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- JB Financial’s Longest-Serving CEO Thrives on Earnings, But Lacks Diversification
- Generally, in financial groups with an owner, it is common for the owner to directly serve as group chairman. Meritz Financial Group, Korea Investment Financial Group, and Mirae Asset Financial Group are prime examples.
It is rare for a professional manager to hold the chairman position in a financial holding company with an owner. JB Financial Group stands as a notable exception.
Despite being an owner-led financial group under Samyang Group, JB Financial Group has been managed by Kim Ki-hong, chairman of JB Financial Holdings, since 2019.
Chairman Kim was first appointed in 2019 and has recently secured his third consecutive term. His tenure runs until March 2028. If completed, he will have led JB Financial Group for a total of nine years.
◆ From financial regulator to KB Financial chairman candidate, Kim becomes captain of JB Financial Group
Chairman Kim is known as a “versatile financier,” having built his career across academia, the Financial Supervisory Service, and private financial companies.
He previously worked as a professor at Chungbuk National University and served as deputy governor of the Financial Supervisory Service, as well as head of the planning team for the establishment of KB Financial Holdings. When KB Financial Holdings was officially launched in September 2008, he left the group. In 2014, he became CEO of JB Asset Management and in 2019 was appointed chairman and CEO of JB Financial Holdings.
Former chairman Kim Han, a member of the owning family, said of appointing Kim Ki-hong, “He has a deep understanding of banking and holding companies, making him the right person to lead JB Financial into its next era.” Kim was also once considered a candidate for both KB Financial chairman and the head of the Financial Supervisory Service.
Yet what has truly allowed him to remain as chairman of a financial holding company with an owner for nine years are two critical numbers: earnings and stock price.
◆ The first number proving his long-term leadership, seven years of earnings growth
JB Financial Holdings’ net profit attributable to controlling interests, which stood at KRW 321 billion (US$ 223 million) in 2018 before his appointment, has continued to grow under his leadership.
It rose to KRW 362.1 billion (US$ 252 million) in 2019, KRW 390.8 billion (US$ 272 million) in 2020, KRW 552.4 billion (US$ 384 million) in 2021, KRW 618.3 billion (US$ 430 billion) in 2022, and KRW 603.9 billion (US$ 420 million) in 2023, with only 2023 showing a slight dip from the prior year.
In 2024, net profit reached KRW 693 billion (US$ 482 million), more than doubling compared to 2018 before his appointment.
Kim not only grew net profit but also strengthened the group’s profit structure itself, as both interest and non-interest income improved.
Net interest income increased from KRW 1.25 trillion (US$ 870 million) in 2018 to KRW 1.98 trillion (US$ 1.37 billion) in 2024, while net fee and commission income expanded more than 7.5 times from KRW 10.5 billion (US$ 7.3 million) to KRW 79.5 billion (US$ 55.3 million).
In 2024, the net interest margins (NIM) of Jeonbuk Bank and Kwangju Bank were 2.67% and 2.69% respectively, well above the regional bank average of 2.18%. Among six regional banks, only JB Financial’s two banks and Jeju Bank (2.06%) recorded NIMs above 2%.
◆ A rare upward-trending stock in a stagnant market, driven by results and shareholder returns
JB Financial Holdings’ stock price has also risen in line with its earnings.
What stands out is its steady upward trajectory over about five years. At the end of 2020, Kim’s second year as chairman, the stock closed at KRW 5,640 (US$ 3.9). It surpassed KRW 8,000 (US$ 5.6) in mid-2021, KRW 10,000 (US$ 6.9) in early 2023, KRW 15,000 (US$ 10.4) in mid-2024, and KRW 20,000 (US$ 13.9) in February 2025. The growth was gradual but steady.
There were ups and downs along the way, but compared to most domestic stocks stuck in the stagnant “Boxpi” market after COVID-19, JB Financial’s stock has shown a rare upward trend.
Key indicators used in stock analysis also show strong performance. According to financial data provider FnGuide, JB Financial Holdings’ 2024 return on equity (ROE) was 12.8%, far above the average for listed financial firms (7.82%) and all listed companies on KOSPI (7.48%).
Its price-to-earnings ratio (PER) stood at 4.69 times based on 2024 earnings, lower than the averages of financial companies (6.84) and all KOSPI companies (11.29), suggesting more upside potential.
The stock’s rise has also been driven by Kim’s proactive shareholder-friendly policies.
JB Financial has set long-term goals of 15% ROE and a 50% shareholder return rate, with specific steps to maintain ROE above 13% annually and achieve a 45% shareholder return rate by 2026.
The group has also pledged to buy back and cancel shares for any shareholder returns exceeding a 28% payout ratio.
Kim Eun-gap, analyst at Kiwoom Securities, predicted, “With its high ROE, JB Financial can differentiate itself from other banking stocks through shareholder-friendly policies and growth strategies.”
◆ Rising delinquency rates, remaining tasks are risk management and business diversification
Kim’s current term runs until March 2028. Born in January 1957, he will be over 70 years old by then, closing out nearly a decade of leadership.
