Hyundai Motor Group Chairman Chung Mong-koo (left) and Executive Vice Chairman Chung Eui-sun.

Hyundai Motor Group’s promotion of Vice Chairman Chung Eui-sun to executive vice chairman may be construed a move by the group to respond to outside and inside business changes, and a desire to secure competitiveness in future car sectors in a rapid fashion, analysts say.
Announcing the background behind the latest personnel change, Hyundai Motor Group said it was designed to act nimbly and take countermeasures in advance of an industry paradigm shift like the 4th Industrial Revolution.

The step also moves Executive Vice Chairman Chung one step closer to succeeding his octogenarian father Chairman Chung Mong-koo. Hyundai Motor, like other conglomerates, including Samsung, is carrying out a transfer of power to the junior Chung.

The junior Chung is now at the forefront of management after being promoted to executive vice chairman nine years after taking office as vice chairman. Executive Vice Chairman Chung, who has been registered as a director of Hyundai Motor, Kia Motors, Hyundai Mobis and Hyundai Steel, has been so far in charge of Hyundai Motor.

From now on, Executive Vice Chairman Chung will be charged with overseeing overall operations of the group on top of the establishing the group’s future strategies, coordinating investments among subsidiaries, and coping with pending issues, including those related to trade.

Executive Vice Chairman Chung will also be in charge of reporting key management issues and gaining approval from Chairman Chung, a group official said.

The junior Chung is expected to focus on coordinating strategies and investments among subsidiaries. He is most likely to oversee all operations of the group’s 56 subsidiaries, including Hyundai Motor-Kia Motors, Hyundai Steel, Hyundai E&C, Hyundai Engineering, Hyundai Mobis, Hyundai Wia, Hyundai Globis, and Hyundai Rotem.

Executive Vice Chairman Chung’s promotion is also expected to give more weight to the group’s planning coordination office, charged with such roles as the establishment of the group’s mid- and long-term strategies, restructuring of governance, and preventing of duplicating investments by subsidiaries and coordinating.

Executive Vice Chairman Chung has been expanding his activity scope since last year. He has been looking at market changes by touring such places as the United States, China, Turkey, Israel, Mexico, India and Europe every month. He made a trip to a plant in Chongqing, China, accompanying President Moon Jae-in’s visit to the country last year.

The junior Chung also attended the global electronics show CES this year for the fourth time in row. He announced the group’s position after the group’s plan to restructure its corporate governance was disrupted by opposition by the U.S. activist fund Elliot in May.

Executive Vice Chairman Chung is expected to step up the scope of his management engagement. He will likely accelerate his focus on the development of future cars and related technologies, including self-driving, connected cars, and fuel cell electric vehicles (FCEVs). He is most likely to carry out aggressive M&As against innovative global companies, as he has been building groundwork to explore the global mobility market.

Hyundai Motor Group has seven vice chairmen, including Hyundai Card Vice Chairman Chung Tae-young, the senior Chung’s second son-in-law,; Vice Chairman Kim Yong-hwan in charge of the group’s planning and coordinating,’

Vice Chairman Yoon Yeo-cheol in charge of the group’s labor and domestic production,; Vice Chairman Yang Woong-chul in charge of overall R&D,; Vice Chairman Woo You-chul of Hyundai Steel,; and Vice Chairman Kwon Moon-shik, the head of the R&D Headquarters.

A view of the Hyundai Motor Group Headquarters in Yangjae-dong, Seoul. (Photos: Hyundai Motor Group)