Hyundai Motor, which posted record results last year, expects even better performance this year? Increase in director remuneration limit

Hyundai Motor's Regular Shareholders' Meeting Approves Agenda
Jang Jae-hoon: "Increasing Customer Value through Safety and Quality"

Hyundai Motor Company decided at its regular shareholders' meeting held on the 21st to increase the director compensation limit to 21.8 billion KRW, up 1.8 billion KRW from last year. The company recorded its highest-ever operating profit last year, exceeding 15 trillion KRW, and expects further improvement in performance this year. This move contrasts with major conglomerates such as Samsung Electronics, SK, and LG, which have been lowering their compensation limits due to worsening business conditions.

According to the company's disclosure, the total compensation paid to 13 registered directors, including 7 outside directors, last year was 19.027 billion KRW, nearly reaching the limit of 20 billion KRW. Hyundai Motor Group Chairman Chung Euisun received about 8.2 billion KRW, accounting for approximately 43% of the total compensation.

Hyundai Motor Company held its regular shareholders' meeting on the 21st at its headquarters in Yangjae-dong, Seoul. Jang Jae-hoon, CEO of Hyundai Motor Company, is declaring the opening.
[Photo by Hyundai Motor Group]

Jang Jae-hoon, Hyundai Motor CEO (President), who presided over the shareholders' meeting, said in his opening remarks, "Despite the continued difficult business environment, including a rapid shift from a supplier-favorable market to a buyer-favorable market, US-China conflicts and economic bloc formation, and the full-scale global expansion of Chinese OEMs, we achieved record-high operating results for two consecutive years through profitability-focused management." Referring to the upgrade in ratings by overseas credit rating agencies, he added, "We will not be complacent with market evaluations and expectations but will strive to secure competitiveness to achieve continuous growth."

He forecasted a challenging business environment for this year. CEO Jang said, "Political and economic uncertainties will intensify economic volatility," and "Industrial demand recovery is expected to weaken, and competition will become fierce." He also pointed out the fierce price competition among electric vehicle manufacturers, increasing demands for carbon neutrality due to climate change, and the rise of protectionism in major markets such as the US Inflation Reduction Act as adverse factors.

Nevertheless, he stated, "We will continuously develop our philosophy of vehicle safety and quality management to enhance customer value," and "We will operate the business with a focus on profitability to maintain the company's financial stability and strengthen agile production and sales systems based on flexible volume allocation according to regional and model-specific electrification demand changes."

At Hyundai Motor Company's 56th Annual General Meeting of Shareholders, Boston Dynamics' quadruped robot 'Spot' is welcoming shareholders in front of the Ioniq 5 and Ioniq 6, which were consecutively selected as the 'World Car of the Year' in 2022 and 2023.
[Photo by Hyundai Motor Group]

Amid signs of slowing demand for battery electric vehicles, focusing on eco-friendly vehicles with relatively better accessibility, such as hybrids, aligns with this strategy. It reflects the intention to develop capabilities to respond flexibly and swiftly. In emerging markets, the company emphasized securing competitiveness across the entire value chain, including development, production, and sales. The shareholders' meeting was broadcast live online, and some shareholders submitted pre-questions regarding strategies for the decline in electric vehicle demand.

The company pledged to achieve fundamental cost reductions for electric vehicles. This includes integrating parts and controllers, directly developing and producing them, and innovating design and processes. CEO Jang stated, "We will develop unique electric vehicle selling points, differentiate services such as V2G and charging, and launch mid-to-large electric SUVs in overseas markets."

Jang Jae-hoon, CEO of Hyundai Motor Company [Photo by Hyundai Motor Group]

Hyundai also plans to actively promote the transition to software-defined vehicles (SDV). CEO Jang said, "Based on a centralized architecture, we will integrate vehicle controllers into four functional areas: electronics and convenience, driving performance, infotainment, and advanced driver assistance systems." He added, "Starting from small components to production, we will accelerate software and hardware innovation and mass production of SDV products through a 'chip to factory' strategy."

Additionally, the company announced plans to build a platform that unites global charging service providers linked to electric vehicle sales. It also intends to strengthen hydrogen business collaboration systems among group affiliates.

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