Crisis invigorates Hyundai chief

By Kim Tae-gyu

Hyundai Motor Group Chairman Chung Mong-koo may not conform to the typical image of a chief executive, who people believe would speak with a glib tongue and show his intelligence with lengthy speeches.

The 73-year-old has hardly tried to appear in the limelight or speak in public even though he is not reclusive.

Under his leadership, however, the Seoul-based group has grown from a second-string automaker to one of the world’s top five players during the first decade of the new millennium.

Hyundai officials say that Chung has a mystic stewardship, which helped boost both top and bottom lines of Korea’s runners-up conglomerate comprising Hyundai Motor and Kia Motors.

``He has wisdom and insight. He sees what other people cannot and those characteristics have catapulted Hyundai Motor to join the ranks of the world’s top tier,’’ a Hyundai insider said.

``Most executives were very reluctant to splurge on expanding facilities and strengthening research during the global credit crunch in 2008. But he pushed to make big investments to take advantage of the crisis.’’

Hyundai Motor Group channeled 1.92 trillion won in research and development (R&D) in 2008, up 15.86 percent from a year before, at a time when a vast majority of its rivals desperately competed to cut down on any expenditure.

Now his focus appears to be Europe, which is suffering from a debt crisis so demand for new vehicles has fallen. Automobile sales have dipped for four straight years there and the downward march continued in January.

Yet, Hyundai Motor Group increased its market share on the continent to 5.1 percent last year to nudge past Toyota, whose share was 4.1 percent, to become the foremost Asian carmaker in Europe.

He flew to Geneva Tuesday to take part in the ongoing motor show in the Swiss city and check strategies of European offices, merely six months after he was last on the continent.

Hyundai officials say he will come up with more aggressive tactics so as to proactively attack the European market.

``Another outstanding factor of his leadership is his unique style in personnel management. He has delegated much authority to lower-ranked executives along with responsibility,’’ the official said.

``Superior employees are certainly recognized with raises or promotions while underachievers would suffer opposite measures, sometimes layoffs. As a result, there are few complaints with his personnel policies despite relatively frequent executive reshuffles.’’

Even though Chung scarcely steps forward to speak in public, he does when necessary, for instance, in early 2009 when Kia Motors opened factories in Georgia in the United States.

Back then, he delivered his speech in less-than-perfect English. Hyundai Motor officials even had to put a copy of the speech on screens because his words were hard to understand.

But he insisted on doing it and this reporter has never seen such a long standing ovation of participants composed of top politicians and Georgia residents.