 50th anniversary. It posted 11.9291 trillion won ($15.73 billion) in sales and 1.0163 trillion won in operating profit. For the first quarter of this year, it kept up the upswing with 2.8711 trillion won in sales and 232.3 billion won in operating profit. Its net profit for the first quarter increased 27 percent to 161.1 billion won from a year earlier (126.9 billion won).

This rapid growth is attributable to Hyosung President Cho Hyun Joon’s commitment and will to secure original technology and his active investment in technology. It is a result of Hyosung’s global competitiveness raised through the development of original technology, the improvement of services to existing customers and the acceleration of customer-centric marketing to secure new customers even as global competition was made tougher by the rising prices of raw materials.

President Cho Hyun Joon plans to sustain Hyosung’s growth this year by providing customer-oriented products and services continuously, setting up a global production network, finding new customers to raise competitiveness and securing core technologies needed for new businesses. He will be attentive to the needs of customers, business partners and on-the-scene workers in making Hyosung’s own technological edge the DNA of its success.

Cho plans to focus on improving quality and finding new markets on the basis of Hyosung’s original technologies to beat competitors at home and abroad without being shaken by changes in the market environment.

Support for new growth engine by providing world’s best total power solutions

Hyosung’s Power & Industrial Systems Performance Group turned to profit in 2014 after three straight years of loss. Last year, it recorded 189 billion won in operating profit, marking a prominent progress in performance. The group has received a favorable evaluation that it has secured competitiveness by strengthening marketing campaigns in many overseas markets including the US, Saudi Arabia and Europe and at the same time innovating product quality.

President Cho Hyun Joon plans to step up overseas business around STATCOM (static synchronous compensator) which only Hyosung produces in Korea. For the first time as a Korean company, Hyosung won orders from India and Panama in 2015 to provide STATCOMs. Last year it outbid global competitors for a STATCOM supply deal with KEPCO, Korea’s state-run power monopoly. The STATCOMS to be installed in substations in Sinchungju, North Chungcheong Province and Sinyeongju, North Gyeongsang Province are the world’s largest in scale for a single facility installation.

Promotion of new growth businesses grafted onto IT, such as financial equipment and cloud services

Nautilus Hyosung won a deal with Sber Bank, Russia’s largest national bank, last year to supply 7,000 bank note recyclers over the two-year period. The Hyosung unit began to provide ATMs to the Bank of America as the sole supplier for its next-generation branch innovation project. Currently, Nautilus Hyosung supplies its own automated financial machines such as recyclers and self-banking solution NBS (New Branch Solution) to major banks in about 30 countries, including the US’ Chase Bank, Russia’s Sber Bank and Indonesia’s BCA. President Cho Hyun Joon plans to meet the needs of customers by developing all sorts of services and functions with technology and knowhow Nautilus Hyosung has long accumulated in the field of financial information technology. He also plans to increase annual ATM production at a Huizhou, China-based plant to 75,000 units by 2018.

President Cho Hyun Joon plans to expand SI (System Integration) and SM (System Management) businesses from Hyosung ITX, Hyosung’s IT subsidiary which is emerging as an industry-leading internet of things (IoT) company. He established an R&D center in Hyosung ITX and has since extended its business to big data analysis and IT security on the basis of cloud computing solutions. He plans to wrap up the substation AHMS (Asset Health Management Solution) project this year. AHMS is a solution to maximize energy efficiency by utilizing Hyosung ITX’s information and communication technology together with Power & Industrial Systems Performance Group. He plans to foster Hyosung into a total energy solution provider which will lead the world power transmission and distribution market by grafting IoT and big data technology onto its globally recognized power business.


CHANG-SEOK HAN, +82-2-707-7338

Hyosung Group Chairman Cho Hyun-joon Met Chinese Municipal Party Secretary Chen Xin

  • Hyosung Group Chairman Cho Hyun-joon met Quzhou party secretary after a 1-year hiatus
  • Maintains global network through business cooperation in China

SEOUL, South Korea--(BUSINESS WIRE)--#ChenXin--Hyosung Group (KRX:004800) Chairman Cho Hyun-joon met China’s Quzhou City Communist Party Secretary Chen Xin after a 1-year hiatus. Cho has maintained a global network with influential figures abroad.

Chen visited Cho in the group head office in Gongdeok-dong, Seoul, on July 18 and they discussed how a new factory in Quzhou was doing and ways of cooperation. The construction of the factory was completed in the first half of this year.

The latest meeting came a year after their last one in Quzhou City in July last year. At that time, Cho promised to Chen to “develop a spandex and NF3 factory under construction in Quzhou into an axis of major Hyosung production bases in China.”

Quzhou is known to share a close bond with Hyosung Chairman Cho. The city named a downtown main street “Hyosung Boulevard” after the Korean business group in a show of its gratitude for investing in the city.

In the late 1990s, Cho emphasized that Hyosung needed to penetrate the Chinese market first to take global leadership in spandex business and he entered the market with “C(China) Project Team” he formed.

Hyosung Group Chairman Cho’s spandex business took the largest share in the Chinese market in 2007. It came five years after a spandex factory in Jiaxing, Zhejiang Province began a full-blown operation. Using this as a foothold, Hyosung has held the status of world’s No.1 spandex maker since 2010.

Chen became the youngest party secretary of Quzhou City, Zhejiang Province in 2012, and has since led the construction and development of a provincial industrial complex in the city area. He is in charge of building China-Korea Industrial Cooperation Complex within Quzhou National High-tech Industrial Park. The new complex will deal mostly with fine chemicals, silicon and biochemistry.


CHANG-SEOK HAN, +82-2-707-7338