His remaining priorities include risk management and business diversification.
JB Financial’s delinquency rate has been climbing rapidly since 2023. After rising modestly from 0.48% in 2021 to 0.58% in 2022, it jumped to 1.09% in 2023 and 1.58% in the first half of 2025.
For comparison, as of the first half of 2025, delinquency rates were 0.93% at iM Financial Holdings and 1.02% at BNK Financial Holdings. JB Financial’s rate is nearly 1.5 times higher.
Still, its asset soundness has not reached alarming levels.
While provisions for credit losses have risen sharply and coverage ratios have declined, they remain at stable levels.
Provisions for credit losses, which had been stable in the KRW 100 billion (US$ 69.5 million) range until 2021, jumped to KRW 256.5 billion (US$ 178 million) in 2022, KRW 442.5 billion (US$ 308 million) in 2023, and KRW 478.6 billion (US$ 333 million) in 2024.
The coverage ratio also fell from 168% in 2022 to 143.4% in 2023 and 139.7% in 2024. Still, this remained higher than the 111.9% average of the three major regional financial holding companies (iM, BNK, JB) in 2024.
The coverage ratio measures the level of provisions set aside against non-performing loans. A high ratio means the financial institution has solid risk absorption capacity.
Kim Kyung-geun, researcher at Korea Investors Service, explained, “Since 2022, asset soundness indicators have deteriorated due to increased real estate financing risk, prolonged high interest rates, and repayment resumption by borrowers after deferral programs ended in September 2023. However, the likelihood of a rapid decline in financial stability from rising bad debts appears low.”
Industry experts also point out that JB Financial lags its competitors in business diversification.
Currently, JB Financial is focused on banking and capital (installment finance and leasing). This contrasts with competitors such as BNK Financial, which also operates securities and savings banks, and iM Financial, which has added securities and life insurance to its portfolio.
Korea Investors Service assessed, “Compared to competitors, JB Financial’s subsidiaries lack diversification across financial sectors, leaving its overall business portfolio relatively underdeveloped.”
#JBFinancial #KimKihong #financialgroup #earningsgrowth #stockprice #ROE #PER #shareholderreturns #delinquency #businessdiversification
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- Hanwha Aerospace Hires Pentagon Veterans, Speeds U.S. Entry With Wheeled K9
- Hanwha Aerospace’s U.S. subsidiary has drawn attention after recruiting several former U.S. Department of Defense officials.
The new executives bring notable experience in artillery and munitions, a move seen as part of Hanwha’s strategy to strengthen sales of its K9 howitzer in the U.S. Army’s Self-Propelled Howitzer Modernization (SPH-M) program.
The key question is whether Hanwha can adapt its tracked K9 howitzer to a wheeled version that meets U.S. requirements. All eyes are on whether Son Jae-il, CEO of Hanwha Aerospace, can complete development of a wheeled K9 before the Army begins its pilot program next year.
If the company successfully provides a wheeled K9 capable of long-range mobility and firing for the pilot program, and later wins a large-scale contract, it would mark Hanwha’s first-ever entry into the U.S. defense market.
On September 14, Hanwha Defense USA announced that Todd Muller, Senior Vice President for Firepower Programs, and Jessica Bannaman, Director of Logistics Business Development, had started their roles. Muller previously oversaw the Army’s extended-range artillery program, while Bannaman served as Deputy Chief of Staff for the Department of Defense’s logistics and munitions joint program.
Shortly after his appointment, Muller wrote on his personal social media account that he was joining a team “uniquely positioned to meet the Army’s artillery modernization requirements through solutions ranging from wheeled howitzers to tracked howitzers to a complete suite of munitions.”
Industry sources also revealed that Hanwha is preparing to hire Alexander Nelson Wong, a former White House Deputy National Security Advisor under President Donald Trump, who was regarded as one of Trump’s key strategists.
Analysts see these moves as part of Hanwha’s aggressive push to prepare for the SPH-M pilot project, which the U.S. Army will launch soon.
The Army plans to select companies for Phase 1 of the pilot project in September. Based on the results of the 2026 trial, it will narrow down candidates for Phase 2 in 2027, and later award final delivery contracts.
The evaluation will be based on criteria such as range, precision, scale, mobility, and sustainability. Five models, including Hanwha’s K9, are expected to compete in Phase 1. Notably, all of the other contenders are wheeled self-propelled howitzers.
Wheeled howitzers have the advantage of fast road mobility and long-distance deployment, while tracked models like Hanwha’s K9 perform better in rough terrain. However, wheeled versions are generally seen as more cost-effective to maintain.
Before the SPH-M program, the Army had already decided to introduce wheeled self-propelled howitzers through the Extended Range Cannon Artillery (ERCA) program. This decision is believed to have spurred Hanwha to accelerate its own wheeled K9 development.
At the CANSEC 2025 defense exhibition in Canada this past May, Hanwha showcased a wheeled model with a 700-kilometer range and a top speed of 100 km/h. The company has set a goal of completing its wheeled K9 development in time for next year’s SPH-M pilot.
