Hyundai Corporation Finds and Fosters SMEs as if “Pearls in the Mud”
Chairman Chung Mong-Hyuck presents a new strategy
“Big picture of 10 years after small investment”
Hyundai Corporation will be reborn as an “investment-type general trading company” that will enter overseas markets in partnership with domestic small and medium-sized companies. After signing various types of partnerships with small and medium-sized companies that have products and technologies but have difficulties in overseas businesses such as market development, the company will use its global network to clear the way for exports.
Chairman of Hyundai Corporation Chung Mong-Hyuck, who decided to remove the meaning of general trading company from the company’s name last year, defined the business strategy as “small but certain achievements” over the next 10 years. Chairman Chung is the only son of Chung Shin-Yung, the fifth younger brother of Chung Ju-Yung, the honorary chairman of Hyundai Group.
According to Hyundai Corporation on June 1st, Chairman Chung recently said at a global strategy meeting attended by 80 executives and employees from more than 30 countries, “We need to grow and develop through various small investments in the next 10 years. If 10 years of “small but certain success” accumulates and our size and capability become stronger, we will consider large-scale projects based on this.” He added, “The biggest challenge given to us now is to disperse and minimize all possible risks.”
As Chairman Chung said, the prerequisite for “small but certain achievements” is “finding pearls in the mud.” The move is aimed at finding small and medium-sized Korean companies with sufficiently competitive technology on the global stage and entering overseas together. The partnership will be formed in various types, such as equity investment or establishment of a joint venture. If it stops here, it will only serve as an investment company, but Hyundai Corporation is an “investment-type general trading company” model in that it mobilizes all global networks secured from existing trading businesses.
Currently, Hyundai Corporation is seeking to acquire a domestic mechanical parts material company. Earlier, it also invested in mushroom producer Korea Green Mushroom Park, lactobacillus probiotics company Verm, and home meal replacement (HMR) startup Open the Table. Partnership areas are not restricted to Korea. An official from Hyundai Corporation explained, “We are preparing for a forklift rental business with our Australian partner, and we are also promoting solar panel recycling businesses in Japan and the United States.”
However, just as the company gave up the acquisition of management rights of Sinki InterMobil, a car parts company that was selected as the preferred bidder in May last year, Hyundai Corporation is also boldly giving up acquisition or investment decisions if it is not sure about the success of the business.
As the field of business discovery expands and the type of business is getting more complex and diverse than the existing trade industry, Hyundai Corporation plans to make considerable investments in fostering talent. Chairman Chung stressed, “We will provide various educational programs and invest more to secure multi-tasking talents who can do various tasks well in combination.”
June 1, 2022 Maeil Business Newspaper