ULSAN, South Korea. Oct 8 The new boss of the worlds biggest shipyard has begun a crusade to sweep away decades of shadowy business tactics, at the risk of offending South Korea’s corjjorate old-guard, reports AFP.

Jo Chung-Hwi. 58. who took over as chief executive officer of Hyundai Heavy Industries Co. two years ago. Is seeking to rid the industry of opaque business practices and defend South Korea's dominant position.

The 25-year veteran of the shipbuilding business is known to ollvagues as biilllo/ f lor his uncompromising fight within llxiindai Gioup. the country's largest family-controlled conglomerate.

For decades, the conglomerate had relied heavily on the money-spinning shipbuilders revenue to support other Hyundai units.

No more. The shipyard is now virtually independent. I Ihivr endeavoured to shatter old pr.uiicrs such as intra-group ross payments/ said Jo. as he peered from the window ot a lull-fop guest house at (he sprawling shipyard fam-par ked with huge vessels under ui-siructlou,

Jo. an admirer ol former British prune minister Magarct Thatcher, started legal action against I Ivundat Electronics Industries Co. and Hvundai Securities Co. last month Io retrieve 220 million dollars it repaid a Canadian bank on their behalf

The unprecedented suit underscored a growing consensus among Hyundai Heavy Industries' 26.000 employees that the profitable shipvard should he run Independently. Jo said.

"Transparency In corporate governance is a social proposition/ he said, calling for more ojien management based on a Korean-style corporate culture through top-down cooperation.

'I have fried hard to build a cousf’usus with employers in Hits shipyurd. once notorious loi union mllllniicv/ hr said.

My campaign is paying oil As you see. labour disputes have almost tapered oft/ he said.

South Korea’s eronomy has been in limbo since the country plunged into crisis in lair 1997.

But the shipbuilding Indus-trx. led by Hyundai, has enjoyed a new boom, securing 40.9 per cent of the global market last year ahead of Japan with 30 per cent, followed by the European Union nations With I 8 7 P r cenl .md liHM 9 10.4 per cent.

South Korean s h i pya rd s have a backlog of orders rising to 16 million gross tonnes that would keep them going lor two years. Hyundai alone has a backlog of ten million tonnes.

E11 ropeai i con i pr 11 tor s I lavr accused South Korean shipyards of receiving uniair state subsidies. Jo. however, attributed his success to lower production costs and the won s deprcc iation making ex|M»i ts more competitive.

Jo said shipbuilding had played a major role in helping South Korea ride out its crisis.

’For South Korea, which is pc>or in natural resources, shipbuilding Is not vet a declining Industry This will remain a leading lon'lgu currency earner at least until 2040.”

Bui he admits the indu%(i\ needs a revamp to improve pi olitability through diverslli-canon.