[THE INVESTOR] Hyundai Heavy Industries has reshuffled its senior management ahead of establishing a holding company structure, the Korean shipbuilder announced on Nov. 14.

Chung Ki-sun, the eldest son of its largest shareholder Chung Mong-joon, has been promoted to vice president and will be in charge of managing the company’s subsidiaries, the company noted. 

Kwon Oh-gap.

In addition, the shipbuilding giant will now be led by CEO Kang Hwan-goo alone as chairman. Choi Kil-sun has withdrawn from management and Kwon Oh-gap has been appointed as representative of the holding company. The holding company’s name and launch date are yet to be finalized. 

“A common consensus has emerged that owner management should be given prominance in light of the company’s difficult situation. Promotion of the third-generation owners will be a true testament of how the company plans to move forward in terms of responsible management,” said an HHI official. 

The company also expressed its intention to complete the transition to a holding company system through the reshuffle. 

Hyundai Robotics, which previously acted as the holding company, will temporarily be called Hyundai Heavy Holdings and will be operated under former Vice Chairman Kwon Oh-gap. He will be tasked to find future growth engines and improve the company’s financial structure.

By Alex Lee (alexlee@heraldocorp.com)