Kim Dong-kwan(left), Koo Kwang-mo LG Group Chairman@yonhapnews
SEOUL, Jung Hee Lee (Newsimpact) - In the realm of corporate elites, one name has recently stood out: Kim Dong-kwan, the Vice Chairman of Hanwha Group. It's well-deserved recognition, considering his seamless handling of the acquisition of Daewoo Shipbuilding & Marine Engineering, now rebranded as Hanwha Ocean. Thanks to Kim's efforts, Hanwha Ocean has set sail smoothly, solidifying his reputation as a star in the business world.
Amidst a positive atmosphere, Kim Dong-kwan has taken proactive steps to reinforce his position. On the 7th, he visited Hanwha Ocean's shipyard in Geoje, South Gyeongsang Province, to boost employee morale. Later, at the 13th International Maritime Defense Industry Exhibition (MADEX 2023) held at Busan's BEXCO, he surprised journalists by unveiling Hanwha Ocean's vision.
Many media outlets have applauded Kim Dong-kwan's statements, including his commitment to "no forced restructuring" and prioritizing national security and expanding Korea's defense industry history over mere profit maximization. The competition between Kim Dong-kwan and Jung Ki-seon, CEO of HD Hyundai (formerly Hyundai Heavy Industries), two contemporaries, has sparked articles envisioning a revitalized domestic shipbuilding industry.
However, as Kim Dong-kwan surges ahead on the winds of success, it's worth noting that his decisions haven't all been perfect. There have been perplexing choices, particularly his decision to replace 35 executives from Daewoo Shipbuilding & Marine Engineering with Hanwha personnel, a move considered by many to be an excessive overhaul.
Kim Dong-kwan's determination likely stems from his desire to rejuvenate Daewoo Shipbuilding & Marine Engineering, marred by controversies such as accounting scandals, political turbulence, and managerial misconduct. To achieve this, he may have felt compelled to institute a strict restructuring, even if it meant creating a stable foundation under his own leadership. There's a certain resonance in his resolute stance—reforms that come without sacrifice are often nothing more than an illusion.
However, moderation is key. Such a sweeping transformation, akin to an occupying force's regime change, regardless of intent, sends a message akin to "those with a Daewoo Shipbuilding & Marine Engineering background need not aspire to leadership within the organization."
Furthermore, consider the emotions of those Daewoo Shipbuilding & Marine Engineering alumni who witnessed the expulsion of long-standing colleagues. The Hanwha personnel's swift takeover of leadership positions could have left them disheartened, as they watched their seniors, who had shared the same journey, being pushed aside.
Business, unlike the domain of cold calculation, involves human emotions. Leaders of enterprises, which consist of human beings, must factor in their employees' vulnerability to emotional wounds. This is how an organization can harness its collective strength.
Had Kim Dong-kwan understood this fundamental human aspect, he might have opted for a less drastic approach. He could have retained some of the senior executives, including the CEO, from Daewoo Shipbuilding & Marine Engineering, reassuring the employees and aiming for a harmonious transition. However, Kim Dong-kwan seems to have stirred a sense of resignation and frustration among them. This decision starkly exposes the limits of a desk-bound elite's leadership style.
The late Lee Kun-hee, former Chairman of Samsung Electronics, once said during his high school days, "I study human nature the most." He recognized early on that understanding humanity is paramount for leaders. As Kim Dong-kwan takes the helm of Hanwha for the foreseeable 20 to 30 years, learning from Lee Kun-hee's legacy could be the path to securing Hanwha's future, as the 7th-ranked conglomerate navigates the challenging waters ahead.
By Jung Hee Lee
저작권자 ⓒ 뉴스임팩트, 무단 전재 및 재배포 금지