Hyundai Heavy Industries (HHI) Executive Vice President Chung Ki-sun, the eldest son of Chairman Chung Mong-joon of Asan Social Welfare Foundation and HHI’s largest shareholder, was promoted to senior executive vice president. The move puts him at the forefront of management. He is the heir-apparent of the senior Chung. HHI Chairman Choi Kil-sun, 71, resigned from management and HHI Vice Chairman Kwon Oh-gap was tapped to be CEO of the group’s holding company, serving as its control tower. 

HHI Group carried out a reshuffle, shifting out older CEOs and subsidiary heads, it said on Nov. 14. New Senior Executive Vice President Chung was appointed to be co-CEO of Hyundai Global Service, a ship after-sale service company spun from the group late last year.  The junior Chung now heads the ship business division. A consensus has been formed over the owner-led management structure designed to ensure responsible management to salvage the struggling group, and the junior Chung will undergo a litmus test for a third-generation owner shift, the official said. Chances are high that Hanwha Q Cells Executive Vice President Kim Dong-kwan and other 3rd generation heir-apparent managers of conglomerates whose age is similar to Chung’s will get promotions, business sources said. 

HHI Group made it clear that it will wrap up the process of shifting to a holding company system. Hyundai Robotics, now serving as the holding company of the group, will change its name to Hyundai Heavy Industries Holdings, which will be headed by HHI Vice Chairman Kwon. Kwon will be charged with exploring future group engines, restructuring businesses, and outside activities. 

A generational shift in management, coupled with the introduction of a holding company scheme, will ramp up the group’s corporate governance, group officials expect. 

HHI Group Chairman Choi, who stepped down from management, is named as an adviser of the group. Former Chairman Choi, who entered HHI in 1972, has been in the Korean shipbuilding industry for about 40 years. He held such positions as CEOs of HHI group subsidiaries, including Hyundai Samho Heavy Industries, Hyundai Mipo Dockyard, and HHI. Hyundai Electric & Energy Systems CEO Joo Young-geol and Hyundai Construction Equipment CEO Kong Ki-young have been promoted from senior executive vice president to president, respectively. Hyundai Construction Equipment Executive Vice President Kang Chul-ho has been promoted to senior executive vice president to serve as CEO of Hyundai Green Energy.

HHI Managing Director Sim Wang-bo was promoted to senior executive vice president to serve as CEO of Hyundai E&T, while Hyundai Heavy Industries MOS Executive Vice President Chung Myung-lim was promoted to serve as CEO of the company. HHI Managing Director Oh Se-kwang was appointed to be CEO of Hyundai Hyms.