'Jeong Eui-seon Hyundai' Opening

Chung Mong-koo Steps Down as Board Chairman After 21 Years

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

[Asia Economy Reporter Kiho Sung] Chung Mong-koo, Chairman of Hyundai Motor Group, stepped down as an inside director of the flagship affiliate Hyundai Motor Company after 21 years and became a non-registered executive. He also relinquished his position as chairman of the board, effectively withdrawing from management. With this, Hyundai Motor Group has completed a generational shift to third-generation management, with Chung Eui-sun, the Executive Vice Chairman (pictured), overseeing the entire group following the late founder Chung Ju-yung and second-generation Chairman Chung Mong-koo.

On the 19th, Hyundai Motor held its 52nd regular shareholders' meeting at its headquarters in Yangjae-dong, Seoul, and passed a resolution not to reappoint Chairman Chung as an inside director, whose term expired on the 16th, and instead appointed Executive Director Kim Sang-hyun, head of the finance division, as an inside director. Accordingly, Hyundai Motor's inside board members now consist of Executive Vice Chairman Chung, President Lee Won-hee, President Albert Biermann (Head of R&D), President Ha Eon-tae (Domestic Production), and Executive Director Kim. Executive Vice Chairman Chung did not attend the shareholders' meeting.

The industry is also paying close attention to the board meeting held immediately after the shareholders' meeting. With Chairman Chung stepping down as a registered director, Hyundai Motor must appoint a new chairman of the board. Although there were many expectations that Executive Vice Chairman Chung would assume the chairmanship, there is now speculation that an external figure, rather than the group head, might take the position. This reflects a recent trend in the business community to separate the roles of CEO and chairman of the board to enhance transparency and independence.

Meanwhile, among the group affiliates, Chairman Chung remains as an inside director of Hyundai Mobis and retains his position as group chairman.

At the shareholders' meeting, amendments to the articles of incorporation, including changes to the business objectives, were also made. Hyundai Motor changed its business purpose from "manufacturing and sales of various vehicles and their parts" to "manufacturing and sales of various vehicles and other means of transportation and their parts." Additionally, "charging business for electrified vehicles and other related businesses" was added. This amendment is interpreted as a commitment to expand beyond a traditional automobile company into future mobility businesses.

Earlier this year, Executive Vice Chairman Chung announced in his New Year's address that the company plans to invest 20 trillion won annually and more than 100 trillion won over the next five years. Hyundai Motor intends to allocate funds to electrification, autonomous driving, and mobility service businesses.

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