SEOUL, May 21 (AJP) - As it marks its 20th anniversary this year, GS Group — one of South Korea’s largest conglomerates — is doubling down on digital transformation in a bid to reverse slowing growth and streamline operations in an increasingly volatile economic landscape.
The group commemorated the milestone on March 28 with a ceremony at the newly inaugurated GS Art Center, where leaders of its corporate relatives — LG, LIG, and LS — gathered in a rare family reunion of the once-unified LG empire.
“GS has consistently pursued growth despite rapidly changing business environments,” said Chairman Huh Tae-soo in a celebratory toast.
“We’ve cultivated a world-class petroleum export business in a country without a single drop of oil, built retail networks that enhance daily convenience, and expanded our construction business to improve quality of life.”
As the group embarks on its third decade, Huh emphasized a return to the founding ethos of “change and challenge,” positioning innovation as a catalyst for the next phase of growth.
Now ranked among South Korea’s top 10 business groups, GS traces its roots to LG Group, co-founded by Koo In-hoe and Huh Man-jung in 1947.
Family expansion and growing concerns over succession eventually led to the separation of LG into four corporate branches: LG, LIG, LS, and GS.
GS Group officially came into being in 2004 under the leadership of Huh Chang-soo, who established GS Holdings and spun off the group’s construction, oil refining, and logistics arms — forming what are now GS Engineering & Construction (GS E&C), GS Caltex, and GS Retail.
During its early years, GS pursued rapid expansion. In 2009, the group acquired trading firm SsangYong for 120 billion won ($84 million), rebranding it as GS Global to capitalize on international networks. In 2014, it executed its largest deal yet: a 564.9 billion won acquisition of STX Energy, which became GS E&R.
The group’s assets more than tripled from 18.7 trillion won in 2004 to 58.5 trillion won in 2014, while revenue nearly tripled to 64 trillion won. Although growth has moderated in recent years, the company has focused on consolidating core businesses.
But challenges remain. GS Group’s total fair assets fell 1.9 percent over the past year to 79.31 trillion won — bucking the trend of Korea’s major conglomerates, whose combined assets rose 7.4 percent to 3,301.8 trillion won.
GS Caltex continues to anchor the group’s performance, accounting for 57 percent of total sales, 30 percent of assets, and 27 percent of EBITDA in 2024, according to Korea Credit Rating.
Last year, GS Caltex posted 47.61 trillion won in revenue and 548 billion won in operating profit — down 2 percent and a steep 67.5 percent, respectively, from the previous year.
A GS spokesperson cited a slowdown in Chinese demand and uncertainties surrounding U.S. tariff policies as key headwinds for the refining and petrochemical sectors.
“The resolution of tariff uncertainties and a rebound in global demand will be crucial for our second-half performance,” the official said.
Still, GS Caltex is pressing forward on sustainability.
On May 14, the company announced it had led regulatory improvements at the International Maritime Organization (IMO) to promote bio-marine fuels.
Amid external pressure and a tightening market, GS Group reported first-quarter revenue of 6.24 trillion won in 2025 — a 0.8 percent decline from the previous year and a 2.6 percent dip from the prior quarter.
Operating profit rose 29.5 percent quarter-on-quarter to 800.2 billion won, but still marked a 21.3 percent drop year-on-year. Net profit surged 297.1 percent from the previous quarter to 291.5 billion won, though it remained 38.8 percent lower than the same period last year.
In response, the group trimmed its number of affiliates in 2024 to boost operational efficiency. Key moves included GS E&C’s sale of stakes in Zeit O&M and GS Elevator to private equity firm Genesis.
Inside the company, a generational shift is also underway. Chairman Huh Tae-soo is overseeing a fourth-generation leadership transition, with younger executives stepping into key roles. Among them is Huh Suh-hong, appointed CEO of GS Retail in 2024.
Seen as a departure from GS’s traditionally conservative approach, Huh Suh-hong has pushed for bold moves — including the acquisition of biosimilar company Hugel, signaling a shift toward healthcare and consumer innovation.
Now leading the retail arm, he aims to reposition the company amid growing competition from e-commerce players. “We’re laying the groundwork for a new era,” he said recently.
To that end, GS Group is investing in artificial intelligence across its petroleum, construction, and retail divisions — part of a broader effort to reignite growth and remain competitive in a fast-evolving global economy.
reporter
Kim Dong-young
davekim0807@ajupress.com
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