Jung Eui-sun, 'All In' on Future Cars

Hyundai Motor Group Vice Chairman Chung Eui-sun is delivering a New Year's address at the 2020 Hyundai Motor Group Kick-off Ceremony held at Hyundai Motor Company headquarters in Seocho-gu, Seoul, on the 2nd. Photo by Hyunmin Kim kimhyun81@

Hyundai Motor, Kia Motors, and Mobis Retain Director Positions

Group Focuses Capabilities on Future Mobility

Restructuring Rumors Except Hyundai Steel’s Steel Sheet Business

Chairman Chung Mong-koo Steps Down from Board of Directors

The 'Jung Eui-sun Era' as the De Facto Leader Begins in Earnest

[Asia Economy Reporters Park So-yeon, Kim Ji-hee] Chung Eui-sun, Executive Vice Chairman of Hyundai Motor Group, has officially resigned from his position as an inside director of Hyundai Steel. This move is seen as a demonstration of his commitment to focusing on the group’s core business, the 'mobility business,' as the leader driving Hyundai Motor Group’s future. Meanwhile, there are rumors about the sale of Hyundai Steel’s business units excluding those related to mobility.

According to industry sources on the 26th, Hyundai Steel included an agenda item in the notice for the shareholders’ meeting held the previous day to appoint Vice President Seo Myeong-jin as an inside director. This is a measure to appoint a successor following Executive Vice Chairman Chung’s intention to step down.

As a result, Executive Vice Chairman Chung will only retain inside director positions at Hyundai Motor, Kia Motors, and Hyundai Mobis within the group. A company official explained, "Hyundai Steel will be operated under professional management, and Executive Vice Chairman Chung appears to be focusing more on the automobile business."

The business community expects the 'Jung Eui-sun era' to fully commence with the Hyundai Motor shareholders’ meeting next month. Previously, Hyundai Motor decided not to propose the reappointment of Chairman Chung Mong-koo, whose term is expiring, at the shareholders’ meeting scheduled for the 19th of next month.

Since Chairman Chung, who has served as chairman of Hyundai Motor’s board and CEO since 1999, is stepping down, it is analyzed that the Jung Eui-sun regime will gain strength. Executive Vice Chairman Chung has played the role of the group’s de facto leader since his promotion to executive vice chairman in September 2018 and his appointment as CEO of Hyundai Motor and Hyundai Mobis at last year’s shareholders’ meeting.

Going forward, Executive Vice Chairman Chung is expected to concentrate the group’s capabilities on 'future mobility.' This is based on the recognition that the core axis of the automobile industry, which forms the foundation of the group, is shifting toward the future mobility sector, necessitating a reorganization of the entire portfolio to focus on mobility business.

Hyundai Steel, from which Executive Vice Chairman Chung has stepped down as an inside director, is also planning business restructuring for divisions excluding core businesses such as automotive steel sheets.

In fact, the transition to a 'smart mobility solution company' envisioned by Executive Vice Chairman Chung is gaining momentum. At next month’s shareholders’ meeting, a proposal will be made to amend the articles of incorporation to add mobility and other means of transportation, as well as charging businesses for electrified vehicles, to the business objectives. Additionally, the group has set a plan to invest 20 trillion won by 2025 to secure future business capabilities in electrification, autonomous driving, connectivity, mobility, artificial intelligence (AI), robotics, and personal aerial vehicles.

Of course, there are short-term challenges as well. The Chinese market, which has been hit hard by the recent spread of the novel coronavirus disease (COVID-19), is a major concern. The Chinese automobile market, the largest in the world, saw sales halved compared to the previous year last month.

From the beginning of this month until the 16th, sales plummeted by 92% compared to the same period last year, averaging only about 2,000 units sold per day.

As it is expected to be difficult to recover from the impact of COVID-19 throughout this year, Hyundai Motor’s concern over compensating for the sluggish Chinese market is deepening.

An industry official said, "As the Jung Eui-sun regime becomes more solidified within Hyundai Motor Group, the pace of implementing future mobility strategies is expected to accelerate. However, they cannot neglect addressing immediate issues such as the unexpected downturn in emerging markets."

This content was produced with the assistance of AI translation services.