Hyundai Motor Group Executive Vice Chairman Chung Ui-sun. (Photo: Hyundai Motor)

Under the stewardship of Hyundai Motor Executive Vice Chairman Chung Ui-sun, after only one year in office, the Korean automaker has changed into one undergoing personnel and organizational innovation and being nimbler in decision-making.

On Sept. 14, Chung marked one year in office as executive vice chairman, virtually wielding leadership of the group over Hyundai Motor Group Chairman Chung Mon-koo.

Two months after his promotion to the current job, Executive Vice Chairman Chung unveiled his group’s big picture plan - personnel reform, organizational innovation, future car investment & expanded collaboration, and the restructuring of operations in China.

Executive Vice Chairman Chung is evaluated to have translated his big picture plan into action. Business analysts predict that change in the automaker group will be accelerated the way Executive Vice Chairman Chung will want to steer it down the road.

A first step he took since his inauguration was reshuffling four out of the five vice chairmen, except Hyundai Vice Chairman Chung Tae-young, a second son-in-law of Group Chairman Chung. In the reshuffle, Executive Vice Chairman Chung dismissed Vice Chairman Yang Woong-chul and Vice Chairman Kwon Moon-shik, each in charge of R&D, and transferred Vice Chairman Kim Yong-hwan, Vice Chairman You Woo-chul and Vice Chairman Chung Jin-haeng to subsidiaries. He has forced out some “old guards.”

His personnel management style is extraordinary. He has broken the “pure-blooded mold” by hiring outside managers. Ahn Dong-il, a former head of Pohang Steelworks, was appointed to be Hyundai Steel president in charge of production.

Ex-Nissan Chief Performance Officer Hose Munoz was hired to be global chief operating officer, a newly created job. It was the first time in the history of the group that a foreigner has been appointed to president.

It is noteworthy that Hyundai Motor’s decision-making, including e-mail reports, is nimbler, breaking the long-standing practice of time-consuming hierarchical reporting system.

Executive Vice Chairman Chung tends to pursue substance rather than paying attention to ceremonies and formalities, business analysts said. Hyundai Motor Group began to change its long-standing conventional practices since last September when he was promoted to the current executive vice chairman position.

The group became the first conglomerate to abolish regular examinations of recruiting freshmen employees, a practice that was the target of public criticism because of high costs involved by examinees indulging in accumulating of certificates and licenses, shifting to frequent ones tailored to meet each department’s personnel demand and qualification requirements.

Hyundai Motor Invests Big in Future Technologies

Hyundai Motor unveiled a blueprint focusing on R&D for the next five years. The automaker announced a plan to channel 45.3 trillion won during the period, 77 percent of which will be spent on R&D outlays. Of late, Hyundai Motor is expanding startup investments to secure leadership in future car technologies.

In the past, the group appeared to be less aggressive compared to other groups. Hyundai Motor Group has made strategic investments at a rate of about one case each month in diverse segments ranging from car-sharing companies to self-driving tech firms to drone tech companies.