Hyundai Motor Board Chairman on Edge Over Generation Change Decision

Chung Eui-sun, Executive Vice Chairman of Hyundai Motor Company / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kiho Sung] Hyundai Motor Group held a board meeting on the morning of the 19th to discuss various issues, including whether to renew Chairman Chung Mong-koo's term as an inside director and amendments to the articles of incorporation.

The main agenda of the board meeting held that day was whether to renew Chairman Chung's position as board chairman and inside director. Chairman Chung's term as an inside director will expire on the 16th of next month. Once his term ends, the position of board chairman will naturally become vacant. Since March 1999, Chairman Chung has served as the chairman of Hyundai Motor's board and CEO, growing Hyundai Motor Group into the world's fifth largest automaker. However, he has not been actively involved in management since 2018. Inside and outside the company, there is a high likelihood that Chairman Chung's term as an inside director will not be renewed.

Accordingly, the business community's attention is focused on whether Chung Eui-sun, Hyundai Motor Group's Executive Vice Chairman, will take over the chairman position at the shareholders' meeting in mid-next month. Industry insiders believe that if Chairman Chung steps down from the board chairman position, it would symbolize an official generational change, but the actual impact would be limited. There is also a possibility that, reflecting global trends, a professional manager rather than a family member of the group’s head will assume the board chairman role.

Therefore, the main agenda of the board and shareholders' meetings is expected to focus more on the future mobility business promoted by Vice Chairman Chung rather than the board chairman position.

At the board meeting, various items were discussed as additional business purposes, including urban air mobility using personal flying vehicles, hydrogen fuel cell vehicles, and autonomous vehicles, all of which Hyundai Motor Group is currently pursuing.

Additionally, since Hyundai Motor Group has decided to introduce an electronic voting system to all listed affiliates, detailed plans to enhance shareholder value, such as the introduction of electronic voting, were also addressed.

Currently, Hyundai Motor Group is promoting the introduction of electronic voting systems for Hyundai Motor, Kia Motors, Hyundai Steel, Hyundai Mobis, Hyundai Construction, Hyundai Wia, Hyundai Rotem, Innocean, and Hyundai AutoEver. Including Hyundai Glovis, Hyundai BNG Steel, and Hyundai Motor Securities, which have already adopted electronic voting, a total of 12 companies will implement the electronic voting system once these nine companies adopt it.

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