Hanwha Group's headquarters in Seoul / Courtesy of Hanwha Group

Hanwha Solutions Vice Chairman Kim Dong-kwan / Courtesy of Hanwha Group

All eyes on next step of chairman's oldest son

By Park Jae-hyuk

Hanwha Group is in the midst of rebranding its affiliates, causing speculation that the conglomerate has taken preparatory steps for Hanwha Solutions Vice Chairman Kim Dong-kwan, the oldest son of Hanwha Group Chairman Kim Seung-youn, to gain control of the group.

SIT, a subsidiary of Hanwha Energy, said Tuesday that it was renamed Hanwha Convergence, with the aim of focusing more on helping its clients to use eco-friendly energies at their factories better. It also appointed Kim Chang-yeon, Hanwha Energy's financial planning team head, as the new CEO.

"With the rebranding, we will accomplish our mission to 'make tomorrow's dream come true by adding value to technology' and provide differentiated services in the fields of factory solutions and green energy, based on our company's massive data processing technology and capability in surveillance, control and system integration," the new CEO said.

The largest shareholder of Hanwha Convergence's parent firm, Hanwha Energy, is the Hanwha Solutions vice chairman. He holds a 50-percent stake in Hanwha Energy, while his two younger brothers each hold a 25-percent stake, respectively.

Hanwha E&C, which merged with Hanwha Corporation, the group's de facto holding firm, was also rebranded the same day as Hanwha Corporation/E&C with a new corporate identity.

"Based on sustainable growth, we will prepare the green infrastructure developer for a new leap forward," Hanwha Corporation/E&C CEO Kim Seung-mo said.

Earlier this week, it was reported that Hanwha Aerospace's subsidiary, Hanwha Techwin, is considering changing its name into Hanwha Vision, as the company does not engage in the defense industry anymore.

According to the Korea Intellectual Property Office, Hanwha Corporation applied for trademark rights for Hanwha Vision on Oct. 19, with a plan to focus on the CCTV business.

Since its acquisition of Samsung Techwin seven years ago, Hanwha Group has maintained the Techwin brand. If Hanwha Techwin changes its name, it will be the first time in 22 years for the company to abandon the brand.

Earlier this year, Hanwha Group indicated its intention to concentrate on defense systems and the eco-friendly energy businesses, both of which are under the control of the chairman's oldest son, who was promoted in August to vice chairman.

In the latest executive reshuffle, the business group also introduced a position-based system instead of a level-based system, so as to give executive seats to suitable experts. The new system has been regarded as a part of Hanwha Group's efforts to adopt a more flexible corporate culture by rewarding its employees based on their performances.