Hanwha had previously demonstrated the K9’s firing and mobility in September 2022 and April 2024 at the U.S. Army’s Yuma Proving Ground, with reports suggesting the Army’s response was favorable.
According to its capital increase plan in July, Hanwha also intends to invest KRW 1 trillion (US$ 695.2 million) in the U.S. by 2027 to build a smart factory that will produce propellant and explosives for the 155mm shells used in the K9 howitzer.
#HanwhaAerospace #K9 #SPHM #USArmy #defenseindustry #wheeledhowitzer #SonJaeil #USmarket #artillerymodernization #militarycontracts
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- SK Chemicals Taps Subsidiary Stake to Fund Green Transition
- SK Chemicals is securing investment funds based on its holdings of SK Bioscience shares.
CEO Ahn Jae-hyun of SK Chemicals is expected to accelerate the company’s transition toward an eco-friendly business portfolio by directing the secured funds into building facilities for plastic recycling and research and development in bio-based materials.
According to SK Chemicals on September 14, the company is reviewing various measures to secure investment funds for new businesses. In particular, it is considering issuing exchangeable bonds worth between KRW 220 billion and KRW 240 billion (US$ 152.9 million–US$ 166.9 million) backed by its holdings in SK Bioscience.
An SK Chemicals official said, “With the overall petrochemical industry in a slump, we face the challenge of securing investment funds,” adding, “One of the concrete options under review is issuing exchangeable bonds.”
SK Bioscience was spun off from SK Chemicals in 2018 to strengthen its expertise and efficiency as a specialized vaccine company and secure global competitiveness.
As of June 30, 2025, SK Chemicals holds 52,059,724 shares, or 66.43 percent, of SK Bioscience. The company is reportedly planning to use about 7 percent of its SK Bioscience stake to raise investment capital.
Exchangeable bonds are characterized by the fact that investors hold the right to exchange them for shares, allowing them to be issued at lower interest rates than ordinary corporate bonds.
The exchangeable bonds to be issued by SK Chemicals will mature in five years, with the coupon rate, yield to maturity (YTM), and yield to put (YTP) all set at 0 percent. Instead, investors can exchange the bonds for shares if the stock price rises and capture the gains, with the exchange price set at a 15 percent premium to the current market price.
SK Chemicals’ current financial conditions are a factor driving the need to secure investment resources through exchangeable bonds.
The company posted a record-high separate operating profit of KRW 111.1 billion (US$ 77.2 million) last year. However, as its subsidiary SK Bioscience recorded an operating loss, the risk of worsening cash flow grew, prompting the need for separate fundraising measures.
On a consolidated basis, SK Chemicals recorded an operating loss of KRW 44.8 billion (US$ 31.2 million) last year, falling into the red. Operating losses at subsidiaries could lead to requests for financial support from the parent company, further straining cash flow.
SK Bioscience’s deficit widened from KRW 12 billion (US$ 8.3 million) in 2023 to KRW 138.4 billion (US$ 96.3 million) in 2024, raising further concerns.
Despite turning to operating losses, CEO Ahn Jae-hyun has remained committed to pushing ahead with the company’s portfolio transition strategy centered on eco-friendly materials.
In February, SK Chemicals built a pilot depolymerization facility on the site of its Ulsan plant to chemically break down waste plastics and produce recycled raw materials. The company plans to link this facility with its existing commercial production facility for high-value-added eco-friendly copolyester materials to establish what it calls the “Recycle Innovation Center (RIC).”
Depolymerization technology enables waste plastics to be broken down at the molecular level, producing recycled materials that can match the physical properties and quality of petroleum-based materials.
For SK Chemicals, this technology is particularly significant because it can establish a complete circular system by reusing plastics from discarded electronics back into new appliances.
In addition, CEO Ahn has steadily increased investment in what the company defines as the “eco-transition sector,” represented by recycling and bio-based materials.
The share of eco-transition projects in SK Chemicals’ chemical R&D investment surged from 11 percent in 2020 to 29 percent in 2021, 42 percent in 2022, and reached 54 percent in 2024.
According to the SK Chemicals 2024 Sustainability Management Report, the company plans to maintain more than 50 percent of its R&D investment in eco-transition projects over the next five years.
Regarding this, CEO Ahn said at the European Coatings Show 2025 in March, “Beyond copolyesters and circular recycled plastics, we will use our technological capabilities to develop sustainable solutions applicable across diverse fields and actively promote them.”
#SKChemicals #SKBioscience #exchangeablebonds #investmentstrategy #plasticrecycling #biomaterials #sustainability #depolymerization #ecoTransition #AhnJaehyun
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- L&F’s Expanding Investments Deepen Heo Jae-hong’s Control Dilemma
- The management burden on Saeronix, the controlling shareholder of battery material company L&F, and on Heo Jae-hong, chairman of L&F’s board and Saeronix’s largest shareholder, is expected to grow heavier.
L&F requires massive funding for its growth, but as limitations in the financial capacity of Saeronix, its parent company, have come to light, its controlling power is weakening.
L&F’s rising investment scale
L&F continues to experience significant cash outflow from investment activities.
