Hanwha’s Kim Seung-youn and Kim Dong-kwan: Will the Father-Son 'Parallel Theory' Be Completed?

[Korea Financial Times, Shin Haeju] Could it be the inherited managerial DNA?

Kim Dong-kwan, Vice Chairman of Hanwha Group, demonstrates leadership and decisiveness that closely resemble those of his father, Chairman Kim Seung-youn. In fact, Vice Chairman Kim is retracing the path his father walked 30 years ago.

The father-son duo, Kim Seung-youn and Kim Dong-kwan, both made pivotal moves at the age of 41. Despite living in different eras, their lives reflect a parallel theory of shared destiny.
Born in October 1983, Vice Chairman Kim Dong-kwan turned 41 this year. Last month, Hanwha Aerospace, under his leadership, announced plans for a capital increase through rights issuance. The move aims to expand overseas production bases and elevate the company to a top-tier position in global defense, shipbuilding, and aerospace industries.

Out of the KRW 3.6 trillion raised through the rights issuance, KRW 2.4 trillion will be allocated overseas. Specifically, KRW 1 trillion will be used to establish local factories for enhancing overseas defense production capabilities, KRW 600 billion for joint ventures (JVs) with foreign defense companies, and KRW 800 billion for acquiring stakes in overseas shipbuilding companies.

Among these allocations, approximately KRW 30 billion is required immediately this year to set up a JV with a Saudi Arabian defense company. Additional investments will follow sequentially: KRW 1.31 trillion in 2026, KRW 580 billion in 2027, and KRW 480 billion in 2028. It will take about three to four more years to fully utilize the funds raised through the rights issuance.

Chairman Kim Seung-youn also was reshaping Hanwha Group at the age of 41. In 1994, he declared a "second founding" of the group and diversified its business portfolio from explosives and heavy industries into petrochemicals and services. He acquired Hanyang Chemical (now Hanwha Solutions Chemical Division) and bought foreign stakes in Kyungin Energy (now Hanwha Energy), transforming Hanwha into one of Korea’s leading petrochemical companies.

Despite opposition from those around him, Chairman Kim boldly acquired Hanyang Chemical, which was struggling with Tens of billions of won in losses at the time. Within a year, he turned the company profitable.
He also rebranded Korea Explosives Group as Hanwha Group and reorganized all affiliates by 1995. Hanwha’s assets grew from KRW 500 billion in 1981 to KRW 5 trillion in 1991 and further to KRW 8 trillion by 1995.

The dramatic transformation from explosives to petrochemicals over the past 30 years has continued, evolving into a global top-tier defense, shipbuilding, and aerospace powerhouse.

This is the background behind Hanwha Aerospace’s move to carry out the largest rights offering ever by a Korean company.

The "parallel theory" between Kim Seung-youn and Kim Dong-kwan appears to be nearing completion. In response to market speculation that Hanwha Aerospace's rights issuance might be linked to family succession plans, Chairman Kim Seung-youn last month transferred nearly half of his stake in Hanwha Corporation—the group’s holding company—to his three sons: Vice Chairman Kim Dong-kwan, President Kim Dong-won, and Executive Vice President Kim Dong-sun. With this transfer, the three brothers now collectively hold shares in Hanwha Corporation, effectively finalizing the group's succession process.

Hanwha Group clarified that "the stock transfer was intended to ensure that Hanwha Aerospace's rights issuance is not associated with succession plans," adding that "the acquisition of Hanwha Ocean shares by Hanwha Aerospace is also unrelated to succession but rather part of a strategic initiative for global land-sea-air defense package operations."

Shin Haeju (hjs0509@fntimes.com)