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- Earnings improve on expanded North American power equipment orders and recovery in textiles and chemicals.
- Strengthening competitiveness in future businesses, from localized power equipment production to bio-based materials.
- Chairman Hyun-Joon Cho calls data "the oil of the 21st century," directing the expansion of AI data centers.
- Developing Global Talent with Humanities-Based Perspectives to enhance overseas business competitiveness.
SEOUL, South Korea, Aug. 10, 2026 /PRNewswire/ — Hyosung Group Chairman Hyun-Joon Cho’s management strategy, which anticipated the industry shift toward AI and power infrastructure, has led to tangible results for major affiliates.
His management strategy of making proactive investments in high-growth areas such as power equipment, while restructuring existing businesses like textiles and chemicals around high value-added products, has resulted in strong performance in power equipment, strengthened competitiveness in textiles, and a recovery in the chemical business, thereby broadening the group’s foundation for growth.
For sustainable growth, Hyosung is advancing its operations with a focus on power solutions, bio and functional materials, premium chemical products, and AI data centers. The plan is to strengthen the earnings base of existing businesses through enhanced technological competitiveness and synergy among affiliates, while simultaneously securing new growth engines.
Earnings recovery in textiles and chemicals alongside proactive investments in North American power equipment
Hyosung Heavy Industries recorded KRW 3.0451 trillion in sales and KRW 416.6 billion in operating profit in the first half of this year. New orders reached KRW 7.4981 trillion, approaching last year’s annual total. Establishing a local production and sales base, along with a customer response system ahead of the expansion of the North American power equipment market, directly led to this increase in sales and orders.
Chairman Hyun-Joon Cho has emphasized, "With the spread of AI and data centers, power infrastructure has now become a core industry directly linked to national security. We must establish ourselves as an irreplaceable core partner in stabilizing the U.S. power grid."
Hyosung TNC achieved KRW 4.5104 trillion in sales and KRW 275 billion in operating profit in the first half. In particular, the second-quarter operating profit was KRW 188.8 billion, exceeding market expectations. Amid improving spandex market conditions, the company utilized its global production and sales network to respond to regional market changes, resulting in increased sales volume and profits.
Despite the sluggish global petrochemical market and oversupply, Hyosung Chemical followed its first-quarter turnaround with a second-quarter operating profit of KRW 170.8 billion. First-half sales stood at KRW 1.4583 trillion, with an operating profit of KRW 171 billion, laying the groundwork for earnings normalization. A decrease in global PP supply and rising prices due to uncertainties in the Middle East, combined with production stabilization, cost reductions, expanded sales in Europe and Japan, and increased sales of high-value-added products, supported the improvement in operating profit.
Strengthening the North American production system for power equipment and expanding the textile business with bio-based materials
Hyosung is enhancing the competitiveness of its core businesses while securing new growth engines. The power equipment business is transitioning from supplying individual products to becoming a global total solution provider, while the textile business is expanding its scope from spandex to bio and functional materials.
Hyosung Heavy Industries is strengthening the localization of production and supply in the North American power equipment market. Through the expansion of its Memphis plant, the company plans to increase its ultra-high voltage transformer production capacity by over 50% by 2028. Additionally, by establishing a joint venture for ultra-high voltage circuit breakers with Quanta Services in the U.S., it has become the first Korean power equipment company to establish production capabilities for both transformers and circuit breakers in the United States.
Based on this, the company plans to secure supply capabilities encompassing transformers, circuit breakers, GIS, and HVDC. Chairman Hyun-Joon Cho has presented a vision to grow Hyosung Heavy Industries from an individual power equipment manufacturer into a global provider of integrated power solutions that supports the stable operation of global power grids.
Hyosung TNC is expanding its business into the bio and functional materials sector by leveraging the technology and customer base accumulated in its world-leading spandex business. The company plans to respond to global customers’ demand for low-carbon materials by producing sugarcane-based bio-BDO in Vietnam and building a production system that connects this to PTMG and bio-spandex.
Chairman Hyun-Joon Cho: "Data is the oil of the 21st century" – Fostering the AI data center business
Viewing the AI era as a new growth opportunity for the group, Chairman Hyun-Joon Cho has set the mid-to-long-term direction by calling for the development of capabilities in next-generation power transmission technology (HVDC) and power technology for AI data centers, as well as the establishment of a group-level AI research system.
In particular, he emphasized the vision of fostering the AI data center business by combining the strengths of affiliates in power equipment, construction, and IT, stating, "Data is the oil of the 21st century, and AI competitiveness is national competitiveness."
Accordingly, Hyosung Group is developing data centers into a comprehensive business that integrates power infrastructure, energy solutions, construction, and cloud operation capabilities. The plan is to create a new group-level growth engine by expanding the competitiveness secured in the power infrastructure market into the AI infrastructure business.
Developing Global Talent with Humanities-Based Perspectives
Hyosung is also focusing on securing and nurturing talent capable of reading changes in overseas customers and markets, and translating these into technological developments and new business opportunities.
Chairman Cho has consistently emphasized that in the era of AI and advanced technology, understanding humans, customers, and markets is just as important as technological prowess. In a past interview, he stated, "The power to read change, the power to read the timing of riding a roller coaster, lies in the humanities. We must look half a step ahead of the current flow of the world." This reflects his management philosophy that one must proactively grasp market changes and seek new business opportunities based on humanistic insights.
The recent special recruitment of humanities majors is an extension of this philosophy. The plan is to select talent equipped with humanistic knowledge, language skills, and a global mindset, assign them to overseas operations, and foster them as global talents who deeply understand local customers and markets.
Through this, Hyosung intends to enhance its responsiveness in overseas markets and strengthen engagement with global customers, thereby further solidifying its business foundation.
Website: https://www.hyosung.com/en/