OCTOBER 16, 2014 — South Korea's Hyundai Heavy Industries Co., the world's largest shipbuilder, said today that it has cut back the number of executives, including those at Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co., by 31 percent, or 81 out of 262.
Hyundai Heavy reported a net loss of 616.6 billion won (US$593.6 million) in the second quarter, with its operating loss being a record 1.11 trillion won. It named Kwon Oh-gap, former CEO of Hyundai Oilbank Co., as its new president in September. Four days ago, Mr. Kwon ordered all executives at Hyundai Heavy, Hyundai Mipo, and Hyundai Samho to hand in their resignations. It had been one month since his inauguration.
According to South Korean media, the resignation demands came after Mr. Kwon had a meeting October 12 with Chairman Choi Gil-seon to inaugurate the reorganization.
"Executives necessary for new organization will be reappointed, and capable general managers will be promoted early," Mr. Kwon said then. "I will transform this organization to be young and energetic."
In the reshuffle, Korea Times reports, the company promoted 31-year-old executive director Chung Ki-sun to vice president. He is the oldest son of the company's largest shareholder.
Ha Gyung-jin, who served as CEO and senior executive vice president at Hyundai Samho Heavy Industries, was promoted to CEO and president of the company.
Moon Jong-bak, who served as CEO and senior executive vice president at Hyundai Oilbank, was also promoted to CEO and president of the company.