GS Caltex CEO Hur Sae-hong / Courtesy of GS Caltex

By Park Jae-hyuk

GS Caltex CEO Hur Sae-hong was appointed as chairman of the oil refining company's board of directors late last month to replace his predecessor, Huh Jin-soo, who decided to step down from the company's management, according to industry officials, Sunday.

Born in 1969, Hur is a great-grandson of the late Hur Man-jung, one of the co-founders of LG Group ― from which GS Group was spunoff in 2005 ― and the oldest son of GS Caltex Honorary Chairman Hur Dong-soo, who is the second-oldest son of the founder's oldest son, also the late founder of Samyang Tongsang, Hur Jung-koo.

When the GS Caltex honorary chairman resigned as director in 2016, the position of the board chairman went to his cousin, as GS Group's owner family members have customarily chaired the unlisted oil refining company's board of directors.

The latest replacement of the board chairman has been interpreted as part of the owner family's ongoing attempts to hand over control to the late founder's great-grandchildren. Along with the GS Caltex CEO, GS E&C President Huh Yoon-hong and GS Senior Vice President Hur Suh-hong are among the heirs who have come to the fore recently. They are expected eventually to vie for the group's control.

Some industry officials also viewed the GS Caltex CEO's appointment as board chairman as proof of GS Group's solid partnership with Chevron, as the U.S. energy company with a 50 percent stake in GS Caltex is said to have agreed to his appointment. Since Chevron established an oil refining company here in 1967 as a joint venture with LG Group, the U.S. firm has maintained its ties with GS Group, which holds another 50 percent stake in GS Caltex. The new board chairman also worked previously for Chevron between 2003 and 2006, before he joined GS Caltex in 2007.

As the GS Caltex CEO tightened his grip on the company, he is expected to accelerate efforts to find new growth engines. Last July, GS Caltex invested 30 billion won ($25 million) in Kakao Mobility to cope with new technologies. It also launched Energy Plus Hub, a futuristic gas station, which offers electric vehicle charging, car sharing, drone delivery and convenience store services.