From 2022 to 2024, cumulative cash flow from investing activities reached negative KRW 883.2 billion (US$ 614 million). In the first half of this year alone, it was negative KRW 34.1 billion (US$ 24 million), mainly due to ongoing investment in expanding cathode production capacity.
L&F has also entered the lithium iron phosphate (LFP) cathode business in earnest, requiring additional capital.
This move is part of efforts to respond to recent signs that LFP cathode materials are becoming dominant in the global market.
In August this year, L&F established a wholly owned subsidiary, L&F Plus, investing KRW 201.1 billion (US$ 140 million) to lead the LFP business.
According to disclosures filed with the Financial Supervisory Service, this investment amounts to about 27.8% of L&F’s equity, equivalent to 7.14% of its total assets of KRW 2.8 trillion (US$ 1.9 billion) as of the end of 2024.
Although L&F initially planned to invest KRW 200 billion (US$ 139 million), it decided to contribute an additional KRW 1.1 billion (US$ 760,000) to meet customer demands. The final investment will be made in stages until the end of 2026.
Chairman Heo Jae-hong has taken the role of the first CEO of L&F Plus, while appointing L&F CFO Ryu Seung-heon as an internal director to ensure the smooth establishment of the new subsidiary.
Continuous dilution of Saeronix’s stake in L&F
Saeronix’s stake in L&F has been steadily diluted.
Because the cathode industry requires heavy facility investment, L&F has carried out multiple paid-in capital increases, which Saeronix has struggled to keep up with.
L&F raised KRW 20 billion (US$ 13.9 million) in 2016, KRW 82.6 billion (US$ 57.4 million) in 2020, and KRW 496.6 billion (US$ 345.2 million) in July 2021 through paid-in capital increases.
However, Saeronix, whose main business is electronics including LCD, generated only about KRW 62.5 billion (US$ 43.4 million) in standalone sales, revealing limited financial capacity. In the July 2021 capital increase, it participated only with a small amount and sold the rest of its subscription rights.
As a result, the stake of Saeronix and its related parties in L&F fell from 28.35% to 24.71%. By the end of 2022 it further dropped to 23.87%, 23.74% by the end of 2023, and 23.72% by the end of 2024.
Saeronix’s standalone sales were KRW 62.5 billion (US$ 43.4 million) in 2021, KRW 73.2 billion (US$ 50.9 million) in 2022, KRW 63.1 billion (US$ 43.9 million) in 2023, and KRW 55.5 billion (US$ 38.6 million) in 2024, showing no external expansion.
In terms of profitability, it also faces difficulties supporting L&F. Saeronix posted standalone operating losses of KRW 2.8 billion (US$ 1.9 million) in 2021, KRW 1 billion (US$ 700,000) in 2022, and KRW 2.5 billion (US$ 1.7 million) in 2023, before turning to an operating profit of KRW 1.1 billion (US$ 760,000) in 2024.
Although Chairman Heo Jae-hong has been personally purchasing additional L&F shares and buying back company stock, evaluations suggest these efforts are insufficient.
Thus, as L&F enters a growth phase, Saeronix faces a dilemma of weakening control.
L&F’s shareholding structure consists of Saeronix with 14.29%, Kwangsung Electronics with 3.34%, Chairman Heo Jae-hong with 2.02%, Kwangsung Jeonja with 1.61%, Heo’s younger brother Heo Jae-hyun, L&F vice president, with 1.57%, Heo’s sister Heo Loren Ja-yoon with 0.57%, and Heo’s son Heo Sung-taek with 0.05%.
If L&F fails to achieve results from its investments, the financial strain could worsen, further weakening the control of Saeronix and its related parties.
Kim Eung-kwan, senior researcher at Korea Ratings, commented, “Currently, most LFP cathodes are produced by Chinese companies, which gives L&F some advantage due to the U.S.-China trade conflict,” but added, “It will not be easy to secure price competitiveness compared with Chinese firms that have extensive production experience and capabilities, so uncertainty remains regarding investment results.”
#LNF #Saeronix #HeoJaehong #battery #LFP #cathodematerial #investment #SouthKorea #shareholding #China
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- Hyundai’s First Supercar N74 Set to Debut Next Year
- Chung Eui-sun, Chairman of Hyundai Motor Group, is stepping up efforts to target the luxury car market next year with Hyundai’s first supercar, the N74.
The design of the N74 inherits the legacy of the Pony Coupe, a concept car Hyundai unveiled at the Turin Motor Show in Italy in 1974 but abandoned plans for mass production. This makes the model significant in terms of Hyundai Motor Group’s heritage.
As the world’s first hydrogen-electric supercar, the N74 is also expected to showcase Hyundai’s hydrogen technology, which the group has positioned as a core task in the future mobility industry.
According to industry sources on August 31, Hyundai could begin mass production of the N74 as early as next year.
The N74 has attracted strong consumer interest as Hyundai’s first supercar. Its exterior design is not expected to differ much from the N Vision 74 concept car unveiled on May 18, 2023, which was itself inspired by the Pony Coupe. The N Vision 74 went on to win awards at all four of the world’s top design competitions (iF, IDEA, Red Dot, and Good Design).
