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HD Hyundai chief praises workers' efforts, emphasizes need for innovation during New Year's address

Published: 31 Dec. 2025, 18:53

HD Hyundai Chairman Chung Ki-sun delivers a New Year's message to staff members in a video on Dec. 31, 2025. [HD HYUNDAI]

HD Hyundai Chairman Chung Ki-sun stressed the need for relentless innovation and bold risk-taking in 2026, warning that "technological superiority is never permanent" in his New Year's address delivered on Wednesday.

HD Hyundai’s major affiliates posted mixed performances this year, depending on their industry sectors. The shipbuilding and power equipment businesses reported strong results. HD Hyundai delivered its 5,000th ship this year — a first for any shipbuilder globally, while demand for power equipment also grew as investment in energy infrastructure and the replacement of aging facilities rose in tandem with the rapid AI expansion.

In contrast, HD Hyundai's petrochemical business struggled in a sluggish market and has entered a restructuring phase.

“Group-wide performance is showing improvement,” Chung said, crediting the gains to “the dedication and effort of our employees.”

Looking ahead, however, Chung warned that the business environment in 2026 remains “shrouded in uncertainty.” He cited persistent protectionist policies in major economies and continued oversupply from China. In the shipbuilding sector, key competitors in countries like Japan and China are gaining scale and efficiency through industry consolidation.

Chung pointed to “unrivaled technology and first-mover advantage” as the company's strategy. A recently delivered vessel by one of HD Hyundai’s shipbuilding units outperformed a Chinese-built counterpart by more than 20 percent in fuel efficiency, and reportedly impressed clients during sea trials, according to Chung.

Still, he cautioned that “technological superiority is never permanent” and emphasized the importance of sustained innovation — improving quality and performance while drastically cutting costs to maintain technological dominance.

The second part of his strategy is “fearless challenge.” Several major mergers will be finalized in the new year, including between HD Hyundai Heavy Industries and HD Hyundai Mipo, as well as HD Hyundai Construction Equipment and HD Hyundai Infracore. The group also plans to pursue untested ventures such as restructuring the petrochemical business, transforming its shipyards into digital operations, and expanding overseas shipbuilding capacity.

“It won’t be easy,” Chung said, “but HD Hyundai has a DNA of never backing down from a challenge, no matter the circumstances — and always finding a way to succeed.”

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 LEE SU-JEONG [[email protected]]