Jeong Kye-seon Meets Visiting Bill Gates to Strengthen Korea-U.S. SMR Supply Chain Alliance

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Kye-Seon Jeong, Chairman of HD Hyundai, will meet with Bill Gates, founder and chairman of TerraPower, to discuss ways to expand cooperation in the Small Modular Reactor (SMR) business. HD Hyundai aims to leverage its expertise in constructing large structures in shipbuilding to expand its capabilities into next-generation nuclear power equipment and manufacturing supply chains, seeking new growth engines.

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According to industry sources on August 14, Chairman Jeong is scheduled to meet with Chairman Gates, who is visiting Korea today, to review the progress of TerraPower’s next-generation nuclear power plant, “Kemmerer Unit 1,” currently under development in Wyoming, USA, and to discuss possible cooperation on follow-up projects. They are also expected to discuss the supply of key equipment such as reactor vessels, the establishment of a manufacturing supply chain, and the possibility of expanding cooperation into the offshore nuclear power sector in the future.

Since investing $30 million in TerraPower, established by Bill Gates in 2022, HD Hyundai has been expanding its collaboration in the next-generation nuclear power sector. HD Hyundai Heavy Industries has agreed to supply the reactor vessel, a key piece of equipment for TerraPower’s next-generation nuclear power plant being built in Wyoming. The two companies are also cooperating to expand the manufacturing supply chain for the commercialization of sodium-cooled reactors.

Chairman Jeong and Chairman Gates have met several times to discuss TerraPower’s next-generation reactor projects and plans to establish a manufacturing supply chain. HD Hyundai is proactively investing in SMRs, even though they do not immediately contribute significantly to the company’s financial results, to create a new axis of growth that links shipbuilding and energy.

During his visit to Korea, Chairman Gates is also expected to meet with executives from Korean companies involved in nuclear power, including SK Group and Korea Hydro & Nuclear Power (KHNP), to discuss ways to cooperate on SMRs. SK Group is a major shareholder in TerraPower, having invested $250 million. KHNP is expected to discuss plans to further participate in TerraPower’s follow-up SMR projects, leveraging its expertise in nuclear power plant construction and operation.

Chairman Jeong, at a group executives’ meeting held the previous day, emphasized the need to focus on sustainable growth rather than short-term results. On August 13, HD Hyundai held a group executives’ meeting at the Pangyo Global R&D Center in Seongnam, Gyeonggi Province, attended by Chairman Jeong, Vice Chairmen Youngchul Cho, Seok Cho, and Sanggyun Lee, and the CEOs of 11 affiliates in shipbuilding, offshore, energy, and construction equipment, among others.

The executive team reviewed each affiliate’s first-half results, new business initiatives, and future growth strategies, and discussed business plans and execution strategies for the second half of the year to respond to internal and external uncertainties. They also examined the accelerated transition to artificial intelligence (AX), status of AI technology adoption, and measures to counter information security risks.

HD Hyundai posted consolidated revenue of 22.4094 trillion won and operating profit of 4.1246 trillion won in the second quarter of this year. This marked increases of 30.2% and 262.2%, respectively, compared to the same period last year. The cumulative operating profit for the first half of the year was 6.9594 trillion won, with the main businesses of shipbuilding, construction equipment, refining, and electric power equipment all contributing evenly to this performance.

At the meeting, Chairman Jeong commented, “Despite growing uncertainty worldwide, our group achieved solid results in most businesses.” He continued, “We have experienced painful lessons in the past when we became overly fixated on short-term results and failed to anticipate market changes. We must not become absorbed in near-term achievements, but instead take a long-term view—looking ten or twenty years ahead—to create a managerial environment that can drive sustainable growth.”

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Chairman Jeong also emphasized the importance of safety. He said, “While we must think more intensely and prepare for future businesses, the future we envision can only be achieved when safety is guaranteed. Therefore, please make safety the top priority in management and direct our capabilities toward it.”

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