The Pony was Hyundai’s first independently developed model and the first domestically produced car in Korea’s automotive history. Before the Pony, Hyundai’s cars were all licensed productions of Ford models.
If the Pony embodies Hyundai’s heritage, the Pony Coupe is remembered as a missed opportunity. Hyundai revealed the concept at the Turin Motor Show in 1974 and even prepared production facilities, but canceled its production plans in 1981.
At the unveiling of the N Vision 74 in 2023, Chairman Chung said, “There are many things to consider for mass production, but if consumers like it, there is no reason we cannot mass-produce it.”
The N74 is an important model for Chung as he continues to push into the high-performance luxury car market. Not only does it embody Hyundai’s heritage, but it is also being developed as the world’s first hydrogen-electric supercar.
If Hyundai successfully launches the N74 while positioning hydrogen ecosystem expansion as a key future mobility strategy, it could serve as a global showcase of the group’s hydrogen technology.
Some analysts predict that despite being a hydrogen-electric vehicle, the N74 will deliver a maximum output of around 770 horsepower, surpassing the performance of existing supercars.
A Hyundai spokesperson told Business Post, “We cannot confirm anything regarding mass production,” declining further comment.
However, during its 2024 CEO Investor Day, Hyundai featured the N Vision 74 in its presentation of electrified models planned through 2030. Industry insiders believe that Hyundai already built a performance verification prototype of the N74 in August last year and is now conducting real-road testing.
The launch of the N74 could come as early as the first half of next year. Hyundai is building a dedicated electric vehicle plant in Ulsan, scheduled to begin operations in the first half of next year. Once completed, the factory is expected to begin mass production of the N74.
Production will reportedly be limited to around 200 units, allocated by country. Price forecasts vary, ranging from KRW 200 million (US$ 139,100) to around KRW 500 million (US$ 347,700), considering its status as a hydrogen-electric supercar.
Hyundai already registered the N74 trademark in Korea and Europe in 2023. Interestingly, the company has decided that even overseas, the number 74 should be pronounced “Chil-sa” rather than “Seventy-four.” Since 2023, Hyundai has also been filing patents with the U.S. Patent Office for N74 development.
An industry official said, “I hear Chairman Chung is strongly committed to mass production of the N74. Hyundai still carries a strong mass-market brand image, but with plans to compete in the 24 Hours of Le Mans with its own racing car from next year, the group is working to establish itself as a luxury brand. If it goes on to mass-produce the world’s first hydrogen-electric supercar, it could raise Hyundai’s brand image in the global market to the next level.”
#Hyundai #N74 #supercar #hydrogen #electricvehicle #luxurycar #PonyCoupe #ChungEuisun #futuremobility #LeMans
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- HD Hyundai Bets Big with Unified Shipbuilding Push Against China
- HD Hyundai launches ‘Integrated HD Hyundai Heavy Industries’ to target global naval defense market
Chung Ki-sun, CEO of HD Hyundai and CEO of HD Korea Shipbuilding & Offshore Engineering, has unveiled a bold move with the launch of ‘Integrated HD Hyundai Heavy Industries.’
The initiative is aimed at positioning HD Hyundai Heavy Industries for both quantitative and qualitative growth by incorporating HD Hyundai Mipo, while proactively responding to the Korea-U.S. shipbuilding cooperation program known as “MASGA,” in line with the expansion of the global naval defense market.
HD Hyundai Heavy Industries has set an ambitious goal of increasing its current KRW 1 trillion (US$ 695.4 million) in special ship sales to KRW 7 trillion (US$ 4.9 billion) by 2030 and KRW 10 trillion (US$ 7 billion) by 2035.
By 2030, the company will focus on expanding domestic and overseas capacity for special shipbuilding, and by 2035, it plans to spearhead growth with unmanned vessels jointly developed with Anduril.
As part of strengthening its special shipbuilding capabilities, the company plans to reactivate the idle Dock No. 5 of HD Hyundai Heavy Industries and convert two of the four docks at HD Hyundai Mipo into special ship docks.
HD Hyundai Mipo currently has an annual production capacity of 70 vessels, while its actual annual construction volume stands at 45 vessels. With this spare capacity, the company stressed that there would be no decline in commercial ship output.
According to the shipbuilding industry, constructing Aegis destroyers in Korean shipyards costs about half of what it does in U.S. shipyards. This makes domestic construction of U.S. warships highly profitable, the company asserted.
In the face of intensifying competition with China, HD Hyundai also plans to strengthen investment in overseas production bases.
To regain market share lost to China, securing shipbuilding hubs in lower labor-cost regions has become essential. The strategy is to build high-value vessels in Korean shipyards and lower-value vessels abroad.
To this end, the company will establish a new investment corporation in Singapore in December, which will serve as a hub overseeing overseas production.
