Kisun Chung-Led HD Hyundai Hands Shipbuilding Helm to Vice Chairman Lee Sang-kyun

[Financial News] HD Hyundai, led by Chairman Kisun Chung, has put Vice Chairman Lee Sang-kyun of HD Hyundai Heavy Industries in charge of the group’s shipbuilding business. Lee will oversee the entire shipbuilding operation across affiliates including HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (HDKSOE), HD Hyundai Heavy Industries and HD Hyundai Samho Co., Ltd. The appointment appears aimed at strengthening ties among affiliates, developing future growth engines and preparing for uncertainty in the shipbuilding market.
HD Hyundai said on the 7th that it had made its 2026 executive appointments, including naming Lee Sang-kyun vice chairman in charge of shipbuilding. The appointments came a month earlier than the usual timing in November, and even earlier than last year, when the company moved quickly in light of a planned merger among affiliates. The move suggests a determination to strengthen its ability to respond proactively amid concerns that a downturn in the shipbuilding industry could return.
Lee Sang-kyun has served as CEO of HD Hyundai Heavy Industries since 2021, after heading HD Hyundai Samho and the shipbuilding and offshore business at HD Hyundai Heavy Industries. He was promoted to vice chairman last October and also serves as chairman of the Korea Offshore & Shipbuilding Association (KOSHIPA).
Lee will set priorities for strengthening the capabilities of each shipbuilding affiliate, develop response strategies and coordinate their work efficiently. His role is to shape an overarching strategy that accounts for uncertainty in the shipbuilding market—in particular, preventing overlapping investment during boom periods and preparing in advance for future supercycles. Shipbuilding orders have recently become harder to predict, as demand for newbuilds is driven not only by cycles in the global economy but also by geopolitical factors such as the wars in Ukraine and Iran. Intensifying competition from China is adding another variable.
Joining Lee as co-CEO of HD Hyundai Heavy Industries will be Jo Min-su, the company’s head of shipbuilding. Promoted from executive vice president to president, Jo has been tapped to serve as CEO overseeing safety. As a veteran of the front lines, Jo is expected to strengthen the company’s safety management capabilities.
Putting President Jo in charge of safety also signals an effort to strengthen the authority of executives responsible for safety, particularly after a serious industrial accident occurred this year. Under the Lee-Jo leadership, President Geum Seok-ho will focus on overseeing management support.
A HD Hyundai official emphasized, “This appointment reflects our commitment to strengthening the capabilities of shipbuilding, the group’s core business, while making safety at our worksites our top priority.”
In addition to the existing shipbuilding business, Lee will also lead new ventures such as power-generation engines for artificial intelligence (AI) data centers and small modular reactors (SMRs). HD Hyundai Heavy Industries supplies its independently developed HiMSEN marine power-generation engines for data center power systems. In the SMR field, an SMR marine technology demonstration center has been launched in partnership with 12 organizations, including major companies and universities in Korea’s shipbuilding and nuclear power sectors. The company is targeting the growing markets for engine-based power generation and next-generation energy, driven by surging electricity demand in the AI era.
HD Hyundai Heavy Industries had previously decided to invest 833.6 billion won in a new production facility for HiMSEN engines with a capacity of 3 GW, and 238.6 billion won in a dedicated plant for manufacturing major SMR components. Both projects are set to break ground in the first half of next year. The HiMSEN facility will be able to produce about 150 engines a year and is scheduled for completion in May of the year after next. The SMR component plant is targeted for completion in April 2029.
Han Joo-seok, president of HD Hyundai Heavy Industries’ Engine and Machinery Division, will spearhead Lee’s push into new businesses. Han, who joined the Engine Division in 1994, is regarded as an expert with broad experience in marine engine design, research and development (R&D), production and sales. Han will help grow the data center engine business, starting with the construction of the HiMSEN production facility. Han is also expected to expand cooperation with engine affiliates across the group, including HD Hyundai Marine Engine and HD Hyundai Engine.
A HD Hyundai official said, “We will maintain our position as a world leader in shipbuilding and grow into a sustainable company through continued efforts to strengthen our competitiveness.”
Park Chan-hyeok, who was appointed co-CEO of HD Hyundai XiteSolution alongside Chairman Kisun Chung, was also promoted from vice president to president. With expertise in production and quality gained on construction equipment production floors, Park has headed overseas subsidiaries in Europe and China, as well as the Global Production Division and the Quality and Production Strategy Division. HD Hyundai XiteSolution is increasing its industrial vehicle production capacity to 24,000 units a year as it completes the modernization of its Ulsan plant, an investment of 93 billion won.
In short, all CEOs of HD Hyundai’s affiliates are staying on, while the group is reorganizing its leadership structure, including putting Lee in charge of shipbuilding. Following these executive appointments, HD Hyundai plans to complete further executive appointments soon and hold a management strategy meeting to finalize next year’s business plans.
[email protected] Kim Yun-ho Reporter