Hyundai Rotem reorganizes to consolidate next-generation business units

Hyundai Rotem announced Wednesday that it carried out a corporate reorganization on July 1 to consolidate next-generation business units that had been spread across separate divisions, aiming to improve operational efficiency and respond proactively to a growing range of project orders.

The defense division, formerly known as the Defense Solution (DS) division, will be renamed the AD (Aerospace & Defense) & RH (Robot & Hydrogen) division. Its internal structure will expand from one business unit and four offices to two business units and six offices.

The Defense Solution Global Business Unit, which had handled overseas defense projects, will be renamed the AD Global Business Unit with an added aerospace role. Robot and hydrogen teams previously scattered across the defense, rail and eco-plant divisions will be consolidated into a single RH Business Unit, comprising a Robot AX Business Office and a Hydrogen Energy Business Office. The existing DS Planning Office and DS Domestic Business Office will be renamed the AD&RH Planning Office and AD Customer Experience Business Office, respectively.

The rail division, currently called the Rail Solution division, will be renamed the RS (Rail & System) division. Its structure will shift from eight offices to one business unit and eight offices. The Domestic Business Group — a department-level unit that had overseen domestic public procurement and private-sector projects — will be elevated to the RS Customer Experience Business Unit. The Domestic Business Office and Private Sector Business Office under the former group will be renamed the RS Domestic Business Office and RS Private Sector Business Office, respectively, while the operations and maintenance (O&M) team within the private sector office will be elevated to the RS O&M Business Office.

The company said the defense division restructuring reflects a strategic emphasis on expanding into the emerging global commercial aerospace sector. By placing physical AI and hydrogen energy operations under a single command, Hyundai Rotem said it expects to improve not only operational efficiency but also the consistency and completeness of its business execution.

The rail division reorganization was driven by a commitment to contribute more to public welfare and civic infrastructure, the company said. The goals include raising the domestic content ratio of Korea's homegrown high-speed rail vehicles — which recently achieved their first overseas export — and responding more actively to rising demand for domestic private-sector projects, with a focus on delivering quality vehicles on schedule to maximize customer satisfaction.

"As a company operating in core national industries, we approach every project with a deep sense of responsibility," a Hyundai Rotem official said. "We will do our utmost to ensure that the enhanced future business capabilities from this reorganization translate into genuine customer satisfaction."

Meanwhile, 37 Hyundai Rotem executives, including President and CEO Lee Yong-bae, recently purchased 8,683 shares of the company, citing confidence in its future growth and a commitment to responsible management and shareholder value.