Under the new Singapore entity, overseas affiliates such as HD Hyundai Vietnam Shipyard (a subsidiary of HD Hyundai Mipo), HDHHIP (operator of the Subic shipyard in the Philippines under HD Korea Shipbuilding & Offshore Engineering), and Doosan Vina (to be renamed HD Hyundai Vina after its planned acquisition from Doosan Group in December) will be managed under a more efficient decision-making system.
Until now, overseas bases were developed separately by affiliates, which slowed both the integration of production capabilities and group-wide decision-making.
Future profits will first be reinvested into new production bases. Once profits grow significantly, they will be shared between ‘Integrated HD Hyundai Heavy Industries’ and HD Korea Shipbuilding & Offshore Engineering.
The company is also accelerating its efforts under the Korea-U.S. shipbuilding cooperation program MASGA.
It plans to establish a U.S. subsidiary with its own capital and is considering placing the entity under HD Korea Shipbuilding & Offshore Engineering.
Specific plans for the MASGA 1 project, signed between HD Hyundai Group and U.S.-based Cerberus Capital on August 25 (local time), will be drawn up after the summit concludes and following the return of government officials and Chung Ki-sun, Senior Vice Chairman of HD Hyundai.
The group dismissed speculation about a future merger between ‘Integrated HD Hyundai Heavy Industries’ and HD Korea Shipbuilding & Offshore Engineering, saying, “There are no such plans.”
#HDHyundai #shipbuilding #navaldefense #KoreaUScooperation #ChungKisun #HDHyundaiMipo #Anduril #MASGA #Singapore #ChinaCompetition
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- Hyundai CSO Chung Kyung-sun Champions Social Value, Unveils Child Support Plan
- Hyundai Marine & Fire Insurance (Hyundai Haesang) sincerely wishes for the healthy and happy lives of parents and children, who are its precious stakeholders. That is why Hyundai’s “I-Maum (Child’s Mind) Campaign,” as its name suggests, is being carried out with the hope that happiness will take root in the hearts of Korean children and their parents.
Chung Kyung-sun, Executive Vice President and Chief Sustainability Officer (CSO) of Hyundai Marine & Fire Insurance, stressed this as he opened the session “I-Maum Campaign – Parents and Children Together, Happily and Healthily” at the “2025 Social Value Festa.”
The Social Value Festa, first held last year, was held again this year on the 26th at COEX in Gangnam, Seoul.
Last year, Chung participated in the opening event and hosted the “Leaders’ Summit.” This year, he not only joined the opening ceremony but also took the stage under the name of Hyundai Marine & Fire Insurance to introduce a core project in a dedicated session.
The project Chung presented was the “I-Maum Campaign,” which Hyundai Marine & Fire Insurance has been promoting.
The company has long sold children’s insurance as a core product and has made supporting child education and parenting one of its key values.
In particular, it has focused on providing various types of assistance to children with developmental delays.
The newly launched “I-Maum Explorers” program is designed to discover early intervention solutions for children with developmental delays. Although only 15 teams were selected for the first round and another 15 for the second, a total of 175 teams applied, showing heated interest.
In addition, Hyundai is preparing the “I-Maum Playground,” a nurturing community where parents and children can grow together. It is envisioned as a local community-based childcare support space for children and caregivers.
The company explained, “Starting in 2026, we will gradually establish I-Maum Playgrounds,” adding, “Rather than simply setting up community facilities, we will support program operations for three years so that they can take root as genuine local communities.”
At the event, after Chung introduced the overall program, Chun Keun-ah, Chair of the I-Maum Explorers Steering Committee and a child psychiatrist at Severance Hospital, led a parenting panel talk.
In the session, Hyundai employees who are parents themselves asked questions, and Professor Chun provided answers, addressing the realities and anxieties parents and children face. Chun is known as a leading expert in autism spectrum disorders.
After the session concluded, Chung and other officials toured the Hyundai booth set up at the venue.
The Hyundai booth was located prominently near the main stage where major sessions were held. Compared to last year, it was larger and more centrally placed.
At the booth, visitors were drawn in by activities such as making keyrings and taking part in a fun personality quiz asking, “What kind of parent will you become?”
On August 26, people were seen visiting the Hyundai Marine & Fire Insurance booth at the “2025 Social Value Festa” held at COEX in Gangnam, Seoul.
Before joining Hyundai Marine & Fire Insurance, Chung had long worked in the “impact ecosystem” focused on creating social value, and has consistently emphasized cooperation between social enterprises and large corporations. He has maintained steady interest in sustainable management, collaboration, and generating social value.
Chung is the eldest son of Hyundai Marine & Fire Insurance Chairman Chung Mong-yoon. With experience in both nonprofit organizations and large corporations, he has participated in the Social Value Festa since its inaugural event last year.
Born in 1986, he graduated from Korea University with a degree in business administration and earned his MBA at Columbia Business School in the United States.
After graduation, he worked at the Asan Nanum Foundation, a public interest foundation. In 2012, he founded the nonprofit organization “Root Impact,” and in 2014 he established the venture capital firm “HGI,” which focuses primarily on sustainable value investments. These steps highlighted his interest in social value creation.
