Not Even a Supervisory Agency... 5 Hyundai Executives Summoned for Two Days of National Assembly Audit

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] At the first National Assembly audit of the 21st National Assembly, a large number of Hyundai Motor executives are being summoned. In just two days since the audit began on the 7th, as many as five executives have been called. This has raised concerns that summoning five executives from a private company, which is not even a subject of the audit, amid unstable internal and external management environments due to COVID-19 and other factors, is problematic.

According to political and economic circles on the 8th, five Hyundai Motor executives were each selected as corporate witnesses for different reasons. On the 7th, Yang Jin-mo, Vice President of Hyundai Motor, first attended a closed-door meeting before the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee audit. This was to respond to issues raised by People Power Party lawmakers Jeong Un-cheon and Jeong Jeom-sik regarding the low donation performance of private companies to the Rural Coexistence Cooperation Fund. Initially, the two lawmakers planned to summon the heads of the top 10 conglomerates for the same reason, but due to growing criticism, they lowered the level to executives.

On the same day, Kim Heung-soo, Executive Director of Hyundai Motor’s Product Strategy Business Division, testified at the Environment and Labor Committee audit. Lee Won-young of the Democratic Party pointed out that the European Union (EU) changed its measurement method from the existing New European Driving Cycle (NEDC) to the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), which could result in Hyundai Motor facing fines amounting to 3 trillion won. In response, Kim said, "We are responding by increasing electric vehicle sales and adjusting the product mix."

On the 8th, three Hyundai Motor executives will appear at the audit simultaneously. At the Environment and Labor Committee, Ha Eon-tae, Head of Domestic Production at Hyundai Motor, will testify. A staff member from Democratic Party lawmaker Yoon Jun-byeong’s office, who requested Ha as a witness, said, "An investigation into industrial accident deaths over the past 10 years among the top 30 companies showed that Hyundai Motor’s numbers are significantly higher than Samsung Group, which ranks second," adding, "This will be the focus of the questioning." Additionally, a staff member from Justice Party lawmaker Kang Eun-mi’s office stated they intend to hold Hyundai Motor accountable as the primary contractor regarding the closure of Korea Gates.

Democratic Party lawmaker Lee Su-jin of the Industry, Trade, Small and Medium Enterprises and Startups Committee has requested Kim Dong-wook, Executive Director of Hyundai Motor’s Policy Coordination Team, as a witness. A staff member from Lee’s office said they are preparing questions about whether it is appropriate for Hyundai Motor to enter the used car market in relation to the designation of used car sales as a livelihood-type suitable industry.

At the Political Affairs Committee, Seo Bo-shin, Head of Production Quality, is preparing to respond to questions from Democratic Party lawmaker Park Yong-jin. Park plans to focus on defects such as the reduction of engine oil in the New Grandeur model. Park had previously raised this issue with the Ministry of Land, Infrastructure and Transport during government questioning.

As five executives from one company are simultaneously summoned to the National Assembly, criticism is mounting. An economic official said, "The management environment is difficult due to COVID-19, and companies are in the midst of establishing next year’s management plans, but they are preoccupied with preparing for the audit," adding, "Calling so many executives from a private company that is not even a subject of the audit suggests that the audit has effectively become a tool to pressure companies."

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