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Kwon Oh-kap, chief executive of the newly established Korea Shipbuilding & Offshore Engineering (KSOE), said recently that he needed to prepare for the shift in the mindset of the Korean shipbuilding industry.
KSOE is a secondary holding company established by Hyundai Heavy Industries for the merger of Daewoo Shipbuilding. On June 3, KSOE applied for registration at the Ulsan District Court and appointed Vice Chairman of Hyundai Heavy Industries Co., Ltd. as the new CEO.
This is the first step for Hyundai Heavy Industries to acquire the Daewoo shipbuilding program. According to the plan of Hyundai Heavy Industries, KOSE headquarters will be located in Seoul, and will lead four shipbuilding companies: Hyundai Heavy Industries, Daewoo Shipbuilding, Hyundai Sanhu Heavy Industry and Hyundai Miura Shipbuilding. Hyundai Heavy Industries hopes to develop it into a global mechanical equipment engineering company, KOSE will be committed to research and development (R&D), and greatly improve the technical level.
In an e-mail to KSOE executives and employees, the company said: “The shipbuilding industry will transform into a technology-oriented industry rather than a labor-intensive industry.” The reason is that technology continues to compete. Survival is vital, China has cheaper labor costs, Russia and Saudi Arabia have abundant natural resources, and these countries are eager to enter the shipbuilding industry.
According to Wujia, KSOE will focus on R&D investment. KSOE currently has 500 executives and employees, and will continue to hire people in the future, with the goal of establishing a global R&D center with 5,000 employees in Pangyo, Gyeonggi-do. He made it clear that KSOE will spare no effort to support R&D, which is the cornerstone of the future of the Korean shipbuilding industry.
When talking about the management of the four shipyards, the company pointed out that KSOE will perform its duties while ensuring management autonomy and ensuring the development of its subsidiaries.
The five-year-old hope that KSOE will do its best to survive the decline of the Korean shipbuilding industry. He believes that KSOE's mission is to maintain employment by winning environmentally friendly ships and future smart ship orders, and must become a market-leading company.
Wuyijia said that KSOE is responsible for the future of the Korean shipbuilding industry. “If advanced technology and quality are ensured, no matter how the business environment changes, we can obtain stable orders. We will protect the ecological environment of the Korean shipbuilding industry by maintaining employment stability and take on the future of the Korean shipbuilding industry. It is the mission of KSOE."