Naturally, when he joined Hyundai Marine & Fire Insurance in early 2024, he took on the role of Chief Sustainability Officer, leading the company’s ESG (environmental, social, and governance) strategy and its efforts to create social value. Hyundai itself has also been strengthening its corporate role and responsibility, as seen in the creation of a new Sustainability Management Division in January last year.
In the “2024 Integrated Sustainability Report” published this year, Chung stressed, “We will make it our top priority to recognize the impact we have on society and the environment as a whole and contribute to the community,” adding, “Through insurance products and services, investments, and various business areas, we will seek innovative business models that can embrace generations and communities, and further establish a foundation for co-growth through cooperation with stakeholders.”
#Hyundai #HyundaiMarine #insurance #ESG #sustainability #socialvalue #ImaumCampaign #childdevelopment #parenting #community
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- SK Innovation Powers Ahead with Rebalancing Amid Market Confidence
- SK Innovation to Test Market Confidence with First Bond Sale Since Merger with SK On and SK Enmove SK Innovation is set to confirm positive sentiment from financial markets through its first bond issuance following the merger of SK On and SK Enmove.
For Jang Yong-ho, SK Innovation’s Executive Vice President, the move is expected to ease some of the pressure from ongoing rebalancing efforts, including the sale of non-core assets.
According to the company on August 26, SK Innovation will conduct a demand forecast on August 27 for a corporate bond worth KRW 300 billion (US$ 208.6 million). Depending on investor interest, the issuance could be expanded up to KRW 600 billion (US$ 417.2 million). The purpose of the bond sale is to repay existing debt.
The deal carries symbolic weight as it marks the first bond issuance since the company announced plans at the end of June to boost corporate value through the merger of SK On and SK Enmove. Market sentiment appears favorable, with ratings agencies maintaining SK Innovation’s bond rating and outlook at “AA, Stable,” despite its deteriorating financial soundness.
This credit rating stability is expected to further ease the burden on Jang. SK Innovation’s financial struggles were evident in the first half of the year, when its interest coverage ratio fell below zero due to operating losses in its core petrochemical business. A ratio below one means the company cannot cover financial costs with operating profit. The figure had already fallen to 0.2 last year.
At the end of June, the consolidated debt ratio stood at 202.6%, and the net debt dependence ratio was 34.9%, both up from 178.8% and 28.1% at the end of last year.
As a solution to improve its financial structure, SK Innovation decided last year to bring SK E&S into the company as a company-in-company (CIC). SK E&S, known as a “cash cow” within the group thanks to its city gas operations, has since delivered visible benefits, contributing to the more favorable market view of SK Innovation.
On August 22, Korea Ratings said in a report, “SK Innovation, in addition to its traditional businesses, is expected to maintain a certain level of profit generation capacity through the inclusion of SK E&S. The company will likely be able to manage financial pressure with increased cash generation and capital reinforcement following the merger.”
Alongside these structural changes, Jang has accelerated financial improvements through the sale of non-core assets. This year, SK Innovation has worked to secure liquidity through asset securitization in SK E&S, while also pushing for the sale of SK Geocentric’s U.S. ethylene acrylic acid (EAA) and polyvinylidene chloride (PVDC) businesses, as well as its French packaging business. These assets were acquired in 2017 and 2020 for around KRW 850 billion (US$ 591.1 million).
At the time, SK Geocentric (then SK Global Chemical) had positioned the high-value packaging materials business as a next-generation growth driver. However, the company now faces difficulties from oversupply pressures originating in China.
In July, SK Innovation also decided to sell the headquarters building and site of Cowon Energy Service, a city gas subsidiary located in Daechi-dong, Gangnam-gu, Seoul, for KRW 505 billion (US$ 351.3 million). The property is considered highly valuable due to its proximity to prestigious school districts and strong local infrastructure.
In addition, SK Innovation is in talks to sell an NCC facility in the Ulsan Industrial Complex to Daelim Industrial (Daehan Yuhwa) as a countermeasure against the slowing petrochemical sector. The urgency is heightened by S-Oil’s nearing completion of its large-scale Shaheen NCC project, as well as the government’s recent announcement of restructuring measures encouraging voluntary reductions in NCC capacity by petrochemical firms.
An SK Innovation official said, “Executive Vice President Jang has consistently emphasized rebalancing and the sale of non-core assets. Beyond the ongoing discussions, we are continuously reviewing diverse options to make use of the company’s assets.”
Jang also faces the need for speed in rebalancing. The outlook for SK On, which carries the responsibility of preparing for the upcoming electric era, remains uncertain in the short term.
SK On is burdened by both a temporary slowdown in EV demand and heavy capital expenditures for facility investments. In its August 22 report, NICE Ratings maintained SK Innovation’s credit rating but warned, “The battery division continues to face high investment burdens. While the scale of Advanced Manufacturing Production Credit (AMPC) benefits in the U.S. is expected to grow with new facility operations, uncertainties remain due to the suspension of U.S. EV subsidies from late September.”
Since taking office, Jang has consistently stressed that rebalancing is a matter of survival. At the June corporate value briefing, he said, “We will reduce more than KRW 1.5 trillion (US$ 1.04 billion) of debt within this year and further cut net debt in 2026. Portfolio rebalancing is not optional but an essential task if SK Innovation is to raise its corporate value.”
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- Rhee Weighs Timing of Rate Cut as Fed Shifts, Housing Heats
- Bank of Korea Governor Rhee Chang-yong Relieved by Fed’s Policy Shift, but Housing and Household Debt Remain Key Concerns Bank of Korea Governor Rhee Chang-yong has felt some relief on the burden of further interest rate cuts as the U.S. Federal Reserve (Fed) signaled a shift toward monetary easing.
However, with the continued rise in metropolitan housing prices and household debt, concerns remain over the timing of additional rate cuts.
According to market analysis on the 25th, the Bank of Korea is widely expected to keep its key interest rate unchanged at 2.50% during Thursday’s Monetary Policy Committee (MPC) meeting.
Kim Ji-na, a researcher at Eugene Investment & Securities, said, “The urgency for rate cuts to stimulate the economy has lessened, and although the pace of housing price and household debt growth has slowed, it has not reversed.” She added, “We revise our outlook to expect a unanimous decision to keep the rate unchanged at the August MPC meeting, citing financial stability.”
Kim had previously viewed the July decision to hold rates as a “temporary pause,” projecting a higher chance of a rate cut in August. But in her latest report, she revised her stance.
Shin Eol, a researcher at SangSangIn Securities, also forecast that the August MPC will unanimously decide to maintain the current rate, while emphasizing the need to adjust the pace of monetary policy.
For now, the domestic economy is showing signs of recovery, aided by U.S. trade negotiations, as well as the Lee Jae-myung government’s execution of an additional supplementary budget. This has given the central bank room to wait until after the Fed’s expected rate cut in September before making its move.
Still, concerns persist that rate cuts could once again fuel increases in housing prices and household debt.
Following the June 27 mortgage lending restrictions, the pace of apartment price increases in Seoul has slowed somewhat. But transaction volumes are rising in the metropolitan area, and housing prices in major cities outside Seoul—where regulations have less impact—continue to climb.
According to the Korea Real Estate Board, apartment prices in Seoul rose by 0.09% in the third week of August from the previous week, marking 29 consecutive weeks of gains.
Household debt remains high despite government restrictions slowing its growth. In the second quarter, mortgage loans increased by KRW 14.9 trillion (US$ 10.4 billion), bringing the total household debt balance to KRW 1,952.8 trillion (US$ 1.36 trillion)—the largest figure since statistics began in the fourth quarter of 2002.
Ahn Jae-kyun, a researcher at Korea Investment & Securities, noted, “Since early August, apartment transactions in Seoul have picked up, and with slight declines in benchmark lending rates such as COFIX, housing price growth could accelerate again by late August or early September.”
He added, “Since both arguments for rate freezes and cuts exist, data will play a decisive role in the August MPC meeting. Household debt stability is critical for financial stability, and given that more confirmation is needed, I expect the August MPC to hold rates steady.”
Governor Rhee has also heightened his vigilance over the potential rise in housing prices and household debt.
At a parliamentary committee hearing on August 19, Rhee gave a positive outlook for an economic rebound in the second half of the year, but cautioned that the housing market required more monitoring.
“Following the June 27 measures, which capped mortgage loans in the metropolitan area at KRW 600 million (US$ 417,000), overheating in the housing market has eased. However, housing prices in certain areas of Seoul continue to rise, so it is necessary to see if this trend stabilizes,” Rhee said.
He stressed again that the Bank of Korea would closely monitor financial stability before deciding on its policy direction.
President Lee Jae-myung’s recent call for a second round of domestic demand stimulus, along with the possibility of a third supplementary budget this year, could also affect MPC decisions as the 2026 budget is drafted.
With the government supporting growth through fiscal policy, monetary policy may lean more toward ensuring stability in the housing market and household debt.
Park Hyung-jung, a researcher at Woori Bank, told Business Post, “The Bank of Korea has paused rate cuts since the new administration took office, watching the impact of fiscal measures. Given the housing market concerns, the central bank is more likely to cut rates once, around the fourth quarter, rather than in August.”
Still, Rhee has been relieved by the Fed’s signal of a rate cut, which reduces the burden of acting alone.
Currently, the interest rate gap between Korea and the U.S. stands at 2.0 percentage points, the largest on record. If the Fed maintained its hawkish stance, the Bank of Korea would have found it difficult to lower rates this year, regardless of timing.
A wider interest rate gap could diminish Korea’s investment appeal and drive foreign capital outflows. Maintaining a certain level of stability in the Korea-U.S. rate differential is also critical for exchange rate stability.
Fed Chair Jerome Powell, in his speech at the Jackson Hole symposium in Wyoming on August 22, said, “Policy is in a constrained space, and as the outlook and balance of risks change, we may need to adjust our stance.” This shift from his previous hawkish tone reinforced expectations for a September rate cut.
#BankofKorea #RheeChangyong #FederalReserve #interestrate #ratecut #housingmarket #householddebt #LeeJaemyung #monetarypolicy #Koreaneconomy
